THE DYING INDIAN WELFARE STATE: THE STORY OF UNKEPT PROMISES.
This article is co-authored by Ananyo Chakraborty and Satadru Bhattacharyya
Despite numerous debates on the origin of the welfare state, the first instance of its existence in the modern sense can be seen in Prussia under Otto-Van Bismarck. The introduction of Old-Age pensions, accident insurance, and state intervention in Medical care were some of the policies that were implemented to win over the working classes. UK was soon to follow suit with Prime Minister Herbert Asquith at the helm, who was a self-proclaimed believer in liberal Welfare policies. The Old-Age Pensions Act of 1908, the introduction of free school meals were few exemplary policies in that direction. USSR, from the moments of its existence, went into the path of developing a socialist welfare state through robust policies to ensure old-age pensions, health insurance, maternity benefits, unemployment benefits, and so on. Reflections of such egalitarian equity-driven policies can be seen in modern-day nation-states like Vietnam and Laos, among many others. Though the USA formally recognized the welfare aspects of a state much later, several policies mimicked a welfare state. A welfare state is defined as one where the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions for a good life. The general terms may cover a variety of forms of economic and social opportunities.
The Indian welfare state has been established ever since India achieved independence, with the constitution-makers realizing the importance of having a well-recognized social security net with the newly-formed nation suffering from a refugee crisis, communal violence, and widespread poverty. The pedagogical study of the Indian welfare state has often been accused of being heavily influenced by ‘Western’ ideas. There is some truth in the accusation, given that the modern welfare state emerged in the European mainland in the late nineteenth century, and the concepts that shaped it largely had their ground swelling in Europe. It is interesting to note however that foundational idea intrinsic to Ashoka’s philosophy of governance have
similarities with the concepts that are used to define the contours of a welfare state in contemporary times. As early as in the 3rd century BCE, Ashoka laid down the prototype for a paternalistic welfare state that ensures overall material, the social and economic well-being of its citizens. He regarded all the citizens as his children, oversaw the construction of wells and trees for weary travelers on the roadside, improved healthcare facilities for humans and animals alike. Jawaharlal Nehru accorded much importance to Ashokan values of goodness in his Discovery of India, which is a meditation on the ideas that shaped his vision of an emancipated post-colonial nation.
The ideological leanings of the Indian freedom struggle moulded the Indian constitution to a large extent and laid down the vision of India as a welfare state. The Directive Principles of State policy testify to this idea of a political, social, and economic democracy that would directly intervene in the lives of the citizens to ensure them equal opportunities to improved material standards of living through equitable distribution of rights and resources. However, despite some formidable measures in the direction, the Indian state has largely failed to live up to its commitments. Despite government regulations, the feudal structures, and later the big corporates, have had almost unrestrained authority over apical decision-making. The state, even with its numerous progressive measures, has not been able to bring substantial changes in the social and economic living standards of the historically marginalized communities. Rebellions have been curbed in imperial fashion, with the state killing its citizens in Kashmir, Nagaland, Tripura, Punjab, Chattisgarh, and in other places. Government policies in the various social sectors have had less penetration into the most vulnerable sections of the population due to a lack of practical implementation capacities and institutionalized corruption. Under the tutelage of the present government, bureaucratic apparatus seems to be in disarray now more than ever, with red-tapism and delays defining almost every policy.
The current ruling dispensation with its populist agenda and rhetoric has been propagating a clouded idea of a welfare state that has little to do with long-term development. The idea that a rise in GDP or rather only economic growth can ensure a sustainable solution to the problems facing us as a nation, is rather myopic. The Modi government has spent large amounts of its efforts and resources to ensure humongous publicity of its apparent welfarist agenda but has failed miserably in delivering its promise in reality. In all probability, the resources spent on publicity would be put to better use in the targeted implementation of the policies being announced.
