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BUSINESS, GOVERNMENT & STUDIES HANDOUT SUMMARIESContentsPangs of Change1Banias and Beyond: The Dynamics of Caste and Big Business in Modern India2Democracy and Secularism in India4Affirmation without Reservation5Redesigning Affirmative Action7From Midnight to the Millennium and Beyond: Democracy and Identity in Todays India9Ideas of India, Rights12Political Parties in India15Indias Informal Economy: Facing the Twenty-First Century18Indias New Entrepreneurial Classes: The High Growth Economy and Why it is Sustainable20Everybody Loves a Good Drought22Political Economy of Agrarian distress23Knowledge@Wharton interview with M. Yunus, Founder of the Grameen Bank.24Serving the Worlds Poor, Profitably24Traditional Female Moral Exemplars in India26

Pangs of ChangeMN SrinivasSummary by Rithin BThe author speaks about India as a secular miracle of the world but suffering from poor quality of democracy.Indian democracy is one of the secular miracles of the modern world and is a model for developing countries. Democracy is becoming deeply rooted through Panchayat Raj and Nagarpalika Acts. Though India is emerging as a major power the rate of growth is slow. The leaders do not seem to care about the countrys fortunes but in spite of its leaders India is still showing progress.Transfer of Power: Decentralization of power to districts, tehsils, villages, cities and towns has made government officials accountable to the people. Though decentralization has brought about speed, efficiency and openness, it has also given rise to conflicts in Panchayat raj system. Rural dominant classes occupy privileged positions and use their power to receive services from other backward classes in the society. Failure to perform such services leads to bloody clashes which lead to translating the constitutional commitment to equality into a reality. The police, law courts, media should support the Dalit demand for equality and make the dominant castes to accept democratic values and practices.Quality of Indian Democracy: The quality of our Democracy is poor. This is reflected by the low literacy rate (48%) at national level. This is even lower in the BIMARU states (Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh) which also presents very low female literacy rates. Political parties are trying to make education a fundamental right believing that public interest litigation will atleast goad the states to implement it. One of the achievements of our democracy is banning of untouchability (Article 17) by constitution of India (1950) by making its practice a cognizable offence under the Civil rights Act 1975. This is viewed as incidental to constitutional assertion of equality of all citizens which prohibits discrimination of citizens on the grounds of religion, caste, race, sex etc.Reservation of seats in legislatures, education and employment for scheduled castes and tribes is a continuation from the colonial rule. This is intended to protect and promote the interests of groups who thought they would suffer under conditions of open competition. Reservation in legislatures is to enable them to work for the betterment of their communities and constituencies. Empowerment of backward classes occurred prior to independence in South India and post independence in North India. Job reservations for OBCs developed into a national issue in 1990. Secondary Backward Classes Commission had made several recommendations for improvement of backward classes. In 1989, Janata Dal included this in its election manifesto. Janata Dals leader V.P Singh agreed to implement the mandal commissions recommendation of reserving 27% of government jobs for backward classes. This created considerable unrest in the country. Nehrus aim of establishing casteless and classless society gave away under V.P Singhs leadership to socialism with caste farce ideology. Many People hailed V.P Singhs decision as a secular revolution while others considered it extremely divisive. In 1992, Supreme court provided approval for 27% reservation of government jobs to OBCs. It decreed that quantum of reservation should not exceed 50% and also to exclude the creamy layers among the backward classes from the benefits.Reservation has become popular in the recent years as a means to access education, employment and power. Reservations are being demanded by different communities on the whole (Muslims, Dalit Christians) and/or for the backward classes among them. This has lead to conflicts as scheduled castes believe that providing reservations to these communities would cut into their share of quota. Woman reservation seeking 33.3% reservation in Parliament and state legislatures has become an emotive issue which has been further complicated by demand for sub reservation for women from OBCs.Reservation is now unfortunately treated as a panacea for poverty, lack of education, employment, political power. Reservation is helpful only up to a certain point and it cant be used as a tool for restructuring the society. The benefits are mainly used by the creamy layers rather than the deserving. This causes envy among the very poor groups of such classes who become bitter and antagonistic to the scheduled castes. Such envy is widespread among the dominant classes who are unable to adjust themselves to the easy access provided to the backward classes for education, employment etc. This results in clashes between the dominant and the scheduled castes which will further increase as education spreads. This revolution will not be swift and bloody but rather long and bleeding.Reservation seems as a total solution to backwardness in India. Those in power think that once reservation status is provided to a group, the government responsibility towards such group ceases. No attention is given to monitor the progress of such groups. No measures are taken to ensure that the backward classes are benefited from these reservations. Finally reservation fails to address the most important problem of the country i.e, masspoverty andthe many ills associated with it. Resolving mass poverty issues involve addressing failure to make primary education universal, lack of primary healthcare facilities, drinking water and sanitation problems, neglect of girl children and empowerment of women. Eradication of mass poverty would help in releasing and utilizing the creative energies of people in an efficient manner. Another striking but not sufficiently addressed issue is the great divide that exists between the leaders and the people of the country. Leaders are involved in using power to their own good rather than that of their people. As Gandhi once said My people are ahead of me, I must run and catch up with them for I am their leader. But todays leaders are not even aware that the people are far ahead of them.Banias and Beyond: The Dynamics of Caste and Big Business in Modern IndiaHarish Damodaran Summary by A V Naga ChaitanyaThe article examines diversity in economic and business spheres. Quotes and (or) ViewsSupporting Views/Points

We are going to enter a life of contradictions. In politics we will have equality and in social and economic life we will have inequality Dr. B. R. Ambedkar at the penultimate sitting of the Constituent AssemblyThe Author is of the view that Dr. Ambedkars prognosis stands vindicated even today.1. Politics: Increasing involvement of lower castes in Indian politics2. Business: Situation is better off than in 1947 but still long way to go

South India is much better off than north India as far as involvement of non-mercantile classes in business is concerned. The West does better than the northSouthern enterprises run by non-trading classes: Eenadu(Kamma), GMR (Komati), Asianet(Nair), Many sugar mills in TN(Gounders), The Hindu (Brahmins)North: Business dominated by Bania castes. Jats the primary growers of sugar and Gujjars the primary owners of milch cattle have little or no presence in Sugar mills and Dairies.West:Peasant castes like Marathas and patidars have made successful entry in to industry

Reasons for regional disparity in the involvement of non-mercantile classes in businessEducation:Exposure to English and technical disciplines in south->formation of middle class->better employment and wealth->further stress on education. The north still has a long way to go.Affirmative Action: Non-brahmin movements in South ->redefined social hierarchies->forced upper castes to look for alternative employment->socially heterogeneous middle classStranglehold over business by traditional communities: Chettiars and Komatis of the south were nowhere as overbearing as the ubiquituous northern bania

There are three general trajectories of industrial transition by communities1. Bazaar-to-Factory route: Banias and Vaishyas2. Office-to-Factory route: Brahmins, Khatris, Kayasthas and other scribal castes3. Field-to-Factory route: Involved Shudras: one of the castest in the chaturvarna system , Kammas, Reddys, Jats, Patidars, Marathas, Nadars etc.

The Dalits however, have little or no presence in businessThe authors did not come across a single dalit industrialist in their studies even in the south. The rise of BSP is expected to create a favourable environment for Dalits to enter business (mooting tax breaks). Buts its still early days.

Caste identities are ephemeral in the business space. Capitalism overrides ideals of collective enterpriseThe Nadar Mahajan Sangam financed the Tamilnad Mercantile Bank to finance Nadar entrepreneurs. Over a course of 70 years(1921-1990) the bank changed hands to finally end up in the hands of a California-settled Mudaliar. The Sangam could do nothing to prevent this.

Community feelings are strong amongst the financial weak. But community feelings are invoked by the elite, it is usually done with an opportunistic intent.

Even regional and other ethnic identities fade in the business space. An emergent bourgeoisie may play up subnational pride and provincial politics (Telugu Desam, DMK, Akali Dal etc.). But as capital accumulates the lines between regional and national bourgeoisie are blurred. Previously provincial demagogues develop greater stakes at the centre.Dismantling of licence raj occurred almost simultaneously with coalition politics becoming the order of the day. Regional parties are propping up the national government.

SummarySummarySupporting quotes and (or) examples

Diversity in the political sphere is much greater than in the business sphere.

The involvement of non-mercantile classes in business has been higher in South and West than in North. Three reasons:1. Education2. Affirmative Action3. Strangle hold of mercantile castes in the North

Castes have taken three routes for transition to business1. Market-to-Factory: Mercantile castes2. Office-to-Factory: Scribal castes3. Field-to-Factory: Sudras

Dalits still have no presence in industry. Even in the South.

