Economic and Political Weekly Vol. 47, No. 4, JANUARY 28, 2012

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JANUARY 28, 2012 | vol XLVii no 4
Thirst for Foreign Capital editorials

10 Why has the government permitted qualified foreign investors to invest in Business Weds Big Media
India's equity markets? Finance in These Postmodern Times
Controlling the Internet
Unregulated and Unaccountable from 50 years ago

12 We cannot wait for another AMRi-like hospital t
J .1. 1 • w с «.i. i * ri** 1 4-ui'U 4. 4- HT PAREKH FINANCE COLUMN
do J not .1. have legislations 1 • w for с the «.i. regulation i * of ri** clinical 1 establishmen
i i ; л a 4. Thirst , . for „ Foreign . 0 Capital л r ,
adopt i the i central л Act. a 4. 0 r
- С P Chandrasekhar
Whose Land? Evictions in West Bengal commentary

17 What seem like skirmishes at the ground level over land in rural West Bengal are Unregulated and
in fact part of an agenda to subvert the land reform programme of the Left Front. Private Health Providers - Sunil Nandraj
Whose Land? Evictions in West Bengal

Pharmaceutical Pricing Policy: A Critique - Malini Bhattacharya
20 The draft National Pharmaceutical Pricing Po

accessible and affordable medicines for all in India. -Sakthivel Selvaraj et al
Anti-Dowry Law Viewed f

Anti-Dowry Law Viewed from the Prison Cell -chandrakala
24 The fate of families embroiled in the conflict over alleged dowry deaths is К Krishnamurty- Vishwanath Pandit
examined from within the four walls of the women's prison cell. book revi
... Biased and Prejudiced Collection on Sri Lanka
Nanotechnology: 'Risk Governance' ... in India -Gananath obeyesekere
34 Nanotechnology governance in India requires a separate agency t
resources and to monitor issues and concerns in the field.
PERSPECTIVES
Secularism: Its Content and Context Nanotechnology: 'Risk Governance' in India

89 Secularism is not - and should not be conceived to be - a decontextualised
doctrinal truth of0 an utmost OF

J REVIEW and ulterior
RURAL generality.
AFFAIRS 0 J
New Directions for Media Regulation Agr

, , in Asian Agriculture: A Critical Assessment
101 A , look at new communications technologies , and the variegated field of media _p K viswanathan, Gopal В Thapa et al
practices shows that the fragmented media policy framework requires a institutional and Policy Aspects of
complete makeover. Agriculture: A Smallholder Perspective
- Sukhpal Singh
Innovating Tuberculos
111 ТВ control in India must strengthen its capacity to respond to new challenges -Ajay Kumar
and opportunities by reflecting on underlying innovation mechanisms a
assessing established control practices. in a Semi-Arid Watershed in Udaipur, Rajasthan
- N С Narayanan, Lalitha Kamath
Market Borrowings: Centre versus States Panch

119 An analysis of the trends in certain crucial parameters pertai
market borrowings of the centre and the states. -Anand Sahasranaman
Temporary and Seasonal Mi
Review of Ru ra I Affa i rs Pattern, Characteristics and Associated Factors
Six papers look at the process of change in rural India. -Kunal Keshri, R В Bhagat
Agrarian Transition and Emerging Challenges in Asian Agricultu

41 A review of the experiences of agricultural transformation in Bangladesh
India, South Korea, Thailand and Vietnam. -Akeel Bilgrami
Beyond Acquiescence and S
Institutional and Policy Aspects of Punjab A
A • 4.- r 1- 1 r i- j. . . . . -SahanaUdupa
51 An A examination • 4.- of r the 1- role 1 of r policy i- and j. institutions . . m . perpetuating . or T . Í
^ 1 v • • • « • i.» • 1 1 Innovating T . Tuberculosis 1 • Control ^ 1 in . India , j.
tackling ^ 1 v the crisis • • in • Punjab « • i.» s agricultural • 1 1 sector. _Nora E„gd> wiebe Bijker
Khap Panchayats: A Socio-Historical Overview MONEY market review

59 How did these informal social institutions for conflict resolution take root Market Borrowings: Centre versus States
and why does their influence continue? -EPW Research Foundation
DISCUSSION
Rural Water Access: Udaipur, Rajasthan Multiple Dimensions of Human Development and
65 A study of a minor irrigation project in the semi-arid Udaipur district of Rajasthan. Interpretations of Change: A Response
- Santosh Mehrotra, Ankita Gandhi
Panchayat Finances and the Need for Devolutio

73 An analysis of three villages in Tamil Nadu shows that many gram panchayats current statistics
are reducing their dependence on devolutions from state governments. letters
Economic&PoliticalwEEKLY
ISSN 0012-9976
Ever since the first issue in 1966,
EPW has been India's premier journal for Trend in Tax Devolution high-income: Goa, Gujarat, Haryana, Maha-
comment on current affairs
rashtra, and Punjab; middle-income: Andhra
and research in the social sciences.
It succeeded Economic Weekly (1949-1965), Pradesh, Karnataka, Kerala, Tamil Nadu,
which was launched and shepherded
In vsvshisFiscal
FiscalFederalism: Implications
article Federalism: of 13thImplications Fundamentalism of 13th
on "Deficit and West Bengal; low-income: Bihar,
by Sachin Chaudhuri,
who was also the founder-editor of epw. Finance Commission's Recommendations" Madhya Pradesh, Orissa, Rajasthan, and
As editor for thirty-five years (1969-2004)
(epw, 27 November 2010), Pinaki Chakra- Uttar Pradesh.) What appears as an increase
Krishna Raj
gave epw the reputation it now enjoys. borty discusses, in part, the horizontal dis- in the share of this category of states is
tribution of tax transfers from the centre simply a function of the drastic reduction
EDITOR
С RAMMANOHAR REDDY
to the states in the recommendations of in its share at the hands of the Eleventh
the Thirteenth Finance Commission (thfc). Commission to 9.75%. For the middle in-
DEPUTY EDITOR
BERNARD D'ANELLO Significandy, he comments that "the aggre- come states the decline is from 31.82% to
WEB EDITOR gate share of low-income states has re- 25.84% in the Tenth Finance Commission
SUBHASH RAI
mained more or less stagnant at 54% during to the thfc. As regards the low-income
SENIOR ASSISTANT EDITORS the award periods of the Eleventh Finance states, the percentage of tax devolution to
LINA MATHIAS
Commission (efc), the twfc [Twelfth them increases from 49 in the Tenth
ANIKET ALAM
SRINIVASAN RAMANI Finance Commission] and the thfc". He Finance Commission to 53.62 in the thfc.
ASHIMA SOOD then adds: "While the share of middle- Regarding the high-income states, what is
BHARATI BHARGAVA
income states has declined sharply, that of more, data tabulated by С Rangarajan and
high-income states increased from 9.75% to D К Srivastava in their Federalism and
COPY EDITORS
PRABHA PILLAI
JYOTI SHETTY 11.9% during the award period of the twfc, Fiscal Transfers in India (New Delhi: Oxford
ASSISTANT EDITOR but has declined marginally to 10.94% in University Press, 2011, p 232) document
P S LEELA the thfc award. The aggregate share of the secular decline in tax transfers to this
PRODUCTION special category states has increased from group from the Third Finance Commission
U RAGHUNATHAN
7.29% to 9.6% during this period." The onwards, with the successive percentages
S LESLINE CORERA
SUNEETHI NAIR proposition embodied in these statements up to the Ninth Commission being 22.75,
CIRCULATION
about stagnation in the share of low-income 21.96, 19.68, 19.30, 17.71, and 14.22. This
GAURAANG PRADHAN MANAGER states in transfers and the allegedly sharp clearly demonstrates that the selection of
decline in that of middle-income states, even the Eleventh Commission as the base for
В S SHARMA
ADVERTISEMENT MANAGER
as the high-income states have increased comparison by Chakraborty has made for
KAMAL G FANIBANDA
their share, is an enticing one. However, it a considerably incorrect conclusion, in-
is highly misleading in that its conclusion deed the very reverse of the actual trend.
GENERAL MANAGER & PUBLISHER
К VI JAYAKUMAR
is a sheer artefact of arbitrarily limiting The pattern for the middle-income and
EDITORIAL
edit@epw.in comparison to the last three finance com- low-income states in the tabulation by
CIRCULATION missions, without explaining why the Rangarajan and Srivastava is less clear-cut,
circulation@epw.in
comparison should be so limited. It would because they use the category of "southern
seem that making the Eleventh Commission states" (thus excluding West Bengal), all
ADVERTISING
advt@epw.in
the base for comparison is misconceived of which they justifiably regard as middle-
ECONOMIC AND POLITICAL WEEKLY
in that it leads to neglecting the long-term income, while their lower-income category
320-321, A TO Z INDUSTRIAL ESTATE
GANPATRAO KADAM MARG, LOWER PAREL trend as regards the high-income states. evidently includes West Bengal. Given the
MUMBAI 4OO OI3 If we add the data for the Tenth Finance per capita gross state domestic product of
PHONE: (022) 4063 8282
FAX: (022) 2493 4515
Commission to Table 1 (p 57) from West Bengal, at least for the more recent
Chakraborty (2010), thereby widening the period, the state can reasonably be regarded
EPW RESEARCH FOUNDATION comparison by including the Tenth Com- as either the highest of the low-income
epw Research Foundation, established in
mission, it is apparent that over the period states or the lowest of the middle-income
1993, conducts
research on financial and macro-economic issues in India.
of two decades of the recent four finance states. What their data show nonetheless
DIRECTOR
К KANAGASABAPATHY
commissions there has decidedly been a is that there is a long-term decline in the
С 212, AKURLI INDUSTRIAL ESTATE decline in the share of the high-income share of the southern states and a long-
states - from 13.05% in the Tenth Finance term rise in the share of the low-income
KANDIVALI (EAST), MUMBAI 4OO IOI
PHONES: (022) 2887 3038/41
FAX: (022) 2887 3038 Commission (from the 1994 Report of the states from the Third Commission onwards.
epwrf@vsnl.com
Tenth Finance Commission , p 25) to 10.94% Their overall conclusion, more particularly
Printed
in the thfc. (Of course, the states in the Industries,
by К Vijayakumar at Modern Arts and in respect of all transfers, including grants,
151, A-Z Industrial Estate, Ganpatrao Kadam Marg,
different categories under
Lower Parel, Mumbai-400013 and the Tenth Com- under Finance Commission auspices is that
published by him on behalf of Sameeksha Trust
mission are the same as in Chakraborty "the major gainers have been the low-income
from 320-321, A-Z Industrial Estate,
(2010: 57)
Ganpatrao Kadam Marg, except for
Lower Uttarakhand,
Parel, which states and the special
Mumbai-400013. category states".
Editor: С Rammanohar Reddy.
was part of Uttar Pradesh until 2000 - That is a more accurate description of
4 January 28, 2012 vol xlvii no 4 B3S3 Economic & Political WEEKLY
long-term trends than the simple claim Little wonder that Finance Commis- is prevalent in large states. Will smaller
that the rich states have been handed a sions receive few thanks for their efforts states reduce the incidence of corruption?
higher share and the poor states have re-
to please so many different interests. We doubt it. Once elected to power, the
mained stagnant in their share, while the
Baldev Raj Nayar, chief ministers of such states may actually
middle level states have been losing. McGill University turn into dictators as they will be acting as
MONTREAL, CANADA the heads of their fiefdoms with little or no
That larger transfers should go to the poor
states is, of course, to be expected in any prospect of appeal. So instead of one corrupt
Balkanisation
modern state, which is charged with the head, we will have four. In the present
of Uttar Pradesh
progressive function of redistribution. arrangement, if any representative is found
However, it would be mistaken to treat the corrupt, the aggrieved at least has the option
middle and rich states as losers by focus- of taking her/his grievance to the chief
The to divide
ing simply on tax transfers. As political to divideUttar Pradesh
the state intothe
fourstate
partsgovernment's
has into four parts move has minister who is at some distance from the
jurisdictions that are predominantly ori-

largely been thought of as a masterstroke by place and tends to be free from biases and
ented to production and manufacturing,
allies and rivals alike. No political party can prejudices which may help in taking a
these states undoubtedly benefit by way oppose
of this move though they may object to neutral stand on any issue. Even if the person
the higher income and larger employmentits timing. It is crystal clear that the govern- does not get justice, at least the possibility
from the vast national market in which ment conceived of the move owing to of his/her appeal being dealt with fairly
the poor states belong largely to the con- purely political reasons. Such division is not exists. If the division of state takes place,
suming category. In a sense, tax transfers in keeping with the interests of the state. this option may not be available at all. It will
to the poor lead in a circular process to The reasons given for fragmentation are be the government of the few for the few.
enrich the middle- and high-income states many. Administrative convenience is often Small states may also lead to too much
as these facilitate the purchase of goods cited. Moreover, it is said that there is aliena- familiarity which foster nepotism and
and services from the latter. The middle- and tion between the ruler and the ruled in large other corrupt practices. We may also get to
high-income states have benefited, too - states. Corruption is another evil that is choose representatives from a smaller area
as Govinda Rao forcefully demonstrates in said to be associated with large states. which may be a limiting factor in choosing
his "Reform of Intergovernmental Fiscal While there may be some merit in these our candidates.
Arrangements for Balanced Regional Deve- arguments, it is equally true that smaller Separate legislative assemblies and coun-
lopment in a Globalising Environment" states may in fact pose a larger number of cils will also have to be created for the
(in M Govinda Rao and Anwar Shah (ed.), problems for the country as a whole. new states. Another problem that we may
States' Fiscal Management and Regional Experts put forward the successful exam- face with the creation of smaller states is
Equity: An Overview (New Delhi: Oxford ples of states like Uttarakhand and Gujarat the division of resources as some parts
University Press, 2009), pp 143-70) - from which were carved out from larger states, may be better endowed than other parts
the higher plan investments, location of but they often ignore the examples of and it is not always possible to divide the
central public enterprises, concentration Jharkhand and Chhattisgarh that were also resources. This may prove detrimental to
of public sector bank branches, higher carved out on the pretext of better adminis- the development of the region.
credit-deposit ratios, and the consequent tration. Thus the intent of the administrators The creation of new states will also nur-
higher economic growth. Besides, they is instrumental in the development of the ture feelings of regionalism. India is already
have been able to make much more effec- state. An efficient administrative mechanism battling regionalism amongst certain states
tive use of the centre-subsidised public needs to be put in place rather than resorting which, at times, threatens the unity of India.
distribution system because of their supe- to division of states on the plea that the state Thus balkanisation of the states may not
rior administrative capacity. They have is too large and unwieldy for administration. be a very good idea after all and can have
also been the principal beneficiaries of If the state is too large, it can be divided dangerous repercussions for the country
economic liberalisation and globalisation. into zones for administrative purposes. in the long run.
But in a resource-scarce world where every- The next reason which is given for Ranjana Khare
one wants more, it seems no one can be bifurcation is the rampant corruption which NEW DELHI
happy with what they get; as Rangarajan

and Srivastava (op cit, p 230) maintain:
EPW at Kolkata Book Fair
The richer and middle-income states are un-
happy because they contend that they are con- Economic and Political Weekly
tributing far more to the central taxes but
will be at the
getting a progressively falling share. Low in-
come states are unhappy that a proper equalis- Kolkata Book Fair,
ing transfer has never been achieved and
January 25, 2012 to February 5, 2012.
there is growing inequality in the standard
of services. Special category states are unhappy
Do visit us at Pavilion Hall No. 2, Stall No. 3.
saying that their extraordinary difficulties We look forward to seeing you there.
are not being fully taken into account.
Economic & Political weekly ШШ January 28, 2012 vol xlvii no 4 5
/';-=09 )(8* =-0/']
JANUARY 28, 2012
Big Business Weds Big Media

The Reliance/Networki8 deal should make us wake up to the impending threat to media plurality.
in the future, ril could also rake in profits. Having cornered a major
media deals, where the country's leading industrial and share in 4G spectrum through its subsidiary Infotel Broadband
Few business mediabusiness
are deals,
giant hasdiscussing
bought intogiantthe where
largest has it. bought
network of newsthe India country's into has the just largest seen leading one network industrial of the of biggest news and Services, ril has entered into an agreement with Networki8 for
and current affairs tv channels. Yet, the fact that this could mark preferential access to the distribution of all content. Thus, the car-
the beginning of a trend leading to private media being control- rier and the content provider will converge in a way that has not
led by a handful of corporates, as has already happened in so happened to this extent before although there are smaller exam-
many countries around the world, and have a direct impact on ples of such convergence in a few states, including Tamil Nadu.
media plurality, seems to have escaped notice. Is the silence de- Therefore, the concern for the future of the media is on several
liberate given that most media houses do not want to be seen as grounds. One, given the history of the influence of media giants
too critical of a company that already has enormous influence in like News Corp owned by Rupert Murdoch and the Silvio Berlusconi
innumerable spheres? Or do they fear that too much talk could empire in Italy, it is already well established that when big business
result in pressure on the government to look again at suggestions and big media converge, the impact on politics, policy and people's
about regulation on cross-media ownership? views is enormous. It virtually kills media plurality and allows a
The Rs 2,ioo-crore deal between Reliance Industries Limited (ml) small group to manipulate opinion to suit its own interests. With
and Networki8/Tvi8 is significant for more reasons than one. It is the this in mind, many countries have devised regulations that check
first time that a non-media company of the size of ril has obtained vertical integration between content providers and carriers, as well as
a direct stake in media. There are other smaller businesses such as cross-media ownership that results in concentration of ownership.
real estate companies that have invested in media, as have politi- In India, little thought has been given to this. In 2009, the Telecom
cians and political parties. But none of the leading business houses Regulatory Authority of India (trai) made several recommenda-
have done so. As a result of the ril deal, Networki8/Tvi8, which tions on this issue but the report was never made public. The trai
owns seven tv channels including news and business channels, suggested, for instance, restricting vertical integration of broad-
will now control Eenadu tv (etv) that has a vast reach through its casters and distributors. It recommended a detailed survey to assess
12 regional language channels with a viewership in at least ю states. the extent of horizontal integration or cross-media ownership that
Why should the ril deal be a cause for concern? The media scene already exists before working out restrictions. And it suggested that
in India has seen an impressive growth in the last decade with the after arriving at restrictions for vertical and horizontal integration,
entry of satellite and cable television. Currently, there are around 745 the government should look at the guidelines for mergers and
tv channels of which 366 are in news and current affairs. Another acquisitions to prevent concentration of media ownership.
600 channels have applied for licences. Yet, these numbers hide a The fact that these recommendations have never been made
slighdy different reality. Media presence does not necessarily trans- public, have not been discussed and have been virtually shelved
late into huge profits. The majority of networks, including large ones illustrates the power that business houses already have. In any case,
like Networki8, are struggling with the bottom line in an industry even without the kind of media concentration evident in some other
that has high capital costs and works on low margins. It also does countries, in India the influence of business and politics on media
not guarantee viewership. Of the news and current affairs channels, content is already apparent in many different ways, such as "paid
for instance, 21 networks with their 46 channels have 80% of the news" that guaranteed favourable coverage to candidates contesting
viewership. The rest have a limited reach and barely survive. elections, or "private treaties" between media houses and businesses.
ril's deal with Networki8 is clearly not just for profits but also for The ril deal represents a major leap towards further media con-
other dividends that media ownership yields, (ril has already been centration and subsequently more direct influence on media
accused by Y S Vijaya Lakshmi, wife of the late Y S Rajasekhara content. Nothing could be worse for democracy where media
Reddy, of earlier investing indirectly in etv to return a favour to independence and plurality are essential. It is not too late to debate
former Andhra Pradesh Chief Minister N Chandrababu Naidu on and decide on regulations that restrict the emergence of media
access to natural gas reserves in the Krishna Godavari basin.) But behemoths. India does not need desi Murdochs and Berlusconis.
Economic & Political weekly 0BS3 January 28, 2012 vol xlvii no 4 7
Finance in These Postmodern Times
Without a well-designed, surplus recycling mechanism the eurozone will go from bad to worse.
ultimately come out of the red in the medium term. Right now, is
nine eurozone countries, including France, Austria, Italy not the remedy being applied worse than the disease? If one is
Does nine and the Spain, eurozone
and Spain, downgrading
on Friday, 13 Januaryon byFriday,
Standardcountries,
and Poor'13s of January including the sovereign by France, Standard credit Austria, and ratings Poor's Italy of then looking for solutions to the eurozone's crisis, one needs to
(s&p) signal that the eurozone itself is fast approaching its end? ask: What caused it?
Previously, when s&p had downgraded the sovereign debt ratings In the midst of the collapse of the Bretton Woods system in the
of the United States (us) and Japan, the bond markets did not take early 1970s, the us eventually (by the late 1970s) worked out an
the cue - the downgrade had no appreciable effect on the yields arrangement with the neo -mercantilist powers, mainly Germany
of the government bonds of those countries. The various funds and Japan, under which it would continue to run the twin deficits
and financial institutions that buy government bonds, in effect, (trade and fiscal) but with a huge capital account surplus. Thus it
called s&p's bluff. But this time around, has the us credit rating absorbed the trade surpluses of Germany, Japan, and later on,
agency got it right? After all, it actually stated that "the financial China, and simultaneously attracted huge capital inflows from the
problems facing the eurozone are as much a consequence of rising rest of the world. Added to this were the huge corporate profits
external imbalances and divergences in competitiveness between that came from the growth of labour productivity as the real wage
the eurozone's core and the so-called 'periphery'". And, it went rate stagnated. The interest income from the expansion of consumer
on to add, "a reform process based on a pillar of fiscal austerity debt added to the flow of such funds into the financial system
alone risks becoming self-defeating, as domestic demand falls in (Wall Street). A rapid expansion of the financial part of the economy
line with consumers' rising concerns about job security and dis- relative to its "real" counterpart got underway, what is now called
posable incomes, eroding national tax revenues". Moreover, three financialisation. The process was kept going by the central banks;
days later, on Monday, 16 January, s&p downgraded the credit they acted as "lenders of last resort", ready to ultimately bail out the
rating of the European Financial Stability Facility (efsf), the major financial institutions (they were "too big to fail").
eurozone's rescue fund, by one notch from triple a to aa+, for, Indeed, as long as the going was good, the collateralised debt
after all, France and Austria are among its main guarantors. The obligations and other triple a rated financial instruments that
efsf is expected to contribute to the second "bailout" of Greece, were innovated became stores of value, the stuff of collateral,
but that country's negotiations with its creditors broke down and means of exchange in the financial world, acting as private
on 13 January, as Greek government bondholders demanded a money. But when the housing market collapsed and Lehman was
higher rate of return to compensate for the higher default risk. allowed to fall, this whole financial structure gave way. But the
Greece, Ireland and Portugal are now deemed to be not directly us government and the European Union (eu) bailed out the banks
worthy of the bond markets and are now dependent on the efsf; and other financial institutions whose assets were now vastly
Spain and Italy may soon join those countries. But the downgrading diminished even as their liabilities remained. But no sooner than
of France and Austria is ominous, albeit they are still deemed these banks and other financial institutions' balance sheets were
creditworthy by the funds and financial institutions on the repaired, thanks to the bailouts by the us and the eu, and the
demand side of the bond markets. But what is now the worth of financial hawks knew that these rescue acts had in fact weakened
their guarantees for the financial health of the efsf? As a euro- the fiscs, especially those of the weaker economies in the euro-
zone country's ratio of the public debt to gross domestic product zone (subject to the Stability Pact, the fundamentally flawed
(gdp) crosses 60% and its real gdp growth rate falls, the spread financial architecture of the euro), e g, Greece, they began to use
on its government's bonds rises and eventually there is a run on credit default swaps (cdss) to bet on the failure to those govern-
those bonds. In the present context of extreme fiscal conserva- ments to meet their debts. The eurozone did not have the kind of
tism, the medicine of fiscal austerity only worsens the health of surplus recycling mechanism that the Bretton Woods system had
the patient, i e, pushes the economy's growth rate into negative or even the one that the us and the neo-mercantilist powers put
territory, and the country falls out of the bond markets, with the in place after the demise of that financial architecture, cdss based
efsf now having to bail it out. Indeed, the list of triple a guarantors on the eurozone's so-called peripheral countries' sovereign debt
of the efsf is dwindling. Is a domino effect in motion, we might became the new game in town for the hedge funds and the banks.
ask? Now only Germany, Luxembourg, Finland and the Nether- We are reminded of what Paul Sweezy and Harry Magdoff
lands are left on the list of triple a guarantors of the efsf. (then editors of Monthly Review) wrote in the aftermath of the 1987
Where is the eurozone headed? Its leaders, Germany and stock market crash in the us and it seems appropriate to paraphrase
France, are forcing Greece, Ireland and Spain to take more ex- their words to apply to the present: "The mess" the eurozone is in
pensive debt in order to pay off the banks who are on the brink of flows "from capitalism's ruthless pursuit of unlimited wealth by
bankruptcy, but these banks are in panic because the creditors any and all available means, whether or not these have anything
are demanding more fiscal austerity and the banks know that to do with satisfying the needs of real human beings". Charlie
this will further reduce the debtor-country's real gdp growth Chaplin's Modern Times hit the screens in 1936; one wonders
rate and thus its government's tax revenues with which it can what these postmodern times will look like in 2016 or 2036.
8 January 28, 2012 vol XLVii no 4 13323 Economic & Political WEEKLY
Controlling the Internet
Bills in the us Congress that are meant to check piracy will simultaneously lead to control of the internet.
access as it could cut off not just a single web page but an entire
domain. The dns is what helps convert ip addresses into recog-
Smooth
Smooth tion internet.
tion - -texts, sharinginternet.
texts, A part news,
blogs, of A
blogs, of videos part
the news, of explosion
andinformation the -explosion
multimedia videos in and an thisin
has isun- thisintegralsharing
multimedia sharing part ofof informa-
- informa- has of un- the nisable word forms. Filtering would mean that isps would have to
doubtedly been driven by online piracy. The introduction of peer- prevent consumers from accessing certain ip addresses deemed
to-peer sharing has led to a vast amount of copyrighted content to contain pirated material. One reason why sites like Wikipedia
from books to television shows to films being illegally available have reacted in protest is that if any one article in the mammoth
for downloading or being hosted on sites that register themselves user-driven encyclopedia contains copyrighted content, sopa
in countries which have lax internet laws. would call for a dns block on the entire site, dns filtering is also
In what they see as the best way to curtail internet piracy, legisla- an ineffective way to restrict access, as this can be circumvented
tors in the us have introduced two bills - the Stop Online Piracy Act by the use of various online tools. This may then bring in even
(sopa) and Preventing Real Online Threats to Economic Creativity more isp controls.
and Theft of Intellectual Property Act (pipa) - in the House of Concerns about content piracy are legitimate in some cases.
Representatives and Senate, respectively. The bills come with some Various sites not only "swap" content that is copyright protected -
stringent provisions. These call for search engines to render sites i e, content that is bought by someone and shared with others for
carrying illegal content - irrespective of whether they are registered free - but host them in "cyber-lockers" and charge viewers based
in the us or elsewhere - difficult to reach while surfing, for internet on download limits. These "lockers" host books, videos and journal
service providers (isps) to filter out such sites through domain articles and are mostly registered in locations where piracy laws do
address resolution and by blocking internet protocol (ip) addresses, not exist. An alternate way to regulate and prevent this form of
provide for punitive punishment of payment providers who link up piracy is to monitor and halt payment systems and advertisement
with such websites, and more. Disturbingly the bills also call for services of such sites, and effect better authentication of new domain
curtailing access to websites that carry a link to another website registrations. As for content that is copyrighted and hosted by users
that may have illegal content, even if that link is merely "posted" on social networking sites, an effective method to control such
by a user. The us bills have drawn strong protests from internet practices is to ask that these websites formulate and implement take-
users and companies. The popular web-based "open encyclopedia" down policies. This is more mindful of the new model of the inter-
Wikipedia went "dark" for an entire day on 18 January, blocking active web and does not stifle it by making the websites responsible
access to its English edition in protest and to raise awareness about for monitoring all forms of content that are hosted therein.
the bills. The website of the popular browser Mozilla and the social Big media businesses prefer the more intrusive bills as they seek
networking website Reddit followed suit; so did many others. to retain overall control over how their digital products are sold and
It is not as if these sites encourage pirated or copyrighted content consumed. This is in contrast to the major internet-based companies
to be hosted on their pages. They are protesting moves to alter which have a better understanding of what global net users want.
the relatively free domain resolution system of the internet and The provisions of the bills also go against the new models of product
impose censorship roles on internet intermediaries. The concern creation and consumption that are driven by open sourcing, commu-
is that any attempt to implement what the bills are proposing nity ownership and sharing. The text of a draft bill - Online Protection
would entail a large "firewall"/"block", ostensibly to patrol and and Enforcement of Digital Trade Act - that is yet to be introduced in
shut off access to pirated content, but actually similar to what the the us Congress and is supported by major internet companies
Chinese government has done to limit internet access based on such as Google and Facebook incorporates the alternate models of
what it deems fit for viewing by its citizens. preventing piracy. Will the us Congress listen to the lobbyists act-
Domain name system (dns) filtering, one of the techniques ing on behalf of big media businesses or to the opinions of the general
suggested by the sopa Bill, is a dangerous method of restricting internet-using public and new web organisations such as Wikipedia?
II FROM 50 YEARS AGO General Elections lack the excitement the

of uncer-
Chief Minister has promised that the dis-
Шттт'сШШ^
S journal 0! Current economic anb political Affair*
tainty that characterises other free elections
the world. The Congress party, which
success,has
in
tricts which contribute most to the Congress
would be entitled to representation in
wielded power for the last fourteen years, con- Cabinet - a piece of political band-
his next
VOL XIV, NOS 4, 5 & 6, ANNUAL NUMBER, trolling
FEBRUARY 1ÇÓ2 70 per cent of the seats in the wagoning
Lok Sabha, more appropriate to the party con-
can safely expect to be returned with an over-
ventions in the USA. In Andhra, in spite of the
EDITORIALS
whelming majority not necessarily indicating
official view that caste should not be exploited,
any support for the party's policy as such
the but has no hesitation in exploiting com-
party
Congress Again clearly signifying the adoration thatmunal
the mass-
feelings. In fact, Shri S К Patii has openly
This month, from the 16th to thees
25th,
have the
for Panditji and also providing further
stated that nominations to the party ticket have
world's most populous democracy will
prooffreely
of the supreme organisation of been
the party.
influenced more by communal and caste
elect back to power the party that has. .led theCongress is too old at the game
. The to be
considerations than by any useful assessment of
people for the last fifty years. India's
beaten third
by political manoeuvres. In thethePunjab
ability of the candidates.
Economic & Political weekly 1Ш January 28, 2012 vol xlvii no 4 9
Thirst for Foreign Capital
markets to entities not regulated in their
home country. When India first began per-
mitting foreign investment in the equity
market, the fii category was created to
С P CHANDRASEKHAR ensure that only entities that were regulated
in their home countries would be permit-
The decision toted toallow qual
register and trade in India. The logic
foreign 2012, theinvestors

Government of India decided was clear. Since
to it is impossible for Indian
invest
In to 2012,to afurther
furtherliberalise
surprise the capital
Government
ac- liberalise move on of New the India capital Year decided s Day ac- regulators to fully rein in these global
India's equity markets is a
count of the balance of payments. As of players and impose conditions on their fin-
of concern both for the ki
that date a new group of foreign investors ancing, trading and accounting practices,
of funds that
identified as Qualified Foreign Investors will be
controlling unbridled attra
speculation requires
and (qfis) are to be permitted to invest directly

what this them to be regulated
says at the point of origin.
about
in India's equity markets. The definition of But this kind of derivative regulatory
government's own state of
who "qualifies" is rather broad: it covers control can apply, if at all, only to institu-
Unless anythere
individual, group or association resi- istionalsome urge
investors. Individual investors can-
about seeking
dent in a foreign country that complies out addition
not be subject to such rules even in their
with the Financial Action Task Force's home country and allowing them to enter
sources of capital inflow, i
(fatf) standards and is a signatory to India
the amounts to giving up the requirement
difficult to
multilateral memorandum
explain
of understand-
why th
that only foreign entities subject to some
government must
ing of the International Organisation open
ofdiscipline and prudential regulation should th
to a Securities Commissions
source (iosco), dealing be allowed
that is to trade inunlikely
Indian markets. This
is of relevance because individual investors
deliver with regulation of securities markets.foreign
much capi
It is useful to clarify the element of are unlikely to enter India and invest in
and would, if it does, incr
change here. The announcement adds a equity to hold it with the intention of earn-
rather than
new decrease
category of foreign investors permitted ing dividend incomes. Besides the fact specu
that
and volatility.
to directly invest in equity markets; this is the information costs of engaging in such
in addition to the registered foreign insti- activity would be substantial, the exchange
tutional investors (fus) that had been per- rate and other risks would be deterrents to
mitted hitherto. These would, ostensibly, long-term commitments. So if such inves-
be in the nature of individual investors or tors do come at all, they would come with
groups seeking to expand and diversify the intent of reaping capital gains through
their portfolio. Besides the international short-term trades. Thus, to the extent that
compliance requirements, Securities and the measure is successful it would mark a
Exchange Board of India (sebi) norms transition towards allowing speculative
specify that a qfi cannot be an Indian resi- players greater presence in Indian markets.
dent or an Fii or a holder of a sub-account This transition had already been in the
with an fii. In the Union Budget for 2011-12 making before the recent announcement.
these investors had been allowed to Despite the requirement with regard to fus
invest in Indian mutual fund schemes. permitted to register to trade in Indian mar-
kets, unregulated entities had in the past
The recent announcement takes this a step
further and treats them on par with fus. bought into Indian equity. This they did
It must be noted that since fus could mo-either by investing capital in designated
sub-accounts maintained by registered fus
bilise resources through special India funds
and included asset management companies or by buying participatory notes (pns), which
were tradable derivative instruments linked
these investors had earlier been allowed to
to equity held by custodians in the country.
invest in India through fus. The difference
now is that they are allowed to invest directly
Controversial Participatory Notes
in primary and secondary markets and
establish direct relationships with brokers. The pns proved to be controversial since
С P Chandrasekhar (they not only allowed unregulated entities
cpchand@gmai
is with Crucial
the Issue
Centre for
to buy andEconomic
hold ownership rights over Stu
Planning, Jawaharlal
The crucial issue here is that the new Nehru
Indian Univers
stock, but being tradable abroad
New Delhi.
came to rest with entities whose details
measure does allow direct access to equity
10 January 28, 2012 vol XLVii no 4 ВШЭ Economic & Political WEEKLY
= HT PAREKH FINANCE COLUMN
and characteristics were not knownconstraints

to the imposed) by sebi to make forms of capital inflows are taken account
these
domestic regulator. Over time pns cameinvestments
to safe. No qfi can hold of. At the beginning of the first decade of
more
account for a very large share of the 5% stock in a company, would the
thanof
stock 21st century, net capital inflows
Fii investments in the country have
and to deliver or take delivery of all stock amounted to around $8-10 billion. They
were
they
known to be held by unregulated sell or purchase, and cannot square then rose steeply from $17.3 billion in
entities
off their
such as hedge funds and private equity positions intra-day. This makes it 2003-04
firms. to $46.2 billion in 2006-07
difficult
In a shadow conflict that ensued, the Reserveto indulge in short-term trades. and an exceptionally high peak of $108
Bank of India (rbi) wanted to discourage
The requirement of an individual 5% ceil- billion in 2007-08. After the global crisis,
ing for a single
the issue of pns, while the Union Ministry of qfi in the stock of a com- these flows fell to a small $7.8 billion in
disclosure requirements when 2008-09, but quickly bounced back to
pany andto
Finance saw their presence as crucial
aggregate
encourage capital flows to the country. When qfi investments touch 8% make $51.8 billion in 2009-10 and $57.3 billion
a poor route in a takeover attempt. All in 2010-11. Thus recent flows have been
thisregard
sebi attempted to tighten rules with
this would
to pns there was a sudden exit of capital. Indeter some investors. substantial, even if much below the excep-
let us go with the assumption that tional peak in 2007-08, resulting in an
Yetbegan
the "compromise" that followed, sebi
QFis would flock to India. Even then it is to increase in foreign exchange reserves in
allowing entities that were not adequately
beregister
regulated in their home countries to expected that this capital would notmost years.
as fus and trade in Indian markets. Since come from a large number of small inves-
Real Problem of Trade Deficit
such investors were bound to be speculativetors, since the transaction costs associated
players, the government had indeed retreat- with making such small investments In sum it is not the volume of capital flows
ed on its original regulatory principles. Seen would be uneconomic to bear. What we that is a problem, but the fact that the
in that light, the recent move is merely ex- are likely to see is a few, large, high nettrade and current account deficits on
panding the set of unregulated entities per- worth individuals seeking out the bestIndia's balance of payments have been ris-
mitted to trade in Indian markets. stocks, so that the expectation that the
ing in recent times. Though capital inflows
Yet the question arises as to why the gov- measure would significantly widen and
have been more than adequate to finance
the current account deficit in most years,
ernment has chosen to opt for this policy deepen the domestic equity market is likely
shift at this point in time. The government's to remain unrealised. the presence of that deficit rather than the
press release seems clear on the matter, Moreover, as noted above, these inves- outflow of fii investments seem to be res-
declaring that the object of the measure is tors would most likely be those who are ponsible for the rupee's weakness. Thus,
to "to widen the class of investors (in equity willing to accept the uncertainty and risk neither from the point of view of the
markets), attract more foreign funds, andof investing in dispersed markets in return rupee's relative strength nor from the point
reduce market volatility and to deepen the for quick capital gains. Since these inves- of view of the adequacy of reserves was
Indian capital market". It is indeed true that tors are unlikely to spend much on gather- the recent change warranted. Hence, the
the government had been concerned about ing their own information on individual government would do better to focus on
the fall in fii investments and net fii invest- companies, on the macroeconomic situa- trends on the trade and current accounts
ment outflows on occasion and has been tion and on the state of equity markets, rather than on the capital account.
attributing the weakening of the external they are likely to base their decisions on However, the evidence suggests that
value of the rupee to these tendencies. signals from large investors. That is, they the government is overcome by an obses-
This decline in inflows leading even to would pursue in herd-like fashion the sion with attracting foreign capital flows.
net outflows was seen as being the result large institutional investors. Hence the Prior to the recent move, the government
of developments abroad, which required presence of these new investors, even if it had in December deregulated interest
fus to book profits in India and repatriate turns out to be large, would not reduce rates on Non-Resident (External) Rupee
their funds to meet commitments or cover speculation and volatility, but would in all (nre) deposits and Non-Resident Ordi-
losses at home. Hence, underlying the re- probability increase them. nary (nro) Accounts, triggering a chase
cent measure is the presumption that Thus, unless there is some urgency for non-resident deposits among Indian
there are non-institutional investors who about seeking out additional sources of banks. According to reports, there has
would not be subject to such constraints. Ifcapital inflow, it is difficult to explain why since been a surge in nri deposits, encour-
such investors are permitted to access In- the government must open the doors to a aged by the opportunity to earn profits
dian markets directly, as opposed to having source that is unlikely to deliver much through arbitrage. One only needs to turn
to invest through fus, it is argued, India foreign capital and would, if it does, to India's experience during the balance of
would be opening itself to an "additional" increase rather than decrease speculation payments difficulties of 1990-91 to realise
and more stable source of capital inflow. and volatility. Is there any desperate need how fickle such investors tend to be. But
to attract such capital? While it is true that given its inexplicable thirst for foreign
Unrealistic Assumption there has been some reduction in the finance the government seems to be
The first assumption here is that such quantum of fii inflows in recent times, the
ignoring the dangers associated with
investors would flock to India despite volume of net capital inflows into the excessive flows either of nri deposits or of
the guidelines issued (and, therefore, country is by no means small when all foreign portfolio investment.
Economic & Political weekly D359 January 28, 2012 vol xlvii no 4 11
Unregulated and Unaccountable:
to. This exists in a set-up where the major-
ity of the population utilises the services
Private Health Providers of the private health sector, but has no

control on the treatment provided and
quality of care. The fact is that most of the
private clinical establishments lie under a
SUNIL NANDRAJ thick fog and the public knows very little
about how they are run, except by way of
The recent tragedy in the super a first-hand encounter. The media is
specialty hospital in Kolkata state-of-the-art corporate hospitals, always ready with reports and images of
The which state-of-the-art recentinoccurred
which occurred the early tragedy
hours corporate in in the one early of hospitals, Kolkata's hours neglect of the government hospitals. This
shows that West Bengal Clinical
of 9 December 2011 leaving 94 people tragedy should make the authorities
Establishment Act, 1950 was
dead, the majority being inpatients, is across the country reflect, enquire and
not being effectively enforced
totally unacceptable. Since the tragedy scrutinise the functioning of private clini-
took place, thefor
West Bengal government, cal establishments.
and monitored satisfactorily
various agencies, media and experts have At the time of Independence only about
ensuring the safety of patients.
been focusing on issues related to fire 8% of all qualified modern medical care
The situation is similar in other
safety. While fire safety is important, was provided by the private health sector.
states as well. In this context,
the tragedy is yetit is on
another eye-opener But over the years the share of the private
the functioning of many private hospitals sector in the provision of healthcare kept
important to review existing state
in the country. That it happened in a cor- rising and it now stands at about 80% of
legislations to bring them on par
porate hospital is more revealing as it all outpatient care and about 60% of all
with the Clinical Establishment
brings into focus how human life has be- inpatient care.2 The private health sector
Act of 2010 with regard to comethe
a business for maximising profits constitutes a growing and dominant seg-
ment of healthcare services in India which
coverage and standards to with patients' safety norms being given
short shrift. has remained largely unplanned, frag-
be followed.
Despite the dominant presence of pri- mented and unregulated. This has taken
vate clinical establishments1 in the coun- place in the context of public policies pro-
try, there is insufficient information viding tactic support and encouragement
regarding their number, manner of func- whether in the form of encouraging
tioning, financing, human resources em-growth of private medical education, de-
ployed and the standards of care beinglivery of ancillary industries and various
followed among various aspects. Theconcessions and duty waivers to "charita-
quality of care provided is often question- ble" hospitals. The general perception is
able, with evidence of irrational and inap-that the current regulatory and accounta-
propriate treatment, tendency to conductbility mechanisms in terms of policies,
unnecessary surgeries, illegal clinical druglegislations and processes for private
trials, excessive use of higher technolo-health providers in India are inadequate
gies, overcharging, including the wide-or not responsive enough to ensure health-
spread practice of "cuts"/"commissions"care services of acceptable quality and
for referrals which is unethical and inflate prevent negligence. In most states in
costs. A widely shared grievance is thatIndia, clinical establishments are not reg-
there is a total lack of transparency about ulated or monitored. Questions on how to
charges for treatment (in the majority ofimprove healthcare quality have contin-
private clinical establishments charges ued to be frequently raised by the general
and fees are not displayed) and appropri-public and a wide variety of stakeholders,
ateness of treatment provided. Complaints including the government, consumer orga-
have been reported that even after thenisations, professional associations, insur-
and of a patient, some hospitals do notance companies, the Central Council of
death
The author is grateful to Anagha Khot
and the dead body until the duesHealth and Family Welfare, National
hand over
Sujatha Rao for their insightful comments
suggestions. are cleared. Medical records pertaining toHuman Rights Commission, and judiciary
SunilNandraj {sunilnandraj@gmail.com) has the treatment provided are also not givenamongst others.
been working on the issue of governance and to prevent consumers from seeking legal The Constitution of India in the Sev-
regulation of healthcare services.
redressai of their complaints if they wish enth Schedule states that public health
12 January 28, 2012 vol XLVii no 4 E33S3 Economic & Political weekly
COMMENTARY
Madhya Pradesh, Maharashtra, Manipur,

and sanitation, hospitals and dispensaries As mentioned earlier, several of the
Nagaland, Orissa, Punjab, Sikkim, Tamil existing legislations are outdated, inherited
is a state subject, including the regulation
of clinical establishments. Many states Nadu and West Bengal clearly brings from the pre-independence period as part
out that they are not being adequately of the British legacy. They are cumbersome
have failed in their obligation to enact leg-
islation for regulating private providersenforced
of and implemented.3 Many of the and irrelevant to the concerns of present
legislations are outdated, inadequate in healthcare service delivery. The Bombay
healthcare. Out of 29 states in the country
16 states, namely, Assam, Arunachal content and coverage, rules and by-laws Nursing Home Registration Act of 1949,
Pradesh, Bihar, Chhattisgarh, Goa, Haiyana, not been formulated and standards the West Bengal Clinical Establishment
have
are not prescribed amongst other things. Act of 1950 and the Delhi Nursing Homes
Himachal Pradesh, Jharkhand, Kerala,
Mizoram, Meghalaya, Nagaland, Rajas- instance, the Bombay Nursing Home Registration Act of 1953 are prime exam-
For
Registration Act 1949 was applicable ples. In the above Acts, the clauses, rules
than, Tripura, Uttarakhand and Uttar
only in the cities of Mumbai, Nagpur, and by-laws have not been updated taking
Pradesh do not have any legislation that
Solapur and Pune, but even in these into consideration the growing and chang-
makes it mandatory for private clinical
establishments to have a licence to func-
cities, it was not being implemented. A ing profile in terms of the size and scale of
of interest litigation filed in the Bom- complex operations and have, therefore, lost
tion. That such an important sectionpublic
bay High Court in 1991 by the Medico their relevance. Further to compound the
healthcare delivery functions without any
Friend Circle forced the Maharashtra
accountability after 64 years of Independ- issue, the ceas promulgated by the states
ence is a matter of grave concern. Itgovernment
is and the Bombay Municipalsuch as Jammu and Kashmir, Manipur,
Corporation to implement the Act. TheNagaland, Orissa, Punjab and Sikkim pri-
amazing that the states which have regu-
lations for licensing paan-beedi shops,
judges in their order observed: marily draw the content and coverage from
beer and liquor bars, handcart pullers, the outdated Nursing Home Acts of
The writ petition has served the purpose of
beauty parlours, petty traders amongst Maharashtra and Delhi to a large extent.
activising the concerned authorities, who
seem to have woken up and taken certainThese are not necessarily adapted accord-
other activities have failed to enact legis-
lations for clinical establishments. This steps in the direction of implementation ofing to the needs of the particular state.
has been due to the lack of intent and the various provisions of the law.4 One of the major lacunae in the existing
resolve among the political and bureau- legislations is that the coverage is restricted
cratic establishments in the states. One of No Accountability only to the registration of hospitals and
the reasons has been opposition by the However, after 20 years not much hasnursing homes providing allopathy care.
powerful medical lobby to any kind of changed as the implementation remainsLaboratories, diagnostic centres, government
regulation that touches their interests. questionable in spite of advocacy for establishments, clinics run by single doctors
There has been considerable amount of changes in the Act and rules by civil society and dentists, clinical establishments from
resistance from various constituents of groups. Similarly, it is seen that out of theother recognised systems of medicine,
the private healthcare sector, particularly few states that have legislations such as
namely, ayurveda, unani, siddha, homeopa-
private providers and the Indian Medical Andhra Pradesh, Karnataka, Punjab andthy are not included. Large sections of the
Association to accept in principle the Tamil Nadu, they are not being enforcedhealthcare delivery system that provide
applicability of certain regulation to their and implemented effectively. In Tamilcare are not included despite the growth of
profession, e g, the Consumer Protection Nadu, the Tamil Nadu Private Clinicalsuch facilities in India. Moreover, the min-
Act, 1986 and the Clinical Establishment Establishment Act came into force in Aprilimum standards related to infrastructure,
Act (cea), 2010. Meanwhile, vested inter- 1997, but the Act could not be enforced ashuman resources, patient safety, and display
ested parties approach the courts and the state did not frame rules.5 In Karnataka,of information have not been developed,
obtain stay orders, which hinders the im- even though there are around 15,000 nor are the issues relating to accountability
plementation of legislations that attempt to medical establishments in Bangalore alone,with respect to quality and price been ad-
make the medical profession and private only 5,080 applied for registration underdressed in the states that have legislations.
establishments accountable. the Karnataka Private Medical Establish- In many of the Acts the penalties for
ment Act, 2007 and no action was taken by non-registration or for contraventions of
Outdated Legislations: It has been clearly the authorities against those not register- the Acts are quite ridiculous and do not
brought out by the tragedy in Kolkata ing.6 Furthermore, it is astonishing to note provide for a deterrent effect. For in-
that, despite West Bengal having the West that although in the above-mentioned states, stance, under the Delhi Nursing Home
Bengal Clinical Establishment Act, 1950, it the public-private partnerships (ppps) with Registration Act, 1953 "whoever contra-
was not being effectively enforced and private establishments have been pursued venes any of the provision of the Act will
monitored satisfactorily for protecting the with enthusiasm under the Janani Surak- be punished with a fine which may extend
patients' safety. The situation is similar sha Yojana, Rashtriya Swasthya Bima to Rs 100 and in case of continuing offence
in other states as well. A review of state's Yojana (rsby) and the National Rural to a further fine of Rs 25 in respect of
legislations regarding regulation of clinical Health Mission, there is lack of sufficient each day on which the offence continues
information or data regarding private after such conviction". In Maharashtra,
establishments such as Andhra Pradesh,
Delhi, Jammu and Kashmir, Karnataka, clinical establishments. the amount is Rs 5,000 and in case of
Economic & Political weekly ЕЖЗ January 28, 2012 vol xlvii no 4 *3
continuing offence a further fine of Rs 50 establishments. In states where legisla-
owned, controlled or managed by govern-
in respect of each day on which the of- tions were available, the review brings
ment
out (except establishments of the armed
fence continues after such conviction. that these laws had never been imple-
forces), a trust, whether public or private,
mented in the right spirit leading to anon-
With regard to West Bengal the Act men- corporation (including registered as a
tions that, enforcement due to opposition by vested
society/trust) and a single doctor. A clini-
cal establishment has been defined as
interests. Policymakers, progressive bureau-
on conviction for a first offence be punisha-
ble with imprisonment for a term which may crats and politicians, judicial bodies, con-
. . .a hospital, maternity home, nursing home,
extend to three years or with fine which may sumer groups and concerned individuals dispensary, clinic, sanatorium or an institu-
extend to Rs 10,000 or with both, and on con- tion by whatever name called that offers
have been advocating a central legislation
viction for a second or subsequent offence services, facilities requiring diagnosis, treat-
that would ensure uniform standards of
be punishable with imprisonment for a term ment or care for illness, injury, deformity,
which may extend to seven years or with fine facilities and services, coverage of all abnormality or pregnancy in any recognised
which may extend to Rs 20,000 or with both health providers, a database of clinical system of medicine established and admin-
and shall in addition be liable to a fine which establishments, transparency in function- istered or maintained by any person or body
may extend to Rs 500 for everyday for which
ing, obtaining information from private of persons, whether incorporated or not; or
the offence continues after conviction. (ii) a place established as an independent
establishments and regulating them to
entity or part of an establishment referred
One of the reasons for non-implementa- meet the public health needs of the country. to in sub-clause (i), in connection with the
tion is the limited capacity and provision of On 3 May 2010 Parliament passed the diagnosis or treatment of diseases where
sufficient resources at the state level to en- Clinical Establishments (Registration and pathological, bacteriological, genetic, radio-
logical, chemical, biological investigations
act and effectively implement the existing Regulation) Act, 2010. This Act is applicable
or other diagnostic or investigative services
regulations. to the states of Arunachal Pradesh, Sikkim,
with the aid of laboratory or other medical
Mizoram, Himachal Pradesh and all union equipment, are usually carried on, estab-
The Clinical Establishment
territories. Other states can adopt this Act lished and administered or maintained by
Act 2010
by passing a resolution under clause (1) of any person or body of persons, whether in-
corporated or not (cea 2010).
The need for a central legislation wasArticle
long 252 of the Constitution in their
felt since in a majority of the states respective
there assemblies. The Act covers all It is to be noted that the central Act covers
clinical establishments, namely, thoseall public and private facilities (including
was no proper regulation of the clinical
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14 January 28, 2012 vol XLvii no 4 E33S3 Economic & Political weekly
single doctor and dental clinics) and serv- types of clinical establishments to bringin the country for better enforcement and
ices by all recognised systems of medicine out the first set of uniform minimum implementation. Further, the legislations
(including ayurveda, unani, siddha, etc) standards and the National Register ofshould incorporate clauses that would
and all types of laboratories, diagnostic Clinical Establishments in a digital format make it obligatory to provide information
institutions and therapy centres. The cov- must be published within two years from and data in the public domain including
erage and definition in the Act are quite the date of commencement of the Act transparency in their functioning and
wide to include majority of the providers charging practices, enhance penalties to
which would provide for a comprehensive
of healthcare services. The central gov- and reliable database of clinical establish- provide deterrence for non-compliance,
ernment has rightly brought government ments in the country. The national council set up monitoring bodies for the imple-
clinical establishments under the purview which is a multi-stakeholder body must mentation of the legislations for meeting
of this Act. There is a need to strengthen meet at least once in four months. The Act the public health needs of the country.
them with regard to infrastructure, hu- also allows for setting up of a multi-mem- Another aspect where reforms are required,
man resources, availability of medicines ber state level council of clinical establish- especially in the context of the Kolkata
and equipment including their mainte- ments as well as multi-member register- tragedy, is a review of the roles of multi-
nance for the improvement in the quality ing authority at the district level. In case ple agencies' involvement in the regula-
of care provided in the provision of health- of non-compliance, the cea 2010 provides tion of clinical establishments.
care services to the people. for stiffer penalties which include a fine This needs to be done through the pro-
The scope of the Act provides for an which may extend up to Rs 10,000 for the vision of sufficient resources and develop-
online system of registration by clinical first offence, Rs 50,000 for the second ing capacities to enact, monitor and en-
establishments at the district level based offence and any subsequent offence with a force the legislations through the use of
on self-declaration of the services and fine which may extend to Rs 5,00,000 for expertise and resources available from
facilities available which would be in the contravention of any provisions of the Act. within the country. Licensing is a state
public domain. The strength of this legis-The Act also specifies separate penalties function and should be performed by
for carrying out clinical establishment either elected bodies or by the bureaucracy
lation is with regard to its transparency
without registration, whoever knowingly with the participation and co-option of
through online system of registration and
serves in a clinical establishment which is
empowering of the people, as it places the other appropriate stakeholders and not
not duly registered under this Act and confused with accreditation, which is
entire process of registration and details
whoever wilfully disobeys any direction voluntary. Alongside, there is a need to
of facilities and services, equipment, staff,
lawfully given by any person or authority improve the government's capacity to en-
space and other details which the clinical
empowered under this Act.7 The cea 2010 sure successful implementation of regula-
establishment claims to have in the public
would assist in policy formulation and tion across levels. While the actual design
domain. If the information provided is
would provide the much-needed informa- of any intervention will vary from system
contrary, then recourse is available to pro-
ceed against the clinical establishment.
tion and data which would assist in laying to system, and its institutional and regula-
The establishments need to meet the pre-down conditions for partnering with the tory capacity, the central government could
scribed minimum standards of facilities private clinical establishments. assist the states in developing capacities
and personnel, maintain records and re- Presently the central government is in for implementation of various regulations.
porting of the same to authorities and pro-the process of formulating the rules in- This needs to be coupled with awareness
vide staff and facilities as may be requiredcluding model rules for the states and the generation amongst the general public
to stabilise accident emergency medicalnecessary notification for implementation. about the rights and duties, regular audits,
condition to any individual. Further the involvement of panchayati raj institutions/
Conclusions
Act empowers the government in obtain- communities in implementation, judicial
ing any information that may be requiredIt is imperative that the states that reforms
do not and a continuous review and
for public health purposes with regard to have legislations for the regulation of clin-
monitoring of existing regulations.
obtaining data and statistics from the clin-ical establishments adopt the centralThe
actregulation of private institutional
ical establishments for emergency medi-in their respective state assemblies,providers
suita- assumes greater significance in
cal management in cases of diseases out-bly formulate and modify it to meet the the
context of the recommendations by
break and interventions, which is presentlyspecific needs of the states, notify the
the Act
High Level Expert Group on Universal
unavailable from private clinical estab-along with the rules and establish suitable
Health Coverage for a national health
lishments. The Act specifies clearly thatadministrative machinery and bodies at to be implemented by public and
package
the details of charges, facilities availablethe state and district level for implementa-
private providers as it would provide
need to be prominently displayed at a con-tion. There is need for a review of existing
information and assist the government in
spicuous place at each establishment. state legislations with a view toengaging
bring with the private clinical establish-
For the implementation of the Act in a them on par with the cea 2010 with re-Regulation assumes significance with
ments.
time-bound manner, time lines have been gard to the coverage, uniform minimum
the rolling out of the rsby in 24 states in
specified in the legislation itself. The cate-standards to be followed and the need to the country and some of the states (Andhra
gorisation and classification of differentmaintain a registry of clinical establishments Pradesh, Tamil Nadu, Karnataka and Delhi)
Economic & Political weekly QBQ January 28, 2012 vol xlvii no 4 15
/';-=09 )(8* =-0/']
: COMMENTARY
launching their own, wherein they are tying notes Clinics Registration Act 1992; (8) Nagaland
i I have used the term clinical establishments to in- Healthcare Establishments Act 1997; (9) Orissa
up with private providers in the absence clinical Establishment (Control and Regulation)
clude hospitals, maternity homes nursing homes,
of adequate regulations and enforcementdispensaries, clinics (including single doctor and Act 1991; (10) Punjab State Nursing home regis-
dental clinics), laboratories, diagnostic, therapy tration Act, 1991; (11) Sikkim Clinical Establish-
machinery in place. Contracting with pri- ments (Licensing and Registration) Act, 1995;
centres, by all recognised systems of medicine by
vate providers would be a sure recipe forpublic and private facilities.
(12) Tamil Nadu Private Clinical Establishments
Regulation Act, 1997; and (13) West Bengal Clini-
fraud, increase in costs and failure. 2 Ministry of Health and Family Welfare (2010),
cal Establishment Act, 1950 (West Bengal Act L VI
"Annual Report to the People on Health", Govern-
Are we going to wait for another tragedyment of India, September 2010 can be accessed of 1950. Copies of some of the concerned legisla-
tions can be accessed from http://whoindia.org/
fromhttp://mohfw.nic.in/showfile.php?lid=i2i
and loss of many more innocent lives like en/Section2 _1653.htm or a CD from the author.
3 (1) Andhra Pradesh Private Medical Care Establish-
the AMRi fire for the authorities in the ments (Regulation and Registration) Act 2002, Rules
4 Nandraj, S (1994), "Beyond the Law and the Lord,
Quality of Private Healthcare", Economic & Political
2005 and 2007; (2) Bombay Nursing Home Regis-
states to wake up and take action? We can Weekly , Vol XXIX, No 27, 2 July.
tration Act 1949; (3) Delhi Nursing Homes Regis-
only hope that the pain of those who lost tration Act, 1953; (4) Jammu and Kashmir Nurs- 5 "Docs Up against Clinical Establishment Act",
ing Homes and Clinical Establishments (Registra- Times of India, 31 October 2010.
their lives will be heard by the political
tion and Licensing) Act, 1963; (5) Karnataka Pri- 6 "Medical Establishments Reluctant to Register Banga-
establishment and suitable necessary steps vate Medical Establishment Act 2007; (6) Madhya lore", Deccan Herald News Service, 30 October 2011.
Pradesh Upcharya Griha Tatha Rujopchar Sambandi 7 For copy of the Clinical Establishments (Registra-
are taken to prevent such a tragedy from Sthampamaue (Ragistrikaran Tatha Anugyapan) tion and Regulation) Act, 2010 can be accessed
happening again. Adhniyam, 1973; (7) Manipur Nursing Home and from http://mohfw.nic.in/showfile.php?lid= 874
Whose Land? Evictions landless went on even in the 1990s and

later; thousands of cases had been filed by
landowners in various courts as a result of
in West Bengal which large numbers of bona fide tillers
were prevented from getting the patta
documents establishing their right to the
MALINI BHATTACHARYA land cultivated by them, but even they
were protected from eviction where the
In the initial months of cases lingered for a long time.
major slogans on the basis of which In the first three months of the new
governance by the Trinamool
Land major the first to slogans
the first the non-Congress
non-Congress government tiller" on the was basis government one of of which the Trinamool Congress (TMc)-Congress coali-
Congress in West Bengal,
came to power in West Bengal in 1967. tion government which has come to power
attempts appear to have been
One of the first things it did was to issue in 2011, also with a large popular mandate,
made to begin subvertingan ordinance
the stopping all eviction, and the positive results of the land reform
ensuringreform
that tillers were not prevented measures of the Left Front seem to be on
positive results of the land
from taking possession of legally vested the way to being subverted completely.
programme of the Left Front.
land amounting to 4,00,000 acres rescued At the eye level, what is happening ap-
What is happening appears
from benamito
(in the namebe
of another pears to be but the inevitable outcome of
the inevitable outcome ofperson)political
possession, on which the former political rivalry, the hegemonic rule of
government hadof
rivalry, the hegemonic rule chosen to take
one no action. one party giving place to another, with
The ordinance, coupled with administra- the citadel of power changing its colour,
party giving place to another,
tive action and the vigilance of the Kisan making the "red" one "green". But a con-
with the citadel of powerSabha, enabled the sharecropper to claim textual reading of the situation may re-
his fair share to thethe
changing its colour, making fruits of the land he veal its more sinister implications that are
"red" one "green". But a had tilled. At the same time, by October going to have an impact on land relations
1967, it was possible to distribute almost in the state as a whole in the long run. It
contextual reading of the situation
2,50,000 acres of the vested land to poor may also have adverse effects on agricul-
may reveal its more sinister
and landless cultivators through entirely tural production which had improved dra-
implications that are going transparent
topublichave
action. All this is history. matically for close to three decades during
Left Front rule.
an impact on land relationsSubsequently,
invariousthe
reverses repeat-
edly threatened the land reform measures
state as a whole in the long run.
taken at that time, until the establishment Eviction in Trinamool Style
of the Left Front government
Visits to locations, made in July-August 2011, in 1977. The The incidents that took place in Haroa
expanded implementation of these meas-
were organised by a human rights forum, block in North 24 Parganas on 9 July 2011
Punarnaba.
ures after 1977 was undisputedly the firm offer a unique example of the changed cir-
Malini Bhattacharya С mihirmalini@gmail.com ground
) on which the continued popularity cumstances. Here large tracts of benami
is the former chairperson of West Bengal of the Left Front government among the land had been converted into fisheries
Commission for Women and at present the
rural poor rested. The process of retriev- ( bheris ) by the landowners and it was only
convenor of Punarnaba.
ing benami land and distributing it to the in 1996, after a long struggle by the Kisan
Economic & Political weekly ЕЭШ January 28, 2012 vol xlvii no 4 17
Sabha, that it was possible to retrieve this who had no patta documents, have been
about the positive effect of land reforms
land in the four moujas (a revenue area) of forcibly evicted. In Nebutola Abad mouja,
on production proved to be prophetic.
Tentulia, Munshir Gheri, Batagacchi and about 3,700 persons have been ousted All the peasants we met were indeed
Nebutola Abad, later to vest and distribute from the land they had been cultivating.owners of small plots, earnings from
it among the landless in the area, a large In Munshir Gheri, where adivasis domi-
which had to be supplemented by agri-
section of them being from the scheduled cultural or non-agricultural labour. In
nate, 120 out of 1,100 bighas of vested land
tribes (sts) and scheduled castes (ses). are occupied by outsiders. Bolpur, for instance, many of them found
There were in all about 2,909 pattadars supplementary livelihood in construction
(title deed holders), 2,450 sharecroppers Left Front Policy work. But it is quite true that even in a
and about 4,600 cultivators who had not yet Comparing this with other places such asperiod of acute agrarian crisis, they found
been granted pattas due to various pend- Bolpur block in Birbhum and Sonarpur- some security in owning a plot of land.
ing court cases. They were raising one crop Their attachment to the land was there-
block in South 24 Parganas which we had
every year on the small plots allotted to fore very strong. The women in Haroa
visited, it is evident that adivasi peasants
them and leasing it to local people for fish- are being targeted, especially since they
lamented that if they could not recover
eries for the rest of the year. The women, are more vulnerable. But others too were their land they would have to go back to
who cultivate the land, and also make a in danger of losing whatever land they hadbeing migrant labourers for their liveli-
living catching crabs and shrimps from been granted in the earlier dispensation. Inhood. Those who had been tilling the
the bheris told us that since they got Sonatikuri in Bhangar block, South 24land without patta documents owing to
possession of this land, the need to migrate Parganas, the majority of cultivators facingpending lawsuits were obviously more
to other parts of the district for work had eviction belonged to the Poundrakshatri-vulnerable than those who possessed
declined; their lives had improved. ya (sc); in one part of Kankutia village inthe documents.
In the first week of July 2011, these Bolpur, a large number of them were In Purbasthali, many people told us that
same cultivators were ousted from the Bagdis (sc). In Purbasthali block in Burd-when they had gone to plead with тмс
land just at the time when cultivation waswan, apart from some members of ses and leaders, they had been told that no one
due to start. On the pretext of looking forsts, Muslims constituted a major part of having a patta document would be evict-
the evicted peasants. These were the peo-ed. But in spite of such assurances, many
illegal arms, armed gangs recruited by the
TMC in the locality started infiltrating intople who had been the main beneficiariesof those having pattas had also been
the area with the active support of localof the land reforms of the Left Front. thrown out, as had been the case even
jotdars (a substantial owner-farmer who All of them had been landless before with some owners of rayati (land held
under tenancy) land, that is, land with
they were granted pattas. The plots of
employs labour), who had been waiting in
land distributed to them had been small,
the wings for such a situation. They brought secure legal right. In Harapur in Sonarpur
the police in their wake and when no hiddenhardly ever more than three or four
block, the panchayat pradhan told us that
while the Munda (st) community living
arms could be found, the alaghars (littlebighas, but often much less. Many of the
shacks on poles set up on the water of thebeneficiaries had to work as agricultural
there had not yet got pattas owing to ad-
fisheries to guard against thieves) were setlabourers on other people's land for part ministrative
of tardiness, the land tilled by
on fire, seeds and provisions were destroyedthe year or to supplement their income by them had been declared vested and the
and the bheris were appropriated by non-agricultural work even after having rights of the adivasi peasants had been
planting TMC flags on the ground. some land of their own. There were a fewrecorded. In spite of that, this land was
On 9 July, the peasants made an organ-who could afford to hire some workers, but
now under forcible occupation.
ised effort to re-enter their land and start also worked on the land themselves.
cultivation; the intruders retreated, but It had been the policy of the Left Front Terror in the Air
to give small plots of land to the largest In many instances, the police had aided
soon returned with a large contingent of
armed police, and according to eyewitnes-number of landless people; Harekrishna and abetted this forcible occupation as in
Konar, the major architect of land reforms Haroa; they had refused to take com-
ses, both the police and the armed gangs
in West Bengal, commenting on this, said plaints and had even lodged false cases
opened fire without warning, as a result of
that where there were large numbers of against the peasants. In Kankutia, Bolpur,
which three adivasi peasants, Kanai Sardar,
Bonko Sardar and Saharab Sardar received landless poor, even small plots of land that an atmosphere of terror hung over the vil-
allowed them to raise some crops, would
bullet injuries. Kanai Sardar was seriously lage because there were arrest warrants
injured. The rest had to run away to save ensure security for them. He had asserted against 40 persons from that single village
themselves in the face of this joint attackthat with adequate inputs from the govern- and as many as 19 persons, none of whom
as they had no arms save their lathis. At thement, parcelling out land in small plots except one was named in the fir, had been
would not have any negative impact on arrested on the charge of breaking law and
moment, in Tentulia mouja alone, the entire
vested area consisting of 1,265 bighasproduction either. Later, they might be order; in the mean time, the real trouble-
encouraged to move towards cooperation. makers who had been forcibly grabbing
(1 bigha= about 1/3 acre) is over-run by in-
truders and about 3,000 peasants includ-That particular development never took patta and rayati land and evicting share-
ing those who had been tilling the soil, but
shape in West Bengal, but Konaťs prediction croppers and had on that same day thrown
*8 January 28, 2012 vol XLVii no 4 I™ Economic & Political WEEKLY
bombs to prevent officials of the block land In Sonatikuri, we were told that conflict 1967-69 and that he had heard stories of
reforms office from taking measurement was particularly intense in one area Kisan Sabha leaders coming and spend-
of this land, were going scot-free. (dag no 815) consisting of about 36 bighas ing nights in the village and sharing their
In Haroa, the peasants told us that where land had been allotted both to sup- meagre fare of rice and boiled water-lily
nobody could have prevented them from porters of Left Front and тмс. In the new ( shapla ) stalks. But for quite some time
retrieving their land if the intruders had dispensation, poor neighbours were try- now, whether peeved with the adminis-
not been helped by the armed police. ing to dislodge other poor neighbours so tration's delay in giving them pattas or
However, in Sonatikuri in Bhangar, the that their land could be forcibly grabbed. whether because they felt that they need-
civil administration took a more neutralSuperficially one might think that these ed the protection of the emerging poli-
stand and declared that actual tillers, evictions are cases of quid pro quo, where tical power, some of the members of this
whether they had pattas or not, must bethose who had been powerful earlier are adivasi community have shifted their alli-
allowed to cultivate the land. Eviction was being paid back in their own coin. But be- ance. Yet, when their village was attacked
prevented as a result of this, and also due fore passing such a judgment, one should in the new regime, and they were forcibly
to the peasants being much better organ- note that those who are being described as evicted from this land by murderous
ised, although the threats continued. тмс supporters also got their land in the gangs from the neighbourhood, they had
Who were the intruders? Invariably, Left Front regime as belonging to the gone to the chief minister's house in
they advertised their political identity by ranks of the landless poor. In fact, the long search of redressai, but to no avail. This
carrying TMC flags which they planted on struggle waged by the Kisan Sabha as well points out the fragility of the position of
the fields of which they took possession. as the government for the rights of the the poor.
According to our information, they were latter had established a pro-Left hege- In the last 20 years, the incidence of
led by armed gangs who were obviously mony which had gone beyond its core landlessness has definitely grown apace
available on hire. In some cases, as in political support. in West Bengal giving rise to new ten-
Haroa, they had direct connections with sions in land relations; the fact that
local jotdars, but not invariably. In Bolpur, Fragile Positions among main workers, the percentage of
for instance, the leaders were local strong- In the situation we are talking of, support- cultivators has declined between 1991
men who had taken to land-grabbing ers of different parties are not pitted and 2001, while the percentage of agri-
under the new political patrons. But often against each other in irreversible black cultural labourers has risen, could be an
their following also consisted of people and white like the armies in Mahabharata ; indication of the extent of land alienation
from the neighbouring villages recruited categorisation as Left Front or тмс sup- caused by the declining profitability of
with promises of a share of the land porters is at times fragile, any shift in the agriculture and the fragmentation of land
wrested from the lawful owners. situation may fracture it. Poor people often as well as by rapid urbanisation. It is un-
In Purbasthali, we were told by Abdus compromise for sheer survival, partic- deniable that one major reason for the
Sukur of Kesabbati that the small plot of ularly when being named as supporters of Left Front's loss of popularity among the
rayati land from which he had been evic- one party may cost you your hard-earned rural poor was that somewhere on the
ted was handed over to another man who land; loyalty may waver when withdrawal way it lost the clear insight that a leader
already had more than one acre. In other of protection is sensed. Thus, in the of the peasant movement like Harekrishna
cases, landless labourers from the neigh- present circumstances, a new political Konar had once shown into the crisis of
bourhood were engaged to till the occupied concentration claims its followers from the small producer in the agrarian sector.
land, while the legitimate pattadars and the same ranks. The nature of the crisis has changed
sharecroppers were excluded. In Kankutia, In Harapur village in Sonarpur block, today, but the Left's perception has failed
Bolpur, we saw a large number of agricul- South 24 Parganas, we found a settlement to reflect that change.
tural labourers, men and women, who pos- of 60-70 families belonging to the Munda What some might interpret as skirmish-
sessed only homestead land and travelled (st) community who had been engaged in es at the ground level, bound to happen
to different parts of the district in search of agriculture for several generations in the with the change of regime, are in fact,
better wages. They seemed unconcerned panchayat area in Kheadah. While the closely tied up with the conscious agenda
with the problem of eviction and it was mud house even of the panchayat pradhan at the top with which the new government
understandable that they would not mind bore marks of poverty, we found all the in the state is moving. If the recent con-
working on the land from which others children, including girls, going to school. flicts are further aggravating landless-
had been evicted, provided that the wag- Embattled by the changing world around ness, and if there is little chance of any
es suited them. Nonetheless, much of the them and being gradually sucked into it, new landless occupants of such forcibly-
occupied land would remain fallow this the younger people were finding supple- acquired land ever having any legal rights
year since the time for cultivation was mentary occupation. They are travelling to it, then this falls in with the political
already over. The new occupants were to the nearby metropolis to work as day- designs of those in power at present. Such
preventing the rightful owners from access- labourers in construction work. The prad- occupants can only hold on to this land
ing the land in the hope that eventually it han told us that this community had been illegally, provided they pay allegiance to
would be theirs. actively involved in the land struggles of their new patrons. They may, in turn, be
Economic & Political weekly ЕИШЗ January 28, 2012 vol xlvii no 4 19
thrown out to suit the whims of the latter. maa-maati-maanush (mother-land-man) , middlemen and the land mafia in the pro-
This land then becomes easily available to so far as one may gather from newspaper cess. Both this declared policy and what is
all kinds of speculators and middlemen. reports, deliberately glosses over the crisis happening on the ground further under-
For all its pious declarations not to acquire of the small producer. Moreover, it leaves mine the position of the small producer in
the land even of a single unwilling peasant, the latter quite unprotected from the dep- the emerging scenario of land relations in
the "land policy" of the government of redations of private buyers, spawning West Bengal.
Pharmaceutical Pricing Policy:

