Prasada rao lecture SOCIO-ECONOMIC AND POLITICAL SITUATION
OVERVIEW OF THE SOCIO-ECONOMIC ANDOVERVIEW OF THE SOCIO-ECONOMIC AND
POLITICAL SITUATION OF THE COUNTRYPOLITICAL SITUATION OF THE COUNTRY
- Dr. Prasada Rao, Dept. of Economics (Retd), Andhra University, Waltair
Good Morning to all of you.
Major theme of the paper is to suggest some solutions to the problems this country is facing
now. We will find elaborate solutions to the problems this country is facing now.
As a member of Lok Satta, Dr. Jayaparakash Narayan, a doctor by training, an administrator,
resigned his IAS position, thought about the problems this country is facing. Governed by
certain conduct and discipline, one of the great thinkers of this country, started this Lok Satta.
Aout two months back joined another organisation called Janadesh in Karnataka. Mission is to
strive and fight for political and democratic reforms of this country.
Empowerment of Dalits, Children, women etc. Many prolems this coungry I facing now, India is
although rich in resources. Our country is facing all these problems because of lack of good
governance. People who are supposed to take this contry forwared are not right. The system is
like that. Working with smaller groups is necessary but it is not the final soucltion. Ladership
commitement, farreaching democratica and political system.
I will com to the solution part at the end.
With this agenda as a person deeply inoved and concern of the disadvantaged people for the
You have one of the best advantages, for bringing change among rural people. Ve
India appears to be poised to a big leap in the next two decades. Unique demographic profile.
India is riddled with problems, centrifugal forces threatening this. Leap is inescapable.
Weather to reach the heaven of freedom, RT, Status of super power. Involvement of citizens.
Dynamc and dedicated hones politicians to bring change.
India vision 2020.
Tagores vision: The report of the committee Chair. SP Gupta. RT freedom. A quote from
Rabindra Nath tagores ‘Heaven of Freedom’. Tagores vision.
Summary of tagore: Fearlessness, selfrespect, knowledge is free, every individusl is giben a
choice, full potential to self a freedom envisaged by tagore.
When compared to this vision what do we have?
India per capita incove doubled, 1.6% pop growth. Trends of economic growth is encouraging.
India will become a super power. India attains a level of development at par with upper with
and middle income growth. Food stocks have improved. All these forces.
Vision 2020 broader objectives:
9% growth in GNP: GNP has reduced by 6 to 7% this year.
Food for all: India achieved a self sufficiency in food granis in 1970s and growing since then.
From the status of importing food grains we have achieved self-sufficiency. We are overflowing
with food stocks and on the other side, people are there with empty stomachs and under
nourished. Produced enough food grains and sulf sufficient but the problem is with distribution.
Lack of purchasing power among rural poor is another major concern. With globalization and
liberalization the world has shrunk and there is competition from all over the world. The total
over all food production is good and encouraging. Oil seeds and edible oils it is not satisfactory.
The WTO effect even destabilization in the production has come into effect. Fate of suicides
has increased, and it has not come down. Why? A serious thinking need to be made. From
brazil, other countries of Europe, our agriculture may not be able to compete. Adequate
amount of investment in research and development. We should go for diversification. At such
loads of yields, we man not be able to continue, imports from abroad. Per Hec yield in India
5.3 world is 8
Maize 1.9 metric tones where in the world like 8 to 9 mt. The rulers and politicians are
responsible. With our levels of production. Diversification of cropping pattern. From growing
paddy wheat and food grains, our farmers should be able to grow commercial crops. 800 mt is
35 million persons in 2002 are unemployed in India. India’s status of unemployed by 2020 would
be 160 to 170 million. By 2020 we need to create employment to 200 million people. The
organisation profile is 8% employment. People full time / part time we voluntary create 10
million people. 92% emploument comes from unorganized sector. We don’t know the problems,
requirements, etc. The simmering disgruntled unemployed youth would bring in chaos and
The organized, public and private sector. The employment opportunities in Public sector are
coming down because of disinvestments. Left is opposing, as people would loose their jobs.
During last government, people lost over 1 million jobs due to disinvestments. Small and
medium scale industries would create job opportunites, in korea and japan this sector bringing
in more opportunites. Our policy makers need to think on this. We may not reach haven or
freedom, but hell and Misery by 2020. We must concentrate training youth in small and
medium and vocational programmes.
Education alone would provide employment. It has grown, number people and Number of
colleges. But what is the quality? are increasing. Illiteracy is also increasing because of growth
of population. If at all any larning is there people mugup and reproduce, not creativity and
ingenuity. Formulate a good education plicy in this country. Alloation of enough funds for
education. The investments in education is 3.2 to 4.4 percent in GNP should be atleast 8% of
Favourable demographic profile: Distribution of population age wise. In next 15 years, In
majority of the countries in the world would have >65% of the population be above 65 years of
age. The overpopulation has become a boon / bane?
65% of our working population will be in the working age group (18 to 25 yrs).
The youth age group population is beneficial to many countries, contributing to the growth of
their countries. The youth require training and also should have necessary skills in vocational
programmes. The vocational skilled people in USA yearn more than many other professionals.
Lots of forex to our country.
