Bharat Band

The government hiked the price of petrol by Rs. 7.54/liter (including taxes) at midnight yesterday. Based on the new rate Indians pay ~ $5.54/gallon. As I sat there contemplating how expensive it would be to drive around Patna, I was reminded of Esther Duflo's book Poor Economics. She states that although price hikes affect everyone, they adversely and rather severely affect those that are really poor. The average middle class household may let go of a few luxuries but the poor may have to resort to reducing or skipping meals just to survive. 

A few political parties have decided to protest the hike and declared a Bharat band (All India shutdown). This means in all the major towns & cities - including Patna - activities stop. Public transport, shops, schools, businesses are forced to shut down. The protests initially started out peacefully but by mid-afternoon we've had violence throughout the country...Patna, Pune, Bangalore, Kolkatta. 

The violence much like the forced shutdown causes unnecessary harm. In the end, politicians are featured as part of a morning headline and regular people suffer the consequences of  public buses being set on fire, trains halting for days, damaged cars and closed down commercial businesses. 

I remember planning a trip with senior management at GM a few years ago- they were all foreigners visiting India for the first time. The day before the trip, a band (shutdown) was declared and the trip was cancelled given the risk involved. Lost business, lost tourism, lost jobs and a risky reputation for the country to overcome. 

Inevitably, I wonder how we could express our discontentment in a useful and peaceful way. Rather than halting the economy and wasting India's precious resources - why not reward those businesses that are working towards lowering our dependence on petrol? Rather than voicing discontentment through a shutdown each time we face an issue why not put forth real solutions? 

Sure, shutting down India leads to one benefit - bringing the issue to the forefront. The steepest hike yet for those paying Rs. 73.14/liter is enough assurance that the issue won't go unnoticed.