This summer, a branch of the State Bank of India, a long-standing Indian public institution, opened in Chhapora, a small, isolated village in Chhattisgarh, one of the country's poorest states. Gleaming signs, brand-new computers lined up behind counters, forms printed with the bank's logo: Who could have imagined that the new branch was actually a fake? Especially since the fraudsters, claiming to be experiencing delays in server deliveries, had refused to accept bundles of bills brought in by the village's residents, who were relieved to finally be able to put their savings somewhere other than under a mattress or a pile of saris.
The scammers got rich in another way: By demanding money in exchange for the promise of jobs at the State Bank of India. They thus amassed the equivalent of tens of thousands of euros, and then vanished into thin air. Only one of them was arrested. You've got to hand it to them, though, for a certain inventiveness. With so many people warning about online scams, one forgets that bank fraud isn't just a virtual problem. The fraudsters had understood that mass unemployment is the scourge of India. Jobs have become so scarce that unemployed people will do anything to get one, especially if it's a civil service job.
Jobseekers fell victim to a similar scam at the end of 2022, this time one that promised jobs on the Indian railroad system. After supposedly recruiting them on a commission basis, the scammers sent them to stations to count the trains, before disappearing. The private sector offers very insecure working conditions, and cases of overwork are increasing, as demonstrated by the recent suicide of a young employee of auditing giant EY.
Many other developing countries are threatened by joblessness. "The specter of unemployment looms large, potentially leaving 800 million young people without meaningful employment, and threatening to destabilize societies and hinder economic growth," said World Bank president Ajay Banga, in October, at the institution's joint annual meetings with the International Monetary Fund. This scourge is badly reported, and, therefore, invisible; and is often confused with the informal sector, which consists of small-scale jobs, such as pressing the buttons in an elevator or opening a store's doors.
Industry at half-mast
After growth without jobs that threatens rich countries, should we fear development without jobs in low-income economies? With the automation of production lines, the manufacturing industry needs less manpower than it did 20 years ago. The cost of labor is no longer a decisive argument in attracting companies to low-income countries. To this must be added the rise of protectionist barriers, which make relocation even more costly. It is, therefore, hard to bank on the rise of export-oriented manufacturing industry to help combat unemployment.
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