Irrelevant politics

Irrelevant politics

There is little serious debate on the most pressing economic problem of our time: Jobs.

Following release of provisional gross domestic product (GDP) data which allows for a comparison of economic growth between the UPA and NDA periods, there’s been a fractious debate between representatives of Congress and BJP. The salient feature of this debate is its irrelevance to contemporary challenges. Even as veteran politicians engage in learned arguments Hardik Patel, touted as an emerging next-gen leader, appears unable to think beyond yesterday’s demands. He has gone on an indefinite strike asking for – no surprises here – quota for the Patidar community and farm loan waivers.

Despite attempts to paint India as the world’s fastest growing major economy with a vibrant private sector, the paradox is that many young Indians band together around their caste identity in the hope of pressuring governments to earmark a quota for them in government jobs. India adds millions of young people to its job market every year, and this could be where the country’s gravest contemporary fault line lies. And yet, one would be hard put to find a serious political debate on how to create more jobs in the country.

The desperation for employment is evident in tests being conducted this month by Indian railways, where a whopping 24 million applicants have evinced interest in 90,000 jobs. This is not an isolated instance of a large number of job seekers competing for limited government jobs. A national youth survey conducted by Centre for Study of Developing Societies (CSDS) shows that between 2007 and 2016, the number of respondents who preferred government jobs increased from 62% to 65%. This represents the essence of India’s jobs crisis. The economy is driven by private sector activity, but given uncertainties surrounding it jobs there are deemed unattractive by youth. The symptoms of this anomaly show up in agitations for reservations, a reversion to tribal identities and litigation on quotas within promotions.

The jobs crisis needs to be situated within the larger economic context. For a few years, private investment almost dried up. Just when investment showed signs of revival, the external environment began to worsen with growing protectionism by key economic powers. It’s important at this moment to avoid risks when it comes to fiscal and monetary policies. Simultaneously, the jobs challenge needs to be tackled by enabling a higher level of private investment, which would create more and better quality jobs for youth.