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Gujarat: Persecuting People (through) Greedy Governance (P2-G2)

Gujarat has industrialized, but not developed. It has done this by crushing the under-privileged, the marginalized and the aam admi. Modi prioritizes the greed of mega-corporations over the needs of the aam aadmi.

Introductory Argument

Rationale for Government and development: A nation develops to empower its people by establishing institutions, both public and private, that support them to realize their dreams. A Government provides full opportunities of growth through easy access to these institutions. Ultimately, each and every individual and community is the raison detre of development (Rio Declaration, United Nations, 1992), and a Government has to be of, by and for this community of people. Development in Gujarat is anti-people: Gujarat is the one state where goals like social quality, sustainable livelihoods, access to education and health, justice and peace have been bypassed by an authoritarian despot, who has been hand in glove with big businesses. The so called development in Gujarat has been anti -poor, anti-dalit, anti-women and against all minorities and people on the margins, as also the aam admi. The states outcomes on employment, poverty, education, health, inequality and consumption, the things that matter the most to the people, are dismal.

Why this anti-development matters to India: Modis governance style is similar to a fascist dictatorship, where one leader rules by personal dictat. He brooks no opposition, not allowing any room for legislative accountability (the Gujarat Assembly was allowed to meet for only 30 days a year on average for the past ten years, much less than the preceding years). The impacts and consequences of development in Gujarat could well be a precursor for the rest of India, and we need to be aware and wary of the choices imposed by Modi.

Key Argument I

Gujarat has industrialized rapidly, but the Modi Government has turned a blind eye on how these mega-corporations industrialize, and has actually aided them blatantly.

Modi blatantly aiding mega-corporations, not people: The development of Gujarat is completely dependent on the private sector, and Modi has been bending over backwards to ensure that mega corporations earn a massive profit. Under Modi, the Gujarat Government has imposed: i. Agricultural land converted to non-agricultural: Legislative changes in the land use norms have made it easy for large corporations to grab land, dislocating farmers (these have also reinforced speculation in land). Modi Government turns a blind eye on standards and practices of businesses: The Modi government has enforced a policy that ensures that any unit (up to Rs. 40 lakhs) can be set up and operate without any government inspections. This gives even small businesses complete freedom to do whatever they want in their firms. A study conducted by the Peoples Training and Research Centre (PTRC) found that a large number of children were employed in the agate industry, and despite repeated petitions, the Modi Government ignored it. Further, the National Commission for the Protection of Child Rights found that a large number of children were forcibly employed in Banaskanta, Sambarkanta and Patan districts in the BT cotton industry. iii. Development of only that kind of infrastructure that aids big businesses (these include road and rail access to SEZs, SIRs and big factories). Mega-corporations, with Modis support, discriminate against their staff: The Economic Survey, 2011 listed Gujarat as the worst state for labour unrest. Gujarat witnessed the highest number of strikes and other forms of labour unrest because mega-corporations in Gujarat gave poor wages, allowances and bonuses, and stamped out indiscipline by using State sanctioned violence against personnel. Mukta (1990, 2002) has argued that it is not unusual for capital to defend their economic power by what they like to term as rule of law. This means a political culture of



authoritarianism, which uses brute force to subdue any request for equality or fair treatment by workers. Low FDI because of Modi Governments poor record in curbing human rights violations and support of discrimination against workers: Although Gujarat contributes to approximately 16 percent of the total industrial production, most of this driven by domestic investment. Gujarat accounts for merely five percent of FDI since 2000. The reason for this is that multi-national corporations cannot afford to have their images tarnished by being associated with a State that encourages discrimination against employees and human rights violations. After Maharashtra, Delhi is the preferred destination for foreign direct investment (20.72 percent), followed by Karnataka (six percent) and Tamil Nadu and Pondicherry (5.27 percent).

Key Argument II

Gujarats development is comparable to other States, but is heavily concentrated in select areas and sectors, which limits the benefits to the people.

