How to fix the Unemployment Problem ?
Asutosh Dixit
Cards and Payments Business Analyst Ex-Verinite Visionplus, Intellect, PowerCard, Smartvista
This Sunday I tried to find solution to most intriguing question. How to provide jobs for all ? How to solve the unemployment problem ?
Since childhood we always heard from APJ Kalam ji, the militancy problem will be stopped when we provide employment, jobs to everyone.
Terrorism will be stopped when we provide jobs to everyone. Provide jobs, prosperity and they will be busy working for the end user and won't join militant outfits.
Idle mind is a devils workshop. Give respectable jobs and people will not be indulged in mugging and other critical society issues.
Providing employment will also solve drug menace, unrest, militancy and provide much needed self respect, ability to take care of families.
Hence, it is worth finding a way to enable jobs for everyone. Let's look at how we can address this issues.
What is the problem with the current process ?
We don't consider everyone is eligible. Current structure eliminate a large number of people like uneducated, school and college drop outs, socially and physically differently abled people. The unemployment number published in India, USA everywhere is in a range of 0% to 5%.
So many years we are reading this number and no body question this number. Is this number credible? Why this number is very small and far from the reality.
Current unemployment numbers only consider graduates, only who are registered to be eligible for employment.
Current process doesn't consider large number of artisan jobs, porter jobs, carpenter jobs, barber jobs, house maid jobs are valid jobs. These are the jobs which are there with mankind for ages.
We need to bring them to the mainstrem.
What is impact of the problem ?
The large number of contributions like barber jobs, near by grocery shops, medicine store, hardware vendor jobs, near by electronics shop owners and vegetable vendors are not getting included in formal job calculations. Their efforts are not getting measured. They are key drivers of goods and services and are mostly skipped from government programmes, GDP calculations.
This is creating another set of problems. They lack financial identify. Their incomes are not measured. Hence they could not get included from loans and other financial products like insurance, wealth management products.
A large unemployed population also create, increase other existing social issues like drug menance.
What are the available solution models for the current problem ?
I checked a lot of models of varied consulting institutions like World bank for job creation. They are like below:
Jobs and Economic Development Impact (JEDI): Create new sectors for job creation and help establish new sectors. Governments across the globe focus on new sectors like electronics, bio-fuel, semiconductor for job creation.
Promoting Tourism: Creating tourist landmarks create inflow of new tourists and new jobs gets created to provide food and services.
Input-Output: Social Accounting Matrix or Infrastructure Spending: Create new road and large number of industries gets created. It helps transfer of wealth to hinterlands and promote tourism and prosperity.
Helicopter money: Print a large amount of money and distribute among people and the demand will be bolstered and move the wheels of the economy.
But these models are effective to a certain extent and not capable of complete eradication of unemployment problem. They can potentially create another problem like distributing helicopter money can incresae inflation.
What is the proposed solution ?
The solution is Indian. The solution is being practised in India for thousands of years. To understand the model you need to go the villages of India.
In a village of 100 families, 60 families are for farming, 3 families of priests,5 barber families ,5 potter families,10 milkmen families,5 gardener families, 5 dhobi(cleaning) families and 5 families for fishing. The village was self-sustaining, independent and balanced.
When the size of of the village doubled, number of potters will grow, barbers will grow and they would be meeting the increase in demand.
If you look at today's Indians the surnames will signify which work they were earlier assigned to. But this system doesn't eliminate anyone from jobs.
How to replicate this model?
Today's jobs and industries need scale. We need to consider districts and make each districts self sufficient instead of villages.
When MNS chief Thackrey said Bihar must have been developed we must now find solutions to the problem. He is correct. If we focus on each districts then the state will have enough jobs and stop large migrations.
Which are the jobs we need to provide at district level ? They say if you go to Bombay, you will find jobs.
We need to create Bombay in each district. Even though it is overstated, we need to have tax free, domestic consumtion focused, need based manufacturing zones in each districts.
Each District must have a PM initiated industrial area for supporting the needs of the district.
The same carpenters, farmers, milk men, potters never pay tax. But bring them to organized places would create efficiency, encourage innovation and easy customizations based on local needs.
Recommendations:
Domestic consumption focused industries: Creating fish balls, processed foods, cow feed, fish feed, mass grass cultivation and processing units, creating tiles, painting, industries to create wooden household tools.
