Economic and Political Weekly Vol. 47, No. 2, JANUARY 14, 2012

JANUARY 14, 2012 V0IXLVIIN02
Economic&Politicalweekly
A SAMEEKSHA TRUST PUBLICATION www.epw.in
EDITORIALS The Fall of the Rupee

■ Starting to Unravel A market-determined exchange rate does not work for
■ Strange Notion of Communal Harmony growth, jobs and financial stability. The causes of and
■ If Mountains and Rivers Could Speak possible remedies for the decline of the rupee, page 10
COMMENTARY
■ The Fall of the Rupee
■ WTO: Another Attempt at Fighting Irrelevance Governing the Urban Poor

■ The Politics of Sovereignty in Pakistan The politics of inclusion in the Sabarmati riverfront
■ Adivasi Predicament in Chhattisgarh project in Ahmedabad has been predicated on a
■ Food Expenditure and Intake "flexible governing" of the residents of informal
■ Kremlin Comeback: The Putin Overdrive settlements, page 49
FROM THE STATES
■ Death by Smoke
Death by Smoke
BOOK REVIEWS
The "super specialty care" offered through
■ The Politics of Religion and Foundational
public-private partnerships by the likes of AMRI in
Crisis in South and Southeast Asia
Kolkata has raised the cost of medical treatment to
■ The US-India Nuclear Pact
exorbitant levels, page 32
■ The Village and the World: My Life, Our Times
PERSPECTIVES
■ The Idea of Happiness The Idea of Happiness

SPECIAL ARTICLES The idea of happiness has changed; it is now a
■ Governing the Urban Poor in Ahmedabad measurable, autonomous, manageable, psychological
■ Impact of Tariff Cuts on Agriculture variable in the global middle-class culture, page 45
■ Forced Sex within Marriage in Rural India
NOTES
■ Is India a Case of Asymmetrical Federalism?

Fighting Irrelevance
At its eighth ministerial of the World Trade
DISCUSSION
Organisation, the more powerful countries tried to
■ Bidi and Tendu Trade
fight the WTO's descent into irrelevance by floating
CURRENT STATISTICS exclusionary proposals, page 14
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JANUARY 14, 2012 | vol xlvii no 2
Economic&PoliticalwEEKLY
The Fall of the Rupee: Background, Remedy and Policy EDITORIALS
Starting Bank
10 If we want growth, jobs and financial stability, the Reserve to Unravel.
of India
Strange
must go back to managing the exchange rate rather than Notion ofitCommunal
leaving to be Harmony 8
determined by the market. If Mountains and Rivers Could Speak 9
FROM 50 YEARS AGO 9
WTO: Another Attempt at Fighting Irrelevance
14 Ever since the Doha Round was launched
COMMENTARY in 2001 wi
basis by the United States and The Fall
the of the Rupee: Background,
European Union, Remed
th
a crisis of relevance. and Policy—A V Rajwade 10
WTO: Another Attempt at Fighting Irrel
The Politics of Sovereignty in Pakistan -D Ravi Kanth 14
17 How do we understand the growing centrality of sovereignty in oppositional The Politics of Sovereign
political rhetoric in Pakistan and how should Pakistanis pursuing a -MajedAkhter 17
progressive politics view this issue? Adivasi Predicament in C
-Supriya Sharma 19
Adivasi Predicament in Chhattisgarh Food Expenditure and Intake
19 Chhattisgarh's adivasis are besieged by the State, the Maoists and in the NSS 66th Round —S
Kremlin Comeback: The Putin Overdrive
mining corporations and find themselves having little say on how their lives
are organised. Rama Sampath Kumar
FROM THE STATES
Food Expenditure and Intake Death by Smoke—Rajashri Dasgupta 32
23 An analysis of the shift from food to non-food items in all expenditure
BOOK REVIEWS
categories in both rural and urban areas across three rounds of the National
Sample Survey. The Politics of Religion in South and Southe
Asia; Foundational Crisis in South and Sou
Kremlin Comeback: The Putin Overdrive Asia: Bangladesh, Indonesia and Malaysia
Religion-Politics Interface
27 It remains to be seen whether, after the demonstrations against the
-Partha S Ghosh 34
parliamentary elections, Russia's Vladimir Putin will be more sensitive to
The US-Inaia Nuclear Pact: P
public opinion and reinvent himself ahead of the presidential elections.
Great Power Politics - Expla
Excluding the Voices of Diss
Death by Smoke —Sukumar Muralidharan 36
If the AMRi experience of a joint venture is anything to go by, West
TheBengal i
Village and the World: My Life, Our
heading towards a health catastrophe that will hit the poor the hardest.
Feminist Perspectives on Food Securi
and Survival—Gabriele Dietrich 38
The Idea of Happiness
PERSPECTIVES
45 The self-conscious, determined search for happiness has gradually
The Idea of Happiness—Ashis Nanay 45
transformed the idea of happiness from a mental state to an objectified
quality of life and it has emerged as a manageable, psychological variable
SPECIAL in
ARTICLES
the global middle-class culture. Governing the Urban Poor: Riverfront

Development, Slum Resettlement and the
Politics of Inclusion in Ahmedabad of Inclusion in Ahmedabad
—Renu
Rather than a well-thought-out strategy on the urban poor, the approach of Desai 49
state authorities in the Sabarmati Riverfront Development project hasImpact of Tariff Red
fluctuated in response to changing calculations and pressures. Modalities on India's T
—Bishwanath Goldar
Dona Modalities and India's Trade of Agricultural Products Yashobanta Parida 57
Women's
An estimate of how India's trade in agricultural products may be affected by Empowerment and
Marriage in Rural India
tariff reductions according to the tiered formula of the 2008 draft modalities
—Rajib Acharya, Shagun Sab
in the Doha Round of the World Trade Organisation.
ShireenJ Jejeebhoy 65
Forced Sex within Marriage in Rural India NOTES
What are the key indicators of rural women's empowerment in India Isthat
India a Case of Asymmetrical Federalism?
influence the risk of experiencing forced sex within marriage? An argument
Rekha Saxena
for programmes that enhance women's autonomy and encourage education.
DISCUSSION
The Perverse Economics of the Bidi

Is India a Case of Asymmetrical Federalism? and Tendu Trade
India is replete with de jure and de facto asymmetries which may make its
—Pranay G Lai, Nevin C Wilson 77
federalism inflexible, yet they represent the search for consensus among the
elites and the masses. CURRENT STATISTICS 8l
The Perverse Economics of the Bidi and Tendu Trade

77 A response to A Rational Taxation
SUBSCRIPTIONSystem
RATES AND of Bidis an
Smoking Deaths in India" (epw, NOTES
15 FOROctober
CONTRIBUTORS . 2011).
Economic&PoliticalwEEKLY LETTERS
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Printed by K Vijayakumar at Modern Arts and Industries,
151, A-Z Industrial Estate, Ganpatrao Kadam Marg, related concern and could perhaps make
be an argument for policy interventions
Lower Parel, Mumbai-400013 and better addressed by unconditional cash
in the healthcare sector to build higher
published by him on behalf of Sameeksha Trust
from 320-321, A-Z Industrial Estate, transfers, other income transfer mecha
levels of prepayment even if they are oop
Ganpatrao Kadam Marg, Lower Parel, Mumbai-400013.nisms, and in the financial services sector to
and poverty alleviation programmes.
Editor: C Rammanohar Reddy.
The fact that such a gap exists is not a
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4 January 14, 2012 vol XLVii no 2 nun Economic & Political weekly
LETTERS
(3) Informational Challenges and Public

an uncoordinated engagement of the pri With ill-equipped fire service depart
Health Concerns: Healthcare suffers from
vate sector in the provision of healthcare, ments, absence of space for fire tenders to
severe problems of information asymmetry
or a so-called "market driven" or a purely move and frequent violation of building
"demand led" approach, would be suffi norms, the new wave of building malls,
(provider knows more than the patient)
and information distortion (the patient
cient to address the subject of comprehen multiplexes and high-rise commercial com
does not know what is wrong withsive healthcare.
her) plexes are a perfect recipe for disaster. Even
In our view therefore the rationale for
which when combined with hyperbolic in a small city like Mangalore there was a
preferences produces sharp undercon
the involvement of the government in serious fire accident in a large commercial
sumption of preventive healthcare, ahealthcare
very comes not from the fact that complex some time ago, but the fire tenders
health is a public good or that we havefound it difficult to reach the spot. In spite
distorted consumption of primary health
care services, and proportionately a high
much levels of poverty in India, but fromof the objection from the state fire service
the special nature of healthcare, parti department a huge mall (with a multiplex
higher level of consumption of secondary
and tertiary services. For this reason it is the informational and coordinacn the anvil) has come up in the heart of
cularly
therefore not at all clear that cash trans
tion challenges outlined earlier. It is forthe city. An order passed by the city's com
fers (conditional or unconditional) wouldthese reasons that the government has amissioner to demolish unauthorised floors
produce the best levels of healthcare key role to play in ensuring first-best outhas not been carried out. Perhaps a disaster
outcomes for individuals and that some comes for the health system. may have to happen to enforce decisions.
sort of "I know what is good for you"Karthik Tiruvarur (ictph), In the smaller cities, structures which
Swati Grewal (ifmr Rural Finance),
paternalism (such as requiring the pre violate safety norms as well as the National
Nachiket Mor (Sughavazhvu Healthcare) and
scription of oral medication even when Building Code are built by the powerful
Bindu Ananth (ifmr Finance Foundation)
patients "irrationally" demand injectibles)
CHENNAI
land developers who are patronised by the
is not called for even in the case of entirely establishment. Ironically, the inauguration
"private" healthcare expenditures for all of such complexes is often undertaken by
households, not just low income housePlaying with the Lives
the local ministers so that nobody can
holds. There are also several areas of of Citizens raise a question about the irregularities.
healthcare which fall squarely in the For all such failures the ordinary citizen
domain of "public goods" such as the pro pays. The compensation to the victims'
vision of clean drinking water and sanitaAgainst the epw's
tragedy, backdrop of Kolkata's
diagnosis and the preamri's kin is paid by the state out of taxpayers'
tion services, which, just as in the caseventive
of measures that have been suggested money and the victims are casual visitors
unexpected healthcare expenditures, would are appropriate and logical ("Playing with to the theatres and shops, which swells
be difficult for individual households to Lives", Epw, 31 December 2011). But will the coffers of the private owners. Those
organise on their own. the authorities learn from the past? The who get charred to death are, as in the
These arguments, to our mind, build a smaller cities which are growing fast case of Uphaar tragedy, common citizens.
much stronger case for a better organisa without proper planning are more vulner TRBhat
tion of healthcare and healthcare expen able to such risks. MANGALORE
ditures in the country for all households

(not just low incomes ones) than do the
ones presented in the article. This could
either be done with the government play
EPW 5-Year CD-ROM 2004-08 on a Single Dis
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supporting the creation of a managed care articles laid out in individual sections in each issue.
framework in which the private sector With its easy-to-use features, the CD-ROM will be a convenient resource for social scientists
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6 January 14, 2012 vol xlvii no 2 (3X3 Economic & Political weekly
Economic&PoliticalwEEKLY ~~
JANUARY 14, 2012
Starting to Unravel
Is the Indian model of growth in the age of financial globalisation beginning to weaken?
But the rapid depreciation of the rupee from September 2011 is

certainty for the world economy; this bodes ill for the probably more the result of a significant deceleration of net
The year 2011
Indian model ended
of growth in 2012. with the prospect of continued un capital inflows last year. According to the rbi's data, these held
Official macroeconomic data comes in with a considerable lag up in the first half of 2011-12 but almost entirely because of the
but what we know from the available information is that few recourse of Indian companies to large external commercial
economies in the world were free from trouble towards the end borrowings (ecbs). Besides being risky, the current fragility of
of last year. In the world's biggest economic bloc, the 17-nation
European banks means that this source may yield only a trickle
eurozone, real gross domestic product (gdp) growth in the third
this year. At the very heart of the Indian model of growth in
the period of financial globalisation are significant capital
quarter (July-September) was a mere 0.2%. Indeed, for the 27
nation European Union, it was no better - only 0.3%. Growth inflows.
in If these were to dry up in 2012 and if this is more than
merely a short-term phenomenon, it would be a real sign of a
the us has also been sluggish, and with both the Republicans and
the Democrats dancing to the tune of the bond market, 2012possible
is falling apart of the growth process. But we shall have
to wait and see.
unlikely to witness signs of a stable economic recovery. Japan has,
of course, been in negative territory since the first quarter of 2011. We need to constantly remind ourselves that it was only with a
The foremost engine of world economic growth - China - also
very significant step-up of net capital flows as a proportion of gdp
seems to be faltering. In the wake of the bursting of its real
from 2003-04 onwards, and with it the wealth effect, the expan
sion of liquidity and consumer credit, and the fresh release of
estate bubble, investment expenditure in construction is likely
to slow down. The negative wealth effect of the collapse of the
"animal spirits" that elite consumption and private investment
bubble is also set to adversely affect consumption expenditure.
led growth took off. Such growth had its inevitable limits, and
And China is already coping with the plummeting of the net
when the financial crisis struck it was the public sector banks
exports component of aggregate demand as a consequence and
of the Keynesian revival package together with the Sixth Pay
Commission award that saved the economy from recession.
recessionary economic conditions in its main markets. The Bank
of China has forecast a fall in the country's growth of real gdp
Then, with the revival of capital inflows in 2009-10 and 2010-11
from 9.1% in 2011 to 8.8% this year, which itself looks like an
and a return of sorts to the elite consumption-cum-private invest
overly optimistic estimate. ment-led growth model, the economy recovered and all seemed
What does all this mean for the prospects of India's merchan
well again. But with foreign institutional investment now col
dise and information technology-enabled services-business process
lapsing, ECBS unlikely to be available as before, and foreign di
outsourcing (it-itcs-bpo) exports? The Reserve Bank of India's
rect investment unable to make up the difference, there is a huge
(rbi) data until September tells us that it exports did very
question about this "growth engine". If foreign capital is not
well in the first half of 2011-12. Indeed, it was services exports
available, the Indian growth model of the first decade of the 21st
in general that helped moderate the current account deficit
century may well have run its course.
to around 3.5% of gdp. However, with merchandise exportsThe government is trying its best to revive capital inflows - the
beginning to show signs of declining growth after the strong
limits on foreign investment in government and corporate debt
expansion of recent years, the merchandise trade deficit willinstruments have been hiked, the interest rates on non-resident
widen sharply. We mentioned China precisely because India's deposits have been deregulated, and now, the definition of a
merchandise exports have witnessed a diversification of sorts,
"qualified foreign investor" has been widened. And to please the
from west Europe and north America towards developing Asia,
financial markets, the prime minister, in his new-year message,
has stressed fiscal consolidation and once again reiterated his
specifically China. Overall, with the growth of imports of goods
and services seemingly moderating less than that of exports,government's commitment to usher in a liberalisation of foreign
direct investment in organised retail, insurance and pension
the negative net exports component of aggregate demand may
only worsen. funds. The fact that India ranks 134 in the list of 187 countries in
Economic & Political weekly laavi January 14, 2012 vol xlvii no 2 7
EDITORIALS
inflows
terms of the United Nations Development Programme and outflows of capital. Those governments did and
s Human
continues
Development Index and is far, far behind China, and even to do all it can possibly do to attract such (foreign
Sri Lanka
money
on that score is conveniently forgotten. That India is and retain it, and this imperative overrode/override
even worse
needs
than Pakistan and Bangladesh in the ranking in terms of of the Indian electorate, except when elections are
the gender
Add to this
inequality index, with our maternal mortality rate shamefully onethe fact that in this age of financial globalis
inequality in income and wealth has worsened and corrup
of the highest does not seem to matter to the powers-that-be.
The Congress-led United Progressive Alliance (upa) i and
has hit the n
roof, and one can possibly understand why capit
in India
governments, and before them the Bharatiya Janata has been rendered incompatible with democracy.
Party-led
National Democratic Alliance government bestowed theless, this very model of the accumulation of wealth and
the financial
seems
markets with power to engineer booms and busts with to be beginning to fall apart.
the volatile
Strange Notion of Communal Harmony
Madhya Pradesh's law banning cow slaughter is discriminatory and arbitrary
banning cow slaughter and thus beef would be akin to violating

strange reason for amending the Gau-Vansh Vadh Pratishedh the fundamental rights of the dalits. The Karnataka Bill also
The Madhya Pradesh
(Sanshodhan) Act (mp)
or cow slaughter law togovernment
introduce far has put forward a goes further than the earlier law by prohibiting the slaughter of
more stringent provisions than the earlier Prohibition of Cow she-buffaloes, their calves, bulls and male and female buffaloes.
Slaughter Act 2004. It believes that this is in the interest of On the other hand, the existing Karnataka Prevention of Cow
communal harmony in the state. The amended Act provides for Slaughter and Cattle Preservation Act, 1964 stipulates conditions
harsh punishment and grants the police extremely arbitrary for killing calves (including those of female buffaloes) and cows.
powers. It essentially criminalises the eating habits of millions of Only buffaloes, bulls and bullocks that are 12 years old or more, or
citizens, especially Muslims, Christians, dalits, and a large not fit for breeding or milking, are permitted to be slaughtered
number of Hindus too. The punishment now for cow (and calf) under the 1964 law.
slaughter will carry a minimum of one year and maximum seven In the long and ever simmering debate on cow slaughter and
years' imprisonment along with a fine of Rs 5,000. Even storing beef eating, the lines have always been drawn between the reli
or transporting beef will now be punishable with a minimum gious minorities, dalits and lower caste Hindus on one side and
term of six months, which can be extended up to three years. the (mostly, though not always) upper caste Hindus on the other.
The most contentious provision in the law is that a competent History has been repeatedly roped in to prove either side's con
authority" has been empowered to "enter and inspect any tention. Historians like R S Sharma and D N Jha have thrown the
premises" where he has "reason to believe that an offence under weight of their research in support of those who say that beef eat
this Act has been, is being, or is likely to be committed", and ing was routine in the Vedic period. It was the later and growing
take necessary action. More importantly, the onus is on the nod to caste consciousness that termed meat eating, particularly
accused to prove his or her innocence. Given the way the police beef eating, as unclean.
and the legal system function, such a provision is more than States like Gujarat, Karnataka, Jharkhand and Himachal Pradesh
likely to be abused as it allows scope for wide interpretation. already have laws against cow slaughter, while Orissa and Andhra
Add to this the fact that the present mp government has a history Pradesh permit the killing of cattle other than cows if the animals
of targeting the state's religious minorities, one can see that are not fit for any other purpose. There are minimal restrictions
far from helping communal harmony, the law is likely to in other states and none in West Bengal and Kerala. While the
inflame passions. right wing and Hindutva parties make no bones about their
But it is not just from the point of view of minority rights assertion that a total ban on cow slaughter is their aim, the Con
that this Act seems discriminatory. Those protesting against gress too has time and again played the cow protection card es
Karnataka's Prevention of Slaughter and Preservation of Cattle pecially in the north. Yet in Karnataka, the non-Bjp opposition
Bill, 2010 (which also has stringent provisions) have pointed out has come out strongly against the new bill on cow slaughter even
how it is anti-farmer and anti-poor. Farmers, including those though this is an issue that most political parties prefer to shy
who do not eat beef themselves, usually sell old cows to the away from. Above all, what the changes in the law in Bjp-ruled
butcher in order to buy new cattle stock. This not only provides states like mp and Karnataka bring out is the bjp governments'
meat to many families who find beef an affordable source of lack of concern for anyone who does not endorse the party's set of
protein but also services the indigenous leather industry that beliefs. By criminalising people's choice in something as personal
supports a large workforce. In fact, dalit organisations in Karna as what they choose to eat, these governments are demonstrating
taka (where there is also a bjp government) have been in the their total lack of respect for diversity and their cavalier disregard
forefront of the protest against this bill becoming law. They have of rights guaranteed to everyone, including the minorities, in a
consistently pointed out that in the face of rising food prices, democratic system such as the one that prevails in India.
8 January 14, 2012 vol xlvii no 2 B3S3 Economic & Political weekly
EDITORIALS
If Mountains and Rivers Could Speak

By granting rights to Nature, Bolivia and Ecuador have subverted conventional wisdom on the use of natural resour
Following in Ecuador's footsteps, Bolivia has gone further by

assert its right to exist without being gouged out for the bringing in a "Law of Mother Earth" that grants equal rights to nature
What if the Niyamgiri
bauxite that lies under its rocks?mountain
What if the Narmadain Orissa were able to and humans. Based on the indigenous concept of Pachamama (the
River were able to declare that it wanted to flow freely without environment and earth deity), the law defines these rights to
being blocked by large dams? What if the many rivers that have died include the right to life and to exist, the right to continue vital cycles
due to unchecked pollution could cry out that they too had a right and processes free of human alteration, the right to pure water and
to live? This might sound like the script of another Avatar-like clean air, the right to balance, the right not to be polluted, the right
Hollywood film. It is in fact a concept that has been translated into to not have cellular structure modified or genetically altered and,
law by two countries in South America - Ecuador and Bolivia - and is significantly, the right "not to be affected by mega-infrastructure
being seriously considered by at least half a dozen others. If Bolivia's and development projects that affect the balance of ecosystems
proposal to the United Nations to accept a Universal Declaration and the local inhabitant communities". Once the mechanisms of
of the Rights of Mother Earth along the lines of the Universal Dec implementation are in place, the law could redirect crucial devel
laration of Human Rights, goes through, it could well lead to a serious opmental choices, including the extent to which mineral resources,
rethinking of standard environmental laws and approaches on which Bolivia's economy is dependent, will be mined.
towards maintaining a balance between humans and nature. Behind this concept, apart from its underpinnings in indigenous
The countries that have led the way in this reformulation are philosophy, is the realisation that current approaches to conserving
economically poor and yet rich in natural and mineral resources. the environment have failed miserably and that poor countries
For years they have had to suffer predatory international capital have had to pay the price. For instance, many of the measures deal
that has left a trail of destruction. In fact, on 4 January this year, ing with climate change are based on the belief that the problem
an appeals court in Ecuador upheld the judgment of a lower court can be fixed through market instruments. In mechanisms like redd
in a legal battle waged over 18 years, holding the United States oil (Reducing Emissions from Deforestation and Forest Degradation), a
giant Chevron responsible for environmental damage to the Amazon programme conceived to allow richer countries to offset their emis
forests and imposing a fine of $18 billion in damages. Between sion of greenhouse gases by paying poorer countries to maintain their
i960 and 1992, when Texaco (which merged with Chevron in 2001) forest cover, the capacity of these forests to capture and store carbon
extracted oil from Ecuador, it was accused of dumping 18 million dioxide is measured and certificates are then bought and sold. What
tonnes of oil in unlined pits over two decades in the Amazon, this does is to reduce forests to a tradable commodity rather than
thereby contaminating the groundwater of over 1,700 hectares view them as part of a larger ecosystem that sustains life on Earth.
and causing serious health problems to thousands of local people. Environmental laws in most countries are based on a regulatory
While in this case, it is people who filed for damages, the new system where limits are placed on the extent to which you can
laws in Ecuador and Bolivia give the Amazon the right to sue for pollute. Compensation for injury and damages is calculated on the
damages. In 2008, Ecuador was the first country in the world basis of damages to humans and not to ecosystems. The concept
to recognise that apart from humans, Nature also had rights. articulated by Bolivia and Ecuador suggests that unless natural
Ecuador's new constitution not only specifies these rights it also systems are given equal importance to human needs, there cannot
lays down that the government has to take "precaution and be a balance and Earth will continue to hurtle more rapidly towards
restrictive measures in all the activities that can lead to the an environmental catastrophe. Even if the concept is difficult to
extinction of species, the destruction of the ecosystem orimplement,
the it represents a bold and different approach and sub
permanent alteration of the natural cycles". verts the conventional wisdom on sustainable development.
FROM 50 YEARS AGO come through, not only in Indiaovercome

but the by playing up the evils of caste or
world over... presenting the Congress thesis on national inte
£he Economic WeeMg
a journal ot Current economic anb political affair*
More significant, perhaps, was not so gration. Something more powerful was needed.
much Pandit Nehru's tirade against caste and The line that the Congress is now trying
VOL XIV, NO 2, JANUARY 13, 1962 casteism, but the applause which it brought out to wean away the prospective voter from
from his audience. Surely, in attacking caste the Jan Sangh will not be found in the resolu
EDITORIALS
as the enemy of national integration, Panditji tions...the Congress President took a tougher
could not have in mind the Swatantra party line - not in regard to China (Krishna Menon
Congress and Jan Sangh primarily. Though Jan Sangh didn't figure may no longer need it) - but in regard to
With the General Elections due to be
much held
in the speeches, there is evidence in occupied Kashmir:
next month, it was natural that the plenary
plenty that this is the party which is offering "We have to liberate it. The whole country
session of the Congress at Patna should have opposition to the Congress in
the strongest will be behind the Government in its efforts
been converted into the election thecampaign
north. The inference is also inescapable to liberate that part of Kashmir which is
for the Congress party... Pandit Nehru
that the was under forcible occupation of Pakistan...let us
Congress has little confidence that the
emphatic that socialism would ultimately
appeal of the Jan Sangh could be effectively hope in a short period..
Economic & Political weekly EH33 January 14, 2012 vol xlvii no 2 9
COMMENTARY
The Fall of the Rupee:

invoicing and not the destination. The rea
son is that for non-differentiated goods the
Background, Remedy and Policy

sourcing of purchases by the importer
would be driven by the price of the same
garment quoted by an exporter in India
and in, say, Bangladesh, in a common cur
A V RAJWADE
rency like the dollar: they would not be
concerned with inflation in Bangladesh or
It would appear that over the past in India. Inasmuch as something like 80%
extremely volatile during the last
couple of years the Reserve Bank of our trade is denominated in dollars, an
of India has moved towards a

The rupee s exchange
five years. rate has been
There was a sharp even simpler proxy is to look at the real ex
appreciation in first half (hi) of 2007-08, change rate against the dollar.
policy of a market-determined and reasonable stability in the second Coming back to reer, the last time it
exchange rate which is in line half (h2) of that year (Chart 1, p 11). Then was near 100 was in mid-2009-10. Since
with the Anglo-Saxon beliefs. But there was a sharp fall in 2008-09 (the then it has been rising continuously, with
year of the financial crisis), continued the Reserve Bank of India (rbi) remaining
if the objective is growth, jobs on the sidelines.
appreciation over 2009-10, and reasona
and financial stability, we need to ble stability over 2010-11 and the first The article discusses two basic questions:
go back to managing the exchangequarter (qi) of 2011-12. Since the middle of are such gyrations in the exchange rate in the
rate in order to maintain the last year the rupee has fallen sharply, at interests of the real economy and, if not,
one stage reaching a level of Rs 54.3, what, if anything, can be done about it?
external value of the rupee
before ending the year at Rs 53.07 per
around a level which would keep dollar. This is the nominal exchange Volatility
the current account deficit within rate. Since over all these years, domestic The volatility of the exchange rate
+/-1% of GDP. If the cost of inflation has been much higher than in increases risks and therefore reduces invest
our major trading partners, the changes ments in the tradables sector. It is some
intervention and sterilisation
in the real exchange rate have been even times suggested that the existence of
becomes unaffordable, the solution more significant - real, i e, inflation hedging products allow the tradables
would be to impose controls on adjusted, appreciation has been much sector to cope with volatility. It should be
capital movement, rather than higher and real depreciation much lower recognised, however, that hedging products
than what the nominal numbers suggest. can be a protection only against future
giving up management of the
It could be argued that the more correct changes; they can do nothing about past
exchange rate. way of looking at the changes is in relation changes. It was the sharp appreciation of
to the real effective exchange rate (reer). the rupee in 2007-08 that tempted export
I am purposely not doing so because, to ers to go in for complex derivatives trades,
my mind, the bilateral trade weighted in the hope of making some gains, but this
reer index is not a good barometer for the ultimately led to large losses.
competitiveness of the tradables sector of The overall result of the volatility and
the domestic economy. For example, take significant real appreciation of the rupee
competition in global markets for our ex has been a sharp widening of India's mer
ports in garments. Bangladesh is a major chandise trade deficit and also the current
competitor. Assuming that bilateral trade account. While on the subject of India's
with Bangladesh is small, the taka will current account deficits, it needs to be not
have a negligible weight in our reer bas ed that balance of payments accounting
ket, not reflecting the competitiveness of convention classifies remittances as part of
Bangladesh in third country markets. Rec the current income. For economic analysis,
ognising this weakness of bilateral trade however, they need to be looked at more as
weighted indices, quite some time back capital transfers (albeit of an irreversible
the International Monetary Fund (imf) nature) for surely they do not comprise earn
had come up with a multilateral exchange ings in the global market of the domestic
rate model (merm), but it never became economy. While the classification of remit
AVRajwade (avrajwade@gmail.com) has been popular probably because of its complexity. tances may not be very important for many
a long-standing commentator on the external
To my mind, a reasonable proxy for a countries, it is extremely important in our
sector and financial services.
MERM model is weights by the currency of case because of the size of the remittances
10
January 14, 2012 vol xlvii no 2 EEE3 Economic & Political weekly
COMMENTARY
Chart 1: Nominal Rupee-Dollar Exchange Rate (2007-11) that trying to defend the currency is not
55
worth the risk it would pose to our reserves
(The Economic Times, 22 December 2011).
The implicit assumption behind the
savings-investment imbalance determin
ing the current account is that the former
are a "given", independent of the exchange
rate. Such thinking is not well-founded.
For one thing, the external value of the
Indian rupee directly affects the trade and
current accounts through the competitive
ness of the tradables sector. But it also in
35
0 •—
directly affects domestic output and sav
I I § S s s s s s s s ings. "Net exports" are a part of the stand
•CO»**
linn £• ? *
£ I
1^1?äI SI
is ü
3 5
P E
! f I ard calculation of economic output of a
Is II r
■S
1- country. To the extent the number is nega
tive, the aggregate output is correspond
in both absolute terms andneeds ofa the
even as economy, as
percent compared
ingly to(1)its
lower. This means: a reduction of
age of the gross domestic product which they see government
savings,(gdp). revenues through
as a positive sign both direct
But, even by conventional calculations,
for future and indirect is
growth. The corollary taxes and therefore
that we higher
it is evident that both the
need merchandise
not worry about the government
deficits dissavings;
on the (2) lower house
trade deficit and the current account defi
current account. hold savings as the employment in the
cit have increased significantly
In a recentover
article the tradables
in this journal (u June sector falls, and also through
last five years. higher consumption of cheap imports; and
2011), the deputy chairman of the Planning
Inasmuch as net exports are a part
Commission, of Singh Ahluwalia,
Montek (3) lower corporate savings as margins in
GDP, the data suggest that the
argued gdp that
in effect would the
we need a deficit ontradables
the sector are squeezed.
have been higher byTable
6%1: India's Balance of Payments($bn) To quote from a recent article, "Orderly
($100 bn) had the domestic
Year Trade Current Account CA Deficit Net Reserves Net Investment
adjustment requires lower domestic de
Deficit (CA) Deficit of Remittances Position
economy's external earnings

2004-05 33.7 2.5 23.3 141.4 -41.8
mand in overspending countries with large
and investments been in current account deficits and lower trade
2005-06 51.9 9.9 34.6 151.6 -47.9
rough balance. This apart,
2006-07 61.8 9.6 39.6 199.2 -61.4
surpluses in over-saving countries via nomi
the sharp rise in net external
2007-08 91.5 15.7 57.7 309.7 -51.2 nal and real currency appreciation. To
liabilities makes the econo 2008-09 118.7 28.7 73.5 252.0 -66.6 maintain growth, overspending countries
my far more vulnerable to
2009-10 117.3 38.4 90.5 279.1 -158.4 need nominal and real depreciation to im
balance of payment prob
2010-11 130.5 44.3 97.7 304.8 -218.9 prove trade balances, while surplus coun
lems. Over 2012, these could
H1 11-12 85.6 32.7 55.6 311.5 -224.9 tries need to boost domestic demand, espe
No negative sign has been used for deficit figures.
come in the form of a global cially consumption" (Nouriel Roubini, Mint,
recession and fall in external earnings; a current account of the order of 3% per
24 December). Clearly, Roubini sees a clear
connection
sharp hike in global oil price as a result of, annum for the next five years to finance the between the real exchange rate
say, an Israeli attack on Iran's nuclear needed investment in infrastructure and pro
the trade/current account balance.
facilities for which the ground seems to vided "it can be funded by long-term In short, the exchange rate is perhaps
capi
be getting prepared by western powers; tal flows, especially foreign direct the single-most important influence on
invest
trade protectionism; flight to safety of ment (fdi). But this does involve the the current
risk of account deficit whether one
looks at it as the gap between external
capital; non-availability of refinancing for temporary disruption because of volatility
our external debt; etc. As at the end of hi, of capital flows. Fortunately, the size earnings
of our and expenditure - or between
2011-12, the aggregate external debt was reserves provides fairly high assurance
savings
thatand investment. Given this, one is
105% of the reserves, of which short-term we can manage a temporary disruption." somewhat disappointed at one curious
liabilities were 23%. feature
The fact is that in the current fiscal year theof the exporter organisations/lob
deficit would be around 3.5% of gdp
bies:and
they spend so much effort in getting
Current Account and
net fdi is likely to be barely 40% ofa that,
reduction in, for example, packing credit
the Savings-Investment Imbalance
assuming the hi numbers are maintained
interest rates, procedural simplifications,
In macroeconomic accounting, the current
in H2. Again, the size of our reserves
duty
may
drawback rates, etc; but too little on
notgap
account gap and savings-investment be sufficient in the event of a balance of
the exchange rate. Nor do Chamber of
are equal. Our policymakers seem to payment
believe shock of the type listed earlier.
Commerce
The and Industry or Federation of
that the rise in the current account deputy
deficit chairman of the Planning Commis
Indian Chamber of Commerce and Industry
is the result of the higher investment
sion has also been recendy quoted as do
saying
any better on the issue. Equally curious
11
Economic & Political weekly 13353 January 14. 2012 vol xlvii no 2
COMMENTARY
is the silence of the latest Financial Stabi Table 2: RBI Sales/Purchases in the Forex Market ($ mn) international conference (15 November
FY Purchase Sales Net
lity Report of the rbi about the exchange 2011) argued that "the goal of all deve
1999-2000 24,077 20,828 3,249
rate and its impact. lopment effort is the growth of the real
2000-01 28,203 25,847 2,356
economy, and that the financial sector is
2001-02 22,822 15,759 7,063
Market-determined or
2002-03 30,635 14,926 15,709
useful only to the extent it helps deliver
Managed Exchange Rate 2003-04 55,414 24,941 30,473 stronger and more secure long-term
Over the initial decade and a half of eco 2004-05 31,398 10,551 20,847 growth". The question is whether the kind
nomic reforms, Indian policymakers did
2005-06 15,239 7,096 8,143 of (lack of) policy we have been pursuing
not adopt extreme policies: the capital2006-07 26,824 0 26,824 for the last few years is in the interests of
account was gradually liberalised, but,2007-08 79,696 1,493 78,203 the real economy, of promoting growth
2008-09 26,563 61,485 -34,922
broadly speaking, the exchange rate was so and jobs. Negative net exports reduce
2009-10 4,010 6,645 -2,635
managed as to keep the rupee reasonably both output and income as compared
2010-11 2,450 760 1,690
stable in real effective terms. Despite the to what they could have been, and make
2011-12* 0 1,788 -1,788
weaknesses of the trade-weighted index as *Upto
a October. the economy more vulnerable. Whatever
measure of competitiveness, the policy
(1) In 2007-08, there was hardly any intervention in the first half of the reason, market-determined exchange
the year leading to a sharp rupee appreciation from Rs 43.20 per
worked reasonably well: the current account$ to Rs 39.65 per $.Significant purchases of dollars were made in rates do not seem to be in the interest of
the second half to stem further appreciation of the currency.
deficit, as conventionally calculated, was economies where the tradables sector
(2) The global financial crisis occurred in 2008-09 and,
consequently, this is not a "normal" year.
less then $10 bn up to 2006-07, even as consists primarily of non-differentiated
(3) There has been very little intervention in the market in
India built up reserves of the order of
subsequent years. goods; their wisdom even for the advanced
$200 bn as the central bank continued toTable 3:Manufacturingasa%ofGDP industrial countries is questionable.
1990 2009
absorb surplus capital inflows.
Country
The most ardent supporters of market
China 35 41
There seem to have been major changes determined exchange rates are, of course,
India 17 18
since then. the us and the uk. As Table 3 shows, the
Indonesia 20 27
While the public statements by rbi offi share of manufacturing in both these eco
United Kingdom 23 11
cials have not changed much ("that we do nomies has come down dramatically during
United States 18 13
not target any level; that we intervene
Vietnam 15 21
the last 20 years of market-determined
only to curb excess volatility", etc), pub exchange rate (ours is stagnant in sharp
policies: growth, jobs and reduced inequa
lished data tell a different story. The rbi contrast to other emerging economies).
was far more active in the exchange mar
lities. Can these be achieved by following It cannot be gainsaid that it is manufac
ket in earlier years as compared to itsAnglo-American policies giving primacy turing employment which pulls blue
operations in recent years (Table 2). to the financial economy over the real collar workers into the middle class - as
Overall, there is enough empirical evieconomy? Or do we really believe in their was the case also in the us and uk in the
dence to suggest that there has been a sigwisdom? D Subbarao, the governor of rbi, first three post-war decades. It is some
in his inaugural speech at the cafral-bis
nificant change in policy in recent years, times argued that India is a special case,
with a strong bias in favour of allowing the
CALL FOR PAPERS
external value of the rupee to be market
FEBRUARY 15™ -16™ 2012
determined, as distinct from trying to
INSTITUTE OF PUBLIC ENTERPRISE is organizing a AICTE sponsored seminar titled
keep the reer Index within a reasonably
Econometric Applications for Managers.
narrow band which seems to have been
Objective and Scope of the Seminar
the case in earlier years. The reiteration
Econometric applications are adopted by divergent areas of research. In the past two
of intervention only for curbing excessdecades Management science is exploring and adopting different econometric tools and
volatility seems less than transparent.techniques for effective decision-making. The prime motto of the seminar is to bring in
For example, by any measure of volatilitysuch adaptations onto one platform. The effort of the organizers is to bring afore the
data, modeling and analysis challenges that managers face or could solve while using
(intra-day price range, daily price changes,the econometric tools in sciences like management in addition to economics.
EWMA, GARCH or arch models, etc), theFull Paper submission: 31s1 January-2012
dollar: rupee exchange rate has been far Acceptance Intimation: 2nd February-2012
more volatile during the last six monthsSeminar Dates: 15,h-16,h February-2012.
than in most of the earlier years, when theConference Venue: Institute of Public Enterprise, Hyderabad-500 007
RBi was far more active. Who can contribute?
One wonders whether the change inAcademicians, Scholars of Management Science/Economics/Statistics
policy is the result of American persuasionTopics of Relevance
and/or our desire to be on the side of Econometric methodological contributions relevant for broad areas of management are
the Americans in the G-20 debates about encouraged.
For Further information Contact:
China's exchange rate policy, without giving
Dr. Sai Sailaja.B saisailaja@ipeindia.org #9440177803
adequate weight to what should be the
Mr. Srinivas Kolluru ksrinivas@ipeindia.org #9177852934
prime objectives of our macroeconomic
12
January 14, 2012 vol xlvii no 2 033 Economic & Political weekly
COMMENTARY
moving much faster to a service to

sector
imagine that this gap between demand preferred option was to control cross-border
and supply
dominated economy. I do not subscribe to would be compensated by movements of capital, but to follow an
the view that we can all make a good liv inflows in the foreseeable future. independent monetary policy and a man
capital
To ever
ing by serving vada pavs or flipping elaborate, aged exchange rate. In the last 30 years
more complex derivatives at each other!
• Portfolio flows are unlikely to resume the accepted wisdom seems to be to have a
soon
For income disparities to narrow we as most other Asian stock markets are
need liberal capital account and an independ
cheaper than India's and their currencies ent monetary policy, foregoing a managed
fast growth in the manufacturing sector,
comparable to what has happened in
less volatile, thus reducing the risks for a exchange rate in favour of a market-deter
rateinvestor. Most foreign equity port mined one. The empirical evidence cited
dollar
China, for example, and the exchange
policy should not overlook the needs managers seem likely to remain under above seems to suggest that we have
folio of
Some on India. Again, the domestic econ accepted the wisdom of this Anglo-Saxon
the tradables sector of the economy.weight
reports (The Economic Times, 26 Decem
omy is slowing and this is not a very attrac propagated myth. The theoretical under
ber 2011) suggest that barely 12% of
tivenew
advertisement for portfolio investors. pinning of the preference for a market
■=> FDi is also unlikely to pick up signifi determined exchange rate is the idea of
jobs are now created in manufacturing.
cantly given the tortuous, bureaucratic efficient markets and rational expectations
Prospects for the Exchange Rate
and time-consuming procedures; the of the participants.
problems
Before the recent measures taken by the in acquisition of land and get On first principles, what I do not under
ting environmental clearances; the gener stand is the dichotomy between policies
RBi to curb speculative activity in the market,
the deputy governor of the rbi, al weakness of governance; the corruption for the domestic and external values of
Subir
Gokarn, has made a number of public cases which have received wide publicity money: while it is virtuous for the central
statements on the issue. The crux of the in the global media; the tendency of ourbank to keep the domestic value of the
argument has been that the volatility hasauthorities to reinterpret laws and con currency stable - indeed this is the primary
not been of a scale which requires intertracts post facto; etc. function of central banking - the external
vention. More worryingly, he has been <=> The prospects for debt inflows throughvalue is being left to the market to decide.
arguing that the reserves may not be ade
external commercial borrowings and/or Arguably, the rationale is the original belief
buyer/supplier credits are also not very that a stable domestic value and money
quate to really put an effective floor under
bright given the problems in European supply would automatically lead to stable
the exchange rate. If $300 bn of reserves
are not considered adequate, one does not
banking and the anxiety of major global exchange rates as argued by Rudiger Dorn
know what level he would feel comfortable banks to conform to tighter capital ratios. busch in 1976. It is by now quite clear that
with and, if it is higher, why the rbi did not In particular, foreign currency convertible this concept proved to be "an empirical bust"
take the opportunity to increase reserves bonds are unlikely to be converted and as Kenneth Rogoff wrote 25 years later.
by purchasing excess supply of dollars in have effectively become debts. The fact of the matter is that financial
the market in the first half of 2007-08 and The prospects of greater inflows in the markets often carry prices to levels well
in the period after April 2009 which would NRE rupee accounts are probably a little Table 4: Incidence of Financial Crises
Period
better as, after rbi deregulation, the
have also stemmed the appreciation of the
Number of Crises
1875-1939 109
rupee and the economy's ever greater banks are offering far more attractive
1945-1971 17
dependence on foreign capital inflows. interest rates on such rupee accounts than
1973-2007 399
While the exchange rate has been a little the non-residents can get in any other cur
Source: Laeven and Valencia (2008); Reinhart and Rogoff (2008).
more stable after the measures announced rency. Again, the recent upgradation of
in mid-December, the question is whether public debt by Moody's may help to some below or above those dictated by funda
they are adequate to stop/reverse the fall extent, although the rationale and timingmentals, often through what are known
of the rupee, without the rbi intervening are difficult to understand. as "feedback loops". As John Kay argued
in the market. (There are some reports Should we go back to a managed ex in a recent article in the Financial Times
suggesting that the rbi is selling dollars to change rate? (2 November 2011) "A semantic confusion
the oil companies, without formally inter leads us to use the word market to de
Market-determined vs
vening in the market.) This seems unlikely. scribe both the process which puts food
The current account deficit in the first half Managed Exchange Rates on our table and the activity of gambling
of fiscal 2011-12 was $32.7 bn and the full Looking at the issue in a historical context
in credit default swaps". To give an example,
year number may well come to something and the well-accepted impossible trinity,
if the price of onions goes up, the house
like $60 bn or 3.5% of gdp: this number is in the era of the gold standard most wife
coun would buy less of them or look for
substitutes.
higher than the deficit in the crisis year of tries practised a liberal capital account and On the other hand, a rise in
1990-91. (This could grow in 2012-13 as managed the exchange rate, foregoing
thean
price of a financial asset - equity,
our dependence on imported coal increas independent monetary policy. Thecurrency,
era etc - too often attracts more
es and because of a slowdown in export ended in the Great Depression ofdemand
the for it, and that too for quite some
time. (To be sure, the music does stop
growth, quite apart from the possibility of 1930s. Over the initial three decades after
an oil price shock.) And, it seems difficult the end of the second world war,playing
the at some stage.)
Economic & Political weekly mrnyj january 14, 2012 VOL XLVII NO 2 13
COMMENTARY
In short,
It needs to be appreciated that while de we need to go back to man We are determined that, in future, the ex
aging the exchange rate in order to main ternal value of sterling shall conform to its
regulation of segments in the real econo
tain the external value around a level internal value as set by our own domestic
my does help the consumer by increasing
policies, and not the other way round. Sec
competition, this is not the case inwhich would keep the current account
respect
ondly, we intend to retain control or our do
of financial services. In fact, it was
deficit
the exwithin +/- 1% of gdp, if the objec
mestic rate of interest, so that we can keep
cessive deregulation of financial tive is growth, jobs and financial stabil
services it as low as suits our own purposes, without
ity. This
in the us and the faith of the banking interference from the ebb and flow of inter
reg would require the construction
of of
ulators/supervisors in the efficiency a fresh
the reer Index better reflecting
national capital movements or flights of hot
markets, in the ability of firms tothe money. Thirdly, whilst we intend to prevent
competitiveness of the tradables
manage
inflation at home, we will not accept defla
sector; intervention in the market; and
risks, etc, that led to the 2008 banking/
tion at the dictate of influences from outside.
financial crisis in the us and uk. In terms sterilisation of the effect of intervention
In other words, we abjure the instruments of
of the macro picture, the number of criseson money supply. If the cost of such in Bank rate and credit contraction operating
in the three eras outlined above, tell their tervention and sterilisation becomes un through the increase of unemployment as a
own tale (Table 4, p 13). affordable, the correct solution would be means of forcing our domestic economy into
At the micro level, the root cause of the to impose controls on capital movement, line with external factors.
crises in Mexico (1994-95), east Asia (1997rather than giving up management of the
98), Argentina (2000-01) and several otherexchange rate. REFERENCES
countries was the liberal capital account Let me conclude with a quote from John Laeven, Luc and Fabian Valencia (2008): "Sys
Banking Crises: A New Database", IMF Wor
adopted by them at the instance of the imf. Maynard Keynes taken from his speech in Paper.
(Jagdish Bhagwati once described the imf the House of Lords defending the 1944 Reinhart, Carmen M and Kenneth S Rogoff (2008):
"Banking Crises: An Equal Opportunity Menace",
stance on this subject as a conspiracy by Wall Bretton Woods accords, which is very National Bureau of Economic Research Working
Street with the support of the us Treasury) appropriate to the subject: Paper 14587.
was concluded in December 1993 at the

