bgs summaries - end term - pgp 2011

BUSINESS, GOVERNMENT & STUDIES – HANDOUT SUMMARIES

On 1 August 2009

Handout Summary Business, Government and Society

ContentsIntroduction...........................................................................................................................................4

Contributors..........................................................................................................................................4

From Midnight to the Millennium and Beyond: Democracy and Identity in Today’s India...................4

Ideas of India”, “Rights..........................................................................................................................8

Political Parties in India.......................................................................................................................14

India’s Informal Economy: Facing the Twenty-First Century...............................................................19

India’s New Entrepreneurial Classes: The High Growth Economy and Why it is Sustainable..............23

Introduction.........................................................................................................................................26

Banias and Beyond: The Dynamics of Caste and Big Business in Modern India...................................30

Traditional Female Moral Exemplars in India......................................................................................32

Pangs of Change..................................................................................................................................34

Democracy and Secularism in India.....................................................................................................34

Affirmation without Reservation.........................................................................................................36

Redesigning Affirmative Action...........................................................................................................36

Women and the Labrynth of Leadership.............................................................................................39

Feminization of Poverty in Post - Apartheid South Africa....................................................................43

Thirty Years On: Women's Studies Reflects on the Women's Movement...........................................45

Explaining Sixty Years of India’s Foreign Policy....................................................................................45

Indian Foreign and Security Policy: Beyond Nuclear Weapons............................................................45

Developing India's Foreign Policy 'Software'.......................................................................................45

The Clash of Civilizations.....................................................................................................................49

It’s a Flat World After All.....................................................................................................................51

Corporations: Predatory or Beneficial?...............................................................................................53

Serviced From India : The Making of India's Global Youth...................................................................57

Labour and Globalization.....................................................................................................................58

Imaginary Cities...................................................................................................................................58

Bangalore: Urban Lessons...................................................................................................................59

The Rise of the Creative Class..............................................................................................................60

Asian Development Bank: Managing Asia’s Cities...............................................................................62

Everybody Loves a Good Drought.......................................................................................................68

Political Economy of Agrarian distress.................................................................................................69

Modernising Agriculture......................................................................................................................71

Knowledge@Wharton interview with M. Yunus, Founder of the Grameen Bank...............................74

PGP 2009-2011 Section E of 100


Serving the World’s Poor, Profitably...................................................................................................75

The Indian Innovation System.............................................................................................................78

Innovation: A Guide to the Literature..................................................................................................78

The Cathedral and the Bazaar.............................................................................................................78

India & the Knowledge Economy: Opportunities & Challenges...........................................................84

Who Owns the Knowledge Economy...................................................................................................86



IntroductionThis document is a compilation of the BGS Summaries painstakingly put together by a handful of students of the PGP 2009-2011 Section E. Hope this is enlightening to one and all.

Contributors

From Midnight to the Millennium and Beyond: Democracy and Identity in Today’s IndiaShashi Tharoor

Summary by Saurabh Verma and Potala Sai Babu

Pluralism: A social organization in which diversity of racial or religious or ethnic or cultural groups is tolerated.

[This is one keyword that appears over and over again in this interesting written speech, which I’m sure all of us must read for the sheer insight it offers into our country, and its strengths that we often tend to overlook. This is why I have extensively quoted him verbatim in this summary.]

Shashi Tharoor starts by comparing his role as a UN diplomat with that as an Indian citizen. He says that “…both emerge from the same pluralistic convictions. Indian adventure is that of human beings of different ethnicities and religions, customs and costumes, cuisines and colours, language and accents, working together under the same roof, sharing the same dreams. That is also what the UN, at its best, seeks to achieve.”

He says that generalisations are too hard to make for a country such as India, such that whenever you say anything about India, the opposite is also true. Pluralism is also acknowledged in the way that “at a time when most developing countries opted for authoritarian models of government to promote nation building‐ and to direct development, India chose to be a multi party‐ democracy”.

“Pluralism is a reality that emerges from the very nature of the country; it is a choice made inevitable by Indiaʹs geography and reaffirmed by its history.”

He mentions the 4 most important questions facing all countries at the beginning of the 21st century:

The bread versus freedom debate: can democracy work in a country of poverty and scarcity, or do its inbuilt inefficiencies impede growth?



Centralization versus federalism debate: does tomorrow’s India need a strong Govt. that transcends fissiparous tendencies, or one that centralized very little?

The pluralism versus fundamentalism debate: should India find refuge in assertion of its own religious identity?

The ʺCoca‐Colonizationʺ debate: or globalization versus self reliance.‐

He then takes up the debate on India’s identity and democracy. He talks of H.D. Deve Gowda who as the PM of India makes his Independence Day speech in Hindi, reading it from a paper written in Kannada script. He says such an episode is possible only in India, where the PM – for that matter, half the population – doesn’t understand the national language.

He says we all are minorities in India, because our native language, origin, religion, caste, gender, all divide each one of us into a very small bracket of people, none of which is a majority. Ethnicity further complicates the matter, bringing in dress, appearance, customs, tastes, language, political objectives etc. He also says that nationalism is rare to find in India, since it cannot be based on geography, ethnicity or religion, all of which are available in diverse forms.

“Indian nationalism is the nationalism of an idea, the idea of an ever ever‐ land—emerging from an ancient civilization, united by a shared history, sustained by pluralist democracy.”

So the idea of India is of one land embracing many, a democracy where “you donʹt really need to agree—except on the ground rules of how you will disagree”, i.e. “a consensus on how to manage without a consensus”.

He then moves on to criticise the Hindu Rashtra view of some of our countrymen by reminding us of the concept of “unity in diversity”. “Westerns dictionaries define ‘secularism’ as the absence of religion, but Indian secularism meant a profusion of religions, none of which was privileged by the state. Secularism meant, in the Indian context, multi-religiousness.”

He says that India’s secular status was made possible by the fact that a majority are Hindus, which is itself “…a religion without fundamentals: no organized church, no compulsory beliefs or rites of worship, no sacred book”. He says “that the Hindu idea that religion is an intensely personal matter, that prayer is between you and whatever image of your maker you choose to worship.”

He laments that the politics of deprivation has eroded the culture’s confidence, and Hindu chauvinism has emerged from competitions fro limited resources. “The suggestion that only a Hindu, and only a certain kind of Hindu, can be an authentic Indian, is an affront to the very premise of Indian nationalism.”

He further urges us to celebrate diversity, and says that “if America is a melting‐pot, then to me India is a thali, a selection of sumptuous dishes in different bowls. Each tastes different, and does not necessarily mix with the next, but they belong together on the same plate, and they complement each other in making the meal a satisfying repast”.

After all, India is too diverse a nation to be confined to only one view, and democracy is the only way of doing justice to all these diverse sections. One encouraging observation is that in India, the democracy is embraced by the poor who turn up in huge numbers to vote, whereas in countries



such as US, it’s the rich that participate more often in democratic processes. This has given immense power to the lowest of India’s low. He talks of Dalit leaders like Mayawati and K. R. Narayanan.

He talks of the extraordinary degree of change in India, which takes place in politics, economics and caste-relations. All three of these add up to a revolution of sorts, “… a democratic revolution, sustained by a larger idea of India, an India which safeguards the common space available to each identity, an India that remains safe for diversity”.

Then he touches upon economics of nationalism, which put political independence and economic self-sufficiency in the same bracket, but actually led to a distribution of poverty, and regulation of stagnation. He advocates that India open the floodgates of globalization, and harp on its own “ability to absorb foreign influences and transform them into something that belongs naturally on the soil of India”. He expresses optimism that India will, as it has always been, be open to the contention of ideas and interests within it, unafraid of the influence of the outside world.

He sums it all up by summarizing his vision for the India of the future:

“ If the overwhelming majority of a people share the political will for unity, if they wear the dust of a shared history on their foreheads and the mud of an uncertain future on their feet, and if they realize they are better off in Kozhikode or Kanpur dreaming the same dreams as those in Kohlapur or Kohima, a nation exists, celebrating diversity, pluralism—and freedom.”

There are few questions in this period to Shashi Tharoor which are being transcribed as follows

Question 1: Is India should move toward a common civil code?

Answer by Shashi Tharoor: After the partition of India, Nehru decided to let the minorities feel a sense of self-assurance that would come from having no interference with their civil codes. There has been diversity in the civil code which has been followed by Hindus and Muslims. Hindus followed the common civil code across the country, despite regional variations in practice but Muslims were allowed to retain personal law. I don’t think that we’re going to move rapidly toward a uniform civil code, and that’s simply because the politics of this – the politics of diversity.

Question 2: To what extent the Muslim “awakening” particularly coming from across the border, is affecting India and does it have a connection to the rise of Hindu sentiment?

Answer: I think, yes, chauvinisms tend to feed on one another and so there is no question in my mind that the assertion of a particular identity be one group. Look at the rest of our country, “they say “A Muslim says,’ I am proud to be Muslim,’ a Christian says, “I am proud to be Christian,’ and a Hindu says, ‘ I am proud to be..secular’.” Hindu can afford to say that, because there is to that degree safety in numbers. It is identity asserted at its pettiest level, and not at the kind of level that makes any meaningful religious sense.



Follow up question: Where are young going?

Answer: Young are going both ways. There are lots of young people who are, slogan-shouting assertions of pride and there are some who are simply too busy seeking jobs at call centers to worry about one thing or other and there are some who would go out in the street to defend the sorts of ideas.

Question 3 from Jitendra Singh, Professor at Wharton School of Business: What it means to you to be a novelist as I have to say that I enjoyed your novels over the years?

Answer: I started writing fiction at age six. It is what I do; I have to do it; if I don’t, it will be extremely painful for me. I started reading the books on my parents’ shelves as I couldn’t figure out time to spend as I don’t have brothers and sisters. I started writing the stories. I was blessed with a father who actually encouraged this, and got it published. I became a bit of a recidivist. I wrote throughout my school days. I wrote and published short stories in English in pretty much every Indian magazine that existed in my student days, and kept writing. I was the only author in U.N which was permitted to write as long as I don’t violate the staff rules. I had to take considerable amount of time span of five years between my books because in fiction we require considerable amount of time. I still write outside the office nothing but at home, I do write a column in the Indian newspaper “The Hindu”.

Question 4: How does the idea of India has changed?

Reply : I’ll be very honest, the generation of my parents, by enlarge, had a totally different attitude from my generation, or people slightly older or slightly younger, who are now imparting values to their children. My father never told me about my caste upto the age of twelve where I had to ask to submit the details to my school. I had friends of all religious faiths, I was never encouraged to think of them by their religion. I feel the minority community is the rich people in India. We are always getting sanctimonious politicians making speeches on national integration. It was constantly exhorted, impressed upon us. This is a degradation of public discourse.

Question 5: How is the future of India getting shaped?

Reply: I believe in the prospect of India doing extremely well; economically, as you know, we’re already in purchasing power parity terms the fourth-largest economy in the world. There are some tangible improvements to peoples’ lives, everything from the construction of roads to the job opportunities arising from increasing globalization and liberalization. But we do have to do things right, and that the fact is that we are consistently taking two steps forward and one step back.

Question 6: How is the violence which erupted in Gujarat 2002 is different of the Babri mosque demolition in 1992?

Reply: Riot, be stopped, both by administrative and police action. What has been planned in Gujarat has been deliberately planned and executed, and condoned by those whose job it was to stop it and elsewhere in India these plans didn’t exist. If governments do their jobs properly and uphold the mechanisms of law and order, anything of that nature can be prevented.



Question 7: What’s your opinion on current talks between India and Pakistan?

Reply: As an U.N official I keep my distance from official matters involving my country. But it appears that it has been conducted in bonhomous atmosphere. There is at least an important change in the atmospherics.

Question 8: Question on Indian Diaspora, the stresses they are feeling, higher incidences of depression among Indian-American teenagers than amongst other ethnic groups

Reply: The first, and perhaps most obvious, is that a majority of the kids to fulfil the expectations of parents and many Indian kids are excelling in their studies. The second kind is in deep those who don’t want to conform or feel the pressure and who in fact feel the discordance between family pressure and the world outside. I m sure that the experiences is different for those Indian-American kids growing up in place where there are large concentrations of people from the subcontinent. Certainly the identity from where we came affects the choice we make. It may be more a difference of what it is that they feel of association with the identity.

Ideas of India”, “RightsRamachandra Guha

Summary by Alok Jain

Executive Summary

The article goes into detailed discussion of emergence of Caste based politics and the conflicts that were rooted in castes in various parts of the nation. In the first half of the article Guha details various events that helped in making caste based politics the prime face of Indian democracy, in the second half he talks about the conflicts and insurgency in various parts of the country in which in one form or another started as organized resistance by certain castes.

Even though with economic and social changes post independence, we saw the weakening of the association between caste and occupation, and acceptance of inter dining and inter caste marriages, caste continued to play a striking role in society and politics. Most Indians were defined by the endogamous group into which they were born.

The article is not an opinionated one; it is more or less factual and details following events -

Following are some major events in evolution of Caste based politics

Reservations for ST/SC

Emergence of OBC in the Indian politics in the 1960s and 1970s

o Mandal Commissions

o V.P. Singh implements Mandal commission’s recommendations of 27% reservation to OBCs



Emergence of Bahujan Samaj Party

o Strong leaders such as Kashinram and then emergence of Mayawati

o Success of BSP had an influence on other parties to do active caste based politics

Following are the major conflicts that have happened in various parts of country –

Naxal movements

Conflicts in Kashmir

Violence in the North East states

Summary:

Emergence of OBC in the Indian politics in the 1960s and 1970s: These acted as a vote bank, lining up solidly behind a politician of their caste. It was these OBCs that formed the social base and provided the leadership of the parties that successfully challenged the dominance of Congress. Examples: DMK in madras, Lok Dal, the Socialist party etc. Economic power had come to OBCs through land reforms and green revolution; political power through ballot box; what lacked was administrative power.

Janta Party govt. appointed the Mandal Commission which defined on the basis of state surveys 3743 specific castes which were still backward. These were represented very poorly in the administration and thus Mandal Commission recommended a 27% reservation for them in all posts in central government to give them an immediate feeling of participation in the governance of the country.

By the time Mandal commission submitted its report, Janta govt. had fallen. Congress regime followed headed by Mrs. Gandhi and Rahul Gandhi gave it a quiet burial 1989 – National Front Govt. - Mr.V.P.Singh- sensible of the rising political power of the OBCs-

implemented Mandal’s report as a corrective to dominance of upper castes in the public services.

1990- case in SC contesting the constitutional validity of Mandal Commission’s recommendations:

o Extension of reservation violated the constitutional guarantee of equality of opportunity

o Caste not a reliable indicator of backwardnesso Efficiency of public systems at risk



September 1990 – DU student Rajeev Goswami set himself on fire in protest against the Mandal’s report. Many more self immolators. Around 200 suicide attempts. 62 successful!

Stronger resent in North as compared to south. Why? o Affirmative action programs had long been in existence in southo South – thriving industrial sector- less dependence on govt. sectoro Upper castes less than 10% of population. In north, 20% of population

Strongest supporters of Mandal Commission were two rising politicians – Mulayam Singh Yadav(UP) and Lalu Yadav(Bihar) 1991- Congress back to power- to gain strength in North and woo the backward castes- Narsimha Rao- endorse Mandal report- 27% reservation to OBCs with preference to poor amongst them

1992- SC dismissed the petition filed in 1990 against Mandal Report. But 2 additional things: reservations should not exceed 50% of the jobs in govt. and caste criteria only in recruitment and not in promotions.

Initially in 1980s CPI and CPM opposed Mandal coz believed that class and not caste is the major axis of political mobilization. BJP opposed coz accorded pride of place to Hindu religion. But finally in 1990s, all parties saw the political costs of opposing it and thus accepted it.

Emergence of Bahujan Samaj Party:

1956: Dr. Ambedkar, died Then most prominent Untouchable leader- Jagjivan Ram- Congress. Died in 1988. Now

active, Kanshi Ram 1971 – Kanshi Ram had formed All India backward and Minority Communities Employees

Federation (BAMCEF), an organization to represent govt. employees from a disadvantaged background, a trade union of SC elite. By 1980s had membership of 200000. Mainly in North, particularly UP

1984 elections- Kanshi ram started BSP (Dalit = SC; Bahujan = SC+OBC+Muslim). Garnered more than a million votes but not any seat.

In subsequent elections, better performance Best in UP, at the expense of Congress- BSP stood for “social justice” and “social

transformation”. Had emerged as one of the three major political groups in the state, the others being Mulayam’s Samajwadi party and BJP.

By 1990s, Kanshi Ram supplanted by Mayawati who realized that the Dalits could never come to power on their own and thus built cross party and cross caste alliances. Became thrice the CM, heading coalition govt. formed with SP or BJP.

Increased visibility of SCs, now knew of their rights under the Constitution and were fighting for them.

Clashes between upper castes and Dalits:

Following the increase in power of Dalits, there were numerous violent clashes between the upper caste Hindus and OBCs against Dalits. The clashes were seen more severe in the southernmost districts of the Tamil Nadu and in Bihar.

Growing power of Naxalites:



Bihar – max oppression of Dalits historically; grossest forms of feudalism; land reforms in West Bengal but not in Bihar. Middle and upper class owned the land and Dalits tilled it.

1970s- Maoist radicals took up the case of Dalits. Naxalites disappeared from West Bengal where they were prominent a decade ago and now gathered strength in the districts of Central Bihar. Formed agricultural labour fronts and demanded higher wages, equality, end to forced labour, share to village common land and an end to social coercion. New found self respect in Dalits - most significant achievement of Naxalites. Other achievements

End to forced labour Equal rights to women laborers No forced labor Better working conditions etc

However long-term aim of these radicals – to overthrow Indian state. Hidden, illegal activities carried on side by side, collection of weapons. Naxalites had their own army called Lal Sena and Safaya squads who were trained to assassinate oppressive landlords.

In response, the upper caste and ruling elite formed senas and private armies of their own. Infinite violent incidents between these and Naxalites. By mid 1990s- in much of Bihar, state had no visible presence at all.

Scheduled Tribes:

Naxalites active also amongst STs. STs also called Adivasis lived in the most resource rich areas of India. Over the years losing resources to state or outsiders.

Activists among tribals- Marxists and Gandhinians. Csuses of tribals:

Access to forests and tribals. Particularly angry with the forest department which restricted their access to wood and non forest products.

Were paid niggardly sum for like tendu leaves collection used for making bidis. Provisions of decent schools and hospitals

1990s- Narmada Bachao Aandolan- Medha Patkar- against displacement of around 200000 tribals due to construction of dam on Narmada river.

1998- Three new states- Chattisgarh, Jharkhand and Uttaranchal

Conflicts in Kashmir:

1989: violent again!

November 1989: V.P.Singh replaced Rajeev Gandhi as PM. Appointed Kashmiri politician Mufti Mohammed Sayeed to Union Home Minister to please Muslims of India.

December 1989: Rubaiya Sayeed, daughter of the home minister kidnapped in Srinagar by JKLF(J&K Liberation Front). 5 jailed ministers released by the Indian Govt. to free her. Major victory for militants.



32 separatist groups in the valley, including JKLF(independent non denominational state of J&K in which Hindus and Sikhs would have same rights as Muslims) and Hizb-ul Mujahideen(Islamic regime nad not averse to merger with Pakistan)

Govt. finally moved a lot of armed forces (80000) to the state.

Who was caught in the cross fire? The innocent inhabitants of the valley. Cases of tortures by CRPF, violent killings etc reported on large scale.

Violence in the North East states:

1990s- Assam- good news- accord reached with the Bodos, allowing for an autonomous council to be formed in those districts where that community was in a majority.

Assam- secessionist ULFA (United Liberation Front of Assam)- tea plantations paid an annual sum to these rebels, mounted raids on banks, and mass violence.

Tripura- 2000 killings between 1993 and 2000- mostly civilians.

Manipur- had once been an independent kingdom. Chiefly ethnic rivalries and also all ethnic groups saw themselves as non-Indians (banned screening of Indian films) and wanted an independent state

Nagaland- NSCN (National Socialist Council of Nagaland) - stubbornly committed to the idea of an independent and sovereign Nagaland. NSCN had well trained fighters and operated from Burma making raids across the border and engaging the army. Even govt. officials paid a monthly “tax” to the underground!

1997- church groups and civil bodies forced the rebels and govt. to declare a ceasefire. Talks on but no agreement reached. The Indian govt. agrees to give Nagas the fullest possible autonomy but within the terms of Indian constitution. But Nagas want creation of a new greater state- Nagalism- consisting also of parts of Assam, Manipur and Arunachal Pradesh, where Nagas live. This of course is violently opposed by these states. Also want greater sovereignty and retention of a separate Naga army.

North east- region of violence and migration- immigration from Bangladesh.

Also a massive military presence –

External security since borders China, Bangladesh and Burma. to maintain the flow of essential goods and services to protect rail roads to suppress rebellion and insurgency

Army operates under the Armed Forces Special Powers Act(APSPA)- special extra powers to army- misused by the army. Human rights groups have asked for the repeal of APSPA

Condition of Women in Indian Society:

Gender discrimination very high. Boys given more freedom and education and rights as compared to their sisters.



Sex ratio consistently declining from 972 females to 1000 males in 1901 to 927 in 1991

1980s- sex determination techniques made things worse

Situation more grave in Punjab and Haryana

Variations in gender relations were spatial as well as cultural. In south, the condition of women was not that worse. Also things were better in cities where there was an upsurgence of feminist movement. Changes in law. Amendment of Hindu Succession Act,1956- for the first time bought agricultural land in its purview, allowing women the same inheritance rights as men.