The new age carpenter must use fair share of wood, plastic and metals to create excellent house hold tools. Ikea products will have less wood and more plastics, metals. Same need to be replicated.
traditional beds used in marriage in Odisha are made from complete wood. The carpenters are efficient and have best design sense.
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But the new age plywood made beds are easy to make and easy to transport. We need fusion of both. 4 solid pillars are also required.
Beds available in Ikea stores for illustration purpose. They lack longevity and strength.
May be some plastic and some use of metal can make worlds best beds.
When carpenters, plastic moulding and metal fabrications will happen in a single place, amusing products will be manufactured.
The resultant products will be made using metals, wood, plastic and plywood. They will be amusing products.
Large food processing units to create corn flakes, rice based, corn based other food items, fish balls, chicken sauces, chicken spread.
Low cost labor will create affordable processed foods for urban and village consumption. This will address the malnutrition issues of our village.
The new age carpenter must use plywood rather than woods. We need to create plywood manufacturing in each districts.
The new age saree must blend microfibers, new age polyesters with traditional silk and cotton to make it more light and nimble and manufacture in each districts.
Certain industries also must be set up at each state like electronics manufacturing, Petro chemical refineries, steel, aluminum manufacturing/recycling plants.
Pharmaceutical plants, cement plants, plants to generate agrochemical, plants to create ayurvedic products,plants to create generic medicines must also be created at each districts. They can be in the form of contract manufactures manufacturing goods and products for all brands.
These jobs could come to mainstreams, could contribute into GDP, could create scale and efficiency. This will address reach and affordability as well. With formal jobs they could have better welfare schemes and financial product offerings.
This will also create large demand for industrial companies like BHEL, Siemens for modular manufacturing equipment and tools. This will also address huge, unnecessary logistics requirement. We need large roads if we manufacture tiles only in Rajasthan, steel in Odisha and transport to all over India.
Like the cement manufacturing in India is scattered it must be replicated in all other areas like paints, agrochemicals.
High skilled person from these district level industry zones must graduate to port based, export oriented SEZs.
India will never become like west. Indian economy will never be driven by metros. Our villages are beautiful. Large Indians will never migrate to cities.
We need to bring traditional jobs to fomal employment.
We need to contain the demand nad supply of a district within the district(whereever possible).
Our industries must be designed to support the villages, improve the quality of lives of large Indians who are staying in villages.
If we provide quality food, proteins (chicken souses, fish balls, eggs along with the rice, covert all house to tile based pukka house and provide basic medical facilities in each villages, cow feed and fish feed it will significantly increase the quality of lives of all Indians.
In west people migrate to urban centers because they face 6 months of extreme winter and urban areas are well equipped to face extreme situations.
Last but not the list, we must do all existing approach of job creation like JEDI (creating new emerging sectors), create tourism monuments, tourism infrasturecture, sports infrastructure, create infrastructure for transfer of wealth to hinterlands, Input output methods and create labour intensive large manufacturing hubs in each districts. If we can't create these centers in each districts, we must start with 2-3 job centers in a state and slowly replicate it to other districts.
Regards:
Our societies are designed by monks and saints keeping sustainability in mind. They were also aware of the risks of large scale migration.
During Corona, I was thinking how beautifully our fore fathers designed a village. The demand and supply was managed in a village. The saints would travel village to village and would stay outside of the village under a banyan tree.
Villagers would come for knowlege, blessings and offer food and grains without touching.
For thousands years India, the monks of India are showing the world how to live, create societies. This is another reminder to refrain from mad industrialization and focus on need based industrializations.
Our governments across the globe as already working in this direction and this is a small effort in the common goal and prosperity of all, all states, countries.
With this I rest my case here. This is not technical but has the potential to completely change thousands of lives.
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Asutosh Dixit India is struggling with poor tax collections , high taxation and inflation leading to unemployment and we are making a sincere effort to solve this critical problem. Our initiative proposes a 1% tax that increases government revenue by 250% and saves Indian taxpayers 90% on income tax. Check our pinned post for details.???? All our analysis is done based on government submitted financial information https://www.dhirubhai.net/posts/tax-reform-india_1-tax-proposal-activity-7218995924839059457-oMj_?utm_source=share&utm_medium=member_android