Low Cost Standard Therapeutics (locost)
and Jan Swasthya Sahyog, the government
committed in the Supreme Court that a
A Critique new revised pharmaceutical policy would
be announced, based on the new list of es-
sential medicines. The Ministry of Health
SAKTHIVEL SELVARAJ, HABIB HASAN, MAULIK CHOKSHI, AMIT SENGUPTA, AMITAVA GUHA, and Family Welfare has recently notified
MIRA SHIVA, S SRINIVASAN, ANANT PHADKE, К M GOPAKUMAR, M R SANTHOSH, the National List of Essential Medicines
LEENA MENGHANEY, KAJAL BHARDWAJ
(nlem) 2011, which contains 348 essential
The recently announced draft
medicines. According to the nlem 2011, "[e]
National Pharmaceutical nounced a draft National Pharma- ssential medicines are those that satisfy
The ceutical nouncedceutical
Government Pricing Pricing
a draft of Policy National India (NEPP) recently
Policy (NEPP) Pharma- 2011.2011.
an- the priority healthcare needs of majority
Pricing Policy гон fails to
It may be recollected that in 2003, in re- of the population" (Ministry of Health and
ensure accessible and affordable sponse to a public interest litigation (pil), Family Welfare 2011: 4). Cost, safety and
medicines for all in India. This the Supreme Court in its interim order of efficacy are the three critical underlying
10 March had granted a stay on an earlier principles on which essential medicines
is due to the limited scope and
order of the Karnataka High Court suspend- lists are based. The draft nppp 2011 aims to
market-based approach it offers
ing the National Pharmaceutical Policy (npp) bring all medicines in the nlem 2011 under
to price control. Among other of 2002. The Supreme Court had stated, price regulation (Department of Pharma-
measures, policy should fix ceiling We suspend the operation of the order to the
ceuticals 2011).
extent it directs that the (Pharmaceutical) Pol-
prices based on lowest priced
icy dated 15 February 2002 shall not be imple- Key Features and Implications
alternatives instead of high- mented. However, we direct that the petition-
The draft nppp 2011 envisages control-
er shall consider and formulate appropriate
priced top sellers, aim to revive ling medicine prices based on three key
criteria for ensuring essential and life-saving
pharmaceutical public sector drugs not to fall out of price control and far- principles: (1) essentiality of medicines;
ther directed to review drugs which are essen- (2) market-based pricing; and (3) price
undertakings, and expand the
tial and life saving in nature till 2 May 2003. control only on formulations. The inclusion
current National List of Essential
One of the putative consequences of the of the first criterion, essentiality of medi-
Medicines. Most importantly, draft npp 2002 would have been to reduce cines, is one of the long-standing demands
pharmaceuticals must be brought the number of medicines under price control of civil society organisations like the
from 76 in 1994 to less than 35. Two years All India Drug Action Network and Jan
under the remit of the Ministry
after the Supreme Court directive, the Swasthya Abhiyan. This will mark a
of Health and Family Welfare Government of India had set up a task force welcome departure from earlier price con-
to allow better coordination for to explore options other than price control trol regimes that relied largely on market
public health interests. for achieving the objective of making avail- share/dominance/monopoly of pharma-
able life-saving drugs at reasonable prices ceutical companies. Moreover, this criteri-
chaired by the then principal advisor, on will also allow the government to meet
Planning Commission, Pronab Sen.1 After the Supreme Court's directive.
Sakthivel Selvaraj (shakti@phfi.og), Habib Hasan
and Maulik Chokshi are at the Public Health the task force submitted its report in 2005,
Foundation of India. Amit Sengupta and two empowered groups of ministers during Market-based Pricing: However, the
Amitava Guha are with the Jan Swasthya the tenures of the United Progressive Alli- draft nppp 2011 bats for a market-based
Abhiyan. Mira Shiva is with the All India Drug ance (upa) i and il, under Sharad Pawar as pricing (mbp) mechanism versus the pre-
Action Network. S Srinivasan and Anant
chairperson, were constituted to look into vious cost-based pricing (cbp). In most
Phadke are with the Medico Friends Circle.
К M Gopakumar is with the Third World
the pricing issue. Unfortunately, neither markets, when truly competitive conditions
Network. M R Santhosh is with the Centre for group made its recommendations public. exist, and assuming no market collusion
Trade and Development. Leena Menghaney However, in July 2011, under pressure occurs, leading market players can reduce
and Kajal Bhardwaj are lawyers in Public from the 2003 pil, filed by the All India prices substantially while earning normal
Health Law and Policy.
Drug Action Network, Medico Friends Circle, profits. However, the Indian pharmaceutical
20 JANUARY 28, 2012 VOL XLVII NO 4 1Ш1 Economic & Political WEEKLY
market behaves abnormally. Under any Table 1: Comparison Prices for Therapeutically Similar Medicines: Market Leader versus Cheapest Priced
Alternative Market Active TNMSC Prices Market Leader/ Price Ratio of Average Price Average Price
given therapeutic category, there are hun- Leader Medicines Pharmaceutical Most Expensive/ Market Leader of Three Highest ofthree Lowest
dreds of players with substantial variation Ingredients (API) Cheapest Price to Lowest Priced Brands Priced Brands
in prices. However, the prices of leading Anti-Bacterial Medicines

players very often tend to be the highest, Monocef Ceftrixone 12.39 63 (Aristo); 1.4 125.3 50.3
because of their aggressive promotional (1 g injection) 179 (Merind);
practices and oligopolistic positions. If there

Cifran Cifprofloxacin 9.82 98.6 (Ranbaxy); 3.3 88.6 34.6
were a competitive market with complete
(50mg; 10 tabs) 98.6 (Ranbaxy);
consumer sovereignty, this would not be
possible, since in other commodity markets, Anti-Diabetics
consumers prefer goods of good quality, Amaryl Glimepride 0.75 65(Aventis) 6.84 59.3 10.8
(1 mg; 10 tabs) 65 (Aventis)
available at competitive prices. Given the
information asymmetry that creates sup- GlycometGP Metformin + Not 36.5 (USV); 2.14 52.8 25.3
plier-induced demand, pharmaceutical (1 mg-500mg; Glimepride Available 66.2 (Aventis);
companies have an upper hand in pushing 10 tabs)
Anti-Ulcer
through high-priced medicines.
Omex Omeprazole 2.14 55 (Dr. Reddys); 3.33 51.6 20
Thus, by sleight of hand, the nppp 2011 (20 mg; 1 0 caps) 79.4 (Zydus);
wishes to legitimise the rampant practice of
Rantac Ranitidine 1.85 5.98 (JB Chemicals); 1.25 12.7 4.9
profiteering in the pharmaceutical market
(150mg; 10tabs) 18.9 (Cipla);
at the cost of public health and patient
access to treatment in India. It does so by Anti-Hype
entirely disregarding the fact that very Aten Atenolol 1.14 38.9 (Zydus); 3.14 48.8 13.2
(50mg; 57.5 (FDC);
often top-selling brands are the most ex-
14 tabs)
pensive, and by turning on its head the
Storvas Atrovastatin 2.09 93.3 (Ranbaxy); 4.89 103 22
entire logic of why medicine prices need to (10 mg; 110 (Cadilla);
be controlled. The draft nppp recommends 10 tabs)
Maternal and c
an мер regime, based on the weighted aver-
Methergin Methyl 1.14 19.1 (Novartis); 3.82 12.1 7.3
age price of the three top-selling brands in (0.2mg/ml; Ergotamine 19.1 (Novartis);
each segment, even though with over 100- injection)
plus pharmaceutical manufacturers slug- Zentel Albendazole 4.55 17 (Glaxo); 2.43 16.5 7.3
(400mg; 17 (Glaxo);
ging it out in each therapeutic segment,
10 units)
the price range offered by various players Source:The mar
with similar quality is substantial. quoted on its w

equivalent for a
Medicine quality should be judged not
by its packaging but by its efficacy and safety. observe t
calcul
The lowest priced brands are often thera- ices form
Corpo
peutically similar to higher-priced brands of in severa
drug
the same generic medicine. The draft nppp, average
maxio
by choosing to fix ceiling price based on expen
cines in t
top-selling brands is legitimising the trend several
ded pl
p
of high prices. This mbp approach will in- mal profi
ioo%,
duce players in the currently lower priced lowest
the am
co
segment to drive up prices closer to higher- generic
was m
R
priced competitors. This dangerous trend Now
would unfortunately have been orchestrated Price Re
this
by the government, which is supposed to be when a m
(Depa
protecting the right to health of its people. control ca
[T]he
Table 1 provides a snapshot view of pre- Price Con
Ingre
vailing market conditions and associated sentia
regulated
prices across various therapeutic catego- now t
bulk drug
applic
ries. It clearly reveals that prices of the lead- pharmace
vario
ing market player or the top three players manufact
not b
put together are the highest. In the sample health
ceiling on
provided here, the ratio of market leader This
manufact
prices to lowest priced medicines is in the of allowed to make inessential formula-
the for
range of 1.25 to 6.84. It is also interesting to sold in
tions from essential bulk drugs. These t
Economic & Political weekly Q3Q January 28, 2012 vol xlvii no 4 21
formulations will fall outside price control to Rs 3 per unit be exempted from price
draft Nppp, which argues (Department of
even if the basic single ingredient medi- Pharmaceuticals 2011: 12-13): control. If this is done, it will provide a
cine comes under the price control list be-
The Indian economy is today largely market-
leeway for increase in prices of dozens
cause it is included in the nlem 2011. Typi- of
driven and, particularly in the area of pric- essential medicines, including many
cally companies could misuse this provi- ing of manufactured products, prices are
painkillers, anti-inflammatory agents, anti-
sion by reducing production of single in- determined by market conditions and mar-
histaminics, anti-asthmatics, some anti-
ket forces. Administered prices exist in a few
gredient essential medicines and manu- diabetics, anti-hypertensive, etc, which
areas, such as pricing of petroleum products
facturing inessential or irrational combina- are currently available at prices far below
and procurement prices of foodgrains but
tions using essential apis instead. Rs 3 per unit. With today's information
these are closely connected with a regime of
We already have a situation where a subsidies paid by the government. The phar-technology, it is easy to estimate the ceil-
very large number of irrational formula- maceutical industry is a [Rs] 1 lakh crore
ing price of all 348 essential medicines.
industry of which about Rs 48,200 crore is
tions exist in the market, with over 92,000 Hence, none of them should be exempt
the domestic market.
brands. Given the therapeutic jungle that from price-control.
India has allowed itself into, the policy will Apparently, what is important for policy The other major limitation of price
only deepen that crisis and lead to short- is to safeguard the interests of the one tril-control as envisaged in the nppp is that it
ages of essential single ingredient medi- lion rupee industry, not those 40 million
would be limited to only those medicines
cines. The provision needs to be scrapped. people who are pushed below the poverty
on the nlem 2011. This brings its own set
It also contradicts the other provision that of issues. The nlem 2011 itself should be
line and an equal number who incur cata-
"formulations containing combination of strophic payments due to high medicine
subject to thorough review as it appears to
drugs under nlem 2011 with drugs not prices (Selvaraj and Karan 2009). The pol-
omit critical medicines that the govern-
listed in the nlem 2011" would also beicy patently disregards the acute financialment itself provides in its treatment
barriers to access to medicines.
under price control (Department of Phar- programmes. For instance, key medicines
maceuticals 2011: 16). provided by the government as part of its
Scope of Price Control: The draft nppp also acquired immune deficiency syndrome
The naïve faith in markets that pervades
stipulates that essential medicines whose (aids) treatment programme do not appear
current political economy and policymak-
weighted average price is less than or equal on the nlem 2011 nor do aids medicines
ing processes is clearly reflected in the
Indira Gandhi Institute of Development Research

Gen. A.K. Vaidya Marg, Goregaon (E), Mumbai - 400 0
Call for Papers
Fourteenth Annual Conference on Money and Finance
The Indira Gandhi Institute of Development Research (IGIDR) will be hosting
April 6 and 7, 2012.
Keynote Speaker: Professor Michael Bordo, Director of the Center for Monetary a
Fellow at the Hoover Institution at Stanford University.
Submissions: Papers are invited on all theoretical and empirical aspects of mo
following topics are particularly welcome:
1. Consumption and Savings Behaviour of Households
2. Implications of Financial Crisis on Emerging Market Trade Patterns
3. Microstructure of Money, Debt, Stock and Forex Markets
4. Corporate Finance and Corporate Governance
Guidelines for paper submission
1 . Complete, unpublished papers should be submitted online in Adobe PDF format after logging in at https://www.easychair.org/account/
signin.cgi?conf=mfc1 4. [Authors who don't have a login at easychair need to create one using the icon "I have no easy chair account"
on the above mentioned site].
2. In case of any difficulty in submitting papers at easychair, papers may also be sent to the following email address: mfç^gidnaçjn.
3. Papers should reach on or before February 20, 2012. All submissions will be reviewed and the authors of accepted papers will be
informed by March 6, 2012.
4. A few select papers presented at the Conference could be considered for possible publication in the Journal of Quantitative Economics
(www.jqe.co.in) or Journal of Macroeconomics and Finance in Emerging Market Economies (see www.informaworld.com/mfeme)
Authors of accepted papers may be requested to act as discussants for other papers.
Travel and Accommodation
Economy class airfare by the shortest distance will be reimbursed to the presenters of accepted papers. The Institute wi
accommodation and local hospitality. Details of earlier conferences are available at http ://www.igidr.ac.in/mQney.
MFC Organising Committee
5. Chandrasekhar, R. Krishnan, Jayati Sarkar, Naveen Srinivasan, and Rajendra R. Vaidya, Indira Gandhi Institute of D
Research, Mumbai
Conference Secretariat
Ms. Martha Lobo [mfc@igidr.ac.in] Tel: 28416585 Fax: 28416399/28402752
22 January 28, 2012 vol XLVii no 4 Ш35Э Economic & Political WEEKLY
likely to be required by the government Tamil Nadu or Kerala) and treat these as states. This will result in supply of free
programme in the near future. reference prices. The retail price can then medicines to all patients visiting govern-
There also appears to have been too much be calculated by adding a suitable margin ment health facilities and will create strong
reliance on the "cost" factor in drawing up to the reference price. Given the unique competitive forces for bringing down prices
the NLEM 2011, raising the question of how but distorted nature of the Indian phar- of medicines in the open market.
key patented medicines will be dealt with maceutical market, reference prices based The Department of Pharmaceuticals must
in terms of the nlem. With the draft nppp on the lowest, rather than the highest, be brought under the Ministry of Health
focusing on the nlem 2011 for price con- prices are the way forward. By fixing ref- and Family Welfare in order to serve the
trol, this gap has the potential of setting erence prices, the government can signal interests of public health, and also for
off a vicious cycle: patented medicines to industry that adequate margins, with ensuring coordination of the various func-
will remain out of the ambit of price con- above-normal profits, are allowed. Contrary tions under the drugs and medicines sector.
trol and being costly, will have little to the dire threats made by industry, such The department must be required to con-
chance of being included in the nlem. The pricing will keep them engaged in the tinuously collect and disseminate pharma-
draft nppp 2011 is therefore incomplete business of making medicines. Despite price ceutical market data, such as market share,
and only partially addresses the problem controls in the past, the industry has con- consumption patterns, prices, etc, a func-
of affordability and access to medicines. sistently registered supernormal profits. tion currently carried out by a private
The draft nppp 2011 ignores the fact Even if floor-plus prices were to be consid- data-collecting agency, like ims Health.
that it is not enough to bring only one ered, they would reap above-normal profits. The prohibitive costs of obtaining this data
medicine a given category under price The СВР approach would have been from a private agency make independent
control. For example, out of the category possible if the government had allowed evaluation by health and public interest
of angiotensin converting enzyme (ace) pharmaceutical public sector undertakings groups an impossible task. Such data
inhibitors, used for the treatment of high (psus) to function smoothly and effici- should be available in the public domain. It
blood pressure, it is not enough to single out ently. But over the years, the government is well within the powers of the government
only Eenalapril for price control. Though preferred letting these psus become sick, under the Essential Commodities Act to
there is hardly any difference between foregoing a golden opportunity for robust gather and disseminate such data.
Eenalapril and the other ace inhibitors benchmarking. The revival of pharmaceu-
notes
Lisinopril, Ramipril and Perindopril regard- tical psus is extremely vital, for these and
1 For a
ing efficacy, side effects, etc, there is a signi- related reasons. If the government were Option
ficant price difference between Enalapril to issue compulsory licences for patented the O
Drugs
and others. The generic version of Enalapril products, pharmaceutical psus would need the De
5 mg costs less than Rs 5 per strip of 10 Gover
to operationalise the licence. Moreover, in
Worki
tablets; its branded version costs around an environment where the top Indian pri- http:/
Rs 25. In contrast, the branded versions of vate pharmaceutical companies are being 2 TNM
http:/
Lisinopril, Ramipril and Perindopril for acquired by drug multinational corpora- 3 Last
equivalent dosages are priced at Rs 38, tions (mncs) or have licensing arrange- dia.co
5i0&g
Rs 67 and Rs 79, respectively per strip! If ments with them, psus need to play a signi-
all ace inhibitors are not under price con- ficant role in providing medicine security. REFERENCES
trol, pharmaceutical companies would As Indian private players migrate towards Department of
Pharmaceutica
mislead and entice doctors into prescrib- the business philosophy of mncs, with cals and Ferti
ing the costlier ace inhibitors. Hence, their eye on high profits in developed Delhi. Last acc
maceuticals.g0
such "me too" drugs should have the same country markets and away from low-profit
Ministry of He
price ceiling. medicines, psus are also essential for en- List of Essent
of India, New
suring the continued manufacture and
http://pharm
Policy Options supply of medicines that profit-driven pri- Selvaraj, Sakth
The draft nppp 2011 falls far short of the ening Health
vate companies may discontinue.
National Sam
goal of ensuring the accessibility and Both the central and state governments & Political We
affordability of medicines in India, both in currently spend too little on medicines.
terms of scope of price control, which in-
Style She
There is a need to scale up public spending
cludes only medicines on the nlem 2011, to at least 15% of the overall budget alloca- While prepari
contributors
and in terms of its market-based approach. tion to the healthcare sector. While doing
style sheet.
Often industry and government complain so, governments must put in place a trans-
The style sheet
that СВР is difficult to administer since parent mechanism to centralise procure- http://epw.in/
pharmaceutical companies are not man- ment and decentralise distribution in order
It will help im
dated to declare the true cost of making a to achieve value for money. Replicating error-free edit
medicine. A proxy way to get around this the time-tested tnmsc model in medicine in style sheet,
problem is to obtain tender prices (as in procurement is the way forward for other and preparation of references.
Economic & Political weekly E32S3 January 28, 2012 vol xlvii no 4 23
Their mothers-in-law, sisters-in-law, and
Anti-Dowry Law Viewed other in-laws are languishing in the prisons
of Uttarakhand. There are similar cases all
from the Prison Cell over the country. They were all arrested
by the police when the daughter-in-law of
the house was found dead.
CHANDRAKALA
A Mirror Image of Dowry

The "other
Looking around at the woes and sorrows of si
deaths all these incarcerated women - all alleged
story
What
Consider
Consider own of young
own lives of
womenyoung
lives theforfora numbera following women
number
of different who of who tookdifferent
took examples
is
theirtheir to have caused death for dowry - one
the r
reasons: cannot but ask: did they all create hell for
anti-dowry
Radhaamma's daughter-in-law
the doused her-
daughter-in-law of the house? Did they l
burden
self with kerosene before going up inof
interfere with pr
her personal affairs in such
flames.
athan
Kamaljeet hung herself from
rather way as to cause
a tree, leav-her the most intense t
ing behind a toddler. anguish? Or was it the daughter-in-law
regionsherself who did not like the environment
and
Durgadidi's daughter-in-law was eight
practice that she was
months pregnant when following a tiff of
wedded into? Was she not the d
to be
with her husband, rampan unhappypoison.
she consumed bride who fell into a morass of
radical socio-economic The wife of Arzoo's elder brother locked her-
despondency? There must certainly have
self in the bathroom to set herself on fire.
been something which brought her to a state
transformation rather than
Vimla Devi's taunts about herwhere she felt compelled to take her life?
daughter-in-
legalistic remedies to the problem law's frequent visits to her maternal
Or could it be that after the untimely
home
of atrocities on married women. led the young woman to swallowdeath of their daughter, the parents might
pesticide.
The fate of families embroiled in She died later in hospital. have wanted the police to charge her
nearest
Urmila's daughter-in-law, only in-lawsinto
a year in order to teach them a
the conflict over alleged dowry
marriage, ran away from lesson?
the Worse
marital
still, could the parents have
deaths is examined from within misusedher
home. Since she had not reached the legal
par-provisions of the laws
the four walls of the women's against
ents' home the police thought itdowry?
wise All
to does not seem to be
book her in-laws. well with such large numbers of women
prison cell, without losing sight of
Sheela was a college student and
whenmen languishing
she was in the jails of Uttara-
the prevailing patriarchal-feudal
khand,of
married off and faced the prospect where
work-not long ago dowry was
values and attitudes in the society. considered
ing in the family fields and tending toto cattle.
be an alien vice.
With no time for her books and Behind

fed up bars
ofhere,
the these supposedly evil
mothers-in-law
nagging she took the extreme step. They appear to be such simple-
tons indeed
found her hanging from the ceiling fan.that some of them simply can-
not figure
Shabana's daughter-in-law spent just out why their daughters-in-law
a few
had toreturning
days at the marital home. After take such a drastic step. The way
to her parents' home she stunned
they see it,every-
is it not natural for a woman to
body by choosing to die. face difficulties while adjusting to her
in-laws
Shanti Devi's daughter-in-law soon upset
was after marraige? Had they not
themselves
that her husband did not take her faced
alongthe same circumstances
as daughters-in-law
to the army cantonment where he served. for so long? Moreover,
One fine day, her body was don't
foundtheseon
young
thewomen have far more
amenities
railway track, along with that of her than the earlier generations ever
four-
year-old son. had? Why are they then taking their own
Madhulididi's daughter-in-law, married lives? Is it not the duty of daughters-in-law,
for six years, had failed to conceive. When as worthy members of their families to put
all her efforts to do so yielded no result, she up with hardships, come what may?
The author was released on bail in her second could take it no more and killed herself. In a few odd cases bringing in lesser
year as an undertrial from Haldwani Jail, dowry than what the in-laws wanted could
These girls adopted whatever means
Nainital district, Uttarakhand. The original,
Hindi version of this article, written behind they could think of in their desperation to have been a contributory factor in the
bars when the author was a political prisoner, rid themselves of their husbands and/or deaths. It is the other possibilities, how-
was earlier published in Samayantar. It was in-laws and a society that looks upon ever, that loom larger. It is possible that
translated for this journal, with only minor women not as human beings, but as slaves the young women might have failed to
changes of stylistic value.
to serve and produce offspring. strike amicable equations after marriage,
24 January 28, 2012 vol xlvii no 4 Q3S3 Economic & Political weekly
== COMMENTARY
for instance. Or they maybenches

haveoffailed
the law would
to feel justified in Why does the task of being accommo-
sever the attachment to looking other way. Not only hard cash, dating and adjusting fall only upon the
theirtheparental
but also land,
homes. Knowingly or otherwise, houses, and movable prop- daughter-in-law's shoulders? These are
marriage
erty would change
itself could have been a compulsion ratherhands in the bargain. some of the basic issues which would gen-
than a matter of free choice Isfor them.
this not a mirror image of the practice of erally have a direct bearing on attitudes
dowry?If
That brings us to an often the deal was struck amicably, and behaviour regarding dowry and the
overlooked
the case
aspect. Having succeeded in would soon
putting be closed and dis-
the conflicts and pressures related to it.
alleged wrongdoers behindmissed. Otherwise,
bars, how it could linger for
years.
many complainant parents Similar
bother deals were struck evenChanging Times
about
the real reasons for the death of their when applying for bail for the dowry The crux of the matter is that times are
daughters? Should at least part of the deaths accused. changing. Democratic aspirations, espe-
responsibility not be theirs? Does the Conviction would generally result only cially among the youth and also among
malaise not arise out of the very socialin cases where the terms of the bargain various sections of the oppressed, are ris-
set-up, which they are part of? could not be fulfilled or the accused had ing. It is the society in general, and the
Whether or not the allegations are true, nobody to negotiate on their behalf, or family in particular, which must mould
the blame is affixed onto whoever the were too poor to resort to any deal, or hire itself accordingly. The primary need is to
parents hold responsible for the tragedy.the services of a good lawyer. Amidst recognise the distinctive individuality of
Meanwhile, an entire family is locked upthese cold calculations, the dead women women, especially young women after
behind bars and the house closed. ended up with no identity. marriage. Only such a revolutionary sensi-
As many as eight members of a single tivity can ensure that they would not feel
family were lodged in the jail that I was in. The Socio-Legal Perspective helpless after marriage, or be forced to
They were at the mercy of a distant rela- Conversations with the women languish- suppress every hope, desire and aspira-
tive to run errands and anything that wasing in prison in the dowry-related cases tion, and as a consequence, be led into an
needed to be done on the outside. From led to one common observation. While emotionally alienated state of depression,
despondency, desperation - the state in
another family, the mother, father, theirthere were factors that drove the young
three sons, one of them with his wife,women to suicide, these were not neces-which suicidal tendencies breed. Viewing
the problem from such close quarters and
their daughter, her husband and their twosarily to do with the demand for dowry.
children were all in jail. They had nobody There could have been other aspects likeconstant proximity to dozens of accused
to arrange even their legal defence. There differences with the husband or some otherwomen in-laws brings home the realisa-
were many such cases. member of his family, inability to adjust totion that cases of daughters-in-law having
been actually done to death would only be
They were charged under Sections 498A a village household after being brought up
(subjecting a married woman to cruelty) in an urban milieu, and restrictions on
rare exceptions. And further, whatever
and 304B (dowry death) of the Indianvisiting her parents when she was alreadymay be the punishment prescribed for the
Penal Code (ipc) and Sections 3 and 4 ofcoping with other difficulties. offence of driving a married woman to sui-
the Dowry Prohibition Act. There were 14 As far as the in-laws are concerned,cide, the perfunctory awarding of sentenc-
women in this sub-jail though the women'smust they insist that the daughter-in-lawes would have no deterrent effect. It
cell capacity was meant to be for eight. fit a predetermined mould? Why is it diffi-would only be punishment for punish-
In the male barracks, in two of them, cult even for so-called modern families to ment's sake. Whether this is desirable in a
which had a 100 plus capacity, the majoritydigest the women's increasing assertive- democratic society should be debated.
of inmates were undertrials in such cases. ness and independence of like-dislikes,
Would they all have killed their wives, thought and action? Why is there so much Dowry
daughters-in-law, and sisters-in-law? Or pressure on the young bride to conceive The practice of dowry has spread to socie-
compelled her to die for not bringing soon after marriage? ties where it was earlier unknown and in
enough dowry?
In the prison there were cases of
parents of the deceased daughter seeking
a deal over her mysterious death, in order
that the stigma of dowry demands suppos- Extension of Pate
edly made by the groom's side may be con-
The last date of Advertisement No. : 09/2011 published in Tim
veniently washed away! The price of free-
of India (Ascent) on 1 4 Dec. 201 1 for receiving the applications for vari
dom from the stigma of dowry would
faculty positions (Computer Sc., Electronics, Engineering,
naturally vary according to the status and
Management, Biotechnology, Law, Justice & Governance, Physics,
standing of the concerned side. And since
Chemistry & Math.) has been extended upto 30 January 2012 (5.30 pm).
there was nothing overtly illegal about
The detailed advertisement, qualification & form are available on
making mutually agreed deals, however
weak they may be in terms of morality, the
University website : www.gbu.ac.in (Registrar)
Economic & Political weekly QSQ January 28, 2012 vol xlvii no 4 25
COMMENTARY eeeeee ^
different forms.
dowry may have permeated The
the society insuch a reform would be the inability of the s
layan,this, mid-Himalayan
the state of Uttarakhand. highly regimented administration to
societies,When examined in the such
proper perspec- as
transform their in
usual heavy and high- Ut
the vulgar form
tive, it is obvious that at the societal level, of
handed style of work and character. ca
yet rampant in
the issue of dowry death can hardly be Proper investigationsthese
into many of the
subtle forms
resolved by cases pending inare
the usual process of law. More- our courts would reveal fas
However,
over, the pertinent the trend
question is: why is nothat, is
in the first place, they should not have le
villages of
action taken against parents who givethebeen registered as dowryhills,
dow- death cases. That
sections, and
ry? Does the fact more
that not a single person visib
is, Section 304B of the ipc was generally
off in jail happen to carry the allegationin
sections of the
wrongly invoked. Many of the deceasedciti
cially in
having offered or the
given dowry not indi- plains.
women could have died, after marriage, W
variation, itwrong?
cate that there must be something due to factors other than that related
may also to b
has transcended
The police may excuse themselves citing the the
demand for dowry. The in-laws could have b
Whereas for
absence of any complaint the
to this effect. been responsible for the Hindu
death in other
accustomed to the rites associated with Their first response should not be to
ways, such as subjecting her to cruelty
kanyadaan (giving away of the bride) the
arrest the in-laws named in the dowry
(Section 498A). Moreover, the mere fact
relatively new element (in the hills) of
death complaints. The real cause and
that she suffered at the hands of her in-laws
dowry has been a convenient, consumer- does not necessarily mean that she was
manner of death of every married woman
must be reliably ascertained. Familialkilled by them. This would make one won-
ist adaptation, the Muslims, with their tra-
ditional form of meher (an amount paid by feuds can be sorted out and resolved with-der why the police do not often presume
the bridegroom) do not seem unwilling out
to having to resort to unwarranted force.
that these could be cases of abetting the
accommodate such negative features In ofsmaller states and in somewhat homo- commission of suicide (Section 306), rather
geneous societies, such as we find here, than actually killing the victim? Instead,
the majority culture. District-wise, region-
wise and section-wise variations would ideally speaking, it should not be difficult they mindlessly, or deliberately, tend to
have to be considered here, when estimat-for the local police to do so. Needless to club together all these cases into the single
ing the extent to which the alien vice of
say, the main limitation in bringing about category of dowry death. Consequently,
'I
Post-doctoral Vacancies
Education Programme
School of Social Sciences
National Institute of Advanced Studies, Bangalore
The National Institute of Advanced Studies (NIAS), a multidisciplinary research institute located in Bangalore, invite
applications for the post of Postdoctoral Research Associate. The successful candidate will be part of our research tea
working in the area of Gifted Education as part of the Education Programme School of Social Sciences. For informatio
about our ongoing research in this domain, please see: [http://www.nias.res.in/research-schools-socialsciences-epp.php
Educational Qualification and Experience: The Candidate should hold a PhD degree in one of the following disciplines
(Education, Psychology, Linguistics Cognitive Science). Experience in the areas of early childhood education, scien
education, language and concept acquisition will also be relevant towards the consideration of the candidate.
The candidate needs to have the ability to design and carry out independent research projects, a sound conceptual groundin
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Salary will commensurate with qualification and experience and comparable to other premier institutions in the country.
Application:
Applicants should submit their curriculum vitae electronically including the names and addresses of three referees, two
samples of published work and a brief statement of interest explaining why they are interested in joining this project at
NIAS. The applications should be addressed to:
Head, Administration
National Institute of Advanced Studies
Bangalore - 560 012,
E-mail: admin@nias.iisc.ernet.in
The deadline for applications is 15 February 2012. Short-listed candidates will be invited to NIAS for a presentation and
an interview.
January 28, 2012 vol XLVii no 4 ЦШ Economic & Political WEEKLY
along with 304B (of the ipc), they also usu- A number of the sisters-in-law (and society to regard women as a possession
ally add Sections 3 and 4 of the Dowry brothers-in-law) of the deceased victims and an appendage and never as an equal
Prohibition Act, 1961, which pertain to the who have been jailed find their entire partner in marriage.
actual demand and exchange of dowry. future at stake. Their children are forced If one woman dies at the hands of the
The question, therefore, arises as to to live like orphans outside. A number of patriarchal structure, another suffers at
why, even in less dowry-prone societies husbands are believed to be in a state of the hands of the gargantuan institutions
we cannot have a duly calibrated response shock, or depression, after losing their of law. Only a society based on progressive,
from the criminal justice system to cases wives. Added to these specifically personal democratic values is capable of ushering
of death of married, young women? The problems is the general suffering of being in the dawn of justice for all these women,
matter would need redressai not only at in a prison for a long period. The suffering suffering both inside and outside the jails.
the level of the police administration, but has both material and psychological aspects. Only such a society could lay the founda-
also that of judicial intervention, and also The roots of the problem do not lie in tions of prudent legislation and of a judi-
perhaps, that of government legislation. this or that individual. It is the social cious implementation of the laws.
(This is not to suggest that in cases where structure and its predominantly feudal- Would working towards such ends not
there is concrete evidence, the Dowry patriarchal character which engenders
be the most befitting homage to the count-
Prohibition Act and Section 304B of the less number of daughters and daughters-
the problem and its various dimensions.
ipc should not be invoked.) in-law who are no more in our midst?
It is intrinsic to the very nature of our
Andhra University at Waltair was one of

К Krishnamurty: A Tribute those few universities which had started
the postgraduate programme in statistics
fairly early. As one of the reputed universi-
VISHWANATH PANDIT ties at that time it adopted another land-
mark step by encouraging bright students
A tribute to К Krishnamurty, the to graduate with one postgraduate degree
econometrician who was at the nity of academics and related in economics and another in statistics.
Many professions, nity professions,

elder of academics
now in theirmembers
mid-to- now in their of and the mid-to- related frater- This produced a number of youngsters
Institute for Economic Growth in
late 70s belong in some ways to a distinct with an excellent training in economics
Delhi for close to four decades.
class. Hailing from small towns and vil- and good command over the rigorous
lages, most of them belonged to middle technique of handling of data.1 Having
class families with first or second genera- obtained an ma in economics in 1956 and
tion educated parents. Facilities for educa- Msc in statistics in 1958 кк was almost im-
tion and healthcare in their areas were mediately picked up to become a member
of the research and teaching staff of the
absent or at best scanty. Unavoidably, they
had to work hard and face several odds to Gokhale Institute of Politics and Economics
move towards new horizons that were (gipe), where he worked for two years.
The fact that he was able to undertake
emerging in the 1950s. Fortunately, edu-
cation was free and with some measure good quality research work within a year
of his joining is indeed remarkable. One
of self-discipline, routine living expenses
could be kept low so as to be affordable.
may recall that his analysis of seasonality
But, to be able to come up to the skill lev-
in wholesale price of rice and the size distri-
els of those from the better-off families bution of cultivated holdings were both well
and urban upbringing was a challenge. As received and published in ArthaVignan.
small children in the early 1940s they One may mention that those were the days
would have felt the freedom movement when computational hardware was primi-
around them but would not have fully
tive, and the appropriate software did not
exist. Data too had to be carefully and labo-
realised its significance. Still a love for the
country, a sense of compassion for fellow
riously dug out, modified and adjusted un-
human beings around them, a commit- like what we have today by way of effi-
cient hardware, sophisticated software,
ment to human values and an obligation
and easily accessible data banks.
to society got built into their perception
Vishwanath Pandit is honorary professor at of life. Kuruganti Krishnamurty, fondlyAfter a two-year stay at gipe, kk moved
the Sri Sathya Sai Institute of Higher Learning called KK by all his friends and colleagues,
to the University of Pennsylvania in i960
and was earlier at the Delhi School of
who passed away on 23 November 2011,
to pursue doctoral studies under the guid-
Economics.
was one such person. ance of Lawrence Klein (winner of the
Economic & Political weekly D3S3 January 28, 2012 vol xlvii no 4 27
COMMENTARY = ^
Nobel which I was associated over in

prize many years.
To mention some people he worked with -
economic
his Others who joined from time to timeD in-
background U Sastry
in on some aspects
quantitof corporate
KK hadclude К
noL Krishna and problem behaviour in the 1970s, with К Sadjus
D U Sastry in addi- Krishna-
academic environment
tion to the research swamy on savings during the 1980s and
staff of ieg notably, a
T Palanivel, P Dto
portunity Sharma and work G Mohanty.
with me on issues relating to India's exter-
closely
Econometric our nal sector. I must add before I close that
Much of this work was the result of Research Un
which active involvement with the World Project two
marked the issues on which heearly
had strong views st
knownlink which
Whartonwas started by Lawrence Klein need to be taken seriously
Forecasin dealing with
was in the early 1970s. Formally, India joined today's problems. The firstpursu
concurrently one was what
work with and contin- is usually referred
Klein
the Global link system in 1983 to as the crowding-in
which w
1964. The other country phenomenon associated
close
ues to be a part of it. Like academi with public in-
with Klein turned out to be crucial in his participants we were required to prepare vestment. One of my own recent studies
subsequent research career, кк moved biannual economic forecasts for India shows this to be quite important for the
back to India in 1963 accepting a faculty which were regularly presented to the
agricultural sector. The government must
position at the Institute of Economic Project link meetings in March at the significantly raise its investment in this
sector before it is too late. The second re-
Growth (ieg), Delhi, where he remained United Nations and in September in a host
lates to what is referred to as the "Peace
for nearly 36 years. He was chosen for the country. We had full freedom to design our
Dividend", as it argues why there must be
RBi chair professorship in 1979 which he model and to look at policy issues as per our
a reduction in military expenditure and
held till his retirement. In between, he had judgment. Our agenda usually went con-
why it must get transformed into better
a two-year stint (1966-68) with the World siderably beyond the forecasts. Typically,
access to education and healthcare for the
Bank and a three-year stint (1976-79) with we chose one of the major issues that ap-
poor. This, I believe, should be the most
the International Monetary Fund. At ieg he peared to be important or of the prevailing
vital part of the agenda for policymakers
also served as its director for two years and professional interest and worked out alter-
all over the world today.
supervised many MPhil and PhD students native scenarios and policy implications.
registered with the Delhi School of Eco- While the pure forecast exercises wereкк is survived by his wife Malathy
Krishnamurty, daughter К Sandhya and
nomics. On retirement from ieg in 1999 he published in newspapers, the substantive
son, К Srinivas.
moved to the Administrative Staff College pieces were mostly accepted for publica-
of India, Hyderabad as nlc Chair Professor tion by journals like Journal of Quantita-
in Public Policy for three years and remained tive Economics , Indian Economic Review, note
there later as an honorary professor. Economic and Political Weekly. 1 The idea was much in line with the initiatives
taken by P С Mahalanobis who founded the Indi-
кк had all along been actively involved кк had marvellous qualities needed for an Statistical Institute in the late 1930s to produce
in a number of academic pursuits of differ- research leadership and active researchyoungsters with the ability to analyse economic
policy issues using appropriate empirical methodo-
ent kinds. He was elected president of the collaboration. This is clearly indicated by logy. The same objective was pursued by another
Andhra Pradesh Economic Association in the fact that he worked with many of his academic stalwart of that time, V К R V Rao and
started a postgraduate programme in economic
1997-98 and of the Indian Econometric
colleagues on specific problems outside statistics at the Delhi School of Economics which
Society in 2000-01; he served on editorial
the economy-wide econometric modelling. he had founded in 1949.
boards for national and international
journals including the Journal of Applied Economic&PoliticalwEEKLY

Econometrics , Cambridge, ик; he was as-
sociated with many research and educa- EPW 5-Year CD-ROM 2004-08 on a Single Disk
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committees appointed by the Government
with articles laid out in individual sections in each issue.
of India. The most impressive aspect of his
With its easy-to-use features, the CD-ROM will be a convenient resource for social scientists, researchers
professional record has been his sense of
and executives in government and non-government organisations, social and political activists, students,
corporate
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Krishnamurty's major academic contri- Circulation Manager,
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econometric modelling, an endeavour with
28 January 28, 2012 vol XLVii no 4 ЕШЗ Economic & Political weekly
or are only moderate consumers. Violence
Biased and Prejudiced Collection against women, sexual abuse of children and
on Sri Lanka multiplying cases of incest (owing to absent

women working in west Asia) that have
been highlighted in recent times do not
merit mention anywhere in this collection.
GANANATH OBEYESEKERE Instead, the editor has chosen an essay
"Sarvodaya in a Buddhist Society" by
Ariyaratne, the Sarvodaya chief, who at-
distinguished historian of religion tempts to produce a Buddhist version of
This distinguishedcontains
containsa series
massive, a seriesthatambitious
of essays span historian of essays project of that religion span by a The Sri Lanka Reader: History, Culture, Politics socio-economic and political development.
a long time period from Sri Lanka's mythic edited by John Clifford Holt (Durham and London: Duke Ariyaratne, in his numerous publications,
University Press), 2011; pp 772 + index, illustrations, $34.95.
origins to the terrifying 25-year insurrec- seriously believes that, prior to western
tion of the Tamil Tigers - the Liberation contact, Sri Lankan villages expressed
Tigers of Tamil Eelam (ltte) - and its final the "colonial encounter", ie, the Portu- Buddhist ideals and lived harmonious lives
eradication by the Sri Lankan army. It is guese, Dutch and British periods (from where inequalities did not prevail. Such an
difficult to review a comprehensive collec- 1,505 onwards). In Part hi we move into idealised model of village life simply did not
tion of this magnitude without bringing to the politics and culture of the last king- and could not exist in Sri Lanka or else-
bear the reviewer's own prejudices. dom of Kandy and on to our own times where in the world. I doubt that Sarvodaya
My criticism of this work is that it plans where the excerpts deal with Buddhist, has made the slightest impact on the issues
to do too much and therefore achieves too Muslim, Burgher and Tamil identities. that I have highlighted, including matters
little. It is "all you wanted to know about Part IV is on another vast topic entitled relating to peace and human rights viola-
Sri Lanka" within the frame of a single vol- "Independence, Insurrections and Social tions following the end of the long war.
ume which to me is an impossible task. The Change" and then on to Part v, a "Political
work is sprawling and lacks an organising Epilogue" on the post-war situation after Precolonial Sri Lanka
principle and "history, culture, politics" is the defeat of the Tamil Tigers. I mentioned that the largest and best section
too broad to be manageable. The editor The book is generously dedicated to of this collection is on precolonial Sri Lanka
brings together disparate essays by social those Sri Lankans who have died as a re- with one serious exception. The editor
scientists, colonial historians, poets and sult of political violence and those whobelieves that the Vädda hunters or "people
novelists along with journalistic articles work for peace but it tells us very little onlike them" had lived here for perhaps
in newspapers, but they lack an overall the violence and anomie that the long war"millennia" without offering a scrap of
analytical or interpretative framework and its aftermath have produced. Violenceevidence to substantiate this vision of his-
that will benefit students and scholars alike. in recent times is not simply confined to thetory and without examining whether such
long war and its suppression, but also re-groups or so-called tribais, like many other
Glimpses of History lates to the brutal Janatha Vimukthi Pera- south Indian peoples, continued to migrate
The book's cover with its romantic setting muna insurrection of Sri Lankan youth ininto Sri Lanka from the neighbouring
of fisherfolk near a lagoon against the the late 1980s and the equally brutal sup-subcontinent. All of us after all have been
backdrop of a beautiful house or hotel seems pression by the then government of Presi-"aborigines" at some point in our un-
to me at odds with much of what the editor dent Premadasa in which it is estimated known pasts!
wants to say about the Island's recent trou- that about 60,000 people were killed. Even Holt applauds the account of the Väddas
bled history. One might have been able to if we reduce this official estimate to 20,000
by the famous Scottish prisoner Robert
make sense of this work if the editor had a dead, we are confronted with a searing
Knox in the mid-i7th century (who was free
long essay that tied together into a mean- commentary on violence by Sinhalas against
to travel in a large area demarcated by the
ingful whole the five "parts" that constitute Sinhalas, an issue that Holt does not discuss.
king) and who in his work The Historical
this volume; or for that matter if there was Alongside these brutalities Sri Lanka is
Relation of the Island of Ceylon spoke of
a long introduction to each part. Unfortu- proud to be the first or the near first in
two sorts of Väddas, wild and tame, based on
nately, the editor's own introductory notes other areas: it has maybe the highest ratethe perennial western preoccupation with
are too brief to serve this function. of suicides in the world, followed bynature and culture, the wild living like the
Part i dealing with Sri Lanka's pre-mod- equally horrendous homicide rates. And beasts
if of the jungle. Knox probably did not
ern period is, I think, the best because it is one can rely on official statistics the nation's
even see a single so-called wild man of the
comprehensive and the essays contained Sinhala and Tamil males are among the
woods, except for fleeting glimpses of
there are both interesting and give us val- largest consumers of alcohol in the world,them when he was fleeing the Kandyan
uable glimpses of the nation's past. This is assuming, of course, that most Muslimskingdom. Surely, an excerpt from the classic
work The Veddas (1911) by cg and Brenda
followed by Part 11 with shorter essays on and women in general abstain from alcohol
Economic & Political weekly Q2S3 January 28, 2012 vol xlvii no 4 29
/';-=09 )(8* =-0/']
Z Seligmann (especially their excellent ac- a vast
in the Kandyan country during 1817 andtopic embracing a long historical
count of Vädda religion) would have been 1818 cannot be related without shame. In trajectory and so can only end up by tell-
more apt, not to mention the recent im- 1819, hardly a member of the leading fam-ing us very little of independence" or of
portant collection of historical essays on ilies, the heads of the people, remained"insurrection" or "social change". But a
Väddas with a scholarly commentary by alive; those whom the sword and the gunteacher using this text might be able to fill in
Peter Schalk, Vädi into Vanniyalätto (2004). had spared, cholera and smallpox and the blanks. The last section on "Political
privations had slain by hundreds." Dialogue" is a brave attempt to deal with
Colonial Sri Lanka The Pax Britannica that followed the re-
the aftermath of the long war and the
I have serious qualifications on Holt's
bellion was initially erected on a terrifyingspectre of human rights violations, but
selections from the colonial periodbase
andin Sri
I Lanka as it was in other lands based entirely on newspaper articles or
will admit this might be due to my own
that the empire subjugated. The excerpt popular accounts.
from
anti-colonial prejudices. The excerpts the much less significant rebellion
from I find the concluding essay "Kingship in
the Portuguese period are entirely byis again by Governor Torrington,the Making" by Doug Saunders particu-
in 1848
Europeans. Sri Lankan scholars and
the the
very person responsible for its brutal larly offensive. On the basis of propagan-
many texts written by local historians
suppression. Holt does recognise that da from the president's office that many
Torrington's
during the period of the wars with the account is a kind of self-did not take seriously, the author implies
Portuguese do not enter the picture.vindication and also as with Davy and that President Rajapaksa himself has aspi-
Forbes, a justification and rationalisationrations to wear a crown. I doubt this. But I
The Dutch period articles fortunately
include two Sri Lankan historians, but the
of colonial power, but he does not mentionwill confess that, as I write this essay,
that
excerpts from the British period are Torrington was, in fact, recalled bymany do see him as someone who "saved"
most
unsatisfactory because the voice the
of government
Sri in Britain for the excessesthe nation from the brutal ltte. Surely
Lankans has been stilled. Even John committed
Davy, by him and his advisers. such a view is not without its truth. But
who in general emerges as a sympathetic
The essays on colonial rule are followedthat truth cannot excuse human rights vio-
colonial officer, has in this volume
by a an
brief series of excerpts on "Kandyanlations that currently afflict the nation as a
appalling, gratuitous and unverified dis-in the colonial era", that unfortu- whole; or for that matter obscure the
culture
course on the brutality of the last king
natelyof
tells us very little of this importantlooming threat of the cultural and political
Kandy, Sri Vikrama Raj asinha. It period.
is as ifThe Kandy period also saw consid-colonisation of the north by the Sinhala
the editor has accepted uncritically erable
Davy'sliterary activity but Holt's examplesBuddhist majority.
are the
account, including the king ordering poems on two local gods Pitiye and
Dadimunda.
wife of his enemy Ähälepola to pound her He seems to be unaware that Conclusions
these
infant child on a mortar, a myth that poems or "ballads" are really textsI would have liked to see these issues dis-
the
sung in collective rituals or in shrines forcussed in much greater detail and with
Sri Lanka historian P E Pieris has effectively
local deities. Such local deities are found
deconstructed, pointing out its colonial moral sensitivity, rather than rely on
origins in "The Tragedy of Ehelepola's
everywhere in Sri Lanka from very an-newspaper articles familiar to most of us.
Family" (pp 175-85 in Tri Sinhala: The Last
cient times and cannot simply be seen as a As far as Saunders' paper is concerned, I
Phase). There is no doubt that this"result
was aof Tamil migrations" or as "resist- would add that self-glorification and ego-
time when a great deal of brutality pre-
ance to Portuguese rule" during the Kandy inflation of political leaders via posters is
vailed on both sides of the warring
period (p 308). endemic here as in the neighbouring sub-
divide, but one must remember that the continent, especially south India, and also
last king built the beautiful "palace Emergence
of the of Identities in much of the non-western world. But such
tooth relic" and the adjacent lake inFor me it is a relief to move to Part in on
Kandy continuing propaganda will surely begin
and that he was popular with many sections
"Emerging Identities". Here Holt is familiar to wear thin in the public which will lose
of the Sinhala population. with his material, and moreover, he deals interest in them just as it is also beginning
with "identities" that have been little
The key event of the resistance against to lose interest in the vulgar "hoardings"
the British was the 1817-18 rebellion that
known previously, namely, that of Muslimsand crass advertisements that deface
and by
was put down with terrifying violence Burghers, the mixed descendants of
our beautiful country-side. Nevertheless,
Europeans.
the British. While the account by the colonial The excerpts on "Buddhist the omnipresent images of the president
historian Jonathan Forbes might, identities"
as Holt are extremely useful as also often
to enough accompanied (metaphorically
a lesser
rightly recognises, provide an insight into degree the discussions on "Tamilspeaking) by all the king's men do not mean
identities".
the British representation of these events, it I suppose someone teachingthat
a the public at large is naïve enough to
unfortunately has the effect of sanitising
course on Sri Lanka might be able to com-
believe, as in the Kipling short story, that
plement
the devastation and brutality unleashed by the excerpts on identity withRajapaksa
a is "a man who would be king".
the colonial regime. As late as 1896, the
discussion on what is meant by term
British judge Archibald Lawrie could"identity",
say in so sadly misused nowadays.
Gananath Obeyesekere ( sekere@Princeton.EDu )
Part IV on "Independence, Insurrection
his Gazetteer of the Central Province of Ceylon is with Princeton University, Princeton,
andrule
(Vol 1, p 203) : "The story of the English Social Change" is also, unfortunately,
New Jersey, United States.
Economic & Political weekly ООШ January 28, 2012 vol xlvii no 4 31
It may have sharpened the argument if
A Woman's Right to the City? there was the benefit of a comparative
study of the use of public spaces in
Mumbai and in a city of equivalent size
GAUTAM PATEL overseas, say London or New York. It is,
for instance, not unusual to see women
Why Loiter? Women & Risk on Mumbai Streets alone in city parks in New York, not neces-
favourite hunting grounds of urban by Shilpa Phadke, Sameera Khan and Shilpa Ranade sarily engaged in any focused or directed
(New Delhi: Penguin), 201 1; pp 200, Rs 299.
Public planners planners
favouriteandopencivichunting
activists.andThey
spaces civic grounds in activists. cities of are urban They the activity like exercise. This is unheard of
tell us that the city is "chronically starved" in India, and should a woman attempt
of open spaces and produce statistics that, like "transformative", "eye-opening" havesome such thing, she is bound to be asked
without confirmed provenance, become been used in reviews. This, too, may be
if something is "wrong". The concept of
received wisdom, for instance that Mum- misleading. It is unlikely that the book
voluntary solitude and aloneness is cul-
bai has only 0.03 acre of open space per turally alien. In pressing for greater inclu-
will, on its own, be transformative, though
thousand population. Few seem to pay it is revelatory. The transformation the
siveness - the right to loiter in groups and
any attention to how public urban spaces singly - the study acknowledges this
authors demand as a matter of right will
are used, or by whom and in what context. need a far more aggressive movement,
cultural and social restriction, which has
The legal battles that are fought about a long history. To change this, and to
one that is physical and tangible, a move-
these urban public spaces are directed at force a new outlook is a very difficult
ment on the streets and in the spaces of
preventing their usurpation for private the city. business. The recent "slutwalk" movements
use, or for restoring them into the public When Phadke, Khan and Ranade demand of Canada, America and Europe and other
domain. The assumption usually is that a "reclamation" of the city's open spaces parts of the world were doomed to failure
if public spaces - and we must see this for women, they are suggesting nothing in India for the same reason: few seem to
term in its widest context, to include short of an urban gender revolution, an be troubled enough by these social and
roads and streets - are restored to "public assertion of women's rights in the context moral straitjackets to want to do anything
use", every citizen, across every social of the city. This is a breakaway notion about them.
and cultural affiliation, will automati- for a society that has for centuries and The third section of the book, about
cally benefit. even in the many decades after Inde- "having fun", actually undermines the
Why Loiter? shows that, at least in pendence been hidebound by male- sections that precede it. Here, the discus-
Mumbai, this is very largely a myth. dominated social and cultural mores. sion is about women going out and feeling
Shilpa Phadke, a professor at the Centre These dictate what women should wear safe doing so, but the predominant theme
for Media Studies, Tata Institute of Social in public, what implications follow if they
in a place like Bandra, for instance, is that
Sciences, Mumbai, Sameera Khan, a jour- choose to deviate from these proscrip-
this is done in groups and not in solitude.
nalist and Shilpa Ranade, a practising ar- tions, where they may be seen and with
Women going out - or even going out of
chitect, find a series of hierarchical stria- whom, and why it is "inappropriate" for
town - together is not unknown and there
tions in the use of the city's open spaces by seems to be very little convincing evi-
women to be out alone doing nothing, or
women. That these gradations are invisi- in the words of the authors, loitering. The
dence that this is frowned upon.
ble only makes them that much more dan- notion that women, by definition, have Similarly, going to a resto-bar or a pub
gerous for the city's survival and growth. is also not a matter of reclamation because
other "preoccupations" (homes and fam-
There are distinctions based on geography these are not open spaces and access to
ilies being seen as entirely their province)
(Muslim-dominated areas versus Bandra and therefore simply do not have the
these is demographically restricted. As
versus Malabar Hill), economic and social time to loiter is just as absurd. indicators of city life, or as measures of the
classes and more. Overall, the authors find This is more than a book about women need for spatial justice, these instances do
that urban society and culture demand and it is certainly no feminist screed. It isnot make for compelling arguments. The
that women should not use open spaces on about urban planning, the urban built argument self-destructs very soon (p 119):
their own. Should they venture to do so, form and what this means to the women
We can hang out in the coffee-shops and
their morality, ethics, background are who live in cities. It is about justice: gender night clubs but sitting 'on the rocks' at Ban-
called into question, making them easy justice and something more, spatial jus- dra Bandstand [a public space] or the Recla-
victims. An undercurrent running through tice. The writing in Chapter 12 on plan- mation promenade [another] with our boy-
friends is still frowned upon.
the study suggests that this state of affairs ning and its implications in the "Designed
may now have come to be accepted by City" is especially powerful (p 103): Falling into cliche and stereotypes is
urban Indian women themselves. Contrary to common sense notions of urban very easy when one deals with a place like
Since its publication, the book has 'beautification', clean lines and peopleless Bandra. Here we see a proliferation of bou-
received universal acclaim for the bold- streets do not equal comfort or safety for
tiques and boutique restaurants, lounges
women who often seem to prefer a degree of
ness of the study on which it is based and chaos, ambiguity and multiplicity to univa- and bars. The built form and perhaps the
the directness of its tone. Words of praise lent notions of cleanliness and order. comparatively lower rentals than, say, Breach
= BOOK REVIEW
city; but the projection of a certain intel- resent having to dress in a certain way.
Candy, lend themselves to this adaptation;
lectual
and it helps, too, to have a cachet of view is not the demonstration of
"cool" "Risk-taking" is, in fact, unfortunate ter-
- no one, for instance, thinks of Versova
existingor
oppression. minology for it implies that showing skin
Lokhandwalla as hip or happening or cool.
Street militancy by women in politicallyis dangerous. That seems to be beside the
charged
It is hard to extrapolate from localised situations is not new, and it haspoint. Few men in India "dress as they
idio-
syncrasies such as this to an entire city
nothing to do with dress or wealth. Ourlike" anywhere they like. Even in the fierc-
newspapers report enough instances of
community that is now itself so cosmopol- est summer, Mumbai's men do not go out
women of an area banding together tobare-chested, even to a park. And nothing
itan that it defies any form of typing.
protect
The chirpy tone of the book in this, else could explain that most bizarre of
thea shared concern or interest, and
third section, also makes parts ofthis
it seem
seems to be far less common among
sights: men in "safari suits" and polished
the economically wealthy, perhaps becauseblack leather shoes on a Mumbai beach.
frivolous. In the context of the preceding
two sections, it is disconcerting to of
bethe refuge afforded by private spaces. The The book's arguments for inclusiveness
made
relation between public/private spacesin the use of open spaces are strongest, in
to feel as if one is reading two different
works joined together by a common and individuals is inexact and often af-
binding. fact, when it does not limit itself to women
Chapter 16, "Do Rich Girls Have More Fun?"
fected by external factors - price rises for
but advocates shared use by all. This is what
essentials,
(the entire section seems to be a send-up of local thuggery, movies. The
open space in a city should be: uniquely
or inspired by the Cyndi Lauper song, Girls
question of why in these situations women
democratic areas where anyone regardless
seem to be able to take the more aggres-
Just Wanna Have Fun) has this (pp 124-25): of constituency, origin and destination, birth
If wealth equals fun, then the rich girls of or gender, is welcome. Instead, as a city,
sive lead (even in confronting police) is met
by saying
Mumbai should be having the last laugh. But that perhaps groups of women we are moving to increasing inequities of
that's only one way of looking at it. are more secure from physical attack than
Chances every kind, social, economic, spatial and
are that some of them are also being shad-
groups gender-based. These inequities together
of men. Every such demonstration
owed quite closely by their mummies and
is a form of reclamation of public open
work to reduce the city to islands of isola-
papas, particularly if they are single. So the
space in its most aggressive form. tion and exclusion connected only by
cell phones in their oversized Louis Vuitton
bags ring incessantly, the chauffeursSimilarly,
keep the argument for risk-taking
crumbling infrastructure. A city that steers
- dress
a watchful eye and friends are closely as you like and you must have the
scru- itself in this direction is a city without a
tinised. For designer hipsters andright
halters
to be left alone - is theoretically cor-
future. Why Loiter? addresses itself to one
aside, the comings and going of rich girls
rect, - the book does not indicate
but constituency, but its arguments are also
and here we mean the seriously wealthy busi-
whether the women who are the subjects true for many others.
ness families - are policed quite stringendy.
of the study themselves unequivocally
In support, "one woman" and "awant to dress in any other way, or are Gautam Patel ( gautampatel@gmail.com ) is a
college
student" are cited, but no study. What doing so, and whether they practising lawyer.
comfortable
does this even mean? Does it extend to the
entire demographic of the financially well-
off in Mumbai, throughout its territory? Is
it a south Mumbai phenomenon or one navayana
more pronounced in north Mumbai? What Writings on Class and Caste 1vww.navayana.01g I
age group are these "girls"?
K.BAIAÛOPAL
The argument for inclusiveness is at
Paperback 1 488 pages | б * 9.25 in | Rs 550
first compelling, especially when one reads
it in the context of the deprivation of Balagopal's writings, from the early 1 980s till he died in 2009, offer us a rare insight into
women from contact across social classes the making of mode ra India. Civil rights work provided В alagopal the ause and context
to engage with history, the public sphere and political change. He wrote through nearly
and from any meaningful participation in,
three tumultuous decades: on encounter deaths; struggles of agricultural labourers; the
and shared ownership and use of public shifting dynamic of dass and caste in the 1 980s and thereafter in Andhm Pmdesh; the
spaces. But a question that hovers through- vendity and tyranny of the Indian state; on the importance of re-figuring the caste order
out is how many women actually and as one that denied the right of civil existence to vast numbers of its constituents; the
centmlity one ought to grant patriarchy in considerations of social injustice; the destruc-
actively resent these restrictions. To observe
that these restrictions exist, and to find
■Earshiftngto hec ntmlityastivethre Balgopal'sPaperbackK.BAI ÛOPALvendityWritngsenga eonemakinglogictumult ousthatdynamicandofto newith1deni d48 ofwritngs,dev lopment yran youghtmodehistory,pagestheondecades:oftheratodas fromof|rightIndia.grantбtheClas the*that ndthe9.25onpublicGrtive
oundIndianofCivlpatrialogic
chyencounter arlycaste mergofedcivlinspher development
ightsand|sta e;Rsexistencein1980s5 0thein workdeaths;ona dtil ththat
eCaste1considerations980stemerged
hetopolitcalheprovide Indiavstimportancestruginlesdie andofnthe
umbersther afterinchIndia
ange.theВ20 9,algopalof 19of0sofsocial gricthe
ult ralof ferHer -fi1990s
guringin,itsdishon uringwroteA,ndhmthdishonouring
einjustice;1vw .navyan.01gus t*?»consti uents;navyan a usera ethroughlaitsboure s;thePmdeshcitizens'
;insght heandcasteitsdestruc-thecontextnearly
'As a human rights worker active since to life liberty and livelihood. This volume comprises essays largely drawn from EPW,
people who explain the contours those
1981, and slightly older than Balagopal, I t0 which he was a re3ârcontriblltor-
restrictions take, is very different from
remember him as a magical figure. The writ- Balagopal was too self-effacing to put together his writings into a volume. But It is
saying that the restrictions are unwanted
ings in this volume help interpret the often Агои^ his M his 1 W to on, giving us a mdrnap for future struggles.
impositions. That may be the feeling of a
chaotic developments in Andhta Pradesh, Distributed bylPD/Htemoti^NewDeUiLPhOI 1-26992040 ipiattemativesOgmaiLco m
few, and it is certainly a compelling view,
and provide a model tool for understanding Hyderabad Book Tnist Ph 040-23521899 hydembadbooktnist&gmaiLcom
as is the argument that the deliberate and
other regional realities of India.' ^ onlint.swb.co.in and Flipluvtcom
studied exclusion of single women from -BINAYAKSEN Navayana Publishing 155, 2nd floor, ShahpurJat,New Delhi 110099 PhOll-26494795
free use of public spaces diminishes the
Economic & Political weekly В January 28, 2012 vol xlvii no 4 33
Nanotechnology:
is evolving a proper governance structure
that includes risk governance. Creating a
'Risk Governance' in India well-functioning governance structure is

a good indication of a country's capability
in making the technology a success. This
article specifically looks at the risk-related
A P JAYANTHI, KOEN BEUMER, MADHULIKA BHATI, SUJIT BHATTACHARYA aspects of nanotechnology, focusing on
the Indian context. What are the risks that
This article analyses the potential nanotechnology may pose? What does the
Richard Feynman had envisioned the Indian situation look like? How can the
consequences of the application
In Richardopportunities
opportunitiesof exploring
1959, thetheFeynman
forces and Nobel of exploring laureate had envisioned the for forces Physics, and the risks of nanotechnology be adequately
of nanotechnology in the Indian
possibilities at the atomic level hinting at dealt with? And, equally important, how
context and studies the what was to become his maxim - "there is can we avoid the, at times, unproductive
institutional arrangements for plenty of room at the bottom". Now, over controversies that have surrounded some
"risk governance" of 50 years later, this vision is being carried of the mega-technologies in the past in
out in the field of "nanotechnology". Nano- order to cast a more fruitful and productive
nanotechnology in other
technology is usually defined as the under- path for nanotechnology's future?
countries. It is argued that standing and control of matter at the nano- After briefly sketching some of the
nanotechnology governance in scale (one nanometre is 10 9 metre). This is potential negative consequences of nano-
India requires a separate agency extremely small: just imagine that one hair technology, we propose a framework of
- similar to the one established has a diameter of approximately 80,000 risk governance as a way of dealing with
nanometres. At this scale, some materials nanotechnology's development. Our argu-
for biotechnology - to develop gain radically new characteristics and ment not only draws attention to the need
human resources, infrastructure,
functions that can be used for innovative for governing risks, but also to the possi-
and research and to monitor applications in myriads of sectors. bility of opening up the larger question
The term "nano" derives from the Greek about what exactly those risks are and
issues and concerns in the field.
word vavoç, meaning dwarf. Yet contrary what we want from nanotechnology.
to the literal sense the term nano may
convey, the field of nanotechnology has come Nanotechnology: Risk Issues
to possess flavours of being a form of "mega- Advocates of technology usually paint a
technology". Governments and companies picture depicting technologies as an essen-
around the world are allocating sizeable tial means to achieve economic and societal
budgets for nanotechnology research and development. In this view new techno-
development in order to harness the bene- logies will inevitably bring benefits of such
fits of what can be found at "the bottom". significance that all other considerations
Starting with the Nano Science and Techno- have to give way for the technology's deve-
logy Initiative (nsti) in 2001, the Govern- lopment. Some caution should be exer-
We thank the National Science and Technology ment of India has invested approximately cised before uncritically buying into this
Management Information System, a division $400 million so far in creating capacity for idea. Although there is no question that
of the Department of Science and Technology, nanotechnology research in the country. science and technology have the potential
for supporting this study. We also thank
Although there are some major shortcom- to contribute to societal development, there
Marijke Hermans for her useful comments on
an earlier draft. ings when we compare India's performance is a tendency to exclude the potential ad-
with other economies - that more or less verse effects of technologies. In the context
A P Jayanthi (ap.jayanthi@gmail.com) is with
started building capacity at the same time of nanotechnology, "we need to realise that
the National Institute of Science, Technology,
and Development Studies and researches at (see for example Bhattacharya et al 2011) - new and revolutionary technologies always
the Centre for Studies in Science Policy, the investments did lead to some tangiblecome as a package - with the promise of
School of Social Sciences, Jawaharlal Nehru outcomes. Today, exactly 10 years after the new opportunities and the threat of new
University. KoenBeumer (k.beumer@
nsti was initiated, nanotechnology products risks" (AzoNano 2008). Indeed, there is a
maastrichtuniversity.nl ) is a researcher in
are entering the market in increasingly growing chorus of concerns amongst sci-
Science and Technology Studies at Maastricht
University, the Netherlands. Madhulika Bhati large numbers. It is therefore time to entists regarding the issue of toxicity of
is a scientist at NISTADS. Sujit Bhattacharya reflect upon the direction nanotechnology nanoparticles. The small size of the parti-
С sujit_academic@yahoo.com ) is senior scientist, developments are taking. cles, the same feature that provides nano-
NISTADS, CSIR and guest faculty of CSSP,
One of the important exercises in capa- technology with the unique and innovative
SSS-JNU.
city building in any emerging technology characteristics and functionalities, possibly
34 JANUARY 28, 2012 VOL XLVII NO 4 П Economic & Political WEEKLY
also makes them into a risk for human societal developments (e g, Winner 1980;
a technology is not limited to just manage-
ment and administration of the resources,
Bijker 1985). Consequently, nanotechnology
health and the environment. Nanoparticles,
for instance, have a much larger surface institutions and the system associated
should also be subject to assessments other
with a technology. It also includes the inte-
than those exclusively focusing on the re-
area per unit mass than the same material
search output and technical aspects. This
in bulk form, and there can also be differ- gration of technological developments with
ences in their reactivity, bio-persistence, societal needs, in given social, economic,
also implies that broader societal concerns
hydrophobic and electrophilic nature, allshould be taken into consideration when political, environmental and ethical contexts
assessing the development of a technology. and conditions. Usually this is achieved by
of which can possibly give rise to undesir-
able effects (Kjolberg and Wickson 2010; Some concerns have, for instance, been what Mihail Roco calls the "government
Trudy 2007; Patra et al 2009). raised about the potentially adverse effects approach" that is creating a regulatory
of nanotechnology developments on mate- environment to control the role and action
Perhaps unsurprisingly, then, a number
of studies have shown that nanomaterials rial demands and consequently on the of various individuals and institutions by
can have adverse effects on living organisms. export of raw materials. For example, when, setting up legislations and by ensuring
Studies have revealed that particular nano- researchers in the United States succeed in, their enforcement (2008). Although such
particles can cause damage to lungs and say, using the new characteristics of mate- measures are of great importance, it is
other body tissues (Oberdörster Gunter rials at the nanoscale to imitate the prop- widely recognised that such a top-down
2000; Poland 2003; Oberdörster Eva 2004; erties of platinum, then the demand for this mode of administration is ill-fitted to gov-
Oberdörster et al 2007). More specifically,rare and thus expensive mineral will be ern developing and converging technolo-
the capability of nanoparticles to cross bi- reduced, directly affecting the export rates gies for two important reasons. First of all,
ological barriers and their increased bio- of its leading exporter, South Africa. Others technological systems are complex and
logical activity in comparison to their bulkhave drawn attention to the potentially constantly present new perplexities that
counterparts have generated debate on the adverse effects of nanotechnology develop- are difficult to address exclusively through
potential hazards of being exposed to nano- ments on employment rates and an increas- legislative approaches. Secondly, techno-
technology. In an era in which we are wit- ing number of commentators (although still logical systems consist of a large set of
nessing a move from the use and develop-a small minority) are asking whether nano- actors and agencies that cannot be covered
ment of "passive nanostructures" to "active technology will actually deliver the promises entirely by regulatory tools. In fact, the
nanostructures", the question of its hazardsthat are driving the investments made in very nature and application of technologies
assumes importance (Kuzma 2007; Subra- it, particularly in developing countries. often keep on changing and knowledge
manian et al 2010). In many cases these It should be stressed that paying atten- regarding its positive and negative effects
toxic properties are different from thosetion to such risks from a societal perspec- is usually not available with a single entity
of materials outside the nanoscale and tive does not necessarily stop scientific (Corley et al 2009).
subjecting the production and use of these
progress. Addressing technological risks can In response to this, the discussion on
actually contribute to a desirable scientific technology governance in Europe, for
substances to existing legislation is there-
development and social impact. As we example, has presently shifted from a top-
fore often a difficult task (Gopal et al 2008).
have seen in several European and north down authoritative government approach
Although these are issues that pertain
to technological developments, it is American
of countries, the failure to address to a bottom up "governance approach"
issues of risk can give rise to public concerns (Commission of European Communities
crucial importance to remember that these
do not exclusively belong to the techno-
that may have a backlash on the techno- 2001). The concept is not to dilute the role of
logical domain. Technology and society are
logical developments. Even more, it may be state. Rather the key difference in the gov-
no separate, watertight compartments, as to do so in order for scientific progress ernance approach is the involvement of a
crucial
they were often perceived in the past. to be safeguarded. Scholars in the field ofvariety of other stakeholders in the deve-
Such techno-centrism often treats any risk studies have shown many cases in lopment of political, economic, and judi-
which unduly late or absent attention to cial parameters. In order to achieve this,
logic to assess technology (e g, social, ethical,
political) other than scientific as hindrancesuch societal consequences forced scien- the European Union has spelt out four
or what they call a "brake on progress" tists and engineers to reconsider the di- main principles of governance - openness,
(Rip and Egan 2010). Consequently, dis- rection that technologies were taking, participation, accountability, and effective-
cussions on its societal consequences usuallyeventually slowing down technologies in ness and coherence.
take a backseat with respect to the attentioncomparison with the scenario in which Risk governance is the application of
societal effects had been taken into consid-
given to scientific and economic concerns the governance approach to issues of risks
eration from the start and throughout its and basically refers to the different ways
as they are perceived by scientists and engi-
development. Technologies are simultane- in which various actors are dealing with
neers working on the new technologies.
ously technical and social.
However, contrary to this, extensive research them. The concept emerged as an alternative
in the fields of science and technology to classical notions of risk assessment and
Risk Governance
studies (sts) and risk studies shows that management and it differs in two distinct
Because of the social nature and societal
technologies do not exist in a vacuum. ways. Firstly, risk governance recognises
that decisions about issues of risks are not
implications of its use, the task of governing
Technologies are intimately intertwined with
the exclusive domain of the government tautology (after all, risks necessarily uncertain risk turns out to be real risk,
(van Asselt et al 2011). In the case of nano- involve uncertainty about the effects), thethen the technology may have caused sig-
technology this is already obvious from additive "uncertain" nevertheless offers nificant damage in the time it took to figure
the fact that scientists and engineers some added value in an influential study out whether the risk was real.
will necessarily be involved. Yet nano- by van Asselt et al (2008: 281): Following the risk governance frame-
technology will influence (and is influenced The notion uncertain risks refers to possible,
work, the last decade has witnessed a rise
by) other actors as well. For instance, civil new, imaginable hazards, with which society in scholarly work that thinks about ways
society organisations such as The Energy has no or limited experience. It is uncertain of dealing with technological risks in the
and Resources Institute (teri) are con- whether the particular activity, product or context of uncertainty and complex actor-
phenomenon constitutes a risk to humans and/
structively thinking about the responsible relations. When applying this framework
or the environment, because causalities are
development of nanotechnology (teri complex, the possible multiple effects are het-
to the case of nanotechnology, several
2010), international organisations such as erogeneous and extend to the long-term and/ issues gain new importance. For instance,
Organisation for Economic Cooperation or the global scale and risk perceptions clash. the uncertainty requires the governance
and Development (oecd) and International Nanotechnology offers an instructive of nanotechnology risks to be anticipatory
Organisation for Standardisation (iso) are example. The risks associated with nano- and flexible. It needs to be anticipatory be-
active, and naturally companies also have technology are to a large degree charac- cause the knowledge needed for dealing
some interest at stake when thinking terised by uncertainty. For instance, there with those risks is inconclusive, whereas
about dealing with nanotechnology risks. is inadequate information about how nano- not dealing with the potentially harmful
The risk governance framework draws at- particles interact with human body tissues, properties of nanoparticles can lead to
tention to this multitude of actors and in- and knowledge is lacking about both the even larger damage. It needs to be flexible
stitutions. As a descriptive framework, it acute toxicity and the long-term effects ofbecause new knowledge can shed new
stipulates that the ways risks are dealt with nanoparticles (Gopal 2008: 25-32). Simi-light on the issues of risk. Furthermore, the
cannot be understood without taking this larly, the environmental impacts of nano- risk governance framework draws atten-
complex field of actors into account. particles are also largely unknown. Although tion to issues such as the trust between
This is further strengthened by the some studies have demonstrated that the different actors (Löfstedt 1993) and
observation that matter at the nanoscale specific nanoparticles can potentiallythe relevance of other forms of knowledge
pose
is often described as the "building blocksrisks for human health and environment,
than scientific knowledge (for instance in
of life". As such, innovations in nano-both to what extent they inflict harmrecognising
and "early warnings") (Wynne
1982; Harremoës et al 1992).
technology are likely to be incorporatedhow they do so thus far remain unknown.
across disciplinary and industrial bound-As was written in Nature in 2009, Before we look at the Indian context
aries. For instance carbon-based nano-
...developers and regulators are a longand
wayask to what extent the issues raised by
particles, better known as carbon nano- from understanding how to predict and the uncertain risks of nanotechnology can
tubes, are expected to find applications managein be dealt with, the next section will show
the potential risks associated with
existing nanomaterials, let alone those
fields as diverse as solar cells, textiles, con- in of the ways that other countries cur-
some
the pipeline (Maynard and Rejeski 2009: 174).
struction and sports equipment. A wide rently deal with nanotechnology risks
Contemporary observers have noted
range of sectors and consumers are thus (Table 1, p 37). This will illustrate some of
likely to be affected. When focusingthe
onuncertainties about both the risks and the possible ways in which risk govern-
the way that risks are dealt with, thesebenefits
ac- that inevitably accompany new ance can be made operational.
technologies often making standard forms
tors are likely to enter the arena and affect
The Indian Context
the way decisions are taken - whether of
it decision-making
is inadequate (Funtowicz
and Ravetz 1993). Such uncertainties, for Keeping the above risk governance frame-
through testing for risks, drafting legisla-
instance, make it hard to perform quanti- works in mind, let us have a look at the
tion, or by simply not consuming nano-
fiable risk assessments in order to establish a Indian context. Since the 1980s science and
technology products because of the poten-
clear threshold value for commercialising technology policies in India started concen-
tial risks. Although this may complicate
decision-making in the face of risk, nanotechnologies.
not When risks are never- trating on research in high-priority fields.
theless quantified into classic risk assess- As a result, in the Sixth Five-Year Plan
recognising the multitude of actors may
complicate matters even further. In that
ments, then this may not only be mislead- (1980-85), the programme for Intensification
case a lack of overview and coordination ing, but may also actually contribute to of Research in High Priority Areas (irhpa)
what has been called "organised irrespon- was launched to ensure intensification of
will cause lack of clarity about responsi-
sibility" (Beck 1992). Yet the indications scientific research in selected areas of
bilities and may lead to a duplication of
that at least some nanoparticles may pose potential for scientific and technological
efforts, an issue that has previously been
discussed (Chowdhury 2006). a threat to human health and the environ- development of the country. This was pro-
The second distinct feature of the risk ment are genuine, as shown above. Conse- posed to be achieved through the creation of
governance framework is that it is parti-quently, even if quantitative risk assess- core scientific expertise, technological facili-
cularly useful in the case of uncertaintiesments cannot be made, action is justified. ties, nationally coordinated programmes
about them. Although this may seem aAfter all, if no action is taken but the in multidisciplinary areas (dst 2003).
36 January 28, 2012 vol XLVii no 4 Ш35Э Economic & Political WEEKLY
Table 1: Initiatives by Different Countries
Country Key Coordinating Body Supporting Bodies Key Legislations/Code of Practices
US-multiagency Nanoscale Science Engineering National level Nanotechnology Research and
governance and Technology Subcommittee - (National Science Foundation) - Research Regulation. Developmen
at various levels. - (Presidential council of advisors on science and technology)
Command and - NT initiative review.
control mode Agency level Food Drug Cosmetics Act
- Food and drug administration, Toxic Substance Control Act (2005)
- National institute for health,
- National Institute for occupational safety and health,
Nanotechnology environmental and health implication working group
Programme level Occupational Safety and Health Act.
- (Committee of visitors) - evaluation through stakeholder inputs
UK -State-coordinated Nanotechnology Issue - Nanotechnology research coordinating group Guide to safe handling and
governance with Dialogue Group (Departments for environment, food and rural affairs, disposal of free engineered
involvement health food standards, nanomaterials
of academia, - Learned Societies, The Royal Academy of Engineering, Guide to specifying nanomaterials
learned communities The Institute of Materials, Minerals and Mining, Good Practice Guide -for labelling
and stakeholders UK Programme of Public Engagement on Nanotechnologies of nanoparticles and products
Japan No specific coordinating National Institute of Advance Industrial Sciences Chemical screening and
body. Council for science National Institute of Material Sciences regulation law
and technology policy
China National Steering - Ministry of science and technology

