Showing papers in "Economic and Political Weekly in 2012"

Caste in 21st Century India: Competing Narratives.

Abstract: Recent debates regarding inclusion of caste in 2011 Census have raised questions about whether caste still matters in modern India. Ethnographic studies of the mid-20th century identified a variety of dimensions along which caste differentiation occurs. At the same time, whether this differentiation translates into hierarchy remains a contentious issue as does the persistence of caste, given the economic changes of the past two decades. Using data from a nationally representative survey of 41,554 households conducted in 2005, this paper examines the relationship between social background and different dimensions of well-being. The results suggest continued persistence of caste disparities in education, income and social networks.

Twelfth Five Year Plan

Abstract: The Planning Commission of India posted the draft Document of the 12th Five year Plan on its website in the first week of December 2012 for feedback from the public before it is adopted by the National Development Council (NDC) on 28 December and declared the Five Year Plan for the country from 2012 to 2017. The stated vision of the Plan Document is “of India moving forward in a way that would ensure a broad-based improvement in living standards of all sections of the people through a growth process which is faster than in the past, more inclusive and also more environmentally sustainable”. This mantra of “faster, sustainable and more inclusive growth”’ is indeed ideal and laudable, but the question is how can we make it possible? More importantly, what could be the consequences if we fail?

The continuing food crisis global policy reforms lag.

Abstract: The world is now nearly five years into what has come to be known as the “food crisis”, sparked in 2007 by rapid spikes in international prices for basic commodities. Commodity prices doubled, the estimated number of hungry people topped one billion, and food riots erupted in more than 30 countries. A second price spike in 2010-11 drove home that this was not a one-off event, that the policies and principles guiding agricultural development and food security are deeply flawed. The glo bal food import bill for 2011 soared to an astonishing $1.3 trillion. There is now widespread agreement that international agricultural prices will remain signifi cantly higher than pre-crisis levels for at least the next decade.

Development Policies and Agricultural Markets

Abstract: Ramesh Chand (rc@ncap.res.in) is Director, National Centre for Agricultural Economics and Policy Research, New Delhi. Agricultural marketing in India suffers from inefficiency, a disconnect between the prices received by producers and the prices paid by consumers, fragmented marketing channels, poor infrastructure and policy distortions. Urgent reforms are needed to address these inadequacies and check the excesses of middlemen. While encouraging new models that improve the bargaining power of producers and scaling up successful experiments, producers’ companies and cooperative marketing societies could be promoted to provide alternative avenues for sale of produce. Meanwhile, price policy has to be reoriented to bring it in tune with the emerging demand and supply of various crops. Though the private sector is vital to improving efficiency, the public sector is equally essential to serve the larger social goal of maintaining price stability through market operations. In a narrow sense, the role of agricultural markets is delivering products from sources to consumers. But, in a broad sense, their role extends to transmitting macroeconomic signals to producer fi rms, providing incentives to producers to attain the desired growth in agri-food output, improving the welfare of producers and consumers, balancing demand and supply, and promoting the effi cient use of resources in the production and distribution systems. These roles require a competitive environment, strong physical and institutional infrastructure, and a favourable regulatory system. These conditions cannot come up on their own, particularly in a developing country like India. Therefore, agricultural market policies are treated as an integral part of development policies and their functioning has remained an important part of public policy in India. This paper discusses various policies related to agricultural markets since the early 1960s, a time when major steps were taken for their transformation. It analyses how these policies have performed and their relevance, given changing production and consumption patterns, and technological and commercial developments.

Variation in Private School Performance The Importance of Village Context

Abstract: Using Annual Status of Education Report 2009 data, this paper investigates the linkage between private school performance and the context within which these schools operate. The results from this study indicate that the “positive private effect” or the private-public performance gap does vary based on the village context. The private school advantage is reduced in villages with a strong government presence. This government presence in the data is reflected in the provision of various government services, the presence of physical infrastructure, and a robust governmentfunded and government-supported primary, middle and secondary education system. Public and private schools are not established and do not operate in a vacuum. Public schools may respond to private competition, or they may simply respond to greater government support. Private schools similarly also respond to the presence of robust government-funded services and infrastructure.