Situations getting better in Mizoram in the 1990s:

Return of peace in Mizoram. Leaders of Mizoram National Front(MNF) had made a spectacular transition, from being insurgents in jungle to politicians in Secretariat, put there by ballot box. Construction of water pipelines, roads and schools. Mizoram soon replaced Kerala as the most literate state. Were learning Hindi and since were very fluent in English, gradually grabbing positions in the service sector. Targeted to make the state “Switzerland of East India”, to encourage tourism and a smoother trade with the neighbouring countries. The CM also carried out a larger role in bringing about a settlement between the government of India and the Naga nd Assamese tribals.

Situations getting better in Punjab in the 1990s:

1987- president’s rule and repeatedly extended by 6 months. Chaos and gun battles killing as many as 20000 lives between 1981 and 1993, with 11000 of them as civilians.

1990- army called for help, withdrawn in 1991

1992- elections to state assembly. The Akali Dal boycotted the elections and the elected congress minister killed by a suicide bomber!

1993- Akalis returned to democratic politics. 1997- won emphatic victory in the assembly polls. Militancy was on wane. Sikhs saw themselves as part of India. Industrial sector in the state flourishing. This alienated community had regained its self esteem and resumed its leading role in nation building. Sikhs commanded some of the most important jobsd in nation was widely hailed as a sign of Punjab’s successful reconciliation with India.

Political Parties in IndiaRajeev Gowda and E Sridharan

Summary by Ashis Nayak



This summary introduces roles of political parties and the party system in deepening Indian democracy specifically on their role in evolution in institutionalized mechanism of power sharing and the promotion of inclusive resilient state. India adopted written constitution in 1950, which features fundamental rights and freedoms, and universal adult franchise. India is organized into twenty-eight states and seven union territories.

India’s politicized social cleavages are of religion, Language, caste, tribe rural v/s urban residents and class. Hindu’s are internally divided by language, caste and sects. The broad caste clusters are Upper caste, intermediate castes and two constitutionally recognized grouping SC’s and ST’s. Other numerically significant religious communities are Muslims (13.4%), Christians (2.3%), Sikhs (1.9%), Buddhist and Jain.

Theories of party system evolution

Democracy’s success depends on vibrant competition among political parties. Political parties evolve within party systems. There are two theories for political parties evolution first “The social-cleavage theory” and second “The electoral-rules theory”. The social cleavage theory postulates party systems are a reflection of the principle cleavages in a given society. ( e.g. Cleavage between capital and labor). The electoral rules theory postulates that the rules of political system and of electoral system, create incentives for political forces to coalesce or to splinter. The principle causal features are the size of electoral districts, the structure of ballot and the decision rule or electoral formula.

Several theories are tabulated in the following table

Author Theory

Maurice Duverger

Evolutions

Of political parties

Argues that combination of mechanical and psychological effects tends to produce a two party system

Pradeep chhibber and ken kollman

Argues that division of power between level of government- national, state of provincial and local -affects the formation of parties at different levels

e.g. more centralized power over decisions with state affects the citizens but more incentives for political entrepreneurs to form nationwide political parties and for voters to vote for them

Arend Likphart

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

Atul kohli Supports power sharing in Indian politics

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

Linz, Stepan Argues that nation is forged by state institution; policies that respect and protect



and yadav multiple and complementary identities and that is not limited to ethno linguistic federalism. It allows power sharing but does not privilege to any one identity.

Kanchan Chandra

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

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

Ashutosh varshney

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

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

Party system fragmentation

Indian national congress hegemony, 1952-67

Congress won in first four Lok Sabha elections based on plurality of votes competing against fragmented oppositions, which varied from state to states.

The multiple bipolarizations of state party systems, 1967-89

In the year 1967, congress strength started declining at the national and state levels. It lost powers in eight out of then sixteen states. Politically mobilized cleavages emerged, including language based parties such as DMK. Intrastate alliances of non-congress parties the Samyukta Vidhayak Dals emerged and pooled votes to oust congress. However, due to lack of coherence in the alliances resulted in instability and collapse of these parties.

In 1971, the congress won with 2/3 majority in the Loksabha. In response to congress dominance, anti-congress alliances slowly emerged at the state level. This raised Index of Opposition Unity against Congress. During 1975-77 emergency, congressed faced temporarily united opposition in the form of Janata Party. Congress lost elections to Janata Party in 1977 but J P did not compete against fragmented opposition. Here Durverger’s law held at national level with two party democracy.

In 1980, janata party disintegrated and congress won the elections. But in 1989, an opposition alliance emerged supported by BJP and other left wing parties, the congress share of the votes dropped to 39% and seats too. The National Front coalition of 1989-90 was novel in three senses. First learning from janata party experiences and built common manifesto. Second, it brought in



reginal parties like DMK. Third, coalition was the first spatially compatible interstate alliance of parties. However, this coalition had not moderated or set aside ideological extremes.

National Party-system fragmentation and the emergence of coalition and minority governments, (1989-2006)

1989 general elections signified a seismic shift in India’s party system with BJP’s rise to prominence and Congress’ relative decline. From no more than 35 seats and 10% vote nationally till 1989 (except for the historic 1977 election) to becoming the single largest party in 1996, it has been a phenomenal rise. Riding on its “hindutva” agenda and cashing on the upper-caste backlash on Mangal commission’s report of government job reservations for OBC, BJP won 161 seats in 1996 and came to power. But it could stand no more than 13 days. It was perceived as a significant ideological statement on the part of a range of secular parties. BJP however learnt a lesson and in further elections sought a wide range of alliances in its nonstronghold states and shelved the religiously divisive points on its agenda.

Since 1990s, alliances have more or less been based on spatial compatibility, at the expense of ideological compatibility. The two BJP-led coalitions (‘98-‘99 & ‘99-’04) were based on both spatial compatibility (between BJP & regional parties) & ideological compromise (the BJP set aside its hindu-nationalist agenda and other parties ignored its communal character).The congress-led coalition UPA gained power in 2004. UPA was based on a variety of intrastate spatial compatibility as well as ideological commonalities (anti-BJP) and ideological compromises (on economic policy between congress and left). Same was the case of United Front coalition in 1996. Since the 1960s, however, alliances have been driven by the desire to aggregate votes and not by ideology, programs or social cleavages.

A process of bipolar consolidation at the state level was the key feature of and driving force behind the fragmentation of the national party system: Multiple bipolarities (viz. congress-BJP, cong-left, cong-regional parties) in state party system empowered a large number of parties at the national level where they wielded great power. This also indirectly led to bipolar consolidation of BJP and Congress led coalitions at the center.

The social cleavage theory explains the formation of parties based on religion & caste. At the same time, as congress centralized many leaders who were feeling marginalized in congress left and formed new rival parties. (eg: in AP, TN & Assam)

The Duvergerian multiple-bipolarization explanation along with the Chhibber-Kollman explanation based on state powers in a federal system explains the incentives for single-state-base party formation, leading to the multiple-bipolarization of state party systems. This leads to a highly fragmented national party system with very large and ideologically disparate coalitions.



The authors don’t really affirm to the point that it is leading to a sustained bipolarity of 2 alliances but they emphasize here the full representations of politically mobilized groups across states, indicating power-sharing among groups through their participations in diverse coalition rather than in an umbrella party.

The Decline of Ideology

India has a long history of forming party alliances without a match of ideology. None of these alliances stick together since no ideological, social or policy held them together. Initially BJP was untouchable because of its Hindutva agenda, but then again it was conveniently ignored when the non-congress parties needed to forge a front. Since 1998, BJP has also somewhat moderated its Hindu-ness in order to sustain governing alliances.

Apart from Secularism, the other major ideological issue is Liberalization of the economy. Example: the dispute between UPA and Left in the last government. But since the liberalization started, it hasn’t been majorly halted. Arun Shourie says “One reform creates pressure that other reforms be put through”. This has enabled the NDA too to support the reform during their power. At the individual levels also, ideological labels have gradually lost their significance with politicians changing parties without concern for ideological views.

Overall, this development may merely reflect an ideological consensus: the acceptance of liberal economic reforms with a “human-face” and a somewhat diluted secularism.

The rise of Dynastic Politics

The dynasty reign has been present in Indian politics since Gandhi-Nehru time which just got strengthened with emergence of Indira, Sanjay, Rajiv, Sonia Gandhi and more recently Rahul Gandhi. Congress has always been somewhat personalized by these charismatic leaders. Following their steps, now even leaders like Sharad Pawar, Mayawati have chosen to run highly personalized parties. According to K.C. Suri, “the charismatic leaders maintain weak party organizations to prevent challengers from emerging” is the logic behind these personalized parties.

The benefits of dynastic politics are: 1) the leaders generally won’t face much of challenge inside the party. 2) The dynasties inherit an already established network and brand-appeal. They no longer need to build a political base.

Because the dynastic politics stifles the emergence of grassroot leadership, some scholars blame it for fragmentation of parties, decline in democratic deliberations and the role of parties being mediating institutions. They advocate a return to intraparty democracy and transparent, open funding of political parties.

The larger consequence of decline in Ideology and rise of dynastic politics is the reduction of party organizations to mere election-winning machines. (example: BJP nominating many film stars for 2004 elections)



The impact on the quality of democracy

The fragmentations of party system, nature of coalition politics and internally top-down character of parties have mixed effects on the quality of India’s democracy.

Based on Larry Diamond and Leonardo Morlino’s eight dimensions of democratic quality, the authors feel that on 4 fronts (freedom, participation, competition & Horizontal accountability) there has been +ve effect. While on rest 4 fronts (Rule of Law, Equality, vertical accountability & responsiveness) there has been –ve impact.

Competition: The decline of one-party system and emergence of small regional parties have ensured a strong competition in the state-level elections.

Participation: There has been an increase in participation, especially by the lower castes and class as well as women and minority groups in the politics.

Horizontal Accountability: The emergence of multiparty system has weakened the dominance of the governing party on the organs of horizontal accountability like election commission, courts. The same applies for the media industry also. These developments have bolstered democratic freedom.

Equality: While on one hand, the emergence of caste based parties have increased the influence of minorities, at the same time anti-muslim parties like BJP have threatened the equality for the minorities. This also weakens the rule of the law. The rule of law also gets weakened by attempts of lower-caste parties to use state power to further their social base’ interest in a manner uncompromising to norms and institutions (eg: bihar & UP) Another threat to rule of law is the greater influence and participation of criminals in politics.

India’s Informal Economy: Facing the Twenty-First CenturyBarbara Harriss-White

Summary by Mayank and Sunil

The main argument in this article is that the larger part of the Indian economy is regulated in significant ways by social structures that are resistant to change by means of macro-economic policy. In its regulation of the informal economy, the Indian state is not proof against the influence of these structuring identities, as a result of which it does not work as one would expect a modern developmental state to work. The implementation of reforms and liberalization is filtered through these structures.

The Social Regulation of the Indian economy:

In this section, the author examines the ways in which the most significant social structures of accumulation – religion, caste, space, classes and the state – regulate India’s informal economy.

Gender:



The informal economy is for the most part a matter of family businesses which are essentially structures of hierarchical authority between men. As firms grow in size, the demand for male family labour increases; but as fertility decreases, the number of male agnates decrease. Yet instead of drawing women family members into these firms, women tend to be deprived of productive work and live fairly secluded lives based on the home.

Marriages and alliances are carefully controlled to create and protect the resources flows crucial to capital accumulation. When a family contracts a good marriage, its credit increases. Because of these patriarchal arrangements, competition between firms is frequently suppressed resulting in oligopolies. Other adverse affect of keeping strong family control over young male property owners is that they are often educated only to the level compatible with continuing to live at home or with close kin. The reinforcement of patriarchal relations in the class controlling local capital also has contradictory effects on the welfare of women. Relating dowry to the social status of women, the author argues that s the economic costs of women rise and their economic benefits fall, so does their relative status. As the gender bias can be explained by low relative female status arising from lack of earned income, by the costs of dowry, and by the demand for male family labour in firms, it can be concluded that wealth creation and property accumulation benefit men disproportionately.

Religious Plurality:

The roles of religions in Indian economy have been very specific. Religious groups are often found regulating and distributing livelihoods, and providing insurance and social security. In these ways, forms of noneconomic and divine authority may be found to govern economic behaviour. eg. The economic significance of the Jain religion is far greater than the share of Jains in Indian population. The existing religious plurality in India has meant that the deepening division of labour and the proliferation of new and technologically upgraded commodities and services are easily and sometimes exclusively aligned with religious sub castes and sects. This results in the social patterning of residential areas and the spatial patterning of economic activity. Religions also owe their roles in the economy in part to the secular aspirations of the state. In setting out constitutionally independent of all religions, The Indian State has left the economy vulnerable to religious competition in various ways, from the provision of infrastructure to communal conflict. The Indian state has been penetrated by religions- by the routes of political patronage, by the consequences for minority politics of reservations and by unequal treatment of religions. As a result of this penetration, neutral development policy will have differential impacts on people of different religions.

Caste:

In India, most Backward Castes and Scheduled Castes form 80% of the labour force. Backward castes are gaining ground as owners of businesses, but Forward Castes dominate the concentration of capital. A third of all firms use family labour alone while a further 15% will not employ labour not of their caste. So, nearly half the firms are caste-homogeneous. The local economy is increasingly organized in corporatist forms based directly or indirectly on caste. The regulative roles played by caste vary with the position of individual castes and the distribution of castes in different states.

The disposal of waste is part of a paradigm of service and subordination where caste and gender still reflect rank and stigma. Schedule caste labourers do the sanitary work, but they have also entered



trade in commodities with certain physical properties, such as foodstuffs with skins, or things that have to be transformed by cooking prior to consumption, or that are traded in physically dirty surroundings. Caste has been reworked as an economic institution, ad it is least flexible at the base where social disadvantage is most entrenched. While caste/trade associations are intermittent and called into life only when the trade is threatened, many, especially those of business sectors in which Backward Castes operate, ate playing increasingly important roles in regulation. These include the rationing of entry to a trade, the definition of proper contracts, the settlement of disputes, collective insurance, and collective security.

Quotes and (or) Views Supporting Views/Points

Caste is no longer an important agent of social placement of control – Andre Beteille of India

The author gives a counterpoint to the argument stating that the remnants of occupation based castes are organised in several loose hierarchies based on work, diet, religion

Note: The article contains a lot of examples, this summary does not concentrate on the examples and rather we have tried to emphasis more on the content.

The article’s focus is on India's informal economy, what Harriss-White calls "the economy of the India of the 88 per cent". This term is used since more than 74 per cent of the population is rural and another 14 per cent lives in towns with a population below 200,000. The remaining 12 per cent lives in metropolitan cities (page 1). The informal economy generates 90.3 per cent of all livelihoods in India and 60 per cent of the country's net domestic product. Her study of the informal economy leads us, as well, into the country's black economy, with which the informal economy overlaps at several points.

White's central argument in the book is that "the social structures of accumulation" in India create "the matrix through which accumulation and distribution take place" .She argues: "In the India of the 88 per cent, it is clear that a range of non-State social structures, and the ideas and cultural practices attached to them, are even more crucial for accumulation than they are in industrial societies. Six reasons are explored in this article: the structure of the workforce, social classes, gender, religion, caste and space"

Harriss-White draws primarily on data on small-town India, arguing that this is where one can best examine "the non-corporate (economy) in which 88 per cent of Indians live and work" .To delineate the micro-economies of small-town India where the "intermediate classes", who are her main focus, reside, she draws on her own field research from northern Tamil Nadu.



The article focuses on the business classes in their daily dealings with each other, with their workforces and with the local state, reveals the ways in which the local economy is very tightly - though "informally" - controlled and regulated by these mercantile business classes. Her detailed documentation of the business methods of these "intermediate classes", shows the ways, mainly hidden but sometimes brazen, by which the state's control is neutralized and rendered harmless, competition is eliminated, and new entrants kept out of the market. (A lot of examples are given for the same).

Harriss-White argues that it is these intermediate classes that are, in fact, the dominant segment in India's economy. She defends this thesis by arguing that the informal economy, in which the intermediate classes are hegemonic, "accounts for two-thirds of Gross Domestic Product (GDP)" and that "at least half of the informal economy is `black'" .This is why she characterizes the informal economy as "anti-social" - it is regulated by the intermediate classes and ruled by their narrow values based on self-interest.

White further argues that the size of the intermediate classes is growing and a "new wave of small capital, based on primary accumulation, is reinforcing and expanding the informal and black economy, intensifying the casualisation of labour and transferring the risks of unstable livelihoods to the workforce". The severely exploited labour force is radically subordinated and "labour is regulated through the social structures of gender, religion and caste, and of local markets". Her study of the local hegemony of the intermediate classes leads her to conclude: "Fraud and tax evasion are part and parcel of Indian capitalism.... The bulk of the economy is beyond the direct control of the State. Countering this literally anti-social economy calls for the emergence of a more robust and active culture of collective accountability".

The other issue this article raises is the arguments relating to the impact of India's religious pluralism on the structure of its economy and the question of whether capitalism in India is proving to be the "social solvent" that it was widely expected to be. A major contribution of this article is its discussion of the debates on "industrial clusters" (or "industrial districts") in India. Here Harriss-White argues that the overly positive view of "industrial clusters" and "flexible specialisation" in India, that currently prevails, is quite mistaken. She points out that industrial clusters are a common, not exceptional, form of development in India. Low technology is usual in these industrial districts. Contrary to what cluster theory enthusiasts, whose numbers are growing, claim, most industrial clusters do not have the "developmentally positive potential" shown by highly exceptional clusters like Bangalore and Tirupur. In fact, most industrial clusters in India excel in the "super-exploitation" of workers, especially women and children.

Importantly - and this is a fact that cluster enthusiasts often choose to ignore in studied silence - a lot of field research shows that entrepreneurs demonstrate "a complete disregard for anything other than private profit". This, coupled with "the inadequate and negligent enforcement of effluent standards" by the co-opted state, has resulted in vast tracts of agricultural land being rendered unfit for agricultural use, while large sections of local populations have been deprived of their sources of drinking water, because these are now toxic. In Tamil Nadu such disasters have occurred in the Palar Valley (due to tanneries) and in Tirupur (due to the hosiery industry). The state has remained indifferent or slow and extremely reluctant to act against the entrepreneurial class, with whom it is in close collusion. The result is that the burden of these "negative externalities", created by highly



profitable (and much admired) industries, falls, crushingly, on those least able to bear this environmental disaster - the virtually disenfranchised rural poor.

The article describes the strength of the powerful political and institutional forces that rule the economy today, in unholy alliances that have institutionalised corruption and fraud, making them an accepted, everyday part of the economy. These hegemonic forces have created almost overwhelming obstacles to the possibility of "democratically determined accountability".

India’s New Entrepreneurial Classes: The High Growth Economy and Why it is SustainableSunil Bharti Mittal

Summary by Tarun Kumar

The article is from the speech of Sunil Bharti Mittal at Center for the Advanced Study of India, (Occasional Paper Number) on 25th February 2006. The article outlines the story of economic development of India since independence. The story of economic reforms in India and the associated political repercussions have been presented by Mr. Mittal in his speech. He further goes on to establish various factors which ensure that India’s economic growth is permanent and sustainable.

Important Quotes

Quotes and (or) Views Supporting Views/PointsMahatma Gandhi – First they ignore you, then they laugh at you, then they fight you, and then they lose

Story of Bharti showcased all the four stages

Point wise Summary

Summary Supporting quotes and (or) examples

Main issues after independence Famine, hunger, poverty

Refugees from Pakistan Socialism was not only fashionable but appropriate

Serving humanity through state intervention was a global norm

India in 1947-64; under Jawahar Lal Nehru Command and Control economy

No role of private sector except in core sectors e.g. Tatas, Birlas

Govt. Job was most coveted one; IAS, IPS

Profit motive was considered unjustified India in 1964-65; under Lal Bahadur Shastri 1965 war with Pakistan; India was unprepared



after 1962 China war; setback for economic momentum

After 1965; Under Indira Gandhi Shaky start; until 1969

Bangladesh war in 1971; Supremacy of India established

Concept of mixed economy floated

By 74 politics again overwhelmed economics

Some business houses like Modis, Oswals showed up their presence

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

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

1980; Return of Indira Gandhi to power Support to private sector along with dealing with poverty and hunger

Bharti & Reliance born during this timeIndian economy under Mrs. Gandhi Complex import-export policies; license

raj

Lack of transparency; Only incremental steps taken to improve economy

For e.g. sudden ban on import of generators under pressure of Indian manufactures

China overtook india in growth rate

Industry were developed with aim of export to Soviet; estranged with US; close ness to US helped china

1984; Assassination of Indira Gandhi; Rajiv Gandhi took over as prime minister; lost in 1989

Increase in opportunities to new entrepreneurs

Introduction of computers; manufacture of telecom device and private air taxies

Rajiv loss strengthened view that economic reforms are political suicide

Bharti enters telephone manufacturing1989-91; After Rajiv V P Singh came to power followed by short stint by Chandrasekhar

New hope to non business class; attack on business houses; fall of growth rate



India reached verge of bankruptcy

Pledged gold in international markets

Big Business houses grew bigger but no opportunities to new enterants

Entrepreneurs move out of India 1992; P V Narasimha Rao takes over; lost in 1996 Removal of license raj; deftly unshackled

from Soviet union

New entrepreneurial classes emerged

Although govt. Supported but new entrepreneurs had hindrances of bureaucracy and established businesses

Emergence of companies like Jet, Zee, Infosys, Wipro, Satyam

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

Unique business model of telecom industry in India

Lowest tariffs in world

Technology was outsourced to IBM, Ericsson, Nokia; Bharti got involved in customer relationships

Reforms continued under Dr. Manmohan Singh FDI in telecom raised to 74%; equivalent to that in developed countries

Gradual development of Stable policie, low taxes, infrastructure

Service Sectors which have potential of exploitation; Capability to add 1.5% to growth rate

Software, BPO, ITES (already tapped)

Healthcare; Tourism; Innovation and R&D

Creativity and Entertainment industryManufacturing Sector Lost opportunity to China

Still sectors as biotechnologyAgriculture Sector; Gaining Attention Use of technology can enhance exportsSustainability of Indian economic growth Large market size

Large working populationIssues to tackle Regional inequality – mismatch in

population distribution and contribution to



GDP

Urban and rural balance in developmentOther Issues in Q&A round Undertaking of CSR by many companies

Need to develop good relationship with smaller neighbours

Need of Infrastructure; power, roads, airports, education

Need of Tax Reforms

IntroductionArvind Panagariya

Summary by Mohamed Afsal Majeed

An Analytical account and Interpretation of major economic developments in post-independence India and a look at the Current status of policies and a roadmap for future reform plans.

