ISPE Slides

Indian Social and Political
Environment
Lecture 1
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Academic journey so far…
• Education
▪ MA (Sociology), JNU, New Delhi
▪ PhD (Development Studies), University of London, UK
• Academic Appointments
▪ Department of Development Studies, School of Oriental and African Studies (SOAS,
University of London); June 2006 - July 2011
▪ Hans Ruthenberg Institute, University of Hohenheim, Germany; Aug. 2011- Oct. 2017
▪ Centre for Development Policy and Management, IIM Udaipur; Nov. 2017 –
• Visiting Positions
▪ Department of International Development, London School of Economics (LSE); 2009-10
▪ Institute of Ismaili Studies, London; 2009-11
Research: Past and Present
Natural Resources Management Agricultural Transformation

Rajasthan, Philippines, Ethiopia Ethiopia, Ghana, Nigeria
Development Policy
& Management
State, NGOs and Civil Society Food Security

Rajasthan, Bihar Bihar, Tamil Nadu
About the students…
• How many of you come from non-engineering and non-sciences

background?
• How many of you have completed your class 10th or class 12th from a
government school?
• How many of you have stayed in a village for more than a week in the past
five years?
• How many of you read newspaper at least three times in a week and/or a
news magazine on a regular basis?
• How many of you have read a non-fiction book in the last two years on a
subject other than technology, business and management?
Disclaimer
• Unlike natural sciences, social sciences are not ‘value-free’. Meaning, there is
no one ‘right’ way of analyzing the social world
• Most of the topics in this course would invite differing opinions and points of
view. There are no right or wrong, good or bad etc.
• It is fair to express your opinions but do it in a dignified manner during the
classroom discussions
• It is perfectly acceptable to have multiple viewpoints
• Casting aspersions on others is unacceptable in the classroom discussions
• The beauty of social science knowledge is that there are multiple narratives. It
is for the students to absorb and reflect, and form their own narrative
• Doing the readings and listening to others would help you to make informed
opinions!
Why is it important for management students to
understand social and political environment?
Businesses do not function in vacuum!
Society
Polity
Economy
Businesses
Illustration by S. Gupta
Society, Polity and Business Ecosystem
• Business is all about acquiring and deploying diverse resources for producing
goods and services and then reaching them to consumers to meet their needs
while earning economic surpluses
• It is clearly important to understand who the consumers are, how they behave,
what the regulations are, how are they framed and how are they implemented
• Business people, managers, workers, vendors and consumers are governed
by certain regulations and norms, and are embedded in larger social and
political processes
• A good understanding of society and politics is thus crucial for future
managers, business leaders and entrepreneurs
Society
• A large and populous country like India has a complex society
• Subsets of society are seen to be grouped for the sake of convenience on the basis of caste,
religion, occupation, habitation, language and so on…
• There is often a tussle between different groups for regulatory environment and conditions of
resource access
• Individuals trace their life trajectory within one or between a few groups
• Not all individuals in any group whatever are equal
• Among themselves too they may have different access to resources, different abilities, different
positions of power and different "status"
• Three dimensions can be said to capture the way a society behaves.
▪ Resources: what are the resources, who controls which resources and for what end uses.
▪ Power: what power do individuals have vis a vis each other, what is the source of this power and how
is it perpetuated
▪ Institutions: what are the basic norms and rules that govern relationship between individuals, and
between individuals and resources.
Economy
• Domain of human life which pertains to acquisition of resources, their