Caste,regional and ethnic identities fade in the business sphere as capital accumulates

As capital accumulates the identity of national bourgeoisie becomes stronger. Regional parties develop greater stakes at the centre. Coalition politics becomes the order of the day.

Democracy and Secularism in IndiaAmartya SenSummary by Anjan KumarIt is a section taken by Mr. Amartya Sen from a chapter named What is wrong with India? from one of the talks delivered in Cornell University. He has tried to bring out the loopholes which still persist in Indian democracy and secularist form of system, compared with authoritarian countries, scope of development and merits of following the system.He asserts that Indians should rightly learn from their errors of the past and must not forget our social commitments based on which we galvanized as a nation, pre independence. The same was reflected in our aspirations to set the country free.We pledged to mould India into a secular and democratic country. It was a challenging task more so because none of the poor country were both and India was experiencing bloody communal riots at that point of time. However, as we grew the vision seem to be plausible. But in the process, the underlying principles suffered hard knocks. Embracing this system of government has many a times led to frustration as it didnt deliver as was expected. On the other hand, Authoritarian countries like South Korea, Singapore and China seem to have achieved much more in economic growth and enrichment than India has. India though has tried to become a secular country but due to multi-ethnic and multi-religious conception, it has always been a pro-Hindu country. But the proto-Hindutva which is basically the group surrounding the hard core of Hindutva are less extremist. There are other challenging questions like endemic hunger, ill health, illiteracy, gender in equality, inequality of class, survival of social barriers of caste, unequal economic opportunities etc which India should worry about.Advantage of Democracy:Indian democracy has been affected by violation of political and civil rights and individual liberties. Economic growth is important in removing poverty. In assessing the democracy we must also taken into account its impact on the lives and capabilities of citizens. The role of eradicating famine has received attention. The financial crisis in countries like South Korea, Thailand Indonesia took its toll on these nations and hence, during famines the people didnt have voice to raise the issue. Democracy gives an opportunity to opposition to change the policies even when the problem is chronic. China and India: (1) Greater Chinese success in handling endemic deprivation(2) Larger Chinese success in making use of the opportunities from global trade(3) Worse Chinese records in handling the famines(4) Greater life expectancy of Chinese people than Indians(5) Radical economic reforms in 1979 gave an advantage if nearly two decades to china However, India of late has surpassed the life expectancy rate as compared to china. In India, the rate grew three times after independence while in china it came to a stagnation point. Kerala whose life expectancy is 75 is greater than chinas 70 which was earlier dominated by China. It is possible to argue that Kerala, with its left leaning politics and competitive democracy combined has the same kind of political commitment that favored china as a whole over India. If something lies wrong in Indian democracy then it is in timidity of its practice. It will depend upon certain factors such as preservation of democracy, much greater political focus on social progress, incentives and openness and equity among different economic groups. Assessment of secularism:The incidences of Babri Masjid case and the attack on minorities in Gujrat (Riots), has made Proto- Hindutva group to criticize severely the secular commitments of India at the time of independence. There are two facts which cannot be denied:(1) The statistical fact that Hindus form the overwhelming majority of Indians.(2) The historical fact that Hindu tradition is more than 3000 years old in Inidan history and has its imprints on Indian culture.Hence, Hinduism cannot be treated as a mere set of beliefs of one community among others in a multi-religious and secular India. And yet India has more Muslims than any other Muslim nations. Indian constitution recognizes that the rights of minorities are not violated and the political and legal fairness of demand of rights exists for every citizen of India. There is nothing called majority in India as it can be categorized under different segments like set of non rich people, set of rural residents, people who do not work in the organized sector etc. Hence, the statistical facts given for Hindutva can be discussed on a broader perspective than in figures. When Bangladesh wanted a separate nation it was not because their religion was different from west Pakistan but based upon their language, literature and political priorities. The weakness in Hindu majoritarianism lies because there are other parameters which is to be considered like class, region, literature, political convictions, language, culture etc. Hence, the statistical argument is misconstrued and hollowed. The other argument of Hindutva because of its strong presence of historical background is also a misconception. The Buddhism, Jainism and Christian communities which lasted over a millennium in Indian civilization has deeply impacted its culture and society at large. Evn before Islam arrived in India, it was known as a Budhdhist country and hence, the arguments are futile. Gandhiji and Rabindrnath Tagore both wanted India to be distinct in its identity but not on the basis of privilege of one community over other but on political reasoning.Affirmation without ReservationPratap Bhanu MehtaSummary by Ravi M VQuotes and (or) ViewsSupporting Views/Points

Author feels that there has to be a middle ground when it comes to reservations. And reservations are not against a country development.Malaysia has extensive programme for private sector reservation but it still has prospered economically.

SummarySupporting quotes and (or) examples

Those Who seek reservations are a bit ingenuous when they tell that such reservation in the private sector will solve all problems for the dalits and the poor.

Reservations alone will not alleviate the conditions of the marginalised communities of India

Proponents of reservation are on much stronger footing when they base arguments on the premise that Indian labour market require anti discrimination measuresMalaysia, US, Canada, South Africa have anti discrimination legislatures

Similarly reasons opposition to reservations are untenable

Most dalits feel that they have too much to lose by the liberalization. Some commitment will have to be made to demonstrate that dalits will not be left out of the wealth creating process of market.

Modern India has record of policies that are undertaken in the name of deprived sections but hurt them the most.

By resisting reservations corporate India is missing out on an opportunity to leverage some real change. Reservations could be part of dialogue on restructuring of the labour market that yields more optimal trade offs.

There is widespread impression that for all the talk of merit, recruitment in the private sector is not fair, open and transparent.

It is dishonest for industry to talk about merit when most of its policies hinder the discovery of talent.Openings are not listed in the employment exchanges.

Indian industry would do itself some good, if its own norms of recruitment became more professional and open.

Who gets to decide what merit is? Standard signals like educational qualifications are not adequate signalling devices for merit and the corporate sector relies on more intangible measured qualities that cannot be ranked.

What employers fear is that conceptions of merit will be imposed upon them from outside to determine whether or not they are being discriminatory.

The debate on who should be the beneficiary of affirmative action is complicated. There is a national consensus that scheduled castes and tribes should be the prime beneficiaries of affirmative action. There is comparatively less consensus on reservations for the OBC population.

When we talk of the private sector it is clear that something approaching 50% reservations makes a mockery of the private sector's status as private.Unfortunately reservations have an inherent nature of escalation and expansion.A case could be made for limited reservations in the 22.5 percent range.

Anti reservation lobby says that the concept of reservation should be only related to poverty but in this case the argument is flawed as people can be poor for any number of reasons as a stagnant economy and their own individual choice. Reservation on caste basis takes this point into account that the dalits are oppressed. Their probabilities of success are simply low because of who they are.

There is crucial conceptual distinction between a non discrimination principle and affirmative action. Non discrimination is more like a passive principle. It suggests that no one should be discriminating simply because of who they are. Whereas a affirmative action demand a measure of fairness that goes beyond non discrimination.Conceptually anti discrimination and reservations are different but in practice they metamorphose into one.

Anti discrimination legislation will have tendency to push towards de facto reservations i.e. by forcing companies to give equal opportunities to all sections of society.

There are numerous other instruments for affirmative action other than reservations. Another incentive should be the tax breaks for companies who implement this reservation for the dalits voluntarily. Licences for liquor shops and broadcasting licences will help the dalits to be benefitted on grass root level.

It would be a tragedy if modern India became a project not for transcending caste, but perpetuating it. Unless used in a very limited scale, reservations threaten to become the latter.

Redesigning Affirmative ActionYogendra Yadav and Satish DeshpandeSummary by AnuprakashThe article talks about the quota system that has been in implementation in India for education sector. It dissects the existing system and exposes its advantages and disadvantages. Further, the authors propose a new model where the quota system, though based on caste also has other factors of considerations.The Article discusses the following: Specificity of OBCs and challenges they pose to policy design Decision of Government of India to implement OBC reservations in elite professional education Available micro-statistical evidence on which an alternative design can be based Basic features of he model that addreses the group and individual disadvantages Specificity and potential advantages of the model specifiedPoint-wise summarySummarySupporting quotes and (or) examples

Indias affirmative action policy is among the largest, longest standing, most elaborate and successful initiatives of its kind in the world.

Indias weakness - Lack of sustained efforts to affirmative action policiesSince adoption of constitution in 1950, there have been no substantial changes in the basic affirmative action prescription or reserving proportional quotas in selected fields.