INDIA: THE EMERGING GIANT

Summary Supporting Views/Points Indian Growth story is considered more sustainable than China. It is predicted that India’s GDP growth rate between 2015 and 2050 will exceed all other countries.

Four factors favouring this1) Growth has changed existing conditions in India. E.g. More integrated with the world, better access to innovations in the world2)Due to strong external sector and large Forex reserves – prospects of depreciation of Rs is low3)Demographic transition-huge working age group4)Savings rate will increase-Low contribution of corporate savings to total Savings, unlike China

GROWTH AND REFORMS

Summary Supporting Views/PointsIndian Growth in Four Phases Phase 1: 1951-1965 1) Growth rate from 1% to 4.1%

2) Relatively liberal policies3)But Balance of Payments crisis led to introduction of Foreign Exchange



Budgeting(FEB) in 1958 Phase 2: 1965-1981 1) FEB led to tightening of imports and

investment by mid 1960s2) Major shift to State Control during Indira Gandhi rule. Nationalized commercial banks, oil companies and coal mines3) Ease of control in 1970s & 1980s

Phase3: 1981-1988 1) More liberalization 2) Fiscal expansion , financed partially by External Borrowing

Phase 4: 1988-2006 1) Balance of Payment Crisis 1990-91 1991: Systematic reforms by Dr. Manmohan Singh(then Finance Minister)

1) Dismantle licensing machinery & raw material imports2) Low industrial tariffs3) Open to foreign Investment4) End investment Licensing5) Tax reforms6) Liberalization of financial sector7) Trimming fiscal deficit->7.1% growth

1999: A B Vajpayee Reforms 1) Open economy to foreign and domestic competition2) Build infrastructure3) Import licensing on Consumer goods ended4) Tariff rates reduced5) Reforms in telecommunication sector6) Several PSUs transferred to private hands

2004: Manmohan Singh Government 1) Reforms slow down due to left pressures

POVERTY, INEQUALITY and REFORMS

Summary Supporting Views/PointsReform Era(post 1980s) witnessed more poverty alleviationAuthor believes that inequality should not be a focus in policy making

1) Politicians opt equality oriented policies that hamper growth, 2) Tilting policies in favour of small firms punishes the economy. Eg. Construction of world class roads on time is possible only if the contract is awarded to large firms.3) Tax expenditure policies are anti-poor and aggressive. Big farmers capture all subsidies

THE POLITICAL ECONOMY OF POLICYMAKING

Summary Supporting Views/PointsWith parliamentary democracy of India a determined leader at the top plays a decisive role in Policymaking. Policies are more intended

Opposition to specific reforms from 3 sources1) Ruling Party 2) Opposition Party 3) Those affected.



to win elections than to reduce poverty These entities interact.A strong leader can overcome opposition

Central Government reforms not effective in1) Areas under purview of states e.g. Land reforms2) labour rules. (labour unions guarantee vote banks and hence supported by parties)UPA attributed is victory in 2004 elections to the general public perception that NDA reforms were anti-poor. But this is not entirely true

1) State level politics critical in determining outcomes in each state2) Southern parties like DMK switch sides prior To elections3) Anti-incumbent sentiments at state-level4) Voting pattern did not support the interpretation.

ISSUES IN MACROECONOMICS

Summary Supporting Views/PointsIndia has a relatively stable macroeconomic environment. Focus on efficiency only recently

1) India witnessed only occasional crisis which are mild and short-lived2) Inflation largely on single digits3) Employment rates stable

Large Fiscal Deficit and Public debt are serious reform issues relating to Macroeconomic policiesRBI has reasonably well 1) Avoided short-run fluctuations in exchange

rate2)Steady inflow of foreign investment and remittance

Should India allow Full Capital Account Convertibility? – Permission to convert any amount of rupees into other currenciesConsiderable freeing up of financial markets since 1990s

1) Interest largely market-determined2) Proportion of Non-performing assets lowered3) Ease of entry of private banks - competition

Capital Markets: greater progress in Equity market compared to Bond market

1) Corporate bond market remains thin2) SEBI setup in 1987, statutory status in 19903) Derivative trade introduced in 2000 4) FII active players in market5) Private MFs and Insurance emerged6) IRDA setup in 19997) Pension funds yet to penetrate unorganised sector

TRANSFORMING INDIA

Summary Supporting Views/PointsThe Ultimate Development Problem – Transforming rural agrarian economy into

1) Share of Agriculture in GDP has fallen(28.5 to 16.5 from 1991-2005)



modern one 2) Outside agriculture, about 90% employed in informal unorganized sector

Slow growth of unskilled sector -> Slow growth in manufacturing sector -> Slow industrial growth -> Slow transformationSuggestion to increase pace1) Remove growth barriers in unskilled sector2) Agricultural reforms to connect farmers with urban market3) Removal of tariffs and export subsidies4) flexible labour market regime in SEZs5) Anti-dumping support policies6) Speedy conclusion of Doha Round7) labour market reforms8) Revival of Genuine privatization9) Building of Urban Infrastructure10) Reforms of higher Education

TELECOMMUNICATION: A TRIUMPH OF REFORMS

Summary Supporting Views/PointsNew Telecom Policy (NTP) of 1999 – A Crucial step in the revolution.

1) Separated the Service Provision (now BSNL) and policy making arms of DoT. 2) Introduced Unified License – allowed license-holder to provide wireless and wire-line service

Can this success be replicated in Electricity? Possible but takes some time1) Most state governments ill-equipped to implement independent regulatory regime2) Private entry limited as the principal consumers are financially weak state entities

TRANSPORTATION: A MIXED RECORD

Summary Supporting Views/PointsSuccess in two areas1) National Highway Construction2) Civil Aviation

Major AchievementsNational Highway i) Near completion of Golden QuadrilateralDomestic Civil Aviationi) free entry into airline industryii) Public Private participation in construction of Airports

Two black marks1) Rural Roads2) Urban infrastructure



PUBLIC DELIVERY OF SOCIAL SERVICES: A FAILED EXPERIMENT

Summary Supporting Views/PointsGovernment of India has grossly failed in delivery of public services like education, health and water

1) Most of the healthcare by private hospitals2) Rampant absenteeism among Government health workers (40%)3) Private schools account for 18% students in urban areas4) Quality in public schools poor5) Teacher absenteeism6) Higher education in shambles, under control of central government

Author’s suggestion: 1) Learn from infrastructure failure. Deploy private sector more efficiently in public services2) For outpatients, transfer cash and let them choose the provider3) Provide insurance for inpatients4) provide education vouchers for poor5) Complete overhaul of Higher Education

Banias and Beyond: The Dynamics of Caste and Big Business in Modern IndiaHarish Damodaran

Summary by A V Naga Chaitanya

The article examines diversity in economic and business spheres.

Quotes and (or) Views Supporting Views/Points“We are going to enter a life of contradictions. In politics we will have equality and in social and economic life we will have inequality” – Dr. B. R. Ambedkar at the penultimate sitting of the Constituent Assembly

The Author is of the view that Dr. Ambedkar’s prognosis stands vindicated even today.

1. Politics: Increasing involvement of lower castes in Indian politics

2. Business: Situation is better off than in 1947 but still long way to go

South India is much better off than north India as far as involvement of non-mercantile classes in business is concerned. The West does better than the north

Southern enterprises run by non-trading classes: Eenadu(Kamma), GMR (Komati), Asianet(Nair), Many sugar mills in TN(Gounders), The Hindu (Brahmins)North: Business dominated by Bania castes. Jats the primary growers of sugar and Gujjars the primary owners of milch cattle have little or no presence in Sugar mills and Dairies.West: Peasant castes like Marathas and patidars



have made successful entry in to industry

Reasons for regional disparity in the involvement of non-mercantile classes in business

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

There are three general trajectories of industrial transition by communities

1. Bazaar-to-Factory route: Banias and Vaishyas

2. Office-to-Factory route: Brahmins, Khatris, Kayasthas and other scribal castes

3. Field-to-Factory route: Involved – Shudras: one of the castest in the chaturvarna system ,– Kammas, Reddys, Jats, Patidars, Marathas, Nadars etc.

The Dalits however, have little or no presence in business

The authors did not come across a single dalit industrialist in their studies – even in the south. The rise of BSP is expected to create a favourable environment for Dalits to enter business (mooting tax breaks). Buts its still early days.

Caste identities are ephemeral in the business space. Capitalism overrides ideals of collective enterprise

The Nadar Mahajan Sangam financed the Tamilnad Mercantile Bank to finance Nadar entrepreneurs. Over a course of 70 years(1921-1990) the bank changed hands to finally end up in the hands of a California-settled Mudaliar. The Sangam could do nothing to prevent this.

Community feelings are strong amongst the financial weak. But community feelings are invoked by the elite, it is usually done with an opportunistic intent.Even regional and other ethnic identities fade in the business space. An emergent bourgeoisie may play up subnational pride and provincial politics (Telugu Desam, DMK, Akali Dal etc.). But as capital accumulates the lines between regional and national bourgeoisie are blurred. Previously provincial demagogues develop greater stakes at the centre.

Dismantling of licence raj occurred almost simultaneously with coalition politics becoming the order of the day. Regional parties are propping up the national government.



Summary

Summary Supporting quotes and (or) examples Diversity in the political sphere is much greater than in the business sphere. The involvement of non-mercantile classes in business has been higher in South and West than in North. Three reasons:1. Education2. Affirmative Action3. Strangle hold of mercantile castes in the North Castes have taken three routes for transition to business1. Market-to-Factory: Mercantile castes2. Office-to-Factory: Scribal castes3. Field-to-Factory: Sudras Dalits still have no presence in industry. Even in the South. Caste,regional and ethnic identities fade in the business sphere as capital accumulates As capital accumulates the identity of national bourgeoisie becomes stronger. Regional parties develop greater stakes at the centre. Coalition politics becomes the order of the day.

Traditional Female Moral Exemplars in IndiaMadhu Kishwar

Summary by Jagadeesh

The write-up is about the flexibility provided by the Hindu religion to its followers in terms of moral codes with an emphasis on the female deities and their relevance to the lives of Hindu women.

Quotes and (or) Views Supporting Views/Points The Hindu religion is highly flexible and allows great degrees of freedom to its followers to interpret and follow the religion.

The central theme of the passages, which is brought out with many examples.

Hindu religion reveres the females among the Gods and humans and the Hindu society bestows a huge amount of power to the Goddesses and ladies devoted to a cause.

Explained through the examples of Goddess Shakti who is not dependent on any male God and Meerabai who flouted society’s rules through the virtue of her devotion.

The divide between humans and the Gods are not sharp in Hinduism and the Gods are changed or created with changing times.

Incarnartions of Gods on earth and the elevation of humans to the divine level. Interpretations and redefinition of Hindu Gods explained with examples.



Summary Supporting quotes and (or) examples The Hindu religion allows atheists to be an integral part of the community without punishing them.

The Hindu divinities do not issue any commandments.

The deities have been ingrained in the collective psyche of the community. They are not perceived to be distant heavenly figures, but are present in most people’s lives. The gods demonstrate standards of morality which are not prescriptive but can be interpreted and emulated (not replicated) by the followers.

It is very common for a dutiful son to be praised as Ram incarnate.

There is no sharp divide between the divine and the human. Gods descend to earth and allow themselves to be judged by believers and non-believers alike. They do not claim perfection

Vishnu’s incarnation, Ram though touted to be the best of men, till date receives sharp criticism on his harsh treatment of Sita.

The religion allows its followers to rewrite and redefine the roles of Gods.

Ramayan and Mahabharat have hundreds of known versions.

The religion even allows humans to punish Gods. Yashoda punishing Krishna for his pranks (Story)Drought prone villages immerse the idol of the deity in water until the rain arrives (Reality)

Humans are allowed to be elevated to the divine levels for their exceptional devotion in matters ranging from morality to valour. A lot of importance is attached to people/Gods who devote themselves to a cause larger themselves, those who are extraordinarily committed towards performing their worldly duties. Parents and their kids are expected to love each other more than themselves.

Meerabai achieved divinity through her Bhakti.Ganesha won the right to be the first to be invoked in religious rituals by treating his parents, as his entire world. Pundalik through his devotion to his parents could mesmerise Lord Krishna make him stand on a brick for a very long time.

Feminine energy is believed to represent the energising force of every being and everything.

Every God is static/dead without Shakti. But Shakti is complete in herself. She needs no male to legitimise her power.

The followers have the freedom to create new deities if required, which allows them to get closer to their Gods.

Creation of new Gods like Santoshi Ma and Bharat Mata who are products of a particular era.

Women who manifest extraordinary strength and are not afraid of men are treated with reverence. Any woman could exercise this strength to bring order to the chaos around them.

Village women who rise in rage against men grow in stature and become village deities.Even Indira Gandhi was compared to Durga.

Hindu women have a wide range of moral exemplars. One category reveres the marital bond, yet another category of female saints are those who abstain from marriage altogether.

Sita is deified, so are other saints like Meerabai, Avvai, Andal, Akka Mahadevi and Lal Ded who either rejected or walked away from marriage.

Hindu women, once they devote themselves to a higher religious/social/political cause, are allowed to break all the rules of the society. Celibacy is considered a sign of power derived from high levels of resolve. Thus single Goddesses like Durga provide a role model to the women who want to opt out of matrimony.

Meerabai despite being a Rajput queen could flout all the rules of the society through her unflinching devotion to Krishna. The participation of women in the Freedom movement was likened to Meerabai’s devotion.



Hindu Goddesses are potrayed to preach peace and co-existence.

Proven by the fact that there are no clashes between Goddesses while the devotees of male Gods have known to fight each other historically

Hindu shastras emphasise that codes of morality have to be time, place and person specific. The religion allows us to rework our codes based on changing times.

Gandhi used Sita as a symbol to promote women’s liberation. His Sita was no slave of Ram and even Ravan was afraid to approach her. The essence of Satyagraha which is securing a moral victory over one’s opponent by winning his heart is exactly how Sita managed to be one-up on Ram.

In Hinduism the right to interpret and attribute meaning to the Gods belongs to each devotee. Thus Hindu religion and culture have extraordinary versatility and ability to adapt to diverse situations.

No orthodox Hindu opposed the use of Sita by Gandhi.

Pangs of ChangeMN Srinivas

Summary by Rithin B

The author speaks about India as a secular miracle of the world but suffering from poor quality of democracy.

Indian democracy is one of the secular miracles of the modern world and is a model for developing countries. Democracy is becoming deeply rooted through Panchayat Raj and Nagarpalika Acts. Though India is emerging as a major power the rate of growth is slow. The leaders do not seem to care about the country’s fortunes but in spite of its leaders India is still showing progress.

Transfer of Power: Decentralization of power to districts, tehsils, villages, cities and towns has made government officials accountable to the people. Though decentralization has brought about speed, efficiency and openness, it has also given rise to conflicts in Panchayat raj system. Rural dominant classes occupy privileged positions and use their power to receive services from other backward classes in the society. Failure to perform such services leads to bloody clashes which lead to translating the constitutional commitment to equality into a reality. The police, law courts, media should support the Dalit demand for equality and make the dominant castes to accept democratic values and practices.

Quality of Indian Democracy: The quality of our Democracy is poor. This is reflected by the low literacy rate (48%) at national level. This is even lower in the BIMARU states (Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh) which also presents very low female literacy rates. Political parties are



trying to make education a fundamental right believing that public interest litigation will atleast goad the states to implement it.

One of the achievements of our democracy is banning of untouchability (Article 17) by constitution of India (1950) by making its practice a cognizable offence under the Civil rights Act 1975. This is viewed as incidental to constitutional assertion of equality of all citizens which prohibits discrimination of citizens on the grounds of religion, caste, race, sex etc.

Reservation of seats in legislatures, education and employment for scheduled castes and tribes is a continuation from the colonial rule. This is intended to protect and promote the interests of groups who thought they would suffer under conditions of open competition. Reservation in legislatures is to enable them to work for the betterment of their communities and constituencies. Empowerment of backward classes occurred prior to independence in South India and post independence in North India.

Job reservations for OBCs developed into a national issue in 1990. Secondary Backward Classes Commission had made several recommendations for improvement of backward classes. In 1989, Janata Dal included this in its election manifesto. Janata Dal’s leader V.P Singh agreed to implement the mandal commission’s recommendation of reserving 27% of government jobs for backward classes. This created considerable unrest in the country. Nehru’s aim of establishing “casteless and classless society” gave away under V.P Singh’s leadership to “socialism with caste farce” ideology. Many People hailed V.P Singh’s decision as a “secular revolution” while others considered it extremely divisive. In 1992, Supreme court provided approval for 27% reservation of government jobs to OBCs. It decreed that quantum of reservation should not exceed 50% and also to exclude the creamy layers among the backward classes from the benefits.

Reservation has become popular in the recent years as a means to access education, employment and power. Reservations are being demanded by different communities on the whole (Muslims, Dalit Christians) and/or for the backward classes among them. This has lead to conflicts as scheduled castes believe that providing reservations to these communities would cut into their share of quota.

Woman reservation seeking 33.3% reservation in Parliament and state legislatures has become an emotive issue which has been further complicated by demand for “sub reservation” for women from OBCs.

Reservation is now unfortunately treated as a panacea for poverty, lack of education, employment, political power. Reservation is helpful only up to a certain point and it can’t be used as a tool for restructuring the society. The benefits are mainly used by the creamy layers rather than the deserving. This causes envy among the very poor groups of such classes who become bitter and antagonistic to the scheduled castes. Such envy is widespread among the dominant classes who are unable to adjust themselves to the easy access provided to the backward classes for education, employment etc. This results in clashes between the dominant and the scheduled castes which will further increase as education spreads. This revolution will not be swift and bloody but rather long and bleeding.



Reservation seems as a total solution to backwardness in India. Those in power think that once reservation status is provided to a group, the government responsibility towards such group ceases. No attention is given to monitor the progress of such groups. No measures are taken to ensure that the backward classes are benefited from these reservations.

Finally reservation fails to address the most important problem of the country i.e, mass poverty and the many ills associated with it. Resolving mass poverty issues involve addressing failure to make primary education universal, lack of primary healthcare facilities, drinking water and sanitation problems, neglect of girl children and empowerment of women. Eradication of mass poverty would help in releasing and utilizing the creative energies of people in an efficient manner.

Another striking but not sufficiently addressed issue is the great divide that exists between the leaders and the people of the country. Leaders are involved in using power to their own good rather than that of their people. As Gandhi once said “My people are ahead of me, I must run and catch up with them for I am their leader”. But today’s leaders are not even aware that the people are far ahead of them.

Democracy and Secularism in IndiaAmartya Sen

Summary by Anjan Kumar

It is a section taken by Mr. Amartya Sen from a chapter named “What is wrong with India?” from one of the talks delivered in Cornell University. He has tried to bring out the loopholes which still persist in Indian democracy and secularist form of system, compared with authoritarian countries, scope of development and merits of following the system.

He asserts that Indians should rightly learn from their errors of the past and must not forget our social commitments based on which we galvanized as a nation, pre independence. The same was reflected in our aspirations to set the country free.

We pledged to mould India into a secular and democratic country. It was a challenging task more so because none of the poor country were both and India was experiencing bloody communal riots at that point of time. However, as we grew the vision seem to be plausible. But in the process, the underlying principles suffered hard knocks. Embracing this system of government has many a times led to frustration as it didn’t deliver as was expected. On the other hand, Authoritarian countries like South Korea, Singapore and China seem to have achieved much more in economic growth and enrichment than India has. India though has tried to become a secular country but due to multi-ethnic and multi-religious conception, it has always been a pro-Hindu country. But the “proto-Hindutva” which is basically the group surrounding the hard core of “Hindutva” are less extremist. There are other challenging questions like endemic hunger, ill health, illiteracy, gender in equality, inequality of class, survival of social barriers of caste, unequal economic opportunities etc which India should worry about.



Advantage of Democracy:

Indian democracy has been affected by violation of political and civil rights and individual liberties. Economic growth is important in removing poverty. In assessing the democracy we must also taken into account its impact on the lives and capabilities of citizens. The role of eradicating famine has received attention. The financial crisis in countries like South Korea, Thailand Indonesia took its toll on these nations and hence, during famines the people didn’t have voice to raise the issue. Democracy gives an opportunity to opposition to change the policies even when the problem is chronic.

China and India:

(1) Greater Chinese success in handling endemic deprivation(2) Larger Chinese success in making use of the opportunities from global trade(3) Worse Chinese records in handling the famines(4) Greater life expectancy of Chinese people than Indians(5) Radical economic reforms in 1979 gave an advantage if nearly two decades to china

However, India of late has surpassed the life expectancy rate as compared to china. In India, the rate grew three times after independence while in china it came to a stagnation point. Kerala whose life expectancy is 75 is greater than china’s 70 which was earlier dominated by China. It is possible to argue that Kerala, with its left leaning politics and competitive democracy combined has the same kind of political commitment that favored china as a whole over India.