WTO: Another Attempt official level, was the last major agree
at Fighting Irrelevance
ment of the trade body. It coincided with
the high tide of globalisation when the
United States (us) and the European
Union (eu) exerted a hegemonic influ
D RAVI KANTH ence on global economic processes. The
ur brought new areas - intellectual prop
The eighth ministerial of the erty rights and services - under the
demonstrations and television global rules on trade. They had not been
World Trade Organisation
was on the surface an
Gone are therunning
crews days when protest
behind formally
part of the General Agreement on Tariffs
attired trade ministers and their officials and Trade (gatt), the predecessor to
inconsequential meeting of an at the World Trade Organisation (wto) the wto.
organisation fighting a descent ministerial meetings hogged the lime This vastly changed the landscape of
into irrelevance. But there light. The Seattle Ministerial Conference the global trading regime by taking on
in 1999 became the focal point for the board the concerns of the us, the eu, and
were attempts by the powerful
public's anger and unhappiness with other industrialised countries. Develop
economies to craft a plurilateral deepening globalisation. The subsequent ing countries were compelled to under
approach that would keep ministerial meetings in Cancun in 2003, take new commitments which they had
out the majority of wto and Hong Kong in 2005 reinforced the little influence in framing. In short, the
growing disenchantment with the wto. outcome from the ur emboldened the
member countries.
However, no longer do these meetings at trade majors to go for the kill based
tract much attention. on their favourite "bicycle-theory".
Something has gone wrong (natural This "theory" ordains that like riding a
ly?) with an organisation whose sole bicycle, countries must keep peddling
agenda is to advance trade liberalisation. the levers of trade liberalisation by tear
Perhaps, it is the growing "irrelevance" of ing down their tariff and market access
the wto as a negotiating forum which is barriers without a pause. Otherwise, they
unable to deliver credible and equitable would risk reversing the supposed gains,
D Ravi Kanth (dravi_kanth@hotmail.com) is multilateral trade agreements that are the ideological heirs of the East India
a journalist and commentator on trade and
palatable for all members. The Uruguay Company paradigm warned time and
international economy issues based in Geneva.
Round (ur) of trade negotiations, which time again.
14 January 14, 2012 vol xlvii no 2 0EE3 Economic & Political weekly
COMMENTARY
Against this backdrop, the wto's eighth terribles". The five countries protested atnot see the light of the day when the actual
ministerial meeting, held in Geneva, dur the manner in which the "elements for negotiations are held to hammer out the
final commitments.
ing 15-17 December, was a damp squib and political guidance" was prepared by select
an unusual spectacle. An "aimless" meet countries in a "green room" meeting. TheIronically, on the margins of a multi
ing held primarily for bookkeeping. It was elements document was issued by the
lateral ministerial meeting, 42 countries,
primarily industrialised nations, agreed
an elaborate exercise in "social gathering" chair for the ministerial meeting, Niger
required for the biennial "charade", said ia's trade minister, Olusegun Aganga, at
on a "closed" plurilateral agreement on re
some participants. There were no high the concluding ceremony. It includedvised
a rules and expanded market access
coverage in government procurement.
voltage negotiations going down to the wishy-washy understanding reached among
This is a telling commentary on the wto
wire as had been the case in the previous select countries on the "Importance of the
ministerial meetings. It was one of the Multilateral Trading System and theand its future direction.
most sparsely attended ministerial gath wto", "Trade and Development", and However, it was a "successful outcome"
erings since the wto came into existence "Doha Development Agenda". in this hour of global economic crisis, said
in 1995. In a statement circulated on the wto the chair. That is what Olusegun Aganga
A fortnight before the ministers de website during the ministerial meeting, told
the reporters. He said the "seven agree
scended on Geneva, wto members had five countries said "the wto has become anments" adopted during the three-day
already decided the outcome. That was conference, though "modest", provide a
organisation that is not led by its Members,
primarily to avoid any mutual recrimina in which decision-making based on factsway-forward
is to re-energise the trade body.
tions which are bound to crop up given the not governed by consensus, and negotia
A "new beginning", said Lamy, suggesting
manner in which the Doha Development that it "was a meeting of minds to fight
tion meetings are not open to participation
Agenda negotiations have been hijacked protectionism, on aid for trade, and a
by all Members". They pointed out that
and all its agreed mandates modified since trade policy monitoring mechanism". He
"the report by the Chairman of the General
the round was launched in 2001. Intransi Council, 'Elements for Political Guidance'
said ministers recognised the "impasse"
gent positions adopted by some members, in the Doha trade negotiations and a need
contains elements that intentionally under
the us in particular, have put paid to the to explore new approaches "compatible
mine the principles of the Doha Ministerial
possibility of any middle ground solutions with the principles of inclusiveness, trans
Declaration; it deliberately fails to identify
to end the decade-old negotiations. Cou parency, bottom-up work". "Now there is
the causes of the impasse in the Round and
pled with this, the wto's leadership also
fails to point out the lack of political will ato
need to do exactly that: start exploring
overcome them".
played its part in worsening the systemic those approaches.... Go back to business",
he exhorted, underscoring the need to
paralysis that seems certain to cause theFurther, they vehemently opposed the
ultimate demise of the Round. subtle reference to an "early harvest"move
in forward in small steps and "not
some select areas in the elements for
The us wants China, India, Brazil and short-term big steps".
South Africa, who are often referred to political
as guidance, "in this context, Min
the emerging countries, to undertake isters commit to advance negotiations, Two-part Statement
commitments in market access and rules where progress can be achieved, includ At the end of the three-day meeting, the
that are far in excess of what the Doha ing focusing on the elements of the chair
Doha issued a two-part statement - "ele
mandates stipulate. Indeed the us stanceDeclaration that allow Members to reach ments for political guidance" and his
also finds resonance with the positions provisional or definitive agreementsassessment of the "summary of key issues
based on consensus earlier than full con
adopted by the wto's embattled director raised in the discussion". The chair's
general Pascal Lamy. In his inauguralclusion of the single undertaking", on the
summary is based on what the trade min
statement at the ministerial meeting,ground that it altered the balance in theisters said in their interventions during
Doha mandate.
Lamy said "you [the ministers] will need the meeting. "Neither the elements nor
to address the essential question behind Except for these barely noticed hiccups,my summary are legally binding", the
the current impasse: different views as to
the eighth ministerial meeting was a non chair declared.
what constitutes a fair balance of rightsevent. The only highlight, if any, was the The summary covered nine topics.
admission of Russia into the wto after 15
and obligations within the trading system, They include "Keeping markets open and
among members with different levels
years of negotiations. In addition, two
resisting protectionism"; "Current global
of development." more countries - Samoa, a small Pacific
challenges"; "Dispute settlement"; "Ac
island nation, and Montenegro, the off
Amid these extreme positions that are cessions"; "Regional Trade Agreements
responsible for the "impasse" in the nego (rtas)"; "The role of committee on trade
spring of Balkanisation - were also admit
tiations, the honourable option was toted to the organisation. and development (ctd)"; "Food secu
rity"; "Aid for Trade and the Enhanced
have a "friendly" ministerial meeting with Several other decisions were adopted at
the meeting aiming to enable the least
no finger-pointing. Even that option was Integrated Framework"; and the "Doha
developed countries (ldc) to secure Round
not acceptable to five countries - Bolivia, a negotiations".
Cuba, Ecuador, Nicaragua and Venezuela
favourable deal in the global trading sys On three issues - keeping markets
- who are often portrayed as the "enfant
tem. But some of those decisions might
open and resisting protectionism, current
Economic & Political weekly Qjd January 14, 2012 vol xlvii no 2 15
COMMENTARY
the banner
global challenges, and the way forward in of the "Friends of Develop negotiations. He suggested that in the
the Doha Round - the ministerial meeting
ment" rejected the pledge because of the dying Doha Round of trade negotiations
revealed an unbridgeable divide among in it posed to their negotiating posi it was no longer feasible to accomplish
danger
dustrialised countries along with several
tions as well as to their flexibility to imple what was called the single undertaking.
ment
developing countries on the one side, andWTO-consistent measures "to achieve This would effectively mean that the time
an overwhelming majority of developing
legitimate objectives of growth, develophas come to bury the principle of single
and LDCs on the other. ment and stability". undertaking (that nothing is agreed until
One of the most divisive issues during There were other divisive issues - the
everything is finalised). This is not an
the meeting was an Australian pledge - eu's proposal to "address" concerns such
epiphenomenal suggestion as an orches
"committing to a standstill on all forms of as "climate change, energy, food, security,trated campaign that has been going on
protectionism" - supported by around 49 trade and exchange rates, competitionfor some time now. Indeed, it is the game
countries, including the us, the eu and and investment" and "food security" - replan of the industrialised countries in
all other industrialised countries as well
quiring a decision by wto members towhich they are willing to grab some
as some small countries - Chile, Colombia,
remove and not to impose food exportorgans of the dying Doha Round that are
restrictions or extraordinary taxes forbeneficial to them and force an agree
Costa Rica, Singapore, Hong Kong, South
Korea - who claim themselves to be food purchased by the World Food Proment under an "early harvest".
the "Friends of the System". Using the for humanitarian aid.
gramme Lamy also suggested the same idea at
Finally, on the impasse in the Dohathe end of the meeting. The director gen
"global economic uncertainty" as the basis,
it sought that members must "refrain
Round, the chair's summary failed to adeeral asked the members to take "small
from raising new barriers to trade in capture the degree of oppositionsteps" and not a "big step". Mombassa and
quately
goods and services, imposing new export
to plurilateral approaches. In its ministeCotonou, two ports in Africa, need not
restrictions, or implementing WTO-incon continue to remain inefficient. These two
rial declaration issued on the first day of
sistent measures in all areas including ports can be transformed to Singapore
the ministerial meeting, the Friends coali
those that stimulate exports." Ittion
also
said unambiguously that it was "will
like efficient ports, if only members com
called for rolling back "any protectionist
ing to look at different approaches thatpleted a provisional agreement on trade
measures" introduced since the financial are constructive to resolving the impasse".facilitation. That is what Lamy hinted at
crisis in 2008. "However, we do not support the adoptionthe end of the meeting.
The pledge is, however, silent on a of a plurilateral approach to concluding This is a clever stratagem that foretells
standstill commitment on farm subsidies, the Round or parts of it, because it goes
the events to unfold in the coming months.
which are currently low because of theagainst the principles of multilateralismMembers, particularly from the developing
high prices for many agriculture items, inand inclusiveness...Therefore, any freshworld, will be compelled to agree on a plu
cluding cotton. It did not mention the subapproach has to be a multilateral consenrilateral format like the Information and
sidy-related measures, particularly thesus based one, firmly anchored within theTechnology Agreement which was con
trillions of dollars that have been pouredDoha Mandate," it said. cluded among select countries at the first
into the banks as well as billions of dollars ministerial meeting in Singapore, in 1996.
into auto companies in the rich countries. End of Grand Bargain? They will be threatened that if they do not
Though the Australian initiative wasIndeed, the battle lines are clearly drawn
agree to the plurilateral approach they, the
based on a decision taken at the November
for 2012. The "grand bargain" is over, saidus and its partners, would sign their own
G-20 leaders meeting in Cannes, an over Craig Emerson, Australia's trade minister.agreements like the Anti-Counterfeiting
whelming majority of members led by It is time to pursue "small packages" in Trade Agreement (acta).
India, China, Brazil and South Africa stead of a grand bargain in the paralysed The first likely candidate under this con
opposed it on the ground that it is aimed Doha Development Agenda trade negotitroversial approach is going to be trade fa
to curtail their "policy space". Since the ations. The Australian minister has be cilitation in which the industrialised coun
industrialised countries are broke due to
come the unofficial spokesman for thetries
in want to overhaul the entire customs
administration that entails considerable
their budgetary and fiscal haemorrhage,dustrialised countries in the global trade
they expect the developing world to
provide unimpeded market access for DEPARTMENT OF A & A ECONOMICS
their products. UTKAL UNIVERSITY, VANIVIHAR
BHUBANESWAR - 751 004 INDIA
The director general raised the bogey of
a "second-wave of protectionism" saying NATIONAL SEMINAR ON "MINING: ECONOMIC, ENVIRONMENTAL AND SOCIAL
that it posed the biggest threat to world IMPLICATIONS", ORGANISED BY CENTRE OF ADVANCED STUDY
trade. South African Trade Minister Rob IN ECONOMICS, UTKAL UNIVERSITY, MARCH 23-24, 2012
Davies dismissed the Australian pledge on Full length papers are invited for the above seminar by 10th February 2012. Limited travel grants and
the standstill and the second wave as a free boarding will be provided by the organizers. For detailed information on themes, registration,
paper submissions, and important deadlines, kindly visit https://sltes.google.com/site/aaecouu/
deliberate attempt to squeeze national or write to Professor Padmaja Mishra, Organizing Secretary at aaecouu@gmail.com.
policy space. Over 100 countries under
i6
January 14, 2012 vol xlvii no 2 GEEa Economic & Political weekly
COMMENTARY
costs and resources. This is one of the four of the African Group, the acp (Africa, Though the luncheon meeting remained
"Singapore issues" that continued to linger Caribbean, and Pacific) countries and the inconclusive, it points to the shape of
after the Cancun ministerial meeting in ldcs attended, there was a strong push things in 2012.
2003. Though there are several unsettled for taking up trade facilitation as part of The wto faces a crisis of relevance due to
issues in the trade facilitation negotiations, the early harvest. many factors since the launching of the Doha
especially special and differential treat In response, the representatives of the Round over a decade ago. In their arrogance
ment assistance and customs cooperation, developing world insisted on an early to want to manage political and economic
the industrialised countries led by the us agreement on the ldc package involving processes, the industrialised countries, par
will make a strong push for a trade facilita duty-free and quota-free market access, ticularly the us and the eu, launched a round
tion agreement. The us wants a trade cotton, and ldc accession procedures. But without credible material basis. Given their
facilitation agreement without making any this was not acceptable to some trade min worsening domestic economic and political
payment, said trade negotiators. isters of the industrialised countries. Appar conditions, they have shifted the goalposts
At a luncheon meeting convened by the ently, one major country suggested that it time and time again and sought extreme re
EU during the ministerial meeting, in would be difficult to discuss the two issues sults. The paralysis in the trade body has
which the us, China, India, Brazil, Japan with 153 countries, pointing that it has to be been further compounded over the last Ave
and Australia along with the coordinators a small group involved in negotiations. years by an ineffective management.
The Politics of Sovereignty

Pakistanis pursuing a progressive politics
view this issue?
in Pakistan This same question is being asked,

implicitly and explicitly, by Pakistani
liberals with respect to the political oppo
sition's reaction to drones and the so
MAJED AKHTER
called "memo-gate" scandal. Huma Yusuf,
a Pakistani journalist, has recently writ
The wretched reality of Pakistani ten in Dawn news (21 November) on the
sovereignty"
sovereignty - the playing out of isits increasingly deplo topic, and her article is worth dwelling on
yed by opposition political party The "violated integrity of Pakistani because it demonstrates the slipperiness
formal politics in various capitals
figures in Pakistan in a way that accuses of the concepts and politics at issue, and is
of the world - contrasts with the
the ruling party at the centre of selling possibly representative of Pakistani liber
heroic rhetoric from domestic
Pakistan's future to foreign interests. Poli al attitudes. She warns that in the popular
tician Imran Khan has publicly connected
political actors on the integrity imagination and in rhetoric from figures
drone attacks in Waziristan to gross viola in the political opposition, sovereignty is
of its sovereignty. Progressives
tions of national sovereignty and former simply another word for territorial
are best advised to understand
Prime Minister Nawaz Sharif has accused integrity, and provides a veil for what is
the substantive nature of really a crass national chauvinism. Un
President Asif Ali Zardari and recently the
sovereignty in an unequal and beknown to the public, however, sover

ambassador to the us, Hussain Haqqani of
offering military obedience in exchangeeignty stems actually from two main
postcolonial world while focusing
sources. The first is legitimacy, meaning
for powerful foreign diplomatic support,
their energies on addressing the state is "working in the best interests
and thereby short-circuiting procedures of
the iniquitous nature and class democratic accountability within Pakiof the public". The second is exclusivity,
character of the Pakistani stan. But the forging of Pakistan's formalmeaning that no state can interfere with
politics in distant places is hardly new -another state's internal affairs. She argues
nation state.
negotiations involving Pakistani politithat the Pakistani state has miserably
cians and generals are routinely conductedfailed to demonstrate the former, and
in London, New York, Washington dc, andinternational laws and treaties that im
Riyadh and have been duly reported in
pinge on the domestic economy violate
the media for decades. the latter. Therefore the public's anger,
The fact is that power in the global and the rise of sovereignty in oppositional
interstate system is distributed unevenly, political discourse, is misguided because
and Pakistan is just one of many states of the focus on violations of territory inte
that do not control their own politics. grity. Rather, the political focus should be
Majed Akhter (majed.akhter@gmail.com) is How then do we understand the growing on the two real sources of sovereignty.
at the School of Geography and Development,
centrality of sovereignty in oppositional In its dismissal of popular feeling, re
University of Arizona, the United States.
political rhetoric? And how should vulsion of the Pakistani state and elected
Economic & Political weekly EH1E3 January 14, 2012 vol xlvii no 2 17
COMMENTARY
this inter
politicians and in its gesture towards equality is formal, not substantive, distribution of power through attention to
national "norms" as an ethical anchor, and some states are "more sovereign" how states mediate the needs of their
Yusuf's article captures some of the less ap than others. Within a state there are (the internal economies with the geostrategic
pealing aspects of Pakistani liberal politics. oretically, at least) mechanisms of enforc interests of other states. Instead of conflat
ing the rule of law equally. International ing states with the economies and socie
Contrast with the Liberal Position
law, however, is characterised precisely ties they speak for in interstate relations,
A reframing of the sovereignty the lack of a legitimate, higher autho the state should rather be seen as enme
by issue,
rity: in significant disputes, force decides. shed simultaneously in dynamic domestic
shorn of liberal assumptions, is necessary.
In the colonial era, European state power and interstate formations. The question
I want to contrast my view of Pakistani
was exerted
sovereignty by way of an analytical cri transparently; through then becomes: how do the classes that
tique of Huma Yusuf's argument militaries,

(or the occupations, conquests, and control the Pakistani state and represent it
characterisation of it provided tribute.
above). Uneven relations between states in an official capacity balance the needs of
its domestic and interstate constituents?
still exist, but are increasingly exercised
This is followed by a tentative re-theorisa
tion of Pakistani sovereignty as it through
relateseconomic treaties, trade restric
to interstate relations, and a sketch of the The Internal and the External
tions, foreign aid conditionalities, and the
uneven distribution of financial risk and
political consequences of that re-theorisa Achieving this balance is a slippery task
tion. My general issue with Yusuf's por
reward, alongside armed interventions. for the Pakistani state elite to pull off,
The
trayal is that it presents sovereignty as two because the interests of its domestic and
an conditions critiqued above
demonstrate
already defined position with known pre two central weaknesses of external constituents diverge wildly - for
suppositions of which only some arethought - the ahistorical represen
liberal eign powers want greater control in the
aware. I would argue, however, thattationthe region, and the mass of Pakistanis are
of deeply historical entities, and the
concept and practice of sovereignty is a
abstraction of political economy from fiercely anti-imperialist, at least when it
moving target, and is given meaningquestions of rights and law. We should comes to western imperialism. In this
through historical and geographicalreconsider
con interstate sovereignty as a the paradox of the heroic rhetoric of
light
texts. Sovereignty is not the same historically
thing to and geographically situated sovereignty accompanying the wretched
Pakistan today that it is to the process
us, and- Pakistani sovereignty, at the reality of Pakistani sovereignty makes
these are both different from, say,very
the least,
sov should be studied in the con more sense; we can view it as a manifes
ereignty of medieval European monarchs. tation of the contradictions between in
text of the post-colonial and contradictory
condition
The two posited sources of "real" soverof the Pakistani state. Inter ternational law, post-colonial statehood,
eignty are problematic as well. national
Concern law should be seen as not as the and popular democratic ideals. The polit
ing the public legitimacy condition,
stage who
on which interstate relations play
ical implications of my reconsidered view
decides when a state is legitimately
out, but one of several tools that states
of sovereignty are twofold. First, we can
deploy
working in the public's interest? Will it in
betheir engagements. We gain reinterpret
a the defence of a limited territo
clearerBut
politicians who speak for "the public"? picture of the global geographic
rial sovereignty in oppositional rhetoric,
what if the politicians and the public, as
the article implies, are not aware of what
Call for Participants
sovereignty really is? This argument is Training Programme on
dangerous, because it casts some counBusiness Analytics for Decision-Making (Non-residential)
tries as inviting invasion, and as "asking On 14th & 15th February 2012
At
for it". The invasions of east European,
west Asian, and north African countries Institute of Public Enterprise (IPE)
Hyderabad
over the past decade are the result of this
logic. For the second condition, thatScope of the Programme
of ex
The two days training programme on "Business Analytics for Decision-Making"
clusivity, I would argue that international
is specially designed to enable the participants to develop competence in this
law is a necessary, but not sufficient, fac
emerging field by understanding the various issues relating to the business
tor in interstate power relations. The role and in developing the necessary skills to provide value added services
analytics
of modern sovereignty operates on to a their
founorganizations.
dational fiction of international law: the
Who May Participate
equal sovereignty of all mutually recog Middle and Junior Level Executives in public and private enterprises, Analysts
nised states. This was formalised in unfrom various consulting enterprises (BPOs/KPOs), Academicians and Researchers,
General Assembly Resolution 1514, whichEmployees of Banking & Financial, Insurance, Retailing, Supply Chain Management
and Logistics companies and Participants from all such organizations involved
"granted" independence to colonial coun
in analytics & statistics.
tries in i960 as a historic wave of anti
For further information contact:
imperialist and nationalist revolt swept
Asia and Africa. But the uneven distribu Mr. Srinivas Kolluru 91778 52934 ksrinivas@ipeindia.org
tion of global economic power means that
Dr. Sai Sailaja 94401 77803 saisailaja@ipeindia.org
i8 January 14, 2012 vol XLVii no 2 0353 Economic & Political weekly
COMMENTARY
dismissed by some as crudely conceived. that international law is founded on the antagonism. These relations in their re
This rhetoric, rather, contains an active peated interaction produce the elites that
formal, not substantive, equality of states,
kernel of the anti-authoritarian and anti monopolise state power. Pakistan's sub
tells us that it is a necessary but not suffi
stantive equality in the interstate arena
imperialist energies produced by the concient arena to pursue progressive change
tradiction outlined above. The challenge- formal equality is important, but does requires a change in the class character of
for progressives in Pakistan is to shapenot get at the root issue. Big problems are
state power. It is to these spheres of struc
their rhetoric and methods within this closer to home: the undemocratic and hi tured inequality that indignation and
erarchical power structures that shape
popular energy, and to transparently attempt imagination should be directed, and per
to give it constructive (not chauvinistic) haps where a struggle to redefine sover
the daily interactions between Pakistanis,
form. It should be dismissed as uninfor
and that are expressed as class, regional, eignty as pursuit for equality, formal and
med or immature. Second, recognising substantive, can be joined.
religious, gender, linguistic, or generational
Adivasi Predicament even the informal economy, the refuge of

the poor, is not exactly swarming with adi
in Chhattisgarh
vasis. Random enquiries with street work
ers, drivers, and rickshaw drivers threw up
more self-identified dalits than adivasis.
While this is at best anecdotal evidence, last

SUPRIYA SHARMA month brought some statistical validation,
in a rare gathering of adivasis in Raipur.
Not only are the Forest Rights Act Between 15 and 17 October, Raipur hosted
traffic in Raipur. Cast in bell metal, the Adivasi Mahasabha, a national forum
and the Panchayats Extension to
A phalanx
installedof
in a buffalo
patch of green heads
not overlooks for adivasis to discuss common concerns.
Scheduled Areas Act routinely
far from the chief minister's residence, on One of the many sessions focused on consti
violated in Chhattisgarh, anthe
avenue named Gaurav Path, this pano tutional safeguards for adivasis. One would
adivasis are also short-changed
rama of Bastar art is supposed to symbol have expected the discussion to be limited
on legislative ise official pride

representation and in Chhattisgarh's adivasi to lesser known legislations like the Forest
identity, except that it is sponsored by a Rights Act, or the Panchayats Extension to
reservations in government jobs.
mining and power company. The company's Scheduled Areas (pesa) Act, both of which
As the state cedes land tosignboards
capitaljostle for space with bell metal are routinely violated in Chhattisgarh. In
while reducing the adivasis
figurines of adivasi men and women, not stead, one of the speakers, BPS Netam, a
unlike the real contestation between capi
to an ornamental presence, retired adivasi civil servant, pointed out the
tal and people unfolding in many pockets state government was also violating the old
there is increasing assertion of
of Chhattisgarh. To stretch the analogy: is est safeguard mandated by the Constitution
adivasi identity, born outthisof class
a glimpse of a state eager to cede land - reservations in government jobs.
predicaments and experiences
to capital while of
reducing adivasis to an India's Constitution gives dalits and adi
displacement as much as ornamental

notions presence? vasis a share in government jobs pro
portionate to their population. Madhya
of indigeneity. On the Margins of Power Pradesh had a 20% dalit or scheduled tribe
Eleven years ago, at the turn of the millen (st) and a 16% scheduled caste (sc) popu
nium, when sprawling Madhya Pradesh lation. This ratio changed to 32% st and
was spliced, the new state created was 12% sc in newly created Chhattisgarh, ne
proclaimed an adivasi homeland, not cessitating a change in the job pie, with an
entirely without reason. With a one-third additional 12% reservation for adivasis. But
adivasi population, no other state has a 11 years later, this is yet to happen. Netam
larger proportion of adivasi people than pointed out that for an estimated four lakh
Chhattisgarh, barring India's north-east. jobs generated in this period, adivasis had
And yet, in the state's locus of power, its lost these 12% or nearly half a lakh jobs.
capital city of Raipur, an adivasi imprint is Contacted for a response, the Chhattis
hard to find.1 Shops and business esta garh government's spokesperson, the prin
blishments are owned by Sindhis, Marwaris cipal secretary, Baijendra Kumar, denied
and Punjabis.
Supriya Sharma (ssupriya@gmail.com) Banks and colleges have a
reports the number was that large, claiming that in
from Chhattisgarh for the Times ofsprinkling
India and
of middle-class professionals adivasi-majority districts, recruitment for
joins the Reuters Institute, Oxford from
University,
across India. Government offices have lower-grade jobs was already proportionate
as a research fellow in 2012.
only the odd adivasi employee. Curiously, to their population, sometimes as high as
Economic & Political weekly B353 January

VOL XLVII 14,
NO 2 2012 19
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January 14, 2012 vol XLVii no 2 Economic & Political WEEKLY
COMMENTARY
70%. But he admitted the government to present yet another petition seekingform of assertiveness in a city where adi
eve had
not implemented 32% reservation in the implementation of 32% reservation, vasis, if any, are lost in the multitudes?
higher
grades of government employment, they
which
claim that he showed greater interest
Cultural Conundrums
he said would be done soon. Indeed,ina the
govlegal case against his rival, former
Congress Chief Minister Ajit Jogi, whoThe iconic image of an arrow strung over
ernment press release, carried by the Raipur
edition of Dainik Bhaskar of 8 December stands accused of faking an adivasi identitya bow hung over the speakers panel at the
2011, among other Hindi newspapers, and
an contesting elections from a reserved seatAdivasi Mahasabha in Raipur. It provoked
nounced the state government would present
based on a forged community certificate. the guest of honour, P A Sangma, Member
a proposal for 32% reservation for adivasis of Parliament (mp) from Meghalaya, to
Clientelistic Networks
in the winter session of the assembly launch into an impassioned speech. "Why
Whether it is the Congress or the bow and arrow? This is the era of missiles.
Bharati
Under-representation We
ya Janata Party (bjp), there is not think we can fight with bow and
much
difference in the way the parties
Authoritative data on adivasi representa have he said. Evidently, his was not an
arrow?"
built clientelistic networks among
tion in government jobs was not available. argument
adiva for adivasi militarisation, but
But this is neither a debate over numbers sis. What has made it easier is that adiva
one for embracing modern living, as
nor on the impact of reservations on sis are split into diverse groups and re became clear from the rest of his speech, a
deprived communities. Instead, what is gions. In the absence of a self-conscious narration of vignettes from his trips to
revelatory is that in a country whereadivasi politics, few identify themselves asChina, where he found leaders wore
even smaller communities stage aggressive adivasi; instead they are Gond, Halba,"bow-ties" and walked and talked like
agitations for reservation, the one-third Baiga, Kanwar, Binjhwar, etc. Americans, and so felt equal to Americans.
strong adivasi populace of Chhattisgarh Netam and his fellow middle-class acti Sangma advocated a similar approach for
had failed to force the government to givevists, most of them former government India's adivasis. "The arrow is not enough.
its constitutionally mandated share of employees, would like to change that.Bura manana hai to mano. Whether you
jobs, both an indication and an outcome of Their search for a more unifying politicslike it or not, education is our only way
its marginality in the state's electoral arena. has led them to the idea of indigeneity: that out," he said, to a loud round of applause.
This sets Chhattisgarh apart from as original inhabitants, adivasis have a Another speaker struck a more reflective
Jharkhand, where despite deep flaws in primordial relationship with the land, and note on the cultural loss that accompanies
adivasi political representation, as a votspecial cultural claims, which must be education in the mainstream mould. "I was
ing bloc, adivasis have retained a measurerecognised by the state. While this ideaborn Kunjam Massa", said Manish Kunjam,
of political strength. Forming 26% of the has taken firm root within activist spheresCommunist Party of India (cpi) leader, "but
state's population, Jharkhand adivasis havein other adivasi states, it is relatively new when I went to school, it sounded anachro
28 seats reserved in an assembly of 81, or in Chhattisgarh, where this year the civil nistic, and so I changed my name to Manish".
about 35% representation. In Chhattisgarh, servants-turned-activists chose 9 August, If names are a barometer of sensitivity
adivasis form 32% of the population. They World Indigenous Day, to hold a protest rallyto adivasi culture, then the urban radicals
began with 34 reserved seats in 2000, butand publish a book which carried, amongwho established Bastar as the foremost base
post-delimitation in 2008, were left withIndia-specific facts on adivasi rights, ex for the Maoist guerrilla movement, have
just 29 seats in a house of 90, or just aboutcerpts from the United Nations (un) Decla displayed it amply. A series of accounts de
32% representation. ration on the Rights of Indigenous Peoples.tail how the Maoist leaders learnt adivasi
The same marginalisation is reflected The other attempt to claim a unified languages and adopted adivasi names.
in the state's bureaucracy. According to aadivasi politics took an earthier form. OnAnd so, Gudsa Usendi, the cpi-Maoist
pamphlet published by an adivasi governi November, the day the state completedspokesperson for Dandakaranya, could well
ment employees association, across 18 dis ii years of existence, a sea of bows andbe a Telugu-speaking upper-caste man, as
tricts, just two district collectors, one police arrows flooded the prim lanes of Raipur'smost of the leadership presumably are, but
superintendent and one district judge areCivil Lines, outside the chief minister'she chooses to be known by an adivasi alias.
adivasi. Of 31 government boards, nonegated residence. Pamphlets handed out This could, however, be seen in another
is headed by an adivasi. In the highest to the press identified the protestors as light. Is it part of the Maoist project of
echelons of the capital's bureaucracy, there members of "Sarva Adivasi Samaj" (entirelegitimising their violent politics in Bastar
is just one adivasi, and in the governoradivasi society), demanding, among otheras an adivasi rebellion? The Maoists fre
and chief minister's office, none at all.rights, 32% reservations in jobs. The chief quently use the language of indigenity in
"Jharkhand always has an adivasi chieforganiser of the protest was a man calledtheir literature and pepper their press
minister. But in Chhattisgarh, count it as Ramesh Thakur, described by many as a releases with phrases like Bastar ki junta
good luck if one of us makes it to the chiefmaverick adivasi leader, without any partyka sangarsh (the struggle of the people of
minister's staff", said a civil servant whoaffiliation. Did the choice of bows and Bastar). But this project is complicated by
did not want to be named. arrows run the danger of reificationthe of fact that while the party's cadre is, by
When a delegation of adivasi employees adivasi identity and reinforcement available
of accounts, overwhelmingly adi
called upon the chief minister on Diwali stereotypes? Or was it the most effective
vasi, the top rungs of the leadership are
21
Economic & Political weekly EEE3 January 14, 2012 vol xlvii no 2
COMMENTARY
not. More disturbingly, in the classic

are in
Korba, Raigarh and Janjgir ChampaThis
inwas not an isolated case. In another
ward ire of insurgent groups, those the
beingnorth, far from the Maoist areas
part of
of the district, where Videocon Power
influence in Bastar in the south.
killed by the Maoists as state collaborators was purchasing farmland, using the state
and spies are mostly adivasis. home minister's son as a front, adivasi
Korba and Raigarh are textbook exam
A less explored aspect of the Maoistples of the intersection of forests, minerals
farmers were again the first to lose their
impact on adivasi society is in the realmand adivasis. Both have massive coal de land, again for the lowest compensation.
of culture. In field visits to Bastai; I oftenposits that are being extracted to produce
What does this pattern indicate? Perhaps,
heard about Maoists frowning upon the just
power in factories built either here or in thethe greater socio-economic vulnera
practices of village shamans and traditionalplains of Janjgir Champa, flush withbility
the of adivasis?
waters of the Mahanadi and its tributaries.
healers. In Narayanpur district, I met a vil However, in neighbouring Korba was a
Despite the large presence of adivasi startlingly different case. Yet another
lage shaman, locally known as vadde, who
people, the anti-mining struggle here doespower company, Vandana Vidyut, was
had been evicted from the village. Why were
Maoists evicting vaddes? There were multinot draw on the idea of indigeneity but isstaking claim to farmland in five villages.
ple explanations: vaddes were exploiters,more closely allied with the green moveFarmers resisted the sale, but cornered by
they extracted grain and poultry as offeringsment. The leading activists are non-adivasia state that employed its powers of emi
from villagers; vaddes were the centre of tra- Ramesh Agarwal and his associate nent domain on behalf of the company,
ditional authority and were perceived asRamesh Tripathi of Jan Chetana in Raigarh, most of them finally relented, except those
Laxmi Chauhan of Sarthak in Korba,
threats by the Maoists; vaddes were spread in village Jhora, exclusively home to adi
ing superstition, which was frowned upon byamong others - who have deftly used envi vasis. More than a 100 adivasi farmers re
the Maoists. Whatever be the actual reason,ronmental laws to challenge mining and fused to accept the money deposited in bank
the eviction of vaddes suggested the Maoistspower corporations. These activists say it is accounts by the district administration.
had their own reformist ideas for adivasi wiser to stay away from group appeals and Was this a validation of the idea of indi
society, not unlike Hindutva groups. create broad-based alliances since mining geneity? Of the special adivasi connection
Kumar Singh Toppa, a young journalism and industrialisation affect both adivasi to land? When I asked adivasi farmers, they
student from a Maoist-controlled part of and non-adivasi communities. This is even revealed this was not their ancestral land.
Ranker district, reinforced this impression. truer of Janjgir Champa, where adivasi They had moved to Jhora three decades
As part of his workshop with an non-govern peasants are smaller in numbers compared ago, when they had been displaced by a
mental organisation (ngo), Charkha Fea to other communities, including dalits. hydel power project upstream. "One round
tures, Toppa had published an article on The idea of broad-based alliance or farm of displacement is enough", they said in
Ghotuls, the adivasi youth institution that er unity was at display last year in Akaltara, unison, "we can't go through another".
anthropologist Verrier Elwin wrote about a village in Janjgir Champa, where more It seemed the adivasi stance towards
admiringly in the 1940s. In his article, Toppa than 2,000 acres of farmland is being ac the usurping of land by corporations is
lamented the way admiration had been quired by KSK Energy to set up a 3,600 mw born out of more than just the idea of indi
overtaken by revulsion in mainstream soci power plant, one of the largest in the state.geneity; it is rooted in their class predica
ety. He argued this was unfortunate, since Unhappy over the terms of transfer, farmers ment and their particular experience, in
reviling the Ghotul was tantamount to alien staged a sustained agitation against the this case, repeated rounds of displacement.
ating adivasis. I imagined this lament was company. Non-adivasi and adivasi farmers This is perhaps a bewildering moment
directed to mainstream Hindutva organisa faced several rounds of police lathi-charge in the history of Chhattisgarh's adivasi
tions. But Toppa claimed andarwaale, or the together. But over time, the differences in people, besieged more than any other
Maoists, were no different. "They have tried their predicament became predictable: the community by powerful players - the
to impose their ideas on us", he said, "some non-adivasi farmers were resisting the sale state, Maoists, mining corporations - and
times we accept, sometimes we fight back". of their land unless they were given better yet with little say. If only the bell metal
Twenty-one year old Toppa is the first liter compensation, while the adivasi farmers figurines could unfreeze and find a poli
ate member of his family, and aspires to join had already sold their land, for a pittance, tics that truly speaks for them.
the media where, like every other sphere of and were now simply asking the company
power, the adivasi voice is hard to find. to give them the jobs it had promised. As it NOTE
turned out, when the company began ac i Two caveats are needed here. Many would argue
Land Wars the lack of an adivasi imprint in the city is an out
quiring land, its officers had first knocked at
come of geography. Raipur is located in the plains
If adivasi society is besieged by violence
thein
doorsteps of the adivasi farmers, who of the Mahanadi and the closest adivasi belt is
the south of Chhattisgarh, in the north, it smaller parcels of land, were less lit nearly 100 kilometres away. But given its overlap
owned
ping circles of trade, commerce and state power,
faces the onslaught of mining and power
erate, and were easily swayed by the offer the city sees a large influx of people from all over
of jobs. And so, adivasi fanners like Sad
companies. Contrary to the narrative that the state and even outside. In such circumstances,
the absence of adivasis is noticeable. Also, it is no
seeks to fuse Maoist rebellion with thehram
des Gond sold their land for just Rs 1.55 one's case that the adivasi has distinct features
pair of the mining displaced, both dolakh

notper acre, while non-adivasi farmers that set him/her apart from members of other
communities. Hence, to clarify, the anecdotal evi
neatly overlap in Chhattisgarh: theparted
dis with their land only after negotiating dence gathered was not based on an overview but
tricts seeing the maximum displacement
a higher price of Rs 17 lakh. on conversations with a range of city people.
22
January 14. 2012 vol xlvii no 2 HE3 Economic & Political weekly
COMMENTARY
(7.7% pa growth) and in urban areas

Food Expenditure and Intake from Rs 458 to Rs 1,786 (8.9% pa growth)
during the same period (Table 1).
in the NSS 66th Round At constant 1993-94 prices, the growth,
however, is considerably less and indicates
a growing urban-rural divide, whereby the
SHALINI GUPTA rural areas lag significantly behind the urban
areas in terms of per capita spending.
It is evident that there have been Compared to the increase (albeit rela
ple Survey (nss) provides us with tively small) in real mpce, the data do not
some significant changes in the
The 66th Round of the National Sam
the newest consumer expenditure indicate any significant increase in the
food consumption basket. The
data on various articles, for both rural and real monthly per capita food expenditure
latest National Sample Survey urban India. On the basis of data from the in both rural and urban areas. The
data for 2009-10 (66th Round) latest round, along with 50th and 61st growth in food expenditure has been
Rounds, this note identifies some trends significantly lower than the increase in
show a further shift away from
and changes in India's food consumption overall expenditure on all goods during
food to non-food items in all
basket in the last two decades, by examin the period of analysis.
expenditure categories across ing the per capita expenditure on and con Table 1: Growth in Real Average Per Capita Expenditure
both rural and urban areas. This sumption of selected food articles. on All Goods and on Food Real Average Per Capita
Expenditure (in Rs)
analysis of changes across three The analysis uses data on monthly per Years Average Per Capita Average Per Capita
Expenditure Food Expenditure
capita consumer expenditure (mpce) on
rounds (1993-94, 2004-05 and at 1993-94 Prices at 1993-94 Prices
food for both rural and urban India, from Rural Urban Rural Urban
2009-10) reveals that the pace the "thick sample" survey reports on 1993-94 281.4 458.0 177.8 250.3
2004-05 323.0 523.6 184.2 240.5

of change accelerated between consumer expenditure conducted by the
2009-10 347.5 637.8 184.8 244.9
2004-05 and 2009-10. National Sample Survey Office (nsso) for
Growth of Real Average Per Capita Expenditure (in % CA
the years 1993-94, 2004-05 and 2009-10.1
Average Per Capita Average Per Capita
In addition to total food expenditure, Expenditure Food Expenditure
Rural Urban Rural Urban
five major food items (cereals, pulses, edible
1993-94 to 2004-05 1.3 1.2 0.3 -0.4
oil, milk (liquid) and sugar) are also con
2004-05 to 2009-10 1.5 4.0 0.1 0.4
sidered for a detailed analysis.
1993-94 to 2009-10 1.3 2.1 0.2 -0.1
For compatible comparison, consumer Per capita expenditures for rural and urban India d
expenditure data were used for the uni AL and CPI IW respectively using it to be unity in
capita food expenditures deflated using corresp
form reference period (urp),2 which components of CPI AL and CPI IW scaled to be unit
Source: Author's calculations from NSS data.
records expenditure of each item for the
reference period of "last 30 days". The food Table 2 presents the changing composi
quantity figures for 2009-10, however, only tion of consumer expenditure in India
correspond to modified mixed reference during 1993-94 to 2009-10. The data
period (mmrp) due to non-availability of clearly indicate an increasing share of ex
urp data in the report.3 penditure going to non-food articles in
The nominal values of rural and urban both rural and urban areas.
expenditure have been deflated usingTable 2: Proportion of MPCE on Food (%), All India Level
the Consumer Price Index - Agricultural
Years Rural Urban
1993-94 63.2 54.7

Labourers, cpi-al (July-June 1993-94 base)
2004-05 55.0 42.5
and Consumer Price Index - Industrial
2009-10 53.6 40.7
Workers, cpi-iw (April-March 1993-94 base),
The percentage composition is calculated based on
respectively. The data for cpi has been
non-deflated MPCE.
obtained from Labour Bureau, Ministry
of Labour and Employment, Government There are a few significant points to
of India. note here:
(i) The proportionate expenditure on

Trends and Composition in food, though declining, continues to be
Per Capita Expenditure on Foodhigher in rural areas.
The nominal all-India average mpce (2)
hasThe reduction in the proportion of
Shalini Gupta (gupta.shalini87@gmail.com) is witnessed a noticeable increase in the last expenditure made on food has been minor
a research scholar at the Centre for Economic
two decades. In rural India, it increased especially in the period 2004-05 to 2009-10
Studies and Planning, JNU, New Delhi.
from Rs 281 in 1993-94 to Rs 928 in 2009-10 in both rural and urban areas.
Economic & Political weekly nTüTl January 14, 2012 vol xlvii no 2 23
COMMENTARY
Figure 1: Proportion of MPCE on Food (%), Expenditure Category-wise, Ail-India

Figure i considers the same data ac
Proportion of Rural Spending on Food - Proportion of Urban Spending on Food -
cording to expenditure class. As weExpenditure
move Category-wise (%) Expenditure Category-wise (%)
from the households belonging to

80 the 80
bottom 40% expenditure class to the top

20% class, the proportionate expenditure
on food (in both rural and urban areas)
is considerably lower throughout. 50
Also,
except for a slight increase in mpce for top * 80-100
40' ■*"*
20% expenditure category in rural areas
20 ,
1993-94 2004-05 2009-10 1993-94 2004-05 2009-10
during 2009-10, all other expenditure

The calculations are based on non-deflated MPCE.
categories witnessed a percentage decline
over time in both rural and urban areas.
in food expenditure over time. However, a rise from a consolidated share of 83% in
the rate of decline slowed down consider Second, the consumption of pulses is higherrural areas and 90% in urban areas in
ably in the later period, for all the majorin urban India, but also shows a declining1993-94. In volume terms, wheat is a rela
expenditure classes. trend in both rural and urban India. Third,tively stable cereal with its per capita con
The shares of various food items in total consumption of edible oil and milk (liqsumption not showing any major changes
food expenditure are compared in Table 3. uid) has been increasing over the years,during the period analysed. Rice, on the
There is a clear indication of reallocation with higher consumption in urban areasother hand, has witnessed a consistent
of consumer food expenditure away fromrelative to rural areas. SugarTable 4: Monthly Per Capita Consumption of Selected Food Articles - All-India
cereals towards commodities such as egg,consumption has been de(in Kg)

Total Cereals Total Pulses Total Edible Oil Milk Liquid (Litre) Sugar
fish and meat, vegetables, milk and milkclining consistently in bothRural 1993-94 13.40 0.76 0.37 3.94 0.77
products, beverages, etc, in both rural andrural and urban areas, but 2004-05 12.12 0.71 0.48 3.87 0.74
urban India. Cereals and milk and milk continues to be higher in 2009-10 11.35 0.65 0.64 4.12 0.71
urban India.
products continue to be the key food Urban 1993-94 10.60 0.86 0.56 4.89 0.96
expenditure categories, while beverages, 2004-05 9.94 0.82 0.66 5.11 0.87
Consumption of Cereals:
etc, emerged as another significant ex 2009-10 9.37 0.79 0.82 5.36 0.82
Sugar consumption values for 1993-94 constitute sugar crystals (including public
penditure item. In absolute terms, the gap in
distribution system PDS) and gur; values for 2004-05 and 2009-10 constitute sugar
rural-urban cereal consump (PDS), sugar (other sources), gur, candy, mishri and honey.
Trends in Actual
tion is narrowing, as the
Food Consumption higher consumption of ce Table S: Monthly Per Capita Consumption of Selected Cereals in India (in Kg)
Years Rice Wheat Jowarand Bajraand Maize and
realsalso
Nsso consumer expenditure reports in rural areas is wan Its Products Its Products Its Products
ingfood
provide data related to the quantities of at a slightly faster rate.Rural 1993-94 6.79 4.32 0.84 0.48 0.38
items purchased by households. Table 4 5 indicates the per

Table 2004-05 6.38 4.19 0.43 0.39 0.31
2009-10 6.00 4.24 0.29 0.26 0.20

reports the changes in monthly per capita
capitaconsumption of var
0.39 0.13 0.03
consumption (kg) of selected food ious cereals in India. Urban 1993-94 5.13 4.44
items
2004-05 4.71 4.36 0.22 0.11 0.03
Rice and wheat continue
between 1993-94 and 2009-10 at an all-India
2009-10 4.52 4.08 0.18 0.09 0.02
aggregated level. to be the core cereals con
(1) Rice excludes rice products; wheat excludes wheat products.
sumed
There are several noteworthy trends in by households, col
(2) Wheat figures for the year 1993-94 corresponds to wheat aata (flour) only.
Source: Consumer Expenditure Reports, NSSO.
actual food consumption patterns oflectively
these constituting about
food articles: First, consumption of 90% decline of 0.8% pa (in both rural and
of total cereal intake in rural areas
cereals
urbanisareas).
and 92% in urban areas in 2009-10. This
is higher in rural areas and is declining
Traditional staples are valuable sources
Table 3: Expenditure Shares of Food Items (% of Total Food Expenditure) - All-India
Item Group Rural Urban of macro- and micronutrients for house
1993-94 2004-05 2009-10 1993-94 2004-05 2009-10
holds. However, from a combined share of
Cereals 38.3 32.7 29.2 25.7 23.7 22.3
13% in rural and 5% in urban cereal intake
Gram 0.3 0.2 0.3 0.3 0.2 0.3
Cereal substitutes 0.2 0.1 0.1 0.1 0.1 0.1

in 1993-94, the consumption of jowar, bajra,
Pulses and pulses products 6.0 5.6 6.9 5.6 5.0 6.5 maize and their products has declined to
Milk and milk products 15.0 15.4 16.1 17.9 18.6 19.1 7% share in rural and 3% in urban areas
Edible oil 7.0 8.4 6.9 8.0 8.1 6.3 in 2009-10. Relative to "core" cereals, the
Egg, fish and meat 5.3 6.0 6.5 6.2 6.4 6.6 decline in these staples has been faster for
Vegetables 9.6 11.1 11.5 10.0 10.5 10.5 some time now, but the rate of decline
Fruits and nuts 2.8 3.4 3.0 4.9 5.3 5.1
appears to have accelerated during 2004
Sugar 4.8 4.3 4.6 4.4 3.5 3.8
05 to 2009-10. The decline in traditional
Salt and spices 4.2 4.5 4.5 3.8 3.9 3.8
staple consumption during the period has
Beverages, etc 6.6 8.2 10.5 13.2 14.6 15.5
been most significant for jowar, followed
The percentage composition is calculated based on non-deflated MPCE.
Source: Author's calculations from NSS data. by maize and bajra. Rural areas continue to
24 January 14, 2012 vol xlvii no 2 GEE3 Economic & Political weekly
COMMENTARY
Figure 2: Monthly Per Capita Consumption of Pulses in India (in Kg)

