Welfare versus productivity in India

Shoma A Chatterji, The Statesman, Asia News Network, Calcutta

The term "welfare" has a somewhat derogatory connotation for senior citizens, especially so in India. Sociological research on aging and the aged generally focus on health, welfare and family ties. Few studies have addressed the problem of financial insecurity that accompanies old age, and which, perhaps, is the main reason why, as one crosses the 60-year barrier, one begins to fear for one's future.

Within a capitalist or a mixed economy, where the private and public sectors function side by side, the wage-labor system is so structured that it almost automatically fixes a cut-off point for the old from the production of goods and services. This labels the aged as an economically unproductive liability. Aging, in such a context, then becomes a process of deprivation leading to "structured dependency".

The world's population aged 65 years and above more than doubled between 1950 and 1985 and is expected to grow from 132 million in 1985 to 465 million in 2025. In the Asia Pacific region, these numbers are projected to increase from 46 percent in 1990 to 55 percent in 2025. In India, while the average rate of population growth is 18 percent per annum, the slice of population above 60 is growing at a phenomenal 38.42 percent. Today, one in every eight Indians is above 60 years. This also means that most of them are no longer in paid employment. The chronological limit completely ignores the productive capacity of these people.

However, chronological age at a time of increased health awareness and innovations in medicine does not necessarily affect the productivity of these people. With longer life expectancy and emphasis on the one-child norm, at least so in urban areas, India will soon confront a significant decline in the younger population and a rise in the older population.

Greater life expectancy means that a larger number of retired people must be supported by the younger working population. This would place increased financial pressure on the younger generation, as looking after these economically unproductive older men and women will diminish their savings for the future, placing them in a bigger trap than those who are dependent on them today. Old age homes are no answer to this problem since (a) most of them run on the basis of profit (b) there are only around 400 old age homes that can support barely 5,000 old people (c) old age homes are emotionally devastating.

Retired people forced to take shelter in old age homes feel isolated, unwanted and unloved and this drives them to an early and tragic death. Paradoxically, affluence and old age homes have a direct relationship with each other. Kerala has the largest number of old age homes in the country, probably stemming from the large-scale immigrant male population in this region.

In India, the old and the retired face grave financial crisis because most of them were not aware of the importance of saving and investment for old age. The only savings most have are the accumulated compulsory deductions from the monthly salary, added to the company pension scheme or employee's provident fund. This barely covers those who are a part of the organized sector, which is not more than around 12 percent of the work force.

Again, many of them have withdrawn money from this fund to invest in a son's education or a daughter's marriage or perhaps, a house to fall back on. Thus, they step into retirement without the slightest financial or emotional preparation. These compulsory savings do not include self-employed professionals and businessmen such as lawyers, landlords, shopkeepers, doctors, domestic workers, casual workers and farmers.

Life, overnight, turns into a prolonged nightmare filled with the dangers of uncertainty. Those who may have invested in life insurance policies often do not benefit either, because the money goes to their heirs after their death. A strong dependence on traditional family ties and a wrong perception of children as an "investment" for old age is often responsible for such plight. The definition of "family" has changed over time and so have family values.

For those who have just retired or are about to retire, the constant lowering of interest rates, the uncertainty resulting from the dichotomous privatization of insurance, the violent incertitude of a fluctuating stock market -- factors on which they had laid the economic foundations of their retired future -- have made their problems worse.

Indrani Chakravarty of Calcutta Metropolitan Institute of Gerontology says, "Since most of the elderly continue to want to play a part in society, efforts must be made to establish working places and job categories to suit them." She adds that in an earlier survey, when senior citizens were asked to recall what problems they anticipated at home upon retirement, an overwhelming majority -- 61.23 percent -- spoke of economic problems.

The survey also found that a vast majority of men and an appreciable number of women in India are unwilling to retire, again due to economic reasons. For most, working is not merely a means of livelihood, but the very essence of existence. In the West, there have been suggestions that the retirement age be raised from 65 to 70 years, as improved health means people are now fit for a longer work-life.

The status of the elderly varies significantly across time, place and social set up, including the extent to which retirement policies, pension provisions and housing can foster independence or generate dependence, with important implications for physical and psychological health. It is sad that along with a new interest in the consumer and the political potential of the elderly, one can also discern a feeling of moral panic.