The Covid-19 pandemic and the subsequent crisis that loomed over our country has exposed the blatancy of the failures of the Indian promise of a welfare state. The central government had imposed a countrywide lockdown at a 4-hour notice, which evoked the worst humanitarian crisis of the recent past. Visuals of thousands of migrant workers, dazed and obfuscated, walking on foot from big cities back to their villages ravaged the collective consciousness. The government, which should have taken up the responsibility of ensuring them safety mechanisms as a welfare state, remained largely insensitive towards the woes of the migrant workers. Add to this the simple fact that the Indian health care expenditure by the state and central governments is a mere 1.29 percent of our GDP, with a total expenditure being 3.6 percent (out-of-pocket and public taken together) which far lesser than the OECD whose average is 8.8 percent. The per-person expenditure though has gone up from Rs. 1008 to Rs. 1944 from FY 15 to FY 20 (Sources: National Health Profile 2019, Government of India; OECD) but this does not justify the abysmally low health care expenditure. Unemployment rates skyrocketed, with India having record unemployment dating back to 45 years (according to Centre for Monitoring Indian Economy or CMIE) much before COVID-19. The pandemic has led to the incomes of the daily earners being stalled, savings of the rural and urban poor dried out, and millions were left to their fates, vulnerable to hunger and disease. The state announced a magnanimous economic stimulus package, which majorly aimed to strengthen the supply chains, without addressing the demand side problem. At a much later stage, universal free ration distribution schemes were rolled out and fund allocations in MGNREGA were increased to generate rural employment. However, the state’s apathy and indifference towards the most vulnerable showcased itself in many ways. Migrant laborers had to face insurmountable problems to reach their homes due to a lack of specialized trains and other commutation facilities. Rural artisans, fisherfolk, and landless agricultural laborers found themselves at dire straits trying to pull strings together without any employment. Farmers, under compulsion, had to sell off their produce at cheaper rates than usual, bringing themselves into newer debt traps. The “welfare state” took almost no initiative in trying to mitigate their problems by buying their produce from them at sustainable rates.
Education which is a pivotal component of any welfare state faces a similar misfortune in India with the public expenditure on education totaling to 3 percent of our GDP for FY18-19 according to the Economic Survey of India, which is much lower than the OECD countries. The low public expenditure on education and healthcare is a manifestation of the Indian states move away from the agenda of welfare and when this is compared to our defense expenditure, which has seen an astronomical rise in recent years (most notably, 10 percent for the current fiscal year according to the Institute for Defence Studies and Analysis), one can only say this with even firmer conviction. Having said this, a mere increase in expenditure on health and education is not the answer. Their quality should also be improved. India ranks 62nd in terms of quality of education according to the International Institute of Management Design and 145th Health Care Access and Quality of HAQ index. There needs to be a radical refurbishment of the education system to free itself from its colonial bearings and create a conducive system that fosters critical thinking rather than rote learning.
If India were to pursue a comprehensive welfare agenda, the government apparatus has to focus more on how to look after the lowest income strata and this can only be done through the promotion of small businesses, ownership of means of production at the rural, forming a more robust framework for micro-finance institutions and Self-Help Groups which have shown great promise in our neighboring countries, most notably Bangladesh. There have been talks about implementing an urban equivalent of the MGNREGA, which could hugely benefit the urban poor if implemented. India also has to look after the welfare of its agricultural and industrial workers and the government’s liquidation of labour laws in the wake of the pandemic is nothing but a blatant refusal to perform its duty. India faces a huge problem of proper wage distribution to the rural poor and according to a study conducted by eminent economists, for every 100 rupees of production at the rural level, the farmers only get 8 paise as wages. There also needs to be an increase in government spending with money directly accruing to the people so that the demand for goods and services go up. The reluctance of this government to increase its budget deficit in fear of the financial markets is a part of its pro-big business agenda. Another important aspect that merits mention is the fact that most welfare functions of a state have historically been discharged by the government through public enterprises and entities. This government on the other hand, desperate to lower its budget deficit seems to have an undying fetish towards disinvestment of the very same institutions that are meant for welfare.
The welfare state is one that ensures equal political rights to its citizens. However, the Indian state has gravely faltered in its conviction when it sought to crush dissent by jailing student activists who participated in anti-CAA protests, leaving them vulnerable to the transmission. A large section of the civil society has cried foul against the treatment meted out to public intellectuals heavily critical of the government, like Varavara Rao, Anand Teltumbde, and Goutam Navlakha, where they have been kept in jail under dubious sedition charges despite serious health conditions. The existence of draconian legislations like AFSPA, UAPA, PSA (in Kashmir), and the communication blockade enforced on Jammu and Kashmir from 5th August 2019 after the abrogation of Article 370 raises serious questions regarding the democratic ethos of our welfare state. We find an increasing tilt toward the creation of a culture of obedience and conformity, rather than an atmosphere of free and rational thinking, which should define a welfare state.
To conclude, a welfare state aimed towards the equitable distribution of resources would have more focus on delivering its promises with a multifaceted social security net and social welfare policies. When states deliver on such a promise, it can lead to a virtuous cycle where development leads to more development and where people are empowered to seek better standards of living. However, in today’s India, the government bias towards the big corporates has led to a skewed agenda of development that has favoured the haves instead of the have-nots. While the neo-liberal idea of the welfare state is something India adopted from the west, the inspiration that it took appears to be missing today. This only means that the idea of the welfare state that has been enshrined in our constitution have only become noble ideals and not one of noble initiatives to help those who are most need.
Written by Ananyo Chakraborty and Satadru Bhattacharyya. Satadru studies MA Economics in Ambedkar University, Delhi and Ananyo studies History in St. Stephen’s College, Delhi.
