The lovely tale of Liquor
during Lockdown and before
At every stage, addiction is driven by one of the most powerful, mysterious, and
vital forces of human existence. What drives addiction is longing —
a longing not just of brain, belly, or loins but finally of the heart.
Cornelius Platinga
The use of alcohol in India for drinking purposes dates back to somewhere between 3000 and 2000 BC. An alcoholic beverage called Sura which was distilled from the rice was popular at that time in India for common men to unwind at the end of a stressful day. . Yet the first mention of Alcohol appears in Rig Veda (1700BC). It mentions intoxicants like soma and prahamana. Although the soma plant might not exist today, it was famous for delivering a euphoric high. It was also recorded in the Samhita, the medical compendium of Sushruta that he who drinks soma will not age and will be impervious to fire, poison, or weapon attack. The sweet juice of Soma was also said to help establish a connection with the gods. Such was the popularity of alcohol. Initially used for medicinal purposes, with time it evolved and became the beverage that brought life to social gatherings, and eventually consuming alcohol has become a habit for many.
With such a rich history of not just humans but also of the gods,
what is a worldwide pandemic to stop anybody from drinking?
. . .
According to a report released by the World Health Organisation (WHO) in 2018, an average Indian drinks approximately 5.7 liters of alcohol every year. In a population of casual and excessive drinkers, with the shutters of liquor stores down, it must have been extremely difficult for “certain” people to survive lockdown. In the first two phases of lockdown, the desperation had quadrupled prices of alcohol in the Grey Market of India. Also, According to Google Trends, online searches for “how to make alcohol at home” peaked in India during the fourth week of March, which was the same when the lockdown was announced. As a consequence, a few people died drinking home-brewed liquor. People committed suicide due to alcohol withdrawal syndrome. Owing to the worsening situation and to reboot the economy, some states decided to open licensed liquor stores in the third phase of the COVID-19 Pandemic lockdown in India. This decision was the worst best decision the state governments could take. The kilometer-long queues in front of liquor stores were evidence that a pandemic can turn your life upside down yet your relationship with alcohol cannot move an inch.
The love in the hearts of those who are addicted was explicit. We might have seen addiction, we might have witnessed desperation but what happened in the month of May was madness, not just in terms of the way people pounced but also in the way the government earned. According to a report by Hindustan Times, on the first day of the third phase of Lockdown, the Indian state of Uttar Pradesh recorded a sale of over Rs 100 Crore from liquor. On the second day of the reopening of Liquor stores, Karnataka reported sales of 197 crores in a single day which was the largest ever. Eventually, the prices of Liquor were hiked to 100% to discourage people from drinking.
. . .
There was a special corona fee that was imposed in Delhi by Chief Minister Arvind Kejriwal. A 70% corona fee was imposed in Delhi, yet the sales did not drop. The entire situation was a disaster for the law enforcement officers, social distancing was easily abandoned and a basic code of conduct was happily violated. Despite the chaos created, the states continued to collect revenues. Home delivery of alcohol was allowed in Maharashtra and e-tokens were sold in Delhi.
Demand for liquor is inelastic which means that
the sale of alcohol is not much responsive to change in prices.
In general, since alcohol policy is a state subject in India, revenue from Liquor is a cash cow for state governments. In 2018 and 2019, four states collectively collected about 20,000 crores in taxes from the sale of liquor. As much as the state earns from the sale of Liquor it is undoubtedly, a threat to the Economy. Consumption of alcohol has dire health consequences. When a person consumes an alcoholic beverage, there is a rise in BAC because of which there is a gradual and progressive loss of driving ability because of an increase in reaction time, overconfidence, degraded muscle coordination, impaired concentration, and decreased auditory and visual acuity. This is known as drunken driving. (V. M. Anantha Eashwar, 2020) Drunken driving is the third biggest cause of road accidents and over speeding in India. Road accidents are not it; alcoholism causes sleep problems, heart, and liver issues. Also, it is not about an individual’s life, it ruins the lives of all people concerned.