Committee for - Ministry of education
Nanoscience and - Chinese Academy of Sciences
Currently introduction of genetically modified Bt

technologies (dst 1983). Yet in practice,
nanotechn
fast these concerns have been mostly neglected.brinjal. The case attracted
developing attention from
techn
and many other countries, publicly-fund-various stakeholders
itAs in enjoys a including the public.
major
ing. In
ed research in 2001, the
India is mostly driven byThe approval for Bt brinjal by the Genetic Go
educational and commercial interest. This Engineering
represented by Approval Council
its was chal- li
as can be well understood as it is widelylenged by civil society asof
Department well as by eminent Sci
(dst),recognised
the Departme
that under certain conditions scientists. P M Bhargava, India's renowned
Technology
research can contribute to achieving eco-molecular (dit),
biologist, pointed out that ap- th
nomic growth through
Medical the developmentproval was made without testing it properly
Research (icm
of of improved technologies. Yet whereas
Atomic Energy
within the existing guidelines. Consequendy, (
technologically advanced countries
Research and likestrong public resentment
Develo led to the place-
(drdo) started
the United States and the United Kingdomment of a moratorium to by the Governmentbui
try to accompany such technology develop-of India
technology. Indianon the commercial release of n
tives ment with all sorts of governance
are government arrange-Bt brinjal in February 2010.
ments in order to ensure the
gradually responsible
also other p
try, development of new technologies, in IndiaEnvironmental,
research Health and
institu
have attention to issues of risk is minimal. RatherSafety
started Issues
engaging
primethan explicitly
agency taking broader societalDuring the NTSi phase (2001-06) discus-
engage
of concerns into consideration when promot-sions on risk wereand
nanoscience totally missing. One of te
key ing the development of a technology, itthe reasons
features of was that the the
sole priority of n
was seems that any kind
the of measure to dealthe programmes was to create a strong
promotion o
2007).with potential
However, adverse effects of new tech-institutional base, infrastructure
unti support
been almost no research on the environ- nologies is considered as inimical to marketand skilled manpower. In this period, gov-
ment, health and safety aspect of nano-investment in technology sectors. By andernment machinery was trying to situate
technology nor has there been much at-large, the Indian state has shown a lack ofnanotechnology as a field of research
anticipatory governance during the coursewithin the network of research institutions
tention to other potential adverse effects
of nanotechnology development. of technology development. and develop expertise and applications.
This is not necessarily a surprise. Out of Consequently, it has been observed thatWith the launch of the Nano Science and
Technology Mission (nstm) in 2007, the
attention to risk issues has surfaced only
the three science technology policy state-
ments released in India, only the 1983within the government after there has governmental initiative saw some struc-
technology policy statement makes a been a considerable public debate overtural changes. First of all, the inward focus
small reference to the need to analyse theany technology. This, for instance, occurredto develop nanotechnology research and
environment impact of the application ofin the recent public debate about theapplication within public institutions was
Economic & Political weekly Ш January 28, 2012 vol xlvii no 4 37
replaced by a broader focus of public-private nanotechnological risks can be addressed.
suffice. The uncertainty associated with the
partnership. This resulted in the inclusion In terms of regulations India has a high
present knowledge in this domain makes
of members from industry in research number of legislations that address pollu-
it difficult to craft a regulatory framework
bodies that were previously dominated by tion control, environmental protection,
that covers all the facets of nanotechnology.
scientists from public research institutes. Presently, the available knowledge on the
hazardous waste disposal, biomedical waste
Second, the nstm unlike the nsti focused potential impacts on nanotechnology on
disposal, safe manufacturing of drugs, and
on arrangements to take the output of lab- social, economic, environmental and human
occupational health and safety. However,
oratory research from basic to applied re- none of these acts and legislation havehealth is insufficient. And has been recently
search and applications. This is precisely explicitly identified nanoparticles as argued
a by Grieger, Baun and Owen (2010),
where concerns regarding the impacts of filling those knowledge gaps will be very
hazard. A recent analysis of such issues in
nanotechnology arise. a report released by the teri suggests
expensive and will take a long time. They
Meanwhile the European Union and the that the level of flexibility within the
note that "a recent analysis estimates that
us have already introduced regulatory testing existing nanoparticles in the us
present legal regime is insufficient to deal
systems in order to assess hazard and ex- alone will cost between $249 million and
with the ill- effects that nanotechnology
posure risk. The eu has developed regula- may have on health and environment
$1.18 billion and take 34-53 years for com-
tory frameworks for nanomaterials in (teri 2010). pletion" (2010: 385). Now of course India
industrial and chemical products in fields Table 2: Risk Research on Nanotechnology in India
can benefit from research done abroad,
such as cosmetics, food and the environ- Toxicology research: but all in all, given the status of nanotech-
ment through key legislative instruments - Indian Institute ofToxicology Research (IITR) nology development in India and the
- Indian Institute of Chemical Technology (IICT)
(Bowman and Calster 2010). These legis- amount of knowledge available on its na-
- Central Drug Research Institute (CDRI)
lations and directives regulate products ture, intensity and impacts, a technology
- Central Food Technology Research Institute
such as plant protection products, biocides, (CFTRI) specific legislation is hard to imagine (teri
cosmetics, aerosol dispensers, medical - National Environmental Engineering 2010). Consequently, other ways for deal-
Research Institute (NEERI)
products, cars, food, chemicals and worker ing with nanotechnology risks should be
- National Chemical Laboratory (NCL)
protection. Under environmental legisla- - National Institute of Oceanography (N10)
found that do not exclusively rely on risk
tion, aspects such as integrated pollution Focus on effects of nanomaterials on human assessments. Following the risk governance
prevention and control, major accidents, health and environment: framework, the various actors involved
- Technology Information, Forecasting
water waste, air quality, soil and environ- should jointly look for more proactive
and Assessment Council (TIFAC)
mental liability are addressed. In addition, - National Institute of Science, Technology and
ways of dealing with potentially adverse
the eu is currently in the process of adapt- Development Studies (NISTADS) effects of nanotechnology. In India we
ing the regulatory framework Registration, - Indian Council of Agricultural Research (ICAR) find various entities involved in nanotech-
Developing regulatory approval guidelines
Evaluation, Authorisation and Restriction nology governance. Figure 1 (p 39) gives a
for nanotechnology-based drugs and standards
of Chemicals (reach) (unesco 2006) in for toxicological tests in nano-based drug stylised representation of different stake-
order to make it applicable to nanotech- delivery systems: holders involved in nanotechnology govern-
- National Institute of Pharmaceutical Education ance in India.
nologies. In the us, agencies like Environ-
mental Protection Agency (epa), Food and and Research (NIPER)
Drug Administration (fda), and the Occu- Lack of Coordination

Regarding the risk assessment of n
pational Safety and Health Administra- technology applications,
Nanotechnology development the
in India is unes
tion have promoted various research specifiedsome suffering
of the from aimportant
lack of coordination as dir
projects to understand the potential risk thatcountrieswe find multitude of bodies involved
should pay in attent
of nano-engineered materials to ensure nanotechnology development.
begin or strengthen nanotechnologThe dst is
safe manufacturing and commercialisa- governance. The first
the coordinating body forarea concern
the major gov-
tion of nanotechnology products. logical and ernment programmes
chemical effectson science and
of tech-nanopa
Regulating nanotechnology is challeng- on human bodies and
nology including natural
nanotechnology. However, ecosy
ing due to the intrinsic characteristics of The area second
its mandateconcerns the di
does not include risk govern-
nanotechnology. Its multi-sectoral appli- ance. But whereas
(leakage, spillage, a major category of and c
circulation
cation makes it difficult to address the tration) of nanoparticles (unesco
risk-related areas come under the respon-
various aspects of this technology by a singleRecently, a sibility of Ministry
number of Environment and
of studies on the t
regulatory agency and under an exclusiveaspect of nanotechnologies
Forest (moef), none of the acts and legisla- have
regulatory framework (Corley et al 2009).been initiated tion
byof MOEFthe dst
has explicitly and
identified nano- its r
Yet whereas countries such as us, ик, departments particles as a hazard. under
recently Furthermore, poten-
nstm to
Canada, Japan and China are working hardthe toxicity, tially
environmental
adverse effects of nanotechnology and
to create governance arrangements (in-implication of nanomaterials
that fall outside the scope of environmen- (dst
(Table 2).
cluding regulatory mechanism) to address tal, health and safety aspects, such as the
risks related to nanotechnology, India has Yet, although this is a positive develop- question as to how nanotechnology develop-
ment, it is doubtful whether this will
only a loose framework of legislation where ments relate to the export of raw materials
38 January 28, 2012 vol XLVii no 4 Е325Э Economic & Political weekly
Figure 1: Regulatory Frameworkfor Nanotechnologies in India voluntary efforts are a supplement to, not
a substitute for, government oversight.
Public Sector Ministry of Science DST Nano Mission Council
and Technology (Regulatory Body)
Conclusions
DSIR CSIR CSIR LABS (Toxicology
The multifaceted dimensions and implica-
CSIR-
tions of nanotechnology do not fit into the
compartments delineated by the present
DBT Universities
regulatory framework in India. An effec-
Ministry tive risk governance
of Enviro system is urgently
and Forest Board
required both because of the inadequate
(Various acts formulated to
deal with different hazards State Pollution Control Board
picture of present nanotechnology regu-
of environment)
latory scene and because of the perplexi-
ties presented by technological
Ministry of advance- C
and Fertilisers and Petrochemicals ments. While leading nanotechnology
Department of National Institute of
nations are debating on the best strategy
Pharmaceuticals Pharmaceutical
Education and Research to ward off risk, Indian government has
(EHS, Drug Regulation, so far adopted a "learn by doing" ap-
Toxicity Testing of Drugs)
proach in nanotechnology development.
Ministry of Labour General Factory Advice
However, it is high time India's science
and Employment Service and Labour Institutes
(The Factory Act (1948)) [Advisor Occupational Health and technology research bodies showed
Safety (OHS)] some seriousness towards nanotechnology
National Safety Council
(OHS Education)
risk governance.
Ministry of Health Family Central Drug Standard Control

We argue that nanotechnology govern-
and Welfare Organisation (EHS) ance in India requires a separate agency
(Drugs and Cosmetics similar to one undertaken for biotechno-
Act 1940, amended in 2008) ICMR (EHS Issues) Central Drug Research
Institute (Regulatory
logy, to develop human resource, infrastruc-
toxicology) ture, active research network, common
Food Safety Standard sharing of facilities, and monitor the is-
sues and concerns of nanotechnology.
Ministry Consu of
(The
Such an agency should be aided with
Consumer Pr
Act 1986) Bureau of Indian Standards scientific insights on risk based on quality
(standard development in research on toxicity, exposure, hazards of
nanotechnology)
various nano components as well as by
Private Sector
"early warnings" and supplied by other
Non-governmental FICCI
Organisations actors such as industry, civil society, and
the public. The various centres of excel-
or whether nanotechnology will be bene- such an agency can develop nanotechno- lence in India can have important role in
ficial for employment rates, have hardly logy plans within each major regulatory taking initiative in this direction. Coordi-
been addressed at all. Debates on the risk agency and improve intergovernmental nation is urgently needed to serve as a
that this technology may pose are yet to be-coordination. The focus of the Interagency baseline even for synergising the working
gin in India. Only in 2010, the dst appointed Nanotechnology Regulatory agency should of multiple institutes. Only by creating
a task force that has been asked to advice be broader than science-based govern- such a well-functioning governance struc-
the Nano Mission Council to develop a reg-ment regulations and can facilitate the ture can India make nanotechnology into
ulatory body for nanotechnology in India. development of more proactive ways of a success.
Currently the nanotechnology programmedealing with risks.

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4
ICOMBS 2012
CALL FOR PAPERS
IBS Hyderabad, a constituent of IFHE (a deemed to be University) is organizing the fourth Inter
Conference on Marketing and Business Strategy. This year the theme has been chosen as "Inno
in Technology - Implications for Marketing and Business Strategy" keeping in mind the
possibilities and opportunities that Technology is presenting to organizations for value creatio
delivery. The conference will be held at IBS Hyderabad campus on 10 & 11 May, 2012.
We invite faculty members of business schools, officials representing Government and Semi Go
bodies, corporate executives and Research Institutions to present Research papers, Case st
Thought papers at the conference. Authors will first send a two page (1000-1500 words) abstra
the topic they wish to present to icombs2012@gmail.com so as to reach us by February 1
On receiving a response from the conference secretariat the authors can then send the fi
on or before April 15, 2012.
For sub themes, paper submission and registration details please visit http://www.ibshyderab
icombs2012/index.asp?mode=home or call the following members....
Prof. Andai Ammisetti - (Area: Strategy) - Phone No. 9000771188

Prof. Subhadip Roy (Area - Marketing) - Phone No. 9989864694
Conference Venue: IBS Hyderabad, Dontanapalli, Shankarapalli Road, Hyderabad - 501 2
40 January 28, 2012 vol XLVii no 4 ШШ Economic & Political WEEKLY
Agrarian Transition and Emerging Challenges
in Asian Agriculture: A Critical Assessment
P К VISWANATHAN, GOPAL В THAPA, JAYANT К ROUTRAY, MOKBUL M AHMAD
Green revolution
technologies and a vigorous
smallholder sector have smallholder sector has seenseen
Asian agriculture under- Asian agricultur
Green smallholder going
going revolution a major sectorin thetransformation
a major transformation last five decades.(gr) has technologies seen Asian in the backed agriculture last by five a vigorous decades. under-
giant strides in the last five decades. But agri
Smallholders in Asia are a huge chunk, accounting for nearly
transition has not been uniform across Asia a
87% of the farms with an operational size below 2 hectares in the
future smallholder of agriculture
world (out of a total 525 million farms) (Oksana 2005). The larg- faces sever
est concentration of
arising from a range of socio-economic, dem smallholdings in Asia is in China, India,
Indonesia, Bangladesh and Vietnam (Chand et al 2011). Thanks
structural and institutional factors that coul
to the gr and the smallholder sector, most countries have
affect its sustainability. This paper critically
achieved tremendous growth in agriculture and self-sufficiency
divergent experiences of
in the production of basic staples agricultural
and other food crops. The transfo
five Asian significance of the-
countries Asian smallholder sector is that it produces
Bangladesh, India, Sout
80% of the food consumed in the developing world and feeds
Thailand and Vietnam - from a comparativ
one-third of the global population (fao 2011).
and points to the need
However, agricultural transition infor
Asia brings out a major con- evolving new per
and policies towards
tradiction. While a handfulsustainable
of countries, particularly Japan and and non-d
transformation of South Korea, have achieved rapid rural transformation and be-
smallholder agriculture in
come advanced industrial economies, a majority of the countries,
especially in south and south-east Asia, still remain predominantly
agrarian though there has been a perceptible decline in the share
of agriculture in their national gross domestic product (gdp)
(World Bank 2009). This contradiction apart, a large body of the
empirical literature currently shares the concern that the future of
smallholder agriculture in Asia faces several challenges arising
from a range of socio-economic, demographic, structural and in-
stitutional factors that could adversely affect its sustainability. The
challenges include (a) the shrinking size of farms; (b) distress-
induced rural-urban migration that has led to an increasing
number of women and old people in agriculture; (c) persistent
technological and institutional constraints; (d) climate change
and its adverse impacts; and (e) the emergence of genetically
modified (gm) crops and problems to do with their adoption. All
these have serious implications for food security and sustainable
livelihoods in the smallholder sector of most Asian countries.
The dynamics of rural transformation and the challenges con-
fronting Asian agriculture make it a fascinating subject, one that
merits a critical assessment of its major trajectories of growth
This paper draws from the

and transformation fromstudy
both the historic and contemporary "Understanding the Ne
Transition in Asia" that perspectives. Such an assessment
was is justified as there are very few
carried out by the authors at
Institute of Technology, regional studies that try to understand the complexities of agri-
Bangkok, with financial support
Rockefeller Foundation. culturalThe usual
transformation and their long-term implications for the disclaimers apply.
P smallholder sector in Asia. Further, the rapid changes that have

К Viswanathan ( pkviswam@gmail.com ) is at the Gujar
of Development Research. Gopal
taken place in the socio-economic and demographic aspects of В Thapa (gopal@ait.ac.t
Routray ( routray@ait.ac.th ) and Mokbul M Ahmad 0 mo
smallholder livelihoods call for a detailed review, especially
are with the Asian Institute of Technology, Bangkok, Th
given the emerging global development scenario.
Economic & Political weekly E33S3 January 28, 2012 vol xlvii no 4 4I
REVIEW OF RURAL AFFAIRS eeeee
Against this backdrop, this paper critically reviews the diver-

Review of Rural Affairs
gent experiences of agricultural transformation in five Asian
Rural India is witnessing a wide-ranging transformation. The countries - Bangladesh, India, South Korea, Thailand and Viet-
narratives of this transformation range from the stories of "rural nam - from a comparative perspective. A careful scrutiny of agri-
resurgence" and the rural as a site of expanding consumption to cultural transformation in these countries enables one to under-
that of rural distress and suicides of farmers in large numbers. We
also hear how rural India is fighting corporate takeover of its land.
stand the underlying contradictions in farm production struc-
The contemporary rural situation is vastly complex and does not tures, changing agrarian and labour relations and the challenges
neatly fit any of these characterisations. to food security and sustainable livelihoods. These five countries
Agriculture still remains central to rural transformation in India best represent the south and south-east Asian region with their
as it is the source of livelihood for over half of the rural population.
distinct trajectories of rural transformation. While South Korea
Even then, at a very gradual pace, occupations and livelihoods are
(hereafter Korea) exhibits growth and transformation driven by
getting diversified in rural India. It is well known that the share
of agriculture in national income has come down significantly in rapid industrialisation and urbanisation, Thailand presents a
the last 60 years; besides, the share of agriculture in rural incomes dynamic agriculture sector in the post-reform and post-crisis
has also fallen sharply in recent years. Animal husbandry, value periods. India and Bangladesh have almost similar stories of
addition and trading in agricultural commodities have emerged as
agrarian transformation and face the same challenges, while
important sources of income for rural households.
Vietnam has achieved transformation with aggressive reform
Strong farmer organisations have emerged in different parts of
the country, forming powerful interest groups around minimum
policies in its post-Doi Moi (renovation) era.
support prices, public procurement, fertiliser and input subsidies The rest of the paper is organised into four sections. Section 1 criti-
and free power supply to agriculture. The collective impact of these cally reviews the important trajectories of agricultural transformation
interventions is now being felt on the environment in rural areas, in the five countries and Section 2 examines the main drivers and
especially on the common pool land resources and on groundwater.
outcomes of agricultural transformation. Section 3 outlines the major
While it is true that the irrigation pumps and borewell technology
have helped in mitigation of distress of small and marginal challenges confronting smallholder agriculture in the larger Asian
farming households, these have also resulted in rapid groundwater context. Section 4 concludes the paper by highlighting the need for
depletion. Such negative impacts bring into sharp focus the natural evolving new perspectives and policies towards sustainable and non-
resources context of agricultural development. disruptive transformation of smallholder agriculture in Asia.
There have also been a spate of serious struggles around
construction of big dams, sharing of river water, resistance to the
1 Trajectories of Agricultural Transformation in Asia
inroads made by corporate capital to take over forest and mineral
resources, rights-based movements for food and forest rights of Compared to economies in the west, the trajectories of rural
tribal communities and left-wing movements articulating the transformation have been quite distinct in Asia. While western
problem of marginalised sections. The combined effect of these economies experienced a rapid and complete transition from
movements is to constantly reconfigure the rural landscape in agricultural to advanced capitalist or industrial societies, the
many ways. The role of the state is also being rapidly redefined
process of transformation has been slow in most of Asia, barring
as a consequence of such struggles. There has been a significant
expansion of public spending in rural areas (now over Rs 1 lakh a few countries. For instance, one can see that apart from Korea,
crore a year), with programmes like the Mahatma Gandhi National a complete rural transformation has not occurred in any of the
Rural Employment Guarantee Act, Bharat Nirman, National Rural other four countries in this study.
Health Mission, drinking water missions, etc.
The major trajectories of agricultural transformation, driven by
The village social life has also seen many changes. The traditional
the widespread adoption of gr technologies, especially by small-
structures of caste and jajmani relations had begun to see changes
soon after new agricultural technologies were adopted by farmers.
holders, seem similar in the five countries. All of them, except Ko-
Notwithstanding significant regional variations, the old ties rea and Thailand, were predominantly agrarian in the 1960s with
of patronage and clientele have by now disintegrated almost the largest share of their gdp coming from the agricultural sector,
everywhere in the country. This has resulted in new tensions including the sub-sectors of forestry, fishery and livestock. For In-
between caste groups, which often erupt in violent clashes. The
dia and Vietnam, agriculture was also a major provider of employ-
village has lost its old communitarian framework, if it ever had
one. The younger generations no longer seem to identify with the
ment and export earnings. However, there were notable differ-
village and its "ethos". ences in the way gr technologies and processes interacted with
the biophysical and human environments in these countries.
Academic research needs to take a fresh look at these forces
of change and develop a critical understanding of rural India.
1.1 Spread of
Detailed studies with a multidisciplinary perspective are required Green Revolution: Role of Policies,
to build an integrated view of the facets of these dynamic trans-
Technologies and Institutions
formations. It is hoped that the new Review of Rural Affairs (rra),
which will incorporate the old Review of Agriculture andThe gr was seen as a means of achieving self-sufficiency in food
will
production,
be published twice a year, will bring out the broad contours and infusing dynamism to the economy and propelling rural
the essential character of the process of change in contemporary
transformation. All five countries made significant investments
rural India.
in research and development (r&d), extension, technology and
The themes to be covered and articles to be published in the
infrastructure development to achieve self-sufficiency in the pro-
rra will be decided by an advisory editorial group whose members
are Ramesh Chand, Surinder S Jodhka, D Narasimha Reddy and duction of food crops, mainly rice, wheat and maize. They also
P S Vijayshankar. provided substantial input subsidies (for fertilisers, irrigation
and energy) and credit to enable farmers to make the most of
42 January 28, 2012 vol XLvii no 4 EZ3S3 Economic & Political weekly
REVIEW OF RURAL AFFAIRS
which were considered essential for alleviating poverty and set-

innovative practices in farming. Farmers were quickly able to uti-
lise technologies developed at international agriculture researchting right the socio-economic disruptions caused by the Korean
centres such as the International Rice Research Institute (irri) in
War (1950-53). While pursuing such policies, Korea heavily taxed
the Philippines, the International Maize and Wheat Research
its agriculture sector by maintaining low grain prices (using pl 480
imports from the us) during the 1950s and 1960s (Kim and Lee
Centre (cimmyt) in Mexico and the avrdc: The World Vegetable
Centre in Taiwan (Kaosa-ard and Rerkasem 2000: 4-5; Chand 2010).
2010). However, there was a reversal in this policy in the 1970s and
Korea began subsidising agriculture to achieve self-sufficiency
A closer look at the policies as well as technological and insti-
tutional interventions in the five countries reveals some striking(faorap 2006). To support its large number of small and poor
Table 1: Trends in Production of Foodgrains (1 961 to 2009) farmers, productivity-enhancing policies and infrastructure
Period Bangladesh India Korea Vietnam Thailand
improvement programmes were implemented, which included
Average annual production (million tonnes)
enlarging farms, improving drainage and developing water re-
1961-75
sources. Korean agriculture greatly changed after the late 1980s

1976-90
when import barriers were removed under strong international

1991-2009
Average annual pressure,

simple forcing
growth it to be sensitivein
to changing
food global markets.
produ
1961-75 Since joining the World Trade Organisation (wto) in 1995, Korea
1976-90 has made efforts to further strengthen its agricultural sector
1991-2009 3.21 (1.25) 1.49(3.12) -0.44 (-0.04) 4.22(1.29) 2.90(0.75) while sticking to its wto commitments. Korea has also intro-
Average annual per capita food production (kg)*
duced direct payment programmes, though this is not in full con-
1961-75
formity with the Green Box measures of the Agreement on Agri-
1976-90
culture (aoa) (Kim and Lee 2003; Song 2006).
1991-2008 252(4.12) 226(-0.41) 156 (-2.25) 415(11.48) 468(7.50)
* Figures in parentheses indicate lineartrends growth rates.
Source: Estimated from FAOSTAT (www.faostat.org). 1 .2 Food Self-Sufficiency and Commercialisation
variations. Bangladesh and India chose a deliberate of Agriculture
strategy of
intensive agriculture. Bangladesh, which now hasThe
onegr of the
significantly increased the production of foodgrains in all
thesectors
most mechanised and labour-intensive agricultural five countries,
in as is evident from Table 1. All the countries,
south Asia (Biggs and Justice 2011), experiencedbarring
significant
Korea, achieved a consistent increase in food production,
changes, particularly in rice cultivation with theaswidespread
indicated by the average annual production in three sub-
periods.
adoption of modern rice varieties, mechanisation of tillingInand
Korea, annual average food production considerably
intensive use of inputs. These changes enabled it todeclined
achievefrom
food8.98 million tonnes during 1976-90 to 7.21 million
tonnes during
security to a large extent, though at the cost of a diminution of its 1991-2009.
genetic resources (Asaduzzaman 2010). Through the gr,
Table 2: India
Trends in Agricultural Exports, 1989 to 2009 (in million dollars)
Period Bangladesh India Korea Thailand Vietnam
eradicated famines and persistent food shortages and attained
food self-sufficiency in a short span of 10 to 15 years (Chand 2010). 1989-91
Thailand's agriculture underwent significant developments in

1992-94
the years following the First National Economic and Social Deve-
1995-97
1998-2000
lopment Plan in 1961. Substantial investments were made in

2001-03
infrastructure, technology, irrigation, research and extension,

2004-06
besides establishing rural credit support and institutional sys- 2007-09
tems for facilitating market incentives and trade flows. The adop-
Source: FAOSTAT (estimated).
tion of gr technologies, including high yielding variety (hyv)

Spectacular growth
seeds, significantly boosted the production of irrigated India
rice in the almost self-su
the
central plains and maize in the rainfed uplands (Phrek 2010). gr (Chand 2010
Vietnam initiated economic reforms (Doi Moi) in 1989
1986 with and has been
nessed
the goal of creating a "socialist-oriented market economy". The a deceleratio
major reform in the agricultural sector was Resolution No 10 of
tion during the ent
duction
the Politburo (1988), which abolished the collective farming sys- in Korea de
tem and allocated land to individual households on a during
long-term 1976-90 and
basis. The price reforms of 1989 liberalised all conventional
due price to policies that
controls, including interest and foreign exchange rates.crops
(paddy
The new and
exchange rate policy dramatically altered the incomefruits)
of farm (Lee and K
households by giving them full control over production and free
drop in per capita f
access to markets. The reforms also greatly contributed to
(1976-90), the situat
improving the terms of trade in favour of agriculture ing
(Chung and 1991-2008. Thou
Dang 2010). cant growth in foo
In sharp contrast, development policies in Korea were guided production was neg
by rapid growth through industrial expansion and urbanisation, worsening food ava
Economic & Political weekly [3X3 January 28, 2012 vol xlvii no 4 43
REVIEW OF RURAL AFFAIRS =
1 .3 production
Much of the contribution to the growth in food Structural Changes and Contraction
came from a single crop, rice, which also was the of Agriculture
major benefac- Sector
A contribution
tor of the gr in all the countries, except India. The closer lookof at the sectoral composition of gdp is
rice to total food production was as high as 96% see if the
in Korea, structural
95% in transformation in the five co
in aInprogressive
Bangladesh, 89% in Vietnam and 88% in Thailand. India, rice shift from agriculture to other
trends
contributed only 56% to total foodgrains production, suggest
followed by that the economies witnessed
increase
wheat at 30%. The yield impact of gr technologies in sig-
was quite the value of agricultural gdp, though
nificant in the case of rice. Among the five fall in theKorea
countries, relative share of the agricultural sector
achieved the highest yield levels of 4.0 to 4.8 tonnes
Table 3:per ha over
Trends in Agricultural GDP and the Sectoral Composition of
Bangladesh India Korea Thailand Vietnam
1961 to 2008. In Vietnam, the rice yield varied between 1.92 and
Agricultural GDP (current $ million)
4.8 tonnes per ha and in Bangladesh, it varied from 1.68 to 3.71
1985-89
tonnes per ha during the same period. India (1.48 to

1990-99 3.1 tonnes
9,974(32.4) 94,445(17.5) 26,236(55.2) 13,183(58.0) 5,186(-42.3)
per ha) and Thailand (1.78 to 2.82 tonnes per ha) had
2000-08 relatively
12,213(22.4) 146,735(55.4) 25,844 (-1.5) 18,184(37.9) 11,029(112.7)
lower levels of rice productivity. Agriculture value added (%)
Besides benefiting from the gr, the five countries also made 1980-89
healthy investments in r&d, infrastructure development and ex- 1990-99
tension programmes to increase the production of commercial 2000-10
crops for exports. Vietnam and India were growing tropical cash
% change
Manufacturin
crops such as rubber, tea and coffee even earlier to boost export
1980-89
earnings and the gr period coincided with the dynamic growth 1990-99
of commercial agriculture in these countries. Nevertheless, the 2000-10 27.2
promotion of cash crops did not result in large-scale diversifica- % change
Services
tion of agriculture in Bangladesh and Vietnam with food crops val
(mainly rice and wheat) continuing to dominate the gross 1980-89
cropped area in these countries (86% and 72%, respectively). But

1990-99
India, Korea and Thailand were more successful in crop diversi-

2000-10
fication and the area under non-food/commercial crops was

% change 9.7
Figures in paren
Source: World B
about 44% to 47% of the gross cropped area in 2007. Apart from
Bangladesh, the growth in commercial agricultureIndia's
enabled the agr
other countries to gain significantly from increasedto $94,445
exports over
the
a period of time, as Table 2 (p 43) shows (see also Figure 1). last d
Figure 1 : Trends in Agricultural Exports of Major Asian Countries significant
to the Asia
28,000
experienced
24,000
ThailandbX
-g 20,000 with the m
1 16,000 by India (
Щ ^ - India
Despite th
cl x Vietnam
and the ri
¿5 8,000 _ ^ ^4, M ^ ^ -
agriculture
4,000
"
tion of sec
0
of
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 agricul
Thailand had the highest gains betweenVietnam
2004-06 and 2007-08 (4
from
with its agricultural exports jumping from $13,126 million to 13.4
Korea
$20,716 million. In relative terms, India's agricultural exports inmay
culture
creased by 82%, followed by Vietnam (69%), Thailand (58%), in
enced
Bangladesh (40%) and Korea (28%) during the period 2004-09. a de
With the exception of Vietnam, the other The patter
four countries experi-
enced a drop in exports between 1995-97across
and 1998-2000 due to the
dynamicall
the 1997 financial crisis. By and large, it may be observed that trade
turing
liberalisation policies adopted by these countries significantly gro
helped them diversify exports through improved market access
2
and increased engagement in free trade Drivers
agreements (ftas).1
However, much of the increase in exports The struct
came from the non-
agricultur
food crop sector. All five countries, especially Bangladesh and
graphic
Korea, experienced a decline in exports of food and food products, pr
with an unfavourable balance of trade in the food sector.
These socio
44 January 28, 2012 vol XLVii no 4 13223 Economic & Political weekly
the performance of the agricultural sector and agrarian rela- almost 13 million inhabitants with an annual addition of 5,00,000
tions. By and large, these changes may be broadly described as (uN-Habitat 2008). In Vietnam, declining employment opportuni-
(a) demographic pressure and the fragmentation of holdings; ties in agriculture has resulted in both intra- and interprovincial
(b) migration and its effects on agriculture and farm families; migrations. According to 2004-05 estimates, the total number of
(c) the féminisation of agriculture and an ageing farm popula- migrants in Vietnam was 10.8 million, of whom 62% were intra-
tion; and (d) a changing technological paradigm. We briefly provincial migrants (Chung and Dang 2010).
examine how these factors have influenced the process of agri- In Korea, urbanisation has triggered several patterns of migra-
cultural transformation in the five countries. tion that have had a definite impact on the performance of agri-
culture. During the 1980s, more than 50% of the total migrations
2.1 Demographic Pressure and Fragmentation were rural-urban, induced by better living conditions in the cities
of Landholdings and educational, medical and cultural opportunities. But rural-
The structural transformation brings out the important paradox ofurban migrations decreased in the 1990s with the absorptive
the decline of agriculture as a source of growth even while farmingcapacities of cities reaching a saturation point. In turn, urban-
remains the mainstay of rural livelihoods in Asia. The proportion of urban migrations increased from 51% during the late 1980s to
the rural population is as high as 72% in Bangladesh and Vietnam,74% during the early 2000s, mostly fuelled by a growing demand
70% in India and 66% in Thailand (fao 2010). The dependence on for labour in the rapidly expanding manufacturing and services
agriculture is very high at 63% in Vietnam, 49% in India, 46% in sectors. Further, when Korea faced a shortage of labour with
Bangladesh and 41% in Thailand. This shows that the dramatic about 7,60,000 Koreans immigrating to the us between 1965 and
growth of the manufacturing and service sectors has not yet cre-1995 (Massey 2003), a large part of it was met by importing
ated enough employment opportunities to absorb the excess rural labour from neighbouring countries (Lee and Kim 2010).
population. However, Korea is an exception, with its farming popu- Thailand exhibits three major patterns of seasonal labour mi-
lation falling sharply from 45% (14.4 million) of the total popula-grations - the movement of agricultural labourers to work in sugar
tion in 1971 to 28% (10.8 million) in 1981 and 7.4% (3.5 million) in cane farms; the migration of rice and maize farm workers to
2003. Further, the labour force employed in agriculture declined Bangkok or other fast-growing urban centres and industrial loca-
by about 22% from 2.55 million to 2 million between 1992 andtions; and cross-country labour migrations. However, Thailand
2002 (Song 2006, as cited in faorap 2006; Lee and Kim 2010). has the lowest rate of permanent rural-urban migrations among
Mounting demographic pressure on farmlands resulted in thethe five countries. Since villages are well connected with urban
fragmentation of holdings in all the five countries, somethingcentres, rural households get opportunities to take part in several
that happened all over Asia. The problem was aggravated by a non-agricultural activities. Besides, remittances received from
decrease in the area of arable land due to land degradation and family members or relatives working in urban areas or abroad
agricultural land being diverted to urban and industrial use.enable rural families to continue living in villages as cultivators
Small and marginal holdings now constitute 87% of the farmland (Thaiprasert 2006; Almeida 2006; Phrek 2010).
in Bangladesh, 85.2% in Korea, 84.2% in Thailand and 82% in Migration in the Indian states of Punjab and Haryana is some-
Vietnam and India. The fragmentation of farmlands has reducedwhat different from that observed in other countries. These two
the size of operational holdings in all five countries. For instance,states, which were the heartlands of the gr, see a huge influx of
the average farm size is a low 0.57 ha in Vietnam and 0.73 ha inlabourers from neighbouring states for seasonal employment at
Bangladesh. It is slightly more than 1 ha in Korea (1.37 ha) andhigher wages. The high rate of agricultural growth achieved under
India (1.33 ha) (fao 2009). Thailand is an exception with an aver-the gr improved the living standards of even small and marginal
age farm size of 3.65 ha at the national level though more thanfarmers in these states. So large segments of their farmers have
30% of its households own farmlands less than 1.6 ha (Phrekeither become "farm managers" or ceased to work on their farms.
2010). The situation is much worse if per capita landholding is This has created employment opportunities for labourers from
considered. As of 2007, average farm size per capita was the low- other states and the situation has reached such a stage that with-
est in Bangladesh at 0.07 ha. It was slightly better in the otherout outside labour, the agricultural sector in Punjab and Haryana
four countries, 0.42 ha in Thailand, 0.21 ha in India, 0.18 ha inwill collapse2 (Chand 2010). However, regions outside the gr belts
Korea and 0.15 ha in Vietnam. Land fragmentation affects farmtell a story of distress migration. Migrations are quite frequent
management decisions, particularly in a country like Vietnam from the drylands in the country, mostly driven by poverty and
where a farm household may have to manage five to eightlack of access to water (Agoramoorthy et al 2009).
scattered plots of land (Chung and Dang 2010). An interesting paradox of increasing rural-urban migrations is
that it has not led to poverty alleviation in these countries. Many
2.2 Migration and Its Effects on Agriculture of the migrants end up earning little and leading miserable lives
and Farm Families
in urban areas because they lack education, technical skills and
Rural-urban migration is high in most Asian countries dueknowledge.
to lack Thus, rural-urban migration has only aggravated
of employment opportunities both within agriculture and out-
urban poverty (Rasul et al 2004; Mendola 2008). For instance, in
side it and the low profitability of agriculture. About 66%Bangladesh,
of the though rural poverty decreased from 55% to 53%
between 1996 and 2004, urban poverty increased by 8% from
rural migration in Bangladesh is towards the main urban centres
29%has
of Dhaka and Chittagong (Black et al 2008: 28). Dhaka now to 37% (Herrman and David 2009).
2.3 Féminisation of Agriculture and Ageing (James 2010) thereby helping to mitigate the problems of food
Farm Population insecurity, malnutrition and abject poverty.
The féminisation of agriculture has been one of the major aspects The five countries show disparate trends in the adoption of gm
of rural transformation in most parts of Asia, though its degree crops due to various reasons. For instance, Bangladesh is yet to
varies across countries. Besides attending to household chores, establish r&d and institutional systems for regulating gm tech-
women make up 60% to 80% of agricultural labourers in Asia nology and so far no gm crop has been approved for commercial
and Africa against 40% in Latin America. The increase of women cultivation (Asaduzzaman 2010). In India, only Bt cotton has had
in agriculture is attributed to a variety of factors such as male remarkable success in terms of a rapid expansion in area from a
outmigration, the growing number of women-headed house- mere 50,000 ha in 2002 to more than 9.4 million ha in the last 10
holds, the increase in labour-intensive cash crops and persistent years (Viswanathan and Lalitha 2010; Choudhary and Gaur
poverty in rural areas (unifem 2008). 2010). India follows a very cautious approach in promoting other
Other than Korea, where women in agriculture were hardly gm crops, in particular Bt brinjal, in view of growing environ-
9% of the total working female population (World Bank 2009), it mental as well as health-related concerns (Chand 2010).
has been on the rise in all the other four countries. In Bangla- Thailand has been promoting gm crops such as Bt cotton,
desh, the number of women in agriculture more than doubled Bt corn, roundup ready soybean, Bt maize and gm papaya owing to
from 3.76 million in 1996 to 7.71 million in 2006 and the share of the vigorous marketing strategies of multinational seed company
women agricultural workers increased to almost 68% of the total Monsanto. At the same time, the promotion of the gm crops has
female workforce (Asaduzzaman 2010). In India, about 33% of been opposed by national (headed by Biothai) and international
cultivators and 47% of agricultural workers were women (Vepa (Greenpeace Thailand) agencies (Phrek 2010). Vietnam has also
2005). Further, almost 65% of all women workers and 83% of been promoting gm crops, mainly rice, cassava, maize and soybean,
rural female workers in India were in agriculture (nsso 2004-05). livestock feed and tilapia, a fish. But wider promotion of gm crops in
Moreover, an estimated 35% of households in India were de facto Vietnam is constrained by policy and regulatory systems (Chung
female-headed because of death of the husband, marital break- and Dang 2010). Korea promotes gm technology mainly to meet the
down or male outmigration (Rawal 2008; Agarwal 2010). While growing domestic demand for foods and feed and has enacted laws
the share of women workers in agriculture was about 61% in Viet- and regulations to enable consumers to make informed choices. As
nam, it was a relatively lower 44% in Thailand (Phrek 2010). of December 2008, the Korea Food and Drug Administration (kfda)
The increasing rural-urban migration of youngsters exerts had approved 54 varieties of gm crops (Hae-Yeong et al 2010).
pressure on older people to actively take part in farming opera-
tions. This trend is seen in most of Asia, particularly in Korea and 3 Critical Challenges Facing Asian Agriculture
Thailand. In Korea, the rural population above 65 years increased The trajectories of agrarian transition in the five countries reflect
by almost three times from 3.7% to 10.4% between i960 and the larger Asian context. The future of their smallholder agricul-
2008, while Thailand reported a twofold increase from 3.2% to ture faces serious challenges and the potential threat of climate
7.4% during the same period. Besides, the growing rural popula- change exerts pressure to adopt more sustainable ways of farm-
tion in the four countries other than Korea (ranging from 66% to ing. A critical assessment of agricultural transformation in Asia
72%) suggests that larger proportions of the elderly will crowd reveals that the benefits of the gr did not reach millions of small
rural living and agricultural spaces in the years to come. The farmers in marginal regions with a rough topography and com-
challenges posed by the increasing number of women and the plex, rainfed agriculture (wced 1987). Moreover, agricultural
elderly in agriculture in Asia will be discussed in Section 3. growth in regions that adopted gr practices has become satu-
rated with stagnant yields (in Korea and Thailand). There are
2.4 Changing Technological Paradigm also the problems of depletion and degradation of natural re-
Though gr technologies have enabled many Asian countries to sources (India, Bangladesh) as well as intensive use of energy,
achieve agricultural growth, their benefits have been mostly con- fertilisers and pesticides (Korea and Vietnam).
fined to specific crops and resource-endowed regions.3 Further, The challenges confronting Asian agriculture are multidimen-
the large adoption of gr technologies resulted in indiscriminate sional and involve almost all aspects of farming right from seed
exploitation of land and water resources along with intensive use choice to marketing of farm produce at the end of the supply
of chemical fertilisers and pesticides. These trends, called the chain. Nevertheless, for the sake of brevity, we classify them into
second-generation problems of the gr, have raised several issues (a) socio-economic and demographic challenges; (b) challenges
related to the growth model based on gr technologies and the of dwindling institutional support and trade reforms; (c) biotech-
future of agricultural sectors in the region (Chand 2010). nology and environmental challenges; and (d) climate change
It was because of this that GM/biotech crops began receiving and food security challenges. In what follows, we briefly discuss
greater attention in many parts of Asia. It is pointed out that mil- some of these challenges and their implications for the agricul-
lions of large, small and resource-poor farmers around the world tural sectors in the five countries.
have begun growing gm crops as a result of consistent and substan-
tial economic, environmental and welfare benefits offered by these 3.1 Socio-economic and Demographic Challenges
crops. The increased adoption of gm food crops, such as biotech The dwindling share of agriculture in gdp alongside increasing
rice, is expected to benefit 250 million poor rice households in Asia demographic pressure on land is a pressing concern in most of
46 January 28, 2012 vol XLVii no 4 EH3S9 Economic & Political weekly
Asia, especially India, Bangladesh and Vietnam. The lack of alter- 1994, 2010; Vepa 2005; Kelkar 2009). In addition, farm technolo-
native employment opportunities has made the situation worse. gies are often designed to suit the physical abilities of male work-
Though all the five countries have been implementing pro- ers and female workers lack appropriate technologies. The wage
grammes to create employment opportunities in the farm and disparity between genders is yet another major issue.5
non-farm sectors and industries and encourage land consolida- The increasing presence of the elderly in farming operations is
tion, their achievements have been slow and inadequate. While also a major challenge. In Korea, the increase of farmers and farm
economic transformation in the west led to more land consolida- labourers more than 60 years old has reportedly affected growth of
tion (Chand et al 2011), this has not happened in most of Asia.the agricultural sector with it showing symptoms of "growth fa-
However, Korea and Vietnam report some progress in consolida-tigue" (Kim and Lee 2003). India and Bangladesh also report high
tion of farm lands. In general, fragmentation of holdings has work participation rates (55%) among those more than 60 years
pushed up production and farm management costs, thereby jeo-old in rural areas (Rajan 2009). A high proportion of elderly males
pardising the future of farming as a viable pursuit. (42%) and females (41%) are economically active in the Red River
Delta in Vietnam (Friedman et al 2003). Micro-level evidence from
3.1.1 Growing Landlessness Thailand indicates that almost 40% of the elderly work in agricul-
Besides fragmentation of holdings, there is now a high incidence ture (Darawuthimaprakorn and Punpuing 2010).
of rural landlessness in Bangladesh, India, Vietnam and Thai-
land. In Bangladesh, about 4.5 million households (15.63%) were3.2 Challenges of Trade Reforms and Dwindling
landless in 2008, a majority of whom (73%) lived in rural areasState Support
(bbs 2008). Landlessness has been caused by poverty or naturalLarge sections of Asian agriculture were governed by technology,
policies and institutional support regimes developed during the
disasters (floods, cyclones and riverbank erosion) or land-grabbing
(Rahman and Manprasert 2006). Landlessness is also acute inearly phase of the gr, which are either dormant or redundant
India, as National Sample Survey Office (nsso) surveys show.now. Trade reforms under the wto have further aggravated the
More than 40% of rural households are landless and inequality crisis in many countries because several state-support schemes
in landownership worsened between the 48th (1992) and 59thhave been withdrawn (Ellis 2005). 6 The decline in investment in
(2003-04) Nss rounds (Rawal 2008). Landless households in agriculture is all the more worrying as it has happened in the
Vietnam increased from 1.15% in 1994 to 4.05% in 2006 (Chungface of rising rural poverty in Asia (World Bank 2008).
and Dang 2010). The problem is very severe in the Mekong River Proponents of trade liberalisation claim that tariff reductions
Delta, where the proportion of the landless increased from 17%will benefit developing countries by enhancing market access for
in 1993 to 29% in 2002. Landlessness has been caused by increas-their agricultural products, but these claims are highly con-
ing urbanisation and industrialisation as well as sale of land due tested. This call for detailed studies at disaggregate levels to
to increased outmigration (Thanh et al 2008). determine which countries, what type of farm products and
In Thailand, market-driven agriculture has resulted in land- which segment of the farmers benefit from such tariff reduction.
lessness increasing at an annual rate of 4%. The rising costs of Preliminary evidence suggests that there are obstacles to export-
farming and depressed prices have pushed millions of farmers into led agricultural growth in many countries because of (a) rising
perennial indebtedness. Many who used their land as collateral production costs due to increasing wages and input costs;
for borrowing have lost it after being unable to repay their loans (b) technical barriers to trade and new barriers linked to intel-
(Leonard and Ayutthaya 2003; Phrek 2010). A majority of rural lectual property rights, animal welfare, and sanitary and phyto-
households become marginalised and are deprived of credit sanitary measures; and (c) inertia and inflexibility of subsist-
facilities and state support when they lose the collateral of land. In ence-oriented production systems that are typical of many farm-
Vietnam, lack of access to credit among the landless poor has beening communities (faorap 2009).
reported to be jeopardising anti-poverty programmes (Ravallion It is likely that tariff reduction commitments under the wto
and Van de Walle 2008). In India, the severity of landlessness hasmay increase the vulnerability of smallholders by creating new
grown drastically because households whose lands were acquired threats to agriculture from cheap imports that adversely affect
for industries, mining, dams and other projects have been ne- prices and farm incomes. Though countries such as Vietnam and
glected by land distribution programmes (Dogra 2007). India have been somewhat successful in accessing international
markets under liberalised policy regimes, a major share of their
3.1.2 Growing Number of Women and Elderly exports comprise commercial crops such as coffee, rubber, tea
in Agriculture and pepper, the prices of which are highly volatile. Similarly, the
As mentioned, increasing rural-urban migration and a dislike for export of fresh fruits and vegetables from Thailand and Vietnam
farming among youngsters poses a serious problem for Asian ag- face stringent food safety and quality regulations in export mar-
riculture because it pressures women and the elderly to take upkets, especially on maximum residue levels of pesticides in the
farming responsibilities. Féminisation of agriculture opens up European Union (eu) (Wannamolee 2008; gtz 2008). It is also
several operational-level issues, given the existing organisation relevant to note that the emerging trend of bilateral and multi-
and relations of production in agriculture. Compared to men, lateral free trade agreements or regional trade agreements
women have poor access to land and other productive assets as (ftas/rtas) in the Asian region and across other regions such as
well as services such as training, extension and credit4 (Agarwal the eu may affect the comparative and competitive advantages
Economic & Political weekly ШЗСЭ January 28, 2012 vol xlvii no 4 47
historically enjoyed by these countries in the production and gas emissions, the agricultural sectors in these countries will
export of agricultural products. have to be reoriented through climate -resilient farming prac-
tices. Trends as of 2005 reveal that agricultural methane (сн4)
3.3 Biotechnology and Environmental Challenges emissions contributed about 76% of the greenhouse gas emis-
Though empirical literature on the economic benefits of growing sions in Thailand, 69% in Bangladesh, 67% in Vietnam and 65%
gm crops is available, very little is known from the food and eco- in India. Korea is an exception to this, as its level of сн4 emissions
logical security perspectives about the risks of growing more and is quite low, declining from 38% in 1990 to 31% in 2005 due to a
more of them. There has been relatively little biosafety research drastic decrease in the area under rice and emission reduction
on the health and environmental effects of gm crops (unescap commitments. Second, rice cultivation in these countries ac-
2009). The problems in the adoption of gm crops7 are also a mat- counts for 30% to 50% of their сн4 emissions, along with emis-
ter of serious debate, needing systematic and long-term studies sions from other farming activities such as manure handling,
specific to these crops across countries. The greatest challenge livestock production, burning of crop residues/biomass, slash
posed by gm technology is that unlike the gr, r&d and techno- and burn practices, and so on (Wreford and Moran 2009; Golub
logical innovations are largely owned and exploited by multi- et al 2009). It has also been reported that seasonal methane
national companies (Lipton 2010). Not surprisingly, many coun- emissions from rice cultivation were 49 kg/ha in Thailand and 45
tries do not have strong regulatory systems and rural institutions kg/ha in India, while it was 367 kg/ha in Korea due to intensive
that facilitate an informed choice of gm crops by resource-poor agricultural practices (Malla 2008).
farmers (Tripp 2009).
4 Future of Smallholder Agriculture in Asia:
3.4 Climate Change and Food Security Challenges Evolving Perspectives and Policies
The future prospects of agriculture in Asia are threatened by climate A larger issue that emerges from the foregoing analysis on the
change and food security challenges. Changes in average tempera- various facets of agricultural transformation is whether it is
ture, shifting patterns of rainfall and changes in the frequency and possible to sustain smallholder dynamism, which was instrumen-
intensity of extreme weather events can affect agriculture in ways tal in driving agricultural growth in Asia in the gr era. It is impor-
that are unpredictable. It is likely that water availability for agricul- tant to ponder ways and means by which the smallholder sector in
ture and other uses, including drinking and ecosystem services, will Asia can overcome the multiple challenges facing agriculture. One
considerably decrease in semi-arid and arid areas, thus affecting argument is that the future of smallholders may not lie in farming
food security and rural livelihoods (Fraiture et al 2010). alone. Rather, it calls for measures to stimulate rural non-farm
Unfortunately, we are yet to generate meaningful information sectors and create more employment opportunities while
on the various effects of climate change on agriculture, food secu- investing in the provision of public goods (Wiggins et al 2010).
rity and livelihoods in Asia. Among the five countries, Bangla- It may be observed that agricultural development policies and
desh will be the most affected by a rise in sea level because about programmes as well as technological and institutional develop-
32% of its total land area, where 29% of its total population lives, ments in Asia have so far heavily focused on planning from macro-
is close to the coast (Bala and Hossain 2010). Further, more than perspectives without understanding the importance of micro envi-
35% of the arable land on the coast is already affected by varying ronments and the socio-ecological systems that shape smallholder
degrees of salinity and left fallow in the dry season (Karim et al livelihoods. Hence, a major challenge that all the five countries
1990). More than 60% of Bangladesh's land is six metres below have is evolving new policies, investing in r&d, and implementing
sea level, with a large part of it experiencing regular floods technological and institutional development strategies for agricul-
(Mirza 2002). Thus, the effects of climate change, including ture from the perspective of regional "agro-socio-eco-systems".
frequent natural calamities, will have serious implications for That said, evolving policies and strategic interventions may be dif-
food security in Bangladesh (Herrmann and Svarin 2009). ficult because there is a clear lack of empirical understanding about
Vietnam also faces climate change issues such as a rise in tem- the micro-level implications of many of the challenges discussed
perature, a rise in sea level, and frequent and intense rainfall above. Cross-country empirical investigations become critical in
causing floods in some regions while others reel under drought. the context of trade reforms and growing market uncertainties on
Its vulnerable regions include coastal zones, deltas affected by the one hand and climate change-induced risks on the other.
storms and storm-induced floods and mountainous areas suscep- This analysis provided the broad patterns of rural-urban
tible to flash floods and landslides (Chung and Dang 2010). A migrations based on aggregate data, which do not adequately
study in Korea shows that the rising temperatures result in the capture all the various factors causing migrations and labour
emergence of new harmful pests that cause massive damage to shortages in agriculture, especially agrarian distress and the
apples, peaches, grapes and beans. Rice yields are reported to be effect of extreme climatic events. This makes it important to under-
stagnating, mainly because of weather-related factors rather stand the various adjustment mechanisms, including changes in
than technology-related ones (Kim et al 2009). cropping systems and farming methods, being adopted by farm-
The threats from climate change are a double-edged sword for ers to overcome such adversities; and the existing interventions
most parts of Asia, where agriculture is the mainstay and rice or policies/programmes (if any) to check migrations, and their
production the dominant agricultural activity. This raises two success. Similarly, the increasing incidence of landlessness calls
important challenges. First, being large sources of greenhouse for understanding whether it is caused by contingencies such as
48 January 28, 2012 vol XLVii no 4 В35Э Economic & Political WEEKLY
natural hazards or distress-induced factors, including loss of smallholders

land in Asia in the context of neo-liberal trade reforms.
caused by urban and industrial expansion. While little effort is made in Asia to recognise the multiple func-
As is evident now, the future strength and dynamism of Asian
tions of agriculture, including the sociocultural roles and the ec-
agriculture will be undermined by the large-scale retreat of young
osystem services provided by rice production systems, the protec-
tionist
people from the farming sector. Given this, there is a need for re- policies being adopted by the eu as well as Japan and Ko-
visiting this issue to understand local policy responses and inter-
rea may provide useful indicators.
ventions made by the state and other development agencies to
The time is ripe to establish in what ways gm technology in
address this issue. In the absence of any such interventions, it and commercial crop production could lead to sustainable
food
livelihoods and increased welfare gains for farmers, especially in
needs to be examined what type of incentive structures and profit-
regions
able farm enterprises would help prevent the large-scale exodus of with poor resource endowments. The need for well-
founded
youngsters from agriculture. Alongside, attention has to be paid to research on the social effects of gm crops stems from
the various challenges faced by women and the elderly in farm
that some parts of India that adopted Bt cotton when it was intro-
management. A critical aspect should be the development of gen-
duced in 2001 have been in the throes of an agrarian crisis, even
der-specific and elderly-specific technological innovations andleading
in- to farmers' suicides.8 It is also important to consider how
public sector R&D institutions of the gr era can be revamped to
stitutional support mechanisms so that their hardships are mini-
sustain smallholder dynamism through a gm revolution. This
mised and they are adequately rewarded for their contributions.
would enable achieving a smooth rural transformation without
Critical studies are also required to understand the multifunc-
tional nature of agriculture and its significance in protecting
disruptive consequences.
NOTES
2008, there had been more than 1,83,000 Development
suicides and Energy Policy Lessons from
i India's agricultural exports increased due bytofarmers
di- (P Sainath, The Hindu, 12 December
Agricultural Mechanisation in South Asia", ORF
2008),
versification of exports as well as consolidation ofmostly in Maharashtra (72%), Punjab,
Occasional Paper No 19, New Delhi: Observer
Andhra Pradesh, Karnataka, Kerala, TamilResearch
Nadu Foundation.
export markets in the OPEC, the EU, APEC coun-
and Chhattisgarh. A large number of Black,
tries, the US and the UAE (GOI 2010; European theseR,sui-
D Kniveton, R Skeldon, D Coppard, A Murata
cides occurred in low-rainfall, low-irrigation
Commission 2007). Thailand's gain in exports and К Schmidt-Verkerk (2008): "Demographics
parts of
was facilitated by favourable trade policies with these states, especially the Bt cotton
and Climate Change: Future Trends and Their
growing
an emphasis on integration within the Asian re- tracts in Maharashtra and Punjab. Stud-
Policy Implications for Migration", T-27 Working
ies show
gion and increased engagement in FTAs with the that compared to other households,
Paper,sui-
Brighton: Development Research Centre,
ASEAN and the EU (Zamroni 2006). cide-prone households are highly indebted and
University of Sussex.
depend on traders and moneylenders inChand,
a big Ramesh
way (2010): "Understanding the Next Ag-
2 Between 1981 and 2001, the total number of mi-
(Vaidyanathan 2006). For a detailed review of theTransition in the Heartland of Green
ricultural
grant labourers in Punjab more than doubled
major causes and outcomes of the agrarian crisis
Revolution in India" in Gopal В Thapa, P К Viswa-
from 0.87 million to 1.75 million, with an annual
in India, see Reddy and Mishra (2009),nathan,
Padhi Jayant К Routray and Mokbul M Ahmad
average growth rate of 3.55% (Singh et al 2007).
(2009), Barah and Sirohi (2011). (ed.), Agricultural Transition in Asia: Trajectories
3 For instance, GR policies in India mostly benefit-
ed the three major crops of wheat, rice and maize and Challenges (Bangkok: Asian Institute of Tech-
in the Indo-Gangetic plain, comprising the north- nology), pp 65-99.
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January 28, 2012 vol xlvii no 4 1Ш1 Economic & Political WEEKLY
Institutional and Policy Aspects of Punjab
Agriculture: A Smallholder Perspective
SUKHPAL SINGH
1 Introduction
Punjab's agricultur
in crisis. a This pap
small or marginal and they account for just 8% of the
institutions in perp
Only small operated 30% or ofareamarginal
operated (gop 2007;areaSingh,
the (gop agricultural
S 2008a). Small farm-and 2007; they Singh, landholdings account S 2008a). for just in Small Punjab 8% of farm- the are
major initiatives
ers in the state have been moving out of agriculture due to the ta
the phenomenon of "reverse tenancy", leasing out their land to
absence of any
and bigger operators like medium or large holders who have the re-
analyses their
sources and linkages for modern farming or agribusiness. Impor-
smallholder persp
tantly, Punjab is the only state in India where the size of opera-
mechanisms
tional holdings is increasing. This is unlike in other states and the such a
farming
all-India trend of a declining averageand
size in operated holdings. A polici
and recent study shows that during the last decade, 1,28,000 small-
subsidies befor
holders leased out their land to larger holders and operators and
benefit smallholder
opted out of farming. In addition, 72,000 sold their land to larger
of the farm sector.
farmers. Of these 2,00,000 smallholders, about 22% joined the
ranks of agricultural or other labourers (Singh, К et al 2009).
This, in a state where mechanised farming has in general led to
lower labour intensity over the last few decades as most of the
work on the two major crops is carried out with machines such as
paddy transplanters, harvesters and reapers.
Punjab is also where the number and proportion of small-
holdings has been declining over time unlike in the rest of India.
Small and marginal holdings in the state fell by as much as
2,00,000 in the 1990s, adding to the growing concentration of
land in fewer hands. A majority of farmers in the marginal
and small categories (two-thirds) quit farming after 2000. Low
income was the major reason, followed by the small size of land-
holdings and the need to repay debts. Half of those who left farm-
ing had totally or partially sold their land and one-third of those
who sold their land were worse off after leaving farming. In gen-
eral, those who only leased out land were not that badly off
(Singh, К et al 2009).
Suicides by farmers and farm labourers in the state are a mani-
festation of the agrarian crisis in its economic and social dimen-
sions. When farming becomes non-viable, small farmers and
farm labourers who consider selling land or being exposed as
debtors a fate worse than death are pushed into committing
"honour suicides". It is heads of households or earning members
who have been prompted to take this extreme step to save family
honour (Singh, S 2006).
1 .1 Institutions and Development

Institutions and the institutional context are important determi-
Sukhpal Singh
nants of development. There are various terms and concepts used ( sukhpal
Economic Growth, Delh
to refer to this in the literature such as institutions, institutional
Economic & Political weekly iiUàïl January 28, 2012 vol xlvii no 4 51
REVIEW OF RURAL AFFAIRS ==
andinsti-
framework, institutional environment, institutional capacity, are being dried out. One deep tube well will dry up a hundred
around it. The water table has gone far down and this situation will
tutional arrangements and institutional mechanisms. Institutions
lead to social tension. We read every day that 95% of East Punjab's
refer to the "rules of the game" in a society or, more formally, the
development blocks are in the grey area for tube wells... Time has
human-designed constraints that shape social interaction. They
come are
to licence and regulate tube well sinking, including the permis-
made up of formal constraints such as rules and laws and informal
sible depth. All must share fairly, and not take the maximum by means
constraints such as norms of behaviour or codes of conductof and the and power. ...It is very easy in the computer age to monitor
wealth
ways in which they are enforced. As a whole, they define theallincen-

nine lakh tube wells all the time to know the depletion and the
recharge; to be able to plan and administer the fair sharing and use of
tive structure of societies and, more so, economies.
groundwater. ...I would appoint a High Commissioner for Ground
Institutions are different from organisations, the former being
Water Management for Punjab with full scientific staff and powers,
the rules of the game and the latter the players in the game. But only to the Chief Minister... Punjab is not a great agriculture
reporting
both influence each other. Which organisations come up and how
state. It is only a grain-growing factory and factories have lock outs.
they evolve is determined by the institutional frameworkWe are facing one now (Gill 2010).
(rules
There is inequity in groundwater access as smallholders can-
of the game) and they, in turn, influence how the institutional
framework itself evolves. Further, institutional economics also to dig deep or own wells to extract water even if electri-
not afford
differentiates between the institutional environment and institu-
city is free and they end up becoming water buyers. This has
meant
tional mechanisms or arrangements. The former refers that the ratio of returns to cost in wheat and paddy culti-
to the
fundamental political, social and legal ground rules that estab-
vation is low for marginal and small farmers in general and lower
still in groundwater-depleted areas where they have to buy water
lish the basis for production, trade or exchange and distribution.
The latter are arrangements between and among economic unitsprice (Sarkar 2011). Climate change is likely to lead to a
at a high
that govern the ways in which they can compete and/or decline in the yield of wheat and increase the cost of production,
cooperate.
Institutions are embedded in local social and cultural further
systems,affecting their viability (Sidhu et al 2011). Though this is a
leading to "institutional thickness". This refers to their dense
picture of distress, there is adequate evidence to show that small
presence in an area, their strong interactions and their domina-
farms in the state are still more efficient in terms of net return per
unit of land than any other category of farm (Chand et al 2011;
tion due to the high level of interaction and a shared commitment
Gaurav
to a common cause, though all this need not be formal. Suchand
a Mishra 2011).
relationship between regional institutions and local economic
development led to the realisation that there was the3need
Rolefor
of Corporate Farming
policy and public institutions to facilitate a common context of been corporatising its farming sector since the 1990s.
Punjab has
coordination (Neilson and Pritchard 2009). Field Fresh - an equal partnership venture between Bharti Enter-
prises
With this framework in mind, this paper examines the role and
of Rothschild - has acquired 300 acres of land from the
various institutions, organisations and policies in Punjab's
state agri-
government for its model research and development (r&d)
cultural sector. Section 2, which follows, is a discussion of called
farm the Field Fresh Agri Centre of Excellence near Ludhiana.
nature of the crisis in the farm sector, while Section 3 It has also leased 4,000 acres of land and employs the former
examines
the role of the corporate sector and Section 4 that of theowner-cultivators
state, its as farm managers. Fresh fruits and vegetables
agencies and policies. Section 5 briefly comments on the role
from of Fresh are exported to the European Union, Common-
Field
wealth
farmers' unions, and Section 6 concludes the paper with of Independent States (eis) countries, eastern Europe,
policy
south-east Asia and west Asia.
suggestions to benefit smallholders and ensure the sustainability
of the farm sector. The company claims that the livelihoods of its lessors have im-
proved compared to when they were owner-cultivators as it pays a
2 Nature of Crisis in Punjab's Agriculture minimum wage of Rs 80 a day. Thus, a farmer whose land is
The biggest casualty of agricultural development and its inten-
leased by the company gets Rs 15,000 per acre a year as rent and,
if two
sity in Punjab has been groundwater. A very large part of of
thehis family works on the leased out land, Rs 57,600 as
wages. So, a farmer who has leased out two acres can hypo-
state's cultivated area, 97%, is irrigated, 75% with groundwater
from 13.15 lakh tube wells, 80% of them electrically thetically
poweredearn nearly Rs 90,000 a year compared to the Rs 50,000
(Sidhu et al 2011). Of the groundwater blocks in the state, 79%
he would have earned as gross output (without cost deductions) if
are classified as overexploited or critical. Their average annual
he had a wheat and paddy crop cycle, as 77% of the gross cropped
rate of decline was 0.7 to 1.07 metres during the early area in the state has (gop 2008).
1990s
Field
(Chopra and Bathla 2004) and 0.7 to 0.9 metres during the Fresh is also working with other agribusiness firms such
2000s
as Rajtech
(Sidhu et al 2011). Punjab has a tube well for every 9 acres of landAgro Plantations, Jaipur, and Satluj Agriculture, New
(Singh, S 2009b). Delhi, which produce fruits and vegetables on leased land. In
Commenting on the declining water table in the state, 2010, Rajtech leased 200 acres from 17 farmers near Chomu at
M S Gill,
Rs 7,000
former union minister of youth affairs and sports, and formerper acre and was paying Rs 5,000 a month to supervising
secretary, union ministry of agriculture, writes, farmers. The company was paid 17% of the profits made by Field
Fresh on sale of its produce.
Nine lakh shallow tube wells now dangle dry. The rich have started
digging deep, to 300 feet or more, with submersible pumps,Satluj Agriculture leased land at Rs 17,000 per acre for 2.5
to grab
years
the water. The small farmers who predominate cannot afford the with
cost the lessors providing all farm machines and operators.
52 January 28, 2012 vol XLVii no 4 B3S3 Economic & Political weekly
= REVIEW OF RURAL AFFAIRS
Lessors had to have a minimum of 25 acres with a 10 -horsepower

main markets for seed potatoes are West Bengal, Gujarat, Karna-
tube well and they and their sons, if they had a secondary taka, Maharashtra and Madhya Pradesh.
educa-
tion, were employed as managers for Rs 6,000 a month. Earlier,
The transportation via road to Karnataka cost Rs 3 to Rs 4
land was leased in a local large farmer's name without
forany
a bag (50 kilograms) of seed potatoes. Now, members have
written agreement, male and female labourers were paid begun
Rs 85 using
a rail transport and the cost has come down by 67 paise
day and the produce was supplied to Field Fresh. Satluj hadThe procurement prices are fixed; for instance, Rs 234 for a
a bag.
5,000 acres in Fatehgarh Sahib, Sangrur and Jalandhar bagdis-
of Kufri Jyoti. It goes up to Rs 250 a bag after grading, sorting,
tricts. Now, all of it has ceased production because Field cleaning
Fresh and packaging. The price received in Karnataka is about
could not sell the produce and had to be bailed out by another
Rs 1,100 per quintal (100 kg). The association has a contract with
agribusiness company. Haldiram, a snack food company, at the rate of Rs 5 a kg and with
Nijjer Agro, Amritsar, which is into bulk supply of tomato
Pepsi to supply 2% to 3% of its total requirement.
paste to Nestle and vegetables to the National Dairy Develop-
The jpga has begun exporting potatoes to Pakistan in collabo-
ment Board's (nddb) Safal project in Delhi, and many ration
potatowith Markfed (a state-run cooperative) and is in the pro-
kings lease thousands of acres of land in Punjab for corporate
cess of getting GlobalGAP certification for its members for exports
farming. The latter group includes many of the state's so-called
to Europe. Its farms have been prepared for GlobalGAP inspection
progressive farmers, who own more than 50 acres, are educated
with separate bathrooms for labourers, safety signs and storage
and eager to increase their incomes through diversification and for various chemical inputs. Some of them are also
facilities
new technologies. It is important to note that Punjab's average
going organic. The members are confident of dealing with com-
large farmer (8% of the total) is larger than India's averagepetition
large from multinational corporations (mncs) and say that
farmer (1% of the total). They lease large chunks of landthey
fromwill give them a run for their money as they have local con-
non-resident Punjabis and even from local small and marginal
tacts, long experience and a very large scale of operations in a
farmers on reverse tenancy agreements for commercial farming
niche market. They now compete with Chambal Agritech of the
and contract farming. Birla Group, which grows seed potatoes on around 2,000 acres
These wealthy farmers usually own several tractors, tubecontracts and sells Fi seed tubers. The major difference is
under
wells, combine harvesters and other machines for modern farm-
that while the potato kings are mostly cultivators themselves, the
ing. They are keen to see the land ceiling laws relaxed and push relies on contract farming and works with relatively
company
for promotion of agro exports. For them, state support small farmers (Witsoe 2006).
in the
form of contract farming or extension support is a bonus because
The association also produces certified seeds for state and pri-
they would even otherwise have grown the same crops. So, state
vate agencies. Its output of certified seeds in 2008 was 50,000
support in the name of small farmers has been largely misdi-
quintals, while the National Seed Corporation's was 700 quin-
rected because it is large farmers who have cornered the benefits
tals. Its members meet in a hotel in Jalandhar every Friday,
(Witsoe 2006). discuss their common problems and make presentations on their
The potato kings include three families who collectivelyplans
culti-
and activities to potential business partners. They also
vate seed potato on 12,000 acres of leased land and have coldto gain compensation for damaged potato crops and even
agitate
storage facilities that can store their entire produce. The lease is a claim for a legislative assembly seat in 2007. The large
staked
typically for three years through informal contracts as potatoformalfarmers in the state are very aware of the market and do
tenancy laws, designed to protect the interest of small producers,
not find Pepsi's fixed-price contract system attractive. There has
do not permit long leases. The largest of these three recently
potato been a split in the association and an offshoot, the Potato
kings, described locally as the largest seed potato farmerGrowers'
in the Confederation, has been formed under the patronage of
word, built his empire over 20 years and now leases land in state minister of agriculture. The state has set up Potato
a former
dozens of villages. He cultivates 5,500 acres and employs Development
5,000 Board with 11 members and it is by and large domi-
labourers during peak periods, mostly migrant workers natedfromby the potato kings.
Bihar who live in makeshift tents next to the potato fields. They
3.1 Corporate Farming by the State
are recruited through "contractors" and supervised by mangers
specially hired for the purpose (Witsoe 2006). As part of a diversification plan, four special purpose vehicles
The Jalandhar Potato Growers' Association (jpga), which waswere created in the state - the Council for Citrus and Agri
(spvs)
initially organised to protect the interests of relatively Juicing,
small the Organic Farming Council of Punjab (ofcp), the
Council
potato seed growers and later joined by the potato kings, has 125 for Value Added Horticulture and the Viticulture Council
active members and 500 secondary members. The criterion for
of Punjab.
active membership is a landholding of at least 50 acres Set andup in 2006 as a joint venture by Pepsico and the state
secondary membership, less than 50 acres. The jpga is government's
associ- Punjab Agro Foodgrains Corporation (pafc), the
ated with 257 cold storages, in which 70% of the stored potato is for Citrus and Agro Juicing leased land and undertook
Council
seed potato. The members either take land on lease or get into farming to promote horticulture. It had 75 acres
corporate
contract farming arrangements with smaller growers, each ownedoneby the pafc in three locations in the state for growing
working with about 50 to 70 growers. The association provides
citrus saplings, an operation managed by Pepsi. The council also
seeds and extension services free of cost to its members and
leasedthe
2,000 acres at Rs 8,000 to Rs 12,000 an acre for 12 years
Economic & Political weekly вдш January 28, 2012 vol xlvii no 4 53
REVIEW OF RURAL AFFAIRS eeeee
farmers
from farmers and aimed to enhance this to 21,000 acres by 2007 faced related to production and quality (such as that of
to grow citrus fruit varieties imported by Pepsico. Pepsi soldand extension) and not being able to market produce (other
seeds
saplings at Rs 50 each to the pafc and the planted farms than
were peas) in the open market (Dhaliwal et al 2003). There were
managed by the council. However, even as trials at the Punjab
also instances of corruption and malpractice in the programme
Agriculture University (pau) and the horticulture department
due to conflicts of interest among implementing agencies and a
were on, the council invited farmers to offer their lands on lease
lack of monitoring (Singh, M P 2007).
under two schemes spanning six and 12 years. In 2007, reports
For the contract-farming programme to be successful there
of poor fruit retention, incompatibility of rootstocks and ashould
few have been greater attention paid to the selection of
varieties yielding no juice began trickling in from the trial crops,
sites. a quick and effective contract enforcement and dispute
resolution
Following media reports, the council was asked to reduce its system, and mechanisms to limit the number of
parties
land target to 5,000 acres. The government stopped funding it in a contractual arrangement and the fiscal risks
to the
and refused to stand guarantee for loans it planned to raise. It state government. In addition, farmers' organisations
capable of contracting with sponsors with a view to reduce
was instead asked to hunt for a venture capitalist. Even Pepsico,
transaction costs, better information flow and improving
which had by this time grown thousands of plants at its nursery
in Jallowal near Jalandhar, brought in a few new varieties to
farmers' negotiating positions should have been in place (World
Bank
replace the non-performing ones. However, it was too late for 2003, 2004).
farmers who had bit the diversification bait in 2006 and early
More importantly, the programme excluded small farmers in
2007. They alleged breach of contract by the council most
and cases as firms preferred to deal with larger farmer for rea-
demanded their land back so that they could return to growing
sons of transaction costs, eligibility conditions like landholding,
wheat and paddy. While no citrus plantations have come irrigation
up on and education and absence of farmers' collectives.
Table
the lands of most farmers, the varieties grown on the lands of 1, which gives the average profile of contract growers
others have failed. To make matters worse, the farmersacross
have crops and agencies, shows that the contracted farmers
neither been paid their rent in a timely fashion nor has the had average holdings much larger than the average size of a
coun-
cil been monitoring the orchards. holding in the state (9.5 acres). For example, none of the sample
There have also been allegations of funds being misappropri-
contract growers with Frito-Lay had less than 10 acres of land, in
ated and an enquiry into this was initiated by the state govern-
spite of 70% of the holdings in the state being less than 10 acres
(Singh,
ment recently. In addition, two units set up by the council for S 2008a). Another study on the programme found "no
multipurpose juicing at Hoshiarpur and Abohar have beenmarginal
idle farmer (in the size group of below one hectare) ...oper-
for two years and plans are on to privatise them. They failed
ating under contract farming. A handful of small farmers (in the
size group of one to two hectares) were operating" (Kumar
partly because Tropicana stopping buying juice from them when
it found a cheaper alternative (Singh, J 2010a). 2006). Yet another study noted "the majority of the acreage reg-
istered in the project (contract farming by pafc) is held by larger
4 Role of the State
farmers, who tended to receive greater benefits from participa-
tion" (Witsoe
The state and its agencies affect agricultural development in 2006).
many ways by incentivising or disincentivising some activities
Table 1: Crop and Agency-wise Average Size of Holding of Contract Growers in Punjab
over others. In the context of contract farming, it is not just direct
Study and Year Contracting Agency Crop under Average Size Average Area
Contract of Contract under Contract
incentives to agencies and farmers that count, but also the agri-
Grower Holding Crop (%)
cultural policy.
For example, contract farming influences the direction Singh,
of eco- S 2002 Frito Lay (Pepsi) Potato 53 8
logical change through two actors. One, the contractingSingh,
agency S 2002 Nijjer Agro Tomato 22 23
lays down a production schedule for farmers at the farm level. By Singh, S 2002
determining the crop to be grown and the husbandry practices Singh, S 2002
Asokan
farmers have to follow, it influences the effect such farming willand Singh 2006 A M Todd Mint 57
Kumar
have on the environment. The government, as the main source of 2006 Many MNCs and Many crops 37 12
local firms together
conservation measures - advisory, financial and material - is the
Singh, S 2008a Frito Lay (Pepsi) Potato 63 53
second actor. Farmers' access to these measures is, to a large
Singh, S 2008b
extent, determined by government policy. Thus the contracting

