Here's an analysis titled "Vision 2010: a dangerous myopia" by Amiya Kumar Bagchi in the Hindu:
The Central budget of 2010-11 is a further step in the realisation of a vision of India vibrant with the income, wealth, saving, education and the entrepreneurial energy of the top 5-10 per cent of the population and the rest of Indians, serving that minority and surviving as barely literate, malnourished multitude.
With the accession of Rajiv Gandhi to power, a vision began to germinate. That vision was that of an India that would be vibrant with the entrepreneurial energy of the few, and the rest of the population serving those few with their labour.
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Look at the successes of the budget: the professional middle class is happy with the cuts in taxes collected from it. The business community, including foreign investors, is happy, because of further privatisation of public assets by which the Finance Minister proposes to raise Rs. 25,000 crore, because of the looming privatisation of many operations of the Indian Railways, whose kitty is nowhere near what it should be for even partial implementation of the projects announced by the Railway Minister, because the FDI path would be further smoothed and because licences would be issued for fresh private banks. Never mind if they fail as the Global Trust Bank did, the government will pick up the bill directly or indirectly, in accordance with its earlier record and the recent practice in the United States and Britain where banks failed but bankers remained prosperous. The Indian stock market responded positively, thus sending a message of welcome to the budget and generating profits for the bulls.
The Finance Ministers of the neoliberal Central government had earlier instituted the Fiscal Responsibility and Responsibility Management Act. This became their excuse to drastically cut down public investment and expenditure on the social sector. As soon as the global financial crisis hit India and the interests of the Indian rich demanded fiscal stimulus, the government overthrew fiscal orthodoxy and budget deficits soared. North Block policymakers can claim that the stimulus worked and the growth rates did not crash. The problem is with the content of that growth.
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The Union Cabinet recently approved an agreement with the U.S. on Agricultural co-operation and food security.' Under an India-U.S. Agricultural Knowledge Initiative, multinational agribusiness firms such as Cargill and Monsanto can become members of the policymaking body. This is ironical since most of U.S. agribusinesses are conducted under the umbrella of huge government subsidies, while the current budget has cut the measly subsidies poor farmers enjoy in India. Indian agriculture has grown slowly in recent years, and food grain production has lagged behind population growth.
Ordinary Indians are badly malnourished and calorie intake has fallen over time. An Expert Group appointed by the Planning Commission has proposed 1800 calories per day as the norm of consumption by an adult for fixing the poverty line. This norm is applicable only for light or sedentary work. How is a construction worker with heavy head loads or an agricultural worker driving buffaloes in a flooded paddy land going to do his work and lead a healthy life or survive long? Even this norm yields an estimate of poverty of about 42 per cent in 2004-05, much higher than the estimates quoted officially. If the Food Security Bill is passed by Parliament, it will presumably be implemented by accepting the older estimate or the new estimate of the Expert Group. Either way, a vast number of people who are malnourished will remain in that state.
The Hindu : Opinion / Leader Page Articles : Vision 2010: a dangerous myopia
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