Addiction also causes economic loss. In 2000, Vivek Benegal and his team assessed 113 patients admitted to a special de-addiction service for alcohol dependence. They found that
the average individual earned a mean of ₹1,661 but
spent ₹1,938 per month on alcohol, incurring high debt.
They also found that 95% did not work for about 14 days in a month. They concluded that it led to a loss of ₹13,823 per person per year in terms of foregone productivity. A more recent study, Health Impact and Economic Burden of Alcohol Consumption in India, led by Gaurav Jyani, concluded that alcohol-attributable deaths would lead to a loss of 258 million life-years between 2011 and 2050. The study placed the economic burden on the health system at $48.11 billion, and the societal burden (including health costs, productivity loss, and so on) at $1,867 billion. “This amounts to an average loss of 1.45% of the gross domestic product (GDP) per year to the Indian economy,” the study said. (Mint, 2020)
Setho ka Gaon
With each passing day, the ‘curtain of separation’ weighs down on the women of Afghanistan, paving the way for tyranny to thrive.
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The ‘Dynamite’ Effect of K-Pop on the South Korean Economy
Back in 2012, everyone was dancing to the beats of one song only. People were hooked to its step. The song's music video created history by becoming the first Youtube video ever to get 1BN views (“The 20 Most-Liked Videos on YouTube,” n.d.). The song was none other than the South Korean Pop Hit ‘ Gangnam Style by Psy. Little did everyone know that it was the start of something that would sway away the entire world and put the South Korean entertainment industry on the verge of massive success. It was the emergence of K-Pop in the global plenary and its colossal effect on the country’s economy.
Korean Pop or popularly known as Kpop is not new to the world. It traces back its origin to the 1950s with The Kim Sisters, who were then immensely popular (Arnaud, 2021). However, the band ‘Seo Taiji and Boys’ should be given credit for giving birth to the modern-day Kpop which is influenced by American Music (Arnaud, 2021). The 1990s were pivotal in shaping and giving the characteristics that Kpop embodies contemporarily.
Thirty years down the line and the picture has changed significantly. What rose to fame as a form of art is now a global phenomenon and is proving twice advantageous for South Korea. This sensation worldwide has been termed as ‘Hallyu wave, which literally translates to ‘Korean Wave’ in Chinese. There has been a dual outcome of this cultural marvel. Firstly, it has had a monumental economic impact. The contribution of overseas Kpop fans doubled the foreign market for Korean music and pop culture from USD 5.7 billion in 2015 to USD 10 billion in 2019 (The Diplomat, 2022). Secondly, Hallyu has benefited from a diplomatic effect on the other global powers. It has been accredited as a move to gain soft power (Beloan et al., 2022).
The Korean wave or ‘Hallyu’ was coined by the Chinese in 1997. Hallyu wave is not only restricted to music but is a widespread phenomenon, from increased tourism to enthusiasm for learning the Korean language, fashion, and so on. This omnipresent characteristic has led to a noticeable economic boost in the Korean economy's many industries, ranging from tourism to consumer goods export and a lot more.
The Hallyu Effect has yielded marvelous economic results over the years. It contributed to 0.2 per cent of their gross domestic product (GDP) in 2004. Recently in 2019, it was estimated to have contributed a boost of USD 12.3 billion on the economic front (Why KPOP Is Profitable, but White-Washed, n.d.).Talking about Kpop primarily, In 2019, the sales revenue of the music industry in South Korea totaled around 6.81 trillion South Korean won (Statista, 2022). One major player who could be given the highest credit for helping reach Kpop its current fame is the seven-member boy group ‘BTS’. They are not just a boy band anymore but a global and very affluent factor in the process of hyping up the nation and the music industry on a worldwide level. It is the story of how one song changed the game for not just the artist or the industry but for an entire nation. The song was by BTS and it had a multidimensional and soaring impact.