Roopam Singh 2008 Frito Lay (Pepsi) Potato 75
agency and the government have a larger role to play in en-
vironmental or ecological change than farmers becauseMarkfed,
they a parastatal agency, placed advertisements in local
occupy "privileged" positions in chain of decision-making chain
newspapers a few years ago asking those willing to grow at least
(Singh, S 2010). three acres of basmati paddy under contract farming to contact
its district managers. The questions which arise from this
4.1 State-Sponsored Contract Farming type of offer are how many small farmers can spare three
A state-sponsored programme for contract farming in acres for basmati paddy? How many can spare it for contract
Punjab,
farming?
which was to divert one million hectares from wheat and paddy And how many would like to spare it for contract
over five years (2002-07), failed to deliver. Most of the problems
farming with Markfed?
54 January 28, 2012 vol XLVii no 4 i и it vi Economic & Political weekly
4.2 Direct Payments to Farmers extended a subsidy of Rs 75,000 for each transplantation ma-
The issue of payments has been around for more than five years chine and farmers who helped fellow farmers with these ma-
with plenty of going back and forth despite that there are no two chines were to get an additional subsidy of Rs 5,000 per acre.
views that sellers of produce should be paid directly by buyers of Two models of Japanese planters are available in the market,
the produce, especially when the buyers are state procurement one that has to be manually moved costs about Rs 2.5 lakh and
agencies. The recommendation for direct payment to farmers the other that is motorised and can be driven costs between Rs 8
by the procurement agencies was made by the state farmers' and Rs 10 lakh.
commission in 2006 and the then Congress government issued a With the help of these machines, about 5 acres can be planted
notification. But due to pressure from the arthiya or commission in a day compared to five persons taking a day to plant one acre.
agent lobby, it was withdrawn and a committee of ministers In the past, transplantation machines were not been very suc-
suggested that since the arthiyas were willing to devise and cessful because farmers were not trained in their use and they
implement a code of conduct, there was no need for any separate were not fully conversant with preparing the "matt nursery"
legislation. In 2010, the Food Corporation of India (fci) began needed by these machines. Besides, machines imported from
to make direct payments but was instructed by the ministry China performed poorly compared to those from Japan. The
of agriculture, on pressure from the state government, to stop agriculture department has also announced an assistance of
doing so. Rs 5,000 per acre to those growing paddy nurseries for mecha-
This issue and debate brings forth the role of interlocking nised transplantation.
factor markets in the state's agricultural sector even so long after Earlier, for three years, the pafc provided a reimbursement of
its so-called commercialisation following the green revolution. Rs 150 per acre to agribusiness companies that provided exten-
Now, 40% of the total debt of farmers in the state is owed to sion services to contract growers in the state. Many companies
arthiyas, of whom there are 33,975 in grain markets and 2,933 in claimed large amounts by just showing lists of farmers they had
fruit and vegetable markets. On an average, each arthiya has lent signed contracts with, which the farmers never knew anything
Rs 46 lakh to farmers. In grain markets, this business is in the about. Johl writes about this, "Another flop case is of Mahindra
hands of 20,232 families, which means that each family owns Shubhlabh entering into a contract with farmers through Punjab
more than one (1.6) licence. An average arthiya serves 120 farm- Agro for the production of maize. They sold the seed, got the
ers across 11 villages. Almost all (90%) farmers are in favour of extension costs, but never visited the farmers and the scheme
direct payments because it will save them from interlocking, failed miserably" (2008). Further, reimbursing extension costs
which leads to higher implicit prices for the inputs bought from irrespective of the size of holdings defeats the purpose as it does
arthiyas and their poor quality. not ensure that small and marginal farmers who cannot afford to
The transaction is conducted through a parchi (slip) system. pay for extension and need to be brought into the contract system
An arthiya gives a slip to a farmer, which he or she can show to are included.
get inputs or groceries on credit from shops or traders, and the Similarly, under the union government's agricultural market-
value of the loans is deducted at the time the farmer's produce is ing infrastructure (ami) scheme for improvement of such infra-
sold. The nature of lobbying by arthiyas has now changed as a structure, 92% of the projects sanctioned and 66% of the subsidy
large number of them come from farming backgrounds and sanctioned was for combine harvesters. Four districts in Punjab
have political clout. Only 35% are from the traditional money- accounted for 60% of these subsidies. Due to this bias, combine
lending and trading Bania caste. More than half (60%) of them harvesters were removed from the scheme in 2006 (nabard
have at least one more business such as farming, selling groceries 2011). How far these machines helped agricultural marketing and
or agricultural inputs and rice shelling (Singh and Dhaliwal how many of these are with smallholders is anybody's guess.
2011). It is argued that this new class of arthiyas has changed the
way the business of moneylending and produce handling is 4.4 PSFC and Organic Farming
conducted as they are more brash also have an eye on land while In 2009, a Punjab State Farmers' Commission (psfc) report on
dealing with farmers. Their increasing lobbying power is re- the feasibility of organic farming in the state concluded that it
flected in that their commission has increased from 1.5% in 1961 was not by and large possible or advisable. The report asked
to 2% during 1990-98 and 2.5% after that though rising produce whether organic farming was more profitable. This question
prices and more arrivals in markets due to higher farm produc- itself was biased - why should one expect organic farming to be
tion in the state would have automatically meant higher incomes more profitable than conventional farming, especially when it
for them (Singh, S 2009c). has many non-business benefits such as improved soil health,
safer food and a better environment? The important question to
4.3 Subsidy to Large Farmers ask was whether conventional farming as it is practised today
The case of electricity subsidy for tube well irrigation in Punjab is was viable only because of subsidies on chemical inputs and the
well known to have led to "the larger getting larger subsidies" minimum support price (msp).
and "the better placed getting better subsidy" (Jain 2006; Sidhu To the extent that there are no subsidies for organic culti-
et al 2011). More recently, the state government announced a sub- vation, the profitability comparison is unfair. It is also difficult to
sidy for farmers for the purchase of transplantation machines. understand how milk, meat or eggs, as recommended by the
Based on recommendations of the farmers' commission, it psfc, can be viable organically but mainstream field crops
Economic & Political weekly ЕЕШ January 28, 2012 vol xlvii no 4 55
cannot small farmers, wherever

be so. and in whatever measure
Ifpossible. Con- orga
Punjab, tract growers' groups can be a way of doing
why is so. The state shouldit bein
encourage such groups and local development
programme with agencies should a s
not organise contract growers into groups for their inclusion in value
questioned?
Though chains
the and for collective negotiations with contracting agencies
report r
and the (Singh, S 2008a).
ecosystem a
role of New institutional mechanisms such as groups, associations,
organic pro
report cooperatives, new generation cooperatives
also asked (ngcs) and other r
organic collectives or networks are needed to reach small and
food marginal
tasted
and safe.producers more Ifeffectively. An ngc is one that has restricted or
food pr
ensure food limited membership, links product delivery
securityrights to producer
had not achieved it even after four decades of chemical-based member equity, raises capital through tradable equity shares
farming (Singh, S 2009a). among members and enforces contractual delivery of produce by
members. It also distributes returns based on patronage, goes for
5 Role of Farmers' Unions value addition through processing or marketing and makes use
of information
Unfortunately, small farmers in Punjab have not been cared for efficiently throughout the vertical system. How-
ever, it retains the one member-one vote principle for major policy
by farmers' unions. On the political side, the farmers' movement
decisions. This kind of restructuring will help cooperatives
is highly fragmented. Fifteen unions now claim to represent
farmers in the state, a total of 10 lakh families, but none tackle problems such as free riding by members, financial
of them
constraintsin
have been able to really represent the interests of smallholders and opportunism, both of members and itself. This
arrangement
policy and practice.1 They also keep dithering between large has helped cooperatives become economically
efficient
issues like world agricultural trade and more immediate issuesand financially viable and able to retain member loyalty
wherever it has been tried.
like free electricity for irrigation or direct payments to producers
for produce bought by state agencies. In addition, non-member procurement and quantity or acreage
contracts
As far as local groups or agencies of small farmers are con- have been used by cooperatives to tackle supply-side
problems. Some cooperatives like those dealing with sapota
cerned, there is a striking absence of any farmers' or producers'
organisations at the village level. Compared to 2.2% of the(chickoo)
farm- in south Gujarat have organised contractual relations
with members
ers in India being members of some agricultural association or for procurement and quality-based grading and
pooling
other and 4.8% of self-help groups (shgs), the corresponding systems. Alongside, they have multiple outlets and effi-
fig-
ures in Punjab were only 0.3% and 1.5% respectively ciently
(Witsoe use market information to achieve better business per-
formance.
2006). This neglect of smallholders is further reinforced by the Similarly, sugar cooperatives in the same region have
been able
absence of non-governmental organisations (ngos) working in to mobilise enough capital by informally trading in
the agricultural sector of the state, save one, the Kheticooperative
Virasat shares that give producers the right to deliver a speci-
Mission (kvm), which promotes ecological sustainability and of sugar cane to it, which is the only way for the crop
fied acreage
natural farming. to access the market. The shares sell at a premium.
The amended Companies (Amendment) Act, 2003 permits
6 Conclusions
the registration of producer companies but there is a lack of
This analysis of the various aspects of farm policy andawareness
practice of
in this. There has also been no support from state
Punjab from a smallholder perspective shows thatagencies
the policy
and ngos to set up such cooperative companies, which
either ignores smallholders or pays lip service to theirmeans there has been no momentum for it (Singh, S 2008b).
concerns.
Smallholders are not organised and farmers' unions have
It is not
ironic that a corporate joint venture with a foreign whole-
saler (Tata-Total
represented their interests separately though everything is said Produce) has been the first and only agency
to be in the name of small farmers. It is important toin Punjab
recall to organise fruit and vegetable producers into
that
Punjab has the largest average size of operational holdings in
producer companies.
India (>4 hectares compared to just about 1 ha in India). This
For sustainability and local economy reasons, regional decision-
makers
results in all farmer unions and bodies being captured in Punjab need to encourage diversification from crops
by large
such as paddy and wheat to high-value crops such as potato,
farmers. The policy bias and lack of representation of smallholder
sunflower,
interest has resulted in corporatisation of the farm sector. Largebasmati and garlic. Most of these consume less water
and are more remunerative though a little more risky and hi-
operators are increasingly taking control of it and manipulating
agricultural policies to their advantage in the name ofFast
tech. small-
depleting groundwater is a very serious problem in the
holders and a farm crisis. The exclusion of smallholders
state.is per-
Drip and sprinkler methods of micro irrigation are being
promoted
petuated through the selection of crops, farmers, farm in Gujarat and Andhra Pradesh by dedicated agencies.
techno-
logies and practices, and market linkage models for Water and resource-saving system of rice intensification (sri)
diversifica-
tion and agricultural growth. practices are also being tried out in many Indian states. But there
aretonospread
Since the corporate interface with growers is going similar efforts in Punjab. Though the central water
across crops and regions, it is important to protect the authority
interestshas
ofrecently proposed a ban on new tube wells and the
the msp. The role of the government should be enabling and

district collector's permission will be required to dig one, this
developmental in nature. Credit support to contract farming
does not favour small producers who still lack access to water for
irrigation. Alternative measures are required and these can beprojects by the state is crucial. State policy, including contract
institutional in nature such as water sharing, public tube wells
farming, needs to be changed in favour of small producers.
and rationing of water. The functioning of regulated markets or agriculture produce
market committees (apmc) needs to be improved to enhance
On the sustainability of resources, though there have been
their cost efficiency, which will help a bigger share of the con-
policy steps to ban burning of crop residue and prevent early
sumer rupee reaching primary producers. The measures needed,
transplanting of paddy, a focus on soil management is missing.
besides the setting up of private markets which the amended
There is also a need to provide for ecological concerns in contract
apmc Act allows, are mandatory adoption of an open auction
farming programmes and policies. This can be done by way of
system, more competition in terms of the number of buyers, pro-
land-use planning based on soil depth and quality, slope of the ter-
vision of better facilities such as cold storages and improving
rain and water availability. It is important to understand previous
land use and make crop rotation mandatory where it is necessary.transparency through enabling farmers' access to market infor-
mation through information and communication technologies. It
In the case of new crops, creating markets and making them
is important to ensure better functioning of these markets
accessible to farmers is essential because they face competition
from traditional cash crops which have an msp. Also, speedy andbecause small farmers still depend on them and because they can
direct payments from government procurement agencies should serve as competitors to contract farming in delivering better
be ensured so that farmers are in a position to take advantage ofvalue to cultivators.
NOTE Kumar, P (2006): "Contract Farming through Agribus- Supply Chains, and Smallholder Farmers (Rome:
i The farmer unions are Bharti Kisan Union Ekta iness Firms and State Corporation: A Case Study in FAO; London: Earthscan Press).
(Ugrahan), Kirti Kisan Union, Bharti Kisan Union Punjab", Economic & Political Weekly, 52 (30), - (2008b): "Producer Companies as New Genera-
Ekta (Dakaunda), Punjab Kisan Sabha, Kirti PP A5367-75. tion Cooperatives", Economic & Political Weekly,
Kisan Sabha Punjab, Punjab Kisan Union, Kisan NABARD (2011): Evaluation Study of Agri-Marketing 43 (20), pp 22-24.
Sangharsh Committee (Kanwalpreet Pannu), Infrastructure Scheme in Punjab, Evaluation - (2009a): "Organic Farming Is Worth It - Farmers'
Jamhoori Kisan Sabha, Bharti Kisan Union (Kran- Study, Punjab RO No 21 (Chandigarh: NABRD Commission Report Illogical", The Tribune,
tikari), Bharti Kisan Union Ekta (Sidhupur), Regional Office). 15 January.
Khetibari Kisan and Vikas Front, Kisan Sangharsh
Neilson, J and В Pritchard (2009): Value Chain Strug- - (2009b): "Punjab de kheti sector da badlada mu-
Committee (Satnam Pannu), Punjab Kisan Sabha, gles - Institutions and Governance in the Planta- handara", Lai Parcham (in Punjabi), 15-17 March-
Bhartiya Kisan Union (Lakhowal) and Bharti tion Districts of South India (Chichester: Wiley- April.
Kisan Union (Rajewal). Blackwell). - (2009c) : "Arthiya system ate faslan di sidhi adayigi
da masla", Lai Parcham (in Punjabi), 26-29 Sep-
Sarkar, A (2011): "Socio-Economic Implications of tember-October.
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Jain, V (2006): "Political Economy of Electricity Sub- cides in Punjab: Some Missing Links", Economic &
sidy - Evidence from Punjab", Economic & Politi- Political Weekly, 41 (30), pp 3330-31. In cases where the email address of the
cal Weekly, 41 (38), pp 4072-80. - (2008a): "Marketing Channels and Their Impli-
author has not been published along with
cations for Smallholder Farmers in India" in
Johl, S S (2008): "Corporates in Agriculture: They
Must Promote Scientific Farming", Tribune, the articles, epw can be contacted for help.
E В McCullough, P L Pingali and К G Stamoulis, The
22 October. Transformation of Agri-food Systems: Globalisation ,
Economic & Political weekly ЕШЭ January 28, 2012 vol xlvii no 4 57
/';-=09 )(8* =-0/']
Khap Panchayats: A Socio-Historical Overview
AJAY KUMAR
Khap pa
dominat mind images of the horrific faces of murdered couples who
These mind marriedmarried
days, images
for loveforor thetheburnt
love ofdwellings
very theof dalit
or horrific
villagers.mention the burnt faces of dwellings khap of murdered panchayats of dalit couples villagers. brings who to
their de
Sections of Indian society and the media have for some time been
to heate
demanding that these panchayats, modern-day avatars of tradi-
how the
tional social assemblies in rural north-western India that were
primarily engaged in resolving disputes and ensuring adherence

resolutio
to custom, be restrained. Characteristically, the government has
influenc
chosen to treat the issue as a law and order problem, rather than
to use
seeking to understand how and why khaps and their decision-k
prompt
making powers came into being and have continued to persist,
notwhich would have conf
made handling the issue in a more prudent
manner possible. For, an understanding of the material basis for
modern
the existence of khap panchayats and the socio-economic context
khap pa
of their decisions are necessary to arrive at appropriate remedies.
that cou
Historically speaking, khap panchayats are very old, with
various scholars tracing their origins to tribal times. Sources of
information on khaps before the advent of feudalism and even
during it are few and far between. But we do know that they
were, by around the 14th and 15th centuries, an informal but
well-established social institution in the Jat-dominated areas
that fall in present-day Haryana, western Uttar Pradesh and

parts of Rajasthan. Broadly speaking, all khaps comprised a
number of villages organised into a council, but they were of
various types. The territory of some khaps was dominated by a
single gotra (clan) of a particular caste that had control over most
of its agricultural land. People of other gotras and castes also
lived in these villages, but they were fewer in number and held
far less land. Other khaps consisted of entire villages dominated
by a single caste, but some of its villages had various gotras. Yet
others were multi-caste and multi-gotra, with some villages
dominated by a particular caste and other villages by other
castes, all of different gotras (Sangwan 2008).
As can be gathered from this, there was (and still is) no hard
and fast rule that covered all khaps, which, in the course of evolv-
ing in different geographical areas took forms shaped by a range
of socio-economic factors. Of these, other than the kinship tie of
clan, the two most important were caste and ownership of land.
In structure and functioning, khap panchayats were "participa-
Thistory" in spirit and served as public forums where differences
articl
could be sorted out by direct negotiated
paper "Kh settlements between
seminar
both parties without wasting too much time or money. They also "
organised
acted to enforce a measure of social control if the traditional moral
September
code of conduct was violated. Decisions taken by them were bind-
who did h
ing on all members, and on the rare occasions a party desired a
Ajay Kum
review, it could approach the sarv-khap (all-khap), a higher
Bharatiya
assembly of representatives from all neighbouring khaps in a
Economic & Political weekly 13353 January 28, 2012 vol xlvii no 4 59
locality. The relative ease and speed with which justice was dis- that time, the community was pastoral and its social structure was
pensed and the sense of solidarity and support that villages and egalitarian or semi-egalitarian. Writing of pastoralist societies,
communities provided to families gave khaps a firm social standing. Thapar says,
Of course, given the strong hold patriarchy had on all aspects of The family formed the core and patrilineal descent was often traced
society, women played no part in khap deliberations. The position from a common ancestor. Kinship, whether actual or active, was
of the lower castes and the scheduled castes was no different. essential to identity and to loyalty, with a premium on the latter. This
ensured the coherence of the larger unit, the clan, which because of
As we shall see, khaps and their authority were made use of for
constant movement would otherwise tend to get dispersed. The clan
various purposes by political overlords, including the Mughals was relatively egalitarian with a sharing of the produce, although a
and the British, and this also benefited those at the helm of khap better and bigger share was collected by the chief. A group of clans
affairs. With independence, a democracy based on secular princi- constituted what have been called tribes, although this word can cover
diverse forms of social groups (2008: 85).
ples, courts and the principle of the rule of law, khaps ought to
have faded away, but an asymmetrical pattern of landownership In all probability, these characteristics existed among the Jats
combined with a potent mix of caste, customs and patrilineal as well. Most of the Jats arriving in Haryana settled in the bangar
norms of inheritance, to name only a few, have ensured their area, a dry region with insufficient rainfall that now falls in Rohtak,
survival in many rural areas. Their main beneficiaries at present Sonipat, Panipat, Karnal, Jhajjar, Bhiwani, Jind, Kaithal and Hisar
appear to be the well-to-do, who fear for their material assets, districts.1 There was also no river in this sparsely populated region,
social standing and privileges. Unlike helping to maintain social making the means of turning it into cultivable land through irri-
order as they did, they now act as important agencies of social gation very limited. People belonging to each clan settled in vil-
control. Wielding the concept of bhaichara (brotherhood) andlages whose borders had been demarcated on the basis of gotras.
traditional values, which socio-economic circumstances of an The Malmul, Khilji, Tughlaq, Sayyid and Lodi dynasties of Tur-
earlier time may have justified, but in many ways are outdatedkic origin assuming power in Delhi between the 13th and 16th
now, they have attracted widespread attention by opposing lovecenturies paved the way for the introduction of rahats, or Persian
affairs and marriages if they involve members of the same gotra wheels. Here, bulls turned a drive in a circular motion to lift a
or different castes. This not only goes against the law of the land, chain of iron pots filled with water from a well. The pots were
but also individual and human rights. emptied out on a spillway that carried the water to fields. This
To put it briefly, khap panchayats uphold the concept of bhai- acted as a catalyst in the transformation of Jat pastoralists to
chara on a gotra, caste or territorial basis. This system supportsagricultural peasants (Habib 2006: 31). The Delhi sultanate's
gotra, village and khap exogamy but caste endogamy. Khaps Muhammad Bin Tughlaq (1325-1351) was the first ruler to set up a
oppose marriages between those who are related by blood and department of agriculture, introduce the rotation of crops, estab-
those who belong to the same gotra because all males and females lish state farms and improve artificial irrigation by constructing
of a clan are regarded as brothers and sisters. Marriages between four canals in Haryana. The Western Yamuna Canal of this period
members of different gotras are also forbidden if the man and created better conditions for cultivation in the region and greatly
woman belong to the same village or physically adjoining villages. increased the prospects of pushing up productivity. Various
Needless to say, inter-caste marriages are strictly taboo. If gotras of Jats settled in and around the canal, bringing with them
prospective brides and grooms or couples who have married in their clan-based khaps.
secret decline to comply with the diktat of a khap, it imposes a During the time of the sultanate (1206-1526), the Jats gradu-
social boycott of the lovers or couples and their families. It canally became agricultural cultivators and their clan-based social
also excommunicate them from their caste and clan or even from institutions with tribal roots merged with the caste-based feudal
their village or khap. However, what has captured headlines in social system that prevailed in what is today Haryana, Punjab
recent times is the violence that has been unleashed on young and parts of Uttar Pradesh and Rajasthan. What has to be noted
men and women by their families or communities in the name of is that the pastoral Jat settlers were not transformed into an
khap verdicts that have taken them to task. agrarian, caste-based feudal society in the course of a long proc-
This paper is an attempt to outline the basis on which khap ess in which their gotra-based institutions were eroded. Instead,
panchayats existed in Jat villages in north-western India and, to they adapted to the relatively advanced land revenue and caste -
a large extent, continue to do so. Further, it looks into the causes based feudal system of their new habitat with their social institu-
that prompt khaps to interfere in marriages they disapprove of, tions based on kinship intact. Thus, the gotra-based institutions
which has even indirectly led to the murder of several young of the khap and sarv-khap continued to survive and coexist with
people for not complying with the norms of a particular morality. a feudal social and political structure (Chandra 2007). What has
It also interrogates the modern state's failure to put a leash on the to be also noted is that though the khap system was unbroken,
unwritten powers that khap panchayats still seem to enjoy. the region's caste system had a lasting influence on it.
Being close to Delhi, the political capital of the Sultans and
Medieval Period: Transformation in Jat Society later the Mughal rulers, land revenue in most of the Jat areas was
and Character of Khaps collected directly by royal officials under the supervision of a
The Jats who now inhabit Haryana, Punjab and western Uttar central authority (Moreland 1963). In time, a section of Jats
Pradesh reached the region between the Sutlej and the Yamuna became a part of the revenue collection mechanism when they
rivers in the nth century after being displaced from Sindh. At were employed in the posts of chaudhris and muqaddams in
60 January 28, 2012 vol XLVii no 4 EE3S3 Economic & Political weekly
parganas and villages largely changed from social
respectively. Thereinstitutionsused
of an egalitarian
to com-be ю to
in a pargana, a revenue unit
munity introduced
to instruments by the
used by big landlords to maintain the
status Delhi
Chaudhris and muqaddams usually
quo in agrarian belonged
relations so that to
their interests were served. gotras
that were dominant or in a majority in a particular
received a fixed amount British
from Colonialism:
the Newrevenue
Administrative System
collected as
The Mughal empire and Khaps
began its long sway in 1526 and it
the height of its powersThe
inBritish
the East India
late Company
17th inaugurated
and colonial
earlyrule in 18th
Though it technically Haryana, Punjab
lasted until and Uttar
1857,Pradesh by taking Mughal
the over the right to dyna
period was between Akbar's ascension
collect land revenue in in1556
from the Mughal emperor and
1803. The British Au
death in 1707, after which a did
mahalwari system period of
not bring about decline
any fundamental change bega
emperors lost effective inpower
the lower stratum
toof thethe
land revenue collection mechanism.
British East India
after the Battle of Revenue
Buxar in continued
1764. to be collected
Emperor in the villages Akbar
through the (1556
ganised the empire into subahs,
muqaddams, which
who later came were
to be called lambardars further
or nambardars.
into sarkars, roughly the equivalent
The pargana of
system was transformed into the today's
zaildar system and distri
themselves consisted of the post of chaudhri was replaced
parganas. In the by the zaildar.
Mughal The posts of system
served as the local administrative units of a sarkar. Most of the lambardars and zaildars continued to be filled by the government
from the dominant gotra and caste in an area and they were
Haryana region was within the Delhi subah during the Mughal
era. Jats were employed as chaudhris in 35% of the parganas
invariably from wealthy and influential families.
under the Delhi sarkar, encompassing Rohtak, Sonipat and Zails were demarcated according to khap areas and each zail
Chaproli. Under the Hissar-e-Firoza sarkar that included Agroha,had only one khap (or clan, as the British called them). Settle-
Hisar, Fatehabad, Gohana and Hansi, Jats were employed in
ment officers sometimes even had to change their proposed divi-
74% of the parganas for collecting land revenue. They were also
sions while framing zails to avoid clubbing villages with different
khap loyalties together (Ibbetson 2008). The zaildar was some-
employed as chaudhris in 25% of the parganas under the Rewari
sarkar, which included Pataudi, Bawal and Rewari, and that of
one handpicked by the deputy commissioner from the khap after
33% of the parganas under Sarhind sarkar, which included
consideration of gotra or caste ties, local influence, extent of
Thanesar and Khijrabad.2 landholding, services rendered to the state by him or his family,
Thus the tribal egalitarian society of the Jats during the pastoraland lastly personal character and ability.6 The position was quite
stage disappeared by the time of the Mughals. As part of a feudal
important as it extended the influence of the colonial state right
into the villages. Zaildars and lambardars were not merely
society, it became stratified and was divided into various classes
revenue collectors, but also played major roles within khaps and
of landlords and peasants. The dominant class of Jats who emerged
as chaudhris and muqaddams became still larger owners of land
this made them doubly valuable to the colonial regime. In other
using the influence of their official position. This class also began
words, the British successfully co-opted influential sections of the
playing important roles in the khaps by wielding the weight that
Jats who had prominent positions in khaps. This probably was a
property and proximity to political power gave them. Akbar
reason why khaps did not play a significant role in the freedom
reportedly even elevated some sarv-khap members to the status
struggle even though there were sharp increases in land revenue
and famines in the pre-independence period.
of ministers to integrate the Jat community into his empire.3
While khaps were used by Jat landlords to make bargains and This influential section of Jats also consolidated their hold over
land with the land settlement legislations introduced during
compromises with the Mughal rulers to maintain or strengthen
their role as intermediaries in the land revenue system,4 they British rule.7 During the 19th century, "there was an abundance
were also used to maintain control over the artisan classes, ten-
of land and a scarcity of cultivators" (Ibbetson 1883) but the
ants and castes in menial occupations. Village administrators
tenants were dalits or backward caste members who were deprived
connected to khaps used to collect a hearth tax from the peasantownership of land. They were forced to take up sharecropping
on the fields of the landlords, to work as bonded labourers
classes considered below them as additional revenue.5 Khaps
were also used to control Jat peasants from other gotras who( siri-sanjhi ) and to supply the means and tools of production.
were invited to villages to till fallow land. These tenants were not
Using the strength inherent in khaps, the landlords also crushed
given the right to intervene in matters of village management
the aspiration of the kamera (partial cultivator) class and tenants
and their right over land had only a subordinate status (Ibbetsonof other castes to acquire a proprietary right on land. Even after
1883). Much later, the ruling class character of the Jat landlordsthe establishment of a "modern" state based on the rule of law
appointed as chaudhris was in evidence when they pleaded with
during the colonial period, khaps remained a parallel sociopolitical
the emperor in Delhi to crush a rebellion of landless peasants,authority that served as a means for its influential leaders to
tenants, artisans and merchants demanding land redistribution
consolidate their social and political status.
led by Banda Singh Bahadur (1670-1716) (Singh 2006). Churaman
Post-1947:
of Mathura, a powerful Jat leader who had himself rose to promi- Socio-economic Changes and Khaps
nence by opposing the Mughals with the help of khaps, went to
The situation did not change much in Haryana, Punjab and western
the extent of becoming a part of the Mughal army to quell Banda's
Uttar Pradesh after Independence in 1947. The hold of big land-
rebellion. It is safe to say that khaps had by the 18th century
lords over land remained unaltered and the various attempts at
land reform Sonipat,

made Rewari and Bawal became
by full-fledgedstate
centres for gov
effective. The state
industrial production and the service sector. legislativ
This process, which
dragged rapidlyfeet
their gained momentum with when
liberalisation, privatisation and it cam
on globalisation becoming watchwords,
landholding, partly has seen New Delhi's beca
become the people's
hinterland represen
become the nerve centre of foreign corporations and
land Indian big business.
redistribution did not em
apart from the Mujhara
Due to agriculture holding no attraction and the expansion of mo
Sirsa and Bhiwani districts9
new sectors of production, the youth in Haryana and western
leadership Uttar Pradesh
of the has begun to become
Laal a part of new production
Jhanda
Narwana and Yamuna
relations. Nagar.
They see traditional customs and norms as serving the
The demand for
interests land
of a rich agrarian section was
that continues to thrive among (an
where khaps the remnants of a feudal society.
were This amounts to challenging
strongly or
been some efforts
exploitative agrarian relations andby
the caste system dalits
nurtured by to
reserved for it, which, in turn, prompts the landlord class
them10 but to use khaps to these
an organisedmaintain
way these orthodox sourcesto the
of their strength. It also implies grass
place in the pattern of
new vigour for the strict control over society's landow
matrimonial rela-
after the tions exercised by landowning
green castes through khaps. One must
revolution.11
ment of productive forces
not forget that besides big landlords, peasants from the Jat com- in t
mental change came
munity in Haryana about
have time and again benefited from the sup- in
Nevertheless, the
port of khaps. opening
Khaps played an important role in the peasants' of
services has movements
created of Kandela, Adampur and Nisingh
new led by the oppo
part of the so-called
Bharatiya lower
Kisan Union and it was their active participation that c
productive sectors, developin
made Jat peasant activism in the state militant and extensive. So,
dignity as a apart from serving Jat landlords,
result of khaps have looked to the inter-
working
public ests ofThey
sector. Jat peasants, which also ensures that this class readily
realise the
to live a life accepts their decisions.
of dignity This has been an important factor in not
and sel
identities. This consciousness
only the survival of the institution, but also its continuing power.
labourers and poor peasants w
face Agrarian Relations, Marriages
exploitation and and Role of Khaps
extra-ec
now raising The expectation that customary
their conjugal rules and regulations
voice against
ination and begar (obligatory
will be upheld is common to all castes and communities in India.
impediments in
Women extracting
who produced legitimate heirs were essential to caste an
But in places where
and gotra-based the
societies and restrictions were imposed on them land
gotras, castes or
to control communities
their sexuality and reproduction. To maintain familial
tain control rights
over the
over property, keep property within a particularexploit
caste, and
trating caste-based
reproduce the production relations that had social
been established bo
claim their
legitimate rights.
on the basis of the caste system, rules and customs related to
in Harsola in Kaithal
marriage district
were not only promulgated, but also strictly enforced.
district (2004), Gohana
Those who violated them were punished by biradari panchayats in So
Karnal (informal caste (2007)
district councils) that had members of only
and one caste Mir
fallouts of this.
or khap panchayats, which were usually better organised and
The agricultural
more powerful. sector in Pu
parts of Rajasthan found
In the Jat community, inter-caste marriages were, and still are, itself
the green revolution. New
not permitted and the degree of punishment varies for those who tec
big way meant
do so. For, marriages
thatof Jat women to lower-caste
input men would co
ants with small
elevate the social statusor medium
of the lower caste, coming in the way of l
rers, who did not
continuing hesitate
caste-based exploitation in agrarian relations. This to t
was due to them,
concern is reflected in the Jat and
saying Yeh dhed mahrethis
jamai ban lan
big landlords. In
jiyange. Mhari addition,
gelya khat pe bethiya karenge (These dalits will th
the become our sons-in-law.
consequences of They will sitbeing
with us on our charpais close
The special economic zones
[string cots] as equals). Here, being compelled to treat dalit rela- in
reforms led to
tives speculation
as equals makes no social or economic sense. However, if a fl
Peasants Jat man marries a woman
already caughtfrom a lower caste, he does not attract
in the
escape indebtedness but
severe censure from his khap and many Jat men now get married most
source of livelihood.
to lower-caste women from Himachal Pradesh, MadhyaEven Pradesh, a
Haryana, places such
Jharkhand, and so on because as
the sex ratio (males to females) in Gur
62 January 28, 2012 vol XLVii no 4 [3323 Economic & Political weekly
Haryana is highly skewed. These inter-caste marriages do not February 2010 because of bhaichara between their gotras in
raise a hue and cry because there is no possibility of a change in the Kheri village of Rohtak district was presided over by former Chief
status of the bride's family and subsequently that of her caste Minister Hukum Singh. The police and the administrative ma-
members - in a patriarchal society, the bride's family always has chinery also tend to stand by the perpetrators against the victims
a lower status. or at best play the role of mute spectators in cases of inter-caste
Another reason for the prohibition on inter-caste marriages marriage, violence on women and caste atrocities. It was so when
could be the fear that Jat women married to lower-caste men violence was unleashed on dalits in Mirchpur in April 2010,
could claim a right to inherited property under the Hindu Mar-
which continued a tale of atrocities against them in recent times
such as in Dulina in 2002, Horsala in 2003, Gohana in 2005 and
riage Act, 1955, and Hindu Succession Act, 1956, which recognise
Salwan in 2007.
the legal rights of daughters to ancestral property. In this case,
the property of Jat women's families would be accessible to mem-
The Way Forward
bers of their husbands' lower-caste families, giving them an equal
status both socially and economically. The marriage of Jat men
One way of deterring khaps from taking the law into their own
hands at times and pronouncing decisions that instigate blood-
from minority gotras in a village or locality to women from domi-
shed
nant and majority Jat gotras in other villages is also opposed. A could be clipping the wings of the class that ensures the
survival of this institution and uses it in their own interest.
majority gotra administers a village and owns most of its land,
always treating tenants and craftsmen who come from outsideStatistics
as tell us that dalits constitute 19.5% of the population
in aHaryana. According to the agricultural census of 2005-06, of
its inferiors. If men from a minority gotra marry women from
majority gotra elsewhere, it could raise their social standing,
the 16,03,267 agricultural landholdings in the state, dalits had
even taking some shine off the prestige and status of chaudhrismerely
in 33,055, which was only 2.06% of the total. Of the total
their village. cultivable area of 35,83,297 hectares, they had a minuscule
It is worth noting that these restrictions are followed to the 44,620
let- hectares, which was a measly 1.24%. Of the total opera-
tional holdings in the state, 67% were below two hectares,
ter only in areas where khaps dominate. In places outside their
owned by small peasants. The peasants whose cultivable land
influence, marriages take place within the same village and even
within same gotras. For instance, hundreds of marriages have been
was less than one hectare were 47.67% of the total peasantry and
solemnised between members of families in Haryana's Chautala
their land added up to only 3,46,118 hectares. But plots of more
village, where Indian National Lok Dal leader Om Prakash
than 20 acres, just 5.58% of total landholdings, totalled a humon-
Chautala, who fully supports the role of khaps, is from.12 This
gous 11,50,488 hectares, which was 32.1% of the cultivable land
in the state.15
makes it apparent that marriage restrictions are today often
selectively and arbitrarily imposed to maintain the dominance ofIdeally, a way should be found to redistribute much of the land
one gotra or another or a particular caste or community in a
owned by big landlords among agricultural labourers and poor
village or a region. peasants after putting in place a mechanism for collective farm-
ing. Property relations in the state would obviously change for
Relation between Khaps and Modern State the better if unreasonably large landholdings are broken up. In
Jats constitute about 25% of Haryana's population13 and this addition, the norms and customs now prevailing in rural socie-
ties would undergo a positive change, while the caste system
gives them a decisive voice in electoral politics. Politicians from
among the big Jat landlords occupy important ministerial posts would be transformed when landless and poor peasants, a major-
in every government in the state and they have been eager to ity
put of them dalits and from other oppressed castes, become land-
owners. It would also hopefully mean an end to unnecessary
a stamp of approval on the diktats of khap panchayats. In 2004,
interference in the matrimonial plans of individuals in love.
former chief minister Chautala said, "Whatever decision the pan-
However, one can expect little support among leaders of various
chayats take is correct."14 Present Chief Minister Bhupinder Singh
Hooda has said khaps are social institutions and steps taken in a
political parties for the idea of redistributing land on a massive
hurry to curb them will have dangerous effects on the law and
scale. Agricultural labourers and poor peasants would them-
order situation in the state. He has also openly opposed mar-
selves have to launch a movement calling for a redistribution of
riages from the same gotra. More moderately, industrialist and
land to the labouring classes of society, no matter what caste they
Kurukshetra Member of Parliament Naveen Jindal has demanded
belong to. Such a struggle would build a unity of purpose and
amendment of the Hindu Marriage Act, 1955 to include same-
social alliance among the poor and deprived that could take the
gotra marriages in the category of prohibited relationships place
for of the present caste and khap-based social system.
Jats of Haryana so that community norms can be enforced
The spread of education, the recognition of individual rights,
through means other than life-threatening forms of coercion. adult franchise, the introduction of panchayati raj institutions at
The power of khap panchayats exists parallel to the political
village, block and district levels, state and parliamentary elec-
power of the state government. Be it the Gohana massacretions,in urbanisation, economic independence and other such fac-
2005 or the Dulina killings in 2002, politicians have directlytors
or have provided opportunities for individuals to come out of
indirectly supported khaps, some of them even presiding over
the traditional khap system and the moral ideology of bhaichara.
khap panchayats. The Beniwal khap panchayat that annulled At
thethe same time, the other side of the coin shows that a good
three-year-old marriage of Satish Berwal and Kavita Beniwalmany
in villagers still feel that khap panchayats take decisions on
Economic & Political weekly [3323 January 28, 2012 vol xlvii no 4 63
the basis of moral values, traditions and customs that are com-
whose identities are rooted to their villages, castes or gotras and
tied
mon to them. They see the concept of bhaichara at the to traditional
village and norms and customs. If we are to make the
informal
khap levels as a factor that maintains solidarity and rural dispute resolution system of khap panchayats
provides
them with a measure of social support, something the
moremodern
rational, impartial and effective, we have to think of ways
state has so far failed to do. They also consider the ease
to and
involve
sim-villagers in such a manner that they also acquire some
legal knowledge
plicity of dealing with khap panchayats and the promptness with and an understanding of human rights. In addi-
tion,of
which decisions they can understand are delivered free it cost
is necessary to wage awareness campaigns against
anachronous
preferable to the time-consuming and very expensive process ofand unscientific notions such as "inter-caste mar-
fighting for justice in a court of law (Sangwan 2008). riages lead to the pollution of blood" and "intra-gotra marriages
These two perspectives seem an outcome of theresult
paradox,
in children with genetic deformities". There is also a need
development in modern India presents. On one hand,
to we
render
havemoral and material support to those who have need-
independent individuals with rights, education, thelessly
means and because of khap decisions or the violence that has
suffered
followed
opportunities to pursue their goals. On the other, we have them.
people
NOTES
Proceeding: Punjab History Conference, 30th ses- Gill, Succha Singh, ed. (2001): Land Reforms in India,
sion, Punjabi University, Patiala, p 151. Vol 6 (New Delhi, Sage).
1 In Haryana, Jats are divided into three categories:
Deswali, Pacchede and Bagri. It is said10 that
According
the to the Village Common Land Act, one- Habib, Irfan ed. (2006) Madyakalin Bharat, Vol 1
Deswali are the oldest Jat clans to have settled in third of the village land in Haryana under the (New Delhi: Rajkamal Publishers).
the region, followed by Pacchede Jat clans. The supervision of panchayats is reserved for dalits.Ibbetson, Denzil Charles Jelf (1883): Report of the
Bagri Jats migrated much later and settled in plac- This land is leased out through auctions that take Revision of Settlement of the Panipat Tahsil and
es such as Sirsa and Hisar. Among the Bagri Jats, place in the presence of government officials Karnal Pargana of Karnal District, 1872-80
the khap system is weaker than among the Deswa- every year for a period of one year. However, big (Allahabad: Pioneer Press).
li and Pacchede. See Ibbetson (2008: 126). landlords still maintain a stranglehold on most of - (2008) : Panjab Castes (Delhi: Low Price Publications) .
the panchayat lands through devious means. SeeMoreland, W H (1963): Muslim Bharat Mein Graminh
2 In Jigar Mohammad's "The Jat Zamindars of the
К Gopal Aiyyer, "Land Reforms in Punjab and Vyavastha, History Publication Institute, Allahabad.
Subah of Agra, Delhi and Punjab Region in Ain-e-
Haryana: An Empirical Study" in Gill (2001: 82).
Akbar", it is mentioned that Jats were employed Purser, W E and H С Fanshawe (1880): Report of the
as tax collection officers in the eight sarkars in the 11 In Haryana, the pattern of landownership has not Revised Land Revenue Settlement of Rohtak Dis-
Delhi region. See Singh (2005: 80). fundamentally changed even after the green rev- trict of the Hisar Division in the Punjab , 1873-79,
olution and land ceilings and this plays a decisive Lahore: W Ball Printers.
3 See http://www.jadand.com/home/Khap. Accessed
on 24 November 2011.
role in determining production relations. See
Sangwan, К S (2008): "Khap Panchayats in Haryana:
Varma (1998: 4).
4 "The Intensity of Peasant Movement in Braj Region Sites of Legal Pluralism" in Kalpana Kannabiran
12 See Ajay Prakash, Khap Ko Chunavti Dete Gaon at and Ranbir Singh (ed.), Challenging the Rule(s) of
between 1686-1695" by Vir Singh throws light on
the relation between the Jat movement and http://www.janatantra.c0m/news/2010/06/01/ Law: Colonialism, Criminology and Human Rights
villages-challenging-to-khaps/, accessed on 24 in India (Sage: New Delhi).
khaps. See Singh (2005: 121).
November 2011.
5 There used to be four classes of peasants in Hary- Sharma, M L and R К Punia, ed. (1989): Land Reform
13 Report of the Backward Class Commission, Harya- in India (Delhi: Ajanta Publications).
ana: Raiyat, Pahi, Kamera and Kamin. The own-
na, 1990; according to figures given by the Gur-
ership of village land was with the Raiyats, who Singh, Chattar (2004): Social and Economic Change in
nam Singh Commission.
were generally believed to be the successors of Haryana (New Delhi: National Book Organisation).
the peasant groups that established villages. 14 See Bhupendra Yadav, "Khap Panchayats: Steal- Singh, Ganda (2006): The Life of Banda Singh Bahadur
This
group considered themselves to be superior to theing Freedom?", Vol 44, No 52, Economic & Political
(Patiala, Punjabi University).
other inhabitants of the village. See Purser and Weekly, p 18.
Singh, Vir, ed. (2005): The Jats: Their Role and Contri-
Fanshawe (1880: 29); Singh (2004: 116). 15 See Agriculture Census 2005-06 at http://agcen-
bution to the Socio-Economic Life and Polity of the
6 In 1879, seven zaildars were appointed in Gohana, sus.nic.in/cendata/StateTitablei.aspx. North and North-West India, Vol 2 (Delhi: Low
10 each in Rohtak and Sampla, and 11 in Jhajjar. Price Publication).
On an average, there were 12 villages in every Thapar, Romila (2008): Poorvkalin Bharat (Delhi:
REFERENCES
zail. To whatever extent possible, zail boundaries University of Delhi).
were drawn according to the settlement pattern
Chandra, Satish (2007): Madayakalin Bharat me Itihas
Varma, Satyam (Hindi trans) (1998): Shanghai Political
of tribes. See Purser and Fanshawe (1880: 151). Lakhan, Dharm, aur Rajay ki Prakariti (Delhi:
Economy Textbook, Part I (Lucknow: Rahul
7 Tenant cultivators were displaced land in large
Granth Shilpi Prakashan). Foundation).
numbers after the implementation of the Punjab
Tenancy Act in 1868 so that they could not claim
any right over the land they were on. To show
themselves to be the real cultivators, landowners
registered very few tenants in the official govern-
ment registry. Tenants were then allowed to culti- REVIEW OF LABOUR
vate only on a yearly basis. According to the deputy
collector of Sirsa, this law was promulgated to safe-
May 28, 2011
guard the interests of tenant cultivators. However,
its result was the opposite with the Tenancy Act
only making the condition of the tenants more vul-
Global Crises, Welfare Provision and Coping
nerable while strengthening the position of those Strategies of Labour in Tiruppur - M Vijayobaskar
whose land they used. The courts and legal provi-
Extending the Coverage of Minimum Wages in India:
sions also could not prevent the tenants from get-
ting dispossessed of their lands with landlords as-Simulations from Household Data - Patrick Belser, Uma Rani
serting their legal rights. See Singh (2004: 128-35).
Labour and Employment under Globalisation:
8 According to statistical data of the Haryana Rev-
enue Department in 1986, a total of 3,82,044The Case of Gujarat - Indira Hirway, Neha Shah
acres of land was declared to be in excess of the
Impact of the Economic Crisis on Workers
land ceiling. Of this, only 1,36,883 acres were
made available for redistribution; that is, only in the Unorganised Sector in Rajasthan - 5 Mohanakumar, Surjit Sin
1.21% of the total agricultural land in the state. A
mere 1,23,295 acres were actually distributed, For copies write to: Circulation Manager,
which was no more than 1.15%. See Sharma and Economic and Political Weekly,
Punia (1989: 330).
320-321, A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 01
9 See Jugal Kishore Gupta, "The Tenancy Agitation
email: circulation@epw.in
in the Hissar District of the Erstwhile Punjab",
64 January 28, 2012 vol xlvii no 4 B3S3 Economic & Political WEEKLY
Rural Water Access: Governance and Contestation
in a Semi-Arid Watershed in Udaipur, Rajasthan
N С NARAYANAN, LALITHA KAMATH
1 Introduction
A significant focus of policy
devolve decision-making an
in areas ranging from irrigation and watershed management
systems to the community l
In to in theto drinking
areas drinking
waterlasthaveranging
exhibitedtwoa water
convergence
decades,towards
from have irrigation a number exhibited and of policies a watershed convergence and management programmes towards
study of a minor
managing water use through decentralised local community irrigation p
Udaipur district
institutions. This is in contrast to the conventional understanding of Rajasthan
people in of supply-side provision of water serviceswatershed
the by the state. In canal are
irrigation, the shift to participatory irrigation management (pim)
and there are serious inequal
was to enhance the role and responsibility of local communities
water within
in managing canals at the tertiaryand
level, bring in greater commu- between v
both the social
nity ownership of the infrastructure and make the stateand
more spatial di
access accountable. The role of the state was still paramount but with It
water. to also focus
the community being included on specific and (state) defined
arrangements and highlights
terms. Water users' associations (wuas) were therefore intro-
the delegation
duced in various forms in different states of ofIndia and they are managemen
communities.
not only meant to be governedThese
and controlled by the people who reflect t
local pay for services, receive benefits and manage the infrastructure,
governance institutions
but also provide an institutional structure that delivers the ser-
political economy.
vices that a public authority would with participation and decen-
tralisation as concurrent elements (Cullet and Roopa 2009).
The challenge to large-scale, state-led irrigation systems of
storage and transmission with their social and environmental
impacts came from various quarters (Dharmadhikary 2005). The
distribution of water resources from dams among different stake-
holders (Chowdhury et al 1997) is problematic with costs and
benefits unequally accruing to various sections of society, which
leads to conflicts (Phadke and Patankar 2006; wcd 2000). Suc-
cessful experiments have proved that decentralised, small sur-
face storage structures are not only effective but also scalable.1
The equity rationale has provided the basis for a number of at-
The study was done
tempts, such as the Sukhomajri and Pani panchayat experiments,as part of the W
and Nature", jointly organised by W
which have met with different degrees of success, both in terms
Indian Institute of Technology Bomb
and Foundation for
of provision of water rights and ensuring and converting the
Ecological Secur
International endowment into entitlements (Sangameshwaran 2006; Apte
Scholars Academy at th
FES for making2001; Patii 2000)
it . Such an understanding ofpossible
water resources to undert
Puppala, DimpledevelopmentKumari
focuses on the limited supply of water and manag- and Se Yash
thank Subodh Wagle and Gautam Y
ing demand to fit supply, therefore arguing for a shift from large
possible and are grateful to all the p
University, IIT-B,
storage to primary and local water harvesting
p TISS
structures and and FES, in
Vivek Vishal watershed development programmes (Iyer 2003).
Singh, Nikhil George,
Seema Ravandale, Watershed development offers aLalit
way out of stagnation and Chakma, Ma
Sara E Edgar and
degradation for areas that economicMolly
development seem to have Srichamroe
N С Narayanan bypassed,
( typically ncn@iitb.ac.in
in drylands and semi-arid and arid regions ) is a
Alternatives for
perpetually under theRural
shadow of drought (Shah et al 1998). Ex- Areas, IIT Bo
gmail.com) is at
periments ofthe
locally managed systems in rainfed areas prompted School of Habita
Sciences, Mumbai.
policy from the mid-1990s to focus on a greater allocation of
Economic & Political weekly ЕЖЗ January 28, 2012 vol xlvii no 4 65
funds for the development of rainfed areas through watershed breaking down existing decision-making structures as they tend
management programmes (goi 2006).2 This shift acknowledged to reflect the prevailing disparities and asymmetries in society.
the needs of the poorer sections of the population living on mar- The methods used for this study included participatory re-
ginal lands and extended programmatic support for achieving search, analysis of policy documents and land records/cadastral
the goals of environmental conservation, productivity enhance- maps, and a household survey. The research methodology was
ment and greater inclusion (Kerr 2002). Importantly, the empha- qualitative in nature and employed repeatedly in response to
sis was on the creation of watershed development committees questions that emerged during the research process. The paper is
with total inclusion of the local community. However, class, divided into five sections. The next section focuses on the water-
caste, patriarchy and ethnicity were identified as barriers to in- shed context and provides details of the irrigation system and
clusion (Shah 2003; Shah 2001), along with locational inequali- rainfall in the study area. The third section examines inequalities
ties arising from the biophysical characteristics of watersheds in access along spatial and social dimensions and linkages
themselves (Joy and Paranjape 2004). between the two. The fourth section studies the inequalities in
The late 1990s saw the emergence of rural drinking water access due to governance processes and institutions. The con-
schemes sponsored by international financial institutions, where cluding section provides a summary of the main arguments and a
decentralised, sub-village-level beneficiary groups bore part of few larger observations.
the capital costs. They also fully managed operation and mainte-
2 The Watershed Context
nance of these systems (Sampat 2007). The National Water Policy
(nwp) of 2002 further reinforced and gave direction to a more Two-thirds of Rajasthan comprises the Thar Desert and, accord-
decentralised and community-managed paradigm of water man- ing to its water policy, the status of water in the state can be des-
agement; though it has been criticised in some quarters for cribed as "most critical."3 Moreover, with population growth and
encouraging commercial development by private actors. More increasing urbanisation, the demand for water is increasing,
inclusive decision-making with greater accountability is to be exerting more pressure on available resources. Micro -watershed
achieved through the creation of community-managed institu- number 19, the selected unit of analysis for this study, is about 60
tions, both for irrigation and drinking water. Hence the main km south-west of Udaipur.4 In 1968, a minor irrigation project
trend has been towards the devolution of power to quasi or non- was conceived in response to demands from the community for
governmental entities (Cullet 2006). irrigation facilities and construction of the structure was com-
The paradigm shift entails a spatial shift from large to small pleted in 1980 with a dam at Kanthariya village (hereafter
water storage structures or watersheds and a governance shift referred to as the Kanthariya dam).5 Three villages lie in the
from centralised to more decentralised systems. This has two ad- catchment area of the dam - Kharadiya, Adkaliya and Parab. The
vantages. The spatial shift brings in more water to the local con- catchment area once had tropical dry deciduous forests but they
text because of the scale of operations and watershed manage- were felled in the 1970s. The irrigation canal from Kanthariya
ment that enhances supply, while the governance shift to a more dam passes through six villages across three gram panchayats. It
decentralised and community-managed system resolves prob- begins at Pathara in Kanthariya panchayat, then passes through
lems of accountability, access and equity. These approaches pre- Lunawaton ka Kheda, Badad and Dhimdi villages of Lunawaton
sume that there is a single entity called "community" that will ka kheda panchayat and finally reaches Banswari and Kalimagri
manage water resources at the local level despite several studies of Sultanji ka Kherwara panchayat. Watershed 19 comprises
pointing to disunity and unequal power relations within different these six villages with a total population of 7,805.
communities (Sangameswaran 2006; Sampat 2007; Shah and The entire area comes under Jhadol tehsil of Udaipur district
Singh 2007; Bakker 2008; Narayanan and Irshad 2009). This with the proportion of tribais varying from 45% to 80% in the
paper examines the micro manifestations of this shift against the different villages. The main tribes in the area are Bhils, Bherras
backdrop of water sector reforms in the state of Rajasthan, India and Kharasiyas, with Bhils being the majority. Upper castes such
to understand whether these claims are borne out and what impli- as Rajputs, Mahajans and Bairagis and Other Backward Classes
cations they have for different groups. By studying a minor irriga- (овс) such as Patels, Lohars, Gayris and Darogas are also present.
tion project catering to six villages and the decentralised system Agriculture is the main occupation of the people in the area.
set up to manage it, we also explore notions of "community". Many tribais commute daily to Udaipur for work and seasonal
The study brought to light inadequacies in the powers and sup- migration to neighbouring states is more prevalent among the
port given to communities to implement the decentralised man- higher castes.
agement agenda. Traditionally, caste and class have played an
important role in influencing the mechanisms governing access 2.1 Rainfall, Storage Levels in Reservoir
and Groundwater Use
to water in rural India. When there are deficits or failures in pub-
lic provisioning of water, villagers turn to groundwater and it is Rainfall data for Jhadol tehsil from 1995 to 2008 (Figure 1, p 67)
the affluent sections, which already have strong control over tra- shows a maximum annual rainfall of 1,156 mm in 2006 and a mini-
ditional mechanisms, that have better resources to access it. This mum of 367 mm in 2004. The number of months of rainfall each year
leads to widening inequalities in access to rural water. In this set- varies between five and eight, with the average being closer to five.
ting, the implementation of participatory systems of governance, Data on the amount of water stored in the Kanthariya reservoir
as envisaged in recent policy shifts, has not been successful in from 1997 to 2009 shows that the storage closely follows the
66 January 28, 2012 vol XLVii no 4 ЕШЗ Economic & Political WEEKLY
amount of annual rainfall received in the region. A comparative The spatial inequalities are deepened by the social structure,
graph of the amount of water stored in the reservoir and total which is defined on the basis of caste, economic status and gen-
annual rainfall is given in Figure 2. der. To gain a better understanding of how the caste system wid-
Thus, despite formally being an "irrigated" area, in reality, it ens inequalities, the village of Badad was studied in detail. The
remains a rainfed one with a strong correlation between the revenue land records and cadastral maps at the patwari's (land
amount of rainfall, storage in the reservoir and volume of water record officer) office were examined to assess the caste-wise
available for irrigation. Our field study also revealed that the breakup of the ownership and location of canal-irrigated land.
increasing dependence on groundwater is progressively making The best cultivable lands in the valleys are mostly owned by the
Figurei: Total Annual Rainfall in JhadolTehsil (mm) upper-caste Rajput families.
Figure 3 (p 68) shows that upper-caste Rajputs, represented on
the chart as "General" have more average cultivable area per
household and a significant amount of the valley land that is bet-
ter endowed with surface and groundwater. This helps create a
water market that is largely controlled by Rajputs, with tribais
serving as buyers of water. Rajputs also own a greater quantum
of undivided land because they tend to live as joint families and
this permits economies of scale in farming. Tribal communities
on the other hand have a nuclear family structure with habita-
tions that have, over time, spread out and moved further up the
Source: Jhadol Office, Department of Irrigation, Government of Rajasthan.

slopes as families have enlarged. Due to smaller landholdings
and less fertile hilly land, the tribais mostly practice subsistence
the canal irrigation system redundant. Groundwater extraction farming. This is tellingly seen in the large number of goats reared
continues unchecked despite Jhadol tehsil being classified as by them, which they rely on for cash income in the absence of
"over-exploited", which means that the rate of withdrawal of formal lending mechanisms. Larger landholdings and better
groundwater in the region is much more than the recharge rate.6 access to water resources (surface and ground) have led to a
The government itself seems to overlook the unsustainable na- deepening of inequalities and also to the upper castes gaining
ture of long-term dependence on groundwater and has permitted more social and economic importance, factors which give them
a panchayat in the area to construct 30 new wells. Permission for political clout.
the construction of new wells in an over-exploited region can
only be given if the water from them is to be used for drinking. 2.3 Inequalities in the Use of Groundwater
This is possibly how sanction for the new wells was obtained, With canal water becoming scarce in the last two years there is an
but, once constructed, they can and most probably will be used increasing reliance on groundwater and new wells are being dug
for irrigation. and existing ones deepened. Tribal-dominated Dhimri village has
the highest number of groundwater structures per household,
2.2 Inequalities in Access: Socio-Spatial Dimensions thanks to Mahatma Gandhi National Rural Employment Guaran-
The location of villages in relation to Kanthariya dam plays a tee Scheme (mgnregs) funds.7 Due to low incomes, tribais rely on
major role in access to water. As one travels north from the dam the mgnregs for gaining access to groundwater despite reported
along the canal route, the availability of water declines. The Figure 2: Comparison of Annual Rainfall and Storage in Kanthariya Reservoir
farmers of Kalimagri, the village at the tail end, said that they
had received water from the dam only on four occasions in the
past 30 years and those of Dhimri village complained of receiving
less water than they ought to. Both groups accused villages
upstream of utilising more water than their share.
Within the villages, the location of landholdings along the
route of the main canal determines access to water. The distance
to both east and west of the canal also plays a significant role,
more so on the western side as much of the land slopes upwards
from the canal making irrigation difficult. The lands of upper-
Source: Jhadol Office, Department of Irrigation, Government of Rajasthan.
caste farmers are mostly located in valleys through which the
irrigation canal passes and so they get easy access to canal water instances of misuse of funds, non-adherence to technical specifica-
as well as groundwater. In contrast, tribal lands are located on tions and low quality work that has contributed to many wells going
lower slopes above the canal, giving them no access to canal dry. Sultanji ka Kherwada on the other hand has the least number
water and poor access to groundwater. The houses of the domi- of wells since it is dominated by Patels who do not have access to
nant castes are located in the main villages, where amenities mgnregs funds. Falling groundwater levels and the growing des-
are available, and tribal habitations are on the peripheries peration of tribais to improve their access to water are the major
of villages. reasons for the new wells in Dhimri, according to villagers. That
Economic & Political weekly шш January 28, 2012 vol xlvii no 4 67
Figure 3: Badad Village - Variation in Landholding with Caste and Location A wua is a community-based organisation formed under the
supervision of the irrigation department to manage the local
usage of water. The wua for the command area of the Kanthariya
dam was formed in June 2009 and it has five members. It has
held only two meetings till date. The first was to form the associ-
ation and the second to decide that no water could be released for
irrigation in the first year because the water level in the reservoir
was very low. What follows is an analysis of the institutional
arrangements of the wua, mainly based on interviews with
its members.
Skewed Representation: The issue of representation in the wua

has much to do with whether inequalities are done away with or
said, though Dhimri has the highest number of groundwater struc- reinforced. First, the narrow way in which "community" has
tures and new wells per household, it does not necessarily mean been defined in the policy means that only farmers who own land
that its inhabitants have access to plentiful water. in the command area are included in the wua and have voting
Since groundwater is now available only at greater depths, rights. There is no representation in the wua for the two villages
those who can afford to do so, typically higher-caste villagers, at the tail end of the canal that receives the least amount of water
are sinking tube wells that enable tapping water from under- from it. Further, no evidence was found that people living in
ground aquifers. The head-end village of Kanthariya, dominated tribal hamlets are involved in the wua; most women are not even
by Patels,8 has the most number of tube wells. In Dhimri, which aware of its existence. This finding is contradictory to the claim
has a semi-arid climate, mgnregs funds cannot be used for tube of the rwp that "Water User Groups will be chosen by democratic
wells and the largely tribal population has less access to water means, with fair representation by large and small-scale stake-
because groundwater levels are fast receding. The overall picture holders including women" (Clause 2.1.3).
of access to and usage of groundwater thus seems to be one The process by which wua members were selected also raises
where there are growing inequalities between the tribal and non- questions about the potential of the institution to adequately rep-
tribal populations in the study area. resent different sections of the population in the command area.
While serious inequalities in access to water arise from socio- When asked how they were selected, the wua members said they
spatial issues, it is claimed that the recent move towards a were unanimously elected without opposition. In other words,
community-managed water system will mean greater inclusion they were nominated. These findings are in line with Cullet
in decision-making and accountability. The following section (2006), who points out that while there are a number of rules
looks into this by studying the numerous challenges confronting attempting to ensure the participation of women and the lower
the implementation of a new system of governance. castes in panchayati raj institutions, the existing policy makes
it quite likely that wuas will generally be dominated by male
3 Processes and Institutions of Governance
upper-caste members.
The shifting of responsibilities from the state government to local
communities is part of a larger move from state-led to commu-
Lack of Transparency and Accountability: The by-laws for the
nity-managed systems of water governance. This ismanagement
meant to and governance of the wua were not publicly dis-
encourage responsibility among community members in the
cussed or framed in forums such as gram sabhas, which are man-
usage and governance of water. This section profiles the policies
dated to represent all sections of society. There is little coordination
and the new governance structure (that is, wua) created or
to even
trans-
communication between the wua, the irrigation depart-
late the policy shift to the local level, analysing how it ment,
works the
on gram panchayats concerned and the agriculture depart-
the ground and its coordination, or lack of it, withment.
existing
Though the rwp states that engineers from the irrigation
(formal and informal) arrangements of governance. department will provide technical support to farmers so that they
can efficiendy manage water resources, this has not happened.
3.1 From State-led to Community-managed While local farmers complain about their lack of technical skills to
Water Governance
manage the canal, engineers suggest that the wua is avoiding its
The key features of the Rajasthan State Water Policyresponsibilities
2008 (rwp) and still looking to the state to operate the canal.
include reducing the demand of water for irrigation, encouraging
wuAS to participate in water management and enacting amend- on Powers and Authority: There is a lack of clarity
No Clarity
ments to both control groundwater decline and improve
on the
the effi-
legal powers and responsibilities of the wua to manage
ciency of water management. The water distributionwater
and alloca-
resources. This has had an effect on its legitimacy, as
revealed
tion strategies in the state accord priority to domestic, by this instance. The president of the wua convinced
commer-
cial and municipal uses of water over agriculture villagers
despite the
not to release water from the canal in 2009 due to the
rwp's stated goal of irrigating "as large an area of landlow
as level
possible
of water in the reservoir. In direct violation of this, some
with the available water" (clause 3.1.1). farmers at the head end began using water from the reservoir
68 January 28, 2012 vol XLVii no 4 БЕСЗ Economic & Political weekly
and the wua found it difficult to stop them.9 The wua issabhas, leave alone informal institutions. Ignoring informal insti-
also sup-
tutions
posed to be responsible for collecting an irrigation tax from of governance, particularly in tribal-dominated areas,
bene-
ficiaries of the canal water. However, the field surveyhave serious consequences for already marginalised tribal popu-
revealed
lations,
that there was confusion among the villagers on this, with someas the next section describes.
saying no tax would be collected and others saying that some
3.2 From Informal to Formal Governance Institutions
amount could be collected. Clearly, the lack of representativeness
of the wua, the want of transparency in its functioningThe
andstudy
the area falls under the Panchayat Extension to Scheduled
Areas (pesa)
inadequate delineation of its responsibilities (and resources) by Act, 19 9 612 and seats in the panchayats are reserved
the state government casts serious doubts on its ability for tribais in proportion to their population, with the post of the
to repre-
sent the needs of the community as defined in the rwp.sarpanch
Thus the(head of the panchayat) permanently reserved for a
tribal. Despite control of the formal decision-making structure of
policy shift to wuAs seems to be driven more by "managerial"
than "democratic" concerns. panchayats being largely in the hands of tribais, the lingering
The only social equity consideration reflected in the rwpinfluence
is of the old feudal structure ensures that the upper-caste
communities hold considerable decision-making powers. For
that it specifies water should be first supplied to tail end farmers.
In practice, however, the head-end villages first get access to
example, the current president of the wua is from a Rajput family
and also a prominent local contractor. This shows the continued
water with a progressive reduction down to the tail end. Head-
influence of economically and socially dominant caste groups
end farmers argue that they disagree with the irrigation depart-
ment's directive because they are the ones who lost their landas
towell as individuals even in newly formed decision-making
the dam and also because their need for water is high. Wheninstitutions
tail like the wua.
end farmers realised they were not in a position to influence

