Anda di halaman 1dari 84

MAY 12, 2012 VoIXLVll No 19

Economic&PoliticalwEEKLY
A SAMEEKSHA TRUST PUBLICATION WWW.epW.ill

EDITORIALS The Civil-Military Divide


■ Under High Finance's Grip The popular narrative that sees the military as a victim
■ Kidnapping: Hostage to Wrong Ideas of control by the bureaucracy and as excluded from
■ River Tragedy: Crocodile Tears decision-making is a selective and incomplete
M ARGIN SPEAK representation of reality, page 12
■ RTE: A Symbolic Gesture

COMMENTARY
Centralising Police Powers
■ The Civil-Military Divide
The bill to amend the BSF Act seeks to expand the
■ Moving Constitutional Borders
powers of the force in an unconstitutional manner and
■ Norwegian Child Services:
A Tale of Ethnocentric Hegemony violates the spirit of India's federalist system, page 15

■ A Forgotten Statutory Practice


■ Regulating Utilities
In the Jungle of Law
BOOK REVIEWS
The well-intentioned Forest Rights Act of 2006 has
■ The Grammar o f Caste
failed to have an impact in the specific historical and
■ M etro Rail Projects in India
legal environment of the adivasi region of Wayanad
INSIGHT district in Kerala, page 38
■ In the Jungle of Law:
Adivasi Rights and the FRA
SPECIAL ARTICLES
Illustrations in Statutes
■ Inefficiency in Land Acquisition Illustrations in statutes clarify legislative intent, provide
■ Migration, Transnational Flows, the context for the application of a law and thereby aid
and Development a better understanding of legislation; yet this practice
■ Creating Employment in the 12th Plan has been discontinued, page 23

NOTES

■ How Representative Has the Lok Sabha Been?


The Region in Global Migration
DISCUSSION
Tracing transnational connections and migration flows
■ An Act of Transgression at the regional level provides a more nuanced
CURRENT STATISTICS understanding of the social and economic implications
■ Money and Banking: Trends and Key Ratios of migration and the resulting remittances, page 54

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:07 UTC
All use subject to https://about.jstor.org/terms
Lee Kuan Yew
NUS

Inspiring Leaders
m ■ School of Public Policy
Im proving Lives Transform ing Asia
N ational U niversity
o f S in g a p o re

Mahendra Jain
MPM 2011

Network w ith
A siasfuture leaders Supreme. Ccvr+ o f +h&

The Lee Kuan Yew Fellowship in partnership w ith Rowena Nieves AdenaTan
MPM 2011
H arvard Kennedy School and Columbia University
Lee Kuan Yew Fellows Mahendra, Rowena, Chong-H an and Changfeng represent
a select community o f around 20 exceptional leaders who share a strong commitment
to improving lives and transforming Asia in the 21st century.

T hey come together in a global classroom for the Master in Public M anagement
(M PM ) programme, to learn, debate, analyse and share ideas on how to exercise
effective leadership and good governance in Asia.

Lee Kuan Yew (LK Y) Fellowship


AWsVr y o f fahoacHoti,
T he LKY Fellowship, one o f the m ost distinguished and generous scholarship
globally, is awarded by the M inistry o f Foreign Affairs, Singapore. It is valued at Boo Chong-H an
approximately U S D 100,000 and provides a unique opportunity for LKY Fellows to MPM 2012

study one semester at the LKY School and the second at either the Harvard Kennedy
School or C olum bia University, SIPA, w hile fostering networks w ith their
counterparts in Asia. LKY Fellows also benefit from a five-week attachment with a
Singapore Government Ministry or Statutory Board.

LKY Fellows represent the future o f Asian leadership, and are drawn from the
government, civil society, business, academia and media. T hey are senior officials
with over 8 years o f work experience, a proven trajectory o f leadership and a strong
commitment to public service.

A pply nowofr enrolment in January 2013.


FVty'S+ry o f Com^ieros.,
Application Deadline is 30 June 2012. O v>w

Shao Changfeng
Tel: +65 6516 6134 Email: lkysppmpm@nus.edu.sg Website: www.lkyspp.nus.edu.sg MPM 2012^

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:07 UTC
All use subject to https://about.jstor.org/terms
M A Y 12 , 201 2 | v o l x l v i i n o 19
E c o n o m ic & P o litic a lw E E K L Y
RTE: A Symbolic Gesture E D IT O R IA L S
Under High Finance’s Grip.....................................7
10 With the Supreme Court upholding the Right to Education, much is being
claimed on behalf of the governm ent initiative, but it is nothing more th an a Hostage to Wrong Ideas.........................................8
symbolic gesture. Crocodile Tears.......................................................9

F R O M 5 0 Y E A R S A G O ................................................................9
The Civil-Military Divide
12 Restoring the health of civil-military relations in India will require measures M A R G IN S PE A K
both to address the widening gap and to correct the institutional imbalances RTE: A Symbolic Gesture
th at currently prevail. —Anand Teltumbde .............................................. 10

COM M ENTARY
The Border Security Force (Amendment) Bill, 2011
The Civil-Military Divide
15 Granting the Border Security Force policing powers violates the spirit of
— Srinath Raghavan ............................................. 12
India’s federalist system and could institutionalise the authoritarian
predilections of the security establishment. Moving Constitutional Borders:
The Border Security Force (Amendment) Bill, 2011
— SAHRDC ............................................................ 15
Norwegian Child Services: A Tale of Ethnocentric Hegemony
Norwegian Child Services:
19 In Norway, im m igrants and minorities have been at the receiving end when
A Tale of Ethnocentric Hegemony
it comes to the child protection system, which is culture-blind, intolerant
— Javaid Rashid, A a ly a A m in .............................. 19
and ethnocentric.
Illustrations in Statutes:
A Forgotten Statutory Practice
Illustrations in Statutes: A Forgotten Statutory Practice
— Apoorva Sharm a , Purushottam A n a n d ...........23
23 The laziness of the State in not adding illustrations in the legislation has
Regulating Utilities: A Legislative Framework
im paired the understanding of law by the citizen.
—Adithya Krishna Chintapanti ........................... 27

Regulating Utilities: A Legislative Framework B O O K R E V IE W S


27 The Draft Regulatory Reform Bill prepared in 2009 in the Planning The Grammar o f Caste:
Commission does not take into account the constitutionally m andated Economic Discrimination in Contemporary India -
separation of powers and the principles of federalism. Caste Identity and Economics
— Sukhadeo Thorat .............................................. 32
Adivasi Rights and Implementation of Forest Rights Act in Kerala Metro Rail Projects in India: A Study
38 It is evident th at W ayanad district’s adivasi land issue cannot be solved by the in Project Planning - A Superficial Picture
Forest Rights Act and though the cpi(M)-led governm ent attem pted to — C Ramachandraiah ........................................... 35
appropriate it for redistributing long-promised land to landless adivasis, it IN S IG H T
could not bend the law. In the Jungle of Law: Adivasi Rights and
Implementation of Forest Rights Act in Kerala
Inefficiency and Abuse of Compulsory Land Acquisition — Ursula Munster ; Suma V ishnudas ................... 38
46 A discussion on the Land Acquisition, Rehabilitation and Resettlement Bill 2011,
S PE C IA L A R T IC L E S
especially of litigation over compensation and the regulatory im pedim ents
Inefficiency and Abuse of Compulsory Land
obstructing voluntary land transactions and a suggestion for reforming the
Acquisition: An Enquiry into the Way Forward
regulatory framework th at governs agricultural land and its use.
— Ram Sin g h ........................................................ 46

Migration, Transnational Flows, and Development in India Migration, Transnational Flows, and
Development in India: A Regional Perspective
54 To fully understand the connections betw een m igration and development, it
— Carol Upadhya, Mario R u tte n ..........................54
is necessary to carefully unravel the complexities of various forms of
Creating Employment
transnational mobility and remittances as they flow through the transnational
in the Twelfth Five-Year Plan
social fields th at connect diasporic communities w ith their home regions.
— Santosh Mehrotra, A nkita Gandhi,
Bimal Kishore Sahoo , Partha S a h a ..................... 63
Creating Employment in the Twelfth Five-Year Plan
63 An analysis of employment trends and a look at the problem of creating N OTES

decent and productive employment in the non-agricultural sector during the How Representative Has the Lok Sabha Been?
first decade of the 21st century. —A run Kaushik, Rupayan P al ............................. 74

D IS C U S S IO N
How Representative Has the Lok Sabha Been? An Act of Transgression
74 W hen the Lok Sabha elections from 1951 to 2011 are analysed, we find th at — Arun K P atnaik ........................ 79
there are large discrepancies betw een seat and vote shares of political parties
in each of the 15 elected Lok Sabhas in independent India. C U R R E N T S T A T IS T IC S ............................................................8 l

L E T T E R S .....................................................................4
An Act of Transgression
79 A continuation of the discussion on “Leninism as Radical ‘Desireology’” S U B S C R IP T IO N RA TES A N D
( e p w , 24 Septem ber 2011). N O T E S F O R C O N T R IB U T O R S ................................................ 6

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:07 UTC
A ll use subject to https://about.jstor.org/terms
E conom ic& P oliticalw E E K L Y LETTERS
ISSN 0 0 1 2 - 9 9 7 6

Ever since the first issue in 1966,


epw has been India's premier journal for Resisting Culinary Fascism I would argue that an approach to
comment on current affairs counter culinary fascism in India neces­
and research in the social sciences.
t the end of March some students of sitates an understanding of how the veg­
It succeeded Economic Weekly (1949-1965),
which was launched and shepherded
by S a c h in C h a u d h u r i,
who was also the founder-editor of epw.
A Jawaharlal Nehru University ( j n u ) .
New Delhi under the banner of a recently
etarian and non-vegetarian divide rest­
ing upon a selective and hence, biased
As editor for thirty-five years (1969-2004) formed group called the New Material­ study of Hindu (and Jain) myths, texts,
Kr ish n a R a j
gave epw the rep u tatio n it now enjoys. ists ( n m ) organised a public meeting to and so forth operates at the micro level
debate the issue of (dis)allowing certain on an everyday basis. And it is just not
EDITOR
C R A M M A N O H A R RED D Y kinds of food - beef and pork in particular about beef eating but also pork, chicken,
DEPUTY EDITOR
- on the campus. The group, as one of its fish, egg, and so on. And it is also not
B E R N A R D D*MELLO members Suraj Beri said, intended to peti­ about dalits, Muslims and Christians alone
WEB EDITOR
tion the university administration to allow but numerous non-vegetarian upper and
SU B H A SH R A I the sale of beef and pork in the canteen®, middle caste (Bengali, Kashmiri, Maithili,
SENIOR ASSISTANT EDITORS and fight for inclusion of the same in the and Assamese) Hindus. We need to
L IN A M A T H IA S hostels’ menus. It was a struggle, as the remember that no community, dalits in
A N IK E T A LA M
S R IN IV A SA N R A M A N I n m declared, against the brahmanical particular, has a monolithic culinary
A S H IM A S O O D dietary impositions on dalits and other culture just as not all Hindu brahmins
B H A R A T I BHARGAVA
minority community students of j n u . are vegetarians or Muslims/Christians
COPY EDITORS
P R A B H A P IL L A I
A fortnight later - on 14-15 April - violent meat-eaters. The fascist ideology propa­
JY O T I S H E TTY clashes broke out at Osmania University gated by a section of “devout Hindus” -
ASSISTANT EDITOR
(ou), Hyderabad over a beef-eating festi­ even if not all are officially part of the
P S LEELA val organised by dalit and left leaning Sangh parivar - obviously operates on the
PRODUCTION student activists on the campus to protest constructed “Indian (vegetarian) culinary
U RAGHUNATHAN against brahmanical food restrictions. culture” which forbids inclusion of all
S L E SL IN E C O R E R A
S U N E E T H I N A IR Beef-eating as a carefully constructed kinds of non-vegetarian food and conse­
CIRCULATION
divisive symbol has been historically on quently excludes, hates and targets not
GAURAANG PR A D H A N manager the agenda of the Sangh parivar in parti­ only the Muslims/Christians (presum­
B S SHA RM A
cular, and used essentially to target the ing all are non-vegetarians) but also the
ADVERTISEMENT MANAGER Indian Muslims and Christians. lesser non-vegetarian Hindus (including
K AM A L G FA N IB A N D A
While it is true that a campaign against dalits). Interestingly, even Hindu deities
GENERAL MANAGER & PUBLISHER
eating beef has been the defining feature are often ranked along ambrosial lines.
K V IJA Y A K U M A R
of the ideology of culinary fascism in India, As the e p w editorial “Beef Festival at
EDITORIAL
edit@epw.in that is certainly not where the story ends. Osmania”, 28 April 2012 pertinently points
CIRCULATION For instance, the addition of pork, inci­ out: It is the north Indian, Hindu, upper-
circulation@epw.in
dentally a prohibited meat for Muslims, caste male who has had a free run for
ADVERTISING
advt@epw.in
on the agenda of n m is a pointer towards more than a century and a half in
that. Given the complexity surrounding the defining Indian food and culture” (p 8).
ECONOMIC A ND POLITICAL WEEKLY
3 2 0 -3 2 1 , A TO Z INDUSTRIAL ESTATE
dietary habits of Indians, a beef-centric It is perhaps not incorrect that culinary
GAN PAT RAO KADAM MARG, LOWER PAREL view of culinary fascism would therefore fascism grows and thrives in northern
MUMBAI 4 0 0 013 offer only a non-nuanced understanding (and parts of western) India, in the
p h o n e : (0 2 2 ) 4 0 6 3 8 2 8 2
fa x : (0 2 2 ) 2 4 9 3 4515
of that ideology. The Indian variety of Gangetic plains to be precise, yet southern
culinary fascism is premised (and prac­ India is not far behind. My personal ex­
EPW RESEARCH FOUNDATION tised) upon a divide between the Hindus perience of being a Hindu, Bengali, non­
epw Research Foundation, established in 1993, conducts
research on financial and macro-economic issues in India.
and Others (including non-vegetarian vegetarian, upper caste woman living in
Hindus) which, in turn, feeds into the pure, north India (in Delhi, where my intolerant
DIRECTOR
K K A N A GA SABA PATHY vegetarian and impure (dangerous) non- western Uttar Pradesh born neighbour
C 212, AKURLI INDUSTRIAL ESTATE vegetarian food divide. Obviously, we need routinely humiliates me by saying that I eat
KANDIVALI (EAST), MUMBAI 4 0 0 101
p h o n e s : (0 2 2 ) 2 8 8 7 3 0 3 8 /4 1 to recognise that culinary (food) fascism “meat, fish and what nof’kind of food) and
fa x : (0 2 2 ) 2 8 8 7 3 0 3 8 in India is marked by an acute everyday­ teaching in a south Indian management-
epwrf@vsnl.com
ness and extends far beyond the issue of run college (non-vegetarian food is for­
Printed by K Vijayakumar at Modem Arts and Industries,
151, A-Z Industrial Estate, Ganpatrao Kadam Marg,
beef consumption alone to include all bidden in the college premises) affiliated
Lower Parel, Mumbai-400013 and kinds of non-vegetarian food. Other vari­ to the University of Delhi suggests that.
published by him on behalf of Sameeksha Trust
from 320-321, A-Z Industrial Estate,
eties of non-vegetarian food if not being While I certainly stand in solidarity with
Ganpatrao Kadam Marg, Lower Parel, Mumbai-400 013. able to stir such “heightened, passionate” the agenda of n m and the students of ou I
Editor: C Rammanohar Reddy.
feelings as with beef surely do no less. would reiterate the need to extend the
4 m a y 12, 2012 v o l x l v i i n o 19 E3SS2 Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:35 UTC
All use subject to https://about.jstor.org/terms
LETTERS

dalit-Muslim, beef-centric understanding also explores the politics of knowledge basin 43.. ..these figures can go up were all
of culinary fascism to interrogate the larger and the complex modes of new govern­ data to be made public by the Arunachal
vegetarian versus non-vegetarian cultural ance. Besides the government archives, government. To build so many dams in
and political - pertaining to the nature the medical institutions run by govern­ an area which is earthquake-prone carries
of individual rights and choices in a ments hardly care about archiving their incalculable risk for all living beings.
“secular, democratic” state - framework documents. A few years ago I visited the Each m o a is accompanied by a mone­
within which the ideology is located. library of the first medical college in India tary advance by the project developer to
We urgently need to debate and resist (1835) only to find out that most of the the Arunachal Pradesh government at
culinary fascism in order to be able to eat, books and records had been destroyed. the time of signing the deal. This implies
live and grow in a tolerant India. The School of Tropical Medicine library that the project gets sanctioned even be­
Nabanipa Bhattacharjee too was not quite dissimilar. fore any of the mandatory reports and
NEW DELHI I guess this particular attitude to his­ clearances are given.
tory in the Indian medical discipline has This makes the entire scheme of build­
Consolidating come from the absence of an awareness ing projects which will destroy the Brahma­
Religio-Political Forces of humanities, which is otherwise intri­ putra basin a colonial project that is
cately linked to the practice of the know­ meant to benefit rest of India at the ex­
ith reference to the editorial high­ ledge! Without a serious engagement pense of north-east. It is also of interest to
W lighting the beef festival at Osmania
in e p w , while I feel culinary choices
with medical humanities we will not
only destroy our own rich historical ar­
note that the maximum number of
projects have been awarded to private
should remain personal, I also think, we chives but also keep increasingly produc­ companies. In most of the projects, impact
must not lose sight of how it is being ing doctors who keep objectifying their assessment studies have not been done.
made a tool in the religio-political ground patients in numbers, figures and images. Indeed some developers who claim to
of conflict. One’s personal culinary choice Amitranjan Basu have got this study done have confined
notwithstanding, we must recognise the SHIMLA them to between five and 10 km of the
fact that such regimented and organised project. The Siang river project indeed
protests under the liberal or secular Fact-Finding on Mega Dams claims that no agricultural land would be
banner are actually more likely to con­ in North-East submerged, whereas nearly every house­
solidate this purely individual matter of hold in 35 villages would lose their culti­
culinary preference into a tool of religio- he Coordination of Democratic Rights vable land! The misinformation by the
political expansion.
Sourav Adhikary
T Organisation, comprising 20 civil and
democratic rights organisations from
authorities is accompanied by a deliber­
ate attempt to hide the truth from the
TAMLUK, WEST BENGAL across India, decided to undertake a fact­ people by manipulating studies.
finding of the impact of big/mega dam The fact-finding was conducted by
Preserving Medical Records projects coming up in the north-eastern following organisations, (1) Asansol Civil
states on the life and livelihood of the Rights Association ( a c r a ) , West Bengal;
he commentary by Shilpi Rajpal people. It has been reported that more (2) Coordination for Human Rights
T (“Experiencing the Indian Archives”,
e p w , 21 April 2012) is indeed timely and
than 168 memoranda of understanding/
memoranda of agreement ( m o a ) have
( c o h r ) , Manipur; (3) Manab Adhikar

Sangram Samiti ( m a s s ) ; (4) Naga Peoples


highlights the appalling condition of been signed by the Government of Aru- Movement for Human Rights ( n p m h r ) ;
the Indian archives that are managed by nachal Pradesh alone. (5) Organisation for Protection of Demo­
governments. Though in contemporary One team headed towards upper Assam cratic Rights ( o p d r ) , Andhra Pradesh;
history writing use of archival materials and another towards the Tipaimukh dam (6) People’s Union for Democratic Rights
has gone far beyond government docu­ site. The first team visited North Lakhim- ( p u d r ) , Delhi.

ments, these still remain crucial to re­ pur, Dhemaji in Assam and Pasighat in Coordination of Democratic Rights
searchers exploring the public records to Arunachal Pradesh covering the Lower Organisation
understand the genealogy of governance Subansiri, Lower Siang and also the down­
of specific kinds. The problems for histo­ stream area of Lohit and Dibang river
Corrigendum
rians of science, technology and medi­ projects in Tinsukia district. The second
cine ( s t m ) are more complicated as not­ team visited Tipaimukh project which "Why Did Mayawati Lose?”
ed by the author. would affect people living in Manipur, In the article,4Why Did Mayawati Lose”
I have been researching the history of Mizoram and Assam. An interim report by A K Verma (5 May 2012), the sentence
psychiatry and psychology in India for has been prepared. on page 18, “The decisive defeat of b s p
more than a decade and think that the The fact of the matter is that nearly with the loss of 80 seats since 2007...”
history of s t m in India not only covers a every river will have several dams each; should read as “The decisive defeat of b s p
huge, heterogeneous sample where various Lohit basin will have 10, Subansiri basin 12, with the loss of 126 seats since 2007...”.
“modern” practices were introduced, it Dibang basin 12, Siang basin 39, Kaming The error is regretted.
Economic & Political w e e k ly Q 3S3 m a y 12, 201 2 v o l x l v i i n o 19 5

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:35 UTC
All use subject to https://about.jstor.org/terms
Subscription Rates
Print Edition - For India Web Edition/Digital Archives
Rates for Six Months (in Rs) The full content of the EPW and the entire archives are also available to those who do not wish to
subscribe to the print edition.
Category Print (Plus free web access to issues of previous two years) Print + Digital Archives
Individuals 800 1,100 India (in Rs) SAARC (in US $) Rest of the World (in US $)
Category Number of Number of Number of
Rates for One Year (in Rs) Concurrent Users Concurrent Users Concurrent Users
Category Print (Plus free web access Print + Digital Archives
to issues of previous two years) (According to Number of Concurrent Users) Institutions Up to Five 2,500 Up to Five 200

UptoS 1 6 to 10 1 More than 10 Single User Six to 10 4,000 Six to 10 320


Institutions 3,000 5,000 1 6,000 7,500 More than 10 6,000 More than 10 50 More than 10 410
Individuals 1,500 1,800 Individuals Single User 1,000 Single User 20 Single User 40
Teachers/Researchers 1,200 1,400
Students 750 900
Rates for Three Years (in Rs) Types of Web Access to the Digital Archives
Category Print (Plus free web access to Print + Digital Archives
issues of previous two years) Single User Individual subscribers can access the site by a username and a password, while
Individuals 4,200 5,100 institutional subscribers get access by specifying IP ranges.
Teachers/Researchers 3,300 4,000 To know more about online access to the archives and how to access the archives send
Concessional rates are restricted to students, teachers and researchers in India. To subscribe
us an email at circulation@epw.in and we will be pleased to explain the process.
at concessional rates, please submit proof of eligibility from an institution.
Print Edition: All subscribers to the print edition can download from the web, w ithout making
any extra payment, articles published in the previous two calendar years. How to Subscribe:
Print plus Digital Archives: Subscriber receives the print copy and has access to the entire archives Payment can be made by either sending a demand draft/cheque in favour of
on the EPW web site. Economic and Political Weekly or by making online payment with a credit card/net
Print Edition — For SAARC and Rest of the World (AirMail) banking on our secure site at www.epw.in. (For Inland subscriptions if making
Airmail Subscription for One Year (in US $) payment by cheque, please add Rs 35 to cheques drawn on banks outside Mumbai,
Print (Plus free web access to issues Print + Digital Archives when collection is not at par).
of previous two years) (According to Number of Concurrent Users)
Institutions
SAARC Address for communication:
Rest of the World Economic & Political Weekly
Individuals 320-321, A to Z Industrial Estate
SAARC Ganpatrao Kadam Marg,
Rest of the World Lower Parel, Mumbai 400 013, India

Notes for Contributors


Contributors are requested to follow epw's style decision on whether the paper for the Special Article General Guidelines
sheet while preparing their articles. The style section is accepted for publication. • Writers are requested to provide full details for
sheet is posted on epw's website at • Articles accepted for publication can take up to correspondence: postal address, day-time phone
http://epw.in/epw/user/styletocontributors.jsp. It will six to eight months from date of acceptance to numbers and email address.
help immensely for faster processing and error-free appear in the epw. Papers with immediate relevance epw requests writers not to send revised versions
editing if writers follow the recommended style for policy would be considered for early publication. based on stylistic changes/additions, deletions of
sheet, especially with regard to citation and Please note that this is a matter of editorial judgment. references, minor changes, etc, as this poses
preparation of the bibliography. challenges in processing. Revised versions will not be
Commentary
Special Articles processed. When there are major developments in
epw invites short contributions to the 'Commentary'
epw welcomes original research papers in any of the the field of study after the first submission, authors
section on topical social, economic and political
social sciences. can send a revised version.
developments. These should ideally be between 1,000
• Articles must be no more than 8,000 words, and 2,500 words. Copyright
including notes and references. Longer articles will A decision on Commentary-length articles will be • epw posts all published articles on its website
not be processed. communicated within 6-8 weeks, or earlier. and may reproduce them on cos.
• Contributions should be sent preferably by email. • epw also posts all published articles on select
Keywords
• Special articles should be accompanied by an databases.
Authors are requested to list six to eight keywords
abstract of a maximum of 150-200 words. • Copyright of all articles published in the Journal
for their articles.
• Papers should not have been simultaneously belongs to the author or to the organisation where
Book Reviews the author is employed as determined by the
submitted for publication to another journal or
epw sends out books for review. It does not normally author's terms of employment.
newspaper. If the paper has appeared earlier in a
accept unsolicited reviews. However, all reviews that
different version, we would appreciate a copy of Permission for Reproduction
are received are read with interest and unsolicited
this along with the submitted paper. • No published article or part thereof should be
review on occasion is considered for publication.
• Graphs and charts need to be prepared reproduced in any form without prior permission of
in MS Office (Word/Excel) and not in jpeg or Discussion the author(s).
other formats. epw encourages researchers to comment on A soft/hard copy of the author(s)'s approval should
• Receipt of articles will be immediately articles published in epw. Submissions should be 800 be sent to epw.
acknowledged by email. to 1,600 words. Address for communication:
• Every effort is taken to complete early processing Letters Economic & Political W eekly
of the papers we receive. However, we receive 70 Readers of epw are encouraged to comment 320-321, A to Z Industrial Estate
articles every week and adequate time has to be (300 words) on published articles. Ganpatrao Kadam Marg,
provided for internal reading and external refereeing. All letters should have the writer's full Lower Parel, Mumbai 400 013, India
It can therefore take up to four months for a final name and postal address. Email: edit@epw.in, epw.mumbai@gmail.com

6 MAY 12, 2012 VOL XLVII NO 19 Q 229 E conom ic & P olitical w eek ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:36 UTC
All use subject to https://about.jstor.org/terms
E conom ic& P oliticalw E E K L Y
M AY 12, 2012

Under High Finance’s Grip


The acceptance of absurd doctrines suggests that high finance has increased its grip on the economy.

t was a panel discussion in the middle of April on the “chal­ economics guru, contradicting what he had said earlier, then

I lenges of economic reforms in India” or some such talking


point at a function to present a book of essays by leading
economists of the establishment to Prime Minister Manmohan
Singh. The tracts were in honour of the personage widely cred­
added that important reforms related to subsidies, decontrol of
diesel fuel, and foreign direct investment in multi-brand retail
will be ushered in the next six months. Prime Minister Manmohan
Singh had already assured his British counterpart David Cameron
ited with having ushered in neo-liberal economic “reforms” in that the telecom transnational corporation Vodafone would not
1991. D Subbarao, governor of the Reserve Bank of India ( r b i ) , be (capital-gains) taxed retrospectively in its overseas acquisi­
was one of the speakers. He is widely credited by the financial tion of Hutchison’s Indian operations, but that did not stop
markets with doing the kind of monetary policy which, even in Geithner from intervening on this matter, for he had to
these times of high food and fuel inflation, continues to ensure assure his us transnational clients that their interests are not
the holders of the various financial instruments that their going to be hurt from any such retrospective taxation of their
investments will not be inflated away. At this celebration, the international business transactions related to India. The global
governor of the r b i did what he came to do with dramatic capitalist system is yet to extricate itself from its most convulsive
effect, comparing the fiscal deficit, the current account deficit economic crisis since the Great Depression, and the political
and the proportion of short-term arrears in the total foreign representatives of high finance are doing their utmost to enhance
debt in 2011-12 with the corresponding figures in 1990-91 to the rates of return on the investments of their business clients.
paint a rather “disturbing picture” of the present. The inter­ On its part, the Government of India also wants to get a good
national credit rating agencies must have been immensely deal for Indian business from the Bilateral Investment Treaty
pleased, for the message to the government from the central between Washington and New Delhi that is on the anvil and from
bank was clear - do what is required in the arena of govern­ the huge armaments contracts with the military-industrial com­
ment spending to satisfy the private funds so that your commis­ plex (of the us) that are in the pipeline.
sions will not generate inflationary effects which will adversely Now, the most-trusted tool of high finance, the institution of
affect the real return on their financial investments. the credit rating agency, has offered its wisdom couched in an
Not to be left behind, in the week that followed, the chief admonishment. One agency. Standard and Poor’s, has sent a
economics guru of the treasury, in the United States for the strong signal to the Government of India that it will downgrade
spring meetings of the International Monetary Fund and World the country’s sovereign credit rating “if the external position
Bank, told his audience at a meeting of the Carnegie Endow­ [the current account deficit on the balance of payments] contin­
ment for International Peace that major economic reforms were ues to deteriorate, growth prospects diminish or progress on
unlikely to be pushed through before the next parliamentary fiscal reforms remains slow in a weakened political setting” (our
elections in May 2014 because of the current political con­ emphasis). Pranab Mukherjee has been quick, once again, to re­
straints that have paralysed the government in New Delhi. But assure the financial markets that the government will fulfil all
be patient and worry not, for the new government in 2014, pre­ their wishes, but these bourses remain unconvinced.
sumably not of the present coalition kind, will be free to rush We all know that the rating agencies’ award of grades is highly
through all the important economic reforms that are pending, subjective, but then those ratings are an important determinant
and thereafter, India will be one of the fastest growing econo­ of yields on the bond markets, and the anticipation of particular
mies in the world! grades fuels uncertainty and financial instability, which, of
us Treasury Secretary Tim Geithner must have been smiling course, is a source of speculative gains and losses. But what is
when this brought forth a clarification from Union Finance Min­ most absurd is these agencies’ presumption that the principles
ister Pranab Mukherjee who assured his hosts that the three key of macroeconomics are the same as the economic propositions
financial legislations on banking, insurance and pension funds of the household. In the short term, the increase in government
will be passed in Parliament this year itself. The Indian treasury’s expenditure serves to shore up the fortunes of an economy with
Economic&PoliticalwEEKLY BB59 m a y 12, 2 0 1 2 v o l x l v i i n o 19 7

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:39 UTC
All use subject to https://about.jstor.org/terms
EDITORIALS
substantial underutilised capacity, and in the long term, public turn, reduces the same. But such economic propositions which
investment on education, health, research and development, public underlie the views of the rating agencies, preposterous as they
infrastructure, etc, stimulates economic growth. It is ridiculous seem to Keynesian macroeconomists, only drive home the fact
to argue that the fiscal deficit necessarily increases public debt that with the liberalisation of capital flows, high finance has
as a proportion of g d p , or that a reduction of the fiscal deficit, in tightened its grip ever more on the Indian economy.

Hostage to Wrong Ideas


The abduction of committed bureaucrats by the Maoists will win them no favours or friends.

ith the freeing of Alex Paul Menon, collector of Sukma The militarised conflict with the Maoists has taken a large

W district of Chhattisgarh, the third episode in the toll of lives in Chhattisgarh and Orissa. Scores of adivasis,
recent spate of kidnappings by members of the Com­ security personnel and activists have fallen in this internal war
munist Party of India (Maoist) has ended. Earlier last month the - legitimised as revolutionary by one side and as necessary for
two Italians and a member of the Orissa legislature who had the maintenance of law and order by the other. Many of those
been kidnapped in the neighbouring state were freed one after killed include innocents shot by security forces in what are
another. As part of the agreement between the c p i (Maoist) and termed “encounters” and civilians who have died in Maoist
the Government of Chhattisgarh prior to the release of Menon, bomb attacks on public transport. Many adivasis have also lost
drawn up on the mediation of two respected interlocutors, a their livelihoods and homes in attacks by the state’s security
high-powered panel has been formed to review all those cases forces in their operations against the Maoists’ People’s Libera­
which Maoists claim have been falsely foisted on hundreds of tion Guerrilla Army.
adivasis who are now languishing in jail. It remains to be seen if But it is a false notion in this war that all government officials
the Government of Chhattisgarh will implement what it has are merely appendages to an oppressive state apparatus. It is
agreed to, for the Government of Orissa did not carry out in full evident that young administrators like Krishna and Menon are
what it had promised last year on the freeing of innocents during committed to addressing the adivasis’misgivings about the Indian
the kidnapping of another district collector Vineet Krishna. state and its failure to deliver public services. Such officers are
However, it is time to once again critically discuss the politics no less concerned than the Maoists about development and the
of kidnapping; here specifically that of civil servants (We had self-respect of the people they serve. The Maoists’ logic stems
earlier critiqued the politics of kidnapping in the editorial, “A from their understanding of the nature of the Indian state, that
Moral Prohibition”, epw , 7 April 2012). If it was Vineet Krishna it is completely oppressive and reactionary, beyond repair and
in Malkangiri, Orissa, last year, it was the turn of Alex Menon beholden entirely to the interests of parasitic classes and impe­
this year to be kidnapped. From all accounts, these two officers rialism. This understanding is an incorrect one, for it gives no
from the Indian Administrative Service were committed to the allowance for the presence of committed state personnel who
task of changing governance in the two adivasi-majority districts. are as idealist as the Maoists themselves. The Maoists’ abduc­
Menon was taken hostage by Maoist rebels during an outreach tions of such personnel are therefore clearly indefensible acts.
visit initiative - the Gram Suraj Abhiyaan - to a remote village and In some ways the two collectors were, for instance, keen on
Krishna too had a reputation of being a sensitive official. The democratising governance and going beyond the token bureau­
two may have been “agents of the State” but seem to be dedi­ cratism that has created resentment among the people and
cated to the well-being of the adivasis in the districts they were made many of them supporters of the Maoists in their struggle.
in charge of rather than being agents of corporate interests out By taking them as hostages and threatening the worst (sentencing
to grab adivasi resources. by their peoples’ courts), the Maoists have made it difficult for
The Maoists justify these abductions as necessary to free from similar personnel to work on taking hitherto absent welfare
jail adivasis who are facing fake charges, to end the State’s services to the adivasis.
combing operations and also to release some of their comrades The tendency to conflate repressive policies and those
who have been arrested. They see the officials as part of an appropriating the natural resources and habitats of the local
oppressive state and therefore consider them legitimate targets people for corporate profit with the efforts and work of all gov­
of such acts. It could well be argued that in the midst of what is a ernment servants and politicians will win the Maoists no sym­
near civil war these actions have been done under duress. The pathy. Far from forcing the repressive state to get to talk to them
state has indeed launched a massive offensive against the Maoists and open the space for dialogue, it will only strengthen the
during the course of which it has not only been the combatants on resolve of the many who believe that the only approach towards
both sides who have suffered, but also scores of non-combatants - the Maoists is to take them on militarily. That is an outcome
some of the poorest of India - who have been rounded up and which will hurt most the very people whom the Maoists claim
thrown into jail unable to comprehend why they are being to act on behalf of - placing the adivasis in a crossfire from
punished by a state that is supposed to care for them. which they cannot escape.
8 m a y 12, 2012 v o l x l v i i n o 19 Q 22I Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:39 UTC
A ll use subject to https://about.jstor.org/terms
EDITORIALS

Crocodile Tears
Unsafe and unmonitored boats are death traps for Assam’s poor passengers.

he tragedy on the Brahmaputra River last week, when a the private ferry operators’ lobby has had a field day profiteering

T boat carrying passengers from Dhubri to Hatsingimari


capsized near Fakirganj in the western part of the state
in a cyclonic storm, illustrates the continuing shocking neglect
by state governments of transport facilities used by the poor.
on vessels that are in a near-dilapidated condition. It is not diffi­
cult for them to procure fitness certificates for very old and badly
maintained boats. Most of these vessels run by the Inland Water
Transport department and private operators do not even have
With 103 passengers dead and another estimated 250 missing, chains or security railings, and passengers, motorcycles and
all one heard from the prime minister downwards to politi­ small cars jostle for space during the 90-minute journey between
cians in Assam was “grief” and “shock”. What was needed was the northern and southern banks of the river. As far as the boat
grief and shock over the absence of steps which if they had that capsized was concerned, the villagers say that there were
been taken earlier could have avoided the tragedy. For, despite nearly 450 passengers in it and not 300 as claimed by the gov­
river transport being such an essential part of life in Assam, ernment. Most of these boats do not cany lifebuoys or any other
where people have to find ways to cross Asia’s largest river, the emergency equipment. In almost every area, the private opera­
Brahmaputra, there is no mechanism to monitor the condition tors seem to have a free hand, including in the training given to
of the boats or the number of passengers that are crammed the personnel who run these vessels. Complaints are obviously
into them. The boat that capsized was 16 years old and had not not heeded either by the operators or by the officials meant to
been inspected even once. Additionally, as no one knows how monitor them. This state of affairs - lack of even cursory enforce­
many passengers were on the ferry, even the number of missing ment of rules and allowing a private lobby to operate like a mafia
is a matter of speculation. Compounding the tragedy is the - is chillingly similar to other tragedies that have an impact on
fact that the national media paid attention to it only because the very poor, such as the periodic “hooch” (spurious liquor)
of the size of the death toll. It is unlikely to follow up on the deaths and the road accidents involving overcrowded private
event given its location - the north-east of India which is vehicles driven by undertrained and overworked drivers.
perpetually neglected. Predictably enough along with the mandatory committee to
The boat tragedy highlights the very low priority received by a “look into” the tragedy, Assam’s transport minister has announced
form of transport that is widely used by the poor in that part of that new motorised ferries would begin plying between Dhubri
the country. The chief minister of Assam, Tarun Gogoi, admitted and Fakirganj in a week’s time. And since only a bridge can be a
this when he said that river transport was underdeveloped in permanent transport solution, the feasibility study of a bridge
comparison to road transport in the state. The lack of a bridge or between Dhubri and Phulbari would be hastened, the minister
rail link over the Brahmaputra means that passenger traffic on added. In the face of the tragedy, such announcements are a
the river’s waterways is one of the heaviest in the country. Thou­ cruel joke on the poor of Assam. They are routinely made, as
sands of workers and wage labourers have no option but to use was the announcement about motorised ferries on 26 January
this form of transport on a daily basis. Water transport in itself is this year, and just as easily forgotten. Will this tragedy hasten
not a problem as long as it is properly organised and the requisite implementation or will another one with a bigger death count
safety measures are made mandatory and enforced. It is in fact lead to same announcement yet again?
the cheapest and if the right technology is used even the most It is only when there is an organised public anger over such
energy efficient and environment-friendly mode of transport. senseless loss of lives and this anger is directed at the ruling elite’s
The problem in Assam is the near total absence of enforcement neglect of the amenities used by the poor, will such tragedies be
of safety rules. According to the state’s opposition party leaders, followed up by concrete action and their frequency minimised.

FROM 50 Y E A R S AGO National Assembly, the largest single group This is, however, difficult to accept since if the

fhefconomiclPaWj
9 Journal of Current economic anti political affair*
consists of ex-Muslim Leaguers. An ordinance,
however, has been promulgated to prevent
legislators who have been elected reflect any­
thing of the present temper of the people of
the members from forming parties or acting Pakistan, especially of the country’s eastern
as groups. wing, they will not be content to carry out the
VOL XIV, NO 19, MAY 12, 1962
...Thus, out of a total population of some President’s biddings unquestioningly. It is more
WEEKLY NOTES 94 million, only the 80,000 basic democrats, likely that President Ayub Khan is depending on
of whom again one-third were nominated by being able to build up his own political back­
Politicians’ Return the President, exercised the right to vote in ing in the Muslim League group in the National
It must be disconcerting for President Ayub the elections. Assembly by a calculated disbursement of
Khan that after all the lengths to which he Critics of the Pakistan Constitution have Presidential favours. That the Muslim league
had gone to tar and feather the politicians, pointed out that the democratic provisions group in the National Assembly is likely to be
the elections to the National and Provincial contained in it are no more than a facade and led by Sardar Bahadur Khan, a brother of
Assemblies should have returned so many ex­ that in fact it would be used by President President Ayub Khan, lends credence to this
politicians. Among the members elected to the Ayub Khan to bolster up his dictatorial rule. interpretation.

Economic & Political w e e k ly QQE9 m a y 12, 2012 v o l x l v i i n o 19 9

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:41 UTC
All use subject to https://about.jstor.org/terms
M A R G IN S P E A K

RTE: A Symbolic Gesture in 1993 accorded the status of Funda­


mental Right to “free and compulsory
education” for all children up to 14 years
of age (including the children below
A N A N D T E L T U M B D E __________________________ six years).
The delivery of this verdict forced the
If the government is really sincere he Supreme Court’s majority judg­ then Congress government of the time
about the Right to Education,
it must put aside its neo-liberal
obsession and launch a common
T ment upholding the constitu­
tional validity of the Right to Edu­
cation ( r t e ) Act 2009, which mandates
25% free seats to the poor in govern­
to figure out ways and means of putting
it into practice. The Saikia Committee
was formed and in 1997 recommended an
amendment of the Constitution making
school system for all children up ment and private unaided schools uni­ education for children under 14 a funda­
to the age of 18. formly across the country, was greeted mental right. Finally, in December 2002,
with much enthusiasm by the media. the 86th amendment to the Constitution
There were euphoric statements about was passed with the Bharatiya Janata
how this would clear the way for poor Party-led National Democratic Alliance
students to get “quality education” in government inserting a new Article 21A.
elite schools. Notwithstanding the myriad This summarily denied the same right
problems associated with its implemen­ to education to 17 crore children up to
tation, no one seems to have given a the age of six and ensured that the new
thought to some obvious questions: Article 45 took care of their early child­
what about the students in government hood nurture and education. Article 21A
schools and the role of government in stated that “the State shall provide free
education and so on. and compulsory education to all chil­
dren of the age of 6 to 14 years in such
Resorting to Trickery manner as the State may, by law, deter­
The real reason for the r t e Act was to mine”. It took another eight years after
hide the massive failure of successive the 86th amendment and 17 years from
governments to keep the promises made the passing of the Unnikrishnan judg­
in the Constitution. The right to educa­ ment before the r t e Act was passed. It
tion was already enshrined in Article 45 was not a right; it was more like snatch­
of Part iv of the Constitution as a Dir­ ing away an existing right given in the
ective Principle of State Policy. Much Constitution! It just gave the govern­
against the wishes of Babasaheb Ambed- ment an opportunity to legitimise the
kar the Constituent Assembly had denied rampant commercialisation of education
it a place in Part 111 as a Fundamental that it had anyway promoted during
Right. However, except for its lack of the previous two decades of its so-called
justiciability, this was the only Article economic reforms.
among the Directive Principles that
had a specific time frame of 10 years Scope of the Judgment
for its fulfilment from the commence­ The Constitution had envisaged a com­
ment of the Constitution. Successive mon school system in consonance with
governments have been guilty of failing the principles of equality and social jus­
to keep this promise. The wake-up call tice enshrined as Fundamental Rights.
came in 1993 with the Supreme Court Any programme that provides education
judgment in the case of Unnikrishnan vs of varying quality to different sections
State of Andhra Pradesh. In this almost of society and denies education of equi­
revolutionary interpretation, the Court table quality is unacceptable to the Con­
stated that Article 45 in Part iv of the stitution. But this is precisely what has
Constitution must be read in “harmoni­ been happening. The schools ranged
Anand Teltumbde (itanandraj@gmail.com ) is a ous construction” with Article 21 (Right from those with no roof and no teacher
writer and civil rights activist with the to Life) in Part hi since the Right to Life in the villages to the expensive boarding
Committee for the Protection of Democratic is meaningless if it is without access to schools and international schools for
Rights, Mumbai.
knowledge. Thus the Supreme Court the handful of elite. The r t e legitimised
10 m a y 12, 2012 v o l x l v i i n o 19 DDES Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:42 UTC
A ll use subject to https://about.jstor.org/terms
MARGIN SPEAK

this trend as neo-casteism in the sphere This symbolic gesture from the gov­ entrepreneurs in the free market, the
of education. ernment will surely come in handy for neo-liberal framework has an instru­
According to the latest District Infor­ these schools to increase their fee struc­ ment of regulation to take care of market
mation System for Education ( d i s e ) sta­ ture. Already the class that is their clien­ imperfections and infirmities. Free the
tistics for 2010-11 (provisional), 78.41% tele has expressed apprehension about economic sector for private capital and
of all schools are government schools this move. While alleviating their fears install a regulator is the institutional
with a 67.15% share in total enrolment, Sibal suggested that they mobilise corpo­ solution of the neo-liberals. We have
making the government the major pro­ rate support under the corporate social many such regulators already in place
vider of education. Of the 21.49% pri­ responsibility ( c s r ) scheme, another for the deregulated sectors such as elec­
vate schools, 14.04% private unaided neo-liberal contrivance. They will cer­ tricity, petroleum, telecom, financial
schools with an estimated enrolment tainly exploit all these areas irrespective markets, and banking. Fundamentally,
share of 20% are the real subject matter of whether the e w s students go there or by assigning an administrative figure
of the judgment. A large number of not. The important issue is whether the with the responsibility of overseeing the
these unaided schools are minority real e w s students will go to the quality interests of the people, a political space
institutions and therefore have been institutions the judgment envisages! is effectively depoliticised. The regula­
excluded from the application of r t e as tor is supposed to prescribe rules of the
per Articles 29 and 30 of the Constitu­ Regulation and Reservation game and referee the play. There is a
tion. The coverage of the judgment is It is an open secret that the policy focus proposal to install such a regulator for
thus reduced to schools currently with of the Indian government is to throw the education market that has been
less than 10% of gross enrolment. open Indian education. The Indian edu­ freed for private capital.
All said and done, this scheme of cation market is generally regarded as Another instrument wielded by the
admitting 25% students from the eco­ the only market which is price inelastic. Indian government excellently supple­
nomically weaker sections ( e w s ) is Indians look upon education as the only ments the neo-liberal stratagem and
going to be merely symbolic. While the resource which can promise a reasona­ that is reservations. Systematically
judgment received euphoric welcome ble standard of living and better pros­ embellishing it with attributes of social
from all quarters, no one spoke about pects for their children. India’s educa­ justice, successive governments have
the obvious obstacles in the way of its tion sector currently is believed to offer used it as a potent weapon during socio­
implementation. The main issue here is an estimated $40 billion market, with economic crises. Reservations have
who is to bear the cost. The r t e Act stip­ a potential 16% five-year compound gained such an aura that their very
ulates that schools providing free and annual growth rate ( c a g r ) of which mention pre-empts opposition and
compulsory elementary education shall approximately 50% is in the school seg­ lends them an easy passage. The r t e
be reimbursed the expenditure to the ment. The r t e Act well illustrates how Act as it was conceived legitimised a
extent of per-child-expenditure incurred the government could transform the multilayered school system and pro­
by the state concerned, or the actual cost crisis created by the Supreme Court into moted commercialisation of education,
charged for a student, whichever is less. an opportunity to drive its neo-liberal and was bound to be seen as elitist by
Obviously, this would be peanuts in agenda. Right to education as an inte­ the multitude of masses. The govern­
comparison to what these schools actu­ gral part of the right to life, read in con­ ment was thus forced to take a stand.
ally charge their students. Union Minister junction with other articles of the Con­ In order to assuage apprehensions it
for Human Resource Development Kapil stitution as interpreted by the Supreme came out with the solution of 25% res­
Sibal confirmed that government’s con­ Court, implies that all children get the ervation for the e w s students. Insofar
tribution towards reimbursement will same quality of education through a as this policy has earned praise from
vary from Rs 6,000 to Rs 19,000 annu­ common school system. But successive the intellectuals and general public,
ally (Rs 500 to Rs 1,583*33 per month). governments have skilfully dodged this the government has already proved to
Many of these schools (the real refer­ essence and escaped from their obliga­ be successful, notwithstanding the
ent group) are internationally bench- tions by adopting a neo-liberal solution. actual reality.
marked in terms of their teacher-stu­ They brought in all kinds of neo-liberal Given the situation, the Supreme
dent ratio, infrastructure, technology taxonomy such as the public private Court judgment may be commendable.
intensity and consequently, fees. The partnership ( p p p ) , voucher system, But the issue is much bigger than the
average fee for a regular school ranges refinanced loans and tax exemptions to mere applicability of the 25% reserva­
from Rs 70,000 to Rs 1,00,000, whereas both the investors (corporate houses, tion. If the government is really sincere,
for an international school it could be non-governmental organisations and it must spare education from its neo-lib­
Rs 5 to 7 lakh. The extracurricular acti­ religious bodies) and the consumers eral obsession and launch a common
vities invariably add to the formal costs. (children and parents), and so on in the school system for all children across the
Many of these international schools take sphere of education. country up to the age of 18 years which
their students on trips abroad as part of To assuage apprehensions about is capable of keeping pace with the
the curriculum. unbridled profiteering by private changing times.
Economic & Political w e e k ly 13331 m a y 12, 2012 v o l XLVII NO 19 11

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:42 UTC
All use subject to https://about.jstor.org/terms
COM M ENTARY

The Civil-Military Divide which was held to have led to the deba­
cle. This interpretation was flawed. The
military went along with the strategy (the
“forward policy”) proposed by civilians
S R IN A T H R A G H A V A N __________________________ not because the latter rode roughshod
over them, but because the professional
In the recent controversies over he string of recent controversies military had no viable alternatives to
the state of the civil-military
relationship in India, the popular
narrative sees the military as a
T between the army and the gov­
ernment, culminating in reports
about alleged fears of a coup occasioned
by movement of troops towards the capi­
offer. Besides, many of the key decisions in
the run-up to the war were actually taken
on the advice of the top military leader­
ship.1 This is not to claim that the politi­
victim of control by the tal, underlines the growing divide bet­ cians bore no blame for the defeat; just
bureaucracy and as excluded ween the civilian and military leader­ that the argument about civilian interfer­
ships in India. This divide is usually ence leading to the defeat was wrong.
from decision-making on security
attributed to a peculiar, skewed pattern This narrative, at best radically in­
affairs. This is a far from accurate of civil-military relations. According to complete and at worst downright false,
representation of the real state of conventional wisdom, the civilians have soon became a morality pageant for the
affairs. It is in fact a selective established an overwhelming, almost military. The principal lesson drawn
strangling, domination over the mili­ from it was the importance of “standing
interpretation because it glosses
tary. Civilian control over the military, up” to politicians who sought to intrude
over the fact that the military the argument goes, has degenerated in professional matters. More impor­
actually has a considerable amount into “bureaucratic control” by civilian tantly, the civilians, frazzled by the war,
of say on matters pertaining to officials rather than political control by tacitly accepted this critique. Thence­
elected leaders. In consequence, the mil­ forth, they restricted themselves to giv­
national security. And it is an
itary is kept out of the decision-making ing overall directives, leaving operational
incomplete interpretation because processes on security affairs - a state of issues to the military. As the then
the problematic nature of civil- affairs that has dangerous implications defence secretary noted in another con­
military relations in India cannot for national security. text, “In the view of the public outcry
since the 1962 debacle about the relative
be reduced to institutional Considerable Say role of politicians and the Services and
dynamics within the government. This popular narrative, voiced by several their chiefs”, the military leadership had
A discussion of the relationship quarters in the past weeks, is at once been given “a long rope”.2
from the early 1950s. selective and incomplete. It is selective This “1962 syndrome” was further re­
insofar as it glosses over the fact that the inforced by the 1971 war against Paki­
military actually has a considerable stan. During this crisis the military leader­
amount of say on matters pertaining to ship, especially general Sam Manek-
national security. And it is incomplete shaw, apparently “stood up” and resisted
because the problematic nature of civil- the pressure from the prime minister for
military relations in India cannot be re­ precipitate military action early in the
duced simply to institutional dynamics crisis. The accuracy of the narrative is
within the government. another matter. The evidence now avail­
Consider first the claim that the mili­ able shows that Indira Gandhi was fully
tary has litde say in matters pertaining to alive to the dangers of any hasty mili­
national security and that it is deliber­ tary action. As with the 1962 crisis, the
ately kept out of the decision-making veracity of the narrative is beside the
machinery of the government. In fact, point. The point to underline is that
there is a demonstrable increase in the India’s convincing victory in the war
military’s influence and assertiveness on reinforced the belief that the military
these issues over the past five decades. worked best when it was given a wide
The turning point in civil-military rela­ berth on professional matters. The crises
tions was the war against China in 1962. of the 1960s and early 1970s prompted
Srinath Raghavan (srinath.raghavan@gmail In the aftermath of the war, the political the politicians to avoid searching discus­
com) is at the Centre for Policy Research, leadership came under intense attack for sions and arguments, and encouraged
New Delhi.
having interfered in military matters. the military to demand an expansive
12 m a y 12, 2012 v o l XLVii n o 19 BEE3 Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:44 UTC
A ll use subject to https://about.jstor.org/terms
COMMENTARY
“operational domain” of independence. attempt by the bureaucracy to keep the Defence Academy ( n d a ) provides a com­
The subsequent pattern of civil-military military out is overstated. In fact, when bination of undergraduate education
interaction in India is informed by the the idea of integrating the service head­ and pre-commission training. Officers
notion that civilians should eschew in­ quarters with the ministry was first joining through this route have limited en­
volvement in operational matters. mooted in the 1960s, then army chief gagement with their civilian contempo­
general J N Chaudhuri rejected it argu­ raries from the time they leave high
Inviolable Operational Domain? ing that the military should stay away school. To be sure, the services have a
The notion that there is an inviolable from the civilians. direct entry scheme which takes in
operational domain where the military’s But institutional dynamics are not suf­ officer cadets after their graduation from
writ runs supreme has been problematic. ficient to explain the current state of the university. But since the late 1980s
As a principle, it is rather a slippery one. civil-military relations. They need to be the senior ranks of the armed forces are
There are no clear boundary lines divid­ set against the backdrop of a disparity in overwhelmingly staffed by officers who
ing tactics, operations, strategy, and attitudes and values between the civilian have entered through the n d a channel.
policy. Even tactical actions could hold and military worlds (particularly that of Further, the military does little to pre­
important political implications. Be­ the respective elites). Indeed, there is a pare its officers for an alternate career,
sides, the key question is who decides growing civil-military “gap” in India after leaving the service, in the civilian
where the boundaries run. In practice, today. Such a gap has existed from the street. The army has a Directorate Gen­
the military has more or less insisted inception of the Republic. Interestingly eral of Resettlement, but even their most
that it should define what counts as the drafters of independent India’s Con­ sought-after programmes (usually a few
operational. This has enabled the mili­ stitution explicitly provided for the pos­ months in a good business school) do
tary, as we shall see, to trespass into sibility of conscription - a step that could not adequately equip officers for an in­
areas that should be the preserve of the have reduced the civil-military gap in the creasingly competitive employment mar­
political leadership. medium term. But the executive decided ket. In consequence, a sizeable number
What about the claim that the civilian not to enforce compulsory military ser­ end up in security sector jobs. A corol­
control has become “bureaucratic con­ vice in peacetime and to continue the lary of poor resettlement policies is that
trol”? The military’s resentment against tradition of a volunteer force. The subse­ many officers who attain pensionable
the bureaucracy goes back a long way. quent expansion of the gap can be traced service but face no prospects of career
As early as 1951, the first defence secre­ to developments in both the civilian and growth remain reluctant to retire. More­
tary of independent India, H M Patel, the military ends of the divide. over, many of them seek re-employment
observed that the military leadership after retirement. This too prevents a
deeply disliked the role of civilian bu­ Impact of Economic Changes reduction in the civil-military gap.
reaucrats in policy and administrative Among the former, the most important Service conditions, especially in the
matters alike.3 The Study Team on De­ changes have been economic. The liber­ army, have also accentuated the gap.
fence Matters set up by the first Admin­ alisation and rapid growth of the Indian The Indian military’s extensive network
istrative Reforms Commission of 1966 economy over the last two decades have of cantonments and family bases has tra­
noted that there was some misapprehen­ considerably increased the disparity bet­ ditionally served to physically seclude
sion that civilian control amounted to ween the economic and social profiles the military community and foster a dis­
“civil service control”.4 of the civilian and military elites. The tinctive social and institutional identity.
There is force to this argument, espe­ growing economic divide has been ac­ Over the last two decades, the army has
cially on the question of weapons pro­ companied by a wider normative gap as found itself increasingly committed to
curement and budgeting, which have well. Civilian society in India increasingly longer operational or “field” tours. This
come to be the stronghold of civilian values individual initiative, entrepreneur­ is mainly owing to the growing involve­
bureaucrats. Then again, it is certainly ial energy, and a willingness to transcend ment of the army in internal security op­
not the case that the military has been established boundaries - qualities that erations, including the raising of the all­
systematically excluded from policy­ underpin much of the progress made in arms Rashtriya Rifles formations.
making forums. The Defence Committee India since the early 1990s. However, This combination of these institutional
of the Cabinet and subsequently the these run counter to the military’s con­ and societal factors accounts for many of
Cabinet Committee on Security, and tinued emphasis on hierarchy, group val­ the problems in the civil-military rela­
the Joint Intelligence Committee (itself ues and organisational cohesion. tionship that have recently come to light.
under the Chiefs of Staff Committee for a Prominent factors exacerbating the But it is worth noting that there have
long time) have always had military rep­ divide from the military side are the re­ been other, more important, issues that
resentation. True these organisations cruitment, training and personnel policies have underlined the troubled nature of
have atrophied periodically, but that is a adopted by the military. The Indian mili­ civil-military relations. In many ways,
larger problem with interdepartmental tary recruits its officers at a much young­ the recent events are continuation of
institutions in the Indian government. er age than most other democracies that problematic trends that have been visible
The argument that there is a concerted have a volunteer force. The National for some time now.
Economic & Political w e e k ly DDES m a y 12, 2012 v o l x l v i i n o 19 13

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:44 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
Military Veto on Siachen toes on this matter persists to date. The V P Malik. The general recalled that he
Take the long-standing dispute with military, in effect, exercises a veto on a had commanded a division in counter­
Pakistan over the Siachen glacier. Of all critical foreign policy issue. insurgency operations in Manipur in early
the disputes between India and Pakistan, Consider next the controversy over 1990. During a meeting, the newly elect­
the Siachen issue is the most amenable to the Armed Forces (Special Powers) Act ed chief minister of the state conveyed to
a settlement. The area is of little strategic ( a f s p a ) . The a f s p a attracted public op­ Malik the peoples’ aversion to the a f s p a
value to either side. Several rounds of probrium following the kidnapping and and said that he would write to the central
talks on demilitarisation were held as murder of a Manipuri woman in 2004. government asking for the Act to be re­
part of the composite dialogue, but to Faced with a groundswell of protest, voked. Malik’s recollection of his response
no avail. The last rounds of discussions Prime Minister Manmohan Singh an­ is instructive: “I told the chief minister
indicated that the nub of the problem was nounced that he would consider replac­ that it was o k with me. I will pull out
New Delhi’s insistence that Islamabad ing the a f s p a with a more humane legis­ troops from the 60-odd posts, concen­
must record the current deployment of lation. Thereafter the prime minister trate them outside Manipur and train
Pakistani and Indian troops on a map appointed a committee headed by jus­ them for their primary role of fighting a
that will be attached to the agreement tice B P Jeevan Reddy. The committee conventional war”.5 In other words, the
on troop withdrawals. The Indian army was mandated to advise whether the Act army’s response is framed in terms of ei­
considers this an essential hedge against should be amended or replaced. The ther a f s p a or no counter-insurgency op­
the possibility that Pakistan might occupy committee submitted its report in June erations. Clearly, the military has rather
the areas vacated by Indian forces; for 2005. It recommended repealing the an expansive definition of what consti­
retaking the glacier militarily would be a f s p a . Around the same time, the sec­ tutes the operational domain. Such a defi­
a costly affair. In fact, an army chief, ond Administrative Reforms Commission nition certainly impinges on the domain of
general J J Singh, went on the record to also recommended scrapping the Act. the political leadership. It remains to be
express his opposition to any deal that The army, however, resisted any such seen whether the government will eventu­
did not meet this stipulation. It seems safe move. Its framing of the issue can be ally move to amend, if not scrap, this Act.
to assume that the political leadership’s glimpsed from an article on this issue The military’s willingness to con­
wariness about treading the military’s written by a retired army chief, general strain the government’s stance on such

INSTITUTE OF ECONOMIC GROWTH, DELHI


The Institute of Economic Growth seeks nominations for the post of Director. The candidates must have an
outstanding academic record, with a PhD in Economics, Sociology or Demography and at least 15 years of research
and administrative experience, with substantial publications in terms of books and papers in referred journals. She/
he should be under 60 years of age. The appointment will be for three years in the first instance, with eligibility
for a second term of three years, but in no case beyond the age of 65. The candidate is expected to take up the
position in early September 2012.