Summary of Gujarats success story: Gujarat accounts for seven percent of Indias GDP, 14 percent of Indias manufacturing gross value added, nine percent of employment 17.25 percent of fixed capital and ten percent of total number of factories in India. Growth rate in Gujarat, comparable to other states: Gujarat has grown at 10.5 percent per annum GDP growth in the last decade, comparable to Maharashtras 10 percent, Haryanas 9.2 percent and Tamil Nadus 8.5 percent. Investment concentrated in only a few districts; investment pattern politically motivated: On the face of it, Gujarats growth story has been evenly distributed (industrial sector: 40.7 percent), (services: 47.2 percent) and (agriculture: 15.0 percent). However, 80 percent of the total investment is heavily concentrated in only five districts (Hirway, 1995; Awasthi, 2000), and there has only been investment in those districts/ constituencies where the BJP is dominant (BJP controls 48 out of the 57 seats in the said districts): District Ahmedabad Bharuch Jamnagar Kachchh Surat Total Seats 21 5 7 6 18 57 BJP 17 4 5 5 17 48 Investment Percentage 9.28 13.52 13.94 32.26 10.74 79.74

In comparison, North Gujarat which has primarily INC legislators (Sabarkantha and Banaskantha districts) has suffered because Modi has deliberately misused public funds for political gains. Manufacturing concentrated in just three districts: A key part of Gujarats industrialization is manufacturing. However, only three districts, namely Jamnagar, Vadodara and Surat account for 60 percent of gross value added, and 64 percent of fixed capital in 2005- 06 (again all three are dominated by BJP legislators, which further points to the political misuse of development funds). Investment concentrated in only a few highly technical sectors; consequently employment generation is very limited: Most of the total investment is heavily concentrated in a few industry groups like chemicals & petro-chemicals (42.19 percent), textiles (10.28 percent), engineering equipment (8.1 percent) and metallurgical industry (8.07 percent). Because of the highly technical nature of the industries that drive Gujarats growth, refined petro chemicals provided negligible employment, while the chemical sector provides for only 23 percent of total employment.

Key Argument III

The benefits of Gujarats rapid industrialization have not trickled down to the employees of the mega-corporations, let alone the aam admi. This capital intensive form of industrialization has adversely affected the aam admi.

Sectoral growth rates has not translated into high employment rates: Despite high growth rates in key sectors like agriculture and manufacturing, these same sectors saw negative employment growth rates in employment, as compared to other comparable states, and the all India level. This further bolsters the argument that the so called development in Gujarat helps mega -corporations, and not the aam admi.

Agriculture Industry Services

Comparison of sectoral contribution to GDP versus Employment Growth Rate Gujarat Haryana Tamil Nadu All India GDP Employment GDP Employment GDP Employment GDP Employment 3.19 -1.59 3.72 -3.1 3.33 0.14 3.21 -2.2 10.14 -0.79 7.87 4.88 6.53 2.08 8.87 3.05 9.60 -2.23 7.48 3.72 7.33 -1.8 9.62 -1.64

Source: NSSO, 50th, 61st and 66th Rounds, Employment-Unemployment Situation in India.

Rise in wages not commensurate with industrialization: With such rapid industrialization, it would be fair to expect that there would be a commensurate increase in wages. However, in fact, in Gujarat, the growth rate of wages in the organized manufacturing sector grew slowly by 1.5 percent in the decade of 2000 (all India wages grew by 3.78 percent). As evidenced, Maharashtra and India as a whole have had a higher increase in the growth rates of wages per employee. Growth Rate of Wages per Employee 1990s 2000s Gujarat 3.70 1.48 Maharashtra 1.52 2.20 All India 1.54 3.78
Source: Annual Survey of Industry (various States), 1980- 81 to 2007- 08.

Consequently, low rise in wages has adversely affected per capita expenditure of the aam admi: This slow growth in wages has had severe consequences for the average monthly per capita expenditure in Gujarat, which grew at much lower rates as compared to the national average and growth in other comparable States. In 2009- 10, the average monthly per capita expenditure in Gujarat was Rs. 1, 388, as compared to Haryanas Rs. 1598 and Maharashtras Rs. 1549. In the urban areas, the growth in average monthly consumption expenditure in the state of Gujarat was marginally less than the national average (2.13 per cent per annum compared to average of 2.4 percent) and the advantage that the state had between 1993-05 was lost during 2005-10. In urban Gujarat, 60 percent of the population spends less than the state average of Rs.1909 per month per head which is lower than the national average of Rs.1984 per month per head. In rural Gujarat too, 60 percent of the population spends less than the state average of Rs.1110 per capita which is slightly higher than the national average of Rs.1054 (NSSO 2009-10 the survey on consumer expenditure by households).

