The Almighty Rupee

Working in the hybrid non-profit/ social business sphere, the dollar (well rupee I should say) is not exactly the motivating factor behind my choice of profession. Hopefully that much is obvious since the stipend I receive here reminds me of how good I had it at my part-time internship last year. Yet it is still a frustrating part of the job. Because, well, if I had unlimited funding, I could do whatever I want in my school and I could also travel, explore, and eat as much amazing food as my heart desires. And I wouldn’t have to waste precious energy worrying about how much I exceed my budget each month because, well, that budget would be a lot bigger. Yet I do have to remind myself that I am doing much better than the average person in India, so my own sob story about money stops here. This is about India’s money.

So back to the “average person” in India. As everyone is aware, India has one of the highest income discrepancies in the world (sadly the US isn’t doing that much better) with 42% of the population making less than $1.25 a day. And although the per capita GDP has skyrocketed to over $3500 per year from about $800 20 years ago, it is important to keep in mind that income inequality has also doubled in twenty years and that this is the average GDP, out of over a billion people. Suffice it to say there are plenty of people making much much less. In fact, the average teacher at my school makes a little over $30-$40 A MONTH. Yes, that’s right, a month. For working six days a week, all day. And yes, things are less expensive here than they are in the west but only marginally so. A liter of milk will still set you back a dollar or so in most convenience stores. In fact, inflation is at a high in India right now, devaluing the rupee and increasing the cost of living.

What am I getting at in this blog then? Well it’s a case of perspective. A case of my reminding myself that I may be hemorrhaging my money on dining out or trips but that I am still able to drop $15 on a nice dinner while this is close to half of most people’s monthly income. The story of poverty in India as I see it is a case of mixed outcomes. The economy grows, the middle class grows, people buy their smartphones and their designer jeans that are at least the same cost, if not more expensive, than those in the United States. But an extraordinary number of people remain left behind. One Australian consultant here shared the staggering statistic with me that there are more people living below the poverty line in only four states in India than the population of ALL of sub-saharan Africa. This is a very sobering thought.

When I said I was coming to India, people were very jealous. After all, we do see the India of stark poverty, on news reports and documentaries, and we can forget the incredible amount of wealth here. But we also see the Bollywood movies where everything is colorful, everyone is happy, and the star couple ends up together, smiling, at the end. So we equate this with a joy for living in India. We say that Indians have it right, valuing family first and being happy with what they have. Unfortunately, the feeling I have picked up most here was aptly described by my friend the other day. It is angst. Angst for something better and something more. Life is incredibly hard here. The day to day monotony overwhelmed by circumstance and hardship. Many people are not happy with what they have but they do not know any differently and feel they cannot change their situation.

And in my current profession, this feeling and these statistics are what keeps us going; the driving force behind social entrepreneurship. History shows that throwing money at the situation is not an answer. Instead people must have ownership in these initiatives to ensure sustainability and the continued success of poverty alleviation programs. That’s what social entrepreneurship and development programs like microfinance are all about. But what I am hoping as well is that India takes a stake in its own development. Before everyone jumps down my throat, I realize this seems hypocritical coming from a citizen of a country which blindly turns an eye to most of its own poor. And I also want to insert a caveat here that I have met an extraordinary amount of Indians who are concerned about the poor, who do support various causes, and who give what they can. Nevertheless, government initiatives to support development are mostly half-hearted, corrupt and do just throw money at the problem. As the recent case of the government shut-down of microfinance in Andhra Pradesh shows, the government is just as interested in making a buck as everyone else and the end result is it undermines the very programs that can help it to succeed.

But the problem, at least from what I have seen here is not a lack of money but a case of where the money is going, which is true in almost all developing countries where it is hidden away. Yet in India this misuse of funds is an open secret. And that has transferred to the individual. What takes precedence is a consumerism to rival that of any American Walmart and a hunt for the one item that will convey status. In India, caste status has given way to economic status. It is a matter of pride, and being confused with someone from the next lower strata is a hurt that one would rather not bear. We from the west know this story well as we participated in it ourselves and continue to. And look where it got us. So, India, learn from our mistakes. There is no massive, easy solution to crippling income disparity or massive levels of poverty. But irresponsible growth isn’t the answer either. You see it every day here – new construction replacing a former makeshift homeless camp, most certainly fueled by bribes to oversight committees and government officials in amounts that would feed and clothe these same homeless for months.

From what I can see, the story of India is a story of money. But money not necessarily well-spent. And it’s complicated. More complicated than I can understand and based on policies and practices that are part of the Indian identity. Yet if India is the country of the future (and I assure you, it most definitely is), it can only succeed by lifting those up who are left behind. The money is there. It’s just not in the right place