Virtues of targeted quotas:1. Encourage Political solidarity and loyalty2. Ease of administration and monitoring3. Resistant to appropriation by un-entitled group

Not necessarily the best optionExamples in recent time: Extension of quotas to groups other than SC/ST More women in legislature Altering social profile of job holders in private sector

Limitations of quota system:1. Alters status quo of inter group power equations2. Political costs are higher and social benefits are meagre or badly targeted

Affirmative Actions and OBCs OBC reservation has faced questions on precise relationships between caste and backwardnessAlternative approach Move towards a nuances policy design that captures the degree of disadvantage and kind of disadvantage Transition to a more integrated policy framework where caste is only one among the many parameters of evaluation For SCs reservation was based on the idea of untouchability For STs reservation was based on the separation from the mainstream Hindu society and undisputed poverty Mandal conflagaration of 1990 when quota system was questioned Anti reservation movement of May 2006

Mandal II : The road not taken Available evidence shows that OBCs as a whole are disadvantaged compared to the upper caste as a whole. The caste bloc approach adopted by the government will help us reduce the inequality Disadvantage: Has high long-term costs; one dimensional caste quota result in inefficient targeting. Relatively better off families fro the upper OBCs will be the benefactors. Non OBC families will rightly feel that they are more disadvantaged than the OBC category Recommendations: Making creamy layer within the OBCs as the last claimant of the benefits of reservations Sub dividing the quota into upper and lower OBCs Long Term Measures should also be taken up. Independent organisations like National Sample Survey Organisation can be requested to conduct a nation wide survey to create a social profile of higher educational institutions and job holders. This will help fine tune the policy making in the future. Setting up a permanent statutory body to regularly monitor the diversity profile of the public institutions and advise the government on improving them. Even a crude caste quota is better than none Veerappa Moily Oversight Committee on implementation of reservation in higher education The system has to build in guards to prevent a handful of OBC communities to get all the benefits(who are much better placed than the others) Committee can suggest some special provision for OBC women to access quota.

Towards Better Policy Design

The effort is aimed at explicitly linking empirical information related to disadvantages The system should bring out the basic reason why the affirmative action is being undertaken The initiative should provide rational explanation why specific castes and communities are entitled to compensatory discrimination and undermines the attitude that treats such entitlements as birthrights More nuanced and comprehensive framework will lead to more precise targeting Will produce faster and better results. Disadvantage: Due to this the policy design can become much complicated and the institutional mechanisms involved can become fragile.

Better affirmative actions can be designed to cultivate the following features: An evidence based approach Sensitivity to multiple dimensions of disadvantage including but not limited to caste Sensitivity to the inter action effects of the different dimensions o the disadvantage Sensitivity to degrees of relative disadvantage Should introduce a stable method of measuring things like interaction effects and relative intensity of disadvantage

An Alternative Model The new model addresses the four dimensions-Caste/communities, gender, region and sector of residence The scheme should also look at the individual disadvantages apart from the group disadvantagesExact weights to be allocated for academic performance and social disadvantage will be a key issue.

Specificities and Advantages Create a bloc of reserved seats Apply the proposal to all the seats not covered under the existing reservation for SC/ST Disadvantage of the government proposal is that it only recognises the caste as the sole criteria for group disadvantage The new scheme addresses the interaction effects between different axes of disadvantages. The new model consider: individual disadvantages relating to family background and type of schooling. Disadvantage of the proposed model is that it intensifies caste identities. It concentrates on the identities rather than on the valid social reason why these identities are used. The model with its transparent indicators , allows scrutiny and oversight as well as legitimate debate It also addresses the prickly issues like the legitimate claim of the poor or the disadvantaged upper castes. While Government proposes to have all or nothing approach to recognising disadvantage, the proposal given is flexible in dealing with variations in degrees of disadvantage. The model proposed will push the thinking on social justice along constructive and rational lines. It will allow us to demonstrate that affirmative action is not about appeasement of particular castes or communities but about abolishing continuing sources of tangible disadvantages in our unequal and unjust society.

From Midnight to the Millennium and Beyond: Democracy and Identity in Todays IndiaShashi TharoorSummary by Saurabh Verma and Potala Sai Babu

Pluralism: A socialorganization in which diversity of racial or religious or ethnic or cultural groups is tolerated.[This is one keyword that appears over and over again in this interesting written speech, which Im sure all of us must read for the sheer insight it offers into our country, and its strengths that we often tend to overlook. This is why I have extensively quoted him verbatim in this summary.]Shashi Tharoor starts by comparing his role as a UN diplomat with that as an Indian citizen. He says that both emerge from the same pluralistic convictions. Indian adventure is that of human beings of different ethnicities and religions, customs and costumes, cuisines and colours, language and accents, working together under the same roof, sharing the same dreams. That is also what the UN, at its best, seeks to achieve. He says that generalisations are too hard to make for a country such as India, such that whenever you say anything about India, the opposite is also true. Pluralism is also acknowledged in the way that atatimewhenmostdevelopingcountriesoptedforauthoritarianmodelsofgovernmenttopromotenationbuildingandtodirectdevelopment,Indiachosetobeamultipartydemocracy.Pluralismisarealitythatemergesfromtheverynatureofthecountry;itisachoicemadeinevitablebyIndiasgeographyandreaffirmedbyitshistory.He mentions the 4 most important questions facing all countries at the beginning of the 21st century: The bread versus freedom debate: can democracy work in a country of poverty and scarcity, or do its inbuilt inefficiencies impede growth? Centralizationversusfederalismdebate:does tomorrows India need a strong Govt. that transcends fissiparous tendencies, or one that centralized very little? Thepluralismversusfundamentalismdebate:should India find refuge in assertion of its own religious identity? TheCocaColonizationdebate:or globalizationversusselfreliance.He then takes up the debate on Indias identity and democracy. He talks of H.D. Deve Gowda who as the PM of India makes his Independence Day speech in Hindi, reading it from a paper written in Kannada script. He says such an episode is possible only in India, where the PM for that matter, half the population doesnt understand the national language.He says we all are minorities in India, because our native language, origin, religion, caste, gender, all divide each one of us into a very small bracket of people, none of which is a majority. Ethnicity further complicates the matter, bringing in dress, appearance, customs, tastes, language, political objectives etc. He also says that nationalism is rare to find in India, since it cannot be based on geography, ethnicity or religion, all of which are available in diverse forms.Indiannationalismisthenationalismofanidea,theideaofanevereverlandemergingfroman ancientcivilization,unitedbyasharedhistory,sustainedbypluralistdemocracy.So the idea of India is of one land embracing many, a democracy where youdontreally needtoagreeexceptonthegroundrulesofhowyouwilldisagree, i.e. a consensus on how to manage without a consensus.He then moves on to criticise the Hindu Rashtra view of some of our countrymen by reminding us of the concept of unity in diversity. Westerns dictionaries define secularism as the absence of religion, but Indian secularism meant a profusion of religions, none of which was privileged by the state. Secularism meant, in the Indian context, multi-religiousness.He says that Indias secular status was made possible by the fact that a majority are Hindus, which is itself a religion without fundamentals: no organized church, no compulsory beliefs or rites of worship, no sacred book. He says that theHinduideathatreligionisanintenselypersonal matter, thatprayerisbetweenyouandwhateverimageofyourmakeryouchoosetoworship.He laments that the politics of deprivation has eroded the cultures confidence, and Hindu chauvinism has emerged from competitions fro limited resources. ThesuggestionthatonlyaHindu,andonlyacertainkindofHindu,canbeanauthenticIndian,isanaffronttotheverypremiseofIndiannationalism.He further urges us to celebrate diversity, and says that ifAmericaisameltingpot,thentomeIndiaisathali,aselectionofsumptuousdishesindifferentbowls.Eachtastesdifferent,anddoesnotnecessarilymixwiththenext,buttheybelongtogetheronthesameplate,andtheycomplementeachotherinmakingthemealasatisfyingrepast.After all, India is too diverse a nation to be confined to only one view, and democracy is the only way of doing justice to all these diverse sections. One encouraging observation is that in India, the democracy is embraced by the poor who turn up in huge numbers to vote, whereas in countries such as US, its the rich that participate more often in democratic processes. This has given immense power to the lowest of Indias low. He talks of Dalit leaders like Mayawati and K. R. Narayanan.He talks of the extraordinary degree of change in India, which takes place in politics, economics and caste-relations. All three of these add up to a revolution of sorts, ademocraticrevolution,sustainedbyalargerideaofIndia,anIndiawhichsafeguardsthecommonspaceavailabletoeachidentity,anIndiathatremainssafefordiversity.Then he touches upon economics of nationalism, which put political independence and economic self-sufficiency in the same bracket, but actually led to a distribution of poverty, and regulation of stagnation. He advocates that India open the floodgates of globalization, and harp on its own ability to absorb foreign influences and transform them into something that belongs naturally on the soil of India. He expresses optimism that India will, as it has always been, be open to the contention of ideas and interests within it, unafraid of the influence of the outside world.He sums it all up by summarizing his vision for the India of the future:Iftheoverwhelmingmajorityofapeoplesharethepoliticalwillforunity,iftheywearthedustofasharedhistoryontheirforeheadsandthemudofanuncertainfutureontheirfeet,andiftheyrealizetheyarebetteroffinKozhikodeorKanpurdreamingthesamedreamsasthoseinKohlapurorKohima,anationexists,celebratingdiversity,pluralismandfreedom.