The IEG is an autonomous research and training Institute of excellence established in 1952. The Director is the
Institute’s Chief Executive, responsible for guiding its research and administrative activities, within the general
guidelines laid down by lEG’s Governing body. It is a challenging position requiring the ability to further lEG’s
reputation of academic excellence and policy relevance, to work with other professionals within and outside the
Institute, and to maintain close liaison with Government ministries and other bodies.

The Selection Committee will adopt its own procedure for selection and make a recommendation to the Board of
Governors. Selections neffd not be confined to those who are nominated.

Nominations should be accompanied by a complete CV and a justification for why the candidate is especially
suitable for the post. These should reach the Chairman, Selection Committee, Institute of Economic Growth,
University of Delhi Enclave, Delhi 110007, India b y May 30, 2012 or email:desaind@ gm ail.com

Nitin Desai
B-63 Defence Colony
First Floor
New Delhi-110024

l4 m a y 12, 2012 v o l x l v i i n o 19 I33&I Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:44 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
political issues and the government’s will need a political leadership that is Defence, 18 May 1973; “Note on Incident” by
P V R Rao, 5 September 1965 in Y D Gundevia
unwillingness to overrule the military willing to assert its prerogatives and take Papers, Subject File 7, Nehru Memorial Museum
point to the kinds of problems that are an active interest in matters pertaining and Library.
3 H M Patel to General Roy Bucher, 23 February
being posed by the conjunction of societal to defence and national security. 1951, Roy Bucher Papers, 7901/87-33, National
and institutional trends outlined above. Army Museum, London.
Restoring the health of civil-military re­ n o t e s ____________________ ______________________ 4 Cited in A G Noorani, “The Doctrine of Civilian
Control” in A G Noorani, Constitutional Ques­
lations will require measures both to ad­ 1 For a detailed account, see, Srinath Raghavan, tions and Citizens' Rights (New Delhi: Oxford
dress the growing civil-military gap and War and Peace in Modern India: A Strategic His­ University Press), 2005, p 392.
tory o f the Nehru Years (Ranikhet: Permanent 5 General V P Malik, “Revisiting AFSPA: Don’t
to correct the institutional imbalances Black), 2010, Chapter 8. Blame It for Kashmir Problems”, The Tribune,
that currently prevail. Above all, this 2 P V R Rao to Additional Secretary, Ministry of 20 September 2010.

Moving Constitutional Borders centre’s armed forces, as a matter of policy


such powers threaten India’s federalist
structure, risk massive civil liberties
The Border Security Force violations and could well end in an
(Amendment) Bill, 2011 authoritarian set-up.

Border Security Force


The b s f was created after the 1965 Indo-
SAHRDC Pak war to guard India’s international
borders (see website of Border Security
The Border Security Force ntil recendy, the centre’s encroach­ Force). In 1968, Parliament passed the
(Amendment) Bill which seeks
to expand its powers along with
those of all the other armed
U ment on state powers went large­
ly unnoticed. By surreptitiously
granting its armed forces policing powers
of search, seizure and arrest that would
Border Security Force Act to create a
sense of security along the borders, and
to prevent transborder crime, smuggling
and illegal entry or exit from India ( b s f
forces and the Intelligence Bureau allow them to initiate criminal complaints, Act, Statement of Objects). The b s f ’s
is unconstitutional and violates the centre is infringing upon constitu­ territorial jurisdiction is limited to with­
tional federalism (Indian Express 2010). in 80 kms in Gujarat, 50 kms in Rajasthan
the spirit of India’s federalist
It appears to be conducting a concerted and 15 kms in West Bengal, Assam and
system. This is akin to creating campaign to establish centralised police Punjab, and has jurisdiction throughout
a centralised police force that forces, having already passed legislation Jammu and Kashmir and the north-east
can use excessive force with no granting policing powers to the Indo- (154th Standing Committee Report 2011,
Tibetan Border Police ( i t b p ) , the Sashastra para 1.1.02). Despite this restricted man­
repercussion and can all too
Seema Bal and the Border Security date, 13 of the b s f ’s 168 battalions are
easily resort to heavy-handed Force ( b s f ) . 1 It was only after an execu­ engaged in internal security or anti-
tactics to control rather than tive order sought to create the National Naxalite operations in the heartland
protect a population. Counter-Terrorism Centre ( n c t c ) as a (ibid, para 3 .4 * 3 ; Jain 2012).
division of the Intelligence Bureau ( i b ) The Act does not automatically grant
with policing powers that the states policing powers to the b s f , although
took notice of this covert campaign Section 139 reserved the right of the
( s a h r d c 2012). The debates are now centre to do so for the prevention or
focused on the effort to extend the apprehension of any cognisable offence
jurisdiction of the b s f , which already has by notification in the Official Gazette.
police powers along India’s international The centre granted search, seizure and
borders, to permit it to work through­ arrest powers to the b s f by notification
out India, as well as on the extension under the Customs Act, Passport Act, the
of policing powers to the Railway Code of Criminal Procedure,2 the Nar­
Protection Force. cotics, Drugs, Psychotropic Substances
The campaign by the centre to establish Act and the Arms Act (154th Standing
centralised police forces violates the Committee Report 2011, para 1.1.2).
federal scheme of the Constitution. Even The amendment to the b s f Act seeks
in the unlikely event that a constitutional to expand the territorial jurisdiction of
SAHRDC is the South Asia Human Rights basis can be located to justify the the b s f to function in “any part of the
Documentation Centre, New Delhi.
expansion of policing powers to the territory” of India to give the b s f a legal
Economic & Political w e e k ly BBSS m a y 12, 2012 v o l x l v i i n o 19 15

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:44 UTC
A ll use subject to https://about.jstor.org/terms
COMMENTARY

basis for its current extraterritorial de­ emergency terminates. The third excep­ armed forces to aid them (Sarkaria Com­
ployment. The minister of home affairs tion falls under Article 356; this provision mission 1988, para 7.3.07; Second a r c
explained that the b s f along with other permits Parliament to assume the func­ 2007, para 8.2.11 and 8.2.13). Absent a
union armed forces have been moved tions of the State legislature in case of situation falling within one of the three
into internal areas at the request of failure of the constitutional machinery. The exceptions, there is no constitutional ba­
states to help them respond to communal grant of police powers to the b s f (and all sis for the b s f encroaching upon the
violence, civil unrest, and Naxalite vio­ other armed forces and the i b ) does not powers of the state government in the
lence and that he anticipates that these fall within any of these exceptions. fields of “police” or “public order” (Sarka­
forces can be used to manage riots and The centre appears to be supporting ria Commission 1988,7.7.19).
election-related unrest (para 1.1.3). An its claim to police powers for its armed
intended consequence of the amendment forces by relying on List 11Entry 2, which Policy Considerations
is to expand the b s f ’s policing functions states that police is a state function Even if by some dubious process of legal
to these areas as well (para 3.4.2). The “subject to” the “deployment of armed alchemy the Constitution can be read to
minister of home affairs explained that forces by the union in aid of civil power” permit the centre to assign itself policing
the centre, the b s f , and the states under Entry 2 A of List i.3 By itself, the powers, as a matter of democratic policy,
requesting the b s f ’s aid felt that such “subject to” language does not create such appropriation should be avoided.
police powers were necessary for the b s f an independent power of the centre to Granting the b s f policing powers violates
to accomplish its goals (para 1.5). supplant the state’s policing authority and the spirit of India’s federalist system, is
While the centre is correct about the jurisdiction. It can only do so if permitted likely to lead to excessive use of force
urgent need to give a legal basis for the under Article 246 or the exceptions under and could institutionalise the authori­
extraterritorial operation of the b s f , the Articles 249, 250 read with 352 and 353, tarian predilections of India’s security
consequent expansion of police powers or 356. In Naga Peoples' Movement of establishment.
is both unconstitutional and undesirable Human Rights vs Union of India, (1998)
as a matter of policy. 2 see 109, the Supreme Court stated: Federalism: India’s Constitution Article 1
the word aid, postulates the existence of expressly states that India is a union of
Shifting the authority to be aided. This would mean that states and, although the word “federal”
Constitutional Goalposts even after deployment of armed forces, civil is nowhere mentioned, federalism is
The centre’s effort to expand the powers power will continue to function. The power to embodied in the Constitution’s design
make a law providing for deployment of the
of the b s f (along with all of the other (Commission of Centre-State Relations
armed forces of the Union in aid of the civil
armed forces and the i b ) is unconstitu­ power in the State does not comprehend the 2010, para 8.1.02). Consistent with the
tional. Under Article 246 of India’s Con­ power to enact a law which would enable the structures of other federalist democra­
stitution, legislative powers are divided armed forces of the Union to supplant or act as cies, law and order and policing func­
between the centre and states across the a substitute for the civil power in the State. tions should belong to the states, not the
Union List (List 1), State List (List 11) and Hence, the impact of 2 a is that armed centre (Second a r c 2007, para 8.1.4.1).
the Concurrent List (List 111). List 11 forces are deployed “in aid of civil power” One of the primary reasons is that it is
grants states exclusive jurisdiction over only to quell grave public order problems easier for the local governments to tailor
public order and the police (Entries 1-2). or internal disturbances (Sarkaria Com­ their police forces to suit local require­
The Constitution provides for only three mission 1988, para 7.5.01). ments. A local police force is likely to be
exceptions to this exclusive jurisdiction. The union government also seems to more responsive to the local community
The first is under Article 249, under rely on Article 355, which places a duty and to have its power checked when it is
which two-thirds of the members of the on the centre to protect states from abusive (Stuntz 2012: 671). It is far easier
Council of States (the Rajya Sabha) can internal disturbances, to justify central to hold local politicians accountable dur­
adopt a resolution granting the centre policing powers.4 This provision, unlike ing elections for abuses than national
such jurisdiction because “it is necessary Articles 353 and 356, however, does not politicians (ibid). The National Police
or expedient in national interest that grant the centre the power to take over Commission reached a similar conclusion
Parliament should make laws with respect state functions. Both the Sarkaria Com­ when it noted how unpopular the Central
to any matter enumerated in the State mission, which was established to examine Reserve Police Force ( c r p f ) had grown
List”. Such legislation is valid up to one centre-state relations, and the Adminis­ in the north-east. It found that without
year, subject to renewal. The second trative Reforms Commission ( a r c ) , which local disciplinary control over the c r p f , it
exception is Article 250 read together examined the jurisdiction of the centre lacked the will and commitment to achieve
with Articles 352 and 353, relating to to respond to public order problems, agree its objectives ( n p c 1981, para 59.25).
emergency provisions. Under these pro­ that the Constitution does not permit the The a r c along with the Padmanabhaiah
visions, the centre can legislate on behalf centre to employ Article 355 to supersede Committee rejected granting the centre
of a state government only after a formal or exclude the state police or other concurrent police and public order
proclamation of an emergency. Any authorities responsible for maintenance powers not only because of federalism
such legislation applies only until the of public order but can merely deploy concerns but for fear that the central
16 MAY 12, 2012 VOL XLVII NO 19 EBB3 Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:45 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
police forces will grab jurisdiction over local knowledge that the police would As to the politicisation component,
the most important, most serious, or the use to diffuse a tense situation (ibid). In both India’s history and the current use
most publicised crimes, which would un­ recognition of these differences, the Na­ of other security apparatus to deflect
dermine the authority, credibility and tional Police Commission recommended opposition suggests that the bsf and
morale of the state police (Second arc that “[T]he army as far as possible other armed forces, if permitted police
2007, paras 8.3.5 and 8.3.12). The arc should not be used in day-to-day polic­ powers, could be used by the centre to
also concluded that concurrent powers ing” (npc 1981, para 59.17). gain authoritarian control. During the
“would lead to duality of responsibility, Emergency, the decisions made on arrest
which may be detrimental to the effi­ Centralised Police and Authoritarian­ and release of persons was based entirely
cient handling of public order situa­ ism: An equally strong policy argument on political factors (chri 1999). As the
tions” (Second arc 2007,8.1.4.2). for rejecting the grant of police powers chairman of the National Police Com­
There are two primary justifications to the bsf , along with all other armed mission pointed out, “If there had been
for allowing the centre policing powers. forces and the Intelligence Bureau, is no Emergency, there would have been
The first is that it is better resourced, that it effectively creates a centralised no Police Commission” (ibid.)
which could make it more effective police force that together with impunity Currently, the government stands ac­
(8.3.1). This justification, however, cuts and politicisation, risks authoritarianism cused of using its considerable resources
both ways as under-resourced police (Bayley 1999: 9; Paun 2007: 7). A centra­ to monitor political opposition leader­
forces do not have the time, manpower lised police force able to use excessive force ship (Federation of American Scientists
or money to pursue weak cases or use its with no repercussion can all too easily 2011) to the point that there is a popular
powers to harass people (Stuntz 2012: resort to heavy-handed tactics to control, perception that intelligence gathering
674). Further, the Padmanabhaiah Com­ rather than protect, a population. The focuses more on politicians than on na­
mittee ultimately concluded that allow­ impact on civil liberties and democracies tional security and at the expense of the
ing the centre a policing role would only is multiplied in situations where such latter.8The intelligence community also
increase the resource problem as the police forces are used to silence political targets its civil society opposition to
centre and the states would be compet­ opposition and popular dissent (ibid). stifle their criticism. For example, the ib
ing for them (arc 2007, para 8.3.7). The Unfortunately the seeds of such authori­ recently accused numerous civil society
second justification for granting the cen­ tarianism in the centre’s security apparatus, organisations, including respected or­
tre policing functions is that state police including the bsf , already exist. ganisations, of complicity with Maoist
find it difficult to investigate crimes that Under Section 197 of the Criminal Pro­ insurgents and possibly of being front
cross state or international borders. The cedure Code 1973, police can be prose­ organisations for them (One World
states already have a track record of cuted only with the permission of the South Asia 2010). Such labelling serves
effective cooperation (8.3.1) and it is state or central government. The govern­ as an implicit threat to the groups to be
always open to state governments to ment rarely grants permission (Amnesty quiet or risk prosecution or punishment
transfer the case to the Central Bureau 2009) and even when it does, few are for supporting the insurgency. The com­
of Investigation. Ultimately, the arc and convicted or receive appropriate punish­ bination of centralised police forces, im­
the Padmanabhaiah Committee rejected ment (Varadarajan and Joshi 2002). For punity, and politicisation of the centre’s
these justifications. example, after the Bijbehara massacre6 in security apparatus indicates a very real
1993, the National Human Rights Com­ risk of promoting authoritarian practices
Armed Forces, Policing and Civil mission (nhrc ) sought to prosecute the if the centre’s campaign to gain police
Liberties: As history has shown, grant­ bsf officials involved. The government powers continues.
ing the armed forces policing powers is refused permission, relying instead on a
likely to result in the excessive use of trial by a court set up under the bsf Act Conclusions
force and cause severe civil liberties vio­ that ended in acquittals (ibid). The gov­ The centre’s campaign to expand its police
lations.5 Military and policing missions ernment rejected the nh rc ’s request to powers through the bsf and its other
and values are different: examine trial transcripts7 and the nhrc armed forces is not only unconstitutional
An army’s mission is to rapidly destroy stopped pressing for the transcripts in the but threatens India’s federalist structure
enemies of a different nationality, while law Supreme Court, which ended in impunity and could lead to severe civil liberties
enforcement is supposed to serve and pro­
(Correspondence on file with sahrdc ). violations and authoritarian rule.
tect fellow [citizens]...Military training is
antithetical to the values of due process...on As of 2010, despite numerous claims
which civilian law enforcement must be that the bsf used excessive violence notes ________________________________
founded (c a t o 1997). along the Bangladesh border, there has 1 These powers were also granted to the National
The bsf is trained to protect the borders, been no publicly known prosecution of a Security Guard (NSG), Central Reserve Police
Force (CRPF), Central Industrial Security Force
not to police Indian citizens (Marwah bsf official (hrw 2010). The expansion (CISF), and Assam Rifles, Indian Express,
1998: 75). These differences are likely to of the bsf ’s territorial jurisdiction risks 2010.
2 The relevant sections of the CRPC are: Sec­
lead to the excessive use of force, parti­ the expansion of civil liberties violations
tions 41 (1), 46, 47, 48, 49, 51 (l), 52, 53, 74,
cularly when the armed force lacks the and the impunity that comes with them. 100,102,129,149,150,151 and 152.

Economic & Political w e e k ly DDS3 m a y 12, 2012 v o l x l v i i n o 19 17

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:45 UTC
A ll use subject to https://about.jstor.org/terms
3 Entry 2 A was inserted by the 4 2 nd Amendment. killing 37 people during protests at the Hazrat- CATO Handbook for Congress 1 0 5 th Congress
It was meant to supplement Article 25 7 -A, which bal mosque. (1 9 9 7 ): “The Expanding Federal Police Power”,
enabled the Centre to deploy armed forces of the 7 HRF/19/ 0 0 , 2 4 April 2 0 0 0 , Justice and account­ viewed on 2 3 April 2 0 1 2 , http://www.cato.org/
Union or any other force of the Union for deal­ ability in Kashmir - Chasing the Mirage. Avail­ pubs/handbook/hbi0 5 -i7 .html.
ing with a grave situation of law and order in a able at http://www.hrdc.net/sahrdc/hrfea- Commonwealth Human Rights Initiative, Semi­
state, presumably including policing functions. tures/HRFi9 .htm nar-4 8 3 (1 9 9 9 ): “A Requiem for the NPC?”,
Article 2 5 7 -A was repealed by the 4 4 th Amend­ 8 As one journalist editorialised in a local paper: November, viewed on 2 2 April 2 0 1 2 , http://
ment, but entry 2 A was left behind by what was www.humanrightsinitiative.org/programs/aj/
Central bodies such as the IB had been
evidently a bureaucratic sleight of hand. police/papers/gpj/requiem_npc.pdf.
nudged into assuming that providing politi­
From a plain reading of the entry it follows that, cal tittle-tattle was as important as ensur­ Commission of Centre-State Relations (2 0 1 0 ):
the deployment shall only happen “in aid of ing the country is better protected against “Commission of Centre State Relations Report”,
civil power”, implying that the state has to seek the real enemy. Indian intelligence agencies Volume I-Evolution of Centre-State Relations in
the aid. As Chidambaram insisted on a discus­ failed to anticipate most of the bomb blasts India, March, viewed on 2 0 April 2 0 1 2 , http://
sion on the bill in Rajya Sabha, arguing that that devastated Indian cities in the past four interstatecouncil.nic.in/volumei.pdf.
“the Constitution expressly states that Central years. Yet they demonstrated their profes­
forces can be deployed in a state only upon req­ Federation of American Scientists (2011 ): “Intelligence
sional prowess by undertaking a very suc­ Bureaus”, viewed on 2 3 April 2 0 1 2 , http.y/www.
uisition by the state government concerned” cessful profiling operation of members of
(Jain 2 0 1 2 ). It is dubious that the government globalsecurity.org/intell/world/india/ib.htm.
parliament in the run-up to the trust vote in
refuses to put in an explicit assurance, making Human Rights Watch, Mexico (2011 ): “Widespread
the Lok Sabha on July 2 2 (2 0 0 8 ).
the state government’s consent mandatory. Rights Abuses in ‘War on Drugs’”.
Swapan Dasgupta, “The Indolent Giant - India
4 There is an oblique reference to Article 355 Human Rights Watch (2 0 1 0 ): “Trigger Happy:
Must Modernise Its Intelligence Gathering
through reference to the need for central law and Machinery”, The Telegraph, 9 January 2 0 0 9 . Excessive Use of Force by Indian Troops at the
order powers to respond to internal disturbances See also, Bibhuti Bhushan Nandy, former addi­ Bangladesh Border”.
in the 154 th Standing Committee Report, para.2 . tional secretary, cabinent secretariat, R&AW Indian Express (2 0 1 0 ): “Paramilitary Forces Get
5 For example, in 1 9 7 0 the United States National and direct general (redt), Indo-Tibetan Border Powers of Search, Seizure and Arrest under
Home Guard fired on protestors at Kent State Police, “R&AW and the Cooked”, The Hindustan Arms Act”, The Indian Express, 31 December.
University killing several protestors. CATO. In Times, 21 June 2 0 0 2 . Jain, Bharati (2 0 1 2 ): “Chief Ministers to Discuss
Mexico, there has been a notable increase in Federalism on April 16 ”, 14 April, viewed on
reports of arbitrary arrests and other human 21 April 2 0 1 2 , http://articles.economictimes.
rights abuses since the military has been deployed R E F E R E N C E S ___________________________________ indiatimes.com/2 0 1 2 -0 4 -14/new s/ 3 1 3 4 2 0 5 6 _ 1_
in the “war on drugs” As Jose Miguel Vivanco, internal-security-bsf-personnel-chief-ministers.
Americas Director at Human Rights Watch Amnesty International (2 0 0 9 ): “Amnesty Inter­
national Report 2 0 0 9 : State of the World’s Marwah, Ved (1 9 9 8 ): “Police and Paramilitary
said, “Instead of reducing violence, Mexico’s \var
Human Rights-India”, viewed on 2 3 April 2 0 1 2 , Structure” in Bharat Verma (ed.), Indian Defence
on drugs’ has resulted in a dramatic increase in
http://report 2 0 0 9 .amnesty.0 rg/en/regi0 ns/ Review, 13 , 7 3 -7 7 .
killings, torture, and other appalling abuses by
security forces, which only make the climate of asia-pacific/india. Naga Peoples’Movement of Human Rights vs Union
lawlessness and fear worse in many parts of the Bayley, David H (1 9 9 9 ): “Policing: The World Stage” in of India, (1 9 9 8 ) 2 SCC1 0 9 .
country.” Human Rights Watch, Mexico: Wide­ R I Mawby (ed.), Policing across the World: Issues National Police Commission (1981 ): “Seventh Report”
spread Rights Abuses in ‘War on Drugs’ (2011 ). for the Twenty-First Century (Oxon: Routledge). “One Hundred and Fifty Fourth Report on
6 On 2 2 October 1 9 9 3 , the BSF was accused of Border Security Force: “History”, viewed on 2 3 April the Border Security Force (Amendment) Bill,
firing at a crowd without provocation and 2 0 1 2 , http://bsf.gov.in/Pages/History.aspx. 2011 ”, (154 th) Department-Related Parliamentary

V.V.GIRI NATIONAL LABOUR INSTITUTE


(An A utonom ous Body under the
Ministry of Labour & E m ploym ent,G ovt.of iNDIA)
A d v ertise m e n t fo r A p p licatio n s/ N o m inatio ns fo r V.V.Giri
M em orial Aw ard-2011 in L ab o u r and E m p lo ym en t
V.V.Giri National Labour Institute (W GNLI) is an autonomous body under the Ministry of Labour and
Employment,Government of India.This is a premier national level Institute mandated to further the cause of labour
welfare through training,research and education.Since its inception in 1974,the Institute has been engaged in
research,training,education and publication activities to reach all those who are concerned with various aspects
of labour,both in the organized and unorganized sectors.
In furtherance to the mandated objectives of this Institute, it has been decided to confer a special award - V. V.Giri
Memorial Award-2011 in Labour and Employment.This award was instituted in the year 2008.The award for
2011 would be presented to the author of outstanding research in the area of labour.The award will carry a cash
prize o f^ l lakh and a citation.The theme of the Award for the year 2011 is “Research on Agrarian Relations and
Rural Labour”.
Scholars and labour practitioners are all invited to apply for consideration for this Award.Interested applicants
should provide complete details of their research work in the identified area,which is to be considered for this
Award,along with copies of the published work and an abstract of not more than 500 words elaborating upon the
conclusions in the particular research work and its wider applicability in agrarian relations and rural labour.The
Institute also welcomes nominations from persons other than the authors of the research work being considered
for the Award.In such cases,the proposal should furnish details as specified above.Signed applications /
nominations along with full contact details may be forwarded so as to reach the Director General,V.V.Giri
National Labour Institute,Sector-24,NOIDA.Distt.Gautam Budh Nagar (U.P.) and also by e-mail to
directoraeneralvvanli@qmail.com by June 12.2012.
The Institute,the General Council and the Jury reserve the right to accept applications / nominations or reject the
same,if found incomplete in any respect.They also hold the right to consider any nomination other than those
received through this advertisement.Further.the Institute also holds the right to consider the life-time contribution
of experts,if it is found appropriate._______________________________________________________________

18 MAY 1 2 , 2 0 1 2 VOL XLVII NO 19 Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:45 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
Standing Committee on Home Affairs (3 Novem­ Police Reform”, MA Thesis, University of The Creation of the Indian Stasi”, Economic &
ber 2011), Parliament of India, Rajya Sabha, Berlin. Political Weekly, Vo 47,17 March.
viewed on 21 April 2012, http://www.prsindia. Sarkaria Commission (1988): “Report of the Stuntz, William J (2012): “Terrorism, Federalism
org/uploads/media/BSF/SCR%2oBorder%2o Commission on Centre-State Relations”, viewed and Police Misconduct”, Harvard Journal of
Security.pdf. on 20 April 2012, http://interstatecouncil.nic.in. Law and Policy, 25: 665-79.
One World South Asia, “India: Rights Organi­ Second Administrative Reforms Commission (2007): Varadarajan, Siddharth and Manoj Joshi (2002):
sations Face Government Backlash”, 10 June 2010, “5th Report on Public Order”, June, viewed on “BSF Record: Guilty Are Seldom Punished”,
viewed on 21 April 2012, http://southasia.one- 20 April 2012, http://arc.gov.in/5th%20REPORT. The Times of India, 21 April, viewed on 25 April
world.net/todaysheadlines/india-rights-organi- pdf. 2012, http://articles.timesofindia.indiatimes.
sations-face-government-backlash. South Asia Human Rights Documentation Centre com /2oo2-04-2i/india/27ii27i6_i_bsf-m en-
Paun, Christopher (2007): “Democratisation and (2012): “The National Counter Terrorism Centre: jawan-security-force

Norwegian Child Services welfare system, family and child, which


is an outcome of a particular political
and cultural enterprise. This state-child
A Tale o f Ethnocentric Hegemony relationship is based on paternalistic
and authoritarian notions of childhood,
where the State is legislated to exercise
JA V A ID R A S H ID , AALYA A M IN ________________ power, control and discipline through
welfare. Moreover, the n c w s is used as a
The dominant child policy eyond being a physical state, tool to “discipline” and “civilise” immi­
paradigm conceives children as
uncritical, passive and vulnerable
beings, who must be subject to
B childhood is a complex and very
diverse phase of life influenced by
sociocultural, politico-economic and
regional factors. Notions of childhood
grant, non-white and non-Nordic people
by separating their children from their
natural environments and putting them
in foster homes. This approach, seem­
the state’s care, power and greatly vary in relation to space and time. ingly demonstrating the state’s sensitivi­
domination. Through the There is emerging ethnographic evidence ty towards child welfare, is inspired by
(Jenks 1996; James 1993; Hardyment deep political, economical, ideological
example of the Norwegian Child
1995; Boyden 2003; Hart and Tyrer and ethnocentric biases.
Welfare Services, this article 2006; Prout 2008) that childhood is not This discussion places the “India-
identifies the underlying political “a monolith” or “a universal” normative Norway child row” in the context of
and ideological agendas of the category but a “socially constructed” broader debates on cultural and ethno­
phase of human life that is deeply em­ centric hegemony. Further, it attempts
child protection industry. It also
bedded in structural contexts. But the to understand the political economy of
argues that western child Norwegian Child Welfare Services ( n c w s ) , the global child welfare industry and
protection policies often act as which was in the limelight recently for deconstruct the normative notions of
instruments of oppression to taking away two children from a non­ childhood that are being globalised by
resident Indian ( n r i ) couple and putting the west, particularly by exporting them
forcibly assimilate immigrants,
them in a foster home, brushed aside all to developing nations through child
especially from the East. this evidence and the provisions of the rights and humanitarian agencies.
United Nations Convention on the Rights
of the Child ( u n c r c ) . The fundamental India-Norway Child Row
concepts that inform the thinking of the In the now well-known case, in May
n c w s are drawn from the works of Kari 2011, a three-year-old son and one-year-
Killen (1991, 1996), who has authored old daughter of an n r i couple were taken
several texts on the neglect and abuse of away by the n c w s and put into separate
children. Killen’s work has been criti­ foster homes.1 “Force feeding”, “inappro­
cised for lacking intellectual rigour and priate rearing” and “neglect” were the
a sound empirical basis. Interestingly, allegations levelled against the parents.
his doctoral thesis was based on the The authorities informed them that
We are grateful to K R Nayar ( j n u ) , Archana
study of a sample group of just 17 indi­ their children would remain in foster care
Dassi ( j m i ) and Suhas Chakma ( a c h r ) for their
critical inputs and invaluable suggestions. viduals. Nonetheless, these problematic until they reached the age of 18 and that
Thanks are also due to Tenzing, Yousuf, Iqball, and largely unfounded concepts continue they could only meet them twice a year
Rafia, Raashida and Shugufta for their comments. to direct the orientation of the n c w s . for an hour. The objections of the par­
Javaid Rashid (Jamid.mswku@gmail.com ) is at The n c w s does not recognise influen­ ents to this remained unheard and the
Jawaharlal Nehru University, New Delhi and tial and comprehensive scientific studies issue made head lines in January 2012
Aalya Amin (aalya.msw@gmail.com) is at but advocates and rationalises a new only when they requested the Gov­
Jamia Millia Islamia, New Delhi.
compulsory relationship between the ernment of India to intervene.2 This
Economic & Political w e e k l y E33Q m a y 12, 2012 v o l x l v i i n o 19 19

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:48 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
case need not be seen in isolation as the or neglect; mental health experts, whose brought issues on delinquency in children
n c w s has a history of intervening in reports are used to categorise or label to the fore. This led to increasing attention
family affairs and separating children parents and children as mentally or being paid to the school as an institution
from their parents, which it arbitrarily psychologically ill; and county courts, and mechanism to control, discipline and
defines as “in the best interest of the which have close connections with ex­ regulate the behaviour of children. The
child”. These interventions mostly take perts and welfare officers and act in ac­ chronologies of these constructions can
place in the affairs of non-white and cordance with the wishes of the n c w s . be located in conceptually and ideologi­
immigrant families. The n c w s is actually part of a much cally diverse public identities, ranging
According to Statistics Norway (2011),3 bigger interventionist welfare industry from the Rousseauean “natural child”,
in 2007, the n c w s intervened in 11,700 that is tied to the global economic and the Romanticised “innocent child”, the
cases. In 2008, there was a 3.8% increase neo-liberal system. Evangelical “polluted child” and the eco­
in the number of cases. Almost 50,000 The politics around child rights or nomically “valueless child” to the delin­
children received assistance from the welfare has become an integral part of quent “vulnerable child”, the schooled
n c w s in 2010. Recent figures show that state discourses in the recent times. The “industrial child”, the individual “utili­
Norway has more than 10,000 children state “owns” children and proudly puts tarian child”, the psychological “develop­
in foster care or homes run by the n c w s . them in categories of “national resourc­ mental child”, the state’s “national child”
It has been estimated that nearly 80% of es”, “future citizens” and “potential enti­ and the wetfare “idealised child” (Hendrick
the complaints made to the n c w s end up ties” that have to be regulated and chan­ 1992; James 1993).
in children being taken away from their nelised for national and cultural growth. With empirical inputs from Piagetian
parents and put in foster homes.4 A re­ This conceptualisation of children and developmental psychology and the trans­
port released by the Norwegian Central childhood has roots in changing global formation of the state into a more neo­
Bureau of Statistics5 says that children political and economic circumstances, liberal entity, children came to be seen
of immigrant parents are three times where modern states are now imbued as “human becomings” and “partial
more likely to be sent into foster care with western capitalistic and neo-liberal adults” who were important because of
than others. The foster parents, who are beliefs (Hendrick 1992; Boyden 2003). what they would become, not because of
generally Norwegian, are supposed to So interventionist humanitarianism, what they already were (Qvortrup 1991).
possess the best and appropriate parent­ based on a sense of cultural superiority They were seen as uncritical foot sol­
ing styles that are in the “best interest” and normative notions of childhood, diers of adult hegemony, who were led
of the children. They are paid €30,000 feels entitled to crack down on immi­ passively into adulthood and lived to
(Rs 20,79,875) per annum plus allow­ grants, disregarding their sociocultural recreate particular statist and ideologi­
ances and other benefits for each child and economic contexts. cal discourses. Hence, the modern con­
they take care of.6 struction of childhood is a product of
The n c w s ’ sensitivity to child welfare Conceptualisations of Childhood free-market, liberal capitalism and'the
seems to vanish when there are com­ It is quite pertinent to briefly trace the emergence of the modern nation state
plaints of abuse, neglect or exploitation history of how children have been con­ with its authoritarian child-focused in­
of children in foster care. Such abuse of­ ceptualised in different epochs. The his­ stitutions. Child protection and welfare
ten remains unreported, undocumented torical trajectory shows a variety of con­ policies emanate from globalised, west­
and hidden from the national and inter­ ceptualisations of childhood that were ern constructions of childhood that in­
national community. A survey conduct­ shaped as responses to different social, trinsically have an ethnocentric bias and
ed in 2005 by Norwegian Social Re­ economic, religious and political cir­ are plagued by hegemonic authoritari­
search ( n o v a ) , a social science research cumstances. In the 19th century, con­ anism and unrelated individualism. The
institute based in Oslo, interviewed 400 structions of childhood were influenced resulting positivist and decontextualised
children in a care institution and report­ by Jean-Jacques Rousseau’s writings approach appallingly neglects the vari­
ed that 23% of them expressed feelings emphasising the “natural goodness” of ance and diversity of childhood that
of insecurity and fear, 33 children said children; the Romantic movement’s “in­ children experience in different cultures
they had been physically abused by the nocence” of children; and the Evangeli­ across the globe.
staff and 12 said they had been sexually cal notion of children being born in Reflecting Newtonian notions of uni­
assaulted by persons working in the in­ “original sin”. The industrial revolution versality and conformity (as in mechanics),
stitution. Norway’s Ministry of Children hugely influenced the state’s and society’s these conceptualisations depict social
and Families did not carry out any inves­ perceptions on children and their status relationships and contexts as fixed by
tigation into this report. The reality is in the social order. Children were seen laws of nature, where the child is seen as
that the foster care industry is an expand­ as “economically valueless”, incompe­ a “passive” representation of the future,
ing one in Scandinavian countries such tent and dependent entities in need of subject to adult power and authority. A
as Norway. To sustain it, the n c w s has a adult care and protection. Growing neglect of the cultures, contexts and fac­
closely tied-up network of social work­ urbanisation, migration and irregular tors that affect the lives of children and
ers, who observe families to detect abuse growth during the industrial revolution the meaning they attach to the institutions
20 MAY 1 2 , 201 2 VOL XLVII NO 19 H im Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:48 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
of family, kinship and neighbourhood family’s parenting norms. Hegemonic Such an approach is in violation of the
pervades paternalistic state perspec­ interpretations of the “best interest of recommendation (Article 30) that
u n c r c ’s
tives. The state stresses conformity to the child” by the Norwegian authorities in the cases where children are moved to
such perspectives as this is essential to defeat the very logic of the provisions of foster homes, their rehabilitation in a
maintain its theoretical and practical the u n c r c . Norway’s Child Protection natural family environment and culture
spaces, within which children are “mut­ Act of 1999 provides the n c w s with “the should be a priority. Besides, a deadly
ed” or “silenced” subjects (Hendrick right and duty to conduct investiga­ passivity is enforced on the children
1992; Prout 2008). Any dissent, asser­ tions”. Invoking this, the authorities use throughout the proceedings in child pro­
tion or non-conformity means deviance child protection for monitoring and in­ tection cases. There is no place for their
or failure. In a similar vein, the n c w s ra­ timidating non-white and non-Nordic voices and perspectives in the whole
tionalises and enforces its authoritarian immigrants. process, which contravenes the u n c r c ’s
child policies and removes children Child protection in Norway has become emphasis on children’s participation in
from their parents and puts them in a huge political and economic activity decisions that affect their lives. An official
state-certified foster homes or care cen­ that includes forcibly placing children in Norwegian report9 on county social wel­
tres. Such an approach demonises the foster homes run by natives who are fare boards rather shockingly argues,
diverse cultural identities of non-whites highly paid for each child they take care Biological parentage, like all other kinds of
and immigrants and does not recognise of. The country’s child welfare industry parentages, can be a source of security as
their culturally embedded parenting is sustained through oppressive and he­ well as a danger. Research points unequivo­
styles and notions about children. The gemonic mechanisms that are multilay­ cally to the fact that biological parentage
n c w s thus violates international policy
is neither a necessary nor a sufficient
ered, involving social workers, mental
condition for the development of the child
instruments on child welfare and child health experts, psychiatrists, judicial ex­ (Section 7.2).
rights, especially the 1980 Hague Con­ perts and welfare officers. Trade unions
vention and the 1989 u n c r c . of social workers, lawyers’ lobbies and There is overwhelming research evi­
similar groups associated with the n c w s dence on the adverse effects of foster or
NCWS* Violation of UNCRC fiercely oppose criticism of the child pro­ institutional care on children. Studies
The Norwegian state through its child tection system. The reason seems obvi­ (Hobbs et al 1999; Lopez and Allen
protection system violates the meta-text ous - reining in the n c w s would mean 2007; Neigh et al 2009) show that foster
of child rights, the u n c r c , which it rati­ fewer jobs and fewer children being placements are more disadvantageous
fied in 1991. Separating or uprooting placed in foster care. to children than disturbed family envi­
children from their families or natural The Norwegian state takes pride in ronments. A higher prevalence of physi­
environments without sensitivity to cul­ the many “preventive measures” it has cal and psychiatric morbidity has been
tural differences contravenes the pre­ in place for child welfare but in reality it reported among foster children. Besides,
amble of the 1989 convention, which makes no distinction between the care there is a high probability of personality
recognises the family as a favourable given by foster parents and biological/ and behavioural disorders such as sui­
natural environment for children. natural parents. It ignores the evidence cidal ideation, eating disorders, de­
The family, as the fundamental group of from rigorous studies that highlight the ranged attachments, irritability and de­
society and the natural environment for the adverse effects of separating children pression (Charles and Matheson 1991;
growth and well-being of all its members from their biological parents and natural Solomon and George 1999). Children
and particularly children, should be afforded environments. Moreover, the reunification living in foster homes often have less ac­
the necessary protection and assistance so
of children with their natural parents is cess to higher education than children
that it can fully assume its responsibilities
within the community, ... for the full and hardly on the agenda of the n c w s . living in natural environments. More
harmonious development of his or her per­ Instead, the authorities discourage chil­ seriously, foster children experience high­
sonality, should grow up in a family environ­ dren from reuniting with their natural er degrees of poverty, homelessness, in­
ment, in an atmosphere of happiness, love parents and accord priority to their ties carceration and social exclusion in later
and understanding ( u n c r c Preamble).7
with foster parents. In other words, the life (Kriz and Skivenes 2010). They also
The convention does provide sanction placement of children in foster homes suffer from not being able to trust others
to remove children from their families seems to be a permanent affair, which and have distorted notions of family and
but only as a “last resort” and in excep­ serves as a prelude to their assimilation relationships.
tional cases, which are described in Arti­ and integration into Norwegian culture. Child welfare workers in Norway
cles 9 and 20. Exceptionality cannot be The authorities arbitrarily take deci­ downplay the racism and discrimina­
arbitrarily decided by a state to prepare sions on the nature and quality of foster tion against non-whites and immigrants
the ground for authoritarian and oppres­ care and families are denied any say in prevalent in the country ( k i m 2008). In
sive child policies. Instead, a decision on the choice of foster families. In a case a way, their training and practice make
the “best interests of the child” must be reported by the media, a Muslim child8 them blind to racism and oppression.
located in the sociocultural identity of was placed in a same sex family and her Their cultural insensitivity, psycho-
the child and be compatible with its parent’s pleas against this were dismissed. pathological notions and behaviourist
Economic & Political w e e k ly E 3SS3 m a y 12, 2012 v o l x l v i i n o 19 21

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:48 UTC
All use subject to https://about.jstor.org/terms
perspective misses the wood for the trees. Tailpiece cultural values and norms of the “other”.
A study by Kriz and Skivenes (2010), Changes in global economic and politi­ It decries the role and participation of
which explored differences in the cal circumstances and their impact on immigrant children and their families in
approach of child welfare workers in national and regional contexts compel child welfare services. It also relies on a
Norway and England towards immigrant people from developing countries to mi­ colour-blind and culture-blind cadre of
and minority parents, clearly shows the grate to the west for employment, busi­ social workers whose training infuses in
Norwegian approach is assimilationist ness and education. But immigration is them an oppressive, individualistic and
and disciplinary and characterised by not accompanied by an annulment of disciplinary desire to integrate and as­
parent blaming. Welfare workers expect cultural and ethnic identities. Instead, similate immigrants into an idealised
immigrant parents to be bilingual and people move with attitudes and behav­ and normative Norwegian culture.
bicultural and enforce on them an aspi­ iours that are deeply embedded in their
ration for integration with the country’s native sociocultural and politico-economic n o t e s ___________________________________________
culture and values so that they can contexts. It becomes essential for na­ 1 “Indian Geoscientist’s Children Confiscated by
“obtain advantages for their children”. tions all over the world to recognise this Norway’s Child Protection Services”, http://
Without recognising the structural, in­ and build institutionalised spaces that www.nkmr.org/english/indian_geoscientists_
children_confiscated_in-norway.htm, accessed
stitutional and system-related challenges value pluralism and multiculturalism. on 2 9 February 2 0 1 2 .
that immigrant families face in access­ Countries need to be culture-sensitive 2 Aarti Dhar, “Norway Cool to Plea for Custody of
Children to Parents”, http://www.thehindu.
ing. services, welfare workers blame and tolerant to respect diversity in peo­ com/news/national/article2 8 2 0 5 2 9 .ece, accessed
them for not doing enough to integrate ples’ identities rather than attempt to on 1 March 2 0 1 2 .
and learn the Norwegian way of life. enforce assimilationist aspirations that 3 “Largest Increase since 1 9 9 3 ...” http://www.
ssb.no/english/subjects/0 3 / 0 3 /bamevemg_en/
Such an approach serves as the basis demonise eastern methods and romanti­ main.html, accessed on 2 9 February 2 0 1 2 .
for n c w s interventions in family life and cise western ones on them. 4 “Children with Measures from the Child
Welfare Services”, http://www.ssb.no/english/
the forcible removal of children from In Norway, immigrants and minori­ subjects/0 3 / 0 3 /barneverng_en/tab-2 o n -o 6 -
their natural environment. Universalist ties have been at the receiving end when 2 7 - 0 1 -en.html, accessed on 2 9 February 2 0 1 2 .

and totalitarian conceptualisations of it comes to the child protection system, 5 Fampo, “The Child Protection Service in Norway”,
http://www.fampo.no/cps.html, accessed on
childhood and children’s issues reflect a which is culture blind, intolerant and 25 February 2 0 1 2 .
lack of consciousness and sensitivity ethnocentric. The n c w s , by disregarding 6 Marianne Haslev Sklnland, “The Iron Hand
that Rocks the Cradle”, http://www.thehindu.
among welfare workers to differing ethnic international policy instruments such com/opinion/op-ed/article2 8 4 2 9 i 7 .ece, accessed
and cultural contexts. as the u n c r c , leaves no space for the on 7 March 2 0 1 2 .

Must-kcurc resources
on/ VevelojMPtent Studi
FROM INDIVIDUAL ECONOMIC
TO COMMUNITY LIBERALISATION AND
Issues In Development Studies INDIAN AGRICULTURE
Essays in Memory of economic A District-level Study
Malcolm Adiseshiah liberalisation
G S Bhalla and Gurmail Singh
AND
Edited by INDIAN AGRICULTURE Economic Liberalisation and Indian
Rathinasamy Maria Saleth Agriculture is an in-depth study that
From Individual to Community
throws light on the changes in Indian
addresses issues that concern developing agriculture post the economic liberalisation
countries— such as globalization, of early 1990s. It provides a district-wise
economic growth, rural transformation, analysis on agricultural growth in India
gender equality, educational reforms from the beginning of liberalisation to the
and the Dalit movement— from a period of slowdown in agriculture and
multidisciplinary perspective. rising farmer distress.
Based on the theoretical framework of the The study undertakes an analysis of the
normative principles, the book evaluates issues that are specifically relevant spatial patterns of change in Indian agriculture at the state level during
in the Indian context— rich versus poor, globalization versus sustainable 1962-65 to 2005-08. The authors make use of detailed data for 281
development, and so on. Devoid of any ideological rigidity, this book is an district units for a comprehensive discussion of the changes in the cropping
unbiased exposition of the material as well as ideological positioning of patterns and levels of agricultural output at the state and all-India levels
globalization, development and change. during this period.
2012 • 396 pages • 2 795.00 (Hardback)
2012 • 280 pages • ? 695.00 (Hardback)

www.sagepub.in Los Angeles ■ London ■ New Delhi ■ Singapore ■ Washington DC

22 may 12, 2012 v o l x l v i i n o 19 0353 Economic & Political weekly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:48 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
7 See full text of the UNCRC at http://www2.0h- Hardyment, C, ed. (1995): Perfect Parents: Baby- Abuse and Neglect?”, Child Abuse & Neglect,
chr.org/english/law/crc.htm. care Advice Past and Present (Oxford: Oxford 2 0 (9), pp 791-95-
8 Introduction to a report in Adressavisen, a University Press). Kriz, K and M Skivenes (2010): ‘“Knowing Our
regional newspaper, on 30 January 2008: “A Hart, J and B Tyrer (2006): “Research with Children Society’ and ‘Fighting against Prejudices’:
Muslim child has been placed with a lesbian Living in Situations of Armed Conflict: Con­ How Child Welfare Workers in Norway and
foster family. The child’s mother has protested cepts, Ethics and Methods”, RSC Working England Perceive the Challenges of Minority
against the choice of foster family. Trondheim Paper No 30, University of Oxford. Parents”, British Journal o f Social Work, 40,
City Council admits that this is an unfortu­ Hendrick, H (1992): “Changing Attitudes to Children, pp 2 6 3 4 -51 .
nate choice, but out of consideration for the 1800-1914”, Genealogists' Magazine, 24 (2), Lopez, P and P J Allen (2007): “Addressing the
child, refuses to change the (foster) family” pp 41-49. Health Needs of Adolescents Transitioning
(translation), http://www.adressa.no/nyheter/ Hobbs, G F, C J Hobbs and J M Wynne (1999): Out of Foster Care”, Paediatric Nursing, 33(4),
trondheim/articlei02oi99.ece, accessed on “Abuse of Children in Foster and Residential PP 345-55-
11 March 2012. care”. Child Abuse & Neglect, 23(12), pp 1239-52. Neigh, G N, C F Gillespie and C B Nemeroff (2009):
9 NOU (2005: 09), “Use of Resources and Legal James, A (1993): Childhood Identities: Self and “The Neurobiological Toll of Child Abuse and
Rights in County Social Welfare Boards”. Social Relationships in the Experience o f Child­ Neglect”, Trauma, Violence & Abuse, 10(4),
hood (Edinburgh: Edinburgh University Press). PP 389*410.
Jenks, C (1996): Childhood (London: Routledge). Prout (2008): “Culture-Nature and the Construction
R E F E R E N C E S ___________________________________ KIM (2008): “European Commission against Racism of Childhood” in KDrotnerand and S Livingstone
and Intolerance - KIMs Contribution to the 4th (ed.), The International Handbook of Children,
Boyden, J (2003): “Children under Fire: Challeng­ Report on Norway”, www.kim.no, accessed on Media and Culture (London: Sage).
ing Assumptions about Children’s Resilience”, 3 March 2012. Qvortrup, J (1991): “Childhood as a Social Pheno­
Children, Youth and Environments, 13(1). Killen, K (1991): Sveket-omsorgssvikt er alles ansvar menon - An Introduction to a Series of National
Charles, G and J Matheson (1991): “Suicide Pre­ (The Betrayal-Neglect Is Everyone’s Responsi­ Reports”, Eurosocial Report 36, European
vention and Intervention with Young People in bility) (Oslo: Kommuneforlaget). Centre, Vienna.
Foster Care in Canada”, Child Welfare, 70(2), Killen, K (1996): “How Far Have We Come in Solomon, J and C George, ed. (1999): Attachment
PP185-91- Dealing with the Emotional Challenge of Disorganisation (London: Guilford Press).