deployment and utilization for the purpose of meeting human needs
• Simply, careful management of available resources
• Property rights regime defines which resources belong to individual, which
resources are common and which are public (state)
• Individual economic actors use the resources which they possess or which
they can command to produce goods and services to meet their own or others
needs
• When they produce for own use and consumption, the said activity is called a
subsistence activity
• Else it is a market activity involving exchange
• For carrying out any productive activity and its exchange individuals have to
use resources and facilities which are public in nature
Economy
• Economic decisions of governments are all about defining these property rights
about:
▪ pricing of resources;
▪ creating public facilities and infrastructure for use by individuals for a price or otherwise;
▪ regulating exchanges between economic actors
• For performance of all these functions and;
▪ for discharging the roles of protecting the people from external aggression;
▪ for maintenance of peaceful social order in the country, the state needs to impose taxes
and other means of collecting revenue
• Who should be taxed and to what extent, what should be taxed etc. are all
decisions that affect the amount of resources and surpluses available to
different categories of people
• Hence, people have a stake in both economy and economic decisions of
government
Polity
• A nationwide virtual platform in which diverse individuals and social groups use
their resources and powers to influence decisions of the government
• Decision may be about defining the norms of behaviour of individuals and
regulating social exchanges between individuals and groups or between different
groups
• There are always trade-offs in this way of decision-making (democratic or
otherwise); conflicting stakes
• Polity is the platform in which conflicting stakes are resolved and the polity is
termed stable if such resolution processes are well defined, predictable and
peaceful
• How these decisions are taken and how matters get resolved shapes subsequent
behaviour of individuals and groups and in turn, affects our business, economic,
social and individual activities
Social and Political Environment for Business
Illustration by S. Phansalkar
How much do we know of India’s social and political
environment?
• Who was the first Law Minster of India (1947-51) and what was his/her most important
contribution?
• Which political leader is popularly known as ‘Sher-e-Kashmir’ and against whom did he launch
the Quit-Kashmir Movement?
• What is Hindu Code Bill?
• Meitei and Dogri, two of the 22 national languages of India are spoken in which provinces?
• What is McMahon Line?
• What is Tashkent Agreement? When was it signed and between whom?
• What are the contributions of V. Kurien and M.S. Swaminathan?
• Which politician gave the slogan of Garibi Hatao?
• ‘The two brothers Jaiprakash Narayan and Raj Narain were instrumental in forming the first
non-Congress Party Government at the center’. Is this statement true or false?
• What is T. N. Seshan’s main contribution?
Characteristic Features of Indian Society
Characteristic Features of Indian Polity
Characteristic Features of Indian Economy
What is development? How is it related to
economic growth?
Integrating Growth and Development
(Dreze and Sen, 2013)
• During 2011-12, India remained second fastest in terms of economic growth among all the large
economies of the world
• Economic growth is important, not for itself, but for what it allows a country to do with the
resources that are generated
• Impact of economic growth on the lives of people is partly a matter of income redistribution but it
also depends on the use that is made of the public revenue generated by economic expansion
• Low expenditure on health care poor health outcomes (India vs China)
• India has moved towards reliance on private health care without developing a solid base of basic
public health facilities; Europe, Japan, Brazil, China, South Korea did the opposite
• When India began a sustained programme of economic reforms in the early 1990s, it faced two
big failures:
▪ Failure to tap the constructive role of the market
▪ Failure to harness the constructive role of the state for growth and development
• The radical changes in the 1990s did little to remedy the second of these failures
How has India performed in GDP growth in
comparison to its contemporaries?
How has Indian performed in human development?
What is growing and what not
What are India’s major achievements and pitfalls
since independence?
Independent judiciary and military absence Substantial population in extreme poverty;

in civilian matters inequality
Territorial integrity and no major secession Persistence of forms of insurgency in some

parts of the country throughout history
Tertiary education; space/atomic research School education
Food self-sufficiency and surplus foreign Child undernourishment and affordable

reserve access to medical care
Democracy, human rights and freedom Pollution and environmental degradation
Growth in service sector Manufacturing; ‘jobless growth’

Course Structure: Topics
Lecture Date Topic Instructors
Number
1 10 Jan Introduction and Overview of India’s Development SG/AK
since Independence
2 11 Jan Overview of Social Transitions in India SG/AK
3 14 Jan Overview of Indian Polity SG/AK
4 15 Jan Overview of Indian Political Economy SG/AK
5 24 Jan Peasantry and Agrarian Transition in India SG/AK
6 25 Jan Food (In-)Security and Child Undernourishment SG/AK
7 28 Jan Education, Employment and Informalisation of SG/JP

