Book Review Article
Social Implications of Economic Reforms in India
Rajesh Komath
Assistant Professor in Social Sciences, School of Social Sciences, MahatmaGandhiUniversity, Kottayam, Kerala. E-mail:
Economic Reforms and Social Exclusion: Impact of Liberalization on Marginalized Groups in India
K.S Chalam
Sage Publications,New Delhi, India
2011, Rs 550/-, pp 248
The book deals with a very important theme which directly affects all sections of people of India, as it is a matter of policy at macro level which has its immediate economic effects. It has multiple social implications when it comes to the lives of historically marginalized social groups. Thus, it brings forth the aspects of social deficit in economic reforms. As it deals with economic aspect on the one hand and locates its social implications on the other, it employs a sociological interpretation of the economic policy. The book is an attempt to engage with the disciplinary contours of economic sociology. It has also taken a subaltern perspective to interpret the effects of economic reforms as it unearths the agonies of the real victims of this policy.It is a direct critique of the neo-classical framework of economic analysis and its rationale. It is pointed out that this policy has not given importance to the social history of India. Its followers laid stress on the question of balance of payment crisis in 1980s. It also claims that the reforms are not meant to ordinary people and strengthen their purchasing power, but it was a shrewd move from the social elites of India to marginalize the emerging social proletariat who belong to the marginalized sections of Indian society and economy.
With a conceptual engagement of state, market and caste, and interconnecting its relationship, the introduction of the book delineates the question of how far the policy of reform affects the weaker sections and thus undermines the Indian characteristics of state. The notion that the market will take care of everything is seriously challenged here indicating that the market is also exclusionary and its controllers belong to dominant castes of Indian society. Scholars from India had also imbibed the western notion of the state and seen Indian states with the premises set by Westerners. Thus, discourses on policy reforms were dominated by the notion of free-market economy and its efficiency principle. Indian scholars were also not able to advance a theory which suits to Indian characteristics of state and market. The working of these two—state and market—are not free from the dynamics of caste in India. The introduction reminds us that state in India has its politico-religious and ritual content. To have a balanced social development in India, one needs to adopt policies and programmes considering the context within which state, market and caste work.
The book discusses its methodological concerns centred on the concept of social exclusion. The need for an interdisciplinary social science methodology to address the question of social exclusion is propounded. Social exclusion/inclusion is a part of processes of practice which may be an outcome of a policy. Thus, one dimensional understanding of these processes will be narrow and reduced to one single aspect. It is approached here as a trans-disciplinary object of analysis, looked at from multiple angles transcending the simplistic uni-dimensional level of economy, growth and development. It tried to carefully escape even the inadvertent privileging of any one part/aspect of it, but start with a proposition that the question in discussion has multiple visibilities in terms of its ontology, region, caste/class structures, institutionalization, poverty and deprivation in diversified contexts. Such an effort to focus on the multi-dimensional settings of the policy and its exclusionary processes is expected to facilitate a hitherto better understanding of its entirety. Thus, it unravels the questions such as are there Indian methods of enquiry, the question of dichotomy in method, the binary opposition of exclusion and alienation, theoretical vs. empirical realities, and pose a serious question of ‘can market serve as instrument of inclusion?It has been conclusively stated that the market as an all inclusive institution opens opportunities but at the same time is responsible in creating inequalities that have strengthened social exclusiveness of those who are weak and marginalized. Though the book tries to pin point various aspects of a holistic methodology to study an issue like economic reforms and social exclusion, it has over all adopted an empiricist method to interpret social and economic data.
While forwarding the relationship between economic reforms and the socially excluded groups in India, it looks at the structure of reform and its social consequences. Reform supporters argue that the macroeconomic indicators are showing good signs of economic growth after the introduction of economic reforms. But, they undermine the fact that all marginal gains in percentages are attributed to the sacrifices made in terms of reduction in domestic capital formation and external debt has remained around the level at which it was at the pre-reform period—roughly 20 per cent of GDP. When the marginalized sections make a move towards a structural change among themselves in terms of attaining education and be part of the Indian bureaucracy, reforms act as a barrier for their social and economic opportunity in terms of restriction of income, subsidies, and reservation for jobs that is, largely--the withdrawal of the state--in the name of privatization. Disinvestments of public sector indirectly take away the public money and reservation benefits to private owners which havesavarna caste/class character. It raises a serious question, if policies and programmes are not meant for the improvement of human development, what is the point in talking about reforms!
