Is inequality disappearing?Is inequality disappearing?

Globalization and inequalityGlobalization and inequality

Three viewsThree views

Globalization has reduced inequalityGlobalization has reduced inequality

Globalization has caused inequalityGlobalization has caused inequality

Globalization not to blame for inequality, Globalization not to blame for inequality, domestic policies are to blamedomestic policies are to blame

Not globalizationNot globalization

The main argument is that globalization The main argument is that globalization impacted states in accordance with what impacted states in accordance with what existed beforeexisted beforeSo, China was able to reduce poverty So, China was able to reduce poverty faster than any other nation because it faster than any other nation because it already had low levels of inequality in land already had low levels of inequality in land ownership and educationownership and educationOther states have not because was Other states have not because was existing inequalities existing inequalities

In other words…In other words…

Globalization has increased existing Globalization has increased existing inequaliities?inequaliities?

Has helped reduce poverty?Has helped reduce poverty?

Relationship between inequality and Relationship between inequality and poverty?poverty?

China China

#2 economy#2 economy

Total GDP 5.87 trillionTotal GDP 5.87 trillion

per capita income $3,600 last year – less per capita income $3,600 last year – less than a tenth of Japan's ($37,800)than a tenth of Japan's ($37,800)

64 billionaires64 billionaires

With globalization With globalization

China’s productive capacity has increased China’s productive capacity has increased tremendously (how exactly?)tremendously (how exactly?)

Consumption capacity has not increased Consumption capacity has not increased commensurately (why exactly? )commensurately (why exactly? )

Video Video http://video.google.com/videoplay?docid=-http://video.google.com/videoplay?docid=-6733564947664645042#6733564947664645042#

Type of inequalityType of inequality

In China – economic, rural/urbanIn China – economic, rural/urban

In India – economic, social, ethnic, In India – economic, social, ethnic, religious, genderreligious, gender

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India’s society: India’s society: some basic factssome basic facts

1. 3 billion people1. 3 billion people

8 different religious groups. 82% 8 different religious groups. 82% Hindus,14% Muslims Hindus,14% Muslims

Hindus have a hierarchical social Hindus have a hierarchical social organization, known as organization, known as castecaste

122 recognized languages; many other 122 recognized languages; many other dialectsdialects

672 million voters, 230 parties672 million voters, 230 parties

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Basic economic factsBasic economic facts

70% survive on agrarian incomes70% survive on agrarian incomes

93% work in the informal sector93% work in the informal sector

80% live in under $2 a day80% live in under $2 a day

42 million live in slums42 million live in slums

2 million are homeless2 million are homeless

90 million are marginal workers90 million are marginal workers

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The tradition of casteThe tradition of caste

Sudra (manual and menial labourers)

Untouchables, now called Dalits (the downtrodden)

Brahmin(producers of knowledge, particularly theology and

interpretation of religious texts

(Khsatriya (ruling classes/ political elites/warriors)

Vaishya (business classes)

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Traditional role of casteTraditional role of caste

prevent social mobilityprevent social mobility

ensure a supply of manual workersensure a supply of manual workers

prevent social equalityprevent social equality

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What happened at IndependenceWhat happened at Independence

The constitution was drafted by Dr. The constitution was drafted by Dr. Babasaheb Ambedkar. Babasaheb Ambedkar. It became illegal to discriminate on the It became illegal to discriminate on the basis of caste or religionbasis of caste or religionUntouchability was abolished by lawUntouchability was abolished by lawUntouchables came to be categorized as Untouchables came to be categorized as Scheduled CastesScheduled Castes

More faces of discriminationMore faces of discrimination

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ST and OBCST and OBC

Another category of Another category of Scheduled TribesScheduled Tribes were also were also recognized by the constitution. These are recognized by the constitution. These are primarily indigenous communities known as primarily indigenous communities known as Adivasis Adivasis

A third category called the A third category called the Other Backward Other Backward Classes (OBC) – Classes (OBC) – communities listed by the communities listed by the government who have suffered systematic government who have suffered systematic patterns of disadvantage but are not included in patterns of disadvantage but are not included in the Scheduled Castes or Tribes. They can be in the Scheduled Castes or Tribes. They can be in any religion. any religion.