If something lies wrong in Indian democracy then it is in timidity of its practice. It will depend upon certain factors such as preservation of democracy, much greater political focus on social progress, incentives and openness and equity among different economic groups.

Assessment of secularism:

The incidences of Babri Masjid case and the attack on minorities in Gujrat (Riots), has made Proto- Hindutva group to criticize severely the secular commitments of India at the time of independence.

There are two facts which cannot be denied:

(1) The statistical fact that Hindus form the overwhelming majority of Indians.(2) The historical fact that Hindu tradition is more than 3000 years old in Inidan history and has

its imprints on Indian culture.

Hence, Hinduism cannot be treated as a mere set of beliefs of one community among others in a multi-religious and secular India. And yet India has more Muslims than any other Muslim nations. Indian constitution recognizes that the rights of minorities are not violated and the political and legal fairness of demand of rights exists for every citizen of India. There is nothing called majority in India as it can be categorized under different segments like set of non rich people, set of rural residents, people who do not work in the organized sector etc. Hence, the statistical facts given for Hindutva can be discussed on a broader perspective than in figures. When Bangladesh wanted a separate nation it was not because their religion was different from west Pakistan but based upon their language, literature and political priorities. The weakness in Hindu majoritarianism lies because



there are other parameters which is to be considered like class, region, literature, political convictions, language, culture etc. Hence, the statistical argument is misconstrued and hollowed.

The other argument of Hindutva because of its strong presence of historical background is also a misconception. The Buddhism, Jainism and Christian communities which lasted over a millennium in Indian civilization has deeply impacted its culture and society at large. Evn before Islam arrived in India, it was known as a Budhdhist country and hence, the arguments are futile. Gandhiji and Rabindrnath Tagore both wanted India to be distinct in its identity but not on the basis of privilege of one community over other but on political reasoning.

Affirmation without ReservationPratap Bhanu Mehta

Summary by Ravi M V

Quotes and (or) Views Supporting Views/PointsAuthor feels that there has to be a middle ground when it comes to reservations. And reservations are not against a country development.

Malaysia has extensive programme for private sector reservation but it still has prospered economically.


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

Reservations alone will not alleviate the conditions of the marginalised communities of India Proponents of reservation are on much stronger footing when they base arguments on the premise that Indian labour market require anti discrimination measures

Malaysia, US, Canada, South Africa have anti discrimination legislatures

Similarly reasons opposition to reservations are untenable

Most dalits feel that they have too much to lose by the liberalization. Some commitment will have to be made to demonstrate that dalits will not be left out of the wealth creating process of market. Modern India has record of policies that are undertaken in the name of deprived sections but hurt them the most.

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

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



transparent.

It is dishonest for industry to talk about merit when most of its policies hinder the discovery of talent.

Openings are not listed in the employment exchanges.

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

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

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

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

When we talk of the private sector it is clear that something approaching 50% reservations makes a mockery of the private sector's status as private. Unfortunately reservations have an inherent nature of escalation and expansion.

A case could be made for limited reservations in the 22.5 percent range.

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

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

Conceptually anti discrimination and reservations are different but in practice they metamorphose into one.

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



There are numerous other instruments for affirmative action other than reservations. Another incentive should be the tax breaks for companies who implement this reservation for the dalits voluntarily.

Licences for liquor shops and broadcasting licences will help the dalits to be benefitted on grass root level.

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

Redesigning Affirmative ActionYogendra Yadav and Satish Deshpande

Summary by Anuprakash

The article talks about the quota system that has been in implementation in India for education sector. It dissects the existing system and exposes its advantages and disadvantages. Further, the authors propose a new model where the quota system, though based on caste also has other factors of considerations.

The Article discusses the following:

Specificity of OBCs and challenges they pose to policy design

Decision of Government of India to implement OBC reservations in elite professional education

Available micro-statistical evidence on which an alternative design can be based

Basic features of he model that addreses the group and individual disadvantages

Specificity and potential advantages of the model specified

Point-wise summary

Summary Supporting quotes and (or) examplesIndia’s affirmative action policy is among the largest, longest standing, most elaborate and successful initiatives of its kind in the world.India’s weakness - Lack of sustained efforts to affirmative action policies

Since adoption of constitution in 1950, there have been no substantial changes in the basic affirmative action prescription or reserving proportional quotas in selected fields.

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



entitled groupNot necessarily the best option Examples in recent time:

Extension of quotas to groups other than SC/ST

More women in legislature Altering social profile of job holders in

private sectorLimitations of quota system:

1. Alters status quo of inter group power equations

2. Political costs are higher and social benefits are meagre or badly targeted

Affirmative Actions and OBCs OBC reservation has faced questions on

precise relationships between caste and backwardness

Alternative approach Move towards a nuances policy design

that captures the degree of disadvantage and kind of disadvantage

Transition to a more integrated policy framework where caste is only one among the many parameters of evaluation

For SCs – reservation was based on the idea of untouchability

For STs – reservation was based on the separation from the mainstream Hindu society and undisputed poverty

Mandal conflagaration of 1990 when quota system was questioned

Anti reservation movement of May 2006

Mandal II : The road not taken Available evidence shows that OBCs as

a whole are disadvantaged compared to the upper caste as a whole.

The caste bloc approach adopted by the government will help us reduce the inequality

Disadvantage: Has high long-term costs; one dimensional caste quota result in inefficient targeting. Relatively better off families fro the upper OBCs will be the benefactors.

Non OBC families will rightly feel that they are more disadvantaged than the OBC category

Recommendations: o Making creamy layer within the

OBCs as the last claimant of the benefits of reservations

o Sub dividing the quota into “upper” and “lower” OBCs

Long Term Measures should also be taken up. Independent organisations like National Sample Survey Organisation can be requested to conduct a nation wide survey to create a social profile of higher educational

Even a crude caste quota is better than none

Veerappa Moily Oversight Committee on implementation of reservation in higher education

The system has to build in guards to prevent a handful of OBC communities to get all the benefits(who are much better placed than the others)

Committee can suggest some special provision for OBC women to access quota.



institutions and job holders. This will help fine tune the policy making in the future.

Setting up a permanent statutory body to regularly monitor the diversity profile of the public institutions and advise the government on improving them.

Towards Better Policy Design

The effort is aimed at explicitly linking empirical information related to disadvantages

The system should bring out the basic reason why the affirmative action is being undertaken

The initiative should provide rational explanation why specific castes and communities are entitled to compensatory discrimination and undermines the attitude that treats such entitlements as birthrights

More nuanced and comprehensive framework will lead to more precise targeting – Will produce faster and better results.

Disadvantage: Due to this the policy design can become much complicated and the institutional mechanisms involved can become fragile.

Better affirmative actions can be designed to cultivate the following features:

An evidence based approach Sensitivity to multiple dimensions of

disadvantage including but not limited to caste

Sensitivity to the inter action effects of the different dimensions o the disadvantage

Sensitivity to degrees of relative disadvantage

Should introduce a stable method of measuring things like interaction effects and relative intensity of disadvantage

An Alternative Model The new model addresses the four

dimensions - Caste/communities, gender, region and sector of residence

The scheme should also look at the individual disadvantages apart from the group disadvantages

Exact weights to be allocated for academic performance and social disadvantage will be a key issue.

Specificities and Advantages Create a bloc of reserved seats Apply the proposal to all the seats not

covered under the existing reservation for SC/ST

Disadvantage of the government proposal is that it only recognises the caste as the sole criteria for group disadvantage

The new scheme addresses the interaction effects between different axes of disadvantages.

The new model consider: individual disadvantages relating to family

While Government proposes to have all or nothing approach to recognising disadvantage, the proposal given is flexible in dealing with variations in degrees of disadvantage.

The model proposed will push the thinking on social justice along constructive and rational lines.

It will allow us to demonstrate that affirmative action is not about appeasement of particular castes or communities but about abolishing continuing sources of tangible disadvantages in our unequal and



background and type of schooling. Disadvantage of the proposed model is

that it intensifies caste identities. It concentrates on the identities rather than on the valid social reason why these identities are used.

The model with its transparent indicators , allows scrutiny and oversight as well as legitimate debate

It also addresses the prickly issues like the legitimate claim of the poor or the disadvantaged upper castes.

unjust society.

Women and the Labyrinth of LeadershipSummary by Balasubramanian A

The authors seek to analyze the current situation of women in the corporate world and the obstacles they encounter on their ascent to top managerial positions, popularly referred to as the C-suite 1, by way of this article.

Despite progress by women in the workforce in general, (they now occupy more than 40% of all managerial positions in the United States), within the C-Suite, they remain as rare as hen’s teeth.

Some key facts in support of this statement are given below.

Among the most highly paid executives in the Fortune 500 companies, i.e. President, Chairman, CEO and COO, only 6% are women.

Most notably, only 2% of the CEOs are women Only 15% of the seats on the boards of directors are held by women.

We find similar abysmal figures for companies in the European Union as well.

In 1986, Wall Street Journal’s Carol Hymowitz and Timothy Schellhardt gave the world an answer. “Even those few women who steadily rose through the ranks eventually crashed into an invisible barrier. The executive suite seemed within their grasp, but they just couldn’t break through the Glass Ceiling”. This was how the famous metaphor, “The Glass Ceiling” that women are purported to face in Organizations was born.

Through the years, Leadership has been denied explicitly to women and even Country Heads were not privy to this. Former President of the United States, Richard Nixon, once said,”I don’t think a woman should be in any government job whatsoever...mainly because they are erratic; and emotional. Men are erratic and emotional too, but the point is a woman is more likely to be.”

1 The group of officers of a business organization, who have the word "chief" in their titles.Hyponym: CEO



But the authors feel that times have changed now and the Glass Ceiling metaphor is more wrong than right. Hence, they elaborate on the need to usher in a new metaphor to betta

A better metaphor that confronts women in an organization in their professional endeavours is The Labyrinth.2

As a contemporary symbol, it conveys the idea of complex journey towards a goal worth striving for. Passage through a labyrinth is not simple or direct, but requires persistence, awareness of one’s progress and a careful analysis of the puzzles that lie ahead.

Walls All Around:

The following are some of the obstructions women run up against.

1. Vestiges of Prejudice:

It is a well-established fact that men as a group still have the benefit of higher wages and faster promotions. In the United States in 2005, for example, women employed full time earned 81 cents for every dollar men earned.

A study conducted by the U.S. GAO (Government Accountability Office) has showed that marriage and parenthood were associated with higher wages for men but not for women. In contrast, other characteristics like education had a more positive effect on women’s wages than on men’s.

Discriminations evidently do affect promotions. It has been found that promotions came more slowly for women than for men with equivalent qualifications. One illustrative study followed workers from 1980 -92 and found that white men were more likely to attain managerial positions than white women, black men and black women.

In an experiment, subjects were asked to evaluate hypothetical individuals as managers or as job candidates and all characteristics of these individuals are held constant except for their sex. Students unwittingly evaluated the essays given to them without knowing that all the other students had received identical essays with only the ascribed name being different. Some had received the essay to be written by a male candidate and others had received the same essay to have been written by a female candidate. This study conducted in 1968 showed an overall gender bias. Women received lower evaluations unless the essay was on a feminine topic. Some 40 years later, experiments continue to yield similar results.

However, there is little evidence that the odds are stacked higher against women with each step up the ladder – that is, women’s promotions become increasingly less likely at each than men’s at higher levels of organizations. Instead, a general bias against women appears to operate with approximately equal strength at all levels. Hence, the “Glass Ceiling” metaphor does not hold.

2. Resistance to Women’s leadership: Essentially, a set of widely shared conscious and unconscious mental associations about

men, women and leaders fuels the discrimination we’ve been describing.

2 Complex system of paths or tunnels in which it is easy to get lost. In short, a maze.



In psychologists’ lingo, the clash is between two sets of associations, communal and agentic. Women are associated with communal qualities, which convey a concern for compassionate treatment of others. In contrast, men are associated with agentic qualities, which convey assertion and control.

As a result, women leaders find themselves in a double bind. If they are highly communal, they may be criticized for not being agentic enough. But if they are highly agentic, they may be criticized for lacking communion. This explains the fact that people are more resistant to women’s influence than to men’s.

This boils down to the case where women are denied the full benefits of being warm and considerate. Because people expect it of women, nice behaviour that seems noteworthy in men seems unimpressive in women.

Moreover, verbally intimidating others can undermine a woman’s influence, and assertive behaviour can reduce her chances of a getting a job or advancing in her career. Simply disagreeing can get women into trouble. Men who disagree or act otherwise act dominant get away with it more often than women do.

3. Issues of Leadership Style: Female leaders often struggle to cultivate an appropriate and effective leadership style. There is a real penalty for a woman who behaves like a man. The men don’t like her and

the women don’t either. Styles of leadership – Transformational, Transactional and Laissez-Faire. Women tend to

be more Transformational i.e. establish themselves as role models, state future goals develop plans, motivate and innovate, even when their organizations are generally successful. Men tend to be more Transactional i.e. establish give-and-take relationships that appeal to subordinates’ self-interest such as clarifying responsibilities, rewarding them, correcting for failures, etc.,

An important observation has been made here that male leaders tend to stick to Laissez-Faire mode (concerning itself with neither of the above two) more than women do.

4. Demands of Family Life The most fateful turns taken in the labyrinth are the ones taken under pressure of family

responsibilities. Average housework time spent by men has gone up to 11 hours per week in 2005

compared to 5 in 1965. Women spend an average of 19 hours per week in 2005 towards housework as against 24 in 1965

Decision makers often assume that mothers have domestic responsibilities which makes it inappropriate to promote them to demanding positions.

5. Underinvestment in Social Capital: Perhaps the most destructive result of the work/family balancing act so many women

must perform is that it leaves little time for socializing with colleagues and building professional networks.

This results in a compromise on Social Capital, which is more necessary to manager’s advancement of than skilful performance of traditional manager’s tasks.



Management Interventions that work:

Taking into account the various obstacles face in their ascent in the labyrinth that confronts them in organizations, the following interventions by the management have been suggested by the authors;

Increase people’s awareness of the psychological drivers of prejudice towards female leaders, and work to dispel those prejudices.

Change the long hours norm – Firms must not blindly consider “hours spent at work”. This can benefit women with family demands and cannot spend too much time at work but are highly productive

Be more objective in evaluation. Surveys indicate that firms are subjective in the evaluation of people especially in terms of gender. This practice must be avoided.

Use open – recruitment tools, such as advertising and employment agencies, rather than relying on informal social networks and referrals to fill positions.

Ensure a critical mass of women in executive positions – not just one or two women. Avoid having a sole female member of any team. Help shore up social capital. Women should be assisted in building networks to enhance

their careers. Prepare women for line management with appropriately demanding assignments. Allow employees who have significant parental responsibility more time to prove themselves

worthy of promotion Exercising of family-friendly options such as generous parental leave and part-time work by

women can seriously hamper their careers. Hence, encourage male participation in family-friendly benefits in equal measure.

Welcome women back.

Feminization of Poverty in Post - Apartheid South AfricaSummary by Shikha Rawat

Main Idea:

Black women in South Africa have been oppressed through the ages due to a patriarchal setup which encompasses the social, political and economic spheres. Through, colonialism, apartheid and post-apartheid eras they have been the lowest on the rung and have faced exploitation.

Summary:

Apartheid South Africa was structured socially, politically and economically along racial lines. The separation of the black community from the mainstream economy and withholding of political rights led to the black majority being ‘ghettoised’. South Africa ended up having the highest Gini Co-efficient in the world (a measure of income inequality). This system and structure of the economy has remained unchanged in post-apartheid era.



Racial segregation and economic deprivation combined with patriarchy had a staggering impact on the lives of millions of black women. They have been historically allocated the role of looking after the family and putting food on the table. This had led to their oppression by men in the workplace, by the state as well as in the home. The poorer the woman in, the more she is oppressed.

ANC – RDP and GEAR:

The ANC came to power in 1994 riding on the crest of the Reconstruction and Development Programme’ (RDP). It promised free basic services, employment opportunities for all and a rise in the living standards of the poor black majority. However, soon after coming to power it discarded these plans and instead adopted a standard neoliberal macroeconomic policy which envisaged reduction of trade barriers, minimal state role, cuts in state expenditure of development and welfare and a prominence to big business. The Growth, Employment And Redistribution policy (GEAR) was announced in 1996.

The consequences were:

Cuts in social grants which directly impacted the ability of poor black women to pay for food and other basic services.

Privatization of basic services such as water and electricity which further escalated the plight of these women living in squalor in communities such as Bayview.

Reduction of tariffs, in the textile and leather industries for instance, led to decimation of tens of thousands of jobs mostly in the low-skilled areas, traditionally employing poor black women. This further pushed these women into poverty.

Minimal safety net combined with rising food prices leading to food security crisis and presence of stunting among children.

Women are forced to work in informal ‘sweatshops’ or forced into begging and prostitution to put food on the table.

Dilemma between paying for food or for basic services.

The women of Bayview agree that their situation has worsened since 1996. These women also suffer at the hands of abusive husbands and are considered secondary citizens not only by the social and political framework but also within the household. They have none of the rights but all the responsibilities. For women living in rural areas, the situation is worse. In South Africa, both during and after apartheid, men have held, and continue to hold power over women and not alongside them.

In recent years there has been a rise in social movements in forms of resistance to electricity and water cuts. People have organized themselves into groups such as the Bayview Flat Residents Association. Most of the people in such movements are poor black women. There is a



need to differentiate this movement from just being on the lines of race and class to one based on gender as well.

While there have been women entering parliament and women making it big in the patriarchal capitalist setup in South Africa, majority of poor black women still suffer.

Quotes:

“Patriarchal capitalism defines women as performers of unpaid labour, as wives and mothers responsible for the care of the family”

“majority of women still suffer from the secondary status imposed on women in the community and at home through a patriarchal ideology expressed through religion, culture, customary law and tradition”

Thirty Years On: Women's Studies Reflects on the Women's MovementShilpa Phadke

Summary by M Siril Nitesh

During period of national emergency(1970), the women’s movement in India assumed a form and role that was different from the one that existed during social reform phase and as well as struggle for independence and is referred to as contemporary women’s movement.

The report (data) given by committee on the status of women in India (CWSI) in 1974 lent legitimacy to protests mounted by the women’s movement and helped them to gain state, media and public support.

Violence against women was an important rallying point for the women’s movement in its early phase which ultimately led to the quest for legal reforms by the women’s movement.

The efforts of this women’s movement had different foci at different points of time in the history which include a preoccupation with protectionism during the social reform movement, a quest for constitutional and formal equality during struggle for independence and finally attack on patriarchy.

Rape:

The widespread campaign against Supreme Court judgment in the Mathura case (during 1970-80) brought women’s issues on to public agenda and lobbied for a change in the rape laws. The mass support obtained from public and media during this protest made the women’s issues assume a political significance that political parties could not ignore.

The major demands for legal reforms were:



To shift onus of proof form the prosecution to the accused. During rape trial a woman’s sexual history should not be used as evidence.

However, when the law was amended the latter was not incorporated and former only partially accommodated cases of custodial rape.

One of the major flaws in the amendment was that the campaign had been unable to dispel conservative assumptions about virginity and chastity.

Also there was a clause included in the amended law which made publishing anything related to a rape trial an offence.

Dowry:

The anti-dowry agitation marked the feminist assertion of the personal as the political through an activist agenda. This agitation focused attention of both Indian and international media on the atrocities against women. It was driven by an energy which in time was “transformed into a brand of activism which asserted women’s agency in social change.” Some of the major events that took place are as follows:

Women’s organizations vocalized that dowry was not an isolated phenomenon, but was linked to the inferior status and position of women in the society.

Efforts were made to mobilize opinion in the concerned neighborhoods. The strategy which was extremely effective was social ostracism and visible campaigning

outside the house of the families that murdered their daughter-in-law for dowry and were successful in marking them out as murderers.

Focused in many ways on effecting new legislation like increase in the punishment, making the offence a non-bail able and shifting the burden of proof on to the accused.

Sex Determination Tests:

Designed as a test to detect congenital abnormalities, the amniocentesis test also revealed the sex of the child. These tests were very popular, largely for reasons of sex determination and subsequent sex selective abortion of female fetuses. Some interesting facts and incidents that came to light during the extensive popularity and usage of these sex determination tests were:

This amniocentesis test offered a way for the families with anti-girl-child cultural attitudes to get rid of their girl children clinically if not ethically even before they could be born.

Forum against sex determination and sex-pre-selection (FASDSP) was formed in 1984 with intent to campaign against the misuse of the amniocentesis test. It conducted research and surveys and raised awareness among public through workshops and seminars.

This campaign had to be very careful to prevent their arguments end up sounding like those of the anti-choice (anti-abortion) lobbies in the western world.

They had to counter arguments that suggested that the test would be a useful means of population control.



It pointed out that it was ironic to talk of choices for women whose daughters were being killed for the crime of being female.

Legally it was difficult to regulate post-amniocentesis abortion stringently without affecting women’s right to abortion.

Sexual Harassment:

The women’s movement had also highlighted the issue of sexual harassment. This was addressed legally, though only in the context of the workplace, by Supreme Court judgment of august 13, 1997.

Employers are directed to take steps to prevent sexual harassment, take disciplinary action against offenders, initiate legal action if required, refrain from discriminating against those who lodge complaints, and ensure that employees are aware of their rights.

The judgment does not provide any impetus for women to come forward and file sexual harassment suits.

On one hand, there are women who are much poor to consider legal action. On the other hand are professional women for whom the description of professionalism as equality has come to mean the ability to take what in a sexist work culture is indulgently viewed as ‘fun’ in their stride.

Explaining Sixty Years of India’s Foreign PolicySumit Ganguly and Manjeet S. Pardesi

Summary by Om Prakash H

This paper talks about india’s foreign policy from 1947 till date.