There are few questions in this period to Shashi Tharoor which are being transcribed as followsQuestion 1: Is India should move toward a common civil code?Answer by Shashi Tharoor: After the partition of India, Nehru decided to let the minorities feel a sense of self-assurance that would come from having no interference with their civil codes. There has been diversity in the civil code which has been followed by Hindus and Muslims. Hindus followed the common civil code across the country, despite regional variations in practice but Muslims were allowed to retain personal law. I dont think that were going to move rapidly toward a uniform civil code, and thats simply because the politics of this the politics of diversity.

Question 2: To what extent the Muslim awakening particularly coming from across the border, is affecting India and does it have a connection to the rise of Hindu sentiment?Answer: I think, yes, chauvinisms tend to feed on one another and so there is no question in my mind that the assertion of a particular identity be one group. Look at the rest of our country, they say A Muslim says, I am proud to be Muslim, a Christian says, I am proud to be Christian, and a Hindu says, I am proud to be..secular. Hindu can afford to say that, because there is to that degree safety in numbers. It is identity asserted at its pettiest level, and not at the kind of level that makes any meaningful religious sense.Follow up question: Where are young going?Answer: Young are going both ways. There are lots of young people who are, slogan-shouting assertions of pride and there are some who are simply too busy seeking jobs at call centers to worry about one thing or other and there are some who would go out in the street to defend the sorts of ideas.

Question 3 from Jitendra Singh, Professor at Wharton School of Business: What it means to you to be a novelist as I have to say that I enjoyed your novels over the years?Answer: I started writing fiction at age six. It is what I do; I have to do it; if I dont, it will be extremely painful for me. I started reading the books on my parents shelves as I couldnt figure out time to spend as I dont have brothers and sisters. I started writing the stories. I was blessed with a father who actually encouraged this, and got it published. I became a bit of a recidivist. I wrote throughout my school days. I wrote and published short stories in English in pretty much every Indian magazine that existed in my student days, and kept writing. I was the only author in U.N which was permitted to write as long as I dont violate the staff rules. I had to take considerable amount of time span of five years between my books because in fiction we require considerable amount of time. I still write outside the office nothing but at home, I do write a column in the Indian newspaper The Hindu.

Question 4: How does the idea of India has changed?Reply : Ill be very honest, the generation of my parents, by enlarge, had a totally different attitude from my generation, or people slightly older or slightly younger, who are now imparting values to their children. My father never told me about my caste upto the age of twelve where I had to ask to submit the details to my school. I had friends of all religious faiths, I was never encouraged to think of them by their religion. I feel the minority community is the rich people in India. We are always getting sanctimonious politicians making speeches on national integration. It was constantly exhorted, impressed upon us. This is a degradation of public discourse.Question 5: How is the future of India getting shaped?Reply: I believe in the prospect of India doing extremely well; economically, as you know, were already in purchasing power parity terms the fourth-largest economy in the world. There are some tangible improvements to peoples lives, everything from the construction of roads to the job opportunities arising from increasing globalization and liberalization. But we do have to do things right, and that the fact is that we are consistently taking two steps forward and one step back.Question 6: How is the violence which erupted in Gujarat 2002 is different of the Babri mosque demolition in 1992?Reply: Riot, be stopped, both by administrative and police action. What has been planned in Gujarat has been deliberately planned and executed, and condoned by those whose job it was to stop it and elsewhere in India these plans didnt exist. If governments do their jobs properly and uphold the mechanisms of law and order, anything of that nature can be prevented.Question 7: Whats your opinion on current talks between India and Pakistan?Reply: As an U.N official I keep my distance from official matters involving my country. But it appears that it has been conducted in bonhomous atmosphere. There is at least an important change in the atmospherics. Question 8: Question on Indian Diaspora, the stresses they are feeling, higher incidences of depression among Indian-American teenagers than amongst other ethnic groupsReply: The first, and perhaps most obvious, is that a majority of the kids to fulfil the expectations of parents and many Indian kids are excelling in their studies. The second kind is in deep those who dont want to conform or feel the pressure and who in fact feel the discordance between family pressure and the world outside. I m sure that the experiences is different for those Indian-American kids growing up in place where there are large concentrations of people from the subcontinent. Certainly the identity from where we came affects the choice we make. It may be more a difference of what it is that they feel of association with the identity.