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SC, ST, OBCSC, ST, OBC

Scheduled Castes (SC) 16.8%Scheduled Castes (SC) 16.8%

Scheduled Castes (ST) 8%Scheduled Castes (ST) 8%

Other Backward Classes 27% (or more) Other Backward Classes 27% (or more)

Even with conservative estimates, it appears Even with conservative estimates, it appears that more than 50% of India’s population that more than 50% of India’s population suffers systematic disadvantage and suffers systematic disadvantage and depravationdepravation

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Inequality across religionInequality across religion

The British left a highly communalized The British left a highly communalized polity, scarred by the partitionpolity, scarred by the partition

In India, the Muslim community found itself In India, the Muslim community found itself depleted of its middle class (who left for depleted of its middle class (who left for Pakistan)Pakistan)

The community was left with a rather The community was left with a rather sharp divide between its upper classes sharp divide between its upper classes and its lower classesand its lower classes

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Situation of Muslims (1)Situation of Muslims (1)

The literacy rate among Muslims is The literacy rate among Muslims is substantially below the national average substantially below the national average (59% as opposed to 65%). Only 3.4 per (59% as opposed to 65%). Only 3.4 per cent of the Muslim population obtains cent of the Muslim population obtains graduate degrees graduate degrees

In the elite civil services, Muslim In the elite civil services, Muslim representation is no more than 4 %representation is no more than 4 %

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Situation of Muslims (2)Situation of Muslims (2)

Muslims have the second highest levels of poverty with Muslims have the second highest levels of poverty with 31 % below the poverty line. Incidence of poverty among 31 % below the poverty line. Incidence of poverty among urban Muslims is the highest (31%), followed closely by urban Muslims is the highest (31%), followed closely by SC/ST categories 36.4%.SC/ST categories 36.4%.Worker Population Ratio for Muslim women are the least Worker Population Ratio for Muslim women are the least from among all communities, more so in urban areas; from among all communities, more so in urban areas; the participation of Muslims in regular jobs in urban the participation of Muslims in regular jobs in urban areas is quite limited compared to even the traditionally areas is quite limited compared to even the traditionally disadvantaged SCs/STs.disadvantaged SCs/STs.Other Backward Classes (OBCs) constitute 40.7 per Other Backward Classes (OBCs) constitute 40.7 per cent of the total Muslim population. In the total OBC cent of the total Muslim population. In the total OBC population, Muslim OBCs have a share of 15.7 per cent.population, Muslim OBCs have a share of 15.7 per cent.

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Structural InequalityStructural Inequality

Caste and religion-based inequality in Caste and religion-based inequality in India are structural, i.e. they arise from India are structural, i.e. they arise from

underlying social, political and economic underlying social, political and economic structures (rather than factors such as structures (rather than factors such as lower access to education or jobs). lower access to education or jobs).

How did India try to address them? How did India try to address them?

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Addressing InequalityAddressing Inequality

Secularism: non-discrimination and Secularism: non-discrimination and separation of state and religion (i.e. state separation of state and religion (i.e. state has no official religionhas no official religion

Affirmative action (called reservation in Affirmative action (called reservation in India): creating quotas for admission to India): creating quotas for admission to educational institutions and in public educational institutions and in public sector jobssector jobs

Did they work?Did they work?

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Solutions? Solutions?

Secular democracy fulfilled a very Secular democracy fulfilled a very important role but generated important role but generated contradictions: it did not reduce the contradictions: it did not reduce the structural inequality between different structural inequality between different religious communities, particularly Muslimsreligious communities, particularly Muslims

Rise of communal politics and Rise of communal politics and fundamentalist politicsfundamentalist politics

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Politics of Affirmative actionPolitics of Affirmative action

Affirmative action resulted in some progress of Affirmative action resulted in some progress of individuals but has done little to change the individuals but has done little to change the social location of disadvantaged groupssocial location of disadvantaged groupsUpper castes and classes have reacted strongly Upper castes and classes have reacted strongly against these reservationsagainst these reservationsAt present major social conflict exists over At present major social conflict exists over whether SC/ST/OBC should have reserved whether SC/ST/OBC should have reserved seats in elite institutions (such as the top seats in elite institutions (such as the top engineering, business and medical schools). engineering, business and medical schools). The fear is that this may lead to admission of The fear is that this may lead to admission of students with students with less merit and destroy the less merit and destroy the credibility of these institutionscredibility of these institutions

With globalizationWith globalization

A very divisive politics of caste and religionA very divisive politics of caste and religion

While factories and sweatshops have While factories and sweatshops have been swelling with workers from all social been swelling with workers from all social strata, the upper echelons remain less strata, the upper echelons remain less diversediverse