The main focus of the book is on vulnerable groups and points out the fact that the agricultural sector is the first victim of the reform policy. Withdrawing of subsidies and rise in prices of inputs explains the case of Andhra Pradesh’s farmer suicides. It hit groups such as SCs, STs, and backward service caste as they are the social groups employed as agricultural labourers. On the other hand, the promotion of MNCs paved way to emerge new arenas of job opportunity in floriculture, multimedia, information technology etc. Beneficiaries of these enterprises are from educated urban middle classes and entrepreneurs of these enterprises are in turn, are in the hands of organized upper caste elite. These patterns which are explained by the author give us fresh insights on the political economy of the economic reforms.
Framing caste as a property is an interesting way of looking at the economic system and exchanges of property. Castes become a property when the business activity had its structural linkage with caste. This makes possible to certain castes because of the historically evolved social capital and social networks span across bureaucracy, and the constitution of the state. Brahmins were prominent in economic affairs even during Muslim rule in India and consequently British had also made use of these sections for their administrative matters which subsequently benefited them in the era of Nehruvian socialism. About 90 per cent of this caste managed the affairs of the economy. The fact is further substantiated in the report of Mandal Commission which showed data on the numerical strength of the Brahmins, Bania and other upper castes in Indian bureaucracy. We see a continuity of Brahmin hegemony in all periods of regime whether pre-colonial or colonial or post-independent India. The link of caste and economic and social hierarchy and its reflection in the economic activities could be further elaborated by delving into the literature on economic anthropology of caste, property and exchanges.
Specifically looking at the developmental question of SCs, (16.7 per cent of the total population: 2001 census), it is observed that their socio-economic status is lowest even after so many plans and programmes. Reservation of jobs not adequately represented SCs in service sector and the land question among them is very pertinent. They are also victims of displacement, downgrading and mostly live in the margins of society. An assessment of Special Component Plan (SCP) suggests that its performance has not produced notable outcomes even before the reforms and has deteriorated after the implementation of economic reforms. The fund outlay allocated to these schemes were reduced and failed to understand the regional and caste specific developmental questions of SCs. Higher education for Dalits is increasingly confined to government schools where facilities and teacher attention and attendance are being questioned. While withdrawing from public utility provisions, government presents schemes as safety net. The total amount of money released in 1992-93 was Rs 2.48 billion which was reduced to Rs 2.02 billion in 1996-97. It is further stated that during 1992—93, 90 per cent of fund was utilized. But in 1995—96, it came down to 75 per cent. The decreasing figures explain how far the government takes care of the welfare of weaker sections. It also explains the tendency of government to withdraw from special schemes for SCs. However, some of the states like UP were forwarding its effective implementation of the programmes of SC Development Corporation (SCDC). But, it was discouraged by allotting fund of Rs 0.05 billion in 1990—91, which was reduced to Rs 0.03 billion in 1994—95 and finally no release of money in 1995—96 and 2005—06!
In terms of protection of their civil rights and atrocities against the SCs, the story repeats the same tone. The employment rate, the work participation rates among SCs also shows the problem of unemployment among SCs. It is also pointed out by activists and NGOs who work among Dalits, that the officers and employees belonging to the reservation groups are victimized and upper caste lobbies in the strategic positions hold government sectors are manipulating the personal records of the reservation groups to prevent their promotional opportunities. The cases of Dalit women are much worse in relation to their male counter parts as well as other/upper caste women. They face multiple levels of marginalization as women, lower class and a Dalit. The book highlights the need for mobilization and organization of Dalits as a group to fight politically to articulate their rights enshrined in the Constitution of India.
The status of Adivasi (8.2 per cent of total population) development also paints the similar picture as that of SCs in India. The major problems identified here are the alienation of land, unemployment among youths who acquired higher education and the existence of poverty. Displacement of adivasis due to mining and construction of big projects are yet other serious problems. The expansion of market economy in the tribal areas badly affected them in terms of exploitation of their labour power. It also triggered class distinctions among them, for instance cotton cultivation, a cash crop in Andhra Pradesh widened the disparity among the Gonds. There exists migration from the plains which causes conflicts when they interact with adivasis. Observation has been made clear by putting data on the allocations for their development in plan and non-plan budgets, which suggests it has declined considerably after economic reforms.
