Monday, 29 June 2020

Solving the puzzle: Migrant Labour and Unorganized Sector.

28/May/2020

//The perennial problems of migrant workers entail lack of proper accommodation, low standard of living, low wages, inaccessibility to state given services due to lack of identity proof and other documents. The global pandemic has become the immediate reason for the abrupt palpability of the migrant workers’ deplorable condition on the national scene. However, the vital reason behind their plight is deeply entrenched in the structure of India’s economic system itself. Their precarious condition is the culmination of a prolonged existence of the capitalist mode of production coterminous with the neo-liberal policies.

The migrant conundrum is thus a culmination of prolonged structural denial of basic economic rights by neo-liberal state machinery in concurrent with the social and moral apathy towards the marginalised sections who constitute the majority of the migrant workers in India. They are dispossessed by both the state and society. The mere transportation facilities to their homes or mere labour reforms are not an all-time panacea for their problems. The change in the discriminatory social behaviour and public attitude towards workers, the inclusion of affirmative policies and a transformation in the nature of state from a neoliberal establishment to a more welfare entity can advance an egalitarian social and economic realm in which rights, dignity and respect of the workers from socially marginalised sections are assured and protected.//


29/ May/ 2020

//‘India’ was full aware that millions from ‘Bharat’ had populated their cities and this ‘India’ had become so addicted to their help that life was unimaginable without them.

So deep had they entered our mind-space that stereotypes became embedded — like the farm labourer from Bihar, the domestic maid from West Bengal, the sturdy foundry worker from Jharkhand, the indefatigable ones from Uttar Pradesh and others from Odisha or Rajasthan.

Unless we can know and reach benefits to each such worker — which is not impossible in a digital age — the present fiasco will be repeated. To locate the only positive step taken to protect migrant labour we have to go back by 51 years, to the heydays of socialist hopes, 1979.

The Janata party government passed the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act. It mandated that labour contractors who export workers to other states have to register at both ends and take licences. Those who employ more than five migrant labourers are duty bound to provide proper wages, housing, medical facilities, pass-books, displacement allowance and anything else that the government of dreamers could cobble together.
The Act is to be implemented by the Chief Labour Commissioner (Central) or the CLC (C), who is also supposed to implement 14 other equally demanding laws. These include many that are under the hawk-eyes of powerful trade union leaders.

Though it promises to give more rights to migrant workers than the earlier law, we must remember that everything depends on implementation and not on desires. In this digital age, we may stress more on block-chained digital administrative techniques, like smart cards for inter-state workers.//

//The State Government has decided to conduct skill mapping of migrant returnees to provide them employment opportunities.

The Council of Ministers also approved establishment of a textile park at Dhamra. The project to be set up under the Centre’s Mega Textile Parks Scheme will provide employment opportunities for 20,000 people. //

News:

04/June/2020

//UP govt survey says 77% of these 23.5 lakh migrant workers want to stay back and work in the state, as of 2 June. Of the total, 16.6 lakh are unskilled labourers.

Siddharth Nath Singh, the minister for MSME, Investment & Export, Textile, Khadi & Gram Udyog in the UP government, said millions of new jobs can be created through MSMEs. The Yogi Adityanath government’s ‘One District One Product’ scheme, which is for the production and promotion of famous items, might be the best for workers in their native districts. For instance, native workers can be linked with chikankari work in Lucknow, or with perfume manufacturing in Kannauj.//

News:

04/June/2020

//The Covid-19 triggered exodus is a sudden reversal of this cumulative migration of seven decades. The resulting churning is an opportunity for India’s socioeconomic renaissance.

Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, Uttarakhand, Jharkhand, West Bengal and Odisha face a multiple disaster scenario and are scrambling to provide healthcare, sustenance and employment for returnees. The major host states of Maharashtra, Karnataka, Tamil Nadu, Gujarat, Andhra Pradesh, Telangana, Delhi and Kerala are trying to minimise the loss of labour and skills and prime for ‘unlocking’ of economic activity.

UP and Bihar, with largest returnee loads, have realised their shramiks’ asset value. They are establishing data bases, skills directory and migration institutions. Yogi Adityanath and Nitish Kumar are working to secure better economic and social security bargains for them and MoUs with host states. Home states will draw upon the Centre’s Mig rant Workers Welfare Fund and other poverty eradication and economic empowerment schemes, including enhanced MGNREGA.