Labour
8 29 Jan Gender and Development SG/JP
9 5 Feb Tribal India SG/JP
10 6 Feb Rural Local Bodies, Safety Nets and Welfare SG/JP
Schemes
11 7 Feb Briefing for Rural Immersion Assignments
12 8 Feb Briefing for Rural Immersion with NGOs
13 27 Feb Rural Immersion Experience Sharing SG/JP
14 28 Feb Environment and Development SG/JP
15 1 Mar Non-governmental Development Organisations and SG/JP
Civil Society
16 4 Mar Minorities and Social Exclusion SG/AK
17 5 Mar Faultline: Jammu & Kashmir and North-East SG/AK
18 6 Mar India Today: Contradictions and Possibilities SG/AK
Course Structure: Readings
• Readings: Core (study pack) and Supplementary (soft copies)

▪ Core readings + lectures (should pass the end-term exam)
▪ Core readings + lectures + supplementary readings (high grade in end-term exam)
▪ Core readings + lectures + supplementary readings + one of the background readings +
thinking and reflecting on the topics (good manager/business leader)
Evaluation
• Documentary viewing on 15th Jan, 2:30 pm (Auditorium)

• Rural Immersion assignments
• End-term Exam:
▪ 2 hours duration
▪ Answer any six out of eight questions
▪ Essay type answers; develop the habit of writing using hand
▪ Tip: News paper editorials
• Sample exam question:
Why is it important for business managers to understand social and political
environment? What are India’s major achievements as well as pitfalls since
independence, and why?
• Make sure you answer each part; do not use bullet points; and give
examples wherever necessary!
Environment
Lecture 2
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Lecture Outline
• Unity in Diversity?
• Major Social Transitions in India
• Social Stratification in India
• Challenges of Social Policy in India
• Caste and Untouchability/Affirmative Action
• Dalit Entrepreneurs/India’s New Capitalists
Unity in Diversity
Is diversity an asset or a liability

for development?
Major Social Transitions in India since
Independence
Major Social Transitions since Independence
• Feudalism to adult franchise

▪ Largely rural society; still is
▪ Dominance of ascribed and frozen social status
▪ Often hereditary occupations
▪ Largely patriarchal
▪ Hindus dominant majority as they do even now (ritual purity based hierarchy)
▪ Much land was owned by one individual (Zamindar) who also had revenue collection rights
▪ Power of the feudal overlord extended in other matters of life as well
▪ Given that the feudal overlord was by far the richest and "grandest" person, he was
expected to provide social leadership and offer patronage to the deserving
▪ Independence brought ‘one person one vote’: induced equality
• Land Reforms and Democracy

▪ Soon after Independence, Zamindari was formally abolished
▪ Land reforms were proposed and implemented in quite a few areas
▪ Imposition of ceiling and giving property rights to former tenants
▪ Substantial effects of land reforms differed from region to region
▪ Democracy with universal adult franchise, at that time perhaps the most
modern system across the world
▪ Women did not have voting rights in Great Britain till 1926, close to 300
years after the arrival of democracy there; And USA…
▪ These two basic changes have made far reaching consequences on
the society and the polity of the country
• Caste, Class and Power

▪ In the first election after Independence (1952), the candidates were mainly from higher
caste groups
▪ Political Power, Economic Power and Social Power intertwined
▪ Middle castes (occupational groups), outcastes (former ‘untouchables’), and adivasis
(tribal communities), comprising the majority of Indian population continued to be
dominated by the new elites
▪ Situation began to change for the middle castes in large parts of the country due to adult
franchise (numerical dominance) and land reforms (economic dominance), leading to
political dominance
▪ E.g. Jats, Gujjars, Yadavs in the North; Patels and Marathas in the West; and Vokkaligas in
the South
▪ The phenomenon essentially means that the old dominance of the castes deemed to be
high in ritual purity is overthrown and the power shifts to the new dominant caste some
where in the middle of the vertical caste hierarchy
▪ Unfortunately, not much changed for the Dalits and Adivasis for long
• Sanskritization and Westernization (emulative change)
• Rise of Sub-cultural Identities