Employment record dismal; marginal groups lose out on benefits from development : It has been pointed out that while Gujarat has experienced rapid economic growth, it has not experienced any structural transformation in employment (Bagchi, Das and Chattopadhyay, 2005; Hirway and Shah, 2011a). Between 2004- 05 and 2009- 09, the manufacturing sector saw negative growth in employment (-2.6 percent), and there has been a huge rise in the number of casual workers in Gujarat (casual workers have no security of tenure or social security benefits), with over 37 percent of all workers being causal. i. Unemployment rate across social groups: It is extremely worrying that the aggregate employment growth has been negative for all social groups (except the General category) and stagnant for the Scheduled tribes. Unemployment rate by current daily status (urban), 2007- 08. Scheduled Scheduled Other Backward All Social Others Castes Tribes Classes groups Gujarat 6.9 6.2 3.1 3.4 3.9 Delhi 4.9 NA 0.4 2.4 2.6
Source: NSSO, 61st and 64th Rounds (in Human Development Report, 2011).


Unemployment rate across religious communities: Consistent with the stereotype of the Gujarat Government deliberately ignoring religious communities, the unemployment rate shows that religious communities do poorly in terms of employment.

Unemployment rate by current daily status (urban), 2007- 08. Hindus Muslims Christians Gujarat 3.7 5.0 5.4 Delhi 2.8 2.4 00
Source: NSSO, 61st and 64th Rounds (in Human Development Report, 2011).

Female workers treated poorly in Gujarat; reflective of patriarchal RSS attitude of Modi government: Firstly, the proportion of women workers in Gujarat is very low (around five percent of total), as opposed to Indias 20 percent. In Maharashtra its around 14 .4 percent and in Tamil Nadu its 41 percent (2000-10). Moreover, it has been pointed out (Ghosh, 2009) that women workers in the organized sector earn only 38 percent of what men earn which severely limits their financial independence.

Poverty in Gujarat: Gujarat has 23.22 per cent of its population living below the poverty line as per NSSO 2009-10. This is much higher than Haryana (19.88), Tamil Nadu (17.42), etc.

Key Argument IV

Agriculture in Gujarat has grown faster than the national average (7.64 percent as compared to 2.96 percent), but this has been achieved at the cost of the corporatization of agriculture.

Agriculture corporatized; benefiting only huge agri-businesses: The Modi government changed the policy on land use (implemented by a Congress Government) by abrogating the rule that a famer has to stay within eight kilometres of the farm (this was to prevent absentee landlordism as well as land grab by huge businesses). Loss of Common Property Resources (CPRs); windfall gains for mega-corporations: Further, on the 17th of May, 2005, the Modi government issued a resolution (Gr. No. JMN/3903/453/A) allowing megacorporations to start corporate farming. Up to 2000 acres of CPRs can be appropriated by these megacorporations for 20 years for a mere Rs. 500 security deposit, and no interest for the first five years (following which, they have to pay only Rs. 40 per acre till the eleventh year, and Rs. 100 henceforth). These mega-corporations are further allowed to mortgage these lands to any banks (who can then do whatever they wish if such eventualities arise). This has led to non-local, non-farming corporate agro-industries to capture rural land markets, and severely deprive the local communities. There has been a dramatic increase in land holdings over 20 hectares (increased by over one percent) in the last decade, and this trend implies a complete restructuring in the rural landscape of Gujarat.

