by Bharat Jhunjhunwala
The Modi Government has implemented the welfare programs like providing free gas cylinders under Ujjwala scheme to the poor persons. Such efforts are most welcome. However, these will not bring peace and social cohesion and may not even beget votes for BJP because the bigger problem is that of increasing inequality.
Poverty alleviation and reduction of inequality are two entirely different concepts. Poverty alleviation means that the poorest are “alleviated,” that is, basic means of livelihood such as food, clothing and shelter are made available to every individual. This can be done along with prevalence of high levels of inequality. It is like well kempt grass in the garden coexisting with tall eucalyptus trees. Big companies can keep wages low while the government gives out free gas cylinders while the make huge profits and give out huge dividends to their rich shareholders. The common man is like the well kempt grass while the rich are like the eucalyptus tree. Such a situation simultaneously leads to poverty alleviation along with high inequality. The poor get enough to keep their body and soul together but the disparity between their incomes and the rich prevails at high levels.Read More »