Rural Urban
0.76
All pulses and pulses products
°-82 I 0.79
0.02
mmmmmmm 0.03
:::::cL9:::::; (HUH
H :: :oLa ::—
on "I
0.10
1993-94 2004-05 2009-10 2004-05
Figure 3: Monthly Per Capita Consumption of Edible Oil in India (in Kg)
Rural Urban
Edible oil (others)
1993-94 2004-05 2009-10

dominate the consumption of these cereals: Although gram (split) and peas used to Similar is the case in the urban areas
in 2009-10, about 61% of jowar, 73% of

constitute only 10% of the total pulses where the high share of groundnut oil
consumption in 1993-94, they are the only has been completely relocated in favour
bajra and 90% of maize consumption was
in rural areas. pulses that witnessed a per capita increase of these other edible oil category which
in consumption over the years. In 2009-10, now constitutes about 50% of edible oil
All this clearly represents a consistent
decline in consumption of cereals, withthey
a together constituted 21% of pulses consumption.
consumption in rural areas and 13% in
relative higher shift away from traditional Groundnut and vanaspati together
staples. urban areas. This could signify a redirec formed the only category of edible oil that
tion of consumer expenditure to these has witnessed a decline over the years,
Consumption of Pulses: Consumption of cheaper pulses. despite an overall increase in consumption
pulses of all kinds (except gram split and of edible oil. In 2009-10, their share in total
peas) has been declining in both rural and Consumption of Edible Oil: The per capita edible oil consumption has reduced to 14%
urban areas. Unlike cereals, the per capita consumption of edible oil between 1993-94 in rural and 20% in urban areas from 41%
urban rural consumption gap of pulses and 2009-10 has shown an annual increase and 54%, respectively in 1993-94.
has been diverging over the years, due to There has been considerable rearrange
of about 3.4% and 2.4%, respectively in rural
the more rapid decline in consumption of and urban areas, increasing more rapidly ment between edible oils in household
pulses in rural areas (Figure 2). during 2004-05 to 2009-10 (Figure 3). consumption over the years. Mustard oil
Arhar, moong, masur, urd, gram (split), In 1993-94, mustard and groundnut remains the only edible oil with a relatively
gram (whole) and peas together consti together formed more than 70% of edible stable proportion of consuming house
tute about 85-86% of pulses consumption oil consumption in India. Over the years, al holds. There is a noteworthy decline in
in 2009-10, down from 89% in rural areas though mustard oil continues to dominate proportion of households consuming
and 92% in urban areas during 1993-94. in rural areas constituting about 45% of edi groundnut and vanaspati oil, and a con
Among these, arhar continues to domi ble oil consumption in 2009-10, there is a siderable increase in those consuming
nate overall pulses consumption, despite significant decrease in the consumption of other varieties of edible oil. Given the
showing very rapid reduction in con groundnut oil and an even sharper increase changes in imports, it is likely that palm
sumption, second only to masur. Most of in the consumption of other varieties of oil dominates in these other varieties.
the decline in pulses consumption has edible oil.4 The share of these new varieties
been concentrated in the period 2004-05 of edible oil has witnessed a whopping 386% Consumption of Milk: The monthly per
to 2009-10. increase in consumption in rural areas. capita intake of liquid milk has been going
Economic & Political weekly EH3S3 January 14, 2012 vol xlvii no 2 25
COMMENTARY
an almost similar proportion (about 90%) rural areas. On average, the consumption of
up in both rural and urban areas. Between
of annual
1993-94 and 2009-10, the compound sugar consuming households in rural pulses, edible oil, sugar and milk continues
and urban
growth rate (cagr) of milk consumption in areas, the proportion has in to be higher in the urban areas. The period
urban areas (0.6% pa) is twice ofcreased in about 5.8 percentage points in between 2004-05 and 2009-10 has wit
that by
rural areas (0.3% pa). rural areas and 2.4 percentage points in nessed a strengthening of trends that
After witnessing a decline during urban were modest during 1993-94 to 2004-05.
areas during the period analysed.
1993-94
and 2004-05, the per capita consumption
KeyatTrends
of milk in rural areas has increased a NOTES
CAGR of 1.2% during 2004-05 and It

2009-10.
is evident that there have been some sig 1 Consumer Expenditure Reports, NSS 50th, 61s
and 66th Rounds. The data for 1999-2000 (55th
This turnaround in milk consumption
nificant in
changes in the food consumption Round) are not strictly comparable to other years
rural areas has surpassed the 1% pabasket
growth
in India. Besides a shift away from and hence are not considered for analysis
2 The National Sample Consumer Expenditure Su
in urban areas during the same period.
food to non-food items (in all expenditure
vey 66th Round is conducted at 3 reference per
The percentage of households categories
consum across both rural and urban ods - Uniform Reference Period (each item re
corded for the reference period of "last 30 days")
ing milk continues to be higher in urban
areas), the data also confirm the presence
Mixed Reference Period (items of clothing and
ofto
areas and has increased from 66% a sustained
76% shift within food to non bedding, footwear, education, institutional med
cal care, and durable goods recorded for a refe
cerealsand
of households surveyed in rural areas and within cereals away from ence period of "last 365 days", and expenditure on
80% to 85% in urban areas duringtraditional
1993-94 staples (jowar, bajra, maize). all other items is recorded with a reference period
of "last 30 days"); Modified Mixed Reference
to 2009-10. In pulses, all varieties (except gram and Period (a reference period of "last 7 days" for edible
peas) have witnessed a drop in consumption. oil, egg, fish and meat, vegetables, fruits, spices,
beverages, refreshments, processed food, pan,
Consumption of Sugar: The per capita The consumption of edible oil showed a tobacco and intoxicants, and for all other items
consumption of sugar in 2009-10 shows significant increase over the years, parti the reference periods used are the same as in case
of modified reference period).
an annual reduction of 0.5% in rural and cularly in the other edible oil category that
3 For cereal, pulses, milk and sugar, both URP an
1% in urban areas over its 1993-94 figures. constitutes edible oils excluding ground MMRP use last 30 days as reference and hence can
be used interchangeably. For edible oil, although
The decline, however, has been at an almost nut, mustard and vanaspati, and is mainly
URP uses last 30 days and MMRP uses last 7 day
similar rate (about 1%) in both rural and palm oil. The consumption of milk increased as reference, they would still give almost similar
results as the difference in MPCE on edible oil
urban areas during 2004-05 to 2009-10. in both rural and urban areas, with a more based on both URP and MMRP is only 0.14%.
The proportion of surveyed households rapid growth in rural areas lately. The 4 Other varieties of edible oil constitute all kinds
of edible oil excluding groundnut, mustard and
that consume sugar has, however, shown intake of sugar has fallen, at double the
vanaspati; the NSS data does not list out names of
an increase over the years - starting from rate in urban areas as compared with edible oil in this category.
Anuradha Ghandy Memorial Committee

cordially invites you to the
4th Anuradha Ghandy Memorial Lecture

by Arundhati Roy
on
Friday 20 January, 2012

at
St. Xavier's College Hall, Dhobi Talao, Mumbai
Time - 6 pm
Co-hosted by: St. Xavier's College
'Capitalism: A Ghost Story'

Having outlined the shape of the beast, the celebrated writer, who has never been
afraid of political engagement, checks out its belly
26
January 14, 2012 vol xlvii no 2 0353 Economic & Political weekly
COMMENTARY
would return to the Kremlin in March

Kremlin Comeback: 2012. The fear among the people is that
with the revised constitution, he could
The Putin Overdrive remain Russia's executive head till 2024,
making his rule comparable with that of
Leonid Brezhnev (1964-82) or Joseph
RAMA SAMPATH KUMAR Stalin (1924-53) in length.
With a weak opposition and Mounting Frustration

office in Russia's State Duma Putin thought that his victory was assured
consistent economic growth,
Vladimir(lower
Putin house)
was notelections
running for because he had got rid of most of the
of 4 Dece
the 2012 presidential elections organised opposition.2 Putin, who served
mber 2oii, but these elections were widely
were widely expected to beseena as a test of his popularity amid
as his
president from 2000-08, transformed
cakewalk for Vladimir Putin, post-Soviet Russia, by enforcing Kremlin
likely return to the presidency. Despite
reports of rampant irregularities, therule in most parts of public life. If he
final
allowing his executive tenure
becomes president, it signals a retreat
results in the polls show support for Putin's
to continue for another 12 years
United Russia (ur) party plummeting,from
but democracy. In 2012, the presidential
under the constitutionallyit revised tenure will be extended to six years from
is still in control, albeit with a much
extension of the presidential the current four and, as before, he could
slimmer mandate.1 But more importantly,
serve
it is very clear that Russian voters are be two terms. Perhaps this is why
term. However, the plummeting
Putin's announcement that he will run for
ginning to grow tired of the Putin-Dmitry
of support for his United Medvedev
Russiatandem. There have been mass president has evoked such mass expres
Party in the State Duma elections
demonstrations, one on 10 December and sion of dismay, especially from the intelli
and mass demonstrations another,
against more massive agitation on Christ gentsia. At 59, Putin seems to be in good
mas Eve. The first protest was triggered by health. The two six-year terms sanctioned
widespread vote manipulation
widespread claims of abuse in the Duma by the revised constitution would take
may force the Russian leader to
elections, but the second stir directly tar him to 2024, when he will turn 72.
look at reinventing himself.
geted Putin himself. After the first mass When Dmitry Anatolyevich Medvedev
rally, it seemed that Putin was still in con became president four years ago, it was
trol but the second demonstration against widely speculated that he and the outgoing
Putin's domination shows that the protest president formed a comradely union, that
movement has gained critical momentum a deal had been struck, and this possible
and he must commit to change or risk los turn of events was very much on the cards.
ing power (Smolchenko 2011). Medvedev moved into the Kremlin, but
Despite the terrible knock to Putin's pop power moved out with Putin. And, behind
ularity in the Duma elections, the ur party the scenes, Putin still held the reins as
still appears most in sync with most Rus prime minister. Medvedev was seen as sim
sians, according to the independent, non ply a placeholder for his powerful mentor,
governmental Russian polling and socio while Putin bided his time until he could
logical research organisation Levada Centre legally return, as the constitution did not
(Rapoza 2011). The protesters mostly com allow him to run for presidency a third
prise members of the country's urban consecutive term. Putin continued to be
middle class. Putin is counting on the sup the most influential figure in Russian poli
port of the many millions in the provinces tics and has had a strong hand in the tan
who regard him as the man who restored dem rule with the incumbent, Medvedev.
order in Russia after the chaos that fol
Wasted Efforts
lowed the collapse of the Soviet Union.
And, as it stands, the Russian economy Medvedev did show flashes of independ
is not doing that badly. Russia's gross ence, winning him the backing of many
domestic product (gdp) is growing faster in the west and in progressive circles,
than Brazil's. The country's gdp is up by particularly when he denounced the cor
nearly 5%, Russia's statistical agency ruption that flourished during Putin's
Rama Sampath Kumar (ramaasampath@ reported early December 2011, presidency.3 Although Medvedev had
Rosstat
making
gmail.com) writes on Russian affairs it easier for Putin to argue that he been widely seen as simply a caretaker
and was
earlier at the Centre for Central Eurasian
had done well for Russians (Rapoza 2011). figure, he did strike a reformist posture as
Studies, University of Mumbai. Putin was therefore confident that he president, calling for progress in Russia's
Economic & Political weekly 0353 January 14, 2012 vol xlvii no 2
27
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28 January 14, 2oi2 vol XLVii no 2 033 Economic & Political WEEKLY
; COMMENTARY
consumption and real estate taxes will hit

extremely unreliable court system besides the streets of the largest cities of Russia
making efforts against the country's ex comparatively harder.5
the rich were only a small percentage of Russian
In the meanwhile, over the past year,
tensive pattern of fraud. But unfortunately, society, although among them were some
Putin's exploits have been front-page of the country's brightest and most media
despite his labours in political and judicial
reforms, he was widely viewed as anews.weakHe has remained in the public eye sawy. It should be borne in mind, however,
by combining
president whose initiatives were subject to his role as a leading politi that only 3% voted for the only liberal
veto by a strong prime minister. Hiscian
hardwith a niche as Russia's man of party that participated. Some leaders of
action. In a series of high-profile stunts,Just
work produced very few concrete results. he Russia and the Communist backed
has been honing his image, presenting
Notwithstanding his endeavour for reform the protests, but there were no signs that
himself
and his frank, contemptuous critique of their voters were following them in the
as the man in charge. He has
Russia's corruption and political piloted thousands to the rallies. However, the rally
back fire-fighting planes, darted whales,
driven
wardness, there were no clear plans for race cars, and even taken a on
sub24 December did send a signal of threat
implementing change. to Kremlin dominance and Putin's approv
mersible 1,400 metres below the surface
Somehow Medvedev was unable to of Lake Baikal. One recent photo shoot
al ratings have declined to historic lows.
connect to the Russian people andtook place at an ancient Greek Black Putin
trans Sea has definitely been given a message.
late his lofty theories into reality. archaeology
He em site, where he was seenThe
un public anger proved that Russians
have
covering two 6th century bc Greek urns
barked on a much-trumpeted modernisation in lost their fear of the powers that be.
underwater pictures (Walker 2011). At These
programme that failed to make headway. the mass protests are indeed a rare
time, he also projects himself occasion
same of
Unfortunately, happenings at that point as a in the past 12 years when Putin
time, too, did not favour Medvedev.people's has had to face real public resistance.
Events man. At the end of August 2010,
Putin set off on a road trip to Yakutia,
prevented him from using the opportunity Many in the west, especially tne United
States (us), are counting on the demon
Kamchatka, Amur, Khabarovsk and Chita
to prove his ability. Soon after stepping
into the Kremlin office he had to face a war during which he gave a series
regions, strations
of for a probable re-poll. They fear
interviews,
with a neighbouring country, followed by that Putin's return will see his personal
conversed with truckers dur
the impact of the global economicing projects and prejudices defining Russia's
the trip, met fishermen, played volley
crisis.
But more than that, Medvedev faced a young people and sat down with
ball with place in the world.
"silent war" from Kremlin hardliners villagers (Arkhipov and Pronina 2010).
western tears
The Duma elections, on the contrary,
against plans for reform (Stott 2011). Some
of Medvedev's pet projects never got proved
off If Putin becomes the president, the
that Putin's effort at image build
especially the us, will watch his f
inglowas not effective as he was expecting
the ground. The Russian Silicon Valley,
it to
cated on the edge of Moscow, intended to be. The opposition took the opportupolicy with great concern. In Fe
nity, with extraordinary efforts to build2009,
attract web start-ups and nurture world up the us announced its "reset"
with Russia. When us Secretary o
momentum in the protests that followed
beating research, in fact, became a focus
of ridicule, and all because Putin did the
notelection results. Hillary Clinton commented on
much care for it (Stott 2011). recent Duma elections as not bein
Public Anger and fair, pre-empting the assessmen
Shrewd Player Mikhail Gorbachev, the former Soviet Organisation for Security and Co-o
Putin, meanwhile, with all his shrewd leader, opined that the return of Putin'sin Europe (osce) observer missi
ness, signalled that he could restyle him leadership would slide the country back towhich the us itself participated
self as an economic reformer, adapting authoritarianism. He warned that there effect denied the legitimacy of the
himself in the garb of the Tsarist Prime was the possibility of Russia facing angovernment. This led to sharp r
from Putin and a threat from Medve
Minister Pyotr Stolypin.4 During his first Arab Spring type of revolt if democratic
stint as president, he was able to trans reforms are not enacted (Weir 2011). But us missile defence installations in
form Russia from post-Soviet poverty to hopes of a Russian analogue to the Arabcould be targeted (Bancroft-Hinche
prosperity, mainly because of high prices Spring are over-optimistic. In Russia, This
a turn of events does raise concerns
that us-Russia relations could again decline
for Russia's vast supplies of oil and natural growing number of protests are driven more
gas. The growing recognition of the people by economic grievances and frustration
to previous levels. But the centrality of us
of the need to move beyond a natural with corruption, and less by the autho
Russian cooperation in advancing nuclear
arms control and non-proliferation, com
resources economy will compel Putin, if ritarian nature of the regime. But move
bating terrorism and drug trafficking,
he becomes president, to pursue reforms. ments can appear weak and then snowball
Putin has already proposed that Russia's fast (Foust 2011). Nonetheless, to say maintaining
a security in Afghanistan and
rich pay higher taxes. During Putin's revolution is brewing seems far-fetched. central Asia and managing the drawdown
earlier term, the flat income tax came into It is true that the majority of the Rus
of troops, will logically remain the same
effect, and was widely praised as improv sians voted against ur, the official Krem(Rojansky and Gyosdev 2011).
ing tax collections. Putin's new proposal lin-backed party, and it bagged only The 18-year agonising wait for World
Trade Organisation (wto) membership
will not change this, but increases in the 49.5% of the votes. But the protestors on
Economic & Political weekly raHTl January 14, 2012 vol xlvii no 2
COMMENTARY
may be over, but it is yet to be seen whether We will strive to remain in Europe, whereweakened under Putin; his ur party con
we are geographically and spiritually locat
this is a political victory for the Kremlin, trols the entire bureaucracy and just about
ed. But if we are going to get pushed out of
because Putin has always been suspicious it, we will be spurred into seeking alliances, every elected body in Russia. The second
of WTO membership and afraid of its and strengthening ourselves. protest rally was attended by new strong
potential to limit the Kremlin's control Putin says he is not trying to recreatefigures, such as the former finance minister,
over the Russian economy (Eggert 2011).6 the Soviet Union, "but close integration Alexei Kudrin and anti-corruption whistle
If elected, Putin will most likely have a based on new values" (Putin 2011). Givenblower Alexei Navalny, and Putin goes into
confrontational attitude towards the us, the legacy of the Soviet Union - "infrathe presidential campaign significantly
which will worsen with a Republican pres structure, industrial specialisation, and aweakened. Yet, with only uninspiring
ident.7 In this stand-off, it becomes obvi common linguistic, scientific and cultural candidates in the field, the 2012 presiden
ous that Moscow relies on its Asian ties, space" - he has stated that it would be adtial elections are likely to go in his favour
furthermore strengthening its coopera vantageous to use this resource for devel (Frolov 2011). As of mid-December 2011,
tion with the BRics group.8 opment in the common interests (Elderfour candidates had registered. Besides
Soon after announcing his decision to 2011). Putin has made the Eurasian UnionPutin, these included Communist Party
contest the presidential elections, Putin a main election platform. Some analysts leader Gennady Zyuganov, head of the Just
wrote an article in the national daily Izves point out that this perhaps is one of hisRussia opposition party Sergey Mironov,
tia, calling for a Eurasian Union based on "big ideas" - one which he may endorse in and billionaire Mikhail Prokhorov (Mankoff
the customs union with Belarus and Kaza the future to draw attention away from his 2011). Others who may challenge him are
khstan (Putin 2011).9 Putin has been per current domestic troubles, and the massthe liberal Yabloko Party's choice Grigory
sistent on economic integration of theprotests that call for his resignation. Yavlinsky, former mayor of the Russian
former Soviet Union and has pressed for far-eastern city of Vladivostok, Viktor
the adoption of the rouble as a regionalLacking Alternatives Cherepkov and the nationalist Liberal
currency by former Soviet states (Elder Providentially for Putin, opposition leadDemocratic Party of Russia leader
2011). In the months before Putin became ers have not been able to unify around aVladimir Zhirinovsky.
president for the first time, he had said presidential figure (ria Novosti 2011). Before the Duma elections, Putin was
(Karlin 2011): Competitive political parties have beenconvinced that the presidential elections
National Institute of Advanced Studies, Bangalore

Water Programme
Postdoctoral Positions
The National Institute of Advanced Studies (NIAS), a multidisciplinary research institute located in Banga
four Postdoctoral Fellows for the Water Programme for a period of two years. Two of these positions are f
social science background and two with natural science and engineering background.
Eligibility:
Candidates should have completed the PhD degree in any relevant discipline with a focus of research on water issues. The
successful candidate will have the ability to design and carry out research projects, a sound conceptual grounding in his/her
discipline and excellent analytical and writing skills. Candidates should demonstrate a commitment to teamwork, carrying out
empirical research on water issues and producing excellent research and policy reports as well as original publications.
Salary will commensurate with qualifications and experience and comparable to other premier institutions in the country.
About the Water Programme:

The programme adopts a multidisciplinary approach to address issues in the water sector. The active involvement of stakeholders
from across the country has been central to the process. The focus of research has been on issues surrounding transboundary
water sharing, inter-sectoral conflicts and conflict resolution. The present work focuses on evolving socio-technical solutions to
water challenges of India.
More information about NIAS is available on the NIAS website (www.nias.res.in).

Applications:
Applicants should submit their curriculum vitae electronically including the names and addresses of three referees, two samples
of published/unpublished work, and a statement of interest to:
Head, Administration
National Institute of Advanced Studies
Bangalore - 560 012
E-mail: admin@nias.iisc.ernet.in
The deadline for applications is 01 February 2012. Short-listed candidates will be invited to NIAS for a talk and an interview.
30 January 14, 2012 vol xlvii no 2 033 Economic & Political weekly
: COMMENTARY
be 2011), just before the announcement ofKarlin, Anatoly (2011): "Unraveling the Tandem
(Kramer
would be a Cakewalk. Now it is going to
Putin's candidacy. Though this project is publicly Switch", Sublime Oblivion, 8 October, accessed on
different, and the possibilities are that
tiedit
to Medvedev, the timing suggests that Putin 12 December 2011: http://www.sublimeoblivion.
may go for a second round.10 Many approves
feel the reset on relations with the US. com/2oii/io/o8/unraveling-the-tandem-switch/
Russia formed a customs union with Belarus and Mankoff, Jeffrey (2011): "The Russian Presidential
that Putin is not emotionally and psycho
Kazakhstan which came into operation in July 2011. Elections", Centre for Strategic and International
By making borders more porous, this union is
logically ready for this but is well aware Studies (CSIS), 20 December, accessed on
expected to expand markets and trade. "Back 21 December 2011: http://csis.org/publication/
that this is inevitable. Something needs to Business: The Customs Union of Russia,
Ground russian-presidential-elections
Kazakhstan and Belarus", 7 January. AccessedMonitor's
be changed and at present, Putin increas Editorial Board (2011): "The Monitor's View:
29 December 2011: http://russiaprofile.org/bg_ Helping Russia Avoid Putin Kleptocracy", Christian
ingly looks like he does not have a plan.
trade/4oo37.html Science Monitor, 27 September, accessed on
Whatever he decides to do, Putin nowThehas
president is elected by absolute majority vote 29 December 2011: http://www.csmonitor.com/
through a two-round system to serve a six-year Commentary/the-monitors-view/2011/0927/
just a couple of months to act. The Russian
term. A clear first-round victory requires a major Helping-Russia-avoid-Putin-kleptocracy
public seems ever more sensitive to ity
elecof the votes cast. Putin, Vladimir (2011): "A New Integration Project for
Eurasia: The Future in the Making", Izvestiya,
toral manipulation, and so the authorities
4 October, accessed on 29 December 2011: http://
REFERENCES
must ensure transparent and fraud-free premier.gov.ru/eng/events/news/16622/
Arkhipov,
elections to guarantee Putin's victory. It Rojansky,
Ilya and Lyubov Pronina (2010): Matthew and Nikolas Gyosdev (2011):
"Putin Hits
the Road to Buff 'Action Man' Image with"Keep
Eyethe
onReset Moving", International Herald
remains to be seen whether Putin, the as Election", Bloomberg, 30 August, Tribune,
2012 accessed 15 December, accessed on 20 December
tute authoritarian, will now be moreon 29 December 2011: http://www.bloomberg.
sen 2011: http://carnegieend0wment.0rg/2011/12/15/
com/news/2oio-o8-3o/putin-hits-the-road-to
keep-reset-moving/8aff also at: http://www.
sitive to public opinion, and reinvent him
buff-action-man-image-with-eye-on-2oi2
nytimes.com/2011/12/16/0pini0n/keep-the-us
election.html russia-reset-moving.html?_r=3
self in the next two months. To keep his
Bancroft-Hinchey, Timothy (2011): "Are We Heading
Rapoza, Kenneth (2011): "Russia Economic Growth
government alive, Putin will have to re
Towards World War Three?", Pravda, 13 December,
Bodes Well for Putin Election", Forbes, 20 December,
accessed on 20 December 2011: http://english.
cast himself as a "liberal moderniser", accessed on 21 December: http://www.forbes.
pravda.ru/0pini0n/c0lumnists/13-12-2011/
com/sites/kenrapoza/2on/i2/2o/russia
more like Medvedev. 119949 -world_war_three- 0/ economic-growth-bodes-well-for-putin-election/
Eggert, Konstantin von (2011): "HowRIA
Will WTO
Novosti (2011): "Putin Still Enjoys Majority Support
Membership Change Russia?" Telegraph, 2625 December, accessed 26 December
in Russia",
NOTES
December; accessed on 26 December 2011: 2011:
http://
http://en.rian.ru/russia/20111225/
1 UR won about 49.3% of the vote on 4 Decemberwww.telegraph.co.uk/sponsored/russianow/
170484689.html
2011, down from 64.3% in the 2007 election. opinion/8931017/WTO-Russia.html
The Smolchenko, Anna (2011): "Russia's 'Love Affair' with
Communist Party won about 19.2%, Elder, Miriam (2011): "Putin's Grand Vision: A New
compared Putin Ending", AFP News Online, 25 December,
Eurasian
with 11.6% four years earlier. The US, Germany and Bloc with Old Soviet Neighbours", The
accessed on 26 December: http://thepresidency.
Guardian, 4 October, accessed on 24 November
the European Union have criticised violations us/2on/i2/russias-love-affair-with-putin
during the vote. 2011: http://www.guardian.co.uk/world/2on/
ending-analysts/
2 Putin has recently been named by Forbes oct/o4/putin-grand-vision-eurasian-bloc
Speedie, David C (2011): "Putin and His Russia Don't
magazine as the world's second-most Foust, Joshua (2011): "An Arab Spring, a Russian
powerful Deserve the Bad Rap", Christian Science Monitor,
person, behind only US President BarackWinter",
Obama. PBS News, 7 December, accessed 27
15 November, accessed on 6 December 2011:
December 2011: http://www.pbs.org/wnet/need
Accessed on 29 December 2011: http://www. http://www.carnegiecouncil.org/resources/
to-know/opinion/arab-spring-russian-winter/
forbes.com/powerful-people/gallery/vladimir
12584//.
articles papers reports/om.html also available
putin#gallerycontent.
at: http://www.csmonitor.com/Commentary/
3 Widespread corruption is estimated at Frolov, Vladimir (2011): "From Arab Spring to Russian
$300 billion Opinion/2oii/ni5/Putin-and-his-Russia-don-t
Winter?" Russia Profile Weekly Experts Panel,
a year in kickbacks and bribes. See the Monitor's deserve-the-bad-rap
Editorial Board (2011). Russia, Profile, 16 December, accessed on 27
December 2011: http://russiaprofile.org/experts_
Stott, Michael (2011): "Witness: Russia's Unhappy
4 Stolypin is often cited as one of the last major Flirtation with Reform", Reuters, 27 September,
statesmen of Imperial Russia, with apanel/5i557.html
clearly accessed on 5 December: http://www.reuters.
defined political programme and determination Gasyuk, Alexander (2011): "Russia's Heft in WTO Means
com/article/2011/09/27/us-witness-russias
to undertake major reforms. More Economic Commitments", Russia beyond
the Headlines, unhappy-flirtation-wi-idUSTRE78QiY22ono927
5 According to Forbes magazine, in a listing pub Rossiyskaya Gazetta, 2 December,
accessed on 29 December 2011: http://rbth.ru/ Walker, Amanda (2011): "Action Man Putin Dives For
lished on 10 March 2011, Russia had 101 billion
articles/2oii/i2/o2/the_more_important_your_ Sunken Treasure", Sky News, 11 August, accessed
aires. Accessed 29 December 2011: http://www.
forbes.com/wealth/billionaires/list. economy _the_more_demands_you_will_have_ on 27 November 2011: http://news.sky.com/
to_me_13881.html home/world-news/article/16048256
6 In an interview, Anders Aslund, a senior fellow at
the Peterson Institute for International Econom Kramer, Andrew E (2011): "Exxon Reaches Arctic Oil Weir, Fred (2011): "Gorbachev Criticises Putin's Russia
ics in Washington, and an expert on Russian stud Deal with Russians", New York Times, 30 August, as Backsliding on Democracy", Christian Science
ies argued that Putin's return may mean "more accessed on 5 December 2011: http://www. Monitor, 16 August, accessed on 5 December 2011:
realistic and responsible" US-Russian economic nytimes.com/2011/08/31/business/gl0bal/ http://www.csmonitor.com/World/Global
relations (Gasyuk 2011). As Exxon Mobil's deal exxon-and-rosneft-partner-in-russian-oil-deal. News/2on/o8i6/Gorbachev-criticizes-Putin-s
with Rosneft shows, bigger foreign investors would html?pagewanted=all Russia-as-backsliding-on-democracy
probably be more interested in Russia with Putin
as president.
7 Russians in general feel that there are double
standards wherever it suits US interests. The US
©SpSi ADMINISTRATIVE STAFF COLLEGE OF INDIA
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partner, despite its equally unacceptable human
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Kosovo and South Ossetia, whereas the US helped training for Private and Public Sector Enterprises and middle and senior civil servants.
Kosovo gain independence from Serbia, it still
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Georgia (Speedie 2011). ♦ ADMINISTRATIVE OFFICER
8 BRICS: Brazil, Russia, India, China, South Africa.
Putin, is more a nationalist and a soldier, compared
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♦ ASSISTANT PROFESSOR "j Practitioners and Academicians may a
♦ ASSOCIATE PROFESSOR V areas of HRM, corporate finance, o
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Economic & Political weekly E33S3 January 14, 2012 VOL XLVII NO 2 31
FROM THE STATES
Death by Smoke
help. Without thinking, all of us in the
basti rushed to help them."
Gross Negligence
RAJASHRIDASGUPTA
Deaths in hospitals due to medical negli
gence seldom raise a stir today; it has
The AMRi crime is an example become so commonplace. But this inci
of how public safety is being Dhananjoy Pal in his sleep. "Baba dent of patients suffocating to death in the
repeatedly
Even saveafter
compromised. More
me", wasa her
month, the cry haunts
last plea to him. intensive care and orthopaedic units in
Pal cannot forgive himself for failing to the country's worst hospital tragedy -
specifically, it demonstrated
save his daughter, Prakrita, admitted in a aggravated due to gross negligence - has
the dismal trend of healthcare
multi-specialty hospital with a fractured sent shock waves throughout the country,
services being offered byleg."super
Friends say Indrani Deb Barman is raising a number of disturbing issues.
still at a loss as to why her sister, 36-year One, it exposes how public safety is being
specialty care" in public-private
old Chandrani, who survived a road acci repeatedly compromised as safety norms
partnerships, which has raised
dent, had to suffocate to death in a hospi are flouted with impunity and questions
the cost of medical treatment
tal where she wasto
admitted for treatment. the accountability of both state agencies
The lament of the living
exorbitant levels and deprived the pervades the city like the fire department and public places
of Kolkata as angry, bewildered and grief like hospitals, shopping malls, cinema
poor of even basic treatment.
stricken people ask what went wrong in halls and education institutions in general.
the early hours of 9 December 2011 when Two, and more specifically, it demon
91 patients, including two nurses, suffo strates the dismal trend of healthcare
cated to death by smoke when the base services in the state in the name of "super
ment caught fire in Kolkata's well-known specialty care" in public-private partner
hospital, Advanced Medical Research ships (ppp), raising the cost of medical
Institute (amri). Families feel betrayed treatment to exorbitant levels and depriv
that the hospital that was meant to be a ing the poor of even basic treatment. Like
haven of hope had literally transformed the famed Bengali misthi or sweet shops,
itself into an inferno of hell. private diagnostic laboratories, nursing
Last month's images on tv of old and homes and hospitals have mushroomed,
sick patients scrambling down crude bam establishing clearly that healthcare is a
boo ladders and ropes made of bed sheets lucrative and profitable commodity.
and of senseless people wheeled away in AMRi is no exception. Two new annexes
ambulances brought back memories of were built on less than an acre (54 cottahs)
another deadly fire in less than two years of land; Annexe 1, where the fire occurred,
ago in the city. People recall in horror the is squeezed between Panchanantala slum
ghastly scenes of men jumping off the and Annexe 2 with a wall closely guarding
burning Stephen Court building in the the building all around, violating safety
heart of Kolkata's Park Street when the top norms. In fact, how did the concerned
floors caught fire in the afternoon of government department sanction such a
23 March 2010 killing 43 people. Slum building plan that makes manoeuvrability
dwellers of Panchanantala, who were of the fire brigade almost impossible?
among the first to begin rescue operations Again, patients were housed on a virtual
in AMRi, say how patients were found tinderbox, with the basement where the fire
dead clinging to window sills in a desper started used for central storage packed
ate bid to escape. Bappa Das, a student of with power units, combustible material
class x in a local school and his friends and oxygen cylinders, among other
from the slum nearby, heard patients things. The negligence was criminal
crying out to them for help through the because despite a fire in the same building
smoke and dragged out bodies from the in 2008, the hospital authorities failed to
hospital wards. "We could not make out at clean up the basement. But if the hospital
Rajashri Dasgupta (rajashridasgupta@gmail.
that time whether they were dead or alive. failed to act, the fire department showed
com) is an independent journalist based
in Kolkata.
We did not pause to consider whether they gross indifference. It issued a no-objection
were our kin. They were screaming for certificate on 29 August 2011 to the
32 January 14, 2012 vol xlvii no 2 mavi Economic & Political WEEKLY
FROM THE STATES
cannotand
hospital. In fact, the fire safety rules absolve itself of its responsibility state government (kick-started by the lf)
safeguards for multi-storied buildings
though today the alliance is conspicuous is going rural. The state government is
under the National Building Code by
areits
very
silence in the assembly on the inci flush with funds - and victory - from the
clear, but as every tragedy reveals,
dent. few
Even the ruling Trinamool Congress centre's decision to set up 27 super specialty
state government
comply with these norms, and, in turn, the is yet to explain what hospitals in 11 backward districts at a cost
norms are rarely enforced. paribartan or change it has brought about of Rs 8,750 crore under the Backward
The disaster management in amripeople's safety and make health
to ensure Regions Grant Fund. The process began with
care
proved to be dismally inadequate, affordable and accessible since it
losing systematically handing over land/space to
precious time in decision-making into
came sav
power seven months ago. the private sector to set up diagnostic
The reticence
ing lives. Though the fire was detected as of the lf to comment on facilities to "supplement services" in more
AMRi is understandable. It was in the
early as little past 2 am by slum-dwellers than 20 health centres and hospitals in
name
who rushed to the hospital to help, of "affordable
only to healthcare" that the the districts, shutting down and cluster
be turned away rudely by securityJyoti
guards,
Basu government in the early 1990s ing together primary healthcare centres,
tied states
the fire brigade, according to the fir, up with private partners in the first imploring a well-known private group to
joint were
that it was informed only at 4 am. Lives venture in the health sector. It take the responsibility for training nurses,
lost as the staff tried to control the fire handed over land to a private group in anand handing over in many instances to
themselves while the smoke continued to getunusual deal that locked the annual lease private agencies the responsibility of pro
sucked in by the ac duct, spreading through rent for amri at Rs 9.94 lakh - 16 timesviding Group D employees, ngos are also
the entire hospital and choking the patients.less than the current market lease rate - involved in this partnership with one run
Unfortunately, the lessons from the Stephenand that too for a period of 30 years. Few ning the hospital in Sundarbans.
Court fire tragedy went to waste, the firelease agreements freeze the rent for more In Kolkata, the trend began during the
brigade was found to be ill-equipped withthan five years; it is normal practice to LF when the seven famed government
only two ladders unable to reach the toprevise the lease agreement at regular teaching hospitals opened up their premi
floors of the building, unable to manoeuvreintervals. (This ensured that the land rent ses to private diagnostic laboratories for
in the little space and without adequateremained frozen, while the market rate ofmedical tests. Needless to say, this keeps
anti-smoke gear, making rescue operationsthe prized land soared.) It is alleged that everyone happy - doctors get a commis
in the gas-filled wards difficult. It is anotherthe government representative, the direcsion for advising tests, business booms and
matter, though, that the local slum-dwellerstor of health services, was reduced to apatients are under the impression they
who rushed in to save patients had only sursleeping partner in the amri board "drink receive "quality" treatment. Even in remote
gical masks and wet towels to cover theiring chai and signing the minutes". rural areas like a village in Jhargram, an
face against the blinding smoke. Despite the favoured treatment by theold adivasi woman expressed "happiness"
state government, providing subsidised or - though poorer by Rs 12,000 by pawning
In the Name
free land and other facilities to the privateher land. She is the proud owner of a mri
of Affordable Healthcare
health sector, affordable healthcare hasreport, attractively and smartly-packaged,
The reaction of the state chief ministerbypassed
was the urban poor. Local slum a test she was advised for a stomach ache;
dwellers bitterly complained about amri:never mind that it turned out to be worms
not unexpected. Mamata Banerjee trans
how they were denied even emergencytreated with tablets costing lis 20. The
formed herself into the chief manager,
treatment
managing the irate crowds in front of the and humiliated when they impoverished rural poor who throng the pri
hospital and helping bereaved families
pleaded for medical help. Said Soma Tati, mary healthcare centres and block hospitals
a slum-dweller, "The hospital would firstfor basic treatment of tb, diarrhoea and
recover the dead bodies from the morgue.
She also promptly had the six directors of a huge amount of money beforemalaria and anaemia, are today hood
demand
AMRi arrested and cancelled the licence of they started any treatment. Then theywinked into spending for irrational and
the annexe and set up a judicial commission would frighten us that we suffer from expensive tests further deepening poverty in
to investigate the tragedy. Incidentally, it serious and incurable diseases that require the region. If the amri experience of a joint
is the seventh commission in seven months umpteen medical tests. Can we ever venture is anything to go by, the state is
of her rule and given past experience of afford it?" Ironically, these were the sameheading towards a health catastrophe hit
tardy investigation of commissions (some slum-dwellers of Panchanantala who dur ting the poor the hardest. After all, it is easier
have not even started work), people are ing the blaze fearlessly carried out rescue to distribute medals to the poor than to pro
sceptical that justice will be meted out. operations in the hospital risking their vide affordable and quality healthcare.
Citizens groups feel that political parties own lives. The chief minister promptly hon
across the spectrum have a lot to answer oured them with medals for their bravery. Subscription Numbers
for the state of things in West Bengal. The
Subscribers are requested to note their Subscription
Left Front (lf) government that ruled Feel-good Term
Numbers mentioned on the wrappers and quote
West Bengal for 34 years (1977-2011) and Super specialty healthcare, the feel-good
these numbers when corresponding with the
set the grounds for the health policy, term for joint ventures in the first phase circulation department.
advocated ppps and patronised amri followed by privatisation, under the tmc
Economic & Political weekly EGE3 January 14, 2012 vol xlvii no 2 33
correspondingly, of so-called modernism
Religion-Politics Interface and liberalism. The first constitutional
expression of this changing phenomenon
was evidenced in the American consti
PARTHA S GHOSH tution (1787) which separated the state
from religion, thereby marking the arrival
BOOK REVIEW of secularism.
view with what Mahatma Gandhi had Ishtiaq Ahmed's introductory chapter
It may be about
to say appropriate to start thisbetween
the relationship re The Politics of Religion in South and
tells this story succinctly. His key point,
Southeast
religion and politics. In his autobiography,Asia one we have

edited by Ishtiaq Ahmed (London: Routledge), also
2011; alluded to above, is
pp xi+268, price not mentioned.
he wrote: that religion can serve both negative and
Foundational Crisis in South and Southeast
To see the universal and all-pervading SpiritAsia: Bangladesh, Indonesia and Malaysia by
positive purposes and that, even though
of Truth face to face one must be able to love Abu NasarSaied Ahmed (New Delhi: Akansha), 2011; a small minority, of late the forces of
the meanest of creation as oneself. And a ppxviii+270,Rs600. negativism have been ascendant. The
man who aspires after that cannot afford challenge is how to deal effectively with
to keep out of any field of life. That is why
by India's Ministry of External Affairs. these militant minorities so as not to
my devotion to Truth has drawn me into the
Both Ahmeds are political scientists with disrupt societal harmony (pp 1-3). On
field of politics; and I can say without the
slightest hesitation, and yet in all humility,
interests in religious politics and migra similar lines, Ali Riaz's chapter locates
tion. The other commonality is their con how, through the majority-minority dis
that those who say that religion has nothing
cern for inter-religious harmony, as has course a "predatory identity" is being
to do with politics do not know what religion
means (The Story of My Experiments with
been reflected in their previous writings. formed in south Asia that presupposes
Truth, Mahatma Gandhi).
The difference is the geographical regions religion, nation and majority as one and
Gandhi was no doubt stressing the pos
they focus on. While the former's primary the same thing (p 22).
interest is in Pakistani affairs, the interest
itive side of religion. Unfortunately, it is
the negative aspect, which, both in its of
inthe latter is in India's north-east. Issues of the Marginalised
tra- and inter-religious dimensions, has Ishtiaq Ahmed has written three chapters,
Religion
dominated the history of large parts of the and State besides the introduction, for his volume.
Of the two regions discussed in the books, He addresses issues that concern margin
world ever since the rise of organised reli
gion. Against this background, the two
south Asia assumes greater significance alised groups in Indian and Pakistani soci
because it is home to the largest commu eties: dalits, adivasis, Muslims or Chris
books under review here, one an edited
volume and the other a single-author nity of Muslims in the world. South-east tians in India; Ahmadi, Hindu, Christian
monograph, further sharpen our under Asia is distinctive from a different angle. and Shia minorities in Pakistan; and Mus
standing about the connection between The process of Islamisation there has been lim women reeling under the gender
religion and politics through a selective
possible, almost entirely, through interac unjust oppressive provisions of Pakistan's
analysis of the politicisation of religions
tions with Arab traders with support from legal system which, though not Islamic, is
the Mecca establishment during the 15th under severe pressure from the Islam
like Islam, Hinduism, Christianity, Bud
dhism and Sikhism, in the vast souththrough 17th centuries, and not through centric politics of the country. The chapter,
south-east Asian region. If the emphasis direct
is Muslim invasions of the kind experi "Secular versus Hindu Nation-Building"
more on Islam the obvious explanation enced in south Asia. Yet, even in the Islam (pp 45-65), is a summary of what has
lies in its current salience in world poli
isation of south Asia, the contribution of happened to Indian politics in terms of
tics. Yet, another reason is that Muslims
invasions was limited. Sufi influence, with majority-minority relations, where the
its essential thrust on piety that touched majoritarian ethos of the society is pitted
form the majority in most of the nations
discussed in the two volumes, and where
the inner chords of large masses of mar against the secular ethos of the Indian
ginalised Hindus and others, also played a Constitution. The result is a constant tug
they do not, they form the largest minority.
significant role. The overarching influ of war as each seeks to locate its space in
Since the subject also cannot avoid refer
ence to issues like nationalism and eth ence of Muslim rulers, no doubt, was in the country's nation-building project. This
fluential as well. Lately, both regions have reviewer cannot agree with the author
nicity, they occupy their legitimate space
in these essays. been exhibiting symptoms of Islamic ex more when he concludes:
tremism, which has reverberated across
Ishtiaq Ahmed's volume is the culmina At the present stage of development, India is
tion of a dialogue that began in March
other religions and kept the social caul without [sic] doubt a success as a procedural
dron at a constant boil. or political democracy. In the longer run that
2009 at a symposium held in Singapore
will not do, and much more will have to be
under the auspices of the Institute of
The visibility of religion as a political
done to negate the inherently discriminatory
South Asian Studies. Abu Ahmed's mono force declined somewhat after the growth and hierarchical nature of the caste system.
graph is the outcome of a project funded of industrialism and capitalism, and That would mean combating reactionary
34 January 14, 2012 vol xlvii no 2 [3X3 Economic & Political weekly
= BOOK REVIEW
European continent, North America andotherwise pacifist Tablighi Jamaat (tj).