▪ Sub-cultural identity refers to a smaller group within the society carving out a unique
identity for itself
▪ Insists that such identity sets them apart from the rest of the society
▪ Absolute opposite of emulation where a community tries to become similar to some one
else
▪ Rise of sub-cultural identity has become common across the country and has multiple
causes
▪ Chief cause among them is the claim of the concerned community that it suffers from
perceived or real injustice
▪ E.g. Militancy in J&K and NE; Jat, Patel, Gujjar, Maratha agitation for quotas;
Naxalism in Central and Eastern India
• Urbanization and Demographic Shift
▪ Urbanization has been happening at rapid pace in India

▪ Nearly 50% of the population in some states has become urban while
the overall rate of urbanization stagnates at 28% even now
▪ Loosening of the caste based rigidities and greater mixing of people of
different castes
▪ From joint to nuclear family
▪ Urbanization process is characterized in India by very poor urban habitat
▪ Economic growth not in tandem with job creation
▪ Vast reserve army of labour- crisis of rising expectations
• Linguistic Identity (Session 3)
• Change in Gender Relations (Session 8)
• Upsurge of Hindu Identity (Session 13)
• Media Reach and Digital Revolution (Session 15)

How is Indian social stratification different from
other societies?
• Stratification: System by which a society ranks categories of people in a

hierarchy
• Indian or South Asian system quite complex:
▪ Caste
▪ Class
▪ Gender
▪ Linguistic
▪ Ethnic and so on…
• Traditional deprivation and everyday discrimination/humiliation
• Dignity of Labour?
• Poverty visible everywhere but more or less insensitive middle-class
Advanced versus Developing Economies/Societies
RICH
UPPER MIDDLE
M
I
D
D
L
M E
I
D
D P
L O
E O
R
EXTREMELY POOR
POOR
How is India doing in tackling major social challenges
that determine quality of life?
Overview of Social Policy in India
• Reach of social policy significantly expanded in recent years

• Facilities such as schools and anganwadis (child care centres) in almost every
village
• Primary health centres are closer to peoples’ homes and better equipped
• Nutrition programmes, public works and social security pensions are reaching
vastly larger numbers of people than they used to
• But…
• The performance of these social programmes are far from ideal
• Most Indian states have a long way to go in putting in place effective social
policies
• More discussion in session 6 (Food Insecurity), 7 (Education,
Employment and Labour) and 10 (Welfare Schemes and Safety Nets)
Health
• Health most important for the quality of life but little discussion of health issues
in mainstream media and democratic politics
• Public health most neglected in our country
• ‘Greatest failure of the Indian state is none other than the condition of primary
health centres’ (Bose, 2007)
• “no doctors, nurses, medical equipments and people walking for miles to get
substandard treatment” (ibid)
• Absenteeism rate of 45 percent among medical personnel in health subcenters
(Banerjee et al. 2004)
• Things getting better but very slowly!
Infant Mortality and Life Expectancy
Public Health Expenditure
Education
• School participation in India has risen rapidly in the last 20 years

• This is an important achievement
• But…
• Quality of schooling is alarming
• Quality is particularly poor in schools attended by underprivileged children
• Millions of students who have the ability to become doctors, teachers or
scientists are more likely to end up making bricks, washing utensils or pulling a
rickshaw for want of a decent education
• Mushrooming of private for-profit schools in recent times
Expenditure on Education (% of GDP): BRICS
Expenditure on Education: Comparision
Extent of Hunger
Extreme Poverty
Income
Does caste still matter in India?
Caste in India Today
• Addressing this question involves engaging with a series of questions:

