Saturday, September 17, 2011

Well intended policies,unintended consequences

  1. People are better educated, live longer and face a better quality of life
  2. Phrased this way, this is difficult to argue with these propositions. 
  3. But when thought of as
    1. Poorly educated unemployable students unwilling to get their hands dirty with 'real work', deferring joining the workforce for masters degrees of questionable value. 
    2. People living healthier life, consuming more food/resources AND facing income deficit in their old age, with more claimants on land. 
    3. Infrastructure encouraging more cars, higher fuel import/subsidy bill, pollution etc
  4. Then it would show how the healthcare, education & infrastructure boom may implode India
  5. Already, some signals of these consequences are apparent
    1. Farmers in the grain belt(Punjab/Haryana) incurred more wage cost due to competition from NREGA, so they suffered lesser yields AND higher costs, so now want a drastic hike in MSP, which will increase inflation, and in turn the inflation linked NREGA wage. Vicious cycle
    2. The war for minerals being played out in the poorest tribal areas, is partly due to this increase in resource demand, due to consumerism
      As one of those consumers in the above post(though better educated hopefully!), I cannot really condemn         this income levelling measure. All I can say is that if the consequences of some policies were thought out
     and debated as extensively as the Lokpal Bill is, these effects may have been reduced.  

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