The samudra manthan (great churning) of the Indian economy by Covid-19 pandemic has spewed the poison of a major economic and human development setback for India. If we use the migrant labour crisis as an opportunity to transform our economy and society, the churning may yet bring up the amrit (nectar) of immortal progress – the demographic dividend – a key goal of PM Modi’s Atma Nirbhar Bharat.//

News: https://economictimes.indiatimes.com/news/economy/policy/view-india-should-use-migrant-labour-crisis-to-transform-economy-society/articleshow/76184723.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

10/June/2020

//The skill mapping of 2.5 lakh out of the five lakh migrant workers who returned to Jharkhand from different states has revealed that most are skilled and majority of them were engaged in construction, automotive and electronics sectors, government officials said.

In the first round of skill mapping, Jharkhand government has mapped the skills of 2,50,056 inbound migrant workers till now. Of those surveyed, 1,77,186 or 70% returnees are skilled labourers, while the rest 72,871 are unskilled workers, according to the state government’s assessment.//


20/June/2020

//The hotspot of these relief shelters and camps were in the cities of Kerala, Maharashtra, Tamil Nadu, Delhi, etc. The southern states have handled the situation relatively well as compared to the capital, Delhi and western states; eastern India being the labour supply hub in the country.

There are several estimates from the governments surveys (census, national sample surveys, and other national level surveys) and others rough estimates currently floating around about the number of migrants who have left from the destinations (mostly urban places) and reached their native places. Some of those estimates are://

News:
https://timesofindia.indiatimes.com/blogs/red-button-day-light/estimation-and-skill-mapping-of-migrant-workers/

28/June/2020

//SAMPARKA (Software Application for Migrated Person to Assam for Rejuvenating Karma Abhiyan), launched by the P&RD department, has so far registered about 17,000 migrant workers eligible for the facilities, including job cards under MGNREGA.//


29/June/2020

//Jharkhand has just concluded a survey of 3.61 lakh migrant workers ( 3,35,221 men and 25,699 women), who returned to the state in the wake of the lockdown. The findings have been both significant and surprising. Conducted by the Department of Rural Development, with assistance from the Help Desk set up by the Congress

The survey for the first time has identified the skill-set of the workers in the state, their employers outside the state and the potential areas where they could work in the state.//

News:
https://www.nationalheraldindia.com/india/jharkhand-survey-maps-skill-sets-and-find-most-migrant-workers-outside-central-schemes

Other steps to solve the riddle:

1. Tracking Internal Migration

//Prime Minister Narendra Modi on Thursday went for the jugular on the National Population Register and dismissed the contentious additional questions as an ordinary administrative process.

The Prime Minister justified the need for certain categories of information, dwelling on mother tongues. This has never been such a big issue as it is today given the internal migration, he said.//

News: 07/Feb/2020
https://www.telegraphindia.com/india/narendra-modi-defends-national-population-register-new-questions/cid/1743067

2. Pan-India Ration card portability

3. Registry of workers in Unorganized sector

//The new look 'Unorganised Worker Identification Number (U-WIN)' will be seeded with Aadhaar and have expanded coverage. Besides, it would include other information such as qualifications and skill set of the worker.

In 2014 the labour ministry had launched a pilot for Unorganised Worker Identification Number (U-WIN) in Gujarat, but the project was stalled on the grounds that it was a duplication of Aadhaar that was conceived as a single identification number for individuals.//

News: 31/May/2020
https://m.economictimes.com/news/politics-and-nation/unorganised-sector-workers-may-get-ids/articleshow/76124747.cms

4. Need for Central Legislation/Parliamentary Law

//We have to think beyond the reflex paranoia about Aadhaar cards and privacy violations so as to come up with a really well thought out scheme for this class that has suffered such an unprecedented current crisis. We just have to devise a digital multi-purpose benefit smart-card, that can be used anywhere, to draw money without queuing at remote banks and this improved DBT has to work at ATMs and other points and also entitle these devastated sections to draw their rations from wherever.

Article 217 read together with ‘list 1’, under the seventh schedule clearly mentions ‘item 81’, namely, “inter-state migration and inter-state quarantine” to be a power of the centre. The central government alone is empowered to deal with this in general, and inter-state migrant workers are surely a part of the ‘power’ and the responsibility. The list of states’ powers and responsibilities clearly do not mention ‘inter state migrants’ but that does not absolve them totally, as they are both recipients of such labour and exporters as well.


The Concurrent List of powers on which the centre and states can both legislate and administer has quite a few relevant entries. Item 22 mentions “trade unions, industrial and labour disputes” while item 24 cites “welfare of labour” and allied issues.
Frankly, these have helped organised labour to a large extent, but the unorganised sector was always a pitch black area under the lamp. It is a hard fact that trade unions were more bothered about their own fee-paying members and in getting further gains for them. They are partly to blame for ignoring the great bulk of the amorphous informal workforce.//

News: 29/May/2020
https://thewire.in/labour/lockdown-migrant-workers-policy-analysis

Wednesday, 24 June 2020

Do really our PM CARES??