It is divided into 3 sections:

1947 to 1962: Nehruvian Ideology. 1962 to 1991: self-help approach to foreign policy 1991 to present: foreign policy closer to the principles of Realism

Systematic, national and decision making factors shaped our foreign policies choices.This article argues that the policymakers chose to pursue an ideational foreign policy that left india unprepared to cope with China’s threat, which led to border war in 1962. Now india started to think of security.

During the period of Indian Independence, attention paid to our country by US & soviet Union was very minimal. This helped India focus on creating foreign policy without any external influence. The imperial rule of 200 years had convinced the masses and the policy makers that, our foreign policy should make India, an autonomic country, and this gave birth to the non alignment strategy, crafted by Nehru.2 main reasons caused Nehru to adopt the Non Alignment Movement:

The huge amount of defense spending that India would have had to incur, had it supported either of the emerging blocs.



His focus was to develop India, and not to waste the hard earned independence.

The pathway to 1962

India’s foreign policy had 3 key characteristics, till the time of border conflict with PRC:

1. Emerged as an important advocate of NAMIndia aimed at diffusing cold wars, and also worked with Ireland to propose a ban on nuclear tests globally, through a nuclear test ban treaty.

2. Played a significant role in UN peacekeeping operationsIndia sought to play a key role in peaceful resolutions of regional disputes. Became a member of International Control Commission in Vietnam, key member of Neutral Nations Repatriations Commissions in Korea, contributed troops to the UN peacekeeping force in Belgian Congo.

3. Significant contribution towards the process of decolonization.

India’s NA led to placing a limit on the defense spending.

India and PRC pursued the policy of panchasheel:

1. Mutual respect for each other's territorial integrity and sovereignty

2. Mutual non-aggression

3. Mutual non-interference in each other's internal affairs

4. Equality and mutual benefit

5. Peaceful co-existence

India, though noticing PRC’s possible border related threat, did not do anything significant, and when the border negotiations with PRC hit a dead-end, India tried to guard its Himalayan border with light, poorly armed, ill prepared troops. PLA claimed close to 14000 square miles, and it still remains a subject of border negotiations.

The post-Nehru era

After the terrible military defeat, India’s foreign and security policies had a remarkable change. Nehru overcame his removed limits on military spending. India embarked on substantial military modernization. But NA was still a part of India’s foreign policy.

But things started to change after INDIRA GANDHI took over as PM. She authorized subterranean nuclear explosions project to perform the first nuclear test. India’s foreign policy now had 2 visions:

Support the cause of decolonization Importance of military preparedness

After seeking protection of soviet union, india worked towards creating Bangladesh, and eventually emerged as a dominant power within the subcontinent. But india could nto be a global power, since



economy wasn’t that great, due to state-led industrialization, very little liking towards export, lack of foreign investment, innovation, entrepreneurship.

India’s foreign policies underwent a major change when soviet union collapsed. This caused the Non Alignment policy, obsolete. Also, the gulf war prompted India to stock huge amounts of oil, around 100000 workers were sent back from Persian gulf on a very short notice, and this also caused a major dent in the Indian exchequer. These events placed india in dire financial situation.

So, manmohan singh liberalized the economy. India aimed at aligning itself towards US. US, on the other hand, gave india little significance, especially because of the NPT, which India did not want to sign. This may also have led to minimal trade and investment with India. Also, both did not trust each other.

India now started to consider the Southeast Asia as a viable exports sector, and to encourage them to invest in India. This is the “Look East” policy. It also focused on the Southeast Asia to prevent it from being dominated by China.

PRC’s nuclear weapons, persistent disputes with Pakistan on Kashmir posed long-term security threats to India. This forced India to go for Nuclear programs.

Finally, India was acknowledged as a nuclear weapons state globally. US began to woo India.

Summarizing: Indian policy makers have managed to establish India as a significant global player, though there are many economic development challenges to be faced.

Indian Foreign and Security Policy: Beyond Nuclear WeaponsHarsh Pant

Summary by Sriram C

It has been proven that Nuclear weapons are primarily political instruments and not weapons of war. Given this understanding, and the fact that India has concluded a landmark nuclear deal with the US ensuring nuclear autonomy, it is time for India to look beyond nuclear weapons and focus on broader issues as it advances in the global hierarchy of nations.

ECONOMIC RISE

Challenge is to maintain the rate of growth over the next few years. India can continue to be as strong a military power in the future only if it sustains the growth it has seen in the recent past. It is one of the largest arms buyers in the world.

INSTITUTIONAL VOID

There is no effective and central institution in the country that directs the foreign/security policy and strategic thinking has often been ad hoc and unclear. The National Security Council set up by the UPA has not lived up to its goals of anticipating security threats, coordinating management of national security and long term strategic planning.



Failures during 1999 and 26/11 are examples of the lacklustre intelligentsia. Nongovernmental think tanks and academics are largely absent in the domain of strategic

planning and foreign policy. Furthermore, the state institutions are bogged down by the bureaucracy.

Years of low investment in higher education and the flawed system of funding all higher institutions to the same extent has worsened the situation. Social sciences and humanities are not attractive enough to retain talent anymore.

INTERNAL SECURITY

India is facing a gradual collapse of authority as internal issues ranging from left wing extremism (Naxals) to right wing religious fundamentalism.

A target for Islamic fundamentalism since India is perceived to be a natural ally of the US, Israel and more generally the west. Furthermore, several internal wings of external terrorist organisations have started operations that have shattered the myth that India is insulated from Islamic fundamentalism from within.

No institutional mechanisms for intelligence assessments and lack of coordination between the National Security Advisor (NSA) and the various intelligence agencies.

India has not solved a single major case of terrorism in the last five years. The Maoist movement has become India’s ‘greatest internal security threat’ in the words of the PM, Dr. Manmohan Singh. Yet the government has not come up with a credible policy to deal with such issues.

KASHMIR UNSETTLED

A large chunk of the population in Kashmir has taken to the gandhian way of non violent protests for their demand of an independent Islamic state, closely allied with Pakistan. To tackle this India may have to adopt international approbation.

India and Pakistan seemed like they were headed towards a solution for quite some time till recently when Musharaff lost the mandate to do so. Meanwhile Kashmir was peaceful until the spell broke over a minor land issue raised by the hindu nationalist BJP.(The Amarnath land transfer issue) This snowballed into the largest pro independence march since 1989 in the valley

One thing is for certain: The international boundaries between India and PoK cannot be redrawn.

GOVERNANCE WOES

Governance is in a sorry state. It is ineffective, bureaucratic and a paralyzed decision maker. Maladministration, dithering and incompetence have made all state institutions ineffective. India is becoming a more corrupt nation by the day: The Corruption Perception Index.

POWER BALANCE

India’s ambivalent external policy has prevented it from harnessing the benefits of its potential relationship with the US. India often clings to obsolete ideology dating back to the NAM/third world solidarity days.



All of India’s neighbours, barring China, have grave internal issues and are inherently unstable nations. They resent India’s rising stature in the region and in the world, as India is viewed with suspicion.

IDEAS MATTER

India needs to assert what it stands for, globally. India’s rise to the very top of the hierarchy has been based only on its economic robustness and it needs to be clear as to what being a global power really means.

If and when India becomes a member of the UN Security Council, it will have to taka stand on several global issues and given the political system in the country, it would be an extremely tough task to accomplish. Some feel India is actually better off by not being a permanent member of the UNSC.

The Indo American deal signing process has shown that the polity is gravely divided when it comes to foreign policy and strategic placement of the nations concerns. There are doubts as to whether India can actually harness the economic and strategic opportunities to its advantage.

Developing India's Foreign Policy 'Software'Daniel Markey

Summary by Rajeev Kumar

The article outlines significant shortcomings in India’s foreign policy institutions that undermine the

country’s capacity for ambitious and effective international action, and proposes steps that both

New Delhi and Washington should take, assuming they aim to promote India’s rise as a great power.

Some of Daniel’s observations are worrisome but real.

Shortcomings:

India’s own foreign policy establishment hinders the country from achieving great-power status for

four main reasons:

(1) The Indian Foreign Service is small, hobbled by its selection process and inadequate midcareer

training, and tends not to make use of outside expertise;

(2) India’s think-tanks lack sufficient access to the information or resources required to conduct high-

quality, policy-relevant scholarship;

(3) India’s public universities are poorly funded, highly regulated, and fail to provide world-class

education in the social sciences and other fields related to foreign policy; and

(4) India’s media and private firms—leaders in debating the country’s foreign policy agenda—are not

built to undertake sustained foreign policy research or training.



India’s Foreign Policy Institutions and Expertise:

According to Daniel, today the Indian Foreign Service (IFS) remains remarkably small. The Ministry

of External Affairs (MEA) is one of India’s leanest ministries in part because the MEA has no natural

domestic constituency or champion—unlike, for instance, the ministries governing railways or

commerce and industry. With fewer than eight hundred professional diplomats and an annual

budget of just over half a billion dollars in fiscal year (FY) 2006–07, the service is stretched across

119 resident missions and 49 consulates around the world. Daniel quotes a U.S. diplomat as stating

that the IFS may be right-sized for Malaysia but is certainly not for a country with India’s global

aspirations. He further adds that the MEA’s in-house policy planning office is widely panned as

irrelevant, disconnected from serious policy concerns, and incapable of high quality output. A large

portion of MEA policy formulation and debate is apparently conducted by in-person or phone

conversations rather than through careful written analysis, though this pattern may be changing.

India’s foreign policy think-tanks lack sufficient access to the information, expertise, and resources

required to conduct world-class, policy-relevant scholarship. The Official Secrets Act, closed archives,

and tight lipped bureaucratic culture of MEA are largely responsible for inadequate flow of

information.

The following comment by a member of an Indian Think Tank is most scary, “I can barely find a PhD

from an Indian university capable of writing a single high-quality page of English text.” The young

talent is easily attracted to more lucrative opportunities in the private sector.

India’s corporate sector has not fully embraced the peculiarly American model of sponsoring

independent research organizations and providing no-strings-attached grants.

The extensive resources available to the private sector, industry groups such as CII, and the media

have turned these groups into leaders in articulating and debating India’s foreign policy agenda. Yet

it should come as no surprise that the incentive structures within these organizations are geared

toward short-term, profitable, or high-profile agendas. These groups are not built to undertake

sustained policy research or training and should not be expected to fill gaps left by government,

think-tanks, or universities, even if appearing at a superficial level to provide similar services.

Policy Implications:

Daniel further compares India’s recruitment and policy making process in the foreign services with

that of China to highlight remarkable differences. In the author’s analysis for India to achieve great-

power status, a number of improvements to its foreign policy software will be required:

expand, reform, pay, and train the Indian Foreign Service to attract and retain high caliber

officers



encourage the growth of world-class social science research and teaching schools in India

through partnerships with private Indian and U.S. investors, universities, and foundations

invest in Indian think-tanks and U.S.-India exchange programs that build capacity for foreign

policy research

bring non-career officers into the Indian Ministry of External Affairs and other parts of the

foreign policy establishment as term-limited fellows to improve outside understanding of

the policy process

support the efforts of Indian researchers to maximize public access to material related to the

history of India’s foreign policy by way of the 2005 Right to Information Act.

Contemporary comparison of foreign policy of India with China

China’s Ministry of foreign affairs (MFA) has a relatively more targeted recruitment, extensive and

ongoing training, and competitive promotion path compared to India’s Ministry of External Affairs

(MEA). Due to which China has been able to build much better Foreign Service personnel in

comparison with India.

China has successfully promoted universities concentrating on foreign policy. Some of its universities

have prominently figured in the worldwide university rating whereas India has lagged behind in

promoting its universities concentrating on foreign policy.

Historical comparison of foreign policy of India with US

US had gained significant economic clout by the end of nineteenth century. Post World War-II, US

concentrated on foreign policy development and has since then implemented a number of foreign

policies and has gained influence in different regions of the world. The author suggests that India

should also follow a similar policy as US if it intends to become a global power in years to come.

Future of India’s foreign Policy

Some of the characters of Indian current Indian foreign policy is listed below:

1. Business-first:

If all foreign policies are influenced by business interests, then it can lead to sidelining of

other issues in foreign policy. According to author this might force the Indian business to

look more towards east and hamper the India-US relations in the future.

2. Regional:



Due to India’s troubled neighbourhood – Pakistan, Sri Lanka, Bangladesh, Nepal and Burma,

India might spend more time concentrating Sub-continental foreign policies thereby

distracting India from global aspirations in future.

3. Reactive:

If India continues to maintain a lean foreign policy apparatus which is currently in place in

future as well. Then its policy decisions towards world crises , particularly those demanding

humanitarian or military intervention, will be influenced by foreign countries rather than its

own interests.

4. One-Track:

Currently India has very few staff and resources in Ministry of External affairs (MEA)

compared to other countries due to which India is able to implement single policy at a time

instead of implementing multiple policies at the same time. If this continues then it might be

detrimental to India’s global aspirations.

To overcome the problems listed above, the author suggests the following steps:

1. India should increase the intake of India Foreign Services (IFS) and also have a separate

exam from IFS.

2. India should recruit mid-level bureaucrats into IFS so that there is proper ratio between

mid level and entry level officers IFS.

3. India should encourage its Social Universities to tie up with US Universities so that it can

lead to higher quality of education in the Universities.

4. India is very conservative of releasing Government foreign Policy and National security

for Public use. Unless it is able to do so, It will not encourage research in these fields.

This will result in stagnation of foreign policy development.

The Clash of CivilizationsSamuel Huntington

Summary by Sunidhi Gupta

In future, the sources of conflicts are going to be cultural.

Earlier, they have been in the West mostly and have evolved from conflicts of kings to nations to ideologies.



Civilization – cultural entity, highest cultural grouping of people and broadest level of cultural identity people have.

Why will civilizations clash ?

1. Differences on the basis of history, language, culture, tradition, etc2. Increased awareness of of differences and commonalities between civilizations3. The process of economic modernization and social change throughout the world are

separating people from longstanding local identities.4. Role of west – non west nations form clusters. Eg. Asianization of Japan, Hinduization of

India5. People can be segregated easily on the basis of culture.6. Economic regionalism is increasing. Proportion of total trade that are intra-regional is on

the rise.

The clash of civilizations occurs at two levels

The micro-level : adjacent groups along the fault lines struggle often violently

The macro-level: states from different civilizations compete to promote their particular political

and regional values.

The fault lines between civilizations

Differences between civilizations are replacing political and ideological boundaries.

1. Clash between Islam and the West

2. B/w Muslim and Hindu groups in India

Civilizations Rallying

The Kin-Country Syndrome: Groups or States belonging to one civilization that become involved in a

war with people from a different civilization try and rally support from other members of their own

civilization. Eg:

1. Iraq getting support of the Arab nations, with the Arab nations looking down upon the

American supported Saudi Arabia and Kuwait during the first Gulf War.

2. Conflicts in the former soviet union

3. Fighting in former Yugoslavia

The West vs. The Rest

West is at the peak of power. UN, IMF represent its interests.

Differences b/w West and Non west

1. Culture – values, beliefs

2. Power and struggle for power ( military, institutional, economic)



3. Western ideas of individualism, liberalism, equality, liberty, free market donot resonate with

the non west.

4. Western idea of ‘ universal civilization’ at odds with others.

Responses to the west

A course of isolation: opt out of participation like north Korea.

Band-Wagoning: a attempt to join the west and accept its values and institutions.

Balance the west by developing cooperation with other non-Western societies.

The Torn Countries:

1. Countries with large number of people of different civilizations eg.

1. Turkey

2. Mexico

3. Russia

2. A torn country must meet three requirements to redefine its cultural identity

1. Its political and economic elite has to be supportive and enthusiastic of the move

2. The public has to accept the redefinition

3. The dominant groups in the recipient civilization have to be willing to embrace the

convert.

The Confucian-Islamic Connection

Focuses largely on weapon development programs- nuclear, chemical and biological; and their

transfer both material, research, technology wise to one another.

West tries to make policies to prevent non west from getting nuclear weapons but non west

asserts its right to acquire and deploy them for their security.

China’s military power and its means to create such power. China provoking a multilateral

regional arms race in the east by exporting arms to Libya and Iraq

Implications for the West

Implications on the Western Policies:

1. Short Term Advantage: promote greater cooperation and unity between its own civilization –

Europe and North American components; incorporate its culture in the European and Latin

American civilizations; better relations with Russia and Japan to name a few.



2. Long Term Accommodation: needs to accommodate non-western modern civilizations whose

power approaches that of the West but whose values and interest differ significantly from the

West. Requires the west to develop a more profound understanding of the basic religious and

philosophical assumptions underlying other civilizations.

It’s a Flat World After AllThomas Friedman

Summary by Ram Sevak

The article is an excerpt from the now-famous best-seller “The World is Flat: A Brief History of the Twenty-First Century”. The author visited India in 2005 and in the opening paragraphs of the article he compares and contrasts his journey to the one made by Columbus ~512 years earlier. While Columbus concluded that the world is round, the author paradoxically finds that the world is flat!

• Outsourcing is just one dimension of a more fundamental thing. There has been massive investment in technology in the bubble era in broadband connectivity, undersea cables etc. Computers got cheaper, arrival of email software and search engines like Google made remote development possible (Nilekani)

• Intellectual work and capital could be disaggregated, delivered , distributed, produced and put back together giving a whole new degree of freedom to work.

• Three phases of globalization: I) (1492-1800) – countries globalized for resources and imperialism. II) (1800-2000) companies globalized for market and labor. III) (2000+) individuals and small groups globalizing. Unlike first 2 phases, globalization to be driven by non-West.

• Knowledge pools around the world being connected. Downside: Al Qaeda and Hackers. Upside: On the edge of international knowledge revolution

• How world got flattened?---the flatteners creating collaborative platform were:

o Nov 9, 1989- Berlin Wall went down. Breakthrough of Windows 3.0 flattened playing field thru creation of global computer interface.

o Aug 9, 1985 – Netscape went public, triggered dotcom boom. Overinvestment in underground fiber n/w reduced transmission costs. Now India and China had all the connectivity required.

o Workflow- software applications and middleware connecting the computers.



• Six more flatteners created by above were: outsourcing, off-shoring, open sourcing, in-sourcing, supply chaining, informing. 10th flattener called steroids would be VOIP charging up all the other new forms of collaboration. All this converged around 2000, creating Web enabled playing field for collaboration in work etc.

• Value being created through horizontal collaboration within and between companies.

• Carly Fiorina former HP CEO says – ‘..last 25 years a warm-up act for main event.. era of.. technological transformation in business, government, society..’

• Economies of China, India, Russia and Eastern Europe opened up in 90s at right time. They could directly adopt new technology as there were no ‘sunken costs’ of old tech which were faced by now-developed countries.

• Countries like China going from ‘sold in China’ to ‘dreamed in China’ paradigm.

• Rajesh Rao, an entrepreneur from Bangalore, claims India mustn’t relax. Jobs will go where there is least resistance and most opportunity. India was able to make max use of new infrastructure.

• Americans must now figure out what to do and rise to the challenge. They are not doing enough to enhance natural competitiveness. Challenge has shifted from extreme Communism in Russia to extreme capitalism in India and China. This has to be met with comprehensive, energetic and focused response as Communism.

• Shirley Jackson, the President of American Association for the Advancement of Science, calls this ‘quiet crisis’ –one that’s eating away at US scientific and engineering base.

• America’s strength had been constant innovation till now. Quiet Crisis is a result of three gaps plaguing US society: a) ambition gap b) numbers gap (due to not producing enough engineers and scientists compared to India or China, and no more importing from India and China after 9/11. c) education gap (in terms of quality and productivity. The author ends that article with the conclusion that America is facing a crisis that won’t remain long and it is now up to the leadership to utilize the crisis constructively to maintain long-term viability of the US standards of living.

Corporations: Predatory or Beneficial?Jagdish Bhagwati

Summary by Arun Ramakrishnan

The article summarizes the behavior of multinational corporations (MNCs) in developing countries in light of the major criticisms leveled against them by their critics and concludes that 1) MNCs are by and large beneficial for developing countries when they operate in the framework of existing laws (either defined by the countries that they operate in or when the MNCs are subject to worldwide laws) but 2) MNCs can be detrimental to developing countries when they are allowed the liberty to frame their own laws.



The two major criticisms leveled against MNCs are:

They do not enter countries that truly need injections of capital They exploit the population of the (developing) countries in which they operate

Bhagwati dismisses the first criticism by pointing out that it is the responsibility of the ruling political class in a country to make the country suitable for foreign investment. MNCs shouldn’t be saddled with the responsibility of germinating the seeds of economic prosperity in volatile/ rogue countries. Bhagwati suggests that this responsibility could be taken up by organizations such as the World Bank, which could reduce its aid to countries that can survive on their own and re-direct this aid to rogue countries.

The more serious criticism against MNCs is that they exploit the laws and regulations of developing countries in which they operate to maximize their profit. The following examples are offered to bolster this contention:

1. Developing countries offer so many incentives to attract MNCs to their countries that they wind up as net losers (e.g., offering generous tax concessions to MNCs, accepting terms that are detrimental to their economy – such as agreeing to buy imports from donors at prices that exceed those that would be paid if developing countries were allowed to import from the cheapest sources)

2. MNCs are richer than most countries (14 of the top 50 economies of the world are MNCs), so they wield enormous power (case in point: Enron ripping India off) and have monopoly power

3. Large MNCs can bribe rules, bureaucrats, and politicians in poor countries into creating artificially excessive profits at the social expense of the country

4. MNCs have ruthlessly eliminated opposition to their plans in foreign countries (e.g., US in Chile and Iran, Belgium in Congo) and can do this again

5. Example: Royal Dutch/ Shell was castigated on drawing on the draconian muscle of the Nigerian government to put down protests that the Nigerian govt was siphoning oil reserves for use outside Ogoniland (where Shell was based) and that Shell was damaging the local environment. The protestors had resorted to seizures of Shell property and abduction of officials.