Declining share of agriculture in GDP possibly linked to corporatization of agriculture : In 200910, the agricultural allied sector employed 53 percent of the workforce, but contributed to only 12 percent to Gujarats income. Jodha (1990) has pointed out that CPRs (forests, pastures and common grazing lands) are extremely important for the rural poor, who depend on these to complement their already meagre incomes. By disallowing the use of CPRs and corporatizing agriculture, Modi has severely deprived not just the vulnerable groups dependent on agriculture and allied activities, but also the 53 percent employed in agricultural activities. The number of SCs employed in agriculture in Gujarat fell by 6.86 percent, OBCs by 2.81 percent, and overall by 1.67 percent (all figures from 2004- 05 to 2009- 10, NSSO, 50th, 61st and 66th Rounds, Employment-Unemployment Situation in India).

The Modi Government has only been aiding mega-corporations increase their profits, and has dramatically reduced social expenditure. Argument V The so called development in Gujarat has been anti-poor, anti-dalit, antiwomen and against all minorities and people on the margins. The states outcomes on poverty, education, health, and inequality, the things that matter most to the people, are dismal.

Modi is industrys CM, not peoples leader: The service of India means the service of the millions who suffer. It means the ending of poverty and ignorance and disease and inequality of opportunity (Trust with Destiny, J. Nehru, 14th- 15th August, 1947). A Government that is for, by and of the people is mandated to ensure that the people may have full opportunities for growth ...if any government

deprives a people of these rights and oppresses them, the people have a further right to alter it or abolish it (Declaration of Independence, Indian National Congress, 26 th January, 1930). Modi focused on filling corporate pockets rather than supporting people : Ensuring full opportunities for growth means supporting the people to realize their full capabilities through a good education and proper health care facilities. However, the Modi government has deliberately ignored these two aspects, and this has led to widespread inequalities and poverty. 1. Declining state expenditure in education: Data shows that the total expenditure on education (as a ratio to aggregate expenditure) falls far below other comparable states. The situation is of serious concern because of the prevailing outcomes related to education, amongst social groups in Gujarat. Expenditure on Education* As Ratio to Aggregate Expenditure States 2010-11 2011-12 (RE) 2012-13 (BE) Gujarat 15.9 16.1 13.4 Haryana 17.3 16.6 18.3 Maharashtra 20.8 19.9 19.8 Rajasthan 19.1 18.0 18.5 Assam 22.0 18.7 21.1 Kerela 17.0 17.6 17.0
* Includes expenditure on Sports, Art and Culture under revenue expenditure and capital outlay (RBI, PRS).


Direct consequences of poor expenditure on education: a. Access to schools: Because of this poor expenditure in the education sector, the peoples access to schools is very poor. Ideally speaking, a school should be within two kilometres of where the student lives, to facilitate easy access and to reduce the financial burden of travelling to school. Percentage of households that have schools within two kms (rural). States Upper Primary Secondary Gujarat 76.30 42.12 Haryana 96.30 77.30 Maharashtra 79.56 61.85 Tamil Nadu 78.47 44.34 India 78.86 47.40
Source: NSSO 64th Round, Participation and Expenditure in Education Survey.


Percentage of people by different education groups: Despite what Modi may say in SRCC, the most damning evidence about the Gujarat growth story not being in favour of the people of Gujarat, is the percentage of people attending educational institutions. This is clear evidence that the Modi government is more interested in creating cheap surplus labour, toiling away to fatten the purses of mega-corporations, than actually ensuring their empowerment through good quality education. Education level No formal education Sec./High.Sec./Diploma Graduate/ PG Professional/ Technical Gujarat 32.6 13.5 3.9 14.3 Maharashtra 27.0 19.6 6.2 20.7 Tamil Nadu 25.8 17.4 5.3 31.8 All India 36.3 13.1 4.2 14.2

Source: NSSO 64th Round, Participation and Expenditure in Education Survey.


Indirect consequences of poor expenditure on education: There are wide disparities in the educational outcomes within Gujarat, and this is directly linked to the deliberate policy decisions taken by Modi: a. Literacy rate (6+ years age) by gender: As evidenced, the percentage in literacy rates gender wise, is massive, and this is directly linked to why women constitute for only five percent of Gujarats workforce. This lack of priority is reflective of the patriarchal attitude that Modi has inculcated as an RSS man.

States Gujarat Maharashtra Tamil Nadu b.

Female 64.80 73.61 72.74

Male 84.75 88.24 88.17

Source: NSSO 64th Round, Participation and Expenditure in Education Survey.

