Let's light up the lives of India's poor millions

11 Jan 2009

One important message that the voters have given, in states where elections were held recently, is a clear preference for performance and development. India\'s place in global affairs has been enhanced substantially in recent years, largely because of impressive economic growth. The strength of this country and the influence it is able to exert in global affairs would depend essentially on India\'s place as a global economic power. Political leaders, therefore, must not only live up to the expectations of their individual constituencies but ensure the growing economic strength of India. And also see to it that the benefits reach out to every citizen of the country.

Against this background, policymakers must show extreme sensitivity, particularly as we move along the New Year, to ensure reducing disparities between the rich and poor. This can happen only if opportunities are created for the poor, and if government expenditure is utilised effectively. Development continues to be lopsided in the country.

India has miles to go in improving human development indicators. For instance, of the nearly four million deaths of new-born children globally in 2007, 28% occurred in India. Despite massive efforts towards immunisation, 40% of all the world\'s children who are not immunised live in India. After 61 years as an independent nation, over half of India\'s population practices open defecation. Similarly, despite efforts to universalise primary education, more than one in every five of all primary age children out of schools are in India. It is not as though government funding for programmes in the country has been deficient in these areas, but there is clearly a lack of effectiveness in the manner in which programmes are delivered.

Officialdom in this country requires urgent overhaul, and to this extent the latest report of the Administrative Reforms Commission has some far-reaching recommendations, which should be given urgent attention. It is necessary to initiate a countrywide public debate on some of these recommendations in which all stakeholders, including government, businessmen, various professionals and civil society must take part actively. Also, given the growth of entrepreneurial capabilities across the entire spectrum of Indian society, there is a need for closer partnerships between government and the private sector.

Indeed, in some areas this has worked well already, where government has wisely vacated the field for private sector operators, for example in the case of mobile telephones. A revolutionary change of similar character is required in the field of renewable energy generation as well, which would bring substantial benefits to some of the poorest citizens living in rural India. The Energy and Resources Institute (TERI) has launched a programme called Lighting a Billion Lives, which addresses the sad situation of 1.6 billion people globally who have no access to electricity. Unfortunately, 25% of these — 400 million — live in India.

Yet, this problem can be addressed and solved within a year, if required, through provision of solar lanterns which in the aggregate would cost less than the subsidy provided on kerosene. It is well known, based on studies by respectable organisations - that over 40% of this subsidy - goes to benefit those who are in the business of adulteration of other petroleum products. Yet, a rational shift of this nature is obstructed largely by political considerations.

As the country gears up for the general elections and while we are at this exciting juncture of carving out new opportunities for the people of India, two lessons are important for political leaders to reflect on. First, some of the basic problems associated with poor human development need urgent redressal. This would happen only if a major overhaul of the government machinery was to take place. Secondly, there is a need for rationalising subsidies and prices that often pervert the very purpose for which they are designed. One hopes that this year will see some new thinking on these critical issues and a change in direction for the benefit of the Indian society.