Hello Hemant,
I read your article the day it was posted (probably 3-4 days back) was in some other frame of mind to make up anything in my thought process. Here is my take on the GREAT INDIAN MIDDLE CLASS. These might feel more like a bore moral science class lecture, but in the end these are the issues that will define the middle class and India in the coming years – economically and otherwise.
I am amongst the lower-middle income groups with annual household income of less than 5L pa in Jaipur with my wife and a 4-year old as dependents – so please take my comments in that context only, as with cities and professions the criteria for middle income group changes.
1) Prior to 1991 reforms there were only few ways to climb the ladder of social and economic liberty – govt. jobs, business with unrealistic profit margins, Dalali in many deals, etc.. But, with reforms many new opportunities came to fore and we grabbed them. If most of our parents thought that it would be next to impossible to jump from say 1-2L pa household income to 5-7L pa household income, they were not not being lazy of laid back…they simply did not have any options to choose from.
2) The laid back attitude of our parents’ generation towards savings and investments was one of the prime reasons for cushion that was available to Indian economy during Asian crisis of 1998-99 and the recent crisis of 2008 and now in 2011. They gave paramount importance to saftey of capital with modest returns.
But with young generation born and brought up in 1985 and later is more concerned about quick results – quick bucks, quick fix, instant noodles, ready-to-eat paneer butter masala, et al. We, as a whole generation, are giving more importance to quick results at the cost of unnecessary risks.
Investments cannot be done in this manner either as this is the extreme opposite of the approach followed by their parents. Both are not going to lead you to a sustainable wealth creation along with safety.
3) We are going to go grow with a rapid pace due to our burgeoning young population in the coming couple of decades (say up to year 2040). But, if we do not invest in necessary checks and balances, we are going to in a deeper mess than what the US or the Europe are in today. Imagine the burden, only financial implications, of about 80 crore senior citizens and the pressure they can mount on the pension and healthcare infrastructure. So the government needs to invest in future for a better (read healthier) life for an ageing population. we need to do our bit by reducing dependence on motor vehicles and take to walking and cycling for short distances. Try to read the lower part of “India’s Population Pyramid” graph upside down…….
4) One of the biggest reasons, as per my limited and probably wrong, analysis is that people came out in large numbers to support Anna was not because they were frustrated with corruption. They did not get the chance to be a benefactor of any corrupt dealing – think about the greener grass on the other side of the fence. i do not mean to say that everyone who participated is corrupt or wished to be, but certainly most did not get the CHANCE to be corrupt because of lack of opportunity to benefit from corruption to prove otherwise. We can be corrupt in many ways, mostly subtle to even pass our actions as being corrupt practices – teachers give more marks/grades to students who are better dressed and look in particular manner, doctors attend to patients more intently if they are either from the opposite sex or show off their wealth, relatives will welcome you with open arms if you are one of those who take an expensive present every time you visit them, and so on. Wealth without moral values will lead nowhere, and moral values are not those of our parents or scriptures but of those which are going to affect us and our children. We cannot be hippocritic in our behaviour – asking “CHOTU” to serve tea to guests while investing for the future of our children.
5) The education we give to our youth – and I am in this sector of technical/professional higher education for last 7 years formally – is solely oriented towards grabbing lucrative jobs – no entrepreneurship skill, no innovation, no creativity and NO TEACHING. None of my students in the present lot wants to become a teacher. My ex-students who with to become a teacher are usually those who are not getting any other job…..sic. How can we say that the educated youth are really educated…..when the teachers are are not teaching at all. They might be covering the syllabus, but not teaching. One does not wish to come to this sector as it is a low paying job, in terms of rupees only, but a revolutionary thing if we are able to connect to the students’ thought process. Many of my friends are into private tuition to earn that extra buck and in return award some extra marks to those paying tuition fee. How is that?
6) Youth today are more spending than they can earn. While in School/college they do not earn at all and when in job, they take credit cards. Even if not taking loan to fund expenses, most of their monthly income goes in to parties, drinks, night-outs, entertainment, etc. In the end savings are negligible to matter.
A reply to it:
Hi Mudit
Being the father of a college going daughter I can easily relate to what you have said. What you say is correct. Had I said this Hemant would have probably attributed it to generation gap.
Long before 1991 after doing engineering I took up my first job as a trainee engineer in a reputed public sector undertaking with a fixed salary of Rs 400/- per month.There was no DA or other perks. At that time also our education system was such that fresh engineers could not be directly employed in the industry. So I had to undergo a rigorous training for two years during which I had the opportunity to work in north, east, west and south of India.
While doing my engineering studies I was staying with my grand parents. My grand father was a retired professor of a Government college. At that time nobody knew about private coaching. Before his retirement my grandfather managed to acquire three houses. He could do this even after providing quality education for his four sons and one daughter.
The biggest problem with our education system is that it relies heavily on private coaching. Even educated parents don’t have time for their kids and they prefer to send their school going kids to coaching classes.
Right in front of my place is a coaching centre managed by a lady and her son. The lady helps younger kids with their home work and the son helps children of higher classes with their project work. Younger kids are dropped and picked up in cars by their mothers and elder children come on their bikes and scooters. Children spend more time on the road talking on mobile phones then they probably spend in their class.
My reply to it:
I do not say that you (any parent) should force studies on their children. It is good up to basic level only and I do not mean being a 10+2 or a graduate is sufficient for that. Basic working knowledge of math, science, arts, commerce, law, citizen ship (or civic sense), medicine, accountancy, languages, and life skills (like plumbing, electrical repairing, etc.) are my idea of foundation in education. Apart from this the student should be promoted to discuss, argue and challenge the pre-existing norms of the society on stereotypes related to education, religion, customs, and many other things. This will make her/him a more wholesome human being and not a money-minting and self-centered/obsessed machine.
I know of one of my students, who took admission to MCA course and left it within 2 months. he was a business minded guy who just needed a degree to show to his parents. he had exposure to latest in the web and techno world, though he did not know how to do programming and other stuff. His creativity was way above the persons of his age, sprang up new and innovative ideas and could be logical. Today he is working in my University as web manager, I proposed his name, and the online presence of my University which was earlier no where 6 months back is one of the most prominent in Rajasthan today. We need persons to encourage the skills and intent of their children and not to pressurise them to make a better human being out of them.
My mother and father and bua, for instance provided whatever help they could in providing for our studies but only as a guide and a bank of last resort in case of emergencies. We were encouraged to earn, just after our +2 was over, although there was no need for that, and save and prioritise our expenses. Many financial decisions of family were discussed with us to give us an idea how to earn and allocate limited money. They never asked any of us to get x5 of score as he used to say a few things that his father had told him –
* You can come and tell me everything you have done and I will do my best to protect you if it does not harm anyone else.
* You will have to face the consequences of the mistakes that you commit, like the fruits will be all yours to eat. I was once made a peon for 2 days of my class in std. VIII or IX when i tried to forge his signatures on a bad remark by vice-principal.
* Everyone apart from you, on road, even your father, mother, wife and kid are your enemies. Trust only yourself when driving.
* Money is not the aim of life, but life must be the aim of money.
probably these things have mattered in my life.
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