Existing norms, sanctions and folklore in society also play key
roles in influencing decision-making and one of the most com-
decision-making in their favour, they resorted to "stealing" from
mon but powerful ways in which they are spread and reinforced
the canal by diverting water from it at night on an ad hoc basis.10
are through stories. Stories circulated by upper-caste communi-
Over time, the partial and unequal nature of water governance
has had an adverse effect on the operation and maintenance ofin these villages dwelt on how the irresponsibility of tribais
ties
was to blame for reduced rainfall in the area. Examples of way-
the dam and canal system. At the time of field study, the dissocia-
ward behaviour cited included reckless felling of surrounding for-
tion of tail end villages from the governance of the canal system
was complete. Farmers from these villages are not invited ests
for and "uncontrolled drinking and stealing of water" at night,
which
meetings to decide on release of water from the dam and they no had led to deterioration of the canal system. This indicates
longer consider themselves stakeholders in it. a general perception among the upper castes that tribais are
incapable and do not deserve to be part of decision-making struc-
The state's effort to pass on the responsibilities of management
is based on the claim that the local community will do it more
tures. Interestingly, the study indicated that tribais themselves
efficiently because it has a greater stake in doing so. However,
seem resigned to the idea of not being part of important decision-
making bodies, including those for water allocation. In a discus-
while the responsibility of collecting an irrigation tax and depos-
sion, several senior members of the tribal community said that
iting it in a separate bank account has been transferred to wuas,
they have no power to fix the tax rate. This remains with the debating
rev- and decision-making in the gram sabhas were matters
enue department. So wuas are involved in day-to-day manage-
for literate and "clever" people; by implication, not for them.
ment, but have no decision-making power when it comes to tax.
The crux of the issue is that tribal populations do not identify
with panchayats in the modern sense but with phalas or tribal
In addition, it is not clear whether the tax money will be control-
led by wuas and ploughed back into maintenance of canal sys-
habitations, and their allegiance is to tribal jati panchayats (caste
councils). This makes it difficult for them to participate in the
tems, thus giving them and local farmers an incentive to collect
and contribute taxes. In the area studied, the irrigation depart-
working of present-day panchayats. Moreover, panchayats in the
command area are dominated by the upper castes, particularly
ment is now responsible for maintenance of the dam and main
canal and the wua is responsible for the tertiary canal system.
Rajputs, who have a history of conflict with tribais.13 This reduces
However, neither the irrigation department nor the wua has
the ascope and space provided by this institution of governance to
tribais. The tribal jati panchayat headed by a chairperson called
share in the tax now collected by the revenue department in the
the gamiti includes people from different phalas. Earlier the
name of the district collector.11 When the irrigation department
needs funds for maintenance of the dam, it has to submit a pro-
gamiti in the area of study played a major role in tribal life, medi-
posal to the state government. ating disputes, resolving conflicts (many of which pertained to
water)
Overall, therefore, the study finds that water reforms seem to and making and influencing decisions. The gamiti also
have a limited understanding of the terms "participation" functioned
and as an important link between the tribal and non-
"decentralisation". In irrigation law reforms, participation is populations. When there were inter-caste disputes, people
tribal
went before the jati panchayat and leaders of each caste group
conceived of only for landowners and excludes landless people
(Koonan 2010). Decentralisation has meant forming new com-
(the gamiti in the case of tribais) resolved the dispute.
munity organisations like wuas without giving them enoughField interactions revealed that the previous gamiti, Laluba,
was so well respected that he was often even called to resolve
powers and resources and also not even giving a role to formal
democratically-elected bodies such as panchayats and gram
disputes in faraway Udaipur. Laluba played a crucial role in the
Economic & Political weekly 0Ш January 28, 2012 vol xlvii no 4 69
building of capacity
the gaps; for instance, training local farmers on cultivation
Kanthariya
of his, he and irrigation techniques, which help createthe
supported awareness among con
Congress them on the efficient use
Party, in of water resources, ngos also play a role
opposition
to lose much of
in building and its
strengthening local institutionsland.
such as village L
believed that development committees (vdcs) and vfpmcs.would
tribais The experience of g
and that the water in the reservoir would enhance water levels in local ngos such as the Foundation for Ecological Security (fes)
their wells. reveals the importance of building strong community institu-
The customary system of governance based on the gamiti pro- tions based on the principles of treating resources as commons,
vided respect and predictable platforms and processes for universal participation, representation for the weaker sections
exchange and mediation among tribais and between tribais and and linkages with gram panchayats. For instance, by-laws for
non- tribais. It provided a legitimate, publicly accepted forum forvfpmcs are framed and ratified in gram sabhas so that villagers
the redress of grievances and this contributed to the effective are aware of them and have the opportunity to participate in
functioning of informal institutions such as the canal monitor- their design. In addition, the focus is on promoting and strength-
ing committee, set up by landholders to manage water distribu- ening conventional mechanisms of community-based protection
tion from the canal system. This committee used to help the that help build bridges between traditional and modern institu-
chowkidar, or guard, appointed by the irrigation department in tions of governance.
monitoring the distribution of water from the canal. All the fam- A local NGO, Jan Chetana, which receives funding from the
ilies benefiting from the canal used to pay five kilograms ofWatershed Organisation Trust (wotr), has been charged with
grain to the guard. The local people said that initially nobody the task of constituting local institutions for watershed man-
broke canal walls, that all communities were represented and agement by the irrigation department. This gives it a substan-
the system worked well. Over time, there was less water in the tial role in deciding the structure and form of such community
dam due to deforestation, siltation and inadequate mainte- institutions but there are no clear mechanisms by which com-
nance, which led to an increasing number of conflicts. With the munity members can hold it answerable, which raises the seri-
effectiveness of the gamiti declining, the system of governance ous question of ensuring the accountability of ngos. Further,
and conflict resolution lost force and the guard was not able to Jan Chetana is concentrating on the village as the unit for
successfully function, resulting in a breakdown of the fair distri- building community-based institutions but without forming
bution of water. any linkage with democratic institutions such as panchayats.
The gamiti obviously played an important role in maintaining a This could result in a governance mismatch between the bio-
balance and mediating between tribal and non-tribal groups and physical unit of the watershed and the political jurisdiction of
institutions that had different understandings of "community", the panchayat. Moreover, this is in an already fraught situation
competing needs and a history of deep, entrenched conflict. where tribais living in a village do not see it as the community
However, there seems to have been little connection between the to which they belong.
system of the jati panchayat and that of panchayats in the study While ngos strive to fill the governance deficit brought on by
villages. In the last ю years or so, much more money has been the withdrawal of the state and smoothen the transition to new
flowing to the panchayats and the role of the sarpanch has governance structures, their efforts are typically project-based,
become prominent while the role of the gamiti has diminished. with short-term horizons. This paper throws into relief the larger
People now perceive the tribal institution as being unable to ac- question of the role or agency of civil society in the joint govern-
cess the money or programmes that come to panchayats. While ance network of state, civil society and the market. Are ngos that
the gamiti's role in village development and even mediation has get enhanced space in governance and funds for action because
decreased, he still has the power to dispense moral sanction. of the policy shift the legitimate representatives of civil society?
Interactions in the field revealed that the gamiti has to approve Although the new institutional forms allow ngos to bring funds
candidates for the panchayat elections because only then will the to the local context, they are also found to mostly facilitate tech-
tribal community vote for them. In many other respects, the jati nical interventions ignoring the important vantage points of
panchayat and gamiti system has been so weakened that it can- equity and démocratisation.
not address conflicts and compensate for failures of governance Far from strengthening local institutions, there are also seri-
as it did in the past. It is this gap that non-governmental organi- ous concerns that numerous government, donor and ngo projects
sations (ngos) are now trying to fill. have resulted in a fragmented approach, multiple strategies and
Tribais had a collective agency, bargaining power and voice overlapping interests. Achieving convergence in planning and
in decision-making, which has waned with the emergence ofimplementation at the local level is made challenging when there
"modern" institutions of resource management such as wuas, are a multiplicity of schemes and actors, different funding
village forest protection management committees (vfpmcs), self- streams, different plan requirements for different schemes, and
help groups (shgs), and so on, that reflect the "democratic defi- varied project expectations and timelines. This governance defi-
cit" in the local and larger context. The new shift to community cit has to be bridged by gram panchayats, which are the lowest
management reveals an expanded role for ngos and an increase tier of local self-government. However, panchayats now lack the
in their influence. The field study revealed that ngos play several capacity for such coordination and have to be capacitated to take it
different kinds of roles. They are engaged in filling critical up progressively. The more serious problem in this model is the
70 January 28, 2012 vol XLVii no 4 0ШЭ Economic & Political weekly
institutions,
governance deficit in local self-government institutions that tend to followed by local community-managed institutions
like are.
reflect the social structure and power relations of where they wuAS. Since newly created institutions like wuas are over-
The people who are losing out on access to water dolaid
notontake
the existing social structure, they reflect existing prob-
lems
it passively, but actively strategise to get a share. Thus in local resource access and power asymmetries, as our
water-
study
related conflicts are on the rise. While these conflicts have clearly revealed, wuas are not found to represent all sec-
a neg-
tions
ative impact on the fabric of sections of society, they can of be
also the population, particularly marginalised groups. The
functioning
read as a sign of the rising tide of démocratisation, which is the of wuas and the constraints they operate in thus
only way to address inequalities in access to resources.14raise serious questions about their ability to fulfil the ambitious
responsibilities entrusted to them, especially given the lack of
4 Conclusions
commitment of the state government to genuinely decentralise
The overarching concern of this paper has been to water governance.
examine the The issue of non-inclusion in irrigation insti-
issue of access to water in a water-scarce context. The distinc- tutions commonly discussed in pim debates is thus reflected in
tion between the categories of rainfed and irrigated seemsmall
to structures of water storage as well. The shift in governance
is "managerial" to bring in operational efficiency and not ori-
collapse in the case of small storage structures as the one stud-
ented
ied. Three broad dimensions of inequalities were investigated - towards "démocratisation" to create beneficiaries and
spatial, social and administrative. Spatial and social inequali-
rights-bearing citizens.
ties of access were seen to reinforce each other, accentuated by
Finally, the issue of groundwater governance and regulation is
raised as an issue of critical concern, especially because it is fast
the growing dependence on groundwater. Inter-village spatial
inequalities depended on distance from the dam and intra-becoming the main source of water. While regulation of ground-
village ones on distance of landholdings from the main canal. is a must, equally important is the need to consider the use
water
Lands in advantageous positions are owned by the upper castes
and governance of both groundwater and surface water conjunc-
and communities. The access to groundwater resources also
tively. Local nested institutions, both formal and informal, seem
shows the same tendencies as those observed in the case of best placed to fulfil this function. In a situation where the state is
surface water. withdrawing and there is an attempt to decentralise water distri-
bution and management, democratically elected panchayats seem
A study of the processes and institutions of water governance
also told a story of inequalities in access to institutions andtostruc-
be better placed to regulate water resources. Yet panchayats
are neither represented nor are they expected to play a role or
tures responsible for the management of water resources despite
coordinate
the stated intention of formal policies such as the rwp and pesa with newly formed bodies, including wuas. The
to give local (marginalised) communities an enhanced democratic
role in deficit in the formation and functioning of panchayati
raj institutions also raises questions about the equity of rural
water use and management. The paper traces the role and impor-
water access, which obviously is linked to the démocratisation
tance of traditional informal institutions such as jati panchayats
and gamitis in negotiating disputes and resolving conflicts,needed
along in the larger political economy.
Our
with the agency and leadership quality shown by members of attempt in this study was to understand the paradigm
shiftfor
these institutions. Informal institutions enabled a greater role in water policy in the last few decades that envisaged two
tribais in decision-making and redressing grievances, including
types of shifts - first, to small storage structures and watershed
those related to water access. It was in this social settingmanagement,
that and second, to more decentralised and private
the Kanthariya dam was built. Over time, anthropogenic management
factors of water. It is clear that both these shifts imply
like deforestation, siltation and lack of maintenance reduced
enhanced availability of water at the local level and increased
water availability in the dam. Simultaneously, traditional gov-
local influence in decision-making. However, such advantages do
ernance structures declined in power and legitimacy, in not
part a
ensure social equity. Rather, they are found to deepen exist-
consequence of being bypassed by more recent panchayati raj
ing inequalities.
NOTES
with a maximum capacity of 80 million cubic feet. including a provision in their by-laws that pun-
ishes those who violate the decisions of the asso-
i For a critical appraisal of the RajasthanThe cost of construction of the dam and canal sys-
experi-
ciation.
ence, see Shah and Singh 2007, and for atem was Rs 1.5 million when it was completed in
review
1980. Water was first released from the dam into10 Farmers would break the canal wall and divert
of the Gujarat experience, see Ahmed 1998.
the canal in 1981. water into their fields, which was easy to do
2 With the Parthasarathy Committee Report (GOI
6 There has been a significant and increasing de- because it was made of mud. But they would
2006) suggesting greater fund allocation for wa-
pendence on groundwater in the region. In Kan- not rebuild the broken part, often wasting a lot
tershed development and the 11th Five-Year Plan
thariya, Badad, Dhimri and Sultanji ka Kher- of water.
giving greater priority and allocation, watershed
wada, there are a total of 114 open wells, 11 tube 11 Until 1999, the patwari from the irrigation de-
development is seen as an important develop-
wells and 11 hand pumps to fulfil household partment collected the irrigation tax from canal
ment intervention.
requirements and also to irrigate the rabi crop. users in the command areas. Irrigation tax de-
3 Groundwater in the state was exploited at the rate 7 In the three villages of Kanthariya, Dhimri and
pends on the irrigated area and crops grown by
of 125% in 2004 compared to 35% in 1984. Sultanji ka Kherwada, all new wells (since 2006) local farmers. From 2000, the patwari from the
4 The main stream in this watershed is the Harnia have been constructed in tribal hamlets using revenue department began collecting the tax. The
Naia (stream), a tributary of the Mansi River, MGNREGS funds. collected amount is deposited in an account in the
which, in turn, is a tributary of the Wakal (Sabar- 8 As Patels do not receive funds for digging wells name of the district collector.
mati) River. through the MGNREGS, they prefer tube wells, 12 Fifth Schedule areas are tribal-dominated areas
5 The exact location of dam is 73o - 28' - 4" East and which are cheaper than open wells. and Parliament in 1996 passed a separate legisla-
24o - 18' - 15" North. The dam is an earthen structure 9 WUA members plan to address this in future by tion as an annexure to the 73rd Constitution
Economic & Political weekly Щ253 January 28, 2012 vol xlvii no 4 71
Amendment Cullet, Philippe andAct

Roopa Madhav (2009): giving
"Water special
Recent Institutional Changes", Proceedings of the pow
sabhas in Fifth
Law Reforms in India: TrendsSchedule
and Prospects" in Kerala Environment Congress, (Thiruvanan- for
areas st
governance Ramaswamy and protecting
R Iyer (ed.), Water and the Laws in thapuram: Centre for Environment and the Develop- righ
communities. India (New Delhi: Sage).
They include
ment), pp 171-85. the powe
natural resources, the
Dharmadhikary, Shripad (2005): "Unravelling Bhakra: Patii, power
R В (2000): Pani Panchayat in Puneto District conser
tect customs and
Assessing the Temple traditions,
of Resurgent India", Badwani: (New Delhi: Rawat Publication). the powe
community resources,
Manthan Adhyayan Kendra. Phadke, A and Вthe power
Patankar (2006): "Asserting the Rights to
putes through
Gol (2006): "From Hariyali to customary
Neeranchal: Report of methods,
of the Toiling Peasantry for Water Use" in P Mollinga, a
trol
and management
the Technical Committee on Watershed Prog- of non-timber
A Dixit and К Athukorala (ed.), Integrated Water f
ucts
(NTFP). Resource Management: Global Theory, Emerging
rammes in India", Department of Land Resources,
13 Tribais said
Ministry they
of Rural Development, Government of have
Practice and Local Needs (Newsided
Delhi: Sage). with
Party for long
India. because Sampat,if
Preeti (2007):they vote
'"Swa'-jal-dhara or 'Pay'-jal- fo
tiya Janata Party
Iyer, Ramaswamy (BJP),
(2007): Towards Water Wisdom: the
dhara - Sector Reform and the Right to DrinkingRajput
power locally. Limits Justice and Harmony (New Delhi: Sage). Water in Rajasthan and Maharashtra", Law, Envi-
14 Developed further in Narayanan 2008. - ed., (2009): Water and the Laws in India (New ronment and Development Journal, at http://
Delhi: Sage). www.lead-j0urnal.0rg/c0ntent/07101.pdf, ac-
cessed on 10 February 2011.
REFERENCES James, A J (2004): "India's Sector Reform Projects and
Sangameswaran, Priya (2006): "Equity in Watershed
Swajaldhara Programme", Submitted to the IRC
Ahmed, Sara and N Hari Krishna (1998): "Changing
International Water and Sanitation Centre. Development: A Case Study in Western
Gender Roles in Irrigation Management: The Maharashtra", Economic & Political Weekly,
Joy, К J and Suhas Paranjape (2004): "Technical Re- 27 May, pp 2157-65.
Case of Sadguru's Lift Irrigation Co-operatives",
port: Watershed Development Review: Issues and
IRMA. Bangalore: Centre for Interdiscipli- Shah, Amita (2001): "Who Benefits from Participatory
IRMA Working Paper No 120, Anand: Prospects",
Watershed Development", Gate Series 97, Lon-
Apte, Tejaswini (2001): "Water Rights, nary
Land Reforms
Studies in Environment and Development. don: International Institute for Environment and
and Community Participation: The Kerr,
PaniJohn
Panchayat
(2002): "Watershed Development, Envi-
Development.
Model for Sustainable Water Management",
ronmental Services and Poverty Alleviation Shah, Esha (2003): Social Designs: Tank Irrigation
mimeo, Study for Lokayan-Kalpavriksha, NewDevelopment, Vol 30, No 8,
in India", World
Delhi. Technology and Agrarian Transformation in
pp 1387-1400. Karnataka, South India (New Delhi: Orient Black-
Bakker, К (2008): "The Ambiguity of Community: Koonan, Sujith (2010): "Water Law and Policy in swan).
Debating Alternatives to Private-Sector Provision India: Reforms and Capacity Building", mimeo, Shah, Esha and Praveen Singh (2007): "Community-
of Urban Water Supply", Water Alternatives, 1 (2), New Delhi: Environmental Law Research Society. Based Natural Resource Management in Gopalpura,
pp 236-52.
Narayanan, N С (2008): "State, Governance and Rajasthan" in Ajit Menon et al (ed.), Community
Chowdhury, J U, M Rahman and M Salehin (1997): Natural Resource Conflicts: Background Paper" Based Natural Resources Management: Issues and
Flood Control inaFloodplain Country: Experiences of in N С Narayanan (ed.), Where to Go from Here? Cases from South Asia (New Delhi: Sage).
Bangladesh, Rabat: Islamic Educational, Scientific State, Natural Resource Conflicts and Challenges to Shah, Mihir, Debashis Banerji, Vijay Shankar and
and Cultural Organisation. Governance (New Delhi: Academic Foundation), Premathesh Ambasta (1998): India's Drylands:
Cullet, Philippe (2006): "Water Law Reforms: Analy- PP 15-38. Tribal Societies and Development through Environ-
sis of Recent Developments", Journal of the Indian Narayanan, N С and Irshad Mohammed (2009): "Gov- mental Regeneration (Delhi: Oxford University
Law Institute, 48 (2), pp 206-31. ernance of Drinking Water in Kerala: Analysis of Press).
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72 JANUARY 28, 2012 VOL XLVII NO 4 QQ53 Economic & Political WEEKLY
Panchayat Finances and the Need for Devolutions
from the State Government
ANAND SAHASRANAMAN
1 Introduction
One of the key tests to real empowerment of panchayats
lies in the ability of local self-governing institutions to
gave constitutional status to gram panchayats, which until
finance their own expenditures through internal
The then gave 73rdthenconstitutional had Constitutional
had been subject to the executivebeendecisions
subjectofstatus
state to Amendment to the gram executive panchayats, Act decisions (73 caa) which of of until state 1992
generation of resources. Based on an analysis
governments.of
The objective three
of the 73 caa was to enable panchayats
villages in Tamil Nadu, this paper argues that many
to function as institutions of local self-government, planning and
gram panchayats are today in a position toimplementing schemes for economic development and social
justice. With the Eleventh Schedule of the Constitution of India
substantially finance themselves and build a culture of
(Article 243 g) listing 29 subjects1 appropriate for devolution to
self-sufficiency, independence and accountability
panchayats, the caa directed all stateto governments to pass ena-
their citizens, reducing their dependence on devolutions
bling panchayati raj legislation that devolved specific powers and
from state governments. It concludes that responsibilities

by to these local bodies. According to the 2001 Census,
there were close to 2,30,000 gram panchayats2 in India and the
incentivising competition among panchayats and
rural population constituted 72% of the total population of 1,028
instituting a rural development fund to enable them
million.3 Given the numbers to
involved and the potential impact of
access debt capital, the perverse incentives constitutionally
they mandated now
local self-governments, the 73 caa
was of immense importance.
face can be mitigated to a large extent, leading to several
All states followed up on the 73 caa by passing enabling
significant positive outcomes.
panchayati raj legislation. Tamil Nadu passed its Panchayati Raj
Act in 1994, laying out the nature and scope of panchayati raj
institutions (pris) in the state. The Act ensured the devolution of
functions and finances to panchayats, thus laying the basis for
local self-governance. While this has led to a marginal improve-
ment in rural public service delivery, it is apparent that much
more needs to be done to provide even a basic level of services
to all the rural population. Addressing the fundamental issues
surrounding panchayat finances is central to improving the ability
of gram panchayats to fulfil their role as agents of economic de-
velopment. This paper analyses the monetary resources of three
panchayats - Pallavapuram, Pandiyapuram and Cholapuram4 -
to understand the institutional and financing arrangements
underlying panchayat administration in the state.
It begins with a brief discussion of the Tamil Nadu Panchayati
Raj Act, 1994, which is followed by an analysis of the demographic
and income profiles of the three gram panchayats under study.
The next section assesses the panchayats' current financial situation
by looking into their own revenues as well as assigned and devolved
revenues. We then examine expenditure, that is, what is spent on
public infrastructure and services that gram panchayats are con-
stitutionally required to provide. The following section assesses
the actual revenue potential of these villages based on income
I thank Nachiket Mor, Barbara Harriss-White, Abhay Bang,
levels and normative standards for own revenue collection in other
Sudhir Mankad, Vijayendra Rao and Vijay Kelkar for their thoughtful
comments. developing countries. Finally, we compare the evidence generated
from our analysis with second generation fiscal federalism theory
Anand Sahasranaman ( anand.s@ifmr.co.in ) is at IFMR Trust, Chennai.
to assess how revenue and governance outcomes can be improved.
Economic & Political weekly йШ1 January 28, 2012 vol xlvii no 4 73
2 Understanding the Tamil Nadu Panchayati Raj Act state (perhaps even the country) has borrowed from external
The Tamil Nadu Panchayati Raj Act of 1994 lays down the law financial institutions.
regarding panchayati raj administration in the state. Among

other aspects of governance, it discusses the specifics of statu- 3 Demographic and Income Profiles of the Three Villages
tory functions, electoral processes, administrative structure, The demographic profiles of Pallavapuram, Pandiyapuram and
community participation mechanisms and financing levers. The Cholapuram villages, as of 2001, are in Table 1.6
Act clearly states that gram panchayats are statutorily responsi-
Table 1: Demographic Profiles
ble for the following functions: (i) constructing and maintaining Pallavapuram Pandiyapuram Cholapura
village roads and bridges; (ii) lighting roads and public places; Population
(iii) constructing and maintaining drains; (iv) cleaning streets Households
and collecting garbage; (v) providing and maintaining public Members per household 4.5 4.2 4.3
toilets; (vi) constructing and maintaining water works; and Sex ratio
Source: Census of India 2001.

(vii) maintaining burial grounds. In addition to these, panchayats
also have the power to undertake other duties such as opening To understand their income and occupational dynamics, we
and maintaining public markets, playgrounds and fairs.5 approached a local financial institution (lfi),7 with a presence in
all three villages, for specific but anonymous customer data on
Own Revenues: To ensure the performance of statutory duties, occupation, income and expenditure. We have analysed the data
the act empowers gram panchayats to collect a number of taxes provided by the lfi to decipher the income and asset profiles, as
and fees from villages. The taxes include house tax based on the well as income distributions, in these villages.8 Table 2 shows the
type of house; water charges based on how much is used by average and median household incomes in the three villages.
those with individual connections; profession tax based on Table 2: Average and Median Household Incomes (in Rs)
profession, trade, calling or employment; and advertisement
tax, which is payable by those displaying advertisements in Mean annual household income
public. Gram panchayats are also permitted to collect a range of Median annual household income
fees, including licence fees for trades and businesses situated in Total Income (estimated)
Source: Based on data from LFI.
places determined by panchayats; lease rentals from annual
auctions of tree rights, pond fishing rights, and so on; and What Table 2 illustrates is that average annual household in-
market fees from businesses in panchayat-provided public comes in these villages are in the range of Rs 1.2 lakh per annum.
markets. The Act gives gram panchayats the power to set these The median household income, however, turns out to be about
tax rates and fees, thereby allowing them to use these levers of Rs 40,000 lower than the average income. This indicates that
financing to generate revenues for infrastructure development there is a high level of inequity in the distribution of income in all
and service delivery. three villages. The inequity in incomes is borne out by the income
distribution and inequality diagrams for Cholapuram (Figure 1
Assigned and Devolved Revenues: In addition to these self- and Figure 2, p 75). Pallavapuram and Pandiyapuram villages ex-
financing levers, the Panchayati Raj Act provides for assigned hibit a very similar pattern.
and devolved revenues. Assigned revenues are those that are Figure 1: Income Distribution in Cholapuram
directly due to gram panchayats but are collected by the state

government to ensure greater ease and efficiency of collection.
They include entertainment tax, stamp duty, local cess and local
cess surcharge that are remitted to panchayats every six months.
Devolved revenues are direct grants from the state government
to panchayats based on recommendations of the state finance
commission (sfc), which has a five-year term. The third sfc of
Tamil Nadu (2006-11) recommended that a minimum of Rs 3
lakh per annum be devolved to each panchayat and any remain-
ing amount be distributed to panchayats in proportion to their
population. The sfc devolution is paid to gram panchayats in
monthly instalments. The income distribution in Cholapuram follows a normal
curve, with a majority of the households (58%) estimated to earn
Loans: The Tamil Nadu Panchayati Raj Act allows gram panchayats between Rs 72,000 and Rs 1,44,000 per annum. However, the
to raise loans from any financial institution as long as it is for inequality in the distribution of this income is quite staggering,
works connected with the improvement or development of infra- as can be seen in Figure 2.
structure; for carrying out relief work during calamities; and for Figure 2 clearly brings out the income inequalities in the
carrying out other statutory functions. While the Act empowers village. The bottom quartile of the village population generates
panchayats to access loans for the purposes of infrastructure less than 8% of the village income and the top 5% of the popula-
development and service delivery, no gram panchayat in the tion has access to more than 30% of it. In between these extremes,
74 January 28, 2012 vol XLVii no 4 E33S3 Economic & Political WEEKLY
Figure 2: Income Inequality in Cholapuram (in %) Table 3: Annual House Tax Rates (in Rs)
Annual House Tax Rates
Thatched
Tiled house
Government sanctioned house
Concrete
these v
against
duct pe
The cur
lection
sumabl
the remaining 60% of the income is distributed among 69% of electrici
the population. Those in the bottom quartile of the population scheme
have incomes lower than Rs 48,000 a year. calculat
Based on the data available on local household incomes, we in the p
estimate that the total annual income generated by households in collectio
each village adds up to around Rs 10 crore, as can be seen in the thr
Table 2. While this figure may seem quite high, it does make tax
Table 4: Under-Collectionthat
of House Tax (in Rs)
sense when compared to data from the Statistical Handbook of and the actual amount
Collected revenue 34,010 46,310
Tamil Nadu.9 According to this, state gross domestic product collected by the panchayats
Calculated revenue 52,206 81,158
(gdp) at current prices for 2008-09 was Rs 3.39 lakh crore and that are certified to have
per capita income Rs 51,097. Based on methodology used by the 100% collection efficiency. Under-collection (%)
Central Statistical Office (cso) to calculate rural gdp,10 we esti- This difference is because
mate that Tamil Nadu's rural gdp was 29% of the state gdp in some or many households
2008-09. This means a rural gdp of Rs 98,310 crore and a per capita It can be easily seen that t
rural income of approximately Rs 28,17o.11 Assuming a village has sidise the rich. For, the p
a population of 3,500, the annual average village income would slab and no panchayat can
be Rs 9.86 crore. The levels of village income in the three villages than the lowest slab. This
under study are within a reasonable range of this theoretically house tax that is due from
calculated average village income. Since the village incomes of live in better quality house
these three villages are clustered around the theoretical average, than what their house ta
it can be argued that these numbers could be representative of numbers in Table 4, addre
income profiles in many villages in Tamil Nadu (and in other states can provide a substantia
in India). What is also apparent is that if the incomes generated However, a thorough refor
in the three villages are at these levels, they should be able to an even more significant i
generate taxes commensurate with them. Therefore, it is instruc- the houses in each village o
tive to analyse the tax and fee bases of these panchayats. new houses are brought int
have been extended or reb
4 Analysis of Own Revenues A second aspect of house
The own revenues of the panchayats mainly comprise three com- indicated earlier, most pan
ponents - house tax, water charges and professional tax. Analys- of house, irrespective of
ing these revenues across time it becomes clear that there is revised at regular interv
no buoyancy in them. Delving into the details of each of them low rates has led to hous
enables us to understand the reasons for the lack of buoyancy This could be remedied by
and the steps to be taken to address this. maximum house tax rates
should be obligated by the
House Tax: The house tax is an annual tax collected from all government orders) to set
houses in each panchayat's jurisdiction. The power to set house range. This would preserv
tax rates rests with individual gram panchayats. The Tamil Nadu house tax rates, but at the
Panchayati Raj Act recommends a house tax based on plinth area ridiculously low rates.
and house type,12 but all three panchayats have opted to adopt a At the end of each fina
flat annual rate for each house type. These rates are maintained accounts are audited at th
at very low levels, as Table 3 indicates. of the house tax income in
The low flat rates, combined with a reluctance to increase rates number and sum of receip
every few years, have conspired to keep house tax collections in match the total house tax
Economic & Political weekly ШШ January 28, 2012 vol xlvii no 4 75
passes the audit test. This

Finally, panchayatshas resulted
should raise water charges every five years to in audit stat
recording 100% be able toefficiencies.
collection cover a substantial portion of their annual operation
Instead, an audi
focus on calculating the and maintenance expenses
house tax on water
dueinfrastructure
on in villages.
the basis of the
and types of houses in a village (available in the panchaya
ters) and compare this toProfessional
the house Tax: Professional
taxtaxes are collected from local
collection in the p
at's income statement. This
businesses,would give
government employees and a true
employees picture
in public insti- o
tion efficiency in the tutions in a village. This is one item of revenue that shows an up-
village.
ward growth over time in all the three panchayats. Just as with
Water Charges: Gram house tax, a reform that
panchayats can have far-reaching
provide implications on
individual wa
nections to houses in the quantum
villages of professional
for tax collected is a periodic
a monthly charge.revision of The r
be set by each
Table panchayat
5: Monthly rates.
Water Theby
sfc can set (in
Rates upperRs)
and lower bounds for professional
passing a resolution. We find Water Connection tax rate slabs and panchayats can be required to set their rates
that the monthly water rates in Paiiavapuram within this band. This will ensure that professional tax slabs are
the all three panchayats are set Pandiyapuram revised every five years and serve to augment panchayat income.
at very low levels, although cholapuram
5 Analysis
there is some variation in rates among them of (Table
Assigned 5).
and Devolved Revenues
The income
An analysis of water charge collections statements
from of the three
2007-08 to panchayats
2009-10 from 2006-07 to
shows that there is great variation2009-10 make it clear that devolved
in year-on-year and assigned revenues
collections,
with the revenue yielded in most years
constituted nowhere
a much close
largerTable 7: Average to and
Assigned the
Devolved Revenues
share of total
expected collections for the year (Table 6). income as a Proportion of Total Revenues (2006-07 to 2009-1 0)
Table 6: Expected and Average Water Charge Collection

than
(in Rs)
the own revenues
• 1 1 1 ~ Paiiavapuram 71.2
raised • 1 1 by them. 1 On ~ an
. .11 Pandiyapuram 67.6

Average collections (2007-08 to 2009-10) 63,187
average, the . assigned .11 and m
Expected collections 68,760 1,63,800 84,600 devolved revenues com-
Collection shortfall (%) 8 48 32
ponent was more than two-thirds of total income (Table 7).
As we have seen, the is
As with house tax, under- collection own the
revenue norm
collections ofhere.
the three Based
panchayats
our research, it emerged that the are severely
chief hampered by low taxfor
reasons rates and fees, were
this
lack of a real threat of disconnection and efficiencies.
under-collection and poor collection the requirement
The high level t
the panchayat clerk collect of dependence charges
water on assigned and devolved
by going revenues isto
a direct
each ho
consequence of this.
While panchayats are empowered to Panchayats do not have incentives
disconnect users to pro-in case
non-payment or misuse of
vide water,
even basic publicthis is and
infrastructure a services
power that is ne
of a minimum
used. Without a credible threat
standard toof
theirdisconnection, the
citizens because their funding is incentiv
not contin-
pay water charges on timegent
(oron performance.
at all)They receive their assigned and
disappears. devolved of th
Proof
that the only times whenrevenues,
the irrespective
panchayats were
of the quality of able
services they to reco
provide.
a substantial portion of water charges
The accountability due to
of the local government to its them
citizens is (such
Paiiavapuram in 2009-10) were when
compromised panchayat
because panchayats clerks
are incentivised to look up to went
individual households and
the threatened
state government for funds,they would
rather than look actually
out for its citi-
disconnected if their waterzens.
bills
This waswere not
confirmed by paid
our analysis within
of the a specif
quality of infra-
number of days. structure in all three villages and the public services provided
The difficulty of collection
by the
ispanchayats.
compounded by panchayat cler
having to collect house taxes and water charges by persona
going to all households in 6 a
State of Village Infrastructure
village. In villages with 900 hou
To assess the spreadproposition
holds or more, this is a challenging and quality of infrastructure
and, provided,
to wemake m
ters worse, people who do analysed
notthehave the
environmental money
infrastructure - water in hand
supply, sani- to p
fee, ask the clerk to come another day.
tation, waste management andThe
drainage operational
- in the three villages.13 diffic
is such that it puts a brakeIt on
was obvious
taxthat there were
and fee glaring gaps in the provision In
collections. of addit
water charges are a monthly fee.
these basic Butin panchayat
public services clerks
the villages and the following ex- find
difficult to visit 900 or more houses
amples bring every
to light the dismal month and this
state of affairs.
typically gets collected once• Water
a year. The
quality tests, current
based on a large number model of door
of samples from
door collections is extremely inefficient
the drinking water network in eachand unsustainable.
of the villages, revealed that I
imperative that panchayats get
more households
than 98% to
of the samples tested had pay
coliform water
or faecal con- char
tamination. This could result
on a monthly basis at the panchayat in illnesses such
office. To as diarrhoea
achieve and this, th
gastroenteritis,
has to be a credible threat of among others.
disconnection in case of non-paym
• While there are must
of water charges and panchayats no official statistics
cut on the number of toilets to long-t
supplies
defaulters to demonstrate inthey are
these villages, serious.
discussions This
with panchayat could
officials and inter- have
views with paying
desired effect of all households villagers revealedtheir
that only between
water 20% andbills
30% of in tim
76 January 28, 2012 vol XLVii no 4 ШШ Economic & Political WEEKLY
standards
the households had toilets. Public toilets built in these villages in similar developing countries such as Brazil and
were in a state of disrepair. South Africa, which are recognised to have successfully reformed
their local
• Garbage collection along the main roads in all the villages didtax and fee structures. We find that these countries
not seem to be much of a priority. The trash, generatedhave much higher municipal own revenue ratios than India, with
by shops,
Brazil at
lay accumulated in spontaneous dumps and was not cleared on2.58%15
a and South Africa at з.8о%16 of their gdps. Based
regular basis. on these benchmarks, we propose a target own revenue tax base
• Barring Cholapuram, the two other villages lacked drainage of 2.5% for panchayats in India.
systems. However, Cholapuram's open drainage system choked As Table 8 further illustrates, if the three panchayats realise
with garbage and sewage was widely regarded as the primary the target 2.5% of total village income as own revenue tax base,
threat to public health in the village. they would experience an increase in revenue of anywhere
Sanitation, quality of drinking water, and drainage and waste between 12 and 17 times compared to their own revenues today.
management were areas of critical concern in all the villages. This is a quantum jump in revenue generation and can, if these
These issues, in all likelihood, extend across a broad cross funds are put to productive use, have a tremendous impact on the
section of villages in the country. It goes without saying that quality of life in these villages. An additional comparison with
larger investments in capital works as well as higher sustained the assigned and devolved revenues from the state government
expenditure on operations and maintenance will be required to also helps to put into perspective the effect that an increased tax
tackle the range of infrastructure and service delivery issues that base can have on the financing mix of the panchayats. Own rev-
confront panchayats today. enues are now around 25% of the assigned and devolved revenues,
but if these villages can manage to increase their own revenues
7 Increasing Own Revenues to 2.5% of village income, the ratio between own revenues and
To raise the additional resources required for investment in public devolved revenues is turned on its head, to between 300% and 350%.
services, the panchayats cannot only depend on formula-based state This means that the panchayats can be largely self-financing and
government devolutions, but have to increase their own revenue will no longer be dependent on grants from the state govern-
base quite substantially. The impact of an increased generation of ment. This will have a host of positive implications for the inde-
own revenues can be illustrated using the following exercise. pendence of the panchayats and their accountability to citizens.
Table 8: Current Own Revenue Base and Target Revenue Base (in Rs) It is also important to understand what the increase of tax base
Pallavapuram Pandiyapuram Cholapuram - from 0.2% to 2.5% of total village income - means to individual
House tax households in terms of increases in their annual tax and fee bills.
Water charge
An illustration using income data for households in Cholapuram
shows that affordability is unlikely to be an issue as long as the
Licence fee
Professional tax
tax and fee structures are designed in a progressive manner.17

Total
Table 9: Income, Current and Target Annual Tax Spend in Cholapuram

Total village income
Cholapuram High Income Medium Low Income
Village tax revenue base
(as % of village income) 0.19 0.21 0.15 Total households (est) 897
Targettax base (as % of village income) 2.5 2.5 2.5
%of households in each category 33 41 26
Target village revenue tax base 25,50,950 24,64,582 25,93,217 No of households in each category 292 371 233
Multiplier
Current average annual tax spend per HH (in Rs) 636 47 30
Average devolved and assigned revenues 7,55,296 7,85,307 7,41,669
Current average annual income per category (in Rs) 2,16,884 71,085 31,759
Current village revenues/devolved revenues 0.25 0.26 0.21 Current annual tax spend (as % of annual income) 0.29 0.07 0.09
Target village revenues/devolved revenues 3.38 3.14 3.50 Target annual tax spend (as % of annual income) 3.00 2.00 1.50
When we separate the primary sources of own revenue genera- Target annual tax spend per HH (in Rs)
tion for the three panchayats today, we find thatTotal

thetarget tax spend per category (in Rs) 19,02,647 5,27,962 1,11,103
revenue
Overall target tax due to gram panchayat (in Rs) 25,41,713
collections are a paltry 0.15% to 0.2% of total village incomes.
This is an extremely low figure and clearly indicatesWe
that the
find that low- and medium-income households spend less
panchayats are severely undercharging for providing than 0.10%
services. To of their annual income on panchayat taxes and
determine a more optimal level for panchayat ownfees. High-income
revenues as households spend comparatively more,
a fraction of gdp, it is useful to look at the standards of It
0.29%. own
is clear that annual household expenditure on taxes
revenue collections of municipalities and see how they
and compare.
fees is almost negligible; this corresponds with our earlier
We find that panchayat own revenue generation finding
(at 0.15%
on to
the share of Cholapuram's own revenues tax base as a
portion
0.2% of village gdp) in our sample of villages is less than, of the village's income (0.15%). However, if we were to
though
not very different, from the overall contribution increase the expenditure of all households on taxes to more
of municipal
own revenues to the national gdp, which is о.з8%.14reasonable
Therefore,
levels, with a progressive increase in expenditure (as
both rural and urban local bodies in India appear to abe
share of income) as shown in Table 9, we find that the total
operating
at suboptimal levels of revenue generation. A moretaxes
appropriate
and fees collected would be close to 2.5% of Cholapuram's
benchmark for India's rural and urban local bodiesincome
to (which
aspirewe earlier said would be a desirable level of
to can possibly be derived from local own revenue taxgeneration
collection).
Economic & Political weekly Q3Q3 January 28, 2012 vol xlvii no 4 77
These illustrations show that if panchayats have the will

abysmally to The panchayat balance sheets are domi-
low levels.
increase taxes and fees to reasonable levels and design their
nated by tax the state government and they are the
grants from
regimes in a progressive manner, they can generatesource
substantially
of funds for the bulk of expenditure on public works in
greater revenue than they do now and, at the same these
time, ensure
villages. This appears to corroborate the theory that local
that citizens are charged in a manner that the tax and fee liability
governments expect to spend the funds that are devolved to them
does not become onerous to them. It cannot be stressed enough
by higher-level governments, but are not incentivised to augment
that increases in tax rates and fees should be concomitant with their own revenue collections.
improved public infrastructure and better service delivery out-This, however, is only part of the story. The balance sheet of
comes. Ultimately, increased fees and taxes will make citizens
these panchayats reveals only the "untied" fund devolutions to
demand more from panchayats and this can drive a virtuous panchayats from the state government. Untied funds are those
cycle where increased internal revenue drives increased citizen
that can be utilised by the panchayats in any way they deem fit,
demand, which leads to improved infrastructure, which, in turn,
as long as it is for activities within their constitutional mandate.
enables the panchayat to build credibility and charge reasonable
These untied funds, however, form only one component of the
rates for achieving better service delivery outcomes. Addition-
transfers from the state government to panchayats. The other
ally, it helps to create a culture of payment for services among
important component is "tied" funds, which are devolved for use
citizens, which is essential if we are to have sustainable and
in specific schemes of the central and state governments. For
meaningful local self-government. As rural areas urbanise,18instance,
a in the case of the three villages, we found that tied
culture of payment among citizens will be invaluable because funds were devolved from the central and state governments under
a number of schemes such as the Mahatma Gandhi National
these growing regions can then count on their citizens to be active
participants in financing sustainable development. Rural Employment Guarantee Scheme (mgnregs), Indira Awas
Yojana (iay) and Kalaignar Veedu Vazhangum Thittam (kvvt).19
8 Evidence in the Light of Second Generation When there are a plethora of schemes, political economy consid-
Fiscal Federalism Theory erations dictate that local panchayat officials are better served by
A review of the literature on second generation fiscal federalism
attempting to spend these funds in a timely manner in their con-
theory yields constructs that attempt to explain why local gov-
stituencies rather than trying to raise own revenues through
ernments are reluctant to try to bolster their own revenue bases.
taxes and fees. As local officials are likely to be rewarded by the
The central problem indentified is the perverse incentives that
political leadership on the basis of their execution of devolved
local governments have when confronted with the "soft" budget
schemes, their incentive is to ensure scheme implementation
constraints of higher-level governments. If there are no clear
rather than augmentation of own revenues. This also implies that
guidelines on the "hardness" of fiscal budget constraints as they
a local official is best served by trying to bring inasmuch scheme-
pertain to the flow of funds from higher-level governments based
to funding as possible from the state government and spend-
local ones, local governments will have the tendency to spend
ing it in his or her jurisdiction because the local population would
beyond their means in the expectation that they will be bailed
prefer this to paying more as taxes and fees.
out in times of need. What such "soft" budget constraints also However, in terms of local government accountability, this
imply is that local governments will slacken their efforts to levy
situation yields decidedly suboptimal outcomes. When public in-
and collect taxes and fees because, in addition to such moves
frastructure is almost exclusively financed by devolutions and lo-
being politically unpopular, they expect that their funding needs
cal populations pay very minimally for services, there is likely to
will be largely met by flows from higher-level governments. be little demand for accountability on the quality of services pro-
Therefore, in a fiscally decentralised structure where the
vided by panchayats. The evidence on the ground corroborates
revenues of local government are composed of both own revenues
this. As our study revealed, public services delivery in the three
and revenues devolved from higher-level governments, the efficacy
villages suffered from a number of shortcomings. Yet, our field
interviews with the local populations did not reveal there was
and efficiency of own revenue sources is very closely linked to the
hardness of budget constraints. If hard budget constraints are
any demand among the people for accountability on the part of
legislatively mandated, the question around them becomes onethe panchayats.
of enforceability. Local government behaviour, in this scenario, isOverall, the evidence from our analysis appears to strongly
not simply dictated by existing legislative norms but by the actual
corroborate the second generation fiscal federalism literature on
enforcement of such laws in situations of real distress. Unless fiscal decentralisation and soft budget constraints. However, as
local governments believe that hard budget constraints are the previous section showed, these villages have the potential to
credible, they will continue to be incentivised to treat them as generate much higher internal revenues. If tapped, this can lead
soft budget constraints. to much improved governance and accountability outcomes. It is
In the case of the three villages under consideration, it is very imperative to explore how this can be achieved.
clear that the panchayats have neglected own revenues collec-
tion, which is reflected in their infrequent rate increases and 9 Agenda for Reform
poor collection efficiencies. Though income levels in these All these villages find themselves in a low-level equilibrium with
villages would permit a substantially higher own revenues base poor public infrastructure on the one hand and the potential to
(as our analysis shows), own revenues continue to languish at generate much higher own revenues that can be deployed to
78 January 28, 2012 vol XLVii no 4 Q3S3 Economic & Political weekly
Ê=====Z=IZEE REVIEW OF RURAL AFFAIRS
which
improve this situation on the other. While second generation was set up with the objective of helping smaller urban
fiscal
local bodies (ulbs) in the state gain access to debt capital markets
federalism theory help explain the reluctance of local government
and
to levy taxes and fees, it is essential that villages in India also
are build their capacity to finance and manage public infra-
able
structure
to move towards a higher-level equilibrium with increased localprojects. These ulbs would otherwise find it difficult to
access debt markets because of the size of their requirements, the
revenue generation and improved infrastructure outcomes.
costs of accessing such markets and the lack of a track record in
Incentivising Inter-panchayat Competition and Citizenassuming
Partici-debt. A pooled financing mechanism allows such enti-
ties
pation: One way to improve public service outcomes and to pool their projects together and access the market with a
increase
single bond issue, backed by cash flows from the underlying
own revenues in panchayats would be to incentivise competition
projects as well as their balance sheets. The size of the pooled
among panchayats in each state. This could be accomplished
issue would be large enough to attract institutional investors and
by publishing an annual or biannual ranking of panchayats,
the presence of multiple ulbs in the issue would mean costs can
comparing them on the basis of their public infrastructure.
The ranking methodology could be developed by the be Union
shared, thus making it economical for each ulb to participate.
The
Ministry of Rural Development and regularly carried out bytechnical
non- expertise for structuring such a transaction could
be provided
governmental organisations (ngos), universities or research insti- by the tnudf. The tnudf would also work with ulbs
to improve the quality of their systems and processes, thus incen-
tutes in conjunction with the department of rural development
tivising
in each state. Such rankings would be the first step to ensure in-them to develop their capabilities to be able to tap the
markets again and access further debt when required. Improving
ter-panchayat competition, but the process would be incomplete
their
if the findings are not widely publicised through the local capacities over time also ensures that when these ulbs
print
and electronic media. approach the debt market again, they can access credit at better
Wide dissemination of such information would inform rural terms than before.
citizens about the level of services provided in their villages com- Based on the tnudf, a rural development fund (rdf) could be
pared to other, better-performing villages. This informationset up as a public-private partnership (ppp) between the state
could lead to greater demands from citizens for improved public government and private financial institutions. The one concern
services. Panchayats, under citizen pressure, would have to that needs to be mitigated is the perverse incentive local govern-
improve infrastructure and raise additional revenues for it. Inments have to default on debt in the expectation that the state
such a scenario, they could make a fair case for citizens payinggovernment will bail them out (the soft budget constraint). With
reasonable taxes and fees for public services, which would ensure the state government as a partner in the fund, this perverse
that their performance in service delivery will be closely moni-incentive will be fully eliminated because it can intercept sfc
tored by paying citizens. Increased own revenue generationdevolutions to panchayats that default on debt repayments. This
would decrease dependence on state government grants and,serves as a hard budget constraint and it should spur panchayats
more importantly, increase the accountability of panchayats. to improve their own revenue generation efforts so that they are
able to access the rdf to tap capital markets and thus finance
Pooled Financing for Rural Development through a Rural De-their public services. The state government as a ppp partner
velopment Fund: The villages under study (and many otherswould also help ensure that panchayats remain leveraged within
like them) can generate a much higher level of revenues than limits and do not overstretch themselves. The rdf can be critical
they now do and if they are able to realise these revenues, it can in not merely enabling the financing of many important rural
form the basis for their accessing debt from capital markets. Thepublic services, but also to ensure that panchayats have the
ability to take on debt allows local governments to plan theirincentive to reform their own revenue generation efforts, their
developmental activities in a more systematic manner and thusinternal systems and processes, and build their internal capacities
lead to long-term improvements in providing public services. over time. In the long term, this would have a transformational
The second generation fiscal federalism literature points outimpact on the quality of rural public finance and governance.
that one of the ways of combating the perverse incentive of soft
budget constraints is financing local governments with debtSFCs Recommending Tax Bands: One of the short-term responses
from efficient credit markets. Since attracting credit from capitalto poor internal revenue generation by panchayats is requiring
markets will mean greater scrutiny of local governments' inter- SFCS to recommend maximum and minimum tax slabs (bands)
nal systems and processes, it incentivises them to improve theirfor house taxes and professional taxes. Each panchayat should
finances and capacities. The better the revenue generation pros-enjoy the discretion to set its rates anywhere within the band.
pects of a panchayat and the more robust its processes, the betterThis will ensure that panchayats keep their tax rates at viable
the terms on which it can attract debt. In view of these benefits of
levels and not continue at the depressed levels they are now. Each
the credit market, it is important to see how panchayats cannew sfc would come up with fresh recommendations on appro-
access debt in a way that does not pose a risk to the overall sub-priate tax bands, thus ensuring that panchayats will have to cali-
national debt situation. brate their tax rates every five years. This arrangement ensures
One way for attracting debt in a calibrated manner to panchay- that while tax rates are set within SFC-defined bounds, panchayats
ats is through pooled finance. The pooled finance design could be have the autonomy to choose the rates in the band that best
based on the Tamil Nadu Urban Development Fund (tnudf), suit their situation.
Economic & Political WEEKLY ЦЦШ JANUARY 28, 2012 VOL XLVII NO 4 79
10 Conclusions especially those related to independence and accountability to

citizens. These fundamental changes in governance will signal
Our findings on the finances of Pallavapuram, Pandiyapuram
a transition
and Cholapuram panchayats as well as incomes and tax bases in towards the true spirit of the 73 caa. Therefore,
focused action
these villages lead us to conclude that with judicious increases in on internal revenue generation by incentivising
competition
their tax and fee regimes, all three will be in a position to self- among panchayats, creating rdfs and requiring
finance a substantial portion of their infrastructure SFCS to recommend tax bands could have a transformative effect
and service
needs. Their current dependence on state government on local governance and, more fundamentally, the quality of life
devolutions
of citizens in rural India.
could end, bringing in important improvements in governance,
notes 15 From Govinda Rao and Richard Bird (2010), "Urban and Rural D
Governance and Finance in India", Working Paper Paper Series
1 This list incl
10/68, National Institute of Public Finance and IKP Centre f
minor irrigatio
Policy, New Delhi. "ICTPH Epid
cial forestry,
16 Based on estimates from the South African Treas- Indian Villag
industries, vil
ury's "Local Government Budgets and Expendi- Mahajan, Vi
housing, drink
ture Review, 2008". (2007): "Fina
electrification,
17 For the purpose of the illustration we assume that Prem Kalra
alleviation, ed
households with an annual income lower than Infrastructu
education, libr
(New Delhi: O
and Rs 48,000 fall in the low-income category, house-
fairs, heal
holds with an annual income between Rs 48,000 Ministry of U
women and ch
and Rs 96,000 fall in the medium-income cate- Level Bench
welfare of the
programme/
tion gory and households
system, with incomes higher than an
1 December 2010.
2 Rs 96,000 fall in the high-income category. The
According to
average tax spend per household in the high-in-
Nemes, Guzstav (2005): "Integrated Rural Develop-
for 2008-09, ment: The Concept and Its Operation", KTI/IE t
in come category includes house tax, water charges
India.
Discussion Papers 2005/6, Institute of Economics,
and professional tax. For medium- and low-income
3 For the Hungarian Academy of Sciences, Cen Budapest.
households, the total tax burden comprises only
http://www.ce Oates, Wallace, E (2005): "Towards a Second Genera-
house tax. Since the number of individual house-
Indiaatglance tion Theory of Fiscal Federalism", International
hold water connections and professional tax as-
4 These are not
Tax and Public Finance, Vol 12, No 4, pp 349-73-
sessees is less than the number of high-income
they have been
households, we assume that these taxes are paid Rajaraman, Indira (2005): "Financing Rural Infra-
5 This expans structure in Developing Countries: The Case of
only by high-income households.
roadsides, India", Applied Econometrics
open and International
18 McKinsey Global Institute's 2010 report "India's
rooms, Development, Vol 5, No 2.
public
Urban Awakening: Building Inclusive Cities,
cart stands, Rajaraman, Indira and Garima Vasishtha (2000): pa
Sustaining Economic Growth" predicts an urban
and social education centres. "Impact of Grants on Tax Effort of Local Govern-
population of 590 million by 2030, compared to
6 Data from Census of India 2001. ment", Economic & Political Weekly, Vol 35, No 33,
340 million in 2008.
7 This is not the real name of the financial institu- PP 2943-48.
19 In Pallavapuram, for 2009-10, there were Satterthwaite, David and Cecilia Tacoli (2003): "The
tion; it has been changed to preserve anonymity. scheme-based devolutions of Rs 7.28 lakh for the
8 Since the LFI collects income information based Urban Part of Rural Development: The Role of
MGNREGS and Rs 2.01 lakh for the I AY. The Small and Intermediate Urban Centres in Rural
largely on the input of clients, it is reasonable to KVVT came into being only in the 2010-11. and Regional Development and Poverty Reduc-
assume that clients have an incentive to overstate
tion", Working Paper 9, International Institute for
income. To negate this effect, we assume actual
Environment and Development, London.
income to be 80% of that stated by a client and
Tacoli, Cecilia (2004): "Rural-Urban Linkages and
REFERENCES
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Issues Toda
aglance.htm#STATE INCOME. and Pro-Poor Growth Task Team, Helsinki
Infrastructure Work-
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10 Available at http://m0spl.nic.in/rept%20_%20pubn/ for Commercialisatio
shop, 17-18 June.
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Tamil Nadu Panchayats Act (1994): At http://www.
CSO's approach estimates the number of workers Devarajan, Shantarayan
tnrd.gov.in/pract/tnpa_index_new.html, accessed
in each sector and uses this as the basis for appor- Shah (2011):
on 10 September 2010."The Poli
tioning rural and urban incomes. We use this tion" in Ehtisham
The Constitution (73rd Amendment) Act (1992): Con- A
approach to calculate the rural GDP for Tamil (ed.), Effective Fede
stitution of India, at http://indiacode.nic.in/coi-
Nadu for 2008-09, assuming that the fraction of (Cheltenham:
web/amend/amend73.htm, Edward
accessed on 8 August
rural and urban workers in India from 1999-2000 Fan, Shenggen
2010. and Co
to 2008-09 changed in proportion to the change Development, Econo
Zoomers, Annelies (2006): "Three Decades of Rural
in their ratios in overall national population; and Reduction Development in China"
Projects in Asia, Latin America, and
adjusting for the higher level of urbanisation in International Food
Africa: Learning from Successes and Failures", P
Tamil Nadu (44% against an all-India average of Washington Research Paper,DC.
Vol 2006/33, United Nations
27% in 2001). Hazell, Peter and
University-World Institute Ste
for Development
11 This is based on a rural population of 3.49 crore, Urban Economic Research, Helsinki. Linka
Growth
as per the census data of 2001 for Tamil Nadu.
12 The Tamil Nadu Panchayati Raj Act recommends
per square foot rates for different house types: For the Attention of Subscribers and
concrete 0.5 to 1; tiled 0.30 to 0.60; thatched (> 20
square metres) 0.20 to 0.40; and (iv) thatched Subscription Agencies Outside India
(< 20 square m) 0.40 to 1.
It has come to our notice that a large number of subscriptions to the EPW from outside the country tog
13 A detailed discussion on the state of infrastructure
with the subscription payments sent to supposed subscription agents in India have not been forwarded to u
in these three villages can be seen in "Improving
the State of Rural Environmental Infrastructure: We wish to point out to subscribers and subscription agencies outside India that all foreign subscriptions,
A Case Study in Three Villages of Tamil Nadu" by with the appropriate remittances, must be forwarded to us and not to unauthorised third parties in India.
Anand Sahasranaman, forthcoming in the Inter- We take no responsibility whatsoever in respect of subscriptions not registered with us.
national Journal of Rural Management. Manager
14 As per the Twelfth Finance Commission report.
80 JANUARY 28, 2012 VOL XLVii NO 4 laavi Economic & Political weekly
Temporary and Seasonal Migration: Regional
Pattern, Characteristics and Associated Factors
KUNAL KESHRI, R В BHAGAT
1 Introduction
The regional pattern of temporary and season
migration in India assumes sharp focus when
light of data the from Temporary 64th round of the Nati
Temporary has circular,
has been seasonal,
been a subject ofcircular,
a subject migration,
much seasonal,
of short-term
discourse. much oftentoshort-term
According discourse. andinterchangeably
Zelinskyused and spontaneous spontaneous migration,
According to migration, Zelinsky with
Survey. The phenomenon (1971), all these movements, usually short-term, isrepetitive more or prevalent in
areas of the country's cyclic, having the common northern motive of a temporary change of and eastern s
paper also examines residence, are the circular in nature. Circular migrants follow a
association between
circular path and maintain continuous but temporary absences
migration and its determining factors, particu
from their place of origin for more than one day (Hugo 1982).
economic status, landholding Temporary or circular migration is a move made for a short and educationa
observes that there period is of time witha the intentionsignificant
of returning to the place of negative a
between economic and educational attainment and usual residence. An important group of temporary migrants
consists of seasonal migrants, who combine activity at several
temporary migration, both in rural and urban areas. In
places according to seasonal labour requirements (Keshri and
general, socio-economically deprived groups such as Bhagat 2010).
adivasis and those from the lower castes have a greater Prevailing regional inequalities and uneven development in
propensity to migrate seasonally, which also reflects itsmany Asian countries impel temporary internal migration from
agriculturally backward and poor rural areas. Temporary migra-
distress-driven nature.
tion has increased substantially in the last two decades in south,
south-east and east Asia (Brauw 2007; Deshingkar and Akter
2009; Deshingkar and Grimm 2005; Ha et al 2009; Lam et al
2007). Seasonal migration has long been a source of income for
rural households unable to support themselves through agricul-
ture. Households diversify their economic activities outside the
traditional agricultural sphere by sending out members to work
in urban areas in the lean period (Pham and Hill 2008). Accord-
ing to the school of New Economics of Labour Migration (nelm),
temporary migration is considered a risk diversification strategy
(Prothero and Chapman 1985; Stark and Bloom 1985; Stark and
Levhari 1982).
It is evident from the extant literature that temporary migra-
tion is one of the most significant livelihood strategies adopted by
the poorest sections in rural India, predominantly in the form of
seasonal mobility of labour (Breman 1978, 1996; Deshingkar and
Farrington 2009; Deshingkar and Start 2003; Haberfeld et al 1999;
An earlier version of the paper was presented at an "International
Mosse et al 2005; Rao and Rana 1997; Rogaly 1998; Rogaly et al
Conference on Population Dynamism of Asia: Issues and Challenges
2001; Srivastava and Sasikumar 2003). People also move from
Ahead" during 11-13 July 2011 at the Department of Geography,
rural areas to nearby or distant cities to find jobs in construction
University of Malaya, Kuala Lumpur, Malaysia. The authors are thankful
to the participants for their feedback and suggestions, and they would or the unorganised informal sector (Breman 1994; Deshingkar
like to acknowledge Rajesh Kumar Chauhan and Gopal Agrawal for their
and Farrington 2009; Haberfeld et al 1999; Vijay 2005). Mukherji
help in extraction of NSS data and Sanjay Mohanty and Kirti Gaur for (2006) has termed this distress migration, which, according to
their useful comments towards the improvement of the manuscript.
him, paves the way for urban decay by causing urban poverty,
Kunal Keshri ( kunalkeshri.lrd@gmail.com ) and RB Bhagat ( rbbhagat@ unemployment and a shortage of housing. Breman (1994), on
iips.net) are with the International Institute for Population Sciences,
the other hand, sees seasonal labour migration in western India
Mumbai.
as an important survival option for landless labourers. Landless
Economic & Political weekly Q3S3 January 28, 2012 vol xlvii no 4 8l
REVIEW OF RURAL AFFAIRS = - =- =
agricultural labourers in Gujarat, Bihar,

which Madhya
is the Pradesh, West
other important source of
Bengal and Jharkhand, who areconcerned
trapped inwith
debt current and be-
bondage and perman
not attempt
long to the lower social strata (scheduled to capture
tribes seasonal
and castes or stsor sho
(Chandrasekhar
and ses), migrate seasonally within and states
or outside their Ghosh 2007; Kes
(Bre-
man 1994; Deshingkar and Farrington 2009;
There is thus Haberfeld
a dearth et al that pr
of studies
1999; Jayaraman 1979; Rogaly 1998; Rogaly
temporary et al 2001;
migration at theVijay
national an
2005). For instance, the monsoon frequently
examine fails in Panchma-
its determining factors.
Against
hals district of Gujarat and seasonal this backdrop,
migration the
of the tribal recently a
popu-
lation to nearby rural and urban areas
64th is common
round (Jayaraman
of the nss (2007-08) provide
1979). Similar circumstances studyprompt temporary
temporary migration
migration in India. Wi
among tribal women in Jharkhand
sample
and size
WestofBengal
temporary
as well
migrants,
(Dayal this
theThough
and Karan 2003; Rogaly et al 2001). phenomenon at the state
such migration canlevel.
be Mor
taken as a sign of dynamism, it hason
tion more
the to do with increasing
destinations of temporary
inequalities, agrarian instability and inadequate
studying streams livelihood gen-
of migration possible
eration in many parts of rural and
has urban
also India (Chandrasekhar
improved compared to the pre
and Ghosh 2007; Keshri and Bhagat 2010). aims to explore the pattern a
this study
There are several demographic and socio-economic
temporary migration and factors
to examine its
landholding
such as age, sex, educational attainment, and group
social education after contr
or caste,
religion, poverty and size of landholding that
demographic affect
factors. Astemporary
temporary migr
migration (Brauw 2007; Deshingkar and Grimm
influenced 2005;
by seasons, Deshing-
the terms "tempo
kar 2006; Ha et al 2009; Lam et alinterchangeably.
used 2007; Pham and In Hill 2008). a temp
this study,
asthat
Yang and Guo (1999) have found a household member
in rural areas, the who has staye
decision
of men to migrate is mainly moulded
villageby
or community-level factors,
town for one month or more b
while among women, temporary
thelabour migration
last 365 is predomi- or in s
days for employment
nantly determined by individual characteristics. Among the broad
2 Data
group of the underclass or the socio-economically deprived,
which includes the poorest of the
The present
poor, study
the utilises
landless,
unit level
illiterates
data from the
or64th round
those with a very low level ofthe
education
nss, which is (say, primary
a large-scale, school),
nationally representative, mu
the sc/sts and Muslims, temporary
round survey migration is round,
(nsso 2010). In this very high
information on vari
(Bird and Deshingkar 2009; Connell
facets of et al 1976;
migration Dayal
was collected and aKaran
through schedule on "Emplo
2003; Deshingkar 2006; Hugo ment
1985; and Mosse et al
Unemployment and2005;
MigrationVanwey
Particulars" (Sched
10.2).
2003). Poverty is supposed to be Two blocks
a key push were canvassed
factor in for the particulars and t
temporary
migration. Skeldon (2002) states that
survey was under
conductedcertain
in all statesconditions,
and union territories fro
poverty may be the root cause of2007
1 July migration in
to 30 June 2008 some
(the parts
reference of
period of the survey
the world, whereas in other parts, under
For Schedule 10.2 different conditions,
at the all-India level, 12,688 first stage un
the poor may be among the last(7,984
to move. Brauw
villages and (2007)
4,704 urban blocks)finds thatIn the cent
were covered.
households having low annual sample, the survey covered
expenditures are morea sample of 1,25,578
prone to househo
migrate than others. (79,091 in rural areas and 46,487 in urban areas) and a sam
Some studies using data from the National
of 5,72,254 Sample
persons (3,74,294 Survey
in rural areas and 1,97,960 i
(nss) and Census of India have urban areas).
established that poor people are
less mobile as far as permanent In
orthis round of the nss, voluminous
semi-permanent data on short-
migration is durati
concerned (Bhagat 2010; Singhmovements
2009), while Kundu
or temporary andwas
migration Sarangi
collected. Informat
about between
(2007) find there is no association temporary migrants
poverty was and
collected by asking heads
seasonal
migration across the urban centres. Recent
households whether work by Keshri
any member had stayedand
away from t
Bhagat (2010), which utilises data from
village the
or town 55th
for round
a period of to
of 30 days the nss, during t
six months
reveals that seasonal migration is
last very
365 days inprevalent among
search of employment those
or for employment. Ap
belonging to the lowest expenditure quintiles,
from this, rural
information on theareas
numberand sts.(staying aw
of spells
States having a higher level of inequality
from a village or show higher
town for 15 days temporary
or more was termed a spe
migration rates. However, the destination
data has some
stayed limitations
at during the longest because
spell (such as, the sa
the sample of temporary migrants is same
district, the small
state and information
but another is
district, another state, anot
lacking on their destinations and occupations.
country, and so on) and if worked, the industry worked in we
Despite large-scale temporary collected.
migration in absolute
In the previous numbers,
migration-related version (55th round
the phenomenon has not been 1999-2000)
adequately studied
of this survey, at the
an attempt was macro
made to identify tem
level in India. This has possiblyporary
been due to
migrants bythe unavailability
considering people who hadof stayed aw
national-level data or the veryfrom
limited information
their villages or towns for 60collected byemploym
days or more for
national surveys (as in the 55th round
or in search ofof the nss).
employment (nsso The census,
2001). But in the 64th round
82 January 28, 2012 vol XLVii no 4 Q253 Economic & Political weekly
= REVIEW OF RURAL AFFAÍŘŠ
the survey the minimum number of days was lowered to 30 days with less than i hectare as the reference category. Educational
to capture short-term movements more effectively. attainment is the other important indicator of socio-economic
The usual place of residence was defined in the nss as a place development that has been found to be associated with temporary
(village or town) where a person has stayed continuously for six migration (Yang 1992). It was classified into four broad categories -
months or more. If a household member's last usual place of resi- below primary (reference), middle level completed, and second-
dence, anytime in the past, was different from the place of enu- ary or higher educated (graduate and above).
meration, he or she was considered a migrant. The nss used a In India, there is economic stratification of the population in
stratified multistage sampling design and appropriate multipliers accordance with various social groups and castes and this is re-
and weights have been used to generate national and state -level lated to migration, particularly in rural areas, as many earlier
estimates. Details of the multipliers and sampling weights used studies have found (Gnanou 2008; Haberfeld et al 1999; Keshri
are in the nss report pertaining to migration (nsso 2010). and Bhagat 2010; Mosse et al 2005; Vijay 2005). For a logistic
regression analysis, the social group sts was assigned as the
3 Analytical Strategy and Cataloguing of Variables reference category in a threefold classification of caste - sts, scs,
The rate of temporary migration was calculated to study the pat- Other Backward Classes (obcs) and others. Religion was also
tern and intensity of migration. The temporary migration rate for taken as a control variable with the categories Hindu (reference),
a category of persons or a region (say, district or state) for a speci- Muslim and Others. The last category consisted of all other reli-
fied period of time was estimated by the number of migrants of gious groups. For the variable sex, male was taken as the refer-
that category per 1,000 persons of that category in the region. It ence group. Marital status was also included in the model (with
was calculated using the following formula: single as the reference category). To know the likelihood of tem-
1 Total number of migrants in a 1 porary migration, the variable state/union territory was included
particular category in the models. Rajasthan was taken as the reference category
Temporary migration
Total
rate =
numbersince
of its persons
seasonal migration
inrates in rural and urban
^ that category / areas are equal to the national average.
Four different
To study the regional pattern of temporary migration, state-sets of logistic regression models were applied
wise estimates were generated. The sample was restricted to the
for examining theassociated factors of temporary migration. In
model
working-age population (15 to 65 years) for all I, for which
bi-variate andregression was run on the sample of the working-
age population
multivariate analyses since temporary migration is mainly forof rural areas, mpce, landholding and educational
employment (Keshri and Bhagat 2010; Yang and Guo i999)-2taken into consideration. In model 11, along
attainment were
withthe
However, state-wise estimates were generated for mpce quintiles, landholding and education, caste, religion,
working-
age population as well as for all ages. Using thehousehold size, sex,
information on marital status and state were included as
control variables.
destination during the longest spell, streams of migration were In model hi, regression was run for the urban
sample using
identified. The variable for monthly per capita consumer the same variables as those in model I. In model iv,
expend-
the samethe
iture quintiles (mpce quintiles) was obtained by dividing set total
of variables as model 11 were included using the
urban
household expenditure by the household size and thensample to assess the independent impact of these factors
distribut-
on The
ing households into five equal percentile groups. temporary migration. For ease of interpretation of the result,
quintiles
only
were defined as lowest, lower, medium, higher and those states that were statistically significant were shown in
highest.
Binary logistic regression models were fitted the logisticthe
to assess regression
ad- tables.
justed effects of socio-economic characteristics on the likelihood
4 Results and Discussion
of a person being a seasonal migrant.3 The outcome variable of
seasonal migration was coded in a binary form, that is, "1" if a
4.1the
person was a temporary migrant and "o" if not. In Regional
absencePattern
of of Temporary
income-related data in Indian sample surveys,and
theSeasonal Migration
household
Table 1a (p
consumer expenditure data of the nss provides quite 84) presents
close view the regional picture of temporary and sea-
sonal mpce
of the economic conditions of households. Therefore, migration
quin-in India by showing the estimated number of
temporary
tiles were taken as a proxy of the economic condition of migrants
house- and temporary migration rate (migrants per
1,000
holds, as many recent studies have done (Banerjee andpopulation)
Raju 2009;across states for all ages and in the working-
age population
Keshri and Bhagat 2010; Kundu and Sarangi 2007). This was (15-64 years).
There were a
categorised into low (reference), medium and high for logistic total of 1,36,21,100 temporary migrants of all
regression analysis. ages in India in the reference period 2007-08. This figure falls to
Connell et al (1976) argue that landholding 1,30,76,500 when only the working-age population is taken into
is the primary
economic force that drives temporary migration account.
in ruralAmong
India. the
It major states, the estimated number of tem-
is established that temporary migration is the porary and seasonal
main source of migrants in the working-age population was
highestthemselves
income for rural households who are unable to support (20,85,600) in Bihar, followed by Uttar Pradesh (18,96,500),
through agriculture in their home communities, Westparticularly
Bengal (15,28,400) and Madhya Pradesh (12,36,900).
Migration
those that have small landholdings or are landless (Hugorates
1985;were calculated to assess the intensity of migra-
Vanwey 2003). Variable landholding was included in the modelsfound to be highest in Bihar (50 per 1,000).
tion, which was
Economic & Political weekly ШЭД January 28, 2012 vol xlvii no 4 83
Table 1: Temporary and Seasonal Migrants, Temporary and Seasonal Migration Rate Figure 1: Rural-Urban Differentials in Temporary and Seasonal Migration Rate
(Migrants Per Thousand), National Sample Survey, 2007-08
(Migrants Per Thousand, Age-Group 15-64 Years), Indian States, National Sample
States Temporary and Seasonal Migrants Temporary and Seasonal Survey, 2007-08
(in Thousands) Migration Rate (per 1,000)
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chhattisgarh
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu and Kashmir 102.7
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram 4.4 4.1 5.0 7.0
Nagaland
Orissa
Punjab
Rajasthan
Sikkim
Tamil Nadu
Tripura
Uttar Pradesh
Source: 64th National Sample Survey 2007-08, unit level data.
Uttarakhand
Figure 2: Streams of Temporary and Seasonal Migration in India according to Sex
West Bengal
(Age-Group 15-64 Years), National Sample Survey, 2007-08
India
Total of migrants of all states may

migrants from union territories.
Source: 64th National Sample Surve
Among the major stat

