By Syed Zahid Ahmad,
Aam Aadmi Party has emerged as a hope for many Indians to get rid of corruptions. But doing agitation is one thing and controlling corruption is different because corruption early done by individuals has now turned into institutional and many institutions are managing business of corruption in legalized manner. Otherwise can anyone justify why Indian Government should pay annual interest at 8% per annum on market loans when we have opened capital account and in economies like US and UK money may be bought at as low as 2% annual interest? It may be easy to handle corrupt people, but tough to curb institutionalized corrupt businesses in a democratic country like India.
Considerably the Aam Aadmi been hardly benefitted through increased capital inflow by FIIs in the stock market. Mostly the benefits of economic growth in last two decades realized by our corporate; making Governments more indebted; causing increased pressure over the tax payers and consumers; and pushing the inflation higher. Amidst rise in foreign capital, stock indices, inflation and fiscal deficits, the Aam Aadmi deprived to sharing the development fruits. In general people of India have been taxed more to allow the Government bridge the fiscal deficits; compared to the benefits drawn by deprived section through welfare schemes. The Governments been found spending more to repay the debts along with interest compared to expenditure on public welfare schemes.
Both NDA and UPA failed to serve Aam Aadmi, rather been focused upon facilitating the corporate. Stock market capitalization and rate of GDP growth were targeted to reflect economic development. Governments hardly cared how increased income realized through developments are shared among different section of people in our economy. This increased the gap between rich and poor of our society. Improving the livelihood of Aam Aadmi could not drew due attention of these Governments. If we really intend to serve Aam Aadmi, we need to focus upon rural economy and the unorganized sector enterprises altogether comprising over ninety percent of national work force. Aam Aadmi may be pleased if facilitated through –
1. Affordable alternative source of finance for their livelihood and welfare needs;
2. Lower tax rates on earned income, investments or incurred expenditures;
3. Better market linkages for produced goods and services;
4. Soft labour laws, excise rates, taxes over trade activities, service taxes etc.;
5. Affordable art of technologies for cottage and rural industries;
6. Institutional and financial support to cooperatives for empowerment of Aam Aadmi;
7. Easy norms to receive benefits in terms of subsidiaries, incentives and grants etc;
8. Low cost public utilities like water, energy, hospitality, education, transport etc.;
9. Hassle-free norms to register enterprises submit returns and get clearances etc.
Since after fall of USSR, our economists have been following US model of development Economics, if not corrected they may further put thrust over US economic development models, whereas we need model promoting domestic economy through intensified efforts to explore potentials of Indian economy. We should not adopt Marxist or capitalist model, but a real socialist model of economic development for Indian economy wherein Aam Aadmi associated with agriculture or unorganized sector enterprises be feel privileged with the policies and regulation. We may require social economists to suggest better policies for Indian economic growth and welfare of people.
Hope the team engaged in preparation of Aam Aadmi Party’s draft policy for economic welfare and development of India would seek feedbacks from different sections before presenting on public domain.
Aam Aadmi Party may need to assure micro and smaller enterprises should have opportunity to avail equity funds at retail counters in banks and NBFCs (that like corporate drawing equities from stock markets). If large retail companies like Walmart can be helped through establishment of Farmer Producer Companies in India to allow them procure farmers produces from farm fields, why cannot Consumer Cooperative Stores be established and linked with such FPOs to help the farmers at one hand and general Indian customer on other hand? Only such initiatives policy decisions would bring justice in the economy and let the Aam Aadmi feel empowered. Hope Aam Aadmi party would think and act in socialistic economic growth pattern.
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Zahid Ahmad is the editor of http://www.economicinitiatives.com/