Ideas of India, RightsRamachandra GuhaSummary by Alok JainExecutive Summary

The article goes into detailed discussion of emergence of Caste based politics and the conflicts that were rooted in castes in various parts of the nation. In the first half of the article Guha details various events that helped in making caste based politics the prime face of Indian democracy, in the second half he talks about the conflicts and insurgency in various parts of the country in which in one form or another started as organized resistance by certain castes. Even though with economic and social changes post independence, we saw the weakening of the association between caste and occupation, and acceptance of inter dining and inter caste marriages, caste continued to play a striking role in society and politics. Most Indians were defined by the endogamous group into which they were born.The article is not an opinionated one; it is more or less factual and details following events -Following are some major events in evolution of Caste based politics Reservations for ST/SC Emergence of OBC in the Indian politics in the 1960s and 1970s Mandal Commissions V.P. Singh implements Mandal commissions recommendations of 27% reservation to OBCs Emergence of Bahujan Samaj Party Strong leaders such as Kashinram and then emergence of Mayawati Success of BSP had an influence on other parties to do active caste based politicsFollowing are the major conflicts that have happened in various parts of country Naxal movements Conflicts in Kashmir Violence in the North East statesSummary:Emergence of OBC in the Indian politics in the 1960s and 1970s: These acted as a vote bank, lining up solidly behind a politician of their caste. It was these OBCs that formed the social base and provided the leadership of the parties that successfully challenged the dominance of Congress. Examples: DMK in madras, Lok Dal, the Socialist party etc. Economic power had come to OBCs through land reforms and green revolution; political power through ballot box; what lacked was administrative power. Janta Party govt. appointed the Mandal Commission which defined on the basis of state surveys 3743 specific castes which were still backward. These were represented very poorly in the administration and thus Mandal Commission recommended a 27% reservation for them in all posts in central government to give them an immediate feeling of participation in the governance of the country. By the time Mandal commission submitted its report, Janta govt. had fallen. Congress regime followed headed by Mrs. Gandhi and Rahul Gandhi gave it a quiet burial 1989 National Front Govt. - Mr.V.P.Singh- sensible of the rising political power of the OBCs- implemented Mandals report as a corrective to dominance of upper castes in the public services. 1990- case in SC contesting the constitutional validity of Mandal Commissions recommendations: Extension of reservation violated the constitutional guarantee of equality of opportunity Caste not a reliable indicator of backwardness Efficiency of public systems at risk September 1990 DU student Rajeev Goswami set himself on fire in protest against the Mandals report. Many more self immolators. Around 200 suicide attempts. 62 successful! Stronger resent in North as compared to south. Why? Affirmative action programs had long been in existence in south South thriving industrial sector- less dependence on govt. sector Upper castes less than 10% of population. In north, 20% of population Strongest supporters of Mandal Commission were two rising politicians Mulayam Singh Yadav(UP) and Lalu Yadav(Bihar) 1991- Congress back to power- to gain strength in North and woo the backward castes- Narsimha Rao- endorse Mandal report- 27% reservation to OBCs with preference to poor amongst them 1992- SC dismissed the petition filed in 1990 against Mandal Report. But 2 additional things: reservations should not exceed 50% of the jobs in govt. and caste criteria only in recruitment and not in promotions. Initially in 1980s CPI and CPM opposed Mandal coz believed that class and not caste is the major axis of political mobilization. BJP opposed coz accorded pride of place to Hindu religion. But finally in 1990s, all parties saw the political costs of opposing it and thus accepted it.Emergence of Bahujan Samaj Party: 1956: Dr. Ambedkar, died Then most prominent Untouchable leader- Jagjivan Ram- Congress. Died in 1988. Now active, Kanshi Ram 1971 Kanshi Ram had formed All India backward and Minority Communities Employees Federation (BAMCEF), an organization to represent govt. employees from a disadvantaged background, a trade union of SC elite. By 1980s had membership of 200000. Mainly in North, particularly UP 1984 elections- Kanshi ram started BSP (Dalit = SC; Bahujan = SC+OBC+Muslim). Garnered more than a million votes but not any seat. In subsequent elections, better performance Best in UP, at the expense of Congress- BSP stood for social justice and social transformation. Had emerged as one of the three major political groups in the state, the others being Mulayams Samajwadi party and BJP. By 1990s, Kanshi Ram supplanted by Mayawati who realized that the Dalits could never come to power on their own and thus built cross party and cross caste alliances. Became thrice the CM, heading coalition govt. formed with SP or BJP. Increased visibility of SCs, now knew of their rights under the Constitution and were fighting for them.Clashes between upper castes and Dalits:Following the increase in power of Dalits, there were numerous violent clashes between the upper caste Hindus and OBCs against Dalits. The clashes were seen more severe in the southernmost districts of the Tamil Nadu and in Bihar.Growing power of Naxalites:Bihar max oppression of Dalits historically;grossest forms of feudalism; land reforms in West Bengal but not in Bihar. Middle and upper class owned the land and Dalits tilled it.1970s- Maoist radicals took up the case of Dalits. Naxalites disappeared from West Bengal where they were prominent a decade ago and now gathered strength in the districts of Central Bihar. Formed agricultural labour fronts and demanded higher wages, equality, end to forced labour, share to village common land and an end to social coercion. New found self respect in Dalits - most significant achievement of Naxalites. Other achievements End to forced labour Equal rights to women laborers No forced labor Better working conditions etcHowever long-term aim of these radicals to overthrow Indian state. Hidden, illegal activities carried on side by side, collection of weapons. Naxalites had their own army called Lal Sena and Safaya squads who were trained to assassinate oppressive landlords.In response, the upper caste and ruling elite formed senas and private armies of their own. Infinite violent incidents between these and Naxalites. By mid 1990s- in much of Bihar, state had no visible presence at all.Scheduled Tribes:Naxalites active also amongst STs. STs also called Adivasis lived in the most resource rich areas of India. Over the years losing resources to state or outsiders. Activists among tribals- Marxists and Gandhinians. Csuses of tribals: Access to forests and tribals. Particularly angry with the forest department which restricted their access to wood and non forest products. Were paid niggardly sum for like tendu leaves collection used for making bidis. Provisions of decent schools and hospitals1990s- Narmada Bachao Aandolan- Medha Patkar- against displacement of around 200000 tribals due to construction of dam on Narmada river. 1998- Three new states- Chattisgarh, Jharkhand and UttaranchalConflicts in Kashmir:1989: violent again!November 1989: V.P.Singh replaced Rajeev Gandhi as PM. Appointed Kashmiri politician Mufti Mohammed Sayeed to Union Home Minister to please Muslims of India.December 1989: Rubaiya Sayeed, daughter of the home minister kidnapped in Srinagar by JKLF(J&K Liberation Front). 5 jailed ministers released by the Indian Govt. to free her. Major victory for militants.32 separatist groups in the valley, including JKLF(independent non denominational state of J&K in which Hindus and Sikhs would have same rights as Muslims) and Hizb-ul Mujahideen(Islamic regime nad not averse to merger with Pakistan)Govt. finally moved a lot of armed forces (80000) to the state.Who was caught in the cross fire? The innocent inhabitants of the valley. Cases of tortures by CRPF, violent killings etc reported on large scale.Violence in the North East states:1990s- Assam- good news- accord reached with the Bodos, allowing for an autonomous council to be formed in those districts where that community was in a majority.Assam- secessionist ULFA (United Liberation Front of Assam)- tea plantations paid an annual sum to these rebels, mounted raids on banks, and mass violence.Tripura- 2000 killings between 1993 and 2000- mostly civilians.Manipur- had once been an independent kingdom. Chiefly ethnic rivalries and also all ethnic groups saw themselves as non-Indians (banned screening of Indian films) and wanted an independent stateNagaland- NSCN (National Socialist Council of Nagaland) - stubbornly committed to the idea of an independent and sovereign Nagaland. NSCN had well trained fighters and operated from Burma making raids across the border and engaging the army. Even govt. officials paid a monthly tax to the underground!1997- church groups and civil bodies forced the rebels and govt. to declare a ceasefire. Talks on but no agreement reached. The Indian govt. agrees to give Nagas the fullest possible autonomy but within the terms of Indian constitution. But Nagas want creation of a new greater state- Nagalism- consisting also of parts of Assam, Manipur and Arunachal Pradesh, where Nagas live. This of course is violently opposed by these states. Also want greater sovereignty and retention of a separate Naga army.North east- region of violence and migration- immigration from Bangladesh. Also a massive military presence External security since borders China, Bangladesh and Burma. to maintain the flow of essential goods and services to protect rail roads to suppress rebellion and insurgencyArmy operates under the Armed Forces Special Powers Act(APSPA)- special extra powers to army- misused by the army. Human rights groups have asked for the repeal of APSPACondition of Women in Indian Society:Gender discrimination very high. Boys given more freedom and education and rights as compared to their sisters.Sex ratio consistently declining from 972 females to 1000 males in 1901 to 927 in 19911980s- sex determination techniques made things worseSituation more grave in Punjab and HaryanaVariations in gender relations were spatial as well as cultural. In south, the condition of women was not that worse. Also things were better in cities where there was an upsurgence of feminist movement. Changes in law. Amendment of Hindu Succession Act,1956- for the first time bought agricultural land in its purview, allowing women the same inheritance rights as men. Situations getting better in Mizoram in the 1990s:Return of peace in Mizoram. Leaders of Mizoram National Front(MNF) had made a spectacular transition, from being insurgents in jungle to politicians in Secretariat, put there by ballot box. Construction of water pipelines, roads and schools. Mizoram soon replaced Kerala as the most literate state. Were learning Hindi and since were very fluent in English, gradually grabbing positions in the service sector. Targeted to make the state Switzerland of East India, to encourage tourism and a smoother trade with the neighbouring countries. The CM also carried out a larger role in bringing about a settlement between the government of India and the Naga nd Assamese tribals. Situations getting better in Punjab in the 1990s:1987- presidents rule and repeatedly extended by 6 months. Chaos and gun battles killing as many as 20000 lives between 1981 and 1993, with 11000 of them as civilians.1990- army called for help, withdrawn in 19911992- elections to state assembly. The Akali Dal boycotted the elections and the elected congress minister killed by a suicide bomber!1993- Akalis returned to democratic politics. 1997- won emphatic victory in the assembly polls. Militancy was on wane. Sikhs saw themselves as part of India. Industrial sector in the state flourishing. This alienated community had regained its self esteem and resumed its leading role in nation building. Sikhs commanded some of the most important jobsd in nation was widely hailed as a sign of Punjabs successful reconciliation with India.Political Parties in IndiaRajeev Gowda and E SridharanSummary by Ashis NayakThis summary introduces roles of political parties and the party system in deepening Indian democracy specifically on their role in evolution in institutionalized mechanism of power sharing and the promotion of inclusive resilient state. India adopted written constitution in 1950, which features fundamental rights and freedoms, and universal adult franchise. India is organized into twenty-eight states and seven union territories. Indias politicized social cleavages are of religion, Language, caste, tribe rural v/s urban residents and class. Hindus are internally divided by language, caste and sects. The broad caste clusters are Upper caste, intermediate castes and two constitutionally recognized grouping SCs and STs. Other numerically significant religious communities are Muslims (13.4%), Christians (2.3%), Sikhs (1.9%), Buddhist and Jain. Theories of party system evolutionDemocracys success depends on vibrant competition among political parties. Political parties evolve within party systems. There are two theories for political parties evolution first The social-cleavage theory and second The electoral-rules theory. The social cleavage theory postulates party systems are a reflection of the principle cleavages in a given society. ( e.g. Cleavage between capital and labor). The electoral rules theory postulates that the rules of political system and of electoral system, create incentives for political forces to coalesce or to splinter. The principle causal features are the size of electoral districts, the structure of ballot and the decision rule or electoral formula. Several theories are tabulated in the following tableAuthorTheory

Maurice DuvergerEvolutionsOf political partiesArgues that combination of mechanical and psychological effects tends to produce a two party system

Pradeep chhibber and ken kollman Argues that division of power between level of government- national, state of provincial and local -affects the formation of parties at different levelse.g. more centralized power over decisions with state affects the citizens but more incentives for political entrepreneurs to form nationwide political parties and for voters to vote for them

Arend LikphartIndias political system has institutionalized grand coalition governments and has included all religious and linguist groups; allowed cultural autonomy, provided proportionality in political representation as well granted minority veto on minority vital issues.

Atul kohliSupports power sharing in Indian politics

RudalphIndian politics is persistently centrists because of the marginality of class politics; fragmentation of the confessional majority; cultural diversity and social pluralism and the single member plurality system.

