Receive Daily Updates
Poverty and Destitution:-
There is a difference between poverty and destitution, or what I call pauperism. In poverty, it is difficult to make ends meet. You somehow cope, do your level best to add to your income. In destitution, you are simply unable to cope.
Excerpts from the interview of Jan Breman :-
Where is the need for terms such as ‘pauper’ and ‘pauperism’ as analytical categories, when we already have ‘poverty’?
There is a difference between poverty and destitution, or what I call pauperism. In poverty, it is difficult to make ends meet. You somehow cope, do your level best to add to your income. So you also have your wife and children working along. In destitution, you are simply unable to cope. You are so utterly poor that it is difficult to even survive. And if you survive, you need outside support. Unfortunately, the poverty debate in India has more or less been appropriated by economists. So we look at income or consumption or employment levels, and not at the social or political dimension of poverty. A category such as ‘pauperism’ is needed to capture these non-economic aspects as well.
You argue in your book that India’s poverty line is a destitution line. Are you saying that those below poverty line in India are not poor but destitute?
Not all but a good number are. According to the National Commission for Enterprises in the Unorganised Sector (NCEUS), the poverty line fixed by the Planning Commission is a joke: 76 per cent of the Indian population is living in poverty. If you have such a vast mass of poor, you have to differentiate between levels of poverty. Certainly a big number is close to the poverty line. But in my estimate, about 25 per cent of India’s poor are destitute, or paupers.
So from an economist’s perspective, do we need another line, below the poverty line, to identify the paupers?
The poverty line is a sort of magical construction. If you cross it, you are suddenly out of poverty. So the policy focus is always on those who are able to go past that threshold. As a result, there is absolutely no interest in those at the bottom, those way beneath the poverty line.
So who is a pauper, in sociological terms?
In the first place, the paupers are the non-labouring poor, those who have no earning capacity. They never had or have lost their labour power and therefore can’t make a living. These include the elderly, the disabled, the chronically ill, but also widows with small children, divorcees without any support from others. Basically, in order to survive in poverty, you need a household. You cannot manage on your own because the flow of income varies with the seasons. You need to pull the household together to bring in the income — this is why you have child labour in India, isn’t it? But paupers also include the labouring poor, especially those whose income and employment are erratic or seasonal.
But Indian economists don’t believe in terms like ‘pauper’.
That’s true. It was only Gandhi who wrote about paupers in an article published in Young India in 1928, when he was in south Gujarat. He argued that we cannot fight colonialism if we do not fight colonialism in our own society. He pointed out that paupers had been around in India for a long time. I use the term pauper to evoke the conditions in Victorian England, where the casual poor were driven out of the countryside to work in the mills during the industrial revolution. In the same way, the casual poor are being driven out of the countryside in 21st century India.
England amended its Poor Laws in 1834 to pauperise the rural labour and drive them to the cities. What is India doing to create an exodus from the countryside?
Your agrarian crisis. Agriculture is not able to provide livelihood for the land-poor and the landless classes, who have lived in the villages from time immemorial. So they are forced to leave the villages. But the city doesn’t want them either.
How can you say the city doesn’t want them? India is building a hundred smart cities. Who will live in them if not migrants?
Talk to policymakers, talk to municipal officials of any city. They will tell you they don’t want the poor around, that they are a burden on our modern, beautified, smart cities. The policy of the municipality in every Indian city has been to periodically evict the poor.They try desperately to find employment but are unable to establish themselves even in the slums. They hang around in the labour chowks, they become pavement dwellers because there is no shelter for them in the night. When weeks pass by without any work at all, they go back to the villages. I use the term ‘circular migration’ to describe this movement — from villages to cities and back to villages, in an endless cycle. This is widespread in Bihar, Andhra Pradesh, Rajasthan, Uttar Pradesh, Tamil Nadu. But you find it in every State.
Can the poor in India hope for inclusive citizenship?
Citizenship is about rights and obligations. It is about being able to make claims on the state, and at the moment this is a privilege afforded by a minority of the Indian population. Also, inclusive citizenship not only means offering employment (inclusion in economic terms) but also creating space for them in terms of housing, health, schooling, skilling, and inclusion in social terms — which means focussing on equality. But we don’t see pro-equality policies, only pro-inequality policies. The mindset of the Indian elite is: the poor are different from me and I don’t want them around.
Recent Posts
Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.
Globally, around 80% of wastewater flows back into the ecosystem without being treated or reused, according to the United Nations.
This can pose a significant environmental and health threat.
In the absence of cost-effective, sustainable, disruptive water management solutions, about 70% of sewage is discharged untreated into India’s water bodies.
A staggering 21% of diseases are caused by contaminated water in India, according to the World Bank, and one in five children die before their fifth birthday because of poor sanitation and hygiene conditions, according to Startup India.
As we confront these public health challenges emerging out of environmental concerns, expanding the scope of public health/environmental engineering science becomes pivotal.
For India to achieve its sustainable development goals of clean water and sanitation and to address the growing demands for water consumption and preservation of both surface water bodies and groundwater resources, it is essential to find and implement innovative ways of treating wastewater.
It is in this context why the specialised cadre of public health engineers, also known as sanitation engineers or environmental engineers, is best suited to provide the growing urban and rural water supply and to manage solid waste and wastewater.
Traditionally, engineering and public health have been understood as different fields.
Currently in India, civil engineering incorporates a course or two on environmental engineering for students to learn about wastewater management as a part of their pre-service and in-service training.
Most often, civil engineers do not have adequate skills to address public health problems. And public health professionals do not have adequate engineering skills.
India aims to supply 55 litres of water per person per day by 2024 under its Jal Jeevan Mission to install functional household tap connections.
The goal of reaching every rural household with functional tap water can be achieved in a sustainable and resilient manner only if the cadre of public health engineers is expanded and strengthened.
In India, public health engineering is executed by the Public Works Department or by health officials.
This differs from international trends. To manage a wastewater treatment plant in Europe, for example, a candidate must specialise in wastewater engineering.
Furthermore, public health engineering should be developed as an interdisciplinary field. Engineers can significantly contribute to public health in defining what is possible, identifying limitations, and shaping workable solutions with a problem-solving approach.
Similarly, public health professionals can contribute to engineering through well-researched understanding of health issues, measured risks and how course correction can be initiated.
Once both meet, a public health engineer can identify a health risk, work on developing concrete solutions such as new health and safety practices or specialised equipment, in order to correct the safety concern..
There is no doubt that the majority of diseases are water-related, transmitted through consumption of contaminated water, vectors breeding in stagnated water, or lack of adequate quantity of good quality water for proper personal hygiene.
Diseases cannot be contained unless we provide good quality and adequate quantity of water. Most of the world’s diseases can be prevented by considering this.
Training our young minds towards creating sustainable water management systems would be the first step.
Currently, institutions like the Indian Institute of Technology, Madras (IIT-M) are considering initiating public health engineering as a separate discipline.
To leverage this opportunity even further, India needs to scale up in the same direction.