6. MNCs exploit the workers in poor countries by paying them extremely low wages as compared to the final cost of the product

7. MNCs pay workers wagers that are what they can get in alternative occupations in their native country

8. MNCs violate labor laws by operating “sweatshops.” MNCs should boycott countries that operate sweatshops.

9. MNCs freely violate international labour laws by not adhering to basic human rights10. MNCs place restraints on unions so that workers can’t demand better working conditions

Bhagwati counters these with the following arguments:

1. It is not that MNCs pay zero taxes – some taxes are paid, and the benefits of employment of the unemployed and occasional diffusion of technical know-how and better management practices from the MNCs to the developing countries more than offset the loss of revenue from tax concessions



2. The MNC > countries mathematics is based on comparing the sales volumes of MNCs with the GDP (value-addition in all activities) of countries, which is an unfair comparison. If one were to look at the value addition of MNCs vs. countries, one would find that only 2 of the top 50 economies were MNCs. The Enron situation was invited by India which did not ask Enron to compete with other firms for the Dabhol tender. MNCs do not have monopoly power since countries can pit MNCs desirous of entering their country against each other.

3. Evidence for #3 is hard to find, and this is becoming more and more difficult to do as governance had become a concern of many aid agencies and recent agreements have forced MNCs to be more transparent with their dealings

4. It is highly improbable for MNCs to repeat their activities of the pre-globalized and pre-internet world without being caught and being universally censured. In fact, a new criticism of MNCs is that they don’t meddle enough in the affairs of the countries that they operate in

5. Shell shouldn’t be held responsible for the policies of the Nigerian govt. Also, seizure of equipment and abduction of officials isn’t the right way to protest – the protestors could have resorted to non-violent means. Bhagwati concedes that if the Nigerian govt. did not have any environmental policy and that Shell was making use of this loophole to remorselessly pollute, then the protestors had a moral case against Shell.

6. No correlation between the wages given to workers and the final price of the product. Also, a study of the profit performance of 214 companies showed that profit made by firms was 6.6% on foreign assets, so MNCs weren’t making huge profits that they can share with the labourers

7. Studies by Linda Lim of the Univ. of Michigan in Bangladesh, Mexico, Shanghai, Indonesia, and Vietnam show the opposite result – that multinationals pay a “wage premium” – an average wage that exceeds the going rate, mostly up to 10%, with affiliates of US MNC paying a premium ranging from 40-100%. If jobs are subcontracted to local companies, this premium is possibly negligible.

8. Sweatshops are typically small-scale workshops and not MNCs – they are most probably run by subcontractors of MNCs. But this is a problem of lack of enforcement in the host country. Most developing countries have generous labour laws but no enforcement because the laws were never meant to be enforced in the first place (they’re just there for the “feel good” factor)

If a country indulges in sweatshop practice, then that country should be declared a pariah by the WTO and the ban should apply to everyone, not only to the MNC. Just asking the MNC to not deal with the offending country is unfair.

9. In cases of domestic laws being less demanding that international law (say in case of number of working hours per week), most workers in developing countries voluntarily work excessive hours since they can make more money – the MNC isn’t forcing them to do so. Also, international laws are quite broadly stated and are hard to follow, as opposed to domestic law which is narrow in definition

10. Reality is the opposite – governments have strict rules against unionizing in SEZs and EPZs because they know that workers will not work/ will shirk work/ draw free salaries if they are allowed to unionize

Bhagwati contends that the policy followed by an MNC in a developing country depends on the domestic policies of that country. For example, in the 50s-60s, most developing countries did not allow MNCs to flood their countries with products – they imposed high tariffs/ import substitution (IS) on the MNCs products. If the MNCs wanted to sell in that country, then they had to be based there. Once the MNC was established in that country, it found that the cost of its raw materials was very high (due to tariffs), so it resorted to very little production in the host country – it made most of its product elsewhere and imported the “almost final” version of the product to the home country,



added finishing touches, and sold it there. Countries such as Taiwan, Singapore, and Hong Kong then adopted an export-promoting (EP) models, and their economies flourished as MNCs set up large production facilities, increased employment, and created export-driven growth.

One important benefit of the presence of MNCs is “spillover” - diffusion of technical know-how and better management practices from the MNCs to the developing countries. Studies show that growth of domestic firms was higher in the presence of MNCs.

So the contention that MNCs are bad for developing countries is unfounded.

Addition of TRIPs (trade-related aspects of intellectual-property rights) to WTO:

This is one area in which MNCs have overstepped their privileges. Pharmaceutical and software firms have muscled their way into the WTO and turned it into a royalty-collection agency because the WTO has the right to apply trade sanctions. Examples-

Any country that did not extend IPP (intellectual property protection) to US companies was subject to tariff retaliation for an “unreasonable” practice

Patent periods were lengthened to 20 years Restrictions were placed on poor countries such as Botswana against importing “generic” drugs

from countries such as India and Brazil

These are unreasonable practices because:

Poor countries can’t pay the high costs of drugs anyway – they have need but little effective demand

MNCs make two types of drugs – those for diseases primarily in developing countries (malaria, TB) and those for diseases in both rich and poor countries (AIDS). The former drugs (for which poor countries can’t pay) are financed by public grants/ charitable foundations and the latter drugs are something for which MNCs value IPP (since the rich countries can pay). MNCs can produce more of the latter drugs for poor countries at very little marginal cost, but they’re trying to maximize their return by making developing countries pay through their noses. MNCs also try to raise the effective demand for their drugs in developing countries by lobbying other countries to offer aid to developing countries so that they can afford the MNC’s drugs.

Where MNC lobbying has produced harm:

Promoting bad goods: The FDA (Food and Drug Administration) in the US bans certain drugs in America but doesn’t ban their export by US companies/ producers of the offending drugs to other countries

Bads here but goods there: DDT has been banned in the developed world, but it’s good for the developing world

Goods here but bads there: Marketing baby milk powder in countries where mother’s milk builds immunity in children (and milk powder does not). Also, water is the countries in which this milk powder was contaminated, leading to several deaths of infants

Ambiguous goods (lethal but legal): Cigarette MNCs managed to overturn Thai entry restrictions for their products although Thai officials argued that MNCs were in a much better position to



penetrate the Thai market (which did not include children and women) due to their better marketing and distribution skills

Corporate social responsibility:

MNCs will benefit if they adopt three approaches to CSR to “offset” any harm that they do:

Social norming: Signing on to a global treaty such as the UN’s Global Compact, which consist of widely shared and internationally affirmed social values (although stated broadly and have no monitoring, certification, or enforcement mechanisms)

Voluntary codes: Having specific obligations and monitoring, certification, and enforcement mechanisms

Mandatory codes: National mandatory codes have been proposed to complement the Global Compact and the voluntary codes. Bhagwati believes that instead of creating a “universal” code that all countries need to adhere to, it is better that this code takes shape through an evolutionary process – starting with national codes and converge over time to a universal set of good practices.

Summary by Kritika Kashyap

Part I:

A critique on MNCs

Arguments against MNCs Arguments for MNCs

1. Accentuating divide between fortunate and poor countries: bypass countries that need them

Making Profits is the primary motive of business. If a country wants to attract investment, it has to provide the right environment- like political stability, economic benefits like cheap labour and exploitable natural resources

2. Hans Singer: Multinationals have no influence on the host countries, good or bad. Eg: extractive industries like diamond and bauxite

Today MNCs are mostly into manufacturing and financial services that attract investment from the environment

3. Poor countries competing amongst themselves to give bigger tax breaks to attract foreign investment wind up as net losers.

MNCs bring in benefits, like employment, diffusion of technical know-how and best management practices as well as direct investment that outweigh tax breaks and rent free use of public land.

4. MNCs further improve their bargaining power by asking for mandatory provisions (eg: proposed by EU at WTO) to prevent

MNCs contribute to a more orderly and efficient allocation of world’s scarce investible



receiving countries from imposing restrictions.

resources.

5. Large companies, Small countries

Role of corporations in small countries is exaggerated since sales figures exceed the value added to the GDP of a country.

a) Fears of corporate rip- offs (eg.Enron taking India for a ride before it self destructed).

b) Big corporations can bribe politicians, bureaucrats in small countries into creating excessive profits at the expense of the host country.

a) India had failed to invite tenders from other potential investors in a rush to get energy investments.Large firms will not have monopoly power in small countries if effective competition can be provided. Smart nations play MNCs from one country against those from others.

b) Recent laws for governance requiring disclosure of royalty payments to govts. Are a subject of concern for MNCs and action by the aid agencies

6. MNCs intruding into host country’s political space:

Eg 1: leading MNC’s in Chile (Pepsi and ITT) are known to have played a role in a coup against the elected president Salvador Allende of Chile, who began to shift to the left towards his policies on FIIs and MNC’s.

Eg 2: Belgian corporation installed a puppet after the over throw and assassination of the 1st elected president of Congo, Patrice Lumumba in 1960.

Eg 3: Iranian PM Mohammad Mossadegh overthrown by CIA partly because of the interests of the giant oil cos. In the region.

Intervention of MNCs in politics is highly improbable today since:

a)Democracy in underdeveloped countries allows political abuses to come to light because of the freedom given to NGOs and individuals to point fingers at the offending corporation

b) More coverage of the accusation though TV and internet, reduces the moral standing of the foreign multinationals and govts.

MNCs are also accused of neglect in domestic politics

Eg: Royal Dutch/ Shell was accused by NGOs for abuses by the enforcements of the Nigerian Govt. used to turn down protests against the Co.

The protest was against the Govt. policy of redirecting oil revenues outside their region.

Shell obviously had no choice but to use the state’s enforcements to protect the Co’s property and personnel against seizure from



protestors.

Also the Co. was blamed for damaging the local environment when the Nigerian Govt. had no environment policies

7. Exploitation of workers in poor countries.

a) MNCs are solely driven by profits, inspite of having deep pockets, pay “unfair” or ”inadequate” or low wages.

Creation of job opportunities by MNCs in poor countries should be applauded. Even locals are happy with the new jobs created.

There is no direct relationship between the price of product and the wages because

(a) the probability of failed product increases, reducing the effective cost of each product

(b) additional tariffs and distribution costs add to the price of the final product

MNCs pay wages better than that given by local companies or in other jobs. Some give a “wage premium” exceeding the going rate by up to 10%, and in some cases of US affiliates, by 40- 100%.

The company could be expected to share the “excess” profits if it were earning monopoly profits and paying competitive wages; but these companies are working in highly competitive markets.

By increasing demand for labour, the MNCs are only likely to increase the overall wages in the country.

b) MNCs run sweat-shops in poor countries, not paying living wages and violating labour rights.

Safety and working conditions.

Sweat-shops are small scale workshops of local subcontractors that supply to the MNCs and are not owned by MNCs themselves. Why would MNCs boycott anything that has been produced legally as per the host country’s laws?

How can the MNC ensure enforcement of local labour laws? What resources should be



spent on it? Especially when the local legislation itself doesn’t intend to enforce these laws because of the high costs of such mandates.

c) Work conditions might not violate domestic laws but still violate customary international labour laws.

Western oriented International laws may not make sense in the poorer countries where for example workers might volunteer to work for long hours to earn more, which cannot be called exploitation.

Eg: Restraint on union rights is a violation of customary international law, but has been enforced in EPZs(export processing zones) by Govts. since these unions enjoy rights and accept no obligations. In India, union rights are maintained in EPZs, but wild- cat strikes are not allowed given that export industries are “essential” industries

Customary international laws are broadly stated and can be defined in many ways, unlike legislation and executive orders which are clear to follow. Which definition should the MNC follow?

Recommendations by the author:

1. Altruistic institutions like the World Bank should lend to the countries that donot have the resources to make it own their own (instead of countries like India and China). The solution is to redirect funds and technical know-how to these countries since they don’t get them though private corporations

2. We need to assert the broad aspirational objectives on labour laws like the ILO Declaration of Fundamental Principles and Rights at Work by which many nations have agreed to the following:

Freedom of association and the effective recognition of the right to collective bargaining.

The elimination of all forms of forced or compulsory labour



The effective abolition of child labour The elimination of discrimination in respect of employment and occupation.

However, for purposes of assessment, we need to arrive at much narrower and realistic agreements on specific practices eg: minimum safety provisions (OSHA standards are too expensive to be met by poor countries). The present subjective interpretations can imperil the flow of international investment by adding the risk of expensive litigation by activists and NGOs peddling their preferred interpretation on a core right.

Serviced From India : The Making of India's Global Youth A.R. Vasavi

Summary by Sujoy Kanti Dutta

The article deals with the Work and Workers in India’s IT Industry. The article describes how Indian Youth are becoming part of the ITES industry.

1) Emerging Global Youth of 21st Century (different culture than older generations)2) Tapping the pool of “available “ youth (English speaking + trainable=easily deployable)3) Selling Jobs tailored for youth4) New Opportunities , New Life : Youth access ITES5) Training as Inculcation of New Dispositions6) Education , Employment and Entertainment – ITES Work as Lifestyle7) ITES Youth are Transnational Information Service Subject


New youth ITES employees can be easily identified . In shopping malls , wearing ID cards , queue in ATMs Part of Global High Tech. Work and Global Consumer Industry They constitute category of worker-consumers.

Emergence of new adolescences & adulthoodsEngagement with hegemonic global media & Consumer culture

Beginning of 21st century is a period of intense fragmentation and disjunction

ITES employees use ICT extensively ; Indian Youth is the single biggest source of labour

ITES means Call Centre + BPO + Back Office (non voice) + tech support + telemarketing .

India is back office of the world. Indian ITEs cater to US , UK , Australia

Problem of unemployment of educated youth is solved to some extent

GOI has earmarked ITEs as a prime industry. ITEs declared as essential service.

‘Serviced from India’ analogous to ‘ Made in India’Large pool of trainable labour. 440,000 engineers. Absorb into ITES workforce.

Largest Pool of Unemployed Youth from RURAL areas Non-English speaking – ITES cannot help them at all.

Advertisements for jobs are misleadingConsultants , desk engineers - lucrative designations , in reality they are routine & stressful repetitive work

Selling Jobs to the Youth Job Fairs , Walk Ins , recruit in huge numbers .

Basic degree , still good pay – independence Freedom + Earn while learning – Youths get attracted

Consumption oriented life styles High salaries + not dependent on parents – new lifestyle at young age , compared to other jobs



Intense Training is needed.

Many workshops and modules , accent learning , Training negates cultural origin , internalise the rules and procedures of ITES industry.

9 hours / day huge stress : So ITES try to represent work as LIFESTYLE rather than labour.

College like atmosphere , posters , Fun Officer conducts games , Casual Clothing – no formals.

Outings to Bowling Alleys ,Prizes such as DVD playersStrategy to compensate and lessen Monotony of the work.

New and Westernised lifestyle for ITES youthSmoking , Drinking , financial independence , outside authority of parent

Transnational Governmentality Industry uses skills of the youth ; Youth draw economic benefits

ITES workers craft themselves as professionals , visible consumers.

Not as workers ; but as Subjects who objectively & subjectively subscribe to the logistics of the industry.

Middle class Youth – The ITES job is transient & transitory Issues of work identity and rights remain unaddressedITES work is emblematic of global high tech service work.

Workers becoming subjectified as carriers of economy and consumer culture

Inference : ITES Youth are workers , without identity as workers .Still Youth are enticed into the industry – it’s a job for them not a long term career.

Labour and GlobalizationSupriya RoyChowdhury

Summary by Devi Prakash

There have been a number of ways in which economic liberalization reforms have impacted the industrial economy, but the impact on labour has not really been discussed much

Economic reform leaders have two basic assumptions about labour:

1. Within the framework of trickle down growth, labour will automatically be taken care of2. The resistance to reforms by labour class can and should be handled by coercion, persuasion

and consensus.

Governments are not ready to publicly confront that economic reforms can increase hardships and inequalities for labour.

Globalization’s and marketization’s negative impact on labour:

Decline in the organized workforce. Weakening trade unions Political vacuum in terms of agencies which would advocate labour rights

Though there is a large research on negative impacts of globalization etc , but no alternative policies to marketization are put forward!

Labour and Globalization in India and State’s relationship to Labour:



Pre-reform era: o Even then organized labour constituted very small percentage of the laboring classo State was bound to this organized sector by a plethora of laws and institutionso Which guaranteed organized labor’s rights to job security, regular wage revisions,

retirements and other benefitso Vast unorganized sector was unprotected in these terms

The article describes how with the current economic policy framework which focuses on greater measure of integration with markets, the labour has been impacted in terms of

Shrinking of organized sector Inadequacy of social security nets Increased informal labour Changing dynamics of trade union functioning

Shrinking of Organized Sector

Organized sector definition - all public sector and all private non agricultural establishments employing ten or more workers.

Facts –

Share of registered sector in total manufacturing employment fell from about 30% in 1977 to 23% a decade later

Share of informal segment in workforce increased from 72.8% in 1972 to 82% in 1993

One reason attributed to the shrinkage: Rise in real wages as well as rigidities in the labour market resulting from policies that prevent market dictated hiring and firing led employers to freeze hiring and to move towards capital intensive technologies!

However this reason has been refuted by many scholars on the grounds that real wages have not increased proportionally to per capita income growth and in actual terms there has been a decline in power of trade unions. They attribute the shrinkage to increased competition due to liberalization that has forced firms to cut labour costs. Liberalization has created environment for cutting down salaried jobs through

VRS Contractual employment Subcontracting Outsourcing et cetera

Expansion of the Informal Sector



Definition of Informal Sector –

men and women who eke out a living but unprotected by a regular salary and job security the self employed, daily wage laborers salaried employees who do not have a job security, wage revisions and other benefits

Problems of informal sector workers:

low wages insecurity of jobs long and unregulated hours of work absence of accident and other insurance abysmal living conditions

Examples quoted in text:

1. Gujarat Unprecedented developmental achievements and growth of tertiary sector Informalization of around 3 lakh persons on account of erosion of Gujarat’s largest and

oldest industry- textile industry which led to an increase in percentage of people living in slum areas from 23 to 41%

2. Karnataka Growth rate of more than 8% in the second half of 1990s; the third largest recipient of

FDI; IT and Bio-Tech advancements and presence of large number of multinationals; India’s Silicon valley

Stagnation in employment in organized sector and growth of employment. As high as 71% people in informal sector in manufacturing and large number of closures in Small Scale Industry Sector; exponential growth of slums

Inadequacy of Social Security Nets

Reduction in public sector employment affected mostly manufacturing sector and this reduction has taken place gradually, mediated by VRS and consent of trade unions, rather than coercively. In the private sector, profit making firms have rationalized labor through attractive compensation packages, and in the declining firms, workers are displaced overnight illegally without getting any severance compensation.

Public spending has shown no responsiveness to plight of informal sector. Schemes like National renewal Fund (designed primarily to fund the retraining and redeployment of displaced workers) inefficiently used. Social sector expenditure declined in 1990s as compared to 1980s

Weakening of Trade Unions



Decline of unions in era of globalization both in terms of numerical strength and bargaining leverage

Growing distance between leftist parties on one hand and their traditional labour constituencies and trade unions on the other

Unions getting weakened due to increased number of contractual laborers available to companies

In times of financial crunch, when PSUs force trade unions to choose between VRS and privatization/closure, they have no option but to agree to go for VRS

Imaginary CitiesDunu Roy

Summary by Mayank

There are several questions about the nature of “planning” itself. Who makes these plans? Who are they made for? Do the planners take into account actual data from the study of how cities grow? Or do they plan what they think cities should be like, asks Dunu Roy.

Combat Law (Sept – Oct 2003) – It is a landmark judgement that held that the Right to Life included the Right to Livelihood.

City Planning Trends

Large sections of the urban poor habitation have been forcefully taken over by every government – regardless of political affiliations. (Largely Slums/Informal Sectors communities in the cities)

The occupational space that they occupied is being transferred into larger private corporate entities such as commercial complexes and residential layouts.

While the driving force behind these changes is manifestly the new globalised economy, it is offered on an environmental platter of “cleanliness” and “beautification”.

In vicious combination these three trends are changing the urban landscape as “homes” to “estate ownerships” in the name of LPG (Liberalisation, Privatisation and Globalisation). The chorus of the “resurgence” may conceal ugly face for a while or keep away from gaze of the byte-hungry media, but the truth speaks through many forms, many eyes, and many pains.



If today the presiding juridical deities are unwilling to play midwife, then there are other conceptions, other weanings – indeed, other worlds! Because city planners do not make cities, they only imagine them!

Bangalore: Urban LessonsBATF Team

Summary by Hemant Agarwal

By 2050 over 50% of India’s population will be living in urban areas. The cities in India are ill prepared to cater to the basic needs of its citizens.

This article is a very general brief of some efforts made in Bangalore with the assistance of the government.

The Bangalore experience has 4 distinctive components:

Bangalore Agenda Task Force (BATF) (end 1999, 15 members)

It is a state empowered task force for supply side improvements in government bodies impacting quality of life in the city. BATF worked with 7 civic stakeholders acting as a catalyst and aiding the implementation of plans whenever desired. It also took up some projects on its own to build some credibility.

One major achievement was to bring key civic agencies under a common forum and coordinate their activities towards a common goal. It provided the tools for accountability and efficiency in the civic agencies. They ensured continuity in the efforts of civic agencies irrespective of changes at senior levels

Janagraaha

A platform for citizens to engage with local government providing a space for citizen demands to be met through collaborative citizen government participation. Constructive Engagement: citizens can be informed and responsible partners in the decision-making process.

