Rich or Poor? We are only HUMAN !

Disagreements about the optimal level of wealth inequality underlie policy debates ranging from taxation to welfare. We attempt to insert the desires of ‘‘regular’’ Indians into these debates, by asking a nationally representative online panel to estimate the current distribution of wealth in INDIA and to ‘‘build a better India’’ by constructing distributions with their ideal level of inequality.

What’s an acceptable level of income inequality in India? Is the current situation far too unfair, as many who lean to the political left maintain? Would ending tax breaks for people earning more than 500,000 a year constitute “class warfare,” as many on the political right contend? Complex questions, to be sure.

But some surprising insight into these issues comes from a remarkable recent study by Harvard Business Review. You might be surprised by the results, whatever be your political persuasion or net worth.

It states :-

First, respondents dramatically underestimated the current level of wealth inequality. Second, respondents constructed ideal wealth distributions that were far more equitable than even their erroneously low estimates of the actual distribution. Most important from a policy perspective, we observed a surprising level of consensus: All demographic groups—even those not usually associated with wealth redistribution such as Republicans and the wealthy—desired a more equal distribution of wealth than the status quo. The idea which inspired this has been stated in the first lines of this blog. 

In their survey of 5,500 Indians, by asking respondents which of three templates of wealth equality they thought would be best: one representing perfect equality, where the bottom one-fifth of the population owns one-fifth of all wealth, as does the top fifth and every other fifth; one representing the current Indian situation, where the top fifth controls 84% of all wealth, while the bottom fifth owns 0.1%; and one representing the distribution in India, where the top fifth owns 36% and the bottom fifth controls 11%.

Why a Bad Economy is Good for Marriages 

Though not always. Interestingly, men tended to report increased relationship satisfaction only when none of the blame for household financial woes was directed at them. Diamond theorizes that societal pressure on men to be breadwinners (even when their wives contribute significant portions of family income) is still such that any blame directed at them — shared or not with anyone (their spouse) or anything (the national economy) — leaves them feeling less satisfied about their relationship. Yet more evidence of the often cited fragile male ego. Now that is a good point to cherish with. The economic downturn is forcing many unhappy couples to reconsider the financial pitfalls associated with divorce.

It’s a fairly revealing set of results. Despite all the talk about a divided Indians and class warfare, there is a remarkable level of consensus about the ideal wealth distribution across the political spectrum and income levels. The preferred wealth distributions of different party voters were only trivially different—in the direction you would expect—as were the preferences of those making less than 500,000 and those making more than 1,000,000. For all the alleged discord in this country, there’s an amazing amount of real agreement on what “a better India” would look like.

To be sure, liberals and conservatives often have very different ideas about how that ideal distribution should be achieved. But much of the prattle about class warfare these days comes not from mainstream Indians, but rather from those folks who have the most to gain from pointing out differences even when they may not exist: politicians and the media who cover them. So, the question which rises is  "Is Your Mind Over Money?"

WHY COOPERATIVES ARE SIGNIFICANT FOR SOCIAL JUSTICE ??

As it is the  International Year of Co-operatives 2012 the concern rationalizes my thought for the day.  

Throughout the world today, societies are being torn apart due to the fact that various social groups and classes are not getting their due respect from other forces in society. Many societies are lacking social justice which could be seen as equal opportunity treatment of all persons in society. Various institutions have the responsibility to ensure this happens. Yet social justice is absent in many instances.

Cooperatives are based on principles and values that speak directly to the issue of social justice. Most traditional cooperatives follow the seven principles of cooperative identity, promoted by the International Cooperative Alliance (ICA), an Apex organization for cooperatives around the world. These principles call for the practice of democracy, equality, equity and solidarity. Cooperatives also embrace the ethical values of honesty, openness, social responsibility and caring for others.

With these principles and values at the core of cooperative operations, the poor, excluded and marginalized sectors of society are usually served well by cooperatives. The financial sector is one area where this has shown well. Financial cooperatives are some of the largest providers of micro-finance services to the poor. It is estimated that globally, financial cooperatives reach millions of clients living below a poverty line of Rs.75(Seventy five Only) per day. Financial cooperatives thus play a central role in the achievement of an inclusive financial sector that encompasses the poor.

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Through their commitment to servicing the poor and under-served, financial cooperatives are helping to lessen the burden of poverty.  Financial cooperatives, by providing savings products, help to reduce members’ vulnerabilities to shocks such as medical emergencies. 

Cooperatives have also been instrumental in promoting inclusive development in rural areas, helping to both strengthen and diversify rural economies. Financial cooperatives provide access to credit for members who might not typically have access to the larger savings and commercial banks. This is significant in markets where financial providers are absent owing to poor revenue prospects, high risks, or high transaction costs. This access to financial services often supports the formation of small and micro businesses.

Cooperatives have also been able to strengthen agricultural production and improve access of poor farmers, especially through engaging in fair trade arrangements. Small farmers who struggle to create and sustain businesses of their own are able to increase farm revenues, lower marketing and information-gathering costs, as well as enter into high-value supply chains that they would not be able to do on their own.

THE MIRACLE WATER VILLAGE 

narrates the inspirational story of impoverished farming community in India that reversed its fortunes through its visionary model of water management with the help of cooperatives.

While the need for more research cannot be denied, that which exists supports the idea that, if given the right supportive environment, cooperatives could help in profound ways to achieve social justice, where it is lacking. Empowering cooperatives to leverage their capacity to contribute to social justice requires a sound policy and legislative framework. 

The International Year of Cooperatives 2012, declared by the United Nations General Assembly, is one means to raising awareness. By raising awareness of cooperatives – what they are and what they do – the IYC will empower cooperatives to promote their social justice values and encourage governments to create supportive policy and legislative frameworks, where needed.

Even with this support, the challenge of effective implementation of the cooperative principles and values cannot be ignored. The sound governance of cooperatives depends upon a well-informed and active membership base, dedicated to cooperative values and principles. To sustain the drive of cooperatives for social justice, a strong membership base, bound by the democratic one-member-one-vote principle, is essential to addressing weak or unethical management, capture by local politicians, or other conflicts of interests which could divert cooperatives from addressing social justice issues.

So it lies in the hands of youths of India and Cooperatives to popularize models under NATIONAL COOPERATIVE UNION OF INDIA.