Illustrations in Statutes Another direct consequence of the gen­


eral impenetrability of the law is the
shocking ignorance of the people of their
A Forgotten Statutory Practice own rights and obligations under the
law. It renders the law, ostensibly a tool
for the governance of all, a potent
A PO O R V A S H A R M A , P U R U S H O T T A M A N A N D weapon in the hands of the few elite
people who have either the knowledge
Illustrations in statutes offer [W]here the administration of the law is for or the resources to sheath themselves in
the most part conducted by persons who are
numerous benefits by way of a protective cocoon of the law, often at
not only not professional lawyers, but who
have had no legal education or training in the expense of the objective for which
enhancing clarity, clarifying
any proper or rational sense of the term, the the law was framed in the first place.
legislative intent, and providing Legislature acts with wisdom and salutary It is imperative, therefore, that the
consideration for the interests of justice by
the context for the application putting into the hands of judicial officers ap­
law be made as accessible and easy to
of the provision. Their legal pliances such as the illustrations in question understand as possible. One such way of
for their guidance and direction in the per­ simplifying the law is already used in a
standing in colonial era statutes formance of their duties. few statutes, i e, illustrations. However,
is already established. Given the he annals of history yield this this practice of including illustrations has
widespread lack of understanding
of the law among those to whom
it applies as well as inadequacies
T opinion by C J Stuart from as far
back as 1877.1 While to an extent
condescending, the opinion still rings
true.2 The people of India today remain
been discontinued since Independence.3
This article argues that illustrations
should be reintroduced into Indian law
to improve the coherence and legibility
and ambiguities in legislation, largely ignorant of the laws governing of the laws of India.
the only question remaining them. This is further complicated by the One of the most fundamental principles
is why illustrations have been opaque language used in the statutes of law is the presumption of ignorantia
and the fact that multiple interpreta­ juris non-excusat (the ignorance of law
discontinued after Independence.
tions of the same law coexist. is no excuse). In effect, this principle
This set of factors has essentially means the law can be enforced upon
reduced law to being an imposition anyone, despite the fact that they may
from above, rather than what it was not be aware of the meaning or even the
meant to be in a democracy - estab­ existence of the law in question. This
Apoorva Sharma (apoorvai33@gmail lished by the people, for the people and very significant principle creates a
com) and Purushottam Anand (k.anand3@ of the people. This ignorance further reciprocal duty on the part of the State
gmail.com) are students at the National Law contributes to a very large amount of to make the people aware of laws
University, Delhi. enacted by it, and to make such laws as
fear of the law for the ordinary layperson.
Economic & Political w e e k ly DB 23 m a y 12, 2012 v o l x l v i i n o 19 23

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:49 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
comprehensible as possible. Not doing natural that these illustrations be from the prime importance of the lan­
so would be a form of injustice at the directly made a part of the statute. guage of the section, which is the enact­
most fundamental level. ing provision. The drafter must be
“[inadequacies in legislation” and Illustrations in Law conscious that the illustrations are nor­
rampant ambiguities were recently Since illustrations exist in certain stat­ mally given effect to by the courts and
highlighted by legal luminary N R Mad- utes, their legal standing has already the latter will not readily assume that
hava Menon, who stated:4 been established. Illustrations are part the illustrations are repugnant to the
One of the reasons for popular dissatisfac­ of the statute and help to elucidate the section and therefore reject them.9
tion with the administration of justice is the principle of the section.5 They are of An exception to the rule of illustration
uncertainty of law which sometimes results vital importance when it comes to inter­ not being used to modify or amend the
in miscarriage of justice. The multiplicity of
preting the intention of the legislature meaning of the section can be seen in
interpretations, the inadequacies of legisla­
tive drafting, ambiguities in policies and the and cannot be ignored without justified the Indian Evidence Act, 1972. Illustra­
variety of languages in which transactions reasons.6 Another important point is tion (b) of Section 114 of the Act, reads
are made add to the confusion and make that illustrations cannot modify the lan­ “The court may presume that an accom­
repeated litigation inevitable. guage of the section and they cannot ei­ plice is unworthy of credit unless he is
Illustrations in statutes are one ther curtail or expand the ambit of the corroborated in material particulars”.
method by which to remedy this. Aside section, which alone forms the enact­ This seems in direct conflict with Sec­
from the obvious reduction in levels ment.7 Therefore, there is no scope for tion 133 of the Act, which reads “An
of ambiguity, illustrations provide two illustrations to change the substantive accomplice shall be a competent witness
levels of improvement on the status meaning of the section. against an accused person, and a convic­
quo. First, they provide for a situation of The value of illustrations is best tion is not illegal merely because it pro­
perfect obligation. Simply put, if a situa­ shown by the judgment in Mahomed ceeds upon the uncorroborated testi­
tion arises which directly conforms to SyedolAriffin vs Yeoh Ooi Gark:s mony of an accomplice”. The combined
an illustration, it can be immediately The illustrations should in no case be reading of both these provisions would
dealt with on the basis of the illustration. rejected because they do not square with mean that a conviction based on uncor­
This leaves little scope for interpreta­ ideas possibly derived from another system roborated testimony of a co-accused is
tion or debate and more importantly, of jurisprudence as to the law with which
illegal, but as a rule of practice now, it is
they or sections deal. And it would require a
little scope for appeal. All such matters very special case to warrant their rejection established that corroboration is requi­
may be dealt with summarily. on the ground of this assumed repugnancy red in all such cases.
This leads to the second level of to the sections themselves. It would be [the] Thus, the substantive provision of the
improvement. Many people have been very last resort of construction to make this section has been brought to nullity due
excluded from the justice system simply assumption.
to wordings of an illustration under the
because they cannot afford to pay the However, the utility of illustrations in Act. Although we understand that this
costs of a protracted case. If a significant interpreting the section cannot detract does not constitute a precedent for other
number of situations can be covered by
illustrations, it correspondingly increases CALL FOR PAPERS
access to justice. INDIAN HEALTH ECONOMICS AND POLICY ASSOCIATION (IHEPA)
Another major advantage of illustra­ IHEPA’s Second Conference on 20th & 21st December 2012
tions is the relative ease of statutory IH E P A is organising its Second C onference under the aegis of the
interpretation. Taken from the perspec­ Institute for Social and Econom ic C hange (IS E C ), Bangalore, on
“Better Health Access - The Rough Road Ahead”
tive of those attempting to understand
Research papers are invited on the following sub-themes of the Conference:
the law, the very basis of legal education
rests upon examples, whether they be in 1. Universal Health Coverage
2. Human Resources and Infrastructure in Health
the form of precedents or through hypo­
3. MDGs, NRHM - achievements, lessons and future directions
thetical situations. This is because the 4. Innovations in Health Financing
subject matter of law can most easily be 5. Karnataka Health System - Achievements and Challenges
internalised through real world exam­ 6. Other related issues relevant to current context
ples of the law in context. Illustrations The papers submitted to the Conference will be screened by the Review Committee of
are therefore uniquely placed in aiding IHEPA for acceptance and presentation. IHEPA encourages young research students to
contribute and participate in the Conference. Papers along with abstracts may be submitted
in the comprehension of the law. Stu­ electronically to with Cc to offlce.lhepa@gmall.com.
dents of the law are encouraged to Important dates
apply the law in real world situations in Last day for submission of paper : September 10, 2012
order to fully grasp the inherent signifi­ Communication from IHEPA regarding acceptance : October 15, 2012
Last day of submission of revised paper, if required : November 19, 2012
cance of a statute and its ramifications,
For further details such as format of the paper, membership, etc., please visit www.lhepa.ln
usually by looking at case law or examin­
or contact aeiBJteta£y,ljbe p ft@ flm alU o m .
ing hypothetical situations. It is therefore
24 m a y 12, 2012 v o l x l v i i n o 19 BB 23 Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:49 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
cases, but it does exhibit how important A repercussion of the absence of illus­ for the application of the provision. More
and helpful an illustration can be for the trations is that the quantity of litigation importantly, there is no downside to the
interpretation of the statutes. pertaining to the interpretation of statutes introduction of illustrations. There is
It is not the general practice to append with respect to legislative intent has vastly little incremental cost involved. Illustra­
illustrations to sections of British Acts of increased. Simultaneously, verdicts have tions can be embedded in new legislation,
Parliament.10 Indian and colonial Acts become murkier with multiple interpreta­ and also introduced into older pieces of
are, however, full of them. tions being taken by various courts on the legislation, through amendment.
same matter. It is also not uncommon for The legislative laziness of not adding
History and Practical Examples a court to disagree with its own previous illustrations in the legislation has
The origins of illustrations in Indian interpretation, leading to greater confu­ impaired the understanding of law
law may be traced back to Macaulay’s sion and lack of certainty regarding what among the people. Thus it escapes un­
Indian Penal Code of i860. In a letter the law actually is. derstanding why the practice of adding
written by him to the Crown Auckland, The real benefit of illustrations is the illustrations to the provisions of law
he stated:11 ease through which they can be intro­ should not be restarted. The only ques­
Illustrations facilitate the understandings of duced into a statute. For instance, the tion remaining is whether the discontin­
law and, often, serve as a defence of law. They definition of “assessment year” in uation of illustrations is a matter of
lead the mind of the reader through the same
Section 2(9) of the Income Tax Act, 1961 incompetence or mere laziness.
steps by which the minds of those who framed
the law proceeded. Illustrations exhibit the is often confusing. Assessees find it
law in full action and show what its effect will difficult to comprehend which period n o t e s ___________________________________________
be on the events of the common life. they are being taxed for. 1 Nanak Ram vs Mehin Lai (1877), ILR1, All 487.
This reasoning (both succinct and apt) Section 2(9) reads: “‘Assessment year’ 2 An eye-opening illustration of the absence of
“proper” legal training lies in the fact that 517
was carried forward into subsequent leg­ means the period of 12 months commenc­ of 518 of the candidates in an examination con­
islation that to this day forms the back­ ing on the 1st day of April every year”. ducted by the High Court of Karnataka for the
recruitment of district court judges did not get
bone of laws in India, including (but not Section 3 further complicates the prob­ the minimum marks required to qualify for the
limited to) the Evidence Act 1872, the lem: “For the purposes of this act, ‘previ­ interview stage. Seven years of experience as a
practising advocate was a prerequisite for
Contract Act 1872 and the Transfer of ous year’ means the financial year imme­ taking the exam. See Krishna Prasad (2011),
Property Act 1882. In fact illustrations diately preceding the assessment year”. “517 Out of 518 Would-be Judges Flunk Law
Test”, The Hindu (Delhi Edition), 23 August.
play an incredibly vital role in the Evi­ Even the combined reading of both 3 The Code of Criminal Procedure 1973 is an
dence Act. The Act would be completely these sections does not make it compre­ exception to this general rule. However, this is
only because the Code, which was enacted in
incomprehensible without illustrations. hensive enough for a “common man”. An 1973, was largely a rewrite of the previous
It is interesting to note that subse­ illustration seems imperative here and Code of Criminal Procedure, 1908. The illus­
trations in the new law are taken directly from
quent to the adoption of the Constitu­ would have helped tremendously. A pos­ the old code.
tion, the legislature has in its wisdom sible illustration could be: 4 N R Madhava Menon (2011), “Making the Law
discontinued the practice of inserting Easier for the Common Man”, The Hindu (Delhi
(a) The assessment year 2011-12 will commence Edition), 18 October.
illustrations into acts. A sharp contrast on 1April 2011 and end on 31 March 2012. 5 Balia Mai vs Ahad Shah, AIR 1918, PC 249-50,
can also be noticed between similar pro­ (b) Income earned by an assessee during the judgment delivered by Lord Atkinson.
visions of Indian Succession Act 1925 previous year 2010-11 is chargeable to tax for 6 Murlidhar Chatterji vs International Film
Company, AIR 1943, PC 34.
the assessment year 2011-12.
( i s a ) and the Hindu Succession Act 1955 7 Lalit Mohan Pandey vs Pooran Singh and Others
( h s a ) . Section 20 of the i s a provides for Other illustrations flow directly from (2004), 6 SCC 626. Judgment delivered by
Justice S B Sinha.
“computation of degrees” for deciding the statute itself. When the h s a grants 8 (1917) 19 BOMLR 157. Also see, Durga Priya
the order of succession; a corresponding coparcenary rights to people, an illustra­ Chowdhury vs Durga Pada Ray, AIR 1926, PC
242; Bengal Nagpur Rly. Co vs Rattanji Ramji,
provision is also given under Section 13 tion can easily be appended listing AIR 1938, PC 67 (70), Hemchandra Naskar vs
of the h s a . Interestingly, while the i s a precisely who this provision covers Narendra Nat Bose, AIR 1934 Cal 402 and
Hallappa vs Irappa, AIR Bom, 415.
uses illustrations (with tables) to exhibit through examples. Similarly, when the 9 Jumma Masjid, Macara vs Kodimaniandra
examples of computation, the h s a has Trade Marks Act, 1999, specifies that a Devialu, AIR 1962, SC 847.
no such illustrations. certain type of mark cannot be trade- 10 An exception to this practice are the illustra­
tions contained in the University Elections
The value of illustrations has not marked, the section could include an (by single transferable vote) Regulations 1918
waned over time. Every court in India illustration specifying both the types of (S R 8t 0 1918, No 1348), Schedule I.
11 K Ramamoorthy (2007), “Statutes” in Sunanda
has recognised the value of illustrations trademark which can and cannot be Bharti, Supriti S Narayanan and Hiranmai
and has used them in one form or ano­ trademarked under the section. The Rallabandi (ed.), Halsbury Laws of India,
Vol 21 (New Delhi: LexisNexis Butterworths),
ther. Most recently, the Supreme Court possibilities are limitless. P 339.
in the case of Lalit Mohan Pandey vs 12 In this case, the Supreme Court cited with ap­
Pooran Singh and Others12has reiterated Concluding Remarks proval the illustration contained in Schedule II
of the Uttar Pradesh Zila Panchayats (Election
the contribution of illustrations in deal­ Illustrations offer numerous benefits, of Adhayksha and Up-Adhyaksha and Settle­
ments of Election Disputes) rules, 1994. See
ing with disputes related to the interpre­ including enhancing clarity, clarifying Lalit Mohan Pandey vs Pooran Singh and Others,
tation of a statute. legislative intent, and providing context Note 7 above.

Economic & Political w eek ly DDES m a y 12, 2 0 1 2 v o l x l v i i n o 19 25

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:49 UTC
All use subject to https://about.jstor.org/terms
IBB

The Centre for Economic Policy and Public Finance (CEPPF), supported by the
Government of Bihar, is hosted by the Asian Development Research Institute, Patna, a leading
non-government organization in social science research. The Centre is dedicated to
professional research in the field of economic policy and public finance with special reference
to the spatial development issues. The Centre has vacancies for the following posts :
1. Professor (2 Posts)
Category - General 1 post & Extreme Backward Class - 1 post
Minimum Qualification / Experience : (a) High Second class Masters degree and Ph.D. in
Economics / Econometrics / Statistics, (b) Experience of 12 years in research in universities
or reputed research institutes with evidence of published research books / papers in reputed
journals, (c) Familiarity with quantitative methods (for those with econometrics background)/
Experience of economic research (for those with statistics background)
2. Associate Professor (3 Posts)
Category - General - 2 posts & Extreme Backward Class - 1 post
Minimum Qualification / Experience : (a) High Second class Master degree and Ph.D. in
Economics / Econometrics / Statistics, (b) Experience of 8 years in research in universities
or reputed research institutes with evidence of published research books / papers in a
reputed journals, (c) Familiarity with quantitative methods (for those with econometrics
background)/ Experience of economic research (for those with statistics background)
3. Mahalanobis Fellow (1 Post)
Category - General - 1 post
(Tenure of 2 years, extendable by 1 year) (Only those who have completed Ph.D. within
the last three years need apply)
Minimum Qualification / Experience : (a) High Second class Masters degree and Ph.D. in
Economics / Econometrics / Statistics, (b) Familiarity with quantitative methods (for those
with econometrics background) or economic research (for those with statistics background)
4. Managing Editor (1 Post)
Category - General
Minimum Qualification / Experience: (a) Second Class Master degree in social science or
English (b) Excellent command over English with 2 years of experience of editing English
texts.
Pav Scale : Rs. 15,600-39,100 + AGP Rs. 6,000
The pay scales for the above posts are as according to the new UGC guidelines. The post of
Mahalanobis fellow will receive the pay scale for the Assistant Professor.
Besides basic pay, the emoluments will include DA, HRA, CCA and social security benefit;
Interested persons may send their bio-data within a fortnight to the DIRECTOR, Centre for
Economic Policy and Public Finance, Asian Development Research Institute, BSIDC
Colony, Off Boring-Patliputra Road, Patna- 800 013. Phone : 0612-2265649, Fax : 0612-
2267102, E -m a il: ceppf@yahoo.com

26 may 12, 2012 vol x lv ii no 19 BBSS Economic & Political weekly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:07 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY

Regulating Utilities Development Authority Act 1999 ( i r d a


1999) and the Electricity Act 2003 ( e a
2003) - brings to light the following
Legislative Framework features of regulatory architecture prev­
alent in India:1
(i) The concerned regulatory authority
A D IT H Y A K R IS H N A C H IN T A P A N T I_________ (hereinafter r a ) has been given ade­
quate autonomy to lay down regulation
The Draft Regulatory Reform eveloping country governments for the sector.2 The statutory require­
Bill which was prepared by the
Planning Commission in 2009
but is yet to be finalised hopes to
D are tending increasingly to with­
draw from being the sole providers
of public utility services such as electri­
city, telephony, etc. Instead they are
ment of hiring technically competent
personnel facilitates efficient regulation
and technocratic decision-making.3 The
regulator has adequate powers to call for
introduce a common legislative allowing private participation in these information and conduct investigations,4
framework and institutional sectors. India is no exception to this global coupled with the power to levy penalties
phenomenon. In this situation, regula­ for non-compliance. This makes the r a s
architecture for public utility
tion of the operations of all players (in­ effective institutions.
regulatory commissions in cluding state-owned enterprises) becomes (ii) The requirement to table regulations
various infrastructure sectors. essential to preventing market failures, before the legislature, as and when
This article argues that the to ensuring a level playing field and formulated, ensures accountability to
safeguarding consumer interests. Parliament.5 The concerned r a is also
bill does not take into account
The entry of multiple operators under required to periodically furnish reports
the constitutionally mandated the regulatory framework necessarily in the format stipulated by the central
separation of powers and the implies the vesting of executive powers government. Additionally, the r a is
principles of federalism. It in the regulator. The executive, both required to submit annual reports to the
political and bureaucratic, may be reluc­ government detailing its functioning and
suggests the need for a statutory
tant to give up these powers and ready to activities undertaken, which are tabled
macro-regulatory coordination usurp them again, given an opportunity. before Parliament/state legislature as
body that respects these In this context, regulatory design and the case may be.6
principles. It further examines the positioning of the regulator vis-a-vis (iii) The requirement to comply with the
the executive, legislature and judiciary policy directions of the central govern­
the role of the institutional
become crucial for continued and effi­ ment ensures that regulatory decision­
framework in ensuring the cient functioning of regulatory agencies. making takes place in accordance with
independence and effectiveness Given this scenario, adopting an ap­ the broader policy formulated by the
of regulators. propriate regulatory institutional frame­ executive. This is intended to avoid or
work may mitigate the rigours and un­ minimise policy inconsistencies.7
certainties arising out of sectoral liber­ (iv) Legislative predetermination of fund­
alisation. Therefore, the regulation and ing for the r a helps independent decision­
evolution of a national regulatory insti­ making.8The provision for judicial review
tutional framework for public utility of the r a acts as a check on any possible
industries must be analysed from a public arbitrariness.
policy viewpoint with developmental (v) The relationship between the r a and
priorities in mind (Minogue and Carino the executive, legislature and judiciary
2006:4) and should be set in the context is clearly defined, preventing any exces­
of establishing “new public institutions” sive interference by any organ of the
(Eberhard 2007: 6). This article attempts state in the activities of the r a .
to explore the role of the institutional Perhaps the most important feature of
framework in ensuring the independ­ these legislations is that they do not
The author would like to thank T L Sankar,
ence and effectiveness of the regulator. intend to micromanage the sector. The
S Narayanan and Gautam Pingle, all of the
Administrative Staff College of India, for their essential flexibility granted by the parent
valuable suggestions and comments. The Current Architecture statutes helps the r a formulate and
author is, of course, solely responsible for A cursory glance at the legislation regu­ implement appropriate sectoral regula­
the article. lating the telecom, insurance and tions. This flexibility has allowed formu­
Adithya Krishna Chintapanti (adithya_k@yahoo. electricity sectors - the Telecom Regula­ lation of sector-specific regulations after
com) is a practising lawyer and a consultant on tory Authority of India Act 1997 ( t r a i consultations with sectoral players and
law and governance issues.
1997), the Insurance Regulatory and consumers. Such subordinate legislation,
Economic & Political weekly DGE3 may 12, 2012 vo l x l v ii n o 19 2 7

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:50 UTC
A ll use subject to https://about.jstor.org/terms
COMMENTARY
in keeping with the statutory scheme, To propose one omnibus legislation of the legislature. The executive cannot
drives regulatory processes. to deal with all sectors without address­ in the exercise of its administrative
ing sector-specific regulatory issues is powers, assume the power to make laws
The Proposed Bill an alarming departure from the present (Basu 1996: 28).
Despite initial successes in establishing practice of legislating r a s on a sectoral
r a s and their successful functioning, basis.14 Moreover, the r r b allows the (ii) Centralisation of Institutional
r a s could not be established for infra­ government to constitute r a s by noti­ Processes: While the r r b proposes a
structure sectors like posts, coal, rail­ fication. It does not, however, offer any selection committee whose composition,
ways, and waterways, etc.9 Opposition guidance in terms of criteria for the es­ members and qualifications are consti­
from incumbent players - both govern­ tablishment of the r a s or appellate tri­ tuted by statute, it also makes all
ment and private - along with the usual bunals nor any explanation/justification appointments to the r a s and appellate
departmental resistance has effectively for the need to merge two r a s or appel­ tribunals contingent upon the approval
prevented r a s from being set up. late tribunals. This provision would make of the prime minister and concurrence
The Draft Regulatory Reform Bill of the establishment or non-establishment of the president, hence centralising the
20** (henceforth the RRB/the proposed of an r a or appellate tribunal subject to final outcome. Seeking presidential con­
bill) intends to usher in legislation to the executive’s sole discretion. currence for the appointment of statu­
cover all sectors (Planning Commission This is clearly an example of exces­ tory authorities is a departure from the
2009). The r r b proposes to introduce a sive delegation of essential legislative existing system. As per the r r b , the
common “institutional framework for functions to the executive. The doctrine prime minister’s prior recommendation
the regulatory commissions” and “would of separation of powers requires that and presidential approval is also re­
supplement the existing sector specific one organ of the department/govern- quired for removal of members.15 All
laws that set out sectoral objectives” ment should not usurp functions be­ policy directions issued by the govern­
(Planning Commission 2009: 6). Protec­ longing to another. This also implies ment, i e, concerned ministry are required
tion of consumer interest is one of the that no organ can abdicate the powers to be approved in writing by the con­
objectives of the bill and the same is and responsibilities vested in it by the cerned minister and the prime minister.16
reflected in its provisions (ibid).10 The Constitution. From a legislative point of
r r b is at a consultative stage, placed in view, it is the constitutional obligation (iii) Interfacing Regulation and Com­
public domain to elicit views and opin­ of the legislature to ensure that it does petition: The r r b gives primary juris­
ions. The following critique is intended not delegate/abdicate its essential legis­ diction over competition-related issues
to highlight certain features of the r r b , lative function. The determination of in the utility sectors in the schedule to
which have a direct bearing on the con­ legislative policy and its formulation and the concerned sectoral r a and makes
stitutional scheme and the institutional promulgation as defined in binding rules reference to the Competition Commis­
framework of the existing r a s . (i)*4 of conduct, is the exclusive prerogative sion of India entirely optional.17

(i) Umbrella Legislation Involving Exce­ Wanted an Academic Fellow for


ssive Legislative Delegation: The r r b the Forum on Contemporary Theory, Baroda
intends to empower the government in
establishing r a s by notification for the The Forum on Contemporary Theory is a non-profit organization devoted
following infrastructure sectors, namely: to research in areas of interdisciplinary studies. It is currently supported
(I) electricity, (2) telecommunications and by a grant from the Ford Foundation, New Delhi. It has a vacancy for the
internet, (3) broadcasting and cable tv, position of an Academic Fellow, preferably in an area of social sciences.
(4) posts, (5) airports, (6) ports, (7) rail­ C andidates interested in the position are required to send their
ways and mass rapid transit system, application and curriculum vitae via email attachment by May 20, 2012 to
(8) highways, (9) oil and gas, (10) coal,
prafullakar@gmail.com
(II) water supply and sanitation, and Required qualification: Ph.D., preferably in any of the Social Sciences or
(12) waterways. The r r b also empowers the humanities and good command over written and spoken English.
the government to merge existing or noti­
fied r a s or notified regulatory commis­ The responsibilities include: Conceptualizing and organizing various
academic programmes, drafting research proposals and reports, undertaking
sions constituted under applicable laws.11
independent research work, assisting in publishing the Forum’s Newsletter
The government will be enabled to desig­
and Journal, mentoring young scholars, etc.
nate any appellate tribunal to hear appeals
for decisions by an r a which does not have Short-listed candidates will be called to meet the selection committee in
an appellate tribunal,12 and may merge Baroda at their own cost. The consolidated salary per month is: Rs.40,000/
any existing or notified appellate tribunals (Rupees forty thousand only). For details about the Forum, please visit its
constituted under applicable laws for each website: www.fctworld.org
of the sectors mentioned in the schedule.13
28 may 12, 2012 vol x l v ii n o 19 EEE3 Economic & Political weekly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:50 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
There is no requirement for prior con­ Ports Regulatory Authority Bill 2011 (1) Promoting Independence of the
sultation with the Competition Commis­ (Ministry of Shipping 2009). It would RA: Perhaps the biggest shortcoming of
sion, before the ra enforces competition­ not be out of place to mention that the the rrb lies in treating regulation as a
enhancing sector-specific regulations. opening up of certain sectors such as purely structural issue and being silent
Thus rrb effectively excludes utility/in- postal services and water supply and on the behavioural element. More often
frastructure sectors from the jurisdic­ sanitation to private competition, as the than not, regulators are under tremen­
tion of the Competition Commission and proposed bill suggests, is still vehement­ dous pressure from the executive to pur­
empowers ras to decide on matters per­ ly opposed by many sections. sue a particular course of action, even
taining to preventing or restricting com­ It seems fairly obvious that the present when it may be contrary to the sectoral
petition, direct or indirect price fixing, rrb attempts to develop a uniform legis­ interests. It is in this context that the for­
abuse of market power of monopoly, lative strategy for the introduction of mulation and adoption of regulatory
mergers, etc. regulatory bodies. It also seems to mir­ principles at a macro-policy level assu­
ror the political mood in the coalition mes significance. Formulation of broad
(iv) Overarching Nature of the Bill: government, with constant tussles be­ cross-sectoral regulatory principles em­
The rrb in its preface purports to sup­ tween major coalition partners and the boldens regulators and gives them the
plement existing sector-specific laws. allies holding sectoral portfolios. Indi­ necessary guidance when formulating
However, if it is passed and notified, it vidual ministers representing different sector-specific regulations. It makes regu­
would supersede all such legislation. political parties (primarily regional) latory decision-making more predicta­
This is clearly evident in its phraseo­ seem to treat their portfolio sectors as ble, hence minimising the scope for ex­
logy.18 Section 60(1) of the rrb titled exclusive domains, effectively blocking ecutive interference. A very good exam­
“Overriding Effect”, states that “the the introduction of ras . The bill seems ple are the “principles of good regula­
provisions of this Act shall have effect to be directed at curbing this tendency tion” formulated by the Better Regula­
notwithstanding anything inconsistent by projecting the Prime Minister’s Office tion Executive of United Kingdom (Busi­
therein contained in this enactment as the nucleus of all regulatory decision­ ness Link 2011). These principles state
other than this Act”. If passed, the bill is making, be it appointment and removal that any regulation should be: (i) trans­
bound to create a great deal of confusion of members of ras or issuance of policy parent, (ii) accountable, (iii) proportion­
about the applicability existing sector- directives to the ras . The proposed cen­ ate, (iv) consistent, and (v) targeted only
specific enactments in the utility/infra- trality of the Prime Minister’s Office, at cases where action is needed.
structure sector.19 seems to be a way of getting around the Any endeavour to promote behavioural
political compulsions of the coalition independence would necessarily require
(v) Violation of the Federal Principle: government, which is likely to be a con­ establishing institutions which help for­
The states of the Indian Union have tinuing feature of the Indian polity at mulate common principles of regulation,
legislative competence when it comes the national level. provide necessary hand- holding during
to specific utility sectors mentioned in As such, the rrb will be seen as an initial years of establishment, coordinate
Schedule vn of the Constitution of attempt driven by bureaucratic/techno- the functioning of the ras across sectors
India. Although legislation enacted by cratic necessity and political convenience. and act as drivers of regulatory reform.
the union Parliament takes precedence However, it fails to take into account the Different models for such institutions
over that of the state assemblies, in constitutional scheme in force for the are prevalent across jurisdictions and
areas of shared legislative competence, past 60 years (especially the theory of include: (1) bodies supervising regula­
such a statute, given its sweeping nature, separation of powers and the spirit of tory processes that are located within
would violate the cardinal principle of federalism) and the existing regulatory the executive, (2) bodies at a political
prior consultation in a federal set-up.20 It framework discussed earlier. It also level to evolve consensus on regulatory
is but natural that the states would resist attempts to bind the approval of Parlia­ reform so as to set the regulatory agenda
intrusion into their areas of legislative ment to a single act of delegation of its in motion, and (3) ad hoc bodies to
competence, as is illustrated by the re­ authority, so as to carry out a series of advise the government on the reforms,
sistance of state governments to the pro­ changes to the regulatory framework etc (Investment Climate Advisory Services
posed Major Ports Regulatory Authority without further legislative sanction. 2010: 7). There is one common feature
Bill (Kurup 2011). In the light of the discussion above, among these institutions, viz, they are
two important issues need to be taken all constituted by executive order and
Independence and Consultation into consideration in any endeavour to their agenda is determined by the exec­
Individual ministries have undertaken evolve a regulatory regime for public utive, mostly by the group of ministers
sector-specific efforts to set up regulatory utilities/infrastructure sectors in India: with the infrastructure/utility portfolios.
bodies, for example, through the Coal (1) promoting the independence of the However, from a developing country
Regulatory Authority Bill (Economic Times ra , and (2) giving due importance to perspective, where regulators are yet to
2011), the Postal Regulatory Authority consultative processes preceding the locate their role vis-a-vis the three organs
Bill (Guha and Raj 2010) and the Major constitution of the r a . of the government or the permissible
Economic & Political w e e k ly Q2S3 m a y 12, 2 0 1 2 v o l x l v i i n o 19 29

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:50 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY

limits of the exercise of their powers, keeping with the constitutional scheme account, so as to receive their continued
such bodies may not be able to: and the concept of welfare state cooperation in course of implementation
(1) Address sectoral resistance to the enshrined in the Constitution. Such a of the sector-specific regulation. Failure
establishment of regulators; body must: to do so may result in stalemate, bring­
(2) Promote better understanding regard­ (1) Evolve regulatory principles cutting ing regulatory processes to a standstill
ing the role of the regulator; across sectors. (Investment Climate Advisory Services
(3) Evolve principles of regulatory gov­ (2) Establish a think tank with dedicated 2010: viii). Having a statutory institution
ernance, which help minimise inconsist­ scholars working on sector-specific themes. on the lines discussed earlier in this sec­
encies as regards approach to regulatory (3) Act as a facilitative forum for cross- tion at the helm of regulatory reform
issues across sectors; and sectoral consultations (alongside the would also help create an environment
(4) Provide essential guidance to regu­ Competition Commission), for better that facilitates dialogue. This process is
lators in the initial years of their regulatory coordination. more amenable to the development of
establishment. (4) Be recommendatory in its pro­ democratic and consultative stakeholder
Though regulatory principles have evol­ nouncements. participation than that envisaged under
ved through non-statutory institutions the r r b .
in the developed country context, this (2) Giving Due Importance to Consult­
is possible only with political consensus ative Processes Preceding the Consti­ Conclusions
and general understanding of the con­ tution of the RA: Consultative process­ The statutory scheme of the r r b brings
cept of regulation. However in the Indian es preceding the constitution of the r a to light the tendency of the executive to
context, the fragmentation of regulatory play an important role in the establish­ usurp regulatory powers delegated to
fora and decision-making could lead ment and the continued and efficient the r a s . Therefore, any legislative ende­
to divergent opinions on the need for functioning of the r a . r a s should be es­ avour aimed at establishing an r a for a
regulatory interference. This necessitates tablished so as to cater to sector-specific public utility sector that is to be liberal­
a statutory macro-regulatory coordina­ demands (Chintapanti 2011:13). r a s can ised must define the role of the r a
tion body entrusted with the task of succeed only if the interests of the through appropriate institutional design.
formulating regulatory principles, in concerned stakeholders are taken into Such institutional design must delineate

EPW N e w , 2nd Edition


Research
Foundation Praise for the first edition:

AUnit of Sameeksha Trust “It is one of the finest publica­


tions of its kind that I have seen.”
— KaushikBasu
Chief Economic Advisor,
Government of India
india
A Pocket Book of Data Series
The EPW Research Foundation brings you a one-stop
resource for all important economic and social data on India.

NEW, 2nd Edition...


India: A Pocket Book of Data Series / 2012
“I find it extremely useful.
The publication would facilitate
our understanding of the macro-
economic trends.”
2012
— R. Radhakrishna Conceptualised and Compiled by
Chairman, National Statistical EPW Research Foundation
The development of independent India from an agrarian stage to Commission, Govt, of India
Designed and Published by
a modern economy began in the early 1950s. After the first four
Academic Foundation
decades of planning, India embarked upon a series of economic
and financial sector reforms in the early 1990s. While India has
2012 • Paperback • 33A x 7V2 inches
continually been undergoing a socio-economic and structural 302 pages • ISBN: 9788171889334
transformation, its economic growth has accelerated in the past Rs. 295; US$ 29.95
two decades. Since 2004, it has been on an even higher growth
trajectory. This pocket book from EPW Research Foundation Copies of the book can be ordered from
major booksellers/library suppliers or
captures these trends and patterns, from data sets for a variety
directly from the publishers:
of social and economic indicators and presents them in a
ACADEMIC FOUNDATION
compact manner in both discrete and continuous annual series. 4772 / 23 Bharat Ram Road,
The five major components of data sets are: Macro Economy, 23 Ansari Road, Darya Ganj,
Social Sector, Infrastructure, Profile of States and New Delhi - 110 002.
International Comparison. It is a quick and handy reference Tel: +91-11-23245001 / 02 / 03 / 04.
email: books@academicfoundation.com
tool for academics, executives, students and researchers and for
www.academicfoundation.com
anybody interested in the saga of India’s development.

30 may 12, 2 0 1 2 vo l x lv ii no 19 E32E9 Economic & Political weekly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:50 UTC
All use subject to https://about.jstor.org/terms
COMMENTARY
the respective spheres of the executive 10 Protection of consumer interests is one of the Eberhard, Anton (2007): “Infrastructure Regula­
primary objectives of the RRB (Planning Com­ tion in Developing Countries: An Exploration
and the regulator so as to avoid exces­ mission 2009:1). In course of discharging their of Hybrid and Transitional Models”, Working
sive ministerial interference. It is equally functions, RAs are required to meet all the rea­ Paper No 4 of 2007, Public-Private Infrastruc­
sonable demands of the consumers (Sec 11(2) ture Advisory Facility, World Bank, Washing­
important that r a s realise that they are (a), RRB) and protect the interest of consumers ton DC, accessed on 4 September 2011: http://
autonomous bodies, which are outcomes by ensuring quality service (Sec n(3)(a), RRB). www-wds.worldbank.org/external/default/
The RA can advise the government and pro­ WDSContentServer/WDSP/IB/2007/12/13/00
of legislative processes (Winsor 2010: pose amendments to the concerned legislation 03i0607_2007i2i3i43i03/Rendered/PDF/4i7
19). Hence, any exercise to develop an or rules made thereunder so as to reduce the 330ptmzd0In1i0n0PPIAF0401PUBLIC1.pdf
burden (financial, administrative etc. on any Economic Times (2011): “Coal Regulatory Bill to Ad­
institutional design for the infrastruc­ consumer or class of consumers (Sec.11 (4) (o), dress Supply Issues As Well”, Economic Times,
ture sector would necessarily have to RRB). The RA is required to safeguard consumer 24 January, accessed on 13 September 2011:
interest when specifying the terms and condi­ http://articles.economictimes.indiatimes.com
take into consideration the behavioural tions for determination of tariff (Sec 39(i)(b), /20ii-oi-24/news/28426826_i_coal-regulatory-
independence of the regulator. RRB). The RA is also vested with the power to authority-power-generation-acute-coal-shortage
specify the standards of performance for a li­ Guha, Rajat and Rishi Raj (2010): “Trai-Like Body
In this context, establishing a statu­ censee or a class of licensees and power to im­ to Fix Postal Tariffs”, Financial Express, 26 July,
tory macro-regulatory coordination body pose penalties and provide compensation to accessed on 13 September 2011: http://www.fi-
the consumer for non-adherence to the same nancialexpress.com/news/trailike-body-to-fix-
alongside sector-specific regulators, with (Sec 40, RRB). The National Advisory Council postal-tariffs/651547/
the mandate discussed above, becomes set up by the RA is required to advise the RA on Investment Climate Advisory Services (2010): “Bet­
matters pertaining to consumer interest, ter Regulation for Growth - Institutions for
a necessary aspect of the regulatory among others (Sec 41, RRB). Regulatory Governance”, World Bank Group,
framework. Such a holistic approach to 11 Sec 3(6), RRB. Washington DC, accessed on 4 September 2011:
regulation could facilitate orderly estab­ 12 Sec 3 (7), RRB. http://www.ifc.org/ifcext/fias.nsf/Attachments-
13 Sec 3(8), RRB. B/Title/BRGPapers institutionsreggov /$FILE/
lishment and evolution of regulators in 14 The RRB also raises certain issues pertaining Institutions.pdf
newly liberalised public utility sectors.21 to the legislative competence of the Parliament Kurup, N K (2011): “New Regulatory Authority to
to legislate on subjects on which the states are Replace Major Ports’Tariff Body”, Hindu Business
More importantly, the formulation of competent to legislate. This aspect however is Line, 23 March, accessed on 20 September
principles of regulation by the macro- not discussed in this paper. 2011: http://www.thehindubusinessline.com/
15 Sec 7(3), RRB. industry-and-economy/logistics/articlei5653i6.
regulatory coordination body, in keep­ ece?homepage=true
16 Sec 15 (1), RRB.
ing with the constitutional mandate of a 17 See “Competition”, Part VIII, RRB.
Ministry of Shipping (2009): “Major Ports Regula­
tory Authority Act 2009”, Government of India,
welfare state would help the r a s emerge 18 The proposed bill’s phraseology subjects the New Delhi, accessed on 13 September 2011:
current regulatory statutes to the regulatory
as public institutions facilitating equitable framework proposed by it.
http://shipping.nic.in/writereaddata/l892s/
3150375-MajorPortsRegul.pdf
sectoral development while giving prior­ 19 These include TRAI 1997, EA 2003, the Indian Minogue, Martin and Ledivina Carino (2006):
ity to consumer’s interests. Ports Act 1908, Inland Waterways Authority of “Introduction - Regulatory Governance in Deve­
India Act 1985, National Highways Authority of loping Countries” in Martin Minogue and
India Act 1988, Airports Authority of India Act Ledivina Carino (ed.). Regulatory Governance
n o t e s _____________________________________
1994, The Petroleum and Natural Gas Regula­ in Developing Countries (Cheltemham: Edward
tory Board Act 2006, etc. Elgar Publishing Limited), accessed on 15 Octo­
1 As evident from the dates of their respective 20 Schedule VII to the Constitution of India delin­ ber 2011: http://www.competition-regulation.
enactments, the regulatory bodies established eates the legislative competence of the union org.uk/publications/CTc_books/chapterimmlc.pdf
by these statutes have been functioning for a government and the state government. Union Misra, Nripendra (2011): “Regulating the Regula­
reasonable period of time. These statutes deal legislation would take precedence over state tors”, Indian Express, 8 November, accessed on
with the infrastructure/public utility and legislation in case of conflict with reference to 9 November 2011: http://www.indianexpress.
financial sectors. The reason for inclusion of the entries in the concurrent list. It is in this con­ com/news/ regulating-the-regulators/872350/ o
insurance regulator in the comparative analysis text that a more detailed examination of the
is to demonstrate that there prevails consensus Planning Commission (2009): “Draft Regulatory
following utility sectors needs to be undertak­ Reform Bill 20**”, The Secretariat for the Com­
about the structure and positioning of the reg­ en: (1) ports, which are Union List Entry 27 and mittee on Infrastructure, Planning Commis­
ulator, notwithstanding the sectoral nature of 28 and Concurrent List Entry 31; (2) highways, sion, New Delhi, accessed on 19 November
the enactment. One other reason for selecting which are Union List Entry 23 and State List 2011: http://infrastructure.gov.in/pdf/Regula-
this set of statutes for a comparative analysis is Entry 13; (3) Waterways, which are Union List tory%2oBill%202o.pdf
that whereas the telecom and insurance regu­ Entry 24, Concurrent List Entry 32 and Concur­
lators fall primarily under the jurisdiction of Winsor, Tom (2010): “Effective Regulatory Institu­
rent List Entry 13. tions: The Regulator’s Role in the Policy Proc­
the union government, electricity regulation in 21 Nripendra Misra (2011), former chairman of TRAI,
India is a federally administered subject (both ess, Including Issues of Regulatory Independ­
argues for oversight bodies, i e, “specialised in­ ence”, Discussion Paper 2010-21, Joint Trans­
the union government and state governments stitutions geared towards regulatory performance
have legislative competence), and a federal set­ port Research Centre, International Transport
and quality” accountable to the Prime Minister’s Forum, Organisation for Economic Coopera­
up has been foreseen under die said enactment. Office, on the lines of those established in the tion and Development, Paris, accessed on 15
2 Sec 36, TRAI1997; Sec 26, IRDA 1999; Secs United Kingdom (UK) and Australia. This au­ October 2011: http://www.internationaltrans-
178 and 181, EA2003. thor agrees with the need for macro-regulatory portforum.org/jtrc/DiscussionPapers/
3 Sec 4 TRAI 1997; Sec 4 IRDA 1999; Secs 77 and coordination. But positioning such a macro- DP201021.pdf
84, EA2003. regulatory coordination body in the Prime
4 Sec 12 of TRAI 1997; Sec 14 (2)(h) of IRDA Minister’s Office, may raise issues of centralisa­
1999; Sec 94, EA2003. tion of institutional processes as discussed.
5 Sec 37 TRAI 1997; Sec 27 IRDA 1999; Secs 179
and 182, EA 2003.
Economic&PoliticalwEEKLY
6 Sec 24 TRAI 1997; Sec 20 IRDA 1999; Secs 101 REFERENCES______________________________ available at
and 105, EA2003. Basu, D D (1996): Administrative Law (Kolkata:
7 Sec 25 TRAI 1997; Sec 18 IRDA 1999; Secs 107 Kamal Law House). Variety Book House
and 108, EA2003. Business Link (2011): Better Regulation - The Role of
8 Secs 21 and 22, TRAI 1997; Secs 15 and 16, Better Regulation Executive.
35, Bhad Bhada Road, T. T. Nagar
IRDA 1999; Secs 98 and 99 and Sections 102 Chintapanti, Adithya Krishna (2011): “Legislating Bhopal - 482003
and 103, EA2003. for Development”, paper presented at the 2011 Madhya Pradesh.
9 The Department of Posts and the Ministry Asia Region Conference of the Commonwealth
of Coal have made attempts to introduce a Association of Legislative Counsel, Colombo, Ph: 2556022, 2554057
sectoral regulator. 28 October.

Economic & Political weekly MAY 12, 2 0 1 2 VOL XLVII NO 19 31

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :00:50 UTC
All use subject to https://about.jstor.org/terms
merit or worth which, in turn, deter­
Caste Identity and Economics mines their labour market outcomes” in
terms of hiring and wage. Thus, caste
identity is seen to flow from a set of
SUKHADEO TH O RAT features attributed to individuals from
the low castes which decide how others
o deal with the complexity of eco­ BOOK REVIEW will behave with them and they in society

T nomic behaviour with greater


ease, theories have developed be­
hind the protected walls of “other things
being given” to isolate the influence of
The Grammar of Caste: Economic Discrimination
in Contemporary India by Ashwini Deshpande (New
Delhi: Oxford University Press), 2011;p p x x i+ 295, Rs695.
in economic dealing. These attributes
are seen as indicators of merits or worth.
Scoville looks at castes as a “system of
human resource allocation and a system
other factors in economic decisions. of ‘production and distribution’”, with
However these protected walls have discrimination model, on the other reciprocal obligations and mutually
been dismantled in stages, and have hand, locates the source of discrimina­ beneficial division of labour - reciprocity
eventually led to the development of tion in imperfect information that em­ determined by some assumption of fair­
various branches of economics. The re­ ployers have about various groups. The ness or fair exchange. Ashwini Deshpande
laxation of the assumption of institu­ judgment about productivity is then rightly points out the limitation of
tional neutrality led to the rise of the determined by received social convention Scoville’s approach insofar as “by high­
branch of institutional economics, which and uses these beliefs (stereotypes) in lighting interdependence, it takes away
now recognises that institutions (rules, hiring and setting wages of the persons the hierarchical and exploitative nature
norms, and ideologies) matter in eco­ with a certain social identity such as of the caste system and presents a benign
nomic outcomes. Similarly, the rules and race, gender or caste. The hiring, alloca­ picture that emphasises the role of the
norms that govern exchange in various tion of jobs and wages often get shaped caste system as a facilitator of mutually
markets also matter. Ashwini Despande’s by the perceived notion of productivity beneficial division of labour”. The Deepak
The Grammar of Caste: Economic Dis­ of a group of workers rather than actual Lai explanation of caste system is essen­
crimination in Contemporary India deals productivity. It is possible for the em­ tially a variant of the Akerlof model;
with this neglected theme of “identity ployer to discriminate without necessar­ it argues that the caste economy was
and the economics” in the Indian con­ ily having a taste for discrimination. developed to deal with the set of problems
text and discusses how economic out­ that ancient Indians were facing, the
comes are shaped by caste identity. Application to Caste need for secure labour supply for agri­
The book discusses the theories and The author then switches over to the culture and to overcome uncertainty
empirical evidence on economic dis­ application of what she calls “Western concerning outputs.
crimination, its outcomes and policies. imagination” to the institution of caste Unlike others, Deshpande does not
In this sense, it is an all-inclusive volume and discovers only a handful of theoreti­ undermine the theoretical contributions
covering the relevant aspects on the sub­ cal works that have especially focused by Indian writers. In fact she brings out a
ject. Needless to say, this book is an on the economics of caste (unfortunately good deal of insight from the writings of
important contribution to the theme. none by Indian academics), revealing a three writers, namely, Phule, Periyar
disturbing silence or caste blindness in and Ambedkar. The Indian theorists of
Theories of Economic the modern Indian theoretical writing in caste brought a new dimension to the in­
Discrimination economics, which is otherwise extremely terpretation of the caste system. Phule
The book begins with a discussion of the rich. Among the few attempts, the one and Periyar shared a more or less common
theories with a focus on the neoclassical by George Akerlof appears to be seminal approach towards caste. Both recognised
which shows how social identities of on caste identity and economic outcomes, inequality as a governing principle of
economic agents can be central to the because most of the later theoretical the caste system in economic, educa­
determination of economic outcomes. attempts have been based on Akerlofs tional and social relations. Both also rec­
Two main theories, namely, the “Taste work on caste. All of them recognise a ognised the role of ideology (religious
for Discrimination” and “Statistical Dis­ few economic features of the caste system and social), which includes the shastras,
crimination” are discussed in detail. with respect to property rights and oc­ smritis and the Gita as a body of Hindu
According to the “Taste” theory, an indi­ cupations - fixed, compulsory, hereditary, religious literature that forms the ideo­
vidual will discriminate simply because and hierarchical. Akerlof explained logical base for the caste system. Both
she has a taste for it. This is due to pre­ caste discrimination within the statisti­ also recognised brahminism as an ideo­
judice stemming from a set of beliefs or cal discrimination framework, in which logy of oppression and dominance ration­
values that are formed without any objec­ “the caste identity of the agent perceived alised by customary laws and religion,
tive consideration of fact. The statistical by other agents is seen as an indicator of and the brahmin as the leading defender
32 m ay 12, 2012 v o l x l v i i n o 19 QB5H Economic & Political w eek ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:51 UTC
All use subject to https://about.jstor.org/terms
BOOK REVIEW

of the caste system. Both used the frame­ covering the views of Ambedkar, the of caste disparity. And also indicates
work of the caste conflict, while Phule author has deprived herself of his rich that the scheduled castes (scs) continue
articulated the caste conflict between contribution to the theoretical aspects of to belong to the lowest rung of the eco­
brahmins and the low/lowest caste (the caste system. nomic ladder, calling into question any
shudras and ati-shudras). Periyar viewed notion of substantial upward mobility.
it as a conflict between the brahmin and Dynamic of Caste System She then goes on to explain the inequali­
the non-brahmin. Thus, both in Phule The caste system as an institution has ties in human development between the
and Periyar, the brahmin/non-brahmin also undergone a significant change. scs and the rest. The book provides con­
or shudra/ati-shudra conflict constitutes Deshpande deals with this issue, draw­ siderable evidence that while part of the
the central element that shapes Indian ing mainly from the current theories. present inequalities are a result of past
society. However, both refrained from Akerlof believed the mechanism of social discrimination, part of them are also
defining the essential features of “brah- ostracism (with social and economic due to continuing discrimination in em­
minism”. Also, although both refer to penalties) to be the main deterrent to ployment and wage earning in the for­
the nature of oppression and dominance change from the customary norms of mal private sector in rural and urban ar­
involved in the caste system in a general caste relations both by the high and low eas in the “present”. In the end, the au­
way, their analysis is devoid of analyti­ castes. The greatest rewards go to those thor observes that “(the) evidence indi­
cal discussion of its dimensions. who do not break social customs. There­ cates that lip service to merit notwith­
It was Ambedkar who dealt with these fore, the high castes who enjoy privileges standing, the working of the markets
issues with more clarity and richness. In have their prejudices and desire to per­ shows a deep awareness of caste and
fact, Ambedkar gave an overall theory petuate domination, and prevent collec­ religion cleavages and indeed perpetu­
of the caste system (and not just its eco­ tive action for change in the caste sys­ ates caste discrimination in the present”.
nomic theory), and dealt with its origin tem. For the lower castes, fear of social
and growth, linkages with Hindu reli­ ostracism by the high castes discourages Affirmative Action Policies
gious ideology, its features and the conse­ a move for change. The author rightly The last chapter, “What Is To Be Done?”,
quences. Ashwini Deshpande discusses points out the limitations of the “cost deals with the intensely debated issue of
the contribution of Ambedkar but begins and gains hypotheses” and urges an policies. It begins with the question: “Do
with an apologetic note. She observes, incorporation of the role of collective we need special policies to tackle discrimi­
“while we cannot reproduce the richness action for social reforms undertaken by nation and disparities or are universal
either of Ambedkar’s thoughts, it is only discriminated groups, legal reform, and anti-poverty or redistributive policies
appropriate for us to take a glimpse of the economic empowerment of dalits in enough to close the caste gaps?” All pos­
his economic critiques of the caste sys­ the theory of change. Scoville pointed sible issues relating to policies are raised
tem”. Indeed Deshpande gives only a out three barriers that ensure that insti­ and discussed. The discussion is focused
glimpse of Ambedkar’s views, limiting tutional change in the caste labour mar­ on the working of reservation policies in
herself to the consequences of the caste ket will be minimal or nil. Deshpande public employment and higher educa­
system and, in the process, leaves out his argues that in the modern occupational tion and its effectiveness in reducing
theoretical contribution to the theory of structure, heredity plays a much smaller disparities, and the major controversies
the origin and growth of caste and un- role and labour market barriers work surrounding these policies. Popular
touchability, and its features. She does differently. This needs to be explained. themes such as the issue of the creamy
refer to Ambedkar’s 1916 paper “Castes For the right reason she argues that layer, reservation and efficiency, percep­
in India: Their Mechanism, Genesis and while these theories try to explain the tion of non-dalits and dalits about the
Development” and the book Annihila­ changes in the caste system as a whole, effectiveness of policies are dealt with a
tion of Caste (1936), but does not discuss it is equally relevant to explain changes lot of frankness. The discussion provides
the element of theory and its compari­ that take place in degrees and parts, a good deal of insight into these popular
son with neoclassical writers, or with which, in fact, is the situation. controversies. After taking stock of the
Phule and Periyar. There is also no dis­ alternative views, in the end Ashwini
cussion of the views of Ambedkar on the Discrimination and Inequalities Deshpande concludes with three obser­
dynamics of caste, which is the subject After covering the ground in theory, vations. First, labour markets do not
matter of Annihilation of Caste. Beside Ashwini Deshpande analyses the eco­ function on the basis of first best, per­
the three essays, namely “Essential nomic outcome of the caste system in fectly competitive principles, but are in
Features of the Caste System”, “Unique terms of caste and gender disparities in fact discriminatory. Second, the Indian
Features of the Caste System” and the human development. Using the large affirmative action programme is only
“Philosophy of Hinduism” which exam­ data sets that are available on a variety partially successful and flawed in several
ined features of the caste system find no of indicators of material well-being, she ways, but in the absence of an alterna­
place in Deshpande’s discussion. The third aggregates them into what she calls the tive - a comprehensive and clearly arti­
essay examined the religious (ideology) “Caste Development Index”. She comes culated alternative - it should continue.
foundation of the caste system. By not out with strong evidence of a persistence Third, there is no evidence in support of
Economic & Political w e e k l y O BSI m ay 12, 2012 vol x l v ii n o 19 33

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:51 UTC
A ll use subject to https://about.jstor.org/terms
BOOK REVIEW

the claim that an affirmative action policy lower compared with their own caste lo­ groups. However, it seems that through­
lowers productivity or efficiency. In the cality. The (economic) gains hypothesis out the discussion she perceives affirma­
end, to realise caste equality she sug­ has to grapple with these situations. The tive action policy as a substitute to gen­
gests dual policies - general and restruc­ reason may be the social cost in the form eral policy and not necessarily as a com­
tured affirmative action policies. of social ostracism by persons of her plement to the general policy to address
own caste for violating the caste norms the group-specific problem of discrimi­
The Way Forward discourages them to go against custom­ nated groups. It is necessary to recognise
In the end Ashwini Deshpande summa­ ary norms. In an urban setting, however, that general policies of economic and
rises the central messages from the book some of this economic behaviour will education empowerment are required
in three insightful statements. First, disappear, while some would still remain. both for dalits and non-dalits. But the
caste identity matters for economic out­ Caste does not come into operation in dalits, besides general policies, also
comes. Second, markets have their limi­ buying or selling of goods in the urban need additional policies to overcome dis­
tations in overcoming the consequences market, but discrimination may persist crimination. For instance, development
of caste identity which operates through in urban housing. In either case the neo­ of education and skill will enhance the
the market and pre-market discrimination. classical theories have to address these employability of both dalits and non-dal­
Third, interventions in the market and issues in the Indian context. It is here that its, but the dalit with equal education
non-market institutions by the State in the Ambedkar’s (and Phule’s and Periyar’s) may still face discrimination in hiring
form of well-articulated affirmative action contributions bring some insights into (which high caste may not). So for a dalit,
policies are necessary to combat dis­ understanding the formation of attitude/ whether or not one likes the general pol­
crimination and reduce caste disparities. prejudice/stereotypes and the resultant icy it will have to be supplemented by af­
However, the book also makes appeals behaviour of the higher castes. Ambedkar firmative action to provide safeguards
for advances in research on theoretical, attributed the discriminatory behaviour against discrimination in hiring. Much
empirical and policy fronts to improve to the ideology - religious and social - of the confusion that we see on this issue
our understanding and to bridge the which determined the rules and norms is due to the failure to draw a distinction
gaps. The most important issue relates of discriminatory behaviour of the higher between the problems of the non-dalit
to the dynamics of the caste system. castes towards the lower castes. It is this poor and dalit poor. It is these genuine
While neoclassical theories offer a good philosophical support, that gives solidity concerns that Deshpande expresses in a
deal of insights, Deshpande also points out to the caste system. section on policy.
their limitations in explaining change To what extent the ideologically gov­ In the view of the fact that there is
and continuity in the caste economy. erned norms and codes are influenced growing demand for group-specific poli­
While these theories say that “prejudic- by the complex set of forces such as the cies based on caste, ethnic and religious
es/stereotypes/beliefs” shape discrimi­ “economic gains” offered by the market belonging, the book is timely insofar as
natory behaviour, they do not inform us economy, the economic, social and en­ it dwells on the issue of group inequali­
how “prejudices/stereotypes/beliefs” are forcement costs, economic mobility among ties and offer a good deal of insights. It is
formed in the first place. the dalits, legal safeguards (against dis­ going to be of immense utility to re­
The statistical discrimination theory crimination) is an area which needs re­ searchers on the economics of discrimi­
which suggests imperfect information as search about which Deshpande shows nation, policymaking, and, above all, in
a source of discrimination is wanting in concern and urges the theorist to incor­ teaching in higher educational institu­
explaining the behaviour of the higher porate them into the theory of change. tions, which Ashwini Deshpande began
castes in the village market setting where This also calls for empirical research on several years earlier.
employers or buyers have full informa­ factors governing change in the caste
tion about the untouchable workers (and system so that policies are based on Sukhadeo Thorat (ithoratsukhadeo@yahoo .
their own caste workers) through a long­ the evidence. co.in) teaches economics at the Centre for
Regional Development, Jawaharlal Nehru
time association and yet selectively in­ The lack of clarity on the forces influ­
University, Delhi and is chairman, Indian
dulge in discrimination in hiring of un­ encing change also brings in an ambiva­ Council of Social Science Research.
touchable workers in some farm opera­ lence on the policy front, about which
tions such as harvesting of fruit or vege­ the author expresses concerns - the
table and household work. Or even if the ambivalence relates to the nature and Economic&PoliticalwEEKLY
untouchable business person sells milk/ priority about the policies needed to re­
available at
vegetables at a price lower than the high duce caste disparities and discrimina­
caste seller, the higher caste buyer may tion. Drawing from the theoretical and Delhi Magazine Distributors
not buy from the untouchable seller. Or empirical insights she does propose dual Pvt Ltd
the high castes may refuse to rent a policies, namely, economic and educa­ 110, Bangla Sahib Marg
house or buy a new one or land for resi­ tion policies for all (including towards New Delhi 110 001
dence in an untouchable locality, even if discriminated groups of dalits) and Ph: 41561062/63
the rent/price of house/land price is affirmative action policy for discriminated
34 may 12, 2012 vol x l v ii n o 19 QB9 Economic & Political w b b k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:51 UTC
All use subject to https://about.jstor.org/terms
BOOK REVIEW

same amount of traffic as five lanes (p 153)


A Superficial Picture and nine lanes of bus traffic (p 168, italics
mine). He thus displays a strong in-built
bias against low-cost models at the highest
C RAMACHANDRAIAH policymaking levels in the Government of
India, often influenced by the “one-point
he national urban transport policy agenda” of the transport consultants.

