Ideas during an Economic Downturn

I was in Singapore some time back and got into a passionate debate about, well what else, why India is not making the best of the global opportunities. Reams have been written and doubtless many more will suffer this angst but my approach, was almost fossilized , compared to what most "modern" Indians would like. Here's my two-bit worth of thoughts...

What is hitting most average middle class Indians today? Rising inflation, exorbitant interest rates and shrinking or stagnant incomes to name some common woes. You cannot afford the maid, but who will take care of the kids when both parents work? Mortgage payments have shot up so much properties may be sold. Real estate developers are offering "incentives" hand over fist. Eating out is a luxury.

Many of us remember the old times - not the good old times but the times of scarcity. When you had to be nice to the "Ration Shop" owner to get the extra sugar the state released during festivals, the clout required to get a telephone or a gas connection. You walked short distances, you ate out occasionally more as a celebration than to avoid cooking and were happy with public transport.

And thats the solution , really. Its not a revelation, just common sense. Thrift was always a virtue, its just became unfashionable to be so. Socialising meant display rather than bonding. But is this really our way of life? It has , conversely, become fashionable to blame "too much money" for the difficulties we are facing. Too much money, the argument goes, spoils people, makes them greedy and causes them to over stretch with disastrous consequences.....


So whats the "Indian" solution. In ancient times there were four "purushaartha" a "grihastha" or a householder was enjoined to perform. Dharma - the right path, Artha - wealth creation, Kama - enjoyment of sex and Moksha - liberation of the soul. If this sounds like the good times, it is. In the balance of these lies the mitigation of risk!

Artha - or wealth creation is actually a duty. Thats right, make money! As much as you can. But - make it within the scope of Dharma. When wealth creation becomes Adharmic, money controls people instead of the opposite. Money is not used, judiciously - it is abused.

It was said that a sixth of your income went to the state - so the state could provide the services it should (which is a topic by itself). A tenth of your income went to charitable purposes - so the poor and destitute did not become a burden on the state , rather it was society which directly provided a safety net. And the most reliable safety net ? The Family.

Thus it was that looking after your parents in their old age was not a chore but a privilege. For they not only looked after your children (thus saving on the maid) happily, they also were the repositories of wisdom and experience. Stable minds in an era of instability. And how much was the economic burden of putting another plate on the table? Surely less than the numerous times one would have eaten out to avoid cooking?

And when this is extended to the work place , the age of the employee will not advertise his competence or the lack thereof. Instant gratification will be traded for steady growth. Conservatism can be chafed at, but since when did it become a virtue for Corporates to live beyond their means? As it was for a family.

Thus the average performing employee was protected by the above average achiever for each had his role to play. And a good year did not mean unimaginable bonuses and a bad year did not meant retrenching people, with great social cost to both corporates and society. For in the downsizing frenzy usually some very experienced hands would be dumped. Not unlike sending your parents to old age homes!

So what reduces the risk for both families and corporates is the balancing of impetuousness with sage advise. Sure, it sounds stifling to the out performers in good times, but when growth slows and belts have to be tightened its the conservative, whether fiscal or social who survive.

Good times create a sense of euphoria and invincibility. Tough times create resilience and compassion. In our roots lie our salvation. Instead of taking a begging bowl and expecting the state to drop a few pennies it would be much better to rebuild the base of a close knit family. And reduce the risk of intemperate fortune. That is the ultimate social security.