Development and change

June 20, 2015 11:28 pm | Updated 11:32 pm IST

INDIAN ECONOMY IN TRANSITION — Essays in Honour of C.T. Kurien:Edited by S. Janakarajan, L. Venkatachalam, R. Maria Saleth; SagePublications India Pvt. Ltd., B1/1-1, Mohan Cooperative Industrial Area, Mathura Road, New Delhi-110044.Rs. 995.

INDIAN ECONOMY IN TRANSITION — Essays in Honour of C.T. Kurien:Edited by S. Janakarajan, L. Venkatachalam, R. Maria Saleth; SagePublications India Pvt. Ltd., B1/1-1, Mohan Cooperative Industrial Area, Mathura Road, New Delhi-110044.Rs. 995.

Dr. C.T. Kurien is sui generis among development economists. A legendary teacher who inspired generations of students in India, he was not enamoured of mathematical models or algorithms fashionable among theorists. From his early days in the academia, he waged battles against “mainstream” economics. In his book Wealth and Illfare: An Expedition Into Real Life Economics (2012), he was engaged in a trenchant critique of accepted models. For him, development economics is a narrative of evolving social and institutional arrangements. The purely economic dimension, as portrayed by later day “rational choice” and other theorists, did not satisfy him. He gives context to mainstream economics while highlighting its limitations.

This book is a collection of essays presented in honour of Dr. C.T. Kurien at a seminar in 2011. As the preface says, the papers “cover some of the key issues and challenges related to recent development experience such as the implications of globalization, impact of liberalisation on agriculture, food security, poverty and inequality, issues concerning social sectors, etc.” A close study suggests that some do not imbibe or carry the passionate commitment for the poor which Kurien showed. Some papers deal with subjects as isolated islands displaying the academic skills of the authors rather than commitment to welfare.

U. Sankar’s chapter opens with the theme of “globalization and Indian economy.” It captures, rather descriptively, aspects of globalization such as trade, services, finance and the new trading regime which has emerged. It explains the asymmetry in the negotiating process which brought about the WTO and how TRIPS raises contentious issues on availability of life saving drugs and the pricing for developing countries. Dr. Sankar leans heavily on several scholarly studies and brings out the adverse conditions faced by developing countries like India.  On the whole, he has been rather muted in his criticism of globalisation and its impact on emerging economies.

Venkatesh Athreya has been studying trends in agrarian areas for some years and his paper provides very interesting material on changes in Tamil Nadu during the period 1980-2005. It notes the trends in agricultural growth and how it has weakened since 2000. As he explains, stagnation in output and yield of important crops observed in Tamil Nadu is not an isolated instance, but is similar to the national picture. The noteworthy feature is that in Tamil Nadu, “the crisis of stagnation has not manifested itself in the form of farmers’ suicides on any significant scale nor have there been starvation deaths witnessed in some other regions of the country.” This is because of the presence of social welfare provisions such as old age pension, public distribution system, etc. At a broader level, he attributes the later day agricultural stagnation and crisis to the reduction in the proactive role of the state.

The chapter by Narayanamurthy engages in an elaborate analysis explaining how farming has become less profitable. Survey shows that farmers suffered losses both due to increased cost of cultivation and reduction in value of output. They lack access to institutional credit; and accessing money-lenders in the informal sector results in exorbitant rates. Chapter 6 is an attempt to measure labour market insecurity in rural India through the prism of gender analysis. It draws on a lot of statistical data.

While some interesting facets are gleaned, it is difficult to dovetail these results with development economics or transition. In fact, Barbara Harris-White and Aseem Prakash, deal with the issues of inclusion and exclusion with greater insight and analytical depth in Chapter 14. The ballooning of the informal sector for labour causes more damage.

Irudayarajan’s chapter on the emerging ageing scenario in India is rather grim, though real. However, it is difficult to dovetail the theme with development transition.

Chapter 9 studies the impact of increased urban demand for water on livelihood in peri-urban areas of Chennai. It is based on an older survey and provides meaningful results, especially how it changes the agrarian conditions in the areas supplying water. There are conflicts between the city and neighbourhood in legislation or rulemaking and these are brought out well. Though the issues are interesting, they are not the core issues of transition economies

The chapter by Murthy on “participatory institutions for environmental management” is another instance of a standalone pillar unrelated to development transition. Though elaborate and detailed, it deals with measures to control or eliminate pollution through regulation and taxes.

Sudipto Mundle provides a very detailed and incisive account of the Millennium Development Goals (MDGs) and where India stands. The last two papers by Barbara Harris-White and John Harris are possibly the most insightful and thought-provoking on India’s transition. Barbara brings out the persistence of poverty through exclusion of dalits, adivasis and Muslims and how the internecine caste groups and tensions prevent their uplift. The democratic process is vitiated by caste-groups and patronage politics and even legislative measures to enhance living standards fail to reach them due to poor delivery, lack of political will and corruption. Their contributions carry the same ethos and commitment for the poor which Dr. Kurien stood for in his works.

This volume is a mixed bag. Not all the articles are related or contribute to a better understanding of development transition in India.

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