The age distribution of missing women in India

Abstract: regarded as key explanations We provide a decomposition of missing women by age across the states While we do not dispute the existence of severe gender bias at young ages, our computations yield some striking findings First, the vast majority of missing women in India are of adult age Second, there is significant variation in the distribution of missing women by age across different states Missing girls at birth are most pervasive in some north-western states, but excess female mortality at older ages is relatively low In contrast, some north-eastern states have the highest excess female mortality in adulthood but the lowest number of missing women at birth The state-wise variation in the distribution of missing women across the age groups makes it very difficult to draw simple conclusions to explain the missing women phenomenon in India

Rejuvenating India's Small Towns

Abstract: Visits to seven small towns in north India reveal how paucity of funds, slipshod planning and a dearth of capabilities have contributed to poor civic services and inadequate infrastructure. Citizens in some areas have organised themselves into neighbourhood committees to tackle problems that the urban bodies neglect, but this has its limitations and cannot substitute for efficient local government. The keys to tap the rich potential in these small towns are purposeful research, participative planning, responsive governance and healthy finances.

Inefficiency and Abuse of Compulsory Land Acquisition An Enquiry into the Way Forward

Abstract: This paper focuses on two issues: the problems with the compulsory acquisition of land, and the regulatory and institutional impediments that obstruct voluntary land transactions. We argue that any compulsory acquisition based process is intrinsically inefficient and unfair, even if it is accompanied by presumably benevolent schemes such as land-for-land and the R&R packages. Moreover, it is inherently prone to litigation. We demonstrate how what we call the ‘regulatory hold-up’ precludes a large number of potential transactions in agriculture land, and puts a downward pressure on land prices. The paper offers suggestions for reforming the legal and regulatory framework governing the land and its use. Finally, we discuss the Land Acquisition and Rehabilitation & Resettlement (LARR) Bill 2011. We show that the bill leaves open several backdoors for the states to favour companies. Moreover, it fails to address the fundamental causes behind rampant disputes and litigation over compensation. AKNOWLEDGEMENT: I am thankful to TK Arun, Abhijit Banerji, Keshav Choudhary, Leonardo Felli, Maitreesh Ghatak, Parikshit Ghosh, Neha Jain, Rajinder Kumar Punia, and Uday B Sinha for very helpful comments and suggestions. On some of the issues covered here, I have benefitted greatly from my past discussions with Kaushik Basu, Amit Bhaduri, Nira Goyal, Satish Jain, Harsh Mander, Partha Mukhopadhyay, Debraj Ray and Paranjoy Guha Thakurta. I am thankful to Dimple Kukreja and Aditi Singhal for providing excellent research inputs. Research support provided by the Center for Policy Research is gratefully acknowledged. I am thankful to the Center for Development Economics at the Delhi School of Economics, and the London School of Economics for the institutional supports. I am solely responsible for any errors in the arguments presented here. *Associate Professor at the Delhi School of Economics, and Commonwealth Fellow at the London School of Economics. Email: ramsingh@econdse.org

Reforming or Replacing the Public Distribution System With Cash Transfer

Abstract: The targeted public distribution system, intended to provide subsidised food to poor households, is the largest welfare programme in India, with a budget corresponding to about 1% of the net national product. Several studies have found the system to be inefficient and costly in assisting the poor. This paper analyses the case for, and against, replacing a reformed version of this system with a targeted and differentiated cash transfer scheme. Such a scheme could cover about two-thirds of households, and make far larger transfers to the poorest compared to the actual subsidy embedded in the current system, eliminating the risk of large exclusion errors. Further, the overall budget can be held at the present outlay level. It is argued that most of the objections to such a transfer scheme can be circumvented at the design stage.

Delhi's waste conflict

Abstract: There has been an increased role for the private sector in the various stages of waste management in cities. Delhi has been at the forefront of this shift and this has brought out confl icts over collection and disposal. This article argues that the informal sector should be meaningfully incorporated into an effi cient and equitable waste management system that is also environmentally sustainable. There has been a policy shift in 21st century metropolises regarding solid waste management that involves the privatisation of certain aspects of the system, such as the incineration of waste, but more importantly, it represents a comprehensive and holistic transformation in which the entire system becomes integrated. Delhi has been at the forefront of this shift. While the increased role of the private sector in the various stages of waste management is indeed signifi cant, we argue that this systemic transformation and comprehensive integration of solid waste management needs more attention. Authorities in Delhi proclaim that waste management is in a state of crisis – waste is commonly dumped in the open illegally and the three existing landfi lls are over capacity. For example, Delhi’s chief minister, Sheila Dikshit, claimed, “The Municipal Corporation of Delhi (MCD) was ineffi cient and corrupt as was proved by the accumulation of garbage across the city” (The Hindu, 2012). This narrative portrays the crisis as a failure of management rather than a public health and urban planning issue. As a result, waste management has become a technical problem to be solved by experts. It is in this context the solution that has gained favour is the integration of the stages of waste processing into a single system. As we will demonstrate, this integrated system includes the collection and transfer of waste generated by households and fi rms, and fi nally its ultimate processing (e g, incineration).