Hindu culture in society and greater state
intervention to bring about egalitarian Australia, to conduct themselves accordingHashmi writes:
change that benefits both the majority and
to the tenets of Islam. These organisations Despite the tj's avowed apolitical stand and
minorities (p 63).
put "personal piety at the top of their the dearth of any credible evidence to link
In one of his other chapters, "Religiousagendas, and address the demands engen the organisation with any terrorist network
or activity since its inception to protect Indi
Nationalism and Minorities in Pakistan",dered by globalisation and political mod
an Muslims' Islamic identity, its open-arm
Ahmed attacks the Islam-oriented politicsernisation as a threat potentially capable policy of letting any Muslim join the organi
and constitutionalism of Pakistan in of eroding the Islamic character of society" sation is worrisome. One may find tj's
which no space has been created(pfor 257). One of Rashid's key arguments is Deobandi roots and its adherence to the
ultra-orthodox 'Wahabi' doctrine of Pan
that
minorities, whether they are Ahmadis or"though new media and technology
Islamism (Deobandi clerics in Pakistan
Shias or non-Muslims like Hindus or support new social interactions, the open
inspired the Taliban) troublesome. Several
Christians. The Ahmadis have the double link of issues with the religious text means
terrorists in the recent past have used the or
disadvantage for they cannot even identifythat socio-religious pressure towards ganisation as a safe haven. One is not sure if
themselves as Muslims, something thatconformity for the good of the family will some Tablighi organisers are sympathetic to
was tragically demonstrated in the antiremain a powerful constraint on women's transnational Islamist terrorists and provide
sanctuary to them (p 32).
Ahmadiya riots that rocked Lahore inability to find new interpretations rather
1953. The Munir Commission Report whichthan a puritan's interpretation presented The politicisation of Sikhism in recent
frontally attacked the rioters received little with the new technology and media" times, culminating in the demand for an
support from a political class dominated(PP 257-58). independent state of Khalistan and the re
by Islamic traditionalists. Overall, the Globalisation of religious politics is sultant tensions between India and Paki
Pakistani story is dotted with oppressivealso to be seen in the spread of Hindutva stan, has been analysed in the chapter by
measures against Ahmadis, Hindus andideology. Rajesh Rai's paper discusses Tridivesh Singh Maini. But his reference
Christians and intermittent riots between
how large sections of diasporic Indians in to Punjabiat (p 77) as the overriding force
Sunnis and Shias, in most of which the the west, and even in Singapore, take a ensuring the essential unity among Sikhs,
latter have been, and continue to be on the pro-parivar position through their social Hindus and Muslims in undivided Punjab
receiving end. organisations. They "have come to engage is subject to questioning. It is neither
in a plethora of activities that impact on borne out by the unprecedented violence
Beginning with the Ahmadis, then Christians
and Hindus, followed by terrorism between political developments in south Asia, amongst them during and after the parti
Sunnis and Shias and even Deobandis and including lobbies seeking to influence tion of India in 1947 nor by a comparative
Barelwis, there is incontrovertible evidencehostland
in foreign policy vis-a-vis the analysis of the Bengal experience in
great abundance that the search for religious
'homeland', funding homeland political pre-partitioned India. Bengalis too boast
purity has resulted in widening the social
bodies, and in the most extreme cases even of their Bengali language and culture as
cleavages among the people and created
partaking actively in militant transnational
different classes of citizens. The assassination the unifying force across boundaries but
of Salman Taseer is indicative of extremists networks as in the case of A1 Qaida and one cannot ignore the Hindu-Muslim
daring to target the highest officials of the the Taliban" (p 227). riots in undivided Bengal nor the demand
state simply because they dare criticise the
of the Muslims in East Bengal to secede
blasphemy law (p 99).
Politics and Religion in Bangladesh from India. Such social phenomena are
The same juggernaut of Islamic politics Bangladesh, the third largest Muslim much more complex than what Maini
runs through the injustice syndrome country in the world (after Indonesia and would have us believe with his emphasis
against women in Pakistan as well. ThePakistan), has been the subject matter of a on Punjabiat.
only silver lining is the 2006 act aimed at detailed section in Abu Ahmed's book as
Conclusions
protecting women against rape by reform well as in the chapter by Taj Hashmi in
ing the provisions enshrined in the hudood the Ishtiaq Ahmed edited volume. Both
Five chapters are devoted to the countries
laws. Critics, however, continue to com present the complexity of the situation
of south-east Asia. One by Bilveer Singh
plain that the reforms do not go far from a historical perspective, where Bendeals with the region as a whole while the
enough to totally do away with the gali culture on the one hand, with its
remaining four discuss the theme within the
hudood laws (p 116). national contexts of Indonesia (Noorhaidi
emphasis on Bangla language, and Islam
The issue of Pakistani Muslim women's as the dominant religious force on the
Hasan), the Philippines (Raymund Jose G
Quilop),
rights has also been discussed in the chapter other, are vying with each other for space Malaysia (Maznah Mohamad
and Singapore (Eugene K B Tan). While
by Tahmina Rashid, though from a differentin the country's political landscape. The
discussing the religion-politics interface
standpoint. Her paper, "Negotiating rightsrecent and massive inflow of Arab money
through transnational puritan networks", to propagate wahabism has raised the
in south-east Asia, one generally refers to
analyses the roles played by organisationsspectre of Islamic militancy and increas
the role of Islam in Indonesia and Malaysia
like Al-Huda and Tableeghi Jamat in helpingly become a matter of concern for re
Much like south Asia, however, this region
too has witnessed the growing politica
ing women in Pakistan and those in the gional peace. There is fear that its tenta
south Asian diasporas scattered across thecles may in the long run militarise the
relevance of other religious traditions like
Economic & Political weekly EH5E3 January 14, 2012 vol xlvii no 2 35
BOOK REVIEW
The cases of Malaysia and Indonesia, in with symposium papers. Insofar as Abu
Buddhism (Myanmar, Thailand, Cambodia,
Laos, Vietnam), Hinduism (hindraf - addition to the chapters in the Ishtiaq Ahmed's monograph is concerned, at
Hindu Rights Action Front - activities in Ahmed edited volume, have also been dis times he is too sweeping in his conclu
Malaysia), Christianity (Philippines and cussed in Abu Ahmed's monograph. Ac sions. For example, he is too optimistic of
East Timor), and even Sikhism (some evi cording to him, in both countries the reli the Awami League's electoral victory of
dence in Singapore during the Khalistan gion-politics issue has been interspersed 2008 to think that the Islamic forces are
movement). In this context, Singapore's with notions of ethnicity and identity of on the retreat (pp 61-62). Bangladesh poli
"3r" approach is an interesting one. the dominant groups, that is, of the Java tics has demonstrated over and over again
Given that Singapore is a multi-religious nese and the Malays, respectively. that the only predictable thing about it is
society, the overarching philosophy under On the whole, the books are useful for its unpredictability.
pinning the legal and policy thrusts is encap all students of religious politics. In way of
sulated in the belief that religious freedom
criticism one may say that Ishtiaq Ahmed's
intimately requires a thoughtful and cali Partha S Ghosh (parsarg@hotmail.com) is with
brated inter-section of rights, regulation and volume has chapters of uneven length and the South Asian Studies, School of International
responsibility (the 3R) (p 219). content, which is an inherent problem Studies, Jawaharlal Nehru University, New Delhi.
By what criterion then, could the public

Explaining the Mundane, debate over the us-India nuclear agreement
be considered a worthwhile investment of
Excluding the Voices of Dissent time and intellectual effort? Pant is scepti
cal about the practical utility of nuclear
weapons and does not venture into the
SUKUMAR MURALIDHARAN
patchy record of nuclear energy genera
tion in India. Yet he sees the nuclear deal
The US-India Nuclear Pact: Policy, Process as important in symbolic terms, since
lecturer at King's College, London, and Great Power Politics by Harsh V Pant after years of estrangement, it provided
Earlydoesina subtle
thisbut fairly
book, Harsh
effective job V Pant, a (Delhi: Oxford University Press), 2011; pp xii + 150,
Rs450.
a point of convergence for the strategic
of puncturing some of the more fanciful interests of the us and India.
conceptions of nuclear nationalism. "Nuclear
weapons do retain their relevance in inter The analysis in this volume considers Mere Symbolism?
national politics", he writes, "but it is the trajectory of India's negotiations with Do the potential benefits emanating from
increasingly a very limited one". If there is the us, which culminated in what was then this symbolism justify the effort and
any reason why major world powers retain described as a "historic" agreement on political capital invested in bringing the
nuclear arsenals, it is for political purposes nuclear technology and trade. Pant proceeds deal to fruition? Pant recognises that the
rather than with intent to use them. This along three different levels at which he March 2011 Fukushima nuclear disaster in
being the case, "India's nuclear doctrine of sees the deal being consummated: the in Japan may cast a pall over the ambitious
credible minimum deterrence serves its ternational strategic context, the domestic targets drawn up by India's Department of
interests well in the near to medium term".
political domain in the two countries, and Atomic Energy (dae). But then in one of
However, any "over investment either finally, but very importantly, the commit many passages where his own authorial
intellectual or financial, in this realm,
ments and concerns of specific individuals. judgment blends seamlessly into the
might even be counterproductive". Mundane events and processes are often claims made by the political leadership that
rendered profound by merely adding to
No further clarity is offered on the sound negotiated the deal, he pronounces that
them the prefix "nuclear". The "nuclear"
ness of the Indian nuclear doctrine, perhaps
India cannot realistically hope to ignore
dialogue between India and the us con
because that is peripheral to the main focus nuclear power in the future and making elec
of this book. Pant's approach is to study sumed much of the time and attention of the tricity from nuclear power remains far less
the dialogue between the us and India that
strategic establishment through Manmohan damaging to human health than making it
began soon after the Indian nuclear tests from coal, oil, or even lean-burning natural gas.
Singh's first term as Indian prime minister.
in 1998, and gained traction after Prime
The media too caught the infection, trans Since Pant's book was published, the final
Minister Manmohan Singh paid a visit forming
to the public discourse into an echo stages of work on a nuclear power plant
chamber where dissent was given little
the us in July 2005. That visit opened up the nearing completion in Kudankulam in
space and the official dialogue, faithfully
first glimmer of a pathway out of the uneasy Tamil Nadu has been temporarily aban
reproduced. And all this was about a
limbo that India had long inhabited in the doned after people living in the locality laid
global nuclear order. And among the first
weapons capability that virtually everybody siege to it. Early tests of some of the systems
recognised would never be used and an
steps that India needed to take along that at the plant led to waves of anxiety about the
pathway was to clearly distinguish between
energy source that contributed less than 3% security of lives and livelihoods in the near
its military and civilian nuclear facilities.to the country's total electricity generation. neighbourhood. And in Jaitapur on the
= BOOK REVIEW
Konkan coast, plans to build the Kakodkar

world's made in his intervention was capability and national prestige still remains
simply
largest nuclear electricity generation strong in the imagination of the Indian
capathat "long-term energy security"
city in a single location have been and
set the sustenance of India's "minimum
back elite. Its dangerous consequence today is
by a revolt of the people who stand to lose
credible deterrent", required that the fbtr
that the revolt of the silent majority against
farms and homes as the cordon sanitaire forout of the safeguards regime.
be kept the dislocations of a massive expansion of
the monstrously large 9,900 mw Clearly,
plant the dae's discomfiture wasnuclear capacity is ascribed to external
is imposed. agents intent on sabotaging India's rise to
primarily occasioned by the fact that it had
What possible benefit can the nuclear for very long been used to working with
global pre-eminence. Security anxieties had
option bring that other energy sources few internal walls of separation between
their play when at key junctures, stories
cannot? The vision of the early planners its activities. The civilian nuclear effort were featured in sections of the country's
was that the nuclear option was the surest was known to feed into the weapons effortmedia - bearing the obvious imprint of
guarantee of independence and autonomy. both in terms of material transactions self-interested plants by the strategic
This vision had India overcoming the handi and personnel transfers. The fbtr is in a
establishment - suggesting that Pakistan's
caps of a late start and making a rapid nuclear arsenal threatened to outstrip
manner of speaking the atomic age equi
ascent of the learning curve by focusing valent of the scientific fantasy of the
India's and questioning China's good faith.
its scientific efforts narrowly in the nuclear "perpetual motion machine" - it produces
Pant does not pause for long to consider
domain. A three-stage nuclear energy the implications of the us-India nuclear
plutonium fuel even as it burns it. Despite
programme was planned, beginning with deal on the global disarmament dialogue,
having other reactors dedicated exclusively
natural uranium fuel, then moving to fast such as it is. His concern is limited to the
to weapons grade fuel production, the
breeder reactors powered by plutonium impact on the Nuclear Non-Proliferation
dae's ardour in protecting the fbtr from
and finally ending with the cornucopia of international scrutiny spoke of some Treaty
un (npt) and its perceived legitimacy.
electricity generated from thorium. certainty over how "minimum" a nuclear
And this is a question that he passes over
Over a half century since the blueprint deterrent could be for it to be "credible". with an airy generalisation about "inter
was drawn up, the dae revealed that The Indian nuclear weapons doctrine, in national regimes (being) merely reflec
domestic uranium availability was, contrary other words, was well advanced along tions of global power realities".
to the early promise, rather paltry. And this the slippery slope that "deterrence" was This is all very well as far as it goes. But
is after the primary area of uranium mining always known to be. rather than candidly identify the impact
in the country - Jaduguda in present-day Pant rightly observes that the dae's that "global power realities" had on India's
Jharkhand state - had been stricken by an revolt may have been an inconvenience to own conduct, Pant chooses to gloss over
epidemic of ill-health and disease as an the progress of the negotiations, though it the issue. Thus, the two votes that India
apparent consequence of the dae's activities. was ultimately turned to advantage in cast to censure Iran in the International
The Dae figures only incidentally in securing better terms for India. His focus Atomic Energy Agency (iaea) board, for
Pant's diligent effort to understand the is on how the states party to the negotia treaty violations that were if anything,
various actors on the grand panorama of tions sought to manoeuvre and secure borderline in nature, are mentioned in
the nuclear dialogue. It is an omission that their best advantage in the context of the anodyne and offhand terms:
is not surprising, since the department re global configuration of forces. Their con
It is not clear what part us pressure played in
mained discreetly on the sidelines, except duct followed certain idioms of political India's decision...but the Bush administration
for a famous February 2006 outburst by behaviour: realism and its variants. The made it clear that if India voted against the
the Dae head, Anil Kakodkar, about the us was impelled by the need to find a stra us motion, the us Congress would likely not
approve the us-India nuclear agreement.
us "shifting the goalposts" in the nuclear tegic counterweight to growing Chinese
dialogue. At key junctures, the main per influence in the Asian landmass. And India
Quite in contrast with the elite percep
sonalities involved in the dialogue, who tion in India, the nuclear deal was seen
was moved by like motives, its sense of
have all been given due credit in Pant's negotiating purpose strengthened by internationally
a to be in serious ethical
narrative, ensured they had the dae onside. gestalt shift in perceptions from third deficit. The Guardian in London, for in
But the dae's role in the nuclear dialogue world romanticism to robust calculations stance, commented that the nuclear deal
with the us will be remembered basically of realpolitik. In seeking their partly conwas "about breaking rules and expecting
for Kakodkar's insistence that it would not gruent ends, both states negotiated theothers to abide by them". More pictur
under any circumstances, allow its fast delicate terrain of domestic opinion withesquely put, it was about "preaching tem
breeder test reactor (fbtr) at Kalpakkam surefooted ease, ensuring that key con perance from the barstool".
to be designated as a civilian facility, stituencies were placated or neutralised. In advance of the 2005 Bush visit to India,
subject to international safeguards. The New York Times similarly observed
As the cornerstone of the second phase Disregarding Dissent that despite all the accompanying froth,
of India's nuclear energy programme, This beguiling tale of negotiations moving the presidential passage to India was
the FBTR should by any reckoning have towards a happy outcome omits the two "built around a bad nuclear deal". With
been classified as a civilian facility. But crucial factors of nationalist vanity and the deal consummated, the newspaper
the Dae thought differently The point that security anxiety. The bond between nuclearcommented rather acidly, that Bush was
Economic & Political weekly ■ aavi January 14, 2012 vol xlvii no 2 37
BOOK REVIEW
turning out to be Iran's best friend. His in the nuclear deal have seriouslyin the context of the agitation against the
inherent
diminished.
adventure in Iraq, launched on flimsy and Pant sees some features of the Kudankulam plant: "When nuclear compa
fabricated evidence, had transformed that Liability Bill passed by Parliament nies are unwilling to stake their financial
Nuclear
country into a satellite of the Islamic
following the conclusion of the deal as a health on these claims of '100% safety',
Republic next door. And his deal with India disincentive to investors in nuclear how can the government ask local residents
potential
sent "exactly the wrong message",energy.
since A key difficulty he identifies is the to risk their lives?" ("Why Kudankulam Is
consen of the law which in the event of Untenable", The Hindu, 12 November 2011,
Iran's hopes of thwarting a global provision
an accident
sus on its nuclear programme rested on would hold the operator of editorial page).
the the
"convincing the rest of the world that nuclear plant liable as well as the The point needs serious reflection, at a
West (was) guilty of a double standard onof equipment.
vendor time when the strategic establishment,
nuclear issues". This was the inevitable consequence of counting on the reflexive nationalism of
Even if he chooses to ignore the wider the need for compromise within a demo the elite, is seeking to identify a "foreign
context and the ethical dilemmas, Pant's cratic space. But there is abundant irony hand" behind the rising tide of protest
narrative would, to be of value, need to in the reticence of the major vendors to over nuclear location decisions. And for
factor in changing power equations and enter a market where they would have to analysts who focus exclusively on the cur
their impact on the range of benefits bear legal liability for an accident, when rency of power, it is a long overdue lesson
accruing from the nuclear deal. He is con the Dae and its spokespersons have on the gulf that separates popular aspira
cerned that since the Bush regime ended ardently been seeking to foster the impres tions from the overblown claims of nuclear
its tenure in something akin to global sion that modern nuclear power plants are nationalism.
ignominy and was succeeded by one more absolutely fail-safe. As Suvrat Raju and
mindful of the need for consistent stand M V Ramana, physicists and campaigners Sukumar Muralidharan (sukumar.md@gmail
ards in multilateral matters, the prospectsfor nuclear disarmament, recently put it com) is a freelance journalist based in New Delhi.
titled 'Home and ' My Village , are fun

Feminist Perspectives damental to her identity.
Security and Survival The Spell of the Wide World

There are other equally important aspects,
such as Mies's entry into higher education
GABRIELE DIETRICH
and the development of her internation
alist perspective, which she writes of as
The Village and the World: My Life, Our Times by "happy coincidences", somehow "meant
influential ecofeminist theoretician Maria Mies (North Melbourne:SpinifexPress), 2010; to happen" (p 59). Her account of her
The autobiography
and activist, is in many waysof
a pasMaria Mies, the
pp339,Rs890.
school education, which was non-sexist
sionate summary of her views on the state and creative, is moving. This astonishingly
of the world and of her migrations across land with fertile soil, were self-reliant encouraging schooling had to do with
continents, connecting her rural German regarding food, even for large families and the fact that the period between the end
origins with India, south Asia and the drama even to produce a modest surplus. This was of the war in 1945 and 1950 (after which
of destructive neo-liberal globalisation. before the industrialisation and chemicali the reconstruction with Marshal Aid got
This book was first written in German. sation of agriculture and before the creation into full swing) was a time of idealism,
The first part of it deals at length with the of monocultures and specialisation. These in which humanist values gained fresh
rural setting in which Mies grew up as the were farms with pigs, cows and chicken, influence. The French influence due to a
seventh of 12 children in a peasant family and manure was recycled as fertiliser. The temporary occupation also played a role.
in the Eifel, a volcanic hill area, between production of wool from sheep was also Mies show great appreciation for some of
Trier and Cologne near the Belgian border. possible. A widespread artisanal culture her teachers. Her emphasis is on creativity
Her account of village life is extensive, provided for rather far-reaching self-reliance and mutual trust in contrast to today's
conveying a self-reliant, labour-intensive in the village economy. Mass production competitiveness.
lifestyle, interspersed with gregariousness of goods was anyway suspended because Opening up to international perspec
and adventurous exploration. The vivid of the war. It is very instructive to read tives and developing a world horizon
ness of this experience gains in poignancy this childhood experience, which under again had to do with "happy coincidence".
from the events of the second world war, lies the rationale for Mies' later conceptu Mies made the acquaintance of an East
1939-45, and the changes which came alisation of subsistence production as the Pakistani sailor by the name of Zulfikar,
after it. centrepiece of her economic analysis and whom she happened to meet in front
It was generally observed that peasant from there, the development of her "sub of the German Museum in Munich and
families in those years, if they had sufficient sistence perspective". The first two chapters, with whom she "fell in love" (p 78). The
38 January 14, 2012 vol xlvii no 2 CEE9 Economic & Political weekly
BOOK REVIEW
relationship remained platonic andadvised

theirMies on how to research the social Oppression and Emancipation. This was
background of her students. At the samepublished in English as Indian Women and
love was poured into letters for years.
Marriage was ruled out by Mies oneven as Mies admires Karve's couragePatriarchy (New Delhi: Concept Publishers).
time,
in participating in the freedom struggle and Mies secured a job at the University of
grounds of religion. This is quite strange,
her reform movements, she notes that Applied Sciences in Cologne and taught
in social
because Mies makes clear throughout
memoir that the Roman Catholicism in in her own relationships with her husband Social Pedagogy using Paulo Freire's
cul family, Karve was a conservative. Mies methods from Pedagogy of the Oppressed.
which she was brought up was more a and
also got exposed to the anti-brahmin reform Her field of specialisation was sociology of
tural background than a religious faith. But
movement of Mahatma Phule and Savitri
she could not imagine herself bringing up the family and sociology of social minorities.
children who were Muslim and not Roman Phule, and took some interest in spiritual Mies always experienced herself as a
Catholic. She summed up her religious pursuits, without making much headway. pioneer. For example, her use of the Freire's
background in the following quote (p 55): methods of conscientisation sounds highly
Students' Movement radical. There seems to be little realisation
Although I left the Catholic Church later on, I
and Women's Movement that Freire's methods were in fashion in
know that my parents' absolute faith in God,
their conscious awareness that all of us were In 1968, Mies returned to Germanythe
andearly
de 1970s. Indira Gandhi encouraged
under the particular protection of Holy Mary, cided to study sociology under Rene
literacy
Koenig programmes a la Freire in the mid
most probably formed the basis for my trust in Cologne. This gave her an opportunity
1970s, tonever mind the Emergency. The
in life. Deep within I believe that nothing bad
venture
pursue a doctorate. She also got drawn intofizzled out because the alphabets
will happen to me. Even if this belief was not
always - and will not always - be confirmed
of at
the students movement, which was ourits
Indian languages did not lend
by real events, it did save me from fear, de themselves to literacy training the way
height in 1968 and was exposed to Marxism
spondency and depression. Without this cour and thinkers of the Frankfurt School,
Spanish
espe
and Portuguese do. However, front
age to live I would not have so unhesitatingly cially Max Horkheimer, Theodor W organisations
Adorno, of the Communist Party of
thrown myself into life, I would not have un India (Marxist) (cpi-m) as well as non
Juergen Habermas, Wilhelm Reich and Erich
dertaken such bold projects as I did.
Fromm. She was also influenced bygovernmental
the ex organisations (ngos) success
Ultimately, religion does not appear to ample of student leaders in Berlin, fully used these methods for years. In a
by the
have been a decisive factor; the point was death of Benno Ohnesorg, who was literate
shot by Germany, politically shaped by the
to sustain the newfound freedom to lead a cold war, these participatory and action
police, and by the attack on Rudi Dutschke
life of one's own. There was also Mies' oriented
that followed a media campaign against him. methods must obviously have
attraction to the countries of south Asia - It was through the Cologne Night
appeared as a novelty and a challenge.
Mies
India, Pakistan and what was then Ceylon. Prayer, a radical Christian group led byalso got involved in the setting
Mies underwent teachers training at Dorothee Soelle that Mies started working
up of a women's shelter, and anti-plastic
campaigns
the Academy of Education in Koblenz and on emancipation of women and started to in the university made an
took on a teaching job. She also saw herself discover patriarchy as a structure andona her. Her work with the women's
impact
as a budding artist. She studied English system. She succeeded in pursuing her
shelter was independent and put pressure
and German to become a certified teacher doctoral studies on Indian Women between on the city administration in Cologne to
in these languages. She participated in
international camps of Service Civil Inter
national (International Civil Service), a Ear to the Ground navayana
French venture for international under
Writings on Class and Caste mmm*™
standing. Here she gained the insight that K.BMGOPAL
"a less-than-perfect-reality is better than Paperback 1188 pages 16 * 9.25 in | Rs 550
a romantic dream" (p 95), and this was

Balagopal's writings, from the early 1980s till he died in 2009, offer us a rare insig
what led her to apply for a lecturer's post the making of modern India. Civil rights work provided Balagopal the cause and con
at the Goethe Institute in Pune (then Poona) to engage with history, the public sphere and political change. He wrote through n
three tumultuous decades: on encounter deaths; struggles of agricultural labourers;

in order to satisfy her longing to see the
shifting dynamics of class and caste in the 1980s and thereafter in Andhra Pradesh
world and contribute to "development". venality and tyranny of the Indian state; on the importance ofre-figuring the cast
While teaching German in Pune, Mies as one that denied the right of civil existence to vast numbers of its constituents;
centrality one ought to grant patriarchy in considerations of social injustice; the de

realised that many of her female students
tive logic of development that emerged in the India of the 1990s, dishonouring its
used their studies to escape arranged 'As a human rights u/orker active since right to life, liberty and livelihood. This volume comprises essays largely drawn fr
marriages and extend the space of freedom 1981, and slightly older than Balaijopa!, I to which he was a regular contributor.
afforded them. She benefited from the tra remember him as a magical figure.The writ Balagopal was too self-effacing to put together his writings into a volume. But it is
through his writings that his legacy lives on, giving us a roadmap for future strug
dition that privileged German in languageings in this volume help inteipret the often
studies in Pune, breaking the monopoly ofchaotic developments in Andhra Pradesh, Distributed by IPO Alternativa New Delhi Ph Ol I-2M92M0 ipd.altemativesOgmail.com
and provide a model tool for understanding Hyderabad Book Trust Ph 040-23521849 hyderabadbooktmst9gmail.com
English. She also narrates her interactions Buy online: swb.co.in and Flipkartcom
other regional realities of India.'
with Iravati Karve, who was known as an -BINAYAK SEN Navayana Publishing 155,2nd Floor, Shahpurjat New Delhi I10049 Ph Ol 1-26494795
anthropologist of international standing, and
Economic & Political weekly ESQ January 14, 2012 VOL XLVII NO 2 39
BOOK REVIEW =
From
acknowledge existing violence and to Debates
sup the mid-1970s, Mies teamed up on Household Labour
with Claudia von Werlhof and Veronika
port participatory approaches to problem and Housewifisation
Bennholdt-Thomsen in Bielefeld. New re
solving. It also led to new action-oriented Mies' association with Claudia von Werlhof
participatory research projects. search methods were also worked out in and Veronika Bennholdt-Thomsen led to a
deepening of the debate on household

Conceptually, deepening the origin and Nijmegen in the Netherlands for what was
labour and its extension into the sub
history of the family became an important called "Witches' College", alluding to the
project for her. Mies tries to give a feel targeting of women as witches by the
sistence approach. At the same time, the
of this period when numerous women's Inquisition during the middle ages. The
concept of "housewifisation" was developed
groups were solving practical problems seven criteria which emerged from these
and its connection with the survival struggle
in agriculture was drawn. Based on the
while at the same time delving into Marx efforts became methodological postulates
ideas of Rosa Luxemburg, these scholars
and Engels and evolving a feminist critique. for women's studies (p 155, note 4). They
In Mies' perception, the women's move questioned detached and "objective" worked
re out the continuous need of capi
talism for internal colonies. These debates
ment just "happened" like a birth after search, the hierarchy between researcher
gestation (p 143). But its participants were and research "object", promoted partici
are well known in India because of publi
aghast when they discovered how the patory and change-oriented approaches,
cation of the book Women: The Last Colony
struggles of former generations had fallen conscientisation, the recording of women's
(1988) by Zed Books and Kali for Women.
into oblivion (p 144): experiences and the appropriation of thisClaudia von Werlhof's research was in
The problems concerning women becoming history. Mies takes pride in the spreadcentral
of America, and Veronika Bennholdt
apparent in this context necessarily resulted the paradigm encapsulated in the seven
Thomsen had also worked in Mexico. Thus,
in a renewed search for valid answers for
Methodological Postulates, which have been
the frame of reference was quite broad. It
age-old questions of humanity, for instance,
translated into many languages and were dealt with production processes centred
when did this patriarchal and misogynic
last
system begin to exist? Why has it continued republished by Sage in 2006 as "A around
Global self-reliance and food security, and
related to some extent to local markets,
Perspective on Research" in the Handbook
for so long? Why does women's work, in par
ticular housework, have no value? Does this
of Feminist Research, edited by Sharlene
but did not focus on wider exchange of
system exist throughout the world? Or is it
Nagy Hesse-Biber, enhanced by the expe
commodities. Mies and her colleagues ques
an invention of Capitalism? Such theoretical
tioned whether the subsistence sector was
rience of the anti-globalisation movement.
questions were not the result of academic
studies - although women academics were Here again, the emphasis was on participre-capitalist and "backward", or whether it
involved in finding answers to them. pation, experience, action. was a basic sector of the economy, necessary
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Using this framework, it talks about the socio
Liberation Tigers of Tamil Eelam (LTTE), an
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Mumbai through a collection of narratives of
one of the deadliest terrorist groups globally.
the people affected by the communal riots of
1992-93. Drawing on narrative life histories, the book
canvasses three decades of ethno-nationalist war in Sri Lanka contributing
The author uses a novel approach, combining historical records from the pre
to a major social change for Tamil women in Jaffna. It identifies the LTTE
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as providing an 'alternative' familial kinship founded upon friendship, which
Hindus living in the city. The book also looks into the political manipulations
transcends caste and religion. The book reveals that the LITE combatant
that ordinary people of both communities alike are subjected to by the ruling
woman's paradoxical equality may differ from Western feminist notions of
powers and political parties. This volume form a bridge between the past and
emancipation, but represents a profound change within its own patriarchal
present of Mumbai in order to better understand the relations between the
society.
two communities.
2012 • 268 pages • ? 595 (Hardback)
2012 • 360 pages • ? 595 (Hardback)
*To avail discount please write to marketing@sagepub.in with code EPWJAN0212
www.sagepub.in Los Angeles • London ■ New Delhi • Singapore ■ Washington DC
40 January 14, 2012 vol xlvii no 2 ÖEE2 Economic & Political weekly
BOOK REVIEW
for food security and self-reliance.

TheThe main
Last Colony, Mies further worked preoccupation is with the women's
out
dominant Marxist categories did notthis trend towards housewifisation and
quite group Progressive Organisation of Women
grasp the relevance of this sector. extended it to understand the concept of(pow) and the discrepancies between
"flexible labour", which includes even progressive political orientations and the
Only in recent years has the relevance
of the informal or unorganised sector
online labour for information technologytendency to adjust to an arranged marriage
companies
been recognised. Under globalisation, the in "developed" countries. system. She goes on to give a picture of the
unorganised sector has grown to 94% Mies'
of work in the Telangana region, in
extraordinary power exercised during the
Emergency in 1975-77, when the Mainte
Bhongir, was carried out with the women
the Indian working class. The destruction
sangams
of agriculture and forest economy leads to nance
of an ngo called cross with theof Internal Security Act (misa) was
massive migration, which, in turn,help used for arbitrary arrests. Mies feels that
of action-oriented women's meetings.
often
women's
These meetings vocalised caste and
leads to bonded labour. Today, large-scale class anti-patriarchal protests were
differences
migration erodes the hard-won rights of often dealt with more harshly than revolts
in role plays. The most crucial
practical
workers' organisations. Recognising the insight that came from against
these class and imperialism.
sangams was that a woman must have
linkages between subsistence agriculture, This was the time when Mies got married
thethe
workers in the unorganised sector and to
right to stay in her home and nother
beformer student Sarai Sarkar, who
specific contribution of women indriven was was
these out. Yet, this acknowledgement a member of the students movement
sectors needs more work. Today, the

legislated and also taught German in Hyderabad.
only in the Domestic Violence
Act of 2005. At the conceptual level,
destruction of the basics of life through She the
points out the class differences between
ecological onslaught and the systematic his intellectual Bengali family background
main perspective is summarised as follows
(p 174, emphasis as in the original): from Calcutta and her own rural back
removal and even annihilation of subsistence
producers, especially in adivasi and tribal ground. His real-life solidarity with her,
Our main theory was that subsistence production
which led him to give up his job and live
areas, is a burning problem in India. - the production of life - is not only the perma
with her in Germany, gets less space than
A crucial underlying conceptualisation nent precondition for all forms of production,
of the production of life and livelihood including capitalist production, but it repre
the earlier love story with Zulfikar the sailor.
sents the only, viable perspective for the future.
needs to be explored as fundamental to the
existence of the working classes and human Subsistence Perspective
While Mies was successful in spreading
In a way, Chapter 9, which develops sub
society as a whole. It is not sufficient to cate her writings in the English-speaking world,
gorise this sphere merely as "reproductive"her friends von Werlhof and Bennholdt sistence as a perspective for the future of
while production of goods for the market is Thomsen were faced with much ostracism the world, is the core chapter of the book.
seen as productive work. The term subsist in the German-speaking academic world. Mies defines subsistence production, which
ence production may not have made these The pyramidal depiction of the capitalist aims at production of life, in contrast to
linkages sufficiently visible. At the samepatriarchal economy, which includes the commodity and surplus value produc
time, however, the work of the subsistenceinformal sector, subsistence workers, tion. In contrast, for capitalism, life is
school has made a lasting contribution. peasants, craft workers, housework, colo only a coincidental side effect (p 190):
In 1977, Mies got a small sum for further nies (external and internal) and, at the It is typical of the capitalist industrial system
research in India from the International bottom, nature, is very applicable to that it declares everything that it wants to
Labour Organisation (ilo). This enabled herpresent-day India, except that today, the exploit free of charge as part of nature, a
research on the lace workers of Narsapur,onslaught of companies and international natural resource. To this belongs the house
financial institutions is so violent that work of women, as well as the work of peas
carried out in West Godavari and partly in
ants in the third world, but also the produc
Telangana and published by Zed Press inlocal communities and nature are literally
tivity of all nature.
1982 as The Lace Makers of Narsapur: Indestroyed. This is not made visible in Mies'
dian Housewives Produce for the World The work of women - childbearing and
work. The present situation of adivasis,
small peasants and tribal populationsrearing,
Market. Lacemaking was introduced into in housework, care for the elderly -
north-east India, makes us aware that
these areas by Irish nuns in the beginning all the wage-less work of "reproduction"
has been taken for granted as a "free
women are not necessarily the last colony.
of the 19th century and grew into a house
hold industry. Women worked in total The chapter on Return to India tries
good", together with small farming, peas
isolation at abominably low wages, while ant subsistence, production in the colonies
more explicitly to explain the Indian situa
tion to a western audience, that may and
profits from exports were huge. Trade unions be gifts of nature like the sun and air.
were ruled out; women were confined to The male-female relationship is under
quite ignorant about the circumstances.
stood in the context of this colonial rela
Mies worked in Andhra Pradesh during
making piecemeal fragments of a larger
work, such as a single flower, instead of 1978-79.
a tionship: "equality" can only mean rising
The chapter gives a brief overview
whole tablecloth. The underlying assump
of the history of the Telangana uprising,
to the height of the coloniser.
tion was that since these women were The subsistence perspective implies the
the splits in the Indian left and the emer
anyway "housewives", with husbands as of the Naxalite movement, without
gence abolition of all such colonial relationships,
going
"breadwinners", they would work for a into an analysis of the different
and also presupposes a minimum survival
tendencies of these organisations. Her
supplementary income. Later, in Women: of the commons, a willingness to carry out
Economic & Political weekly E3SZ2 January 14, 2012 vol xlvii no 2 41
BOOK REVIEW =
community work without wages and infreedom in necessity, not freedomforeign

from students to investigate women's
mutual help. Farming policies in industrianecessity. In short (p 198): groups in the Netherlands and to critically
lised countries have systematically aboli Subsistence does not mean poverty and understand the constraints on women in
shed subsistence production, though this regression, but abundance and a new form western society.
abolition has damaged food sovereignty, of internationalism based on reciprocity, In her enthusiasm to describe her own
biodiversity and the integrity of land new communities and new social conditions. pioneering work, Mies sometimes misses
scapes. Mies shows how subsistence farm out on acknowledging the background
ing was abolished in the United States (us) Women in Development and contribution of her colleagues. She
in the 1930s under President Franklin D The rest of the book covers Mies s two introduces Kumari Jayawardena, without
Roosevelt. In Germany, small farms wereyears at the Institute of Social Studies
noting her background as a leading intel
abolished in favour of future industriali lectual and labour historian of Sri Lanka,
(iss) in the Hague, campaigns against
sation. In so-called third world countries, and only mentions that "her husband
genetic engineering, the move from the
such policies have led to polarisation women's peace movement to ecofeminism Ambassador in Brussels" (p 20). This
was
and the international struggle against
between the rich and the poor, migration constitutes a slip that should have been
and farmers suicides. neo-liberal globalisation. The Women'savoided. She does, however, describe
In contrast, Mies pleads for food sover Studies course at iss, which was what
later she learned from her students. It
should
eignty. She develops the implications of her attended by quite a few Indian feminists, be pointed out, however, that
Chhaya Datar's thesis was not simply on
argument in a question and answer style, was an outcome of follow up to the United
addressed to an audience not necessarily Nations (un) First World Conference Nipani
on workers, but was also a feminist
familiar with the underlying conceptuali Women in 1975. Mies was offered the
critique of Marxist and Socialist conceptu
sation. She shows how "mainstreaming responsibility of building up a programme
alisations of the women's question. It would
women" has led to absorption of women for women in development studies. haveOn been enriching to acknowledge her
in special economic zones (sezs) under two-year leave from the Universityconceptual
of contribution.
adverse conditions, while companies grab Applied Sciences in Cologne for this purThe Women's Studies course collided
land. She shows how workers still connected pose, she again launched into her parti
with the more conservative positions in
to the land, water and some self-reliant cipatory methods and gathered a com
the iss. There were attempts to "integrate"
food production and community support mitted team of students from different and absorb it into other courses, prevented
are less vulnerable than uprooted workers countries like India, Bangladesh, Ethiopia,by the determined resistance of students.
in the unorganised sector and migrants. South Africa, Argentina and Dutch students The slogan was "Culture divides us!
She also shows the connection with debt admitted to interact with. She enabled the Struggle unites us!" a lesson relevant in
and war. As examples, Mies discusses
peasant movements in Bangladesh and
LefWfijgil
connects them with alternative forms in
organic agriculture, developed in Germany Tke A granan The Many Careers of D.D. Kosambi
and the us. These experiments are charac
Question in Critical Essays
terised by community support and resto
ration of the commons.
Socialist Register 2012 Marx and his Edited by D.N. Jha
The Crisis and the Left 978 93-80118-06-2, PB, pp. 203,
In "developed" countries, Mies advocates Edited by Leo Panitch, Greg Successors ? 275/$ 15
For members: ? 192.501 $ 10.50
community gardening in public places,Albo,
r
Vivek Chibber
emphasising the abundance of nature and978-93-80118-02-4, PB, pp.
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For members: ? 245 / $ 10.50
away with the misconception that the sub
1$
t'J-J L, U» R~l
sistence economy is "primitive" and clari
fies that the idea is not one of a closed
CRISIS
economy, which excludes trade. She ar AND The Agrarian Question in Marx
THE and his Successors
gues for an approach to industry and trade LEFT
Volume II
that would preserve food security and bio
Edited by Utsa Patnaik
diversity and makes production of life and
978 93 80118 01 7, HC, pp.319,
livelihood a central value. This means a
^ 500 / $ 25
strong no to capitalist colonial production, For members: ? 3501 $ 17.50
and a central focus on ecology. According

to Mies, the subsistence perspective can
LeftWord Books, 12 Rajendra Prasad Road, New Delhi 110001
be applied in both urban and rural situa
Order and pay online at www.leftword.com. Chequesldrafts/MOs should be
tions. It implies a re-evaluation of the
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42 January 14, 2012 vol xlvii no 2 GEE3 Economic & Political weekly
BOOK REVIEW
to the North Atlantic Treaty Organisation to anti-capitalist feminism, based on a

contemporary times, when identity politics
(nato) decision in the early 1980s to
often gets in the way of common struggle. village-centred ecological perspective that
deploy
The training these women received helped nuclear weapons against the "ene both authors hold in common. Mies' care
my
them to get a deeper understanding of in the East". This campaign included fully worked out theoretical position has
women's liberation, which was indeed the protest against the military base in not been incorporated very much into the
Greenham Commons in the United King biography, which mainly popularises the
useful in the positions of responsibility
they were able to take upon return todom (uk), where Cruise missiles were to subsistence perspective. The more thorough
their
stationed. Though these struggles had position in Mies' conceptual work is not
be that
respective countries. It is noteworthy
the substance of this course has endured only limited success, they did strengthen fully evident here.
over the past decades, though Mies returned the peace movement and lead to wider The following chapters deal with Diverse
to her job in Cologne after only two years. ecological awareness. Women for Diversity (dwd), a campaign for
Of particular interest and relevance is
food security, sovereignty and biodiversity,
Ecofeminism and Peace Movement the strong stand against nuclear technodealing with production and consumption.
logy
From the mid-1980s, Mies got involved inin general taken by many feminist This campaign influenced the Food and
campaigns against genetic engineering, movements, because they realised that
Agriculture Organisation (fao) food policies.
this
starting off with in vitro fertilisation andtechnology was rooted in Farida Aktar of the Unnayan Bikalper
weapons
technology and connected with the
test tube babies and then the rent-a-womb Nitinirdharoni Gobeshona (ubinig) in
violence of capitalism and industrialism
phenomenon. These issues have not found Bangladesh took a leading role in organis
in general, including the state capitalisting the Women's Day of Food at the fao
massive interest in the Indian women's
form of "socialism" in eastern Europe.summit in November 1996. The dwd pro
movement and are now coming to the fore
more broadly, but mostly in the contextThis
of awareness among feminists dated
testers were present in different agitations
back to the late 1970s and reached much
the campaigns against sex determination against World Trade Organisation (wto),
and sex-selective abortion. further back in the general peace moveGeneral Agreement on Tariffs and Trade
The work of the Feminist International (gatt), World Economic Forum (wef),
ment. In her account of the women's peace
Network of Resistance to Reproductive movement, Mies presents many women General Agreement on Trade in Services
and Genetic Engineering (finrage) has activists who made a dent against (gats) and G-7 summits. Ultimately, the
milita
made important contributions worldwide. rism. She also attacks Alice Schwarzer,struggle lost its edge and while the general
It is interesting to note that a German the editor of the famous feminist journalpolicy direction remained unchanged, only
institution, the Gene Archive in Essen, Emma, for her position that womenestablished voices like Vandana Shiva or
Arundhati Roy were heard.
which connected fascist eugenics under should join the combat forces. This again
Hitler and the interests of corporates is a position that Indian feminists have
today, was raided by the police, because it hardly discussed. Against Mainstreaming Women
was supposedly close to "terrorism" Mies moved from intense involvement Mies takes a strong and relevant position
(p 314). Mies observes (p 225, emphasis in the European peace movement, much ofagainst mainstreaming women, the attempt
hers) that "[w]e considered gene technology it spearheaded by feminists, to eco-feminism. of capitalist forces to get women "out of
to be a fundamentally misguided scientific Since she teamed up with Vandana Shiva, the margins" and to develop their "human
path". In 1985, a conference in Bonn led to her works in this field are well known in capital". She describes a conference on
wider awareness, but only the Green Par India. At the same time, the criticism fromwomen and the economy in Amsterdam
ty supported this line. In 1985, the fin the women's movement of Shiva's for which American Nobel Laureate Gary
position
rage emergency conference in Sweden has also overshadowed the reception of Becker was flown in to preach the gospel
also took place, and led to a network in Mies' views. Mies may not have of
recognised mainstreaming. She points out how this
over 35 countries. the reluctance of forces within the Indian manipulation of women's life cycles was
Mies also was involved in the collective women's movement to accept Shiva, given instantly recognised by the older genera
publishing of a journal of feminist theorytheir critique of the religious implications tion of feminists, while the younger gen
and praxis for women and describes how,of the latter's views on "Shakti", and the eration felt that integration into the main
after over 20 years, the journal had toconcern that this could lead to a position stream was desirable, as they had not wit
stop publication, because conflicts overtoo close to Hindutva forces. In fact, Mies nessed the debates and struggles on
democratic decision-making and moneyin an earlier footnote in the book (p 145) household labour of the 1970s.
could no longer be resolved. She believesclaims that Kali and Durga have been Mies shows how the strategy of capital
that this ending also had to do with therepresentations of the mother goddess, accompanies the dismantling of the
spread of postmodernism and "gender symbolically owned by the women's welfare state and the co-optation of
mainstreaming", which served as vehiclesmovement. This is again a highly contest women into the capitalist mainstream. She
for integrating women into the capitalistable assumption. then goes into some of the more hearten
marketplace. On the other hand, Mies' extensive study ing struggles of the late 1990s like the
It is also instructive to read about the
on patriarchy and accumulation on a world struggle against Multilateral Agreement
scale has influenced Shiva's "conversion"
peace movement, which arose in response on Investment (mai) and the Battle of
Economic & Political weekly EH353 January 14, 2012 vol xlvii no 2 43
BOOK REVIEW i
Seattle in 1999. She calls these struggles

accompanying privatisation of While this book is rooted in the western
"The University of the Streets" (p 263).
are aggravating. rural situation, it has bridged vast distances,
She counterposes these struggles withThe book ends with the question especially
of a with the Indian subcontinent.
the Nato intervention in Yugoslavianewand
vision for the "good life" beyond
The author has lived her life with an open
consumerism
the wars in Afghanistan and Iraq. But she and capitalism, whichmind,
has and enthusiasm for social justice
also highlights the ideological onslaught
become like a religion, the opiate ofand
thepeople's participation. However, she
and the cutting down of spaces for debate has not fully addressed organisational
people. Mies tries to dismantle the "there
in this period. is no alternative" or tina effect. She questions and the role of the state. While
encourages
On the flipside is the foundation of new gardening and self-reliant
women's organisations have taken note of
critical forces like Association pour la
agriculture, wherever she goes. Mies' activist and conceptual contributions,
Taxation des Transactions pour l'AideThe
auxbook ends with the realisation that Marxists have not responded, because sub
Mies'of
Citoyens (Association for the Taxation campaign life has come to an end,sistence is not a topic of interest for them.
Financial Transactions for the Aid ofas age has taken its toll. In the end, she The campaign for food security and right
Citizens) or attac (for raising taxes on
describes a time when electricity and to life nowadays emphasises the right of
the money transfers of companies in the were disrupted in her village in the peasants to grow their own food, stressing
water
Eifel, coinciding with an earthquake infood sovereignty. A mode of production
form of a Tobin tax). Including a feminist
Chile, where her brother lives. All commuwith food security and people's right over
dimension into these struggles was difficult.
She also compares the World Social Forum
nication broke down temporarily, but local resources at its heart remains a far cry.
(wsf) to the World Economic Forum in
communities came together and tried to
Davos (wef). But the contribution of cope.
suchThe last three pages consist of the
Gabriele Dietrich (reach.gabriele@gmail.com)
conferences is very limited, Mies insists, at Appeal for women's food security,
Leipzig is a scholar and activist based in Madurai, a
food sovereignty and against biotechnoveteran of the women's movement, and has
the same time that issues of privatisation
of water, the spread of warfare, andlogy
theand patents on life. been involved in many feminist debates.
Books Received
Addicott, Jeffrey F, Md Jahid Hossain Bhuiyan Gerth,
and Karl (2011); As China Goes, So Goes the World: Pradhan, K L (2011); Thapa Politics in Nepal (New Delhi:
Tareq M R Chowdury (2011); Globalisation, Inter How Chinese Consumers Are Transforming Concept Publishing Company); pp xvi + 278, Rs 850.
national Law, and Human Rights (New Delhi: Everything; Hill and Wang, a Division of Farrar,
Oxford University Press); pp xxi + 234, Rs 695. Straus and Giroux, New York; pp 258, $ 16. Rao, Srinivasa (2011); Advaita: A Contemporary
Critique (New Delhi: Oxford University Press);
Agrawal, P K and R K Bhatt (2011); Globalisation: India
Grewal, J S (2010); Love and Gender in the Rig Veda pp ix + 228, Rs 695.
and the World (New Delhi: Concept Publishing and Medieval Punjabi Literature; Indian Institute
Company); pp viii + 198, Rs 500. of Advanced Study, Shimla; pp 90, Rs 195. RayChaudhury, Sabyasachi Basu and Ishita Dey, ed.
(2011); Sustainability of Rights after Globalisation
Jones, Peter, Debra Miles, Abraham Francis and
Anand, A S and A V Afonso, ed. (2011); Human Rights (New Delhi: Sage Publications); pp xxi + 258,
in India: Theory and Practice; Indian Institute Rajeev S P, ed. (2011); Eco-Social Justice: Issues, Rs 795
of Advanced Study, Shimla; pp xxxiii + 400, Challenges and Ways Forward (Bangalore: Books
Rs 695. for Change); pp x + 372, Rs 485. Roy, Pabitrakumar (2011); Three Lectures on Loving
Kindness; Indian Institute of Advanced Study,
Banerji, Arup (2011); Old Routes: North Indian Nomads Joshi, Shashi (2010); Mission, Religion and Caste: Themes Shimla; pp 64, Rs 150.
and Bankers in Afghan, Uzbek and Russian Lands in the History of Christianity in India; Indian Insti
(Gurgaon: Three Essays Collective); pp 262, tute of Advanced Study, Shimla; pp 188, Rs 390. Samuel, John, K N Panikkar, Kancha Ilaiah, Ambrose
Rs 450. Pinto, Seema Mustafa and John Dayal (2011); Just
Kaminsky, Leah, ed. (2011); Differential Diagnosis; Know Corruption (Bangalore: Books for Change);
Benhabib, Seyla (2011); Dignity in Adversity: Human (Gurgaon: Hachette India); pp 223, Rs 350. pp 83, Rs 175.
Rights in Troubled Times (Cambridge: Polity
Press); pp xi + 298, £55 (hb). Kar, Bijayananda (2011); Secularism and National Inte Sharma, Mukul (2011); Green and Saffron: Hindu
gration (with special reference to Orissa); Indian Nationalism and Indian Environmental Politics
Chandra, Satish (2011); State, Society, and. Culture in Institute of Advanced Study, Shimla; pp xviii + 156, (Ranikhet: Permanent Black); pp xviii + 300, Rs 795.
Indian History (New Delhi: Oxford University Rs 350.
Press); pp xii + 191, Rs 650. Singh, Randhir (2011); The Right Lesson and the Wrong
Kohli, Harinder S, Ashok Sharma and Anil Sood, ed. Conclusion (Delhi: Aakar Books); pp 278, Rs 495.
De, Anuradha, Reetika Khera, Meera Samson and (2011); Asia 2050: Realising the Asian Century
A K Shiva Kumar (2011); Probe Revisited: A Report (New Delhi: Sage Publications); pp xxvi + 381, - (2oii); The World after the Collapse of the Soviet
on Elementary Education in India (New Delhi: Rs 2,500. Union (Delhi: Aakar Books); pp 598, Rs 1,095.
Oxford University Press); pp x + 116, Rs 345.
Kotiswaran, Prabha (2011); Dangerous Sex, Invisible - (2oii); What Was Built and What Failed in the Soviet
Devi, Thockchom Binarani (2011); Women's Movement Labour: Sex Work and the Law in India (New Del Union (Delhi: Aakar Books); pp 658, Rs 1,195.
in Manipur (New Delhi: Concept Publishing hi: Oxford University Press); pp xii + 298, Rs 695.
Company); pp xviii + 232, Rs 600. Subbarayalu, Y (2011); South India under the Cholas
Mukherjee, Arpita, Parthapratim Pal, Subrata Mitra, (New Delhi: Oxford University Press); pp xvi + 274,
Dubash, Navroz K, ed. (2011); Handbook of Climate Ramneet Goswami and Souvik Dutta (2011); Rs 675.
Change and India: Development, Politics and Facilitating Trade and Global Competitiveness:
Governance (New Delhi: Oxford University Press); Express Delivery Services in India (New Delhi: Trautmann, Thomas R (2011); India: Brief History of a
pp xxiv + 400, Rs 1,250. Oxford University Press); pp xix + 287, Rs 675. Civilisation (New Delhi: Oxford University Press);
pp xv + 245, Rs 295.
Fischlin, Daniel and Martha Nandorfy (2011); The Patel, Hitendra (2011); Communalism & the Intelligentsia
Community of Rights: The Rights of Community in Bihar, 1870-1930: Shaping Caste, Community Vidyasagar, Ishvarchandra (2011); Hindu Widow
(New Delhi: Oxford University Press); pp xiv + 327, and Nationhood (Hyderabad: Orient Blackswan); Marriage (New York: Columbia University Press);
Rs 850. pp 253, Rs 645 pp xxiv + 242, price not indicated.
PERSPECTIVES
The Idea of Happiness

of the globe in the power of human volition
and the developing technology of human
self-engineering as by-products of the ideo
logy of individualism. These changes have
ASHIS NANDY pushed many to believe that it is up to
them, individually, to do something about
What good is happiness if it cannot buy
The idea of happiness has their happiness, that happiness cannot hap
you money?
pen, nor can it be given. It has to be earned
changed. It has emerged as - Attributed to Zsa Zsa Gabor
or acquired. This self-conscious, deter
a measurable, autonomous,
1
mined search for happiness has gradually
manageable, psychological transformed the idea of happiness from a
variable in the global middleWellington College at Crowthorne, mental state to an objectified quality of life
class culture. The self-conscious,

