The offer by a number of corporates to participate in a massive slum rehabilitation programme in Mumbai is good as far as it goes. But, if the private sector really wants to show its human face it would do so better through more active involvement in anti-poverty efforts.

Left parties and development economists have flaunted often exaggerated data since reforms began alleging neglect of the poor. True, to begin with, fiscal stabilisation prevented substantial allocation to social welfare. In 1993-94, an effort was made to give reform a human face. In 1995-96, electoral compulsions caused the then government to incur substantial populist expenditure, throwing fiscal caution to the winds. The fact is, the government can afford no more of such spending.

It is in this respect that the support lent by a number of Mumbai-based industrial houses has to be given an anti-poverty thrust. This can take diverse shapes: corporate farming, financing of non-farm activities, agro-processing, adoption of villages for development by different firms etc. The government, centre and state, and apex industry bodies and chambers of commerce must come together and evolve an action plan that does not expect only charity of corporates but also provides economic incentives. Tax reliefs are already provided, but a commercial edge to whatever activities are being planned will help more. Only such commercial viability can guarantee success of anti-poverty action. The wastage that goes with Government-sponsored efforts will get minimised when corporates get into the act.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.