Literacy rate (6+ years age) by caste: In comparison to other comparable states, Gujarat fares poorly in the empowerment of SCs/OBCs/General or even the combined literacy rates. This further oppresses the already vulnerable sections of society: States Gujarat Maharashtra Tamil Nadu SC 74.57 78.08 72.87 OBC 70.27 81.1 81.96 General 87.98 85.78 92.8 Total 75.24 81.12 80.33

Source: NSSO 64th Round, Participation and Expenditure in Education Survey.


Persons currently attending schools by caste (11-14 years): The reasons for the low literacy rates are directly caused by a low emphasis on enrolment. This is again a deliberate casteist ploy by the Modi government to keep the vulnerable sections oppressed so they can provide cheap labour for the profits of the mega-corporations Modi is in bed with: States Gujarat Haryana Maharashtra Tamil Nadu All India ST 76.0 NA 73.8 83.6 77.2 SC 81.8 86.4 88.6 94.0 80.1 OBC 75.1 85.1 92.2 95.8 84.3 General 87.5 93.9 91.0 100 88.2 Total 79.3 89.2 89.4 95.4 83.9

Source: NSSO 64th Round, Participation and Expenditure in Education Survey.

Even Muslims fare poorly: As compared to 81.51 percent in Maharashtra and 87.84 percent in Tamil Nadu, in Gujarat, only 74.45 percent are enrolled in schools (in the 6+years of age category). This is also another vulnerable group that languishes in poverty and inequality because of the deliberate strategies employed by the Modi Government.


Low public expenditure on health: Data shows that the total expenditure on health falls far below other comparable states. The Modi government subsidizes mega-corporations so they can profit over the health of the people of Gujarat. If he comes in the Union Government, the consequences of reduced social expenditure could be catastrophic for the health of the people of this country. Public Expenditure on Health (as share of GSDP), 2004-05 Public Exp. As States Share of GSDP Gujarat 0.57 Assam Delhi Kerala Rajasthan Arunachal Pradesh Himachal Pradesh Jammu & Kashmir Mizoram Nagaland Sikkim 0.86 0.94 0.88 0.98 3.46 1.74 2.26 3.28 2.49 3.82

Source: National Health Profile, 2009, Ministry of Health & Family Welfare


Direct consequences of poor expenditure on health: The situation is of serious concern because of the prevailing outcomes related to health amongst social groups in Gujarat. This is directly because of the Modi Governments neglect of health care facilities.


Poor physical infrastructure of healthcare facilities: Compared to other states, the healthcare facilities available in Gujarat are dismal. The figures given below show just how committed the Modi government is in ensuring the health of the people. In fact, just comparing the situation in rural Kerela and Gujarat, we see Kerela boasts of 281 hospitals and 13, 75, 666 beds. Gujarat, with 282 hospitals has only 9, 619 beds.

Total number of Government Hospitals and Beds, 2009 Total Hospitals States Number Beds Gujarat Andhra Pradesh Delhi Kerala Maharastra Rajasthan Tamil Nadu 373 359 130 386 765 475 581 28,958 3,43,333 23,858 31,285 49,579 32,067 47,198

Source: National Health Profile, 2009, Ministry of Health & Family Welfare


Access to health care facilities: Apart from a fewer number of hospitals and beds, even the number of public medical facilities available to the people of Gujarat are very limited. This forces people to spend more on private healthcare facilities, and adds an unnecessary financial burden on the aam admi.

Percentage Distribution of Households by Public and Non-public Healthcare Provision, 2005- 06 Urban Rural All Public Private Public Private Public Private States Medical Medical Medical Medical Medical Medical Sector Sector Sector Sector Sector Sector Gujarat 16.8 81.1 35.2 61.6 27.5 69.8 Assam Kerala Orissa Rajasthan Tamil Nadu 45.8 62.2 59.2 53.5 37.3 40.3 52.1 79 74.7 46.8 19.9 25.2 65.2 50 76.2 70.2 53 34.5 49.1 22.9 29.6 46.6