Linz, Stepan and yadavArgues that nation is forged by state institution; policies that respect and protect multiple and complementary identities and that is not limited to ethno linguistic federalism. It allows power sharing but does not privilege to any one identity.

Kanchan ChandraArgues that Indian political economy is conducive to the ethnification of parties. India is patronage democracy where most modern sector jobs and services are in the public sector; public officials have discretion in the allocation of public jobs and services

ChandraIf ethnic categories are constructed ones as are Indias SC, ST and OBC. The danger of permanent majorities and minorities can be sidestepped and the ethnification of parties can be redistributive and conductive to power sharing in its operation without being exclusionary. This causes intra-group competition.

Ashutosh varshneyArgues that pressure from below (i.e. poor people) has ensured that parties promote interventions that mitigate poverty. Such policies are politically rewarding but economically inefficient.

Paul BrassCritiques is that the consociational argument asserting that political accommodation in democratic societies is an art not a system and consociationalism is device for freezing existing divisions and conflicts. Eventually fragmentation of Indias political system and the emergence of cleavage-based parties do point to the difficulties of practicing the art of political accommodation over time

Party system fragmentationIndian national congress hegemony, 1952-67Congress won in first four Lok Sabha elections based on plurality of votes competing against fragmented oppositions, which varied from state to states.The multiple bipolarizations of state party systems, 1967-89In the year 1967, congress strength started declining at the national and state levels. It lost powers in eight out of then sixteen states. Politically mobilized cleavages emerged, including language based parties such as DMK. Intrastate alliances of non-congress parties the Samyukta Vidhayak Dalsemerged and pooled votes to oust congress. However, due to lack of coherence in the alliances resulted in instability and collapse of these parties.In 1971, the congress won with 2/3 majority in the Loksabha. In response to congress dominance, anti-congress alliances slowly emerged at the state level. This raised Index of Opposition Unity against Congress. During 1975-77 emergency, congressed faced temporarily united opposition in the form of Janata Party. Congress lost elections to Janata Party in 1977 but J P did not compete against fragmented opposition. Here Durvergers law held at national level with two party democracy. In 1980, janata party disintegrated and congress won the elections. But in 1989, an opposition alliance emerged supported by BJP and other left wing parties, the congress share of the votes dropped to 39% and seats too. The National Front coalition of 1989-90 was novel in three senses. First learning from janata party experiences and built common manifesto. Second, it brought in reginal parties like DMK. Third, coalition was the first spatially compatible interstate alliance of parties. However, this coalition had not moderated or set aside ideological extremes.National Party-system fragmentation and the emergence of coalition and minority governments, (1989-2006)1989 general elections signified a seismic shift in Indias party system with BJPs rise to prominence and Congress relative decline. From no more than 35 seats and 10% vote nationally till 1989 (except for the historic 1977 election) to becoming the single largest party in 1996, it has been a phenomenal rise. Riding on its hindutva agenda and cashing on the upper-caste backlash on Mangal commissions report of government job reservations for OBC, BJP won 161 seats in 1996 and came to power. But it could stand no more than 13 days. It was perceived as a significant ideological statement on the part of a range of secular parties. BJP however learnt a lesson and in further elections sought a wide range of alliances in its nonstronghold states and shelved the religiously divisive points on its agenda.Since 1990s, alliances have more or less been based on spatial compatibility, at the expense of ideological compatibility. The two BJP-led coalitions (98-99 & 99-04) were based on both spatial compatibility (between BJP & regional parties) & ideological compromise (the BJP set aside its hindu-nationalist agenda and other parties ignored its communal character).The congress-led coalition UPA gained power in 2004. UPA was based on a variety of intrastate spatial compatibility as well as ideological commonalities (anti-BJP) and ideological compromises (on economic policy between congress and left). Same was the case of United Front coalition in 1996. Since the 1960s, however, alliances have been driven by the desire to aggregate votes and not by ideology, programs or social cleavages.A process of bipolar consolidation at the state level was the key feature of and driving force behind the fragmentation of the national party system: Multiple bipolarities (viz. congress-BJP, cong-left, cong-regional parties) in state party system empowered a large number of parties at the national level where they wielded great power. This also indirectly led to bipolar consolidation of BJP and Congress led coalitions at the center. The social cleavage theory explains the formation of parties based on religion & caste. At the same time, as congress centralized many leaders who were feeling marginalized in congress left and formed new rival parties. (eg: in AP, TN & Assam)The Duvergerian multiple-bipolarization explanation along with the Chhibber-Kollman explanation based on state powers in a federal system explains the incentives for single-state-base party formation, leading to the multiple-bipolarization of state party systems. This leads to a highly fragmented national party system with very large and ideologically disparate coalitions.The authors dont really affirm to the point that it is leading to a sustained bipolarity of 2 alliances but they emphasize here the full representations of politically mobilized groups across states, indicating power-sharing among groups through their participations in diverse coalition rather than in an umbrella party.The Decline of IdeologyIndia has a long history of forming party alliances without a match of ideology. None of these alliances stick together since no ideological, social or policy held them together. Initially BJP was untouchable because of its Hindutva agenda, but then again it was conveniently ignored when the non-congress parties needed to forge a front. Since 1998, BJP has also somewhat moderated its Hindu-ness in order to sustain governing alliances.Apart from Secularism, the other major ideological issue is Liberalization of the economy.Example: the dispute between UPA and Left in the last government. But since the liberalization started, it hasnt been majorly halted. Arun Shourie says One reform creates pressure that other reforms be put through. This has enabled the NDA too to support the reform during their power. At the individual levels also, ideological labels have gradually lost their significance with politicians changing parties without concern for ideological views. Overall, this development may merely reflect an ideological consensus: the acceptance of liberal economic reforms with a human-face and a somewhat diluted secularism.The rise of Dynastic PoliticsThe dynasty reign has been present in Indian politics since Gandhi-Nehru time which just got strengthened with emergence of Indira, Sanjay, Rajiv, Sonia Gandhi and more recently Rahul Gandhi. Congress has always been somewhat personalized by these charismatic leaders. Following their steps, now even leaders like Sharad Pawar, Mayawati have chosen to run highly personalized parties. According to K.C. Suri, the charismatic leaders maintain weak party organizations to prevent challengers from emerging is the logic behind these personalized parties. The benefits of dynastic politics are: 1) the leaders generally wont face much of challenge inside the party. 2)The dynasties inherit an already established network and brand-appeal. They no longer need to build a political base.Because the dynastic politics stifles the emergence of grassroot leadership, some scholars blame it for fragmentation of parties, decline in democratic deliberations and the role of parties being mediating institutions. They advocate a return to intraparty democracy and transparent, open funding of political parties. The larger consequence of decline in Ideology and rise of dynastic politics is the reduction of party organizations to mere election-winning machines. (example: BJP nominating many film stars for 2004 elections)The impact on the quality of democracyThe fragmentations of party system, nature of coalition politics and internally top-down character of parties have mixed effects on the quality of Indias democracy. Based on Larry Diamond and Leonardo Morlinos eight dimensions of democratic quality, the authors feel that on 4 fronts (freedom, participation, competition & Horizontal accountability) there has been +ve effect. While on rest 4 fronts (Rule of Law, Equality, vertical accountability & responsiveness) there has been ve impact.Competition: The decline of one-party system and emergence of small regional parties have ensured a strong competition in the state-level elections.Participation: There has been an increase in participation, especially by the lower castes and class as well as women and minority groups in the politics.Horizontal Accountability: The emergence of multiparty system has weakened the dominance of the governing party on the organs of horizontal accountability like election commission, courts. The same applies for the media industry also. These developments have bolstered democratic freedom.Equality: While on one hand, the emergence of caste based parties have increased the influence of minorities, at the same time anti-muslim parties like BJP have threatened the equality for the minorities. This also weakens the rule of the law. The rule of law also gets weakened by attempts of lower-caste parties to use state power to further their social base interest in a manner uncompromising to norms and institutions (eg: bihar & UP) Another threat to rule of law is the greater influence and participation of criminals in politics.Indias Informal Economy: Facing the Twenty-First CenturyBarbara Harriss-WhiteSummary by Mayank and SunilThe main argument in this article is that the larger part of the Indian economy is regulated in significant ways by social structures that are resistant to change by means of macro-economic policy. In its regulation of the informal economy, the Indian state is not proof against the influence of these structuring identities, as a result of which it does not work as one would expect a modern developmental state to work. The implementation of reforms and liberalization is filtered through these structures.The Social Regulation of the Indian economy:In this section, the author examines the ways in which the most significant social structures of accumulation religion, caste, space, classes and the state regulate Indias informal economy.Gender:The informal economyis for the most part a matter of family businesses which are essentially structures of hierarchical authority between men. As firms grow in size, the demand for male family labour increases; but as fertility decreases, the number of male agnates decrease. Yet instead of drawing women family members into these firms, women tend to be deprived of productive work and live fairly secluded lives based on the home. Marriages and alliances are carefully controlled to create and protect the resources flows crucial to capital accumulation. When a family contracts a good marriage, its credit increases. Because of these patriarchal arrangements, competition between firms is frequently suppressed resulting in oligopolies. Other adverse affect of keeping strong family control over young male property owners is that they are often educated only to the level compatible with continuing to live at home or with close kin. The reinforcement of patriarchal relations in the class controlling local capital also has contradictory effects on the welfare of women. Relating dowry to the social status of women, the author argues that s the economic costs of women rise and their economic benefits fall, so does their relative status. As the gender bias can be explained by low relative female status arising from lack of earned income, by the costs of dowry, and by the demand for male family labour in firms, it can be concluded that wealth creation and property accumulation benefit men disproportionately.Religious Plurality:The roles of religions in Indian economy have been very specific. Religious groups are often found regulating and distributing livelihoods, and providing insurance and social security. In these ways, forms of noneconomic and divine authority may be found to govern economic behaviour. eg. The economic significance of the Jain religion is far greater than the share of Jains in Indian population. The existing religious plurality in India has meant that the deepening division of labour and the proliferation of new and technologically upgraded commodities and services are easily and sometimes exclusively aligned with religious sub castes and sects. This results in the social patterning of residential areas and the spatial patterning of economic activity. Religions also owe their roles in the economy in part to the secular aspirations of the state. In setting out constitutionally independent of all religions, The Indian State has left the economy vulnerable to religious competition in various ways, from the provision of infrastructure to communal conflict. The Indian state has been penetrated by religions- by the routes of political patronage, by the consequences for minority politics of reservations and by unequal treatment of religions. As a result of this penetration, neutral development policy will have differential impacts on people of different religions.Caste:In India, most Backward Castes and Scheduled Castes form 80% of the labour force. Backward castes are gaining ground as owners of businesses, but Forward Castes dominate the concentration of capital. A third of all firms use family labour alone while a further 15% will not employ labour not of their caste. So, nearly half the firms are caste-homogeneous. The local economy is increasingly organized in corporatist forms based directly or indirectly on caste. The regulative roles played by caste vary with the position of individual castes and the distribution of castes in different states. The disposal of waste is part of a paradigm of service and subordination where caste and gender still reflect rank and stigma. Schedule caste labourers do the sanitary work, but they have also entered trade in commodities with certain physical properties, such as foodstuffs with skins, or things that have to be transformed by cooking prior to consumption, or that are traded in physically dirty surroundings. Caste has been reworked as an economic institution, ad it is least flexible at the base where social disadvantage is most entrenched. While caste/trade associations are intermittent and called into life only when the trade is threatened, many, especially those of business sectors in which Backward Castes operate, ate playing increasingly important roles in regulation. These include the rationing of entry to a trade, the definition of proper contracts, the settlement of disputes, collective insurance, and collective security.