In 2007, one ofthat
announced Britain's leading
it would offerschools,
classes that can be attained the way an athlete -
on happiness to combat materialism and after training under specialists and going
determined search for happiness
celebrity obsession.1 The following year, through a strict regimen of exercises and
has gradually transformed New
theScientist summarised the results of a diet - wins a medal in a track meet.
idea of happiness from a mental

65-country survey to show that the highest I am tempted to trace this change in
state to an objectified quality of proportion of happy persons lived in, of the idea of happiness to the special style of
all places, Nigeria, followed by Mexico, death-denial encouraged by late 20th cen
life that can be attained the way
Venezuela, El Salvador and Puerto Rico. It tury capitalism. But that would be a simpli
an athlete after training under
is true that happiness surveys differ in their fication. I agree with Ernest Becker that
specialists and going through a
findings. According to some, happiness has there is an element of death denial in all
societies - indeed, societies can be seen as
strict regimen of exercisesmuch
andto do with prosperity, levels of develop
ment and healthcare; according to others, systems of death denial - but under fully
diet wins a medal in a track meet.
these things do not matter. It is the second set secular, successful capitalist societies that
Might it be that the sense of
that has produced countries like Vanuatu, a denial takes a special form.3 In these socie
well-being of a mentally healthy
former happiest country in the world that ties a tacit, gnawing fear of death throws
most
person shows its robustness byhave not heard of, and last year's into relief a form of denial that rejects the
world champion in happiness, Bangladesh, traditional belief in many societies that the
being able to live with some
which many believe could well qualify as philosophically minded must think of noth
amount of unhappiness and
onewhat
of the world's unhappiest countries.2 In ing less than death as the starting point of
is commonly seen as ill-health?
comparison, some of the richest nations all philosophy. In a fully secularised society,
languish near the bottom of the list. fear of death cannot but be a constant
However, I am not concerned here with presence in everyday life and the idea of an
comparative happiness or the methodology afterlife a fragile defence. We shall briefly
of studying happiness. I am concerned with return to this issue again.
the emergence of happiness as a measur This is a reversal. At one stage, Protestant
able, autonomous, manageable, psycho ethics, sired by Puritanism and widely seen
logical variable in the global middle-class as the engine of industrial capitalism, sought
culture. And the two events can be read as to purge happiness as a major goal of life.
This is based on the 13th Kappen Memorial
parts of the same story. If the first factoid - Puritanism tended to equate the search for
Lecture, delivered at Bangalore on 22
discovery of happiness as a teachable dis happiness with hedonism. Max Weber em
September 2011.
cipline
It has grown out of a trialogue among - suggests that in some parts of the phasised the first part of the story, Karl Marx
Tamotsu
world happiness
Aoki, Nur Yalman, and the author, organised is becoming a realm of the second. Marx called political economy
some years ago by Iwanami Shoten attraining,
Tokyo.guidance and expertise, the second a "science of wealth" and "a science of mar
The discussion spilled into a conference on
reaffirms the ancient "self-consoling" "naive" vellous industry" that was "simultaneously
"Culture and Hegemony: Politics of Culture
in the Age of Globalisation", organised by
belief that you cannot always be happy the science of denial, of want, of thrift, of
just byand
GRIPS project of the University of Tokyo virtue of being wealthy, secure or saving... .the science of asceticism. The dis
occupied. You have to learn to be happy.
by the Institut fur Ethnologie, Ruprecht-Karls cipline's true ideal is the ascetic but extor
Universit, Heidelberg, and into a small Together
article they partly explain why tionate miser and the ascetic but produc
published in Spanish in an Yearbook.
clenched-teeth pursuit of happiness has tive slave." The later part of the 20th cen
Ashis Nandy (reasonbuster@csds.iri) is with athe
become major feature and a discovery of tury, perhaps as a consequence of the spec
Centre for the Study of Developing Societies,
our times. The other explanations possibly tacular death dance in the form of the two
Delhi.
are the growing confidence in some sections world wars, saw the collapse of that ideal.
Economic & Political weekly ran?! January 14, 2012 VOL XLVII NO 2 45
PERSPECTIVES =
The determined pursuit of happiness is

been more Can
open to the less "scientific", you please help?
but
now seen as a response to a disease Sincerely,
called more humane school of psychology
perhaps
Sheila
unhappiness. In the second post-world war
pioneered by Sigmund Freud and less in awe
Dear Sheila,
period, unhappiness in some partsof
ofthe
thehard, ultra-positivist behaviourism of
A car stalling after being driven a short dis
J B Watson.
world has been systematically medicalised. It
tance can be caused by a variety of faults with
is now the domain of professionals, where
The trend continues. Only recent guides the engine. Start by checking that there is
to happiness
the laity by itself cannot do much except co are less magisterial. How no debris in the fuel line. If it is clear, check
operate with the experts. To acquireever, they are by no means less popular, the jubilee clips holding the vacuum pipes
normal
onto the inlet manifold. If none of these ap
whether
happiness, one now requires therapy, coun written by such space-age sages
proaches solves the problem, it could be that
selling or expert guidance - from a like Deepak
psychia Chopra and the intrepid the fuel pump itself is faulty, causing low
trist, psychoanalyst or professional author of the Chicken Soup series, Jack
counsel delivery pressure to the carburettor float
lor or, alternatively, from a personalCanfield
philosoor by their less ambitious siblings chamber, in which case it must be replaced.
in In
pher, wise man or woman, or a guru. form of agony aunts and quick-fix, I hope this helps.
thethe
Walter
post-war era, there were a number week-end
of best advisers in newspapers and
sellers by respected scholars, suchtabloids.
as Ber Recently, psychoanalyst Avner
trand Russell, Erich Fromm and EricFalk sent me the following apocryphal
Berne,
exchange
which sought to guide us through this trou from Jerusalem: Both the disease called unhappiness and
blesome, unhealthy state called unhappiness
Dear Walter,
its adjunct, the determined search for hap
and to help us "conquer happiness", as other day I set off for work leaving mypiness, seem to afflict more the developed,
Rus
The
sell put it.41 am not surprised that such an in the house watching the tv asprosperous, modern societies. Certainly
husband
usual. I hadn't gone more than a mile downthese societies do not usually come off very
over-planned, aggressively rational search
the road when my engine conked out and thewell in many happiness surveys - one is
for happiness produced as its side-effect
car shuddered to a halt. I walked back home
some rather determined efforts to escape its tempted to guess that only after one's basic
to get my husband's help. When I got home
clutches. To judge by Russell's daughter's needs have been met, following the likes of
I couldn't believe my eyes. My husband was
memoirs, her schizophrenic brother's illness Abraham Maslow, one can afford to have the
in the bedroom with a neighbour, making
might have been a direct defiance of her fa love to her. I was floored.... I love luxury of worrying about vague, subjective
passionate
ther's "mechanomorphic" concept of him very much.... I feel like my whole life is states like happiness and unhappiness.
happi
ness. She in effect wishes that her father had and I want to kill him and myself.
in ruins Alternatively, following Ivan Illich, one can
Indian Association for Research in National Income and Wealth

(www.iarniw.org)
Call for Papers for Annual Conference
IARNIW was formed under the guidance of late Prof. V.K.R.V. Rao in 1964 to bring toget
from scholars in the field of national income and allied subjects and the agencies responsib
the national accounts. IARNIW encourages research in national income, wealth and allied fields b
seminars and conferences on various issues relating to estimation and compilation of nati
India. The research studies produced by the Association and papers presented at its confe
etc. are published in the journal of the Association.
Journal of Income and Wealth: The Journal of Income and Wealth is a biennial publication
papers and studies relating to concepts, definitions and statistical measures of macro-econ
at the national, sectoral and regional levels. The Journal publishes both refereed papers
IARNIW seminars and conferences as well as contributions from scholars working in the f
is indexed in the Econ Lit and is available both in print and on-line.
Call for Papers: The Association is organizing its annual conference at Delhi in the secon
2012. Papers are invited on topics relating to National Accounts, Dimensions of Well Being
of Real Output in Health, Education and Personal services. All contributions should be s
IARNIW, Sardar Patel Bhawan, New Delhi-110 001 (E-mail: iarniw99@gmail.com or pc.mo
so as to reach before 1st February 2012. All papers should be in a single WORD documen
of selected papers will be invited to present their papers in the conference and the Associa
cost of train travel and stay.
Dr Pronab Sen
President, IARNIW
40 January 14, 2012 vol xlvii no 2 Economic & Political weekly
= perspective;
thewho
hazard the guess that only those prerogative
have and the potentiality toThe Soviet psychiatrist
of the state.
become
lost their moorings in conviviality andthe
thefuture. But, formobilised
all practical
to give teeth to the state's o
normal algorithm of community life one
purposes, vision
can has to be reconciled to of
livean
in ideal society. Nazi Ger
hope to learn to be happy from this did
imperfect world with what
professionals. evenonce
Freud better. It liquidated such
This conscious pursuit of called
happiness,
the normal unhappiness quents as enemies
to which we of the state.
though it came into its ownare
in heir. The past like the future In
the 20th Lin Yutang's
often serves interpretation of Con
century, is mostly a contribution the moral critique offucius,
of and
as a social for anyone seeking happiness it is
the present.
Indeed,
Enlightenment. The belief that onein some
can Indian texts, the search
important to find a good chair to sit.7 The
scientifically fashion a happyfor happiness
life, despite gifted Indian philosopher Ramchandra
is seen as slightly declasse.
hostile environmental factors and what we Gandhi discovered this independently. For
Valmiki's Ramayana - others mention other
the last 20 years of his life he was known
call random interventions of probability or texts - tells us that the benefits of reading
chance - our ill-educated forefathers called by his chair at the India International
the epic are different for different castes.
them conspiracies of fate - requires con The brahmins who read it get gyanaCentre at New Delhi, on which he spent
fidence in human agency, rationality and (knowledge), the martial kshatriyas kirti
long hours under the portico of the centre.
individual will. Indeed, the search for Panchatantra, the ancient Indian collection
(fame/glory), the business-minded vaish
happiness consolidated itself as a legitimate yas money, and the lowly shudras getof- folk tales, is only slightly more ambitious.
yearning only in the late 18th century, by Chopra and Canfield may be mortified by
The way to happiness, it claims, is finding
when the Enlightenment values had made this - happiness. one or two good friends. Such modest pre
inroads into the European middle class. The scriptions for happiness - a version of the
constitution of the United States (us) was small happiness that cultural anthropo
the first constitution to sanction the demand The expanding sense of human omnipotence
logist Tamotsu Aoki commends - are pos
for and the pursuit of happiness. But it was sible only in societies where grander
and the growing confidence in social and
versions of happiness are usually seen as
a very specific kind of happiness that Tho psychological engineering after Renaissance
mas Jefferson had in mind. Hanna Arendt mostly outside the reach of human volition
brought a different concept of human agency
and individual effort. In such societies
says that in the Declaration of Independ into play in social affairs. New theologies
people are socialised to be happy with odd
ence, Jefferson personally substituted the of the State, history and science began to
bits of happiness that come their way.
term happiness for property. She adds that talk of building from scratch a "new man"
General Eustace D'Souza, an Indian officer
American usage, especially in the 18th cen better suited to human potentialities accord
tury, spoke of "public happiness" where the ing to their competing dogmas. A parallel
in the British Indian Army, who saw action
French spoke of "public freedom".5 process in psychology firmed up the trend
in second world wai; was accidentally posted
This marked a break. Before the 18th cen both at Italy and Japan when these two
in the late 19th century. Almost all of the
tury, the predominant mode of seeking hap emerging models of human personality
countries surrendered to nations occupied
piness was aligned to, and intertwined with, and society promised a this-worldly, non
by the Allied forces. He recalled for a now
theories of transcendence. And outside transcendental version of happiness and
defunct popular magazine The Illustrated
were confident that, through proper
Europe that alignment continued. Both the Weekly of India, the different responses of
Buddhist concept of ananda, which later the two defeated peoples. While in Italy
retooling of social institutions, it could be
seeped into the Vedantic world view, and ensured in the short run. Not surprisingly,there were scrambles for rations and other
once the idea of cultivable and learnt or
the Christian concept of bliss had little to goodies being distributed by the victorious
achieved happiness entered the scene,Allied army and undignified fights to get
do with the new idea of happiness in the
many authoritarian regimes in our times,larger shares, in Japan even the obviously
modernising west, buffeted by institutional
forces on the one side, and internalised
unlike earlier despotisms, began to claim
starving never rushed for food and there
social norms on the other. Ananda or bliss that they were pushing their subjects into
was no jostling for rations.
happened. It rarely came to those who the best of all possible worlds and began One doubts if this can be read as a com
searched for happiness. You could, of course, to demand that their subjects be happy. ment on the relative merits of the two
hasten or precipitate it, without actually In such regimes, if anyone claimed to becultures or their capacity to withstand
striving for it, through correct rites and ritu unhappy, it became a confession of delindeprivation. The difference perhaps indi
als, mystic experiences, meditation or other quency and his or her normal place recates that, in some cultures, happiness - or,
forms of exercises in self-transcendence. mained, officially, outside society. Happiat least, reduction of unhappiness - is less
Happiness of the kind we now associate ness, like school uniforms, became com a matter of personal attainments or gains
with individualism and the juridical self has pulsory. For, not to be happy in a Utopia is,and more a state of mind associated with
an uncertain status in the non-modern by definition, a criticism of the Utopia and community affiliations and social behaviour.
unforgivable dissent. In the 20th century,Most individuals in these cultures tend to
world, more so because some of the major
civilisations of the world, such as the Chinese
in many societies such dissenters have filledbelieve that happiness cannot come to one
psychiatric clinics and jails. The Soviet
and the Indian, locate their Utopias in the when one functions only as an individual
Union, for instance, was never secretivecompeting aggressively with everyone
past.6 Given their non-linear concept of
time, the past in these civilisations do have
about this tacit component of its ideologyelse and, hence, it is probably pointless to
Economic & Political weekly utavi January 14, 2012 vol xlvii no 2 47
PERSPECTIVES =
ignore the codes of social conduct Manu Kothari and Lopa Mehtarelationship could take. This argument,
to run
Ivan Iiiich,
for individual gains only. Oneare
must
at longlearn
last showing signs of seepingtoo, has a parallel definition of happiness
to wait for such gains. Whichinto probablyconsciousness within the built into it - a happy person should be
is professional
another way of saying that happiness
discipline. Surveying recent literature onable to bear larger doses of unhappiness.
the subject,
comes mostly from within a form Toby Miller and Pal Ahluwalia This is not oriental wisdom, for Erikson's
of inter
subjectivity that has somethingdraw
to do attention
with, to the way the Britishguru Sigmund Freud's Dostoevskian, tragic
what Illich calls conviviality inMedical Journalto
addition derides modern medicine vision of life can easily accommodate
accumulating, possessing or becoming.8
for fighting . .an unwinnable battle againstShah's definition of happiness. To the first
death,
Appropriately, Aoki pleads that wepain and sickness" at the price ofpsychoanalyst too, the sense of well-being
give
up the grand idea of happinessadequate
and opt education,
for culture, food, andof a mentally healthy person shows its
small ideas of happiness, thetravel,
kinds in a that
world where the more you payrobustness by being able to live with some
one finds strewn around in everyday the sicker you feel, and "socialamount of unhappiness and what is com
for health,life.
The smallness, I presume he believes of illness is being replaced bymonly seen as ill-health. This is probably
itself
construction
ensures that the ideas of large,
the dramatic,
corporate construction of disease".9 what Freud meant in his famous letter to a
organised, expert-guided happiness get a patient's mother, in which the intrepid

lesser run in our lives and are not allowed 4 healer advised the worried mother to
to overwhelm entire societies by democratic There survives another concept of happi reconcile herself to the "normal" unhappi
consent, manufactured or otherwise. Such ness, more nuanced and yet, at the same ness in her son's life.
small forms of happiness can even serve time, more down-to-earth. It affirms that
as oases within overwhelming unhappiness. healthy, robust, authentic happiness - NOTES
In the genocidal battle of Kurukshetra in "authentic" in the sense existential psy 1 www.wellingtoncollege.org.uk.
2 http://www.thehappinessshow.com/HappiestC
the epic Mahabharata, which lasted for days, choanalysis deploys the term - must have
tries.htm. This is only an example. The inter
convention demanded that the battle begin a place for unhappiness. Aoki talks about is now flush with surveys of happiness. They
different measures and arrive at different resu
everyday at sunrise and stop at sunset. At the sadness of unrealised hope and the but I have not come across serious efforts to ex
the end of the day, the warriors of the two struggle to acquire a language in which to amine what these differences mean culturally
and psychologically.
sides visited each other's camps, exchangedtalk about happiness. In such instances,
3 Ernest Becker, The Denial of Death (New York:
pleasantries and talked of happier days the presence of the unpleasant does not Collier-Mac, 1973). This is one of the very few
works that seem to see death denial as a crucial
they had spent together earlier. necessarily mean the diminution of happi building block of cultures and societies.
The presently dominant idea of happi ness. It becomes part of a happy life that 4 Bertrand Russell, The Conquest of Happiness (London:
George Allen & Unwin, 1930); Erich Fromm, To
ness, being subject to individual volition oscillates between the pleasant and the
Have or to Be? (1976), The Art of Being (1993) and
and effort, ensures that the search forunpleasant, achievement and failure, being On Being Human (New York: 1997); Eric Berne,
Games People Play (New York: Grove, 1964). It is un
happiness has a linear trajectory. In that and becoming, work and play. In such a fair to bunch together these diverse scholars, espe
idea, there is always a hope for perfection. life, work becomes vocation and leisure cially the mechanomorphic, soulless concept of
happiness in Russell with the now-unfashionable
Perfect happiness comes when one elimi need not be reinvented as the antithesis of Fromm who probably supplied the first serious so
nates, one by one, all unhappiness. This iswork. Vocation includes leisure, exactly as cial criticism of "prefabricated happiness", but I am
merely speaking here of the rediscovery of happi
not an easy task. You cannot, for instance, a pleasurable pastime may comprise some ness as an achievable individual goal and a matter
eliminate death, old age and many forms amount of work. The idea of perfect hap of individual and social engineering.
5 Hanna Arendt, On Revolution (London: Faber and
of illness and chances of catastrophes. But piness is consigned either to the domain of Faber, 1963), p 115. See particularly Chapter 3:
at least you can live a happy life, the pre the momentary or the transient or to the "The Pursuit of Happiness".
6 The idea of utopias-in-the-past was not unknown
sumption goes, by forgetting them or by mythic or the legendary. It cannot be to the Judea-Christian and Islamic traditions. The
denying their existence. All societies insti achieved in life, but may be realised in garden of Eden was utopic in many ways, but it
had to be rejected in post-medieval Europe as
tutionalise an element of death denial. Only exceptional moments. an appropriate Utopian vision. It had to learn to
in modern societies does that denial take Years ago, philosopher K J Shah, simul survive in an attenuated form and a metaphor the
way the idea of primitive communism survives in
the form of a panicky repudiation of thetaneously an admirer of Wittgenstein and Marxism - a somewhat tattered, Rousseau-esque,
idea of death itself. Not only because, in the Gandhi, found, on reading Erik Erikson's child-like and childish construct fit for the pre
moderns and non-moderns.
mythos of modernity, there is no genuinecelebrated book Gandhi's Truth, the au 7 Lin Yutang, The Importance of Living (New York:
place for the idea of a life after death butthor's concept of a happy marriage prob William Morrow, 1996).
8 Ivan Illich, Tools for Conviviality (New York:
also because in that mythos there is nolematic. Erikson seemed to believe, Shah Harper and Row, 1973). This still remains a power
admission of a natural limit to individual said, that Gandhi's relationship with his ful plea for a robust scepticism towards the reign of
professionalism and expertise apart from being an
consumption through death. Death denialwife was ambivalent and his marriage less early, if indirect critiques of the happiness industry.
and a debilitating fear of pain are the than happy, because the two of them 9 Toby Miller and Pal Ahluwalia, "Editorial: Psycho
civilised?", Social Identities, March 2008, 14(2),
obverse of the modern idea of happiness. constantly quarrelled. Shah found this PP 143-44; see p 143. The quotes are from
The changing culture of modern mediconcept of marriage strange. According to R Moynihan and R Smith, "Too Much Medicine?",
British Medical Journal, 2002,324, pp 859-60, see
cine and the contemporary idea of healinghim, the strength of a human relationship p 859; and R Moynihan, I Heath and D Henry,
have begun to faithfully reflect this conshould be measured not by the absence of "Selling Sickness: The Pharmaceutical Industry
and Disease Mongering", British Medical Journal,
nection. As a result, the formulations ofquarrels, but by how much quarrel the 2002, 324, 886-90, see p 886.
48 January 14, 2012 vol xlvii no 2 EH5E3 Economic & Political weekly
SPECIAL ARTICLE
Governing the Urban Poor:

Riverfront Development, Slum Resettlement
and the Politics of Inclusion in Ahmedabad
RENU DESAI
The politics of inclusion in the Sabarmati Riverfront

mati Riverfront
Development project, an urban mega-project inDevelopment (srd) project, from informal
In settlements
2009, over 200riverfront
on Ahmedabad's families wereflatsrelocated under the Sabar
to four-storey
Ahmedabad, has been predicated on a "flexible
several kilometres away. For these families, the relocation was the
governing" of the residents of the riverfront
culminationinformal
of years of uncertainty about how this ambitious
settlements. Such flexible governing has urban
allowed
waterfront project state
would affect their lives. It had been just
authorities to negotiate grass-roots opposition and proposal was prepared for the
over a decade since a planning
project; almost a decade since a slum survey was carried out on the
mobilisation, modify the project to gentrify the
riverfront; six years since project construction had begun; and four
riverfront further, and even officially represent the
years since a grass-roots organisation had filed a public interest liti
project as inclusive although questions ofgation
social justice
(pil) to appeal for the rights of riverfront slum-dwellers.
have been profoundly disregarded over theThis past

was also only the first group of families to be relocated,
decade
and more than 14,000 families still remained in informal settle
and continue to be insufficiently addressed. This paper
ments on various stretches of the riverfront, many of them still
examines the politics of slum resettlement
waitingandto find outinclusion
whether they would be displaced by the
by analysing the project from planning inproject
the late
in the first 1990s
place and whether they would then be eligible
for relocation.
to the initial stages of official resettlement a decadeWhile many morelater.
families have since been relo
cated, this has involved - and continues to involve - intense nego
tiations for inclusion in resettlement. It is in this context that this
paper casts an eye over the project, from its planning to the ini
tial stages of official resettlement a decade later, and interrogates
its politics of slum resettlement and inclusion.
The Rs 1,200 crore srd project is one of the many urban projects
that have emerged around the world over the past two decades,
with the articulation of new urban imaginaries. They powerfully
link particular projects and landscapes of urban infrastructure,
beautiflcation and real estate development to expectations that
these will enhance city competitiveness and attract investors,
stimulate urban economic growth, and/or improve quality of life.
In Indian cities, realising such projects has often been contingent
on governing the urban poor and the spaces they inhabit in ways
that make possible the redevelopment of these spaces. This paper
argues that in the case of the srd project, the redevelopment of
the riverfront has been predicated on a "flexible governing" of the
residents of riverfront informal settlements. This flexible govern
ing has articulated a particular politics of inclusion.
It is important to note here that the initial project proposal
sought to include residents in the project in certain well-defined
ways. I argue that this politics of inclusion and mode of governing
involved an "inclusion by co-optation". However, the implementa
Renu Desai (d.esai_renu@yahoo.co.in) is at the Centre tion
forprocess Urban
articulated a very different politics of inclusion, which
Equity, Centre for Environmental Planning and Technology University,
Ahmedabad.
took shape through a flexible governing of residents. By flexible
governing, I refer to the ways in which state authorities took an
Economic & Political weekly [3X3 January 14, 2012 vol xlvii no 2 49
SPECIAL ARTICLE i
been on the outskirts of cities, usually devoid of security of ten

ambivalent and shifting approach vis-a-vis the urban poor as they
pursued their primary agenda of beautifying and maximisingure, basic infrastructure and a socio-economic livelihood base.
gentrification of the riverfront. Rather than committing to or pur However, parallel to these overt processes of dispossession and
suing a particular well-thought-out strategy (violent or bene the urban visions and forms of governance that enable them,
volent) vis-ä-vis the urban poor, the approach of these state India has also been witnessing the emergence of certain inclusive
authorities fluctuated, and ultimately evolved, in response toforms of urban development and governance. Here, our under
changing calculations and pressures. These included financial,
standing of these processes and their outcomes stems mainly
political and/or other kinds of calculations (such as the desire tofrom research on urban projects in Mumbai. For instance, various
quicken the pace of the project); the pressures came from thestudies have looked at participatory slum resettlement under the
grass roots and the judiciary. World Bank-funded Mumbai Urban Transport Project (mutp).
Over the past decade, these state authorities have thus engagedWhile initial analyses were very positive, arguing that this
in ambiguous, shifting and competing practices of inclusion. embodied
I an approach "beyond evictions" (Patel et al 2002) and
involved "deep democracy" (Appadurai 2001), recent analyses
discuss three distinct practices in this context: multiple and shift
have been more critical and cautious. Roy (2009a), for instance,
ing terrains of compensation, fragmentary evictions and piecemeal
resettlement. Significantly, this flexible governing has allowed
theorises the mediation of slum resettlement by non-governmental
state authorities to negotiate grass-roots opposition and mobiliorganisations (ngos) and community-based organisations (cbos)
sation, as well as modify the project to gentrify the riverfront
in mutp as a regime of "civic governmentality" which involves
further relative to what was originally proposed. It has also populist mediation, technologies of governing such as grass-roots
allowed for official representation of the project as inclusive,knowledge production and norms of self-rule such as concepts of
although questions of social justice were profoundly disregarded
civility. She argues that these regimes of government both resist
over the past decade and continue to be insufficiently addressed.and comply with what may be perceived as top-down forms of
This analysis is based on 18 months of ethnographic research
rule, producing a particular "politics of inclusion" in which "the
between 2004 and 2006, and short phases of follow-up researchurban subject is simultaneously empowered and self-disciplined,
over 2009-11. The paper is organised as follows: first, it discussescivil and mobilised, displaced and compensated" (Roy 2009a:
the implications that contemporary forms of urban development161), and through which urban renewal is facilitated.
and governance have had for the urban poor in Indian cities. This Through a fine-grained ethnography of participatory slum reset
discussion focuses particularly on the politics of dispossessiontlement under mutp, Doshi (2011) moreover analyses the particular
and inclusion to locate subsequent discussions on the srd case.kinds of gendered subjectivities that are shaped and harnessed to
Next, I briefly describe the srd project. Following this, I examine
manage resettlement. She shows how, on the one hand, this results
the initial project proposal from 1998 to interrogate its co-optation
in empowered roles for certain groups of women residents in what
by inclusion. I then analyse the practices that have constitutedare otherwise elite-driven projects and, on the other, result in a re
the flexible governing of the riverfront informal settlements and
inforcement of socio-economic inequalities amongst resettled in
their residents over the project's implementation between 2000
habitants. In other words, as Doshi explains, gendered mobilisa
and 2010. In the concluding section, I discuss the politics of inclutions amongst women residents enable market-oriented projects of
sion implied by this flexible governing and its implications for
urban transformation, even as they produce deeply uneven and
equitable urban development in Ahmedabad. contradictory experiences and outcomes amongst residents.
In the case of the Dharavi Redevelopment Project in Mumbai,
Urban Development, Governance Weinstein's (2011) research shows how attempts to smoothen this
and the Politics of Inclusion
high-profile project's implementation and rein in opposition to it
Dispossession of the poor and deepening forms of inequality
led the state and architect-planners to engage Dharavi's residents
have been a central feature of the contemporary re-envisioning
in the planning process. She argues that this facilitated democracy
of urban landscapes across the world. The redevelopment andco-optation, but also that only some marginalised groups
through
gentrification of spaces inhabited by the poor and working classes
were able to make effective claims in these processes. Focusing on
has, in fact, become a crucial urban strategy of accumulation
a different sector of urban policy in Mumbai, Zerah (2009) argues
(Smith 2002). Research on Indian cities such as Mumbai and that although participatory governance in the management of
Delhi has shown how these processes have been put into motion urban services has opened up space for ngos and cbos to become a
by evicting poorer and less enfranchised inhabitants such as bridge with poor communities, in reality this has empowered only
pavement dwellers, slum-dwellers and street vendors (Banerjee influential community members, middlemen and small private
Guha 2009; Baviskar 2006; Bhan 2009; Bhowmik 2003; Kumar entrepreneurs, while contributing to labour informalisation. Zerah
2005) through systematically labelling them "encroachers" and thus argues that such "governing beyond the State" does not trans
"illegal" (Ramanathan 2006) as well as through legal discourses late into a "governing from below" that would widen participation.
of "nuisance" (Ghertner 2008). These overt dispossessions have The research discussed above analyses some of the forms of
often been enabled then by the increasing centrality of the urban development and governance that constitute contemporary
judiciary in urban planning and government (Bhan 2009) and its politics of inclusion, and its paradoxes and contradictions. This
regressive stance vis-ä-vis the urban poor since the 1990s. In paper seeks to contribute to these analyses and debates by exam
these cases, resettlement for evicted slum-dwellers, if any, has ining the SRD project in Ahmedabad. Unlike many of the projects
50 january 14, 2012 vol xlvii no 2 0323 Economic & Political weekly
= SPECIAL ARTICLE
mentioned above, a key element of the srd project is the proposal