Pradesh (33), West Be
high intensity of seaso
(20). Uttar Pradesh, J
Orissa showed modera
migration. The remainin
Among the smaller sta
rate (48) while it was in
states. Differentials acro
we consider migrants
levels of intra-regional
important livelihood str
with people moving to
states (Breman 1994; D
man 1979; Rogaly et al
Source: 64th National Sample Survey 2007-08, unit level data.
Temporary migration
driving migration rate (54), followed by Gujaratdue
forces (51), Jharkhand (44), to d
the populations. There
Madhya Pradesh (42) and West Bengal (37). In urban areas, Assam
nomena separately.
had a high temporary migration rate (18), along with Bihar (12) Figu
by place of residence
and Jammu and Kashmir (10). In general, rural areas had very a
ence between the
high migration rates compared to urban areas. In Jharkhand, temp
urban areas (6).
Gujarat, Chhattisgarh, Andhra In
Pradesh, Maharashtra, West Bengal, rur
84 January 28, 2012 vol XLVii no 4 БШ5Э Economic & Political weekly
Uttar Pradesh, Madhya Pradesh and Rajasthan the migration rate (29 per 1,000). With an increase in landholding, the migration
in rural areas was many times higher than that in urban areas. rate decreased. The same did not hold true for urban areas.
Jammu and Kashmir, Orissa, Karnataka, Punjab and Uttarakhand Education is a reflection Table 4: Temporary and Seasonal Migration
Rate (Migrants Per Thousand) according to
also showed comparatively higher temporary migration rates in of socio-economical develop-
Educational Status by Place of Residence
rural than urban areas. Interestingly, in states such as Assam and ment and a prime determi-
(Age-Group 1 5-64 Years), National Sample
Survey, 2007-08
Nagaland, the urban temporary migration rate was higher than nant of the job a migrant
Educational Status
the rural. The findings show that rural-urban differences in labourer is going to have.
Below primary
migration rates were not very significant in the southern and As Table 4 shows, temporaryPrimary or middle level 27.9 6.
north-eastern states. migration rates decreasedHigher secondary level 16.8 3.9
Figure 2 (p 84) shows the distribution (percentage) of malewith increasing levels of edu-
Graduate or above 17.4 4.2 8.3
and female temporary and seasonal migrants according to the cation. We find that peopleTotal
Source: Same as in Table 1 .
four migration streams in India. It is seen that overall more than who had less than primary
half the migrants were in the rural to urban stream, followed education showed the highe
by the rural to rural stream. However, among females, the rural prevailed in rural as well as
to rural migration rate was higher. The dominance of rural to As seen in Table 5, tempo
urban migration among males reflected the increasing differ- social groups varied conside
ences between rural and urban areas in India in terms of income STS (45 per 1,000). The rat
and employment. The informal sector in urban areas attracts areas, stsTable
had a Seasonal
5: Temporary and higherMigration rate
Rate (Migrants Per migration
Thousand) according to
poor people from rural areas, mainly when there is a lull in of temporary (49
Social Group by Place of Residence (Age-Group
agricultural work. than ses 1 (30).
5-64 Years), NationalFurther,
Sample Survey, 20074)8 th
results show that differen- Social Group
4.2 Characteristics of Temporary and Seasonal Migration tials among social groups Scheduled tribes
The relationship between poverty and migration has long been awere pronounced in rural Scheduled castes
Other Backward Classes 23.9 6.5 19.5

subject of debate. It is well recognised that poor people migrateareas but less remarkable in
for survival within the country and this mobility is generally in urban areas. This confirms Others
the form of short-term migration, even though the capacity to af- our proposition that theTotal
Source: Same as in Table 2.
ford migration is low among the poor (Kundu and Sarangi 2007; poor and socially deprived
Skeldon 2002). In the absence of a direct measurement of in rural areas migrate more than others on a temporary basis. It
poverty, MPCE quintiles have been used as indicators to unravel could be said that poor and socially deprived classes are more
whether temporary mobility mobile because of the distress-driven nature of temporary
Table 2: Temporary Migration Rate
is higher among the poor or (Migrants Per Thousand) according to migration in India. Table 6: Temporary and Seasonal Migration
MPCE by Place of Residence (Age-Group 15- Rate (Migrants Per Thousand) according to
rich. Table 2 shows the cross- Table 6 shows temporary Religion by Place of Residence (Age-Group
64 Years), National Sample Survey, 2007-08
classification of migration MPCE Quintiles Rural Urban Total and seasonal migration rates1 5-64 Years), National Sample Survey, 2007-08
by religion. The migrations
Religion
rates according to mpce quin- Lowest
Hindu
tiles by place of residence. Lower
rate was highest among
Muslim
The result showed that the Medium Muslims (23 per 1,000), fol-
Others
temporary migration rateHigher lowed by Hindus (20 per Total
was very high (40) amongHighest 1,000). The pattern was the Source: Same as in Table 1.
those in the lowest mpce Total same in rural as well as urban areas. Nevertheless, religious dif-
Source: Same as in Table 1 .
quintile and it decreased in ferences were more prominent in rural than urban areas.
the higher quintiles. Among those in the lowest
areas, the temporary 4.3 Factors Associated with Temporary
migration rate was alm
while it was 32 per and Seasonal Migration
1,000 in the lower quint
decreased with increasing mpce.
We fitted various logistic The
regression models to examine trend
the effect in
similar but the
Table 3: Temporary degree
and Seasonal Migration of economic factors of
while controlling for other social-economic,
Rate (Migrants Per Thousand) according to
change was smoother
Land Possession by Place of Residence
demographic
from and geographical variables (Table 7, p 86). In the
the lowest to 15-64
(Age-Group the highest
Years), National Sample rural sample,quin-
a statistically significant negative relationship be-
Survey, 2007-08
tile. Nonetheless, wetween
find re-
mpce tertiles and seasonal migration was observed, which
Landholding (in hectares) Rural Urban Total
markable rural-urban differ- implied that persons belonging to lower income groups were
Less than 1
entials with respect to mpce 1-4
more likely to migrate temporarily (in model 1).
quintiles in migration rates. More than 4
Further, the likelihood of temporary migration declined with
On the whole, seasonal mi- Total
more land being owned by a household, which confirms previous
gration rates fell with anSource: Same as in Table 1. research findings (Connell et al 1976). A plausible explanation
increase in the size of land possessed by households (Table 3). Inmay be that households with smaller landholdings try to diversify
rural areas, those belonging to households having less than their activities through seasonal migration to supplement rural
1 hectare of land had the highest rate of seasonal migrationincome in the agricultural lean season (Hugo 1985; Vanwey 2003).
Economic & Political weekly E33S3 January 28, 2012 vol xlvii no 4 85
Table 7: Results of Logistic Regression Analysis for Determinants of Temporary and Table 8: Results of Logistic Regression Analysis for Determinants of Temporary
Seasonal Migration in Rural Areas (Age-Group 1 5-64 Years), National Sample Survey, 20074)8 and Seasonal Migration in Urban Areas (Age-Group 15-64 Years), National Sample
Survey, 2007-08
Covariates
Covariates
MPCEtertile
MPCEtertile
Low®
Medium 0.62*** 0.71*** Low®
Medium 0.62*** 0.65***

High
Educational attainment High
Below primary® 1.00 1.00 Educational attainment
Primary or middle 1.09*** 0.67*** Below primary® 1.00 1.00

Secondary or higher 0.79*** 0.47*** Primary or middle 0.88 0.58***
Land possession Secondary or higher 0.66*** 0.43***
Less than 1 hectare® 1.00 1.00
Land possession
1-4 hectares 0.70*** 0.77***
Less than 1 hectare 1.00 1.00
More than 4 hectares 0.48*** 0.54***
1-4 hectares
Social group More than 4 hectares 2.91*** 3.70***

Scheduled tribes® 1.00
Social group
Scheduled castes
Scheduled tribes® 1.00
Other Backward Classes 0.52***
Scheduled castes 1.71*
Others
Other Backward Classes 1 .70*
Religion
Hindu® 1.00 Others 1.41
Muslim 1.21*** Religion

Others 0.81* Hindu® 1.00
Size of the household Muslim 1.30*
Less than 5® Others

5 or more 1.04 Size of the house
Sex Less than 5 1.00
Male® 5 or more 0.84*
Female
Sex
Marital status
Male®
Single® 1.00 Female 0.17***
Currently married 1.57*** Marital status
State
Single 1.00
Rajasthan® 1.00
Currently married 0.85*
Andhra Pradesh 0.77**
State
Assam 0.74*
Rajasthan 1.00
Bihar 2.00***
Andhra Pradesh 0.37***
Gujarat Arunachal Pradesh 3.54*
Haryana 0.31***
Assam 3.83**
Himachal Pradesh
Bihar 1.60*
Karnataka 0.66***
Haryana 0.40*
Kerala 0.48***
Maharashtra 0.40***
Madhya Pradesh
Maharashtra 0.76*** Nagaland
Manipur 0.26* Punjab
Uttar Pradesh 0.65*

Meghalaya 0.73*
Tamil Nadu 1.43*
Nagaland 2.64**
Jharkhand 0.20*
Orissa
Uttarakhand 0.28*
Punjab
Tamil Nadu 0.78** Agea 0.98***
Tripura 0.12*** *p<0.1, **p<0.05, ***p
significant states are sh
West Bengal 1.28***
Chhattisgarh 0.61*** social group, r
Jharkhand state (model n)
Uttarakhand 0.35***
cation were fou
Age3 pared to those
*p<0.1, **p<0.05, ***p<0.001
significant inferred
states are that
shown t
Source: Same as in Table 1.
went down wit
We also found a negative association between educational were consisten
attainment and temporary migration. It showed that those with a can be seen th
lower level of education had the highest propensity to migrate. bi-variate resu
These relationships were not distorted even after controlling for more likely to
86 JANUARY 28, 2012 VOL XLVII no 4 Ш2Э Economic & Political weekly
groups. Muslims were significantly more likely to migrate than 5 Conclusions
Hindus and others. The results also showed that males had higher Temporary and seasonal migration has long been an important
odds of migrating than females. This could lead to the inference income diversification and risk-coping strategy in many agriculture-
that males have higher chances of migrating temporarily when based economies in the developing world. In places where access to
other factors are controlled for in rural areas. non-agricultural employment is limited, or climate (or technology)
The results suggested that people from Bihar and Gujarat were prevents continuous cultivation, seasonal migration is often the
two times more likely to migrate temporarily or seasonally com- key to a household's income during the agricultural lean season.
pared to those from Rajasthan (which has a temporary migration It is not only an important form of labour mobility in a country
rate equal to that of India). Rural inhabitants of Madhya Pradesh, with an increasing shift of the labour force from agriculture to
West Bengal, Nagaland and Jharkhand were more likely to migrate industry and the tertiary sector (Keshri and Bhagat 2010), but also
compared to the remaining states in the country. We found that critical to the livelihoods of socially deprived groups, especially
those belonging to economically backward and low-growth tribal people and those from rural areas who lack of employment
states had a higher likelihood of migrating seasonally. However, at their place of origin. This study presents regional patterns and,
Gujarat, a high-growing state, was an exception to this. This was more importantly, the socio-economic determinants of tempo-
probably because the state has had a history of seasonal migra- rary and seasonal migration in India more specifically.
tion from its southern and south-eastern parts that consist of dry, Regional variations in temporary migration are noteworthy in
hilly and tribal-dominated districts (Breman 1994; Krishna et al a country. Bihar, Jharkhand, Gujarat, Madhya Pradesh, West
2003; Jayaraman 1979). Bengal and Nagaland have a very high intensity of migration. All
The logistic regression results for the urban sample were more these states either have a high level of intra-state inequality or
or less similar to that of rural areas with an exception pertaining a high proportion of sts and ses. We observe stark rural-urban
to landholding (in model hi) (Table 8, p 86). It was observed that differentials in the intensity of temporary migration, which may
those from households with more than 4 hectares of land had a be explained by differentials in levels of economic development in
higher likelihood of migrating seasonally. After controlling for rural and urban areas and the resulting availability of employment.
other socio-economic variables (in model iv), we find that in ur- Overall, temporary and seasonal migration declines with better
ban areas as well the chances of temporary migration decreased economic and educational status. In rural areas, those with in-
with increasing income. creasing incomes become less prone to migrate temporarily. Social
This result is in contrast to an earlier study pertaining to urban factors play a critical role in migration decisions. Those belong-
areas by Keshri and Bhagat (2010). Further, there was an impor- ing to sts have a higher chance of migrating seasonally than peo-
tant deviation from the findings on rural areas in that ses and ple in any other social group. This finding corresponds to earlier
OBCs had higher chances of migrating temporarily in urban studies, which have documented that lower caste and tribal people
areas. The same was true of lower educational levels, which trapped in poverty have a greater propensity to migrate seasonally
meant urban inhabitants with less than middle-level education
(Breman 1996; Deshingkar and Start 2003; Keshri and Bhagat
had higher chances of migrating temporarily. The results
2004; Mosse et al 2005; Rao and Rana 1997; Rao 2005; Rogaly et
suggested that urban people from Bihar, Tamil Nadu, Assam,
al 2001). In short, the study concludes that temporary mobility is
Arunachal Pradesh and Nagaland were more likely to migrate
higher among the poorer sections of Indian society irrespective
seasonally than from other states in the country. of the level of economic development of the states concerned.
NOTES
Development Repor
Dayal, H and А К Karan (2003): Labour Migration
Institute, London.
from Jharkhand, Institute for Human Develop-
1 Keshri and Bhagat (2010) point out that according
Brauw,
to earlier NSS migration-related data (1999-2000), A ment, D New Delhi. (2007): "Se
ture in Vietnam",
Deshingkar, P (2006): "Internal Migration, Poverty ESA
a larger proportion (around 20%) of temporary
(FAO: Agricultural
and Development in Asia", Briefing Paper, Over-
migrants belonged to the 0-14 age-group. Such
Division). seas Development Institute, London.
discrepancies are not found in the 64th round
(2007-08).
Breman, Deshingkar, (1978):
J P and S Akter (2009): "Migration and "Seaso
Capitalism: Human Development Crushing
in India", Research Paper
2 We consider the working age-group (15-64) Sugar popu- Factories of Bar
2009/13, Human Development Reports, UNDP.
lation for the analysis because it is assumedWeekly,
that 13
Deshingkar, P and J(31),
Farrington (2009): "A Frameworkpp 131
temporary migration is employment-related. -How- (1994): Wage
of Understanding Circular Migration"Hunter
in P Desh-
ever, for state-wise estimates, the whole sample Work in ingkar the and J Farrington (ed.), Urban
Circular Migration an
was considered.
Gujarat (Delhi: Oxford
and Multilocational Livelihood Strategies in Rural
3 Binary logistic regression models are used where - (1996): IndiaFootloose
(New York: Oxford University Press). L
the dependent variable is in a binary form. Informal Deshingkar, Economy
P and S Grimm (2005): "Internal Migration (C
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Chandrasekhar, for International Organisation for Migration,
С P and
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Economic Reforms and Growth in India

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Secularism: Its Content and Context
AKEEL BILGRAMI
1
Secularism is sometimes said to consist merely in a
state's neutrality and equidistance between different
larism". I will want to make something of them at different
religions. Charles Taylor has influentially argued for such
I begin larism".
stages ofstages with ofofI themy argument
the passage will threeinpassage wantforfundamental
this paper the to of make my argument something features in of of this the them idea paper at of different for "secu- the
a position for some time. This paper presents
conclusion - among others -reasons
that the relevance of secularism is to
reject such an understanding of secularism.
contextual in veryBut,
specific ways. as a
If secularism
result of this alternative conceptualisation, the has its relevance paper
only in context, then it is natural
and right to think that it will appear in different forms and guises
makes two further arguments. First, for the conclusion
in different contexts. But I write down these opening features of
that secularism is not a general political truth,
secularism at the outset becausesuited
they seem to me to be invariantto
all historical contexts, but rather apt only
among thein some
different forms that secularism may take in different
contexts. It is
contexts, such as, for instance, when there is hard to imagine
an that oneimplicit
has not changed the sub-
ject from secularism to something else, something that deserves
and pervasive threat of "majoritarianism". And second,
another name, if one finds oneself denying any of the features
for the conclusion that any justification and
that I initially list below. Though I say this is "hard to imagine", I
implementation of secularism in contexts which
do not mean to deny that there is a strong are
element of stipulationnot
fully modernist - in a sense of "modern"in thesethat

initial assertions to come.was
I cannot pretend that these are
claims or theses about some independently identified subject
articulated first in western Europe - must turn on an
matter - as if we all know perfectly well what we are talking
appeal to the conceptual vernacular. about when we speak of secularism - and the question is only
about what is true of that agreed upon concept or topic. The point
is rather to fix the concept or topic. But, on the other hand, such
talk of "fixing" should not give the impression that it is a matter of
free choice, either. Once the initial terminological points about
"secularism" are made, the goal of the rest of the paper will be to
show why they are not arbitrary stipulations. So the reader is
urged to be unreactive about these initial topic-setting assertions
until the dialectic of the paper is played out.
First, secularism is a stance to be taken about religion. At the
level of generality with which I have just described this, it does
not say anything very specific or precise. The imprecision and
generality have two sources. One obvious source is that religion,
regarding which it is supposed to take a stance, is itself, notori-
ously, not a very precise or specifically understood phenomenon.
Charles Taylor read a draft of this paper with muchBut tocare
the extent that weand
have a notion ofacute
religion in currency -
comprehension and responded with a generous and howeverdetailed account
imprecisely elaborated - "secularism" will have a para- of
the points on which we are agreed and disagreed. Despite the remaining
sitic meaning partially elaborated as a stance regarding what-
disagreements, I am grateful to him for the improvements that I was
ever that notion stands for. Should we decide that there is no vi-
able to make as a result of having to address his response. I am also
ability in any notion of religion, and should the notion pass out
much indebted to Carol Rovane, Jeffrey Stout, Ira Katznelson,
of conceptual
Michael Warner, and David Bromwich, for detailed comments oncurrency, secularism too would lapse as a notion
the earlier draft in which they made a number of helpful
with a suggestions
point and rationale. The other source of imprecision is
and criticisms, as well as to Prabhat Patnaik, Aijaz Ahmad, Vivek
that I have said nothing specific or precise about what sort of
Dhareshwar, and Al Stepán, who also took the trouble to read the paper
stance secularism takes towards religion. One may think that it
and made useful responses.
has to be in some sense an adversarial stance since surely secu-
Akeel Bilgrami ( ab41@columbia.edu ) is with the Department of
larism, in some sense, defines itself against religion. This is true
Philosophy and Committee on Global Thought of Columbia University,
New York, the United States. enough, but still the very fact that I find the need to keep using
the qualifier "in some sense" makes clear that nothing much has
Economic & Political weekly Щ35Э January 28, 2012 vol xlvii no 4 89
SPECIAL ARTICLE = êeee
been said about the kind

refer of
to anything that is opposing
outside of that reach, but to stance
focus on th
Part of the point of something
this specific
essay (the polity) and
is attempt
to to keep
add it or steer
a it little
this question. outside of some specified aspects of that reach.
Second, for all this generality just noted, "secularism" - unlike
Not a Good in Itself
"secular" and "secularisation" - is quite specific in another
regard. It is the name of a political doctrine. As a name, it may not Third, secularism, as a stance regarding religion that is restricted
always have had this restriction, but that seems to be its predomi- to the polity, is not a good in itself. It seeks what is conceived by
nant current usage. So, to the extent that it takes a stance vis-à-vis those who favour it to promote certain other moral and political
religion, it does so only in the realm of the polity. It is not meant goods, and these are goods that are intended to counter what are
- as the terms "secular" and "secularisation" are - to mark highly conceived as harms, actual or potential. This third feature may
general and dispersed social and intellectual and cultural pheno- be considered too controversial to be regarded as a defining
mena and processes. Unlike the term "secularisation", it is not so feature, but its point becomes more plausible when we contrast
capacious as to include a stance against religion that requires secularism with a more cognitive (rather than political) stance
redirection of either personal belief or, for that matter, any of a regarding religion, such as atheism. For atheists, the truth of
range of personal and cultural habits of dress or diet or. . .Thus it atheism is sufficient to motivate one to adhere to it and the truth
is not a stance against religion of the sort that atheists and of atheism is not grounded in the claim that it promotes a moral
agnostics might wish to take or a stance that strikes attitudes (to or political good or the claim that it is supported by other moral
say nothing of policies) about the hijab. The increase in a society or political values we have. By contrast, secularists, to the extent
of loss of personal belief in God or the decrease in church- or that they claim "truth" for secularism, claim it on grounds that
synagogue- or mosque-going or the surrender of traditional reli- appeal to other values that support the ideal of secularism or
gious habits of dress or prohibitions against pork, may all be signs other goods that are promoted by it. Secularism as a political
of increasing "secularisation" but they are irrelevant to the idea doctrine arose to repair what were perceived as damages that
of secularism. The reason for this is rather straightforward and flowed from historical harms that were, in turn, perceived as
obvious. It should be possible to think that a devout Muslim or owing, in some broad sense, to religion. Thus, for instance, when
Christian or Hindu can be committed to keeping some aspects of it is said that secularism had as its vast cradle the prolonged and
the reach of his religion out of the polity, without altogether giving internecine religious conflicts in Europe of some centuries ago,
up on being a Muslim, Christian, or Hindu. And it seems natural something like this normative force of serving goods and correct-
today to express that thought by saying that such a person, for all ing harms is detectably implied. But if all this is right, then it
his devoutness, is committed to secularism. And one can say this follows that one would have to equally grant that, should there
while noticing and saying something that it is also natural to be contexts in which those goods were not seen necessarily to be
think and say: such a devout person, in being devout, is holding goods, or to the extent that those goods were being well served
out against the tendencies unleashed by the long social and idea- by political arrangements that were not secularist, or to the
tional processes of secularisation. And we can appreciate the extent that there were no existing harms, actual or potential,
naturalness of this restriction of the term "secularism" to the that secularism would be correcting, then one could take the
opposing normative stance and fail to see the point and rationale
polity when we observe that the slogan "separation of church and
for secularism.
state" (which, whatever we think of it, is part of what is conveyed
to many by the ordinary usage of the term "secularism") allows
2
one the church, even as it separates it from the state, or, more
generally, from the polity. I want to now turn from features that define or characterise secu-
If we did not believe that the term was to be restricted in this larism to features of its justification and basis of adoption.
way, we would either have to collapse secularism with secularisa- In a paper written in the days immediately following the
tion or - if we insisted on some more subtle difference between fatwa pronounced against Salman Rushdie, called "What Is a
those two terms - we would have to invent another term alto- Muslim?",1 1 had argued that secularism had no justification that
did not appeal to substantive values, that is to say, values that
gether (a term that has no cognate relation to this family of terms
some
- secular, secularisation, secularism) to capture the aspiration ofmay hold and others may not. It was not justifiable on
purely rational grounds that anyone (capable of rationality)
a polity to seek relative independence from a society's religiosity.
I believe that any such neologising would be a stipulative act
would
of find convincing, no matter what substantive values they
far greater strain and artificiality than reserving one of these
held. I had invoked the notion, coined by Bernard Williams as
"internal reasons", to describe these kinds of grounds on which
terms ("secularism") for this aspiration since, as I said, it is anyway
implied by the slogans that accompany the term. What then
its of
justification is given.2 Internal reasons are reasons that rely
the contrast of "secularism" with "secular"? Unlike the latter on specific motives and values and commitments in the moral
term which is often said to refer innocuously and indiscrimi-
psychologies of individuals (or groups, if one takes the view that
groups have moral-psychological economies). Internal reasons
nately to all things that are "worldly" in the sense of being outside
are contrasted with "external reasons", which are reasons that
the reach of religious institutions and concerns (outside the cloister,
in the "mundiality" of the world at large, as it were), "secularsomeone
ism" is supposed to have quite independent of his or her
substantive values and commitments, that is, independent of
aspires to be more concentrated in its concern - to not merely
90 January 28, 2012 vol XLVii no 4 I™ Economic & Political WEEKLY
SPECIAL ARTICLE
elements in the psychologies that motivate people. Bernard Contractualist Doctrine

Williams, recapitulating Humean arguments against Kantian Perhaps all this is obvious. However, for reasons having to do
forms of externalist rationality and the universalism that might with Rawls scholarship, I have been a little wary of this use of the
be expected to emerge from it, had claimed that there are no notion of overlapping consensus since in Rawls it has always
such things as "external reasons". Whether that general claim is been a notion embedded in the framework of his celebrated idea
true or not, my more specific claim had been that there are no of the "original position", i e, the idea that one contract into poli-
external reasons that would establish the truth of secularism. If cies to live by without knowledge of one's substantive position in
secularism were to carry conviction, it would have to be on society. I find myself completely baffled by why the idea of the
grounds that persuaded people by appealing to the specific and
original position is not made entirely redundant by the notion of
substantive values that figured in their specific moral psycho-
an overlapping consensus. If one did not know what one's sub-
logical economies.3 Such a view might cause alarm in those who
stantive position in society is, one presumably does not know
would wish for secularism a more universal basis. Internal rea- what one's substantive values are. If so, the very idea of internal
sons, by their nature, do not provide such a basis. As, I said,
reasons can have no play in the original position. It follows that if
internal reasons for some conclusion that will persuade someone were to adopt an overlapping consensus on the basis of diver-
people may not persuade others of that conclusion, since those
gent internal reasons that contractors may have for signing onto
others may not hold the particular substantive values to which
a policy, then the original position becomes altogether irrelevant
those reasons appeal and on which those reasons depend. Onlyto the contractual scenario. Of course, if one were to completely
external reasons could persuade everyone since all they require
divorce the idea of an overlapping consensus from Rawls' concep-
is a minimal rationality possessed by all (undamaged, adult)
tual apparatus within which it has always been formulated (even
human minds and make no appeal to substantive values thatin his last published work, The Law of Peoples),5 then it would be
may be variably held by human minds and psychologies. Alarm-
exactly right to say, as Taylor does, that secularism should be
ing thought it might seem to some, there is no help for this.
adopted in pluralistic society on the basis of an overlapping con-
There are no more secure universal grounds on which one can
sensus. But now, the only apparatus one has to burden the con-
base one's argument for secularism. tractors with is the capacity for internal reasoning, that is, with
Charles Taylor has convincingly argued that in a religiouslypsychological economies with substantive values that yield inter-
plural society, secularism should be adopted on the basis of what
nal reasons. Rawls would not be recognisable in this form of con-
Rawls called an "overlapping consensus".4 An overlapping contractualist doctrine. Indeed one would be hard pressed to say
sensus, in Rawls's understanding of that term, is a consensus that
on one was any longer theorising within the contractualist tra-
dition at all, which is a tradition in which serious constraints of
some policy that is arrived at by people with very different moral
and religious and political commitments, who sign on to the pol-
an "original position" or a "state of nature" were always placed as
icy from within their differing points of view, and therefore methodological
on starting points in the making of a compact.
possibly very different grounds from each other. It contrasts with
Shorn of all this, one is left with something that is the merest
the idea that when one converges on a policy one must all docommon
so sense, which it would be bombastic to call "a social con-
for the same reason. tract". We now need only say this: assuming no more than our
What is the relation between the idea that secularism should capacity for internal reasoning, i e, our capacity to invoke some
be adopted on the basis of an overlapping consensus and the ideasubstantive values we hold (whatever they may differentially be
presented in the earlier paragraph about internal reasons beingin all the different individuals or groups in society), we can pro-
the only reasons available in justifying secularism? A very closeceed to justify on its basis another substantive value or policy -
one. The latter idea yields (it lies behind) the former. The relationfor example, secularism - and so proceed to adopt it for the
is this. Internal reasons, unlike external reasons, may vary from polity. If this path of adoption by consensus, invoking this inter-
person to person, group to group. This may give the impressionnalist notion of justification, works in a religiously pluralist soci-
that there simply cannot be a consensus if we were restricted to ety, it will be just as Taylor presents it, an overlapping consensus,
the resources of internal reasons. But that does not follow. Or at with none of Rawls' theoretical framework.
any rate, it only follows if we assume that a consensus requires
that all sign onto something (some policy or political position,3
such as secularism) on the same grounds or for the same reason.The last two sections have respectively presented points of defi-
In other words, on the basis of an external reason or reasons. Butnition of secularism and points of its justification and basis of
such an assumption is a theoretical tyranny. Without that as- adoption. I think it is important to keep these two things separate
sumption, one could say this, if there is to be a consensus on someon the general ground that one needs to have a more or less clear
political outcome on the basis, not of external but of internal rea-idea of what we are justifying and adopting before we justify and
sons, it will presumably only be because different persons or
adopt it.
groups subscribe to the policy on their own, different, grounds. In a very interesting recent paper, Charles Taylor, has argued
This just is the idea of an overlapping consensus. If there werethat we need to redefine "secularism".6 It is a complex paper with
external reasons for a policy, one could get a consensus on it of ahighly honourable political and moral motivations that underlie
stronger kind and would not need to hold out hope for a merely it. But, speaking more theoretically, I do not think it is quite as
"overlapping" consensus. well motivated.
Economic & Political weekly Q3Q January 28, 2012 vol xlvii no 4 91
SPECIAL ARTICLE =
The paper begins by

"secularism" saying
to the polemical that
sense of non- or anti-religious, the there
secularism - one,
desirethe idea
to establish secularism on the basis ofof the
an overlapping con- separ
and the other that the
sensus of internal state
reasons. The question is, is it wise maintain
or necessary a
different religions within
to redefine a and
secularism to pursue these instincts plural
motivations? societ
rect an overemphasis on the first by st
4
the second aspect and wishes to modif
following lines. Let me, then, turn to a way of characterising (I say characterising
In modern societies,
because perhaps "defining"we seek
is too constricting a term for what various
particular (echoing
both Taylor and I are interested in, but I will not always avoid talk goods
the trio of e
gan) that remain of "definition"
relevant since it is the word Taylor to
himself uses)secular
secularism asp
worship, the equality of
that is, or to put it more different
cautiously, that may be, at odds with fait
just equality, we need
Taylor's. to
(I add this caution because, give
despite what it seems to meeach fa
the shape of the society, so there
at present, it may turn out that we are not much at odds and it is mu
within which negotiations,
really a matter of emphasising different things.) with each
is crucial. What isI havemore,
said that it is a good idea, because
as Taylor suggests, to start the fi
ration of church with
and state
certain ideals that was
do not mention religion or opposition totoo focu
aspect's stress on
religion, andreligious diversity
then move on to talk of political and institutional
expanded to arrangements the
include involving the role of the state and that
fact its stances in lat
of pluralist societies contains
towards religion. So, just because it is what is most familiar to us not ju
people, but non-religious people
in our tradition of political theory and philosophy, let us start as well
also be included in the
within a liberal framework, mix. All
let us start with some basic ideals this is
and ideal of a redefined
and the fundamental rights andsecularism.
constitutional commitments that
So, to sum up his explicit
enshrine them, motivation
just as Rawls and Taylor propose. Starting with
capacious definition of
them as the basic, secularism:
though tentative, givens, I suggest we embrace Ther
state maintaining
Taylor's a
accountneutrality
only up to a point and then add something that and equ
gion. There the is
importance
does not seem to be emphasised by him, indeed something that of a so
cratic participation of all religious
he may even wish to be de-emphasising in his redefinition. vo
commitments. And there is the need
from just Non-Arbitrary
religion toStipulation
acknowledging an
of cultural diversity and
I propose, then, something a
like the following variety
non-arbitrary stipu- of
cluding lation as a characterisation
non-religious of secularism that contains
ones. These all of the are a
a society that three features I had mentioned
pursues them at the outset. would be m
that does not. The (S): Shouldquestion is
we be living in a religiously plural society, secular-how doe
ference to how we theorise about
ism requires that all religions should have the privilege of free the
secularism? There is
exercise and be no
evenhandedlydenying
treated except when a religion's that it
ularism, but it is not
practices obvious
are inconsistent to
with the ideals that a polity seeksme
to that
One of the things that
achieve (ideals, often, thoughhe
not always, finds
enshrined in stated distort
defined along the unrevised
fundamental lines
rights and other constitutional commitments) in that h
that, so
defined, which
it has
case there been
is a lexical ordering too
in which the political ideals focused
ments". Slogans such
are placed first. as "separation of
mantras and as Much commentary
they is neededthey
do, on this minimal andsuggest
basic i
that are fixed. characterisation.
Once done, it is hard not
tions, but also toHere reconceptualise
are some miscellaneous points of commentary in no par- secu
order to maintain
ticular both theoretical
order, that help to situate and motivate (S), thereby show- and
to allow the ideals in
ing why, questions
as a stipulation, (the
it is non-arbitrary, and where it may ech
fraternity mentioned above) to determ
seem to depart in emphasis and implication and significance
than these slogans, which
from Taylor's redefinition. point to inst
stop or preempt conversations about h
In keeping with (a)this point,
To begin with, (S) makes explicit mention ofhe applaud
the sort of thing
certain ideals such as
that Taylor "human
thinks it is important to stress, the rights,
evenhanded, neu- eq
mocracy" rather tral
than distance betweenanti-religious
different religions in a religiously plural (or
principles), and then
society. However,proceeding
the "qualifier" that (S) opens with, "Shouldto we con
larism to be in line
be living inwith them.
a religiously plural society. . ." is there to point out that
This is just right, I is abelieve,
secularism as
doctrine that may be relevant are
even in societies the
cal instincts that prompt
where there Taylor's
is no religious plurality. If there is a mono -religious app
"secularism": the society,
desire it is not as if secularism
for becomes irrelevant. In such a
greater flex
92 January 28, 2012 vol XLVii no 4 Q3Q Economic & Political weekly
SPECIAL ARTICLE
society, there may still be a point in a lexical ordering of the sort (c) I had said that the first basic defining feature of secularism is
that characterises secularism in (S). If there are ideals that form that it is some sort of a stance regarding religion. What sort of
the starting point of one's construction of the content of secular- stance is (S)? The point in the previous paragraph brings out
ism, and one wishes to protect those ideals, then should the sin- how, as a stance, it is more adversarial than Taylor wishes secu-
gle religion of such a society run afoul of them, the lexical order- larism to be, but it is by no means obsessively seeking religion out
ing will have a point. Thus secularism has a broader relevance as a target. It is certainly not trying to polemically remove it root
and meaning than one which - as in Taylor's redefinition - only and branch from public life, in all its social, cultural and intel-
ties it to the idea of being neutral and even-handed with a plural- lectual aspects, in a way often suggested in recent writings by
ity of religions as well as various non-religious points of view. today's doctrinaire atheists. This is because (S) keeps strict faith
Speaking more generally, though Taylor applauds Rawls for with the second elementary feature of secularism mentioned at
adopting this starting point in which the examples of the ideals the outset, viz, that it is only, and precisely, a political stance, a
are basically those of a liberal polity in a society with plural social stance regarding religion only as it affects the polity. It is not dis-
interests and concerns, there may be other societies in which mayed by or concerned with the presence of religiosity in the
there is less plurality and, so the starting point may formulate society at large or in the personal beliefs of the individual citizens
other ideals. This point may have decreasing significance in mod- as so much of the ideological urge for secularity in the modern
ern societies in which there is undeniably much plurality, and es- period does. The lexical ordering merely says that if and when
pecially when religions have themselves become considerably there is an inconsistency that arises between certain goals sought
fragmented from within in doctrine as well as practice; but I to be achieved in a polity that are formulated independently of
think it is worth retaining the point for those societies where the religion, and the practices of a religion, the former must be
reach of modernity is not comprehensive and where there is not placed first and the latter second.
much in their root and their locality to which a specifically plu- Quite apart from the fact that it is restricted to political mat-
ralist starting point for secularism speaks with urgency. Secular- ters, the antecedent in the conditional "if and when there is an
ism might still speak to their concerns regarding religion without inconsistency..." makes it clear that even within this restricted
doing so via the goals of pluralism, but via other goals addressing domain, there is no harm to be found in the presence of religion,
other problems that they find more central. so long as it does not clash with certain fundamental ideals and
commitments of the polity.
(b) The more important point of difference between (S) and the
sort of redefinition Taylor is seeking is that when characterising Examples of the Political Domain
secularism, (S) squares with his urge to be non-phobic and ac- What sorts of things are clear examples of the political domain
commodating towards religion as well as with his idea to have and of the priority being proposed within it, by the lexical
the state keep a neutral and equal distance between all religions ordering? The examples are hardly exotic.
- but then emphasises something else as well: the lexical order- Take a society in which the commitment to free speech is a
ing. The point of this latter essential element of the characterisa- fundamental ideal of its polity. Assume, then, that it is our start-
tion is that (S) is a stance that can be adversarial against religious ing point, in just the way Taylor urges. Let us, then, also assume
practices and laws, but only when, from the point of view the ide- that there are religions and religious practices in that society,
als one starts with, it needs to be that, i e, when those practices those of Christianity and Islam, say, but not Buddhism, which
and laws go against the very thing that Taylor himself thinks we have strict commitments to censorship of blasphemy. (S) says
should start with - the ideals and goals (formulated without that it is important to see secularism as requiring the state to be
reference to religious or anti-religious elements) that a society even-handed towards religions in general, but not in any case
has adopted. when the lexical ordering comes to have application. And this is
The fact that one's starting point lies in certain ideals helps (S) such a case. In this case, the lexical ordering requires one to spoil
to avoid the charge that Taylor makes against some contempo- the neutrality by favouring Buddhism over Christianity and
rary formulations of secularism, viz, that they start with an Islam since the state must place the commitments to blasphemy
assertion of certain institutional arrangements with slogans or in these religions second and the commitment to free speech
mantras such as "the separation of church and state". Rather, in first, in the context, say, of the publication of novels such as The
the Rawlsian manner of which Taylor approves, (S) starts with Last Temptation of Christ or The Satanic Verses in a society such as
certain ideals and goals that the society wishes to adopt, and the Britain's with a polity defined upon basic liberal commitments.
lexical ordering suggests that the institutions should be shaped (It is interesting to note that Britain took a non-neutral stance in
and distributed in such a way that certain priorities articulated a quite different sense than the one I am recommending, weigh-
in the lexical ordering get implemented. There is certainly more ing down only on Islam but, as a result of Mary Whitehouse's
of a stress than in Taylor on the priority over religion of certain campaigns, not on Christianity. It is a question whether this hints
goals and ideals formulated in terms independent of religion. at the extent to which established religion is more than merely
Religion and its practices come second to these, if there is ever a nominal in Britain.) I will discuss free speech and another exam-
clash between them. But, just as Taylor would have it, it is these ple involving gender equality again later, but for now, I offer this
goals rather than any institutional arrangements that form the as a rather straightforward example of the occasion on which (S)
starting point. seems to depart from Taylor's understanding of secularism, by
Economic & Political weekly USDS January 28, 2012 vol xlvii no 4 93
SPECIAL ARTICLE
emphasising the "lexical ordering" ideal over the "neutralmotivation

and here in adding to the mix of things towards which the
equidistant" ideal of secularism that he favours. state must be neutral is not sufficient (not sufficiently particular)
I think in late modern societies committed to liberal ideals of to make the case that such censorship would be anti-secular by
this sort, it is a theoretical loss rather than gain to allow thatthe
a lights of a state neutralist ideal of secularism.
polity has been impeccably secular in any case in which it capitu-
Pluralist Elements
lates to the banning of a novel on the grounds that it is blasphe-
If he were to go beyond what are broad and natural groupings to
mous by the lights of a religion's customs or laws. One may - even
in late modern liberal societies - find good moral and politicalsomething much more indefinitely detailed in its pluralist count
reasons to ban the novel. That is not the theoretical issue I am in a society, counting as a group any group (however specifically
focusing on. What is theoretically questionable is only that described,
we blasphemers being just one example) that could claim
should describe the ban as falling well within the secular ideal.that
It there has been a lapse in neutrality by the state, after the fact
may well be that good politics or morals sometimes requires usof
tosome state action, it is very doubtful that there can be anything
at all that a neutralist state secularist ideal would yield by way of
put the secularist policy aside. But, it is secularist policy that we
would be putting aside. If a redefinition of secularism werepolicy.
to That is to say, there would hardly be any policy that would
deny this, that would be a questionable theoretical outcome be
of sanctioned as secular policy when there are an indefinite and
limitless number of conflicting groups whose points of view have
the redefinition. The stress on the neutral equidistance ideal over
to be equally respected. Indeed unless there was some ex ante
the lexical ordering ideal in a characterisation of secularism may
well lead to just such a questionable theoretical outcome in cases
specification of the pluralist elements that a state was to be neu-
tral between, the ideal amounts to nothing that can be interest-
such as this. A society whose polity banned both the Kazantzakis
ingly specified at all. What I think we must assume such an ideal
and the Rushdie novel on grounds of their being blasphemous by
envisages, if it is to envisage something plausible, is not that
the lights of two different religions that were being treated neu-
"blasphemers" are ex ante counted as a group who must be pro-
trally in this twin banning, meets the neutral and equidistant
state ideal of secularism, but fails to meet (S). tected when devising state policies, but rather something like
this: Muslims, Christians, Jews, Hindus, etc, as well as "non-reli-
It cannot really be argued on Taylor's behalf that such a twin
gious" people (a fragment among whom will be novelists, film-
and symmetrical banning does not satisfy the state neutralist
makers, etc that satirise, vilify, one or other religion) all must
ideal of secularism by pointing out that he has allowed into the
groups that the state must be neutral towards, non-religious
equally have a voice in the policies that a polity will adopt. What-
ever policy is adopted once this fraternal deliberation takes
people as well. What these religions find blasphemous are not
just the expression of a point of view described innocuouslyplace,
as must count as the policies of a secular state according to
this ideal. After all it is the outcome of a state allowing even-
"non-religious", it is the expression of views that trash, cartoon
and satirise their most cherished and deep commitments with
handed voice to all groups. Now, it may turn out that non-reli-
contempt as Rushdie or Kazantzakis (or Bunuel or Arrabal...)
gious people will want protection for the fragment among them
did. So, a state that decided to keep all these things (even-hand-
that have offended religions deeply in the novels they write or the
films they make. And if they carry the day in the deliberation,
edly for both - indeed all - offended religions) out of circulation
in bookshops and cinemas would not be failing to be neutral and
then the outcome of this state neutralist ideal process of decision-
making will coincide with the outcome of a lexical ordering im-
fair towards a group under the description "non-religious" peo-
posed by (S), i e, they will be co -extensive, (not co-intensive) out-
ple. It would be failing to be fair towards "blasphemers", not ex-
actly a natural or routine category or grouping by any pluralist
comes. But, it may turn out instead that the fraternal deliberation
with all voices involved yields a policy that evenhandedly bans
count of society. So, I assume that the only protection that blas-
novels and films considered blasphemous by various religions,
phemers can properly expect to get is from secularists who be-
lieve in (S), not secularists who wish to be neutral and equidis-
and if it does, the policy will also count as secular since the crite-
tant between religious and "non-religious" people. Those last
rion of fraternal and equal participation of freely speaking voices
two or three words of the last sentence are too bland a descrip-
will be satisfied. The point is that (S), however, will never count
such an outcome as secular, so long as free speech is an ideal one
tion in the state neutralist ideal to warrant our saying that such
begins with. The adoption of the policy will always fall afoul of
an ideal has the very particular focus needed to count the censor-
ship of something so specific as hurtful and contemptuous writ-
the lexical ordering that is essential to (S)'s formulation of secu-
ing against a religion, as anti-secular.7 What is clearly moving
larism. And, just for that reason, I am saying, (S) has things more
theoretically right about what secularism is.
Taylor is that a genuine pluralism in many contemporary societies
has to acknowledge as a natural grouping in the plural mix, not
(d) In a clarifying response in personal correspondence to a
only Hindus, Muslims, Christians, but also non-religious people.
Taylor is concerned to respect this development in the pluralism
draft of this paper, Charles Taylor makes a point of real impor-
of our time. And what I am saying is that we should certainly
tance and relevance for the present in explaining why he thinks a
characterisation of secularism should not incorporate the first
grant him that that is a correct way to modify "the neutral and
feature of secularism that I had mentioned at the outset, viz, that
equidistant ideal of secularism" he favours, but then say, even
so, that when we speak of pluralism and its groupings today,
it is a stance regarding religion. He expresses the anxiety that the
sort of lexical ordering I propose which mentions explicitly the
"blasphemers" is not a natural grouping. As a result, his pluralist
94 January 28, 2012 vol XLVii no 4 ШЗИ Economic & Political weekly
SPECIAL ARTICLE
importance of placing one or other ideal or goal of a polity be- states, for familiar statist reasons, track whatever the media calls
fore some religious practice or custom or law, might sometimes or fails to call attention to. But that a state should be implicated in
have the effect of having the secular polity equate some unrepre- that sort of thing is independent of whether the state has adopted
sentative element of a religious population with "the religion" in secular policies as characterised by (S). One of the real sources of
question. The woeful effects of just this sort of thing are familiar difficulty is that states, including liberal states, have no (and, by
from the present cold war being waged against "Islam" on the the nature of the case, cannot have any) political mechanisms by
basis of a few acts of atrocity by a small fraction of Muslims. This which to introduce intra- community démocratisation that would
is what Taylor says: show the practitioners to be an unrepresentative minority within
Here's where the hard-line secularist focus on religion alone leads to the community. Liberal politics has institutions which, via mech-
tragic and destructive moves. They attack 'Islam' for instance for anisms like elections, calibrate representation with numbers of
female genital mutilation, and for honour killings. And they seem to people. This happens, as we know, at the federal, state, regional,
have a semblance of justification in that the communities who practice
and even municipal level, but unlike these levels, religious com-
these can see them as religiously sanctioned. They tar the whole com-
munity with this brush, and drive moderates into the arms of funda-
munities are too dispersed and too imprecisely defined to have
mentalists. Whereas, as Anthony Appiah has argued, the most effec- such mechanisms. Whether there can be intra-community démo-
tive way of ending these practices involves making allies with the cratisation of a kind that does not depend on such representative
more orthodox who can effectively convince Islamic societies that institutions is a subject that needs much more study than it has
they are deviant to the message of the prophet.
had in political sociology. Until such démocratisation, a small frac-
As with everything else that prompts him on this matter, this is a tion within a community, which has the shrillest voice and the
humane and politically perceptive concern. But I do not find my- most activist presence, may often get to be seen as more repre-
self convinced that these considerations, despite their great im- sentative of the community than it deserves, by its numbers, to be,
portance today, are to be diagnosed as flowing from a characteri- since the media will typically pay the most attention to the most
sation of secularism that incorporates the lexical ordering in the audible voices, and the state, for typical reasons of state, will do
terms that I have presented it. As I presented it, there is nothing so as well. This, not secularism as formulated in (S) should, at
in (S) that constitutes an "attack" on religion as a generality. In bottom, be the diagnosed source of Taylor's quite proper anxiety.
particular, when female genital mutilation or honour killings are Taylor is rightly anxious too that when there is an equation of a
identified as practices to be placed second in the lexical ordering, religion with a small fragment of its members and its practices, it
Islam, as a generality, is not "under attack". Rather, the claim is can sometimes have the effect of driving ordinary devout people,
entirely conditional: If there be a claim by those who practise as he puts it, "into the arms of the fundamentalists". But again it
them that these practices owe to a religion and if that claim is is not clear why secularism as (S) elaborates it has any role to
correct, then the placing of the practice lower in the lexical order- play in this. It is a complex question why non-practitioners of
ing than the moral and political ideals they run afoul of, would be the practices in question do not always distinguish themselves
properly called a "secularist" policy on the part of the state. That vocally and explicitly from (the far smaller number of) the practi-
is all that a characterisation of secularism as (S) amounts to. I do tioners. Speaking more generally, it is a complex question why
not see that, so understood, secularism as a stance regarding reli- ordinary devout people remain a large but silent majority and
gion has the effects that Taylor thinks it does. If it should turn out do not speak out against the relatively small numbers of extremists
that nothing in the religion in question sanctions these practices, and fundamentalists in their community, with whom they share
then the ideals and goals of the polity may supercede these prac- so little by way of ideas and ideology? The answer to such ques-
tices in a lexical ordering, but that lexical ordering would not be tions would have to invoke a whole range of factors, all of which,
the lexical ordering characterised in (S) which specifically men- I think, are at some distance from (S) - factors that make them
tions religion. In that case, secularism, being a stance regarding feel as if they are letting the side down if they were to be openly
religion, is not a notion that descriptively applies to such a case. critical of anyone in their community, even those whose views
and practices they have no sympathy for. In the case of Islam, this
Irresponsible Media defensively uncritical psychology has been bred by years of colo-
Moreover, though the anxiety that a whole community is being nial subjugation, by continuing quasi-colonial economic arrange-
tarred by the brush of these practices of a fractional group in the ments with American and European corporate exploitation of
community is a genuine and justified anxiety to have, it is not energy resources of countries with large Muslim populations, by
clear how (S) as a characterisation of secularism is responsible immoral embargoes imposed on these countries that cause un-
for its happening. True, as a formulation of secularism, (S) men- told suffering to ordinary people, by recent invasions of some of
tions religious practices without distinguishing between the these countries by western powers, and finally by the racialist at-
numbers that do and do not practise them. But it is not such a titudes towards migrants from these countries in European na-
general understanding of secularism that gives rise to the public tions. It is these factors that are responsible for ordinary Mus-
impression that the religion in question is itself to be identified lims, who might have otherwise been more willing to criticise
with the practice. What is really responsible for it is an irrespon- fundamentalists in their community, focusing instead primarily
sible media that does not care to distinguish finely enough on an enemy that is perceived to be external rather than internal.
between the practitioners and the rest of the community. And it One might think that the rhetoric of "secularism" (like the
is not as if states are completely innocent of responsibility since rhetoric of "democracy") plays a role in the anti-Islamist drumbeat
Economic & Political weekly ЕЗШ January 28, 2012 vol xlvii no 4 95
SPECIAL ARTICLE =
of propaganda that accompanies these other factors and, there-

(e) Though (S) insists sturdily on the invariance of the lexical
ordering
fore, it in turn plays a role in making the vast majority of in all contexts where there is secularism, it allows for
ordinary
Muslims unwilling to be critical of the offending practitioners in differential in the form secularism may take be-
much contextual
cause it
their midst. That might sometimes be so. But if and when it allows
is so,for much variation in the ideals that are placed
the right thing to do is not to ask that secularism be redefined,
first in the lexical ordering.
but to demand that one should drop talk of secularism and focus
Thus, for instance, the values and rights may vary from consti-
instead on trying to improve matters on what is reallytution to constitution, but one can assume that if it is liberal
at stake:
democracies
the effects of a colonial past, a commercially exploitative present, in late modernity one is concerned with, then there
will be substantial
unjust wars and embargoes, racial discrimination against mi- overlap of the basic and familiar values -
grants in Europe, and so on. It is a change in these things, not
freedom of a say, or racial and gender equality, and so on.
speech,
redefinition of secularism, that will draw ordinary Muslims out
In other sorts of societies, the ideals may be substantially differ-
of "the arms of fundamentalists", that will give the vast
entmajority
and there may be less stress on the basic freedoms and social
of non-practitioners the confidence to come out of their
forms silence
of equality. Thus some socialist societies have stressed eco-
nomic equality
and their defensive psychologies to distinguish themselves from and the right to work more than they have
those whom they find to be a small but extreme and unrepre-
stressed basic freedoms... And there will, no doubt, be yet other
sentative minority in their community's midst. forms of ideals and commitments in yet other societies that the
In the quoted passage, Taylor implies that secularism,
lexicalas for mentioned in the stipulated characterisation of
ordering
instance defined by (S), would spoil the chances of making
secularismalli-
will place before the religious practices inconsistent
ances with the orthodox in a community whose voices would
with them. The point is not to lay down very specific ideals that
have the most chance of bringing about an end of the offending
form a definite list. The point rather is to stress the role of the
practices. It is perfectly possible for a state to sometimes
priority judge
such ideals (whatever they may be) will have in the lexical
that it would be better for it to forge alliances with the orthodox
ordering that forms the heart of the characterisation of secularism.
element in a community to get it to speak up for an end to The last point has wider implications that distinguish between
a certain
offending practice rather than adopt a policy like (S) that
(S) andopposes
Taylor's redefinition in a rather sharp way. One should be
the practice that the orthodox element gives support
ableto. That
to characterise secularism independently of whether a polity
would be to surrender secularism for a more effective ispragmatic
authoritarian or liberal in its fundamental orientation. Taylor,
strategy. It would not be to adopt a different ideal of secularism.
as I said, mentions with approval Rawls' starting point in certain
rights and other liberal ideals. This is an approval one may share
Internal Reasons
without actually insisting that there cannot be variation in the
I myself think that what is needed is for a secular form
statethatto
thehelp
ideals take or the ideals themselves. The theoreti-
provide internal reasons to the community, includingcally
the ortho-
important requirement is not that there be this or that ideal
doxy that supports the practice, to persuade it to change
but thatsome ofideals that do not get articulated in terms that
there be
its commitments. Such a strategy is perfectly compatible
mentionwith
religionaor the opposition to religion. All the opposition
secularism defined in terms of (S). It speaks to thetoquestion
religion that of
the characterisation in (S) demands is in the no-
how best to implement (S) and carries no suggestion
tion of that
a lexical we
ordering that follows the initial starting point in
must abandon (S) for some redefinition of secularism along
these ideals. Thus, by these theoretical lights, so long as there
Taylor's lines. I cannot possibly present here the detailed consid-
were such ideals motivating a polity and they played such a role
in the
erations that are needed to establish this compatibility of minimal
such ademands of a lexical ordering, then (whatever
strategy with (S). Those considerations are more philosophical
other properties that polity possessed), it meets the necessary
and more complicated than is often assumed. I will do so in
and sufficient a
condition of secularism. So, for instance, on the as-
sequel to this paper in which I go beyond the semantic matters
sumption of were such ideals that were motivating the
that there
the content of secularism, that is to say, beyond questions
political regimeof
that Ataturk imposed on Turkey, and on the as-
whether (S) rather than a state -neutralist conception is a that
sumption better
religion and religious practices were always placed
way of defining secularism, to the question of how second
it isinbest to ordering as formulated in (S), the authori-
the lexical
theorise the implementation of (S). But, though I cannot
tarian spell out
properties ofthat regime do nothing to cancel the secular-
the argument here, I can say just a word about the general
ist nature direc-
of the regime, whatever else they cancel - for instance,
tion of what is needed. To implement (S) by appealthe
toliberal
internal
nature of the regime. Not all secularism need be liberal
reasons is essentially to seek a conceptual vernacular within
secularism. So also, then, many communist regimes should get
which a state committed to (S) can provide internal counted
reasons thatby this criterion. Someone may find the au-
as secular
speak to even the orthodox element in a community. Too often
thoritarian methods by which secularism was imposed in both
secularism adopts the universalist conceptual rhetoricAtaturk's
of rightsTurkeyin
and the Soviet Union to be wrong without deny-
its efforts at persuasion rather than seek local concepts andwere
ing they com-committed to secularism. Taylor, who explicitly
mitments of the community in question (includingtakes
even it toamong
be an advantage of his redefinition that it rules out
the orthodox in the community) that might put pressure
Ataturk'son theas secular, is on this point at least, quite visibly
Turkey
community's own practices and thereby eventually atprovide
odds with (S)
the as a characterisation of secularism. There is a
source of internal reasons for change. further and symmetrically converse point to be made: just as
96 January 28, 2012 vol XLVii no 4 B323 Economic & Political weekly
SPECIAL ARTICLE
secularism may bypass liberalism, liberalism may outrun secu- precisely to avoid favoring or disfavoring not just religious posi-
larism when the liberal goals and ideals one might begin with, tions but any basic position, religious or non-religious. We can't
such as free speech, say, are concerned to protect those who of- favor Christianity over Islam, but also religion over against non-
fend non- religious sentiments and concerns, over and above pro- belief in religion or vice versa " (my italics). But I do think some-
tecting blasphemers. It cannot be a reason to redefine secularism thing simple yet deep is under theoretical strain, if these are the
that the goals that it begins with (when they are liberal goals) implications of a semantic stipulation. I - despite being an atheist
which seek to protect one from the illiberality of some religious - hold no brief for Dawkins and Hitchens, who, in my view, repre-
demands, would also protect one from illiberality coming from sent one of the least appealing and most irrelevant intellectual
other sources than religious demands. Liberalism is a wider stances on religion today. Still, the idea that they and, also the
notion than secular liberalism, which qualifies liberalism to a idea that Ataturk, should be counted as anti-secularists is too
restricted domain, just as liberal secularism qualifies secularism counterintuitive and the redefinition seems to go against our
to a restricted set of cases of secularism. most ordinary understanding and instincts about secularism for
reasons that have to do with values that have nothing much to do
Intrusions into Cultural Life with secularism at all.
It is true that Turkey and some other nations did much else
(f) In
besides meet the minimal requirements of the lexical ordering as the last comment, I have urged that we allow that not all
secularism
articulated in (S). They sought to rule out religion not just in the is liberal secularism, implying more generally that
secularism is only one value among many and, as a result, it may
polity, but in a much more general way, intruding into the cultural
in some contexts be accompanied by properties that put aside
life and the intellectual and artistic productions of their citizens.
In doing so, they went far beyond the requirements of the many
lexicalof the other values that we might cherish. But there is a
ordering. And in doing so they were not merely enforcing secu-
more radical point to be made: we might, having begun with cer-
tain goals and ideals (which make no mention of religion or op-
larism in authoritarian fashion, they were enforcing secularisation
as a broader social process. All this too may be acknowledged
position to religion, just as Rawls, Taylor, and (S) require), find
without it falsifying the observation of a more minimal property
that secularism is a quite unnecessary political doctrine or policy
of these polities, which is that they were secular ist. As I saidtoinadopt.
(c) We might find that religious practices and customs pro-
above, the characterisation of secularism on offer in (S) is not bythose goals and ideals quite satisfactorily, and that it would
mote
any means committed to rooting out religion in society. Thebelexi-
a fetish of modernity to think that secularism nevertheless
cal ordering that is the core of the characterisation is perfectly
must be adopted by a polity. This is the scenario whose possibility
compatible with a society that has a great deal of religiosity Iin its
wanted to leave space for when I was outlining the third defin-
culture and practices. The ideals that are placed first in the ing
lexi-
feature of secularism.
cal ordering could be such as to find acceptable a wide rangeItof
is how Gandhi thought of the ideal of secularism for India in
religious practices. But, equally, on the other hand, it is notthe
a re-
early part of the 20th century and there was wisdom in that
quirement of secularism, as defined by (S), that secularism
view, then. India, because of its distance from Europe, not
should be incompatible with determined and authoritarian ef- physical but cultural and political, was a good test case
merely
forts at imposing secularisation in addition to secularism. for
I had
contemplating both secularism's content and its relation to
said earlier that because secularism, restricted as it is to theits
pol-
own history.
ity, is a narrower notion than secularisation, which extends If
aswe
a step back and look at secularism's history from a distance
process to society at large and its cultural and intellectual
inlife,
order to try and view its larger trajectories and patterns, we
polities may be secular ist with or without the society at large notice
being that much of the consolidations of secularism, that is,
proportionately secularised. The separateness of these two notions
much of it coming to be viewed as a necessity in modern societies,
would also have it, of course, that just because there is extreme
occurred in the context of slow and long forming features of
secularisation enforced, as in Ataturk's Turkey, that is not neces-
European societies. One particular trajectory was central.
sarily a sign that secularism must exist. In Turkey, as it happened,
In the post-Westphalian European context, there emerged a
need for states to seek their legitimacy in ways that could no
secularism did exist, but there can be a society - Tel Aviv society,
unlike Jerusalem, I suspect, is one such - which is highly secular-
longer appeal to outdated ideas of the divine rights of states as
ised but is embedded in a national polity that is not secularist.
personified in their monarchs. This new form of legitimacy be-
Moreover, the separateness of the two notions guaranteesgan that
to be sought by the creation of a new form of political psy-
the existence of secularisation via authoritarian methods as in chology in a new kind of subject, the "citizen", of a new kind of
Ataturk's Turkey, is not a sign that secularism does not exist.entity that had emerged, the "nation". It was to be done, that is,
Authoritarianism, whether it imposes secularism or secularisation,by creating in citizens a feeling for the nation, which generated a
is orthogonal to the criterion by which secularism is defined. legitimacy for the state because the nation was defined in tan-
Quite apart from Ataturk, even Richard Dawkins and Christopher dem, in hyphenated conjunction, with a certain kind of increas-
Hitchens would not get counted as secularists but anti- secularistsingly centralised state. This nation state was to be legitimised by
by Taylor's redefinition since they repudiate neutrality between
this feeling among its subjects, a political-psychological pheno-
religions and unbelief, the very thing that Taylor demands ofmenon that would somewhat later come to be called "national ism".
In European nations, such a feeling was uniformly created in
secularism, when he says: "Indeed, the point of state neutrality is
Economic & Political weekly Е32Ш January 28, 2012 vol xlvii no 4 97
SPECIAL ARTICLE = =
their citizens by a very

Congress party that Gandhi led,standard
and the openly vocal and activist ploy - b
enemy within , the
form ofoutsider
majoritarian Hindu nationalism that in
has emergedone's
in the midst
the Jews... to country since
name the passing of Gandhi,
just two) Nehru, and some
to of the be despis
later time, with the
other leaders ofcoming of likea
the older generation. It has made something more n
form of discourse,
secularismthese would
seem much more obviously relevant for India than it come to
and the ploy that seemed
I to am
Gandhi when heoutlining
was writing about these matters dur- would b
tarianism". Often ing the early period of the freedomwas
religion movement. The either
point I am centr
in the way that minorities
labouring in all this is that there may and majorities
be many ideals - of plural- w
to repair the deep
ism, ofand severe
toleration - that we start with, just as Taylor asks,damages
but in an
process, that secularism
many societies, there may be no workwas consolidat
for the lexical ordering and
necessity in the political life
for secularist doctrine, in general, to of
do in order to promote those nations.
politically constructed guarantee
ideals. Secularism is a normative position, which is shaped by of tole
that is to say, in athesecontext
ideals in very specific contexts where
of the ideals and goals
modernity i
trajectory of nation
require it. state
It is not a goal in itself.formation
Were the ideals present in other was ce
tolerance did not exist in prior
political forms and arrangements, times,
the need for secularism would but
ties set up by new national
not so much boundaries
as arise. In my view, it is theoretically sounder to say an
made the intolerance generated
this than to redefine secularism so that it becomes the appropri- by the se
ploy I have ate doctrine foras
sketched, all contexts and occasions and always serves the
something seemin
alleviate in any other way
ideals we wish to pursue. but by the for
and the devising ofStill,state
I think one can explore these matters a little more by
policies in order t
voicing a protest on behalf of Taylor's redefined ideal of secular-
Outgrowth of Syncretic Culture
ism. One might do this by saying that what I am suggesting is the
Now, it should be wrong lesson to learn from Gandhi'sto
possible reaction tosay,
the situation in as Gandh
a trajectory had never
early 20th century India.occurred
After all, what Gandhi was pointing out as it had
pair was needed. Itwas that
was there was toleration
his by eachview
religion of the other that
and religi
the political life of there was equal and free participation
India butof all religionswas
it in the syn- within an
conscious pluralism,
cretic religiousa
culturesyncretic
of the time, and that, it might be said, just religious
politics was is secularism in thein
conducted fraternal asscattered
well as the liberty and equality loci of
centralised state sense
seeking to
that Taylor has outlined. So, if Taylor is right, legitimate
Gandhi was
wrong basis for unity by
in favour of, not against, ahis view
secularism, and self-consciou
was that India
among its citizens.was always
Asecularist.
unity which
It may be that once there is a more central- was inst
rooted and ised state thanculture
syncretic existed in India in that earlier time, then this ear-
within which
without too muchlier strain,
secularism would have to bein
recast a bit
anyto be seen as acase
cen- rela
other, required no artificial
tralised measure
state being neutral and even-handed among different re- and
formulations of modernity, under
ligions, trying to steer modern society to replicate the syncretism the
Whatever the other shortcomings
of past times of
by keeping all religions to be mutually respectful of suc
nothing each others'
measurably freely chosen religious practices.
damaging of But itthis
would essen- spec
to impose secularism on that
tially be a secularism one's people
was continuous with the past. unde
would be a mimicry of
A response its
on behalf of (S) to colonial maste
such a protest will help to bring
slavery. So it out in a little
seemed to more Gandhi.
depth, the history by which (S) has come to in
And, fa
was that the seem modernisers
eager necessary? around h
dom movement The view voiced
which he in the protest, Iwould
led think, would be a quite
fallmis- int
which the taken reading of Gandhi, who was more
post-Westphalian clear- eyed about how
European pa
ceived via this new form
secularism ofhistory
emerged from a certain state,
in the west and was
had s
India as well. Gandhi's broad
certain distinct functions view
of meeting specific (thoug
goals that needed to
possible evolution be met as
of hisa result of certain developments
view towards in Europe in the the e
it was quite modern period.
imcompulsory.
Savarkar, who very deliberately and art
Toleration and Pluralism
such a European path of politics for In
methods to achieve
The factfeelings of
is that the goals and ideals unity
that Gandhi in
articulated were
Indian nation of the future,
merely those was
of toleration and pluralism. Gandhi's
But toleration and plu-
nent, and it is not ralism, though they obviously have
surprising thatsome relation
it with
wassecular- on
would later assassinate him.8
ism (as they do with any number ofEverything
other political notions and
stood in the way doctrines)
of such are by no a
means identical with it. And secularism
conception of is I
turned out, Savarkar's
not a guaranteethinking had
for those ideals in all contexts. a gr
It is neither a
India, even to a measurable extent
necessary nor sufficient condition within
for toleration and pluralism.
98 JANUARY 28, 2012 VOL XLVII NO 4 ЕЗЗШ Economic & Political weekly
SPECIAL ARTICLE
Secularism is a doctrine that is also introduced to further goals of ethos that had its origins in post-Westphalian Europe, that it is
a quite different sort that were not in the forefront of Gandhi's not sufficient to be neutral and even-handed among religions.
mind, and even when toleration and pluralism were at the core of Moreover, in such an ethos where religion itself comes to be
what secularism sought to promote, it was within a context that I seen as the source of the problem, whether in its majoritarian ex-
have just sketched above, in which this core came to be sur- ploitation or in its minoritarian reaction to that, new goals (that
rounded by other goals as well. Thus, for instance, it would never is goals beyond merely toleration and pluralism) emerge, which
occur to Gandhi to be anxious to allow blasphemy to go un- though they are defined independently of religion (goals such as
censored. Nor did it particularly preoccupy him that one or other free speech, say, and gender equality), one begins to detect that,
religion, Hinduism or Islam, had elements that ran afoul of the by the lights of these new goals, there are shortcomings in reli-
ideals of gender-equality in its family laws. These were not goals gion . Thus free speech is now seen as free speech (even) in the
that were central to what he thought politics should be respond- face of a religious requirement to suppress deliberate and brazen
ing and pursuing in the context in which he lived and wrote.9 On blasphemy, and gender equality is steered towards gender equal-
the matter of religion, his focus was instead on keeping India ity in the face of gender-unjust religious family laws; and so on.
away from a politics in which Hindu majoritarianism entered as a Again, as a result, something like (S) alone, therefore, comes to
way of creating nationalist feeling in India, thus giving rise to a seem like the only policy that could provide the repair and re-
trajectory in which secularism would be the natural outcome, form of religion, because neutrality and even-handedness among
introduced to repair the damage in this. religions cannot possibly promote these new goals and ideals. It
Now, one might think that a state conceived as neutral among is not enough to neutrally and even-handedly allow each religion
different religions, as Taylor envisages it, is the best method by in society its free speech-denying blasphemy laws or its gender-
which to deal with the damage done by this trajectory. So why am I discriminating family laws. These laws are trumped only by the
resisting calling it "secularism"? first-placed lexical ordering of free speech and gender equality.
This is a good question and the answer is that once this trajec- Of course, one can still insist that the state neutrally and even-
tory takes its course, the damage is so deep and pervasive and so handedly apply the lexical ordering to each religion, but that
easily and constantly revived and revisited, that minorities are still means that the ideal of neutrality and even-handedness is
simply not in a position to ensure that the state, even in a demo- embedded in (S), it does not constitute a secularism that is
cracy (obviously even less so in more authoritarian regimes), will independent of (S).
be able to be even-handed. Political parties will constantly ap-
peal, for electoral gain, to majoritarian tendencies and will not Contemporary Relevance
be able to eschew these tendencies after electoral success when None of this, however, was relevant in Indian politics when Gan-
they are tenants of the state. This, in turn, gives rise to a reaction
dhi wrote in the early part of the 20th century. As I said, neither
issues of blasphemy laws nor of gender inequality were in the
among minorities to fall into identity politics as a defence since
the state is often unable to withstand majoritarianism andforefront
re- of the public agenda surrounding the local, syncretist
main neutral. When majorities and minorities are defined in
religious cultures and the politics that surfaced in them. (And
terms of religion in this familiar scenario, there inevitably arises
this may well be the case in many parts of the world to this day -
a sense that religion (in the political sphere) itself is the problem,
in many regions of Africa, say, even possibly in parts of West Asia,
though the intense material and therefore cultural gaze on the
even though the historical source of the problem lies in majori-
tarianism. Recent Indian history has increasingly shown this to by western interests may be comprehensively and deci-
latter
sively changing that.) But they are much more relevant now and,
be true, a victory, as I said, for the forces of Savarkar over Gandhi,
even within the Congress party, leave alone the Hindu national-
along with the need for the reversal of social and political dam-
ist party. For this general reason (and not merely in India), some-
ages of religious majoritarian sources for nationalism, they form
thing more radical was said to be needed, something that -part
in of a trajectory that emerged in India since the time Gandhi
expressed
crucial ways that are necessary to avoid this entire tendency to his qualms against a very specific path in European
domination by a majority and religious identitarian reactive
modernity.10 To describe Gandhi's position of an earlier time in
responses by minorities - keeps religion out of the polity, so India
that than the present as secularist, therefore, is to quite fail to
the temptation of the appeal to religious majoritarianism is see the relevance of a range of developments in India since the
pre-
empted at the outset as a legal or constitutional transgression,
time in which he first wrote (the developments of what I had
something that the courts of an independently constituted judici-
called a specific post-Westphalian trajectory) regarding which he
had
ary are there to ensure (though as it turns out in some recent de-very prescient anxieties about what might be visited upon
cisions, it is not obvious that the courts are willing always to do if the trajectory was adopted there. If we pay close atten-
India,
so). Thus this entire trajectory that I have been describing
tionatto his anxieties in that period, we can recognise that he was
some length gives rise to an ethos in which something like a not
lexi-a proto-secularist but rather that he did not want the con-
cal ordering of the sort I have mentioned tends to come toditions
the to occur in India, in which secularism would seem a
forefront in how a modern polity is conceived. Once conceived
necessity at all.
this way, the term "secularism" is and has been the natural name
To sum up, it has, in general, been the burden of these several
for it. And once the conception comes into place, it beginscomments,
to (a) to (f), that I have been making on the nature of
(S), to say that its stipulated form of secularism in terms of a
seem, in this increasingly and very specifically modern political
Economic & Political weekly Е332Я January 28, 2012 vol xlvii no 4 99
SPECIAL ARTICLE =
make
certain lexical ordering, gives a certain theoretical bite and it come out that secularism - because one has decided
specifi-
city to secularism, while also capturing our intuitive almost
ideas and
a priori that it is a good thing, - should be relevant in all
political
slogans by which we have tended to characterise the ideal. I havecontexts. That is why I have been at pains to say that
spent a considerable time on these semantic matters because they is not relevant in all contexts and I have turned briefly
secularism
are in fact much more substantive than merely semantictomatters, Gandhi's understanding of Indian in the early part of the 20th
once one undertakes the theoretical effort to make a definition century to give the example of a sustained such context where it
such as (S), non-arbitrary. I had said that though I think Taylor'smay be considered to lack relevance. There is no reason to be
redefinition of secularism has worthy moral and political motiva-
disappointed in this outcome. Secularism is not - and should not
be conceived to be - a decontextualised doctrinal truth of an ut-
tions, it is not as well motivated, theoretically. (S), by contrast,
does not make any attempt at redefinition, it merely tries to elabo-most and ulterior generality. But, in contexts in which we have
historically seen secularism to be rightfully demanded and
rate along modest, and minimalist lines, the rationale underlying
where its relevance is palpably felt (contexts, for instance, in
some of the theoretical instincts behind dogmatic sounding meta-
phors such as "the separation of church and state". which a majoritarianism based on religious considerations
threatens a democratic polity), such secularism as is worth be-
Part of the idea behind my resisting redefinitions of secularism
is that such redefinitions are motivated (wrongly in my view) to
lieving in, is well captured by (S).
NOTES
activist efforts were not much focused on gender this aspect of the post-Westphalian nationalist
1 Akeel Bilgrami, "What Is a Muslim?" inequality.
Critical That was not so with caste inequality, tendency infecting the Indian polity and a great
in particular untouchability, which was an issue effort on his part to protect India from that path,
Inquiry, 1992. See also Akeel Bilgrami, "Rushdie
that was constantly in Gandhi's thoughts.
and the Reform of Islam", Grand Street, 1989. but then perhaps ending with a resigned acknowl-
10 There may be some evidence that Gandhi himself edgement of its increasing contagion and there-
2 On analysis, this general distinction in Williams
does a lot of different work and marks more than changed the substance and the idiom of his un- fore shifting to the idiom and substance of secu-
derstanding of the issues by the time it came to larism to control the damage. That, I believe,
one specific distinction. In this essay, I am ex-
the 1940s when the majoritarian threat loomed should be the right description of the shift
ploiting just one of the specific distinctions that is
much larger even within the Congress party that that Bipin Chandra is marking in that essay. I
marked. See Bernard Williams, "Internal an Ex-
he led. That, I think, is the sort of contextual shift say all this, assuming that he is right in his reading
ternal Reasons" in Moral Luck, Cambridge Uni-
we should be tracking in the study of secularism of the Gandhi of the 1940s. But we should also ask
versity Press, 1981. For an analysis of the different
and its relevance. In Section V of his article "Gan- a more basic interpretative question of how cor-
things going on in the distinction, see the appen-
dhiji, Secularism and Communalism" ( The Social rect that reading of Gandhi is. Might it not be that
dix to my book Self-Knowledge and Resentment
Scientist, January-February 2004) Bipin Chandra though Gandhi was prepared to say in the 1940s
(Harvard University Press, 2006).
cites evidence for such a shift in Gandhi thinking that there is no great harm in acknowledging
3 I am passing from talk of "truth" of a doctrine to
in the 1940s. He describes this as a shift within some need for secularism to combat the majoritar-
whether there are reasons for believing it that Gandhi's secularism, or in other words, in the ian tendency that was incipiently rearing its head
carry conviction. This is not a slip. See footnote 13
meaning that secularism had for Gandhi, but for in Indian politics, he nevertheless held out a hope
for more on this.
reasons I have been sketching at length, I would in his heart that India would find its way to finess-
4 See Charles Taylor, "Modes of Secularism" in Ra- not follow him on this way of putting it. In his ing the tendency as a result of its very long-standing
jeev Bhargava (ed.), Secularism and Its Critics, earlier period, Gandhi is not properly described and deep-going popular syncretic traditions
Oxford University Press, 1998. The idea of an as a secularist. Bipin Chandra's essay, even so, is wherein Hindus and Muslims had a relatively uni-
overlapping consensus is most fully articulated in valuable for raising the question of such a shift in fied life of custom and practice, whether in the
John Rawls, Political Liberalism, Columbia Uni- that later period. And in my remarks on the in- realm of mutual worship in shared shrines or
versity Press, 1993. creasing influence of a majoritarian nationalism more broadly in the harmony of their common
5 John Rawls, The Law of Peoples, Harvard Univer- (or what Bipin Chandra would call "Hindu Com- cultural traditions. In other words, might it not be
sity Press, 1999. munalism") even within the Congress party - in that it is well after Gandhi died, really only in the
6 Charles Taylor, "Why We Need a Radical Redefini- its Mahasabhite element - we are given the caus- period after Indira Gandhi, that the kind of ma-
tion of Secularism" in Jonathan Van Antwerpen es of the shift in context that may have prompted joritarianism he most feared became entrenched
and Eduardo Mendieta (ed.), The Power of Reli- the change in Gandhi's thought on the subject. in Indian political life, and when - were he alive -
gion in the Public Sphere, Columbia University Gandhi's entire evolution on the subject can, the relevance of a doctrine like (S) would come to
Press, 2011. therefore, be seen as starting with a fear of him to seem inescapable.
7 India is often described as a secular state that fits
the neutral, symmetrically equidistant ideal to-
wards India's different religions . I think this is a SAMEEKSHA TRUST BOOKS
mistaken understanding of secularism as it has
come to be central in the Indian context today.
This is not a paper on Indian secularism, so I can-
China after 1978: Craters on the Moon
not discuss why that is so here, though some of
The breathtakingly rapid economic growth in China since 1978 has attracted world-wide attention. But the condition
what I say at the end of my comment (d) below in
this paper has diagnostic implications for why it is of more than 350 million workers is abysmal, especially that of the migrants among them. Why do the migrants
mistaken. In the sequel to the present paper that I put up with so much hardship in the urban factories? Has post-reform China forsaken the earlier goal of "socialist
mention there, I will present (after constructing a equality"? What has been the contribution of rural industries to regional development, alleviation of poverty and
detailed argument about the significance of inter-
spatial inequality, and in relieving the grim employment situation? How has the meltdown in the global economy
nal reasons) considerations for why something
in the second half of 2008 affected the domestic economy? What of the current leadership's call for a "harmonious
like (S) was always intended in the context of the
construction of secularism in India and some of society"? Does it signal an important "course correction"?
the confusion in thinking that Indian secularism A collection of essays from the Economic & Political Weekly seeks to find tentative answers to these questions,
should be defined in terms of a state neutralist
and more.
ideal rather in terms of (S) has to do with running
together questions of definition of secularism
Pp viii + 318 ISBN 978-81-250-3953-2 2010 Rs 350
with the question of its implementation.
8 For a convincing account of Savarkar's modernist Available from
Hindu majoritarianism as the real counterpoint to
Gandhi, by which my own thinking has been in-
www.orientblackswan.com
fluenced, see Ashis Nandy's article on Savarkar,
forthcoming in Public Culture. Mumbai Chennai New Delhi Kolkata Bangalore Bhubaneshwar Ernakulam Guwahati Jaipur Lucknow Patna Chandigarh Hyderabad
9 Despite greatly encouraging the role of women Contact: info@orientblackswan.com
in the freedom movement, his thought and his
100 January 28, 2012 vol xlvii no 4 ШШ Economic & Political weekly
Beyond Acquiescence and Surveillance:
New Directions for Media Regulation
SAHANA UDUPA
The increasingly complex and elusive media landscape

