Even as statistics indicate that Uttarakhand’s State GDP is rising rapidly, economists should also focus on how equitable wealth distribution is among various sections of its society. There are many models of development that do not necessarily meet the social and democratic objectives. Unless intelligently regulated, exploitative business practices can make some people rich, while employees are exploited in a number of ways. This may lead to short-term gains, but in the long run, it deprives the system of the required skilled workers, as low wages can force the emerging workforce to choose other professions or even migrate to greener pastures.
So, even as the government is taking up ‘urgent’ issues such as renaming urban settlements, it should take time out to introduce labour reforms. No country or state can have consistent development without a robust working class. The foundations of social well-being and sustainable growth require money to flow in the right direction. One of the reasons for the migration from the hills has been the failure to introduce remunerative agriculture and provide basic amenities. Even moving to the larger towns does not generate an upward economic movement as the exploitative business practices remain unregulated.
What is necessary in this context is for the government to, first, gets its ‘labour department’ to put together an authentic register of employed persons in various categories. This should include anybody receiving a wage, be it the daily-wager or the CEO of a company. Nobody of working age should be outside of this record, even if temporarily unemployed. As a result, the government will have firsthand knowledge of how many people are working in which sector, and what the wage patterns are in comparison to the money being earned. The pattern of growth, the positive and negative practices, will become clearer. It will become known which type of skills are in demand, making it easier for educational and technical institutions to impart them. Exploitative wage-slavery or use of bonded labour should be eliminated as soon as possible so that more sustainable businesses can flourish. Contrived monopolies, especially those that benefit from political patronage, should be opened to healthy competition. Without that, efficient practices and innovation will not be developed to the necessary levels. The better the records available, the less corruption and shortcuts there will be. There is space for business and economic activity to thrive in every scenario, one only needs to recognise which are suitable for healthy and sustainable growth. Fair remuneration is an essential part of that.
