Pandemic of poverty: India's financial crisis worsens

Mafazah Sharafuddin
May 31, 2021

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As the country suffers the threat of death and disease, financial struggle looms over it. There has been a huge loss for several of the economy. The government has issued aid, however, it is insufficient and neglects the unorganized sector entirely. 

The estimation of the government, standing at Rs 1,250 crore, and is not close to what is needed by the people. Additionally, it does not aid those who don’t come under government schemes, meaning a huge chunk of the unorganized and industrial sector. 

The financial crisis in India due to COVID is a many headed demon. So many different issues have arisen since the start of the pandemic, and the people of India are suffering under the financial burden. 

Sudden shifts

Since the beginning of the pandemic, the word ‘unprecedented’ has been used innumerable times. Problems arrive suddenly, with no warning. People are losing their jobs all at once after years of working in the same place. 

With the magnitude of the death toll, many a times the sole breadwinner of the house passes away. This leaves the family floundering, looking for jobs and trying to keep mouths fed.

People who are newly unemployed and unable to find jobs in the same industry are left confused. They have a skillset that employers are not looking for and eventually, they have to resort to unskilled labor which gives them lower wages. 

Warning signs 

The fact is that the people are suffering. The numbers back it up. There has been a 15 to 20% increase in poverty since the pandemic began. This means more than 23 crore people have slipped below the poverty line. 

Unemployment has increased, too. 1.5 people have been lost their jobs, and those who continue to be employed face lowered salaries. The per capita income of the country has lowered by 16.8% to what it was in January of 2020. 

Within 2020, there was an increase in people partially withdrawing funds from their Employee Provident Fund accounts. While it was 54 lakh people in 2019, 2020 saw 1.27 crore people doing the same. 

According to RBI, there had been an 81.5% increase in that loans against gold jewelry by Scheduled Commercial Banks in March in comparison with the same last year. 

MFIs, MSMEs suffer losses

MFIs (Micro finance Institutions) cater to the poorer sections of Indian society. The lockdowns have has adverse effects on the functioning of NBFCs and MFIs. With the poor already suffering through unemployment and steep hospital bills, this too has caused a bad hit.

Some sectors are faring worse than others. These industries thrive on travel, face to face interactions and consumerism. Retail, MSME, and hospitality are some of them.

The pandemic has resulted in the closure of 15-20% of the MSMEs in India. Large scale supply chains are taking away their customers as they are not able to operate as usual during the pandemic. If the situation continues, there could be a much larger percentage of MSMEs closed during the pandemic. 

Small businesses run into trouble

Small businesses like family run stores are facing trouble getting customers and keeping their shops open. The lockdown hours put a huge dent in the time they can sell to people. Shops that don’t count as ‘essentials’ often cannot open at all. 

Chain supermarkets and other shops are seeing more traffic as these small businesses get neglected. Without their livelihood, the threat of COVID increases as they would not be able to afford the hospital bills and medication.

Sellers over the internet find it difficult to post packages as delivery services do not function everywhere due to COVID. Small businesses are losing customers at a large scale. 

Social workers rise to the occasion

While the situation is dire, social worker and organizations have taken the initiative to help people. All over India, social workers and volunteers are assisting on everything from grocery packages to cremations. 

The workers help with transportation, reservation of beds, intricacies of the Ayushman card, ensuring the patients and the family members staying with them are fed, etc. With the ongoing crisis with the bodies piling up with no one to deal with them, social workers are also burying and cremating bodies. 

Not just this, but they are also helping people who are not infected, but have been affected by the pandemic. Distributing food, rations etc. to those in need is another task they perform. 

However, without proper government aid to the poorer sections of society, there is no saying how bad the situation could get.

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News Network
November 14,2024

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The UN special rapporteur for Palestine has slammed Israel’s parliament for passing a law authorizing the detention of Palestinian children, who are “tormented often beyond the breaking point” in Israeli custody.

Francesca Albanese, the UN special rapporteur on the rights situation in the Occupied Palestinian Territory, in a Thursday post on X, characterized the experiences of Palestinian minors in Israeli detention as extreme and often inhumane.

The UN expert highlighted the grave impact of this policy, noting that up to 700 Palestinian minors are taken into custody each year, a practice she described as part of an unlawful occupation that views these children as potential threats.

Albanese said Palestinian minors in Israeli custody are “tormented often beyond the breaking point” and that “generations of Palestinians will carry the scars and trauma from the Israeli mass incarceration system.”

She further criticized the international community for its inaction, suggesting that ongoing diplomatic efforts, which often rely on the idea of resuming negotiations for peace, have contributed to normalizing such human rights violations against Palestinian children and the broader population.

The comments by Albanese came in response to Israel’s parliament (Knesset) passing a law on November 7 that authorizes the detention of Palestinian children under the age of 14 for “terrorism or terrorist activities.”