23 June 2020

//Prime Minister’s Office (PMO) had announced last month that the Trust has decided to allocate Rs 3,100 core for the fight against Covid-19. Out of the Rs 3100 crore for which allocation was made, a sum of approximately Rs 2,000 crore was earmarked for the purchase of ventilators, Rs 1,000 crores will be used for care of migrant labourers and Rs 100 crores will be given to support vaccine development.//

https://swarajyamag.com/insta/covid-19-50000-made-in-india-ventilators-under-pm-cares-fund-14000-to-be-delivered-to-states-by-june-end

//10 May 2020
It is not clear whether the fund comes under the ambit of the RTI Act or oversight by the Comptroller and Auditor General of India, although independent auditors will audit the fund.

The decision to allow uncapped corporate donations to the fund to count as CSR expenditure — a facility not provided to PMNRF or the CM’s Relief Funds — goes against previous guidelines stating that CSR should not be used to fund government schemes. A government panel had previously advised against allowing CSR contributions to the PMNRF on the grounds that the double benefit of tax exemption would be a “regressive incentive”.//

Saturday, 20 June 2020

Indian Economy and Development - Assignment 4

Find the analytic balance sheet of the central bank of your country, either from the IMF International Financial Statistics or the website of your country’s central bank.
  • How much is base money in your country? Express this both in units of national currency and in percent of GDP.
  • How much of base money is currency in circulation? How much are bank reserves?
  • How much did base money grow in the past five years?
  • How did the central bank use the expansion of base money? That is, what were the developments in NFA and NDA?
  • How much has inflation been in your country in the past five years? (the reason for this question will become clear later in the module--we promise).
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Find the depository corporation survey of your country. 
·         How much is broad money? Express this both in units of national currency and in percent of GDP.
·         How large are NFA and NDA? How large is credit to the private sector? How much is credit to the government
·         How much has broad money grown in the past five years? What changes happened at the same time in NFA and NDA?
·         Can you associate the developments described above with any other developments in the economy?
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    How does the central bank of your country conduct monetary policy? What are the anchors and the targets? Under what type of regime does the exchange rate of your country operate? You may find out from the web site of the central bank of your country or from the IMF Annual Report on Exchange Arrangements and Exchange Restrictions, a publication that the IMF produces each year and that classifies the exchange rate regime and monetary policy of each member country. 

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Wednesday, 3 June 2020

Indian Economy and Development - Assignment 3

Find the fiscal accounts of your country (summary tables will suffice). The ministry of finance generally reports them. 
  • What is the coverage of these accounts in your country: does the definition of the Public Sector include Public Corporations, or only General Government?
  • On which basis are these recorded? Cash or accrual?
Save these accounts and keep them for the next activity.
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Look again at the fiscal accounts of your country, which you used in the first activity of this module. Also, look at the fiscal accounts presented in the Government Finance Statistics Yearbook 2012, which you may also find in the Key Info of this module, or in Handouts and Resources. 
Compare the fiscal accounts in these two presentations.
·         What are the major differences?
·         Are revenue and expense the same? How about the net acquisition of nonfinancial asset?

·        In case the two presentations are different, are you able to map items in one presentations into items in the other presentation?
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Look at the fiscal accounts that you found about your country, including those presented in the Government Finance Statistics Yearbook 2012
·         Compute the major balances (Net Operating Balance, Net Lending/Borrowing, Overall Balance, and Primary Balance) in percent of GDP. How have these evolved over time in the past 6 years? What explains these developments?
  •   How do the balances that you found above compare to those of comparable (peer) countries?
  •   Has fiscal policy changed in 2008-2009 in response to the global financial crisis? In case it did change, has it gone back to pre-crisis levels? For this question you may also want to use the IMF World Economic Outlook Database, which present a series on the structural balance, a concept that is very similar in construction to the cyclically adjusted balance.
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Look at the fiscal accounts that you found about your country, including those presented in the Government Finance Statistics Yearbook 2012
·         Compute the major stock indicators in percent of GDP (debt, assets, liabilities, net worth, net financial worth). How have these evolved over time in the past 6 years? What explains these developments?
  •   How do these indicators compare to those of comparable (peer) countries?
  •   In case fiscal policy changed in 2008-2009 in response to the global financial crisis, what was the impact on the stock aggregates? Are these raising concern in your country?
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