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Under the Indian Constitution the scheme for the social welfare
is reflected in different provisions of the constitution. There are
implicit and explicit references to the social welfare obligations of
state in different provisions; we can study these provisions one by
one:
Socialist State
1. Increased Rich Poor Divide: The gap between the rich and
poor has been widened all over the world. At global level the
richest 10% of the population earned 79 times higher than the
poorest 10% used to, in 1980; till 2003 the income of top 10%
population was 117 times higher than those of poorest
10%.vii In India the high rate of GDP has substantially
benefitted only the upper 10-15% people, and depressed
employment for marginalised section of society.viii The top 10%
of the population has a share of around 52% in the national
wealth, and on the other hand the share of bottom 10% has
been reduced to 0.21%.ix
2. Neglect for Agriculture: From 1991 agriculture and farmers
have been neglected by the government, and the average
budgetary expenditure for irrigation is less than 0.35%. x The
agriculture investment, which was 1.9% of the Gross Domestic
Product (GDP) in 1990-91, has been decreased to the extent
of 1.3% of the GDP in 2003-04.xi The expenditure on
agriculture has decreased continuously as in the 9 th plan it was
4.37%; in the 10th plan it was 3.86%, and in the 11th plan it was
only 1.83%.xii The budget for 2011-12 is the most recent
example of the neglect of agriculture by the government; the
budgetary allocation for “agriculture and allied activities” fell by
Rs. 5422 crore, or by 4.3%, in comparison to the allocation for
the year 2010-11.xiii In the last twelve years there were 2 lakh
suicides by the farmers, which is the evidence of pitiful
conditions of agrarian sector.
3. Devastation of Small Scale Industries (SSIs): It was
observed that more than 3 lakh small scale industries and
more than three lakh handloom and power loom units were
closed down due to the impact of globalization, because of
decreasing bank loans to the SSIs. The allotment of funds to
the SSIs has also been decreasing continually in terms of
percentage; in seventh five year plan (1985-90) the outlay for
SSIs was 0.42% of the total expenditure; in 8th plan it
decreased to 0.33%, and in 9th plan it further decreased to
0.12%.xiv Even in the terms of growth performance the SSIs are
lagging behind from the time of inception of globalisation; in
1990-91 the percentage of growth rate was 6.88%, but till
2002-03 it has been decreased to the extent of 4.69%. xv The
SSIs are very important units for providing self employment in
rural and suburban area, and they have potential to make
people self sufficient, hence by neglecting the SSIs the
government is definitely deviating from its welfare obligations
towards people.
4. Ecological Damage: At many places the environment was
harmed by the factories of big companies without any action
taken for the restoration as like contamination of water by
Coca-Cola plant at Plachimada, Kerala; ecological damage by
Pepsi at Himalayan pass;xvi damage of Tajmahal by industries
of Agra; pollution of Ganga river by the industries of Kanpur
city, etc,. In fact there has been total indifference from the side
of government, and it has compromised the environment
frequently for the sake of foreign investment. It has been seen
that the government has failed to enforce the corporate
environmental responsibility, so much so that the people
affected by the Bhopal disaster could not be provided
adequate compensation till now.
5. Regional Disparities in Development: It has been seen that
the impact of the economic policies of the government has not
resulted in inclusive and equitable development, but rather big
disparities have arisen in different regions. Generally speaking
the southern states and western states have acquired
accelerated economic growth, and the north eastern and
central parts of nation are lagging behind.
6. Financial Inclusion, a Distant Dream: Financial Inclusion
which has been an issue of concern from the time of
independence itself is still a distant dream. Half of the
population in India does not possess a bank account, 90%
people have no access to credit or life insurance cover, and
98% had no participation in the capital market.xvii
Conclusion
End Notes