television-inspired curiosity to "check" the consequences
has thrown fresh challenges to an unsettled ecosystem
A television-inspired ofof suicide
hanginghanging attemptus again
has reminded has reminded by curiosity
on the potential harm a minor us to again in "check" Bangalore on the the potential consequences following harm his
of media policy in India. This papertraces some of the
of unregulated scheduling of television programmes in the bur-
challenges posed by the new communications
geoning private media in India. Concerns have been raised over
the discordant, if notpractices
technologies and the variegated field of media completely dysfunctional media policy of
the Indian state, which has attracted sharp criticisms for failing
to argue that the fragmented media policy framework
to meet even the basic objectives of content regulation concern-
requires a complete makeover in terms of its regulatory
ing minor protection. If content regulation is the most visible ele-
objectives, strategies and public media obligations.
ment of regulation, the increasingly complex and elusive media
landscape has thrown fresh challenges to an unsettled ecosystem
Emphasising the need for incorporating anthropological
and technologically informed perspectives ofon
media policy in India. On the one hand, advanced communica-
the
tions technologies have unleashed a new rush for spectrum, in-
nature and implications of current media expansion, the
spiring and enabling multifarious ways to co-opt the labyrinths
paper proposes that the policy framework of internet
should and convergence architectures. The debate over multi-
include a modular and unbundled approach to
casting technologies that couldmedia
benefit all content providers ver-
regulation. Policymakers should also investsus proprietary

research forms of content- catching benefiting capital
heavy private players is the latest case in point. On the other
energy into the exercise of mapping the diversity of
hand, the spread and reach of conventional media such as the
media practices and multiple logics drivingprint andrapid
broadcasting have proceeded at an even more acceler-
ated pace ofthe
proliferation of media across the country. In expansion. The two critical aspects of media - car-
context
riage and content - are thus more intricately laid out before the
of growing state practices of surveillance and staggered
policymakers than in the earlier phase of having to deal only with
acquiescence to corporate interests, policy interventions
bundled communications technologies such as broadcasting.
should move beyond the contradictory impulses
At first glance, heatedof
discussions around the ways to draw
"policing" the media and media-enabled democratic
development
benefits from internet- enabled media spaces appear
quite futile in a country like India withof
to craft innovative ways of leveraging the benefits internet penetration as
low as 8%. However, the impact of new communications tech-
current media architecture as well as several recent
nologies is more widespread than what this statistic can reveal.
legal provisions aimed at enhancing the capacity of have fundamentally al-
Advanced communications technologies
public information. tered the ways in which information and meanings are delivered,
organised and received. They have, for example, increasingly
blurred the boundaries between content givers, carriers and dis-
tributors - a trend often captured in the phrase "convergence
technologies". Akin to the countries in the west, India is not far
behind in embracing these new technologies. With 246 million
mobile phone connections in 2008, India is one of the largest
mobile phone markets in the world. According to Media Partners
Some parts of the article have appeared in the India inAsia,Transition
the subscriber base for dth television in India is slated to
increase fromUniversity
series hosted by the Centre for Advanced Study on India, 17 million in 2009 to 45 million in 2014,of
overtaking
Pennsylvania. I thank Monroe Price, Carol Upadhya, thePaula
United States (us) byChakravartty
2012. The same report forecasts digital
and Alan Atchinson for their comments and continued support.
cable to grow to 17 million subscribers, and cable broadband to
Sahana Udupa (sahana_udupai@yahoo.co.iri) is a postdoctoral fellow
three million household subscriptions by 2014. at
the Max Planck Institute for the Study of Religious and Ethnic Diversity,
Conventional media such as the print has witnessed an explo-
Germany.
sive growth in the last two decades, while private television has
Economic & Political weekly I33Q January 28, 2012 vol xlvii no 4
SPECIAL ARTICLE ==" e=
rapidly (including
proliferateci across thesmall-sized newspapers, cable
country. television, pirated
Between 1995
more than 300 satellite video
networks entered
and new media) have extended the the
reach of Indian
the public m
While many of them domain to include
provided more people andof
a variety sections of people than in the
entertainment
there was also a rapid expansion
earlier phases. In this of the
sense, the media news media.
has clearly come out of an M
50 of the satellite elite model
networks wereof media production in satellite
24-hour the colonial and post-
news
broadcasting news in 11 different
independence languages
period; all the more (Mehta
so because of the widespread
contrast to the pirate
shrinking culture in news
print which thousands of fakes of media
markets in products
the we
media in India has "clandestinely"
expanded circulate the
across market. This massification
platforms, regionsor
guages. With a total of widening
325 of mediated public
million space is distinct
readers, from what
India's the
newsp
dustry generated Rs 172Frankfurt
billion School derided
($3.8 as the "culture industry".
billion) in Itsales
would be in
cording to the World an overstatement toof
Association propose that the deluge of mediakpmg
Newspapers, images e
that this figure is set tohas turnedby
rise the Indian
9%audience
per into a passive,
year overconsuming,
the n
years to Rs 267 billion homogeneous,
($5.9 uncritical, overwhelmed
billion) "mass", or transformed
(Pagnamenta 2011).
tion of leading prekshakaru
newspapers (viewers)
has beeninto janaon
(people)
a under the aegis of
steady rise
several niche papers continue to explore
culture industry. and capture new
segments. According to There
the areWorld
at least two observations
Newspaper that support this
Congres
claim.
Hyderabad in 2009, India has
First, there ismore daily of
the sheer heterogeneity newspapers
the audience and cul- t
other nation and leads tural paid-for
in representations circulating
daily in the Indian media. Many
circulation, su
China for the first time forms of media and
in 2008. their defined audience
Twenty of the groups collide,
world's over- 1
newspapers are Indian. lap, and distinguish themselves
Television channelswithin the networks of media
and newspa
thus multiplying, alongside new
production. Both the forms
cultural productof media
and its such
audience are there-
on-demand, video games, digital
fore dispersed, media
fragmented and messy.
and unavoidably social med
If scores of
are slowly, yet surely, fly-by-night newspapers circulate around Vidhana Soudha (secre-
expanding.
In the context of tariat)
rapid to blackmail police officers
expansion and titillate gossip-hungry
of multiple media
policy debates should government
adopt a employees, hundreds of cable television
multi-pronged networks
approach
analysing and drawing beam the latest Bollywood
benefits from (pirated)
the cinema on neighbourhoodmed
complex
tecture. This involves simultaneous attention to conventional television sets far and away from the power centre. There is also
media and new media, and the diverse ways through whichthe mighty national television network, and even mightier
they
co-constitute publics and politics. This article seeks to take aregional
step language television channels that give a heady cocktail
in this direction, beginning with an outline of the nature of
of crime, politics and melodrama; smattered with tropes of tradi-
médiatisation underway in India today followed by a brief discus-
tion and superstition.
sion of the media policy paradigms which have shaped state-
Second, television audiences are not surely and merely uncriti-
media relations in the post-independence years. Following cal. While it is difficult to gather evidence to substantiate this
these
point, the sheer increase in the number of studio-based debates
regulatory concerns, the article argues that the policy framework
should adopt a technologically and anthropologically informed
on "current affairs" and other forms of mediated activism point
approach to the media. It proceeds to propose and elaborate
to an active middle class citizenry voicing their concerns and
fighting
three policy imperatives in the subsequent sections - the need for for justice. This signals new forms of political culture
mapping diverse news fields within India; the reimagining and
emerging on the terrains of television channels and other media
revival of public media systems; and the regulatory models platforms.
suit- In its best manifestation, it has turned audience into
able for the private media. While each of these interlinked
"demanding" and critical citizens who participate in studio talks
challenging the politicians; who organise protests to save their
strands of policy debate is significant in addressing the existing
roads and trees and invite the media to cover the rally; who
policy gaps, they are by no means exhaustive. Instead, the article
hopes to flag them as ways of drawing attention to the increas-
approach a television reporter before thinking of lodging a police
ingly complex media landscapes of India and re-emphasisecomplaint;
the who lead campaigns on the internet and garner sup-
need to initiate a wider public debate on the issue. port worldwide (e g, the pink chaddie campaign). In a profound
sense, visibility has penetrated governance, making the ruling
1 'Massif ¡cation' and Visibility bloc partially (and at times erroneously) accountable to the me-
While there are different vantage points to approach and analyse
dia and mediated publics. A striking illustration for this new form
the nature of current media expansion, two interlinked pheno-
of mediatised political activism is the rise of the Lokayukta (pub-
mena stand out significantly. Massification and visibility arelic
two
ombudsman) as a new vanguard of citizen rights against cor-
aspects of the recent media expansion in India, which ruption
have in Karnataka in south India. The offenders are govern-
together marked a shift from the earlier phase of state -led ment
media officials who are laid in traps by the Lokayukta vigilance
agendas fed by the mutually constitutive ideas of modernisation
team during the course of accepting bribes from common citi-
and nationalism. There is a certain degree of "massification" of These traps rarely become full-fledged "legal" traps in
zenry.
media because of the sheer increase in the volume of media audi- which officials get convicted for their crime and condemned for
ences and media production. Television and new media outletslegally sanctioned punishment. Instead, it is a trap of visibility, a
102 January 28, 2012 vol XLVii no 4 ш Economic & Political WEEKLY
SPECIAL ARTICLE
trap in which the offender squirms under the raging gaze of the news media and entertainment together as a single business
media and through the media with innumerable audience watch- category. Industry auditing agencies such as kpmg and Price-
ing. This critical visual trap alludes neither to the Frankfurt waterhouseCoopers (pwc) assess and predict the financial indi-
School's overwhelmed spectator nor to Kant's detached aesthete. cators of what they have christened as "media and entertainment
In this, visibility is itself a political practice. At its best, it unfolds sector", which considers news, cinema, internet, mobile phone
as an "exposure" and provides the much-needed democratic and other emergent categories as a single industry.
intervention in governance. At its worst, it is what Walter Ben- If media policy objectives are in a state of flux, institutional
jamin would term as "aestheticised politics" in which the ruling framework for media regulation is also equally uncertain and
bloc "sees its salvation in giving these masses not their right, but fragmented. Regulatory authority is currently divided between
instead a chance to express themselves" (2001: 63). Thus, the several government departments even as the regulatory bills in-
result may not necessarily be substantive political change, but cluding the much-acclaimed Communication Convergence Bill
only public expression and even evacuation of citizen activism (2001) and the Broadcasting Service Regulation Bill (2007) are
after a brief period of heightened visibility. The recent Anna still far from realising their stated objective of introducing a com-
Hazare movement bears out this danger of abbreviated, yet prehensive and coherent policy framework. It is thus one of the
intense forms of mediated political activism. most crucial moments for media policy discussions to funnel
This is also precisely the ambiguity of contemporary media their energy towards a meaningful debate, since, as Christian
production and explosion of affect-intensive spaces of media Sandvig rightly comments on internet architecture, "the unset-
visibility in India. Simultaneously, against the dizzying backdrop tled character of today's advanced communication systems is not
of multiple media, the "mainstream" English news entities con- our burden; it is our chance to act" (2006: 115).
tinue to be active in cementing the ideologies of market-led With a firm normative stance to enhance public interests
growth, corporate leadership and "urban boosterism".1 For any rather than state or business interests, and backed with a clear
meaningful policy and public engagement with the contempo- understanding of the contradictory objectives underpinning
rary media, it is imperative to discern the growing dominance of current regulatory frameworks, media policymakers should ur-
mediated visibility in contemporary politics and the commercial gently incorporate two important approaches. First is the recog-
drives that shape its intended and unintended consequences. nition of the changing technological landscape of media. Policy
energy should be directed at comprehending and more fully
2 Media Policy Paradigms and Current Conundrums incorporating the latest technological changes which have pushed
Alongside the questions of cultural autonomy and purity which the communications sector towards a functionally unbundled
drove much of regulatory dilemmas for the broadcasting sector and modular form of organisation where communication func-
in the 1970s and 1980s, media regulation is today confronted tions are distributed across different platforms through inter-
with newer challenges of advanced communication architec- operable standards. These standards serve as a "connective tissue"
tures, accelerated privatisation of news, burgeoning media con- which enables the devices and entities to perform different com-
tent and rapidly mutating genres which have blurred the bounda- munication functions in network architecture. In contrast, con-
ries between information, entertainment, speculation and spirit- tents, services and transmissions are yoked together in a single
ual pedagogy. The new advancements in communications as well entity in a bundled architecture.
as content explosion via multiple channels call into question the Media policy scholars are advocating a "layered approach" to
efficacy of existing policy approaches to media, including the still media regulation to address and benefit from these latest changes
dominant conventional media. in the communications sector. Since several entities can simulta-
neously take up or withdraw from communications services, a

The multiple regulatory bills introduced in the last decade to
vertical orientation of regulating specific communications tech-
keep pace with the changing communications technologies and
media expansion reveal a fragmented framework shaped asnologies through specific laws should give way for a horizontal
much by the Indian state's staggered acquiescence to corporate
orientation towards addressing different functional components
of communications delivered through multiple entities and tech-
interests as by the entrenched colonial structures of governance
aimed at "containing" and "reining in" the media. This sits un-
nologies. This implies that proprietary control and other regula-
comfortably with the ideology of engaging and employing cer-
tory issues should be verified at each functional layer of commu-
tain media technologies, especially the broadcast sector and now
nications - most prominently content and physical infrastructure
the internet, to advance state-led developmental goals. Thelayers - since single entity need no longer deliver these two to-
media policy paradigms in India are thus built on the contradic-
gether. Second is the recognition of the intricate layers of control,
tory impulses of restriction, technology-led development and de-
ownership and media praxis which are driving rapid expansion of
regulation (Chakravartty 2004; Naregal 2000; Parthasarathy
conventional as well as new media at the ground level. Thus, the
2010; Rajagopal 2001), even as several informalised media prac-
broader policy approach should be simultaneously attentive to the
tices constantly perforate the policy framework, at times to thetechnological changes and the ground realities of media organisa-
tion, a combination of technological, legal and anthropological
advantage of many sections of people excluded by the legitimis-
ing discourse of the state. Simultaneously, the commercialisationinsights into the nature and implications of media expansion. The
of the news media in particular is increasingly normalised
three policy areas discussed in the subsequent sections serve to
through discourses fuelled by the corporate sector which club
highlight the importance of such an approach. The focus is on the
Economic & Political weekly Ш32Э January 28, 2012 vol xlvii no 4 103
SPECIAL ARTICLE =
news media anddiscourse.

public Expanding on its market innovations in other news
service broad
matively markets in theto
positioned country, the
playtoi sensed the changes
a in Bangalore
crucial r
earlier than its competitors and was prescient in recognising the
3 Mapping the demographic
Diversity shifts within the city resulting of News
from its growing
Any importance
meaningful policyas a global outsourcing destination. Within a decade
effort for t
media in India following the tech boom
should beginin the late 1980s, with
there was an influx of
the re
and nature of migrants from
news various parts of the country drawn to the
production is high not u
To consider the paying technology jobs
news of the global industry,
media as as well a
as a new
single
policy blunder, transnational class of
since returning diasporic is
there tech workers
vast within div
guages and the city (UpadhyaThis
regions. 2009). The toi identified these migrants and
diversity r
tendencies at "home-grown"
the hi-tech professionals as a new lucrative reader-
technological level.
policymakers isship to
market, constituting
invest a subculture distinct from the поп-it
research e
lapping, yet distinct
"native Bangaloreans". Innews fields
its efforts to target, serve and co-construct wit
like Karnataka, this
the new class ofmarket
readers, the paper fuelled the dominan
discourse of a
news groups "new reader"
such asby offering
the what I call the "new regimes of medi- of
Times In
uncontested in the
ated desire" as last two
legitimate aspiration of the urban decades,
middle class. As
Tamil Nadu are a result, strong votaries of liberalisation suchfirmly
structured as the toi continue th
resulting from to shape urban publics charged
direct with "desire-as-aspiration", in
ownership of t
political parties. ways
Eventhat "desire" itself
moreextends beyond thealarming
realm of consumer i
riage, content commodities, transmission
and into new imaginations of ideal citizenship, civic in a
influential activism, lifestyle,
political cultural ascent, social mobility,
group. Sun body and self.
Netwo
in the region, The increasing
also commercialisation of the news
controls media mediates
local cable
Karnataka, thesedesire-as-aspiration,
trends since leading
ofEnglish newspapers
vertical such as in
the electronic media but
the toi seek to simultaneously consolidat
expand commodity markets (ad-
industry since vertisers) Times
the and their own readerships through innovative strate-
group owns t
as well as Kannada (regional
gies of connecting with the readers by relying on and languag
cementing
To consider the the ideologies of urban
case of revival Karnataka
and urban boosterism. The global- mo
pansion of the urban desires represented
print media and co-created in
by the toi's
the revised reg
the rise of strategies span the as
Bangalore emblems a
of consumer
"globalmodernity such as city"
the urban "Page 3" and luxury realRelaunching
landscape. estate as well as include new imagina- it
the toi boosted its circulation and advertisement volumes tions of corporate leadership for the city. The ideological arsenal
of corporate excellence, a decadent state and aspirational middle
through aggressive marketing strategies, price wars, polychro-
matic appeal, new forms of "reader-connect" programmesclass underpins the revised news priorities and news practices of
as well
as city campaigns demanding better urban infrastructurethe
forpaper.
the The organisational pedagogy of the new management
andrapid
corporate sector and middle class residents of the city. The the English journalists' own sense of victimhood at the hands
of play-
rise of the toi on all market indicators pushed the existing the postcolonial, "corrupt" state reinforced neo-liberal new-
ers to defensively revisit their news policies, resulting inspeak in terms of legitimising the positive pole of the corporate
consid-
erable measure of mimesis across the news field in terms of and individual, and the negative pole of the state and public
(Chakravartty and Udupa 2011).
layout designs, news themes as well as organisational practices
Despite the trends towards consolidation and neo-liberal new-
of aligning the editorial team more closely with the marketing
division. The daily cadences of editorial decisions came to rely speak
on of the dominant news group, anthropological enquiry into
market research data on readership, often handed out by the
the field of news practices reveals that commercial logic of ex-
pansion and profit aggrandisement advanced by many media
same set of market research agencies for competing papers. This
was at a time when the news organisations felt the pressuregroups
to comes into direct confrontation with a wide array of cul-
adopt seemingly "systematic, impersonal and reliable ways" tural
of logics which are themselves set within the overarching ma-
mapping the readers in order to "institutionalise their quest"trix
to of global and regional capital. Underwritten by a long history
comprehend them (Gitlin 1983: 31). of "print communalism" in princely Mysore, the caste practices in
the news field both build on and diverge from a distinct form of
Bangalore's rising status as a global city was important for the
revised news agenda and organisational practices of the post-
journalism which arose at the turn of the 20th century during the
course of journalists' active role in the non-brahmin movement
19 90s toi and other newly launched English newspapers because
the city appeared to have demonstrated what the private sector
(Udupa 2010). "Print communalism" referred to the print-mediated
pan-caste and pan-religious non-brahmin struggle to procure
could achieve if the "obstructing state" retreated from its regula-
greater political benefits for three elite non-brahmin groups:
tory impositions. If, on the one hand, Bangalore emerged as a key
destination for outsourced hi-tech and back-office work, on Lingayats,
the Vokkaligas and Muslims. Distinct from "print capital-
other, the English media, especially the toi, relied on the imageism"
of (Anderson 1991), it entailed a relationship between a com-
"successful" Bangalore to articulate and validate its pro-market
munity-driven agenda and print which was fundamental in early
SPECIAL ARTICLE
2oth century Mysore (as with print and market in 19th century Eu- set within the overarching context of urban transformation and
rope). Shaped by this long and complex history of caste-journalism consumer modernity, and defined by its organic links with the
nexus, the news field in Karnataka is defined by caste-based prac- domain of formal politics. It embodies a "surplus of connota-
tices at various levels of journalistic production, which draw on tions" (Pandian 1996: 3323), 3 with its moments of subalternity in
and feed into the larger caste-based political culture of the state. terms of giving voice to the subaltern-as-disenfranchised (Chat-
Among journalists and news proprietors, there are blurred bound- topadhyay and Sarkar 2005: 359), 4 but overlaps also with elite
aries between affective bonds, instrumental ties and professional politics based on caste and linguistic territoriality.
networking. Often, these multiple strands converge in caste identi- Alongside the contradictory moves of the bhasha media, news
ties. Hence, jãti bala (caste-based strength), jãti samïkarana (caste channels owned by politician-businessmen have rapidly ex-
attraction) and jãti network (caste-based news networks) remain panded the presence of politically partisan news media in the
as interlinked aspects of journalistic sociality perpetuated by, and region since many powerful politicians have forayed into the
perpetuating, caste-based allegiances. Brahmin-dominated Kan- media and bought a stake in it. These include Janata Dal leader
nada newspapers such as Kannada Prabha, Samyukta Karnataka and former Chief Minister H D Kumaraswamy (Kasturi channel)
and Vijaya Karnataka2 confront and seek to contest the pro- and the Reddy brothers of the mining mafia (Janashree), to-
backward class voices of Prajavani, Vokkaliga mouthpiece such as gether with a range of commercial media groups such as TV9.
Ее Sanje and the Lingayat lobbies traversing several news organisa- The multiple logics of the bhasha media and ownership patterns
tions. These power struggles render mediated visibility to several structuring the news field in Karnataka might not map out in the
publics, while at the same time, excluding and eclipsing a range of same way in other news markets in the country.
structural and experiential questions around the marginalisation
of dalits as well as critical issues that lie beyond the pragmatic and Party-Affiliated News Media
opportunistic networks of caste politics. The rapid expansion of the news media in Andhra Pradesh, for
Equally significant in the news dynamics are language-based example, is accompanied by explicit political partisanship and
solidarities which are reframed and revived in the context of on- open advocacy of political interest groups. While the older news
going liberalisation projects of the state. Within the field of newsgroups in the region had always relayed their partisan positions,
practices in the region, different grievances of multiple publics
the recent expansion of the news media is marked by direct forms
come to acquire meaning and intelligibility through the significa-
of political party control and ownership. Such has been the influ-
tion of Kannada. Because of its unstable nature, the figure of
ence of the newly launched party-affiliated news channels that
Kannada embraces a range of positions, values and meanings,
the news field is today clearly demarcated along the political
which can at best be termed as a constantly mutating constella-
divide between the Congress I on the one hand, and a fragmented
tion of meanings. This constellation of meanings and demands is
oppositional political field led by ysr Congress (of Jagan Mohan
largely forged in relation to the "expelled other": English bour-
Reddy) and Telugu Desam Party (tdp) on the other. If the Eenadu
geois, global consumption and corporate sector interests, which
news group has a long history of promoting anti- Congress poli-
have together acquired reasonable clarity under the strict edito-
tics, especially the tdp, the mandate before Sakshi, the newly
rial directions of newspapers such as the toi. As a result, overlap-launched media group by Jagan Mohan Reddy, is to contest the
ping political, cultural, social and economic concerns of a hetero-anti- Congress and pro -tdp bias in the existing news entities by
geneous group of news publics are increasingly expressedproviding the perspectives of Congress, and later the newly
through Kannada, which serves as a partial empty-signifier
launched ysr Congress Party of Jagan. From the very beginning,
Sakshi aimed to stay ahead of Eenadu on all counts - circulation,
(Laclau 2005). The partial embodiment of this signifier rests on the
associated meanings of nãdu-nudi-sanskriti-samudãya (region-layout, technology and readership. Such heavy investments into
language-culture-community) shaped and authenticated by Kan-
newspapers and television channels, often unmindful of com-
nada vãgmaya (linguistic ecumene). The unstable, fissured, yetmercial returns, reveal the deeply politicised intentions fuelling
effective forms of politics assembled through the logics of what news
I media expansion in the region. A commentator piquantly
call the bhasha media confound modernist assumptions of ra-remarked that the news proprietors in Andhra Pradesh are "either
tional critical public discourse, but nevertheless hold democratic
politicians, prospective politicians or politicians by hobby".
potential for a range of publics, just as they equally efficiently The rivalry between various news proprietors is underwritten by
curl back to reactionary cultural politics and fail to articulate the
a Kamma-Reddy caste divide which shapes the wider field
progressive alternative to the growing dominance of technocraticof Andhra politics. "Ñamaste Telangana" and "T-News", the two
visions of the city, collusion between caste and capital, and mar- recent entrants into the news field, are the media outlets for the
ginalisation of the urban poor. Bhasha embodies the interlinked
Telangana movement, which have deepened a revived axis of con-
aspects of cultural distinctness, perceptions of temporal primacy,
flict within the partisan press. The close association between formal
intimate address and inextricable connections with formal poli-
politics and local cinema adds yet another dynamic to the news
tics, which together have serious ramifications for the meaningsfield. These forces together animate the complex triangulated axis
assigned to Kannada by the journalistic community in the courseof power comprising caste leaders, cinema stars and news proprie-
of their interaction with language-based movements and castetors. The practical moorings of news production are thus anchored
politics in the state. Bhasha does not denote a realm severed from
to the particular, at times shifting, political priorities of the news
the larger ethos of market centrality, rather it is self-consciously
proprietors and their strategies of political manoeuvring.
Economic & Political weekly lûiàïl January 28, 2012 vol xlvii no 4 105
SPECIAL ARTICLE = =
Simultaneously, all the

The landmark major
judgment of the Supreme Court of newspaper
India in 1995 set
tent news a new paradigm
channels, give by stating
athat the airwaves are "public
daily combinatprop-
themes and political news
erty" and therefore, freedom ofwith
the press should bediverse
understood p
delegitimising not merelyof
label as freedom
a of media enterprises to engagemouthp
"party in their
based allegiances businesses,
too but aare obscured
substantive right of the public to have access to with
caste leaders of avenues of expression and public
Kammas and debate. The right to expression
Reddys pop
TDP in varying measures.
has to be approached comprehensively
The as theblurring
right to be heard as of
serving political well as right to say and hear. This
interests has important occurred
judgment pushed a
cialisation of the the
news
regulatory debatesmedia
beyond the dichotomyand large
of the regulating
vision channels, state and free media
often by by emphasising
diverting the need to protect diversity
the cap
ventures. The blunting of
and public interests in media political
production. However, the crucial par
effected by the expanding
public media thrust of the judgment was business
obscured by the private int
groups. As a sector-led
pivotal interpretations,Deccan
case, which presented it as the judiciary's
Chronicl
tion in Telugu ( call for ending state monopoly
Andhra BhoomQ, of broadcasting to allowcommon
private
commercial news players
group, manoeuvres
into the sector (Parthasarathi 2010). its
hance and In this context,
safeguard itspolicy approaches to public service media
burgeoning busin
of enterprises. should be
The charged both by group
news ideological contestations as well as
treads a
neutral, political technological innovations. Although
position, important, top-down
since they regu- hav
new areas of lation based including
business on the assumption of bundled communications
the owner
league in India - the
architecture is Indian
not sufficient to create a Premier
vibrant, inclusive and ref- Lea
Chronicle group provides
lective a
media ecosystem. Recognition striking
of the functionally unbun- ca
business dled nature
interests, mediaof communications capital
architecture was evident inand
the str
the owners of Convergence
other Bill (2001). However, the broad news
prominent policy objective gro
wide business underpinning the including
interests bill was still anchored to the raison d'être of
venture
logy, consumer media control through a centralised
products, chit authority rather
funds, than to the pr
tels, film wider objective real
production, of leveraging the benefits of network architecture
estate, cement,
regional politics - aof advanced
trend communications for democratic practice.
reflective of the
capitalism", as Robin In their recommendations
Jeffrey to the Federal(2000)
Communications has c
This brief discussion of Andhra and Karnataka reveals that Commission (fcc) in the us, Ellen Goldman and Anne Chen (2010)
there are many overlaps between caste-politics, cinema-business
proposed a comprehensive plan to revive public service broad-
nexus underpinning media expansion in all the four southern
casting precisely through a modular and unbundled approach to
states, including Tamil Nadu and Kerala. But there are also
media.
im- These recommendations have pushed the layered model
portant divergences in the region and across the country, owing
of regulation beyond the rationale of state control to instead help
policymakers
to distinct histories of language, capital formation and notions of to design innovative environments for public
media interventions. While several of their recommendations are
territory. These structural factors, especially the patterns of owner-
rooted
ship and nature of capital flow into the media sector as well as in the American experience of rapid digitisation and
the ideologies of market-led growth deeply influence news praxis
several more are aspirational even by the standards of developed
countries,
and their potential to advance democratic participation. There is some lessons can be drawn for the Indian context. For
instance, while many readers are cognisant of the growing phe-
a rich literature to compare news systems across different nations
and transnational regions, such as Hallin and Mancini's (2007)
nomenon of paid news, it is still difficult to discriminate a large
pioneering work on different models of journalism existing inof paid content from non-paid news content in the main-
crop
North America, continental Europe and Mediterranean coun-
stream news media. Nor is it apparent even for the most discern-
tries. Similar exercise in mapping the news fields within ing
India
audience if a news story is tied to covert and overt forms of
will benefit policymakers to at once address multiple loyalties
product placements and political partisanship. Content regula-
tion through a co-regulatory model can address this problem in
structuring the news field and differences in patterns of control,
some measure, but more effective would be the efforts to connect
ownership and media practices. While specific policy recommen-
dations can only emerge after such a detailed analysis of the
and re-energise a wide array of state and community networks of
media fields, the discussion of the two states strongly suggests
information sharing, which have always been a mainstay for de-
that the broader policy approach should consider media as varie-
centralised governance. The government should focus its policy
gated and not limited even to the frequently invoked distinction
energy to revive the extensive public service broadcasting facili-
between the English and vernacular media. ties and other state-supported institutions already available in
the country to enhance the capacity of communities to reflect on
4 Modular Approach to Public Service Media and engage mainstream commercial media. Although Prasar
More importantly, the rhizomic existence of heterogeneous Bharati
news (the Broadcasting Corporation of India) is vested with
practices in the commercial sector call for a robust public service
many of the lofty ideals of public media, it has still remained an
object of political gambit for successive governments.
media and innovative forms of state and community interventions.
SPECIAL ARTICLE
In this context, Goldman and Chen's application of layered Another institutional site needing a similar makeover is the
model of regulation for public service broadcasting throws fresh press academies instituted in several states in India to promote
insights into ways of recharging and reaffirming our public sound journalism. In contrast to Prasar Bharati, these are much
media objectives. Using the layered and network architecture of smaller but have the advantage of engaging journalists and con-
internet, they propose that different streams of communications ventional media actors locally, often at intimate levels of address.
engaged in public service media should be connected, scaled up, The Press Academy in Karnataka rechristened itself as Karnataka
curated and transmitted through the available and revived facili- Media Academy to involve the growing tribe of television jour-
ties of public service media. They contend that the state should nalists. The name change notwithstanding, these academies nei-
move away from considering television and radio as the sole ther have the financial strength nor technical expertise to engage
recipients of state support. Instead, public service media should a growing community of content and information activists who
encompass a wider range of content providers and information have been using a wide range of platforms including local news-
activists through a decentralised mechanism that addresses all letters, community radio, online portals and mobile phones.
the four layers - physical infrastructure, connection (between Doordarshan, air, Media Academy, professional media associa-
various platforms engaged in public service media), curation tions drawing state support (however minimal) as well as non-
(supporting content and services of public value) and creation media information activists should form part of a larger network
(creating content which the market insufficiently or erroneously of public service media in which various streams of non-commer-
addresses). cial content are linked and curated to maximise their effect,
While the current structure of Prasar Bharati firmly holds the reach and appeal.
physical infrastructure layer, policy innovations in connecting
and curating non- commercial and community media in a net- 5 Regulatory Models
work model are yet to be charted in generative ways. Content If the "productive" side of content regulation call for new imagi-
creation and curation are instead left to the vagaries of political nations, the "restrictive" dimensions of content regulation need
interventions and the troubling limitations of bureaucratic action. an equally rigorous reassessment. The three regulatory models
Underpinning many efforts of the corporation is the deep-seated widely discussed in the international forums relate to the options
policy assumption around state pedagogy via technology - an of state -led regulatory mechanism, self-regulation or co -regula-
assumption that dates back to the techno-optimism shared by tion. The merits and demerits of each regulatory model and their
diffusion theorists and the newly empowered technocrats of specific regulatory structures have been extensively discussed
Nehruvian India charged with development goals. As Ashish within other national contexts including the us, Germany, Aus-
Rajadhyaksha5 (2009) has rightly argued, this approach col- tralia, Spain and the United Kingdom. In the state-led regulatory
lapsed technological solution to the "last mile" problem with model, all regulatory activities spanning from rule making
democratic growth, alongside favouring the broadcast model. (drawing the code of ethics and professional rules) and imple-
This came at the cost of overlooking a limited number of success mentation to supervision and sanctioning (incentives/punitive
stories of participatory communication evident even within the measures) are vested with the state authorities. While this en-
realms of conventional media. sures compliance through strict statutory institutions and proc-
There are many platforms available today to generate usefulesses, the dangers of command-control model of state regulation
public media content and practices - community radio, non-in the Indian context cannot be overstated. There have been sev-
governmental organisations, innovative news portals, anti-corruptioneral instances lately to hold evidence that state interventions spe-
civil society watchdogs, public ombudsman and activist groupscifically target dissenting voices. If the National Emergency in
comprising several villages at sub-regional levels under various1975 was the most severe of state-imposed restrictions on the
cultural and language-based political repertoires. While thesepress, there have also been several other measures by national
diverse entities cannot be clubbed into a single category, nor can and regional governments to have a blanket-ban approach to cer-
their motivations be assumed as uniformly innocent, Prasartain regulatory concerns. An important case is the enactment of
Bharati should connect useful public service media functionsAndhra Pradesh Prevention of Dangerous Activities of Commu-
available across these channels in a network model of content ag- nal Offenders Act, 1984. After retaining all the provisions of the
gregation and curation. The corporation should actively connect,National Security Act, 1980, the Andhra Pradesh bill also in-
curate and scale up these networks in a multilateral way, instead cluded specific provisions related to the press (Shatrugna 1984).
of relying only on the hub-spoke model of connecting nationalThese provisions gave the government the power to close down
broadcast stations with regional stations. For instance, several any printing press involved in publishing articles dubbed as
non-media actors have worked laboriously to generate vital infor-"communal writings". A more recent legal attempt to impose
mation on the vexed issue of mining in Karnataka, which couldrestrictions on the media relate to Chhattisgarh Special Public
be connected with similar insights across India, such that specificSecurity Act (2005) which provides provisions to bar the media
theme-based information portals and media practices are scaledfrom reporting any activities considered by the state as "unlawful
up and made available for the larger public as well as for theactivities", primarily targeting Maoist dissent in the region.
political-bureaucratic machinery. This involves a deeper ideo-Splintered across different regions and justified on the grounds
logical shift from technology-led state pedagogy to a networkof specific regional "problems", such legal provisions continue to
model of communication and community building. evade concerted nationwide debate. Any formalised mechanism
Economic & Political weekly ИЗИ January 28, 2012 vol xlvii no 4 107
to implement state regulation of the media bears the risk of further dominance of "individual owners". Following the trend which be-
cementing the restrictive tenor of regulation, not to speak of the gan during the colonial years, regional and national capitalists
dangers entailed in indiscrete use of regulatory provisions by continue to invest in the media as part of the larger agenda to
bureaucrats as well as multifarious forms of political interventions. advance their business and political interests (Jeffrey 2000; Nair
As an alternative model, self-regulation holds out the promise 2003). According to the Ministry of Information and Broadcast-
of greater compliance for content code and ethics of conduct ing, newspapers owned by "individuals" still enjoy 53% of the
through mechanisms of peer surveillance. To avert possible gov- total circulation in India, followed by joint stock companies
ernment interventions, the News Broadcasters Association (nba), (39%); trusts (2.9%); societies/associations (2.4%); and firms/
a professional association for private news broadcasters, has drawn partnerships (2%). 6 Cross-ownership and economic consolida-
a code of ethics and has also set up News Broadcasting Standards tion have become more complex in the recent years since many
Disputes Redressai Authority comprising 14 members representing news entities are part of the large family-owned business houses in
30 news channels. While these measures ensured considerable re- India and several more new entrants are linked to new political-
straint in the coverage of Ayodhya verdict, at least among a section economic elites emerging along the murky networks of global
of private news broadcasters, the practicalities of everyday media capital and local power within particular regions in the country.
production and intense competition and mimesis within the media Whereas there are signs of vertical integration, but less consoli-
field suggest that the professional guidelines drawn up by self-reg- dation at the national level,7 regional media markets reveal a dif-
ulatory bodies are most likely to remain as sacred tenets of the holy ferent story. In an extensive quantitative survey of the multi-
cow that no one read or followed. A recent incident involving vio- lingual news market in India, Chandrasekhar and Ghosh8 point
lation of professional guidelines by a private news broadcaster re- to growing concentration within specific regional language news
veals the inadequacies of self-regulatory mechanism. When nba markets of India, especially those which have large circulation
imposed its disciplinary measures on the erring channel and asked volumes: "Underlying the diversity and disparity implicit in the
the channel to telecast the compulsory scroll of apology for the segmented markets created by language is a basic tendency to-
mistake, the channel quickly withdrew its membership from the wards concentration in larger markets among those languages.
association. In such cases of non-compliance among wilful trans- Overall, barring an exception like Hindi, a larger circulation is
gressors, self-regulatory model has little choice to ensure compli- accompanied by greater dominance." Similarly, the annual media
ance. At the same time, this regulatory model bears the risk of frag- industry report prepared by the Federation of Indian Chambers
mentation and lack of legitimacy. of Commerce and Industry (ficci) and kpmg (2009) has found
More importantly, the structural issues of ownership and con- that in almost every major language segment and in most states
solidation can hardly be addressed by a self-regulatory model. three dominant players together control between 65% and 75%
The rapid expansion of media and advertising sector is facilitated of the news market.
and accompanied by extensive financial restructuring of the

media sector. In recent years, the sector has become more aligned Conceiving a Co-Regulatory Model
with, and dependent on, private equity holders, foreign direct A finely crafted co-regulatory model can provide an effective
investment and share markets (Kohli-Khandekar 2006) even as regulatory mechanism to address content issues as well as the
the ownership structure of the media reveals the continued most fiercely debated issues concerning ownership and carriage.
REVIEW OF URBAN AFFAIRS
July 30, 2011
Urban Concerns: An Introduction - Anant Maringanti, Amita Baviskar,

Karen Coelho, Vinay Gidwani
Bypassing the Squalor: New Towns, Immaterial Labour

and Exclusion in Post-colonial Urbanisation - Rajesh Bhattacharya, Kalyan Sanyal
Urban Development and Metro Governance - К С Sivaramakrishnan
Branded and Renewed? Policies, Politics and Processes
of Urban Development in the Reform Era - Darshini Mahadevia
Translating Marx: Mavali, Dalit and the Making of Mumbai's Working Class, 1
The Board and the Bank: Changing Policies towards Slums in Chennai - Nithya Raman
For copies write to:

Circulation Manager,
Economic and Political Weekly,
320-321, A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013.
email: circulation@epw.in
SPECIAL ARTICLE
The experiences of regulatory authorities of several countries approaches

in have been particularly successful for minor protec-
tion
imposing restrictions on cross-holdings and consolidation provide in audio-visual services. As Wolfgang Schulz, media regula-
tion scholar emphasises, effective regulatory structure entails a
a sober reminder of the inadequacies of the existing regulatory
bodies. A pivotal case is the well-established regulatory authorityfine balance between regulatory power of the state and incen-
tives built in the self-regulatory models. Since self-regulation can
of the UK, OfCom, which has silently absolved itself from the re-
sponsibility of imposing restrictions on cross-ownership, bowingassure greater degree of flexibility and active industry involve-
ment, the industry should lead the first layer of regulatory mech-
to corporate pressure. Simultaneously, it has increasingly lent its
anism - especially drawing content code and guidelines for ethi-
departments for market-friendly research, including the much
hyped "hyperlocal media" promising business models for localcal media practices as well as their monitoring. However, these
media entities at neighbourhood levels. However, fcc, OfCom,layers should be legally linked to an autonomous statutory body
Australian Communications and Media Authority and other regu-with clear processes for escalation of complaints and findings.
The autonomous statutory body should have provisions of sanc-
latory bodies have been active in experimenting several models to
allocate regulatory functions to public as well as private entities.tions after exhausting industry-led mechanisms of restraint and
incentives. It should also intervene in specific forms of productive
Many of the reasonably successful efforts in regulation in these
regulation of content and include a modular approach to regulat-
countries have adopted a co -regulatory model involving distribu-
tion of regulatory functions between public and private players. ing ownership, consolidation and other structural issues, as dis-
Co-regulatory model can be conceived in two ways: distri- cussed in the second section. At the same time, there should be
other innovative ways of encouraging compliance - publication
bution of regulatory functions in a single regulatory strand (e g,
drafting of content code as opposed to enforcement of content of outcomes of compliance, publicity to regulatory mechanisms,
and a discursive turnaround media regulation to emphasise the
code), and distribution of different aspects of regulation (e g,
ownership as opposed to content) between private players andpositive aspects of regulation that could prompt media entities
and media professionals to approach regulation as ways to en-
public authorities (usually independent statutory body). For in-
hance the trustworthiness of brands. Even before any of this is
stance, there are certain in-built incentives evolved by the indus-
set in motion, the government should have sufficient data and
try and the monitoring mechanisms of fcc to ensure diversity in
insights on different media fields and patterns of media practices
content and representation of minority voices. Similarly, in Ger-
within the country, as pointed out in the third section. If the
many, co-regulatory models retain the state's regulatory power
burden
through certification of code and non-state regulatory bodies appears huge today, it will only escalate with the rapidly
multiplying and even more rapidly mutating media landscape
while allowing sufficient institutional space for the industry
associations to administer and monitor regulation. These of tomorrow.
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i Kate Oakley (2004), "Developing Anderson,
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business- Local and Media Networks", Contemporary South
man and politician Vijaya Sankeshwara Media and Cultural
had a Studies Key Works (Maldan, Asia, 9(3): 289-314-
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torial levels. The paper underwent significant
Chakravartty, Paula (2004): "Telecom, National De- tery and the Newspaper Is King; India's Millions
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Vijayanand Publishers in 2006. There Culture
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Asian History and Culture (forthcoming). Parthasarathi, Vibodh (2010): "Deciphering Chindia:
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4 This builds on Chattopadhyay and Sarkar's invita- "Introduction: The Subaltern and the Popular", and Communication, 6: 329-36.
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scian assumption that the subaltern is defined by
Goldman, Ellen and Anne H Chen (2010): "Modelling Hindu Nationalism and the Reshaping of the
insufficient access to modes of representation",
Policy for New Public Service Media Networks", Indian Public (Cambridge: Cambridge University
and how this can redefine our theoretical practice
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Gitlin, Todd (1983): Inside Prime Time (New York: Sandvig, Christian (2006): "The Structural Problems
5 Ashish Rajadhyaksha (2009), "A Provisional Defi-
Pantheon). of the Internet for Cultural Policy" in D Silver and
nition for the Cultural Last Mile", http://www.
A Massanari (ed.), Critical Cyberculture Studies
cis-india.org/raw/histories-of-the-internet/ Hallin, Daniel С and Paolo Mancini (2007): Compar-
ing Media Systems: Three Models of Media and (New York: NYU Press), pp 107-18.
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Economic & Political weekly E33S3 January 28, 2012 vol xlvii no 4 Ю9
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Innovating Tuberculosis Control in India
NORA ENGEL, WIEBE BIJKER
Tuberculosis огтв is a very seri

worldwide, and generally lacks
Tuberculosis
Tuberculosis Mycobacterium
ted ted through
through Mycobacterium
(тв) inhalation
inhalation oftuberculosis
bacteriais anand, intuberculosis
infectious
itsof bacteria
most which which
com-disease is commonly
is and, commonly transmit-
in caused its most transmit- by com- the
domain. Scientists, medical doc
mon form, affects mainly the lungs (pulmonary тв). The disease,
community workers
if untreated, will lead to gradual destruction of lungs, the in- make her
innovative potential
creasing incapacity of bodily functions and eventually death, тв of India re
is in principle curable with a cocktail of anti-тв drugs that have to
limits flexible responses to cha
be taken for at least six months and which are provided free of
opportunities - such as, for ex
charge by national control programmes according to interna-
drug resistance, co-infection
tional guidelines of the World Health Organisation (who). Yet, w
global health тв remains
actors the first among the world's infectious killers, mainlyand funds,
-that due to its close links to social problems
control ТВ is such as poverty,faced
sanita- with.
tion, population density, malnutrition, and stigma (Benatar
innovations of a different kin
2003; Farmer 1997; Farmer 2003). More than nine million cases
drugs or vaccines
are reported globally each year (who 2010a).are possible a
strengthen innovative
India is the country with the highest number of тв patients in capacity
the world. It has been estimated that there are 1.9 million new
the efforts of coping with тв i
cases occurring in India every year of which 0.8 million are ex-
struggle for innovation and co
pected to have pulmonary тв (ctd 2007b; ctd 2010). The huge
struggle and then
death strengthenin
toll and the long-term impact on patients, affecting them
balance different
mainly in their most productive years, lead topractices
a severe economic of
crucial for burden and immense
the ofTB cont futurehuman suffering and death on a daily basis.
The Central тв Division of the Ministry of Health and Family
understanding and experiment
Welfare, Government of India, is responsible for тв control and
instances of learning
implements the Revised National Tuberculosis Control Pro- about how
other countries
gramme (rntcp). The RNTCPand
has at its core the dots1 strategy of to the Wor
the who, the main focus of which is the delivery of anti-тв drugs
global efforts.
and adherence to treatment. The targets have been set: To cure at
least 85% of all newly detected pulmonary тв cases and to detect
at least 70% of the estimated incidence of smear-positive pulmo-
nary тв cases (Arora and Gupta 2002; ctd 2009). The rntcp
claimed coverage with the dots strategy of the whole country in
March 2006 (meaning geographical coverage of services, since
the rntcp has not reached out to every тв patient ), and has con-
sistently maintained the treatment success rate of >85% and the
detection rate of new sputum positive patients close to the global
target of 70% (ctd 2009). Yet, more needs to be done. It is esti-
mated that about 80% of тв patients initially seek treatment from
the non-governmental sector, including private practitioners,
Parts of this article are under review with BioSocieties. It is based on a where diagnosis is often inadequate and thus diagnosis of тв
larger PhD project into the innovation dynamics of ТВ control in India according to the rntcp guidelines tends to get delayed, ranging
by the first author. A book will be published with Orient BlackSwan by from one to six months (Uplekar et al 2001). Furthermore, poor
the end of 2012.
prescribing practices in the private medical sector where inade-
Nora Engel (i n.engel@maastrichtuniversity.nl ) is a researcher at UNU quate, insufficient or non-standardised treatment regimes are
Maastricht Economic and Social Research Institute on Innovation and common (Das 2004; Uplekar and Shepard 1991) are creating fail-
Technology. Wiebe Bijker ( yv.bijker@maastrichtuniversity.nl ) teaches ure cases and are breeding drug resistance.2 The poor often end
science and technology at the University of Maastricht.
up indebted when searching for care in the private sector and
111
Economic & Political weekly 0QSS3 January 28, 2012 vol xlvii no 4
SPECIAL ARTICLE :
following an unsuccessful treatment regime or shopping balance

arounddifferent forms of innovation and control will be crucial
for the future of тв control, in India and globally.
for the right treatment. These patients then access the public
sector in an advanced stage of the disease: indebted, demoti-
тв control programmes need to function in an ever-changing
vated, frustrated and seriously ill. They spread the disease
environment. Various actors with different perspectives and prac-
further and risk developing drug resistance. tices are concerned with тв control. The main goal of infectious
There has been increasing international attention to the threat
disease programmes is to control and orchestrate a variety of actors
and elements involved: the disease, healthcare providers, bacteria,
of multi-drug resistant tuberculosis (mdr-tb) and extreme multi-
data, in
drug resistant тв (xdr-tb)3 fuelled by the outbreak of xdr-tb processes of treatment and diagnosis, public opinion, etc. At
South Africa in 2006 which was widely published (Gandhi
theetsame
al time, actors need to innovate and be responsive to chang-
ing challenges,
2006). It is feared that in India the potential effect of mdr-tb on opportunities and localities. The improvement of
тв control
ongoing control efforts might be devastating, eliminating the suc- is continuously sought after and innovation is therefore
an cur-
cesses achieved so far. Next to increasing drug resistance, the indispensable part of controlling тв. Yet, innovation may also
challenge established control practices, may change them or render
rent public тв control efforts in India are challenged by increasing
them obsolete. Innovation and control are continuously changing,
co-infection with hiv (ctd 2007a, 2009), an increasing migratory
butsec-
population and urbanisation, an unregulated private medical deeply interlinked phenomena of public health efforts. We
define innovation as efforts to improve, and we define control as
tor, as also by social stigma, lack of awareness and the challenges
of integration with other health programmes (Arora andefforts
Sarin to govern a situation (and the humans and objects therein).
2000). Increased international attention to тв and mdr-tb How
in re-
does this tension between different practices of control and
cent years, portrayed as pressing global public health challenges,
innovation play out in ongoing тв control efforts in India?
Actors are engaged in various control practices through, for ex-
has also brought new opportunities in the form of new interna-
ample, supervision and management of healthcare providers, pa-
tional actors, new financial resources and progress in technology
and medicine. The latter are urgently needed since the current
tients or data; through technologies such as drugs or diagnostics;
tools mainly used in endemic countries, such as India, are inthrough
need standardisation of treatment processes in guidelines; or
of renewal. The main diagnostic test, sputum microscopy,through
is 130 redefinition of problems. These control practices are
years old and notoriously inadequate (Perkins et al 2006).ubiquitous
Fur- and at the forefront of all тв-related activities.
thermore, there has been no new drug since the discovery ofAt the same time, innovation for тв control is urgently needed
the
main drug Rifampicin in 1963 and concerns about increasingand is often thought of as new drugs, diagnostics and vaccines that
over-
could be developed by the private sector or by global public-pri-
use and drug resistance are rising. Lastly, the vaccine currently
used, Bacillus Calmette-Guérin (bcg), is ineffective for adult
vate тв
partnerships. Yet, innovation for тв control can and should
and only works for certain forms of paediatric тв. involve more than just technological aspects such as drugs, diag-
nostics and vaccines. The ethnographic fieldwork5 of the first au-
Innovation: Challenges and Constraints thor of this paper shows that innovations for тв control in India
Given the changes in the disease, its context and responses happen
to it, in organisational, strategic, technological and service-de-
one might expect the Indian тв control system to be receptive
livery aspects of тв control. Innovation can be found, for example,
and open to whatever changes and new opportunities might
• in a village committee meeting, where joint monitoring and
collaboration
appear and to foster innovation for тв in a variety of areas such as between villagers allow for тв control within the
communities;
improved diagnostic tests, drugs, delivery mechanisms, service
• in NGO policy meetings, where new collaborations between
processes, institutions, understandings and treatment regimes,
in order to be able to respond to the changing public healthactors
chal-and new advocacy strategies are being organised;
• inisaareferral slip for patients, by which private practitioners
lenge. However, this is not always the case. Partly because тв
social problem as much as a clinical problem, the groundsend
level
patients to the тв programme (and back);
realities for innovation are very complicated. Challenges
• inand
a document folder of а тв official, wherein new guidelines
and service processes are being planned;
constraints inherent to the health and wider social system hamper
learning, experimenting and thus innovation. But also because
• in laboratories, which are being upgraded to higher biosafety levels;
• inThe
of the particular way in which efforts to control тв operate. a research institute, where microbiologists are trying to sim-
particular control practices inherent in the dots strategy, for
plify тв diagnostics by conducting basic research on host factors;
example, have invited criticism for being unethical because •of
in its
a new diagnostic machine, which allows rapid drug
strong emphasis on controlling patients' swallowing theirsensitivity
drugs testing;
through direct observation (Narayan 1998, 1999; Ogden• 2000;
in a hospital room, where the first patients are being treated for
mdr-tb;
Pronyk and Porter 1999).4 These control strategies represent a and
• in a treatment guideline adapted to the local context.
particular balancing act between operational feasibility, biomedical
Innovation, understood in this sense, can mean to improve or
knowledge and sociocultural factors, whereby often sociocultural
factors are compromised because of the others. As we willadapt
argue
existing solutions to local contexts or to develop new ones.
in this article, the efforts of coping with тв are a continuous
These examples also show that innovative activity is undertaken
struggle about the right balance between innovation and control.
by various actors, including public and private, and that it ranges
Assessing this struggle and strengthening mechanisms
fromto
global to local levels. All these actors struggle simultaneously
112 January 28, 2012 vol XLVii no 4 LUàïl Economic & Political weekly
SPECIAL ARTICLE
for innovation and control while trying to respond to changing cir- that this is due to a combined effect of three main factors. First, a
cumstances. International organisations, donors and pharmaceuti- focus on treatment delivery, good accessibility of drugs and im-
cal companies are concerned with innovating тв control in order to proved cure rates rather than diagnosis in the dots strategy left
stop transmission of тв. The emphasis is on research and develop- diagnostics somewhat unattended. Second, a lack of coordina-
ment (r&d) of new drugs, diagnostics and vaccines. Some of these tion and strategic fostering of diagnostic r&d by the Indian health
actors are also trying to find responses to global challenges, such as (research) system. According to several public health experts we
urbanisation, migration or emerging drug resistance. The decision- interviewed, there are too many different agencies involved, all
makers in India, responsible for public тв control, need to meet acting in an uncoordinated fashion, r&d for new тв diagnostics
targets and implement policy guidelines across a large and diverse is neither actively fostered by the Central тв Division nor by the
country. However, their control efforts are also under pressure to main government funding research bodies, such as the Council
adapt to changing environments. These changing circumstances for Scientific and Industrial Research (csir) or the Department of
include developments in the demographic and epidemic situation, Science and Technology (dst). This situation is often related to a
emerging drug resistance, changing constellations in the interna- lack of assigned funds to тв.7 There is no long-term road map, no
tional global health world and availability of diagnostic and treat- coordination between different governing agencies, limited infra-
ment options. At the field level, health staff, physicians, patients structure, funding and human resources and not enough cooper-
and volunteers are similarly engaged in trying to innovate their ation with industry.8 This has been a general critique on the
practices to react to emerging drug resistance, increased migra- Indian health research system (iavi 2007; icmr 2004)9 and тв
tion, co-infection with hiv/aids and changes in social behaviour. diagnostics is no exception. Third, a lack of commercial interest
All this results in a struggle between innovation and control, and among the Indian pharmaceutical companies who conduct
understanding this struggle is relevant for practitioners in тв con- hardly any r&d on тв,ю despite having evolved as an industry
trol as well as for researchers studying those practices. from imitative to innovative r&d over the last few decades
This article reports on an analysis of public health that traces in- (Chaturvedi et al 2007; Kale and Little 2007). The lack of r&d in
novation and control dynamics throughout different social worlds тв diagnostics is generally attributed to the rigid price control of
of тв control in India from a constructivist perspective. The research anti-TB drugs and diagnostics by the Indian government, which
approach was exploratory and ethnographical, as practised in prevents even established pharmaceuticals from entering the
Science and Technology Studies (sts) (Collins 1985; Latour 1987). market, as a pharmaceutical consultant explains.11 This lack of
We study the interactions between facts, artefacts, actors and insti- focus, coordination and competition leaves the research potential
tutions, and how these interactions make these various elements within India (Chaturvedi et al 2007; iavi 2007; icmr 2004; Kale
change over time.6 sts accounts thus trace the developments of a and Little 2007; Lanjouw and MacLeod 2005) for тв diagnosis un-
broad range of elements, such as scientific knowledge, technologies, derused.12 It means that actors conducting r&d often come from
guidelines, bacteria, patients, policies and organisations. outside and lobby through international donors or organisations.
The different actors who are engaged with тв in India live in dif- An example of such an international actor is the Foundation for
ferent social worlds. These range from the world of the laboratory Innovative New Diagnostics or find13 which is evaluating, in col-
to the world of patients and practitioners, from the world of the na- laboration with the government, whether a new diagnostic test to
tional Indian тв programme to the global health policy world. These detect mdr-tb, developed by Hain Lifesciences in Germany, would
worlds have their own focus on what тв is and how it should be work in the Indian тв programme. They are testing this at a dem-
onstration site with existing capacities of the public тв pro-
controlled. They employ different practices and technologies (such
as laboratory techniques, drugs and diagnostics, national guide-
gramme. This evaluation project faces numerous challenges. The
lines, global policies). Actors in these different worlds often do change
not of technology implies changes in practices of controlling
really coordinate or cooperate with each other. Typically, these
тв and thereby in working processes, environment and culture for
which existing manpower is not prepared or qualified. The team
worlds are also separately researched by different disciplines (pol-
icy studies, medical anthropology, epidemiology). We hope that therefore
our has had to add manpower and extra funds from outside
and develop systems of biosafety or quality control which are non-
comparative analysis of these different worlds, from micro to macro
existent at the demonstration site. By generating additional re-
levels, from the level of the тв bacteria to global health policy, will
yield new results that mono-disciplinary work cannot offer. sources from outside, these localities and settings are becoming
In the remainder of this article we focus on two examples: The
less representative for field conditions. It shows that factors such
as lack of standardisation, manpower and costs, were not inte-
efforts to find a new diagnostic test for mdr-tb (a technological
innovation) and the efforts to include the private providers into
grated in the initial development of the test and were not foreseen
the public тв programme (an organisational innovation). in the international funds of the demonstration project. This might
be based on the assumption that technology can be much more
A Technological Innovation: New Diagnostics for MDR-TB
easily transferred to another context and, as a result, some of the
Despite a long tradition of тв research in India (Narayan 1999;
local expertise of scientists but also the community remains ex-
Narayanan et al 2003), the r&d situation for new diagnosticscluded.
in There are smaller players in Indian medical colleges, who
have developed their own in-house test for mdr-tb based on a
India has been not very supportive throughout the last decades.
There is no strategic fostering or coordination of r&d activities
similar technology, but who are not considered by the government
for a new diagnostic test within India. Our fieldwork revealed
for these evaluation studies. They feel excluded and blame the
Economic & Political weekly ЩЗЯ January 28, 2012 vol xlvii no 4 113
SPECIAL ARTICLE eeeee EEEEE
government for not the

taking private
them intosector and and
account, ngos into
for ch
instead international actorsder
and the
tests.14
heading ppm.17 Highly c
The analysis of control developed
practices ppm
can pilot projects
provide further wex
tions. Diagnosing ТВ is ferredand
difficult their patientsOn
uncertain. to top
the of
rnt
t
new diagnostics are the rntcp
complicated guidelines.
and mistakes These
happen in
easily
der to cope with this when private
uncertainty practitioners
of the diagnostic hav
process th
ernment argues that rates,
control ppm can
through improve the
standardisation ofтв
th
ess is crucial. What is detection
needed and the
is not only cure rate.18
a technology, Ho
but
uct in a box". A test needs tions
to be awere not one
test kit, coordinated and
that is embed
whole range of problem
standardised definitions such
specifications,15 and solution
as stand
steps to perform, At that
standardised time, quality
reagents, the Central тв Div
control, co
actions, instruments for extent
amplification and
resistant to manufacturin
include exter
esses.16 The test needs novators
to beandatheir ppm initiatives thus faced resistanceviable
commercially to their "prod
box". The ability to ideas. control
achieve The Central тв Division regarded it as unnecessary
through and as-
standardisation
diagnostic process, sumed the
within that patients would approach the
existing rntcp if it offered a
health-care facil
therefore an important good programme. for
condition The Central
a твnew
Division also feared that it would
diagnostic test. A
sult, actors who want to potentially threaten
develop a the qualitydiagnostic
new and indicators of the rntcp,
test for
that will be considered given
by the unregulated
the rntcp nature for
of the private medical sector.
evaluation need t
it as a "product in a box", Despite
embedded in
those concerns, one of a deliverable
the early ppm initiatives, the ppm packa
have to standardise it. model by Mahaveer,
Smaller Hyderabad, managed
players intoIndian
gain the attention of
medical
are not able to deliver the who
such in Geneva during the
a product in pilotaproject
box, and was thereafter
because they
have the capacity, sponsored
resources orand supported
skills by the
to Department
do so for International
and thus De- rem
cluded. However, a velopment (dfid)
diagnostic test, and thesuch
who.19 The as
Mahaveer
the project, in combi-
"product in
that came from Europe, nation with
can also data generated from other initial ppm models
be standardised in and re-
such a w
it does not immediately search
fit the studiesnew
from India, led to a shift in global
context where health policy by
control pr
might be different from the
thewho (2001).
ones This international
wherein detour paved
the the way for thewas
test or
developed, in this case a adaptation of ppm into the
laboratory inIndian тв programme. The local inno-
Europe.
This examples shows vative there
that activity had been
issupported
no by international policy influ- foster
coordinated
the innovative potential ence
for of the new diagnostics
who. This resulted within
in official ppm guidelines in 2005 by Indi
is more, the the rntcp (ctd 2005a,
different control 2005b). Yet, in orderaround
practices to lead to a sustained
standar
diagnostic processes can
shiftexclude
at the national policypotentially valid
level, the local innovations needed ad- exp
This, in turn, can cause ditional support from for
challenges developments
the within India, such as general
innovation in th
Local circumstances of lack of
health system manpower,
development, high
development of the rntcp costs,
and more l
political commitment andsustained international pressure by newwill,
administrative actors and their funds.
miscalculati
decision-makers and lack This happened
of only in 2008 when policy support
standardisation of for ppm was
work proces
present barriers to any reconfirmed and
effort to as a innovate
result the initial guidelines
the were
твagaincontrol
re-
Thus, we need to vised (ctd social,
incorporate 2008). Throughout a period of several
cultural and years,political
from d
sions of тв control in our 1993-2008,
conceptiona substantial policyof
shift occurred. The Central тв Divi-partly
innovation:
technological innovations need
sion officially to
recognised thatbe embedded
the private medical sector needed toin sup
social circumstances and be included in thebecause
partly form of ppm initiatives
thosein order toaspects
be able to treat of тв
themselves merit more patients under
improvement and a standardised treatment, to cut transmission
innovation.
and to avoid the emergence of mdr-tb (ctd 2008; who 2009).
An Organisational Innovation: The
Despite the reconfirmed Public-Private
policy support, ppm activities in India M
The тв programme does notcontinue to face challenges
actively in the field and
foster ppm has not been
other, scaled-
non-technic
of innovations, such as in up in a manner delivery
service that is adequate to the
or urgent need to involve the
organisation or s
Furthermore, staff is so huge
overburdened and primarily
private sector. Resistance and apprehensions against ppm and focu
reaching targets that they external
often partners
do continue
not at the field level,
have the by district and sub-
freedom and
ity to improvise, improve district level
and try rntcp staff.20
out Anew lack of willingness
ideas. to interact
Yet, and con-
such im
tions and experimentationsflicting
onperceptions
a micro-scale
of collaboration (such asseem
different views
very
on the pertin
crucial elements in any substantive innovation
importance of ppm, lack of process.
trust and belief in a common ground) As
innovators are often highly
among healthcare
committed providers in тв control
individuals
in India are identified who
as are
overcome the non-conducive environment
the main obstacles for collaboration for
(Uplekar innovation.
et al 2001). 21 We
The example of the Public-Private
argue that clashes between Mix (ppm)
actors' different initiatives,
control practices, linked
novation in organisational aspects
to their of тв
professional backgrounds control,
and understanding of тв fromillustra
an
point. Since 1995, a individual
handful of health, public health orpractitioners,
private community perspective, can medi
thropologists and activists started
explain advocating
some of the apprehensions and scepticism. for the inclu
114 January 28, 2012 vol XLVii no 4 Q2S3 Economic & Political weekly
SPECIAL ARTICLE
ррм requires changing, balancing and bridging different orders of How to Better Use Innovation for ТВ Control?
organisational control, namely direct supervision, standardisation These examples show that the potential for innovation seems to
and ideology/culture (Dougherty 1996). Actors differ in their prac- remain underused. How to learn lessons from these case studies
tices of supervision, standards and ideology/culture. In ppm, much of that can help us formulate strategies for making more use of the
the direct supervision of patients and healthcare workers in adminis- innovative potential amongst тв workers?
tering dots, for example, is transferred to external partners and new
forms of supervision emerge. Private providers supervise patients, A Non-conducive Environment for Innovation: Innovation is not
public healthcare workers supervise private providers and private actively fostered, neither technical r&d nor innovation in organisa-
providers at times also monitor practices in the public sector. tional aspects. What is more, innovators need to overcome a non-
Transferrai of direct supervision of patients to private providers conducive environment for innovation. Innovators need to over-
means that the тв programme needs to give up control over these come apprehensions, a lack of coordination and weak capacities.
patients to some extent. It requires trust, openness and often They need to be able to comply with control practices of the тв pro-
changes in attitudes of the rntcp staff towards external partners, gramme (standardise a diagnostic test), conduct research and pro-
particularly because the rntcp staff is also evaluated on the data vide evidence about impact on programme indicators, have per-
co-generated by these partners. This is challenging, given the ten- sonal relationships at higher bureaucratic levels and deal with repli-
dency of the blame game among private and public providers. cation and sustainability challenges. As a result, most of the innova-
At the same time, the rntcp staff supervises these external tors one meets are rather impressive personalities. They are skilled
partners through regular control visits, follow-ups, reminders mediators between different levels and worlds, between global and
and reports on the performance of ppm partners. This is regarded local actors. They often act from outside the rntcp, at times with
as cumbersome, additional work for the rntcp staff that is often international support, and unite the skills of practitioners, research-
overburdened with various tasks, given the vacancies and lack- ers and lobbyists in one person. Decision-makers tend to be open to
ing capacities in the health system. Qualified private practition- innovations when the proposals show a positive impact on pro-
ers resent these new forms of supervision. They experience the gramme indicators; when they are supported by external funding,
supervision by rntcp staff, often less senior than qualified pri- respected actors or international policy pressure; and if there is a
vate practitioners, as disturbing, inadequate and suspect.22 Pri- window of opportunity at the national level. These are difficult con-
vate practitioners tend to perceive the public sector workers as ditions to fulfil for small local players. The need for skilled media-
arrogant and claiming to occupy a morally superior position. This tors, weak capacities and detrimental political relations are thus
arrogance is particularly felt with regard to the rntcp's moral contributing to a non-conducive environment for innovation.
judgment of private practitioners' being only interested in profit Different control practices of actors matter for innovation,
(Costa et al 2008). Furthermore, some of the private practition- such as ppm or new diagnostic tests, through setting-up/break-
ers feel that the rntcp has been trying to put them on board for ing-through barriers for innovation, inclusion/exclusion of actors
ppm as service providers without a voice, and solely according to and through constituting entire cultures of control across differ-
the terms of the rntcp officials. Private practitioners perceive ent social worlds. Different worlds involved in тв control, such as
this to threaten their autonomy as a profession. This resentment global health policy, programme officers, private practitioners,
against control in the form of supervision by the rntcp is causing health staff and patients, meet in innovation situations and their
resistance among private practitioners towards ppm. They would control practices and resulting problem definitions at times over-
argue that the rntcp extends its control-based management lap and at other times clash and can lead to contestations, mis-
practices onto the private practitioners, instead of approaching matches or apprehensions between actors around innovations. In
the private practitioners with a strategy based on knowledge ex- the case of new diagnostics, different control practices lead to
change among equal partners.23 The rntcp, on the other hand, exclusion of potentially valuable expertise. In the case of ppm,
needs to meet targets, such as certain levels of detection, conver- clashes between actors' different organisational control practices
sion and cure rates. These targets have been set in epidemiologi- can result in acts of blaming and challenge ppm initiatives.
cal studies to assure the public good of тв control. In order to do
so, the тв programme makes use of various forms of supervision Innovation and Control: Inseparably Related Phenomena of
and a command and control style management. Qualified private Public Health Efforts: Based on the case studies we presented,
practitioners have, in general, strong apprehensions against rule- what can be said about the relationship between innovation and
based managerial practices which are different to the medical control? Our analysis shows that the phenomena of innovation
practice of private practitioners. The latter is based on ideals such and control in public healthcare efforts are not mutually exclu-
as individualism, discretion and autonomy which are linked to sive, but indeed inseparable and inextricably-related - they
their focus on individual health rather than public health. The mutually shape each other.
organisational control cultures and practices of the private and The innovative efforts with regard to new diagnostics or ppm do
the public healthcare providers are thus very different, which not exclude control practices, rather they influence (change, undo,
leads to both apprehensions and acts of blaming. The continued maintain) and even require certain control practices. This means that
apprehensions at local levels against ppm initiatives prove that efforts to innovate and efforts to control cannot be looked at sepa-
different organisational control practices were not bridged and rately. тв control will not succeed when solely focusing on controlling
integrated; changing or undoing control practices is difficult. and ignoring innovating; and innovating тв care will not succeed
SPECIAL ARTICLE = =
without negotiation
controlling. could help to overcome acts of of
Control blaming andтв
exclusion needs in
pond to changing which hamper innovations that often
challenges and require collaboration be-
opportunitie
tically assessed andtween different professional groups and different social
negotiated, but worlds. also to r
Innovation for тв needs
There is thus alsoa certain
a need for policy innovation: howamount
differ- of
replicable, ences in practices of control