Under the legislation, a temporary five-year measure, once the individuals turn 14, they will be transferred to adult prison to continue serving their sentences.

Additionally, the law allows for a three-year clause that enables courts to incarcerate minors in adult prisons for up to 10 days if they are considered dangerous. Courts have the authority to extend this duration if necessary, according to the Knesset.

The legislation underscores a shift in the treatment of minors and raises alarms among human rights advocates regarding the legal and ethical ramifications of detaining children and the conditions under which they may be held.

Thousands of Palestinians, including hundreds of children and women, are currently in Israeli jails—around one-third without charge or trial. Also, an unknown number are arbitrarily held following a wave of arrests in the wake of the regime's genocidal war on Gaza.

Since the onset of the Gaza war, the Israeli regime, under the supervision of extremist minister Itamar Ben-Gvir, has turned prisons and detention centers into “death chambers,” the ministry of detainees and ex-detainees’ affairs in Gaza says.

Violence, extreme hunger, humiliation, and other forms of abuse of Palestinian prisoners have been normalized across Israel’s jail system, reports indicate.

Over 270 Palestinian minors are being detained by Israeli authorities, in violation of UN resolutions and international treaties that forbid the incarceration of children, as reported by Palestinian rights organizations.

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News Network
November 18,2024

Advisors to US President-elect Donald Trump have instructed his allies and associates to refrain from using the inflammatory language they previously employed when discussing issues related to migrants and the deportation of asylum seekers, in a bid to avoid “looking like Nazis.”

US media reports said that Trump’s associates had been asked to stop using the word “camps” to describe potential facilities that would be used to accommodate migrants rounded up in deportation operations across the country.

The reports said the US president-elect’s allies had been ordered to stave off such charged terms as they would bring to mind “Nazis,” and be used against Trump.

“I have received some guidance to avoid terms, like ‘camps,’ that can be twisted and used against the president, yes,” one Trump ally told American monthly magazine Rolling Stone.

“Apparently, some people think it makes us look like Nazis.”

The presidential advisers also cautioned surrogates and allies to keep racist terms, which have dogged Trump’s campaign, out of their remarks.

They said with Trump’s heated rhetoric that used to compare undocumented immigrants to “animals” and his slight that they are “poisoning the blood of our country,” detractors did not need to reach too far to find parallels to Nazi Germany.

Stephen Miller, who Trump tapped to be his deputy chief of staff of policy, specifically used the word “camps” to describe holding facilities that he hoped the military could put together for immigrants.

Tom Homan, who served as the acting director of Immigration and Customs Enforcement and is chosen by Trump to be in charge of the US borders, was no stranger to such language.

“It’s not gonna be a mass sweep of neighborhoods,” he said in an interview earlier this week. “It’s not gonna be building concentration camps. I’ve read it all. It’s ridiculous.”

Becoming a little more forthright about the new government’s aggressive deportation plans, Homan likened the early days of the Trump administration to the initial invasion of Iraq in 2003.

“I got three words for them – shock and awe,” he said. “You’re going to see us take this country back.”

Trump made immigration a central element of his 2024 presidential campaign but unlike his first run, which was mainly focused on building a border wall, he has shifted his attention to interior enforcement and the removal of undocumented immigrants already in the United States.

People close to the US president and his aides are laying the groundwork for expanding detention facilities to fulfill his mass deportation campaign promise.

The businessman-turned-politician deported more than 1.5 million people during his first term.

The figure do not include the millions of people turned away at the border under a Covid-era policy enacted by Trump and used during most of Biden’s term.

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News Network
November 10,2024

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Mangaluru: A tragic accident took place on Saturday at Chembugudde near Thokkottu, claiming the life of a 47-year-old woman after a tanker lorry ran over her. The victim, identified as Rahmat H Rashid, was riding pillion with her husband, Abdul Rashid G, on their scooter. 

The couple was traveling from Yenepoya Hospital to Bajpe when the scooter skidded on the poorly maintained road. Rahmat fell onto the road and was fatally struck by a tanker lorry that was coming from behind. Despite being rushed to the hospital, doctors declared her dead upon arrival.

The incident prompted a swift response from the DYFI Ullal Taluk Committee, which staged a protest on Saturday night, condemning the unsafe condition of the road. Nithin Kuthar, president of the committee, criticized MLA and Legislative Assembly Speaker UT Khader for failing to ensure safe infrastructure, despite touting the road as toll-free. 

Kuthar demanded immediate repairs, warning that the committee would march to the MLA’s office with black flags if the road is not fixed within a week.

Former DYFI State President Sunil Kumar Bajal also voiced frustration over the deteriorating condition of Thokkottu market, highlighting the struggles people face while crossing roads riddled with dangerous potholes. In response to public outcry, temporary repairs were made to the road at Chembugudde on Sunday, though locals remain wary and demand a more permanent solution. 

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