Ashraf Engineer
February 1, 2025
EPISODE TRANSCRIPT
Hello and welcome to All Indians Matter. I am Ashraf Engineer.
In Episode 1 of this series on the rise of oligarchy in India, we talked about how it impacts the economy and fortunes of common citizens like you and me. In this second and final episode of the series, I want to talk about its impact on democracy and what can be done for India to set things right.
SIGNATURE TUNE
Logic tells us that there should be a higher burden of taxes on the super-rich. Ask people and most will tell you that they support such a policy. However, what we find is that the ultra-wealthy are actually subsidised in various ways, through a tax burden that’s nominal compared to their wealth, through loan waivers, through policy tweaks and so on. What this means is that the fiscal burden is shifted disproportionately downwards to the middle and lower classes. The way the Goods and Services Tax is structured is only one example of it.
People who struggle to send their children to school or access even basic healthcare do not get the help they need for these reasons. So, rising inequality is a result of redistributive policies that help the richest get even more rich.
You see, when democracy combines with oligarchy, inequality gets more and more stark but is talked about less and less by institutions like the media because they too are increasingly owned by the oligarchs. These outlets are used also to make the case for their owners, their editors unashamedly supporting the party line and shaping coverage in a manner favourable to their owners’ political allies.
Concentrated wealth serves as a source of power as well as the motivation to concentrate it even more. Look anywhere, whether it’s in the US or India, even if the oligarchs compete in certain industries, they unite when it comes to threats to their wealth.
Their riches enable them to hire armies of lawyers, lobbyists, creative accountants and others to achieve their goals and also to silence any opposition they might face. For example, media houses and journalists who refuse to toe the line are often buried under an avalanche of lawsuits that they cannot afford to contest.
These professionals also act as intermediaries in the dealings with power and shield their employers from accountability. Whatever hardship common people face, oligarchs experience no disruption in their lives or businesses.
Incidentally, the election of Donald Trump in the US is interesting in the context of our discussion. Trump has sought to create deep partnerships with business and technology leaders. As I said, the symbiotic relationship between the power centre and the business elite means quid pro quo. So, Elon Musk has an oversized influence on Trump and his policies. Musk was already the world’s richest man and now his power has expanded further. In turn, he has contributed huge amounts to the Trump campaign and worked hard to make him win. So, not only is there a threat to the capitalist structure in the US, it could even erode its democracy.
As things stand, the state has turned into a profit centre for large businesses. And it’s not as if this is the work of one political party alone – whether it’s in the US or India. In India, both the Congress and the Bharatiya Janata Party favour the industrial route to progress. What varies is which industrial houses each favours when in power. To the Congress’ credit, it has tried hard to balance social welfare with industrialisation and the economy has fared better under it and it has achieved more broad-based growth.
I don’t think the oligarchs simply want to bypass the complicated and lengthy routes to expansion or to insulate themselves from scrutiny. In my view, they want to replace the government in many of the tasks it traditionally does.
In India, one example could be the rapid handing over of existing infrastructure and the creation of new infrastructure to select business houses. In the US, Musk wants to be the one to shape the future of space exploration and for that he wants NASA’s autonomy to be reduced. That could mean it becomes a glorified contracting agency handing over much of its work to Musk’s company, SpaceX.
There’s absolutely no doubt that the rise of oligarchs means that our political leaders have failed us. Nobody says democracy’s perfect but it’s the best form of government we have. Today’s leaders have no answers to the challenges before us: the cost of living, high unemployment, poverty, hunger, inequality, digital security threats, the climate and many more. So, they consolidate power through alliances with the ultra-wealthy instead.
Oligarchy is just one of the many threats to democracy but it’s a serious one. Our leaders need to make a stronger case for democratic rule and that means democracy must deliver on its promises. It means standing up for institutions – for instance, an independent judiciary, a neutral election commission, a free press, civil society… We need a better national discourse on the principles on which this country was built and whether it is meeting its obligations to the people. And it’s not just up to the leaders but us as ordinary citizens.
The first act of oligarchs and their political allies is to chip away at the checks and balances on their power. So, it’s important to remember that democracy isn’t just the holding of elections but also public debate, a competitive polity, guaranteed individual rights and accountability. These are all the restraints that come under attack when you have autocrats propped up by oligarchs in power.
In some parts of the world, political coalitions have formed, across sometimes competing ideologies, that reflect the growing awareness that there is a common interest in opposing such rule. These parties recognise that partisan differences pale in comparison to the challenge faced by their democracies. At home, we are seeing this in the form of the INDIA alliance – although it seems wobbly more often than not.
As pressure on the autocrats in power builds, their reliance on the oligarchs increases. They shift from rule by manipulation to repression and fear. For this, they need the backing of the wealthy more than ever.
If we are to return to a state that truly cares for everyone, if we are to have a sense of national purpose again, if we are to have strong social welfare and economic safety nets, we need a whole new kind of politics – the kind that breaks the stranglehold of wealth on power and is invested in social and economic justice.
Sadly, many parties are fearful of economic power – of the vast conglomerates, the media owners and other oligarchs who now dictate the course of our politics. The longer the situation is allowed to linger, the more entrenched oligarchic power becomes.
If we want to preserve our democracy, reach for equality and have a state that functions for everyone, not just the wealthy few, we don’t need an acceptance of massive economic influence but to beat back its grip on power and national resources.
Thank you all for listening. Please visit allindiansmatter.in for more columns and audio podcasts. You can follow me on Twitter at @AshrafEngineer and @AllIndiansCount. Search for the All Indians Matter page on Facebook. On Instagram, the handle is @AllIndiansMatter. Email me at editor@allindiansmatter.in. Catch you again soon.