primary envisaged extensive land reclamation along a nine
kilometre
role of state authorities in initiating, financing, developing and im stretch of the river, the creation of open green spaces,
residential and commercial real estate development, the develop
plementing all components of the project in a top-down fashion.
ment
Thus, the urban poor living and working on the riverfront of cultural facilities, the construction of infrastructure such
were
as roads
not incorporated through a participatory approach, and ngos and and service networks, the allocation of space for existing
and new
CBOs were not invited to be mediators with poor communities. In informal markets, and resettlement and rehabilitation of
riverfront
deed, from the existing literature on Indian cities, it is unclear to slum households (epc 1998). A central aspect of the pro
what extent participatory processes of any kind have been
posalpur
was that the project should be self-financing. The allocation
of 21%
sued outside of the largest metropolitan cities. It is therefore imof the total reclaimed land for residential and commercial
portant to pay attention to other practices - such as the development
flexible was calculated on this basis. The 1998 proposal has
governing in the srd project - which articulate a politics guided the project since this time, although significant modifica
of inclu
sion and enable neo-liberal projects of urban development.tions have also been made over the years. Project construction
As mentioned earlier, flexible governing refers to the began in 2003 and is gradually edging towards completion.
ways in
It is important to note that the idea of riverfront development
which state authorities took an ambivalent and shifting approach
has its roots in proposals put forward from the 1960s through the
vis-ä-vis the urban poor as they pursued their agenda of beautifying
1980s.
the riverfront. During the project's initial years, they held The most well known is the first of the proposals, prepared
out an
ambiguous promise of inclusion. Later, they also began toin the early 1960s by Bernard Kohn, a French-American archi
pursue
tect-planner
competing and shifting practices, sometimes evicting groups and living in Ahmedabad at the time. Another proposa
sometimes resettling them, in response to changing (financial,
was prepared in the mid-1970s by a group of architects and plan
ners known as the Riverfront Development Group (rdg). The
political, etc) calculations and pressures. Some of these practices
economic
were also informal. As Ananya Roy (2009b) argues, informality must and ideological context of the late 1990s in the city and
beyond
not be equated with the urban poor and their spaces, but rathercreated a more conducive atmosphere than ever before
for pursuing
with the idiom of urbanisation and planning in India and with the riverfront development; it also crucially trans
formed the vision for the riverfront. The 1998 proposal covered a
state's own practices in this context. State authorities, moreover,
had to contend with grass-roots mobilisation which also took
longer
ques
stretch of the riverfront (9 km as compared to 3.5 km un
derprac
tions of displacement and resettlement to the courts. Their the Kohn proposal and six km under the rdg proposal) and
proposed
tices of flexible governing thus also evolved out of their attempts to a greater area of land reclamation (162 hectares as
compared
deal with the court's relatively sympathetic stance towards slum to 30 hectares under the Kohn proposal and no land
dwellers. The SRD project thus also reveals the potentials reclamation
and limi under the rdg proposal).
tations of the role played by the judiciary in this context. Although the Kohn proposal had recommended that some land
Mahadevia (2011) has pointed out that the metropolitan
be story
privatised to make the project self-financing, its emphasis had
been poli
in reform-era India has been one of parallel and conflicting on creating easy pedestrian access to the new public spaces
cies, with one set of policies focused on large-scale urban infra
along the river; minimal roads were proposed. The 1998 proposal,
structure projects to make cities into engines of economicon the other hand, while lining the river's edge with public open
growth
and the other focused on poverty alleviation. While thespaces
formerand promenades, also proposed an almost continuous four
lane
excludes the urban poor, the latter includes them. This, she or six-lane road parallel to the river, allocating almost 29% of
argues,
constitutes a "paradigm of deliberate confusion" andthe
allows
total reclaimed land to roads. In fact, while earlier proposals
policy to swing in the direction from which there is pressure.
were relatively
In modest in their scale and scope, the 1998 proposal
the SRD case, we see this paradigm operating within put
a single
forth a vision in which the entire face of this central urban area
project. Here, the implementing state authorities have often
along the river would be transformed through large-scale land
sought to represent the project as inclusive of the urban poor, but
reclamation, followed by an extensive reorganisation of existing
since they have privileged the beautification of the riverfront,
riverfront activities, the insertion of new activities and infrastruc
this has created contradictions in the way in which questions of the introduction of urban design guidelines to create an
tures, and
the urban poor have been addressed. In other words, the prac regulated and efficient urban space.1
ordered,
tices of the authorities vis-ä-vis the urban poor have swung
Thus, although the rhetoric of the 1998 proposal echoed earlier
depending on changing calculations and pressures. I analyse this in emphasising the improvement of the quality of envi
proposals
ronment
approach as constituting a flexible governing of the urban poor. and life in Ahmedabad (epc 1998: 1), the project was
In the next section, I briefly describe the project. profoundly different in that it leveraged the market for urban re
structuring and seductively reimagined the area straddling the
Sabarmati Project river in ways similar to urban mega-projects elsewhere in the
The srd project emerged in 1997 when the Ahmedabad Municipal
world. Like other mega-projects, it has of course been inevitably
Corporation (amc) established a special purpose vehicle, theby local political and institutional regimes. Thus, while the
shaped
Sabarmati Riverfront Development Corporation (srdc), to SRD project involves "urban entrepreneurialism" (Harvey 1989),
develop
the city's riverfront. In 1998, a project proposal was prepared
this is not in the form of a public-private partnership as is often the
for srdc by the Environmental Planning Collaborative (epc),
case in mega-projects, but rather in the form of a municipal gov
ernment
an Ahmedabad-based not-for-profit urban planning firm. This that has taken on the role of developer (through srdc
Economic & Political weekly mm January 14, 2012 vol xlvii no 2 51
SPECIAL ARTICLE
homogenised
and that will also take on the marketing of the project and selling a these neighbourhoods and households, bringing
portion of the reclaimed land to investors and developers. thousands of families under the proposal's one-size-fits-all reset
tlement
Politically, the project has been supported by both parties: while and rehabilitation (r&r) measures.
the Bharatiya Janata Party (bjp) revived the project in 1997This
whenmapping, along with data from a 1991 Census and a recon
it was in power in the amc, project construction began naissance
in 2003 survey of new settlements, also led the 1998 proposal to
estimate that 10,000 households lived in riverfront slums. It then
when the Congress Party was in power. It is now being completed
under the bjp's tenure. In fact, both the city's mayor, whodemarcated
belongs a "project-affected area" (paa), defining this as the area
in which
to the ruling party in the amc and the leader of the opposition party land reclamation would be carried out (epc 1998: 42).
are on srdc's Board of Directors. But srdc's Board also comprises
This paa was then superimposed on a map of existing slums to arrive
high-level bureaucrats from both the amc and the Government
at the of
"project-affected slums" and the figure of "project-affected
households".
Gujarat.2 Since Narendra Modi, Gujarat's chief minister, holds What this meant was that if a slum extended beyond
power over the appointment of these bureaucrats, he has been able
the paa boundary, then the households that lay outside the paa would
be presumed
to play a central role in the shaping of the srd project, regardless of unaffected by the project since they would not be re
which party has been in power in the amc. In this way, the moved for land reclamation. A further criterion was introduced here
entre
preneurial role of the amc through srdc has also linked up
and
to the
the proposal stated that if more than 75% of households of a
slum
entrepreneurial strategies of the Gujarat government (Desai lived within the paa, then all the households of that slum
2011).
An important outcome of epc's involvement as planning (even those outside the paa) would be considered project affected
consult
ant was that the 1998 proposal not only sought to ambitiously re be resettled. The figure of 75% was arbitrary, but like the
and would
develop the riverfront, but also brought the relocation and reha
epistemological category of the "slum" and the demarcation of a paa,
bilitation of the riverfront urban poor within the ambit
it of theto make the complex realities on the ground manageable
tried
project. The proposal articulated this aspect of the project for
as bring
R&R. It is thus that the figure of 4,400 project-affected house
ing about a positive transformation in the lives of poor communi
holds was arrived at, and the land-use plan prepared on this basis.
ties, eliminating the risk of flooding and providing them with ele
vated and serviced land on the developed riverfront. This The Land-Use Plan: The 1998 proposal recommended relocating
set the
residents of riverfront slums on the developed riverfront. Its map
stage for official representations of the project as being inclusive.
ping the
However, with the beginning of the project's implementation, of slums thus fed into the proposed land-use plan for the
proposal was refracted through the political and institutional
riverfront. Three slum relocation sites, totalling an area of 15.48
hectares or 9.5% of the reclaimed land, were allocated for the
regimes described above, transforming the project in significant
4,400
ways. Let us first examine the 1998 proposal and its politics of project-affected households. Their location was based on
inclu
sion vis-ä-vis the residents of the riverfront's informal settlements.
the mapping, along with a number of considerations regarding
design of resettlement units and the idea that "relocation of
Co-optation by Inclusion low-income communities at distant locations, by disrupting the
The politics of inclusion during the initial project planning
close relationship between the place of work and residence, has a
very negative impact on their economic and social well being"
hinged on spatial techniques such as the mapping of informality
and "project-affected slums" and the preparation of a land-use
(epc 1998: 44). Relocation was thus to take place within two to
plan as well as on institutional and financial mechanisms. three
I argue
km from people's present sites of residence. At this stage,
that through these techniques and strategies, which rendered the
the project therefore rejected the gentrification of the riverfront
riverfront's informal settlements and their residents governable
in the way that other urban projects have gentrified urban spaces
and included them in well-defined ways, the 1998 proposal
in recent years in India, that is, by forcibly displacing the urban
sought to achieve co-optation by inclusion.3 poor to other areas. Although gentrification can take place over
time depending on how projects structure mechanisms of inclu
Mapping Informality and 'Project-Affected Slums': The 1998
sion, the 1998 proposal's land-use plan was nonetheless unique.
proposal mapped out all existing land-uses, including informal
At the same time, it is important to keep in mind that it was based
settlements, along the river. All the informal settlements were
on the particular mapping of informality discussed earlier.
mapped under the broad category of slums, although there were
differences in land and housing ownership patterns, Institutional
tenure and Financial Mechanisms of Inclusion: The 1998
proposal recommended that a Technical Support Organisation
arrangements, levels of housing consolidation and infrastructure
provision, and neighbourhood histories. For instance, the chawls
(tso) be set up for implementing the project's r&r component. It
on the riverfront were different from squatter settlements, the
suggested that the tso should be independent of srdc, and struc
former having their genesis in one-room houses constructed and
tured as a not-for-profit company to be held by representatives of
various voluntary organisations, cbos and professionals in
rented out by private landowners. Some squatter settlements
Ahmedabad.
were, in fact, the result of earlier demolitions in the city, with the The objective of setting up such an organisation was
to "ensure a higher degree of transparency and acceptability
AMC relocating the evicted to these sites without secure tenure.
There were also differences between households amongst
in size, the affected households" (epc 1998: 45). The tso would
occupation, income and so forth. The category of the "slum" and with affected households to design the housing, look after
interact
its mapping by orange colouring in the 1998 proposal thus
legal aspects of providing ownership and arrange for long-term
52 January 14, 2012 vol xlvii no 2 CUES Economic & Political weekly
SPECIAL ARTICLt
became
financing so that they could pay around two-thirds the cost of a contentious issue. While the survey enumerated ap
constructing the resettlement units (epc 1998: 45). The tsoproximately
was 14,500 households, ngos and community organisa
also to organise Residents' Committees, which would organise tions
r&r. argued that 30,000-40,000 households lived in these
settlements. Nonetheless, since a survey had been done, there
Thus, inclusion was structured through financial contributions,
property ownership, some voice in the housing design was
anda vague promise of inclusion.
organisation of the relocation process by people's committees.
In subsequent years, state authorities put out competing and
This mode of inclusion was likely to have differential effectsshifting
on information on compensation. Project brochures availa
ble from SRDC in 2004 stated that there were 4,400 project
residents depending on their social and economic circumstances.
This inclusion of the riverfront urban poor - through the affected
map households.6 The following year, the amc's 2005 Annual
Diary (p 90) stated that 14,500 households would be resettled
ping, land-use plan and various institutional and financial mech
anisms - was designed by epc in collaboration with vikas, while
a de at the same time, a new project brochure stated that 7,000
velopment NGO in Ahmedabad, and through the interaction that
households would be resettled. As a result, speculation abounded
Bimal Patel, epc's managing director, had with the general amongst
secre residents, with some confident that they would be com
tary of Self-Employed Women's Association (sewa), the ngopensated,
and others unsure about who would be compensated, and
everyone uncertain about what compensation would entail. In
trade union that organises and works with poor, self-employed
other words, while there existed uncertainty and confusion
women.4 After the proposal was prepared, Patel also explained
the project to at least one group of ngos and activists to try about
and the terms and nature of compensation, there also existed
convince them of the benefits the project would bring to the
anur
ambiguous promise of compensation for many.
In this context, information garnered from Gujarati newspa
ban poor.5 The proposal was thus meant to satisfy both the urban
poor and their advocates and thus co-opt them into the project's
pers and political leaders inevitably became a source of informa
tion, often adding to this situation of uncertainty and confusion
larger remaking of the riverfront. Indeed, Patel also took it upon
himself to convince economic and political elites that the urban
on the one hand and the promise of inclusion on the other. For
poor should be relocated on the riverfront. instance, organisations formed in 2004, first by a Congress Party
Ultimately, however, this politics of inclusion was predicated
worker (the Sabarmati Riverfront Jhupd.awa.si Sangharsh Samiti)
on a top-down process. It predetermined and fixed the roleand
andthen by a highly placed leader in the Congress Party (the
the space that the riverfront urban poor would be given in the
Amdavad. Shehr ane Riverfront Jhupda Samiti) held grass-roots
project. It was still predicated on the notion of informal settle
meetings and rallies on the question of resettlement under the
ments as illegal and their residents as populations to be managed
project. They focused mainly on extending the cut-off date for
rather than citizens with legitimate claims (Chatterjee 2004). It
eligibility for resettlement - from 1976 (the amc's cut-off date for
is, of course, impossible to tell in what way this co-optation
theby
entire city at the time) to 2000.7 Although the cut-off date for
inclusion would have unfolded had some of the recommenda the project remained unresolved for many years, as political par
tions of the 1998 proposal been followed more closely, but
ties it
and leaders debated it, state authorities put out competing
should be clear from the analysis above that it would not and
have
shifting bits of information. Newspapers reported on the
benefited all and would have exacerbated and produced particu
project frequently, residents formed differing ideas about the
lar inequalities. However, over the next decade, the proposal was and its implications. During my fieldwork in the river
project
front settlements in 2005, there was a very wide range of
refracted through the institutional and political regimes shaping
the project's implementation, leading to a flexible governing of
responses from residents regarding what they knew of the project
the urban poor and inducing Patel's for-profit architectural and
firmhow they thought the project would affect them.
Hep, which took over the urban design of the project, to make
It is worth noting that internal project documents show that
significant modifications to the epc project plans. there were even more multiplicities and shifting decisions than in
public view. Thus, 8,464 households were to be resetded according
Flexible Governing to one document, authored by the Centre for Environmental Plan
Although the 1998 proposal included the residents of the river
ning and Technology (cept) and Gujarat Ecology Commission
front informal settlements in well-defined ways, over the (gec)
next(2002) and 6,483 were to be resettled according to another
several years, the amc and srdc engaged in flexible governing
(Vivro 2006). A third document simply stated that the 1976 list of
riverfront
involving three distinct practices: multiple and shifting terrains of slum residents was "irrelevant" and "it would be relevant
compensation, fragmentary evictions and piecemeal resettle
and proper to include urban poor as per the list of 1995" (srdc
ment. These are discussed below. 2004). This would suggest that the multiple and shifting terrains of
compensation in the public domain were the result not of a con
Multiple and Shifting Terrains of Compensation: Betweenscious strategy to engender confusion amongst residents, but the
2000 and 2002, a slum survey was carried out for the project on
result of multiple and changing rationalities at work within these
the riverfront. Neither was systematic information about the
implementing authorities. However, this lack of decisive commit
survey or the project given to residents at the time, nor was thement certainly created confusion amongst slum-dwellers and also
survey ever shared with them. Interviews with ngos andenabled other competing and shifting practices by the authorities.
residents revealed that the survey was also carried out unevenly.Before I turn to these, let us consider the grass-roots mobilisation
Unsurprisingly, the number of households living on the riverfront
that took questions of resettlement to the courts in 2005.
Economic & Political weekly EUES January 14, 2012 vol xlvii no 2 53
SPECIAL ARTICLE
The
Over 2004 and 2005, a grass-roots movement emerged boundaries between riverfront development and other
under
the banner of SabarmatiNagrikAdhikar Manch (snam) in response
projects of urban development such as bridge construction were
constructed
to concerns about the project's implications for the riverfront infor then through the demarcation of city-space into dis
mal settlements, snam had first formed in a small stretch of riverprojects, thus creating uneven entitlements through urban
crete
front settlements, growing out of efforts by the St Xavier's Social and allowing for a flexible governing of the urban poor.
planning
Service Society (sxsss), a local ngo, to promote communal
Thehar
fact that more evictions like this did not take place was not
mony after the 2002 Gujarat riots and bring together Hindu and they were not attempted by amc, but because grass-roots
because
Muslim residents around shared concerns.8 Unable to get mobilisation
informa got smarter at countering eviction. Legally speaking,
tion about resettlement, snam leaders decided that a broader
thegrass
stay order applied to all residents on the riverfront until reha
roots mobilisation was needed to be effective. They initiated con
bilitation plans were submitted to the court. The amc's eviction
tact with community leaders in other settlements on the river, or were thus in contempt of the court's order, and after the
attempts
Merianagar
ganised open meetings with residents, spread awareness about the incident, residents and snam leaders - who had in
tially been left confused by amc's argument that the eviction was
project, and garnered support for a wider housing rights struggle.
Guided by some ngos, snam also filed a pil in the Gujarat
forHigh
a bridge and not the srd project - realised this. The amc made
Court through Girish Patel, an Ahmedabad-based human rights
a few other attempts in late 2005 as well as 2006 to similarly
lawyer. The pil laid out the concerns of slum-dwellers living on houses for the construction of new bridges. It even tried
demolish
the riverfront and appealed to the court for information to
on demolish
reset some houses to create a wider entrance for the Gujara
tlement, and just and fair r&r. In April 2005, the court government's
issued a 2007 Vibrant Gujarat Global Investor Summit organ
stay order, prohibiting various state authorities including
ised amc
on the project's reclaimed land. In all these cases, it was only
and SRDC from evicting any resident until the courts had because
seen thesome residents and community leaders confidently in
rehabilitation plans.9 Since the courts did not insist on a particu
sisted that they were covered by the court's stay order and came
lar deadline for submitting the plans, and the stay order under
was not
the srd project that these attempts were thwarted.
on the project as a whole, amc and srdc did not submit any If
plans
the court's stay order had not been in place or had not been
to the courts until mid-2008. In the intervening three years, the
mobilised in these cases by residents, the absence of a clear r&r
multiple and shifting terrains of compensation continued,
plan and the unfolding of flexible governing would have led to
amc also attempted to evict smaller groups of residents. more dispossession than it did. This also shows that the practices
of amc and srdc unfolded depending on the nature of grass-roots
Fragmentary Evictions: In September 2005, the amc issuedmobilisation
eviction as well as their own calculations at the time. (These
notices to 177 families in Merianagar, an informal neighbourhood
calculations changed later, and as I will briefly discuss in the con
on the riverfront. They were to be resetded under what is known in section, the amc again carried out evictions on the river
cluding
Ahmedabad as vaikalpik vyavastha (alternative arrangement).
front in May 2011, this time without issuing eviction notices and
SNAM leaders and some residents attempted to stop eviction and the insistence of residents that they were protected by the
despite
negotiate better resettlement under the srd project, but this was stay
court's a order.)
short unsuccessful struggle. According to some of my interviews,
Ambivalent
local elected representatives had threatened that if the families did and Shifting
not accept this arrangement immediately, they would notThis
get any
ambivalent and shifting approach vis-ä-vis the urban poor
resettlement later. Many began to dismande their houses out of allowed for flexibility in the larger project as well.
moreover
fear and the families were thus evicted. The vaikalpik vyavastha
While project construction began in 2003 on the basis of the 1998
comprised land outside the city's municipal limits, which wasproposal,
divided the project seemed to be continually under pressure -
from within the state and without - to make the riverfront more
by chalk into 10 feet by 15 feet plots. The only services provided
before people moved were a borewell, some community taps and a to the middle- and upper-middle classes and investors.
attractive
non-functional prefabricated toilet block. No legal tenure was
Ingiven.
2007, a new plan was exhibited by amc and srdc at the Gujarat
Let us consider what this eviction reveals about flexible gov
government's Vibrant Gujarat Global Investor Summit. This
erning. AMC argued that the evictions were for the building of a modified land-use plan for an 11 km stretch of the river.
showed
new bridge across the river and the families were therefore reset
While slum relocation sites were still allocated on the developed
tled according to the policy in the rest of the city. But the fact was
riverfront, the largest of the sites had been moved to the added
that there was still no concrete r&r plan under the srd stretch
project. further north, away from its earlier central location,
The confusion about who would or would not be displaced which was instead allocated for commercial facilities and a con
under
the project is partly what made such an argument viable. In other centre. Development was also proposed in a few more
vention
words, the absence of a clear plan for r&r under the srdriverfront
project slum pockets than in the 1998 proposal.
allowed the possibility of evicting groups of riverfront residents
But around this time, amc had also begun to finally formulate
under other projects. It is worthwhile to also note thatanwhile
r&r policy, and things then turned in a direction that allowed
bridge construction was not funded under the srd project,
for both
even more significant modifications to the land-use plan. In
were contiguous projects, and the construction of a number
2005, of
the central government had formulated the Jawaharlal
Nehru National Urban Renewal Mission (jnnurm). Instead of
bridges was important for realising the srd plan, whose land-use,
road networks, and so forth had all been planned accordingly.
using the srd finances for r&r as earlier planned, amc now
54 january 14, 2012 vol xlvii no 2 E5E3 Economic & Political weekly
SPECIAL ARTICLE
turned to jnnurm funds for financing this component. At the by inclusion, over the next decade, the proposal was refrac
same time, slum relocation sites were shifted away from the riv through the institutional and political regimes shaping
erfront, allowing for further gentrification of the proposed river project's implementation, leading to flexible governing of the riv
front. The early formulation of a clear r&r plan and early con front urban poor by srdc and amc. This involved numerous pr
struction of resettlement housing on the riverfront - for instance, tices such as multiple and shifting terrains of compensation, f
through phasing the project such that the resettlement sites were mentary evictions and piecemeal resettlement. In this mann
built on the riverfront as other components of the project were these state authorities pursued an ambivalent approach vis-ä
implemented10 - would not have made possible these later the urban poor, engaging in multiple and competing practices
changes to the larger project. It is through this flexible governing well as shifting practices according to their own changing c
approach that the state authorities kept open the possibilities for lations and in response to changing external pressures.
gentrifying the riverfront further than originally proposed. Here, the role of the judiciary emerged as crucial in exert
pressure on these authorities to provide resettlement to the
Piecemeal Resettlement: Even after an r&r policy was submitted fected families. However, while the judiciary's stay order provi
by AMC and srdc to the courts in mid-2008, flexible governing much-needed protection against eviction and the courts bec
continued, albeit in other ways. The r&r policy stated that (1) about an important arena for negotiating compensation, the judi
8,000 families had been found to be fully affected and 4,000 partly process was far from a guarantor of justice for the riverfront sl
affected by the project; (2) fully affected families would be reset residents. The stay order only applied to evictions and not t
tled under jnnurm; and (3) a December 2002 cut-off date would project as a whole, and the court did not mention any time
be used since the slum survey was completed then. Resettlement for the submission of a r&r policy. This enabled amc and sr
provisions, such as the amount of beneficiary contributions and flexible governing to continue for years, as other components
resettlement unit size, were also outlined. The application to the the SRD project continued to be implemented on the riverfr
courts went on to explain that amc and srdc were seeking the without any clear commitments on r&r, while holding out a va
court's permission to resettle 416 families from nine different loca promise of inclusion. In this context, small evictions were a
tions on the river "on a priority basis". It is instructive to pay atten attempted on the riverfront, often in the name of other proje
tion to the language in the application: "Thickly populated slum Without strong grass-roots mobilisation, the stay order was u
pockets on the both sides of the river are at present hampering the ble to protect the residents against eviction. Where strong gr
ongoing work of construction". And further:11 roots opposition emerged, amc shifted its practices to deal w
The whole project has come to a grinding halt insofar as the locations this, appease the residents temporarily and continue pro
where project affected people are living on the banks of Sabarmati. construction. Even when an r&r policy was finally submitt
For this purpose, [we] have framed the Draft Resettlement and Reha to the courts, the resettlement process began in a piecem
bilitation Policy for the hutments/Project Affected Families Oafs') of
fashion, with amc and srdc requesting - and being granted - t
Sabarmati River Front Development Project.
court's permission to displace and resettle residents as and wh
It is clear from the language that resettlement was perceived they became obstacles to the project's continued construction.
by the state authorities as necessary, not for attending to the well Under these processes of flexible governing over the past
being of residents but for continuing project construction. Even ade, the riverfront slum residents have thus been treated as ben
after the court granted permission for this relocation, some amc ciaries and non-citizens whose lives can be placed in a protract
officials threatened many of these families and attempted to shift state of limbo, about whom decisions can be made suddenly, with
them to a site other than the one agreed upon and give them warning, upsetting and unsettling lives and livelihoods with
smaller houses, than mentioned in the civil application, snam any thought to their presents or futures, rather than as citizens w
leaders quickly approached their lawyer who wrote a letter to have a right to know, to plan their presents and futures, and hav
amc and SRDc to remind them of the court's orders.12 legitimate voice in decision-making. This flexible governing
More than a year later, in December 2009, amc and srdc also allowed for various changes to the larger project that mig
submitted another civil application to the court, seeking permission not otherwise have been easily possible. Thus, the use of jnnur
to relocate another 4,000 families "so that cleaning work, construc funds made possible the construction of larger resettlement un
tion of road, etc can be taken up".13 In March 2010, as the process than originally proposed and the allocation of a lesser percent
of the actual relocation of these 4,000 families was unfolding, the of the reclaimed land for commercialisation, since the finances
amc and srdc submitted a status report in response to a court or R&R no longer needed to be raised by the sale of reclaimed lan
der. The report outlined details for relocating another 1,600 house The fact remains, however, that these funds have been used
holds. Thus, resettlement has been articulated and carried out in a facilitate the gentrification of this central urban space of Ahmeda
piecemeal way, informing and relocating residents as and when by moving resettlement housing away from the riverfront.
they became obstacles to continuing project construction. A new land-use plan (not yet in the public domain) has recent
been finalised on this basis. Research on the plan and how
Conclusions unfolds in the coming years will reveal the extent to which
This paper has analysed the politics of inclusion in theriverfront
context ofis ultimately gentrified. The politics of inclusion ar
the SRD by casting an eye over the project between 2000
lated and
through flexible governing has therefore involved lit
2010. While the initial project proposal articulated a co-optation
commitment to notions of participation, equity and social just
SPECIAL ARTICLE
even though it is currently leading to the resettlement amidst the rubble through the monsoon season. Meanwhile, the
of large
AMC decided to extend the cut-off date to 31 December 2007, and
numbers of riverfront slum residents in two-bedroom flats con
structed under jnnurm within the city's municipal limits. snam submitted an additional list of approximately 4,000 house
Although the resettlement process ongoing since 2009 and theholds, noting that they were missing in the amc's list. In July 2011,
the court ordered the amc to resettle all these households. It has
implications of resettlement for people's lives have been beyond
since become clear that the snam's list did not include all residents.
the scope of this paper, it is important to briefly take note of
the processes, dispossessions and contestations that have been
There are widespread allegations that some local leaders asked res
unfolding. In early 2010, on the court's orders, a six-member
idents for money to be put onto the lists. However, since the court
has become the primary arena of negotiating compensation and
committee of project-affected households, which included snam
leaders, was established to "assist" the amc in the rehabilitation
SNAM is the petitioner in the pil case, the ongoing resettlement is
of the slum-dwellers. The amc also appointed a committee
being shaped primarily through the amc's negotiation with this ac
tor. The amc, which is only interested in completing resettlement
headed by justice Buch, a retired high court judge, to look into
slum-dwellers' grievances concerning r&r. The resettlement
quickly in whatever way possible so as to clear the riverfront land,
has been more than glad to go along with this process, instead of
processes that have since unfolded have, however, been fraught
with dispute. Over the past year, applications have been submitted
insisting to the court that it should carry out a more recent survey or
establish residents' committees to ensure more inclusivity.
to the Buch Committee by thousands of residents claiming that
they have been denied resettlement. Despite the civil applicationFlexible governing and its politics of inclusion analysed in this
paper - as well as the resettlement processes unfolding over the
and the status report asking for the court's permission to quickly
resettle 4,000 and 1,600 households, respectively, only around
past year - contradict official representations of the srd project
2,000 families had been resettled by June 2011. as "an inclusive project"14 and as "shaping Ahmedabad's future as
a city-oriented towards residents' needs and poised for responsible,
Moreover, in early May 2011, the amc carried out a number of
inclusive growth".15 They also reveal the play of inclusionary and
forced demolitions on the riverfront. It was only after slum residents
exclusionary processes vis-ä-vis the urban poor that are enabling
approached the court that the demolitions stopped. But approxi
mately 2,000 houses had been bulldozed, forcing people to live
grand visions of city making in contemporary Ahmedabad.
NOTES 13 Civil Application 13334 of 2009, p 1. Development", report prepared for SRDC,
Ahmedabad.
14 Last accessed 30 August 2on:http://www.sabar
1 Despite an Environmental Impact Assessment
matiriverfront.com/
and various consultants giving the project the Ghertner, Asher (2008): "Analysis of New Legal
15 The large
green light for narrowing the river through description of the project has since been changed Discourse behind Delhi's Slum Demolitions",
scale land reclamation, there continue to be con
on this webpage. Last accessed 11 May 2011: http:// Economic & Politcal Weekly, 43(20): 57-66.
cerns about environmental implications. www.sabarmatiriverfront.com/2/project Harvey, David (1989): "From Managerialism to Entre
2 The Board also includes two engineers and the preneurialism: The Transformation in Urban
Executive Director of Housing and Urban Devel Governance in Late Capitalism", Geografiska
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ernable (Dean 1999). Class City in the Making", Mute, 2(3): 88-95.
aged Resettlement in Mumbai", Environment and
4 Interviews with Bimal Patel, 22 April 2005;
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Mirai Chatterjee, SEWA, 6 July 2005. Right to the City in Millenial Delhi", Environment
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the cut-off date had not been sanctioned Chatterjee,
by AMC's Partha (2004): The Politics of the Gov ment Ahmedabad", report prepared by SRDC,
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Special Civil Application 6280 of 2005 (Moham the Time of Hindutva: City Imagineering, Place Sabarmati Riverfront Development Project",
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velopment Authority), filed on 7 April 2005. ship: Perspectives on Contested Spaces in Indian ship and Mega-Project Development in Globalis
10 The 1998 proposal had mentioned the possibility of Cities (New Delhi: Sage). ing Mumbai" in R Desai and R Sanyal (ed.),
phasing the project such that building of resettle Doshi, Sapana (2011): "The Politics of Persuasion: Urbanising Citizenship: Perspectives on Contested
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11 Civil Application 6137 of 2008, p 6, my emphasis. ship: Perspectives on Contested Spaces in Indian ance in Urban Management and the Shifting
12 Letter by Girish Patel Associates to AMC and Cities (New Delhi: Sage). Geometry of Power in Mumbai", Development and
SRDC, 1 September 2008. EPC (1998): "Proposal for the Sabarmati Riverfront Change, 40(5): 853-77
56 January 14, 2012 vol xlvii no 2 CEd Economic & Political weekly
SPECIAL ARTICLE
Impact of Tariff Reduction according to Doha

Modalities on India's Trade of Agricultural Prod
BISHWANATH GOLDAR, DEVENDER PRATAP, YASHOBANTA PARIDA
1 Introduction
This article attempts to estimate how India's trade in
agricultural products will be affected by tariff reductions
and export of agricultural products to and from markets
according to the tiered formula of the 2008 draft This article
in the Unitedattempts to assess
States (us) and European Union (eu) the
where increase in India's import
modalities in the Doha round of the World Trade
such likelihood exists, provided the tiered formula of tariff reduc
Organisation. The estimates indicate that the reductions tion given in the Revised Draft Modalities for Agriculture1 is
in agricultural tariff rates will lead to an increase in applied.

India's In assessing the likely impact of the tiered formula
of tariff reduction on India's exports to the us and the eu, the
imports of agricultural products by about 1% and an
issue of preferential access to these markets available to some
increase in its exports of agricultural products to the usis important. The reduction in most favoured nation
countries
(mfn) tariff would cause preference erosion, giving India an
and us markets by about 2% to 4%. India has probably
more to gain from the implementation of tariff cutsadvantage at the cost of the countries currently enjoying pre
ferential access. Thus, how India's market access is enhanced by
according to the tiered formula than to lose from it.
erosion of preferences assumes significance. Evidently, while
However, the overall effect of the tariff cuts on India's
making an estimate of increase in India's exports due to the
agricultural exports and domestic agricultural application of the tiered formula of tariff reduction, this aspect
production would be small. needs to be incorporated into the analysis.

The analysis of the likely effect on India's imports of agricul
tural products has been carried out at the 6-digit hs level cover
ing about 600 tariff lines.2 The analysis of the likely effect on
India's exports to the us and eu has also been carried out at
the 6-digit hs level, but in these cases the top 100 agricultural
products exported by India are considered separately for the us
and the eu. The applied tariff rates considered for the analysis
are for 2008. The trade data considered for the analysis relates to
2006-07 to 2008-09.
The impact of the Doha round reforms on India's agricultural
trade has been assessed earlier in a study undertaken by cuts
International (2010). A study by Jean et al (2006) also provides
some indication. We take up the latter study first. Jean et al
consider a tiered formula for tariff cuts on agricultural products,
similar to the one specified in the 2008 Revised Draft Modalities
document referred to in note 1. According to their estimates, the
application of the tariff cuts would lead to a 4.4 percentage point
decrease in average tariff on India's agricultural imports (from
base level of 54.5%) and 2.6 percentage point increase in average
tariff on India's agricultural exports (from base level of 10%). On
the basis of these estimates, one may perhaps conclude that the
tariff cuts will lead to a higher percentage increase in India's agri
The study was conducted under the UNCTAD-India project and was
financially supported by the project. cultural exports than in agricultural imports.
The cuts International (2010) study considers a more compre
Bishwanath Goldar (bng@iegindia.org) is with the Institute of Economic
Growth, Delhi. Devender Pratap (dpratap@ncaer.org) is with thehensive agricultural trade reform. Their estimates are based on
National Council of Applied Economic Research, New Delhi. the following assumptions: (a) developed countries cut agricul
Yashobanta Parida (yashparida@gmail.com) is with the Institute of
tural tariffs by 36%, and developing countries, including India,
Economic Growth, Delhi.
cut the same by 24%;3 and (b) both developed and developing
Economic & Political weekly 03£53 January 14, 2012 vol xlvii no 2 57
SPECIAL ARTICLE
countries reduce domestic agricultural subsidies by 33%treatment

and for Sensitive Products is 36%. Regarding the cut to be
made by developed country members, the document specifies,
completely eliminate agricultural export subsidies. The estimates
obtained in the study (based on a sequential dynamic computable
Should application of the tiered formula treatment..inclusive of
general equilibrium (cge) framework) indicate that the percentage
treatment for Sensitive Products.. .and additional cuts made as provi
increase in India's exports of agricultural products will be higher
for elsewhere in these modalities relating to tariff escalation and tropic
than that in imports. The estimated increase in export volumeproducts
of result in an overall average cut less than 54%, an additio
wheat (simulation results for 2008) is 5.34% while the increaseeffort

in shall be made proportionately across all bands to reach that targ
import volume of wheat is 0.95%. A similar pattern is observed

There is a similar provision for developing country member
for paddy (3.24% as against -0.28%), oilseeds (1.68% as against
The developing country members are to be given the flexibi
0.70%), cotton (1.76% as against 0%) and other crops (0.92% as
to apply lesser reductions applied in a proportionate man
against 0.75%). This article contributes to this body of literature
across the bands, to keep within the maximum specified avera
level of 36%.
which focuses on the impact of the Doha round of agricultural
Attention may be drawn here to the provision of declari
trade reforms on India's trade in agricultural products and hence
on its agricultural sector. items as sensitive products. The Revised Draft Modalities d
The article is organised as follows. Section 2 briefly describes
ment6 specifies that each developed country member shall h
the tiered formula of tariff reduction. The methodology adopted
the right to designate up to 4% of tariff lines as "sensitive produ
for the assessment of the likely effect of the tiered formula of and developing country members shall have the right to d
tariff
reduction on India's agricultural trade is outlined in Section
nate3.up to one-third more of tariff lines as "sensitive products
The estimates are presented and discussed in Sections 4 and 5.
is noted that members may deviate from the otherwise applica
An econometric issue relating to the estimates is taken up in Sec reduction formula in final bound tariffs on products de
tiered
tion 6. The last section summarises and concludes the discussion. nated as sensitive. This deviation may be one-third, one-half
two-thirds of the reduction that would otherwise have been
2 Tiered Formula of Tariff Reduction
required by the tiered reduction formula.
The tiered formula applicable to developed countries This
given in is not taken into account in the analysis presented
aspect
the December 2008 Revised Draft Modalities document (paragraph
here due to the complications it introduces in the computation of
the effects of tariff cuts on trade. As a result, the estimates pre
61) on the draft modalities for agriculture is reproduced below:
sented here somewhat overstate the likely impact of the tiered
Developed country Members shall reduce their final bound tariffs in
formula
six equal annual instalments over five years in accordance of agricultural tariff cuts on India's trade of agricultural
with the
following tiered formula: products. It appears, however, that the basic conclusions of the
(a) where the final bound tariff or ad valorem equivalentstudy
is greater
would not be different even if the effect of the provision of
than o and less than or equal to 20%, the reduction shall be 50%;
declaring a certain percentage of agricultural products as "sensi
(b) where the final bound tariff or ad valorem equivalent is greater
tive" and thus deviating from the tiered reduction formula were
than 20% and less than or equal to 50%, the reduction shall be 57%;
(c) where the final bound tariff or ad valorem equivalentincorporated
is greater in the estimates.
than 50% and less than or equal to 75%, the reduction shall be 64%;
and 3 Methodology
(d) where the final bound tariff or ad valorem equivalent is greater
The estimation of the likely increase in India's imports and exports
than 75%, the reduction shall be 70%.4
of agricultural products to and from the us and the eu that will
The four slabs of final bound rate or ad valorem equivalent for
take place after applying the tiered formula of tariff reduction has
developed countries, as given above, are: (a) 0-20%; (b) greater
been done in the following way. First, the final bound rates or ad
than 20% and less than or equal to 50%; (c) greater thanvalorem
50% andequivalents for the selected tariff lines are considered
less than or equal to 75%; and (d) greater than 75%. The tariff
and the tiered formula of tariff reduction is applied. This yields
cuts to be made for each of the slabs are specified. For the
developing
new bound rates. Then, these are compared with the applied
rates
countries, the four corresponding slabs are: (a) 0-30%; (b) for 2008 to derive the cuts that have to be made in the
greater
than 30% and less than or equal to 80%; (c) greater thanapplied
80% andrates to bring them within the bound rates. This gives the
less than or equal to 130%; and (d) greater than 130%. The pro
change in applied mfn tariff and hence the percentage change in
posed tariff cuts for the four slabs for developing countries are
the price (tariff inclusive) of goods imported on mfn basis. Given
two-thirds of the cuts specified for developed countries.the change in price and the price elasticity, the changes in India's
The cuts are specified for the final bound rate or ad valorem
imports and exports of agricultural products are computed. As
equivalent. In the cases of non-ad valorem tariffs, their mentioned
conversionearlier, the analysis is carried out at the 6-digit hs
into ad valorem equivalents (aves) is to be done following
level. Forthe
analysing increases in India's imports, all tariff lines for
agriculture
methodology set out in Annex a to tn/ag/w/3 of 12 July 2006.5 are considered. On the other hand, for analysing
It is proposed that the developed country members will be
increases in India's exports, the top 100 items (tariff lines)
required to make a minimum average cut of 54%. On exported
the other
to the us and eu markets are considered.
hand, the maximum overall average cut on final bound
A tariffs
key parameter in the estimation of the likely effect of tariff
that any developing country member shall be required to under
reduction on agricultural trade is the price elasticity of demand.
take as a result of the application of the formula inclusive
This of the
is discussed next. The theoretical framework underlying the
58 January 14, 2012 vol xlvii no 2 E3X3 Economic & Political weekly
SPECIAL ARTICLE
estimates of increases in imports and exports is taken up first,

region that has preferential access to the market. sD = share of
followed by the methods actually applied to obtain price elasticity.
absorption met from domestic supply of the product. sM = share
of imports in domestic absorption of the product. sm = share of
3.1 Price Elasticity MFN imports in aggregate imports of the product. sm T = share of
LetX4 denote aggregate demand for an agricultural productMFN in aimports out of total absorption of the product.
country, the us, for example. Let AD andXM be, respectively, theGiven these notat
domestic and imported components of the demand. The substitu
Price
tion elasticity at this level is given by a"1. The demand functions, Elasticity: E
following Mensbrugghe (2009), may accordingly be specified product
as: with respe
ej„
d,m m, T = Cm. sm T ...(7)
XA ...(1) Elasticity of demand for total impor
respect to price of mfn imports (tariff i
XA ...(2) smt
Ml,m m
Dm = "0m- Srv sm •••(8)
Elasticity of demand for m

Ji/Ci-am)
PA = aPD + aPMP -(3) respect to price of mfn impo
In these equations, PA is the aggregate price of the agricultural em m =
m,m mL-aw+
DJs m[ow - om sn] ...(9)
product, which is taken as a non-linear aggregation of two com Elasticity of demand for
ponent prices: the price of domestically sourced product (pd) and with respect to price of mf
the price of imported product (pmt). ep,n1 = Sm[oW-omSD] -(10)
In the second nest, aggregate imports, XMT, are broken up by
regions. Two exporting regions are considered: one comprising of3.2 Computation of Price Elasticities
countries that have preferential access to the market (hereafter, For estimating the likely increase in India's agricultural exports
region with preferential access or region p) and the other comto us and eu markets (top 100 6-digit tariff lines chosen in each
prising of countries that are subject to mfn tariff (hereafter, mfncase), the formula in Equation (9) is used. For some of the tariff
lines out of the selected 100, India has preferential market access.
region or region m). For these two regions, subscripts p and m are
used. Following Mensbrugghe, the demand functions for importsIn those cases, a somewhat different treatment is given, which is
from regions p and m may be specified as: discussed at the end of this section. To apply the formula in Equa
tion (9), the substitution elasticities (cf and a"1) have been taken
XM=ap(f^fxMT from the Global Trade Analysis Project (gtap) database. These
p v PMp; are shown in Appendix 1 (p 64).
Besides <? and a"1, data is needed on sm andsD for the computation
XMn = a-f™lfXMT
V PM J of price elasticity, em m. The share of domestically sourced product in
N m'
total absorption, sD, has been computed from the data on produc
PMT
L =
p [aPPM
m J '-°w+ amPM >-°wl1/(l~ow)
tion, imports and exports. Since domestic production data is not
In the above equations, the
available at the 6-digit hs level, it is not subst
possible to compute sD at
ports from the that
two level. However, such data could be obtained for
regions is 57 sectors
denoof
from the two the economy8 and these have
regions are been used to compute sD. Let Q de by
given
generality, it note domestic production,
may be xassumed exports and mt imports. Then, thetha
and freight, while
share of imports in PMm is
total absorption, that is, sm the
T, is obtained as c
value plus mfn tariff
Sm,T = MT/(Q+MT-X) at the rate ...(11) r
gate price of imports,
After sm T is computed, sD is obtained aspmt, is a
prices of imports from the two reg
The nested structure of
The computed figures on sD are available only for ademand
limited
tions (1) to (6) number of sectors. The computed
above, isfigure forcommonly
each sector has been
equilibrium models
applied to all 6-digit tariffdealing
lines falling within that sector. The same with
elasticity between
applies to the gtap
domestically
elasticities of substitution. The elasticities are sou
another substitution elasticity
available for a limited number of sectors. The elasticity for each
imports (see, for instance,
sector is applied Polaski
to the 6-digit hs lines falling within the sector.
From the demand functions
To compute the share of mfn imports in us imports of agricultural in E
price elasticities can
products for easily
each 6-digit hs tariff lines, a list of countries that be
have der
for the been gaining substantially of
computation from preferential
the access to us markets
price e
of agricultural products has been drawn up based on a study
Notation: o™ = undertaken
elasticity of
by Dean and Wainio (2009). This list includes over 20 subst
ports of a product
countries. Next, data
and on total us agricultural
domestic
imports and imports su
ticity of from the countries in the list, has beenbetween
substitution obtained at the 6-digit hs im
region paying mfn tariff
level for 2008. The ratio of the latter to the former gives theand
import im
Economic & Political weekly nrra January 14, 2012 vol xlvii no 2 59
SPECIAL ARTICLE =
share of the region with preferential access; and one minus the ratio
Import-Export Databank of the Ministry of Commerce. The
gives the share of mfn imports, that is, sm in Equation relates
(9). to 1999-2000 to 2008-09. The unit value of import
In a similar way, the share of mfn imports in agricultural
taken as a proxy for the price of imported goods. The tariff
imports has been computed for the eu at the 6-digit hs for
level.
theIn products
this are from diverse sources. An index of the pric
case, the list of countries that have been gaining from
imported
preferen
goods inclusive of tariff was formed. This was div
tial access to eu markets has been prepared with theby
help
theof the
domestic price of the product. For this purpose, the
study undertaken by Low et al (2009). The list of countries
availablewith
price index from the official series on wholesale
substantial preferential access to us and eu markets of agricul
index was taken. The quantity imported is regressed on re
tural products is given in Appendix 2 (p 64). price and real gross domestic product or gdp (which is the activ
Turning to the study of the likely increase in India's imports,
income variable). A log-linear specification is used. The equ
the price elasticity in this case was computed withwas theestimated
help of first for each product separately, and then, o
Equation (8) above. The substitution elasticities werebasis
takenoffrom
the estimates of price elasticity obtained, the pro
the GTAP database (see Appendix 1). The share of a domestically
were grouped. Finally, fixed effects model was estimated fo
sourced product in total absorption was computed from(the
groups the estimates are shown in Appendix 3, p 64). The
Input-Output table for 2006-07 prepared by the Central Statistical
elasticity estimated for a selected item of a chapter was t
Organisation (cso).9 As in the case of the us and eu, taken
the share ofprice elasticity applicable to all other tariff lin
as the
domestically sourced products in domestic consumption of agri Having estimated the price elasticity, it is appli
the chapter.
cultural products in India is available for a limited number of sec
the change in mfn tariff to compute the change in India's impo
tors, and the share computed for a sector has to be applied to all
3.3 Items in Which India Has Preferential Access
6-digit HS codes falling within a sector.
To compute the price elasticity by using EquationFor
(8),the
data is
estimation of likely increase in India's exports of agricult
needed also on sm, the share of mfn imports. This does products
not seem to
to the us and eu markets in respect of products for wh
be an important issue in the analysis of the effect of tariff reduction
India has preferential market access, one cannot apply Equation
on India's agricultural imports. Hence, this aspect has not taken
If India had duty-free access to the markets, Equation (10) c
have
into account in the estimation of price elasticity for each been
of the used. However, India has preferential access to us
590
tariff lines. In the case of products, where an increase in
euimports
marketsofunder the Generalised System of Preferences or g
while acalcula
about or more than Rs 25 lakh is indicated by preliminary number of other countries have access under gsp and a
tions, the price elasticity has been more accurately computed by arrangements which provide substantially gre
under other
taking into account the decomposition of total imports into mfn
benefits. The tariff preference enjoyed by such countries is o
imports and preferential imports. In other cases, this
muchaspect
moreis than the preference that India enjoys under gsp
explain
ignored, that is, sm is taken as one. This would not make much this
difpoint further, consider the us imports of agricult
ference to the results. For most of the items for which s_ is taken
products as India. The gsp coverage is 40% and the average tar
from
preference
one, there is no change in applied tariff rate after applying theis 4.2% (Dean and Wainio 2009). This may be
tiered formula of tariff reduction, and therefore, a more accurate
trasted with the level of tariff preference that some other coun
estimation of price elasticity will make no difference.have
For under
others,
other arrangements. Belize, for instance, has 11% t
there is a change in applied tariff, but the expected increase in under the Caribbean Basin Trade Partnership A
preferences
India's imports indicated by preliminary calculations is small
(cbtpa) as against 3.2% under gsp. Colombia has 6.6% aver
(less than Rs 25 lakh), and hence, a more accurate estimation of
tariff preference under the Andean Trade Preference Act (atp
price elasticity will change the final results only marginally.
against 4.6% under gsp. Antigua has 14.8% average tariff pr
We would like to draw your attention to the fact that
encestudies
under the Caribbean Basin Economic Recovery Act (cb
using GTAP data apply a common set of substitution elasticities
as against to
0.2% under gsp. Zambia has 92.4% average tariff p
all countries. In many studies on preference erosion or onunder
erence the the African Growth Opportunity Act (agoa
effect of agricultural trade reforms, a common set ofagainst
substitution
5.8% under gsp. There is a similar picture in the eu mar
elasticities are applied across a large number of countries.10
Making a One
comparison of the overall preference margins for ag
may raise questions about applying the same substitution elasti enjoyed by different countries in the eu market,
tural products
city to India's imports as those being used for the us,found
the eu andthe differences are sharp. The overall average pre
that
other developed countries. To address this concern, ence
an alternate
margin for India is 1.5%, while it is 10% for Bangladesh,
set of estimates of increase in India's imports of for
agricultural
Zimbabwe, 9.4% for Malawi, 9.2% for Zambia, and 8.9%
products following the implementation of the tiered Tanzania
formula of
(Mensbrugghe 2009). The fact that the level of ta
tariff reduction has been made using econometrically estimated
preference enjoyed by India is significantly less than the prefere
price elasticity from India's trade, price and tariff enjoyed
data (rather
by some other countries in the us and eu implies th
than using the gtap substitution elasticities). reduction of mfn tariff need not always be disadvantageous to In
For econometrically estimating price elasticityeven
of import
though the country has preferential access. If data were
demand, one important product (6-digit hs level) was able
chosen for imports made by the us and eu from different co
on the
each chapter included in the list of agricultural products.
tries, Data
alongon
with the level of tariff preference being given to eac
quantity and value of the product was taken for 10 years
themfrom
for the
each of the 100 products chosen for the study, a car
6o
January 14, 2012 vol XLvii no 2 CaEl Economic & Political weekly
SPECIAL ARTICLE
Table 1: India's Tariff Rates on Agricultural Products reduction in bound tariff is found to be about 43%. Since this is
Bound Rate, No of %of Value of %of Average NoofLinesinwhich % Out of
Range, % Lines Lines Imports* Imports Applied Applied Rate Will Total higher than the specified maximum value of the average tariff cut
Rate Number of
(Rscrore) Fall after Applying
the Tiered Formula Lines
for developing countries (36%), the rates of reduction in bound
0-30 24 4.1 1,170 3.4 5.8 4 16.7 rates of duty in the different slabs are lowered proportionately to
>30and<= =80 86 14.6 6,730 19.6 27.5 34 39.5 ensure that the average value of tariff cuts does not exceed 36%.
>80 and <= =130 263 44.6 13,513 39.3 28.1 10 3.8
Out of the 590 tariff lines selected for the study, a cut in the
>130 217 36.8 12,997 37.8 40.8 23 10.6
applied rate from the 2008 level will be necessary in 71 cases. These
Total 590 100.0 34,411 100.0 31.8 71 12.0
* Annual average for the period 2006-07 to 2008-09.
71 tariff lines accounted for about 4.5% of India's agricultural
imports in the period 2006-07 to 2008-09. Evidently, the effect
assessment of the likely impact on Table
India's exports could have been
2: Cuts in Applied Tariff according to the Tiered Formula, India, Agricultural Products
made. In the absence of such detailed information,
Bound Rate, a simplified
No of Lines in Which Applied Tariff Will Have to be Cut Average Applied
Average Range (%) Lines No of Percentage Point Cut Tariff in Lines in
method has been adopted to estimate the effect
Lines
ofNecessitated
Applied
mfn tariff
by Lowering Which Applied Tariff
Rates Need Not be Cut
reduction on India's exports, as explained below: Tariff, 2008 of Bound Rate of Duty
0-30 24 4 22.4 6.3 2.5

(a) For products in which the market share of countries with pref
>30and<=80 86 34 33.7 5.5 23.4
erential market access listed in Appendix 2 is more than 25%, it is
25.9 >80 and <=130 263 10 83.6 17.6
assumed that the increase in India's
>130 exports
217 will
23 132.6be half
41.1 of the
29.9
estimate based on Equation (9) (that

Total is, half
590 71 of what it would
Source: Authors' calculations.
have been if India were supplying on mfn basis).
(b) For products in which the market share
Table 3: Increase of
in India's the
Imports countries
of Agricultural Products Due with
to Tariff Cuts (Rs crore)
HS Code
preferential market access listed in Appendix
Description
2 is between 5%Change in
Imports
and 25%, it is assumed that the increase
90111 in India's exports will be
Coffee (excluding roasted and decaffeinated) 102.1
a quarter of the estimate based on220830

Equation
Whiskies (9). 44.2
80810 share
(c) For products in which the market of the countries with 42.5
Apples Fresh
Ethyl alcohol of an alcoholic strength of < 80% volume, not 220890
preferential market access listed in Appendix 2 is less than 5%, it
denatured;spirits and other spirituous beverages (excluding,
is assumed that there will be no increase in India's exports. In
whiskies, rum,taffia,gin, geneva, vodka, liqueurs and cordials,
such a market, the supply is expected
andto be
certain predominantly
other alcoholic preparations) on 20.1
80290
mfn basis, and a reduction in mfn tariff would
Nuts, fresh have
or dried (excluding an Brazil
coconuts, adverse
nuts, cashew nuts,
almonds, hazelnuts, walnuts, chestnuts and pistachios) 11.5
effect on the suppliers currently enjoying gsp benefit. Therefore,
90411 Pepper of the genus Piper, neither crushed nor ground 10.9
the assumption of no increase in India's
220429 exports seems reasonable.
Wine of fresh grapes, including fortified wines, and grape
must whose fermentation has been arrested by the addition
4 Increase in India's Imports of Agricultural Products
of alcohol, in containers of > 2 litres (excluding 10.9
sparkling wine)
90240 Black fermented tea and partly fermented tea, in immediate
At the 6-digit hs level, there are about 650 tariff lines for agricul 8.8
packings of > 3 kg
tural products. Of these, India's imports
40590 were
Fats nil from
and oils derived during the three
milk, and dehydrated butter and ghee
year period 2006-07 to 2008-09 for about 60
(excluding products.
natural butter, recombinedAnalysis 7.9
butter and whey butter)
Liqueurs and cordials 220870 7.4
of the impact of tariff reduction has therefore been carried out
120791 Poppy seeds, whether broken or not broken 5.7
for 590 6-digit tariff lines in which there were imports during the
220421 Wine of fresh grapes, including fortified wines, and grape
period from 2006-07 to 2008-09. must whose fermentation has been arrested by the addition
The average bound rate of duty in India
of alcohol,for the
in containers of <=selected
2 litres (excluding 590
sparkling 4.6
wine)
220850 Gin and Geneva 3.5
agricultural tariff lines is about 112%. Average applied rate
220820 Spirits obtained by distilling grape wine or grape marc 2.4
(2008) is about 32%. In a vast majority
40210
of tariff lines, the applied
2.3
Milk and cream in solid forms, of a fat content by weight of <= 1.5%
rate is substantially lower than the bound
80820 rate.
Fresh As
Pears and shown in Table 1,
Quinces 1.8
in 263 tariff lines (out of 590), the220860

boundVodka rate is in the range of 1.8
80% to 130%, while the average applied

40410 Whey rate is whey
and modified only about 28%. 1.2
Green tea in immediate packings of > 3 kg 90220 1.1

The implication is that even if the bound rate is cut according to
90230 Black fermented tea and partly fermented tea,
the tiered formula of tariff reduction, the applied rate will in most 0.9
in immediate packings of <=3 kg
cases be lower than the reduced bound rate and no cut in the 71290 Dried vegetables and mixtures of vegetables, whole, cut,
applied rate will be necessary to bring it within the bound rate. sliced, broken or in powder, but not further prepared
(excluding onions, mushrooms and truffles, not mixed) 0.8
There are 217 tariff lines in which the bound rate exceeds
200911 Frozen orange juice, unfermented (excluding containing spirit)0.8
130%. The average applied tariff rate in these lines is about 41%.
80610 0.7
Fresh Grapes
Clearly, in most of these items, the applied rate is well below220840
the Rum and Tafia 0.7
bound rate. Combining this tariff slab with the one below that,
80620 Dried Grapes 0.6
200919
there are 480 tariff lines in which the bound rate is more than 80%. Orange juice, unfermented (excluding containing spirit,
frozen, and of a Brix value <= 20 at 20°C) 0.5
Out of these 480 lines, only in 33 lines is a cut in applied tariff nec
40690 Cheese (excluding fresh cheese, including whey cheese,
essary after applying the tiered formula of tariff reduction. not fermented, curd, processed cheese, blue-veined cheese,
It may be mentioned here that when the tiered formula is and grated or powdered cheese) 0.5
80510 Fresh or dried oranges 0.5

applied to India's bound rates for agricultural products, the average
Economic & Political weekly EUES January 14, 2012 vol xlvii no 2 6i
SPECIAL ARTICLE
of the tiered formula of tariff reduction on India's importsTable 4: Tariff

of agri Rates, Agricultural Products, US and EU (Top 100 6-digit HS Lines of India's Exports)
Indicator US EU
cultural products will be small.
Average bound rate (%) 16.76(9.93) 12.51
Table 2 (p 61) provides information on the cuts in applied rates
Average applied rate (%) 16.71(9.87) 12.48
that will have to be made after applying the tiered formula for
Percentage point cut necessitated by lowering of bound rateofdut
tariff reduction. In the tariff slab of 30% to 80% bound rate in
Figures ofbrackets show values of tariff rates and tariff cuts if two items ttrac
duty rate of over 350% are excluded.
duty there are 86 lines. Of these, a cut in applied rate will be nec
Table 5: Increase in India's Exports of Agricultural Products to the US
essary in 34 lines. In the slab 80% to 130%, a cut in applied tariff
Tariff Cuts according to the Tiered Formula (Rscrore)
will be necessary for 10 lines. The average cut will be HS
about 18Description
Code Change in Exports
240120 Tobacco, partly or wholly stemmed/stripped, otherwise

percentage points. In the tariff slab of over 130%, a cut in applied
unmanufactured 28.3
rate will be necessary in 23 lines. The average cut will be by about
151620 Vegetable fats and oils and their fractions, partly or wholly
41%. It is evident that in the last two slabs, there are some tariff
hydrogenated, inter-esterified, re-esterified orelaidinized,
8.4
lines that attract a high rate of duty and a significant reduction
whether or not refined, but not further prepared
240110 Tobacco, unstemmed/unstripped 7.4
will have to be made in the applied tariff rate for those lines.
71220 Dried onions, whole, cut, sliced, broken or in powder,
The increase in India's imports of agricultural products that
but not further prepared 5.5
would take place due to the tariff cuts described above is estimated
240399 Chewing tobacco, snuff and other manufactured tobacco and
manufactured
(based on gtap elasticities) at about Rs 302 crore, which is only tobacco substitutes, and tobacco powder,
tobacco extracts and essences (excluding cigars, cheroots,
about 0.9% of the average annual value of agricultural imports in
cigarillos and cigarettes, etc) 5.3
the period 2006-07 to 2008-09 (Rs 34,400 crore). 330124 Oils of peppermint (Mentha piperita), whether or not
terpeneless, including concretes and absolutes 5.2
Table 3 (p 61) shows a list of 28 tariff lines in which the expected
200310 Mushrooms of the genus "Agaricus", prepared or preserved
increase in imports due to tariff cuts is about Rs 50 lakh or more. 4.8
otherwise than by vinegar or acetic acid
These 28 items account for an increase of about Rs 297 crore
40590out Fats
of and oils derived from milk, and dehydrated butter and ghee
4.0
the total expected increase of Rs 302 crore. The largest increases
(excluding natural butter, recombined butter and whey butter)
190190 Other malt extract and food preparations 3.8
are expected to take place in hs codes 90111 (coffee neither roasted
240310 Smoking tobacco, whether or not containing tobacco
nor decaffeinated), 220830 (whiskies) and 80810 (apples fresh).substitutes in any proportion 3.6
The estimates presented above are based on gtap substitution