T
Metro Rail Projects in India: A Study in Project
( n u t p ) , 2006 talks about “more Planning by M Ramachandran (N e w D elh i: Oxford One does not find references or sources
U niversity Press), 2 0 1 2 ;p p x v i+ 1 9 5 , Rs 495.
equitable allocation of road space of information for these assertions.
with people, rather than vehicles, as its Of the 13 chapters, there is one on each
main focus”. While the n u t p appears metro systems”. It is not clear what he of the cities of Delhi, Bangalore, Kolkata,
very progressive, like many of the govern­ means: should 13 more cities plan or Chennai, Mumbai, Hyderabad, Jaipur
ment’s policies, what one finds in imple­ complete the metros to qualify India as a and Kochi. The book provides a brief his­
mentation in most cities is the opposite. developed country? Is this a prerequisite tory of the metro or light rail transit ( l r t )
In addressing the much neglected issues for ranking as a developed country? projects in each city and the process of
of urban transportation, the metro rail This book thus takes the need for metro evolution till the present stage. Quoting
in Delhi has set the tone for similar rail as inevitable, suggesting that they probably from the project reports, it also
projects in other cities in India. Without should be implemented at any cost in as provides a very rosy picture of the
addressing the basic concerns of mobility, many cities as possible. economic and internal rates of return.
the focus has been on a highly capital- As a senior officer, one would have Apart from the introduction and conclu­
intensive technocratic model. expected the author to argue for metro sion, there are three other chapters. The
The Japanese Bank for International rail as part of an integrated mass rapid chapter on “basic technical details”
Cooperation ( j b ic ) has extended loans transit system ( m r t s ) . There is a heavy looks as if the information has been sim­
to several of these mega-projects; the bias towards metro rail although the ply copied and pasted from metro pro­
stock imported for metro projects such author describes bus systems as the least moters’ project reports or brochures.
as in Delhi comes from Japanese/Korean expensive form of m r t s (p 12) and dis­ Otherwise, how does one understand a
companies. The growing clout of inter­ cusses successful examples of bus rapid statement like “[f]or the general public,
national and Indian construction compa­ transit systems ( b r t s ) in Latin American it is desirable that the station has ‘an
nies has become very prominent in countries. However, buses apparently attractive welcoming image’”?
pushing the urban infrastructure agenda have a “bottom of the market” image. The chapter “Some Global Compari­
during the economic reforms period. So, image becomes an important factor. sons” begins with London, provides an
This model is being thrust on cities The author admits that in most cities, elaborate account of Singapore and ends
without any regard to the specific his­ the emphasis of traffic policy is on with the d m r c . Metro promoters’ claims
torical characteristics, streetscapes and keeping traffic moving. This leads to about the numbers of vehicles going off the
heritage of the cities. Thus, from Delhi “widening of roads, cars getting priority road, the pollution not emitted, reduction
to Bangalore, Chennai, Hyderabad, road space, and pedestrians and cyclists in travel times, etc, have been converted
Kochi, Jaipur and Pune, the same model getting crowded out” (p 11); the pressure into monetary gains, with the assertion
has been “copied and pasted”, with the on urban systems increases due to the that “the entire cost of Phase 1of the d m r c
Delhi Metro Rail Corporation (d m r c ) growth of motor vehicles. The argument has been recovered by the city in 2010”!
acting as the prime consultant and is that reduction of road congestion is the
conducting feasibility studies. The basics motivating factor for adopting m r t s Numbers and Experience
have been ignored while orchestrating the (read metro rail). There is no question­ One of the factors argued in favour of
image-building of cities as “world class”. ing of why traffic policy gives priority metro rail is that they are “eco-friendly”.
road space to cars. What has the ministry But the author admits that the “operation
Inevitability of a Metro? done to check this trend? of an m r t s is energy intensive (italics mine),
The book under review was penned by Metro rail projects are pushed as since all aspects of it depend upon elec­
M Ramachandran, former secretary in stand-alone systems in several cities, trical energy” - running of trains, station
the Ministry of Urban Development, who though there is talk of integration at the lighting, ventilation, air conditioning,
was closely associated with policymaking local level. As Dinesh Mohan argues in a elevators and escalators, fire fighting and
for metro rail projects in Indian cities. He quote, the prevailing mythology is that pumping, signalling, telecommunications,
was chairman of metro ventures in four the metro rail “will somehow solve all workshops, depots and other maintenance
cities. In the foreword, E Sreedharan, future problems”; this remains the “one- infrastructures. Therefore, the reliability of
managing director of the d m r c says: “By point agenda of almost all transport con­ power supply is a vital prerequisite (p 58).
2015 India will rank as a developed sultants in India” (p 12). However, the Can the per capita consumption of energy
country and by that reckoning 13 more author makes unsubstantiated averments per passenger per kilometre in a metro
cities should start planning for their against the b r t s : metro rail carries the system be lower when compared to other
Economic & Political w eek ly Q3E3 m ay 12, 2012 v o l x l v i i n o 19 35

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:52 UTC
A ll use subject to https://about.jstor.org/terms
BOOK REVIEW

modes of transport? Dinesh Mohan (2008) A serious fallout of the metro projects error and is best explained by strategic
cites from other studies to show that the in Indian cities is the total sidelining of misrepresentation, that is, lying” and
carbon dioxide (co2) emissions (from alternative cheaper modes of transport “members of the public who value honest
coal, diesel or gas power plants) for met­ projects since the metro projects came to numbers should not trust cost estimates and
ro rail are almost double than for buses centre stage. Thus, the b r t s has become cost-benefit analyses produced by project
because of extra efficiency losses at power a dead issue in Hyderabad. Phase 2 of promoters and their analysts” (italics mine).
plants and during transmission. It is, the multi-modal transit system (m m ts ),
however, claimed in the book without which should have been completed in Faulty Processes?
reference to any study that the metro 2005 at a cost of Rs 600 crore, has not The author admits that the metro projects
requires only one-fifth of energy (italics been allocated any money so far. And the worldwide are operated in the public
mine) per passenger compared to road- road transport corporation ( r t c ) buses sector and not through public private
based systems (p 153). that carry 30 lakh persons every day partnerships (ppps). T w o private sector
Why do passenger estimates and actual continue to get stepmotherly treatment. projects in Kuala Lumpur needed bailing
ridership not match even remotely? The In Kochi, too, former mayor K S Johan, out by the government. The author elabo­
book does not give a clue. It admits that argues that “ever since the idea of metro rates on why not going the ppp way was a
traffic demand projections have been off rail got circulated all other public trans­ “well-considered” decision for the Chennai
the actual ridership for the d m r c . For port projects got shelved” and “several metro (pp 168-69). Several of those
Bangalore, it says that 8.2 lakh trips per simple, inexpensive, practical and sustain­ reasons are applicable to other cities, such
day “seems to be an overestimate”. The able recommendations made after very as Hyderabad, where the metro was
Namma Metro is being built on overesti­ serious studies by expert organisations pushed through a ppp. Why are the
mates of 10.2 lakh by 2011 and 16.1 lakh have been ignored which are highly suit­ Government of India and the Planning
by 2021 (p 77). Is it worth building at able for a sprawling, water-divided city like Commission giving high priority for ppps
such a huge cost when the actual rider­ Cochin” (Johan 2010). Ramachandran, in metro rail projects in these cities?
ship is going to be much lower? meanwhile, has this to say for the city: In the chapter on project planning,
Passenger projections for Hyderabad “It is not feasible to operate buses beyond the author advocates a comprehensive
Metro Rail (h m r ) show several discrep­ 10,000 phpdt [Peak Hour Peak Direction mobility plan (cm p ) for the city along
ancies from year to year. Strangely, the Traffic] in a mixed transport scenario” with a proper appreciation of the alter­
concession agreement signed with Larsen (p 148). There is no substantiation as natives available before deciding on
and Toubro ( l& t ) in September 2010 to why. investment in a metro system. Yet no­
brought down the total passenger kilo­ The book argues that the fare structure where does the book talk about strength­
metres (pkm ) to 2.14 crore per day for for the Delhi metro is probably the ening existing transport modes like the
1 October 2024 from the 2.75 crore for “cheapest in the world”, except for the bus systems, local trains, etc, apart from
1 October 2021 in the ill-fated agreement Kolkata metro (p 51), ignoring the fact walking and cycling, before undertaking
with Maytas in 2008. that the fare in local trains operated by expensive metro projects. For instance,
Further, by definition, h m r includes Indian Railways are the cheapest - the highest share of trips in Chennai
the rail system and real estate develop­ Mumbai, Chennai and Hyderabad. Cost (p 101) is made by walking (32.7%) and
ment. Hundreds of acres of land, worth escalation has occurred in every city buses (25.8%). No mention is made of
thousands of crores, are being handed (with the probable exception of Delhi). steps taken to strengthen these. Other
over to l & t , making it more a real estate h m r ’s project cost has gone up from about factors like the urban form and city aes­
rather than a transport project, h m r was Rs 6,000 crore in 2005 to Rs 12,132 thetics, etc, should enter into decision­
earlier also linked to the infamous crore in 2008 and now to over Rs 16,000 making. The reader wonders whether as
Satyam scandal when Maytas got this crore, that is, even before the work has head of metro projects and at the helm of
project in 2008 (Ramachandraiah 2009). formally begun. No stay order by a court the ministry of urban development, the
The book makes light reference to these of law is responsible for this state of author followed any of these prescriptions.
issues: “On what basis did Maytas opt affairs. There is a lack of transparency Cities like Hyderabad do not have a
for a negative bid knowing that metros and lack of public debate on what is cm p . The present model of the elevated
are not so viable and that private metros needed for the city, as well as the domi­ metro is a disaster with the city’s urban
have not succeeded anywhere in the nation of civil servants, consultants and form, heritage and aesthetics. This resulted
world?” How did the state government contractors in policymaking. because the detailed project reports
agree to part with large chunks of gov­ The overwhelming evidence found by (d p rs) did not go through public hearings/
ernment land? The book admits that Flyvbjerg et al (2002) based on 258 consultations at the formulation stage.
“there is no transparency regarding the transportation infrastructure projects in The Environment Impact Assessment
actual details”. Then, why was no different countries is worth recalling: (e ia ) reports are not comprehensive and
enquiry conducted? How was the project “the cost estimates of such projects were sometimes very substandard, as in the
offered for global bidding on the same highly and systematically misleading. case of Hyderabad. Earlier h m r projects
model to l& t ? Underestimation cannot be explained by were listed for mandatory environmental
36 may 12, 2012 vo l x l v ii n o 19 13359 Economic & Political weekly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:52 UTC
All use subject to https://about.jstor.org/terms
BOOK REVIEW
clearance in the Draft e i a Notification of historical importance face the threat behaviour (pp 51, 162). One wonders
dated 15 September 2005. But they were of defacement or dwarfing by elevated whether the experience of overcrowding
excluded in the Final Notification dated metro corridors. This is more evident in for metro commuters, due to the neglect of
14 September 2006. The only basis for Hyderabad than any other city, with the bus transport on roads, is really world-
their exclusion appears to be a letter ad­ city’s landmark, the Assembly building class. How does the feeling change when
dressed by E Sreedharan on 14 November and the entire Public Gardens, destined the passenger looks for a cycle rickshaw
2005 to the Joint Secretary, Ministry of for defacement beyond redemption. The at the next point of connectivity, and
Environment and Forests ( m o e f ) , re­ heritage conservation committee ( h c c ) in faces the threat of getting knocked down
questing their exclusion on the grounds Hyderabad has suggested that the metro by speeding cars while crossing the
that they are environment-friendly. So, go underground at the heritage buildings. roads outside the metro station?*&
the scope for democratic processes was But it does not have statutory powers.
subverted at the highest levels in the While metro systems are favoured in C Ramachandraiah (crchandraiah@ gmail.com)
government, preventing local people or congested cities to ease traffic conditions, is w ith the Centre for Economic and Social
experts from having any say in the the Government of India is making it a Studies, Hyderabad.

project formulation. The d m r c ’s involve­ condition for land use densification


ment in the preparation of d p r s has around the stations to increase ridership REFERENCES___________________________
Flyvbjerg, Bent, Mette Skamris Holm and Soren
become reason to stifle all counter and “decrease the overall travel demand” Buhl (2002): “Underestimating Costs in Public
views. All decisions are taken at higher (p 111). On one hand, metros are pushed Works Projects: Error or Lie?” Journal of the
American Planning Association, 68(3): 279-95.
levels and thrust on the city. to ease congestion. It is also admitted that
Johan, K S (2010): “An Affordable and Viable Trans­
In Delhi, the Urban Arts Commission the metros are not meeting the ridership port System for the People of Cochin - A Pro­
( u a c ), set up under an Act of Parliament projections. On the other hand, densifi­ posal”, Presentation at the National Meet on
Urban Mobility, Pune, 20-21 July.
in 1973, has played a critical role in cation is made mandatory near metro Mohan, Dinesh (2008): “Mythologies, Metro Rail
approving the metro design in several stations/corridors. Is higher densifica­ Systems and Future Urban Transport”, Economic
& Political Weekly, 43(4)'- 41-53.
places, especially near heritage buildings tion possible in already congested cities Ramachandraiah, C (2009): “Maytas, Hyderabad
and precincts. Most cities do not have without large-scale demolitions? Or is the Metro and the Politics of Real Estate”, Economic
& Political Weekly, 44(3k36-40.
such strong legal entities to advise the purpose to promote real estate and malls Sanyal, Sanjeev, Sumathi Nagrath and Gorika Singla
government at different levels on aesthetic near metro stations to induce travel? (2009): Alternative Urban Futures Report.
Urbanisation and Sustainability in India: An
quality and urban and environmental Finally, the author claims Delhi metro Interdependent Agenda, World Wide Fund for
design. Heritage buildings and precincts is changing travel styles and social Nature, New Delhi.

Books Received
Alagh, Munish (2011); Agricultural Prices in a Das Gupta, Sanjukta and Raj Sekhar Basu, ed. Nambiar, Harish (2012); Defragmenting India:
Changing Economy: An Empirical Study of Indian (2012); Narratives from the Margins: Aspects of Riding a Bullet through the Gathering Storm
Agriculture (New Delhi: Academic Foundation); Adivasi History in India (Delhi: Primus Books); (New Delhi: Sage Publications); pp viii + 240,
pp 174, Rs 695. pp xiii + 298, Rs 995. Rs 350.
Baneijee, Nirmala, Samita Sen and Nandita Dhawan, Dasan, M, VPratibha, Pradeepan Pampirikunnu, and Poyil, Manjula (2012); Homage to the Departed: A
ed. (2012); Mapping the Field: Gender Relations C S Chandrika, ed. (2012); The Oxford India An­ Study of Funeral Customs among the Tribes in
in Contemporary India (Vol 2) (Kolkata: Stree); thology of Malayalam Dalit Writing (New Delhi: Malabar, Kerala (Calicut: Other Books); pp xii
pp xliv + 594, Rs 475. Oxford University Press); pp xxxiii + 322, Rs 595. + 279, Rs 460.
Baral, Lok Raj (2012); Nepal: Nation-State in the Goede, Marieke de (2012); Speculative Security: The Ramanna, Mridula (2012); Health Care in Bombay
Wilderness - Managing State, Democracy, and Politics of Pursuing Terrorist Monies (Minneap­ Presidency 1896-1930 (Delhi: Primus Books);
Geopolitics (New Delhi: Sage Publications); olis, London: University of Minnesota Press); pp viii + 202, Rs 795.
pp xvii + 308, Rs 750. pp xxxii + 274, price not indicated. Ravikumar, R and Azhagarasan, ed. (2012); The
Basant, P K (2012); The City and the Country in Early Jafri, S Z H, ed. (2012); Recording the Progress of Oxford India Anthology of Tamil Dalit Writing
India: A Study ofMalwa (Delhi: Primus Books); Indian History: Symposia Papers of the Indian (New Delhi: Oxford University Press); pp xxxiii
pp x + 369, Rs 1,150. History Congress 1992-2010 (Delhi: Primus + 334, Rs 595-
Basu, Pradip, ed. (2012); Red on Silver: Naxalites Books); pp xii + 546, Rs 1,495. Riello, Giorgio and Prasannan Parthasarathi, ed.
in Cinema (Kolkata: Setu Prakashani); pp 458, Kak, Shakti and Biswamoy Pati, ed. (2012); Enslaved (2012); The Spinning World: A Global History of
Rs 650. Innocence: Child Labour in South Asia (Delhi: Cotton Textiles, 1200-1850 (Delhi: Primus Books);
Bergunder, Michael, Heiko Frese and Ulrike Schroder, Primus Books); pp 340, Rs 995. pp x + 489, Rs 1,795.
ed. (2012); Ritual, Caste, and Relgion in Colonial Kennedy, Andrew Bingham (2012); The International Roy, Kumkum, ed. (2012); Insights and Interven­
South India (Delhi: Primus Books); pp 386, Ambitions of Mao and Nehru: National Efficacy tions: Essays in Honour of Uma Chakravarti
Rs 1,095. Beliefs and the Making of Foreign Policy (New Delhi: (Delhi: Primus Books); pp vi + 191, Rs 795.
Caldwell, Dan (2012); Vortex o f Conflict: US Policy Cambridge University Press); pp x + 261, Rs 795. Sekher, Ajay (2012); SahodaranAyyappan: Towards
toward Afghanistan, Pakistan and Iraq (New Delhi: Mantena, Rama Sundari (2012); The Origins of a Democratic Future Life and Select Works
Cambridge University Press); pp xiv + 390, Modem Historiography in India: Antiquarianism (Calicut: Other Books); pp 266, Rs 395.
Rs 995- and Philology, 1780-1880 (New York: Palgrave Sen, Sailendra Nath (2012); Chandernagore - From
Chatterji, Roma (2012); Speaking with Pictures: Macmillan); pp xiii + 261, price not indicated. Bondage to Freedom 1900-1955 (Delhi: Primus
Folk A rt and the Narrative Tradition in India Mukherjee, Ramkrishna (2012); The Measure of Books); pp xv + 376, Rs 1,150.
(New Delhi: Routledge); pp xvii + 299, Rs 995. Time in the Appraisal of Social Reality (Delhi: Seshan, Radhika (2012); Trade and Politics on the
Dalton, Dennis (2012); Mahatma Gandhi: Non­ Primus Books); pp 88, Rs 595. Coromandel Coast: Seventeenth and Early
violent Power in Action (New York: Columbia - (2012); Why Unitary Social Science? (Delhi: Eighteenth Centuries (Delhi: Primus Books);
University Press); pp xxiv + 311, $27.5. Primus Books); pp 132, Rs 695. pp 137, Rs 695-

Economic & Political weekly [3353 may 12, 2012 vo l x l v ii n o 19 37

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:52 UTC
All use subject to https://about.jstor.org/terms
INSIGHT

In the Jungle of Law a wider historical context of left-wing


struggles and particularly, adivasi asser­
tion in the state. Finally, we present
Adivasi Rights and Implementation quantitative data and ethnographic ob­
of Forest Rights Act in Kerala servations on the implementation of the
f r a in Wayanad. We argue that the well-
intentioned, national law was not the
right means to solve the district’s adivasi
URSULA M U N STER , SUM A VISHNUDAS_______________________________________________ struggles for land - the majority of the
region’s scheduled tribes ( s t s ) today are
This article examines the he Forest Rights Act ( f r a ) 2006,1 landless labourers, not living on forest­
implementation of the Forest
Rights Act of 2006 in the
historical context of Wayanad’s
T representing a legislative landmark land. Wayanad’s diverse adivasi groups
in the history of forest laws in India, have received only a token amount of
was passed by India’s United Progressive land, if any, under the f r a .
Alliance (u p a )2 government to restore The findings are based on several
adivasi land struggles. The the rights of “forest-dwelling scheduled periods of ethnographic fieldwork from
left-wing Government of Kerala tribes” and “other traditional forest 2009 to 2012. We conducted participant
dwellers” to control and use natural re­ observation in different adivasi colonies
(2006-11) aimed to interpret the
sources. The f r a aims to recognise peo­ and hamlets in Wayanad’s forest border­
f r a as a legal opportunity to ple’s ownership and land-use rights at ing the panchayats of Pulpally, Noolpuzha,
obtain forest (department) land the individual and community level and, and Sultan Bathery. In order to ethno-
and to fulfil decade-old promises at the same time, to integrate conserva­ graphically document how the local
tion. Scholars and activists in India have state, in its institutional and personal
to redistribute land to landless
praised the Act as a “testimony to the diversity, works to achieve the task of
adivasis. However, the provisions power of people’s movements to partici­ introducing such a far-reaching, legal
of the Act were not the right pate in and push the legislating process” reform, we spent many hours in govern­
means to bring them (Sundar 2011:184) and an opportunity to ment offices, leading extensive discus­
correct the “historical injustice”, as stated sions with higher- and lower-level officials
redistributive justice. The
in the Act’s preamble, committed against of the main government agencies involved:
well-intentioned f r a failed to India’s forest dwellers. Adivasi3 organi­ the tribal welfare department, and the
make an impact in the specific sations such as the Campaign for Survival forest department ( f d ) , as well as with
historical and legal environment and Dignity ( c s d ) , a federation and representatives of the local self-govern­
national platform of tribal and forest ment (grama panchayat, grama sabha,
of the region.
dwellers’ organisations,4 have celebrated ooru koottam).6 We also interviewed
the f r a as a possible means of introducing involved forest range officers, foresters,
more inclusive and democratic forms of forest rangers, forest guards, and forest
environmental governance. It “makes a watchers working in different ranges of
beginning towards giving communities north and south Wayanad’s forest divi­
This research was part of a larger project on and the public a voice in forest and wild­ sions, as well as the Wayanad Wildlife
Wayanad’s political ecology of forest life conservation”, as stated on the f r a Sanctuary. Additionally, we travelled
conservation, funded by the German Research homepage, managed by the c s d . 5 with tribal extension officers ( t e o s ) and
Foundation. We would like to acknowledge the
support of R Siddappa Setty at a t r e e ,
This article critically engages with the tribal promoters on their visits to adivasi
Bangalore and to thank C KVishnudas for his implementation of the f r a in Wayanad, hamlets. In order to balance official per­
research assistance. We also thank Daniel Kerala. As a necessary background, we spectives on the f r a implementation,
Munster, Daniel Taghioff, Philip Zehmisch and start with a summary of the controversial we asked adivasi-activists, members of
the anonymous reviewer for their constructive
debate about the Act using primary and environmental groups, non-governmental
reading of our text.
secondary sources. We discuss both cri­ organisations ( n g o s ) workers, and com­
Ursula Munster (ursula.muenster@ethnologie. tiques of the legal provisions in the f r a , mittee members of the joint forest man­
lmu.de) is a postdoctoral researcher at the
as well as the deficiencies in implement­ agement ( jf m ) programme for their ex­
department of anthropology and a research
fellow at the Rachel Carson Center, Ludwig ing it, that were expressed by civil society periences and assessments.
Maximilians University Munich, Germany and organisations and from within India’s Methodologically, our study continu­
Suma Vishnudas (sumavishnudas@yahoo. political establishments at the central ously shifted between the field sites in
co.uk) is a PhD student, department of and state level. Second, we situate the Wayanad and an analysis of primary and
anthropology, Kannur University, Kerala.
implementation of f r a in Kerala within secondary sources (newspapers, reports,
38 may 12, 2012 v o l x l v ii n o 19 t&HSl Economic & Political weekly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:55 UTC
All use subject to https://about.jstor.org/terms
INSIGHT
and legal documents). Working with shortly after the announcement of the a joint declaration13 adopted by various
actors in the field (officials, as well as f r a rules on 1 January 2008, most states organisations, gave testimony of the ris­
potential beneficiaries) uncovered a great and union territories with traditional ing discontent among adivasis about
sense of confusion, ambiguity, and even forest dwellers began implementing the the failure of the new Act to strengthen
ignorance about the f r a . On the other Act (Government of India 2010:10). their rights.
hand, official reports (like that of the However, almost three years later, in
National Forest Rights Act Committee December 2010, a report on the state of Kerala’s Left-Wing Involvement
( n f r a c ) ) very often lacked a sense of implementation of the f r a submitted by In Kerala, members of the Communist
people’s lived experience of the local the n f r a c 8 dampened euphoria about Party of India (Marxist) - c p i (m ) continue
government implementing such a grand the Act’s reformative scope. The report to uphold the f r a as a great victory for
legislative innovation. Thus, in this arti­ makes it clear that there have been seri­ tribal rights in the country. The c p i ( m )
cle, our reading of the f r a and its imple­ ous deficits in the way the f r a was im­ representatives depict the f r a as the
mentation in Wayanad is informed by plemented. Major problems were identi­ outcome of political pressure from the
heterogeneous discourses among vari­ fied which prevented the new legislation left, supporting the u p a government in
ous players, government officials and from being entirely successful and effec­ the centre14 between 2004 and 2008.15
others, about the f r a , its impact, contro­ tive.9 One of the key challenges of the As a matter of fact, the cpi(M)-led coali­
versies, failures, and shortcomings, as implementation process was the involve­ tion (2006-11) in Kerala was one of the
well as about the hopes and expecta­ ment of three government agencies first state governments to have complet­
tions it created. A widespread sense of which have traditionally pursued con­ ed the f r a ’s implementation process
“failure” of the f r a to make an impact tradictory objectives: the Ministry of (Sathyapalan 2010: 72). Nevertheless,
on adivasi lives in Wayanad encouraged Tribal Affairs ( m o t a ) , the Ministry of there has been harsh critique of the f r a ’s
us to seek the regional, historical, politi­ Environment and Forests ( m o e f ) and implementation by the left-wing govern­
cal, and legal reasons behind the defi­ the revenue department (Government of ment in the state. Adivasi activists and
ciencies in the Act’s implementation. India 2010; Sathyapalan and Reddy environmentalists alike argue that the
2010: 37). Many rules of the f r a have c p i ( m ) made use of the Act for their own
Controversies over the FRA not been implemented so far. It is in­ political gain in Kerala’s competitive
Since the very beginning, the passing of creasingly clear that the implementation party politics.16 It is claimed that the
the f r a has been accompanied by a was stalled by interdepartmental con­ Communist Party’s political lobbying in
keenly contested debate in India. Adver­ flicts, bureaucratic and legal confusion the centre led to several amendments to
saries of the law claimed that it would (Sathyapalan 2010), a lack of provision the f r a 17 and, most importantly, pro­
lead to “eco-suicide”,7 to massive des­ of information and publicity (Kothari voked the extension of the f r a ’s cut-off
truction of India’s remaining forest eco­ 2011) and by conflicts about who is eligi­ date for the recognition of land rights
systems, and should thus be repealed. ble for rights under the Act (Sathyapalan from 25 October 1980, as proposed in
The so-called “wildlife lobby” (Sundar 2010; Kothari 2011). In the absence of an the original bill, to 13 December 2005.18
2011: 186) among Indian middle class accepted census of who had been occu­ Arguably, the c p i (m ) ’s request for this
environmentalists has expressed parti­ pying what land, many individual claims change of date emerged from a situation
cularly harsh criticism of the new legis­ under the f r a were rejected.10 of unsolved adivasi land issues in Kerala.
lation. Regarding the survival of wildlife Soon after the publication of n f r a c ’s The communists’ motive, as c p i ( m ) mem­
being incompatible with intensified hu­ report, the National Advisory Council bers and environmentalists explained in
man interference in forest areas, many ( n a c ) , advisory board of the central u p a our interviews, was to use the f r a as
wildlife lovers raised objections to the government chaired by Congress Presi­ a means to legalise adivasi encroach­
policy changes provided by the f r a and dent Sonia Gandhi, took up the report’s ments on forestland, which had mainly
its aim of a more inclusive form of forest critique. Recommendations and amend­ been supported by the Adivasi Kshema
governance (Sethi 2007). Some voices ments to the f r a were published by the Samithi (a k s ) , the “tribal wing” of the
amongst conservationists are currently n a c , to be issued under Section 12 c p i ( m ) before 2005. Especially in Wayanad

even calling for a return to “fortress of the f r a 11 (Shrivastava 2011: 9).12Cur­


style” conservation methods (Brocking- rently all over India, adivasi organisa­
ton 2002; Guha 2003), as K Sivara- tions, representatives of different com­ Economic&PoliticalwEEKLY
makrishnan notes: “Most recently, hard munities and n g o s are demanding that available at
line conservationists decry as romantic the government make sure that a lawful
K C Enterprises
the people and parks programmes that and sufficient implementation of the
3-6-136/6, Street No 17
build on notions of possible coexistence f r a takes place. Recently, in October
Himayathnagar
between wild animals and farming and 2011, discussions held at the Community Hyderabad 500 029
other forest-dependent communities” Rights Sangama, a four-day national Andhra Pradesh
(Sivaramakrishnan 2011: 102). Yet in adivasi convention in Kushalnagar in Ph: 66465549
spite of widespread opposition to the Act, Karnataka’s Kodagu district resulting in
Economic & Political w e e k l y IBB59 m ay 12, 2012 vol x l v ii n o 19 39

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:55 UTC
All use subject to https://about.jstor.org/terms
INSIGHT
district, the extension of the cut-off date cultivation of millets and vegetables. Ad­ were designated as “reserved forests”,
for legalising claims under the f r a played ditionally, they collected bamboo from whereas all non-forested areas which were
a critical role during the implementation the forest for weaving baskets and gath­ not “private forests” became “revenue
process. Those who benefited most from ered clay from the forest’s wetlands for land”. In the name of science, government
the f r a here were not the “traditional making pottery (Padmini 2001). forests were managed on commercial
forest dwellers” of the region, who only lines as sources of revenue for the state.
received nominal land grants, but land­ Alienation from Land and The customary community rights of the
less adivasis who had encroached upon Struggles for Justice adivasis to the forest were denied (see
vested forestland with the support of The story of the adivasis’ land alienation also Bijoy and Raman 2003), their tradi­
the cpi(M)-led a k s before 2005. in Wayanad goes back to the late 14th tional use of the forest was criminalised
to early 15th century, when the tribal and forest use was restricted to the collec­
Wayanad’s Adivasis kingdom under the Vedar kings (Mullu tion of minor forest produce (Philip 2004;
Wayanad is located in the hilly interior Kurumar) was abolished by the rajas of Kjosavik and Shanmugaratnam 2007).
in the biodiversity-rich mountain range Kottayam, a neighbouring chiefdom. The After Independence, the Government of
of the Western Ghats. According to the expansion of the administrative system India took over the ownership and man­
2001 Census of India, the total popula­ of Kottayam to Wayanad resulted in a agement of forests and continued a coer­
tion is 7,86,627, with a s t population of far-reaching transition of land relations. cive control over forest resources in the
1,36,062. In Kerala, it is the district with Temple economy and village division of name of conservation under the Wildlife
the highest percentage of s t -17.43% as labour replaced tribal self-governing. Protection Act 1972 and the Forest Con­
compared to 1.14% for the state as a Slowly, the ownership of land and power servation Act 1980. However, the f d
whole. The major adivasi communities was transferred to the hands of high- made use of the traditional knowledge
living in this region are Paniyar (44.77%), caste Nairs who were appointed by the of communities such as Kattunaikar and
Mullu Kurumar (17.51%), Kurichyar raja as caretakers of the temples and ad­ Urali Kurumar for managing the forest.
(17.38%), Kattunaikar (9.98%), Adiyar ministrators of the region (Kjosavik/ The Urali Kurumars were largely ap­
(7.10%) and Urali Kurumar (2.69%).19 Shanmugaratnam 2007; Kurup 2010). pointed by both the British and the Indian
Historically, these communities were Paniyars and the Adiyars became bonded f d , until the 1970s, as elephant trainers,

heterogeneous in their culture, kinship labourers under the upper-caste landlords and for trapping and taming wild ele­
organisation, and gender relations. These (jenmis) of Wayanad (Chettis, Nairs, phants.21Yet they remained in the forest
groups lived in economic and ritual inter­ Nambiyar and Jains). as illegal occupants at the mercy of the
dependence with each other and with Large-scale dispossession of Wayanad’s f d . They were transferred from one place

Hindu castes. They were situated in hier­ adivasis continued during colonial times, to another, depending on the department’s
archical relationships with each other. For when the British imperial government work requirements such as establishing
example, members of the Mullu Kurumar introduced land titles and new concepts elephant pits, cutting trees, planting new
and Kurichyar tribal groups were the of ownership and property in resource seedlings of teak trees and other works
region’s landholding agriculturalists. They use (Kurup 2010). Through the Indian related to the management of teak and
cultivated rice and other cereals on the Forest Act of 1882, scientific forest man­ other timber plantations on forestland.
communally owned, wet land and some agement was established on an all-India Between the 1930s and the 1970s, a
dry land near the forest with the help of level (Rajan 2006; Sivaramakrishnan further wave of violent alienation of
agricultural labourers from the Paniyar 2009; Rangarajan 1996). The land was Wayanad’s adivasis from their land took
and Adiyar communities. surveyed, divided into administrative place, caused by the large inward migra­
The forest was used by these peasant blocks, and ownership rights of forests tion of Christian settlers from Travancore
groups for hunting mainly deer, boar were fully taken over by the government. to Wayanad (Prasad 2003:32). Encroach­
and other small mammals. It was the Forests with the most valuable timber ments and illegal transfers of adivasi
place where they conducted worship and
rituals. Mullu Kurumar and Chettis20 also F.No. A-12011//3/2012-Ad.lA
Government of India
held cattle for consuming and, until re­
Ministry of Finance
cently, selling milk and ghee, so cows and Department of Economic Affairs
buffalo were sent into the forest’s grass­ *** ***
land for grazing. Forests were the sole Subject:-Vacancy Notice
source of livelihood of the non-sedentary One post of Chief Economic Adviser in the Ministry of Finance, Department of
forest-dwelling Kattunaikar, hunters and Economic Affairs in the pay scale of Rs. 80,000/- (fixed) is proposed to be filled on
ad hoc deputation (including short term contract) / contract basis.
gatherers, collecting mainly tubers, medi­
For full details of the post and eligibility, visit official website of Ministry of Finance-
cinal plants and wild honey until the arrival ‘finmin.nic.in’.
of the British (Nair 1911). The Urali Kuru­ (Neelam Vohra)
mar, traditionally weavers and potters, Under Secretary to the Govt, of India
Tel.No.23093744
occasionally used the forest for swidden
40 m ay 12, 2012 vol x l v ii n o 19 DDES Economic & Political w b e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:55 UTC
All use subject to https://about.jstor.org/terms
INSIGHT
land - mainly of agricultural land held forestland for at least three generations marginalised in the long process of land
under customary leases by Kurumar and ( f r a , Chapter 1, Section 2(0)). In Kerala, reform which was implemented primarily
Kurichyar - again led to extensive dis­ under the land reform tribunals of the through land tribunals in the 1970s.
possession of the adivasis. Therefore, 1970s, all disputed land claims had been The Kerala Private Forests Vesting and
these traditional farming communities settled. Therefore, if Chettis live on forest­ Assignment Act of 1971 had likewise only
became agricultural labourers under the land today and do not have an ownership partly been realised to their advantage.
migrants (Prasad 2003). As a result, document for their land, their possession Some of the vested forests taken over by
Wayanad’s adivasis are predominately of land was not legalised during the land the government were brought under
landless labourers22 today, living in over­ tribunals. Hence, according to the forest “Tribal Rehabilitation Projects” which
crowded colonies, with Adiyar, Paniyar, officials’ statement, their occupation is in proved, however, to be quite unsuccess­
Kattunaikar and Urali Kurumar belong­ fact illegal and thus their rights to land ful. Subsequently, the Kerala Act 1975
ing to the poorest section of Wayanad’s cannot be recognised by the f r a . (Restriction of Transfer of Land and Res­
society, most vulnerable to exploitation Overall, forest use by those members toration of Alienated Lands) was enacted
and structural violence (Indian Institute of the district’s adivasis who are truly to address the issue of land alienation.29
of Management 2006). “forest-dwelling scheduled tribes” had Unfortunately, this Act has hardly been
been very limited for decades. A strict implemented. Besides that, it benefited
Today’s Forest Dwellers enforcement of India’s forest laws only those adivasis, mostly (higher rank­
According to the statistics of the Kerala through the f d took place from the late ing) Kurichyar and Kurumar, who had
forest department, Wayanad’s forestland 1980s onwards.26 Particularly for adiva­ possessed proper land records prior to
is occupied by a total of 4,014 families, sis living inside the Wayanad Wildlife their alienation. The Paniyar and Adiyar
of whom 3,490 are tribal families.23 Sanctuary, access to forestland (for in particular were largely excluded from
Therefore, 12.8% of Wayanad’s s t s pre­ hunting,27 grazing of animals and col­ the benefits of land reforms in Kerala.
sently live on forestland. According to lection of wood and minor forest pro­ Even though they were living on the
the recently published Scheduled Tribes duce) became extremely restricted. In landlords’ (janmani) land as bonded
Survey Report ( s t s r ) (Government of the 1990s, due to the region’s severe and labourers, they were not considered to
Kerala 2011), 1,986 s t families (5.49%) increasing human-wildlife conflict (see be “tenants” in the land reforms Act and
in the district are landless tribal fami­ also Madhusudan and Sankaran 2010), failed to claim the rights to the land on
lies, 7,001 families (19.37%) are holding the f d established wildlife proof trenches, which they lived. Instead, many Paniyar
less than five cents of land, and 17,300 and later erected electric fencing. There­ and Adiyar families were chased away
families (47.86%) own less than 50 cents fore, forest dwellers could hardly enter from the land owned by the then janmis
of land. The survey also reveals that the forest or use its resources for liveli­ and settled on the fringes of the forest
2,168 adivasi families occupy forestland hood purposes: there was no cultivation and on revenue lands.
without any ownership documents.24 possible beyond the forest’s physical Both the 1971 and the 1975 Acts pro­
Among them, 232 families hold less than demarcations and the additional fear of vided the legal basis for the commence­
five cents of land and 706 families pos­ wildlife attacks prevented people from ment of the widespread adivasis’ strug­
sess more than one acre of forestland. transgressing the fortified forest boundary. gles for land rights in the 1990s. The
One thousand three hundred and seventy In areas of severe conflicts with wildlife, jathas (political rallies) were organised
four adivasi families hold forestland the Mullu Kurumar and Kattunaikar told in different parts of Kerala, culminating
with possession certificates issued by the us that they even stopped collecting fire­ in a 48-day sit-in strike (dharna) in front
f d before the introduction of the f r a .25 wood inside the forest for fear of being of the then Chief Minister A K Antony’s
Consequently, the families living on attacked by an elephant, wild boar, or residence in Thiruvananthapuram, led
forestland without ownership docu­ buffalo. The adivasi settlements in these by C KJanu’s Adivasi Gothra Maha Sabha
ments, and who are not considered as regions could not grow crops, nor could ( a g m s ) (Steur 2009: 26). On 16 October
landless in the above survey, are the real the terrain they occupied be extended 2001, the then United Democratic Front
beneficiaries of f r a in the district. further into forest land.28As a result, the ( u d f ) -controlled government agreed to
The category of “other traditional forest actual “area of occupation” of most forest­ distribute five acres of land to all landless
dwellers” in Wayanad consists mainly of dwelling adivasis, which was mapped adivasis in the state, to be implemented
small-scale farmers of the Chetti com­ and recorded in the bureaucratic f r a ’s by December 2002. Politicised by Janu,
munity who had already settled inside census, was only a few cents in size. and encouraged by the government’s
the forest during the time of the British promise to redistribute land, adivasis
rule, and then later as part of the state’s Left-Wing Attempts within the communist party founded
“grow more food” programme. However, At the time of implementing the f r a , the the a k s , popularly known as the “tribal
as a senior forest officer emphasised, left-wing Government of Kerala (2006-11) wing” of the c p i ( m ) . They immediately
Chettis could not claim their rights to was faced with long overdue promises took advantage of the political climate
land under the f r a , even though they to distribute land to landless adivasis. of the time and organised encroach­
fulfilled the f r a ’s provision of occupying The state’s adivasis had been juridically ments (stalam pidikam)30 on estate land
Economic & Political w e e k l y VBSk m ay 12, 2012 v o l x l v ii n o 19 41

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :00:55 UTC
A ll use subject to https://about.jstor.org/terms
INSIGHT
with legally insecure titles, as well as on scheduled tribes development depart­ secretary, the t e o , and tribal promoters.
vested forestlands in various locations in ment ( s t d d ) started collecting applica­ Through these grama sabhas, the forest
Wayanad. Many a k s encroachments did tions from the eligible families as the first rights committees ( f r c s ) were to be
not last long, as protesters were evicted step of implementation, protest from formed and the record of forest rights to
from the squatted land soon after their Wayanad’s environmentalists arose. The be prepared. Soon, however, for the in­
arrival. Arrests notwithstanding, with Wayanad Prakruthi Samrakshana Samithi volved officials, it became apparent that it
the knowledge that they had nowhere (w p s s ) , a group of (mostly middle class) was impossible to articulate tribal inter­
else to turn, adivasis activists frequently environmental activists in the region, ests through the f r c s formed by the ward-
re-encroached after their release, en­ working in close alliance with the f d on level grama sabhas. “Adivasis simply did
couraged by the a k s . Often, adivasis several issues, filed a petition praying not show up in the meetings”, the Inte­
claimed that the unbearable living con­ for a stay order at the Kerala High Court grated Tribal Development Programme
ditions were the motivation behind their and to suspend the proceedings. The ( i t d p ) officer remarked, while speaking
encroachments: unlawful implementation of the Act, the about the difficulties her department
We did not even have a place to spit out. We environmentalists argued, would lead to faced during the implementation process.
did not have a place to bury our dead bodies; a severe destruction of Wayanad’s eco­ The participation of adivasis in grama
we buried them right next to our houses. We logically fragile and dispersed forests. sabhas has been generally very limited.
were suffering with 15 people in one single
The Kerala High Court decided that, as The meetings were dominated by “main­
house. Because of that w e came here and
encroached on this land. Many went to jail,
stated in Chapter 3, Subsection (6) of the stream” society (Christians, Muslims,
but w e continue our struggle so at last we f r a , the distribution of land should be Hindus), discouraging adivasi participa­
would get some land, one Paniyar wom an restricted to “the area under actual tion through cultural means of exclusion.
recalled.31 occupation on the date of commence­ Contrary to the anticipation of the policy­
However, more than a year later, the ment of this Act” (Government of India makers, there were no single-community,
government’s agreement to hand out land 2006). Therefore, with the f r a ’s central scheduled tribe-panchayats in Kerala -
had still not been acted upon. Subsequent­ monitoring committee agreeing upon moreover, as stated earlier, adivasis are
ly, on 4 January 2003, led by Janu, more the court’s decision, it became clear that heterogeneous, have hierarchical rela­
than 1,000 adivasis, predominantly Adi- the f r a would not be the right means to tionships among each other, and live to­
yar and Paniyar groups from Thirunelli, solve the district’s adivasi issues. day as minority groups in panchayats.
initiated a widely publicised and asser­ So to strengthen adivasi participation
tive encroachment inside the Muthanga A Controversial Mission: in determining their rights and in deci­
Range of the Wayanad Wildlife Sanctuary. Implementing the FRA in Wayanad sion-making processes, the i t d p decided
After 45 days, police forces and armed As mentioned previously, the implemen­ to create f r c s through ooru koottam,
fd officials brutally terminated the tation of the f r a was a huge bureaucratic separate grama sabhas in their settle­
encroachment, an event that is bitterly project. The Rules to the f r a elaborately ments, under the leadership of tribal
remembered today as “the Muthanga specify the process of determining and promoters.35 Nevertheless, many mem­
incident” (Bijoy 1999; Bijoy and Raman distributing rights. To monitor the imple­ bers of ooru koottam we interviewed
2003; Sreerekha 2010). mentation, the state government was stated that they had not been properly
Three years after Muthanga, in 2006, requested to form a subdivisional level informed about the new law or about
the f r a was passed by the central govern­ committee ( s d l c ) , a district level com­ their role in the implementation pro­
ment. Within the context of unsolved mittee and a state level monitoring com­ cess. In most adivasi hamlets and colo­
adivasi land issues, Kerala’s left parties, mittee ( s l m c ) . 34 The tribal welfare depart­ nies, people were neither aware of their
who were supporting the u p a govern­ ment was appointed as the nodal agency rights, nor did they know that special
ment at that time, had strongly lobbied for to coordinate the implementation process. f r c s existed. Some thought of the f r a

an extension of the f r a ’s cut-off date.32By Thus, in Wayanad, it was mainly the as just another (unfulfilled) govern­
extending the date to 13 December 2005, Tribal Department’s lower officials, t e o s ment order to distribute land among
the c p i (m ) was hoping to use the f r a to and tribal promoters, who had the role of landless adivasis.
finally be able to distribute some of the “translating” and “interpreting” the Act Adivasi encounters with the local state
long-promised land, especially to the lan­ for villagers and communities living on proliferated during the implementation
dless adivasis whose encroachments on forestland. Additionally, however, party process. The state’s interactions with the
(vested) forest had been supported by the members of the a k s , as well as adivasi adivasis represent a micro-sociology which
communist a k s . Therefore, when the activists and n g o employees, were is part of the picture of the f r a ’s limited
f r a ’s implementation process started in important intermediators between the impact in Kerala. To handle the f r a ’s
Kerala in January 2008, the Left Demo­ government institutions, implementing enormous bureaucratic effort, the Kerala’s
cratic Front government had decided to the Act, and the local communities. survey department initiated Bhoomi
give one acre of (forest) land to all land­ Initially, in compliance with the rules Keralam (literally “the land of Kerala”),
less “forest-dwelling scheduled tribes” of the f r a , special grama sabhas were a special programme for “the completion
under the f r a .33 However, when the held in the presence of the panchayat of survey of forestland in 12 districts of
42 m ay 12, 2012 V O L X L V II N O 19 DDES Economic & Political w e e k l y

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :00:55 UTC
All use subject to https://about.jstor.org/terms
INSIGHT
the state to allot land to the tribal families In our conversations with higher offi­ scheduled tribes” in the Wayanad dis­
under the f r a ”.36 The Bhoomi Keralam cials of the f d in Wayanad, they ex­ trict received a f r a land possession cer­
teams conducted the survey with the pressed their deep concern about the tificate, at least for the land upon which
support of tribal promoters and a few ecological impact the f r a would have on their houses stand. The 367 applica­
members of f r c s . They demarcated the the fragile ecosystem of the region. Like tions, however, are still being proc­
land, verified the claims, and sketched our interlocutors of Wayanad’s environ­ essed. The official data available on the
the area and plot for each applicant. Fre­ mentalist group w p s s , the forest officers f r a ’s implementation were the s d l c re­

quently, however, people had no idea were afraid that the f r a would bring se­ ports, which were handed over, after
what the busy officials were doing in their vere destruction to this “biodiversity the completion of the f r a ’s land survey,
settlements. As one older Kattunaikar hotspot” in the Western Ghats. They ar­ to the district collector for issuing the
woman described the survey procedures gued that Wayanad’s forests, harbouring f r a ’s land possession certificates. We

in her colony: a unique flora and fauna,39 including obtained access to the s d l c reports by
Many outsiders came here, rushed through
many endemic and endangered species, filing an r t i 41 application to the sub­
the colony; they were very busy, they asked such as the largest remaining wild ele­ collector in Mananthavady, Wayanad.
our name and m ade measurements; they did phant population in south Asia (Sukumar Out of the 4,331 families who received
not tell us what it was for. We did not ques­ 2003), could not cope with any further land documents under the f r a , 41 are
tion them because they are padippulla disturbance by humans. Therefore, many Adiyar, 1,013 Kattunaikar, 279 Kurich-
saru m m a r37 (educated people).38
representatives of the f d understood it yar, 324 Mullu Kurumar, 821 Urali Kuru­
For foresters and forest rangers on duty as their “occupational duty” to protect mar and 773 are Paniyar families, not
to support the survey team by pointing the region’s remaining forests from ad­ including the recipients living on a k s
out localities and identifying the poten­ ditional damage and human interfer­ encroachment sites and project lands,
tial beneficiaries, conducting the census ence, and thus, to defend and guard its where we could not identify the commu­
was a strenuous process as well. Foresters territory. In their discourses, some were nity they belonged to.42 Among those
complained about the adivasis’ lack of a well aware of the contradiction that the few who received the largest area of
stationary lifestyle. Especially members main causes for Wayanad’s forest de­ land under the f r a are three Kattun­
of the Kattunaikar and Urali Kurumar struction had been the (British and Indi­ aikar families who were granted posses­
frequently visit and live with relatives in an) f d ’s extraction and profit-oriented sion rights for four hectares of land in
other colonies of Wayanad or the neigh­ management logic itself. Some of the Aranamala forest, in the Meppadi range
bouring states of Karnataka and Tamil critically-minded, higher forest officials of the south Wayanad forest division.
Nadu. Sometimes, family members were pointed at the insincerity of the f d in Furthermore, there are only six families
not present when the survey was con­ promoting so-called “ecotourism’*0 and who received more than three hectares
ducted; hence, the foresters argued that permitting “drive-through” jeep tours of land, among them five Kattunaikar
their possessions could not be recorded (Munster and Munster 2012) into the families and one Mullu Kurumar family.
and they received no land under the f r a . core areas of the wildlife sanctuary, Accordingly, more than 76% of the total
Hindrances to the f r a ’s effective imple­ while at the same time strongly advocat­ beneficiaries received less than one acre
mentation were also exacerbated by inter­ ing the need for establishing a human- of land. The proportion of individual
departmental conflicts. According to the free (adivasi-free) wildlife zone though families who received less than 50 cents
i t d p officer, Wayanad’s tribal develop­ “fortress conservation” and the imple­ of land is more than 57%. Four hundred
ment department (t d d ) received 6,937 mentation of a “voluntary human reloca­ and seventy Paniyar, 22 Adiyar, 548 Kattu­
f r a applications, among which 4,698 tion” project (Kerala Forest and Wildlife naikar, 69 Mullu Kurumar, 46 Kurichyar
were eligible to receive land without any Department 2003) for communities liv­ and 421 Urali Kurumar families received
objection under the f r a . Out of this ing inside “critical wildlife areas”. less than 50 cents of land (Table 1). The
1,146 applications were rejected as per­ 285 families living on encroachment sites
taining to people living on revenue land. Who Profited? or project land received less than 50 cents
By November 2011,4,331 land claims un­ According to the official records, in Octo­ of land. In brief, the land distributed
der the Act had already been settled, ber 2011, after a four-year-long imple­ under the f r a will have little impact on
with 3,141 hectares of forestland distrib­ mentation process, all “forest dwelling people’s livelihoods.
uted to s t s . The rest of the applications
Table 1: Adivasi Landholdings in Wayanad - Community-wise
were still being processed. Many claims Land in Acre Average Holdings in Ha Average in Acre
Community No of Families Total Land in Ha
under the f r a , the i t d p explained, could Adiyar 41 6 .7 6 1 6 .7 1 0 .1 6 0 .4 0 7
not be settled due to disputes with the Kattunaikar 1 ,0 1 3 2 6 6 .8 1 6 5 9 .2 9 0 .2 6 0 .6 5 1

f d . Frequently, officials of the t d d in Kurichyar 279 1 1 5 .7 7 2 8 6 .0 7 0 .4 1 1 .0 2 5

Wayanad held the f d responsible for the Mixed 750 2 2 2 .3 3 5 4 9 .3 9 0 .3 0 0 .7 3 3

unsatisfactory implementation of the Mullu Kurumar 324 1 7 3 .8 0 4 2 9 .4 5 0 .5 4 1 .3 2 5

f r a , accusing them of not cooperating Urali Kurumar 821 1 9 4 .0 0 4 7 9 .3 8 0 .2 4 0 .5 8 4

in the f r a ’s implementation process. Paniyar 773 1 7 6 .9 8 4 3 7 .3 3 0 .2 3 0 .5 6 6

Economic & Political w e e k l y DBS3 m ay 12, 2012 vol x l v ii n o 19 43

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:55 UTC
All use subject to https://about.jstor.org/terms
INSIGHT
In Wayanad, as in many other areas of eco development committees ( e d c s ) and government, but that is how we remain),
India (see n f r a c report) community vana samrakshna samithis (vss), super­ showing us his small hut among many
rights were ignored during the imple­ vised and set up by the f d , should coexist others on the fringe of a teak plantation
mentation process. A highly placed forest with the newly formed f r c s that work un­ at Chekadi.
official interpreted the f r a ’s provision of der the grama sabha, or whether they
community rights as “the right to collect should be abolished (Shrivastava 2011; n o t e s _____________________________________
minor forest produce”, which according Sathyapalan 2010). In the f r a , this is not 1 The Scheduled Tribes and Other Traditional
to him had already been granted to stated. Therefore, in Wayanad, there were Forest Dwellers (Recognition of Forest Rights)
Act, popularly known as Forest Rights Act or
scheduled tribes in the State/Union Ter­ no efforts to integrate pre-existing institu­
Tribal Rights Act, was passed in 2006 but came
ritory Minor Forest Produce (Ownership tions into the reformative forms of forest into force on 1 January 2008. The Act is avail­
of Forest Dependent Community) Act governance that needed to be established able on the MoTA website: http://tribal.nic.in/
index2.asp?sublinkid=655&langid=i
(2005). Officials in the lower ranks of under the f r a . As Springate-Baginski et al 2 The United Progressive Alliance (UPA) is a rul­
the f d received no information or in­ (2008:4) write: ‘The new provisions don’t ing coalition of political parties, led by the
Indian National Congress (INC).
structions for implementing the f r a ’s automatically ‘fit’ with other local and 3 Adivasi is the Hindi word for “original inhabit­
provisions of community rights. Conse­ state-level institutions and distributions ants”.
quently, the f r a in Wayanad was re­ of power”. 4 See http://www.forestrightsact.com/index.php?
option=com_content&view=article&id=73&It
duced to the acknowledgement of indi­ As a consequence, officials in the lower emid=4ooo55, accessed on 15 April 2011
vidual “patta” rights. In the words of one ranks of the f d had not been sufficiently 5 See http://www.forestrightsact.com/, acces­
sed on 10 March 2011.
Mullu Kurumar Moopan43 (showing us informed about people’s rights to partici­
6 Interviews were conducted and discussions were
the f r a possession certificate that certi­ pate and be in charge of wildlife and bio­ held all across the departments’ hierarchy.
fied his possession of 20 cents of land): diversity protection, as provided in 7 Ashok Kumar, a senior adviser to Delhi’s Wild­
life Trust of India, quoted in National Geo­
“This is only a piece of paper, it will Chapter 1 Section 2(n) of the f r a (see graphic News 5 December 2007: http://news.
change nothing; we need at least one also Taghioff and Menon 2010). The new nationalgeographic.com news/2007/12/071205-
tigers-tribes.html, accessed on 10 November
acre of land to make a living”.44 This dis­ legal situation created by the f r a , espe­ 2009.
appointment with the inadequacy of the cially the overlapping jurisdiction re­ 8 The NFRAC was established in April 2010 as a
sizes of allotted land through the f r a garding environmental governance that 20 member joint committee combining the
MoEF and the MoTA (Government of India
was shared by most of those adivasis emerged, proved to be unclear (see also 2010: 9), see also Kothari (2011) and http://fra-
who were aware about the f r a at all. In Sarin and Springate-Baginski 2010: committee.icfre.org/
9 The report’s findings are in line with several pre­
north Wayanad, where a k s members 28).45Therefore, interpreting the f r a be­ liminary state-level studies on the progress and
had informed their neighbours about came open to various possible perspec­ outcomes of the act’s implementation (see for ex­
ample Taghioff and Menon 2010; Sathyapalan
their new rights under the f r a , resist­ tives. f d officials and environmentalists and Reddy 2010; Reddy et al 2011; C R Bijoy 2011).
ance arose during the implementation argued that to safeguard Wayanad’s bio­ 10 In some states, rejection rates are more than
process. When it became evident that diversity in this densely populated area 60%, see the recommendations by the NAC,
http://nac.nic.in/pdf/fra__recommendations.
the Bhoomi Keralam survey team that under high ecological stress, an authori­ pdf, accessed on 6 August 2011.
had come to measure land recorded only tarian and scientific management would 11 Recommendations can be downloaded on the
NAC homepage, http://nac.nic.in/pdf/fra_rec-
a few cents of land for each family, peo­ be the only way. “There is nothing to ommendations.pdf, accessed on 20 September
ple in some communities stopped coop­ participate in Wayanad’s conservation, 2011.
erating and prevented the survey team only to protect”, as a high level f d official 12 See also http://www.business-standard.com/
india/news/nac-wants-actiontribals-forest-
from finishing its work. As a conse­ put it. rights/421433; http://www.thehindu.com/news/
quence, the official implementation of Many of our interlocutors involved in national/articlei493326.ece
13 See http://www.countercurrents.org/kd131011.
the f r a could not be completed and the implementing the f r a agreed that the htm, accessed on 26 October 2011.
survey is still pending in these areas. law was unsuitable for improving the 14 Interviews with active members of the CPI(M)
living conditions of adivasis in Wayanad. were conducted in April and May 2011, see also
the CPI(M) Manifesto for the 15th Lok Sabha
Uncertainty on JFMs It is evident that district’s adivasi land Elections, 2009, available on: http://www.in-
Another widespread disregard of the f r a ’s issue cannot be solved by this act. Even dian-elections.com/partymanifestoes/cpim.
html, accessed on 18 September 2011.
provisions pertained to the Act’s reforma­ though the c p i ( m ) had made efforts to 15 For commentaries on the left’s involvement in
tive role in establishing new forms of appropriate the f r a for redistributing the passing of the FRA see http://www.hmdu.
C0m/2008/04/05/st0ries/2008040553020300.
forest conservation, based on democratic long-promised land to landless adivasis, htm, accessed on 27 September 2011, see also
decision-making processes and participa­ they could not bend the law. The land­ http://www.himvani.com/news/2009/04/14/
%E2%8o%98bjp-congress-in-himachal-follow-
tion at the community level. Wayanad’s less adivasis continue to wait for redis­
feudal-policies%E2%8o%99/2668, accessed on
higher forest officials stated that there was tributive justice. As an Urali Moopan 10 September 2011.
no need for reform, as participatory forest adivasi we interviewed expressed it: 16 In Kerala, since the formation of the state in
1956, the Left Democratic Front (LDF) under
management had already been estab­ Sarkar bhoomi tharunnathum katdrunnu the leadership of the Communist Party of India
lished in the 1990s. Among them there kattirunnu kathirunnu da ividethanne (Marxist) (CPI(M)) has alternated in power
with the United Democratic Front (UDF), an
was uncertainty whether the existing joint (we were waiting and waiting and wait­ Indian Congress-led coalition. In Kerala, the
forest management ( j f m ) committees, ing for land to be distributed by the UDF is usually called the “right-wing”.