PROOF (Public Record of Operations and Finance)

Deepens the concept of RTI to systematic “disclosure” mechanisms and provides unique information dissemination mechanisms. It is promoted by 5 partners, one of them being Janagraaha.

eGovernments Foundation (Feb 2003)

It is a non-profit trust whose mission is to provide an eGovernance software platform for use in corporations and municipalities across India for free. It advocates systematic re-structuring of Municipal Governance through IT and process reengineering



Local governments can become financially independent of the state government if property tax reforms and other taxation are efficiently implemented and used. The use of technology and more participation from the citizens can be very useful in promoting the development of any city.

Among the contributors to these programs is Nandan Nilikani.

The Rise of the Creative ClassRichard Florida

Summary by Shrikanth Rangineni

Richard Florida is a professor in Carnegie Mellon, and through this article explains why cities need to cater to the creative class

A student rock star recruited by Trilogy – to have diversity in the company

Company taking extra pains to retain creative people in their company

Author asks -

Why do young people prefer other cities over Pittsburgh?

Why are the Cities not following the Companies and trying to retain creative people?

Creative Index

Author uses a creative index which is a measure of a region's underlying creative capabilities. It has following components (with equal weights)

The creative class share of the workforce High-tech industry, using the Milken Institute's widely accepted Tech Pole Index Innovation, measured as patents per capita Diversity, measured by the Gay Index, a reasonable proxy for an area's openness to different

kinds of people and ideas

Current Situation

The creative people have started concentrating in some cities and regions which have adapted to their needs

Creative people get paid twice the average salary As a result regions with large size of creative class are also some of the most affluent and

growing. To some extent such differences were always there - but now they are more widespread and

pronounced.



Chicago integrated the creative class into the city's culture and politics by treating them essentially as just another "ethnic group" - gave sufficient space to express their identity

Creative Class and Characteristics

Definition

Creative Class is a fast-growing, highly educated, and well-paid segment of the workforce on whose efforts corporate profits and economic growth increasingly depend.

Types

1. Super creative core includes scientists and engineers, poets, artists etc. They produce new forms or designs that are readily transferable and broadly useful

2. Beyond the core group, the creative class also includes "creative professionals”a. They work in knowledge-intensive industries like financial services, legal, healthcare

etcb. Engage in creative problem-solving, using complex knowledge to solve specific

problemsc. Require high degree of formal education

Characteristics of Creative Class

1. They do a wide variety of work in a wide variety of industries2. They do not consciously think of themselves as a class. Yet they share a common ethos that

values a) creativity, b) individuality, c) difference, and d) merit.3. Creative class are diverse across the dimensions of age, ethnicity and race, marital status

(many of them are single), and sexual preference (Gays).4. Creative-class people do not lose their lifestyle preferences as they age. They don't stop

bicycling or jogging. They also continue to value diversity and tolerance

Creative Centers

“Low entry barriers” for people - where newcomers are accepted quickly into all sorts of social and economic arrangements.

Plug and play community – A community that somebody can move into and put together a life or at least a facsimile of a life---in a week.(Get adjusted quickly)

People can find a) opportunity, b) build support structures, c) be themselves, and d) not get stuck in any one identity.

Thick labor markets - places that offer many employment opportunities Greater diversity and higher levels of quality of place – Lifestyle is very imp. Environment open to differences – Creative people generally grow up feeling like outsiders,

different in some way from most of their schoolmates Nightlife with a wide mix of options Active, participatory recreation over passive, institutionalized forms – Sidewalk musicians,

cafes, bistros etc



Active outdoor recreation facilities (not stadiums etc) – Bicycling, Rollerblading, kayaking, snowboarding etc.

Authenticity and Uniqueness comes from historic buildings, neighborhoods, unique music scene etc. – Authenticity offers unique and original experiences.

Openness to immigration is particularly important for smaller cities and regions The ability to attract so-called bohemians is key for larger cities and regions Presence of people climate that appeals to them and meet their needs. Kids – good schools are not important – as many of them are single or marry late

Why Cities have failed to attract creative people?

They are either unwilling or unable to do the things required to create an environment or habitat attractive to the creative class.

They just pay lip service to changes required Expenditure on stadiums etc which are not important to creative people Olson’s arguments

o The decline of nations and regions is a product of an organizational and cultural hardening of the arteries - Institutional Sclerosis (Excessive resistance to change)

o Societies find it difficult to adopt new cultural patterns, regardless of how beneficial they might be. (e.g. US and England)

o Old Cultural and attitudinal norms become powerfully ingrained - do not allow the new norms and attitudes to grow up and get accepted.

Kotkin’s argumentso In an effort to follow Silicon Valley end up being Nerdistans.o Nerdistans are bland, uninteresting places with acres of identical office complexes,

asphalt parking lots, freeways clogged with cars and strip-malls sprawling in every direction

The lack of lifestyle amenities is causing significant problems in attracting top creative people

Asian Development Bank: Managing Asia’s CitiesSummary by Rahul Saha

Asia’s Urban Challenge

CONTEXT

Asia’s Urban Challenge is taken from a survey report titled ‘Managing Asian Cities’ that was published by ‘The Asian Development Bank’. The survey analysis aims to provide a useful management resource, canvassing key issues and pointing managers to appropriate responses to problems pertaining to the various Asian cities due to urbanization.

SUMMARY

Asian Urban Challenge is about the challenges faced by Asia due to rapid relentless urbanization of megacities (cities with more than 10 million inhabitants) which is propelled by higher productivity of



urban jobs. These megacities generate employment and nurture innovation & entrepreneurship but the negative effects of urbanization like environmental degradation, uncollected garbage, traffic congestion, beggars and morally degraded conditions of vast squatter areas far are some of the harsh realities that need to be addressed. The linkages of family, faith, civic culture that are the building blocks to a city are weakening & in order to save Asia from declining, a more goal driven mission that maintains a balance has to be followed rather than simple technical responses to a series of problems.

Megacities are where the global & local interconnect and new technology has open up worldwide flows of information, capital & labor. Today, there are 12 megacities in Asia that are nation size in population. With emergence of mega cities, development is encroaching onto more agricultural & forests. Recognition of different city topologies, population, and economic activity is important to understand the urban development dynamics.

Hierarchy of Urban Settlements

1. Global cities: typically with 5-20 million and more people within their administrative boundaries but serving very large global territories: London, Paris, New York, Tokyo etc.

2. Sub-global cities: typically with 1–10 million people and performing global service functions for certain specialised services (banking, fashion, culture, and media): all European capitals.

3. Regional: population of approximately 250,000–1 million; some of these have characteristics as “showing evidence of world city formation.”

4. Provincial: population of approximately 100,000–250,000.

Urbanization: Scattered villages growing into metropolis – How and Why?

(1)Households and enterprises interact at broader scales to form a settlement region of villages, focused on a town. (2) When these towns begin to focus economically and culturally on a provincial city. (3) Larger city regions focused on a big city where regional development policy, particularly that related to strengthening of urban-rural backward and forward linkages, has relevance.

The development of small settlements to large cities are mostly instigated by links of physical infrastructures like inter-city roads, railways, navigable waterways and power grids i.e. strong transportation & communication system. An example of a village called Shenzhen in Pearl River Delta is given, which was a poor fishing village and now is one of China’s most competitive cities due to its volume of foreign trade for being the fastest growing manufacturing base in the world. Another example of Metro Manila, Philippines is given which talks about multistage development of metropolitan governance.

Decentralization: Central Power Vs Local Government

All the Asian countries have a long histories of local governance but their current structures most of which is inherited from the colonial powers need amendments to better manage rapidly growing



cities and towns. Most decentralization has been more of a transfer of administrative responsibility than commitment towards local governance. Asian local government works under legislation which determines power, authorities & functions.

Decentralization options:

1. Deconcentration—transfer of responsibility from central agencies and ministries to their regional or field units. Some discretion is allowed but they are subordinate to the central authority.

2. Delegation—functions moved from central government to semi-autonomous public authorities and corporations granted the authority of planning and implementation.

3. Devolution—transfer of decision-making power and authority to local governments which have the power and resources to perform relatively independently from central agency intervention.

The degree of responsibility between central, federal and local governments is the vertical dimension of decentralization. Horizontal dimension talks about how large cities are organised to finance & deliver services of their areas.

In order to manage complex metropolitan cities there’s an additional level of metropolitan government. This can be further identified into

(1) Metropolitan city in form of single local governance that is responsible for all local functions. This is evolved either from a previous political jurisdiction or amalgamation of many. E.g. Bangkok Metropolitan Authority, administrations in Seoul, Kuala Lumpur, Surabaya, and Jakarta. This arrangement eases the coordination and implementation of plans and programs.



(2) This is described as the ‘jurisdictional fragmentation’ where responsibility for local services falls onto the local governments of the metropolitan area but they lack the necessary resources and capabilities. E.g. Metro Manila in Philippines

The metropolitan agency takes a number of forms:a) Metropolitan Development Council (MDC) which allows the constituent local governments

to retain their powers.b) Metropolitan Development Authority (MDA) with corporate powers and functions, revenue

sources that are often from the national government, and a technocratic administrative structure.

For this the text provides five examples of various forms of metropolitan governance,

1. Bangkok Metropolitan Authority2. Metro Naga Development Council3. Mumbai Metropolitan Region Development Authority4. Tokyo Metropolitan Government5. Seoul Metropolitan Government

In general local governments falls under two types:

(a) The centralized model, which has clear lines of authority, from the central government’s ministry of the interior through a centrally appointed head, to the municipality, which either has a locally elected or an appointed mayor and council. The head of the region, as the local chief executive and the representative of central government, has the authority to overrule local councils and supervise local expenditures. Variants of this system are found throughout Central Asia and the former French colonies of Southeast Asia.

(b) The devolved model is often seen as a development due to British colonies and involves local government through elected councils at the county and sub-county levels. This system has less central government interference and greater local budgetary authority than the other. A key feature, often, is the committee system of decision making instead of a strong executive, for administering public services

This was followed by examples of three local government systems: Philippines, Singapore and People’s Republic of China

Asset Management and Unbundling

The assets of a city comprise those of the administrative units— including their financial assets, land, real estate, infrastructure, and human resources; those of all its other stakeholders— including people, businesses, and other organizations; and the city’s natural resources and environment. There is a clear distinction between the assets owned by or under the control of the local government and those of everyone else. Much of these were earlier provided by state monopolies and typical problems were low productivity, high costs, low-quality service, lack of asset



maintenance, insufficient revenue etc. For this unbundling is encouraged so that potentially competitive functions are under separate ownership from natural monopoly components where there is substantial invested capital

Asset Management can be defined as the management of the acquisition, use, and disposal of assets; maximizing their service delivery potential; and the management of related risks and costs over their lifespan. Asset management requires an inventory that is recorded in a central register; valuation; life-cycle costs from initial capital, through operating and maintenance costs to salvage and disposal costs.

Examples of Unbundling1. Electricity: Transmission and distribution split from generation.2. Telecommunications: Local network split from long-distance mobile and value-added

services.3. Water: Source development separated from distribution and both from wastewater

treatment.4. Natural gas: High pressure transmission and local distribution separated from production,

supply, and storage.5. Railways: Tracks, signals, stations, and other fixed facilities separated from train operations

and maintenance

Corporatization & PrivatizationThis segment of the report talks about the need for privatization or corporatization as many of the public utilities are supported by local government which are hard pressed for finance and thus these suffer a lot. For this a corporate character that encourages management by professionals rather than politicians should be assumed. Corporatization refers to the reorganization of a publicly owned service to operate according to private sector, corporate principles. Privatization is the transfer of a function, or part of it, to the private sector, but generally this leaves a local government retaining some control. E.g. Build, Operate & Transfer (BOT) is a befitting example for privatization in water segment or in case of highways.

Efficient GovernanceFurthermore, the report talks about coordination mechanism to work towards a more efficient and authoritarian government by Increasing economic integration of rural areas within the urban economic system and fabric suggests the need for improving both cross-border and cross-sector coordination without the costly redrawing of local government boundaries. Two prerequisites for good governance are more public participation in decision making and public oversight of government functions.

The report further delves upon Urban Partnerships by citing some prominent examples.1. Central London Partnership 2. The circle Initiative3. Paddington Waterside Partnership4. Building London creating Future

City Development Strategies (CDS)

Planning for sustainable development as a whole is the key to successful city management. City development strategies (CDSs) are examples of planning instruments that can provide the planning context for a city or city region and enable a better understanding of the city’s current problems and



future developments. A CDS must be built on an economic foundation. Such a strategy can change the way a city is managed by focusing on a new economic structure that promotes the city as an attractive destination for regional, national, and global investment. A successful CDS highlights new and unique features of a city and builds upon these for future development. A key output of a CDS is an investment program to support the vision. It must have the commitment of stakeholders, including funding support from the national and local governments. These programs need to be implemented within the context of economic and social objectives, which will provide the basis for prioritizing investments.



Everybody Loves a Good DroughtP. Sainath

Summary by Sandeep Nair

In this article, the author wants to elucidate the fact that fund allocation process for the drought

relief programs involves a lot of politics and the media also plays an important role in this process.

The author starts by stating that the benefits of drought relief programs do not reach the

people who need them. It is an opportunity for many to derive financial benefit out of it. He justifies

it by providing some figures on how at few places like that in Maharastra, Orissa, etc the budget

allocated was more than the required. He then explains the concept of “Drought-Prone Areas

Programme (DPAP)”, under which the government has ability to include blocks of land affected by

drought. Once the blocks under DPAP, they receive huge amount of money as well as benefits from

host of other schemes, including Employment Assurance Schemes (EAS), anti desertification

projects, drinking water missions etc. He then explains with the help of figures that how in the past

the, the number of blocks under DPAP scheme has increased significantly and the blocks which are

included had good average rainfall figures. (Example: lowest rainfall in past 20 years in Kalahandi,

Orrisa is 978 mm, which is way above from many other districts)

He says that the poor suffer acute drought even in cases of abundance of rainfall because

‘the water resources are colonized by the powerful’. He says that government thinks that “by

throwing money at such regions, the small fish, who have big votes, can be pacified”.

He then explains the spiral of drought scam. It also happens to be a, “who will bring the

maximum fund to their district” tussle. Contractors and politicians take up the cause to collector and

get local newspaper to print about the situations. And this spiral goes on from here to district

headquarters to state level to central level to international level organization like UNDP,UNICEF etc.

all in order to demand allocation of funds. At the same time people at various levels also use the

media at both local and national level to exaggerate the situation. The “reverse spiral” begins when

funds are actually allocated by foreign donors looking for some good PR. As the money trickles down

to the districts, various parties including politicians, consultants, private contractors etc. take their

cuts. The places actually affected by the drought do not get much money. Since, the basic problem is

not solved, this whole process starts afresh next year too.



He then introduces the other problems linked with water, like river water sharing within the

states of India and with Bangladesh. Therefore the struggle over water resources operates at various

levels, coming down to between villages and between castes & classes.

Finally he ends with following lines, “There are now two kinds of drought: the real and the

rigged. Both can be underway at the same time, in the same place. As the reports that follow seek to

show, they often are.”

Political Economy of Agrarian distressK C Suri

Summary by Chayan Mukhopadhyaya

The author believes that the reasons for agrarian distress in India lie in the conjunction of the changing nature of agriculture and democratic politics.

Aim of the author: - To examine the inter-relationship between the structural and economic changes since independence to the political domain and see how the changed nature of politics and policy priorities have exacerbated the agrarian distress.

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

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

Changes in Agrarian Political Economy:-

1. British rule increased the market oriented production(cash crops). Some sections benefitted while some degraded.

2. After independence, there has been 3 phases of evolution of agrarian relations



(a) 1950s and 60s:- Reform and consolidation of agriculture on the lines charted out during freedom struggle :- need to take up modern methods and political efforts to increase production and well being of farmers

(b) 1970s and 80s:- Green revolution and growth of political populism:- costs to farmers increased and so did their yield. But uncertainty of crop yield and fluctuations in prices for agricultural produce caused a great deal of mental distress to the farmers. The government though took steps for farmers’ welfare by imposing quotas on imports

(c) 1990s onwards:- liberalisation and deterioration of farmers’ condition:- once we opened gates to foreign competition, the condition of the farmers here degraded because of obvious reasons.

3. Some economists suggest nowadays that farmers should stop producing cash crops and produce light crops to get out of this predicament. However, farmers say that t is not possible since they are already deep in debt and if they produce light crops they wont be able to repay their loans.

4. Farmers don’t have any confidence on the minimum return on their labour and investments.

5. Crop insurance scarcely available; even where it is available, insurance companies find umpteen methods to avoid payment.

6. The loss of status, uncertainty of income, unbearable debts, unfulfilled needs and the inability to decipher the factors responsible for their predicament, all combine to make farmers desperate. It is not poverty that is driving them to suicide, but it is pauperisation and immiserisation.

Changing Nature of Politics:

1. Political parties earlier were concerned about the farmers’ status and their problems, but slowly they lost interest and started taking farmers’ votes for granted. This happened because farmers were not united and thus, didn’t have enough clout to influence the government.

2. Political leaders’ source of wealth changed to industries and businesses from agriculture.

3. It is difficult to organise farmers because they are not homogeneous in terms of economic conditions as well as social background.

4. During the last two decades, we haven’t seen any strong all-India peasant movement.

5. Farmers’ interest matter little to the national ruling elites.



6. Since fighting elections i very expensive nowadays, even the wealthiest farmer cannot think of doing so.

Recent change:-

Political parties have begun to speak about farmers’ distress in the wake of many farmer suicides.

Need of the hour:-

Change in the strategies of economic development which have hitherto downgraded agriculture and stunted non-farm employment, with mechanisms to ensure proper remuneration to agricultural produce, and the willingness of the political class to support farmers and curb the growth of corruption and their own illegal amassment of wealth.

Modernising AgricultureArvind Panagariya

Summary by R Umesh

This is another chapter from Arvind Panagariya’s book “India: The emerging gaint”

3/5th of India’s workforce is in argriculture. While analyst popularly believe that increasing productivity in agriculture is the key to improve condition of the poor, Panagariya suggests that there are better way to achieve this objective.

He argues, poverty can be tackled by generating employment in industry and services. This will reduce work force in agriculture hence the ratio of labor-to-land. Thereby the wages will increase in argricultural sector. India produces self-sufficent cereals, hence there is a need for diversification into fruits, vegetables and other commercial crops.

He is completely against any kind of subisidary in food, fertilizer, electricity or water. These methods are actually regressive.

He propose varous set of reforms in Agriculture

PRODUCT MARKET REFORM

There is a need for external trade liberization – farmers can benefit from the products of their comprative advantage and technological improvements forced by compitition from world’s other efficient producers.

The Commission for Agricultural Costs and Prices (CACP) which sets minimum support price (MSP) and FCI (Food Corporation of India) which buys at this price needs to be abolised. FCI storage is highly inefficent and significant loss of stock. FCI maintains a work force of 400000 people. Instead



maintain a small stock of around 20 million tons procured at market price to meet food emergencies.

Interstate Movement of Grain and Related Distortions:

Essential Commodities Act (ECA) 1955 which enables states to impose restriction on the storage, transport, price, distribution, and processing of agricultural produce must be repelled. ECA was essential introduced before green revolution due to food shortage causing traders to hoard food. Its not needed now.

Integrate internally (among states) before integrating globally.

Agricultural Marketing

State-Level Agricultural Produce Marketing Committee (APMC) Acts govern the marketing of agricultural produce in India. APMC monopoly between farmers and whole salers. APMC agents are corrupt setting prices in a non-transparent manner by taking bribe from wholesalers

This model doesn’t serve farmers interest for three reasons

i. Rising income and shifting consumer tastes from cereals towards fruit, vegetable etc. Volume of produce to be handled is expanding rapidly – not scalable

ii. Rising income is shifting tastes toward higher quality and speaciality produce

iii. Exports and Imports are becoming increasing important

States have started replacing APMC, it introduce three new avenues to purchase and sales

i. In any marketing area, farmers, consumers, authorities can establish market yards and trade the produce.

ii. Private yards can be established by obtaining licenses to directly trade with the farmers

iii. Farners can contract to sell their produce directly to a buyer bypassing the market.

Example of reliance fresh, Bharti, HLL, Tata, MacDonalds setting up contract with farmers.

Echoupal by ITC, a kiosk which enables farmers to obtain latest price.

Small-Scale Industries Reservation

Prevents the growth of industry. Needs to be abolished.

Food Processing

“Only 2% of fruit and vegetable production is processed compared with 30% in Thiland, 70% in Brazil…” Planning commission of India. Hence offers great scope.

Infrastructure bottlenecks are being addressed



Food Safety and Standards Act (FSSA) aims to modernized legal framework for the food-processing industry.

Commercial/Corporate Farming

Farms in India are becoming smaller and smaller (land owned per farmer), hence very inefficent

Corporate farming allows consolidation of these farms and provides handsome rent and job to the land owners.

This process is slow but other sectors in economy will absorb the displaced workers.

INPUT MARKET REFORMS

Land

Traditional Land Reforms – 1. Abolish zamindars, 2. Imposition of a ceilng on land holding and redistribution, Securing the rights of tenant-cultivator. Didn’t work completely, because of political power of the land lords. Rent control also failed at implementation.

The vexed Issue of Land Titles –

No proper state issued titles. Land records were kept for pupose of revenue collection. Whoever paid revenue was consider the owner of the land.

India property legislation was never framed, registering authority doesn’t verify the document.

Records are in bad shape and not upto date.

Many pending cases relating to land.

Current efforts to digitize land records but it doesn’t solve problem of state guaranteed titles. This has huge payoff and improve rural land market efficency.

Rural Credit

C. H. Hanumantha Rao notes farmers meet 60% credit through formal financial institution and 40% through inform source.

High interest rate in informal lending.