90420 Fruits of the genus Capsicum or of the genus Pimenta, dried
or crushed or ground 3.1
elasticities. As mentioned earlier, an alternate set of estimates of
200590 Vegetables and mixtures of vegetables, prepared or preserved
the impact of tariff reduction was made using econometrically
otherwise than by vinegar, non-frozen (excluding those preserved
estimated price elasticity of India's agricultural imports (see
by sugar, 2.2etc)
homogenised vegetables of subheading 200510,
150810 2.1
Appendix 3). According to the alternate set of estimates, the
Crude ground-nut oil
190110 Food preparations for infant use, put up for retail sale 2.1
increase in agricultural imports (following the tariff cuts neces
60499 Foliage, branches and other parts of plants, without flowers
sitated by the reduction in bound rates of duty) will be about
or flower buds, grasses, for bouquets or ornamental purposes,
Rs 356 crore, that is, about 1.0% of the average annual value dried,
of 2.0
dyed, bleached, impregnated or otherwise prepared
Other 71080 vegetables frozen 1.6
agricultural imports in the period 2006-07 to 2008-09. This is
200599 Other vegetables and mixtures of vegetables 1.6
broadly in agreement with the first set of estimates. 170490 1.3
Other sugar confectionary not containing cocoa
Going by the alternate set of estimates, in about 24 products,
60390 Other cut flowers and flower buds suitable for bouquets or
1.2
there will an increase in imports by about Rs 50 lakh or more.
ornamental purposes
520100 Cotton, not carded or combed 1.1
This, by and large, is the same list as given in Table 3. However,
In the of
the order differs somewhat. The top three lines in terms period 2006-07 to 2008-09, India's average annual
exports
increase in imports according to the second set of estimates of top 100 agricultural products to the us market were
are:
HS codes 220830 (whiskies), 220890 (other undrd ethyleabout Rs 4,780 crore. Based on the computed changes in the
acchl)
and 220429 (wine of fresh grapes). applied tariff and the price elasticities of demand for different
products, the expected increase in exports is estimated at about
5 Increase in Exports to the US and the EU Rs 101 crore,11 which is about 2.1% of the value of exports of the
top in
An assessment of the increase in India's exports to markets 100 the
agricultural products to the us.
us and eu was done for the top 100 6-digit tariff lines in
For each
the eu-15, the corresponding figure on the value of exports
of the two markets. Table 4 shows the average bound rate and
of top 100 items (6-digit hs) is Rs 7,505 crore, and the expected
applied rates in the 100 products. increase in India's exports of these items is estimated as Rs 311
In most products, the bound rates and the applied ratescrore,
are which
the comes to about 4.i%.12
same or similar, and therefore the cuts in the bound rateTable
after
5 and Table 6 (p 63) give lists of items in which increase
making tariff reductions according to the tiered formula
of exports
willwill be more than Rs 1 crore in both the us and eu
markets
translate into cuts in the applied rate. In the 100 products chosenrespectively.
for the Eu, the reduction in the applied tariff rate is expected to be
6 Econometric Issue
about 7.35 percentage points. In the case of the us, the reduction is
Letwith
by 10.69 percentage points. However, there are two products us now turn to an econometric issue relating to the esti
the increase in India's exports to the us and the eu. The p
exceptionally high tariff. If those two products are not considered,
the reduction in applied tariff is by 5.89 percentage points. that has been followed to make the estimates implicitly
62 January 14, 2012 vol xlvii no 2 EH353 Economic & Political w
= SPECIAL ARTICLE
Table 6: Increase in India's Exports of Agricultural Products to the EU-15 ResultingWhile the above arguments provide some justification for
from Tariff Cuts according to the Tiered Formula (Rs crore)
HS code Description
making the assumption of proportionate effect of mfn tariff cuts,
Change in Exports
there
100630 Semi-milled or wholly milled rice, whether or not polished or glazed is
173.8 obviously a need for empirical verification. An adequate
240120 Tobacco, partly or wholly stemmed/stripped, otherwise verification of the assumption is beyond the scope of this article,
unmanufactured 38.4
but an attempt is made in that direction. For this purpose, an
240110 Tobacco, unstemmed/ unstripped 15.5
econometric analysis of inter-temporal variations in imports of
80610 Fresh Grapes 10.8
40891 Dried birds' eggs, not in shell, whether or not sweetened

agricultural products from a number of selected developing
(excluding egg yolks) 8.4 countries has been carried out.13 Using data on us imports of agri
210690 Other food preparations 7.8
cultural products (15 major groups) from 12 developing countries14
200799 Jams, jellies, marmalades, purees or pastes of fruit, etc (excluding
for five years (2005 to 2009)/5 the following model is estimated
citrus fruit and homogenised preparations of subheading 7.8
200710)
20230 Frozen, boneless meat of bovine animals 7.7 for each of the countries covered in the study:
170310 7.0
Cane molasses resulting from the extraction or refining of sugar In Mc jt = a- + X In MTJt + ujt .. .(13)
40811 4.8
Egg yolks dried For any agricultural product, M° denotes imports from country
71220 Onions dried 4.1
C and MT denotes total us imports of the product. The subscript;
240130 Tobacco refuse 4.1
60390
is for product (group) and t for year. The hypothesis to be tested
Other cut flowers and flower buds suitable for bouquets or
ornamental purposes 3.3 is that A is equal to one. In the model in Equation (13), if X is equal
100700 Grain sorghum 2.8
to one for a country, then an increase in aggregate us imports of a
200899 Other fruit preparations 2.4
particular product will raise imports from that country by the
70990 Other vegetables of heading 0709, fresh or chilled 2.2
100590 Other maize (corn) 1.9
same proportion and hence its market share will remain the
100820 Millet 1.6 same. The empirical question is whether the estimates of X are
110290 Other cereal flour 1.5 close to one for most of the countries selected for the study,
220720 Denatured ethyl alcohol and other spirits of any strength 1.4 particularly whether it holds for India.
Table 7: Estimation of Elasticity of Demand for Imports of Agricultural Products from The model in Equation (13) is obviously incomplete. Imports of a
Developing Countries with Respect to Aggregate US Imports of the Product
product from a specific country will not only depend on total imports
Country Fixed Effects Model Random Effects Model
Estimate Standard t-statisticforthe Estimate Standard t-statisticforthe of the product by the us but also on inter-temporal changes in price
ofX Error Test of the Null of A. Error Test of the Null
competitiveness of the country in question as well as that of its
Hypothesis, H0:X=1 Hypothesis, H„: A,=1
Argentina 0.626 0.271 -1.38 0.629 0.261 -1.42 competitors. The changes in exchange rate may have a significant
Brazil 0.581 0.325 -1.29 0.400 0.427 -1.41 effect. Nonetheless, a simple model, as in Equation (13), could be a
China 1.263 0.441 0.60 1.430 0.394 1.09 starting point of empirical verification of an assumption that is widely
Colombia 1.533 0.734 0.73 1.376 0.602 0.62
being used in empirical trade literature without much questioning.
Cote d'Ivo ire 0.926 0.378 -0.20 0.941 0.357 -0.17
The estimation of the model in Equation (13) has been done by
Ecuador 1.592 0.656 0.90 1.210 0.564 0.37
both the fixed effects model and the random effects model. The
Guatemala 0.907 0.468 -0.20 1.061 0.432 0.14
India 1.314 0.621 0.51 0.862 0.554 -0.25 results are reported in Table 7.
Indonesia 1.115 0.435 0.26 0.913 0.415 -0.21 It is seen from Table 7 that the estimated elasticity is not statis
Malaysia 1.175 0.960 0.18 1.576 0.765 0.75
tically significantly different from one in any of the cases. Thus,
Philippines 0.964 0.527 -0.07 0.962 0.482 -0.08
the hypothesis that the elasticity is equal to one is not rejected.
Thailand 0.956 0.450 -0.10 0.857 0.419 -0.34
This provides some empirical support to the assumption that an
that when the mfn tariff rate is reduced and the mfn importsincrease
go in demand for imports following a lowering of mfn
up, all mfn suppliers gain proportionately and hence their market
tariff will be shared proportionately by different mfn suppliers.
shares do not change. Is this a reasonable assumption to make? Even if the assumption of unitary elasticity does not seem
To discuss this issue theoretically, the following question mayacceptable
be for all countries selected for the study, it will be noticed
posed: if all suppliers to a market reduce their price by a fixedfrom
per Table 7 that the estimated coefficients for India are 0.86 in the
centage, say 5%, is there a reason to expect the consumers to shift
random effects model and 1.31 in the fixed effects model. These are
from one supplier to another? There is probably no good reason tosignificantly different from one. Thus, the hypothesis that the
not
expect that. Since the relative prices remain the same, the market
elasticity is equal to one seems plausible and acceptable for India.
shares of the supplier should also not change. A cut in the mfn
7 Conclusions
tariff has the effect of reducing the tax inclusive price of a mfn
supplier proportionately, leaving the relative prices unchanged.
The estimates presented in this article indicate that the tariff
The demand for different suppliers should therefore go up propor
tion in agricultural products according to the tiered formula of
tionately. This seems to be a reasonable assumption. modalities16 will lead to an increase in India's imports of agric
It may be added here that the assumption mentioned above is
products by about 1%. Imports will increase by about Rs 300
almost universally present in multi-country empirical studies crore.
on By comparison, the increase in India's exports of agric
the impact of trade reforms, including the cge models. It is difficult
products to the us and eu markets will go up by about 2% to 4
to find a study that does not make the assumption of proportionate
increase will be about Rs 400 crore. This estimate is based on t
effect of MFN tariff reduction on the demand for products of 100
dif products exported by India to these markets. Considerin
ferent mfn suppliers. agricultural products exported to these markets, as also the e
Economic & Political weekly laavj January 14, 2012 vol xlvii no 2 63
SPECIAL ARTICLE
the total Indian exports of agricultural products (about 1%), a

made to other developed countries and to developing countries,
the overall increase will probably be in excess of Rs 700 crore.
still smaller percentage of India's agricultural output (less than
Evidently, India has more to gain from the implementation of Thus, the tariff cuts proposed are, by themselves, unlikely
0.1%).
to it.
tariff cuts according to the tiered formula than to lose from cause a major boost to agricultural exports from India and
thereby
Yet, this expected gain in exports is a rather small percentage of contribute to faster growth of the agricultural sector.
NOTES Countries" in Bernard Hoekman, Will Martin and and Washington DC: The World Bank).
1 TN/AG/W/4, 6 December 2008, Committee Carlos Aon
Primo Braga (ed.), Trade Preference Erosion: Mensbrugghe, Dominique van der (2009): "The Doha
Measurement and Policy Response (New York: Palgrave
Agriculture, Special Session, World Trade Organisa Development Agenda and Preference Erosion:
MacMillan
tion (www.wto.org). See section on market access. and Washington DC: The World Bank). Modelling the Impacts" in Bernard Hoekman,
Jean,
2 The Harmonised System (HS) is a six-digit codeSebastien, David Laborde and Will Martin Will Martin and Carlos A Primo Braga (ed.), Trade
(2006): "Consequences of Alternative Formulas
system for classifying goods at the international Preference Erosion: Measurement and Policy Re
level. The Harmonised Commodity Descriptionfor Agricultural Tariff Cuts" in K Anderson and sponse (New York: Palgrave MacMillan), The
W Martin (ed.), Agricultural Trade Reform and the
and Coding Systems is developed and maintained World Bank, Washington DC.
by the World Customs Organisation. Doha Development Agenda (New York: Palgrave Polaski, Sandra, A Ganesh-Kumar, Scott McDonald,
MacMillan and Washington DC: The World Bank). Manoj Panda, and Sherman Robinson (2008):
3 These cuts are applied to the applied rates directly
whereas it would be more appropriate to Low,
applyPatrik,
the Roberta Piermartini and Jürgen Richter India's Trade Policy Choices: Managing Diverse
ing
cuts to the bound rates and then assess the impact (2009): "Nonreciprocal Preference Erosion Challenges (Washington DC: Carnegie Endow
Arising from Most-Favoured-Nation Liberalisation ment for International Peace).
of lowering of the bound rates on the applied rates
as has been done, for instance, in Jean et alin Agriculture: What Are the Risks?" in Bernard
(2006),
Anderson et al (2006), and also in this study.Hoekman, Will Martin and Carlos A Primo BragaAppendix 2
4 TN/AG/W/4,6 December 2008, see note 1 for(ed.), Trade Preference Erosion: Measurement and 1 List of Countries Getting Substantial Preferential Access to the US
details.
Policy Response (New York: Palgrave MacMillan
5 "Draft Possible Modalities on Agriculture", Com Market for Agricultural Products
mittee on Agriculture, Special Session, World

Appendix 1: Elasticity of Substitution, Agriculture, Anguilla Honduras
Trade Organisation (www.wto.org). Mining and Manufacturing Lebanon
Bangladesh
6 TN/AG/W/4/Rev 4, 6 December 2008. See note 1
for details. Description GTAP Elasticity Barbados Malawi
ESUBD ESUBM Belize
7 For derivation, see Mensbrugghe (2009). Paraguay
8 This data relates to 2004. Paddy rice 5.1 10.1 Peru
Bosnia and Herzegovina
9 The CSO has prepared the absorption matrix for Wheat 4.5 8.9 Colombia Pitcairn Islands
2006-07 as an updated matrix of 2003-04. At the Cereal grains nec 1.3 2.6 Cambodia Senegal
time this paper was written the absorption matrix
Vegetables, fruit, nuts 1.9 3.7 Costa Rica
for 2006-07 was available at the CSO website (but Togo
not accessible now). There is mention of the input Oilseeds 2.5 4.9 Ecuador Tonga
output for 2006-07 in the website of the CSO even Sugar cane, sugar beet 2.7 5.4 Guinea Trinidad and Tobago
at present (List of publications on National Ac Plant-based fibres 2.5 5.0 Guatemala
counts Statistics). The link is http://mospi.nic.in/
Crops nec 3.3 6.5 Heard Island and McDonald Island
item_13_60ct09.htm (accessed 22 December 2011).
10 See, for instance, the articles in Anderson and Cattle, sheep, goats, horses 2.0 4.0
2 List of Countries Getting Substantial Preferential Access to the EU
Martin (2006), particularly the one by Anderson, Animal products nec 1.3 2.6 Marketfor Agricultural Products
Martin and Mensbrugghe.
Raw milk 3.7 7.3
11 Since the GSP tariff on exports to the US market is Bangladesh Kenya
Wool, silk-worm cocoons 6.5 12.9
zero, an alternate estimate has been made under Barbados Mauritius
the assumption that reduction in MFN tariff for Forestry 2.5 5.0 Belize Namibia
such products will not enhance India's exports. Fishing 1.3 2.5 Botswana Papua New Guinea
The estimated increase in India's agricultural
Coal 3.1 6.1 Dominica St Lucia
exports of top 100 products to the US under this
assumption is Rs 99 crore. Oil 5.2 10.4 St Vincent
Dominican Republic
12 For the other 12 EU members of, the average annual Gas 17.2 34.4
Swaziland
Fiji
value of exports of top 100 items during 2007-08 to Minerals nec 0.9 1.8
2008-09 was about Rs 550 crore and the increase Georgia Trinidad and Tobago
Meat: cattle, sheep, goats, horse 3.9 7.7 Zimbabwe
would probably be of the order of Rs 15 to 20 crore. Guyana
13 The countries have been selected on the basis of Meat products nec 4.4 8.8 Jamaica
their agricultural exports to the markets of the Vegetable oils and fats 3.3 6.6 The value of agricultural imports from these countries, the
US, EU, Japan and Canada (Quad economies) in 3.7 7.3
Dairy products proportion of imports that enjoy preferential access, and the
2003 (data taken from Low et al 2009), with the gains accruing from preferential access are the parameters
Processed rice 2.6 5.2
additional consideration that their preferential considered for preparing both lists.
access to these markets should be moderate or low. Sugar 2.7 5.4 Source: List 1 is prepared on the basis of the study undertaken
14 The countries selected for the study are: Argentina, Food products nec 2.0 4.0 by Dean and Wainio (2009). List 2 is prepared on the basis of
Brazil, China, Colombia, Cote d'lvoire, Ecuador, the study undertaken by Low et al (2009).
Beverages and tobacco products 1.2 2.3
Guatemala, India, Indonesia, Malaysia, Philip
Textiles 3.8 7.5 Appendix 3: Estimates of Price Elasticity of Demand
pines and Thailand.
for Imports
15 US Census Bureau, Foreign Trade Statistics. Wearing apparel 3.7 7.4
16 See note 1. Group Coefficient Coefficient HS Code
Leather products 4.1 8.1
of Relative of Real
Wood products 3.4 6.8 Price Variable, GDP
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3.0 5.9 Price Elasticity
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"Market and Welfare Implications of Doha Re (-3.18) (11.64) 60290,71310,80131,
Chemical, rubber, plastic prods 3.3 6.6
form Scenarios" in K Anderson and W Martin
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Metals nec 4.2 8.4
Anderson, Kym and Will Martin, ed. (2006): Agricul 330129,350510,380991,
3.8 7.5
tural Trade Reform and the Doha Development Metal products 430130,530121
Agenda (New York: Palgrave MacMillan andMotor vehicles and parts 2.8 5.6
2 -1.632 2.438 160100,240220,290545,
Washington DC: The World Bank). Transport equipment nec 4.3 8.6
(-9.34) (7.09) 410221,500200,510119
Centre for International Trade, Economics and Environ 4.4 8.8
Electronic equipment 3 -3.527 1.858 40590, 100590, 110900,
ment (CUTS International) (2010): "Doha Round
4.1 8.1
Impacts on India: A Study in a Sequential Dynamic Machinery and equipment nec (-8.63) (2.39) 170111,190219,220720,
CGE Framework", March, viewed on 30 December Manufactures nec 3.8 7.5 520100
2010 (http://www.cuts-citee.org/Doha_Round_ESUBD: Elasticity of Substitution between domestically Import demand function has been estimated from data for 10 years,
Impacts_on_India/Research_Outputs.htm). sourced and imported. 1999-2000 to 2008-09. One important tariff line from each
Dean, Judith M and John Wainio (2009): "Quantifying ESUBM: Elasticity of Substitution between different import sources. chapter has been taken and then these have been grouped.
the Value of US Tariff Preferences for DevelopingIn GTAP database, ESUBM is taken as two times of ESUBD. () t-statistic
64 January 14, 2012 vol xlvii no 2 Economic & Political weekly
SPECIAL ARTICLE
Women's Empowerment and Forced Sex withi

Marriage in Rural India
RAJIB ACHARYA, SHAGUN SABARWAL, SHIREEN J JEJEEBHOY
This paper sheds light on the role of key indicators of

rural women's empowerment in India in influencing stantial proportions of women and girls experience forced
Research from
sex within various
intimate relationships.global
For example,settings
results suggests that sub
their risk of experiencing forced sex within marriage.
from a multi-country study, across 10 countries, show that be
Additionally, it also highlights the continuing influence
tween six and 59% of ever-partnered women experience forced
of dowry on forced sex experiences within marriage.sex from male intimate partners (Garcia-Moreno et al 2006).
It argues for programmes that enhance women's Within India, recent prevalence estimates of lifetime experiences
of forced sexual experiences within marriage, range from 10% to
autonomy within their marital homes and encourage
32% in large-scale nationally representative surveys (iips and
education. Further, programmes and laws targeting Macro International 2007; iips and Population Council 2010).
the prevention of dowry exchange need to be Moreover, research shows that women who have experienced
simultaneously developed. forced sex are more likely to experience a range of adverse sexual
and reproductive health outcomes (Jejeebhoy and Bhott 2006).
Despite its prevalence and documented links to negative health
outcomes, research identifying protective factors of forced sex
within marriage remains sparse.
According to the World Bank "empowerment is the expansion
of freedom of choice and action. It means increasing one's au
thority and control over resources and decisions that affect one's
life" (Narayan-Parker 2002:11). Following this definition, we in
vestigate the role of three dimensions of women's empowerment,
namely, their education, employment status and autonomy
within the household in influencing women's likelihood of expe
riencing forced sex within marriage in rural India. Education and
employment have been considered specific indicators of women's
empowerment in the past research while autonomy reflects the
extent to which women are able to manipulate their personal en
vironment through control over material and social resources
(Basu 1992; Dyson and Moore 1983; Jejeebhoy 2000; Vyas and
Watts 2009). At the same time, studies conducted in patriarchal
settings of India and Bangladesh have observed that other factors
that traditionally conferred power to women, such as the number
of sons they bore or the amount of dowry they brought, also pro
tected women from physical violence (Jejeebhoy and Cook 1997;
Rao 1997; Schuler et al 1996).
While there have been studies that have looked at the links
between aspects of women's empowerment and physical violence

This work was funded by a grant from the Johns Hopkins Bloomberg
School of Public Health, Johns Hopkins University, Baltimore given to
(Ackerson et al 2008; Jejeebhoy and Cook 1997; Koenig et al
the Population Council, New Delhi. 2006; Panda and Agarwal 2005; Rao 1997; Schuler et al 1996),
few have looked at their links with women's experience of forced
The authors acknowledge the valuable contribution of the late Michael
Koenig towards the conceptualisation of this project. They also thank
sex within marriage. Available studies document that while
K G Santhya for her support and assistance in preparing the manuscript.
education attainment decreased a woman's risk of experiencing
Rajib Acharya (racharya@popcouncil.org), Shagun Sabarwal, Shireen J
forced sex, her employment seemed to increase this risk (Santhya
Jejeebhoy (sjejeebhoy@popcouncil.org) are all at the Population Council,
et al 2007; Dalai 2011). In our search, not a single study has
New Delhi.
looked at the links of experience of forced sex to women's
SPECIAL ARTICLE
autonomy. Nor there is research examining the associations

similar to the non-re-interviewed sample in terms of most char
between the amount or acceptability of dowry receivedacteristics.
during The domestic violence module was administered only
marriage and the risk of forced sex. to the youngest women in the target households (ibid). The fol
The need to evaluate the role of specific dimensions of low-up
empow survey was completed by 6,437 women and of these,
88.5%
erment in protecting women from experiencing forced sex were selected for the domestic violence module, yielding a
within
marriage is crucial given that gender equity is recognised
finalassample
a size of 5,703 women.
central strategy to improve women's health and well-being and
Measures
to ensure that their right to a safe and consensual sexual life is
not violated. Findings from the present study are intended to
Dependent Variables
underscore the need to focus policy and programme attention
The main dependent variable used in our study was women s
and financial resources on reducing sexual violence in India.
report of forced sex by husband in the past 12 months. In the
Methods
2002-03 follow-up survey, women were asked a series of detailed
questions on violence perpetrated by her husband at any point
Setting and Data during their married lives and 12 months prior to the interview.
Data for the present study come from a follow-up Two items
survey ofassessed
the a woman's experience of forced sex within
marriage.
1998-99 National Family Health Survey-2 (nfhs-2). The Women were asked: "Thinking about your own mar
follow-up
riage,
survey was carried out in 2002-03, four years after thedid your husband ever use verbal threats to force you to
baseline
interview, in four states: Bihar, Jharkhand, Maharashtra and
have sex when you did not want to?" and "Thinking about your
Tamil Nadu. These four states represent cultural own
andmarriage,
economic did your husband ever use physical force to force
you to have
diversity in terms of certain key indicators. For example, sex when you did not want to?". If the respondent
in terms
reported
of economic growth, Tamil Nadu and Maharashtra a positive response to these questions then she was
are among
further account
the more economically progressive states in the country, asked about the number of times such incidents had
occurred
ing for 7% and 13% each of the national gross domestic in the past 12 months. Those reporting experiencing
product,
while Bihar and Jharkhand are among the lesser developed
either of the forms described above in the past 12 months prior
states, accounting for 2%-3% each (Ministry of Statistics and Pro
to the survey were categorised as having experienced forced sex
gramme Implementation 2009). Similarly, in terms of urbanisa
in the past year.
tion, Maharashtra and Tamil Nadu are among the most urbanised
Independent
states, with over two-fifths of their populations living Variables
in urban
areas which is in contrast to large rural populationsThree
of Bihar and
main independent variables were used to represent women's
Jharkhand. We find similar patterns in terms ofempowerment. Woman's educational level was measured as a
social develop
ment indicators also. Bihar and Jharkhand have lower levels of
continuous variable based on the number of years of schooling
female literacy (33% and 39%, respectively) as compared to
completed. Woman's employment was assessed using a binary
variable - whether the woman had engaged in paid work in the
Maharashtra and Tamil Nadu (67% and 64%, respectively) (Office
of Registrar General and Census Commissioner 2001). State-wise
past 12 months.
differences in the experience of forced sex among marriedA women's autonomy index, conceptualised as a continuous
variable, was measured using the latent class analysis approach
women of all ages are wide. As per the data, forced sex was expe
rienced, respectively, by i2.5%-i9.i% of women from Jharkhand(Clogg 1982; McCutcheon 1987). Latent class analysis is a tech
and Bihar, compared to 2%-3% correspondingly, in Maharashtra nique analogous to factor analysis and is used when manifest
and Tamil Nadu (iips and Macro International 2007). variables are categorical. Drawing on the work by Jejeebhoy and
The follow-up survey, carried out in 2002-03, aimed to explore
Sathar (2001), we constructed a women's autonomy index using
14 manifest variables reflecting four dimensions of women's
the relationship between quality of family planning services and
subsequent contraceptive use and assessed the predictive validity
autonomy - familial decision-making power, mobility, access to
money and freedom to make various types of purchases. The
of stated fertility intentions (hps and Johns Hopkins University
2005). Since the focus of the study was on contraceptive use
following manifest variables were used:
among married women, the follow-up survey was restricted to
married women aged 15-39 years at the time of nfhs-2 survey.
Familial Decision-making: Whether the respondent was involved
Only women who were the usual residents of the household in
at decision-making in the following situations: what items to
the time of nfhs-2 survey were interviewed. High re-interview
cook, obtaining healthcare for herself, purchasing jewellery or
rates were achieved in all four states, 83% for the overall sample.
other major household items, and going to and staying with her
Reasons for non-re-interview included permanent migration
parents or siblings.
from the household and area, temporary non-availability of the
respondent, death and failure to have been interviewed at the
Mobility: Whether the respondent needed permission to go to
original nfhs-2 survey. With the exception of somewhat lower
the market, visit relatives and friends inside the village, visit
levels of baseline contraception use and domestic violence relatives
in and friends outside the village or take a sick child to
the doctor.
Bihar and Tamil Nadu, the reinterviewed sample was generally
66 January 14, 2012 vol xlvii no 2 GQS Economic & Political weekly
SPECIAL ARTICLE
Access to Money: Whether the respondent was allowed (defined

to have as a categorical variable with three categories: low, me
some money set aside that she could use as she wished. dium or high of the standard of living index). Finally, to account
for socio-economic and cultural differences among study states,
Purchasing Freedom: Whether the respondent neededa permis
variable indicating the state of residence was also included.
sion to purchase household items, clothing items, jewellery, gifts
for relative or medicine. Statistical Analysis
Another variable of interest related to the acceptability of theAssessment of the extent to which each of the key indicators of
dowry brought by the woman at the time of her marriage, measwomen's empowerment as well as the acceptability of their
ured in terms of her husband's reaction to the dowry. Womendowry influenced their risk of experiencing forced sex within
were asked "How would you describe the reaction of your husmarriage was conducted using multivariable logistic regression
band's family to the cash, gifts, jewellery and other items youapproach to produce direct assessments of odds ratios (ors).
brought at the time of marriage? Possible responses were: very
Results
satisfied, satisfied, did not care, dissatisfied, very dissatisfied or
did not bring anything?". In order to capture the heterogeneity inTable i presents the socio-demographic profile of married wom
attitudes towards dowry exchange, we used a more nuancedaged 15-39 years. Of note, women were, typically between 25
measure of husband's reaction to dowry received. We created a34 years of age, poorly educated (1.22 years is the mean years
categorical variable with three categories - (a) husband was disschooling completed) and from economically disadvantag
satisfied with the dowry received; (b) husband was satisfied with families (54% having a low standard of living index). The m
the dowry received; and (c) husband did not care or the wife did ity of the women interviewed reported having at least one liv
not bring any dowry. We hypothesise that the last categoryson at the time of the survey (85%). About 45% of women in
potentially included hus sample were engaged in paid work.
Table 1: Selected Socio-demographic
Characteristics of Rural Married Women Age bands with egalitarian at Almost one out of 10 women (Table 2) reported experienci
19-43 (n = 5,703)
titudes; both not caring forced sex from their husbands in the past 12 months. Furth
Socio-demographic Characteristic Overall
about dowry and selecting use of physical force to have sex was more common than us
Age (%)
one's own spouse may verbal threats to have sex.
<24 years 17.8
24.8 reflect their deviation from Table 2: Distribution of Rural Married Women Age 19-43, Who Reported Forced Sex by
25-29 years
30-34 years 25.4 traditional norms, and Their Husbands in the 12 Months Preceding the Survey, by Type of Forced Sex (2002-03)
Form of Violence Past-Year (%)
35-39 years 19.7 therefore, more egalitarian
Used verbal threats to have sex 5
40+years 12.4 spousal relation. The other
Used physical force to have sex8.9
Wife's education
two categories captured
Mean years of education completed 1.22 Used either threat or physical 10.4
force to ha
those husbands who con
Current work status (%)
formed to the social norms Results of multivariable logisti
No paid work 54.8
Paid work 45.2 and expectations such astion between key variables reflect
Mean women's status score the amount of dowry of forced sex presented in Table
(Range 0-1) 0.46
brought by their wives. attainment was associated with a
Household standard of living (%) We controlled for a 95% confidence interval (ci):
Low 54.0
Medium 38.3
range of individual-level,
women engaged in paid employm
household-level and life creased risk of experiencing for
High 7.7
Religion (%)
style variables including95% ci: 1.09-1.74).
Non-Hindu 12.1 woman's current age (de Another striking finding of th
Hindu 87.9
fined as a categorical variincreased autonomy had lowe
Number of living sons(%) able with five categories:
None 16.0 Table 3: Adjusted Multivariable Logistic R
24 or less, 25-29, 30-34,of Forced Sex in the Past 12 Months (n = 556
One or more 84.0
35-39 and 40 or more), Independent Variables Fully Adjusted" OR (95% CI
Husband's education
Mean years of education completed 38.8 presence of living sonsWife's education
Highest yearof education completed 1.00
Husband's alcohol consumption (%) (defined as a binary varia
0.92* (0.86-0.98)
Never or rarely 72.5
ble: none, one or more),
Current work status
Sometimes 7.9
husband's educational at No paid work (R) 1.00
Often 19.6
tainment level (defined Paid work 1.38** (1.09-1.74)
Husband's reaction to dowry (%)
Dissatisfied 3.6
as a continuous variable,Women's autonomy 0.49* ** (0.39-0.61)
Satisfied 77.0 number of years of schoolHusband's reaction to dowry

Dissatisfied (R) 1.00
Did not care/did not bring any 19.4 ing completed), frequency
Satisfied 0.38* **(0.26-0.54)
of husband's alcohol con
Did not care/did not bring any dowry 0.51* * (0.35-0.75)
sumption (denned as a categorical variable with three catego a 138 observations were dropped from regression analysis because of missing data,
b Adjusted for current age, presence of living sons, husband's literacy level, religion, husband's
ries: rarely, sometimes or often), religion (defined as a binary
alcohol use, household standard of living and state of residence.
variable: Hindu or non-Hindu) and household standard of living * p<0.05 **p<0.01 ***p<0.001.
Economic & Political weekly GEC9 January 14, 2012 vol xlvii no 2 67
SPECIAL ARTICLE
(or: 0.49; 95% ci: 0.39-0.62). The magnitude of or suggests to

a protect them from forced sex and a second who brought no
statistically strong association. dowry or in which the husband did not care about the dowry.
We found that women who reported that they had not brought This finding highlights the complexity of this association; while
any dowry or whose husbands did not care about the dowry were the substantially reduced risk of forced sex among women whose
significantly less likely (or: 0.51; 95% ci: 0.35-0.75) to have expe husbands were satisfied with the dowry reflects the strong influ
rienced forced sex within marriage as compared to those whose ence of dowry in determining women's position within the
husbands were dissatisfied with the dowry brought. At the same household, the reduced risk among women who did not bring any
time, women whose husbands were satisfied with the dowry they dowry or whose husbands were indifferent, also at the same time
received (or: 0.38; 95% ci: 0.26-0.54) also had a reduced risk of suggests the decreasing influence of the tradition of dowry ex
experiencing forced sex within marriage when compared to change in some households. While there is some evidence re
women whose husbands were dissatisfied. garding the role of modernising influences of education and
media exposure in reducing approval for the practice of dowry
Discussion
exchange among women in rural Bihar (Srinivasan and Lee
2004), research on changes among men's attitudes towards
Our study provides clear evidence that, in settings characterised
by traditional gender norms, women's autonomy is clearlydowry
pro remains non-existent. Findings highlight the need for fur
tective of their risk of experiencing forced sex within marriage.
ther research to explore the factors that differentiate men who
We also find that women's education reduces their likelihood of disapprove of the practice of dowry from those who conform to
experiencing forced sex perpetrated by their husbands. Taken
dowry exchange as an important norm. To our knowledge, this is
the first study to assess the association between reaction to
together these findings indicate that programmes and policies
that focus on improving women's access to and control over re
dowry received and forced sex and further extends findings from
sources, such as education, increased financial literacy and so
past studies reporting an association between dowry and risk of
cial support within the community are urgently needed. Nota
physical violence (Jejeebhoy and Cook 1997; Rao 1997; Schüler
bly, these findings are consistent with results from past studieset al 1996).
exploring the correlates of physical and sexual violence con Findings of this study need to be interpreted in the light of
ducted in India (Ackerson et al 2008; Dalai 2011; Jejeebhoy and
tain limitations. First, given the cross-sectional nature of t
Cook 1997; Koenig et al 2006; Panda and Agarwal 2005; San
study, it is not possible to establish the temporal order betwe
thya et al 2007). In terms of potential pathways, it is likely thatsome of the covariates considered in the analysis and forced se
increased autonomy and education can reduce women's risk ofSecond, although we used two different items to assess the ext
forced sex by increasing their awareness of and their ability to
of forced sex within marriage, the prevalence of forced sex mi
exercise their rights and by reducing their social isolation and
have been under-reported in the present study since in som
increasing their interaction with the outside world (Jejeebhoy
cases women experiencing unwanted sex might not report it d
1995; Santhya et al 2007). to the sensitiveness of the questions.
At the same time, we also find that working women are at an
increased risk of forced sex within marriage, which isConclusions
consistent
with findings from past studies in India (Dalai 2011; Santhya
Forced et al is a violation of women's rights and yet a disturb
sex
2007). Past studies documenting similar positive relationships
proportion of married women in India experience forced sex p
between women's employment and physical violence petrated
in settings
by their husbands. Our research illustrates the imp
characterised by high levels of gender inequality such as India,
tance of women's empowerment as a factor influencing their r
hypothesise that employed women might represent aofdeviation
experiencing forced sex within marriage. Findings highli
from expected gender relations and norms and be perceived
the role as
ofaeducation as a means of protecting women from for
threat to their husband's masculinity, therefore, leading
sex into a
marriage. Our findings also underscore that efforts
enhance
backlash in the form of violence (Krishnan 2005). It is women's autonomy will go a long way in enabli
also possi
ble that in India - a setting characterised by traditional gender
women to remain free from experience of forced sex by husba
norms that support the marginalisation of women -Despite
workingthe reduced risk of forced sex among women who did n
women might not be able to control their own earnings, anddowry or whose husbands did not care, our findi
bring any
therefore, might not necessarily have increased autonomy
also point to the crucial role played by the deeply entrenched
ditional
thought to be conferred through employment. In addition, practice of dowry exchange in influencing the risk
since
forced that
our study is based in rural regions of India, it is quite possible sex within marriage. Programmes must be multiface
and recognise
employment of women is largely seasonal in nature reflecting the the need to focus on improving women's emp
irregular nature of the income earned by women. erment as well as changing the underlying traditional norm
and practices.
Unexpectedly, our study reveals mixed findings regarding the
acceptability of the dowry brought at the time of marriage and its
association with forced sex within marriage. We find that the
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RELIGION AND CITIZENSHIP
January 7,2012
Plural Societies and Imperatives of Change:

Interrogating Religion and Development in South Asia - Surinder 5 Jodhka
Religions, Democracy and Governance:

Spaces for the Marginalised in Contemporary India Gurpreet Mahajan, Surinder S Jodhka
Religious Transnationalism and Development Initiatives:

The Dera Sachkhand Ballan - Gurharpal Singh
Social Constructions of Religiosity and Corruption - Vinod Pavarala, Kanchan K Malik
Buddhist Engagements with Social Justice: A Comparison between Tibetan Exiled

Buddhists in Dharamsala and Dalit Buddhists of Pune - Zara Bhatewara, Tamsin Bradley
In the Name of Development: Mapping 'Faith-Based Organisations' in Maharashtra

- Surinder S Jodhka, Pradyumna Bora
Welfare Work and Politics of Jama'at-i-lslami in Pakistan and Bangladesh - Masooda Bano
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NOTES
Is India a Case of Federal theory and practice in the age

of globalisation and regional integration
Asymmetrical Federalism? made a perceptive observation about

is at a crossroads. Klaus von Beyme has
asymmetrical federalism, which is of in

terest here. In his view, older federalism in
REKHA SAXENA
the age of classical modernism relied on a
rational model of symmetric states with
The Indian case of federalism has liberal multicultural rights, whereas post
cal federalism means a flexible type of modern federalism of multinational states
"postmodern potential" in the
manner in which it has de facto
In strict and special
union that grants simple
status toterms, asymmetri has become more tolerant of interstate
some federative units in the Constitution.
asymmetries in constitutional engineer
and de jure asymmetries in its While the term is novel, the idea is not ing (Beyme 2005: 432-47)
construction. Normatively, some new as it has been implicit in constitutional
texts and the literature on federalism Concept of Asymmetry
of the asymmetries have served
since long (Burgess 2006: 209). MoreThe
re literature on the concept and theory of
it well against opinion that these
cently, the term has also come to beasymmetrical
ap federalism is replete with a
could lead to secessionism.
deeply divisive debate on the question
plied to formulation of federal policies
that allows the federal government whether
to asymmetry in federal structuring
work out separate deals with different
is a slippery terrain leading to secession or
states on matters of specific concerns conducive
to to national unity. Most early
them.1 A recent example in Canada is the
writings tended to take the former posi
healthcare deal signed by all federal, pro
tion,3 whereas the recent comparative
vincial, and territorial premiers signedtreatment
at of the subject generally argues
a marathon intergovernmental confer
that instead of being inherently secession
ence in September 2004. This agreement
ist in potential it can and has in fact helped
allows for a separate bilateral Canadastave off of secession.
Quebec side deal. The deal is hailed as The earlier view was tainted by the
a recognition of distinct status of Quebec
classical model of unitary nation state be
in the Canadian federation2 but such queathed by the French Revolution and
that of the classical model of federal state
arrangements are supposed to be under
by the American War of Independence.
mining federal comity and national unity
(Brock 2008:143-62). Both the French and the Americans, pre
This article purports to examine whether
sumably in their revolutionary fervour
India is a case of asymmetrical federalism.
projected the ideal of a nation state or that
I take up this issue as there is some dis
of a federal state respectively that was
agreement on this question. India's apbased on symmetrical rule of law for all
proach to this problem is definitely
citizens of the nation or for all units if the
marked by ambivalence, which arisesfederation premised on equality of liberty
from the question whether asymmetrical
and fraternity. The attitude also easily de
federalism helps or hinders national inte
veloped in the postcolonial nationalists,
who at the time of liberation from the colo
gration. There is no easy and a priori an
swer to this query. Hence, in what follows,
nial rule reacted strongly against the impe
I first briefly discuss what has been the rial
ex divide-and-rule policy that played one
perience in comparative federal theory community
in and region against the other.
this regard. Then, in the rest of the essay,Thus the modern nationalists also dis
I mainly deal with India's pragmatic played
ap a strong suspicion against any
proach to constitutional and political
asymmetrical constitutional arrangement
for some territorial or ethnic communities
asymmetries in relation to some states
and tribal tracts in the north-east and some
as against the others, thinking that it con
mainline states. Constitutional asym
tained the seeds of separatism. In fact, in
Rekha Saxena (rekhasaxenadu@gmail.com) is metries characterise some border states in
postcolonial south Asia the idea of feder
with the Department of Political Science at the
alism itself was generally suspect for
the north-west and north-east, i e, Jammu
University of Delhi, New Delhi.
and Kashmir, Nagaland and Mizoram. state-nationalists who inherited power
70 January 14, 2012 vol xlvii no 2 EE3 Economic & Political weekly
NOTES
from the departing colonial rulers and in 1965 takes a dismissive view
federalism government and the fundamental rights
desired to establish a strong nation state
of it, of the citizens. Article 370 (bii) limited the
as for him, it is prone to secessionism
in due course. This is illustrated (1965:873).
by the The Canadian experience with power of the Parliament to make laws for
the
almost total rejection of the federal Quebec
idea as question has brought about the
a state of Jammu and Kashmir to for
such by Pakistan and Sri Lanka bit despite eign affairs, defence and communications
of turnaround in the theoretical appre
their ethno-national diversities. India andciation of asymmetrical federalism as specified in the Instrument of Accession
Nepal are the only examples of reluctant asymmetry was impliedly built into the by dint of which the state joined the Union
federal constitution-making in Canada in
federalists in this part of the world, taking of India in October 1948. Parliament's
the evidence of the process of constitu laws on subjects in the union and concur
1867 (without using the term) and the tra
jectory of the federalist and sovereignist
tion-making in the two states. It took India rent lists would not automatically be valid
debate has brought to the fore the accom
nearly half a century to develop some de in the state unless the president of India in
gree of concession to asymmetrical feder concurrence with the state government
modative potential of the device.4 Federal
alism, if at all. declared them applicable to the state.
experiments elsewhere have supported
The comparative political experience of
this line of argument including the Indian
Similarly Article 371 A and E provide that
all multinational federations, with thecase (Stepan 2004). Michael Burgessa parliamentary statute to be extended to
possible exception of Switzerland, sug (2006: 209-25) makes a more balanced the states of Nagaland and Mizoram re
quire the consent of the legislatures of
theoretical statement by suggesting that
gests that some degree of constitutional
those states, if the law concerned relates
the accommodative or secessionist poten
asymmetry is essential for establishing
tials of asymmetrical federal arrange
enduring federal unions in the contempo to religious and social practices of Nagas
rary world today. India, Belgium, Canada and Mizos, their customary law and pro
ments actually depend on specific cultural
are cases in point in this context. These cedures, administration of civil and crimi
and historical contexts. A flat a priori as
are the major examples of reasonably
sertion cannot be made in this regard. nal justice affecting these customary
well-functioning asymmetrical federal laws, and ownership and transfer of land
democracies today. The Russian federationThe Indian Experience resources of these states. The above articles
Ronald Watts (2008: 127) makes a theo

is also multinational and constitutionally also stipulate that the legislative assem
retically fruitful distinction between
asymmetrical, but then Russia has not yet blies of Nagaland and Mizoram shall con
started working as a democratic federa sist of not less than 46 and 40 members
political asymmetry which exists in every
federation as to the geographical and respectively.
tion in the strict sense of the term (Stepan de Moreover, Article 371 A gives
1999: 31). the governor of Nagaland
mographic sizes of the units and constitu
John McGarry in a comprehensive com tional asymmetry which "refers specifisome special responsibility with respect to
parative study of asymmetrical federal cally to differences in the status or legislalaw and order in the state of Nagaland for so
experiments in the 20th and early 21st tive and executive powers assigned by the long as in his opinion internal disturbances
centuries has also come to the conclusion constitution to the different regionaloccurring in the Naga Hills-TXiensang area
immediately before the formation of that
that asymmetrical federalism per se does
units". India is characterised by both these
state continue....
not lead to secession. Whether unity or
types of asymmetry. One glaring example
secession will be the outcome depends on
of political asymmetry in India is that theBesides these asymmetries at the state
the contingent political factors as to how level, there are some sub-state asym
states are represented in the Rajya Sabha
not on the footing of formal equality asmetries
such a constitution is actually worked by in in the Indian Constitution that
the political leadership and other contexthe United States of America but on the may be synoptically noted here. Indian
tual factors. To quote McGarry (2005:17),basis of their population.5 Thus, the state
federalism relates to a special kind of fed
I have argued that, contrary to the fears of of Uttar Pradesh has 31 seats whereas erating units that are called the union ter
ritories (uts). The seven uts have been
state-nationalists, or integrationists, therestates from the north-east (such as Megha
is little evidence that asymmetry promotes laya, Mizoram, Manipur) and Pondicherry
created at various points in time. The rea
break-up. Indeed, virtually all cases of seces
and Goa have just one seat each in the
sons for their creation were varied. These
sion in the twentieth century have occurred
from unitary states, or from democratising
Rajya Sabha. The literature on Indian
areas were either too small to be states or
federations that were centralised from much too difficult to merge with neighbouring
federalism has recently been applying the
of their history and that were essentiallyconcept of constitutional asymmetry under states on account of cultural differences,
symmetrical in nature. Asymmetrical fedwhich the states of Jammu and Kashmir, interstate disputes, specific needs of the
eralism may be associated with instability
Nagaland, and Mizoram enjoy certain spe National Capital Territory, or far-flung
and illiberalism in certain limited contexts,
but there is nothing inherently unstable or
isolated
cial position and powers in the Constitution location on the coasts. Originally,
not enjoyed by others. Jammu and Kash
illiberal about it. Rather, much depends on they were all administered directly by
context, on motivations of the parties in mir has a constitution of its own drafted the union through a centrally appointed
volved, and in the details of the autonomyby the constituent assembly of the state administrator. None of these had a legis
arrangements.
and adopted in 1957, though its provisions lature but all were represented by at
Charles Tarlton who is credited with
broadly conform to the Constitution of least one seat in the lower house of Parlia
India with regard to the structure of the ment. Parliament can either extend the
having coined the term asymmetrical
Economic & Political weekly mm January 14, 2012 vol xlvii no 2 71
Economic Reforms and Growth in India
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72 January 14, 2012 vol XLVii no 2 HTTTi Economic & Political weekly
NOTES
jurisdiction of the high court of a neighMaharashtra and Gujarat have a "special

is equitable and necessary for countries
bouring state to such territories or create responsibility"
a for the establishment
that areof
not merely multicultural but are
separate high court for it (Article 241 [1]separate development boards for certain
multinational for the protection of com
and [4]). backward regions of these states with
munity or minority rights in the context of
Subsequently, two new types of uts equitable allocation of development funds
identity politics of recognition (Tillin 2007:
were created, namely, Pondicherry (14th 1-25). Stepan contrasts India's "demos
and provision of facilities for technical
Amendment Act 1962) and Delhi (69th education, vocation training and employ
enabling" (e g, Article 3 of the Constitu
Amendment Act 1991). A common feature ment opportunities. Third, the president
tion empowering Parliament the power to
of these two territories is that they have reorganise
of India is under the constitutional obliga states) asymmetrical federal
been granted unicameral legislatures model from the "demos-constraining"
tion to ensure the setting up of a commit
whose members are directly elected by (e g,
tee of the legislative assembly in the separation of powers and checks and
states
the people. The Pondicherry legislature is of Assam and Manipur consisting of balances)
mem symmetrical models of federal
partly elected and partly nominated. bers elected from tribal/hill areas ism,
to and
lookcredits the former for its tackling
There is also a council of ministers res after the welfare of those communities. of the multiple linguistic nationalism, es
ponsible to the legislature in both the Fourth, the president of India is to ensurepecially Tamil separatism (ibid: 58-61).
territories. The head of the state in both "equitable opportunities and facilities" for However, Tillin correctly argues that
Delhi and Pondicherry is a lieutenant gov the people in different regions of Andhra
India's linguistic reorganisation, including
the Tamil case, was an exercise in sym
ernor appointed by the union to performPradesh in respect of public employment
formal executive functions of the governand education and the establishment of a metrical arrangement on closer examina
tion. Nevertheless, Tillin's argument is
ment. Both the territories also have gov central university in the state. Fifth, the
ernments headed by chief ministers ac legislative assemblies of Sikkim and Goamore convincing in relation to the regional
countable to their respective legislatures. "shall consist of not less than 30 memlanguages (including Hindi, the regional
However, the chief minister of Delhi isbers". The governor of Sikkim is under
language in 10 out of 28 states) that were
appointed by the president of India on the certain "special responsibility for peace
accorded equal status in regional or state
recommendation of the lieutenant gover and for an equitable arrangement forgovernments. But Hindi and English
nor. This is presumably in view of the fact ensuring the social and economic advance
were/are still accorded a special status as
that Delhi is in the National Capital Terri ment of different sections of population"co-official languages of the union govern
tory. The legislature of Delhi enjoys onlyof the state. Sixth, the governor of Arument as India's lingua franca, even if it
was a climbdown for Hindi that was to be
concurrent jurisdiction as in the case of nachal Pradesh has "special responsibility
come the sole "official language" of the
conflict in regard to laws made by it andwith respect to law and order" and to act
those made by Parliament, the latter pre in his "individual judgment" after consultunion of India from 1965 under the Consti
vails. Pondicherry is represented by one ing the council of ministers. tution 15 years after its commencement in
seat each in the Lok Sabha and Rajya Sab An observer of the Fifth and Sixth 1950. Moreover, Tillin goes on to argue
ha. Delhi has seven Lok Sabha and three Schedules of the Constitution has found that Article 370 regarding Jammu and
Rajya Sabha seats. Despite being calledsome
a aberrations in these institutions but Kashmir was included in the constitution
has concluded that
state, Delhi is really a semi-state as some in Part xxi under the caption "Temporary,
vital subjects like land, police and civil Transitional and Special Provisions". Im
the constitutional protection to the minori
services are vested in the union govern ties and other deprived groups has enabled portantly, it was neither included in rec
ment. The Government of Delhi enjoys the state to accommodate diversity in a ognition to the state's "distinct", Muslim
only concurrent jurisdiction in other sub meaningful way.... [and] sustained the plu majority status to embed corresponding
ral character of India and its rich cultural
jects. Hence, there has been a longstand group rights nor intended as a challenge
mosaic over the five decades of constitutional
ing demand of full statehood for Delhi. In to India's composite and equal vision of
mode of notion building (Suresh 2009: 57).
the case of Pondicherry, land, police and territorial nationhood inclusive of all reli
civil services are under the jurisdiction of In the debate in federal theory as well gions, languages, and ethnic groups.
the state government. as in the context of its application to India To Tillin, India's north-eastern states
regarding its impact on the working of come closest to de jure asymmetrical feder
Specific Asymmetries federal systems in practice, Tarlton be alism. Yet, she turns around and tries to
First, there are specific asymmetries with
lieves that asymmetrical federal arrange show that these states "are perhaps better
regard to administration of tribal areas,
ments are fraught with separatist and seen as 'peripheral' units within India" and
intra-state regional disparities, law and
secessionist potential, whereas Barry is approvingly quotes Watts who says "these
order situation and fixation of number of critical of them due to the creation of two relationships are quite distinct from those
seats in legislative assemblies in relation classes of citizenships, one for nationality of the main body of constituent units within
to states of Maharashtra, Gujarat, Assam, based units and the other for merely re the major political entity" (ibid: 52-58).
Manipur, Andhra Pradesh, Sikkim, Aru gional units. On the other hand, Kymlicka, Though it is an interesting line of argu
nachal Pradesh and Goa in the Constitu Taylor, Requejo, Gagnon and Gibb argue ment I think many may find it difficult to
tion of India.6 Second, the governors of that constitutional asymmetrical status accept it at least in constitutional law. As
Economic & Political weekly QEQ3 January 14, 2012 vol xlvii no 2 73
NOTES
the were made by the 13th constitu autonomous institutional arrangements

