The world is getting richer, how about You?

Sean Ellis photo

By

Siddhartha Rastogi

Ben Bernanke once said, “Income inequality is troubling because, among other things, it means that many people in our society don’t have the opportunities to advance themselves.”

Throughout the world economic disparity is increasing as are the opportunities for lesser halves. Since 2008, a decade ago when the world was hit by an economic crisis, global wealth has increased by 27% to 280 Trillion USD.

As of 2017 the wealthiest 1% population owned 50.1% of all household wealth in the world, whilst 1% of the richest Indians held 58% of India’s household wealth.

The biggest beneficiaries of demonetization were rich 1% Indians whose wealth grew by a whopping 73% in CY 2017. Ironically the poorer half of India comprising 67 Crore Indians saw their wealth growing by a meager 1% in 2017. In 2000, India only had 9 billionaires which increased to 101 by 2017 (17 in 2017 itself).

In India, wealth is often a product of Inheritance, Monopoly or Crony political connections.

Imagine, after 71 years of independence, India has just two and a half companies which control ~ 70% of the biscuit industry in the country. (Last I knew biscuits were made of flour, sugar & milk).

Similarly in a 2 wheeler segment, 4 giants control ~90% of the market share. (One being the breakway partner of existing large player).

Women in India remain the most vulnerable and hugely disadvantaged, the situation deteriorating.

India ranked 121st out of 131 countries in female workforce participation. Female Labour Force Participation (FLFP) in India dropped from 34.8 percent to 27 percent between 1993 and 2013 – two decades that saw stable economic growth in the country.

China’s FLFP figure in 2013 was at 63.9 percent, while Nepal’s was 79.9 percent. (See the left chart; we are just better than the Arab World & Pakistan)

Successive governments in India have not helped the cause of Women barring lip service. (See the right chart above, declining trend of Women in Workforce)

Whenever there is an employment problem, it’s Women who suffer, be that an Anganwadi worker, a lady teacher or female pilot.

This is despite the fact that Women are stronger than men…

Siddhartha Rastogi

Siddhartha was born to a learned middle class educated family in Semi Urban India. His father was an extremely honest man who because of his honesty had to pay the price in corporate world. Mother is a determined woman who ensured that children are being well taken care off. After a few years of birth, doctors called Siddhartha, a slow child having flat foot. He would fall more than he could walk. Determined mother ensured all therapies for her son to come out strong to fight the world. Siddhartha joined swimming when he was in 6th standard. Seeing other children of his class, he jumped in 10 feet deep pool and learnt swimming on his own, the very same day.

From that day there was no looking back. He topped his city in 12th and went to score highest in his B school exams. During his profession as banker, he became youngest branch manager of a MNC bank managing their biggest wealth branch in the country. There he found love of his life and got married. His love of his life emerged in the form of his daughter who completely changed him for good.

Siddhartha Rastogi is Director for a boutique Investment bank in India.

Siddhartha is a forward looking thinker & writer who has written a book on decision making. 8 Simple steps to effective decision making.

He writes on various social and current issues via his blog and can also be found on twitter.