Sunday, February 24, 2013

It is Government's Responsibility to Address Macro Issues

There may be other formal definitions of Government, but mine boils down to this: "...to address macro issues affecting the country".

Below is an example of a macro issue relating to industry and employment.  

Governments normally consider it their responsibility to spur industrial growth and employment. The higher the per capita income and the lower the rate of unemployment, the better a government's performance is considered to be. However, issues such as unethical employment practices - recruitment policies, work conditions, impact on educational institutions, balanced societal development, etc., usually never get addressed. 

Can a model be evolved for addressing issues such as these?

The IT services industry in India is by most standards a flourishing industry, having created prosperity and a huge middle class of software professionals over the last 15-20 years. While this may be a good thing when viewed in isolation, it may have brought more harm than benefit. Many harms can be listed. However, here are a few important ones:
  • Neglect of other industries, educational tracks and professions
    • When one industry dominates handsomely, other industries and related educational tracks are neglected. What the IT services industry has done is tilt the preferences of students towards feeder degree programs such as 4-year engineering.
    • Study of the social sciences, including psychology, history and other disciplines is very important for the growth of any society and culture. While government cannot change student preferences, the least it can do is mandate more balanced curricula to include a combination of majors and minors, foreign languages, and some mandatory social science subjects such as philosophy, politics and economics. What a balanced curriculum will do is create well-rounded educated citizens and not slave-trained professionals.
  • Wide disparity in exposure to the modern world and between regions
    • Colleges in urban regions that have a concentration of the IT industry naturally have an edge over colleges in other regions. The disparity in exposures and opportunities become even more pronounced between the urban and rural. 
    • The government can mandate (or subsidize) exchange programs between rural and urban colleges, as well as higher subsidies and infrastructure support for colleges setting shop in rural areas. The concentrated corridors chock-full of colleges that we see in many Indian cities today is a highly wasteful exercise that that government should have checked years ago. 
    • When there are world-class (or whatever class we can manage) colleges in rural areas (with a quota for local students), the benefits will trickle down much better from urban to rural areas. Also, urban students living and studying in rural will develop a better appreciation for the rural world and our natural resources, rather than be armchair-professionals and managers making ecologically disastrous or negligent decisions. Rural-dwellers, when good infrastructure and educational opportunities become available, will be less likely to migrate to our overcrowded cities. 
  • "Don't ask, Don't tell"
    • Our governments adopt a "don't ask, don't tell" policy, whether knowingly or unknowingly, towards work conditions, unethical practices by companies, etc. Several of these actually impact people in more ways than one might imagine. When working ungodly hours becomes the order of the day, the safety of women is at jeopardy as we already see from our national news. Also, while executives and ambitious employees may  work 14-18 hour days (since they choose to, or because they get compensated highly), there is no reason the entire workforce needs to be in that situation without choice. The results include less time for families to spend time together, and inadequate mental and cultural development of employees' children. Legislations that can help include - employee wellbeing audits and surveys, a ceiling on the percentage of employees that can be in such perpetual-stress roles, etc. 
      • As long as the IT industry relies on the sheer number of employees, and cheap compliant labour to make unethical dollar profits via outsourcing contracts, these societal issues will continue to fester. It is in India's best interests to nudge the industry towards other value-based models where slave-trained labour is not the key commodity. 
I see MPs and ministers making speeches, saying things like "please respect our natural resources" or "please study social science subjects, not just computer science" (usually at colleges or at public functions). These speeches are useless, unless as legislators they can back it up by making the right macro-economic/societal decisions that make things happen. Mere urging of citizens without taking an inch towards setting the right incentives is nothing less than criminal behaviour.

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