44 m a y 12, 2 0 1 2 vol x l v ii n o 19 BBS3 Economic & Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:55 UTC
All use subject to https://about.jstor.org/terms
17 See also http://ww w.fra.0rg.in/FRA% 20 reports (1 to 8) on the “Proceedings of the Nair, Gopalan C (1911): Wayanad: Its People and
Newsletter%207,%20i6.4.pdf, the National revenue divisional officer and chairperson Traditions (Madras: Higginbothams).
Newsletter of the Kalpavriksh Environmental sub-divisional level committee”, issued by the Narayanan, Ratheesh M K (2009): “Floristic Study
Action Group, accessed on 10 March 2011. office of the sub-collector and sub-divisional of Waynad District with Special Emphasis on
18 Interview with AKS district secretary, 23 April magistrate, Manandavady, Wayanad. Although Conservation of Rare and Threatened Flower­
2011, see also http://www.aitpn.org/Issues/II- the community was not listed on the individual ing Plants”, unpublished PhD Thesis Submitted
09-06-F0rest.pdf, paper of the Asian Indi­ possession certificates, it could be inferred at the University of Calicut, Thenhipalam.
genous and Tribal Peoples Network (AITPN), from the address mentioning the colony name. Padmini, P G (2001): Kattujeevithathinte Spandana
15 December 2006, accessed on 3 March 2011. This was cross-referenced with complete lists of Thalangal (The Heartbeats of Life in the Forest)
19 Government records distinguish between 20 all Adivais colonies, naming their communities. (Thalassery: Pazhassi Publishing House).
indigenous groups in Wayanad. The rest of the 43 Moopan is the headman of a community. Philip, Kavka (2004): Civilising Natures: Race, Re­
communities are very nominal in population 44 Interview 6 April 2011. sources, and Modernity in Colonial South India
(Government of Kerala 2011). 45 For a discussion on the controversial CWH guide­ (New Brunswick: Rutgers University Press).
20 Today, Chettis are classified as “Other Back­ lines set up by the MoEF and their contradictions Prasad, M K (2003): Adivasi Samarattinte
ward Classes” (OBCs) by the government. to the provisions of the FRA, see: http://articles. Avasthandarangal (The Changing Story o f Adi­
21 Interview with a woman of the Urali commu­ timesofindia.indiatimes.com/2011-05-22/ vasi Struggles) (Thiruvanandapuram: KSSP).
nity at Begur, 6 April 2011. pune/295707ii_i_critical-wildlife-habitat-cwh- Rajan, S Ravi (2006): Modernising Nature: Forestry
22 The Tribal Resettlement Development Mission parks-and-wildkfe-sanctuaries and Imperial Eco-Development 1800-1950 (Ox­
(TRDM), formed 2001, identified 14,031 Adiva- ford: Oxford University Press).
si families as landless and 12,184 more families Rangarajan, Mahesh (1996): Fencing the Forest:
whose individual land holdings are less than Conservation and Ecological Change in India’s
REFEREN CES _____________________________
one acre (Kerala Forest and Wildlife Depart­ Central Provinces, 1860-1914 (Delhi: Oxford
ment 2003). Bijoy, C R (1999): “Adivasis Betrayed: Adivasi Land University Press).
Rights in Kerala”, Economic & Political Weekly, Reddy, M Gopinath et al (2011): “Issues Related to
23 Working Plan of the South Wayanad Forest 29 May, 1329-25.
Division, Working Plan of the North Wayanad Implementation of the Forest Rights Act in
- (2011): “The Great Indian Tiger Show”, Eco­ Andhra Pradesh”, Economic & Political Weekly,
Forest Division, KFD 2010; Relocation of
nomic & Political Weekly, 46(4): 6. 46(18): 73-81.
Human Settlements Project Proposal (Kerala
Bijoy, C R and Ravi K Raman (2003): “Muthanga: Sarin, Madhu and Oliver Springate-Baginski (2010):
Forest and Wildlife Department 2003).
The Real Story - Adivasi Movement to Recover “India’s Forest Right’s Act: The Anatomy of a
24 The survey data collection was conducted in Land”, Economic & Political Weekly, 38(20): 17-23 Necessary But Not Sufficient Institutional Re­
2008 before the land distribution under the
Brockington, Dan (2002): Fortress Conservation: form”, IPPG Discussion Paper Series, Manches­
FRA had started in Wayanad.
The Preservation o f the Mkomazi Game Reserve ter 4 5 :1-3 4 . Online: www.ippg.org.uk/papers/
25 There is a difference between the number of Tanzania, Oxford. dp4 5 .pdf, accessed on 10 September 2011.
adivasi families living on forestland as stated
Bhullar, Lovleen (2008): “The Indian Forest Rights Sathyapalan, Jyothis (2010): “Implementation of the
in the recent ST survey report and in the forest
Act 2006: A Critical Appraisal”, Law, Environ­ Forest Rights Act in the Western Ghats Region of
department’s data. Kerala”, Economic 8c Political Weekly, 45(30): 8.
ment and Development Journal (Bloomington:
26 Interview with retired divisional forest officer Indiana University Press), 4(1): 20. Sathyapalan, J and M G Reddy (2010): “Recognition
(DFO), 26 March 2010. Many elders we inter­ Government of India (2006): “Scheduled Tribes and of Forest Rights and Livelihoods of Tribal Com­
viewed in the Mullu Kurumar and Kattunaikar Other Traditional Forest Dwellers (Recognition munities: A Study of Western Ghats Region,
colonies, as well as the Chettis living on forest of Forest Rights) Act”, Ministry of Law and Jus­ Kerala State”, Center fo r Economic and Social
land, remembered going hunting until the tice, New Delhi. Studies Monograph Series, Hyderabad, 1-67.
early 1990s without much disturbance from Sethi, Nitin (2007): “Activists Come Out With Ads
- (2010): “Report of the National Committee on
the forest department. Forest Rights Act”, New Delhi. to Slam Forest Act”, The Times of India, 26 Octo­
27 Hunting was banned in India’s forests through Government of Kerala (2011): “Kerala Tribal Sur­ ber, Online, accessed on 20 September 2011.
the Wildlife Protection Act 1972. vey 2008”, Department of Local Self Govern­ Shrivastava, Kumar Sambhav (2011): “Forest
28 Interview with DFO, Kalpetta, Wayanad, ment, Department of Schedule Tribe Develop­ Rights Act Under Scrutiny: Environment Min­
19 April 2011. ment, Thiruvananthapuram. istry Does Not Seem Open to Criticism”, Down
29 The Act declares all land transactions involv­ Guha, Ramachandra (2003): “The Authoritarian to Earth, 1-15 February, 9-10.
ing Adivasi land that occurred during the peri­ Biologist and the Arrogance of Anti-Human­ Sivaramakrishnan, K (2009): “Forests and the En­
od from i960 to 1976 to be invalid, and calls for ism: Wildlife Conservation in the Third World” vironmental History of Modern India”, The
land to be restored to the original owners. in Saberwal, Vasant and Mahesh Rangarajan Journal of Peasant Studies, 36(2): 299-324.
30 Stalam pidikam literally means “catching (ed.), Battles Over Nature: Science and the Poli­ - (2011): “Thin Nationalism: Nature and Public
(a) place” in Malayalam. tics o f C o n serva tio n (New Delhi: Permanent Intellectualism in India”, Contributions to Indi­
31 Interview, Kuttiyam vayal encroachment, 20 Black), 139-57- an Sociology, 45(1): 102.
April 2011. Indian Institute of Management (2006): “Wayanad Springate-Baginski, 0 et al (2008): “The Indian
32 Interview AKS district secretary, 23 April 2011. Initiative: A Situational Study and Feasibility Forest Rights Act 2006: Commoning Enclo­
33 Interview with the ITDP officer in Kalpetta, Report for the Comprehensive Development of sures?”, Institutions for Pro-Poor Growth Work­
Wayanad, 18 April 2011; interview with WPSS Adivasi Communities of Wayanad, Kozhikode”, ing Paper, Online: www.scientificcommons.
members, 27 April 2011. Centre for Excellence. org/38263726, accessed on 10 April 2010.
34 For the role of these committees under the FRA Kerala Forest and Wildlife Department (2003): Sreerekha, M S (2010): “Challenges before Kerala’s
see also Bhullar (2008). “Wayanad Wildlife Sanctuary”, Draft Project Landless: The Story of Aralam Farm”, Economic
Proposal, Relocation of Human Settlements. & Political Weekly, 45(21): 55-62.
35 Later, in the NAC recommendations this became
Kjosavik, Darley Jose and N Shanmugaratnam Steur, Luisa (2009): “Adivasi Mobilisation: ‘Identity’
one of the main suggestions for ensuring a suc­
(2007): “Property Rights Dynamics and Indig­ versus ‘Class’ after the Kerala Model of Devel­
cessful implementation of the FRA.
enous Communities in Highland Kerala”, South opment”, Journal of South Asian Development,
36 http://www.itmission.kerala.gov.in/e-gover- India, An Institutional-Historical Perspective, 4 (1): 2 5 -4 4 .
nance-in-departments/334-bhoomi-keralam. Modern Asian Studies, 41(6): 1183-260. Sukumar, R (2003): The Living Elephants: Evolu­
html, accessed on 13 October 2011.
Kothari, A (2011 ): “Not Out of the Woods Yet”, tionary Ecology, Behaviour, and Conservation
37 Padippullavar is a Malayalam word for those who Frontline, 2 8 ( 5 ). (New York: Oxford University Press).
are educated; Sarummar is the plural usage of Sir, Sundar, Nandini (2011 ): “The Rule of Law and
Kurup, K K N (2010): Waynad Through Ages (Cali­
it is a combination of English and Malayalam. Property: Law Struggles and the Neo-liberal
cut: Calicut University Press).
38 Interview with women at Ponkuzhi Kattunai­ State in India” in Gupta, Akhil and K Sivara­
Madhusudan, M D and Pavithra Sankaran (2 0 1 0 ):
kar colony, 12 April 20. “Seeing the Elephant in the Room: Human-Ele­ makrishnan (ed.), State in India after Liberali­
39 See Ratheesh M K Narayanan (2009) and phant Conflict and the ETF Report”, Economic zation (London: Routledge), 175 -9 4 .
C KVishnudas (2009). & Political Weekly, 4 5 (4 9 ): 2 9 -3 1 . Taghioff, Daniel and Ajit Menon (2010): “Can a Ti­
40 See http://wayanadsanctuary.org/Pages/eco- Munster, Daniel and Ursula Munster (2012): “Con­ ger Change Its Stripes? The Politics of Conser­
Tourism.aspx, accessed on 5 May 2011. suming the Forest in an Environment of Crisis: vation as Translated in Mudumalai”, Economic
41 Right to Information under the RTI Act, 2005. Nature Tourism, Forest Conservation and Neo­ & Political Weekly, XLV(28): 8.
42 A list of all FRA beneficiaries was compiled liberal Agriculture in South India”, Develop­ Vishnudas, C K (2009): “Birds of Wayanad, Kalpetta,
from the sub-divisional level committee (SDLC) ment and Change, 43(1): 205-27. Waynad”, unpublished working paper.

Economic & Political w e e k ly DB59 m a y 12, 2 0 1 2 vol x l v ii n o 19 45

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:55 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

Inefficiency and Abuse of Compulsory


Land Acquisition
An Enquiry into the Way Forward

RAM SINGH

This paper focuses on two aspects of the laws that 1 In tro d u c tio n

govern the acquisition and transfer of agricultural land he Land Acquisition, Rehabilitation and Resettlement
for other purposes: (a) litigation over compensation, and
(b) the regulatory impediments obstructing voluntary
land transactions. It shows that there is excessive
T ( l a r r ) Bill 20111has been introduced in the Lok Sabha.
The bill seeks to rectify the failings of the archaic Land
Acquisition Act 1894 ( l a a ) - the existing law on compulsory
acquisition of land and private property. Besides, the bill aims
litigation under the current land acquisition law. It is to facilitate transfer of land from agriculture to other develop­
mental activities while safeguarding the interests of the affected
argued that any compulsory acquisition-based process
people. The bill has several laudable provisions. The most
is inherently prone to litigation, even if accompanied by important is the restriction of the scope of the emergency
presumably benevolent schemes such as land-for-land clause made notorious by its frequent misuse by states. More­
and the rehabilitation and resettlement packages. The over, the bill recognises that acquisition of agricultural land
affects the livelihoods of not only the owners but also many
paper offers suggestions on how to reform the
others. So, it seeks to protect the welfare of all affected parties
regulatory framework that governs agricultural land and by creating a legal entitlement to compensation and rehabili­
its use. It discusses the Land Acquisition, Rehabilitation tation and resettlement ( r & r ) for all livelihood losers.
and Resettlement Bill 2011 and reveals how the bill However, the bill has serious limitations. For instance, it
completely ignores the causes behind excessive litigation over
leaves open several back doors for states to favour
compensation. If anything, its provisions have the potential to
companies, and how it fails to address the fundamental further intensify litigation. The recent writings on the subject
causes behind the rampant disputes and litigation over have also ignored this crucial issue (Chakravorty 2011; Desai
compensation. 2011; Ghatak and Ghosh 2011; Ramanathan 2011; Sarkar 2011;
Sarma 2011). Moreover, these otherwise important works have
not explored the legal and regulatory reforms that can help
facilitate voluntary transfer of land from agricultural to deve­
lopmental purposes. This article analyses these issues. It offers
some suggestions to mitigate the problems associated with
compulsory acquisition of land.
It is demonstrated that the compulsory acquisition of land
is inherently prone to litigation over compensation. Further,
the litigation over compensation is socially inefficient and
regressive in its effects; it is relatively much more profitable
I am thankful to T KArun, Abhijit Banerji, Keshav Choudhary, Leonardo for the rich than the poor. These claims are corroborated by
Felli, Maitreesh Ghatak, Parikshit Ghosh, Neha Jain, Rajinder Punia, using statistics derived from two unique data sets; one com­
and Uday B Sinha for their helpful comments and suggestions. On
piled from 525 judgments of the additional district judge
some of the issues, I have benefited greatly from my discussions with
( a d j ) courts in Delhi, and the other from 305 judgments of
Kaushik Basu, Amit Bhaduri, Nira Goyal, Satish Jain, Harsh Mander,
Partha Mukhopadhyay, Debraj Ray and Paranjoy Guha Thakurta. I am the Punjab and Haryana High Court. Moreover, it is demon­
thankful to Dimple Kukreja, Swati Saluja and Aditi Singhal for providing strated that compulsory acquisition is intrinsically vulnerable
excellent research inputs. Research support provided by the Centre for to failures on the fronts of efficiency as well as fairness - even
Policy Research is gratefully acknowledged. I am thankful to the Centre
if it involves acquisition of only a fraction of the required
for Development Economics at the Delhi School of Economics, and the
London School of Economics for their institutional support. land and is accompanied by presumably benevolent schemes,
such as compensation in the form of land-for-land and/or the
Ram Singh (ramsingh@econdse.org) is at the Delhi School of Economics.
r & r packages.

46 m ay 12, 2012 v o l x lv ii n o 19 DDES Economic & Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:57 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE
Nonetheless, the l a r r Bill seeks to rationalise compulsory Even worse, in Indrajit C Parekh vs State of Gujarat3 the
acquisition of land by appealing to a growing national need for Supreme Court upheld an incredibly bizarre contention of the
industrialisation, urbanisation and development in general. Gujarat government, which claimed that a contribution of
By diluting the crucial public-private distinction, it expands even one rupee from the exchequer is sufficient to validate the
the scope of compulsory acquisition for all sorts of activities of acquisition for companies under Part n! Since then, the states
private companies. The bill seems to be guided by the belief have been contributing nominal amounts towards the cost of
that in the absence of compulsory acquisition many develop­ acquisition, to justify acquisition for companies. Some govern­
mental projects will get held up, a perception shared by sev­ ments have gone to the extent of contributing just Rs 100!
eral studies on the subject. Besides the direct acquisition for companies under Part n, there
This paper, in contrast, demonstrates that it is the regula­ have been other abuses of the land acquisition laws as well.
tory hold-up and not the hold-out by the owners that is the The notable ones include: acquisition of land citing some pub­
biggest impediment for voluntary transactions in land. At lic purpose but covertly diverting it to private ends; adoption
present, the use of agricultural land for other purposes is sub­ of the pick-and-choose method for selecting a project site; and,
ject to many obstructive regulations. These regulations pre­ the use of the de-notification clause to exempt land belonging
clude a large number of potential transactions, and put heavy to the powerful but simultaneously acquiring all neighbouring
downward pressure on the transaction prices. Rather than properties. By now, these misuses of the law stand well docu­
increasing the scope of compulsory acquisition, there is a need mented in the literature (Gonsalves 2010; Guha 2007; Desai
to facilitate transfer of land through voluntary transactions. 2011; Morris and Pandey 2007; Sarkar 2007; Singh 2006).
This calls for immediate reforms in the legal and regulatory However, the issue of litigation and its serious consequences
framework governing land and its use. has not received due attention from researchers. The use of the
eminent domain in India is invariably followed by disputes
Finally, we discuss the l a r r Bill. We argue that in its present
form the bill fails to address some of the ongoing abuses of the and litigation over compensation. To put the relevant issues in
eminent domain - that is, the power of the State and its agencies perspective, the l a a entitles the affected owners to the “market
to compulsorily acquire private property for “public purpose” value” of their property. In practice, the market value is deter­
activities. The bill leaves open several back doors for the states mined on the basis of “circle rates” and/or the sale deed of a
to favour the powerful and private companies at the expense similar property. The problem, however, is that due to unreason­
of the rights of the farmer and the forest dweller. We offer sug­ able restrictions imposed by the change in land use regulations,
gestions for the bill, in view of the findings in the paper. the market price of agricultural land is acutely suppressed
(Section 5 discusses this issue in detail). Moreover, to save on
2 Misused Eminent Domain: Disputes and Litigation stamp duty charges, the price reported in a sale deed is gener­
The history of eminent domain in India is a saga of unmiti­ ally much lower than the actual transaction price. As to the
gated abuses of the law, which is the archaic and ambiguous circle rates fixed by the states, they are perpetually outdated
l a a . Part v i i of the Act allows acquisition for private compa­ and well below the market rates. Therefore, both sale deeds
nies, subject to restrictions imposed by sections 38-44 of this and circle rates under-represent the true market value of the
part. However, the states have repeatedly exploited ambigui­ land; between the two, circle rates are even lower. Taking note
ties in the Act to acquire land for companies and the powerful. of this mismatch, the judiciary has held that the market value
To illustrate, there is no provision for emergency acquisition should be determined on the basis of the circle rate or the
under Part vn. Besides, acquisition for companies is restricted registered sale deed rates of similar properties, whichever is
to only those activities from which the public can benefit higher.4 Nonetheless, the land acquisition collectors ( l a c s )
directly, such as housing for workers, setting up of schools routinely award compensation on the basis of circle rates. This
and hospitals, etc. Nonetheless, the states have acquired land is the primary reason behind the inadequacy of government-
for all sorts of activities of companies, including the ones provided compensation and associated disputes.
that cannot even remotely serve any public purpose; for The excessive litigation under existing law is due to the fact
example, for setting up of shoe-manufacturing factories, air- that the l a c s and courts use a different basis for determining
conditioner-compressor plants, hotels and swimming pools! compensation. While the l a c s use circle rates, the courts tend
Moreover, acquisition has largely been done using the infamous to be lenient and use relatively high value sale deeds as the
emergency clause. basis for determining compensation. Consequently, court-
In order to circumvent the restraining provisions of Part vn, awarded compensation is consistently higher. An examination
the states have instead used Part 11 to acquire land for compa­ of court judgments confirms this claim. Table 1 (p 48) presents
nies. This part is meant for public purpose acquisitions, and summary statistics of the available 525 judgments delivered by
does not impose the above restrictions, l a a is ambiguous as to the a d j courts in Delhi. These judgments have been delivered
when acquisition for companies can be undertaken under Part over three years - 2008,2009 and 2010. As the table shows, for
11. Judicial interpretations of the Act have only aggravated its as much as 86% of cases the a d j court awards are strictly
misuse. Since the 1960s, the judiciary has treated acquisition greater than the l a c awards.
for companies as public purpose acquisition, as long as a part Moreover, litigation does not end even when the a d j court
of the compensation cost is paid out of the state exchequer.2 increases the compensation amount for those owners affected
Economic & Political w e e k l y I5I3 CT m ay 12, 2012 vol x l v ii n o 19 47

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:57 UTC
A ll use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

by the acquisition. As the analysis of the Table 1: Summary Statistics of ADJCourts' (Delhi) Awards
Punjab and Haryana High Court sug­ LandType Number %of Caseswith %Increasein Compensation byCourt % Increasein Compensation byCourt,
Court Awards Conditional on Positive Increase
gests, those who can afford it approach >LACAward Mean Std Dev Min Max Mean Std Dev Min Max
the higher judiciary to seek further en­ Agriculture 470 90.21 18.36 49.53 0 427.63 20.35 51.76 1.0 427.63
hancement in compensation. Table 2 Residential 12 83.33 29.47 38.72 0 109.09 35.36 40.01 9.1 109.09
presents summary statistics of 305 judg­ Commercial 13 46.17 33.09 45.66 0 109.09 71.69 41.04 30 109.09
ments of the high court pertaining to the Others 30 73.33 49.21 131.91 0 514.28 67.11 150.9 1.41 514.28
year 2009. As the table shows, in as Total 525 86.09 20.57 56.68 0 514.28 23.44 59.95 0.20 514.28
Source: Based on data collected from ADJ courts (Delhi) judgments delivered in 2008,2009 and 2010 from http://
many as 63% of appeal cases, the owners delhicourts.nic.in. Data extracted and compiled manually by author.
did succeed in getting a compensation Table 2: Summary Statistics of Punjab and Haryana High Court Judgments
higher than what they had received from Total Number ofJudgments (305)
the a d j court. Overall, in 97% of liti­ %of Caseswith ADJAward %of Caseswith HCAward Greater %of Caseswith HCAward Greater
Greater Than LACAward Than ADJAward Than LACAward
gated cases, the court-awarded compen­ 91 63 97
sation is strictly higher than the l a c %Increase in Compensation by %Increasein Compensation by HC %Increase inCompensation by HC
award. Moreover, average court awards ADJCourt over LACAward over ADJAward over LACAward
Mean Std Dev Min Max Mean Std Dev Min Max Mean Std Dev Min Max
are almost 200% higher than the l a c
125.5 260.8 0 - 2,925 43.1 194.9 --54.28 3,202.22 197.6 357.1 0 3,202.22
awards.5 Presumably, it is the people
HC=High Court.
with sufficient financial resources who Source: Based on data collected from Punjab and Haryana High Court judgments pertaining to the year 2009 from http://
go to the high courts for litigation. www.judis.nic.in/. Data extracted and compiled manually by author.

A preliminary examination of judgments of other courts in plus some solatium. However, determination of market price is
the country suggests that the phenomenon of court awards a genuinely difficult task, and highly vulnerable to errors. This
being greater than l a c awards is ubiquitous. In some cases, value is determined by considering the prices of similar prop­
the difference between the l a c award, on the one hand, and erties that have been traded in the market. But many attributes
the judiciary-awarded compensation, on the other, is startling. of a property affect its value, and no two properties are identi­
A few illustrative examples: cal. So, the officially determined compensation is bound to
In cesc Limited, vs Sandhya Rani B arik and Ors, 2008,6 the judiciary differ from the true market value of the property. Indeed,
increased the rate of compensation substantially. The l a c awarded several empirical studies confirm this claim.9
compensation at the rate of Rs 50,000 per cottah. In contrast, the As a result, however, the officially awarded compensation is
judiciary awarded compensation at the rate of Rs 2,25,000 per cottah.
inherently prone to litigation. Often, several properties can be
.
claimed to be identical to the property in question. So, an owner
In K anta Devi & Ors vs State O f H aryana & A n r7 the rate of com pen­
sation was increased from Rs 4 0 ,0 0 0 per acre (by the l a c ) to
can choose properties with rates higher than the received
Rs 3 ,8 4 ,0 0 0 per acre. compensation, and claim these properties to be similar to his
*** own. Therefore, there is always scope for profitable litigation,
In Revenue Divisional Officer-cum-LAO vs Shaik A za m Sahem 8 the unless the l a c identifies all the even vaguely similar proper­
Supreme Court increased the rate of compensation from Rs 16,000 to
ties and uses the one with the highest rate to award compensa­
Rs 1,41,666.66 per acre!
tion. In practice, l a c s do not have incentives to assiduously
Understandably, those affected by acquisition have a strong search for the market value. They play it safe to avoid audit
incentive to opt for litigation. Given the intensity of litigation objections, and award compensation based on relatively low
over compensation, the neglect of the issue in the writings on value circle or sale deed rates. This, in turn, means that the
compulsory land acquisition laws is lamentable.3 owners stand a very good chance of winning during litigation.
However, litigation entails unnecessary spending of a great
3 Inefficiency and Litigation under Eminent Domain deal of money and other resources by the acquisition-affected
Excessive litigation (as discussed earlier) is partly attributable parties as well as by the state. Moreover, litigation is socially
to the callous approach adopted by the l a c s in determining regressive; it is much more profitable for the owners of the rel­
compensation. However, there are inherent problems with the atively high value properties than for those owning low value
use of the eminent domain, even if the concerned officials are properties. Since high value property owners can and do put in
competent and upright. It is inherently litigious. Moreover, it intensive efforts during litigation - in terms of choice of the
can guarantee neither efficiency nor fairness of the outcome. quality of lawyers, search for high value sale deeds and other
At the heart of the problems with compulsory acquisition is evidence needed to prevail in court. In contrast, small farmers
the lack of information about owners’ valuation of their prop­ and the poor, who presumably own low value properties, can­
erties. By definition, compulsory acquisition or reallocation of not afford excessive spending. What worsens the situation is the
land implies a lack of voluntary transaction which could reveal fact that the burden to prove the market value is on the owner,
the value of the land to its owner. Without this information notwithstanding the fact that all of the relevant information -
fairness and efficiency of compensation cannot be guaranteed. records of the sale deeds, land type, etc - is solely possessed by
As mentioned above, most eminent domain laws require the the government. So, court-awarded compensation is expect­
compensation to be equal to the “market” value of the property, edly higher for high value properties. Ongoing research by the
48 MAY 12, 2012 V O L X L V II N O 19 IWM Economic & Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:57 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

author seems to support this inference. Table 1 also provides However, whatever measures are available under eminent
empirical though only preliminary support to this claim; the domain to assess and mitigate these costs and effects, the
gains from litigation are higher for commercial and residential same can be adopted to regulate a voluntary transaction. For
(plausibly higher value) properties than for agricultural land. example, the buyer can be made to compensate the land
Even if it were possible to correctly determine and pay the dependent non-owners by the same amount as would be the
market value, the fairness and efficiency of compulsory acqui­ case under the eminent domain; the l a r r Bill has adopted
sition cannot be ensured. For acquisition to be efficient the some such measures. Similarly, whatever regulation is put on
resulting benefit should be greater than the cost; the latter is the activity of the project developer buyer, the same can be
the sum of the owners’ valuations and other associated costs. used if he buys land through a voluntary transaction. So, as far
For the compensation to be “fair”, it should at least be equal to as the third party effects are concerned, a voluntary trans­
the owner’s valuation, which is invariably different from the action is as efficient and fair as eminent domain.
market value of the property. Consequently, there is inescapa­ Therefore, when the direct and indirect effects of land
ble variance between the awarded compensation, on the one transfer are considered together, regulated voluntary transac­
hand, and the valuation of affected owners, on the other. tions are more efficient and fair than the compulsory acquisi­
Moreover, land transfers may take place even though this is tion. Indeed, if there were well-functioning land markets,
inefficient even from a pure cost-benefit standpoint. there will be no justification for the use of eminent domain. It
Before concluding, it is pertinent to mention that some is here that the second limitation of voluntary transactions
studies have proposed mechanisms to help solve the problem becomes relevant. While the property market in and near
arising due to the lack of information on owners’ valuations urban areas is very active, in rural areas it is rather dormant.
(Gangopadhyay 2011; Ghatak and Ghosh 2011). However, the The inertness of the market in agricultural land is attributed to
actual use of these mechanisms is susceptible to several high transaction costs on account of poor land records, and
problems. For a critique of the suggested measures see Singh most importantly to the hold-up by the sellers/owners who
(2012). However, the proposed schemes require the state to want to extract an undue share of the surplus from the buyer.
determine the form and the magnitude of compensation, on Certainly, high transaction costs owing to poor land records
account of quality, location and other differences between the and other market frictions limit the frequency of transactions
type of land surrendered by the owners and the one given to in agriculture land. However, there are other more crucial fac­
them as part of land-for-land, and for the execution of r & r tors at play. First, there is limited scope for a profitable transac­
packages. Therefore, even if the state agents are honest and tion, as long as the land is to be used for agricultural purpose.
capable, these schemes are vulnerable to disputes and litiga­ While a potential buyer’s valuation generally depends on the
tion, and prone to failures on efficiency as well as fairness economic gains from the land, for the owner/seller its worth
fronts. The abuses of the eminent domain reported in the pre­ depends on both economic and personal considerations.
vious section show that the assumption of a benevolent state is Therefore, a land transaction is likely to come about only if its
completely misplaced to say the least. economic value to the buyer is much more than to the owner.
However, there is a limit to which the economic worth of agri­
4 A Few Transactions in Agriculture Land: All a Hold-out? cultural land can vary across individuals. The profitability of
Most of the problems associated with compulsory acquisition agricultural land does not vary considerably with the size of
get precluded if land transfers are voluntary. By its very the holding; if anything, the data indicate existence of an
nature, a voluntary transaction ensures that the land transfer inverse relationship between the productivity and the size of
takes place only if the buyer’s valuation of the land is higher landholding.10 So, it is not surprising that very few transac­
than that of the existing owner, and at a price at least equal to tions are observed wherein the seller and the buyer use the
the latter’s valuation. This means, controlling for third party land for agricultural purpose. To the extent productivity dif­
effects, a voluntary transaction is strictly more efficient and ferences arise - on account of differences in the access to
fair than compulsory acquisition. Moreover, there is no scope banking system, labour-land ratio and technical/mechanical
for ex post disputes and litigation over the price received by endowments of the parties - there is empirical evidence sug­
the owner. gesting that these factors do play a significant role in explain­
However, voluntary transactions as a means of land trans­ ing whatever little transactions are observed in agricultural
fer have two limitations. First, the buyers and sellers will typi­ land (Deininger et al 2007).
cally ignore the third party effects resulting from their trans­ Presumably, major productivity differences arise when agri­
actions (Banerjee et al 2007; Bardhan 2011). This can be a cultural land is used for non-agricultural purposes, say to set
source of serious concern. When agricultural land is put to up an industry or develop a housing complex, etc. However,
non-agricultural ends, generally it will affect a large number the use of agricultural land for non-agricultural purposes is
of non-owners - sharecroppers, agriculture workers, artisans, subject to several regulations. The decision-makers use these
etc. In some cases, these people end up losing their primary regulations to extract rent from the project sponsors. As is
source of livelihood altogether. Nonetheless, the voluntary demonstrated in the following section, it is these obstructive
transaction between the buyers of land and the owner farmers regulations that are responsible for the absence of frequent
will ignore these and the other third party effects. transactions involving transfer of agricultural land to other
Economic & Political w e e k l y ™ may 12, 2012 vol x l v ii n o 19 49

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:57 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

developmental activities. When granted exemption from said to be a significant component of the project costs. For the
them, the project developers have been able to buy large tracts real estate projects and also for small and medium sized indus­
of land through voluntary transactions. Here are some illustra­ trial projects these costs are comparable to the cost of land
tive examples. itself.15 Unsurprisingly, these “regulatory” costs preclude a
The developers of the Gurgaon Special Economic Zone ( s e z ) large number of potentially profitable transactions. Moreover,
have been able to buy several pockets of hundreds of acres of they put heavy downward pressure on the price of transac­
contiguous agricultural land directly from the owners.11 Simi­ tions that still remain feasible, and thereby affect the distribu­
larly, the promoters of the Kakinada s e z in Andhra Pradesh tion of surplus against the farmers.
have bought as much as 4,800 acres by directly negotiating To see how let us suppose there are two entrepreneurs. Both
with the farmers.12 In Maharashtra, the Navi Mumbai s e z need to buy an acre of land for their projects. There are two
developers have been able to buy several thousand acres farmers willing to sell their land. Each farmer values his (in­
through voluntary transactions.13The g m r group for its Chhat- fra-marginal) acre at Rs 80 lakhs. However, while the first en­
tisgarh project has purchased the 428 acres that it needed trepreneur finds each of the above acres of land worth Rs 100
directly from the villagers. Indeed, there are several other lakh, the second one considers it worth Rs 110 lakh. In the
examples where the project developers have successfully pur­ absence of any regulatory costs, there is scope for two mutu­
chased hundreds of acres directly from the owners.14 ally beneficial transactions, each involving one of the farmers
These examples show that the seller hold-out is not inevita­ and one of the entrepreneurs. But, if the “rent-seeking” costs of
ble even for large projects, provided a facilitating environment land use clearances are Rs 25 lakh per acre, then the first en­
is created; arguably, voluntary transactions are much more trepreneur’s net gains from the land are reduced to Rs 75 lakh,
likely to succeed for small projects and those that have flexibil­ which is less than the farmers’valuation. Consequently, a prof­
ity over location. It is not entirely plausible to attribute the lack itable transaction between the first entrepreneur and any of
of transactions in agricultural land only to the seller hold-out the farmers becomes impossible. In contrast, a gainful trans­
or other market frictions. Such misbelief can only serve to jus­ action between the second entrepreneur and any one of the
tify an excessivemse of the compulsory acquisition laws. farmers is still possible. However, now the entrepreneur would
It must be granted that the risk of hold-up is for really large not pay more than Rs 85 lakh, that is, his valuation of the land
and location-specific projects. However, even for these projects after factoring in the total regulatory costs; otherwise, he
the choice of compulsory acquisition is not immediate. There would end up paying any price up to Rs 110 lakh, depending on
is a trade-off between inefficiency on account of a hold-up, on the bargaining skills of the farmer.
the one hand, and the earlier discussed inefficiency associated Indeed, a large set of otherwise feasible transactions gets
with the use of eminent domain, on the other. Moreover, the ruled out not due to the hold-out by the sellers but by the regu­
hold-up risk for large projects can be reduced substantially by latory hold-up. This regulatory hold-up has greatly added to
lowering transaction and regulatory costs currently associated the tendency among project developers to bribe the concerned
with land deals. The next section suggests some helpful measures. state government to use the eminent domain. When land is
compulsorily acquired and given to a private company in the
5 The Way Forward name of a public purpose, the c l u clearances are not needed
At present, there are several institutional and regulatory hur­ or are provided along with the land. Therefore, the project
dles that thwart a large number of voluntary transactions. Use developers are better-off bribing the powers that be and get them
of agricultural land for other purposes requires what is called to acquire the needed land. In fact, this route has added advan­
the change-in-land-use ( c l u ) clearance from the state govern­ tage for project developers. As the land price under eminent
ment, among many other regulatory clearances from local domain is much lower than the market price, the developers
authorities. Some of these regulations make the large-scale have been getting land at a rate much cheaper than what they
purchases of land, for example, for setting up of a big industry, would have ended up paying under voluntary transactions.
totally impossible. To illustrate, the land ceiling regulation Things can be much better if the institutional and regula­
limits the size beyond which agricultural land cannot be tory infirmities are set right. The large-scale purchases of land
owned. So, a project developer cannot buy and own agricul­ by the developers, as discussed in Section 4, became possible
tural land in its current use beyond this limit, which varies only because the project developers were granted exemptions
from state to state. Moreover, it is not possible to buy the from the c l u and other regulations. There is a need to replace
required land by appealing to an alternative use (so as to avoid the discretionary and devious c l u regulations with transpar­
the ceiling regulation), since to get a c l u clearance the project ent, objective and ex ante zoning regulations, setting different
developer should possess the land beforehand. Therefore, the zones for different activities. As long as the land is used for the
developers of big projects have no other option but to “persuade” purposes permitted by these regulations, the state should have
the state government concerned to acquire the land. no role in further governing of land transactions.
Even when the land required for the project is within the Of course, transaction costs of direct purchases can be
permissible limits of the land ceiling rules, the regulatory reduced greatly if the ownership and land type records are clear
hold-up is an equally serious issue. The formal and informal and verifiable. Poor land records and the resulting disputes
(kickback) costs of these clearances, especially the c l u s , are have held back not only development of an efficient land market,
50 MAY 1 2 , 2 012 VOL XLVII n o 19 GQH Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:57 UTC
A ll use subject to https://about.jstor.org/terms
SPECIAL ARTICLE
but the overall development of the economy. There is an ur­ and population dense England! How so? The local bodies in
gent need to update and digitalise land records related to own­ the us as well as in England have incentives to compete with
ership and type of land. These records should be tamper-proof one another to attract projects. However, in England there
and made available publicly, so that they can be used by owners, are several effective constraints on the use of land for the pur­
potential buyers and courts for verification of titles. There pose. While the land acquiring authority is a local body, the
should be real-time coordination between the agencies re­ power to grant permission for the use of eminent domain is a
sponsible for registration of land deals and those responsible central authority. This authority, which is the office of the
for maintenance of land records. As such, these measures will deputy prime minister, makes sure that the local authorities
go a long way in facilitating voluntary transactions by clearing do not engage in a race to the bottom. Moreover, before initi­
any uncertainty over ownership of land.16 ating the land acquisition process, the local authority has to
Collective bargaining with the owners or their representa­ publish, discuss and get the development plan approved by
tives seems to offer another important channel for reducing local legislation. This means that for a local authority to be
the transaction cost. There are instances wherein the owners able to use the eminent domain powers, it has to prove
themselves have taken initiatives to pool and provide contigu­ preponderance of benefits over the costs resulting from the
ous land. For example, more than 1,000 farmers from Avasari- project at hand. A great advantage of this process is that the
Khurd villages along the Pune-Nashik highway pooled about crucial issues, like desirability of acquisition, alternative loca­
over 2,665 acres to form a special purpose vehicle to set up a tions, etc, are resolved beforehand. In contrast, in the us,
multi-product s e z .17 Indeed, there is a need to encourage similar constraints on the use of eminent domain are amiss.19
collective bargaining. Besides, rather than focusing on trans­ As a result, while compulsory acquisition for private projects
fers of ownership, it will help to create a facilitating environ­ has become highly contentious in the us, by comparison, the
ment for lease agreements over land. In addition to increasing authorities in England have rarely encountered resistance to
availability of land for developmental purposes, such agree­ compulsory acquisition.
ments have the advantage of permitting the sharing of owner­
ship benefits over time, thereby making farmers stakeholders in Preventing a Race to the Bottom
the project rather than land losers. Magarpatta City, a 400-acre There is a need to control the race to the bottom among the
complex developed by a cooperative of farmers is an illustra­ states, especially for large projects. Unfortunately, the l a r r
tive case in point. Other possibilities also exist.18 It will also Bill in its present form does not address this serious issue. Given
help to legalise the contingent contracts for land deals. Under the federal structure of Indian politics, it is neither feasible nor
these contracts, the project developer can negotiate a “future advisable to have a central authority empowered to approve
sale contract” with each owner. If the developer actually buys compulsory acquisition. However, it will help if the new land
the land, the agreed price is paid to the owner; otherwise, the acquisition law provides an independent state-level institution
developer pays a small compensatory amount to the owner to to discuss all relevant project details pertaining to its size, loca­
cover the time and negotiation costs incurred by the latter. tion, costs, benefits, form of compensation, r & r package, etc.
These contracts will not eliminate the problem of hold-up Such a discussion should be a prerequisite to the start of the
altogether, but they can surely reduce its intensity. acquisition process. The l a r r Bill provides for a “Land Acquisi­
The problem is that these initiatives can be undertaken only tion Rehabilitation and Resettlement Authority” ( l a r r a ) as a
by the concerned state government, since the land, its usage supervisory authority. But, l a r r a ’s role only comes into play ex
and the contracts over land are all in the state list. But, the post. Moreover, most of the crucial decisions pertaining to
decision-makers in the state governments do not have the Social Impact Assessment ( s i a ) , r & r , etc, have been delegated
incentive to reduce the scope of eminent domain. Serious think­ to committees comprising of state-level bureaucrats whose past
ing is required to incentivise the states to undertake the above performance leaves much to be desired. It is important that the
reforms. Fortunately, land acquisition is in the concurrent list. final reviewing authority for crucial matters like s i a and r & r is
This means that there is room for a centrally enacted land an independent and representative body.
acquisition law to help in the process and thereby reduce the Apart from the above measures, it is crucial that the entire
potential for misuse of eminent domain. In particular, the cost of compensation is paid by the entity benefiting from the
central law can determine the scope and dictate the terms for acquisition. Moreover, the compensation amount should be
the use of compulsory acquisition laws. increased substantially. While it is almost impossible to deter­
In the recent past, states have exhibited a strong tendency to mine and provide compensation equal to the valuation of
use assembled land to attract big projects. Several states have land to its owners, it seems better to err on the higher rather
competed with one another in offering lucrative land deals to than the lower side. As discussed earlier, when compensation
the developers, leading to a race to the bottom. International is different from individual valuations, the acquisition is
experience shows that neither the sellers hold-out nor land very likely to be inefficient. However, this risk is much higher
scarcity is the leading cause for this race to the bottom. if the compensation is generally less than the individual valu­
It is instructive to note that the use of the eminent domain ations. Since, if the compensation rate appears to be too high,
for private projects is more frequent and controversial in land the developers can always choose to go for direct purchase
abundant United States (us) than in the relatively land scarce from the owners. The l a r r Bill provides for an increase in
Economic & Political w e e k ly BB59 m a y 12, 2 0 1 2 v o l x l v i i n o 19 51

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:57 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE
compensation. However, the proposed approach is problem­ in principle, the court awards can be less than the LAC-awarded
atic, a point discussed next. compensation. Therefore, it makes the choice of litigation a
riskier proposition for the affected parties. However, this as­
6 The LARR: Additional Critique and Suggestions pect of the new law per se is not going to make it any less liti­
The l a r r Bill has several laudable provisions. The most impor­ gious, since there is nothing in the bill to make the l a c deter­
tant is the creation of a legal entitlement to compensation and mine compensation carefully. The l a c s will continue to play it
r & r not only for the owners but also for all other livelihood safe by awarding compensation on the basis of the low valued
losers. All the same, the bill fails to address the above- sale deeds or circle rates. This means that the tendency of the
discussed fundamental causes behind the disputes and litiga­ affected parties to litigate the l a c awards will remain un­
tions over compulsory acquisition. Moreover, it opens up several diluted. Moreover, during litigation only the owners can dispute
back doors for the state to favour companies at the expense of the compensation awards; the government cannot question its
farmers’ rights and the livelihood of forest dwellers.20 True, the own decision. Therefore, guided by the legal principle of the
bill drastically reduces the scope of the notorious emergency prohibition of reformatio inpeius,21a trial court can only decide
clause. However, the excessive use of the emergency clause is whether compensation can be increased or not. So, the court
only one of the several abuses of the extant law. The others awards can be higher or at worst equal to the l a c awards, even
abuses involve covertly diverting the acquired land to companies, in absence of an explicit provision in the law. Therefore, those
adoption of the pick-and-choose method during acquisition, affected by an acquisition will continue to litigate. All that the
and the misuse of the de-notification clause to exempt land bill does is replace the a d j court with l a r r a to adjudicate
belonging to the powerful. compensation-related disputes. Substitution of one adjudica­
Under the proposed law the states can continue with these tion authority with another cannot reduce litigation.
practices unabated. Doubtful? Consider the following provi­ . If anything, litigation is likely to intensify further. The bill
sions in the bill. Section 69 allows the states to change the requires the compensation, including solatiam, to be four times
purpose for which the acquired land is finally used, that is, the the market value of the land for rural areas, and two times the
public purpose can be changed after acquisition. Furthermore, market value for urban areas. That is, for purpose of compen­
Section 70 gives them unbridled power to transfer already sation, the multiplier has been raised from 1.3 under the cur­
acquired land to private companies and individuals in the rent law22 to two and four for urban and rural areas, respec­
name of public purpose, as long as 20% of the resulting profit, tively. To see why the increased multiplier will further inten­
if any, is shared with the original owners. And, if this was not sify litigation, consider a piece of agricultural land measuring
enough, Section 61 allows for mid-way de-notification as well! 100 square metres. Under the extant law, since the multiplier
These provisions together give the states untamed powers to is 1.3, if compensation is determined using a sale deed rate of
acquire land in the name of public purpose and transfer it to say Rs 1,300, instead of a circle rate of say Rs 1,000 per square
companies. As to the sharing of 20% of the profit with the metre, the total compensation will be higher by Rs 39,000. In
owners, the ministry seems to have learnt nothing from the comparison, under the proposed law, since the multiplier is
insidious manipulation of accounts by companies. four, the compensation amount will go up by Rs 1,20,000!
For obvious reasons the incentive to misuse eminent domain So, under the proposed law, the gains from litigation will be
is especially pronounced for private projects. Therefore, the much more than is the case under the existing law, given the
public-versus-private distinction is important. The scope of proclivity of the l a c s and the courts to use a different basis for
compulsory acquisition for private projects needs to be reduced determining compensation. The basis of determining compen­
drastically. The use of the eminent domain for private projects sation - circle rate versus sale deeds, one sale deed versus the
should be restricted to large projects, by providing a lower other - becomes increasingly crucial and worth litigating, as
limit for government intervention. As the examples produced the land size and/or the difference among sale deeds and
in section 5 show, the seller hold-up is not a serious concern for circle rates increases. In fact, people privy to the official deci­
small and medium size projects. On top of it, these projects are sions can profit by “engineering” the high value sale deeds
flexible in terms of location. Unfortunately, the all-encompass­ ahead of the acquisition, as these sale deeds can be used to
ing lists of public purpose activities in Sections 2(n) and 2(y) of get higher compensation.
the bill allow the states to intervene in acquisition and transfer In order to mitigate the problem of excessive litigation, it is
of land to companies for all sorts of essentially private activities. important that the initial compensation itself is determined in
Moreover, there is nothing substantial in the bill to change light of all of the relevant information, such as records of the
the vicious cycle of litigation and the resulting wastage of sale deeds, land type, its future value, etc. All this information
private and public resources. The bill unleashes conflicting should be required to be shared with the affected parties
forces in terms of incentives for the affected parties to liti­ before compensation awards are made. Here, it will help if the
gate, and thereby further complicates matters. To put things compensation is determined by an independent and represent­
in perspective, Section 25 of the existing l a a mandates that ative agency set up for the purpose. This agency should be
the court-awarded compensation cannot be less than the l a c required to use all of the above-mentioned data relevant for
awarded compensation. The bill, in contrast, provides no such determining compensation. Moreover, the scope of compul­
safeguards to the litigant owners. So, under the proposed law, sory acquisition needs to be minimised.
52 m ay 12, 2012 v o l x lv ii n o 19 0QB3 Economic 8c Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:57 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE
NOTES________________________________ 21 The legal principle of the prohibition of refor­ Gaurav, Sarthak and Srijit Mishra (2011): “Size-class
matio in peius does not allow a decision at and Returns to Cultivation in India: A Cold Case
1 Land Acquisition, Rehabilitation and Resettle­
appeal to put an appellant in a worse position Reopened”, Working Paper, WP-2011-027, Indira
ment Bill, 77-2011.
than it was in under the impugned decision. Gandhi Institute of Development Research.
2 See Smt Somawati & Others vs State o f Gujarat The principle is generally applicable to the ap­ Ghatak, Maitreesh and Parikshit Ghosh (2011): “The
(AIR 1963 SC 151) and Devinder Singh & Others peals against executive decisions. Land Acquisition Bill: A Critique and a Proposal”,
vs State of Punjab & Others (2008(1) SCC728),
22 Under the LA Act 1894, the provision of 30% Economic & Political Weekly, 46(41), 65-72.
among others. Since these judgments, courts
solatium makes the multiplier 1.3. Gonsalves, Colin (2010): “Judicial Failure on Land
have annulled some acquisitions, but largely
on procedural grounds. Acquisition for Corporations”, Economic &
Political Weekly, XLV(32): 37-42.
3 AIR 1975 SC 1182.
REFERENCES_________________________________ Guha, Abhijit (2007): “Peasant Resistance in West
4 See for instance. The Special Land Acquisition
Bengal a Decade before Singur and Nandigram”,
Officer, Bangalore vs T Adinarayan Setty (AIR Allen, Tom (2008): “Controls Over the Use and Abuse Economic & Political Weekly, 15 September,
1959 SC 429), K S Paripoornan vs State o f Kerala of Eminent Domain in England: A Comparative 3706-11.
(AIR 1995 SC 1012), Panna Lai Ghosh & Others View” in Robin Paul Malloy (ed.), Private Property,
vs Land Acquisition Collector & Others (decided Malloy, Robin P, ed. (2008): Private Property, Com­
Community Development, and Eminent Domain munity Development, and Eminent Domain
on 12 December 2003 viz. Appeal (civil) 9734 (Hampshire: Ashgate Publishing), 75-100.
of 2003), Rameshwar Solanki & Others vs. UOI (Hampshire: Ashgate Publishing).
Arun, T K (2011): “Alternative to Land Acquisition”,
& Others (AIR 1995 Delhi 358), and Tindey and Morris, Sebastian and Ajay Pandey (2007): ‘Towards Re­
The Economic Times, 4 July.
Others vs UOI & Others (2000(54) DRJ(DB) form of Land Acquisition Framework in India”,
Aycock, S Alan, and Roy Black (2008): “Special Economic & Political Weekly, 2 June, 2083-90.
384), and Jasrath vs Union of India (130 (2006)
Master Bias in Eminent Domain Cases”, Real
DLT700), among others. Munch, Patricia (1976): “An Economic Analysis of
Estate Issues, 33(2): 53-58. Eminent Domain”, The Journal of Political
5 Note that the results in the two tables are not
Banerjee, Abhijit V, Pranab Bardhan, Kaushik Basu, Economy, 84(3): 473-97-
strictly comparable. Apart from pertaining to
Mrinal Datta-Chaudhuri, Maitreesh Ghatak, Ramanathan, Usha (2011): “Land Acquisition, Emi­
different states, note that Table 2 reports a
Ashok Guha, Mukul Majumdar, Dilip Mookheijee nent Domain and the 2011 Bill”, Economic &
summary of awards for only a subset of the
and Debraj Ray (2007): “Beyond Nandigram:
ADJ adjudicated cases, those that went to the Political Weekly, 46(44): 10-14.
Industrialisation in West Bengal”, Economic &
high court. Sarkar, Abhirup (2007): “Development and Dis­
Political Weekly, 42:1487-89.
6 CESC Limited vs Sandhya Rani Barik and Ors, Bardhan, Pranab (2011): “An Uneven Field”, The
placement: Land Acquisition in West Bengal”,
2008 (INSC1036), decided on 7 July 2008. Economic & Political Weekly, 42(16): 1435-42.
Hindustan Times, 10 June.
7 Decided by Supreme Court on 8 July 2008. Sarkar, Swagato (2011): “The Impossibility of Just
Bell, Abraham and Gideon Parchomovsky (2007):
8 Decided on 13 January 2009. Land Acquisition”, Economic & Political Weekly,
“Taking Compensation Private”, Stanford Law
9 See, for example. Munch (1976), Bell and Par- 46(41): 35-38.
Review, 59(4): 871-906.
chomovsky (2007) and Aycock and Black Sarma, E A S (2011): “Sops for the Poor and a Bonus
Bhaduri, Amit and Medha Patka (2009): “Industrial­ for Industry”, Economic & Political Weekly,
(2008). isation for the People, by the People, of the Peo­
10 For discussion on this issue and survey of rele­ 46(41): 32-34.
ple”, Economic & Political Weekly, 44(1): 10-13.
vant literature see Gaurav and Mishra (2011). Singh, Jaivir (2006): “Separation of Powers and
Chakravorty, Sanjoy (2011): “A Lot of Scepticism the Erosion of the Right to Property in India”,
11 This is not to .say that any amount of land can and Some Hope” Economic & Political Weekly,
be purchased through voluntary transactions. Constitutional Political Economy, 17(4): 303-24.
46(41): 29-31.
The SEZ project has got stuck since the devel­ Singh, Ram (2012): “Inefficiency and Abuse of Com­
Deininger, Klaus, Songqing Jin and Hari K Nagara- pulsory Land Acquisition: An Enquiry into the
oper has failed to get the needed 10,000 acres
jan (2007): “Determinants and Consequences Way Forward”, Working Paper No 209, Centre for
of land, all contiguous.
of Land Sales Market Participation: Panel Evi­ Development Economics, Delhi School of Econo­
12 See “ONGC Preparing Ground for Kakinada dence from India”, Working Paper 4323, World
Refinery, SEZ”, viewed on 6 January 2012 mics (http://www.cdedse.org/pdf/work209.pdf).
Bank (http://elibrary.worldbank.ord/content/
(h ttp ://h in d u .c o m /2 0 0 6 /1 2 /1 5 /s to r ie s /
workingpaper/io.i596/ i 8 i 3-9450 -4323)-
2006121508510300.htm).
Desai, Mihir (2011): “Land Acquisition Law and the Sources ofData/Judgments
13 “RIL Deals Directly with Farmers for SEZ Land Proposed Changes”, Economic & Political Weekly, http://www.judis.nic.in/
in State”, viewed on 28 November 2011 (http:// 46(26,27): 95-100. http://delhicourts.nic.in/
articles.economictimes.indiatimes.com/2007-
Gangopadhyay, Shubhashis (2011): “Land for http://www.iasri.res.in/agridata/08data/fore-
oi-i5/news/28483538_i_maha-mum bai-sez-
Growth”, The Business Standard, 24 September. wordo8/conversionF.pdf
purchase-land-stamp-duty). Also see, “Status
of MSEZ”, viewed on 6 January 2012 (http://
www.docstoc.com /docs/26228984/
MAHARASHTRA-SEZs on). E conom ic& P oliticalw E E K L Y
14 For more examples see “Who Tilled My Land
and Ate My Pie?” viewed on 20 October 2011
(http://www.rediff.com/business/slide-show/ EPW 5-Year CD-ROM 2004-08 on a Single Disk
slide-show-i-special-who-tilled-my-land-and-
ate-my-pie/2ono629.htm). The digital versions of Economic and Political Weekly for 2004, 2005,2006,2007 and 2008 are
15 See “What’s Wrong with the Real Estate Sector now available on a single disk. The CD-ROM contains the complete text of 261 issues published
in India”, The Economic Times, viewed on 28 from 2004 to 2008 and comes equipped with a powerful search, tools to help organise research and
November 2011 (http://economictimes. utilities to make your browsing experience productive. The contents of the CD-ROM are organised
indiatimes.com/markets/real-estate/realty- as in the print edition, with articles laid out in individual sections in each issue.
trends/whats-wrong-with-the-real-estate-
sector-in-india/articleshow/8786642.cms). With its easy-to-use features, the CD-ROMwill be a convenient resource for social scientists, researchers
16 Moreover, these measures will help small and executives in government and non-government organisations, social and political activists,
farmers by easing the credit-market frictions students, corporate and public sector executives and journalists.
for them, and will enable better targeting of
government welfare programmes. Price for 5 year CD-ROM (in INDIA)
17 See “Farmers to Set Up Own SEZ Near Pune”, Individuals - Rs 1500
viewed on 28 November 2011 (http://articles.
Institutions - Rs 2500
timesofindia.indiatimes.com/2008-01-19/in-
dia/27773i44_i_sez-avasari-khurd-village- To order the CD-ROM send a bank draft payable at Mumbai in favour of Economic and Political
barren-land). Weekly.lhe CD can also be purchased on-line using a credit card through a secure payment gateway
18 On the merits of participatory development see
at epw.in
Bhaduri and Patkar (2009); also see Arun (2011).
19 For more on the comparison of the use of emi­ Any queries please email: circulation@epw.in
nent domain in the US and England see Allen
(2008) and Malloy (2008). Circulation Manager,
20 For some other criticisms of the bill see Economic and Political Weekly
Chakravorty (2011), Ramanathan (2011), and 320-321, A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013, India
Sarma (2011).

