THE creation of tripartite wage boards decades ago — one for every region — had a solid economic basis. The underlying principle — underdeveloped regions may attract investments if their wage levels are slightly lower than their richer counterparts — looked like a sound investment-generation principle, after all. The core principle was this: let the regions decide on their ideal wage levels and see if this would work as a generator of much-needed investments in the laggard regions.

Development experts agree, then and now, that the surge of investments and economic opportunities in the eastern part of the country — the side facing the Pacific Ocean where the poorer regions are — would easily translate to a 3- to 5-percent gross domestic product (GDP) growth. That growth alone was enough reason to tone down opposition to the handover of wage-setting powers to the tripartite wage boards.

Register to read this story and more for free.

Signing up for an account helps us improve your browsing experience.



See our subscription options.

Already have an account? Log in here