oppn parties Skewed Wealth Distribution: Whose Fault?

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  • Supreme Court holds hotels liable for theft of vehicle from their parking area if parked by valet, says "owner's risk" clause is not a shield from such liability
  • Finance Minister says she is receiving feedback from many sectors that recovery is happening as there is lower stress
  • Sabarimala temple opens, but police bar the entry of women below 50 years
  • Finance Minister Nirmala Sitharaman says Air India and BPCL to be sold off by March
  • Media person Rajat Sharma resigns as DDCA president
  • Shiv Sena, NCP and Congress postpone meeting the governor of Maharashtra
  • Shiv Sena not to attend the NDA meeting on 17th November, says break up "a formality"
  • Shiv Sena says that the confidence the BJP is showing about forming the government in Maharashtra is based purely on its expectation of getting numbers through horse trading
  • Anil Ambani resigns as director of the bankrupt Reliance Communications
  • India beat Bangladesh by an innings and 150 rums inside three days in the first Test. Indian pacers excel after Mayank Agarwal's double century
  • Sena-NCP-Congress work out a common minimum programme, will form the government soon and it will last 5 years, says Sharad Pawar
  • Income Tax Appellate Tribunal upholds the decision to withdraw the charitable status of Young India, making it liable to pay Rs 145 in income tax. Rahul Gandhi and Priyanka Vadra are the majority shareholders in the company
  • CBI raids offices of Amnesty International across India
  • Supreme Court quashes NCLAT order against Arcelor Mittal and paves the way for the company to take over ailing Essar Steel
  • Finance Minister Nirmala Sitharaman says concerns of telcos will be addressed and no company will close down
Supreme Court dismisses plea for review in Rafale case, says no need for roving inquiry, maintains clean chit to government
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Skewed Wealth Distribution: Whose Fault?

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
Even as Narendra Modi represents India at the World Economic Forum in Davos – the first Indian prime minister to be there after H D Deve Gowda in 1997 – Rahul Gandhi, taking a cue from a report that pointed out that just 1 percent of Indians held 73 percent of the nation’s wealth, has asked Modi to explain that to the august gathering in Davos.

It is really very easy to explain that. For, this skewed amassing of wealth by a miniscule percentage of Indians has not occurred in the last three or four years. It has been allowed systematically by Congress governments of the past through their economic policies that encouraged protectionism and monopolies through the licence-quota raj on the one hand and allowed massive leakages in public welfare programmes to create crony capitalists who siphoned out mind-boggling funds meant for the poor, obviously with appropriate kickbacks for the ruling class. In the absence of competition and fair licensing system, people with money and connections kept cornering licenses and money continued to beget money. Even in the 2G scam, though corruption has not been proved, the courts have frowned at the way licenses were issued. Nepotism and favoritism have been the hallmark of the governing style of the Congress and this, more than anything else, has resulted in both the middleclass and the poor remaining where they were – even becoming worse in the face of rising inflation – while the rich continuing to get richer.

Although the dismantling of the barriers and reforms were also started during the Congress regime only, it was under P V Narashima Rao and not under a member of the Gandhi family. Since then, there has been a remarkable jump in talented people starting new and successful ventures, a luxury that was not available to them before the 1990’s. So, instead of needling the prime minister, Gandhi must study the economic history of India under the Congress before 1991. He will get all the answers why just 1 percent of Indians hold an absurd amount of the nation’s wealth.