Economic&PoliticalwEEKLY DOBS may 12, 2 0 1 2 vol x l v ii n o 19 53

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:00:57 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

Migration, Transnational Flows,


and Development in India
A Regional Perspective

CAROL UPADHYA, M ARIO R UTTEN

The relationship between migration and development is ontemporary development discourses often represent
a key area in research and policymaking. The
contributions of international migrants to their home
countries in the form of remittances, investments, and
C migrants from developing countries as “agents of devel­
opment” (Faist 2008) because of the substantial resources
that they transmit back home through remittances, invest­
ments, and philanthropic donations. Accordingly, the relation­
philanthropic donations are widely regarded as an ship between migration and development has emerged as
important development resource. This paper reviews a key area of research, with numerous policy initiatives at
the international and national levels directed at enhancing
the migration and development debate and the current
the connections between diasporic communities and their
state of knowledge about flows of migrant resources countries of origin.
to India and argues that tracing transnational In this paper we argue that to fully understand the connec­
connections and flows at the regional level will provide tions between migration and development it is necessary to
carefully unravel the complexities of various forms of transna­
a more nuanced understanding of their social and
tional mobility and remittances. The diverse transactions that
economic implications. are usually homogenised into categories such as remittances
or diaspora philanthropy are in reality multifaceted social
processes that are embedded in, and inflected by, the specific
histories, social structures and political-economic formations
of the migrant sending regions. We argue further that the
effects of migrant resource flows can be best analysed by trac­
ing them as they flow through the transnational social fields
that connect diasporic communities with their home regions.
We first briefly review the migration and development
debate, summarise the current state of knowledge on the flow
of migrant resources to India - what we call “reverse flows” -
which include remittances, diaspora philanthropy, and invest­
ments as well as intangible resources such as knowledge, cul­
This paper was written as part of the research programme “Provincial tural orientations or political ideologies.1We then draw atten­
Globalisation: The Impact of Reverse Transnational Flows in India’s
Regional Towns”, a collaboration between the Amsterdam Institute for
tion to the multifaceted, multidirectional and multifocal
Social Science Research, University of Amsterdam, the Netherlands, and nature of these flows and to the interconnections among them,
the National Institute of Advanced Studies, Bangalore, funded by the and argue that by reinserting migrant resources into their
w o t r o Science for Global Development programme of the Netherlands broader social context we can better understand their effects
Organisation for Scientific Research. A longer version has appeared on the home regions. Finally, we outline a methodological
as Provincial Globalisation Working Paper No 4 (Bangalore: n ia s and
a is s r , 2012, available at www.provglo.org).
framework for mapping and analysing patterns of mobility
and reverse flows in India.
The authors acknowledge the contributions of Anant Maringanti to the
development of the ideas presented here, and thank the other Provincial
Globalisation team members for their inputs and Peggy Levitt and Migration and Development Debate
A R Vasavi for their advice. However, they are solely responsible for any A substantial body of development research and policymaking
errors or lacunae that remain. today focuses on the potential benefits of international migra­
Carol Upadhya (1c arolupadhya@gmail.com ) is with the School of Social tion for developing countries, particularly on the resources
Sciences, National Institute of Advanced Studies Bangalore. Mario that are sent by migrants to their families or communities at
Rutten (M.A.F.Rutten@uva.nl) is with the Amsterdam School for Social home. This new “development mantra” (Kapur 2004) views
Science Research, University of Amsterdam.
migration as an opportunity rather than a negative outcome of
54 MAY 12, 2 0 1 2 VOL XLVII n o 19 BB59 Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:08 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE
poverty and underdevelopment, as migrants from the south with their home regions or towns at various scales, the
working in the north augment their skills and resources and development literature has focused mainly on the relationship
become conduits through which human and financial capital between nationally defined diasporas and their home coun­
is reinvested in their countries of origin. tries, and on the macroeconomic effects of remittances - what
The current discussion on migration and development was has been called “methodological nationalism” (Wimmer and
initiated by the World Bank report on Global Development Glick Schiller 2002). On the other hand, we have a number of
Finance (2003), which claimed that the inflow of financial micro-level qualitative studies that examine how remittance
resources from developed to developing countries in the flows connect particular villages or communities with migrant
form of migrant remittances and philanthropy - at $90 billion members. While this literature provides a'useful corrective to
a year globally - was nearly twice the total flow of official the national-level bias, many of these studies in turn ignore
development assistance. Subsequently, international devel­ the larger political-economic context that shapes patterns of
opment agencies have repeatedly highlighted the signifi­ migration and remittances. Few scholars have attempted to
cance of migrant remittances as a source of capital and capture the multiple scales at which transnational mobilities
investment for developing countries. Recent figures put the and flows occur, particularly at the intermediate level of the
volume of international remittance transfers to developing region, or the interconnections between different levels and
countries at $300 billion - an increase of about 270% in the types of flows.
past decade (Guha 2011a: 2). Diaspora philanthropy is also In short, to fully unravel the intricacies of the multiple
recognised as an important form of migrant transfers potential connections between migration and development,
(Geithner et al 2004). we need to track transnational flows in all their complexity.
The current interest in migration and development has pro­ Before discussing how this might be done, in the following sec­
duced a large amount of literature detailing the types, vol­ tion we provide a brief account of what we currently know
umes, channels, destinations, and impact of remittances and about flows of migrant resources to India.
other kinds of resource transfers. Most of these studies aim to
determine whether and how resources sent by migrants to The Indian Scenario
their home countries contribute (or not) to development. How­ Since the 1970s, the Indian government has formulated a
ever, this work suffers from several theoretical and methodo­ range of policies and programmes to encourage Non-Resident
logical problems. First, it is practically impossible to assess Indians ( n r i s ) 2 to invest in India. After 2002, when the High
comprehensively the impact of migration on development Level Committee on the Indian Diaspora released its report
either by measuring the net losses and gains of migration or by (Government of India 2002), India’s engagement with Over­
modelling the macroeconomic effects of remittances (Guha seas Indians (01s) broadened. 01s came to be viewed as an im­
2011a, 2011b). The inadequacy of official data is compounded portant source not only of foreign exchange and investment
by the large proportion of remittances that flow through infor­ capital but also of knowledge, expertise and skills. While
mal channels. Further, most studies remain straitjacketed by many Indian diasporic communities across the world have
conventional notions of both migration and development and maintained connections with their home regions for a long
simplistic models of their interconnections (De Haas 2010). time (such as by sending remittances to their families at home
Second, migration research often views mobility as a one-way or donations to local temples or schools), the creation of insti­
process that mechanically connects migrant sending and tutional, legal and financial frameworks to facilitate their in­
migrant receiving countries (Raghuram 2009), while studies volvement with India has both stimulated and reshaped these
of remittances too concentrate on unidirectional flows of connections. In addition to national-level policymaking, sev­
resources. Moreover, remittance research is often carried out eral state governments (such as Gujarat, Andhra Pradesh, and
in isolation from migration studies, as if these two kinds of Punjab) and even district bodies have forged direct relation­
flows (of people and resources) were not interlinked processes. ships with their own regional or state diasporas by setting up
Third, the migration and development literature often con­ n r i cells to channel donations and investments, organising

structs migrants primarily as economic actors, focusing nar­ local “Pravasi Bharatiya Divas” (Non-Resident Indian Day)
rowly on financial transactions to the neglect of other dimen­ events and the like.
sions such as intangible flows of knowledge, ideas, and know­ In this section we summarise the available information on
how, i e, “social remittances” (Levitt 1998). Similarly, much three main types of material migrant transfers to India -
more attention has been paid to the economic effects of remit­ (a) household remittances and n r i deposits (individual-level
tances than to their potential sociocultural, ideological and transfers); (b) collective remittances (diaspora philanthropy);
political reverberations (Levitt 2008). The dominant view of and (c) direct investments - and on intangible resource flows.
migration and remittances as economic processes with prima­ The discussion on migration and development in India has
rily economic outcomes fails to take into account the cultural focused mainly on two issues - “brain drain” (Khadria 1999)
meanings, political motivations, or social implications of and the macroeconomic impact of remittances (Nayyar 1994)
resource transfers. - but the effects of migration and reverse flows in India are
Finally, there is the problem of scale. Despite a growing much more varied and complex than this literature suggests.
recognition that transnational networks connect migrants However, as detailed below, available data sources do not
Economic & Political w e e k l y Q 359 m ay 12, 2012 vol x l v ii n o 19 55

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:08 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

clearly map these various kinds of flows nor their ultimate religious institutions, to support for non-governmental
destinations or uses. organisations ( n g o s ) or charities or individual initiatives.
According to one estimate, donations to religious organisa­
Remittances tions and charitable institutions from n r i s amounted to
By 2001 India was already regarded as the largest recipient of $5,472 million between 1995 and 2002 (Kapur et al 2004:
overseas remittances in the developing world (World Bank 183). However, there are no reliable figures on the extent or
2003), and the country continues to hold first rank. Remit­ ultimate destinations and uses of n r i philanthropy, in part
tances rose dramatically from the 1990s due to several policy because a large proportion of such funds enter India through
changes and incentive schemes (Kapur 2010: 112-13). World informal channels (Guha 2011a: 15).
Bank figures put total remittance receipts in India at $55 bil­ n r i donations come through a range of routes - via remit­

lion in 2010.3 There are two main channels of household-level tances to family members who then donate to local temples or
remittances - direct transfers to families at home through of­ development projects, direct gifts by visiting migrants, or
ficial banking channels or other money transfer organisations, through registered trusts or foundations. Kapur et al (2004:
and local withdrawals from n r i accounts.4 According to 195) found that the two most important channels for Indian
Reserve Bank of India ( r b i ) data, the largest proportion of diaspora funds were informal family or personal networks and
remittance receipts in 2008-09 consisted of family-level faith-based (religious) organisations, followed by inter­
remittance transfers at $14,288 million, followed by local national, n r i and national n g o s . In addition, there are numer­
redemptions from n r i accounts ($11,217 million), and “personal ous private initiatives promoted by wealthy n r i s who build
gifts and donations” at $1,525 million. Total “private transfers” schools or temples in their home villages - a form of philan­
in that year amounted to $46,903 million (Guha 2011a). thropy that usually escapes official statistics. Furthermore,
In addition to national-level data, we have several state- family remittances may be used for philanthropic purposes by
level studies such as the periodic Kerala Migration Surveys the recipients - a channel that is also not captured in existing
(Zachariah et al 2002). Kerala is the most studied state in India data sources.
with regard to the impact of outmigration and remittances, yet This review suggests that only through micro-level studies
existing analyses do not provide a clear picture even in this may we begin to get a better sense of the entire range of
case. Several scholars suggest that remittances underpinned migrant resources that flow into different regions and locales
the “Kerala model” of development (Zachariah et al 2001a, in India, including the local perceptions and effects of these
2001b), but others argue in contrast that remittances have cre­ flows. For example, several studies indicate that migrant
ated a consumer-driven economy marked by stark imbalances, philanthropy in the home village may create divisions and
decline in agricultural production, stagnant industrial devel­ conflicts between migrant and non-migrant households rather
opment, and continuing high unemployment (Kannan 2005). than enhancing overall welfare. The local people who are the
Moreover, micro- and macro-level studies of remittances supposed beneficiaries of migrant-funded development projects
often produce contradictory findings. The high level of remit­ may perceive these activities cynically - as migrants’ invest­
tances to states such as Kerala and Punjab appears to contrib­ ments in their own social status or as an attempt to make their
ute to economic growth, increased consumption levels or en­ stay more comfortable when they come for their annual visits
hanced social welfare at the macro-level (Banerjee et al 2002), (Dekkers and Rutten 2011:13-16).
yet micro-level studies suggest that remittances may also have
negative effects, such as by sharpening social or economic Direct Investments
divisions in the migrant sending communities (Taylor et al 2007) In addition to private savings schemes, various incentives to
or by undermining local economic autonomy (Gardner 2008). attract business investments from n r i s have been floated by
Village studies confirm that migrants often display their new­ the central and state governments, especially since 2005, for
found wealth by purchasing land or constructing opulent instance by setting up special economic zones ( s e z s ) exclu­
houses in their home villages - providing evidence for the pes­ sively for n r i s . However, r b i statistics do not reveal what pro­
simistic view that migrant resources are largely “wasted” on portion of foreign direct investment ( f d i ) in India comes from
unproductive forms of consumption expenditure rather than n r i s or ois, either as individual investors or through compa­
being invested in “productive” activities (De Haas 2007:16-17). nies, nor do we have aggregate statistics on purchase of land,
Such uses of migrant remittances may also inflate local land real estate, and other such investments by n r i s . Kapur (2010:
prices or exacerbate polarisation of landownership (Gardner 105) notes that n r i f d i flowing into India between 1991 and
1995)- These conflicting conclusions suggest that many more 2004 was just 7% of the total, at $2.8 billion. Data from a
local, regional, and state-level studies are required in order to survey of Indian origin households in the us suggest that the
understand the effects of migrant resource transfers. majority of n r i investments were “passive”, going into real
estate (33%) or bank accounts (28%) rather than business or
Diaspora Philanthropy other investments (ibid: 93-94). This finding is significant
Diaspora philanthropy is an increasingly significant modal­ because it confirms what is suggested by anecdotal informa­
ity of migrant resources flowing into India. This category tion - that land (including agricultural land) and real estate
encompasses a wide range of activities, from donations to are major destinations of n r i money flowing into India.
56 m ay 1 2 , 201 2 VOL x l v i i n o 19 I M Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:08 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE
Social Remittances be more significant in decisions by n r i s to remit, invest or
Much attention has been paid to material resource transfers, donate to India, rather than only financial considerations
but intangible flows emanating from the Indian diaspora, such (Walton-Roberts 2004). Conversely, studies of transnational
as transfers of knowledge, ideas and know-how, professional political or religious movements or other kinds of “social
and scientific collaborations, and dissemination of political or remittances” often treat them as entirely separate from eco­
religious ideologies, arguably exert more influence on India’s nomic flows, even though mobilising funds is usually a key
development trajectory. While the Government of India has activity. Transnational flows are not only interpellated by
been interested in tapping n r i s for their social and cultural local, national and transnational socio-economic structures
capital in addition to their economic resources, many n r i s in and processes, but may have profound (and often unintended)
turn are deeply engaged in political advocacy and social move­ political and cultural consequences. For instance, funding for
ments in India (Bose 2008). Religious transnationalism is an development activities is often accompanied by new models
example of intangible flows (van der Veer 2002) - religious and practices of development or ideas of the “good society”,
organisations are especially prominent destinations for n r i which may reshape existing development paradigms or pro­
donations, with mixed and controversial results, n r i contribu­ grammes in the recipient country.
tions to the construction of temples or to right-wing religious/ Second, what are treated as different types of transfers
cultural organisations reportedly have been instrumental in (family remittances, capital investment and donations) are
sharpening intercommunity conflicts in India (Rajagopal often closely entangled with one another. In coastal Andhra,
1997). However, transnational connections forged by political for instance, diaspora philanthropy is but one strand in a
or religious movements do not necessarily result in increased multiplicity of flows, including business investments that ema­
radicalisation, as is often assumed, but may have more com­ nate from affluent Non-Resident Telugus ( n r t s ) . For example,
plex outcomes such as a trend towards “moderation” or sup­ the mushrooming of super-speciality private hospitals in the
port for religious or social reforms (Ahmad 2005; Osella and region has been linked to n r t investments, even as n r t doc­
Osella 2008). tors are promoting charitable activities in the health sector.
Unravelling the intertwined paths and ultimate destina­
NRI Connections w ith India tions of resources travelling through transnational networks is
This selective review of literature on the south Asian region made all the more difficult because the channels and utilisa­
shows that remittances, investments, and philanthropy by tion of migrant transfers may diverge. In central Gujarat,
Indians living abroad constitute a substantial (and highly une­ money deposited in n r i bank accounts (which would be
ven) inflow of financial resources to India, yet the quality of counted in official statistics as investments or remittances)
data on these cross-border flows is inadequate. What kinds of may be withdrawn by local relatives to donate to religious or
networks link different towns and regions with migrants charitable organisations. Rather than slotting such transac­
abroad, what resources flow through them, and what are their tions into separate categories of “remittances” or “philan­
key destinations and uses? What role do local actors play in thropy”, it is more useful to try to retain these complexities in
attracting, directing, and utilising migrant remittances or tracking transnational flows.
philanthropy? How have state institutions, at different levels, Third, neither migration nor remittances are simple uni­
responded to migrant activities and investments within India? directional processes - exchange of resources between migrants
To answer such questions we need a more nuanced approach and their families or communities at home are usually multi­
to mapping and analysing transnational flows and their conse­ directional, while mobility too is increasingly circular or
quences for “development” in the recipient regions. multipolar. People, money, things and ideas move in various
directions and along multiple paths as interconnected flows
Nuancing Transnational Flows through more or less structured networks or institutional
In this section we argue that remittances, philanthropic dona­ arrangements. For example, the migration process is often
tions, and other kinds of reverse flows are multifaceted, multi­ supported by the migrant’s family, and remittances may be
directional, and multi-nodal, and so cannot be easily reduced regarded as repayment of such debts (Dekkers and Rutten
to one-way, singular transactions or movements as they are 2011: 3). Yet the large investments that are made by potential
usually represented in the development-oriented literature. migrants and their families in the migration process itself - in
First, as noted above, much of the migration and develop­ education, attaining certifications, visa fees, travel costs, and
ment literature ignores crucial social, cultural, political, or support for migrant children while they get established abroad
ideological dimensions of migrant resource flows, analysing - are often ignored. Moreover, for some migrants such invest­
them in isolation from the larger context within which both ment ultimately does not pay off (Rajan et al 2011). Investment
mobility and resource transfers take place. Yet such flows are in higher education is a particularly crucial strategy that
in reality multidimensional in character - they are not simply underwrites high-skilled circular mobility and illustrates the
economic transactions but are deeply embedded in social net­ high level of investments that are made in migration. Student
works and transmitted through a range of social mechanisms, migration, in turn, has become a key channel of mobility from
such as kinship and caste networks, to diverse recipient sites. India, with mixed consequences for these first generation
For example, non-economic (especially political) factors may migrants. The growing “transnational educational regime”
Economic & Political WEEKLY i ™ MAY 1 2 , 2 0 1 2 VOL XLVII NO 19 57

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :01:08 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

may have negative implications for social development in the and Lamba-Nieves (2011) point out, what comes back is influ­
home regions, by widening local inequalities or reshaping the enced by migrants’ prior experiences and the ideas and prac­
educational priorities and career choices of local youth tices that they take with them. By treating different kinds of
(Harriss and Osella 2010:141). mobilities - of people and resources - to and from (and within)
Fourth, transnational connections and exchanges may get a region as disconnected and discrete processes, we curtail the
reproduced (and also altered) across several generations. A possibility of producing more in-depth and fine-grained analy­
case in point are the Patels of central Gujarat, who first ses of these flows.
migrated to East Africa in the late 19th and early 20th centu­
ries, and from the early 1970s to the u k , u s , and other western M apping Transnational Flows
countries. Many of these migrants have maintained ties with Only by reinserting migrant resource flows back into the trans­
their home villages and continue to send back various kinds of national social fields through which they travel (and of which
remittances and resources, but the nature of these ties and they are constitutive) can we begin to understand the signifi­
resource flows have changed over time. While most remit­ cance of reverse flows and their effects in the recipient regions
tances from East Africa migrants were used for household and communities. In this section we review key concepts that
consumption, to make improvements to the ancestral house, have developed around the idea of transnationalism and dis­
and as investments in agriculture through the boring of tube cuss their theoretical potential. We also draw on anthro­
wells and purchase of land, the more recent flows are invested pological literature on south Asia that provides additional
primarily in bank accounts and real estate (non-agricultural insights into migration, transnational connections, and their
land and housing property) or for philanthropy, especially in consequences for migrants and their home regions.
the education and health sectors (Dekkers and Rutten 2011; The idea of transnationalism came into prominence in the
Rutten and Patel 2002). Strategies of mobility unfold over early 1990s (Glick Schiller, Basch and Blanc-Szanton 1992)
time, which means that a longitudinal approach would better and caught the attention of many social science scholars, lead­
capture the multidirectional and multidimensional character ing to the development of the interdisciplinary field of transna­
of these flows. tional studies. The concept has been refined and employed in
The circulation of migrants themselves, who return to their various ways, such as in the concepts of transnational commu­
homes periodically or permanently, is an important aspect of nity, transnational social space, and transnational network.
multidirectionality that may significantly impinge on social Faist defines “transnational social field” as “...combinations of
and cultural configurations in their home villages or towns social and symbolic ties and their contents, positions in net­
(Ramji 2006). A growing number of highly educated n r i s are works and organisations, and networks of organisations that
returning to India to work, start businesses, or to retire, bring­ cut across the borders of at least two national states” (2010:
ing with them accumulated knowledge, capital and other 1673). Transnationalism is not a territorially grounded concept
resources as well as intangible resources such as political ideas but an “...optic or gaze that begins with a world without bor­
or know-how. Returned n r i s , or “ r n r i s ”, who often come back ders, empirically examines the boundaries and borders that
to settle not in their native towns or villages but in India’s emerge at particular historical moments, and explores their
“hi-tech” cities such as Hyderabad or Bangalore, bring with relationship to unbounded arenas and processes” (Levitt and
them new aspirations, ideals, and ideologies that are condi­ Khagram 2007: 5). Although the maintenance of social ties
tioned by their experiences abroad (Chacko 2007). The earlier between migrant groups and their home countries is a much
dominant one-way flow of highly skilled labour from develop­ older phenomenon, it is argued that transnational connections
ing to high-income countries is being replaced by more com­ have only recently acquired the “critical mass and complexity
plex circular and multipolar movements of skills, capital, and necessary to speak of an emergent social field” (Portes et al
technology between specialised regional economies. For 1999: 217). This literature also suggests that systemic or struc­
example, wealthy Indian-origin information technology ( i t ) tural shifts are occurring in places that have significant
entrepreneurs in Silicon Valley have invested significantly in patterns of outmigration, or that transnationalism may at least
the i t sector in India (Upadhya 2004), while Indian i t profes­ deepen or broaden ongoing processes of transformation in the
sionals circulate through various sites in the global informa­ home region (Vertovec 2004). The transnational framework
tional economy. Another example of multidirectionality is the has the advantage of taking into account both sides of these
children of n r i s coming back to India for schooling, who stay connections and flows (migrants and those at home), by map­
with grandparents or are enrolled in elite international board­ ping the networks and channels through which people and re­
ing schools that promise to provide not only a good education sources move.
but also a grounding in Indian culture. In other cases, grand­ The anthropological literature has contributed additional
parents move in the other direction, travelling to the uk or us insights into how transnational social fields are formed and
to take care of grandchildren to enable both n r i parents to maintained. A number of studies point to the centrality of
pursue their careers (Lamb 2002). marriage practices in people’s migration strategies and the
Finally, the forms, destinations and uses of transnational reproduction of transnational networks (Charsley and Shaw
flows are shaped by the kinds of migrant and transnational 2006). Similarly, migration and reverse flows often move
organisations or networks through which they move. As Levitt through caste or kinship ties, altering or reinforcing them and
58 M AY 12, 2012 V O L X L V II N O 19 Q3 Q Economic & Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:08 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE
extending these relations across space (Velayutham and Wise literature on transnationalism in India has largely ignored
2005), and often creating transnational networks of caring the intermediate level of the region - a socio-economic or
and support (Gardner 2006). Geographical mobility should cultural formation below the level of the nation state and
also be understood as part of interlinked strategies of social also smaller than most Indian states, but usually larger than
mobility, which may include transnational marriages, pursuit the district.
of foreign educational certifications, or visible acts of philan­ The region is not a readily definable geographical unit - it is
thropy. Such mobility strategies may have unintended conse­ usually not coterminous with a political entity, and may have a
quences for local societies, as when remittance flows create primarily agroeconomic, cultural, linguistic or political iden­
inequalities between migrant and non-migrant households tity but with inchoate or shifting boundaries. Yet across much
or introduce consumption-oriented lifestyles that others seek of India, regions are recognised as salient socio-spatial catego­
to emulate. An emergent “culture of migration” (Ali 2007) ries, characterised by distinct histories, languages, or cultural
may foster new aspirations among village youth, contribute configurations.5Regions have their own dynamics that cannot
to the reinforcement or reconstitution of cultural, religious be captured by micro-level studies and that are often glossed
or community identities, or introduce new imaginaries of over in state- and national-level analyses. We suggest that the
progress and modernity (Gardner and Osella 2003; Osella and region is the most appropriate scale for mapping patterns of
Osella 2006). mobility and reverse flows, not only because of India’s great
From an anthropological perspective, transnational connec­ regional-diversity but because transnational flows are shaped
tions, like all social relationships, are created and sustained in and inflected by the specific histories, social structures and
part through the exchange of gifts, flows of commodities and political-economic formations of the migrant sending regions.
other material transactions (Werbner 1990). By abstracting Focusing on the region will therefore produce a more grounded
particular transactions (such as remittances) out of their social understanding of the interconnections between the diverse
contexts, development-oriented studies often refuse to recog­ places, people, and scales that constitute the transnational
nise the thick cultural substratum of various forms of recipro­ social fields through which remittances, diaspora philan­
city or the centrality of accumulation to mobility strategies. thropy, and n r i investments move. In addition, a series of
Remittances are never just individual transactions aimed at regional-level studies will allow for comparison of reverse
sustaining households but are motivated and structured by flows across regions, perhaps revealing significant correspond­
social relations of kinship, family, or caste, by cultural identi­ ences between types of migration or diasporic networks and
ties based on religion or language, or by political imaginaries the kinds of resources that come back.
of national or sub-national homelands. Flows of money, gifts, The proposed methodology would also map the institu­
commodities, ideas, and people through transnational social tional structures, networks, and key nodal points through
fields are not just economic processes but are loaded with which resources move or which direct, facilitate, and motivate
cultural meanings. Viewing specific resource flows in their these flows. Processes of transnationalisation may transform
social and cultural contexts provides a deeper understanding social institutions (for example, of citizenship, education, or
of their larger significance and local effects. kinship), and these institutional changes, in turn, influence
Drawing on these insights, in the final section we sketch out processes of transnationalisation (Faist et al 2010: 8-10). With
an analytical framework for tracking resource transfers from the strengthening of transnational ties, older institutions may
migrants to their home regions in order to better understand acquire new meanings or functions, or new institutions may
their consequences. The complex nature of transnational emerge at various levels - local or regional (such as schools or
social spaces demands a more nuanced approach that not only welfare organisations funded by migrants), national (changes
captures their multidimensional nature but also the various in citizenship rules), and transnational (migrant associations).
scales at which transnational networks are formed - especially A growing literature is documenting the diverse associations,
the regional scale. voluntary organisations and social networks that channel
collective migrant resources, such as “home town associations”
Transnationalism a t a Regional Scale (Caglar 2006). Thus, one research strategy for studying the
Although the idea of transnationalism has stimulated an out­ regional effects of cross-border flows is to map the institu­
pouring of research and rethinking on international migration tional structures through which they move, and the ways in
and its implications, this literature has tended to reproduce which institutions have been transformed by such flows.
the problem of methodological nationalism. In India too, most To illustrate the usefulness of a “transnational optic” with a
studies of migration and development remain at the level of focus on the region and mediating structures and connections,
the country or state, glossing over significant regional varia­ we take the example of diaspora philanthropy. A large number
tions in patterns of migration and in the volume, kinds, and of diasporic and transnational organisations and individual
destinations of remittances and other reverse flows. Trans­ n r i s are engaged in philanthropic activities in India, including

national social fields are shaped by institutional actors, power formally constituted associations as well as informal net­
dynamics and policies at, below, and above the level of the works. Such organisations or networks may be very broad-
nation state - hence the study of transnational ties and flows based or narrow in their membership, but most are con­
must be multi-scalar in approach (Caglar 2004). Yet the structed on the basis of regional, linguistic, religious, or caste
Economic & Political w e e k ly ODES m ay 12, 2012 v o l x lv ii n o 19 59

This content downloaded from 192 .190 .180.53 on Wed, 07 Nov 2018 00 :01:08 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE = ^
identities (Rutten 2008), and in most cases their activities are Association (a t a ) . 6 A number of foundations and trusts headed
directed to their home towns or regions. Many diasporic by n r i s or with n r i funding are working in coastal Andhra,
organisations mobilise donations to support development especially in the health and education sectors (Heerink 2011).
projects in areas such as education, health and rural develop­ Highly educated n r t s tend to support initiatives linked to their
ment, while local n g o s and charitable foundations in turn may professions, such as setting up private medical or engineer­
solicit n r i donations to support their activities, n r i philan­ ing colleges (which maybe for-profit as well as charitable insti­
thropic activities may emanate from existing organisations or tutions), while religious donations appear to be less signifi­
create new ones; link new institutional structures to existing cant in Andhra compared to the Doaba region of Punjab or
local organisations in India; or promote the establishment of central Gujarat.
new kinds of n g o s or social movements in the target areas. These examples illustrate the variability of the phenomena
The social composition of such associations presumably influ­ that are usually lumped together in a single category of
ences the kinds of developmental or social welfare initiatives “diaspora philanthropy”. Even within a single region we find a
that they sponsor in India. However, we have few case studies complex congeries of transnational flows, characterised by
of the activities of NRi-sponsored n g o s or development initia­ different sources, channels, and destinations, which can only
tives. Below we provide a brief comparative sketch of three loosely be grouped together as similar phenomena. In order to
regional diasporas and their philanthropic activities - Patels explain these patterns and variations, we need to track such
from central Gujarat, migrants from the Doaba region of flows at the regional level and then compare spatial and scalar
Punjab, and Telugu n r i s from coastal Andhra in the us. differences in their nature and destinations. We also need to
Patels from central Gujarat constitute a large and powerful contextualise them within transnational social fields that have
diaspora with a long tradition of supporting developmental been shaped by the histories and social formations of the home
schemes in their home villages, particularly for education and regions. For example, the distinct migration patterns of the
health. The Gujarat state government has actively courted n r i dominant landowning communities of coastal Andhra and
investments through concessional schemes and events such as central Gujarat, which are linked to the agrarian structures
the biannual Vibrant Gujarat summit. Yet it appears that the and social histories of these regions, may explain their diver­
majority of donations in this region are not channelled through gent modes of transnational giving and engagement with the
state institutions or formal organisations but primarily home villages. The landowning castes of Andhra transnation-
through informal village, caste or religious organisations or alised themselves through higher education, especially in
networks. Many Patel n r i s provide donations directly when engineering and medicine, followed by migration to North
they visit their native villages or transmit them through their America, creating a regional diaspora of highly educated,
resident relatives. This avoidance of formal channels may be professional n r t s . This regional diaspora usually supports
due in part to their distrust of government bureaucracy (Rut- health, education, or rural development initiatives and tends
ten and Patel 2007) or to the ideological role of Hindutva and to channel funds through formal channels such as n g o s , gov­
religious sentiments that influence many overseas Patels to ernment schemes or registered trusts. In contrast, Patel
donate to temples and religious organisations (Dekkers and migrants have established themselves abroad - in Africa, the
Rutten 2011: 16-18). A similar pattern is seen in the Doaba u k , and the us - mainly as small businessmen and traders. For

region of Punjab, with its long history of transnationalisation them, maintaining strong links of caste and kinship with their
and close involvement of diasporic groups with their home re­ native villages through direct donations can be seen as a key
gions (Tatla and Dusenbery 2010). Philanthropic remittances strategy of both social mobility and security. The socio­
have grown in importance over the last two decades, but while economic characteristics and historical formation of these
earlier generations of migrants often sent donations to estab­ regional diaspora thus help to explain these divergent patterns
lish large memorial gates in their home villages and towns in of giving.
memory of their ancestors, currently such resources are
directed more to supporting development activities or gurud- Conclusions
waras (Rajan and Varghese 2010:104). Flows of migrant resources, both tangible and intangible, to
The pattern of diaspora philanthropy in coastal Andhra is developing countries are believed to influence processes of
quite different from that seen in central Gujarat or the Doaba. economic and social development. Such resources enter the
us-based n r t s frequently raise money and organise develop­ home villages and towns of migrants through transnational
mental activities in the home region, especially for rural areas, social fields, with diverse implications for local economies,
and these resources are usually channelled through registered social structures, politics, and cultural orientations. The
trusts or public-private schemes. The Andhra Pradesh state nature and effects of reverse flows are highly variable and
government has set up a state-level department of n r i affairs, complex and depend on a range of factors, including the his­
and there are n r i cells at the district level as well which chan­ torical and social specificities of the migrant sending regions;
nel resources donated by n r t s . Much of the philanthropic the types and pattern of mobility from the region; and the
activity in the region is spearheaded by strong diasporic asso­ institutional structures that shape and direct such flows. In
ciations based in the us, such as the Foundation of the Telugu order to go beyond current discussions on remittances, diaspora
Association of North America (t a n a ) and the American Telugu philanthropy and migrant investments, an ethnographically
60 m ay 12, 2012 vol x l v ii n o 19 DSS9 Economic & Political w e e k l y

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :01:08 UTC
A ll use subject to https://about.jstor.org/terms
SPECIAL ARTICLE
thicker and theoretically more sophisticated account of research problem is centred on mapping regional transna­
transnational connections and flows is needed, in particular tional social fields and the organisational structures and net­
by paying more attention to the historical and sociological spe­ works that facilitate and direct reverse flows. This approach
cificities of different regions and their transnational social will allow us to better delineate and understand the implica­
fields. We suggest that the regional scale is best suited for tions of mobilities and transnational flows and to compare
understanding and contextualising reverse flows to India, these processes across regions, which in turn will generate a
while keeping in view the multi-scalar nature of transnational more nuanced and comprehensive understanding of the mi­
social spaces. Our proposed methodological approach to this gration and development nexus in India.

n o t e s ____________________________________ Living Standards? A Micro Level Investi­ Sylhet”, Journal of the Royal Anthropological
gation”, Economic & Political Weekly, 37(18): Institute (NS), 14(3): 477-95-
1 We use the term “reverse flows” to refer to the
1755-65. Gardner, Katy and Fillippo Osella (2003): “Migra­
entire gamut of remittances, investments, and
Bose, Pablo Shiladitya (2008): “Home and Away: tion, Modernity and Social Transformation in
other resources - tangible and intangible - that
Diasporas, Developments and Displacements South Asia: An Overview” in F Osella and
are sent by migrants or diasporic communities
in a Globalising World”, Journal oflntercultural K Gardner (ed.). Special Issue: Migration,
to their families or communities in India - also
including return flows of migrants themselves. Studies, 29(1): 111-31. Modernity and Social Transformation in South
However, we are aware that the term has a dif­ Caglar, Ayse S (2004): “‘Citizenship Light’: Tran­ Asia, Contributions to Indian Sociology (NS), 37
ferent meaning in macroeconomics, referring snational Ties, Multiple Rules of Membership, (1 & 2): V-XXVIII.
to remittances that are used not for consump­ and the ‘Pink Card’” in J Friedman and S Rand- Geithner, Peter F, Paula D Johnson and Lincoln C
tion or investment but for debt amortisation, eria (ed.), Worlds on the Move: Globalisation, Chen, ed. (2004): Diaspora Philanthropy and
reserve accumulation, or capital flight (Das Migration, and Cultural Security (London: LB Equitable Development in China and India
and Serieux 2010). Thanks to Jafar K for point­ Tauris & Co), 273-91. (Cambridge: Global Equity Initiative and
ing this out. - (2006): “Hometown Associations: The Rescal­ Harvard University Press).
2 In this paper the term “NRI” (Non-Resident In­ ing of State Spatiality and Migrant Grassroots Glick Schiller, N, L Basch and C Blanc-Szanton
dian) is used generically and interchangeably Transnationalism”, Global Networks, 6(1): 1-22. (1992): “Transnationalism: A New Analytic
with the currently official term “Overseas Indi­ Chacko, Elizabeth (2007): “From Brain Drain to Framework for Understanding Migration” in
ans” (01), in consonance with its popular us­ Brain Gain: Reverse Migration to Bangalore N Glick Schiller, L Basch and C Blanc-Szanton
age. 01 in government parlance is a very broad and Hyderabad, India’s Globalising High Tech (ed.), Towards a Transnational Perspective on
category encompassing many types and gener­ Cities”, GeoJournal, 68(2&3): 131-40. Migration; Race, Class, Ethnicity, and National­
ations of people of Indian origin around the Charsley, Katharine and Alison Shaw (2006): ism Reconsidered, Annals of the New York Acad­
world. NRIs is an order category with linked “South Asian Transnational Marriages in Com­ emy of Sciences, 645:1-24.
financial policies, which includes Indian citi­ parative Perspective”, Global Networks, 6(4): Government of India (GOI), Ministry of External
zens residing abroad as well as certain cate­ 331-44 . Affairs, Non-Resident Indians and Persons of
gories of non-citizens of Indian origin. The Das, Anupam and John Serieux (2010): “Remit­ Indian Origin Division (2002): “Report of High
Person of Indian Origin (PIO) and Overseas tances and Reverse Flows in Developing Coun­ Level Committee on Indian Diaspora”, avail­
Citizen of India (OCI) cards are like long-term tries”, The IDEAs Working Paper Series, Paper able at: http://indiandiaspora.nic.in/.
visas, available only to non-citizens (Indian No 2. Guha, Puja (2011a): “Measuring International Re­
origin people who have taken up foreign De Haas, Hein (2007): “Remittances, Migration mittances in India: Concepts and Empirics”,
citizenship). and Social Development: A Conceptual Review Provincial Globalisation Working Paper No 1
3 World Bank Migration and Remittances of the Literature”, United Nations Research In­ (Bangalore: NIAS and AISSR), available at
Factbook 2011, viewed on 8 October 2011 (http: stitute for Social Development (Geneva), Social www.provglo.org.
//econ.worldbank.org/WBSite/External/EXT- Policy and Development Programme, Paper - (2011b): “Economics of Migration and Remit­
DEC/EXTDECPROSPECTS/o„contentMDK*.2i3 No 34 (http://www.unrisd.org). tances: A Review Article”, Provincial Globalisa­
520i6~pagePK:64i6540i~piPK:64i65026~th - (2010): “Migration and Development: A Theo­ tion Working Paper No 3 (Bangalore: NIAS and
eSitePK:476883,oo.html). retical Perspective”, International Migration AISSR), available atwww.provglo.org.
4 Several of the government’s NRI savings Review, 44(1): 227-64. Harriss, Kaveri and Filippo Osella (2010): “Educational
schemes provide limited withdrawal rights to Dekkers, Natascha and Mario Rutten (2011): “Di­ ‘Transnationalism’ and the Global Production
family members. aspora Philanthropy from a Homeland Per­ of Educational Regimes” in T Faist et al (ed.),
5 For example, in Andhra Pradesh the three regions spective: Reciprocity and Contestation over Transnationalisation and Institutional TYans-
of coastal Andhra, Telangana and Rayalaseema Donations in Central Gujarat, India”, Provin­ formations (Collected Working Papers from the
do not (yet) have official political boundaries, but cial Globalisation Working Paper No 2 (Banga­ TRANS-NET Project), COMCAD Arbeitspapiere
they are recognised as distinct socio-economic lore: NIAS and AISSR). - Working Paper No 87, Chapter 7, pp 140-63.
and cultural formations flowing from their di­ Faist, Thomas (2008): “Migrants as Transnational Heerink, Maudi (2011): “Connecting India: Virtual
verse histories. In this paper we do not have Development Agents: An Inquiry into the New­ and Real Linkages between the Telugu Diaspora
space expand on the question of the region, ex­ est Round of the Migration-Development Nex­ and Their Home Region in Andhra Pradesh”,
cept to note that it is not merely a spatial or sca­ us”, Population, Space and Place, 14(1): 21-42. Provincal Globalisation Research Report,
lar concept. Conceptual and methodological Faist, Thomas (2010): “Towards Transnational Stud­ availableatwww.provglo.org.
issues of region and scale will be clarified in a ies: World Theories, Transnationalisation and Kannan, KP (2005): “Kerala’s Tlirnaround in Growth:
forthcoming paper. Changing Institutions”, Journal of Ethnic and Role of Social Development, Remittances, and
6 TANA website, viewed on 8 December 2011 Migration Studies, 36(10): 1665-87. Reform”, Economic & Political Weekly, 40(6):
(http://www.tana.org/7docid =29); ATA web­ Faist, Thomas, Pirkko Pitkanen, Jurgen Gerdes and 548-54 .
site, viewed on 8 December 2011 (http://www. Eveline Reisenauer, ed. (2010): Transnationali­ Kapur, Devesh (2004): “Remittances: The New
ataworld.org/index.cfm 7select = projects & sation and Institutional Transformations. Col­ Development Mantra?”, G-24 Discussion Paper
project_type=charitable%2oprojects). lected Working Papers from the TRANS-NET Series No 29, United Nations Conference on
Project, COMCAD Arbeitspapiere - Working Trade and Development (New York: United Na­
Paper No 87, available at: http://www.uni- tions), available at http://media.sas.upenn.
REFERENCES______________________________ bielefeld.de/tdrc/ag_comcad/downloads/ edu/casi/docs/about/Remittances.pdf.
Ahmad, Irfan (2005): “Between Moderation and workingpaper_87_TRANS-NET.pdf. - (2010): Diaspora, Development, and Democracy:
Radicalisation: Transnational Interactions of Gardner, Katy (1995): Global Migrants, Local Lives: The Domestic Impact of International Migration
Jamaat-e-Islami of India”, Global Networks, Travel and Transformation in Rural Bangladesh from India (New Delhi: Oxford University Press).
5(3): 279-99 . (Oxford: Oxford University Press). Kapur, Devesh, Ajay S Mehta and R Moon Dutt
Ali, Syed Faiz (2007): ‘“Go West Young Man’: The - (2006): “The Transnational Work of Kinship (2004): “Indian Diaspora Philanthropy” in
Culture of Migration among Muslims in and Caring: Bengali-British Marriages in His­ Peter F Geithner, Paula D Johnson and Lincoln
Hyderabad”, Journal of Ethnic and Migration torical Perspective”, Global Networks, 6(4): C Chen (ed.), Diaspora Philanthropy and Equi­
Studies, 33(1): 37-58 . 373-87. table Development in China and India (Cam­
Banerjee, Sushanta K, V Jayachandran and TK Roy - (2008): “Keeping Connected: Security, Place, bridge: Global Equity Initiative and Harvard
(2002): “Has Emigration Influenced Kerala’s and Social Capital in a ‘Londoni’ Village in University Press), 177-213.

Economic & Political w e e k l y BBSI m ay 12, 2012 v o l x l v ii n o 19 6l

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :01:08 UTC
All use subject to https://about.jstor.org/terms
Khadria, Binod (1999): The M igration o f K now ledge Rajagopal, Arvind (1 9 9 7 ): “Transnational Net­ Eastern Punjabi Transnationalism” G lobal N et­
W orkers: S econd-G eneration Effects o f In d ia ’s works and Hindu Nationalism”, B u lletin o f Con­ w orks, 7(3): 328-47.
B rain D rain (New Delhi: Vistaar). cerned A sian Scholars, 29(3): 45-58. Upadhya, Carol (2004): “A New Transnational
Lamb, Sarah (2002): Intimacy in a Transnational Rajan, S Irudaya and V J Varghese (2010): “Broad­ Class? Capital Flows, Business Networks and
Era: The Remaking of Ageing among Indian ening Exchanges and Changing Institutions: Entrepreneurs in the Indian Software
Americans, D iaspora, 11(3): 299-330. Multiple Sites of Economic Transnationalism” Industry”, E conom ic & P olitical W eekly, 39(48):
Levitt, Peggy (1998): “Social Remittances: Migra­ in T Faist, et al (ed.), T ran sn ation alisation an d 5141 - 51 .
tion-Driven, Local-Level Forms of Cultural Dif­ In stitu tio n a l T ran sform ation s (Collected Work­ van der Veer, Peter (2002): “Transnational Reli­
fusion”, In tern ation al M igration Review, 32(4): ing Papers from the TRANS-NET Project), gion: Hindu and Muslim Movements”, G lobal
926-48. COMCAD Arbeitspapiere - Working Papers No N etw o rk s, 2(2): 95-109.
- (2008): “Taking Culture Seriously: Unexplored 87, Chapter 5, 93-113. Velayutham, Selvaraj and Amanda Wise (2005):
Aspects of the Migration-Development Nexus”, Rajan, S Irudaya, V J Varghese and M S Jayakumar “Moral Economies of a Translocal Village:
SSRC Migration and Development Conference (2011): D ream in g M o b ility an d B u yin g V ulnera­ Obligation and Shame among South Indian
Paper No 13 (New York: Social Science Re­ bility: O verseas R ecru itm en t Practices in India Transnational Migrants”, G lobal N etw o rk s 5(1):
search Council). (New Delhi: Routledge). 2 7 -47.
Levitt, Peggy and Sanjiv Khagram (2007): “Con­ Ramji, H (2006): “British Indians ‘Returning Vertovec, Steven (2004): “Migrant Transnation­
structing Transnational Studies” in S Khagram Home’: An Exploration of Transnational Belon­ alism and Modes of Transformation”, Inter­
and P Levitt (ed.), The Tran sn ation al S tu dies gings”, Sociology, 4 0 ( 4 ) : 645-62. n a tio n a l M ig ra tio n Review , 38(3): 970-1001.
R eader (New York and London: Routledge), Rutten, Mario (2008): “Caste and Religion in a
pp 1-18. Walton-Roberts, Margaret (2004): “Globalisation,
Transnational Context: The Patidars of Central National Autonomy and Non-Resident Indians”,
Levitt, Peggy and Deepak Lamba-Nieves (2011): Gujarat” in S Mahendra Dev and KS Babu (ed.), C o n tem p o ra ry S outh A sia , 13(1): 53-69.
“Social Remittances Revisited”, Jou rn al o f In dia’s D evelopm en t: Social an d Econom ic D is­
Ethnic a n d M igration S tu dies, 37(1): 1-22. p a r itie s (Delhi: Manohar/IDPAD), 347-64.
Werbner, Pnina (1990): The M ig ra tio n Process:
C apital, G ifts an d O fferings a m o n g B ritish
Nayyar, Deepak (1994): M igration , R em ittan ces Rutten, Mario and Pravin Patel (2002): “Twice P a k ista n is (Oxford: Berg).
an d C apital Flows: The Indian Experience (New Migrants and Linkages with Central Gujarat:
Delhi: Oxford University Press). Patidars in East Africa and Britain” in Ghan- Wimmer, Andreas and Nina Glick Schiller (2002):
Osella, Caroline and Filippo Osella (2006): “Once shyam Shah, Mario Rutten, and Hein “Methodological Nationalism and Beyond:
Upon a Time in the West? Stories of Migration Streefkerk (ed.), D evelopm en t an d D ep riva tio n Nation State Building, Migration and the Social
and Modernity from Kerala, South India”, Jou r­ in G ujarat: In H onour o f Jan B rem an (Delhi and
Sciences”, G lobal N etw o rk s, 2(4): 301-34.
nal o f the R oyal A n th ropological Institu te, 12(3): London: Sage Publications), 314-28. World Bank (2003): G lobal D evelopm en t Finance
569-88. Rutten, Mario and Pravin Patel (2007): “Contested (Washington, DC: World Bank).
Osella, Filippo and Caroline Osella (2008): “Islam- Family Relations and Government Policy: Zachariah, K C, E T Mathew, and S Irudaya Rajan
ism and Social Reform in Kerala, South India”, Links between Patel Migrants in Britain and (2001a): “Impact of Migration on Kerala’s
M odern A sian S tu d ies, 42(2/3): 317-46. India” in Gijsbert Oonk (ed.), G lobal Indian Economy and Society”, International M igration,
Portes, A, L E Guarnizo and P Landolt (1999): “The D iasporas: E xplorin g Trajectories o f M ig ra tio n 39(1): 63-88.
Study of Transnationalism: Pitfalls and Prom­ an d T h eory (Amsterdam: Amsterdam Univer­ - (2001b): “Social, Economic and Demographic
ise of an Emergent Research Field”, Ethnic an d sity Press), 167-93. Consequences of Migration on Kerala”, Inter­
R acial S tu d ies , 22(2): 217-37. Tatla, Darshan and Verne A Dusenbery, ed. (2010): n a tio n a l M ig ra tio n , 39(2): 43-71.
Raghuram, P (2009): “Which Migration, What Sikh D iaspora P h ila n th ro p y (New Delhi: Oxford - (2002): “Kerala’s Gulf Connection: CDS Studies
Development? Unsettling the Edifice of Migra­ University Press). on International Labour Migration from Kerala
tion Development”, Popu lation , Space an d Taylor, Steve, Manjit Singh and Deborah Booth State in India” (Thiruvananthapuram: Centre
Place, 15(2): 103-17. (2007): “Migration, Development and Inequality: for Development Studies).

Essays from the Economic and P olitical Weekly

Village Society
E d ite d B y SURINDER S JODHKA

The idea of the village has occupied an important place in the history of post-Independence India.This volume presents
a set of readings which primarily focus on the social, political and cultural aspects of village life.
A comprehensive introduction provides a detailed historical analysis of the study of rural India, the changes in rural
social life, and the forces shaping life in villages today.
The articles, drawn from writings in EPW over four decades, cover various features of village society: caste and community,
land and labour, migration, discrimination and use of common property resources. They include writings by some of
the pioneers of the study of the Indian village as well as by contemporary experts. This volume caters to a renewed
interest in village society born partly by the need to understand caste discrimination in post-liberalised India and
partly by the concern about contemporary agricultural stagnation and environmental degradation.

A u th o rs :
M N Srinivas • Andre Beteille • Surinder S Jodhka • G K Lieten • K L Sharma • Mukul Sharma • G K Karanth • Partap C Aggarwal • Jishnu Das • Roger
Jeffery, Patricia Jeffery and Andrew Lyon • Leela Gulati • Sudha Pai and Jagpal Singh • Anil Kumar Vaddiraju • Dipankar Gupta • John Harriss,
J Jeyaranjan and K Nagaraj • N S Jodha
Pp x + 252 ISBN 978-81-250-4603-5 2012 Rs 325 ~

Orient Blackswan Pvt Ltd


www.orientblackswan.com ___
Mumbai • Chennai • New Delhi • Kolkata • Bangalore • Bhubaneshwar • Ernakulam • Guwahati • Jaipur • Lucknow • Patna • Chandigarh * Hyderabad
Contact: info@orientblackswan.com

62 may 12, 2012 v o l x lv i i n o 19 BBSS Economic & Political w eekly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:08 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

Creating Employment in the Twelfth Five-Year Plan


SA NTOSH M EH R OTR A, ANKITA GANDHI, BIMAL K ISHORE SAH O O , PARTHA SAHA

This paper analyses employment trends and addresses 1 Introduction

the problem of creating decent and productive he structural transformation that any developing economy
employment in the non-agricultural sector during the
first decade of the 21st century. Its primary interest is to
examine the transition from informal employment in the
T should undergo is that the share of agriculture in output
and employment declines over time, and the share of
industry and services increases correspondingly. Till two
decades ago the share of agriculture in total employment was
unorganised sector towards formal employment in the nearly 70% in the Indian economy. The most recent National
Sample Survey (2009-10, 66th round) suggests that this share
non-agricultural organised sector. There has been a
has declined over time to 53%. But given the fact that 53% of
slight structural shift in employment away from the Indian workforce is producing barely 15% of the gross
agriculture towards the non-manufacturing sector. An domestic product ( g d p ) , the decline in the share of agriculture
interesting dimension about this transformation is the in total employment is nowhere close to fast enough. The share
of industry and services in output has increased sharply within
rising employment in enterprises employing 20 or more
the last 20 years but their share of employment still remains
workers and a decline in employment in enterprises low, at 22.7% and 24.4%, respectively in 2009-10. Their contri­
employing less than six workers. The second half of the butions to g d p correspondingly are - industry 28.1% (manu­
decade (characterised by high growth rates) witnessed a facturing 15.9%, non-manufacturing 12.2%), and services
57.3% in 2009-10 (Table 1). Therefore, increasing employment
decline in employment in the manufacturing sector,
outside of agriculture must be a desirable goal in and of itself.
while there was stagnation in services sector Thus, creating employment during the Twelfth Five-Year Plan
employment. With the rise in participation in education would require enhancement of the rate of transition of labour
(in particular female education), it is most likely that a out of agriculture to industry and services.
Table 1: Share of Employment and Gross Value Added (1999-2000,2009- 10; in %)
larger number of educated youth, especially women, Sectors Shares
will be joining the labourforce in future years, and given 1999-2000 2009-10
Employment GrossValue Added Employment GVA
the fact that the highest open unemployment rate is (GVA)
Agriculture 59.9 23.8 53.2 14.6
among educated youth, this calls for more proactive M anufacturing 11.1 15.5 11.03 15.9
policies towards employment creation in organised Non-m anufacturing 5.3 11.8 10.49 12.2
Services 23.7 48.9 25.28 57.3
manufacturing and services sectors. Total 100 100 100.0 100
Source: CSO, and NSS Employment and Unemployment Surveys, various rounds.