transferable and and innovation can be constructively
responsible. Th
novation and discussedboth
control and bridged in order to cope with power relations, so-influenc
mutually
The example of cial
new hierarchies, vested interests, acts of blaming and apprehen-
diagnostics reveal
well. Innovation sions among
of a actors
new involved. diagnostic test r
standardisation to be feasible for the тв
a diagnostic testPolicy
which
Implications: Current policy is
mechanismsnot
that are focused standar
on
implementing one solution
smaller players in Indian medical college to a multiple and complex problem such
option for the as тв are outdated. These
RNTCP and do not work because
will complexity, fail
different to be t
by the localities, understandings and practices
decision-makers. However, are not taken into account contro
tion can also enough. In order to strengthen
jeopardise public health capacity, innovations
innovation. Cont
ardisation are needed. However, innovation can
requirements for тв control is not a linear proc-
exclude pot
tise, such as the smaller players
ess of improvement, but rather a complicated, continuous undertak- in India
tions as a result ing across many
face worlds, as different groups have different in
challenges practices the fie
A similar (including
dynamic is different
at definitions
play of what important
in problems and re-
the examp
tion requires quired solutions are).in
changes Currently,organisational
the innovative potential within In- co
public and dia is, we
private have argued, somewhat underused. This is alsoyet
providers, reflected in those c
the R&D situation for тв control
ppm and shape further in India. The research structures in
development of pp
tial tension between innovation
Indian тв control and
- for example, for operational research on new de- contr
ally influence andliveryrequire
models but also biomedical research concerned with newother
each diag- and
It also shows nostics - remain
that underused or uncoordinated handle
actors and isolated from each the r
innovation and other. Small local players,
control on the other hand, do not always have the
differently. The rn
gue for more means to conduct necessary research about their around
standardisation innovations. Yet, diagn
players medical research,
in collegespiloting of ideas and generation
wouldof evidence on programmefavour. P
would indicators and
prefer less control throughreplication is crucial for innovation in тв control. Not super
threatens their all necessary research needs to happen in a formal
autonomy as r&d laboratory,
a profess
emphasises the but there is
need to potential for coordinating and fostering r&d more sys-
supervise patients a
as mismanagementtematically
of and creating innovation opportunities for various actors
treatment is not on
patient but also forengaged
all in тв control,
твincluding the necessary positive attitudes
control effortsand as s
might develop). incentives for coming up withactors
Different (local) innovations. demand dif
innovation and To help innovation based
control, be effective, a more conducive
on environ-
their diff
There is thus a ment should be
need tocreated. Yet, also an acknowledgement
assess and is needed constru
ences in control of the many worlds engaged in тв control
practices (from the world of the the
across dif
India. These laboratory to are
practices the global health policy world), and of the different
diverse, mean dif
ent actors and understandings and
matter in practices of actors across these worlds with
different ways. A
show, assessmentregard
and to organisational, strategic, technological, and service de-
discussion of cont
cated due to livery relations,
power aspects of тв control. hierarchies,
ferent capacities, Creating
and a more conducive
varying environment for innovationperspectiv
would
situated characterrequire
of to systematically
knowledgecoordinate different forms of researchand pra
(formal r&d as This
edged and evaluated. well as operational also
research across different
holds for
and handle the relation between
governmental departments), innovatio
to monitor and assess existing
Before stating mechanisms of
which local adaptation across the country, to create op-
requirements need to
portunities for
right balance, these innovators to document, measure andbalances
different vocalise n
The relation between
their ideas, andinnovation and cont
to establish local reward and recognition mecha-
ously negotiated nisms. Rather than highlighting
between on annual тв day and in the an-
different actor g
vative nual rntcp report a handful of selected
activities.
Complex individual тв champions
organisational
need to cope with a problem would
or success stories, these local mechanisms of nurture
tooand re- much v
tional control forwardinnovation
innovative activity at the local level and provide
in sustainedsituated
need to assess
eachfor innovation
encouragement for
innovative activities within local тв control.situation
This would
expertise should be included. create a more conducive environmentIn where the
staff case o
would dare to trylocal
actors (be it patients, out new ideas. researchers, fi
vate practitioners)The have
fact that innovators need
a to weaker
be mediators between various voice an
excluded, worlds limits the innovative
dominated orpotential among actors because such
neglected in th
116 January 28, 2012 vol XLVii no 4 Q323 Economic & Political weekly
skilled mediators are hard to find. The fact that supporting factors and all control is not beneficial either. Thus, mechanisms to effec-
for innovations are often from outside the rntcp or even India is tively balance the two must be strengthened. The delivery of public
healthcare services in India is in crisis, mainly due to a lack of
problematic when innovations cause apprehension or do not fit local
conditions. Yet, innovation is not per se beneficial for тв control. In-accountability, resulting in high absenteeism, low quality in care,
low levels of satisfaction and widespread corruption (Hammer et
novation and control mean different things at all levels and across
the different worlds of тв control in India. It is an ongoing struggleal 2007). This article argues that by nourishing the urge for local
innovation, which exists despite above mentioned challenges, gen-
to find the right balance and to negotiate trade-offs. Fostering inno-
eral problems of too little accountability and too much corruption
vation at any price is therefore not advisable; instead, a balance be-
tween innovation and control needs to be continuously maintained.
might lose some of their base. Future research of a more interven-
tionist kind is necessary to examine how situated assessments
Rather than providing advice on an optimal balancing act between
innovation and control, we argue that this balance needs to be foundcould work in practice.
in situated assessments of the relation between innovation and con- While this article is critical of the current control structure as
trol. Problems are situated and thus solutions need to be found in implemented by the rntcp and its decision-makers (the who and
situated assessments. Assessing and constructively discussing differ- the Central тв Division), it also acknowledges their immensely im-
ent practices of innovation and control and their interplay is thus portant contribution to тв control in India and the success that has
essential to cope with the challenges that innovations are faced with, been achieved so far. Since its inception in 1997, more than 12.6
such as diverse local health system capacities, requirements for million patients have been treated under the rntcp and 2.2 million
highly skilled and resourceful mediating innovators, and challenges deaths averted. Yet, in 2009 alone, over two million тв cases and
of replication, apprehensions, and trade-offs. The mechanisms that2,80,000 тв deaths occurred in India. The rntcp has set for 2012-17
would need to be fostered in order to create strong, flexible innova- the ambitious plan to provide universal access to quality тв diag-
tion capacities are therefore situated assessments of the relationnosis and treatment for the entire Indian population (ctd 2011).
between innovation and control for every innovation situation. This will require, among others, much more financial resources
Are we now drawing paradoxical conclusions? One might issueallocated to тв, a strong involvement of the private sector and im-
a warning that situated assessments of the relation betweenproved diagnostics (Pai 2011). However, if тв control in India is to
innovation and control are risky, particularly for the case of тв con- strengthen its capacity to respond to changing challenges and
trol, where standardised diagnosis and treatment are central to opportunities, it is crucial to reflect on underlying innovation
achieve the public good of тв control. Yet, this warning only holds mechanisms. This can only be done while also assessing estab-
when one assumes that innovation would come at the expense oflished control practices. This article, then, is a hopeful and optimistic
control. This analysis showed that innovation and control are bothoutlook on the innovative potential of тв control in India, which
necessary and that the nature of both innovation and control is could be unearthed and used more systematically, yet will only
ambiguous. Innovation can have negative implications for control, reveal its true potential if it is allowed to do so in a situated manner.
NOTES and therefore need to be controlled in order to interviews with an adviser at the department of
avoid treatment failure and protect the drugs from biotechnology in Delhi, 20 January 2009 and a pri-
1 DOTS, or the directly observed treatment, short
losing their power (Craig 2007; Harper 2005). Yet, vate physician in Hyderabad, 9 March 2009.
course, is the strategy for treating routine TB by the
it has been argued that it is rather structural vio-8 Interview with a director of an NGO research
WHO that is being applied worldwide in slightly var-
lence and social inequalities that cause treatment centre in Hyderabad, 10 March 2008.
ied national adaptations. The DOTS strategy consists of
failures, such as poverty, economic inequity, racism,
five elements: (i) government commitment, (ii) case 9 Some of the general constraints of the Indian health
gender inequality, drug use, homelessness, overt research that have been voiced are that the impor-
detection by sputum microscopy, (iii) standardised
political violence or war. These factors structure pa-
treatment regimens of six to eight months with di- tance of health research is not recognised enough by
tients' vulnerability to the disease and their access
rect observation (DOT) of the patient swallowing policymakers; that there is no departmental status of
to care, but are often beyond their control (Farmer
drugs for at least the initial two months, (iv) regular health research in the health ministry; that there is
1997, 2003). In line with these arguments, an effec- no national coordination between health research
supply of anti-TB drugs, and (v) a standardised
tive TB policy needs to focus on care, rather than
recording and reporting system (WHO 2010b). efforts; that there is a no health research climate;
control, by means of local adaptation and partner-
2 However, what is coined "irrational practice" from that there is no priority given to capacity and human
ships with patients (Ogden 2000).
a public health point of view needs to be examined resource development; that intersectoral linkages
5 The ethnographic fieldwork of nine months was are weak; that IT and biotech tools are inaccessible;
in the broader Indian social, economic conducted
and policy in two rounds between 2007 and 2009,
context of healthcare demand and supply (Kamat and, finally, that links between health research and
whereby the researcher followed actors and actions
2001; Kielmann et al 2005). Kielmann et al the
argue services are too weak (ICMR 2004).
across country. It consisted of more than 100
that not following guidelines can be seen as adap- 10 Astra Zeneca, which has an entire centre devoted
semi-structured interviews, observations and docu-
tive behaviour in dealing with greater ment
existential to the development of new drug molecules for TB,
research in Hyderabad, Krishna and
uncertainties around HIV/AIDS in the local socio- is an exception but does not focus on diagnostics
Warangal districts (Andhra Pradesh), Ahmedabad,
cultural, market and policy environments. (Interview with director of a laboratory in Banga-
Pune, Mumbai, Delhi, Chennai and Bangalore.
3 MDR-TB is defined as resistance to 6at lore, 25 March 2008).
In least Ri-
STS the term "artefact" denotes anything
fampicin and Isoniazid, two of the most impor- notably machines and instru-
human-made, 11 Interview with pharma consultant in Mumbai,
tant anti-TB drugs. It develops due to infection by thus, is not used with a deroga-
ments. Artefact, 7 February 2008.
a resistant strain or due to poor treatment with as for example when referring
tory connotation, 12 In a conference to stimulate industry/biotech en-
inadequate drugs or irregular drug intake (CTD finding that is generated by a
to an erroneous gagement in TB diagnostics innovation in India at
2007a). XDR-TB, or Extensive Drug Resistant TB
faulty set-up of an experiment by the researcher. St John's Research Institute in Bangalore in August
(also referred to as Extreme Drug Resistance)
7 Interview with isa director of a research centre in 2011 this potential was sought to be unleashed. The
MDR-TB that is resistant to three or more of the conference was sponsored by McGill University &
Mumbai, 19 December 2008. An exception is the
six classes of second-line drugs (WHO 2008). Department of Biotechnology (DBT) that is funding Global Health Strategies with technical support
4 Most of this critique is levelled at the element of di- a joint project for development of a PCR-based diag- from the Bill & Melinda Gates Foundation, the
rect observation of patients while they swallow nostic system for MDR-TB involving the Centre for Foundation for Innovative New Diagnostics
their drugs. The underlying assumption of the em- DNA Fingerprinting & Diagnosis, Hyderabad, Jalma (FIND), and the International Centre for Genetic
phasis on DOTS is that patients cannot be trusted Institute, Agra, AIIMS, New Delhi and the Tuber- Engineering and Biotechnology (ICGEB), India.
to act for the good of the community (Ogden 1999) culosis Research Centre, Chennai (Padmini 2002); 13 FIND is an international, independent non-profit
Economic & Political weekly «я avi January 28, 2012 vol xlvii no 4 117
foundation, funded by the Bill & Melinda Gates of ing Processes in the
Mistrust: Indian Pharmaceutical Indus-
Public and
Foundation, the European Union and the Govern- tions of try", Technology Analysis
Each Other& Strategic Management, in M
ment of the Netherlands, with the aim to foster the tative 19(5): 589-609.
Health Research,
development of new diagnostics for selected pover- Craig, G Kamat,
M V R (2001): "Private Practitioners and Their"'Nat
(2007):
ty-related diseases in contractual partnerships with sis", Social Role in the Resurgence of Malaria in Mumbai
Theory & H
industry and academics. FIND India, entered into a CTD (Bombay) and Navi MumbaiInvolvem
(2005a): (New Bombay), India:
Memorandum of Understanding with the Indian OrganisationsServing the Affected or Aiding inan Epidemic?",
theSo- R
government in 2006. The aim is to demonstrate and Programme cial Science & Medicine, 52(6):(New
885-909. D
address the introduction of new, rapid and quality- Directorate General
Kielmann, К, D Deshmukh, S Deshpande, V Datye, J Por- of
assured diagnostic tests for ТВ at affordable prices Health and ter and S Rangan
Family(2005): "Managing Uncertainty Wel
for the public health sector (FIND 2007). around HIV/ AIDS in an Urban Setting: Private Medi-
- (2005b) : Involvement o
14 Interview with a microbiologist at a medical vised cal Providers and Their PatientsTubercu
National in Pune, India", So-
college in Delhi, 21 January 2009. Central cial Science & Medicine,
ТВ Division, 61(7): 1540-50. D
15 Standardisation is needed to scale-up the test in a Services, Lanjouw,
Ministry J О and M MacLeod (2005): "Pharmaceutical
of He
cost-effective manner throughout the country - R&D for
(2007a): Low-Income Countries: Global Trends and
"Multi-dru
(interview with international NGO programme Drug Participation by Indian Firms", Economic TB
Resistant & Political in
manager in Delhi, 21 January 2009). This is cru- on the Weekly, 40(39): 4232-42.
Problem, Preve
cial for the ТВ programme manager, given the trol",from consultative
Latour, В (1987): Science in Action: How to Follow Scien-
huge operational effort involved, and that it takes
organised tists andby
Engineers throughIndian
Society (Cambridge, C
up to five years to roll out a new technology in Government MA: Harvard Universityof Press). India,
India (interviews with central ТВ officer in Delhi,
tral ТВ Division,
Narayan, T (1998): "A Study of Policy Process and Im- Dire
14 January 2009, and а ТВ consultant at the WHO
Services, plementation
Ministry of the National Tuberculosis Control of
India office in Delhi, 22 February 2008). New Delhi.
Programme in India", Doctoral Dissertation,
16 Interview with an international NGO programme
- (2007b):LondonTB
University. in India:
manager in Delhi, 22 January 2009. Delhi: Central
- (1999) : "A Violation of Citizens'ТВ
Rights: The HealthDivis
17 The basic idea of the initial PPM initiatives was Health Services, Ministr
Sector and Tuberculosis. One's Understanding of
that private practitioners refer the ТВ patients to fare). the Problem of Tuberculosis affects the Choice of
the RNTCP and can become their DOTS provid-
- (2008): RNTCP Revised Schemes for NGOs and Intervention Strategies", Indian Journal of Medical
ers. In this way, private practitioners keep their Private Practitioners (New Delhi: Central ТВ Divi- Ethics, 7(3).
patients and can charge for consultations, but the
sion, Directorate General of Health Services, Narayanan, P R, R Garg, T Santha, P P Kumaran
patient receives the drugs free of charge and
Ministry of Health and Family Welfare) . (2003): "Shifting the Focus of Tuberculosis Re-
follows the standardised DOTS therapy by the
- (2009) : ТВ India. RNTCP Status Report (New Delhi: search in India", Tuberculosis, 83(1-3): 135-42.
RNTCP, supervised by the private practitioner.
Central ТВ Division, Directorate General of Health
18 Interview with RNTCP consultant -2, in Delhi, Ogden, J (1999): "Compliance versus Adherence: Just a
Services, Ministry of Health and Family Welfare).
15 January 2009. Also see, Agarwal et al (2005). Matter of Language? The Politics and Poetics of
- (2010): RNTCP DOTS Plus Guidelines (New Delhi: Public Health" in J M Grange and J Porter (ed.),
19 Interviews with private physicians in Hyderabad,
Central ТВ Division, Directorate General of Health Tuberculosis: An Interdisciplinary Perspective (Lon-
24 November 2008. Also see Uplekar (2003).
Services, Ministry of Health and Family Welfare). don: Imperial College Press), 213-34.
20 Interview with an NGO programme manager in
- (2011) : ТВ India 2011: RNTCP Annual Status Report - (2000): "Improving Tuberculosis Control-Social
Mumbai, 19 December 2008.
(New Delhi: Central ТВ Division, Directorate Gen- Science Inputs", Transactions of the Royal Society of
21 Costa et al (2008) found that the mutual lack of con-
eral of Health Services, Ministry of Health and Fam-
fidence between private and public sectors is affect- Tropical Medicine and Hygiene, 94(2): 135-40.
ily Welfare).
ing collaboration in healthcare in Madhya Pradesh. Padmini, J (2002): "DBT Urges for Making PCR Based
Das, A (2004): "Competitive but Inaccessible", India To-
The public sector perceived the private sector as driv- Diagnosis Mandatory for ТВ", Express Pharma
gether, viewed on 8 January 2012 (http://www.in- Pube, 31 January, New Delhi, viewed on 8 January
en by commercial interests, poorly responsive to
diat0gether.0rg/2004/mar/hlt-status04.htm). 2012, (http://www.expresspharmaonline.com/
partnership initiatives and focused on self-interest.
The private sector perceived the public sector as be- Dougherty, D (1996): "Organising for Innovation" in 20020131/ expresspharmai. shtml).
ing non-supportive, corrupt and making unrealistic S R Cleggs, С Hardy and W R Nord (ed.), Hand- Pai, M (2011): "Tuberculosis Control in India: Time to
demands under the name of partnerships and there- book of Organisation Studies (Thousand Oaks: Sage
Get Dangerously Ambitious?" The National Medical
fore saw no benefit in collaborating with it. Publications), 424-39.
Journal of India, 24(2): 65-68.
22 Interviews with international NGO fieldworker in Farmer, P (1997): "Social Scientists and the New
Perkins, M D, G Roscigno and A Zumla (2006):
Hyderabad, 24 February 2009 and private physi- Tuberculosis", Social Science & Medicine, 44 (3):
"Progress Towards Improved Tuberculosis Diagnos-
cians in Hyderabad, 27 February 2009. 347-58.
tics for Developing Countries", The Lancet, 367
23 Interviews with IMA consultants in Delhi, 19 Jan- - (2003) : Pathologies of Power: Health, Human Rights (9514): 942-43.
uary 2009, and in Hyderabad, 25 February 2009. and the New War on the Poor (London, Berkeley:
Pronyk, P and J Porter (1999) : "Public Health and Human
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118 January 28, 2012 vol xlvii no 4 Е332Э Economic & Political weekly
Market Borrowings
corresponding share has been increasing
over the years. In respect of the states,
during the 1990s, this component consti-
Centre versus States tuted only about 16% of the fiscal deficit,
which increased to around 26% during
2000-05. After witnessing a decline to
EPW RESEARCH FOUNDATION
around 17% in 2005-06 and 2006-07, it
rose to a range of 57.1% to 77.3% during
1 Introduction 2007-08 to 2010-11 in
(Table 1 and Graph A,
This review analyses the trends
p 120). Correspondingly, loans from the
certain crucial parameters
legislation was passed by the centre remained less than 4% of the states'
pertaining to the market
While legislation centralcentral
the government fiscalall was passed responsibility in 2003, by the all
government in 2003, fiscal deficit since 2000-01 - some years even
borrowings of the
the states passed corresponding legisla- centre showing
andnegative
the flows - compared to an
states. It argues
tions by 2010. The burden of financingthatthe average of 40% to 49% during the 1990s.
the latter
fiscal deficit
have made efforts to contain is increasingly shouldered by This is consequent
their to the recommenda-
domestic market borrowing of both the tions of the finance commissions making
borrowing. But, continued excess
the states more market-dependent.
states and the centre. While prudent fiscal
borrowingbymanagement is a jointthe
responsibility of the central The contribution of market borrowings
government statesis
and the centre, becauseintroducing
of the sub- in financing
a of the central government's
ordinated position of the states in raising fiscal deficit also remained very significant
perverse incentive for the states,
market borrowings, it is the central govern- at more than 85% in 2011-12. Overall, it
which wouldment that adversely
should show in a demonstrable affect
would appear that containment of the fiscal
overall fiscal
manner themanagement
way to fiscal consolidation. at
deficit the
at both central and state levels
country-level.
This note analyses trends in certain crucial would crucially depend upon economising
parameters pertaining to market borrow- on market borrowings. Secondly, larger
ings, particularly at the level of the states, market borrowings also crowd out other
and argues that the latter have made efforts borrowers, particularly corporates, from
to contain their borrowing. But, continued the market, not only making bond financ-
excesses by the central government would ing costlier, but also discouraging the much
introduce a perverse incentive for the needed development of the corporate bond
states, which would adversely affect overall market for financing growing infrastruc-
fiscal management at the country-level. ture needs. Thirdly, effective monetary
management and interest rate policy by
1.1 Market Borrowings the Reserve Bank of India (rbi) will also
and Fiscal Deficit depend upon the market borrowing pro-
grammes being contained within limits.
Market borrowings constitute a significant
In this context it is worrisome that the
component of financing the fiscal deficit
at both levels of government andfiscal
the performance of both the centre and
Table 1: Market Borrowings of Central and State Governments
Year Centre State Combined % of State Borrowings Share of Market
Gross Net Gross Net Gross Net Gross Net Fiscal Deficit
(1)
2000-01 1,15,183 73,787 13,300 12,880 1,28,483 86,667 10.4 14.9 61.8 14.2
2001-02 1,33,801 92,302 18,707 17,261 1,52,508 1,09,563 12.3 15.8 64.4 18.3
2002-03 1,51,126 1,04,118 30,853 29,064 1,81,979 1,33,182 17.0 21.8 71.8 28.6
2003-04 1,47,636 88,816 50,521 46,376 1,98,157 1,35,192 25.5 34.3 72.1 39.2
2004-05 1,06,501 46,050 39,101 33,978 1,45,602 80,028 26.9 42.5 40.5 31.6
2005-06 1,60,018 98,237 21,729 15,455 1,81,747 1,13,692 12.0 13.6 72.6 17.0
2006-07 1,79,373 1,11,275 20,825 14,274 2,00,198 1,25,549 10.4 11.4 80.5 16.9
2007-08 1,88,205 1,09,504 67,779 56,224 2,55,984 1,65,728 26.5 33.9 102.9 71.5
2008-09 3,18,550 2,42,317 1,18,138 1,03,766 4,36,688 3,46,083 27.1 30.0 73.3 77.3
2009-10 4,92,497 3,94,358 1,31,122 1,14,883 6,23,619 5,09,241 21.0 22.6 94.2 57.1(RE)
The EPWRF team is led by К Kanagasabapathy
2010-11 4,37,000 3,25,414 99,529A 1,47,999$ 5,36,529 4,73,413 18.6 31.26$ 83.7 68.8(BE)$
and supported by Anita В Shetty,
2011-12 5,10,000* 4,35,872* 1,04,998+ NA 5,95,331 NA 14.3 NA 85.5
Vishakha G Tilak, V P Prasanth,
л: This Rema К Nair,
is against the budgeted amount of Rs 1,63,640 crore. +: Based on aucti
because of lower gross borrowings. *: Includes additional borrowings over bu
Shruti J Pandey and Sharan P Shetty.
Sources: RBI Handbook of Statistics on Indian Economy, State Finances: A Study
Economic & Political weekly E32S3 January 28, 2012 vol xlvii no 4 1]-9
Graph A: Share definitely
and 2009-10. Accordingly, of encourage
Market the states to demand B
the state governments' - justifiably so - additional borrowing

fiscal targets were also allocations. This tendency will exacerbate
relaxed from 3% to 3.5% the overall combined fiscal position with
in 2008-09 and further all its adverse consequences for the debt
to 4% in 2009-10. The market and the interest rate structure.
states did not seem to
have made full use of 1.2 Market Borrowings
Graph B: these relaxations, but
Gross
and Interest Rates
the
Fiscal Defici
fiscal deficit of the states
The risk free yields of central government
still remained substan- securities determine the overall term
tially higher at 2.4% instructure of interest rates in the fixed

2008-09 and 3.3% in income market. State government securities
2009-10. It was budget- are on par with central government secu-
ed at 2.5% for 2010-11. rities for purposes of the statutory liquidity
The trends in gross ratio (slr). Technically, they should com-
borrowings and data mand the same yield in the primary and
the states worsened
secondary markets. In fact, during the
available on their surplus cash balances
best performance
show that the states have further tightenedpre-reform period of fixed coupon floata- c
the their fiscal position since 2010-11. Gross
central tion, no distinction was made between
governm
2.5% and that
market borrowings by the states state and central loans.
increased of However, practi-
the
from Rs 1.31
ducing the cally, the states are in a subordinate posi-
lakh crore in 2009-10 to alowest
bud- eve
around 4%.
geted level of Rs 1.64 tion as
lakh crore in 2010-11. far as market borrowings arepos
The con-
then, The
moreauction data available however shows cerned. The states are placed relatively in
sharply in
that actual market borrowings of the statesa disadvantageous
government compar position constitution-
amounted only to Rs
centre's 1.3 lakh crore in ally compared to the centre.
deficit While the
jump
the 2010-11. During the current
next financial year,centre can borrow
two both in domestic and
years.
to 5.1% in
while the budgeted notforeign markets, the states cannot borrow
2010-11,
borrowings level is i
touchavailable, gross borrowings, as per auction directly
about 6% from abroad. Secondly, the states
duri
due to January, amounted to onlycannot borrow effectively even in the
substantial
data up to 12 ad
announced cashdomestic market without taking permis-
recently
Rs 1.05 lakh crore. Investment of surplus (T
It is balances in 14-day treasury
now bills (tbs) bysion from the central government and
common kn
be a the states also came down from Rs 1.17 lakh these borrowings are
Herculean taskpractically allocated fo
ment to restore fiscal consolidation soon. crore as at end March 2011 to Rs 0.66 lakh by the centre to the states. Furthermore,
Table 2: Key Deficit Indicators of the Central and State Governments (Amount in Rs crore) state securities are not held
Year Central Government State Governments
by the RBi in its investment
Gross Fiscal Ratio to Revenue Ratio to Gross Fiscal Ratio to Revenue Ratio to Gross Fiscal Ratio to Revenue Ratio to
account though, of late, repos
2000-01 1,18,816 5.5 85,234 3.9 87,922 4.1 55,316 2.6 1,99,852 9.2 1,38,803 6.4 are permitted in state securi-
2001-02 1,40,955 6.0 1,00,162 4.3 94,261 4.0 60,398 2.6 2,26,425 9.6 1,59,350 6.8 ties. Presumably, because of
2002-03 1,45,072 5.7 1,07,879 4.3 99,727 3.9 57,179 2.3 2,34,987 9.3 1,62,990 6.4 these reasons, state securities
2003-04 1,23,273 4.3 98,261 3.5 1,20,631 4.3 63,407 2.2 2,34,501 8.3 1,59,408 5.6
are sold at higher yields in auc-
2004-05 1,25,794 3.9 78,338 2.4 1,07,774 3.3 39,158 1.2 2,34,721 1.2 1,14,761 3.5
tions and hence have a spread
2005-06 1,46,435 4.0 92,299 2.5 90,084 2.4 7,013 0.2 2,39,560 6.5 99,312 2.7
2006-07 1,42,573 3.3 80,222 1.9 77,509 1.8 -24,857 -0.6 2,30,432 5.4 55,366 1.3
over the auction yields of
2007-08 1,26,912 2.5 52,569 1.1 75,455 1.5 -42,943 -0.9 2,03,922 4.1 9,626 0.2 central government securities
2008-09 3,36,992 6.0 2,53,539 4.5 1,34,589 2.4 -12,673 -0.2 4,72,807 8.5 2,40,864 4.3 ever since the auction system
2009-10 4,18,482 6.4 3,38,998 5.2 2,16,101 3.3 46,663 0.7 6,25,009 9.5 3,75,724 5.7 was introduced (Table 3, p 121).
2010-11 (RE) 4,00,998 5.1 2,69,844 3.4 1,98,539 2.5 24,370 0.3 5,76,583 7.3 3,00,881 3.8 This can also be attributed to
2011-12 (BE) 4,12,817 6.0* 3,07,270 3.4 several other factors: state
For Central Governent Data for 201
(-) Negative sign loans have a fixed
indicates maturity of
surplus.
For state governments in 2010-1 1
Fiscal deficits as
10of
years; their
a
market lots at
ratio
GDP m
Source: Handbook
are significantly low whenon
of Statistics In
During 2008-09 and 2009-10 when the crore as on 12 January 2012. Overall, considered
it state-wise; and the yields of
centre's deficit crossed 6%, the states were state loans may depend upon the fiscal
would appear therefore that the states did
also allowed to raise additional borrow- not resort to fiscal excesses as much as theposition of the states, their borrowing size
ings to the extent of 0.5% of gross state and other economic factors such as the
centre. But, continued slippage in borrow-
domestic product (gsdp) each in 2008-09 banking spread.
ing targets by the central government will
EÊEEÊEE = MONEY MARKET REYÏÊW
Table 3: Spread of compared to

SDLs the corresponding
over Central 10 -year government from the path
Government of fiscal consol-
Securities (10-year maturity)
Month SDLsYTM Bid-cover CGS Bid-cover Spread of

security of the central government as idation is bound to have a demonstration
(%) Ratio of 10-Year Ratio of SDLs over reflected in relative bid-cover ratios. From effect on the states, taking the country's
2006-07 to 2010-11, barring 2008-09, the fiscal rating into inferior territory. That
2006-07 8.11 3.27 7.80 2.70 30
bid-cover ratios of the states were much would prove to be much more serious in the
2007-08 8.25 2.73 8.06 2.77 20
2008-09 7.90 2.44 8.32 2.64 (41) higher, ranging from 2.73 times to 3.27 context of the widening current account
2009-10 8.11 3.03 7.26 2.25 86 times compared to a range of 2.15 times to deficit. The central government should
2010-11 8.39 2.92 7.84 2.15 56 2.77 times in the case of 10 -year central show the way to the states by consolidat-
For Financial Year2011-12 government loans. ing its fiscal position sooner than later.
Apr-2011 8.40 2.98 7.94 2.56 46
However, during the current financial
May-2011 8.65 3.02 8.36 1.85 29
year, the bid-cover ratios of state loans 2 Money, Forex and Debt Markets
Jun-2011 8.58 2.54 8.25 2.24 33
Jul-2011 8.63 2.28 8.36 1.95 27

showed that investor response is waning Overall, market activities remained bleak
and the bid-cover of the states is converging during December following a slowdown in
Aug-2011 8.57 1.97 8.39 1.90 18
Sep-2011 8.64 1.72 8.30 2.32 34 to the level of central government securities. gross domestic product (gdp) growth in
Qct-2011 8.89 1.89 8.78 1.79 11 This can be attributed to a bombarding ofaddition to the precarious fiscal situation
Nov-2011 9.21 1.34 8.81 2.04 40 additional primary issues by the central of the government leading to a further rise
Dec-2011 8.88 2.04 8.56 2.05 32
government in the later part of the year, in its borrowing programme over the
Source: RBI website, compiled by EPWRF.
crowding out and competing more aggres- budgeted figure. A falling index of indus-
loan issues. It has really trial production (hp) and poor corporate
sively with state both
In general, government securities,
of the centre and states, also
proved be a testing time for the rbi inresults already hammered investor confi-
to determine
corporate bond yields. In deploying
recent its months,
debt management skills. dence while a sharp depreciation of rupee,
the spread of corporate bondData onyields aggregate borrowings despite the rbi's intervention, further dis-
state-wise over
during the
central government securities has period 2006-07 to 2011-12 (till 12 tressed market sentiments. However, sooth-
widened.
The expanded borrowing programme
January the top six states, ing headline inflation with food price
2012) shows thatof
namely,likely
the central government will Maharashtra,
have WestaBengal, Andhra inflation falling into negative territory
Pradesh,
continuing pressure on this Uttar Pradesh,
spread in theTable 4: State-wise Aggregate Borrowings during 2006-07 to 2011-12
coming months. Gujarat and Tamil Nadu, States No of Times State-wise Weighted Weighted Spread of Bid-cover
Auctioned Gross Cut-off Average Cut-off Ratio
Yet another disadvantage each
withwith state
aggregateloans
borrow- Borrowing Yield (%) Yield (%) Yield over
(Rs Crore) Weighted
ingaexceeding
is that they are auctioned on multiple Rs price
40,000
basis and, to that extent,crore
this anddiscourages
above, accounted From FY 2006-07 to FY 2011-12
forsoon
secondary market trading as highafter
as 62% ofpri-
total Maharashtra
borrowing
mary issues. The difference of by all the states
weighted West Bengal
Andhra Pradesh 62 60,093 8.24 8.19 4.08 2.57

(Table average
cut-off yield over weighted 4). Data on trends
yield in
Uttar Pradesh
ranged between two and seven
auction yields bps. The
show that few
Gujarat
RBi should consider, in consultation with
states remained consistently
Tamil Nadu
among
the states, introducing a the top 10price
uniform states Rajasthan
commanding
auction for the states. This may also the make
lowest Kerala
bidding more aggressive and

yields encourage
in auctions during the Punjab
secondary market activity, period

thereby2006-07 to 2011-12.
improv- Karnataka
The identification of factors Madhya Pradesh 21 17,553 8.22 8.17 4.64 2.39
ing market liquidity and resulting in
Haryana
better price discovery. influencing this trend would
Bihar
require further research.
Uttarakhand
1.3 Borrowing by States: Jammu and Kashmir 32 10,266 8.44 8.37 7.27 2.45
Certain Indicators Way Forward Assam
With fiscal slippage in the

The yields of state loans in auctions moved Jharkhand
Himachal Pradesh 26 6,093 8.17 8.14 3.51 3.24

up from 7.90% in 2008-09 to 8.39% in past and substantial
recent
2010-11 in tandem with comparable 10- by the centre over
excesses Goa
Nagaland
year central government securities.itsDur-
budgeted market borrow-
Puducherry
ing 2011-12, it has touched a peak ofings,
9.21%the centre has started
Manipur
in November but due to a pause insetting
rate a bad example. Meghalaya
While
hikes, the yield came down to 8.88% inthe states, thus far, Mizoram
December 2011. have exercised prudence Sikkim
Partly because of higher coupon and and appear to be managing Tripura
partly because they provide an opportunity their cash and debt flows Chhattisgarh
Arunachal Pradesh 8
for diversification, state government auc- more efficiently, the conti-
Data are updated up to 10 January 2012.
tions received relatively better responses nued deviation of the centralSource: RBI website, compiled by EPWRF.
Economic & Political weekly ЕП353 January 28, 2012 vol xlvii no 4 121
increased expectations about some respite 2.1 Money Market fortnight and amounted to Rs 3,78,430 crore.
on the rate front with the rbi also retreating Discount rates fell marginally and ranged
The money market experienced significant
from its prolonged monetary tightening in between 9.30% and 9.81% during the same
signs of volatility in December following
its policy review on 16 December 2011. In period. Contrary to cds, the outstanding
severe liquidity tightness in the system.
addition, the rbi's move to stem the rupee's amount of commercial papers (cps)
Largely anticipating a pause in policy
fall by encouraging foreign capital inflows increased by Rs 7,300 crore during the
tightening by the rbi in its Mid-Quarter
through various measures also improved Monetary Policy Review of 16 December
fortnight ending 15 November to Rs 1,76,000
the market outlook. However, eurozone crore. The rates continued to rule in a
2011, the rates softened in the beginning
worries continued to affect domestic market of the month, but moved upward fromwide the range of 8.78% to 13.55% as in earlier
activities and the exchange rate, while middle of the month on the back of the fortnights during the review period. Accord-
some positive developments in the us tapering liquidity situation owing to Q3 ing to the trading platform Fixed Income
renewed confidence about the overall advance tax payments by companies. DespiteMoney Market and Derivatives Associa-
global economic outlook. the rbi taking a break in its monetarytion (fimmda), cds recorded a notable rise
tightening cycle, the rates hardened since of 26% in their daily trading activity while
A huge outflow of funds owing to third-
the government continued its extensivecps reported a 15% fall during December
quarter (q3) advance tax payments caused
a cash crunch in the system during borrowing. Expanding bank credit and vitalover November.
December. In addition, the central bank's forex intervention by the rbi also sucked While the government increased its
intervention in the forex market to stem out funds from the system. However, theborrowings programme, to lever the situa-
the fall of the rupee coupled with around impact of the pause in rate hike by the rbition the rbi relaxed borrowing limits to
Rs 65,000 crore outflows by way of govern- in the December policy review caused ratesbanks and conducted special repo auctions
ment securities auctions prompted the banks of overnight and notice money instruments on 16 December. Still, the average daily
to make excessive use of the rbi's liquidity to fall below 9.0% levels and liquidity alsoborrowings in the rbi's laf window
adjustment facility (laf) repo window to somewhat eased towards the month end. remained above Rs 1 lakh crore in Decem-
meet these requirements during December. However, increased anticipation of a ber, with the rbi injecting an all-time high
The expansion of bank credit by as much softening of interest rates in the coming of Rs 1.7 lakh crore in its repo window on
as Rs 1.7 lakh crore further disturbed the days, collateralised instruments like col- 23 December. Bankers also utilised the
balance, while a similar growth in depos- lateralised borrowing and lending obliga- marginal standing facility (msf) of the rbi
its towards the end of the month brought tions (cblo) and market repo rates ruled on six trading days during the month and
some relief. Considering tight liquidity relatively stable compared to overnight borrowed a total of Rs 19,545 crore. The
conditions, the rbi relaxed borrowing lim- rates. The weighted average rates also central bank purchased securities through
its by banks from it, while it also conduct- remained almost unchanged during Decem- omo and infused liquidity worth more than
ed additional repo auctions and continued ber compared to November. With extreme Rs 33,000 crore. Following these steps,
to utilise its open market operation (omo) volatility in call and notice money rates pressure on the liquidity front eased a bit
window to infuse liquidity. Still, short- combined with banks' dependence on these towards the end of the month (Table 6).
term money market rates escalated to instruments to meet their immediate need
2.2 Forex Market
their highs in December with overnight of funds, both the segments reported a sharp
rates poised to cross 10% levels. 26% and 13% jump in their respective daily Continued stress across financial markets
The forex market was under the limelight trading activity during the review period. on account of events in the euro zone and
throughout the month with the rupee-dollar Contrary to this, the cblo and market repo the resultant flight to safety by global
exchange rate touching new lows. However, segments recorded a fall of 8% and 9% in Table 6: RBI's Market Operations (Rs crore)
Month/Year OMO LAF Net (Average Daily
the rbi took various steps to limit rupee their average daily turnover during Decem-
depreciation to 2% against the us dollar. ber compared to November (Table 5). Jul-2011 -6 37,683
In the government securities market, govern- As per the latest available data from the Aug 2011
ment further revised its borrowing pro- rbi, the certificates of deposit (cds) market Sep-2011
Qct-2011
gramme for the current fiscal by announc- had seen a fall of Rs 3,800 crore in its out-
Nov-2011
ing additional Rs 40,000 crore auctions of standing amount during the fortnight end- Dec-2011
securities. Yields across maturities however ing 18 November compared to the previous Source: RBI's Weekly Statis
witnessed signs of easing taking cues from Table 5: Money Market Activity (Volum
falling food inflation and stable interest Instruments December 2011
Daily Average Monthly Range of Daily Average Monthly Range of

rates, but the extra market borrowing pro- Volume Weighted Weighted Average Volume Weighted Average Weighted Average
gramme kept the yields firm. The yields of

Call Money 10,959 9.01 8.21-9.68 8,699 8.58 8.14-8.69
10 -year benchmark paper remained above Notice Money
the 9% mark in December. The corporate Term Money @
bond market reflected buoyant activity in CBLO
the primary segment and coupon rates Market Repo
Range of rates during

continued to move in an upper range. Source: www.rbi.org.i
122 January 28, 2012 vol XLVii no 4 ЩЗСЭ Economic & Political WEEKLY
investors supported the us dollar which premia across maturities also softened a Segment-wise, futures turnover fell by
gained further. The euro sustained its depre- bit from the middle of December. Overall, 5% in total terms, while options trading
ciation against major currencies and fell by during the period of one month, the near- dropped by 3% during December over
3.6% vis-à-vis the dollar in a period of one month premia notched up 1.2 percentage November. In the futures segment, usd-inr
month. A weak euro impelled safe-haven points, while 3-month and 6-month premia contracts garnered 96% of investor interest
demand for the Japanese yen, but the hardened by 1.8 percentage points and 2.1 despite the product showing a 5% fall in
Japanese government's frequent forex mar- percentage points, respectively. The 30 -days turnover. Among the exchanges trading in
ket intervention limited its appreciation to premia ended at 8.11%, while the 3 -month currency derivatives products, the National
0.4% against the dollar. However, improve- and 6 -month premia closed at 6.76% and Stock Exchange (nse) continued its domi-
ment in the risk appetite with data from the 6.23%, respectively on 30 December. nance with a 55% market share while the
us economy exhibiting encouraging signs of Following unstable external develop- Multi-Commodity Exchange (mcx-sx) con-
improving economic conditions prompted ments, forex market turnover reported a tributed 43% towards the total currency
renewed demand for riskier assets. Thus, 1.4% rise in its daily trading duringderivatives turnover. However, the United
most of the Asian currencies limited their November. Inter-bank and forward trans- Stock Exchange (use) also managed to gath-
losses against the dollar towards the end actions reported a 3% and 2.5% increase in er 2% of overall turnover during December.
of the month. The us dollar index [Nominal turnover, while merchant and spot dealings
Major Currencies Dollar Index (March declined marginally by 2.2% and 0.3%, 2.3 Central Government Securities
1973=100)] showed a 97 bps rise during respectively during November compared The status quo maintained by the rbi in its
December over November (Table 7). to October (Table 8). credit policy review on 16 December proved
The Indian rupee continued to be the The rbi's move to sup- Table 7: Foreign Exchange Market: Select Indicators
Month Rs/$ Reference Appreciation (+)/ Total FN Flows BSESensex
worst performing Asian currency during port the rupee and arrest
Rate (Last Friday Depreciation (-) ($ Million)
2011. With rising local demand for dollars, speculative transactions of the Month) of Rs/$ (in%) (Equity+Debt)
sustained capital outflows amid the us dampened bank opera- J u 1-2011 44.16 1 .27 2,399 18,197 68.53
Fed's decision to hold back on new stimu- tions in the forex seg- Aug-2011 46.05 -4.12 -7,903 16,677 68.85
lus steps, soaring inflation data and a ment in addition to the
Sep-2011
Qct-2011
sharp slowdown in hp numbers coupled imposition of transaction Nov-2011
with other signs of slowdown of the Indi- charges on currency Dec-201 1
an economy, the Indian rupee came under trading from August *: Data
Source:
relates to last
www.rbi.org.in,
day of the m
www.bsein
renewed depreciation pressure. The wid- 2011. The drastic fall in
Table 8: Average Daily Turnov
ening current account deficit and a the rupee also resulted in Month Merchant
strengthening us currency also exerted the huge fall in currency Apr-2011 14.1 (10.8)
pressure on the rupee. The rupee weak- derivatives market trad- May-2011 13.5 -(16.7) 48.3 -(6.3) 28.9
Jun-2011 12.7 -(5.8) 48.1 -(0.5) 27.4 -(5.2) 33.4 (1.5) 60.8 -(1.7)
ened to an all-time low of Rs 54.24 against ing activity as well. In
Jul-2011 14.0 (9.5) 45.1 -(6.3) 28.5 (4.0) 30.5 -(8.8) 59.0 -(3.0)
the greenback by 15 December, prompting December, the total cur-
Aug-2011 17.0 (21.6) 46.6 (3.3) 30.3 (6.2) 33.3 (9.0) 63.5 (7.66)
further action from the rbi both in terms rency derivatives trading Sep-2011 15.1 -(11.2) 44.8 -(3.8) 29.6 -(2.3) 30.3 -(9.0) 59.8 -(5.8)
of direct intervention and inflow aug- decreased by 4% over Qct-2011 12.6 -(16.7) 40.0 -(10.6) 26.7 -(9.8) 25.9 -(14.4) 52.6 -(12.1)
menting measures. Following rbi's swift November, while the dailyNov-2011 12.3 -(2.2) 41.0 (2.5) 26.6 -(0.3) 26.7 (3.07) 53.3 (1.4)
move to stem the rupee's fall and an trading reduced by 9% to*: Includes trading in FCY/INR and FCY/FCY.
Figures in brackets are percentage change over the previous month.
enhanced response from foreign inves- Rs 32,000 crore. Source: RBI's Weekly Statistical Supplement, various issues.
tors, the rupee broke its losing streak. Eas- Table 9: Details of Central Government Market Borrowings (Amount in Rs crore)
ing crude oil prices overseas also prompt- Dateof Auction Nomenclature of Loan Notified Amount Bid-cover Ratio Devolvement on YTMatCut-off Cutt-off Price
ed the rupee to recover against its major
02-Dec-11 7.83%2018 R 4,000
trading currencies. Dull stock market 8.79% 2021 R 6,000
activities and euro area developments

continued to affect the rupee's move- 09-Dec-11 7.99% 2017 R 2,000
ments; thus, overall, the rupee depreciat- FRB2020 R 2,000
ed by 2% against the dollar during Decem-

ber and ended at Rs 53.26 per dollar on 30
23-Dec-11 7.83% 201 8 R 4,000
December. Still, compared to November,

the rupee generally narrowed its losses. 30-Dec-11 7.99% 2017 R 3,000
The forward premia across three matu- 9.15% 2024 R 6,000
rities displayed a rising trend from the 8.28% 2027 R 3,000
beginning of the month following the one

way fall of the rupee. However, following Total for December 2011
the rbi's forex market friendly measures, Total for November 201 1
FRB: Floating Rate

the rupee limited its depreciation and thus Source: RBI press r
Economic & Political weekly Q323 January 28, 2012 vol xlvii no 4 123
MONEY MARKET REVIEW == =
a booster to market sentiments as the 26 December created speculation regard-

auctions which helped investors to weather
ing escalation in the government's bor-
move was factored in by investors. Over- pressures on yields.
all, yields declined during the month.rowings, which was initially declined by the Four issuances of central government
However, the rbi's debt managementgovernment. But government announced securities were conducted on 2, 9, 23 and
30 December for notified amounts of
additional borrowing worth Rs 40,000
skills were put to test with the govern-
ment announcing additional borrowings crore on 30 December. The rbi continued
Rs 13,000 crore, Rs 10,000 crore, Rs 12,000
crore and Rs 15,000 crore, respectively.
with its passive injection of liquidity
and slippage in the fiscal deficit becoming
certain. An extra auction announced on through the laf and in the form of omoAs per the previous issuance, calendar
Table 10: Secondary Market Outright Trades in Government Papers -NDS and NDS-OM Deals (Amount in Rs crore)
Descriptions
Last Week (30) First Week (2) Total for the Month (November 2011) (September 2011) (June 2011)
1 Treasury Bills 5,945 10,107 35,227 13,548 27,761 22,595

A 91-Day Bills
В 182-Day Bills 1,708 8.48 1,591 8.81 9,918 8.51 3,680 8.80 2,787 8.35 1,639 8.15
С 364-Day Bills 1,858 8.33 5,579 8.49 11,721 8.41 4,610 8.72 3,909 8.34 2,159 8.13
2 GOI Dated Securities
Year of (No of
Maturity
2012 (3) 296 8.46 1383 8.72 3,805 8.62 1,516 8.76 1,003 8.32 1,415 8.06
2013 (2) 0 8.29 55 8.39 80 8.37 25 8.59 822 8.27 180 8.14
2014 (6) 1 9.01 265 8.23 230 8.66 266 8.26 301 8.23
2015 (4) 254 8.23 480 8.65 984 8.44 337 8.65 1,067 8.32 2,059 8.37
2016 (2) 53 8.43 116 8.69 976 8.42 421 8.84 997 8.33 4,057 8.37
2017 (4) 367 8.48 700 8.68 2,304 8.51 2,202 8.87 5,405 8.33 3,142 8.37
2018 (3) 7,234 8.44 8,715 8.70 41,070 8.47 22,669 8.87 12,051 8.34 13,445 8.37
2019 (2) 15 8.58 130 8.46 50 8.93 25 8.34 1 8.30
2020 (3) 430 9.59 742 9.67 7,805 9.59 1,364 9.25 1,590 8.97 2,630 8.08
2021 (4) 38,589 8.48 33,609 8.74 1,99,127 8.50 1,04,712 8.89 1,74,377 8.32 1,42,798 8.29
2022 (3) 923 8.48 1,954 8.78 9,490 8.55 22,117 8.96 42,386 8.41 73,835 8.39
2024 (1) 20,551 8.61 31,344 8.87 1,52,133 8.63 27,914 9.01
2027 (3) 1,986 8.86 900 9.05 3,938 8.86 2,374 9.07 4,218 8.57 2,590 8.57
2028 1 9^2 7 1 &51 Õ 962
2030 (1) 905 8.68 710 8.95 11,096 8.75
2032 (1) 21 8.67 1 8.90 113 8.65 1 9.17 231 8.58 1,119 8.59
2034 (1) 2 8.49 5 9.15 4 8.51 0 8.30
2040 (1) 389 8.72 1,888 9.19 4,514 8.94 2,472 9.21 1,076 8.63 256 8.64
2041
3 State Govt Securities
Grand total (1 to 3)
(-) means no tradin

(1) Yields are weigh
Source: Compiled by
Table 11: Predominantly Traded Government Securities (Amount in Rs crore)

Descriptions December 2011 Previous Month Three Months Ago Ых Months Ago
LastWeek(30) First Week (2) Total for the Month (November 2011) (September 2011) (June2011)
GOI Dated Securities
6.85 2012
7.17 2015
7.59 2016 53 8.43
7.99 2017
8.07 2017
7.83 2018
7.80 2021
8.79 2021
8.08 2022 792 8.48 752 8.76 5,370 8.53 4,214 8.97 9,931 8.40 23,962 8.40
8.13 2022
9.15 2024
8.26 2027
8.28 2027
8.97 2030
8.28 2032
8.30 2040
Total (All Securities)
(-) means no trading YTM = Yield to maturity in pe

Source: As in Table 10.
Table 1 2: Yield Spreads (Weighted Average) - Central Government Securities There was a steep rise in for Rs 8,000 crore each. A softening of yields
(basis points)
the traded volume of cen- was seen across maturities during Decem-
Yield
Spread in bps Last tral

Weekgovernment securities
First ber, while
Week the bid- Entire
cover ratio improved
Mont
1 Year-5 Year 19 29 14 28 6 23
in December to Rs 4,42,147 for 91-day and 182-day tbs (Table 14). The
crore from Rs 1,88,411 crore huge demand for short-term instruments
5 Yea r-10 Year
10Year-15 Year 38 27 31
1 Yea r-10 Year 19 39 18 37 14 25 in November. The overall was reflected in the volume of trade in tbs
Source: As in Table 10.
yield dropped by 34 bps tomore than doubling to Rs 35,227 crore.
Table 13: Details of State Government Borrowings (Amount in Rs crore) 8.58% over the period. InYields eased by 15 bps, 29 bps and 31 bps
Date of Auction Number of Total Bid-cover YTMat Weighted
Participating Amount Ratio Cut-Off Average
the secondary market, moreto 8.54%, 8.51% and 8.41%, respectively
States Accepted Price (%) Yield (%) than 81% of trade was for 91-day, 182-day and 364-day tbs.
05-Dec-11
accounted for by the top five
13-Dec-11
2.5 Corporate Bond Market
securities, namely, 9.15%
20-Dec-11
Total for December 19 13,459 2.04 8.88 8.85 2024, 8.79% 2021 (a new Two public issues accessed the market in
Total for November 14 8,618 1.34 9.21 10 -year benchmark), 7.83% December from Muthoot Finance and
Source: RBI press releases.
2018, 7.80% 2021 and 8.97% Power Finance Corporation of India. Mut-
Table 14: Auctions of Treasury Bills (Amount in Rs crore)
2030. The highest traded hoot Finance approached the market with
Date of Auction Bids Bid-cover Cut-off Weighted Cut-off Weighted
Accepted Ratio Yield (%) Average Price (Rs) Averagesingle security contributed a public issue of secured non-convertible
34% followed by the second debentures (ncds) raising Rs 300 crore
A: 91-Day Treasury Bills
most traded security with a with an option to retain over-subscription
07-Dec-H
14-Dec-n
share of around 32%. The up to Rs 300 crore of ncds aggregating to
21-Dec-n top 10 securities shared a total of Rs 600 crore. This issue opened
28-Dec-n almost 86% of the trade on 22 December and closed on 7 January.
Total for Dec 2011 16,000 3.76 8.49 8.45 97.93 97.94
(Tables 10 and 11, p 124). Debentures maturing in 24 months, 36
Total for Nov 2011 20,000 2.75 8.81 8.8 97.85 97.85
months, 60 months and 66 months were
The spread between one
B: 182-Day Treasury Bills
07-Dec-n
and five-year maturities
offered at coupon rates of 13%, 13.25%,
21-Dec-n was 14 bps, while it was 18
13.25% and 13.43%, respectively. A public
Total for Dec 2011 8,000 2.76 8.39 8.33 95.99 96.01
bps for one and 10 -year
issue of tax free, secured, and redeemable
Total for Nov 2011 8,000 2.39 8.89 8.85 95.76 95.78
ncds by Power Finance Corporation for
maturities. A softening of
C: 364-Day Treasury Bills
14-Dec-n
Rs 1,000 crore opened on 30 December
yields of 10 and five year
28-Dec-n
maturities with one year
and closed on 16 January. This issue has
Total for Dec 2011 8,000 2.84 8.31 8.22 92.35 92.42 yield remarkably firming
an option to retain over-subscription up to
Total for Nov 2011 12,000 4.59 8.68 8.66 92.03 92.05 up contributed to the fall the
in shelf limit or Rs 4,033.13 crore. Deben-
Source: RBI's press releases.
spreads (Table 12). tures with two maturities, i e, 10 years and
Table 15: Details of Public Issues and Private Placements in Corporate
Bonds - December 201 1
State development loans15 years, are available with coupon rates
Institutional Category No of Volume in Range of Range of Maturity (sdls) were issued thrice of 8.20% and 8.30%, respectively.
Issues Rs Crore Coupon Rates in Years (y) and
(in %) Months (m)
during December raising Private placements on the nse also
Public Issues funds worth Rs 13,459 crore, surged by 59% to Rs 22,237 crore over
Fls/Banks with 19 states participating the period. Through 34 issues non-bank
Central undertakings 1 1,000(4,033.13) 8.20-8.30 IQto 15 in these three auctions. financial companies (nbfcs) raised the
Total for December 2011 2 1,300(4,333.13) 8.20-13.43 2 to 15 Years
Private placements on NSE
Five states approached the
highest amount worth Rs 12,434 crore fol-
Fls/Banks
lowed by financial institutions and banks.
market twice, namely, Kerala,
NBFCs Jammu and Kashmir, Rajas-
The highest tenor of 20 years was provid-
Central undertakings 28 3,418 9.25-9.67 4to20 than, Uttar Pradesh, and
ed by ntpc, a central government under-
Total for December 2011 76
taking. Cholamandalam Investment and
West Bengal. Yields softened
Total for November 2011 34
Figures in parenthesis are of green shoe options.
in later auctions. Overall,
Finance offered the highest coupon of
Source: www.nseindia.com
12.50%. Overall, the coupon rates offered
cut-off and weighted yields
auctions till 23 December were slated but on softened in December to 8.80% and moved up to a range of 9.25% to 12.50%
26 December the rbi announced one more onbid-
8.85%, respectively with an improved issues other than a zero coupon bonds
offer
auction worth Rs 15,000 crore scheduledcover ratio of 2.04 (Table 13). A lower ytm at by Tata Capital Housing Finance
(Table
for 30 December. Out of the four auctions,8.87% was also realised for sdls in the sec-15).
three were fully subscribed while the sec-ondary market with turnover increasing
According to the data published by the
ond auction witnessed devolvement worth more than twice to Rs 8,475 crore. sebi, the total turnover of corporate bonds
Rs 400 crore. Overall, cut-off yields declined in the secondary market, reported by bse,
to 8.71% in December from 8.98% in Novem- 2.4 Treasury Bills nse and FiMMDA, improved by 33% to
Rs 63,067
ber. The bid-cover ratio also improved to Maturities of 91-day tbs were issued for crore in December compared
2.34 over the month (Table 9, p 123). Rs 16,000 crore and 182-day and 364-day
with the previous month.
Economic & Political weekly ЕЭШ January 28, 2012 vol xlvii no 4 125
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Kerala to 0.36 in Chhattisgarh, i e, a gap
Multiple Dimensions of Human of 0.43 points in 2007-08. The range in
1999-2000 was from 0.78 in Delhi to 0.27
Development and Interpretations in Jharkhand, i e, a different 0.51 points.
Over time, the relatively backward states
of Change: A Response have been catching up with the national
average in terms of development out-
comes. This is consistent with the falling
SANTOSH MEHROTRA, ANKITA GANDHI coefficient of variation and gini coeffi-
cient of hdi across states from 1999-2000
dealing with education and health. to 2007-08.
Interpret Change" (epw, 17 December While the education index increased by While still struggling with low absolute
In 2011), 2011),
InterpretAchin"Human
Chakraborty
Achin Change"
has ques-Development: Chakraborty (epw, 17 How December has Not ques- to 28% over 1999-2000 and 2007-08, pul- levels of hdi and component indices, these
tioned the analysis of the India Human ling hdi up, the health index pulled itvery states, namely Bihar, Chhattisgarh,
Development Report (ihdr) 2011 - Towards down by 13%. However, it needs to be Madhya Pradesh, Orissa, Assam and
Social Inclusion , arguing that there are qualified here that the percentage changeJharkhand, have shown improvements in
"a number of mistakes". He has conclud- in each index has been calculated after hdi and other indices at a rate better than
ed that the commentary goes "astray" normalising it to one, so as to remove

the national average. The growth rate of
because of its reliance on percentage any bias because of the indicators used.
improvement indicates convergence for
changes for interpreting improvement. That is, the percentage change is not
these states in terms of human develop-
This is a response to each of his con-calculated by absolute levels of life ment
ex- outcomes.
tentions or rather misinterpretations Achin Chakraborty's suggestion that
pectancy in years, but after normalising
of analysis in only the first chapter of we could have used the Sen Index so that
the index with the observed goalposts
the report. the achievements of the states with
(also capturing the improvements across
The ihdr 2011, prepared by the Insti- the states). higher per capita income are better rec-
tute of Applied Manpower Research is the It is true that life expectancy which is ognised for what they are, (the principle
only second human development report used to construct the health index im- of "increasing marginal difficulty"), is
for the country. The main thrust of this proves slowly. But it is also true that in well
the taken. However, if he had read the
report is to assess whether or not the his- entire ihdr 2011 carefully, he would
education index, comprising literacy and
torically excluded sections of society have have found that the success stories of
mean years of schooling adjusted for drop-
started to share the benefits of the devel- Kerala and Tamil Nadu in terms of a
out rates, the latter are also changing
functional public health and education
opment process. The report analyses mul- slowly. Moreover, when analysed in greater
systems have been widely discussed
tiple dimensions of development - employ- detail across the chapters, it is seen that
ment, poverty, nutrition, health, education, despite improvements in various health
across the report for other states to emu-
late. It is on account of a strong state
availability of infrastructure, including outcomes, the present pattern and pace
the usual practice of calculating the would make it difficult for India to achieve
commitment that the improvements in
Human Development Index (hdi) and its its health Millennium Development Goal human development outcomes in these
component indices. Achin Chakraborty (mdg) targets by 2015. On the other hand,
seems to have decided to question the es- achievements in education (not overlook-
timates and interpretation of hdi in one ing the existing challenges of quality) will EPW Index
of the eight chapters that examine these enable the achievement of education mdg
An author-title index for EPW has been
multiple dimensions of human develop- targets before time.
prepared for the years from 1968 to 2010.
ment in India. The hdi over the period of analysis
The PDFs of the Index have been uploaded,
The hdi is a composite index of an (1999-2000 and 2007-08) has risen from
year-wise, on the EPW web site. Visitors can
arithmetic mean of indices of health,0.387 in 1999-2000 to 0.467 in 2007-08.
download the Index for all the years from the
education and income that carry equal
The top five ranks in both years go to the
site. (The Index for a few years is yet to be
weight. Observing the improvements in
states of Kerala, Delhi, Himachal Pradesh,
prepared and will be uploaded when ready.)
the past decade, we find that the rate
Goa and Punjab, At the other end of the
of improvement in the hdi has largely
spectrum are mostly the northern and EPW would like to acknowledge the help of
been guided by achievements in the eastern states - Chhattisgarh, Orissa, the staff of the library of the Indira Gandhi
education sector. This is illustrated quan-

Bihar, Madhya Pradesh, Jharkhand, Uttar Institute for Development Research, Mumbai,
Pradesh, Rajasthan, and Assam1 - that in preparing the index under a project
titatively by looking at the growth rates
have an hdi below the national average.
in the respective indices, and qualitative- supported by the RD Tata Trust.
The hdi across states ranges from 0.79 in

ly and in detail in the respective chapters
Economic & Political weekly B353 January 28, 2012 vol xlvii no 4 127
states are reaped across the board by loop model which states that certain can be explained through the feedback
all social and religious groups. For in- human development outcomes feedback
loop model.
stance, scheduled castes (ses) in Kerala as inputs into the development process - a
have higher literacy rates than upper Santosh Mehrotra ( santosh.mehrotra@nic.in )
model that operates both at the micro (in-
and Ankita Gandhi ( ankita.gandhi@nic.in )
castes in Uttar Pradesh and Rajasthan. dividual) and macro (societal) levels. In
are with the Institute of Applied Manpower
ses and Other Backward Classes (obcs) this context, the performance of Kerala is
Research, Planning Commission.
in Tamil Nadu perform better in most worth mentioning (as has also been dis-
health indicators than upper castes in cussed in its State Profile in the Report). NOTE
Uttar Pradesh. With improvements in education and 1 Chakraborty wrongly interprets, our use of the
word "poorer" states for these states, as states with
The analysis of ihdr 2011 is based on ahealth, it has experienced high rates of low HDI. In standard economics parlance, "poorer"
conceptual framework around a feedback
economic growth over these years, which refers to low in per capita income, not low HDI.
A Rejoinder
chapters. Yes, it is a bit unfair on my part,
although I stated clearly why I was doing
that. I questioned two substantive conclu-
sions of the report, which, in my analysis,
ACHIN CHAKRABORTY
were eminently questionable. The impor-
tance of the conclusions, in the views of
Pradesh, Orissa, Assam and Jharkhand have the authors, was apparent in the fact that
shown improvements in hdi and other indi-
Gandhi for their thoughtful response they are the two main "findings" high-
ces at a rate better than the national average.
I to thanktoGandhi my commentary
my commentary publishedSantosh
earlier. Ifor their Mehrotra thoughtful published and response earlier. Ankita I lighted in the Foreword.
am glad that they have accepted my sug- I may be forgiven if the following sounds The report indeed has done a commend-
gestion that an improvement index of the repetitive. The change in hdi value for Bi- able job in compiling a variety of indicators
Sen-type should have been a better way to har has been 0.075 (from 0.292 to 0.367) of human development for different social
reckoning with change. However, I am and that for all-India has been 0.08 (from groups. The descriptive presentations in
afraid that they seem to have not fully 0.387 to 0.467). I still fail to understand other chapters are undoubtedly useful.
appreciated the pitfalls of comparing how Bihar can be included in the set of However, making substantive statements
percentage changes. The authors have states that have shown improvements bet-
based on changes in a composite index is a
reiterated and tried to justify yet again ter than the national average. The distance
rather tricky business, and one has to exer-
that "[o]ver time, the relatively backward between Bihar's hdi and the national aver- cise caution in doing that. Conversations of
states have been catching up with the na- age has in fact increased from 0.095 to 0.1! this kind, I am sure the authors will agree,
tional average in terms of development The authors seem to be unhappy about enrich our understanding of specific quan-
outcomes". They write: my exclusive focus on only one of the titative aspects of change.
While still struggling with low absolute lev-
chapters of the report and questioning the
Achin Chakraborty (achinchak@rediffmail.com)
els of HDi and component indices, these very interpretations therein, and ignoring the is at the Institute of Development Studies,
states, namely Bihar, Chhattisgarh, Madhya rest of the report that contains eight Kolkata.
SAMEEKSHA TRUST BOOKS
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A ruminative memoir by one who saw much happen, and not happen, at a time when everything seemed possible and promising in India.
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of the pulls and pressures within the administration and outside it, the hopes that sustained a majority in the bureaucracy and the lasting ties he formed
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Mumbai Chennai New Delhi Kolkata Bangalore Bhubaneshwar Ernakulam Guwahati Jaipur Lucknow Patna Chand
128 January 28, 2012 vol XLvii no 4 Q2S3 Economic & Political weekly
= EPW Research Foundation
The point-to-point inflation rate measured by the wholesale price index for December 2011 sharply came down to 7.5% compared to 9.4% in the previous year, contributed mainly by th
articles coming down to 3.1% from 18.4% a year ago. Both food and non-food primary articles showed steep declines. Inflation rates of fuel and power, and manufactured products how
and 7.4% against 1 1 .3% and 5.4% respectively a year ago. The inflation rate on a monthly average basis moderated marginally to 9.4% from 9.6% a year ago.
Macroeconomic Indicators
.... . ..... . . Variation (in %): Point-to-Point
.... Index Numbers . of ..... Wholesale . . Prices
(Base Year- 2004-05 = 100)л Weights December Over Over 12 Months Fiscal Year So Far
All Commodities 100.0 156.9 0.0
Primary Articles 20.1 197.9 -1.6
Food Articles 14.3 190.8 -3.1
Non-Food Articles 4.3 178.6 1.3
Minerals 1.5 318.5 2.6
Fuel & Power
Manufactured Products 65.0 140.6 0.6
Food Products 10.0 152.9 0.7
Food Index (computed) 24.3 175.3 -1.8
All Commodities (Monthly average basis)
AThe date of first release of data based on 2004-05 series wef 14 September 2010.
Cost of Living Indices Latest Over Over 12 Months Fiscal Year So Far
Industrial Workers (IW) (2001 =100)
Agricultural Labourers (AL) (1986-87=100)
Note: Superscript numeral denotes month to which figure relates, e g, superscript 1 1 stands for November.
Money and Banking (Rscrore) 30 December Over Month Over Year Fiscal Year So Far
Money Supply (M3) 7198680 125419(1.8) 973500(15.6) 699190(10.8) 622480(11.1) 896817(16.0) 807920(16.8) 776930(19.3)
Currency with Public 977990 5531(0.6) 109320(12.6) 63790(7.0) 101170(13.2) 146704(19.1) 102043(15.3) 97040(17.1)
Deposits Money with Banks 6218400 120210(2.0) 865460(16.2) 636770(11.4) 521550(10.8) 750239(15.5) 707606(17.2) 683375(19.9)
of which: Demand Deposits 709390
Time Deposits 5509010
Net Bank Credit to Government
Bank Credit to Commercial Sector
Net Foreign Exchange Assets
Banking Sector's Net Non-Monetary Liabilities 1322500
of which: RBI 623240
Reserve Money (6 January 201 2) 1412910
Net RBI Credit to Centre 479390
Scheduled Commercial Banks (30 December 201 1 )

Aggregate Deposits 5827910 117849(2.1) 842120(16.9) 619940(11.9) 492960(11.0) 715143(15.9) 658716(17.2) 637170(19.9)
Demand 638670 66152(11.6)
Time
Investments (for SLR purposes)
Bank Credit 4365640
Non-Food Credit 4281100
Commercial Investments 169620
Total Bank Assistance to Commi Sector
Note: Government Balances as on 31 March 2011 are after closure of accounts.
Index Numbers of Industrial Production November* Fiscal Year So Far Full Fiscal Year Averages
(Base 2004-05=100)
General Index
Mining and Quarrying
Manufacturing
Electricity
* Indices for the month are Quick Estimates
Ca ital 3 Market ar e Fiscal Year So Far 2010-11
ital 3 Market ar e
BSE Sensitive Index (1978-79=100)
BSE- 100 (1983-84=100)
BSE-200 (1989-90=100)
S&P CNX Nifty (3 Nov 1995=1000)
Skindia GDR Index (2 Jan 1995=1000)
Net Fll Investment in (US $ Mn Equities) - period end 102088(0.5)
_ . _ ra . e November*
oregn ra e
Exports: Rscrore 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: Rscrore 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 $mn(* Provisional figures) 25615 215414(25.5) 171696(36.6) 249006(23.7) 201237(-4.2) 210029(22.2) 171940(33.5) 128790(22.4) 105233(37.1) 76772(33.2)
Balance ofTrade: Rscrore -69169
* Provisional figures.
Foreign Exchange Reserves (excluding
gold but including revaluation effects) ^Jan ân 31 Mar Fiscal Year So Far
Rscrore
US$mn
Figures in brackets are percentage variation

[Comprehensive current economic statistics w
Economic & Political weekly E33S3 January 28, 2012 vol xlvii no 4 12Ç
Secondary Market Transactions in Government Securities and the Forex Market - Weeks Ending January 6/13, 2012
1 Settlement Volume of Government Securities (G-Sec) Transactions
13 January 2012 6January2012 14 January 2011 2011-12* 2010-1Г*

Number Volume Number Volume Number Volume Number Volume Number Volume
of Trades (Face value of Trades (Face value of Trades (Face value of Trades (Face value of Trades (Face value
in Rs crore) inRscrore) inRscrore) inRscrore) inRscrore)
Outright Trades Ï58Ï4 136184 1572Õ 139359 4975 42215 316618 2663213 272916 2435678
Repo Trades 583 69039 461 41485 597 87682 23234 3092321 21881 3279732
Total 16397 205224 16181 180844 5572 129897 339852 5755534 294797 " 5715409
Daily Avg Outright 3163 27237 3144 27872 995 8443 1730 14553 1392 12427 "
Daily Avg Repo
2 Type-wise Settlement Volume of Government Securities Transactions

Outright Repo Outright Repo Outright Repo Security Description Value % Value to
Central Government 124983 46274 129564 26632 36433.471 64148 (Rscr) Total
State Government 1583 30 1338 10 272.928 363 Week Ending 13 Jan 2012
Treasury Bills 9619 22735 8457 14843 5508.905 23171 8.79% GS 2021 56491 45.20
Total
3 Category-wise Outright Activity - Market Share (in %)

Buy Side Sell Side Buy Side Sell Side Buy Side Sell Side 9.15% GS 2024
Foreign Banks
Primary Dealers
Public Sector Banks
Private Sector Banks 16.54 15.74 16.13 16.34 10.80 10.72 7 80% ° GS 202^ 6889 18 91
Cooperative Banks 444 43Õ : Ï87 Ï98 2.52 Ï52 - 7 : - 80% °
Mutual Funds 3.96 3.36 4.59 4.24 7.25 6.02
Others 1.80 0.05 4.19 0.01 1.16 0.09 6 Market Share in Outright Settlement Volumes (%)
Ins Cos Ш 132 Ш Ï5Ï Ш Ž55
Fis
4 Intercategory-wise - Market Share (in %)
Reverse Repo Reverse Repo Reverse Repo Top 15 62.01 60.64 55.26
Repo Trades Trades Repo Trades Trades Repo Trades Trades I !T ITT!
Public Sector Banks 3&84 Ï45 2134 331 Ž68 1977 -
Ins Cos 22.45 0.00 27.73 0.00 3.35 0.00

Mutual Funds 20.27 0.00 16.56 0.00 " 70.28 0.00 7 Per Cent Share in Activity: Forex
Private Sector Banks 9.19 6.04 17.65 " " 8.47 7.57 33.35
Foreign Banks
Primary Dealers
Cooperale Banks
Others 0.00 0.00 0.00 0.00 0.01 0.00 -
Fis 0.00 0.00 0.00 0.00 0.00 0.00 T°P20
8 Trading Volumes in the C

13 January 2012 6Janua7y2012 ~ 14 January2011 2011-12* 2010-11**
Numberof Volume Numberof Volume Numberof Volume Numberof Volume Numberof Volume
Trades (FV inRscrore) Trades (FV inRscrore) Trades (FV inRscrore) Trades (FV inRscrore) Trades (FV inRscrore)
Overnight 2Ï02 140797 2156 147997 25Õ5 267821 92367 7774271 97451 8312241
Term 477 22603 502 37832 424 20452 19298 1316412 19669 1418414
Total 2579 163401 2658 185829 2929 288273 111665 9090683 117120 9730655
Average
9 Settlem
Number Volume Number Volume Number Volume Number Volume Number Volume
of Deals (US$mn) of Deals (US$mn) of Deals (US$mn) of Deals (US$mn) of Deals (US$mn)
Cash 926 11174 820 9037 ~~ 882 9251 35364 411439 31030 398162
Tom 1594 18334 1126 12054 1538 13408 53734 523916 50654 512384
Spot 44122 50794 32114 34995 46900 43977 1765882 1842891 1621924 1714418
Forward
Total 47182 84155 34628 61647 49802 69549 2016386 3577230 1836874 3306596
Average
1 0 Tenor-w
Tenor 13 January 2012 6 January 2012 14 January 2011

Number Value Per Cent to Number Value Per Cent to Number Value Per Cent to
of Deals (US$mn) Total Value of Deals (US$mn) Total Value of Deals (US$mn) Total Value
<30 days 190 2083 54 140 2872 52 190 2083 54
>30days&< = 90days
> 90 days & < = 1 80 days
> 1 80 days & < =365 days 92 471 12 43 633 11 92 471 12

> 1 year
Total
* Data per
Source: Cl
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Economic and Political Weekly Vol. 47, No. 4, JANUARY 28, 2012

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Thirst for Foreign Capital editorials

Unregulated and Unaccountable from 50 years ago

Whose Land? Evictions in West Bengal commentary

Whose Land? Evictions in West Bengal

20 The draft National Pharmaceutical Pricing Po

Anti-Dowry Law Viewed f

Secularism: Its Content and Context Nanotechnology: 'Risk Governance' in India

doctrinal truth of0 an utmost OF

New Directions for Media Regulation Agr

Market Borrowings: Centre versus States Panch

Agrarian Transition and Emerging Challenges in Asian Agricultu

Khap Panchayats: A Socio-Historical Overview MONEY market review

Panchayat Finances and the Need for Devolutio

are reducing their dependence on devolutions from state governments. letters

jurisdictions that are predominantly ori-

happy with what they get; as Rangarajan

Economic & Political weekly ШШ January 28, 2012 vol xlvii no 4 5

Big Business Weds Big Media

II FROM 50 YEARS AGO General Elections lack the excitement the

Economic & Political weekly 1Ш January 28, 2012 vol xlvii no 4 9

foreign 2012, theinvestors

and (qfis) are to be permitted to invest directly

and characteristics were not knownconstraints

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Whose Land? Evictions landless went on even in the 1990s and

*8 January 28, 2012 vol XLVii no 4 I™ Economic & Political WEEKLY

Pharmaceutical Pricing Policy:

in prices. However, the prices of leading Anti-Bacterial Medicines

practices and oligopolistic positions. If there

companies have an upper hand in pushing 10 tabs)

the price range offered by various players Source:The mar

with similar quality is substantial. quoted on its w

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Ms. Martha Lobo [mfc@igidr.ac.in] Tel: 28416585 Fax: 28416399/28402752

A Mirror Image of Dowry

With no time for her books and Behind

for instance. Or they maybenches

January 28, 2012 vol XLVii no 4 ЦШ Economic & Political WEEKLY

Andhra University at Waltair was one of

Many professions, nity professions,

Nobel which I was associated over in

boards for national and international

journals including the Journal of Applied Economic&PoliticalwEEKLY

on Sri Lanka multiplying cases of incest (owing to absent

Economic & Political weekly В January 28, 2012 vol xlvii no 4 33

'Risk Governance' in India well-functioning governance structure is

34 JANUARY 28, 2012 VOL XLVII NO 4 П Economic & Political WEEKLY

China National Steering - Ministry of science and technology

Currently introduction of genetically modified Bt

Economic & Political weekly Ш January 28, 2012 vol xlvii no 4 37

Drug Administration (fda), and the Occu- Lack of Coordination

Ministry of Health Family Central Drug Standard Control

Currently the nanotechnology programmedealing with risks.

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40 January 28, 2012 vol XLVii no 4 ШШ Economic & Political WEEKLY

P К VISWANATHAN, GOPAL В THAPA, JAYANT К ROUTRAY, MOKBUL M AHMAD

This paper draws from the

P smallholder sector in Asia. Further, the rapid changes that have

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