Countries like Japan and Korea, India’s expenditure is 1/60 of Korea, 1/340 of Japan is the
expenditure on research and developmet. To take advantage of population profile and take
advantage we need to be better equipped. We always boast of scientists and engineers
absolute but not of great quality. In proportion ot the percentage they are more in Korea and
Indian economy is a gabling,
Agriculture still plays an important role in the economy wether it is drought / floods.
Population is increasing and unemployment defineltly they will be unsatisfied. This country
might face a catastrophy.
What is the leadership we have on economic, social and other fronts. To summarise the
economic dimension. One is growing bublic debt. The central and state govts are borrowing
both right and left, where are they spending this money, not on social, education, housing and
health. Where is this money is gowing. It is estimated that our bublic debt runs into per capita
>Rs. 20,000 per head. That Rs. 1 lakh per family.
For salaries, repayment, defence etc. Very little is left to spend on social and other needy
Health for All
It has improved a lot. People are living longer. Infant mortality has also reduced by 60 to 70%.
Similarly birth rates have come down. Simultaneously we need to address, environmental
pollution, health, and other issues etc.
To bring in metamorphosis, a change what we shall do? Large part of the borrowings are going
into areas where the politician can grab money for himself. If we undertake irrigation projects
huge amount. Money is being paid to contractors and they are not doing any work. The real
estate boom is very high now, it could be the black money, corrupt politicaians, bureaucrats,
etc. Govt. should prioritise the areas for investment.
The money and efforts are not going into areas where they need to be spent. Who should look
into this, Politician or bureaucracy or Judiciary. In democracy the Judiciary, Legislature and
Bureaucracy should be separated. In India there is unholy nexus between the three
Between these three wings of the government, there could be justice to all. But they got
mixed up now. The politician has become unscrupulous, the bureaucracy has also become
corrupt learning form other. The police officers have also become corrupt. The MLA /
Legislator decides the beneficiaries. In Visakhapatnam lots of money was distributed in the
name of tsunami, but why they were distributed money. The fishermen whose boats were not
destroyed were also paid. Tainted ministers were taken into the cabinet all the Govts. are
doing similarly. Omnipotent legislator is controlling the reins of this country.
What sort of people are entering into politics. There are also some good people. But vast
majority of people are coming into politics with vested interests and to make business. 100
members have criminal record of one kind or the other in parliament. In state legislator there
are plenty. A few powerful and dynastic rulers are controlling this country. Similarly in every
state such dynastic families are ruling.
There is no good response from the bureaucracy. Politician dominating the entire scene from
top to bottom. The election process is also very defective. Lok Satta conducted survey, it is
found that 40% and 80% of the votes in Urban and Rural Center are defective. That is why due
the efforts of Lok Satta a through list has been prepared. Impersonation, buying liquor and
money are there in the political situation.
The word Civil Servant signify, to be
We are paying for their salaries he is bound to be civil and courteous to us, and they need to do
service to us. So there are neither Civil nor service oriented towards us. The rapid decline of
the quality of the civil servents declined from the emergency period in 1970s.
They do favours to the politicians and vice-versa. A senior official was using 9 vehicles for her
service. The cabinet member himself was not having a vehicle. CBI has also become corrupt
too. In telugu there is a saying “Kanch Chenu Meste evaru dikku”
Justice delayed is justice denied. There are 30 million cases pending in courts at the present
pase it would take 300 years to dispose them. The criminal procedure and evidence procedures
should change. They have a vested interest in this, if everything is as per the rule of the law,
then they can survive. Litigation has become expensive. They are resolved into settlements in
towns and villages. The poor man cannot thing of getting justice. In Gujarat a Judge has taken
rs40,000/- and issued non-bailable warrents against the president and chief-justice of India.
That is the fate of judiciary in India. I
It is in a rotten state. We have become corrupt. Ours is top in the list of corruption. Lot of
work has been done. In this regard Dr. Mahabubhal Haq of Pakistan, has done a lot on the
governance problems. With out corruption the economic growth rate can be increased by 1.5%
in Pakistan. In India it is said that corruption, corruption occurs upstream not downstream, at
higher level it is more dangerous. Corruption takes wings rather wheels, a higher level person
would put it in swiss banks, downstream people would invest in the country.
Coruption occurs in India with 260 million peoples. The corruption is causing lots of damage to
the poverty striken.
Through democratic reforms we can change the present scenario.
All the contesting people should submit their affidavit on their, status, criminal record etc.
Supreme court said ok. But the CEC said that the govt should decide on this. In parliament it
was decided by all the politicians and said we need not give. SC squashed this order and said
you need to furnish. Like Lok Satta we need to take a active role and change the situation.
The problems of this country can be solved. Only if proper original leadership is choosen or
elected only then the problems can be solved. The present elected people majority of them
1. The first past the post system – simple representation of the proportional representation
system, things can be set to a large extent. Everyone will have two votes, to the candidate
and to the party. Half of the members 140 will be elected on the basis of votes and the
other 140 would be by the political party representing people from their side based on the
sex, caste, etc. Developed in many developing countries, and being campaigned by
Janadesh, Lok Satta (“Vote India” campaign) etc.
2. Direct representation of the head of the state like CM. The people have choice.
3. Internal democracy and transparency with in the political parties.
Transcript of lecture by: Dr. N. Sai Bhaskar Reddy