One of the objectives in the Twelfth Five-Year Plan, while


creating employment, needs to be that the work created should
be (a) decent work, and (b) productive employment. While in­
creasing productive employment in all sectors of the economy
is the most desirable goal, one concern is that some of the
employment generated in the growth process could well lead
to employment growing faster in certain sectors than does
gross value added (g v a ) . In an ideal world this outcome is not
the most desirable, since employment increase must only be an
increase in productive employment, defined as the case when
We are thankful to Ravi Srivastava, J Dash and Rajiv Mehta. We are also output grows faster than employment. However in an economy
grateful to a referee of this journal for comments on an earlier draft. which is suffering from 6.6% unemployment by the current
Santosh Mehrotra (santosh.mehrotra@ nic.iri), Ankita Gandhi (ankita. daily status (c d s ) definition (2009-10), an increase in employ­
gandhi@nic.iri), Bimal Kishore Sahoo (bimal.sahoo@ nic.iri) and Partha ment may not always and simultaneously increase labour pro­
Saha (p a rth a .saha@nic.iri) are with the Institute of Applied Manpower ductivity. The movement of labour out of agriculture to higher
Research, Planning Commission, New Delhi.
productivity generating industry and services is itself a gain in
Economic & Political weekly GEd may 12, 2 0 1 2 s v o l x l v i i n o 19 63

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

terms of equity and efficiency in the economy, even though the extent in the remaining three types of employment in the
productivity gain in the case of those workers hired after economy, which together account for 93% of the total employ­
employment elasticity1 goes over 1 (a phenomenon that we ment in the country.
observe in some sectors, as discussed later) may not be termed In the light of this conceptual framework, we will examine
as being employed productively and hence they constitute a in Section 2 overall employment trends in the non-agricultural
loss in potential efficiency. sectors both quantitative and qualitative in particular over
In order to achieve this objective, two kinds of transitions the 2000s divided into two time periods, i e, 1999-2000 to
would be needed: first, movement of unskilled labour from 2004-05, and 2004-05 to 2009-10. In Section 3 we will
agriculture to unorganised industry or unorganised services; analyse sectoral employment growth in various sectors of the
second, movement of labour from informal employment in the economy. The last section summarises major findings along
unorganised sectors to either formal employment in organised with policy implications.
sectors (preferably), or at least informal employment in the
organised sectors. We discuss each one of these transitions 2 Overall Employment Trends in India
in this paper. In this section we examine labour force and workforce partici­
There are several dimensions to ensuring more decent work pation rates over the period 1999-2000 to 2009-10, the work­
at the current stage of development of the Indian economy. force estimates over the past decade, the unemployment rate
First, when agricultural labour migrates to urban areas in by usual principal and subsidiary status ( u p s s ) , wages and
search of work and finds employment, even if it may be casual consumption expenditure. In addition to these quantitative
work in unorganised services or industries, it does so because dimensions of employment in the Indian economy, we also
urban wage rates even in the unorganised sector are better than examine certain qualitative dimensions.
those prevailing in agriculture (or there may be an absence of
work opportunities in agriculture in her/his district or state). 2.1 Q uantitative Dimensions o f Employment Trends
Otherwise, labour is unlikely to migrate to uncertain informal Labour force participation rate ( l f p r ) and workforce partici­
employment in urban areas. This is in fact one kind of transi­ pation rate (w f p r ) between 1993 and 2009-10 have been
tion to more decent work than agriculture labour, merely declining ( i a m r 2011b). The l f p r is the ratio of the labour
because the wages are likely to be higher. This kind of work is force in the age group 15 and above to the total population of
still not such as to provide employment security or income the country. If the growth rate of total population is higher
security or social security - which is our definition of “decent than the growth rate of those joining the labour force, the l f p r
work” - but it is still better than work in agriculture (which shows a declining trend, which is exactly what the total shows.
may or may not be available). The total population growth rate, despite its constant decline
There is a second transition which is a positive step in the over the past few decades, is still 1.6% per annum (2001-11),
direction of decent work, which involves the transition from while the growth rate of the labour force is lower. There is a
informal jobs in the unorganised sector to informal organised constant decline in both rural and urban l f p r s over the period,
sector employment. Of the 93% informal sector employment, as well as in the w f p r s . A s soon as the population growth rate,
some 7 percentage points are accounted for by informal which is systematically declining, is exceeded by the growth
employment in the organised sector ( n c e u s 2008). Informal rate of the labour force, the l f p r will start increasing.
employment (e g, as contract labour) in the organised sector However, the growth in the labour force will be moderated
would be superior in terms of security of work because by rising participation in education. The Right to Education
there is likely to be a written contract as opposed to a verbal ( r t e ) for 6-14 year-olds will ensure that even those who
one in the unorganised sector, some benefits (e g, assured turn 14 will continue in school - especially since there is a
leave and health benefits) other than a salary are likely to be high likelihood that the r t e will be extended to age 16
involved, and some degree of security of tenure would be (to cover Classes 9-10). Moreover, with the introduction of
available as opposed to complete uncertainty of tenure of the National Vocational Education Qualification Framework
employment that characterises informal employment in ( n v e q f ) , and vocational education starting with Class 9,
unorganised enterprises. there is a probability that dropout after Class 8 (age 14) will
The third, or ideal, type of employment creation that decrease, and children will continue in vocational education
policymakers may like to see during the Twelfth Plan, is growth ( i a m r 2011a). Creating employment opportunities for the ed­
in the size and share of formal employment in organised sector ucated youth will be a challenge for the country in near fu­
enterprises. This is the case because such employment would ture (Rangarajan et al 2011).
be characterised by security of tenure and wage rates well The workforce had increased during 1999-2000 to 2004-05
above agricultural labour, neither of which prevails in infor­ by 60 million, but the corresponding increase in the second
mal work in unorganised enterprises, and informal employ­ half of the decade was only two million. This number could
ment in the organised sector. In addition, it would be charac­ be used to draw the conclusion that employment growth
terised by nearly complete social insurance, i e, death and dis­ has slowed in the period of faster growth in the latter half
ability benefits, old-age pension, maternity leave and health of the decade, and therefore, casts doubt on the value of
benefits. None of these three are likely to prevail to the same economic growth as a goal. However, this is not true and this
64 m a y 12, 2 0 1 2 v o l x l v i i n o 19 13229 Economic & Political w e e k ly

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :01:10 UTC
A ll use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

Table 2: Workforce Estimates for 1999-2000,2004-05 and 2009-10 (in million) Neetha 2011; Rangarajan et al 2011). In the Indian case, far
AgeGroup Principal Status Principal Status Principal and Subsidiary Status
from being a bad thing, this is entirely a welcome development.
0to24 25+ 0to24 25+
For male p s employment in ages 25 or more, there has been a
1999-2000
Rural male 46 150 48 152 sharp increase in the growth of workers - quite the opposite of
Rural female 20 62 26 80 what might be implied by the mere two million increase in
Urban male 15 60 15 61 total employment that occurred between 2005 and 2010.
Urban female 3 12 4 14 However, the situation is quite different for women, whose
2004-05 employment has declined. Their employment fell because as
Rural male 48 167 51 168
we noted above, young women are attending school, which is
Rural female 19 72 28 96
where they belong. In fact, a comparison over a longer period
Urban male 18 71 18 72
shows that from the 1980s there has been a sustained decline
Urban female 4 16 5 19
2009-10
in women’s employment.2 The main worry here is that as
Rural male 41 186 45 187 Rangarajan et al (2011) note, only 44% of the decline in the
Rural female 14 67 19 86 female w p r is accounted for by increased participation of
Urban male 16 83 16 84 women of working-age in education.
Urban female 3 16 4 19 The rural unemployment rate has been consistently lower
Source: NSS 50th, 55th and 6 6 th rounds.
than the urban, which is not surprising given the reliance of
is demonstrated by the following inferences that can be made the rural workforce on self-employment in agriculture. This, of
from Table 2. course, might be a last resort activity since evidence is growing
The first point refers to what has happened to principal status of rural distress among the 84% of all farmers who till under
(p s) employment between the first and second halves of the one hectare of land - the small and marginal farmers who eke
2000s. The activity on which a person spends a relatively out an uncertain livelihood. What is worrying is that on ac­
longer time (say farming his land) during the 365 days preced­ count of the slow rate of growth of output in agriculture in an
ing the date of survey is regarded as the usual principal activity otherwise high growth economy, the unemployment rate by
status (u p s) of the person. In addition to her principal status u p s s as only shown an increase between 1993-94 and 2004-05,
activity, this person could have engaged in some other activity and has remained at roughly the same level in 2009-10 ( ia m r
for 30 days or more during this time (called her subsidiary 2011b). On the contrary, in urban areas, where a lot of the eco­
status). The two measures together are used to determine the nomic growth has tended to be concentrated, there has been a
size of the workforce, and also the number of persons both decline of the unemployment rate.
working and available for work (labour force). According to Table 3 shows some further positive developments in the lat­
the n s s employment and unemployment surveys, since 1983, ter half of the 2000s. Unemployment by the c d s measure has
there has been a consistent improvement in p s employment and declined, after rising from 6.06% in 1993-94 to 7.31% in 1999-
a reduction in subsidiary employment (Anant and Mehta 2011). 2000 and further to 8.2% in 2004-05. But, as we noted above,
The second important finding is that there is a growing more men are indeed working in the latter half of the decade
absence of those under 25 from the workforce, which is compared to the first Tabl.3:Un«m ploym «nt and Wages
another extremely welcome development. If children under half, more girls are (1993-2004- 2009-10)
six and children over 14 are not in the workforce, it is because going to school, both Unemployment Salaries and Wages
Rate (Rs per day.
they are increasingly in school. In fact, the 0-24 year age group of which suggest that (%) (CDS) for Male Rural Workers)
Regular Casual
sees a sharp decline in their worker population ratio ( w p r ). incomes are rising. It
1 9 9 3 -9 4 6 .0 6 5 8 .4 8 2 3 .1 8
As we have analysed in the I n d ia H u m a n D e v e lo p m e n t R e p o r t appears that this in­
1 9 9 9 -2 0 0 0 7.31 127.32 4 5 .4 8
2011, this is happening because the incidence of child labour formation is consistent 2 0 0 4 -0 5 8 .2 1 4 4 .9 3 5 5 .0 3
is declining and there is a simultaneous increase in school with the phenomenon 2 0 0 9 -1 0 6 .6 249.15 101 .53
attendance of over 14-year olds ( ia m r 2011b). that wages are raising, Source: NSS, 6 6 th round, 2009-10, and 50th round,
Further, in the age group of 5-14 years, 89.3% of children not just in salaried 1993-94.
were in school in 2009-10, up from 82.4% in 2004-05. Further work, but also in casual work (Table 3). It is also consistent with
this increase was higher for girls, rising from 79.6% in 2004-05 the fact that the average number of months without work in
to 87.7% in 2009-10. In the 15-19 years age group, 59.5% of the past year for casual workers declined between 2004-05 and
young people were in the educational system in 2009-10 as 2009-10 (from 1.9 to 1.4 months in agriculture, from 1.4 to 1.1
compared to 46.2% in 2004-05. Once again, the increase was months in rural non-farm work and from 1.5 to 0.9 months in
more for girls, from 40.3% to 54.6%. In the next higher age urban areas) (World Bank 2012).
group of 20-24 years, 22.5% of boys and 12.8% of girls were
still in the educational system in 2009-10 against only 14.9% 2.2 Qualitative Dimensions in Employment Trends
and 7.6%, respectively in 2004-05 (Planning Commission 2011).
The third important finding is about development in regard Formal and Informal Employment in the Non-Agricultural
to women’s employment. Since the 1980s, there has been a Sectors: The share of organised sector employment was
near consistent decline in w p r for women (Mazumdar and around 14% in both 1999-2000 and 2004-05. However, our
Economic & Political w e e k ly Q 3 ZI m a y 12, 2012 v o l x l v i i n o 19 65

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

analysis of the n s s 2009-10 data ( n s s o 66th round) in the Size of Enterprises by Employment: In Table 5 we examine
second half of the decade shows it has risen to 16%. That is, the number and share of workers in what could be termed as
unorganised sector employment has declined from 86% in micro, small, medium/large enterprises. There seems to be a
1999-2000 and 2004-05 to 84% in 2009-10. Organised and remarkable shift occurring in non-agricultural employment
unorganised sectors have been defined as per National Com­ in the 2000s, if we examine the size class of enterprises by the
mission for Enterprises in the Unorganised Sector ( n c e u s ) number of workers that they employed. The workers in the
definition (Table 4).3 enterprises with less than six employees (i e, microenterprises)
An analysis of formal versus informal employment, again us­ show a remarkable decline both in absolute and relative
ing the n c e u s definition,4 shows employment within both organ­ terms between 2004-05 and 2009-10. Such microenterprises
ised and unorganised sectors with social security benefits. While accounted for 152.5 million workers in the middle of the
there has been a decline in the share of formal employment from decade, or 75% of all non-agricultural workers. By the end
about 9% in 1999-2000, to nearly 8% in 2004-05 and further to of the decade the number of workers in such enterprises
7% in 2009-10, there has been a consistent increase in informal had fallen by nearly four million, and the share of such
employment, especially in the organised sector (Table 4). microenterprises in the total non-agricultural employment
Table 4: Formal and Informal Employment in Organised was down to 65.6%. Correspondingly, there was an increase in
and Unorganised Sector ________________________ the number of workers employed in enterprises with six and
Sectors Employment
Informal Formal Total
above but less than 10 workers, from 15.2 million in the mid­
2 0 0 9 -1 0 dle of the decade to nearly 24 million at its end, thus raising
Unorganised 3 8 5 .0 8 (9 9.4) 2 .2 6 (0 .6 ) 3 8 7 .3 4 (1 0 0 ) the share of workers in such enterprises from 7.5% to 10.5% of
Organised 4 2 .1 4 (57.8) 3 0 .7 4 (4 2 .2 ) 7 2 .8 8 (1 0 0 ) all non-agricultural employment in the country. This is clearly
Total 4 2 7 .2 2 (9 2 .8 ) 3 3 .0 0 (7.2) 4 6 0 .2 2 ( 1 0 0 ) a positive development since it is easier for slightly bigger
2 0 0 4 -0 5
enterprises to be reached with services (credit, marketing
Unorganised 3 9 3 .5 (9 9 .6 ) 1.4 (0.4) 3 9 4 .9 (1 0 0 )
Organised 29.1 (4 6 .6 ) 3 3 .4 (5 3.4) 6 2 .6 (1 0 0 )
support, design support). It is also better for workers since it
Total 4 2 2 .6 (9 2.4) 3 4 .9 (7.6) 457 .5 (1 0 0 )
reduces the fragmentation and enables them to organise -
1 9 9 9 -2 0 0 0 which is next to impossible to achieve when workers are
Unorganised 3 4 1 .3 (9 9 .6 ) 1.4 (0.4) 3 4 2 .6 (1 0 0 ) dispersed in millions of microenterprises.
Organised 2 0 .5 (3 7.8) 3 3 .7 (6 2 .2 ) 54.1 (1 0 0 ) What is remarkable about this shift in the size class of enter­
Total 3 6 1 .7 (9 1.2) 3 5 .0 (8 .8 ) 3 9 6 .8 (1 0 0 ) prises by employment in non-agricultural work is the growing
Figures in parenthesis are percentages.
Source: For 2009-10, computed from NSS 6 6 th round, for 2004-05 and 1999-2000, absolute number of employees in enterprises where 20 or more
NCEUS (2007). workers were employed. Workers in what could be called the
The share of informal employment in the unorganised sector is middle and large enterprises, by size class of employment,
unchanged at 99.5% throughout the decade. This is because rose from 24 million in 2004-05 by a remarkable 15 million to
there are hardly any social security benefits for workers in the nearly 39 million at the end of the decade. At the same time,
unorganised sector. However, what is notable is that the share the share of such employment in total non-agricultural
of formal employment in the organised sector has been falling employment grew from 11.8% to 17.1%. This is consistent with
continuously from 62% in 1999-2000, to 53% in 2004-05, fur­ our argument, based on the analysis of organised manufactur­
ther down to 42% in 2009-10. This is matched by a correspond­ ing employment in the latter half of the 2000s, that there has
ing increase in informal employment in the organised sector been a rise in organised sector manufacturing.
which currently stands at 58% compared to 38% at the begin­ Table 5: Number of Workers by Size of Enterprise
ning of the decade. Thus, while the organised sector’s share in Number of Workers in Enterprises 2004-05 2009-10
employment is increasing, it is only due to the increase in in­ Number of Workers Share Number of Workers Share
in Million (%) in Million (%)
formal employment in that sector. Less than six 152.5 74.9 148.7 65.6
As per our conceptual framework, the first two transitions Six and above but less than 10 15.2 7.4 23.8 10.5
are taking place. There is a movement of workers from the 10 and above but less than 20 11.8 5.8 15.4 6.8
agricultural sector to informal non-agricultural sectors, mainly 20 and above 24 11 38.8 17.1
construction. Next is the transition from informal employment Source: NSS, 61st and 6 6 th rounds.

in the unorganised sector to informal employment in the This shift in the distribution of employment across firm size
organised sector. This is shown by a decline of 8.4 million in­ groups between 2005 and 2010 is very significant since the
formal workers in the unorganised sector along with an increase World Bank (2012) reports that this distribution had not
of 13 million informal workers in the organised sector. Corre­ shifted over time between 1993-94 and 2004-05.
spondingly, the share of all workers employed in the organised
sector has increased (from 14% to 16%). But the cause of worry Self-employed, Regular Wage Employed and Casual Wage
is that formal employment in the organised sector, which is by Labour: Table 6 (p 67) presents for three points of time disag­
definition, the most decent form of employment, is not increas­ gregated data for the workforce distributed by categorywise
ing. This shows that employers are increasingly hiring workers employment: the self-employed, the regular wage/salary
on contractual terms due to labour laws and other concerns. worker and the casual labourer. The self-employed see a
66 may 12, 2012 vol x l v ii n o 19 ISSESk Economic & Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

remarkable increase in employment in absolute terms until the interesting is that by this u p s s measure the unemployment
middle of the decade, and then a decline; a similar trend is rate is very low for the illiterate or neo-literate, but by the c d s
noticeable for the share of self-employed in the workforce. The measure the unemployment rate in the country is close to that
decline is largely explained by withdrawal of women from the (by u p s s ) of those who have graduate qualification.
workforce of about 23 million women (of whom 1.7 million got
jobs as casual labour and 0.2 million as self-employed). As 3 Non-Agricultural Employment: Potential for
many as 21 million of these women were in rural areas who, as Future Employment Growth
we noted earlier, withdrew because they were either now The strategy for increasing employment during the Twelfth
studying or engaged in domestic work. Urban women did the Five-Year Plan must rely upon an analysis of how employment
same but on a much smaller scale (Rangarajan et al 2011; trends have evolved over the last decade. For this reason most
Himanshu 2011). of the analysis in this section will rely upon employment
Table 6: Number of Workers according to UPSS Approach trends for agriculture, manufacturing, non-manufacturing
by Broad Employment Status (in millions)_ _ _ _ _ _ _ _ _ _ _ _ _
industry and services. We examine employment trends for
1999-2000 2004-05 2009-10
Self-employed 209.3 258.4 232.7 various sectors for three points of time: 1990-20O0, 2004-05
Regular wage/salaried employee 58.2 69.7 75.1 and 2009-10 and the data are reported in Table 8.
Casual labour 130.3 129.7 151.3 Table 8: Employment across Various Sectors (in millions, 1999-2000,2004-05,2009-10)
Source: NSS survey reports. Employment across Absolute Increase
Various Sectors in Employment
The decline in the numbers of self-employed has a correspond­
Sectors 1999-2000 2004-05 2009-10 1999-2000--2004-05-
ing increase in the numbers of those who had casual work in the 2004-05 2009-10
latter half of the decade. Both types of work are in the unorga­ Agriculture 237.67 258.93 244.85 21.25 -14.08
nised segment, so there is little change in terms of the quality Manufacturing 44.05 55.77 50.74 11.72 -5.03
of employment - both would involve informal employment. Mining and quarrying 2.17 2.64 2.95 0.47 0.31
Electricity, gas and water supply 1.13 1.30 1.25 0.17 -0.05
In terms of the quality of employment, the one welcome
Construction 17.54. 26.02 44.08 8.48 18.06
development has been the consistent rise in both the absolute
Non-manufacturing 20.84 29.96 48.28 9.11 18.32
number and the share of workforce of regular workers,
Trade 36.63 43.36 43.53 6.74 0.17
throughout the decade. The increase over the decade was Hotels and restaurants 4.62 6.13 1.48 0.03
6.10
17 million. This welcome development needs to continue. Transport, storage
The only downside about this increase, at least in the latter and communication 14.61 18.47 19.97 3.86 1.5
half of the decade, is that 96% of the jobs were picked up Banking (and insurance) 2.25 3.10 3.82 0.84 0.72
by men. Real estate, renting
and business activities 2.67 4.65 5.75 1.98 1.12
Public administration and defence 10.48 8.84 9.46 -1.64 0.62
Incidence of Employment by Level of Education: It was a
Education 8.47 11.43 11.85 .2.96 0.42
notable fact about the incidence of employment by level of Health 2.62 3.34 0.73 0.25
3.59
education in India (by u p s s ) that illiterates have the lowest rate Other services 11.85 13.51 12.24 1.66 -1.27
of employment, and the rate of unemployment tends to rise Services 94.20 112.81 116.34 18.77 3.53
with every level of education: Table 7: Incidence of Unemployment Total 396.76 457.46 460.22 60.70 2.76
primary, secondary and for 15 Years and Above Age Group, by
Level of Education (2004-05 and 2009-10;
Source: NSSEmployment and Unemployment Surveys, various rounds.

higher secondary, with the UPSS, in %)_______________________ The fundamental issue facing the Indian economy at the
highest unemployment rate Level of Education 2004-05 2009-10 commencement of the Twelfth Plan period is whether more
characterising those with Not literate 0.3 0.3
rapid employment growth can be combined with the rapid
Literate without
diploma/certificates (or those formal schooling 1 .2 0.3
growth of output in industry and in services. The problem of
with one or two years of post­ Below primary 1 .2 0.7 employment growth not keeping pace with growth of output
higher secondary education) Primary 1.4 1 .2 has been experienced in other developing countries as well and
(Table 7). In fact, the last Middle 2.7 2.1 it has bothered policymakers for at least half a century (Patnaik
group had an unemployment Secondary 4.8 2.7 2011; Ghosh 2011). One of the main objectives of the growth
rate of 10.4% in 2004-05 Higher secondary 6.4 5.2 strategy in the Twelfth Plan period must be to ensure that the
9.6
and 9.6% at the end of the Diploma/certificate
10.4
process of structural change in terms of employment is acceler­
Graduate 8 .8 6.9
decade. The unemployment Postgraduate and above • 8.1 6.7
ated. So what is the nature of the structural change that is taking
rate does decline for gradu­ All level of education 2.3 2
place in employment that we observe from the examination of
ates and slightly again for Source: NSS. data for three points of time (2000,2005 and 2010)?
postgraduates and above, but not significantly. Agriculture saw an absolute increase in employment in the
In other words, those with relatively higher education are first half of the decade from 238 million in 1999-2000 to nearly
clearly still able to survive, precisely because unemployment 259 million in 2004-05. This increase in agriculture, at face
over 182 days of the preceding 365 days (before the survey value, cannot be seen to be a positive development, if the
closed) is a situation that can be borne only by the relatively expected structural transformation with growth is that there
well-off (who are also the relatively better educated). What is would be a shift in labour from agriculture to non-agricultural
Economic & Political w e e k ly IBBS3 m a y 12, 2 012 v o l x l v i i n o 19 67

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

employment. However, if the increase in employment in agri­ more capital-intensive, while the output of labour-intensive
culture in first half of the decade is accounted for by a diversi­ products actually declined - giving rise to a situation whereby
fication into allied economic activities like fishery, dairying, the employment elasticity of output becomes negative overall
poultry, sericulture, horticulture and floriculture, it is indeed a for manufacturing.
welcome development. Non-manufacturing industry has been the star performer in
While in the latter half of the decade there was a decline in terms of generating employment in the decade. In the first half
absolute numbers employed in agriculture from 259 million of the decade, non-manufacturing employment increased from
to 245 million, the problem remains that total agricultural 21 million in 1999-2000 to 30 million in 2004-05, or nearly 50%
employment at the end of the decade was still higher than at increase from employment in 1999-2000. But in the second
the beginning of the decade. That means that the process of half, the absolute size of employment in non-manufacturing by
structural change in employment that one would expect with the end of the decade was 1.6 times compared to 2004-05, or
a period of very rapid, in fact, unprecedented growth in 2.3 times relative to the level in 1999-2000. In fact, over the
output in the economy outside of agriculture, is not occur­ entire decade there was an increase in non-manufacturing
ring. In fact, if anything that process of structural change is employment by a total of 27.5 million jobs.
stalled has been least as far as the employment structure in The most important contribution to the increase in non­
the economy is concerned. manufacturing employment over the decade came from con­
In manufacturing, there is an absolute increase in employ­ struction (the increase was 8.5 million during the first half,
ment in the first half of the decade from 44 million to nearly while 18.1 million during the second half). Mining and quarry­
56 million in 2004-05. This increase by nearly 12 million in ing has seen a small increase in employment, and electricity,
manufacturing in the first half of the decade was, however, gas and water supply have seen a very marginal increase.
offset by a decline by five million in the second half of the decade. Trade is far and away the most important contributor to em­
What is interesting is that the absolute size of employment in ployment in services of the 10 service activities mentioned in
2009-10 (50.74 million) was up by about 15% from total manu­ Table 8. It accounts for a third of total services employment in
facturing employment of 44 million at the beginning of the the economy both at the beginning and at the end of the
decade - but only an increase of six million in a period of 10 decade. It accounted for around 36% (nearly seven million)
years. It may be pointed out here that even in China the number of the increase in employment that occurred in the services
of workers in the manufacturing sector has stagnated at sector in India in the first half of the decade. However, in the
230 million since 2004, even though industrial production has second half of the decade, trade hardly saw any increase in
more than doubled during the period 2004 to 2010 (Ghosh 2011). employment. The second-most important sector within services
is transport, storage and communication. It accounted for
Reasons for Fall in Manufacturing 15.5% of the total services employment, and on account of the
Several different reasons could have combined to produce this increase in employment that occurred throughout the
rather grim outcome of a fall in manufacturing employment decade it accounted for 17% of total services sector employ­
when output in manufacturing was growing. First, average ment at the end of the decade.
annual increases in mean real wages in India have been 2.8% The third and most important segment in service sector
between 1983 and 2010. These have risen faster in the second employment is public administration and defence, in which
half of the 2000s than earlier - driven perhaps by a greater there was a fall of nearly 1.6% in total employment in the first
shortage of skilled staff. Between 1994 and 2010, the wage dif­ half of the decade, followed by a slight increase in the latter
ferential between a particular level of educational attainment half. The important point is that compared to the beginning
and the level of attainment just below has increased. Simi­ of the decade public administration and defence had seen a
larly, sharp increases have occurred in the wage premiums fall by 9.5% of total employment. At first sight this could be
for skilled occupations (e g, managers, professionals, techni­ interpreted as a positive development, given the fact that the
cians, even clerks) over elementary occupations in 1993-94, composition of employment within public administration in
1999-2000, 2004-05 and 2009-10. Thus, the situation emerg­ particular is heavily biased in favour of lower level personnel,
ing is that the supply of workers at lower levels of education is or people with rather low levels of skills. For example, in the
increasing faster than demand, while the demand for workers central government only 12% of all employees are accounted
with secondary or tertiary education is exceeding the supply for by class a and class b group employees, while 88% of total
(World Bank 2012). This data on wages suggests that the pace central government employees are accounted for by groups c& d.
of technical change increased as a result, so that total Given that wages and benefits paid in government for levels
employment actually fell despite an increase in total manu­ c& d are well above those which are available to employees in
facturing output. the private sector at comparable level of employment and skills,
A second reason for the adverse employment outcomes this is a situation which remains completely unsustainable.
could be that the structure of output (in manufacturing or Among the economic services it is notable that hotels and
services) shifted towards products or services that were much restaurants have seen a sharp increase in employment of 1.5
less labour-intensive by 2010 compared to 2005. In other million in the first half of the decade starting from a base of
words, the products (or services) being produced in 2010 are 4.6 million at the beginning of the decade. What is surprising
68 MAY 12, 2 0 1 2 VOL XLVII NO 19 Q2 Q Economic & Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

is that this growth was not sustained at all in the latter half of million to 3.3 million, but the increase in employment was
this decade and there was, in fact, no change in employment marginal in the latter half of the decade. It appears that while
in this sector. The other important economic service which has the growth rate of g v a in health was robust ( 1 0 . 1 % per annum)
shown, as expected, an increase in employment is banking in the first half of the decade the g v a growth in the health
and insurance in both the first and second half of the decade. sector declined to 4.2% per annum in the second half of the
Employment in banking and insurance, which was 2.25 million decade, which perhaps explains the rather small increase in
in 1990-2000, had risen to 3.82 million in 2009-10. employment in the health sector in the latter half of the decade.
The other interesting sector in services is real estate in With a persistent shortage of health workers, even post-
which there was a consistent increase in employment through­ National Rural Health Mission, there is a possibility that a greater
out the decade, from 2.7 million in 1990-2000 to 4.7 million in thrust by government on the health sector will increase
the middle of the decade, to 5.7 million at its end. This is hardly employment in the health sector in the Twelfth Plan.
surprising given that both housing and infrastructure invest­ The share of manufacturing in g d p is supposed to rise from
ment in the Eleventh Plan period has been growing rapidly. its current 1 5 % to 2 5 % by the end of the Thirteenth Five-Year
We saw above that construction contributed the largest in­ Plan 2 0 2 2 (Planning Commission 2 0 1 1 ) . However, manufac­
crease in total employment in the economy in both the first turing today accounts for 1 5 . 3 % of g d p , which is not different
and second halves of the 2000s. The increase in employment from its 1 5 .5 % share in g d p in 1 9 9 9 - 2 0 0 0 . The share of manu­
in real estate is a mirror image of the increased construction facturing in employment actually fell slightly from 1 1 . 1 % of
activity. We know that investment in infrastructure at the total employment in 1 9 9 9 - 2 0 0 0 to 1 1 . 0 3 % in 2 0 0 9 - 1 0 . With
beginning (2007-08) of the Eleventh Five-Year Plan stood at increasing global integration different technologies are being
4.4% of g d p , but its share in g d p is expected to rise to 7.5% in imported which to a considerable extent are labour-saving.
the terminal year of the Plan. Hence it is not surprising that It is important that savings generated in such sectors are
both construction (within industry) and real estate services diverted towards labour-intensive sectors including the social
have seen a consistent increase in employment. sectors (health, sanitation and education in particular) which
One can foresee that this trend will remain unabated during will generate demand directly as well as indirectly through
the Twelfth Five-Year Plan. This is because investment in the multiplier effect (Ghosh 2 0 1 1 ) . If investment in the social
infrastructure is expected to grow from $ 5 0 0 billion during the sectors rises, disposable income with the consumers goes up,
Eleventh Plan to $ 1 trillion in the Twelfth Plan, i e, to nearly thereby leading to an increase in demand. In India, investment
1 0 % of g d p . Even more importantly, the share of private sector in social sectors has remained at a very low level, and there­
in infrastructure investment, which was 3 0 % of all infrastruc­ fore, domestic demand expansion through higher investment
ture investment during the Eleventh Five-Year Plan is expected in the social sectors has not taken place. Further, the rise in
to rise to 5 0 % at the end of the Twelfth Plan. In other words, interest rate has dampened investment growth. This can be
the scope for an increase in employment in real estate services one of the possible reasons why employment has not grown
is going to be significant, just as the expansion of employment despite very high growth in output.
in the construction sector is going to increase during the In other words, the challenge before the country’s policy­
Twelfth Five-Year Plan. makers is not only to increase the contribution of manufactur­
The somewhat intriguing results are in regard to employ­ ing to g v a in the economy, but also its contribution to employ­
ment in health and education services. Due to government ment - in a context wherein the last decade of rapid economic
investment in school education, especially the Sarva Shiksha growth there has been almost no increase in the contribution
Abhiyan, there has been an increase in the number of teachers of manufacturing to either output or employment in relative
hired by government schools throughout the country. Private terms. Further, resource mobilisation from labour-saving
school enrolment and hence teacher hiring have also increased. sectors to labour-intensive sectors (including the social sec­
Hence it is not surprising that there was an increase in the tors) remains an important challenge for policymakers.
number of those employed in education from 8.5 million in
1990-2000 by about three million in 2004-05. However, there 3.1 Employment Trends in the Unorganised
was hardly any increase in employment in education in the and Organised Segments of Industry and Services
latter half of the decade. Meanwhile, the education sector’s In Table 9 we provide a detailed analysis of organised and un­
growth has remained robust: the growth rate of g v a between organised employment, for agriculture, industry and services
1999-2000 and 2004-05 in education was 7.1% per annum, for three points of time: 1 9 9 9 - 2 0 0 0 , 2 0 0 4 - 0 5 and 2 0 0 9 - 1 0 .
and it actually increased to nearly Table 9: Number of Workers by Sector (1999-2000,2004-05,2009-10; in million)
8.4% per annum in the latter half of Workers 1999-2000 2004-05 2009-10
Total Unorganised Organised Total Unorganised Organised Total Unorganised Organised
the decade.
Agriculture 237.67 232.2 5.47 258.93 252.8 6.09 244.85 242.11 2.74
Similarly, in health, which accounts
Manufacturing 44.05 30.92 13.13 55.77 39.71 16.06 50.74 34.71 16.03
for only a third of the employment gen­ 13.89 6.95 29.96 20.64 9.32 48.28 30.36 17.92
Non-manufacturing 20.84
erated by the education sector, there Total services 94.20 65.62 28.57 112.81 81.72 31.09 116.34 80.15 36.19
was a large increase in employment in Total workforce 396.76 342.64 54.12 457.46 394.90 62.57 460.22 387.34 72.88
the first half of the decade from 2.6 Source: NSS.
Economic & Political w e e k l y HBQ m ay 12, 2012 vol x l v ii n o 19 69

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

Agriculture: We have already seen earlier that a structural captures manufacturing enterprises run by government (or
change in terms of employment has hardly even begun during included in the public sector) and cooperatives, trust and other
the period of rapid economic growth of the 2000s, despite types of private enterprises employing 10 or more workers -
rapid growth in industrial and services output. The numbers these belong to organised manufacturing. The latter definition
employed in agriculture at the end of the decade is, in fact, more includes both formal and informal employment (see Section 1
than what it was at its beginning. The share of the organised for the distinction), while the a s i ’s definition is restricted
segment of agriculture in total agricultural employment (238 mostly to formal employment. In other words, the difference
million in 1999-2000 and 242 million in 2009-10) was barely 5.5 between the a sT s number for workers employed in organised
million at the beginning and fell further to 2.7 million workers manufacturing (6.3 million) and that of the n s s (13.13 million),
at the end of the decade, while numbers in the unorganised is explained by the fact that 6.53 milllion of the 13.13 million in
segment slightly increased from 232 million to 242 million. n s s ’ organised manufacturing segment are mostly workers
that would be regarded as contract or ad hoc labour (i e, infor­
Manufacturing: In the first half of the decade there was a mal workers in the organised segment of manufacturing
very sharp rise of 30% in unorganised employment in manu­ industry) ( n c e u s 2008 and 2009).
facturing (from 31 million to 40 million), but five million By 2004-05 organised manufacturing by the a s i definition
workers in unorganised employment in the manufacturing barely increased from 6.3 million to 6.6 million, while n s s
sector in 2004-05 had lost their jobs by the end of the decade; reports that it grew by three million (13.1 million to 16.1 million).
as a result total unorganised manufacturing employment had The n s s is reporting that by the broader definition of organised
fallen to 35 million. . manufacturing, employment remained unchanged at 16 million
Organised manufacturing, which accounted for 30% of total between 2004-05 and 2009-10. However, the a s i is reporting
manufacturing employment at the beginning of the decade, that by the tighter definition (which focuses on formal employ­
increased its share to only 31% by the end of the decade. In ment mostly) it actually increased from 6.6 million to 8.8 million
other words, to the extent that organised employment consti­ between 2004-05 and 2008-09, i e, the share of formal em­
tutes an improvement in the scale of decent work over unor­ ployment in organised manufacturing increased.
ganised sector employment (see Section 1), over the decade of
rapid economic growth there was no improvement in this 3.3 Non-Manufacturing Industry
regard either (Goldar 2011a and b; Nagaraj 2011; Kannan and While employment in services and in manufacturing had in­
Raveendran 2009; Mazumdar and Sarkar 2004). creased sharply in the first half of the decade, in the second half
employment in these sectors either increased slowly or fell. By
3.2 Informal vs Formal Employment contrast, employment in non-manufacturing industry, and espe­
in Organised Manufacturing cially construction, provided hope to the millions working in
We have noted above, on the basis of an analysis of n s s data agriculture who wanted to leave agriculture in favour of employ­
for 1999-2000, 2004-05 and 2009-10, that employment in the ment in non-agricultural sectors. Mining saw an increase in
organised segment of manufacturing has grown from 13.13 employment from 2.17 million to 2.64 million in the first half of
million to 16.06 million (during the first half of the decade), and it the decade, and a further increase to 2.95 million in the second
remained there (16.03 million) during the second half of the half. Most of this increase was accounted for by the organised
decade. It is very important to emphasise that even in organised mining segment, while the unorganised segment saw only a
manufacturing employment, as defined by the n s s , there are very marginal increase in employment over the entire decade.5
both types of employment: formal and informal. We noted in The star performer of all sectors in respect of employment,
Section 1 that the most decent form of employment would be by far, was construction, which saw an increase in employment
formal employment in the organised sector of the economy. from 17.54 million to 26 million in the first half of the decade
In order to assess the size of formal vs informal employment and a further increase to 44 million. Table 9 shows that there
in organised manufacturing over the past decade we examine was a very sharp increase in employment in the unorganised
data from the Annual Survey of Industries ( a s i ) for three points segment throughout the decade. However, the most surprising
of time 1999-2000, 2004-05 and 2008-09 (the latest year for phenomenon is that the organised segment of construction
which a s i data for organised manufacturing is available for also saw very sharp increase in employment, from 4.6 million
2008-09). The contrast between employment in organised to 6.35 million in the first half of the decade. But the most
manufacturing as defined by the n s s and the a s i definition is stunning increase is the doubling of employment that occurs
instructive. In 1999-2000 the n s s reports organised manufac­ in organised construction in the latter half of the decade
turing to be employing 13.13 million workers, while a s i reports within a matter of five years from 6.35 to 14.91 million. This
that the size of employment in organised manufacturing in the latter increase in organised construction’s contribution to
same year is less than half at 6.3 million. The definition that employment growth could only be explained by the fact that
a s i uses for organised manufacturing is that the firms counted there was a significant expansion of infrastructure investment
are those registered under the Factory Act 1948 employing 10 during the Eleventh Five-Year Plan period from 4% of g d p at
or more workers; this is a tighter definition than the one used the beginning of the Plan increasing to 7.5% of the g d p in the
by the n s s to identify firms in organised manufacturing, n s s terminal year of the Plan. While most of the increase in
70 m ay 12, 2012 vol X L V il no 19 BOSS Economic & Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

unorganised sector employment in construction would be that implies that these workers are relying on one source of em­
coming from private development of housing, it is possible that ployment, rather than more than one.
the large-scale projects involving the construction of airports, Second, there has been a sharp decline in the number of
metros, highways and express ways, urban flyovers and those under 25 years of age in the workforce. This denotes a
private ports, are likely to have involved such huge firms as drop in the labour participation rate, and a future increase in
l & t , Gammon India, g m r , Shapoorji and so on - all of which the educational level of the young population joining the
are likely to have employed workers directly on terms usually workforce - a definitely positive development.
applicable in the organised segment, even though their sub­ Third, the worker population ratio for women has seen a
contractors would also generate significant employment in decline since the 1980s. The decline is much greater for rural
construction in the unorganised segment. females than for urban females. It was rural females who have
tended to remain outside the school system historically. We
3.4 Services know that girls’ enrolment rates in school and college have been
In the latter half of the decade when manufacturing employ­ increasing consistently, not just at elementary level, but also at
ment, both organised and unorganised, was declining, the secondary level and above. Hence, the decline in the female-
organised segment of services continue to see a growth in worker population ratio in the 0-24-year-age group for women
employment. But the unorganised segment of services saw a is a welcome development in the latter half of the 2000s.
fall in employment from 81.7 million to 80 million in the latter Fourth, unemployment rates between 1993-94 and 2004-05
half of the decade. More than half of this decline in the by c d s had increased consistently from 6 % to 8.2% of the
unorganised segment of employment in services was accounted labour force. However, consistent with the increase in the
for by the decline in employment in wholesale and retail trade, growth rate of economy, the unemployment rate by the c d s
which is perhaps a reflection of the overall fall in economic measure has declined in the latter half of the 2000s to 6.6%
activity in the aftermath of the downturn of the Indian economy in 2009-10.
after the global economic crisis. Nevertheless, the experience Fifth, there has been a secular rise in the real wage rate for
of the 2000s suggests that organised segment employment both regular and casual workers. This is consistent with the
may well continue to grow during the Twelfth Five-Year Plan rise in monthly per capita expenditure in both rural and urban
not only in the construction sub-sector, but also in services. areas, which has led to a decline in the incidence of poverty.
Both these sub-sectors seem to have survived the impact of the
global economic crisis. 4.3 Employment Potential in Different Sectors
The period of 2004-05 to 2009-10 was unusual in that there
4 Summary and Policy Implications was a lower than expected increase in the labour force partici­
pation rate, because of a decline in participation of youth and
4.1 Some Improvement in the Transition women in the labour force, since they preferred to enter edu­
to Somewhat decent Work' cation. However, this lower growth in the labour force in the
Our analysis so far suggests that there has been an increase in latter half of the decade will not continue and the pace of em­
relatively decent, productive work in at least two senses. ployment expansion will have to increase outside of agriculture.
First, there has been an increase in the share of industry and Organised segment employment in construction may well also
services in total employment, with agriculture’s share in continue to grow. It is the increase in organised construction
employment declining, and a corresponding increase in non- employment that has driven the relative rise of organised
agricultural employment from 44% to 47%. In other words, employment in the economy in the latter half of the 2000s.
there is not only an absolute increase in non-agricultural
employment, where wages tend to be better than agriculture, Agriculture: There was an absolute decline in total employ­
but also an increase in the share of non-agricultural employ­ ment in agriculture of approximately 14 million. One would
ment in the total employment in the country. have expected that at least in the allied activities in agricul­
Organised segment employment has grown - from a share ture - horticulture, animal husbandry, forestry and fisheries -
of 14% at beginning to 16% of total employment at the end of there would be an increase in employment. The latter expecta­
the decade - an absolute increase of 19 million workers. The tion derives from the high income elasticity of demand for
growth of this share is a welcome development. But clearly, fruits and vegetables, eggs, meat and fish. It is indeed intrigu­
the shift is small in a whole decade of rapid growth of output, ing that employment in these activities declined in absolute
and that should be worrying to policymakers concerned about terms from 50.8 million to 34.6 million in the latter half of the
promoting decent employment. decade. Of this decline of 16 million, 11 million is accounted for
by decline in employment in animal husbandry from 34 million
4.2 Positive Dimensions of Recent Quantitative in 2004-05, followed by a four million decline in horticulture.
Employment-related Trends One can hypothesise about the reason why there is a decline
First, for both rural and urban males there has been a signifi­ in allied activities employment. A significant proportion of
cant rise in principal status employment since 1983, and this animal husbandry and horticulture activities are undertaken
rise has been sustained in the second half of the 2000s. This by women. With younger women in rural areas remaining
Economic & Political w e e k l y ISEICT m ay 12, 2012 v o l x l v ii n o 19 71

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

longer in education, and with males migrating for rural non­ The hope of the new proposed National Manufacturing
farm or urban work, the burden of such work is falling upon Policy (nm p) is that not only will manufacturing become an
women. Women were already burdened with household engine of growth during the Twelfth Plan, but it will also
chores, and with increasing work on the family farm produc­ provide at least 100 million additional decent jobs. Without
ing essential food crops, these additional allied agricultural these jobs “it will be difficult for Indian growth to be inclusive”
activities are getting squeezed out in terms of the woman’s (Planning Commission 2011). There are a number of issues
time allocation. Clearly these allied economic activities in that are of concern in the nm p, as articulated in the approach
agriculture are in urgent need of policy support by both state paper to the Twelfth Five-Year Plan. First, despite the rather
and central government if they are to flourish, and employment mixed experience with identifying growth sectors in the
in these activities is to be increased. Eleventh Plan, the approach paper for the Twelfth Plan still
goes ahead to identify so-called “priority sectors” (textile and
Non-Manufacturing Industry: Investment in mining will garments, leather and footwear, gems and jewellery, food
continue to increase during the Twelfth Five-Year Plan, as it processing industries, handlooms and handicrafts). Apart
will be in power generation. Although these two industrial from stating the self-evident that these sectors are labour-
activities are relatively small employers, the rising invest­ intensive, there is no analysis to suggest why these sectors
ment should generate a modicum of employment in these will be able to generate any more employment than they are
sectors. But the largest increase in employment throughout currently doing. In order to make projections for the future
the decade of the 2000s has continued to take place in about the employment-generating capacity of any sector, a de­
construction. Since infrastructure investment and invest­ tailed sectoral analysis of the supply-side constraints within
ment in housing is expected to grow very sharply during the each sector and the factors determining demand would have to
Twelfth Five-Year Plan, construction will continue to provide be undertaken, for such an identification by “priority sectors”
a source of escape for agricultural labour desirous of moving to be meaningful.
out of agriculture. Organised segment employment in con­ A second issue in regard to the n m p is that it does not deal
struction may well also continue to grow. It is the increase directly with one of the major threats to Indian manufacturing
in organised construction employment that has driven the at home and abroad, i e, Chinese-manufactured exports. A
absolute and relative rise of organised employment in the serious response to the threat of Chinese manufacturing can
latter half of the 2000s. only be formulated by a detailed analysis of where the problem
lies, both in terms of government policymaking and the private
Manufacturing: Manufacturing employment increased sharply sector’s ability to meet the Chinese challenge.
in the first half but then declined in the latter half of the dec­ Finally, a critical component of the strategy for achieving
ade. The fact that it fell just when there was a sharp increase in the ambitious goals of the n m p is the national investment and
manufacturing output should worry policymakers. Within manufacturing zone (n im z ), which will be greenfield town­
manufacturing, which saw an increase in total employment ships that will develop to ensure agglomeration economies,
in the first half of the decade by 11.7 million, a very sharp superior infrastructure, no compliance burden, flexible labour
increase took place in the unorganised segment, of nearly nine market conditions and skilled labour. These conditions do not
million new jobs. appear to be very different from the special economic zones
The increase in organised employment was just under three ( s e z s ) which were earlier supposed to meet all the require­
million in the first half of the decade. In the latter half of the ments for developing world-class manufacturing activity in
decade there was no change in organised manufacturing India. It is not entirely clear why the n im z phenomenon, when
employment, while the unorganised segment in manufactur­ implemented, will be able to solve all the problems besetting
ing saw a precipitous decline of five million workers. Clearly Indian manufacturing, and also result in a massive increase in
the decade of the 2000s did not see any major change in the employment, when the s e z phenomenon failed to do so. In
nature of the distribution of workers between the organised that sense the plan for creating n im z could well remain
and unorganised segments of manufacturing. another fond hope.
The increase in manufacturing employment that took place
through the decade was confined to informal employment. Services: Services employment had increased between 1999-
This is the long-standing trend where manufacturing industry 2000 and 2004-05 from 94.2 million to 112.8 million; however,
has tended to avoid taking on workers on the regular payroll, in the latter half of the decade it has grown, but to a lesser extent.
but have hired workers during the period of business upswing That seems to suggest that alongside construction, which has
on informal contracts (contract workers, ad hoc workers) and seen a huge boom throughout the decade in terms of output
then let them go as the business cycle turned downwards. In and employment, services may continue to be the absorber of
other words, the structural change in the direction of more workers during the Twelfth Five-Year Plan. Almost all the serv­
decent work that one might have expected in a rapidly grow­ ice sub-sectors experienced a robust growth of g v a both in the
ing industrial sector is nowhere in evidence. This should first half as well as the second half of the decade. It is
remain a serious concern for policymakers in both states and remarkable that in the latter half of the decade when manufac­
the central government during the Twelfth Five-Year Plan. turing employment, both organised as well as unorganised,
72 m ay 12, 2012 v o l x l v ii n o 19 E 3353 Economic & Political w e e k l y

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :01:10 UTC
All use subject to https://about.jstor.org/terms
SPECIAL ARTICLE

was declining, the organised segment of services continued to services like credit, marketing support or design support
see a growth in employment. But the unorganised segment of (Mehrotra and Biggeri 2007). Further, the rise in the share of
services saw a fall in employment. Nevertheless, the experience enterprises employing slightly larger number of workers is a
of the 2000s suggests that organised segment employment welcome development from the viewpoint that there has
may well continue to grow during the Twelfth Five-Year Plan historically been a problem in India of the “missing middle” in
not only in the construction sub-sector, but also in services. respect of size of enterprise. The recent developments seem to
Both these sub-sectors seem to have survived the impact of the somewhat mitigate that problem.
global economic crisis. (b) We noted that unemployment as estimated by u p s s meas­
We put forward some hypotheses as to why employment ure increased with increasing levels of education of workers.
manufacturing fell and in services barely increased in the The problem of unemployment of the educated can only be ad­
latter half of the decade, in contrast to the first half. dressed by improving the match between the skills and com­
These hypotheses (bring wages and changes in the composi­ petencies imparted in education and the needs of industry.
tion of output, i e, more capital-intensive products being This requires greater industry participation at every level of
produced) are being explored by us in research projects at vocational education and training: at secondary and higher
the Institute of Applied Manpower Research (Planning secondary levels in schools, at polytechnic level, and in higher
Commission) currently. education as well. These tasks will be facilitated with the rapid
introduction of a competency-based vocational education and
4.4 Policy Implications of Some Qualitative training system, based on a National Vocational Education
Dimensions of Employment Qualification Framework (Mehrotra et al 2011). This process
(a) The increase in the middle and larger enterprises, by size has been set in motion, but it is critical for its success that all
class of employment and the decline in the share of the micro­ the 17 ministries of the Government of India come on board on
enterprises in total employment bode well for the future abil­ one qualification framework for this country, and the private
ity of workers to organise themselves, to demand their rights. sector (represented by the National Skill Development Corpo­
The more fragmented workers are in tiny enterprises the more ration - supported sector skills councils) plays a pivotal and
difficult it is for the government also to provide them with cutting edge role in its implementation.

n o t e s ________________________________________ Karnataka). It is perfectly possible that these 2009-10”, Economic & Political Weekly, Vol XLVI,
1 Annual rate of growth of employment relative workers in illegal mining were instructed not No 43,22 October.
to annual rate of growth of GVA. to report where they were working for fear of Mehrotra, Santosh and M Biggeri (2007): Asian In­
being identified as engaged in illegal activity. formal Workers, Global Risks, Local Protection
2 Anant and Mehta (2011) point out that employ­
(London: Routledge).
ment on account of subsidiary status, females
and the young in 2004-05 shows an increase Mehrotra, Santosh, B Banerjee and Vinay Mehrotra
from 1999-2000, which marks a break in this REFERENCES_________________________________ (2011): “A National Qualification for Vocation
long-term pattern of decline. If we omit the Education in India”, A Concept Paper, Institute
Anant, T C A and R Mehta (2011): “Has Employment
of Applied Manpower Research and Ministry of
data for 1999-2000, then the broad pattern of Fallen in India”, Live Mint, accessed on 1 July 2011,
Human Resource Development, New Delhi.
decreasing WPRs in these three categories is (http://www.livemint.com/2011/06/30222407/
maintained. They also note that “what con­ Has-employment-fallen-in-India.html). Nagaraj, R (2011): “Growth in Organised Manufac­
founds the picture is the fact that in 1999-2000 turing Employment: A Comment” Economic &
Ghosh, Jayati (2011): “The Challenge of Ensuring
we have a much sharper fall in WPR in these Political Weekly, Vol 46, No 12,19 March.
Full Employment in the Twenty-First Century”,
categories, leading to a correction”, which Indian Journal of Labour Economics, Vol 54, No 1. NCEUS (2008): “Report on Definitional and Statistical
leads to an apparent rise in WPR between Issues Relating to Informal Economy”, National
Goldar, B N (2011a): “Organised Manufacturing
1999-2000 and 2004-05. They note that this Commission for Enterprises in the Unorganised
Employment: Continuing the Debate”, Economic
phenomenon has been explained by some as Sector, accessed on 1 July, http://nceuis.nic.in/
6 Political Weekly, Vol 46, No 14,2 April.
resulting from an employment slowdown in - (2009): “The Challenge of Employment in
- (2011b): “Growth in Organised Manufacturing
the 1990s, or due to the fact that 1999 was an India: An Informal Economy Perspective”,
Employment in Recent Years”, Economic &
unusual year on account of a recession. In ei­ accessed on 1 July, http://nceus.nic.in/
Political Weekly, Vol 46, No 07,12 February.
ther case the results are an illusion created by Patnaik, P (2011): “Economic Growth and Employ­
Himanshu (2011): “Employment Trends in India: A
the 1999-2000 survey. ment”, Economic & Political Weekly, Vol 46,
Re-examination”, Economic & Political Weekly,
3 “The unorganised sector consists of all incor­ Nos 26 and 27,25 June.
Vol 46, No 37,10 September.
porated private enterprises owned by individu­ Planning Commission (2011): “Faster, Sustainable
IAMR (2011a): “A National Vocational Educational
als or households engaged in sale and produc­ and More Inclusive Growth: An Approach to
Qualification Framework”,. A Concept Paper,
tion of goods and services operated on a propri­ 12th Five-Year Plan”, http://planningcommission.
Institute of Applied Manpower Research and
etary or partnership basis and with less than nic.in/plans/planrel/i2appdrft/appraoch_i2plan.
Ministry of Human Resource Development,
ten total workers.” pdf accessed on 21 October 2011.
New Delhi.
Rangarajan, C, Padma Iyer Kaul and Seema (2011):
4 “Unorganised/informal workers consist of - (2011b): India Human Development Report 2011:
“Where Is the Missing Labour Force?”, Economic
those working in the unorganised sector or Towards Social Inclusion (New Delhi: Oxford
& Political Weekly, Vol 46, No 39,24 September.
households, excluding regular workers with University Press).
social security benefits, and the workers in the Kannan, K P and Raveendran (2009): “Growth sans
organised/formal sector without any employ­ Employment: A Quarter Century of Jobless
ment and social security benefits provided by Growth in India’s Organised Manufacturing” Economic&PoliticalwEEKLY
the employers.” Economic & Political Weekly, Vol 46, No 10,
7 March, pp 80-91. available a t
5 It is possible that NSS data is not capturing the
full extent of employment in mining in its Mazumdar, D and Sarkar (2004): “Reforms and S Thanu Pillai
unorganised segment, given large and growing Employment Elasticity in Organised Manufac­
evidence emerging over the decade of large- turing”, Economic & Political Weekly, Vol 39, T.C.28/481, Kaithamukku
scale illegal mining taking place in many No 27,3 July, pp 3017-29. Thiruvananthapuram 24, Kerala
mining states of the country (Chhattisgarh, Mazumdar, I and N Neetha (2011): “Gender Dimen­ Ph: 2471943
Jharkhand, Andhra Pradesh, Orissa and sions: Employment Trends in India, 1993-94 to

iteonomic & Political w e e k l y I2 2 S3 m ay 12, 2012 vol x l v ii n o 19 73

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :01:10 UTC
A ll use subject to https://about.jstor.org/terms
NOTES

How Representative Has have to choose between two contestants


a and b . If a gets 51 votes then he wins.

the Lok Sabha Been? But the people who voted for candidate b
are not represented in the political system.
In fact, we often observe large discrep­
ancies in the seat share and the vote
ARUN KAUSHIK, RUPAYAN PAL_____________ share of political parties in both the Lok
Sabha and Vidhan Sabha. However, the
An examination of the Lok Sabha t is often argued that democracy is issue of disproportional representation
elections from 1951 to 2011 reveals
that there are large discrepancies
between the seat and vote shares
I the best form of governance, since
it involves largest representation of
general population. However, all demo­
cratically elected governments need not
in elected houses remains neglected, in
spite of the fact that disproportional rep­
resentation in highest lawmaking bodies
may severely distort the formulation and
of political parties in each of necessarily be equally representative of implementation of policies in any nation.
the 15 elected Lok Sabhas in citizens of a nation. It crucially depends We attempt to examine the extent of
on the electoral system in place. More disproportional representation in Lok
independent India, especially
representative government is supposed Sabha during the period from 1951 to
before liberalisation in 1991. to be better for any democracy. There­ 2009, using data for 15 general elec­
In the post-liberalisation period, fore, it is important to examine the tions collected from the Election Com­
the extent of disproportional degree of representativeness of elected mission of India. We construct the index
bodies. India boasts of being the largest of disproportional representation for
representation has come down,
functional democracy in the world. But, each Lok Sabha of independent India,
but is still high, even as the the question is, how representative is and analyse the variation in terms of
extent of electoral competition India’s Parliament? disproportional representation in Lok
has increased. India is a secular, democratic and Sabha over time. Moreover, we also
sovereign republic with a parliamentary examine whether all political parties
form of government. The government in have equally benefited (or lost) due to
India is federal in structure. At the natio­ disproportional representation.
nal level, India has two main governing We find that there are large discrep­
bodies - the House of the People (Lok ancies between seat and vote shares
Sabha) and Council of States (Rajya of political parties in each of the Lok
Sabha). Similarly at the state level there Sabhas, particularly during the pre­
are two main bodies - Legislative As­ liberalisation era of the Indian economy.
sembly (Vidhan Sabha) and Legislative In the post-liberalisation era, dispropor-
Council (Vidhan Parishad). Members of tionality in Lok Sabha has reduced from
Lok Sabha are the representatives of that in the earlier period, but has
people chosen by direct election on the remained sufficiently high. Interestingly,
basis of adult suffrage. Normally, general we observe an increasing trend in the
election for Lok Sabha takes place after extent of competition in elections among
every five years throughout India.1 In the political parties during the period of
any constituency generally several can­ study, which has gathered momentum in
didates contest the election and voters the post-liberalisation period. Analysis
supposedly cast their votes according to also reveals that the discrepancy bet­
their preferences over the candidates ween shares of seats and votes largely
and/or the political parties. favours the ruling party, whereas the
Indian electoral system is charact­ opposition parties failed to reap the full
erised by the “winner takes it all” or benefit of their voters’ base.
the “first-past-the-post” ( f p t p ) system. The findings of the article point out
According to this system, the contestant the limitations of the proposed electoral
with the highest number of votes wins law reform in India. The focus of the
Arun Kaushik is pursuing research at the the election, no matter how many votes Core Committee on Electoral Reforms
University of Bologna, Italy. Rupayan Pal the winner got and what is the winning (2010), as documented in the Back­
(rupayan@igidr.ac.iri) is at Indira Gandhi
margin. For example, suppose there are ground Paper on Electoral Reforms, is
Institute of Development Research, Mumbai.
100 people voting for one seat and they limited to some selected issues, such as
74 may 12, 2012 vol x l v ii n o 19 E3SQ 1 Economic & Political w e e k l y

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :01:10 UTC
All use subject to https://about.jstor.org/terms
NOTES
the criminalisation of the political sys­ Lok Dal ( b ld ) came to power with a easy to observe that, higher is the extent
tem, financing of elections, role of politi­ majority in seat terms in the Lok Sabha. of disproportional representativeness,
cal parties and matters related to con­ Thus, it became clear that India’s politi­ higher is d i s p r . Therefore, d i s p r can be
duct and management of elections. cal system was no more characterised by considered as a measure of dispropor­
There is no doubt about the need to a single party dominance. The electoral tional representativeness.
bring appropriate changes in the elec­ system became multipolar. Soon after
toral law in order to address these is­ the assassination of Indira Gandhi, i n c (2) Electoral Competition: One may
sues, but that does not appear to be suf­ came into power with a very high major­ argue that, if the number of political
ficient to pave the way for truly repre­ ity, winning 414 (more than 76%) seats parties increases, competition would be
sentative governments. The present study in Lok Sabha. Once again i n c became higher. However, note that all parties are
highlights the importance to change the the single most powerful party. But, sim­ not necessarily equally strong. It is wide­
f p t p system of representation appropri­ ilar to the previous rollback, the i n c was ly observed that there are variations
ately. Otherwise, India may experience voted out as the United Front won in the across political parties both in terms of
relatively more fair and free elections in 1989 elections, which marked the begin­ (a) number of seats won, and (b) their
future, but not adequately representa­ ning of the third electoral regime in In­ voters’ support base. It indicates that
tive governments. dia. The effect of fragmentation of larg­ increase in number of political parties
er political parties and emergence of contested does not necessarily mean in­
Political Swings at the Centre various regional political parties in India crease in electoral competition. Relative
The first five Lok Sabhas in India were started playing a crucial role in forma­ sizes of the political parties should be
dominated by the then single largest tion of government during the third taken into account while measuring
party, Indian National Congress ( in c ) . regime, which left no other option but to electoral competition. The percentage of
The major change came only in 1977 have potentially unstable coalition gov­ seats won or the percentage of votes re­
elections when a non-Congress govern­ ernments in each of the Lok Sabhas ceived by a political party can be viewed
ment was formed at the centre. How­ starting from 1989 till date. as the size of that political party. Thus,
ever, the non-mc government could not the effective number of political parties
continue for long. The i n c came back to The Indicators (e n p ), which is defined as follows, can
power in the next elections itself. In this section, we describe the method­ be considered as an appropriate meas­
According to Yadav (1999), the post­ ologies to quantify the extent of dispro- ure of electoral competition (Laakso and
independence period can be broadly di­ portional representativeness in elected Taagepera 1979).
vided into three electoral regimes on the bodies and intensity of competition 2
basis of electoral outcomes. When there faced by political parties in elections. ENP = i l sj
jeP I v
is replacement of the old pattern of an \ keP KI

electoral outcome with a new one, we (1) Disproportional Representative­ In the above formula, s. denotes the
may call that as regime change. For ex­ ness: A political system may be said to number of seats won by the ;-th party
ample, if a single party rules for a long be perfectly representative, if each par­ and P is the set of political parties. Clearly,
period of time and suddenly the party ty’s seat share in the elected body is e n p takes into account the relative sizes
loses in elections, it is termed as a equal to its vote share. On the other of the political parties, e n p can be inter­
change in electoral regime. In this sense hand, if only one party gets all the seats preted as the number of hypothetical
we may call the period from 1952 to 1967 without any voter’s support, the political equal sized parties that would have the
as first electoral regime, since i n c was system is not at all representative, i e, same total effect on electoral competi­
the main political party which ruled dictatorial. Following this, Gallagher tion as have the actual parties of un­
most of the states and had the highest (1991) proposes the following index of equal size. It is evident that the lowest
representation in Lok Sabha during that disproportional representativeness where possible value of e n p is one, when only
period. The 1967 Lok Sabha elections Sj denotes the number of seats of politi­ one party wins all the seats. On the other
signalled the end of domination of i n c . cal party; in the elected body, v. denotes extreme, if all the parties win equal
From a large representation of 361 seats the number of votes received by the ;-th number of seats, e n p is equal to the
of i n c in Lok Sabha in 1962 elections, the political party and P denotes the set of number of parties. Clearly a higher value
representation fell to 281 seats in the Lok political parties contested. of e n p indicates more intense competi­
Sabha 1967 elections. Furthermore, there tion among political parties in election.
is a fall of 4% in the vote share of i n c , A number of papers have used e n p as the
from 44.72% in 1962 elections to 40.78% measure of electoral competition (see
in 1967 elections. In the Lok Sabha elec­ Clearly, d i s p r takes the value zero, if for example, Chhibber and Nooruddin
tions of 1971 with the resurgence of Con­ the political system is perfectly repre­ 2004; Bortolotti and Pinotti 2008).
gress, winning 352 seats, it seemed that sentative. On the other extreme, if there Note that e n p can also be measured
the i n c regained its control. But in the is dictatorship, d i s p r takes value 1 0 0 . by considering share of votes received by
subsequent elections in 1977 Bharatiya Therefore, we have d i s p r €[0 ,100 ]. It is a party as its size. In that case, we need
Economic &Political w e e k l y BflSl m a y 12, 2 0 1 2 vol x l y ii n o 19 75