Mizoram
regards Jammu and Kashmir, whatever
tional amendment (1962) and the 53rd
intent and theory of the Indian Constitution, for various tribal regions and tribal com
constitutional
Article 370 has survived to date and may amendment (1986), both munities. Less far going asymmetrical de
well be the basis of a final settlement with years after the deal with Jammu and vices are contained in the Fifth Schedule
modifications, taking "the Indian federation Kashmir. It may well be argued that Jammu of the Constitution relating to tribal com
into new constitutional waters" (ibid: 62). and Kashmir served as a precedent to in munities in states where they are placed in
About the north-east, Tillin cites Sanjib corporate other asymmetrical arrange a demographically more composite states.
Baruah saying that it was India's reluc ments in the Constitution of India in the Another notable point is that Article 1 of
tance to apply asymmetrical solutions to north-east. North-east is the only genuine the Constitution projects the vision of a
the composite state of Assam that con political region of the country with the federal union of states and territories. It
strained Assam's ability to constructively north-eastern council set up under a par is subsequently supplemented by a variety
negotiate with ethnic Bengalis and tribals liamentary statute, a trend which may of territorial and ethnic autonomies accor
to accommodate them in a composite well catch on in the rest of the country ded to linguistic, religious, and tribal
state. In any case, the north-eastern asym with the pattern of regionalisation in minorities. Looked at from the prisms of
metrical deals are dismissed as marginal Indian politics. liberal individual fundamental rights and
features out of the mainstream. cultural communitarian rights, it would
One may give a different interpretation Concluding Observations not be entirely misplaced to argue that in
a significant
than the one summed up above by Tillin. Summing up, to discerning eyes, India is sense, India could be inter
What actually matters in the case of Jammu replete with de jure and de facto asym
preted as a case of ethnic federalism, at
and Kashmir is not what was intended least in parts.
metries. In the first place, the Constitution
by the Indian nationalists at the time of Furthermore, there are some glaring
of India, if studied closely, would appear
Independence and constitution-making to be a federation with postmodern examples of de facto asymmetries in the
but what has actually come to exist for Indian political system. The 10 states of
potential and that instead of one uniform
over half a century and does not seem federative
to the Hindi heartland are both territorially
principle, there are numerous,
be changing either nationally or inter as the foregoing discussion has shown.and
To demographically huge, up in particu
nationally in the foreseeable future. The lar dominated federal politics like a colos
clarify, these are not postmodern features
autonomy to the Jammu and Kashmir for the simple reason that the partssus ofuntil the end of the 1980s contributing
India that are treated asymmetrically eight
under Article 370 has survived the changes are prime ministers out of 13 so far. This
de facto domination, however, has come
far from post-industrial structures and
of regimes both in New Delhi and in Jammu
and Kashmir. The non-fulfilment of the post-material values. If anything, they
to be challenged in the era of the multi
UN Resolution is due more to the faitare pre-industrial and traditionally party
pre system and coalition governments
when the non-Hindi rimland states have
material, if at ail or in any sense. Hence,
accompli perpetrated by Pakistan in the
the term postmodern potential, rather
territory occupied by it where no such "coalitionally" come to dominate federal
than postmodern per se. Constitutional
elections have ever been held. Moreover, politics since 1989. However, another de
Pakistan ceded a part of the Occupied
asymmetries are evident in the cases of asymmetry has crept in the system
facto
Kashmir in Akshai Chin to China to com the states of Jammu and Kashmir, Naga of representation in Parliament that may
land, and Mizoram. In the case of uts, be
plicate the bilateral question into trilateral a cause of serious conflict in the future.
the
one, without any reference to the people The decennial interstate delimitation of
two asymmetrical units are National Capi
tal Territory of Delhi and Pondicherry.
of the blighted state. The kind of federal constituencies mandated by the Constitu
Only these two units could have some tion
autonomy that the state of Jammu and pre was incrementally postponed until
2025 by a constitutional amendment.
Kashmir has enjoyed in the union of Indiatentions of transition to postmodernity.
on the basis of democratic elections and
Sub-state asymmetries are particularly According to an estimate by a demo
marked in the Sixth Schedule of the Con
federal arrangements in the state may grapher, if delimitation was done today,
well be the foundation on which some sort south Indian states will have to surrender
stitution which provides for a variety of
of "cosmopolitan democracy" (a la David
Held 2002: 313-20) across the Line of Con For the Attention of Subscribers and
trol (loc) may well be built up in due
Subscription Agencies Outside India
course if the peace process under way for
the last decade or so bears fruit. It has come to our notice that a large number of subscriptions to the EPW from outside the
country together with the subscription payments sent to supposed subscription agents in
So far as the north-eastern asymmetries
India have not been forwarded to us.
are concerned, one may ask the question if
their nature is altered because it is India We wish to point out to subscribers and subscription agencies outside India that all foreign
subscriptions, together with the appropriate remittances, must be forwarded to us and not
that has struck those deals rather than the
to unauthorised third parties in India.
federative composite state of Assam. I
We take no responsibility whatsoever in respect of subscriptions not registered with us.
would like to add that union of India's
Manager
asymmetrical deals with Nagaland and
74 January 14, 2012 vol xlvii no 2 laayi Economic & Political weekly
NOTES
about 15 Lok Sabha seats to their north

6 Article 371,371B, 371C, 371D, 371E, 371F, 371H and Brussels, 3-5 March 2005, Section 1.2, http://
3711. On this theme also see Arora (2010), Suan www.kbyle.com/forum/salon-discussion-gen
Indian counterparts (Bose 2000:1698-1700).
(2011: 34). erales/ 21637-asymmetricalfeder, accessed on
The union of India, despite the Partition 2.5.2011.
Singh, M P (2011): Indian Federalism: An Introduction
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NOTES Held, David (2002): "Democracy: From City-States to for Federal Studies, Hamdard Times 14.
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1 The Royal Society of Canada, "Who's Afraid of
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Asymmetrical Federalism?" Internet http://
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Kymlicka, Will (2001): Politics in the Vernacular, Na Taylor, Charles (1991): "Shared and Divergent Val
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ford: Oxford a New Canada (Toronto: University of Toronto
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3 For a review of these works, see Beyme (2005:46); (ed.), Mapping Canadian Federalism for India try in Indian Federalism", Publius: The Journal of
and McGarry (2005: 5-6), Singh (2011). (Delhi: Konark). Federalism, Vol 37, No 1, Winter.
4 See Kymlicka (2001 and 2002), Taylor (1991). McGarry, John (2005): "Asymmetrical Federalism Watts, Ronald L (2008): Comparing Federal Systems
5 Articles 4 [1] and 80 [2] read with the Fourth and the Plurinational State", Position paper for (Montreal and Kingston: Institute of Intergovern
Schedule. The 3rd International Conference on Federalism, mental Relations), 3rd edition.
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The volume has 18 essays by well-known historians who include Biswamoy Pati, Dipesh Chakrabarty, Peter Robb and Michael Fisher. The articles
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76 January 14, 2012 vol XLVii no 2 023 Economic & Political weekly
DISCUSSION
The Perverse Economics

reported. Much of this is also illicit extrac
tion which benefits corrupt traders, local
of the Bidi and Tendu Trade

politicians and even insurgent groups. The
states also chose to ignore reporting in the
standard unit prescribed (the standard
bag, which contains 1,000 bundles of 50
PRANAY G LAL, NEVIN C WILSON sun-dried leaves each in a sack which
weighs about 40 kilos (fao 2005)). In Maha

A response to "A Rational rashtra the measure of a standard bag is
Taxation System of Bidis and dominated by a handful of traders, also different. If viewed objectively, the fsi
The tendu (leaf)
who have gained politicaland bidi trade is
clout and data is grossly inaccurate. According to
Cigarettes to Reduce Smoking
economic concessions under the guise of fsi's cumulative data (as reproduced from
Deaths in India" (epw, 15 October
providing employment and livelihood. the Ministry of Statistics and Programme
2011). It is important to first Bidis are smoked by over 73 million Implementation (mospi)) in 2002-03, India
have better information on adults, mostly rural men (goi and iips produced 5,92,853 metric tonnes of tendu
2010). Tendu leaf plucking generates capable of making 740 billion bidis. This
the production of tendu leaves
about six weeks employment for about 7.5 increased to 7,10,109 mt (or 880 billion
and bidis, and then to correct million people (Arnold 1995) while rolling bidis) in 2003-04 which declined drasti
the prices of inputs (including bidis engages nearly 4.4 million women cally to 3,12,660 mt and 2,68,464 mt in
wages) if tax policies are to haveandachildren (Ministry of Labour various subsequent years. Tobacco industry reports
years), and their collective efforts result in do not suggest any staggering decline in
salutary impact on bidi smoking.
600 billion to one trillion bidis being pro the bidi trade or show massive migration
duced every year, making bidis perhaps of bidi smokers shifting their preference
the most produced commodity in India. to cigarettes. How does the fsi explain
They are also the single largest cause of such a decline? Officially, how much tendu
preventable premature death among leaf is extracted in India, is a question that
adults in India. Despite these staggering remains unsubstantiated.
numbers of employment, production and

Illicit Tendu Trade
early deaths, there are no national esti
mates of the numbers of bidis made or Using back-of-the-envelope methods could
tendu leaves plucked, and the revenues
help us arrive at the magnitude if not pre
realised or forgone. cise numbers of tendu leaves plucked and
Data on bidis and tendu leaves is hard bidis rolled. To begin with, since every
bidi contains on an average 0.2 grams of
to come by. There are virtually no govern
ment figures on annual bidi production.
tobacco (Gupta and Asma 2008), dividing
Tendu extraction (called production in
the bidi tobacco produced (Directorate o
Tobacco Development 2010) provides an
forestry terms) is reported by state forest
estimation of the total bidis produced
departments or forest development corpo
rations, which are consolidated in theannually. Export of bidi tobacco as a pro
portion of total production is too smal
Forestry Statistics India (fsi) prepared by
(0.14% in 1996-97 and 0.08% in 2006-07
the Indian Council of Forestry Research
and Education, Dehradun. However, these
and can therefore be ignored. From 1975
are inaccurate since states report their data
bidi production grew from 0.55 trillion to
nearly one trillion by 1990. By the mi
in different units (Karnataka reports annual
1990s, more than one trillion were pro
production in cubic metres, while Madhya
duced, but it started to decline after 1998
Pradesh, Gujarat and Uttar Pradesh report
these in standard bags, many others report
(Figure 1, p 78).
in metric tonnes or quintals). It is also not For simplicity of calculation, for pro
clear whether extraction implies tendu
duction factors (like quality of leaves, skil
leaves auctioned or collected or the total of labour which can reduce wastage, dam
Pranay G Lai (PLal@theunion.org) and Nevininventory
C or the sales. The biggest draw
age to leaves during the entire production
Wilson (NWilson@theunion.org) are with theback of the (state) government data is that
cycle, etc) it is assumed that every tendu
International Union Against Tuberculosis and
private and community extractions whichleaf produces just one bidi, which is the
Lung Disease (The Union), New Delhi.
acceptable norm (Giriappa 1987; Lingaraj
are legally permitted are not recorded or
Economic & Political weekly 0323 January 14, 2012 VOL XLVII NO 2 77
DISCUSSION
new states
1980). To estimate the national tendu like Jhar
leaf Figure 3: Price of Standard Bag of Tendu in Madhya Pradesh (in Rs)
production, auction data fromkhand Madhyaand Chhat
Pradesh (mp), the largest tendutisgarh leaf pro took time to

ducing state, is extrapolated (Madhya create their auction
Pradesh State Minor Forest Produce systems, and this is
(Trading and Development) Coop Federa corrected in our esti
mation as seen in Fig

tion 2011; Singh 1997). This data is consist
ure l. in
ently reported and publicly available As these states
their annual reports. Prior to 2000, mporganised their

quickly
1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
produced nearly 41-45% of the totalauction
tendu system, tendu
leaf extraction has intensified in Chhattis
(Gupta 1991; Joshi 2003). After its bifurca Naxalites allegedly claim most of the
garh and Jharkhand. In some states espe
tion to create a separate state - Chhattis benefits of the harvest (Comptroller and Au
ciallyto
garh the proportion has been reduced Bihar, Rajasthan, Gujarat and Maha ditor General of India 2008), and since
about 25% since 2001 (fslg, undated). 2007 restrictions on over-extraction are
As there has been a steady decline in
rashtra
the extraction
a conservative estimate, 45% is used as since 2003. Since Jhar being put in place as result of which there
mp's share of the national productionkhand
priorhas more tendu leaf producing dis is a decline in the extraction (Maharash
to 2000. To test whether these ratiostricts,
are efBihar's forest department has little
tra Forest Department 2010,2011).
from to focus on tendu leaf plucking. States like Jharkhand and Chhattisgarh
fective, national, and state level dataincentive
With
mp from 1975 to 1998 from two other are extracting more tendu while offering a
the removal of food subsidy to tendu
stud
leaf pluckers in 2001, there has been higher
ies are compared and only minor variations a price each year (Jharkhand Forest
(±3 to ±5%) are observed (Singh 1997;
sharp decline of tendu through forest Department 2011; csmfpf 2011). There
Kushwaha and Kumar 2007). The differ have been concerns about over-extraction
department in eastern Uttar Pradesh (up
ence between the total number of bidis and deciding on the optimum harvest size
fdc 2011). Rajasthan has a very variable ten
produced (using bidi tobacco productiondu leaf trade. In 2005, Rajasthan extractfor tendu (Hunter 1981) and many of these
data) and the national tendu leaf pro ed just 1.57 lakh standard bags, which rose forests are irreparably damaged (Saha
and Howe 2003).
duction provides an estimate of the size of to 5.27 in 2007 (Rajasthan Forest Depart
the private, unregulated and illicit tendu ment 2010). In Maharashtra, it has become a These estimates for bidi correspond well
market (Figure 1). Between 2000 and 2003, major drain for the forest department as with tendu leaves auctioned (fao 2005)
and those claimed by the bidi industry
Figure 1: Estimate of Bidis Produced and Size of Organised and Illicit TenduTrade
lobby - the All India Bidi Industry Federa
tion - of around 550 billion pieces during
this period (All India Bidi Industry Federa
tion 2000). The current level of bidis pro
duced 650-720 billion (605 billion in
2007-08) estimated here is considerably
less than more recent estimate of 1 to 1.2
trillion bidis (Sunley 2008). The difference
between estimated tendu leaves produced
versus total bidis made is nearly 40% to
50% and is met through illicitly or privately
traded tendu. In 2007-08, only 310 billion
tendu leaves were legally available but near
Figure 2: Estimated Tax Revenue Forgone for Bidis ly 605 billion bidis were made - which im
1,000
plies that about 49% tendu leaves were
acquired illegally by bidi manufacturers.
Revenue forgone (Rs crore)
The Global Adult Tobacco Survey sug
gests that nearly 553 billion bidis were
consumed in India in 2008-09 (goi and
hps 2010).'
Three lessons emerge from this.
• The most important factor in the bidi
trade is the tendu leaf. It is the critical
ingredient that makes bidis cheap and
is available in abundance. Its production
is subsidised by state governments and
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 the states determine prices arbitrarily.
78 January 14, 2012 vol xlvii no 2 B3E3 Economic & Political weekly
DISCUSSION
Figure 4: Estimated Revenue Forgone in Tendu Trade (Rs crore) these corrections. These may not be simply
achieved through raising taxes on bidis or
- Estimated revenue forgone removing the distinction between hand
Estimated revenue made and machine made bidis. Tax hikes
will be absorbed by producers and may
possibly increase the unbranded bidis'
sales and illicit trade. It is important to
derive the true cost of bidis so that their
retail price is corrected. To do this, prices

of inputs (labour, tendu leaves and bidi
1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
tobacco) need to be rectified as well. The
Tendu leaf prices are variable
Uttareach have minimum wages per key among these are tendu leaf costs,
year
Pradesh
but have not increased over
day
the
(Ministry
past of
20Labour various years). labour wages and regulation of extraction.
years. In Madhya Pradesh, The
for example
wages have been low and seldom re First, the price of tendu leaves must be
vised.
prices in 2006 were the same Even if revisions
as those in take place, the corrected. Currently the arbitrary nature
1976 (Figure 2, p 78). wages are controlled by middlemen who of setting its price provides virtually no
exploit vulnerable
• Fewer bidis are being produced, but as women, children and gain for forest dwelling or tribal economies.
a proportion more bidis areoldbeing
men whotaxed
depend solely on bidi rolling. Using full cost accounting methods which
The notion
than the previous decade (Figure 3, pthat bidi rolling supplements incorporate economic, social and ecologi
78).
This is not only because collections have
family incomes is delusional for those who cal costs and reducing state discretion in
improved substantially, butaccept
more impor
this; indeed families that roll bidis price setting, a full cost price of the bidis
depend
tantly, bidi production centres on it for their only real income can be achieved. The Haque Committee
in Gujarat,
(Varma
Maharashtra, Rajasthan, Orissa andandBihar
Rehman 2005). appointed by the Ministry of Panchayati
have declined and shifted to new areas. Raj in August 2010 has recommended a set
Recommendations of mechanisms to determine the mini
Some bidi rolling centres like Sagar, Da
moh and Murshidabad have consolidated,Numbers and estimates are crucial in mum support price for tendu leaves.
which may have made collection simpler.achieving the twin goals of reducing the
Second, wages for tendu leaf plucking
public health impact of tobacco use,and
• Tendu leaf trade is larger in size than andbidi rolling must be made at par or
above existing minimum wage rates and
improving tax collection while reducing
the bidi tax revenues, when illicit trade for
the illicit trade of bidi.
both are considered. In 2007, for example, distinction between home-based and manu
the illicit trade market of tendu leaves and
The public health goals of reducing factory rates must be removed. Because
untaxed bidis together was estimated at smoking by raising retail prices through of the significant size of the bidi and tendu
Rs 1,288 crore (untaxed bidis accounted taxes will be defeated in the absence of leaf trade and their profound impact on
for Rs 381 crore), illicit tendu trade was
around Rs 907 crore which is more than
the budget for routine immunisation and Economic&PoliticalwEEKLY
polio combined in 2007 or larger than the
REVIEW OF URBAN AFFAIRS
profits of India's public sector aluminium
producer National Aluminium Company July 30,2011
(nalco).
Urban Concerns: An Introduction - Anant Maringanti, Amita Baviskar,
Other Factors Considered Karen Coelho, Vinay Gidwani
Bypassing the Squalor: New Towns, Immaterial

Unlike flue-cured tobacco (used for making
Labour and Exclusion in Post-colonial Urbanisation - Rajesh Bhattacharya, Kalyan Sanyal
cigarettes) which is regulated though the
Urban Development and Metro Governance -KC Sivaramakrishnan
Tobacco Board of India, bidi tobacco
Branded and Renewed? Policies, Politics and
cultivation is not regulated, and its price is
Processes of Urban Development in the Reform Era - Darshini Mahadevia
set by a handful of tobacco traders. Only
bidi tobacco prices have been rising in the Translating Marx: Mavali, Dalit and the Making
of Mumbai's Working Class, 1928-1935 - Juned Shaikh
past decades, but remain largely afford
The Board and the Bank:
able. In effect, when bidi tobacco prices are
Changing Policies towards Slums in Chennai - Nithya Raman
favourable the margins can absorb any
price or tax increase since the other two in For copies write to:
puts (labour and tendu) are abysmally low. Circulation Manager,

Bidi rolling wages are determined by the
320-321, A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013.
states and are set for 1,000 pieces rolled,
although states like Karnataka, Orissa and
Economic & Political weekly nran January 14, 2012 vol xlvii no 2 79
DISCUSSION i
local communities, it is important that

Chhattisgarh Economic Botany,
State Minor Forest Produce (Trading andVolume 35, Number 4,450-51.
Development) Cooperative Federation Limited
Kushwaha, R S and V Kumar (2007): "Economics of
they are closely monitored through a http://www.cgmfpfed.org/forestproducei.
(2011): Protected Areas and Its Effect on Biodiversity"
htm (New Delhi: APH Publishing Corporation).
central authority.
CAG (2008): "Maharashtra State Audit Report (Civil Lingaraj, B P (1980): "Production and Inventory Plan
Third, removal of exemptions forPerformance)
bidi - 2006-2007", Comptroller and ning in the Beedi Industry", The Institute of Man
producers who produce less than two mil
Auditor General of India, New Delhi. agement Sciences, Hanover.
Directorate of Tobacco Development (2010): Annual Maharashtra Forest Department (2010, 2011): http://
lion bidis and removing the distinction
Tobacco Production Data (1975-2009) (Chennai: www.mahaf0rest.nic.in/fckimagefile/April%20
between machine-made and handmade Government of India). 2oii%28i%29.pdf (in Marathi) http://www.ma
FAO (2005): "Global Forest Resources Assessment -
will reduce illicit and unpaid bidi trade, haforest.nic.in/report_file/Statistical%2oOutline%
Country Report 1", Forestry Department, Rome. 202010.xls
and therefore correct the existing distor
Indian Council of Forestry Research and Education Madhya Pradesh State Minor Forest Produce (Trading
tions further. (2002): Forestry Statistics India, Dehradun. and Development) Coop Federation) 2011: http://
FSLG (undated): NTFP Enterprise and Forest Govern www.mfpfederation.org/website/content/
Only when these three steps are cor tendupatta.html. As viewed on 1 December 2011.
ance: Tendu Leaves, Forest Governance Learning
rected, will the tax arguments (as proposed Group, New Delhi. Ministry of Labour (various years): Annual Report
Government of India and International Institute for 1999-2000, 2000-01, 2009 2008-09 (New Delhi:
by Jha et al 2011 and Sunley 2008) have Government of India).
Population Studies (2010): Ministry of Health and
the desired impact of public health goals Family Welfare, Global Adult Tobacco Survey: Ministry of Statistics and Programme Implementation
while achieving revenue gains. India Report, New Delhi. (MoSPI): Statistical Year Book 2011, see: http://
Giriappa, S (1987): Bidi Rolling in Rural Development mospi.nic.in/Mospi_New/upload/statistical_year_
(New Delhi: Daya Publishing House). book_2on/SECTOR-5-SOCIAL%2oSECTOR/CH
NOTE Gupta, B N (1991): "State of Non-wood Forest Products
33-ENVIRONMENT%2oAND%2oFOREST/Table
in India", paper presented at the regional expert 33.10.xls.
i According to GATS, total bidis smokers (7,33,14,000)
consultation on non-wood forest products at Rajasthan Forest Department (2010): www.rajforest.
x Mean number of bidis smoked per day (11.6) x
nic.in/pdf/Rajsthan%2o%2ostate%2otandu%2o
365 = 552,878,756,000 or 0.55 trillion bidis. FAO Regional Office for Asia & Pacific, Bangkok,
5-8 November. patta.pdf
Gupta, P C and S Asma (2008): "Bidi Smoking and UPFDC (2011): www.upforestcorporation.in/Scripts/
REFERENCES Public Health: Ministry of Health and Family production_sale_summary.asp
Welfare", New Delhi. Saha, S and H F Howe (2003): "Species Composition
All India Bidi Industry Federation (2000): "Represen and Fire in a Dry Deciduous Forest", Ecology, 84:
Jha, P et al (2011): "A Rational Taxation System of
tation Made to Public Hearings on the WHO Frame 3118-23.
Bidis and Cigarettes to Reduce Smoking Deaths in
work Convention on Tobacco Control", 12-13 Octo
India", Economic & Political Weekly, 15 October, Singh, A K (1997): Land Use, Environment and Econom
ber (http://www.who.int/tobacco/framework/
Vol XLVI, No 42, pp 44-51 ic Growth (New Delhi: MD Publication House).
public_hearings/F2oooi96.pdf), Geneva as viewed
on 1 December 2011. Jharkhand Forest Department (2011): http:// Sunley, E M (2008): "The Tax Treatment of Bidis",
jharkhand.gov.in/jsfdc
Arnold, JEM (1995): "Socio-economic Benefits and International Union against Tuberculosis and
Issues in Non-wood Forest Product Joshi,
Use", S (2003): "Super Market", Down to Earth, Society
Report Lung Disease (The Union), Paris.
for Environment Communication New Delhi. Varma, U K and M M Rehman (2005): Tobacco, Tendu
of the International Expert Consultation of
Non-wood Forest Products (Rome: FoodHunter, and
R J (1981):
Agri "Tendu (Diospyros Melanoxylon) Leaf and Beedi Workers in India: Problems and
Leaves, Bidi Cigarettes, and Resource Management",
culture Organisation of the United Nations). Prospects (Delhi: Shipra Publications).
REVIEW OF WOMEN'S STUDIES
October 22,2011
Subverting Policy, Surviving Poverty: Women and the SGSY in Rural Tamil Nadu - K Katpana
Small Loans, Big Dreams: Women and Microcredit in a Globalising Economy - Kumud Sharma
Women and Pro-Poor Policies in Rural Tamil Nadu: An Examination of Practices and Responses - J Jeyaranjan
Informed by Gender? Public Policy in Kerala - Seema Bhaskaran
Addressing Paid Domestic Work: A Public Policy Concern - Nimushakavi Vasanthi
Reproductive Rights and Exclusionary Wrongs: Maternity Benefits - Lakshmi Lingam, Vaidehi Yelamanchili
Reinventing Reproduction, Re-conceiving Challenges:

An Examination of Assisted Reproductive Technologies in India - Irinda Marwah, Sarojini N
For copies write to:

Circulation Manager,

320-321, A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel,
Mumbai 400 013.
8o January 14, 2012 vol xlvii no 2 EH353 Economic & Political weekly
CURRENT STATISTICS EPW Research Foundation
The domestic production of crude oil jumped by 11.9% to 37.7 million tonnes in 2010-11 from 33.7 million tonnes in 2009-10, thanks to offshore production in public sector expanding to 20.6 m
17.3 million tonnes. Natural gas production too showed a sharp increase from 32.8 million tonnes in 2008-09 to 47.5 million tonnes in 2009-10 and further to 52.2 million tonnes in 2010-11, mai
offshore private sector production. The net imports of crude oil declined from 159.3 million tonnes in 2009-10 to 115.3 million tonnes in 2010-11.
Macroeconomic Indicators
Variation (in %): Point-to-Point
Weights 17 December Over Over 12 Months Fiscal Year So Far Full Financial Year
(Base Year: 2004-05 = 100) a
2011 Month i 2011 2010 2011-12
2010-11 2010-11 2009-10 2008-09 2007-08 2006-07
Primary Articles 20.1 197.5 -1.4 2.7 18.9 4.8 15.4 13.1 22.4 5.3 9.1 12.9
Food Articles 14.3 190.3 -2.8 0.4 15.5 6.3 15.3 8.9 21.1 7.5 5.8 12.7
Non-Food Articles 4.3 177.6 0.5 0.3 26.0 -7.4 17.6 27.3 19.6 1.8 13.3 13.4
Fuel & Power 14.9 172.7 0.5 14.4 11.9 9.4 7.8 12.7 13.8 -4.9 9.2 0.9
Manufactured Products* 65.0 139.8 0.5 7.7 5.0 3.1 2.9 7.4 5.3 1.7 7.2 6.5
Food Products* 10.0 151.8 -0.1 6.8 1.1 4.6 0.4 2.4 15.1 6.3 8.4 4.3
Food Index (computed)* 24.3 178.4 -1.3 7.9 6.8 8.1 6.9 6.8 18.5 7.3 6.7 9.6
All Commodities (point to point basis)* 100.0 156.9 0.1 9.1 8.2 4.9 5.5 9.7 10.4 1.6 7.8 6.8
All Commodities (Monthly average basis)* 100.0 154.6 9.6 9.4 9.6 9.6 9.6 3.8 8.1 4.9 6.5
* Data pertain to the month of October 2011 as weekly release of data discontinued wef 24 Oct 2009. AThe date of first release of data based on 2004-05 series wef 14 September 2010.
Variation (in %): Point-to-Point
Cost of Living Indices Latest Over Over 12 Months Fiscal Year So Far Full Fiscal Year
Month 2011 Month 2011 2010 2011-12 2010-11 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06
Industrial Workers (IW) (2001=100) 19911 0.5 9.3 8.3 7.6 7.1 8.8 14.9 8.0 7.9 6.7 5.3
Agricultural Labourers (AL) (1986-87=100) 62111 0.3 8.9 7.1 6.2 6.3 9.1 15.8 9.5 7.9 9.5 5.3
Note:Superscript numeral denotes month to which figure relates, e g, superscript 11 stands for November.
Variation
Money and Banking (Rs crore) 16 December Over Month OverYear Fiscal Year So Far Full Fiscal Year
2011 2011 2011-12 2010-11 2010-11 2009-10 2008-09
Money Supply (M3) 7051044 37370(0.5) 999717(16.5) 551496(8.5) 448596(8.0) 896817 (16.0) 807920 (16.8) 776930 (19.3)
Currency with Public 988658 11274(1.2) 110178(12.5) 74461(8.1) 110987(14.5) 146704(19.1) 102043 (15.3) 97040 (17.1)
Deposits Money with Banks 6061282 26115(0.4) 891803(17.3) 479644(8.6) 338079(7.0) 750239 (15.5) 707606 (17.2) 683375 (19.9)
of which: Demand Deposits 639029 555(0.1) -12154(-1.9) -78630(-11.0) -66787(-9.3) -310 (-0.0) 129281 (22.0) 10316(1.8)
Time Deposits 5422253 25560(0.5) 903957(20.0) 558274(11.5) 404866(9.8) 750549(18.2) 578325 (16.4) 673059 (23.5)
Net Bank Credit to Government 2199188 -13727(-0.6) 397273(22.0) 216417(10.9) 132728(8.0) 313584(18.8) 391853 (30.7) 377815 (42.0)
Bank Credit to Commercial Sector 4564910 78768(1.8) 642035(16.4) 329503(7.8) 431466(12.4) 743997 (21.3) 476516(15.8) 435904(16.9)
Net Foreign Exchange Assets 1599554 14816(0.9) 228299(16.6) 206227(14.8) 89787(7.0) 111858(8.7) 367718 (-5.2) 57053 (4.4)
Banking Sector's Net Non-Monetary Liabilities 1325919 42486(3.3) 268948(25.4) 201238(17.9) 206369(24.3) 274078 (32.2) -9050 (-1.1) 94672 (12.4)
of which: RBI 612660 35185(6.1) 258860(73.2) 244385(66.4) 52185(17.3) 66660 (22.1) -86316 (-22.3) 177709(84.5)
Reserve Money (23 December 2011) 1457385 48246(3.4) 206322(16.5) 80504(5.8) 95377(8.3) 221195 (19.1) 167688(17.0) 59696 (6.4)
Net RBI Credit to Centre 502526 79390(-) 225343(-) 108491 (-) 65602(-) 182453 149821 176397
Scheduled Commercial Banks (16 December 2011)

Aggregate Deposits 5672592 25328(0.4) 866365(18.0) 464623(8.9) 313402(7.0) 715143 (15.9) 658716(17.2) 637170(19.9)
Demand 559935 560(0.1) -18578(-3.2) -81770(-12.7) -67096(-10.4) -3905 (-0.6) 122525 (23.4) -1224 (-0.2)
Time 5112657 24769(0.5) 884943(20.9) 546393(12.0) 380498(9.9) 719048(18.7) 536191 (16.2) 638395 (23.9)
Investments (for SLR purposes) 1678851 -35135(-2.0) 233308(16.1) 177232(11.8) 60791(4.4) 116867 (8.4) 218342 (18.7) 194694 (20.0)
Bank Credit 4266983 77939(1.9) 622414(17.1) 324900(8.2) 399781(12.3) 697294(21.5) 469239 (16.9) 413635 (17.5)
Non-Food Credit 4184077 73746(1.8) 602030(16.8) 306278(7.9) 385749(12.1) 681500 (21.3) 466961 (17.1) 411825 (17.8)
Commercial Investments 173699 3051(1.8) 27255(18.6) 26098(17.7) 28373(24.0) 28872 (24.5) 11654(11.0) 10911 (11.4)
Total Bank Assistance to Comml Sector 4357776 76797(1.8) 629285(16.9) 332376(8.3) 414122(12.5) 710372 (21.4) 478615 (16.9) 422736(17.5)
Note: Government Balances as on 31 March 2011 are after closure of accounts.
Index Numbers of Industrial Production October* Fiscal Year So Far Full Fiscal Year Averages
(Base 2004-05=100) Weights 2011 2011-12 2010-11 2010-11 2009-10 2008-09 2007-08 2006-07
General Index 100.00 158.1-(5.1) 164.9(3.5) 159.3(8.7) 165.4(8.2) 152.9(5.3) 145.2(2.5) 141.7(15.5) 122.6(12.9)
Mining and Quarrying 14.157 120.9-(7.2) l22.0-(2.2) 124.8(7.0) 131.0(5.2) 124.5(7.9) 115.4(2.6) 112.5(4.6) 107.6(5.2)
Manufacturing 75.527 165.9-(6.0) 175.1(3.7) 168.9(9.4) 175.6(8.9) 161.3(4.8) 153.8(2.5) 150.1(18.4) 126.8(15.0)
Electricity 10.316 152.1(5.6) 148.8(8.8) 136.7(4.5) 138.0(5.6) 130.8(6.1) 123.3(2.8) 120.0(6.4) 112.8(7.3)
* Indices for the month are Quick Estimates
Fiscal Year So Far 2010-11 End of Fiscal Year
Capital Market
30 Dec 2011 Month Ago Year Ago Trough Peak Trough Peak 2010-11 2009-10 2008-09
BSE Sensitive Index (1978-79=100) 15455(-24.2) 16123 20389(17.6) 15175 19702 16022 21005 I 19445(10.9) 17528(80.5) 9709(-37.9)
BSE-100 (1983-84=100) 7928(-25.2) 8331 10600(15.5) 7805 10262 8540 11141 10096(8.6) 9300(88.2)4943(-40.0)
BSE-200 (1989-90=100) 1851 (-26.4) 1953 2515(15.9) 1824 2427 2034 275: I 2379(8.1) 2200(92.9) 1140(-41.0)
S&P CNX Nifty (3 Nov 1995=1000) 4624(-24.2) 4832 6102(18.0) 4544 5912 4807 6312 5834(11.1) 5249(73.8) 3021 (-36.2)
Skindia GDR Index (2 Jan 1995=1000) 1969(-39.8) 2028 3272(22.6) 1875 3441 2477 3479 3151(9.3) 2883(134.2) 1153(-56.2)
Net Fll Investment in (US $ Mn Equities) - 101616(0.2)
period end 101584 101449(39.9) - -
101454(31.
51669(-18.6)
November* Fiscal Year So Far Full Fiscal Year
Foreign Trade
2011 2011-12 2010-11 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
Exports: Rs crore 113520 893094(35.1) 661056(24.3) 1118823(32.3) 845534(0.6) 840754(28.2) 655863(14.7) 571779(25.3) 456418(21.6) 375340(27.9)
US $ mn 22322 192694(33.2) 144660(30.7) 245868(37.5) 178751 (-3.5) 185295(13.6) 163132(29.0) 126361(22.6) 103091(23.4) 83536(30.8)
Imports: Rs crore 182689 1435305(32.2) 1085781(26.3) 1596869(17.1) 1363736(-0.8) 1374434(35.8) 1012312(20.4) 840506(27.3) 660409(31.8) 501065(39.5)
US$mn 35922 309530(30.2) 237664(32.7) 350695(21.6) 288373(-5.0) 303696(20.7) 251654(35.5) 185749(24.5) 149166(33.8) 111517(42.7)
Non-POL US $ mn (* Provisional figures) 25615 215414(25.5) 171696(36.6) 249006(23.7) 201237(-4.2) 210029(22.2) 171940(33.5) 128790(22.4) 105233(37.1) 76772(33.2)
Balance ofTrade: Rs crore -69169 -542211 -424725 -478047 -518202 -533680 -356449 -268727 -203991 -125725
US$mn -13601 -116836 -93004 -104827 -109621 -118401 -88522 -59388 -46075 -27981
* Provisional figures.
Variation Over
Foreign Exchange Reserves (excluding
23 Dec 24 Dec 31 Mar Fiscal Year So Far Full Fiscal Year
gold but including revaluation effects)
2011 2010 2011 Month Ago Year Ago 2011-12 2010-11 2010-11 2009-10 2008-09 2007-08 2006-07
Rs crore 1423989 1225495 1245284 -9987 198494 178705 53249 73038 ■57826 33975 359500 189270
US$ mn 270104 270948 278899 -4762 -844 -8795 11257 19208 18264 -57821 107324 46816
Figures in brackets are percentage variations over the specified or over the comparable period of the previous year. (-) not relevant.
[Comprehensive current economic statistics with regular weekly updates, as also the thematic notes and Special Statistics series, are available on our website: http://www.epwrf.in].
Economic & Political weekly EH3Q January 14, 2012 vol xlvii no 2 8i
STATISTICS
(3.0) (9.9) 720 1617

(11.9) 7446 9682 5400 4282 5508 4284 5642 6217 8178 6698 3734 8240
49390 37712 28030 20584 52222 25447 17591 26775 26055 12043 49443 14506 10470 44576 88739 115279
2010-11 164851 115461 -26540
164851* 115455*
(0.6) 734 635 (3.1)

-(0.5) 11087 5263 4529 (44.6) 8049 17476 -(0.6) 6515
14812 8545 8075 61170 17535 2244 13121 9304 4627 11589
112117 47916 33692 28428 17341 47510 25525 21985 21350 10239 56320
2009-10 160033 149654 149803 119059 159259 -40200
(3.0) 243 (1.4) 742 (3.9) (3.3)

-(1.8) 11033 4674 4431 8021 8090 7348 6996 8223 8071 2162 12193 9303 4455 12437
48549 33506 28834 17801 32849 24759 16738 14826 62889 17684 13875 51668 -24328
2008-09 160772 112223 150516 145312 108448 132775
192 867 (7.1)

(6.5) (0.4) 5077 4885 (2.1) 8217 7728 6861 6732 7794 9107 2060 (6.9) 9365 4543
43562 34118 29041 11021 18020 32402 24674 16457 16440 58361 15804 12165 13294 47669 12717 -18318
2007-08 156103 112541 144930 140697 103354 121672
161
(5.6) 4830 4669 -(1.4) 8141 7039 1131 5908 6315 8491 7805 2093 (7.6) 9505 3983
(12.6) 38379 33988 29158 11165 17993 31747 24708 16567 (13.0) 16660 53465 15697 10849 13886 42896 12618 95538
2006-07 146551 108172 135260 131669 111502 -15964
(2.1) 101
4552 4451 (1.4) 8021 7358 1557 5801 (1.0) 5525 9078 6196 2185 (1.8) 3296
33163 32190 -(5.3) 27638 11329 16309 32202 16823 14509 14305 10456 12194 .9541 12828 -4961
130109 96946 24844 119750 47572 40191 94448 99409
2005-06 122354
74
(4.6) (1.8) 4300 4226 7668 6782 1426 5356 (4.5) 5570 9298 5201 2240 (3.6) 9395 2811
93107 34309 33981 29681 11516 18165 31763 -(0.6) 24981 17313 14100 45903 14970 10245 13993 39651 13720 88978 95861 -6883
2004-05
127416 118579 120171
74
(8.2) (1.0) 4314 4240 (1.8) 7666 6491 1307 5184 (9.0) 5348 4289 2320 (3.8) 9305 2484
89495 32345 33373 29059 11382 17677 31962 25471 17805 11317 10187 43316 13372 11868 10230 37074 12945 83815 90434 -6619
2003-04 121840 113463 115991
75
(4.9) (3.2) 4088 4013 (5.6) 2855 5407 1111 4296 (4.1) 4903 9650 3053 2370 (3.8) 8351 2269
82015 30544 33044 28956 11396 17560 31389 21222 18367 10028 40207 12167 11929 10405 36644 12738 78928 81989 -3061
2002-03 112559 104140 111776
71
(3.7) (0.8) 624 (7.6)
-(1.2) 11818 4140 4069 7343 4054 3430 (4.6) 4778 9180 9681 2595 2205 7728 2256
77620 29654 32032 27892 16074 29714 25660 18317 39899 12227 11728 10432 36546 12982 75650 78706 -3056
2001-02 107274 100004 107705
(7.2) (5.1) 7416 (7.0) (6.2) 902

77411 -(0.2) 11714 4083 3596 4088 9908 8714 2595 11392 2045 6613 8059 2249
26033 32426 28343 16629 29477 25881 18465 95614 39015 10714 37938 11360 74999 74097
2000-01 103444 100074
(7.2) 3916 (7.2) 1221 1801 929 (5.9) 2415

(12.1) 11830 21191 (22.5) 4859 5471 9429 3446 8423 1677 8986 6012
51772 51772 33021 33021 17998 17998 14082 48562 17185 55035 21139 26711 20699
1990-91
(3.5) (4.4) (5.0) 673 (3.5) 366 (5.6) 404 730

5522 4985 2358 1685 1685 2115 2396 1001 7371 6120 2325 4228 1125 7473
25836 25333 10507 10507 24123 30896 10345 16200 16200
1980-81
169 710 176 904 689 800

6822 6822 6822 1445 1445 1445 1205 2896 3840 4090 3283 3837 4664
18379 18379 17110 17912 11700 11700
1970-71
Onshore Offshore Onshore Offshore Onshore Offshore Onshore Offshore LPG Naphtha Kerosene Aviation Turbine Fuel High Spe d Diesel Fuel Oil LPG Naphtha Kerosene Aviation Turbine Fuel High Spe d Diesel Fuel Oil Crude Oil Petroleum Products
Productin,CosumptinadNetImporfCudeOil,RfneryCudTehrogupt,PerolumPdrcotsuanNdrtluGasohnte) s Refinery Crude Throughput

Public Sector Private Sector
DomesticProductionofCrudeOil
Natural Gas Production
ProductionofPetroleumProducts
From Crude Oil From Natural Gas
ConsumptionofPetroleumProducts Net Imports *DatperinstoApril-Decmbr201fopetrlumpodctsruionadcsumptiondafrtheya201-. (i)Fguresnbacktupo20-1isCAGRandtherfisanulgrowthaeinprctg,(i)Consumpt cldesimportbyvaeprtis,()Fuelomainycstofurnaceil. Source:MinstryofPetrolumandNatulGas-AnualReports.
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JANUARY 14, 2012 V0IXLVIIN02

EDITORIALS The Fall of the Rupee

■ The Fall of the Rupee

■ WTO: Another Attempt at Fighting Irrelevance Governing the Urban Poor

FROM THE STATES

■ The Idea of Happiness The Idea of Happiness

■ Is India a Case of Asymmetrical Federalism?

National University of Singapore

Trydi*f\ RgsKTue. Sxltvkjl \

Network with Asia's

A remarkable collection of people have chosen to join us in pursuit of this mission.

For more information, please visit www.lkyspp.nus.edu.sg

Application deadline is 28 February 2012 for enrolment in July 2012.

the global middle-class culture. Governing the Urban Poor: Riverfront

The Perverse Economics of the Bidi

The Perverse Economics of the Bidi and Tendu Trade

(3) Informational Challenges and Public

tion of healthcare and healthcare expen able to such risks. MANGALORE

ditures in the country for all households

Category Number of Number of Number of

Up to 5 6 to 10 More than 10 Single User

Rates for Three Years (in Rs)

Notes for Contributors

But the rapid depreciation of the rupee from September 2011 is

Strange Notion of Communal Harmony

Madhya Pradesh's law banning cow slaughter is discriminatory and arbitrary

banning cow slaughter and thus beef would be akin to violating

If Mountains and Rivers Could Speak

Following in Ecuador's footsteps, Bolivia has gone further by

FROM 50 YEARS AGO come through, not only in Indiaovercome

The Fall of the Rupee:

Background, Remedy and Policy

of India has moved towards a

economy's external earnings

moving much faster to a service to

was concluded in December 1993 at the

The Politics of Sovereignty

in Pakistan This same question is being asked,

sovereignty in an unequal and beknown to the public, however, sover

tique of Huma Yusuf's argument militaries,

Adivasi Predicament even the informal economy, the refuge of

While this is at best anecdotal evidence, last

on legislative ise official pride

displacement as much as ornamental

Economic & Political weekly B353 January

Please send your CV within three weeks of publication of this adverti

CENTRE FOR RESEARCH IN RURAL

not. More disturbingly, in the classic

pair of the mining displaced, both dolakh

(7.7% pa growth) and in urban areas

2004-05 323.0 523.6 184.2 240.5

1993-94 63.2 54.7

(i) The proportionate expenditure on

Figure 1: Proportion of MPCE on Food (%), Expenditure Category-wise, Ail-India

from the households belonging to

bottom 40% expenditure class to the top

during 2009-10, all other expenditure

cereals towards commodities such as egg,consumption has been de(in Kg)

items purchased by households. Table 4 5 indicates the per

2009-10 6.00 4.24 0.29 0.26 0.20

Cereal substitutes 0.2 0.1 0.1 0.1 0.1 0.1

Figure 2: Monthly Per Capita Consumption of Pulses in India (in Kg)

All pulses and pulses products

1993-94 2004-05 2009-10 2004-05