(posted in L'express June 2024)
These compensatory payments/freebies are a consequence of the limitations of our model of development ,of the harsher effect of neoliberal policies , of our economic and social system which perpetuates inequality and exploitation and its failure to deliver more economic opportunities, well paid quality skilled-jobs, improved livelihoods and inclusive growth. It is when the economic and social system fails in distributing social and economic outcomes fairly and when successive governments have consistently failed to redress this imbalance-the deep-rooted economic inequality and inequitable access to basic material resources- that our democratic and electoral politics respond in terms of competitive welfarism.
The brutal reality is that when our model of development is not capable of offering new opportunities to most of its citizens, of providing the public services at the root of social advancement - education, health(including geriatric day hospitals, the social day centres, training of carers) , nutrition and skill development- our politicians try to replace these with direct transfers , with temporary increases in income, with electoral offers to our citizens who become individual beneficiaries in a patron-client relationship.
While preserving the status-quo ( without any attempt to change the overall tax system) the welfarist payments are paid from our pockets, from the regressive taxes and/or through borrowing and thus, eventually ending up in inflation and falling real incomes. And the vicious circle goes on . Another round of welfare sops are given to counter the negative fallout of price rise… Our magician will call it a stellar pro-poor programme , for example by scaling down the price of cooking gas cylinders, but there is no attempt at a general control of "greedflation" or an attempt to take to task some of our major corporations , wholesalers and importers (especially the cronies) who were exploiting inflation and registering huge profits ….company profits for a great number of corporations were increasing at much faster rates than inflation-related price markups. …Thus the welfare payments are just a temporary monetary relief for voters but a good electoral campaign strategy for our politicians .
These welfare measures aren't enough to lift people out of poverty or improve their livelihoods because these are not the redistributive measures and corrective measures based on egalitarian principles implemented by the state to address existing socio-economic inequalities. They do not prioritize holistic development that goes beyond addressing immediate needs. Policies should focus on education, healthcare, development, infrastructure , creating a foundation for long-term well-being and programs that empower individuals by providing them with the necessary skills and knowledge to secure sustainable livelihoods.
In one of the recent editions of L’express and in one of my recent FB posts, reference was made to Yamini Aiyar article “ Citizen vs Labharthi?” from the Centre for Policy Research, New Delhi, who classifies such welfarism as a form of techno-patrimonialism -which strips itself of any emancipatory goals such as advancing social citizenship and building solidarity. “Instead, it casts citizens as passive recipients of state largesse rather than active claim-making, rights-bearing actors. This form of welfare is critical to politics of the contemporary moment, where political power is increasingly manufactured through the deification of the leader(s) and unbridled voter loyalty extracted through welfare benefits.”
She adds that these welfarist measures. " put an end to any pretence of emancipating or enabling the advancement of those ‘left behind’, particularly through social awareness-raising. In this way, the ambition of quality social services, which are then liberators of aspiration and ambition, is replaced by direct social transfers that anchor the recipients of state largesse in passive and individual roles, rather than participatory and supportive ones”
We would have expected our ‘socialist’ magician pursuing his missionary zeal to eradicate poverty once for all in the country to
1. come forward with solid policies and programme that would include more progressive tax regimes and levies on capital and wealth, with the revenue spent on quality universal healthcare, on the creation of quality skilled jobs and the implementation of social projects targeting entrenched poverty, crime, racial discrimination and educational underperformance.
2. impose a windfall gains tax on the big corporates and the top exporting companies which could have made a more permanent difference to our cost of living -lower petroleum prices, the maintenance of subsidies on essential household items. Our economic elite are having a feast- enormous profits from the deliberate depreciation of the rupee and price-gouging , Rs 20 billion as wage assistance scheme , export promotion subsidies, and some Rs 50 billion(printed money) from the MIC which bailed out the corporates to their advantage at our cost and the billions reaped from real estate schemes and speculation on FX… kot nou "socialist" magician ti été ?
3. promote a more inclusive labour market; the liberalisation of the labour market encouraging the corporates to have recourse to relatively cheaper foreign labour, at the expense of a wholesome human capital formation programme for our local labour force, do not address the root causes of our income inequality ! “Improving social protection therefore needs to be accompanied by renewed efforts to integrate more Mauritians at the bottom end of the income pyramid into the labor market. This includes targeted measures to address the specific disadvantages faced by women and youth. Additional reforms of the education system, focusing in particular on the crucial early years and the provision of second chance education to early dropouts, is key to a more inclusive labor market.” WB report “Mauritius : Through the eye of a perfect storm”
4. encourage more broad-based private investment for sustained growth ; why has our private sector not been forthcoming with investment in new sectors/pillars ? Because this regime has privileged a model of development that is providing them with a more than reasonable rate of return on the low hanging fruits. Our model of development , spurred by this regime, has led us to the phenomenon of what one of our top economist has termed “the gentrification in Mauritius”. Smart cities, the gated communities, the new schemes for the silver economy, the new residential schemes offered to foreigners have been springing up like mushrooms, accentuated by the liberalisation of the property market ; the local population is being displaced , pauperised and becoming a foreigner in his own land and
5. ensure fair competition which is critical to provide opportunities for entry and success of new firms, incentivize productivity enhancing investment, and avoid high costs across sectors … “While vertically integrated conglomerates have been among the drivers of Mauritius’ economic success, their presence can also result in barriers to entry as firm level data suggests disadvantages in terms of access to finance, export markets, and value chains for non-affiliated firms” from the above-named WB report
We are paying dearly today for the net result of our fake socialist’s welfarist measures - excessive monetary and fiscal expansion leading to rupee depreciation and inflation.
We have not forgotten his continuous recourse to heavy monetary financing from the Bank of Mauritius(BoM)which have been aggravating pressures on depreciation and inflation. After years of endemic corruption, irresponsible populism, economic mismanagement and without any vision to run the country, this regime has squeezed all life out of our economy leaving us on our knees , incapable and too weakened to face the stiffer headwinds of the present and oncoming global storms…
Plus socialiste que ça tu meurs.
