Humans just do not live by bread alone. But to climb the steps leading to total welfare, somewhere that equilibrium between work and consumption has to be achieved
THERE appears to exist today a 'consensus'
that industrialisation is the solution for
our economic woes. This simple statement
actually hides a deep philosophical standpoint. The question that is needed to be
asked is, whether consumption alone is
sufficient to ensure the welfare of an individual or is it equally necessary for an individual to have an opportunity to work, if
necessary, with a low consumption rate.
Western thinking proceeds on the
premise that increased consumption leads
to increased welfare. if a citizen has food,
shelter and a reasonable unemployment
compensation, his welfare is ensured. Our
thought, on the other hand, emphasises
that work per se is much more crucial for
the evolution of an individual in helping
him realise his full potential. Consumption is considered as a mere necessity, and by itself, is not equated with welfare.
This implies that the first responsibility of the government would be to provide
work to all, and if need be, by sacrificing
some amount of economic growth and
consumption. A person simply having half
a litre milk, a one-room tenement and a mere old-fashioned
radio, but with a full day's work, would be considered to be at
a higher level of welfare than our Western friend. In terms of
industrial development, promotion of employment generating industries should be centrestage.
In its recent Global Report on Industrial Development,
United Nations International Development Organization
(UNIDO) acknowledges that in modern industry, "new production techniques are reducing the Size of the required labour
force". Data is provided to show that employment growth pattern in developed as well as newly industrialising economics is
tagging behind the growth pattern observed in production.
In China, for example, a 58 per cent growth in industrial
production has spurred only eight per cent increase in
employment. in the US, a six per cent growth in industrial production has been accompanied with a two per cent decrease in
employment. Rather than creating jobs, industrial growth has
eaten them. In Sweden, a four per cent decline in industrial
production has brought forth a 10 per cent decline in industrial employment.
The Western paradigm emphasises consumption.
Therefore, even with enough jobs and several people being
jobless, the latter's welfare would be presumed to have been
achieved as long as they consume adequately. A relatively
small number of persons may work in
highly capital-intensive industries and
produce goods required for the entire society. The others, although unemployed, would be taken care of by the state. Food,
free health care and unemployment benefits will be available to them. A utopia
indeed!
If at all work becomes the prime necessity for an individual's welfare, the prituary task of the government becomes to
ensure that every person in the society
works, and if necessary, even by being a
frugal consumer- Understandably, it
would mean sacrificing growth and consumption to some extent by the government. Such an approach would encourage
labour-intensive agriculture, informal sector and small-scale industries supported by modern industry.
If consumption becomes primary,
then the strategy of modern industries
would change, Very few consumers will
work. The rest will wake up in the morning, drink their glass of milk, and continue televiewing till lunch time. More TV and
dinner will follow a siesta. Then some sex. And off to sleep.
Once a month a visit to government agencies to obtain
the food stamps. Voila! That would almost be a heaven of
sorts.
On the other hand, if work is considered to be primary,
skill training and technical assistance, easy access to credit
and finance, basic infrastructure and facilities, and provision
of information on markets and new technology" would have
to be made available to the informal sector. People engaged in
producing flowers, agarbattis (incense sticks) vegetables, bidis
and the like, should receive incentives. They would be busy
thinking about purchase, sale, market, interests, loans,
spoilage, and so on. But they may not have TVs, nor may they
have the certainty of food stamps. Later, some may possess
industrial setups, build their own homes and acquire twowheelers. But, on the whole, the consumption level of the society may be lower than what it might have been with modern industrialisation.
For the West, consumption is primary. Hence the emphasis on industrialisation. We have to decide whether we want to
become couch potatoes or want to partake in the thrill of work
with all its risks and costs. That would determine whether we
could accept modern industrialisation being the 'crucial
engine of growth' which UNIDO recommends.
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