Narratives and Myths in the WTO Doha Round

Abstract: The World Trade Organisation's Doha round of negotiations has been at an impasse since December 2008. Several academics and opinion-makers have recently argued that the Doha round is "dead". This article discusses the US narrative on the reasons for the impasse and the way forward. It contrasts this narrative with that of the major developing country alliances in the wto and considers some underlying causes for the current impasse. The us narrative that the Doha round is dead is not supported by the majority of the WTO's members and whilst a settlement is not likely in the near future, there is no viable alternative to concluding the Doha round on its current development mandate.

Evaluation of NREGA Wells in Jharkhand

Abstract: A common criticism of the National Rural Employment Guarantee programme is that it does not lead to the creation of permanent assets and a sustained increase in incomes. This fi eld study of the construction of wells in one block in Ranchi district of Jharkhand shows that asset creation under this programme can result in the creation of income-generating assets. K rishna Bhagat of Purio Gram Panchayat in Ratu block (Ranchi district) has approximately four acres of agricultural land. Before 2010, he grew only one crop on that plot, p addy. However, in February 2010, he got a well sanctioned for himself under the National Rural Employment Guarantee Act (NREGA), using what he described as his “connections”. He did not have to pay a bribe to get the well sanctioned, but to get it constructed, he did have to shell out Rs 25,000 from his own pocket, to meet material costs. In July 2010, construction of his well was completed, and he used the water from the well to grow l ady’s fi nger and wheat in the winter. When we met him, his summer crops of tomato, beans, and bottle gourd were a lmost ripe. Apart from Krishna’s land, the well water irrigates an additional four acres of land belonging to others. A piece of land which used to give about Rs 20,000 a year in profi ts, now gives almost twice that amount. In the same gram panchayat, Biglah Oraon was also allotted an NREGA well in 2009. The sanctioned cost of the well was Rs 2,26,800, but Biglah had to spend an additional Rs 70,000, because money sanctioned for material expenditure was inadequate, and because he had to pay bribes at various stages. Biglah had to borrow money from his brother as well and use the entire proceeds from selling that year’s paddy crop to get the well completed. On several occasions he had to pay workers from his own pocket too, as wage payments from the block administration were delayed. D espite these losses and other problems, Biglah does not regret his decision of constructing a well; in the acre of land in which he earlier grew paddy, he now sows potato, peas, wheat, sugar cane and tobacco. A common criticism of the NREGA is the poor quality of assets created under the programme. Gupta (2011), for instance, argues that instead of creating productive assets, NREGA is a “make-work” scheme. According to a World Bank (2011) report, many public works are said to be “washed away the next monsoon”. The report attributes the inferior quality of public works to the inadequate attention given to the objective of asset creation in the NREGA. However, there is not much evidence available on the productive aspects of NREGA works.1 This article presents the fi ndings of an informal evaluation of NREGA wells in Ranchi district (Jharkhand), as a modest contribution towards more informed debate on this subject. To assess the economic impacts of the wells, we compare the construction costs with the productivity gains. This involves comparing the cultivation costs and value of crops grown in the “command area” of the wells before and after construction.2 Information on the process of constructing the wells, their diverse uses, and the perceptions of the respondents was also collected. We focus on completed wells. It is important to note that a signifi cant proportion of NREGA wells in Jharkhand remain incomplete, for reasons ranging from delays in wage payments to inadequate planning and limited capacity of local institutions. Incomplete wells are not only useless and a waste of resources and labour, but also discourage people from taking up water conservation works under the Act (Mahapatra et al 2011).

India and China

Abstract: Analysing the competitive and complementary position of India and China in the world economy and evaluating bilateral trade in commodities between them, this paper shows different paths of specialisation and an intensification of bilateral trade. Indian comparative advantages are still concentrated in the traditional sector and in some manufacturing sectors, while China has specialised in mass exports of cheap goods, becoming competitive in exports of electronic goods. India and China complement each other in many areas, as revealed by a growing inter-industry trade, and there is ample room for them to further increase bilateral trade and exchange valuable experience and learning with each other.

