Jharkhand is constantly being bombarded with the notion that people here are
foolish in opposing establishment of large scale units, not realizing that they
are spurning lucrative offers of large employment opportunities. The land
acquisition in Jharkhand for large manufacturing and mining units as well as
for mega power plants is proceeding at a very slow pace due to severe
opposition by rural farmers and general tribal population and this is viewed by
those in power as a step towards future darkness for the Jharkhand State. It
would not be surprising if force is used to acquire land, if all other steps
fail, without going through a public debate on the benefits of employment
through large undertakings which are established on farm lands and produce
massive displacement.
No one is against development or industrialization. The debate is on what kind
of development. If large manufacturing, mining and mega power units can absorb
the teeming millions of unemployed, no one would grudge establishment of the
Arcelor- Mittal or Tata plants. What is required to save the future is a fair
evaluation of the gains and losses due to this developmental process.
We are therefore surprised to find promises of employment of Jharkhand
population being bandied about in the media when the various MOUs are
implemented without the study of pros and cons of the process. Let us examine
the facts.
We all have been taught in the economics and engineering colleges that any
large scale unit to be successful must aim for the highest levels of
productivity and profitability. This implies by its very nature of productivity
and efficiency that the units have to be heavily capital-intensive with least
employment of manpower. The lesser the manpower also means less future labour
trouble. The ratio of labour to capital cost is therefore kept minimal
resulting in low employment generation.
The Nano Project of the Tatas at Singur is a classic example of minimal
creation of jobs with massive displacement and consequent unemployment. As per
a study carried out by the Perspectives Team of Delhi and published in their
book entitled Abandoned, employment in the proposed factory could never be
more than 1,000, whereas more than 47,000 people (cultivators and their
dependents) will lose their livelihood as a result of the Tata Project. These
also include agricultural labourers, trolley drivers, coolies, fertilizer and
pesticide sellers. Even if we take into account all the potential employment in
the various ancillaries that will be set up, the total figure will nowhere
reach 47,000. Further the employment opportunities for the displaced and local
unemployed will be limited to security guards, peons, and other limited
unskilled jobs. The owner farmer becomes a beggar and daily wage earner and
restarts his life from the bottom of the pyramid.
False hopes of job-creation
Jharkhand has been promised, since its creation and even before when it was
part of Bihar, employment, prosperity and happiness through the establishment
of a number of large projects on its soil. Since the advent of globalisation,
the promises have accelerated.
>From 1991 till date, globalisation and free trade has been given the credit
>for the extraordinary growth of our economy. Captains of industry constantly
>remind us how India is becoming an acknowledged superpower. The U.S. Nuclear
>Agreement is today cited as an example of this great status accorded to us.
Whereas, the facts speak otherwise. During this entire globalisation period of
17 years, employment in organized private sector has remained static at 4.5
million people (employing merely 1% of total work-force of 460 millions). Rapid
economic growth has not produced employment whereas we are adding every year an
additional unemployed labour force of 10 millions. This 170 millions added
during the globalisation period is roaming our streets looking for jobs and we
are proud of boasting that India has the second largest number of billionaires
in the world. We are not a nuclear force due to the U.S. Nuclear Agreement; we
are instead sitting on an explosive time-bomb of unemployed youth which will
explode any day and destroy our dreams of false growth bandied about. This
growth is not promoting employment and the emphasis should be on instruments of
employment that will promote growth. Promoting growth without employment is a
classic example of putting the cart before the horse. Employment will
automatically increase purchasing power and consequent growth.
The IT Sector and SEZs are another method of promoting employment that is
being advertised. Indian IT sectors total employment is 1.3 millions (a mere
0.3% of total work-force). In SEZs (since February 2006, when the SEZ rules
were passed), India has invested Rs. 81,000 crores and created 2,15,000 jobs,
an expenditure of Rs. 37 lakhs per job created. A simple scheme like NREGA will
guarantee 100 days of work per year for 370 people with the same Rs. 37 lakhs.
Edward Luce of Londons Financial Times reported in 2006 that Tata Steel in
Jharkhand had a workforce of 85,000 when it was producing 1 million tons of
steel in 1991. In 2005, Tatas produced 5 million tons with 44,000 workers. The
production was 5 times with half the labour.
Stephen Roach, Chief Economist, Morgan Stanley likewise reported in 2004 that
Bajaj motorcycle factory in Pune in the mid-1990s needed a workforce of some
24,000 to produce 1,000,000 vehicles. In 2004, the factory turned out 2,400,000
two-wheel vehicles annually with approximately 10,500 workers. The production
was 2.5 times with half the labour force.
Since we all look admiringly at Microsoft and Wal-Mart, giants in their own
field of activity, and ponder over the possibility of having such giant
corporations in India to solve our unemployment problems, it would be
interesting to examine the following figures. If we have two giants like
Microsoft and Wal-Mart in our country with their Head Office and all worldwide
branches located in India, total employment offered will be 2.1 million people
against our potential labour force of 460 millions.
Displacement
Undoubtedly the most pressing problem facing the poor, rural and tribal
population in Jharkhand is the constant threat of their displacement from their
ancestral habitat. This displacement is being justified by the politicians,
bureaucrats and the urbanites, (totaling only 23% of the population of
Jharkhand), as necessary for the progress(?) and development(?) of this State.
The progress and development is for whom and for whose benefit is a matter that
is often left unsaid.
The figures for displacement resulting in misery for the majority of
Jharkhandis are quite revealing - a population of about 17,00,000 in total
displaced so far, out of which almost 85% are tribals and locals and only about
25% have been halfway and half-heartedly rehabilitated.
Conclusion
The conclusions are obvious. Large and mega industries, IT sector, SEZs, etc.
are not the keys to solving Indias number one problem unemployment. The
Constitution guarantees all of us right to work and if the increased number of
hungry mouths are not employed meaningfully, we are heading towards unmitigated
disaster and unstoppable violence in our society. Naxalism, communalism,
terrorism are mere off-shoots of this. It is time to think of another model
that will promote employment for the masses.