▪ How to define caste?
▪ What is the role of caste in politics?
▪ How has positive discrimination changed Indian society?
• Caste has moved to some extent from being a hierarchical system to a
horizontal assortment of competing interest groups (Corbridge et al 2014)
• Common features of caste in the 1950s and 60s:
▪ Jatis tended to specialize occupationally
▪ Rule about sharing of food, bodily contact and other interpersonal relations
▪ Caste shaped marriage practices
▪ Motions of caste hierarchy achieved a degree of acceptance in in rural areas
▪ Higher castes were often able to translate their local economic and political power into
a wider dominance over state bureaucracies, government and elections
Decline of Caste Hierarchies
• Caste became much less important in India from the 1960s onward
(Gupta, 2005)
• Growing urbanization and commercialization allowed people from many
caste backgrounds to find off-farm work, thus occupational mobility
• Reservation played a prominent role in delinking caste from occupation
• Proliferation of welfare programmes catering for disadvantaged groups
contributed to a decline in low castes’ dependence on higher castes
• Across India, education has been crucial in challenging hierarchical
ideas of caste
• Everyday practice of caste has also changed substantially in many parts
(untouchability, rules of eating, drinking etc.)
Caste, Identity and Politics
• Caste declining as a hierarchical system but reinventing as an identity in modern competitive

politics (Kothari, 1970)
• Caste majorly influences voting behavior in many states
• Caste has been given a fresh salience with parties associated with the cultures of specific groups.
E.g. SP and RJD or BSP
Yet…
• Dalits remain well behind upper castes and OBCs in terms of their access to education (Shah et
al, 2006)
• In most parts of India, higher castes obtain admissions in better schools and institutions and
acquire relatively better marketable qualifications
• Dominant castes dominate access to secure salaried work in rural western UP (Jeffrey et al, 2008)
• This is more surprising because since western UP has been area of in new low castes have
achieved new forms of political representation through rise of BSP
• Similar picture emerges in small towns and big cities…
Caste as a barrier
• Evidence of discrimination in hiring, wages, working conditions and patterns of upward mobility
(Thorat and Newman, 2010)
▪ Sent mock applications for private sector service jobs using identical CVs but two sets of
names, one high caste and one Dalit or Muslim
▪ Experiment showed that Dalit and Msulim applicants face significant discrimination in the
white collar job market
▪ The odds of a Dalit applicant receiving a follow up call were 67 percent of a high caste
Hindu applicant with the same CV
• Fuller and Narsimhan (2007) show in their research on the IT sector in Chennai that the great
majority of people in skilled jobs are from urban upper-middle calls, Brahmin backgrounds
• Situation very similar in the IT sector in Bangalore (Upadhya 2008)
• However, in small and medium-sized enterprises, people’s assessment of whom to trust is NOT
based primarily on caste or class backgrounds.
• The point remains that caste continues to shape people’s access to secure and well-
paid employment (Corbridge et al, 2014)
Caste, Marriage and Untouchability
• Shift to Western-style marriages in India wherein young people would arrange marriages
themselves, based on their own preferences and independent of caste (Clark-Deces, 2011)
• Rise of inter cate love marriages in urban India (Donner, 2002)
• Trend in semi-urban and rural is:
▪ Senior family member arranges the marriage
▪ Marriages are usually within caste
▪ Socio-economic conditions are primary in the choice of partner
▪ Dowry is used as a bargaining tool in families’ efforts to secure a groom with steady income
• Role of Jati Panchayats still significant in western UP and Haryana (‘honor killings’)
• Shat et al. (2006) conducted a survey across 11 states and found that in over half the
villages they studies, Dalits were still denied entry into non-Dalit houses and prohibited
from sharing food with higher casted
• In over a quarter of the villages, Dalits were forced to stand before upper castes men
• There is no longer anything like a caste system in India today. It is replaced by a
situation more complex and fluid
Affirmative Action
• Positive caste based discrimination can be traced to the 1930s, when the British created lists of
formerly Untouchable castes and tribes deemed eligible for special state assistance: ‘Scheduled
Castes’ and ‘Scheduled Tribes’
• The 1950 Indian Constitution offered SCs and STs legal equality and reserved places in public-
sector employment and educational institutions
• Shortly after Independence, Nehru established Backward Classes Commission to investigate the
conditions of castes formerly above SCs but suffering from social and economic disadvantages
• This Commission reported in 195 with a list of 2,399 Backward Caste jatis and suggested
measures to improve their conditions
• Nehru believed it politically impossible to implement this recommendation; put to back burner
• Issue emerged again in 1977 when Janata Party government pledged to establish a new
investigative body
• Mandal Commission reported in 1980 recommending the extension of reservation to OBCs
• The Mandal Report set aside for the next 10 years but V. P Singh implemented in August 1990
• Fierce higher caste backlash, especially among students
Dalit Entrepreneurs and India’s New Capitalists
• Traditionally, industry and businesses small and medium have remained the
exclusive monopoly of certain close knit groups
• Business families continued to run the show but for almost three decades after
independence primarily because of state patronage and license-permit raj
• New business houses and new capitalists flourished from the 1980s onwards
in both manufacturing (e.g. Ambanis) and services (e.g. Narayan Murthy or
Shiv Nadar)
• More recently, two important changes: rise of Dalit entrepreneurs and Indian
unicorns/digital enterprises
▪ Dalit entrepreneurs are not demanding job reservations but trying to create jobs
▪ Unicorns established by young Indians not coming from business families but mainly
alumni of IITs and IIMs (e.g. Bansals, Pranay Chulet, Deep Kalra).
Environment
Lecture 3
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Lecture Outline
• Characteristic features of Indian polity

