Yet, more than 500 million
of our fellow citizens exist more or less outside the "mainstream"
economy, hovering perpetually in a state of stark survival or, at
best, of basic subsistence. The incomes and amenities of half a
billion or more people in the country need to be raised
substantially if citizenship is to mean more than simply the right
to vote in elections and national pride is to be based merely on the
existence of a handful of extremely wealthy people.
Unfortunately, with the
present economic model, it will be a long time before this happens.
Passive reliance on a hoped-for "trickle-down" has never by itself
been sufficient to reverse the process – the ceiling of the income
distribution usually rises much faster than the floor. Economies
that have succeeded in raising the floor as well have done so by
introducing strong measures to ensure a more equitable distribution
of the benefits of socio-economic development. They have done this
not through handouts and charity but by enabling the creation of
widespread opportunities for livelihoods and jobs at all levels and
nurturing these by providing the necessary infrastructure, capacity
building and support systems.
If globalization is to
benefit the poor, it can only do so where national policies are
designed to redirect its forces from mass production purely for
export to include also "production by the masses for the masses".
Only thus can the goods and services needed by the poor be produced,
and the purchasing power to access these be created.
The eradication of poverty
needs very different approaches from those we are following at
present. First, of course, it needs some deep structural changes in
society: grass roots democracy, land reform, access to livelihood
resources and fulfillment of everyone’s right to reasonable
education and health care.
To do this, technology and
the marketplace must be transformed to serve the cause of what
Mahatma Gandhi called antyodaya – "putting the last first."
This means that primary task of those concerned with sustainable
development – public agencies, civil society and others – is to get
together and create the conditions which generate the jobs and
livelihoods that will enable the mass of people to stand on their
feet, socially and financially.
Creating livelihoods and
jobs is not the job of government. Despite its inexorable growth to
the 20 million employees and 15,000 crore yearly pension bills it
has at present, the real role of governments is to govern: to set
policies and to facilitate the orderly performance of the other
sectors – whose job it is to create jobs and deliver
services. Jobs in India, as in all other economies, are actually
created by the small and medium (SME) sector, by the "informal"
sector and – most of all — by the mini and micro enterprises that
dot the countryside. Since rising productivity in agriculture means
that the bulk of the 15 million livelihoods and jobs we need to put
in place each year will have to be off-farm, it is these sectors
that will have to take responsibility for getting our country to
work.
Mini enterprises, with five
to fifty employees, and capital investments of several lakhs, are
capable of using technology and marketing methods to reach beyond
the needs of the local community and generate surpluses that enable
them to grow and invest in further growth.
To be successful, micro and mini
enterprises need a variety of support systems. These supports can
best be provided by "social enterprises", a new form of institution
in the voluntary sector that works in good business principles.