Quotes and (or) ViewsSupporting Views/Points

Caste is no longer an important agent of social placement of control Andre Beteille of IndiaThe author gives a counterpoint to the argument stating that the remnants of occupation based castes are organised in several loose hierarchies based on work, diet, religion

Note: The article contains a lot of examples, this summary does not concentrate on the examples and rather we have tried to emphasis more on the content.The articles focus is on India's informal economy, what Harriss-White calls "the economy of the India of the 88 per cent". This term is used since more than 74 per cent of the population is rural and another 14 per cent lives in towns with a population below 200,000. The remaining 12 per cent lives in metropolitan cities (page 1). The informal economy generates 90.3 per cent of all livelihoods in India and 60 per cent of the country's net domestic product. Her study of the informal economy leads us, as well, into the country's black economy, with which the informal economy overlaps at several points.White's central argument in the book is that "the social structures of accumulation" in India create "the matrix through which accumulation and distribution take place" .She argues: "In the India of the 88 per cent, it is clear that a range of non-State social structures, and the ideas and cultural practices attached to them, are even more crucial for accumulation than they are in industrial societies. Six reasons are explored in this article: the structure of the workforce, social classes, gender, religion, caste and space" Harriss-White draws primarily on data on small-town India, arguing that this is where one can best examine "the non-corporate (economy) in which 88 per cent of Indians live and work" .To delineate the micro-economies of small-town India where the "intermediate classes", who are her main focus, reside, she draws on her own field research from northern Tamil Nadu.The article focuses on the business classes in their daily dealings with each other, with their workforces and with the local state, reveals the ways in which the local economy is very tightly - though "informally" - controlled and regulated by these mercantile business classes. Her detailed documentation of the business methods of these "intermediate classes", shows the ways, mainly hidden but sometimes brazen, by which the state's control is neutralized and rendered harmless, competition is eliminated, and new entrants kept out of the market. (A lot of examples are given for the same).Harriss-White argues that it is these intermediate classes that are, in fact, the dominant segment in India's economy. She defends this thesis by arguing that the informal economy, in which the intermediate classes are hegemonic, "accounts for two-thirds of Gross Domestic Product (GDP)" and that "at least half of the informal economy is `black'" .This is why she characterizes the informal economy as "anti-social" - it is regulated by the intermediate classes and ruled by their narrow values based on self-interest.White further argues that the size of the intermediate classes is growing and a "new wave of small capital, based on primary accumulation, is reinforcing and expanding the informal and black economy, intensifying the casualisation of labour and transferring the risks of unstable livelihoods to the workforce". The severely exploited labour force is radically subordinated and "labour is regulated through the social structures of gender, religion and caste, and of local markets". Her study of the local hegemony of the intermediate classes leads her to conclude: "Fraud and tax evasion are part and parcel of Indian capitalism.... The bulk of the economy is beyond the direct control of the State. Countering this literally anti-social economy calls for the emergence of a more robust and active culture of collective accountability".The other issue this article raises is the arguments relating to the impact of India's religious pluralism on the structure of its economy and the question of whether capitalism in India is proving to be the "social solvent" that it was widely expected to be. A major contribution of this article is its discussion of the debates on "industrial clusters" (or "industrial districts") in India. Here Harriss-White argues that the overly positive view of "industrial clusters" and "flexible specialisation" in India, that currently prevails, is quite mistaken. She points out that industrial clusters are a common, not exceptional, form of development in India. Low technology is usual in these industrial districts. Contrary to what cluster theory enthusiasts, whose numbers are growing, claim, most industrial clusters do not have the "developmentally positive potential" shown by highly exceptional clusters like Bangalore and Tirupur. In fact, most industrial clusters in India excel in the "super-exploitation" of workers, especially women and children.Importantly - and this is a fact that cluster enthusiasts often choose to ignore in studied silence - a lot of field research shows that entrepreneurs demonstrate "a complete disregard for anything other than private profit". This, coupled with "the inadequate and negligent enforcement of effluent standards" by the co-opted state, has resulted in vast tracts of agricultural land being rendered unfit for agricultural use, while large sections of local populations have been deprived of their sources of drinking water, because these are now toxic. In Tamil Nadu such disasters have occurred in the Palar Valley (due to tanneries) and in Tirupur (due to the hosiery industry). The state has remained indifferent or slow and extremely reluctant to act against the entrepreneurial class, with whom it is in close collusion. The result is that the burden of these "negative externalities", created by highly profitable (and much admired) industries, falls, crushingly, on those least able to bear this environmental disaster - the virtually disenfranchised rural poor.The article describes the strength of the powerful political and institutional forces that rule the economy today, in unholy alliances that have institutionalised corruption and fraud, making them an accepted, everyday part of the economy. These hegemonic forces have created almost overwhelming obstacles to the possibility of "democratically determined accountability".Indias New Entrepreneurial Classes: The High Growth Economy and Why it is SustainableSunil Bharti MittalSummary by Tarun KumarThe article is from the speech of Sunil Bharti Mittal at Center for the Advanced Study of India, (Occasional Paper Number) on 25th February 2006. The article outlines the story of economic development of India since independence. The story of economic reforms in India and the associated political repercussions have been presented by Mr. Mittal in his speech. He further goes on to establish various factors which ensure that Indias economic growth is permanent and sustainable.