The rural artisans and Muslimsalso encounter the threat of the declining role of the government. Though the conceptual rationale of clubbing these two identities—one is class and other is religious—it argues that Indian Muslims were primarily converts from the artisans’ castes. The reforms negatively affect these groups in the context of invasion of advanced technology which replaces their traditional skills and devalue their labour. Government also failed in formulating safety nets to these sections. Moreover, they could not interact with science and technology with the same degree of intimacy and intensity.A case study of handloom weavers is critical under the new regime of policy reforms.It portrays a distinctive labouring class which are suffering to maintain their job and thereof selling their product at a non-remunerative price to avoid cumulative interest. They do their job just to keep themselves engaged in weaving. The question of how voluntary retirement scheme (VRS) or exit policy affect negatively the welfare of the working classes has also analyzed through a survey conducted in an industrial city. It has finally manifested in job loss and income deprivation, which has disproportionately affected more on social groups—SCs, STs and OBCs—and its intensity has seen more on OBCs. An important observation is made on the replacement of labour under the technological advancement in industrial sectors.Though government assured the safety net programmes to mitigate its affects in principle, the workers were thrown out of employment by stating that their skill devalued in meeting with technology. The caste implications of these getting out of job from the public sector makes the de-caste workers conscious of their caste.
Inequality which has structurally in built in Indian society is reflected in human capital development, whichdetermines the educational level of the people. It highlights the theoretical premises of economic value of education. The national human development report by Planning Commission of India shows that the caste and religious break-up, establishes the fact that STs are at the bottom of the ladder followed by the SCs while OBCs and Muslim minorities come in between. An interesting fact is observed in the book is that India had invested heavily on education, during the period up to 1980s and education was subsidized by the state. This was the period in which the elite of the country were educated at the cost of the state. But, later, the provision to run educational institutions in private sector has strengthened the upper castes’ social networks to trigger the sector for their interests.While India is stepping down from its role in promoting education, developed countries like UK and US have started providing additional grants to the disadvantaged groups by bringing a legislation like ‘No child left behind’ and increasing federal grants by 30 per cent to historically less endowed colleges and universities. The book reminds us the historical backdrop of equality principle followed in Indiawith reference to Buddhists and Muslim education of madarasas for common classes and castes and hints that it is not the historical reason that suggests root cause of educational backwardness of lower castes in India. It explains the dynamism of power structure and reforms for the elites in India.
Health is another key index which explains the human development. It related to the question of nutrition, disease, mortality and life expectancy of a nation. Malnutrition is a serious issue as it is estimated that 40 per cent of the world’s severely malnourished children under five live in India. Public spending in health also reveals the same pattern as we have seen in the case of education.
All that is met with the failure of the state could be solved with the civil society movements under the regimes of economic reforms has been accepted with a consensus, providing the feel that it can deliver services to the poor and marginalized much better than the state. A critique to this consensus is been put forwarded in the book through the narration of Temperance movement as a case in Andhra Pradesh. It bring forth underling upper caste interest in many of the civil society movements in India. It is influenced by religious discourses as well as caste discourses especially in the working of self-help groups. People had bad experiences from the Self Help Groups (SHGs) and it was reported in 2010 that more than 40 poor Dalit and OBCs, mostly women, had even committed suicide in Andhra Pradesh. Some NGOs begin slowly and convert it as a big business entity with listings in the Bombay Stock Exchange. By going through these facts, the criticism that these types of NGOs have about the dominant agenda of global capitalism or inclusive capitalism to avoid spontaneous resistance from people seems to be true.
Anti-Arrack movement began in a backward region of a predominantly SC area of the Nellore, suggests that the theory of civil society used the adult education programmes to motivate women to oppose the alcoholism of their husbands. The Dalit woman attacked their husbands and forcefully made them to give up their drinking habits. The radical elements had entered the movements and questions of gender equity and other mainstream elite articulations were raised. The persistent question of economic exploitation, deprivation, caste discrimination all have undermined in this discourse. The movement was totally silent on questions of low wages, increases in prices for essential commodities, displacement of labour, unemployment, social ostracism that plagued the majority of the participants.
It is interesting that Andhra Pradesh government, after nearly two years of ban on alcoholic drinks and arrack, has reintroduced licenses for sale of Indian made foreign liquor through retail outlets. The number of shops has increased year by year. Liquor sales through the auction of government licenses are expected to be Rs100 billion in 2008. That is the owners of these outlets are now the upper castes instead of the OBC gowdas who used to control the arrack and Indian Made Foreign Liquor trade before the anti-arrack movement. It neither stopped the evil drinking rather it has took its new veneration in the form of opening big bars and retail shops. This proves that the limitations of these movements in traditional societies like India.