Source: National Health Profile, 2009, Ministry of Health & Family Welfare


Indirect consequences of poor expenditure on healthcare: The indirect consequences of this poor expenditure and the resultant consequences on physical infrastructure in the healthcare facilities is that the aam admi in Gujarat has suffered. If Modi were to come to the Union Government, the effects would be replicated because of his mega-corporation priorities, and this could have severe negative effects on the people of India. a. Lack of access to food causes massive malnutrition and anaemia amongst children in Gujarat: As per 2005 statistics, in Gujarat, more than 40 percent of children under five are underweight. Further, 42.4% of urban children (6-35 months) are stunted. This is higher than the corresponding rate at national level, which is 37.4 percent (National Family Health Survey (NFHS-3) INDIA 2005-06 Nutrition in India). Percentage of Children with Anaemia, by Major Religious Communities, and by Social Groups 2005-06 Major Religious Communities Social Groups States Hindus Muslims Christians Sikhs SCs STs OBCs Others Gujarat Delhi 70.2 57.3 67.1 56 50 41.2 83.4 63.6 69.6 63.6 83.3 83.4 71.7 56 63.3 54.1

Kerala Maharashtra

41.2 64

50.9 58.9

39.8 40.8


50 64.8

43.8 67.4

44.1 62.1

43.8 62.3

Source: National Health Profile, 2009, Ministry of Health & Family Welfare


Compendium of health outcomes because of poor expenditure on health:

c. d. e. f. g.


Infant Mortality Rate by Social Groups, 2005-06: States Gujarat Haryana Kerala Maharashtra Himachal Pradesh Jammu & Kashmir All India 45.2 62.6 66.4 SCs 65.4 STs 86 51.4 34.3 62.1 OBCs 66.5 52.1 11.5 36.9 45.3 56.6 Others 47.3 36.1 19.9 28.2 44.7 -

Source: National Health Profile, 2009, Ministry of Health & Family Welfare


Vaccinations being used to discriminate against vulnerable groups: The Modi Government has deliberately been discriminating against vulnerable groups, and not providing them with vaccinations.

Percentage of Children who have NOT received all vaccinations, by Social Groups (2005-06) States Gujarat Kerala Tamil Nadu SCs 48.8 25 27.7 STs 60.5 20.1 33.3 OBCs 57.8 16.5 15.4

Source: National Health Profile, 2009, Ministry of Health & Family Welfare.

Because of this, there is a massive discriminatory effect felt by women, as well as vulnerable groups like SCs/ STs/ OBCs (for whom the effects are multiplied). This is evidenced by the sex ratio at birth in Gujarat, which is the worst amongst all other comparable states. Sex-Ratio at Birth by Social Groups, 2001 States Gujarat Andhra Pradesh Assam Kerala Tamil Nadu SCs 854 964 931 903 972 Non SC/STs 834 948 949 889 950 Hindus 830 951 952 973 932 Muslims 871 950 943 960 961 Christians 898 951 946 972 966 Sikhs 784 986 672 938 787

Modi argues that the government has no business to do business, but thats exactly what hes doing. He is hand in glove with megacorporations, and they are plundering from the people and looting the natural resources from Gujarat. He says that its time for development politics, and we agree. But we disagree vehemently on what development is for. The Modi led development of Gujarat includes poor social expenditure, cheap handouts to mega-industries. And so we ask of him: Development for whom? For, by and of megacorporations? Seems his P2-G2 mantra stands more for Persecute People (through) Greedy Governance.
Whats wrong with Modi and the system he rules: Power is grossly centralized in our country... (and it) only empowers people at the top of a system. Modi does not believe in empowering people all the way to bottom, and seeks only to empower rich mega -corporations. He has no respect for the aam admi, of the millions of communities that India consists of...The aam unique. He has immense capabilities, intelligence and strength. He builds this country every day...and yet our system crushes him at every step. This system is best exemplified in the Modi Government of Gujarat, for whom the aam admi is simply fodder for the profit of mega-corporations. The Congress Party recognizes and accepts that the time has come to question the centralized, unresponsive and unaccountable systems of decision-making in governance, administration and politics. The answer is not in running these systems better. The answer is to completely transforming these systems.

Concluding Argument