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :01:10 UTC
All use subject to https://about.jstor.org/terms
NOTES^ = —

to replace s;. by v . in the above formula, Figure 1: Trends of ENP, ENPvand DISPR: 1951-2009
where v. denotes the number of votes
achieved by the ;-th party. We denote
the e n p based on vote share by e n p v.
Needless to mention here that the inter­
pretation of e n p v and its lower bound
and upper bound remains the same as
that of e n p based of seat share. However,
note that e n p and e n p v need not neces­
sarily be the same, unless vote share and
seat share of all parties are the same.
This is because, in democracies like
India, distribution of votes among the
political parties is generally quite differ­
ent from the distribution of seats among
the political parties. Prior to 1989, the total number of parties increased from about two during the
contested in Lok Sabha election was pre-1989 period to about five (six) during
Lok Sabha: 1951-2011 close to 35 on an average, thereafter the 1989-2009. The increase has been from
Let us now turn to examine the extent of average increased to as high as about four in the pre-1989 period to about six
disproportional representation in Lok 200 during 1989-2009. In fact, the total during 1989-2009 in vote share terms. It
Sabha and the extent of competition number of parties contested in the 2009 implies that the extent of electoral com­
among political parties. Table i reports Lok Sabha elections was as large as 364. petition among political parties has in­
the constructed indices - e n p , e n p v and Based on this observation, one might be creased at a much lower rate than the
d i s p r - along with the total number of tempted to conclude that the average rate of increase in number of political
political parties and the number of na­ intensity of competition in Lok Sabha parties. It seems to support the view that
tional level political parties2 contested elections during 1989-2009 became 462% there has been significant “proliferation
elections in each of the 15 Lok Sabhas. It higher than that in pre-1989 period. of non-serious parties”, which justifies
is noteworthy that the number of nation­ However, such a conclusion is incorrect, the reformulation of criterion for regis­
al political parties in India has remained since the average of e n p ( e n p v) has tration and deregistration of political
Table 1: Competition among Political Parties, Disproportional Representation and Number parties as proposed in by the Core Com­
of Political Parties: 1951-2009 mittee on Electoral Reforms (2010) in the
Year of Election LokSabha ENP ENPv DISPR Total Number Number of
National Parties
Background Paper on Electoral Reforms.
of Parties
1951 1 1.78 4.06 22.61 54 14 Nonetheless, note that the extent of
1957 2 1.73 3.46 21.76 16 4 competition among political parties has
1962 3 1.84 4.18 21.54 28 6 increased over time (Figure 1), which is
1967 4 3.12 4.73 11.19 26 7 supposed to be good for democracy
1971 5 2.12 4.48 18.67 54 8 compared to a single party being the
1977 6 2.63 3.36 10.75 35 5 pole against which all other political
1980 7 2.16 4.17 19.86 37 6
formations are defined. But, increased
1984 8 1.69 3.84 21.99 34 7
9 4.11 4.74 8.40 8
competition led by substantial fragmen­
1989 114
1991 10 3.60 5.10 7.80 146 9 tation of political parties, as observed
1996 11 5.82 6.92 8.09 210 8 during last two decades, can make it
1998 12 . 5.27 6.88 6.81 177 7 difficult to form and run a stable gov­
1999 13 5.86 6.70 9.16 170 7 ernment, as experienced during the
2004 14 6.52 7.46 5.35 216 6 third electoral regime in India. There­
2009 15 5.00 7.59 8.23 364 7 fore, it seems to be necessary to look at
Average in pre-1989 period 2.13 4.04 18.55 35.50 7.13
the mechanisms to regulate political
Average during 1989-2009 5.17 6.48 7.69 199.57 7.43
parties and their conducts taking in to
p value for t test for the difference 0.000 0.000 0.000 0.000 0.805
Percentage increase of average account both the positive and negative
for the period 1989-2009 from that effects of multiparty political system.
in pre-1989 period 142.23 60.70 -58.53 462.17 4.26
Now, from column 4 of Table 1, it is
more or less stagnant over time, while increased by a much lower amount - evident that in each of the Lok Sabha
the total number of political parties from 2.13 (4.04) during pre-1989 period in independent India there has been
contested elections has an increasing to 5.17 (6.48) during 1989-2009. In other disproportional representation. In other
trend over time with a major shift in words, effectively the number of equal words, India has never had a truly
1989 (see the last two columns in Table 1). sized parties based on seat share has representative Lok Sabha. Needless to
76 MAY 1 2 , 2 0 1 2 v o l x l v i i n o 19 DDE3 Economic & Political w e e k ly

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
NOTES
mention here, ideally d i s p r should take democracy or not. This is because, as main ruling party that has always bene­
the value zero. That is, in the ideal situa­ discussed before, increased competition fited from disproportional representation
tion, the relative strengths of political among political parties may lead to in Lok Sabha, starting from the very be­
parties in Lok Sabha should be at par unstable governments. Therefore, there ginning. See Table 2 for the main ruling
with their support base reflected through is a need to address the problem of party’s percentage of seats in Lok Sabhas,
the percentage of votes received in elec­ disproportional representation more percentage of votes in favour of the ruling
tion. A positive value of d i s p r implies directly, possibly by deviating away party and the difference between the two.
that there is a disproportionality between from the f p t p system of representation. From the above discussion it appears
the seat and vote shares of parties in Lok When there is disproportional repre­ that, given the f p t p system of represen­
Sabha; i e, some parties have got propor­ sentation in Lok Sabha, it is natural to tation, it is not sufficient for a political
tionately more seats than the proportion ask which political party gains due party to enhance its support base in
of votes in their favour, while the percent­ to disproportional representation. Note order to form the government. Political
age of votes was greater than the percent­ that, if a set of political parties (or any parties need to take into account the
age of Lok Sabha seats for some other Table 2: The Main Ruling Political Party's Seat Share, Vote Share and the Difference
political parties. In other words, a posi­ Year of Election Main Ruling Party Seat Share (%) Vote Share (%) Difference between
Seat Share and Vote Share
tive value of d is p r indicates that the
1951 Indian National Congress 7 4 .2 8 4 4 .9 9 2 9 .2 9
strength of some political parties in Lok
1957 Indian National Congress 75.1 0 47.7 8 27.32
Sabha was greater than their actual
1 96 2 Indian National Congress 7 3 .0 8 4 4 .7 2 2 8 .3 6
strength determined by the share of 1 96 7 Indian National Congress 5 4 .4 2 1 3 .6 4
4 0 .7 8
votes polled in their favour. That is, sup­ 1971 Indian National Congress 67.95 4 3 .6 8 2 4 .2 7
porters of some political parties have 1 97 7 Bharatiya Lok Dal 5 4 .4 3 4 1 .3 2 13.11
been more represented, by getting dis­ 1 9 8 0 Indian National Congress(l) 6 6 .7 3 4 2 .6 9 2 4 .0 4
proportionately more number of Mem­ 1 9 8 4 Indian National Congress 7 6 .5 2 4 8 .1 2 2 8 .4 0
bers of Parliament, in the Lok Sabhas at 1 98 9 Janata Dal 0 .2 7 0 0.1 78 0 .0 9 2
the expense of the supporters of other 1991 Indian National Congress 4 5 .6 9 3 6 .4 0 9 .2 9

political parties, which is undesirable in 1 9 9 6 Bharatiya Janata Party 2 9 .6 5 2 0 .2 9 9 .3 6


1998 Bharatiya Janata Party 3 3 .5 2 2 5 .5 9 7.93
a representative democracy.
1999 Bharatiya Janata Party 3 3 .5 2 2 3 .7 5 9 .7 7
Further, we observe that, though there
2004 Indian National Congress 2 6 .7 0 2 6 .5 3 0.17
are some variations in d i s p r across the
2009 Indian National Congress 3 7 .9 4 2 8 .5 5 9 .3 9
Lok Sabhas, it was close to 20 in most of
the first eight Lok Sabhas, with 18.55 as one political party) gain(s) due to dispro­ mechanism of government formation
the average during this period. In the lat­ portional representation, the other set of appropriately and attempt to reap the
ter period, i e, in the third electoral regime political parties (or at least one other benefit from disproportional representa­
1989-2009, there was a slightly declining political party) are (is) bound to lose. tion. In other words, political parties can
trend of d i s p r (Figure 1). Nonetheless, it Therefore, the question is as follows. Does manipulate their election strategy to
remained sufficiently high, with the aver­ the (main) ruling party benefit from reap the undue benefit of disproportional
age d is p r close to eight, in the third elec­ disproportional representation? Or, is it representation due to the existing f p t p
toral regime as well. just the other way round? Analyses re­ representation system. It is worth men­
It is interesting to note that competition veal that it is the political party with the tioning here again that disproportional
among political parties measured by e n p largest seat share in Lok Sabha that representation in elected bodies is detri­
and e n p v has increased steeply during gains from the disproportional represen­ mental for democracy. This is particu­
the third electoral regime, along with tation at the expense of the political larly so when there is disproportional
the steady increase in total number of party with the second largest seat share. representation in the highest law mak­
political parties. The correlation coeffi­ Moreover, as expected, the political party ing body, Lok Sabha, of the country.
cient between e n p and d i s p r is also with the largest seat share was also the
found to be large and negative (-0.88).3 main ruling party in each of the Lok Concluding Remarks
It seems to suggest that increase in com­ Sabhas, except in the ninth Lok Sabha. This note addressed the following ques­
petition among political parties and dis- In the ninth Lok Sabha, which lasted for tions in order to examine the implica­
proportional representation are nega­ merely one and half years (December tions of the existing f p t p system of rep­
tively associated. However, it remains 1989-June 1990), i n c was the opposition resentation in India. How representative
ambiguous whether enhanced competi­ party in spite of being the party with the is Indian democracy? Is there any dis­
tion among political parties through largest seat share (37.24%). Interestingly, proportionality between seat share and
appropriately designed mechanism to in 1989 elections, i n c received 39. 53% of vote share of political parties in Lok
regulate political parties, in the hope of votes, which is higher than i n c ’s per­ Sabha? If yes, to what extent? Is there
reducing disproportional representation centage of seats in the ninth Lok Sabha. any relation between the extent of dis­
in elected bodies, can be beneficial for Therefore, it so turned out that, it is the proportional representation and the
Economic & Political w e e k ly BBSS m a y 12, 2012 v o l x l v i i n o 19 77

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
NOTES
extent of electoral competition among competition is negatively associated with least four members to the House of the People
at the aforesaid last general election from any
political parties? Analysing data on the the extent of disproportional representa­ State or States; or (B) (i) its candidates have
15 Lok Sabha elections, which independ­ tion. However, it is likely to invite seri­ been elected to the House of the People, at the
last general election to that House, from at
ent India so far had, we find that India ous problems, if political parties are reg­ least 2% of the total number of parliamentary
never had any truly representative Lok ulated in order to achieve higher e n p constituencies in India, any fraction exceeding
one-half being counted as one; and (ii) the
Sabha. The extent of disproportional with the ultimate objective of reducing said candidates have been elected to that
representation, measured by d i s p r , was d i s p r . The reason is, higher e n p may im­ House from not less than three states. (Source:
The Registration of Electors Rules, i960 pub­
quite large in each of the Lok Sabhas, ply greater instability and/or more re­ lished by Ministry of Law, Government of India,
though d i s p r has registered a decreas­ stricted functioning of the government, New Delhi.
3 The correlation coefficient between ENPVand
ing trend since the ninth Lok Sabha elec­ as observed during the last two decades DISPR i s -0.75.
tion in 1989. Moreover, it is found that in India. Therefore, it seems to be essen­ 4 See Zimmerman (1994) for a lucid discussion
on implications of alternative system of repre­
the main ruling party in any Lok Sabha tial to address the problem of dispropor­ sentation in democracies from theoretical
has always managed to get dispropor­ tional representation directly. To this point of view.
tionately higher percentage of seats in effect, it seems to be necessary to shift
Lok Sabha compared to the percentage away from the f p t p system of represen­ REFERENCES______________ ________________
of votes polled in their favour in general tation and adopt a carefully designed Bortolotti, B and P Pinotti (2008): “Delayed Priva­
elections. Therefore, in India it has al­ Proportional Representation system,4 tisation”, Public Choice, 136 (3-4): 331-35.
Chhibber, P and I Nooruddin (2004): “Do Party
ways been the case that a preference which is also likely to induce the political Systems Count? The Number of Parties and
from a minor section of the voters is parties to be more accountable to citizens Government Performance in the Indian States”,
Comparative Political Studies, 37(2): 152-87.
dominant in the highest lawmaking of the country as well as strengthen
Gallagher, M (1991): “Proportionality, Dispropor-
body - the Lok Sabha - which is essen­ Indian democracy by making it more tionality and Electoral Systems”, Electoral
tially due to the existing f p t p system of firmly consociational (Lijphart 1996). Studies, 10(1): 33-51*
Laakso, M and R Taagepera (1979): “The Effective
representation. Needless to mention Number of Parties: A Measure with Application
here that such disproportional represen­ n o t e s _____________________________________ to West Europe”, Comparative Political Studies,
12(1): 3-27.
tation in elected bodies is undesirable in 1 On the other hand, members of Rajya Sabha
are elected by the method of indirect election, Lijphart, A (1996): “The Puzzle of Indian Democracy:
any democracy. Thus, there is need to by the elected members of Vidhan Sabhas of A Consociational Interpretation”, American
reform the system of electoral represen­ states, in accordance with the system of pro­ Political Science Review, 90(2): 258-68.
portional representation. The Core Committee on Electoral Reforms (2010):
tation in India. Background Paper on Electoral Reforms (Legis­
2 A political party shall be treated as a recog­
This note also demonstrates that con­ nised National party, if, and only if - either lative Department Ministry of Law and Justice,
Government of India, New Delhi).
sideration of total number of political (A) (i) the candidates set up by it, in any four
or more states, as the last general election to Yadav, Y (1999): “Electoral Politics in the Time of
parties, which contested elections, as the House of the People, or to the Legislative Change: India’s Third Electoral System, 1989-99”,
the proxy for electoral competition Assembly of the State concerned, have secured Economic & Political Weekly, 34(34/35): 2393-99.
not less than 6% of the total valid votes polled Zimmerman, J F (1994): “Alternative Voting Sys­
among political parties would lead to in their respective states at that general elec­ tems for Representative Democracy”, PS: Poli­
misleading results. It is observed that tion; and (ii) in addition, it has returned at tical Science and Politics, 27(4): 674-77.
there is phenomenal upsurge in total
number of political parties during last
two decades. To be specific, the average Economic&PoliticalwEEKLY
of total number of political parties con­ UNIVERSAL HEALTH COVERAGE
tested Lok Sabha election has increased February 25,2012
from 35 in pre-1989 period to as large as Universal Health Coverage in India: A Long and W inding Road - Gita Sen
199 during the period 1989-2009. How­ Thailand's Universal Health Coverage Scheme - Viroj Tangcharoensathien,
ever, the average of the number of Rapeepong Suphanchaim at,
hypothetically equal sized parties on the Noppakun Thammatacharee,
W alaiporn Patcharanarum ol
basis of seat share, i e, e n p , has increased
Medicines for All: Unexceptionable Recommendations - S Srinivasan
from 2.13 in pre-1989 period to 5.17 in
Political Challenges to Universal Access to Healthcare - R Srivatsan, Veena Shatrugna
the post-1989 period. It justifies the
A Limiting Perspective on Universal Coverage - Rama V Barn
reformulation of criterion for registration
Human Resources in Health: Timely Recommendations,
and deregistration of political parties as Some Lacunae and What about Implementation? - George Thomas
proposed in the Background Paper on Gender in the HLEG Report: Missed Opportunity - T K S undari Ravindran,
Electoral Reforms by the Core Committee M a nju R N air
on Electoral Reforms (2010). In Pursuit o f an Effective UHC: Perspectives Lacking Innovation - P adm anabh M Reddy
Interestingly, e n p has registered an For copies write to:
increasing trend during 1989-2009, as Circulation Manager,
opposed to the decreasing trend of d i s p r Economic and Political Wookly,
320-321, A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013.
during the same period. In other words,
email: drculation@epw.in
it seems that the extent of electoral
78 m ay 12, 2012 v o l x l v ii n o 19 BBSS Economic & Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:10 UTC
All use subject to https://about.jstor.org/terms
DISCUSSION

An Act of Transgression forgets to note that my criticism of Marx


is informed by many developments
within communist, socialist and ecolo­
gical movements after Marx rather than
ARUN K PATNAIK pre-Marx liberalism. But, more impor­
tantly, he argues as if “you are not with
A continuation of the appreciate Murzban Jal’s rejoinder Marx, you are against Marx”. I need not
discussion on “Leninism as
Radical ‘Desireology’”
( e p w , 24 September 2011).
I (“Anti-Marxism as Putrefied Theo­
logy”, e p w , 3 March 2012) to my re­
sponse (“A Critique of India’s Political
Secularism”, 22 October 2011) to his
repeat here that I am not with Marx for
several reasons. Yet, I would like to reit­
erate Hal Draper’s argument which has
been ignored by Jal: echoing Sweezy,
Murzban criticises this author’s paper (“Leninism as Radical ‘Desireo- just as comrades dialectically examine
response for expressing a cold logy’”, 24 September 2011) on two non-Marxists, so also non-Marxists should
counts, apart from setting a trend of examine Marx’s contributions dialecti­
war liberal psychology but he
healthy academic debate. First, he criti­ cally. But Draper adds the following: the
adopts the same psychology in cises me for what I know rather than followers of Marx should adopt a dialec­
his response and argues that if what I do not know. This is the best part tical critique of Marx as well. Thus,
“you are not with Marx, you are of his critique. Second, I also admire his instead of transcending cold war liberal
critique as he has not greeted my re­ psychology which is incidentally Lenin­
against Marx”.
sponse with a conspiracy of silence, usu­ ist phraseology as well, Jal returns to
ally seen in left-wing circles in India. But adopt the same against the critiques of
Jal accuses me for forgetting so many in­ the trio: “the monk, Don Juan and the
sights that are in his paper. He forgets to philistine”. Sudipta Kaviraj elsewhere
note that I ended my response by appre­ calls such tendency as transgression
ciating Jal’s attempt to criticise what he rather than transcendence.
metaphorically calls “the monk, Don Transgression takes place if a critic or
Juan and the philistine”, in a veiled ref­ an actor (like Bankim’s Kamalakanta,
erence to three forms of Stalinism repre­ for Kaviraj) intends to transcend an
sented by the Communist Party of India object/subject but returns to it in several
(c p i), the Communist Party of India forms without even knowing that such
(Marxist) (c p i (m )) and the Communist a strategy may smack of double stand­
Party of India (Marxist-Leninist Libera­ ards in theory/practice. Such a trans­
tion) (c p i(m l)) organisations, respec­ gressive moment is usually devoid of
tively. Due to a paucity of “discussion immanent criticism.
space”, I could not develop his ideas fur­ For, an author following a transgres­
ther. It remains so, for a potential cri­ sive method does not tell us any internal
tique of Indian Stalinism has not been strength or weaknesses of a theory or
developed by Jal; himself. practice. Jal’s critique does that. He does
not tell us if there are any useful insights
Transgression in my response which Jal may have to
I notice he tries to transcend liberal cold absorb and advise comrades to follow
war psychology in his rejoinder but re­ the same. That is why, following Kaviraj,
turns to it. I will give one illustration to I would like to call his critique an act of
support my argument. He criticises me transgression. He intends to transcend,
for carrying the cold war psychology of but fails to do so. His dialectical lan­
liberals against Marx, forgetting alto­ guage is a mere mantra.
gether that I appreciate Marx’s break­ Therefore, I think Jal’s paper reinforces
through for his mode of production per­ a theological spirit among the comrades
spective, rational dialectical method, in India: “Marx is always right”. That is
praxis-oriented history/theory and sexual indeed a cause for deep worry as he
division of labour preceding class seems to be an independent minded
Arun K Patnaik {akpatnaiki@ yahoo.com ) division of labour, an insight lost to us Marxist. I would not be surprised if our
teaches at the department of political science, for long due to our obsession with “the comrades refer to Jal’s rejoinder as an
University of Hyderabad.
monk or Don Juan or the philistine”. He exemplar of my anti-Marxism. Here, he
Economic & Political w e e k l y DD53 m ay 12, 2012 vol x l v ii n o 19 79

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:13 UTC
All use subject to https://about.jstor.org/terms
DISCUSSION
adopts the dialectical ritual usually fol­ in my defence. However, I would like to ask need to be challenged by movements
lowed by the Indian left. In the dialectic a question that Jal conveniently ignores: from below. That is what the new prob­
reasoning that Jal merely talks, there is why in the neo-liberal era, do political lematic of withering away of the state
no space for anti-Marxism or pro-Marx­ movements not talk about “withering means. This is not same as the anti-state
ism phraseology. If you take either/or away of the state”? Does the old slogan position which is popular among anar-
positions in dialectics, then you use dia­ of the communist movement have any chists/Marxist radicals who would like
lectics as a ritual or mantra. Following potency for a new political movement to abolish state power abruptly (Bakun­
dialectics, I would like to submit what challenging the neoliberal paradigm? I in) or gradually (Engels).
Hal Draper says: do not reject Marx out­ offer a “Yes answer”, provided we under­ For, the new problematic of withering
right and do not accept Marx blindly. stand the sense of Lenin before Leninism away of the state assumes that the state
That is what Marx follows in the case of or Gramsci. The state withers away by may still retain its speciality of func­
his predecessors, not contemporaries expanding itself: the state, due to pres­ tions, but it does not stand in separation
like J S Mill, a point made by Gerry Cohen. sure from below, must expand so much from civil society in order to dominate
We need to adopt the same dialectical that it overcomes/transcends its dual civil society on the one hand, and subal­
stance, while discussing his contribu­ characteristics of both standing apart tern society on the other. Both Lenin
tions as well. D D Kosambi made a simi­ from and against civil society, as argued and Gramsci thus expand Marx’s ideas.
lar point against Indian Leninism: it has by Marx. This may happen, as Gramsci So I submit that the expansion of the
substituted Marx’s method for his for­ shows, only when the subaltern societies state must be viewed from the point of
mulations and it relies on his formula­ are absorbed within new civil society. civil society and subaltern societies
tions as mantra to browbeat enemies For, the old civil society aided by the rather than from the point of the state
(i e, o m which stands for “official Mar­ state excludes the subaltern societies. itself. This is one of the original contri­
xists” including independent Marxists Also, this may happen when the state butions (or revisions which Jal may not
like the Royists). too is absorbed or what Gramsci calls like to know) of Lenin before Leninism
the return of the state to the domain and Gramsci after Leninism. I reject the
Towards an Expansive State within civil society by expanding the lat­ Leninist phraseology but accept Lenin
Last but not least, I would like to avoid a ter. As and when the state becomes an predating the birth of Leninism for
misunderstanding among the readers of expansive state (i e, the state ++), the which Lenin himself is partly responsi­
e p w . I concede that JaPs polemic against extreme state (state qua state) withers ble. No point in simply passing the buck
my idea of expansion of the State is prob­ away. Both domination and separation to Stalin and co. But this may involve
ably warranted as I offer no clarification of the state from civil/subaltern society another round of debate.

Economic&PoliticalwEEKLY
REVIEW OF WOMEN'S STUDIES
April 28,2012

State Policy and the Twelfth Plan through a Gender Lens - J Devika, M ary E John, Kalpana Kannabiran,
Sharmila Rege, Samita Sen, Padmini Swaminathan

Gendering the Twelfth Plan: A Feminist Perspective - M ridul Eapen, Aasha Kapur M ehta
Gender Responsive Budgeting in India: What Has Gone Wrong? - Yamini Mishra, Navanita Sinha
Ladlis and Lakshmis: Financial Incentive Schemes for the Girl Child -T V S e k h e r

Addressing Domestic Violence within Healthcare Settings: The Dilaasa Model - Padma Bhate-Deosthali,
T K Sundari Ravindran, U Vindhya

Beyond Feminine Public Altruism: Women Leaders in Kerala's Urban Bodies - J Devika, Binitha V Thampi

For copies write to:


Circulation Manager,
E conom ic a n d P o litic a l W e e kly,
320-321, A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013.
email: circulation@epw.in

m ay 12, 2012 vol x l v ii n o 19 Q 223 Economic & Political w e e k l y

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:13 UTC
All use subject to https://about.jstor.org/terms
CURRENT STATISTICS : EPW Research Foundation

The growth in the main monetary and banking indicators had sharply comedown as of end March 2012 over end March 2011 - the growth of M 3from 16.1% to 12.9% and that of bank credit to the commercial
sector from 21.35% to 16.8%. The growth in currency with the public fell from 18.8% to 12.6% and that of time deposits from 18.3% to 15.4%. The growth in demand deposits in fact turned negative by (-)
3.1% over a negligible increase of 0.7%.
Macroeconomic Indicators_______________________________________________________________________________________________________________
Variation (%): Point-to-Point
iiiu mnumuvr) ui nnviVMiv r rim
Weights March Over Full Financial Year
(BaseYear:2004-05 = 100)A
2012 Month 2011-12 2010-11 2009-10 2008-09 '2007-08 2006-07
2005-06 2004-05@ 2003-04@
All Commodities 100.0 159.8 0.9 6.9 9.7 10.4 1.6 7.7 6.7 5.7 5.4 5.4
Primary Articles 20.1 206.3 2.4 9.6 13.4 22.2 5.4 9.6 12.8 4.3 1.7 1.7
Food Articles 14.3 196.8 2.3 9.9 9.4 20.6 8.0 5.6 13.2 5.0 3.8 3.8
Non-Food Articles 4.3 189.1 1.3 -1.2 27.3 20.4 0.6 16.3 10.6 -3.5 -7.0 -7.0
Minerals 1.5 343.0 4.1 28.6 15.2 37.9 -2.8 28.2 13.818.5 - -
Fuel & Power 14.9 174.0 0.5 10.4 12.5 13.8 -3.4 7.4 1.117.3 10.4 10.4
Manufactured Products 65.0 142.2 0.4 4.9 7.4 5.3 1.7 7.1 6.3 3.5 5.0 5.0
Food Products 10.0 153.7 0.2 5.9 2.4 15.1 6.3 8.4 4.3 2.4 1.9 1.9
Food Index (computed) 24.3 179.1 1.6 8.5 6.8 18.5 7.3 6.7 9.6 3.9 3.0 3.0
All Commodities(Monthlyaveragebasis) 100.0 155.9 - 8.8 9.6 3.8 8.1 4.7 6.6 4.5 3.7 3.7
AThe date of first releaseof data based on 2004-05 serieswef 14 September 2010.@Full fiscal year variation isbased on 1993-94.
* Consequent upon the decisionof the Cabinet Committee on Economic Affairs (CCEA) held on 24January2012, weekly releaseofWholesale PriceIndex (WPI) for the commodities/items under the Groups "PrimaryArticles" and
"Fuel and Power" isdiscontinued with immediate effect. WPI shall, henceforth, be released on a monthly basisonly. The last WeeklyWPI for the week ending 14January2012.
Variation (%): Point-to-Point
Cost of Living Indicts Latest Over Over 12 Months Fiscal Year SoFar Full Fiscal Year
Month 2012 Month 2011 2010 2011-12 2010-11 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06
IndustrialWorkers(IW) (2001=100) 1992 0.5 7.6 8.8 7.6 .8.8 8.8 14.9 8.0 7.9 6.7 5.3
Agricultural Labourers (AL) (1986-87=100) 6253 0.6 (5.8 9.1 6.8 9.1 9.1 15.8 9.5 7.9 9.5 5.3
Note:Superscript numeral denotes month to which figure relates, e g, superscript 2 stands for February and 3 stands for March.
Variation
Monoy and Banking (Rscrore) 6 April Over Month Year-on-Year Fiscal Year So Far Full Fiscal Year
2012 2012-13 2011-12 2011-12 2010-11 2009-10
Money Supply (M,) 7547820 264780(3.6) 908230(13.7) 203750(2.8) 135470(2.1) 839950(12.9) 901410(16.1) 807898(16.8)
Currencywith Public 1037790 5880(0.6) 105940(11.4) 11200(1.1) 20020 (2 .2) 114760(12.6) 144340(18.8) 102040(15.3)
Deposits Money with Banks 6507140 258040(4.1) 801180(14.0) 192730(3.1) 117340(2.1) 725790(13.0) 757220(15.7) 707607(17.2)
of which: Demand Deposits 731670 61510(9.2) 70180(10.6) 31460(4.5) -61360(-8.5) -22640(-3.1) 4880(0.7) 129282(22.0)
Time Deposits 5775470 196530(3.5) 731000(14.5) 161270(2.9) 178700(3.7) 748430(15.4) 752340(18.3) 578325(16.4)
Net BankCredit to Government 2391510 27500(1.2) 455400(23.5) 30730(1.3) -47780(-2.4) 376890(19.0) 314700(18.9) 391857(30.7)
BankCredit to Commercial Sector 5033840 226250(4.7) 786710(18.5) 83560(1.7) 10450(0.2) 713600(16.8) 745280(21.3) 476507(15.8)
Net Foreign Exchange Assets 1513560 33660(2.3) 122210(8 .8) -10110(-0.7) -1990(-0.1) 130330(9.4) 111880(8.7) -70724(-5.2)
Banking Sector's Net Non-Monetary Liabilities 1405200 23020(1.7) 457470(48.3) -99560(-6.6) -174800(-15.6) 382230(34.1) 271890(32.0) -9012H0)
of which: RBI 582200 24630(4.4) 225580(63.3) -15330(-2.6) • -11730(-3.2) 229180(62.2) 66710(22.1) -86290(-22.2)
Reserve Money (20 April 2012) 1446490 31660(2.2) 100260(7.4) 19250(1.3) -30590(-2.2) 50420(3.7) 220240(19.0) 168582(17.1)
Net RBI Credit to Centre 547860 29870H 183150H 19170R -29330H 134650 180680 151589
Scheduled Commercial Banks (6 April 2012)
Aggregate Deposits 6095040 241670(4.1) 762800(14.3) 191380(3.2) 124260(2.4) 695680(13.4) 715150(15.9) 658720(17.2)
Demand 654200 55220(9.2) 68930(11.8) 31400(5.0) -56430(-8.8) -18900(-2.9) -3900(-0.6) 122515(23.4)
Time 5440840 186450(3.5) 693870(14.6) 159980(3.0) 180700(4.0) 714590(15.6) 719050(18.7) 536195(16.2)
Investments (for SLRpurposes) 1811890 46760(2.6) 240090(15.3) 75250(4.3) 70180(4.7) 235020(15.7) 116870(8.4) 218340(18.7)
BankCredit 4693570 206890(4.6) 740270(18.7) 81940(1.8) 11210(0.3) 669540(17.0) 697300(21.5) 469241(16.9)
Non-Food Credit 4614110 211270(4.8) 710740(18.2) 83780(1.8) 25560(0.7) 652520(16.8) 681510(21.3) 466961(17.1)
Commercial Investments 168810 -2840(-1.7) 29220(20.9) -2710(-1.6) -8010(-5.4) 23920(16.2) 29529(25.0) 11654(11.0)
Total BankAssistanceto Comml Sector 4782920 208430(4.6) 739960(18.3) 81070(1.7) 17550(0.4) 676440(16.8) 711039(21.5) 478615(16.9)
Note: Government Balancesason 31 March 2012 are beforeclosureof accounts.
Indax Numbars of Industrial Production February* Fiscal Year So Far Full Fiscal Year Averages
(Base2004-05=100) Weights 2012 2011-12 2010-11 2010-11 2009-10 2008-09 2007-08 2006-07
General Index 100.00 174.9(4.1) 168.7(3.5) 163.0(8.1) 165.4(8.2) 152.9(5.3) 145.2(2.5) 141.7(15.5) 122.6(12.9)
Mining 14.157 134.8(2.1) 126.5(-2.1) 129.2(5.8) 131.0(5.2) 124.5(7.9) 115.4(2.6) 112.5(4.6) 107.6(5.2)
Manufacturing 75.527 186.5(4.0) 179.3(3.7) 172.9(8.7) 175.6(8.9) 161.3(4.8) 153.8(2.5) 150.1(18.4) 126.8(15.0)
Electricity 10.316 145.1(8.0) 148.4(8.7) 136.5(5.4) 138.0(5.6) 130.8(6.1) 123.3(2.8) 120.0(6.4) 112.8(7.3)
* Indicesfor the month are Quick Estimates.
Fiscal Year So Far 2011-12 End of Fiscal Year
Capital Markat 27 April 2012 Month Ago Year Ago Trough Peak Trough Peak 2011-12 2010-11 2009-10
BSESensitive Index (1978-79=100) 17134(-11.9) 17257 19449(9.9) 17095 17597 15175 19702 17404(-9.8) 19445(10.9) 17528(80.5)
BSE-100 (1983-84=100) 8982(^11.5) 9064 10152(7.8) 8982 9296 7805 10262 9164(-8.6) 10096(8.6) 9300(88.2)
BSE-200 (1989-90=100) 2112(-12.1) 2133 2403(7.4) 2112 2190 1824 2427 2158(-8.8) 2379(8.1) 2200(92.9)
S&P CNX Nifty (3 Nov 1995=1000) 5191(-11.0) 5243 5834(9.9) 5189 5359 4544 5912 5296(-8.5) 5834(11.1) 5249(73.8)
Skindia GDR lndex(2 Jan 1995=1000) 2199(-31.1) 2358 3190(10.0) 2185 2405 1875 3441 2316(-26.5) 3151(9.3) 2883(134.2)
Net Fll Investment in (US $ Mn Equities) - period end 110323(6.9) 110655 103239(30.6) - - 110465(9.1) 101454(31.5) 77159(43.1)
February* Fiscal Year So Far Full Fiscal Year
Foreign Trada 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
2012 2011-12 2010-11 2010-11
Exports: Rscrore 121040 1274840(27.0) 1003785(33.2) 1118823(32.3) 845534(0.6) 840754(28.2) 655863(14.7) 571779(25.3) 456418(21.6) 375340(27.9)
US$mn 24618 267410(21.4) 220241(39.0) 245868(37.5) 178751(-3.5) 185295(13.6) 163132(29.0) 126361(22.6) 103091(23.4) 83536(30.8)
Imports: Rscrore 195595 2069643(35.3) 1529295(24.4) 1596869(17.1) 1363736(-0.8) 1374434(35.8) 1012312(20.4) 840506(27.3) 660409(31.8) 501065(39.5)
US$mn 39782 434160(29.4) 335502(29.7) 350695(21.6) 288373(-5.0) 303696(20.7) 251654(35.5) 185749(24.5) 149166(33.8) 111517(42.7)
Non-POL 27122 301599(24.9) 241491(33.9) 249006(23.7) 201237(-4.2) 210029(22.2) 171940(33.5) 128790(22.4) 105233(37.1) 76772(33.2)
Balance ofTrade: Rscrore -74555 -794803 -525510 -478047 -518202 -533680 -356449 -268727 -203991 -125725
US$mn -15164 -166750 -115261 -104827 -109621 -118401 -88522 -59388 -46075 -27981
* Provisional fiaures.
Variation Over
Foreign Exchange Reserves (excluding
20 April 22 April 31 Mar Fiscal Year So Far Full Fiscal Year
gold but including revaluation effects)
2012 2011 2012 Month Ago Year Ago 2012-13 2011-12 2011-12 2010-11 2009-10 2008-09 2007-08
Rscrore 1376310 1257004 1353370 31320 119300 22940 11720 108086 73038 -57826 33975 359500
USSmn 264676 283748 264538 487 -19073 138 4849 -14361 19208 18264 -57821 107324
Figures inbrackets are percentage variations over the specified or over the comparable period of the previous year. (-) not relevant.
[Comprehensivecurrent economicstatisticswith regular weekly updates, asalsothe thematic notes and Special Statisticsseries, areavailable on our website: http://www.epwrf.in].

Economic & Political w e e k l y MAY 1 2 , 2 0 1 2 VOL XLVII NO 19 8l

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:14 UTC
All use subject to https://about.jstor.org/terms
Money an d Banking: Trends and Key Ratios (RsCrore)
Outstanding* Variations
2011-12 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
M, 7344070 143214 189046 185135 219605 287716 245773 478097 586547 701789 776930 807898 901410 839950
(14.6) (16.8) (14.1) (14.7) (16.7) (12.3) (21.2) (21.5) (21.2) (19.3) (16.8) (16.1) (12.9)
Components: Currency with the public 1026590 20138 20468 31245 30786 43390 40891 57258 69786 85504 97040 102040 144340 114760
(11.9) (10.8) (14.9) (12.8) (16.0) (13.0) (16.1) 06.9) (17.7) (17.1) (15.3) (18.8) (12.6)
Demand deposits with banks 700210 13293 16589 12929 19558 59869 26529 121233 69299 102685 10316 129282 4880 -22640
(9.7) (11.1) (7.8) (10.9) (30.1) (10.3) (42.5) (17.1) (21.6) (1.8) (22.0) (0.7) -(3.1)
Time deposits with banks 5614200 110486 151393 141741 168867 182581 176994 299216 446834 512042 673059 578325 752340 748430
(16.4) (19.4) (15.2) (15.7) (14.7) (12.4) (18.7) (23.5) (21.8) (23.5) (16.4) (18.3) (15.4)
Other deposits with RBI 3050 -703 596 -779 392 1877 1967 -218 628 1558 -3484 -1770 -150 -600
-(18.8) (19.7) -(21.5) (13.8) (57.9) (38.4) -(3.1) (9.1) (20.8) -(38.5) -(31.8) -(3.9) -(16.4)
Sources: Net bank credit to government 2360780 54701 70577 77610 86958 66381 13862 9829 70969 61954 377815 391857 314700 376890
(14.1) (16.0) (15.2) (14.7) (9.8) (1.9) (1.3) (9.3) (7.4) (42.0) (30.7) (18.9) (19.0)
RBI 529670 -4276 5614 -1699 -31499 -75772 -62882 26111 -2384 -118961 174789 150010 184960 133120
-(2.8) (3.8) -(1.1) -(20.7) -(62.8) -(140.0) -(145.3) -(29.3) -(2068.2) -(154.4) (243.6) (87.4) (33.6)
Centre 528680 -5587 6705 -5150 -28399 -76065 -60178 28418 -3024 -116772 176397 151589 180680 134650
-(3.8) (4.8) -(3.5) -(20.1) -(67.3) -(163.0) -(122.2) -(58.6) -(5466.9) -(153.9) (245.4) (84.7) (34.2)
Other banks 1831110 58977 64963 79309 118457 142152 76745 -16283 73354 180915 203026 241847 129740 243770
(25.2) (22.2) (2 2 .1) (27.1) (25.6) (11.0) -(2.1) (9.7) (21.7) (20.0) (19.9) (8.9) (15.4)
Bank credit to commercial sector 4950280 90574 92654 80429 139334 117170 264098 412756 437073 448911 435904 476507 745280 713600
(18.3) (15.8) (11.8) (18.3) (13.0) (26.0) (32.2) (25.8) (21.1) (16.9) (15.8) (21.3) (16.8)
RBI 3960 3044 -1984 -7357 -2881 -987 -671 -3 150 251 12032 -12490 840 1790
(24.9) -(13.0) -(55.4) -(48.6) -(32.4) -(32.6) -(0.2) (10.8) (16.3) (672.9) -(90.4) (63.2) (82.5)
Other banks 4946320 87530 94638 87786 142214 118157 264770 412758 436923 448661 423873 489006 744430 711810
(18.1) (16.6) (13.2) (18.9) (13.2) (26.1) (32.3) (25.8) (21.1) (16.4) (16.3) (21.3) (16.8)
Net foreign exchange assets of banking sector 1523670 27795 44171 61216 82679 132872 122669 76940 186985 381951 57053 -70724 111880 130330
(15.6) (21.5) (24.5) (26.6) (33.7) (23.3) (11.9) (25.7) (41.8) (4.4) -(5.2) (8.7) (9.4)
Govt's currency liabilities 14110 732 776 1012 705 224 153 1306 -494 963 832 1215 1460 1380
(19.0) (17.0) 08.9) (11.1) (3.2) (2.1) (17.5) -(5.6) (11.7) (9.0) (12.1) (13.0) (10.8)
Banking sectors net non-monetary liabilities 1504760 30588 19132 35132 90072 28931 155008 22732 107987 191992 94672 -9012 271890 382230
(36.7) (16.8) (26.4) (53.5) (11.2) (54.0) (5.1) (23.2) (33.5) (12.4) -(1.0) (32.0) (34.1)
of which: Net non-monetary liabilities of RBI 597530 9682 9123 21875 25922 -19557 12191 4224 56348 29873 177709 -86290 66710 229180
(16.0) (13.0) (27.6) (25.6) -(15.4) (11.3) (3.5) (45.4) (16.6) (84.5) -(22.2) (22.1) (62.2)
Important Monetary Ratios (%)
Year-End: Currency/M3 16.8 16.0 16.1 15.8 15.7 15.8 15.1 14.6 14.1 13.9 13.7 14.0 14.0
Aggregate Deposits/M3 82.9 83.8 83.7 84.0 84.0 83.9 84.6 85.2 85.6 86.0 86.2 85.9 86.0
Currency/Net Foreiqn Exchanqe Assets 91.9 83.9 77.4 69.0 59.8 54.8 56.9 52.9 43.9 49.2 59.9 65.4 67.4
Incremental: Currency/M3 14.1 10.8 16.9 14.0 15.1 16.6 12.0 11.9 12.2 12.5 12.6 16.0 13.7
Aggregate Deposits/M3 86.4 88.9 83.5 85.8 84.3 82.8 87.9 88.0 87.6 88.0 87.6 84.0 86.4
Currency/Net Foreiqn Exchanqe Assets 72.5 46.3 51.0 37.2 32.7 33.3 74.4 37.3 22.4 170.1 -144.3 129.0 88.1
Reserve Money (RM): Reserve Money 1427240 21269 22757 34659 31090 67451 52623 83920 135935 219312 59696 168582 220240 50420
(8.2) (8.1) (11.4) (9.2) (18.3) (12.1) (17.2) (23.7) (30.9) (6.4) (17.1) (19.0) (3.7)
Currency in circulation 1067890 21215 21144 32769 31499 44555 41633 62015 73523 86601 100354 105186 153320 118230
(12.1) (10.7) (15.0) (12.6) (15.8) (12.7) (16.8) (17.1) (17.2) (17.0) (15.2) (19.3) (12.4)
Bankers'deposits with RBI 356290 757 1017 2670 -801 21019 9631 21515 61784 131152 -37172 64915 67320 -67220
(0.9) (1.3) (3.3) -d.o) (25.2) (9.2) (18.9) (45.6) (66.5) -01.3) (22.3) (18.9) -(15.9)
Net foreign exchange assets of RBI 1472190 27926 31295 66794 94276 126169 128376 60193 193170 369977 43986 -45086 93530 143630
(20 .2 ) (18.9) (33.9) (35.7) (35.2) (26.5) (9.8) (28.7) (42.7) (3.6) -(3.5) (7.6) (10.8)
Money Multiplier (M ,/RM ) (in multiples)
Year-End 4.0 4.3 4.4 4.7 4.6 4.6 4.8 4.7 4.3 4.9 4.8 4.7 5.1
Incremental 6.7 8.3 5.3 7.1 4.3 4.7 5.7 4.3 3.2 13.0 4.8 4.1 16.7
Scheduled Commercial Banks*
Aggregate Deposits 5903660 99320 149273 140742 177493 223563 195782 408851 502885 585006 637170 658720 715150 695680
(13.9) (18.4) (14.6) (16.1) (17.5) (13.0) (24.0) (23.8) (22.4) (19.9) (17.2) (15.9) (13.4)
Demand Deposits 622800 9943 15186 10496 17241 54733 23006 116612 65090 94579 -1224 122515 -3900 -18900
(8.5) (11.9) (7.4) (11.3) (32.1) (10.2) (47.0) (17.9) (22.0) -(0.2) (23.4) -(0.6) -(2.9)
Time Deposits 5280860 89376 134088 130246 160252 168830 172777 292238 437793 490428 638395 536195 719050 714590
(15.0) (19.5) (15.9) (16.9) (15.2) 03.5) (20.1) (25.1) (22.5) (23.9) (16.2) (18.7) (15.6)
Cash in hand and balance with RBI 359290 -5161 2453 3445 -2745 10993 19682 43530 56254 78805 -16690 48494 42550 9770
-(7.6) (3.9) (5.3) -(4.0) (16.7) (25.6) (45.1) (40.2) (40.1) -(6.1) (18.8) (13.9) (2.8)
Investments 1736640 54349 61215 68110 109277 130042 61566 -21700 74062 180200 194694 218340 116870 235020
(21.3) (19.8) (18.4) (24.9) (23.7) (9.1) -(2.9) (10.3) (22.8) (20.0) (18.7) (8.4) (15.7)
Bank credit 4611630 67121 75476 78289 139492 111570 259643 406649 424112 430725 413635 469241 697300 669540
(18.2) (17.3) (15.3) (23.7) (15.3) (30.9) (37.0) (28.1) (22.3) (17.5) (16.9) (21.5) (17.0)
Food credit 81300 8875 14300 13987 -4499 -13518 5160 -430 5829 -2121 1813 2278 15800 17010
(52.8) (55.7) (35.0) -(8.3) -(27.3) (14.3) -0.0) (14.3) -(4.6) (4.1) (4.9) (32.6) (26.5)
Non-food Credit 4530330 58246 61176 64302 143991 125088 254483 407079 418282 432846 411825 466961 681510 652520
(16.5) (14.9) (13.6) (26.9) (18.4) (31.6) (38.4) (28.5) (23.0) (17.8) (17.1) (21.3) (16.8)
Important Banking Ratios (%)
Year-End: Cash-Deposit Ratio 7.7 6.8 6.2 5.1 5.1 5.7 6.6 7.5 8.6 6.7 6.8 6.7 6.1
Investment-Deposit Ratio 38.0 38.5 39.7 42.7 45.0 43.5 34.0 30.3 30.4 30.4 30.8 28.8 29.4
Non-food Credit/Deposit Ratio 50.4 49.0 48.6 53.1 53.5 62.3 69.5 72.2 72.5 71.2 71.1 74.5 76.7
Incremental: Cash-Deposit Ratio -5.2 1.6 2.4 -1.5 4.9 10.1 10.6 11.2 13.5 -2.6 7.4 5.9 1.4
Investment-Deposit Ratio 54.7 41.0 48.4 61.6 58.2 31.4 -5.3 14.7 30.8 30.6 33.1 16.3 33.8
Non-food Credit/Deposit Ratio 58.6 41.0 45.7 81.1 56.0 130.0 99.6 83.2 74.0 64.6 70.9 95.3 93.8
Reserve Money (RM): Reserve Money 1427240 21269 22757 34659 31090 67451 52623 83920 135935 219312 59696 168582 220240 50420
(8.2) (8.1) (11.4) (9.2) (18.3) (12.1) (17.2) (23.7) (30.9) (6.4) (17.1) (19.0) (3.7)
Currency in circulation 1067890 21215 21144 32769 31499 44555 41633 62015 73523 86601 100354 105186 153320 118230
(12.1) (10.7) (15.0) (12.6) (15.8) (12.7) (16.8) (17.1) (17.2) (17.0) (15.2) (19.3) (12.4)
Bankers'deposits with RBI 356290 757 1017 2670 -801 21019 9631 21515 61784 131152 -37172 64915 67320 -67220
(0.9) 0.3) (3.3) -0.0) (25.2) (9.2) 08.9) (45.6) (66.5) -01.3) (22.3) (18.9) -(15.9)
Net foreign exchange assets of RBI 1472190 27926 31295 66794 94276 126169 128376 60193 193170 369977 43986 -45086 93530 143630
(20.2) (18.9) (33.9) (35.7) (35.2) (26.5) (9.8) (28.7) (42.7) (3.6) -(3.5) (7.6) (10.8)
Money Multiplier (M ,/RM ) (in multiples)
Year-End 4.0 4.3 4.4 4.7 4.6 4.6 4.8 4.7 4.3 4.9 4.8 4.7 5.1
Incremental 6.7 8.3 5.3 7.1 4.3 4.7 5.7 4.3 3.2 13.0 4.8 4.1 16.7
dataareasonlast reporting Fridayevenfor moneysupplyseries.
Note: Figuresinbracketsarepercentagevariationsoverthe previousyear.
Source:RBI (2012): WeeklyStatistical Supplement, 20 A p ril.

82 MAY 1 2 , 2 0 1 2 VOL XLVII NO 19 Economic & Political w e e k ly

This content downloaded from 192. 190. 180.53 on Wed, 07 Nov 2018 00 :01:14 UTC
All use subject to https://about.jstor.org/terms
EXIM BANK
f^rfcT-3TRTRT f<!>
EXPORT-IMPORT BANK OF IN D IA

Enabling global business partnerships


ANNUAL RESULTS FOR 2011-12
Growth of 18 % in loan assets • PAT rises by 16%

A B R ID G E D B A L A N C E S H E E T A S A T 3 1 st M A R C H , 2 0 1 2 *

This year Previous year This year Previous year


(As at 3 1 .0 3 .2 0 1 2 ) (As at 3 1 .0 3 .2 0 1 1 )
(2011-12) (2010-11)
? Crore ^ Crore
LIABILITIES ? Crore t Crore
1. Capital & Reserves 6 ,0 0 0 .2 6 5 ,2 3 0 .1 6
2. Borrowings 5 4 ,6 5 4 .5 8 4 7 ,1 9 1 .7 4 Incom e 4 ,5 5 1 .7 7 3 ,5 4 9 .9 0
3. O ther Liabilities 3 ,0 1 8 .1 4 2 ,3 2 8 .8 5
Total 63,672.98 54,750.75 Expenditure 3 ,5 3 9 .1 4 2,682.21
ASSETS 2

a
O)
0
1. Cash, Bank
Profit Before Tax 1,012.63 867.69
Balances & Investments 7 ,0 4 1 .4 0 6 ,1 5 9 .7 2 0
2. Loans & A dvances
c
5 3 ,8 8 9 .7 8 4 5 ,6 5 5 .8 0
Provision For Tax 33 7 .5 3 2 8 4.09 1
3. O ther Assets 2 ,7 4 1 .8 0 2 ,9 3 5 .2 3 8.
Total 63,672.98 54,750.75
CONTINGENT LIABILITIES _ 5,854.95 5,166.30 Profit After Tax 675.10 583.60

HIGHLIGHTS: 2011-12
FINANCIAL PERFORMANCE Technology & Innovation Enhancement and Infrastructure Development (TIEID) Fund
• Profit beforeTax Up 17%to? 1,013crore. • Exim Bank to set up a dedicated TIEID Fund with an initial amount of US$ 500 million over the
• Net profit (profit after tax) Up 16%to? 675 crore. next 5 years to assist MSMEs with long-term foreign currency (FC) loans.
• Loan assets Up 18%to? 54,530 crore. • The Bank will work in collaboration with other commercial banks / FIs to reach out to a large
number of MSMEs to build capacities in the area of skill development, design, packaging,
• Total Business Crosses ?1 lakhcrore. market development, etc. for specific MSME clusters.
• Capital to Risk Assets Ratio 16.44%
Creative Industries
BUSINESS PERFORMANCE IN 2011-12 • Exim Bank to launch a new programme for financing export oriented creative industries and
• 18 Lines of Credit, on behest of Gol, aggregating US$ 1.49 billion extended to support will work with commercial banks and financial institutions. • India being the 8th largest exporter
export of projects, goods and services from India. • Project Export Contracts amounting to of creative goods, has competitive advantages in modem segments like animation, gaming
? 22,975 crore secured by 28 companies in 23 countries were supported. • Overseas software, content development for movies, media, education, as also traditional skills like
Investment assistance approved to 54 corporates aggregating ? 4,178 crore for their carpets, decorative items, wickerware, glassware, handmade lace, needlework rugs,
overseas investments in 23 countries. embroidery etc.

RESOURCESffREASURY Rural Grassroots Business Initiatives and Corporate Social Responsibility


• Networth increased to ? 6,000 crore. • The Bank raised borrowings of varying maturities • The Bank supported Traditional AYUSH Cluster in Tamil Nadu for setting up a common
aggregating to ? 27,630 crore in 2011-2012, comprising rupee resources of ? 14,297 crore infrastructure facility for Indian systems of medicine. • Helped an artisans’ and farmers’
and foreign currency resources of ? 13,333 crore equivalent. • The Bank is rated investment cooperative society in Uttarakhand, which is into production of naturally dyed silk and wool
grade, on par with the country's Sovereign rating, i.e., Baa3 by Moody's, BBB- by Standard textiles. • Facilitated an NGO in West Bengal for upgrading its unit producing various types of
bamboo & natural fibre based handicrafts. • Supported a company in Bihar, which employs
& Poor's, BBB- by Fitch Ratings and BBB+ by Japan Credit Rating Agency (JCRA).
women from below poverty line families and minority communities, to manufacture off-the-
•The Bank's domestic debt instruments are rated AAA by CRISIL and ICRA.
loom tasar silk products. • Facilitated Kerala’s Alappuzha Coir Cluster towards productivity
NEW INITIATIVES enhancement through technological upgradation for women coir spinners.

Boost to India’s project exports SOUTH - SOUTH COOPERATION AND REGIONAL COOPERATION

• The Bank in conjunction with ECGC, launched Buyer’s Credit under Gol’s National Export • Exim Bank hosted the Annual Meeting and Financial Forum under the BRICS Interbank
Insurance Account (NEIA) in April 2011. • Four projects valued at US$ 405.08 million Cooperation Mechanism coinciding with the 4th BRICS Annual Summit at New Delhi in March
(? 2,135 crore equivalent) approved in first year. • The first Agreement for a water treatment 2012. • The Bank signed two multilateral financial cooperation agreements on ‘Extending Credit
plant in Sri Lanka was signed in January 2012 between Exim Bank and the Government of Facility in Local Currency’ and ‘BRICS Multilateral Letter of Credit Confirmation Facility’ with the
Sri Lanka. Execution of the project started in March 2012. other member development banks. • Appointed by the Commonwealth Secretariat, London, to
undertake a research study on establishing a Commonwealth Trade and Investment Bank.
First Indian entity to enter Japanese retail bond market Findings were presented at the Commonwealth Heads of Government Meetings (CHOGM), held
The Bank became the first Indian entity to enter the Japanese retail bond market by issuing in Perth, Australia during October 2011. • Nigerian Export-Import Bank commissioned EximBank
Uridashi Bonds which are denominated in a foreign currency and sold directly to Japanese to undertake an assignment to design, develop & implement a Film Financing Programme.
household investors. •The Bank also undertookastudyfor SAARCDevelopment Fund (SDF).

Head Office : Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai - 400 005 • Phone : 022 - 22172600 / 22181852 • Fax : 022 - 22182572
• E-mail : cag@eximbankindia.in • Offices - India : Ahmedabad, Bangalore, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai, New Delhi, Pune • Branch: London
• Overseas Offices: Washington D. C., Singapore, Dubai, Dakar (Senegal), Johannesburg (South Africa), Addis Ababa (Ethiopia) • Website: www.eximbankindia.in

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:16 UTC
All use subject to https://about.jstor.org/terms
May 12, 2012 Regd No MH/MR/West-238/2012-14
Posted at Patrika Channel Sorting Office, Mumbai 4 0 0 001 on every Monday-Tbesday. Registered with the RNI Under No 1 4 0 8 9 / 6 6

.;v :- >.

The best gift is one that says,


"Anything for you."
Let receivers select th e ir o w n ogifts w ith BOI ★ Gift Cards
It is a wonderful gifting solution for all occasions and makes a great surprise too!
• Choice of denomination up to ? 50,000
• Can be used any number of times up to the amount pre-loaded
• This card can be used .it over 5 lakh retail outlets across India
• Available at any Bank of India branch in India

Call Center 022 40919191


Visit us at www.bankofindia.co.in (KgCationship 6eyond Sanding

84

This content downloaded from 192.190.180.53 on Wed, 07 Nov 2018 00:01:16 UTC
All use subject to https://about.jstor.org/terms

Anda mungkin juga menyukai