BTS released their song ‘ Dynamite’ back in 2020 when the world was facing the wrath of Covid -19. It became an instant hit and debuted at No.1 on the Hot 100 chart, the first South Korean musical act to reach such fame (McIntyre, 2021). According to a report co-published by the Ministry of Culture, Sports and Tourism and its affiliate Korea Culture and Tourism Institute, the song was estimated to generate ₩1.7 trillion ( USD 932 million) with ₩1.23 trillion ( USD 882 million) in the production sector and ₩480 billion ( USD 344 million) in added value. 7,928 more jobs (Shadow, 2022).
The exports of consumer goods stemming from ‘Dynamite’ were forecasted to be increased by 371.7 billion won ( USD 266 million) , which included 276.3 billion won (USD 198 million) from the overseas sale of cosmetics and 74.1 billion won (USD 53 million) from food (“BTS’ Billboard Win Expected to Create Economic Effect Worth 1.7 Tln Won: Report,” 2020). Thus, giving rise to the ‘ Dynamite’ Effect. What took place thereafter is even more surprising, and the band surely proved that they are ‘diamonds, and they glow up’(undefined [HYBE LABELS], 2020). We call this a dynamite effect for two broad reasons: the first one being the headstart that BTS and its work have given to the Kpop Industry. Kpop might not only be BTS, but BTS is definitely the biggest and the most important player in writing the success story of KPOP. The popularity of BTS is so extraordinary that in 2017, 1 in every 13 foreign tourists visited the country (undefined [CNBC], 2019).
Second, just like a dynamite blast, the song created a very sudden and very rapid upshot. It was an overnight hit taking the world by storm while simultaneously paving the path for multiple opportunities and benefits for South Korea.
The Hyundai Research Institute predicts that BTS will create a total of 56 trillion won in economic effects over ten years from 2014 to 2023 (이름만 걸쳐도 대박. . . 56兆 “방탄 이코노미,” n.d.). According to the Korea Culture and Tourism Institute, the band's impact is such that a single BTS concert could generate USD 500 million or more (Young, 2022).
As discussed earlier, the impact of Kpop as a phenomenon transcends the boundary of only an economic effect. It could definitely be considered a mega movement which has left its footprints in the social as well as cultural domains. A very prominent example of how Kpop influenced the life of an ordinary person could be seen in the sudden liking that people have developed for the Korean noodles called ‘ Ramen’. The idea of having Ramen while watching their favourite Korean drama is the definition of gold comfort for many Korea Boo (refers to a person who is obsessed with Korean Culture) (“Ramen,” n.d.). Korea has been known for its intensive and high beauty standards and extensive skincare regime. The popularity of Korean skincare could be witnessed by the raging numbers of Korean brands entering the international market and youth being engaged with it. In the first half of 2015, South Korea exported beauty products with a total value of USD 52 million (Schaefer, 2015). We can safely say that Korean beauty products could soon become the next big export good.
South Korea was earlier known for its extraordinary tech industry and infamous animosity with its neighbouring country but is now in the news for its music, dance, dramas, and, oh well, their fried chickens. This statement is backed by the fact that South Korea’s cultural industry’s output accounted for 3.7 per cent of its GDP in 2000, but the figure rose to 5 per cent last year. That is, the portion of the cultural industry in the economy is becoming larger (Economic Effect of BTS’ Conquest of Billboard Hot 100 Chart, n.d.). Large conglomerates like Samsung and Hyundai have also realised the potential that the Kpop Industry holds. Both BTS and Blackpink have collaborated with Samsung. BTS also partnered with global brands like PUMA and Fila and is the global brand ambassador for Louis Vuitton. McDonald’s launched a BTS meal back in June 2021.
Professor Kim Seiwan from Ewha Women's University says that based on official estimation, K-Pop generates about USD 10 billion for the country each year (Why KPOP Is Profitable, but White-Washed, n.d.). The quantitative shreds of evidence reflect the mammoth effect of Kpop on the Korean economy. Experts do not see the sun of Kpop setting anytime soon. It is still on the rise and remains to play a significant role in pushing the Korean economy. The stage for their success is all set.
Pradipta Jha
Daulat Ram College
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