Tuesday, October 20, 2009

Kerala and BPL

Kerala and BPL.

Recently I read an article about poverty in Kerala. It argues that it is a major concern and warrant social and economic changes to eliminate it. Eliminating poverty is a mirage. It exist even in the richest society. It is a relative concept. Moreover there is another view about poverty in Kerala. A couple of decades ago I was introduced to Air vice Marshall K. A. Joseph in his coupe in the train journey from Ernakulam to Trivandrum. A forty-one day old strike in Aluva FACT was on. In our discussions the Marshall said, “Such a long strike will not happen in any other part of India. Kerala is God’s own country. Every inch of it is fertile and produce edible fruits, roots, leaves and meat. If none of these exist in your homestead, they are in the neighbor’s plot. Except destitute, none experience real hunger in Kerala. Staying power enables the Kerala strikers to continue endlessly”. Despite this view, poverty exists. Amelioration is imperative. Calculation of BPL (“below poverty line”) is necessary. But more than economic change, a change of the mind is the need. World can provide the needs of man, but not his greed.

Abject and Relative poverty
Poverty is a state of the mind. It is an experience of not having; not getting what you want. Basic needs of life like food, shelter and clothing are examples. Those who do not get income to purchase even these needs suffer abject poverty. They are few. All others, except abstinents, encounter relative poverty.

Physical needs are easily satisfied. The rest are psychological needs. Full satisfaction is impossible. Relative poverty applies to these demands. Consumption depends on the income (percentile income) of the individual vis-à-vis of his social group. A person with higher income than of others in a group can maintain a higher level of consumption and feel rich. If he moves his residence to a still higher income group locality, his consumption basket is relatively less than that of others. He feels poorer. He suffers relative poverty. Such poverty exist at all times and in all societies and countries; rich / poor. It is a mental attitude. To quote the Bible: “poor will always be there”.

Amelioration of conventional poverty.
Poverty is caused by low or no income. It is classified into Destitute, Conjectural and Mass poverty. Abject poverty of the destitute is more due to lack of love, care and no income. Their rehabilitation is effective in the hands of the NGOs than the State bureaucrats. Conjectural poverty arises due to inadvertent maladies like earth quakes, flood, war destruction etc. In this case massive transfer of resources from those who have to the victims can be arranged by the State through tax and non-tax sources. Here again servicing the aid will be better done and without corruption by philanthropic NGOs. Mass poverty is often due low economic development of the country / society. In this case, heavy investment by the Government on infrastructure, agriculture, industrial production and rural and urban employment schemes are warranted.

BPL
Those who suffer abject poverty in God’s own country (Kerala) are small in number. But Politicians want as many relative poverty sufferers as possible in the BPL category to pressurize administration for subsidized food distribution.

BPL and APL (“above poverty line”) are conceptual attempts to measure the number of poor who require anti-poverty help. Traditional calculation is by the minimum income to consume 2500 calorie of food per day. Those who have that income are APL and others, BPL. When India became independent more than 50 % of the population was in the BPL group. The Planning Commission of India claims that economic planning & growth reduced it to 28 % or around. But many argue that BPL calculation criteria must change to include good food, decent shelter, clothing, health care, education facilities, freedom of expression etc. If this is adopted, most of the population will come under the BPL category.
Conclusion
Central Government is only for Targeted Public Distribution of food to the BPL families, to reduce the cost of food subsidies. But Kerala insist on Universal Public Distribution: of subsidized food to all in the State. Kerala had this system for decades. .The State argues; if universal rationing is not possible, at least make the BPL criteria broader to include more families in.

Because of awareness of our fundamental right to employment, income and consumption, we all claim to have the right to get food and all needs at the lowest / subsidized prices. Though the State is deteriorating in agricultural & industrial productivity and production, we maintain very high consumption pattern including costly and sophisticated durable consumption items. Kerala is “the” market for even posh costly motor cars. Around Rs. 2000 crores / PM are brought in by our NRIs. It runs down and percolates to increase the income and consumption of all in the State. All of us, excepting the destitute, are APL. Claiming to be BPL is a political gimmick. If it is relative poverty, we are all in the BPL category. Eliminating this poverty is impossible.
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