Kick-starting a Second Green Revolution in Bengal

Abstract: Two decisions taken by the Government of West Bengal, one, to facilitate easier extraction of groundwater, and the other, the application of a fi xed connection fee for an electricity connection to farmers could well lead to a quantum leap in agricultural production.

Land acquisition and dispossession: Private coal companies in Jharkhand

Abstract: This paper presents an investigation into strategies employed by the privately-owned companies to gain access to land for resource extraction in the state of Jharkhand where much of the land being put under the shovel is inalienable adivasi or tribal land and deedless commons. It concludes that although policy reforms are welcome, cosmetic changes in mineral governance laws is inadequate to protect the interests of the poor. The paper suggests an alternative vision, a complete overhaul of mineral ownership to allow the poor to share the revenue benefits. Once some co-management principles are introduced, the poor can fully participate in and benefit from mineral extraction rather than remaining mere spectators or becoming victims of mining projects.

The Ethanol Blending Policy in India

Abstract: This analysis of the Government of India’s National Policy on Biofuels argues that while the policy of ethanol blending in petrol is in the right direction, it is fraught with several problems which are rendering the approach ineffective. The most critical ones are the lack of sugar cane for producing ethanol and the policy on pricing of it. A s countries grow, the demand for energy increases manifold. Biofuels have emerged as a substitute for fuel oil, especially for oil-importing countries and serve a multitude of purposes. The most important advantage of these fuels is that they are renewable in nature, and are being seen as sustainable sources of energy. In 2008, the Government of India announced its National Policy on Biofuels mandating a phase-wise implementation of the programme of ethanol blending in petrol in various states. The blending of bioethanol at 5% with petrol was to be taken up by the oil marketing companies (OMCs) in 20 states and four union territories. However, the implementation of this policy has not had much success. This was mainly due to the shortage of ethanol. This article argues that while the government policy of mandating the blending is in the right direction, it is fraught with several problems which are rendering the policy ineffective. The most critical is the lack of surplus sugar cane from different uses, ambiguity in policy towards ethanol blending and the pricing policy towards it. Policy towards Ethanol Blending The Indian approach to biofuels is based on non-food feedstock to deliberately avoid a possible conflict between food and fuel. The National Biofuel Coordination Committee (NBCC), headed by the prime minister

Pharma Policy 2012 and Its Discontents

Abstract: The National Pharmaceuticals Pricing Policy 2012 has a new method for determining the price ceiling, called a market-based pricing mechanism. This is problematic, to say the least. It can create the illusion of regulating prices without actually doing so, and will have no impact on other members of the same therapeutic class outside the National List of Essential Medicines or on existing fixed dose combinations, rational and irrational. It will reduce the prices of certain top brands, but not close potential escape routes for good. It will also leave a lot of useful life-saving drugs used in tertiary care outside the price control basket.

The Emerging Environmental Burden from Pharmaceuticals

Abstract: Nobody ever anticipated prescription drugs to pollute the world, except perhaps at the point of manufacture. Pesticides were the only recognised environmental pollutants employed in healthcare. The menace of pollution from the use of dichlorodiphenyltrichloroethane insecticide (DDT) began to be appreciated only in the late 1960s and eventually culminated in its ban in the United States (US), as late as in 1972. Until recently, prescription drugs were thought to be environmentally benign, owing to the relatively small manufacturing volumes and the extensive safety guarantees associated with the licensing. In the early 1990s, the Indian subcontinent witnessed a dramatic reduction (approximately 95%) in the population of its vultures. Ten years later the culprit was identifi ed as diclofenac (an antiinfl ammatory drug). Vultures feeding on dead cattle, dosed with veterinary formulations of diclofenac, died en masse on account of kidney failure (Oaks et al 2004). This is the fi rst recorded event that linked prescription drugs with the extinction of a species. This being a r ecent phenomenon, the possibility of drugs polluting the world remains largely unknown, even among the educated.

Migration, transnational flows and development in India: A regional perspective

Abstract: The relationship between migration and development is a key area in research and policymaking. The contributions of international migrants to their home countries in the form of remittances,investments, and philanthropic donations are widely regarded as an important development resource. This paper reviews the migration and development debate and the current state of knowledge about flows of migrant resources to India and argues that tracing transnational connections and flows at the regional level will provide a more nuanced understanding of their social and economic implications.