Important Quotes

Quotes and (or) ViewsSupporting Views/Points

Mahatma Gandhi First they ignore you, then they laugh at you, then they fight you, and then they loseStory of Bharti showcased all the four stages

Point wise SummarySummarySupporting quotes and (or) examples

Main issues after independence Famine, hunger, poverty Refugees from Pakistan

Socialism was not only fashionable but appropriateServing humanity through state intervention was a global norm

India in 1947-64; under Jawahar Lal Nehru Command and Control economy No role of private sector except in core sectors e.g. Tatas, Birlas Govt. Job was most coveted one; IAS, IPS Profit motive was considered unjustified

India in 1964-65; under Lal Bahadur Shastri1965 war with Pakistan; India was unprepared after 1962 China war; setback for economic momentum

After 1965; Under Indira Gandhi Shaky start; until 1969 Bangladesh war in 1971; Supremacy of India established Concept of mixed economy floated By 74 politics again overwhelmed economics Some business houses like Modis, Oswals showed up their presence

Emergency of 1975-77Setback to business houses coming to mainstream economics

1977; First Non Congress government in CentreNon Gandhi Government failed miserably

1980; Return of Indira Gandhi to power Support to private sector along with dealing with poverty and hunger Bharti & Reliance born during this time

Indian economy under Mrs. Gandhi Complex import-export policies; license raj Lack of transparency; Only incremental steps taken to improve economy For e.g. sudden ban on import of generators under pressure of Indian manufactures China overtook india in growth rate Industry were developed with aim of export to Soviet; estranged with US; close ness to US helped china

1984; Assassination of Indira Gandhi; Rajiv Gandhi took over as prime minister; lost in 1989 Increase in opportunities to new entrepreneurs Introduction of computers; manufacture of telecom device and private air taxies Rajiv loss strengthened view that economic reforms are political suicide Bharti enters telephone manufacturing

1989-91; After Rajiv V P Singh came to power followed by short stint by Chandrasekhar New hope to non business class; attack on business houses; fall of growth rate India reached verge of bankruptcy Pledged gold in international markets Big Business houses grew bigger but no opportunities to new enterants Entrepreneurs move out of India

1992; P V Narasimha Rao takes over; lost in 1996 Removal of license raj; deftly unshackled from Soviet union New entrepreneurial classes emerged Although govt. Supported but new entrepreneurs had hindrances of bureaucracy and established businesses Emergence of companies like Jet, Zee, Infosys, Wipro, Satyam

Vajpayee took over but reforms continue New telecom policy; mergers and collapse of various companies

Unique business model of telecom industry in India Lowest tariffs in world Technology was outsourced to IBM, Ericsson, Nokia; Bharti got involved in customer relationships

Reforms continued under Dr. Manmohan Singh FDI in telecom raised to 74%; equivalent to that in developed countries Gradual development of Stable policie, low taxes, infrastructure

Service Sectors which have potential of exploitation; Capability to add 1.5% to growth rate Software, BPO, ITES (already tapped) Healthcare; Tourism; Innovation and R&D Creativity and Entertainment industry

Manufacturing Sector Lost opportunity to China Still sectors as biotechnology

Agriculture Sector; Gaining AttentionUse of technology can enhance exports

Sustainability of Indian economic growth Large market size Large working population

Issues to tackle Regional inequality mismatch in population distribution and contribution to GDP Urban and rural balance in development

Other Issues in Q&A round Undertaking of CSR by many companies Need to develop good relationship with smaller neighbours Need of Infrastructure; power, roads, airports, education Need of Tax Reforms

Everybody Loves a Good DroughtP. SainathSummary by Sandeep NairIn this article, the author wants to elucidate the fact that fund allocation process for the drought relief programs involves a lot of politics and the media also plays an important role in this process.The author starts by stating that the benefits of drought relief programs do not reach the people who need them. It is an opportunity for many to derive financial benefit out of it. He justifies it by providing some figures on how at few places like that in Maharastra, Orissa, etc the budget allocated was more than the required. He then explains the concept of Drought-Prone Areas Programme (DPAP), under which the government has ability to include blocks of land affected by drought. Once the blocks under DPAP, they receive huge amount of money as well as benefits from host of other schemes, including Employment Assurance Schemes (EAS), anti desertification projects, drinking water missions etc. He then explains with the help of figures that how in the past the, the number of blocks under DPAP scheme has increased significantly and the blocks which are included had good average rainfall figures. (Example: lowest rainfall in past 20 years in Kalahandi, Orrisa is 978 mm, which is way above from many other districts)He says that the poor suffer acute drought even in cases of abundance of rainfall because the water resources are colonized by the powerful. He says that government thinks that by throwing money at such regions, the small fish, who have big votes, can be pacified.He then explains the spiral of drought scam. It also happens to be a, who will bring the maximum fund to their district tussle. Contractors and politicians take up the cause to collector and get local newspaper to print about the situations. And this spiral goes on from here to district headquarters to state level to central level to international level organization like UNDP,UNICEF etc. all in order to demand allocation of funds. At the same time people at various levels also use the media at both local and national level to exaggerate the situation. The reverse spiral begins when funds are actually allocated by foreign donors looking for some good PR. As the money trickles down to the districts, various parties including politicians, consultants, private contractors etc. take their cuts. The places actually affected by the drought do not get much money. Since, the basic problem is not solved, this whole process starts afresh next year too.He then introduces the other problems linked with water, like river water sharing within the states of India and with Bangladesh. Therefore the struggle over water resources operates at various levels, coming down to between villages and between castes & classes.Finally he ends with following lines, There are now two kinds of drought: the real and the rigged. Both can be underway at the same time, in the same place. As the reports that follow seek to show, they often are.Political Economy of Agrarian distressK C SuriSummary by Chayan MukhopadhyayaThe author believes that the reasons for agrarian distress in India lie in the conjunction of the changing nature of agriculture and democratic politics. Aim of the author: - To examine the inter-relationship between the structural and economic changes since independence to the political domain and see how the changed nature of politics and policy priorities have exacerbated the agrarian distress.

Quotes and (or) ViewsSupporting Views/Points

Two paradoxical situations:-First, a large number of farmers suicides have been reported from states which are relatively agriculturally developed, which have seen strong peasant movements in the past and where the leadership of political parties has come predominantly from farming communities.

Second, Democracy is supposed to respond to and accommodate the interests of different sections of the society. But it is aparadox that the interests of the farmers who constitute a large chunk, one-fifth of the electorate, are not cared for by the government.

Changes in Agrarian Political Economy:-1. British rule increased the market oriented production(cash crops). Some sections benefitted while some degraded.2. After independence, there has been 3 phases of evolution of agrarian relations(a) 1950s and 60s:- Reform and consolidation of agriculture on the lines charted out during freedom struggle :- need to take up modern methods and political efforts to increase production and well being of farmers(b) 1970s and 80s:- Green revolution and growth of political populism:- costs to farmers increased and so did their yield. But uncertainty of crop yield and fluctuations in prices for agricultural produce caused a great deal of mental distress to the farmers. The government though took steps for farmers welfare by imposing quotas on imports(c) 1990s onwards:- liberalisation and deterioration of farmers condition:- once we opened gates to foreign competition, the condition of the farmers here degraded because of obvious reasons.3. Some economists suggest nowadays that farmers should stop producing cash crops and produce light crops to get out of this predicament. However, farmers say that t is not possible since they are already deep in debt and if they produce light crops they wont be able to repay their loans.4. Farmers dont have any confidence on the minimum return on their labour and investments.5. Crop insurance scarcely available; even where it is available, insurance companies find umpteen methods to avoid payment.6. The loss of status, uncertainty of income, unbearable debts, unfulfilled needs and the inability to decipher the factors responsible for their predicament, all combine to make farmers desperate. It is not poverty that is driving them to suicide, but it is pauperisation and immiserisation.Changing Nature of Politics:1. Political parties earlier were concerned about the farmers status and their problems, but slowly they lost interest and started taking farmers votes for granted. This happened because farmers were not united and thus, didnt have enough clout to influence the government.2. Political leaders source of wealth changed to industries and businesses from agriculture.3. It is difficult to organise farmers because they are not homogeneous in terms of economic conditions as well as social background.4. During the last two decades, we havent seen any strong all-India peasant movement.5. Farmers interest matter little to the national ruling elites.6. Since fighting elections i very expensive nowadays, even the wealthiest farmer cannot think of doing so.Recent change:-Political parties have begun to speak about farmers distress in the wake of many farmer suicides.Need of the hour:-Change in the strategies of economic development which have hitherto downgraded agriculture and stunted non-farm employment, with mechanisms to ensure proper remuneration to agricultural produce, and the willingness of the political class to support farmers and curb the growth of corruption and their own illegal amassment of wealth.Knowledge@Wharton interview with M. Yunus, Founder of the Grameen Bank.Summary by Bharathan GopalakrishnanMuhammad Yunusis aBangladeshibankerandeconomist. He previously was aprofessorofeconomicswhere he developed the concept ofmicrocred