Some state land leasing is illigal hence cannot access institutional credit

Improve credit through contract farming, big farms have easy access to credit.

Expand rural credit through self help group (SHG) of women

Subsidized bank loand is a poor subsititute for social policy



Best way to aid poor is through direct transfer by proper instrument

Fertilizer

Ablolish fertilizer subside to improve quality of fertilizer and promote efficent use of the same.

Electricity and Irrigation

Ablolish subsidary and restrict politians making promises of free electricity and water.

It is distortionary and lead to wastage of water and electricity.

Depleting ground water because of overusage of electric pump

PUBLIC INVESTMENT IN AGRICULTURE AND RURAL INFRASTRUCTURE

Develop rural road, electicity, market and major/minor irrigation project.

Bharat Nirman program proposes to create 10 million hectares of additional assured irrigation.s

Knowledge@Wharton interview with M. Yunus, Founder of the Grameen Bank.Summary by Bharathan Gopalakrishnan

Muhammad Yunus is a Bangladeshi banker and economist. He previously was a professor of economics where he developed the concept of microcredit. These loans are given to entrepreneurs too poor to qualify for traditional bank loans. Yunus is also the founder of Grameen Bank. In 2006, Yunus and the bank were jointly awarded the Nobel Peace Prize, "for their efforts to create economic and social development from below."

M. Yunus believes that micro-finance has to be provided without collateral and most commercial organizations don’t do it as their main intention is profit-making.

Yunus influenced the Govt to introduce regulations to control the interest rates offered by Micro-credit organizations in general.

He also is against the free run of globalization and wants rules in place to prevent large economies from dominating smaller ones

The current financial crisis is a good opportunity to re-design the whole system so that no one (rich or poor) is ever thrown out of the financial system



Even though Grameen Bank is NOT a non-profit organization, it is not run on a profit maximization mode. This objective is also understood by the employees at Grameen Bank

Grameen Health Management Centres are being set up where the technology of the mobile phone is being used to provide health care for patients in villages. For this Grameen has already tied up with Intel and is trying to get into partnership with Google too.

Grameen food products rely on very little marketing and hence cost very less. The idea is to make nutrients available for everyone in the country.

Lots of other business ventures are approaching Grameen for tie-ups. The main intention of all this is to make goods available to the poor at cheapest of prices without sacrificing the quality.

Grameen bank is encouraging entrepreneurship among the children of Grameen families.

Serving the World’s Poor, ProfitablyC.K. Prahalad & Allen Hammond

Summary by KrishnaRao Bodepalli

Improving the lives of the billions of people at the bottom of the economic pyramid is a noble endeavour; it can be a lucrative one.

This is the theme for his views (the fortune at the bottom of the pyramid)

15 yrs from now the global economic scenario may be bleak or bright and that depends upon the big multinational companies to enter and invest the poorest markets. The MNCs need not thrive for the social upliftment but do their business in a fair manner. In the future the markets are going to be saturated and trying out this will only help them to sustain.

The developing world also needs financial aid and improved governance.



Misconceptions -

The barriers like corruption, illiteracy, inadequate infra although real but are much lower than what is typically thought.

The goods are sold incredibly cheap and there is no room for the new competitor to enter the market.

The margins are so low that it becomes unprofitable.

But, the real problem lies in the establishing market and distribution channels.

Several examples stated:

Grameen telecom’s village owned by a single entrepreneur earning $90 per village a month. And villagers spend their 7% of their $200 per capita income

Kenya teenagers are trained to be successful web page designers. Poor farmers in El Salvador use internet to sell crops. Indian women use PCs to interpret real time satellite images so that their husbands can go

for fishing as per the date Centers run in Uganda by women information resource electronic information (WIRES)

focuses on markets and prices as well as credit and trade support system. Gyandoot started in central India, network of 1000 learning centers to distribute vidya to

BOPs(bottom of pyramid) Dupont company uses internet kiosks to provide information on agriculture and receive

inputs from farmers on several crop disease, fertilizers. Hindustan unilever does business of $2.6billion with zero working capital in BOPs ITC initiative through e-choupal serving 600000 farmers has benefitted both with latest

information on weather and best practices. It helps in easy e-procurement for ITC in return. US based dandin corp. Uses ultrawide band communications to unite 1000 islands remotely

connected.

Untapped potential

(in terms of) Purchasing power parity

4 billlion people < $2000

2 billion people < $2000- $20000

100 million > $20000

So a huge chunk of people is being left out at the bottom of the pyramid (financial inclusion)



Comparing the high cost economy of poor

Urban gets interest rate for 12-18% rural gets- 600-1000%

That is the case in phone calls, in rice purchases, diarrhoea medication etc

So higher quality at lower prices, maintaining attractive margins with wide base will sort the issue.

Using latest technologies and innovation will lead to the elimination of the intermediaries and can be done by E- commerce.

These markets are at the earliest stages, so rapid growth.

Strategies for serving market

Many employees want to work on projects that make a real difference in the lives of the poor.

Hul managers from CEO to reconnect with the poor and spend six weeks , to gather the experience, abt their products.

HP introduced a e-inclusion response, it got overwhelming response frm its employees MNCs take mentoring roles for the entrepreneurs in the BOP markets in terms of technical

help, seed funding, business support Pay particular attention to women entrepreneurs for all the reasons. BOPs can be risky, so partnerships, consortia will alleviate a bit Metcalfe’s law- usefulness of network equals the square of the numbers of users.

The Indian Innovation SystemRishikesha T. Krishnan

Summary by

Innovation: A Guide to the LiteratureJan Fagerberg

Summary by

The Cathedral and the BazaarEric Raymond

Summary by Raja Sekar B and Chhandak Barman

I anatomize a successful open-source project, fetchmail that was run as a deliberate test of some surprising theories about software engineering suggested by the history of Linux. I discuss these theories in terms of two fundamentally different development styles, the "cathedral" model of most of the commercial world versus the "bazaar" model of the Linux world. I show that these models



derive from opposing assumptions about the nature of the software-debugging task. I then make a sustained argument from the Linux experience for the proposition that "Given enough eyeballs, all bugs are shallow", suggest productive analogies with other self-correcting systems of selfish agents, and conclude with some exploration of the implications of this insight for the future of software

Eric Raymond.

The essay contrasts two different free software development models:

The Cathedral model, in which source code is available with each software release, but code

developed between releases is restricted to an exclusive group of software developers. GNU

Emacs ( It’s a group that’s dedicated to develop free open software’s) and GCC are presented as

examples.

The Bazaar model, in which the code is developed over the Internet in view of the public.

Raymond credits Linus Torvalds, leader of the Linux kernel project, as the inventor of this

process. Raymond also provides anecdotal accounts of his own implementation of this model for

the fetchmail project.

The essay's central thesis is Raymond's proposition that "given enough eyeballs, all bugs are

shallow" (which he terms Linus's Law): the more widely available the source code is for public

testing, scrutiny, and experimentation, the more rapidly all forms of bugs will be discovered. In

contrast, Raymond claims that an inordinate amount of time and energy must be spent hunting

for bugs in the Cathedral model, since the working version of the code is available only to a few

developers.

The Whole of the article goes around the same concept of how the existing codes can be used to fine tune the code to satisfy the needs of the user

The Author talks about 19 points that good open software must have.

There are 19 steps to creating good open source software listed in his essay:

1. Every good work of software starts by scratching a developer's personal itch.2. Good programmers know what to write. Great ones know what to rewrite (and reuse).3. Plan to throw one away; you will, anyhow.4. If you have the right attitude, interesting problems will find you.5. When you lose interest in a program, your last duty to it is to hand it off to a competent

successor.6. Treating your users as co-developers is your least-hassle route to rapid code improvement

and effective debugging.7. Release early. Release often. And listen to your customers.


http://en.wikipedia.org/wiki/Source_code


8. Given a large enough beta-tester and co-developer base, almost every problem will be characterized quickly and the fix obvious to someone.

9. Smart data structures and dumb code works a lot better than the other way around.10. If you treat your beta-testers as if they're your most valuable resource, they will respond by

becoming your most valuable resource.11. The next best thing to having good ideas is recognizing good ideas from your users.

Sometimes the latter is better.12. Often, the most striking and innovative solutions come from realizing that your concept of

the problem was wrong.13. Perfection (in design) is achieved not when there is nothing more to add, but rather when

there is nothing more to take away.14. Any tool should be useful in the expected way, but a truly great tool lends itself to uses you

never expected.15. When writing gateway software of any kind, take pains to disturb the data stream as little as

possible—and never throw away information unless the recipient forces you to!16. When your language is nowhere near Turing-complete, syntactic sugar can be your friend.17. A security system is only as secure as its secret. Beware of pseudo-secrets.18. To solve an interesting problem, start by finding a problem that is interesting to you.19. Provided the development coordinator has a communications medium at least as good as

the Internet, and knows how to lead without coercion, many heads are inevitably better than one.

The Article is more of technical one in which her quotes examples of his own experience for each one of the above points.

Please read the article for more information on the examples.

The Mail Must Get Through

1. Every good work of software starts by scratching a developer's personal itch.

2. Good programmers know what to write. Great ones know what to rewrite (and reuse).

Linus Torvalds, for example, didn't actually try to write Linux from scratch. Instead, he started by reusing code and ideas from Minix, a tiny Unix-like OS for 386 machines. Eventually all the Minix code went away or was completely rewritten - but while it was there, it provided scaffolding for the infant that would eventually become Linux. In the same spirit, I went looking for an existing POP utility that was reasonably well coded, to use as a development base.

3. "Plan to throw one away; you will, anyhow." (Fred Brooks, The Mythical Man-Month, Chapter 11)

Or, to put it another way, you often don't really understand the problem until after the first time you implement a solution. The second time, maybe you know enough to do it right. So if you want to get it right, be ready to start over at least once.

4. If you have the right attitude, interesting problems will find you.



5. When you lose interest in a program, your last duty to it is to hand it off to a competent successor.

The Importance of Having Users

6. Treating your users as co-developers is your least-hassle route to rapid code improvement and effective debugging.

In fact, I think Linus' cleverest and most consequential hack was not the construction of the Linux kernel itself, but rather his invention of the Linux development model. When I expressed this opinion in his presence once, he smiled and quietly repeated something he has often said: "I'm basically a very lazy person who likes to get credit for things other people actually do." Lazy like a fox. Or, as Robert Heinlein might have said, too lazy to fail.

Release Early, Release Often

Early and frequent releases are a critical part of the Linux development model. Most developers (including me) used to believe this was bad policy for larger than trivial projects, because early versions are almost by definition buggy versions and you don't want to wear out the patience of your users. This belief reinforced the general commitment to a cathedral-building style of development. If the overriding objective was for users to see as few bugs as possible, why then you'd only release one every six months (or less often), and work like a dog on debugging between releases.

7. Release early. Release often. And listen to your customers.

Granted, Linus is a damn fine hacker. But Linux didn't represent any awesome conceptual leap forward. Linus seems to me to be a genius of engineering, with a sixth sense for avoiding bugs and development dead-ends and a true knack for finding the minimum-effort path from point A to point B. So, if rapid releases and leveraging the Internet medium to the hilt were not accidents but integral parts of Linus' engineering-genius insight into the minimum-effort path, what was he maximizing? What was he cranking out of the machinery?

8. Given a large enough beta-tester and co-developer base, almost every problem will be characterized quickly and the fix obvious to someone.

Or, less formally, "Given enough eyeballs, all bugs are shallow." I dub this: "Linus' Law".

Here, I think, is the core difference underlying the cathedral-builder and bazaar styles. In the cathedral-builder view of programming, bugs and development problems are tricky, insidious, deep phenomena. It takes months of scrutiny by a dedicated few to develop confidence that you've winkled them all out. Thus the long release intervals, and the inevitable disappointment when long-awaited releases are not perfect. In the bazaar view, on the other hand, you assume that bugs are generally shallow phenomena - or, at least, that they turn shallow pretty quick when exposed to a thousand eager co-developers pounding on every single new release. Accordingly you release often in order to get more corrections, and as a beneficial side effect you have less to lose if an occasional botch gets out the door.



And maybe it shouldn't have been such a surprise, at that. Sociologists years ago discovered that the averaged opinion of a mass of equally expert (or equally ignorant) observers is quite a bit more reliable a predictor than that of a single randomly-chosen one of the observers. They called this the "Delphi effect".

When Is A Rose Not A Rose?

9. Smart data structures and dumb code works a lot better than the other way around.

10. If you treat your beta-testers as if they're your most valuable resource, they will respond by becoming your most valuable resource.

Popclient becomes Fetchmail

11. The next best thing to having good ideas is recognizing good ideas from your users. Sometimes the latter is better.

Interestingly enough, you will quickly find that if you are completely and self-deprecatingly truthful about how much you owe other people, the world at large will treat you like you did every bit of the invention yourself and are just being becomingly modest about your innate genius. We can all see how well this worked for Linus!

12. Often, the most striking and innovative solutions come from realizing that your concept of the problem was wrong. Don't hesitate to throw away superannuated features when you can do it without loss of effectiveness. Antoine de Saint-Exupery (who was an aviator and aircraft designer when he wasn't being the author of classic children's books) said:

13. "Perfection (in design) is achieved not when there is nothing more to add, but rather when there is nothing more to take away." When your code is getting both better and simpler, that is when you know it's right. Fetchmail Grows Up

14. Any tool should be useful in the expected way, but a truly great tool lends itself to uses you never expected.

15. When writing gateway software of any kind, take pains to disturb the data stream as little as possible - and *never* throw away information unless the recipient forces you to!

A Few More Lessons From Fetchmail

16. When your language is nowhere near Turing-complete, syntactic sugar can be your friend.



Another lesson is about security by obscurity. Some fetchmail users asked me to change the software to store passwords encrypted in the rc file, so snoopers wouldn't be able to casually see them. I didn't do it, because this doesn't actually add protection. Anyone who's acquired permissions to read your rc file will be able to run fetchmail as you anyway - and if it's your password they're after, they'd be able to rip the necessary decoder out of the fetchmail code itself to get it. All .fetchmailrc password encryption would have done is give a false sense of security to people who don't think very hard. The general rule here is:

17. A security system is only as secure as its secret. Beware of pseudo-secrets.

Necessary Preconditions for the Bazaar Style

It's fairly clear that one cannot code from the ground up in bazaar style. One can test, debug and improve in bazaar style, but it would be very hard to originate a project in bazaar mode. When you start community-building, what you need to be able to present is a plausible promise. I think it is not critical that the coordinator be able to originate designs of exceptional brilliance, but it is absolutely critical that the coordinator be able to recognize good design ideas from others.

A certain base level of design and coding skill is required, of course, but I expect almost anybody seriously thinking of launching a bazaar effort will already be above that minimum. A bazaar project coordinator or leader must have good people and communications skills. This should be obvious. In order to build a development community, you need to attract people, interest them in what you're doing, and keep them happy about the amount of work they're doing. Technical sizzle will go a long way towards accomplishing this, but it's far from the whole story. The personality you project matters, too.

The Social Context of Open-Source Software

It is truly written: the best hacks start out as personal solutions to the author's everyday problems, and spread because the problem turns out to be typical for a large class of users. This takes us back to the matter of rule 1, restated in a perhaps more useful way:

18. To solve an interesting problem, start by finding a problem that is interesting to you.

19: Provided the development coordinator has a medium at least as good as the Internet, and knows how to lead without coercion, many heads are inevitably better than one. I think the future of open-source software will increasingly belong to people who know how to play Linus' game, people who leave behind the cathedral and embrace the bazaar. This is not to say that individual vision and brilliance will no longer matter; rather, I think that the cutting edge of open-source software will belong to people who start from individual vision and brilliance, then amplify it through the effective construction of voluntary communities of interest.



India & the Knowledge Economy: Opportunities & ChallengesCarl Dahlman & Anuja Utz

Summary by Krati Garg

Knowledge Economy: One that creates disseminates and uses knowledge to enhance its growth and development.

1. Current Economic Context

2. Importance of Knowledge in an increasingly dynamic and competitive global environment

Application of knowledge is a key source of growth and competitiveness in global economy Increased speed of creation and dissemination of knowledge has made it more important in

development strategy. Knowledge Revolution: The twin forces of GLOBALIZATION and TECHNOLOGICAL ADVANCES

have spurred a knowledge revolution which makes knowledge very important. Egs of knowledge revolution: Closer links between science and technology, increased

importance of education and lifelong learning, etc. Countries’ competitiveness is increasingly becoming dependent on their ability to access,

adapt, utilize and create knowledge. Knowledge application has become driver for economic growth – increase productivity, create

new products/ services etc. KE doesn’t always mean high tech industries. Creating a new knowledge or use existing one to

help do things better also make up the KE. (KE will be used for knowledge economy henceforth)

3. Opportunities for India to become Knowledge Economy4 pillars of KE:1. An economic and institutional regime that provides incentives for the efficient creation,

dissemination and use of existing knowledge2. An educated and skilled population that can create and use knowledge3. An efficient innovation systems of firms, research centres, universities, consultants that can

tap into the growing stock of global knowledge and assimilate and adapt it to local needs, as well as to create relevant new knowledge.

4. Dynamic information infrastructure that can facilitate the effective communication, dissemination, and processing of information.

Strengths for India to become KE:1. Skilled human capital2. Democratic system3. Widespread use of English4. Macroeconomic stability5. Dynamic private sector6. Institutions of free market economy7. Largest local market in the world



8. Well developed financial sector9. Broad and well developed S&T infra10. Recent years development of ICT sector11. India becoming the most sought after destination for RnD.

Benchmarking India’s overall knowledge readiness:

Knowledge Assessment Methodology (KAM)-

World Bank tool to benchmark countries against others in global KE. Compares countries quantitatively and qualitatively on the four pillars of KE Helps identify opportunity and challenges Strength of the tool- Cross sectional approach, users can focus on all pillars equally.

Knowledge Economy Index- The average performance scores of the countryor region on the four pillars on KE. Variables used for each of the pillar:

Pillar Variables

1 Tarrif-Non tariff barriers, regulatory quality, rule of law

2 Adult literacy rate, secondary enrolment, tertiary enrolment

3 Research, patents, journals & publications

4 Telephones/1000, computers/1000, Internet/10000

There are two additional variables:

GDP growth HDI

Decline in country’s scores due to 2 reasons: Country hasn’t grown well Other countries have grown relatively faster

4. Challenges faced by India India has performed well on some of the factors while not so well on others, there is scope

for improvement. (factors discussed in Pt. 4) Disparities among states: the growth in knowledge of India, may not represent the state’s

level of development. There are wide disparities.

Global Comparisons with India

Global Competitiveness Ranking: Includes two major indexes-

1. The Growth Competitiveness Index (GCI)- To gauge the ability of world’s economies to achieve sustained economic growth in medium to long term.Identifies 3 imp. Areas in evolution of growth in a country-



Quality of macroeconomic environment State of public institutions Level of technological readiness

2. Business Competitiveness Index (BCI)- It emphasizes a range of company specific factors that are conducive to improved efficiency and productivity at the micro level. It comprises 2 subindices:

One focuses on company operations and strategy ranking Strategy ranking and the other on the quality of the business environment

Globalization Ranking

The globalization Index: Countries grouped into 4 baskets-

1. Economic Integration2. Technological Connectivity3. Personal Contact4. Political Engagement

Who Owns the Knowledge EconomyPeter Drahos with John Braithwaite

Summary by Sadanand

The Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) is an international agreement administered by the World Trade Organization (WTO) that sets down minimum standards for many forms of intellectual property (IP) regulation.

In1995, Peter Drahos wrote a futuristic article called ‘Information Feudalism in the Information Society’. It took the form of an imagined history of the information society in the year 2015. Drahos provided a pessimistic vision of a future, in which the information age was ruled by the private owners of intellectual property. This science fiction assumed that a small number of states would dominate the emerging international regulatory order set up under the World Trade Organization.

Drahos and Braithwaite emphasize that the title 'Information Feudalism' designates the transfer of knowledge from the intellectual commons to private corporations under the regime of intellectual property. In this book, Drahos and Braithwaite trace the dealmaking at the General Agreement on Tariffs and Trade (GATT) that led to intellectual property becoming a part of the World Trade Organization. The authors seek to solve a fundamental conundrum about the development of the TRIPs Agreement.

One of the puzzles this book sets out to solve is why states should give up sovereignty over something as fundamental as the property laws that determine the ownership of information and the technologies that so profoundly affect the basic rights of their citizens. The puzzle deepens when it is realized that in immediate trade terms the globalization of intellectual property really only benefitted the US and to a lesser extent the European Community.



A number of explanations are advanced to solve this mysterious turn of events.

The book is filled with the susurrus of the murmuring voices who provide insider's insights into the deliberations behind the formation of international treaties. However, a few dominant personalities stand out in the book. A small number of visionaries and entrepreneurs were responsible for the development of the TRIPs agreement. The chairman of pharmaceutical drugs company, Pfizer, Edmund Pratt, was a central figure in the globalization of intellectual property rights.

Drahos and Braithwaite are particularly interested in the operation of the patent office. In contemporary times, patent offices have become increasingly dependent upon funding their operations from patent fees collected from applicants. As a result, they have undergone a cultural change, in which they have become beholden to multinational companies. The development of the TRIPs agreement has put pressure on developing countries to set up intellectual property offices. The authors conclude that a number of measures are necessary to prevent the capture of patent offices and courts by multinational corporations. They advise that non-governmental organisations should demand effective application of the tests of patentability in the public interest, and insist on denial of patents to companies which do not adequately document the know-how needed to work the invention. Furthermore, there is a need for human rights and competition rules to be taken seriously by patent administrations.Drahos and Braithwaite also stress the importance of copyright law during the negotiations of the TRIPs agreement.


bgs summaries - end term - pgp 2011

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