• Major political happenings in India since Independence
• Democracy: How successful is India’s democracy?
• Politics of Language and Identity
Indian Polity: Governance Structure
• The word polity encapsulates a vast multitude of organizations many of which

form the fundamental apparatuses of contemporary states
• We started acquiring our own unique polity from the time of adoption of the
Constitution
• Some of the key features of the Constitution cover :
• Supremacy of the Constitution and Rule of Law;
• Subordination of the military to this constitutional rule of law;
• System of Parliamentary (multi-party) democracy;
• Federalism and democratic decentralization up to the level of local self-government;
• Universal adult franchise;
• Fundamental rights of every citizen;
• Division of powers in the three organs (Judiciary, Legislature and Executive);
• Directive Principles of the state policy and the concept of the Welfare State
Indian Polity: Fundamental Rights
• As citizens of India, we have certain Fundamental Rights. These are listed between in Articles
14 through 32 of the Part III of the Constitution
• These include:
▪ the right to life;
▪ right to equality before Law;
▪ abolition of untouchability;
▪ non-discrimination on grounds of caste, creed or gender in matters of trade and commerce,
▪ freedom of movement and freedom of profession,
▪ right of equality in matters of public employment,
▪ freedom of expression,
▪ freedom of practicing religion and freedom to minorities to run their own educational
institutions
▪ “Reasonable Restrictions” on these rights may be imposed for short periods

of time by the State following proper procedures and for public purposes
Indian Polity: Directive Principles of State Policy
• Another important part of the Constitution, action or inaction under which frequently leads to
public outcry and debates, relates to the Directive Principles of the State Policy contained in
Part IV of the Constitution
• These Principles are stated in Articles 44 through 50
• Some of the noteworthy Directive Principles relate to:
• bringing about Uniform Civil Code (Article 44)
• positive discrimination in favour of Scheduled Castes, Scheduled Tribes and other weaker
sections, to bring about social justice (Article 46)
• prohibition on consumption of intoxicating substances (Article 47)
• protection of cows, calves, milch draught animals (Article 48)
• conservation of forest and wild life (Article 49)
• Some of these are vigorously implemented while others tend to create a lot
of heat and dust.
Article 48: Contrasting Positions
• What specific issue would charge the youth to sacrifice their all for the honor
and glory of the motherland?
• “Such a point of honor in our national life is none else but MOTHER COW, the
living symbol of the Mother Earth- that deserves to be the sole object of
devotion and worship. To stop forthwith any onslaught on this particular point of
our national honor, and to foster the spirit of devotion to the motherland, [a] ban
on cow-slaughter should find topmost priority in our programme of national
renaissance in Swaraj.” -M. S. Golvalkar, 1952 (cited in Guha, 2007:633)
Article 48: Contrasting Positions
“If the orthodox had their way, they would start amending the Constitution […]
and certain new fundamental rights will be added. The first of them will be that all
Hindu women will have the wonderful and glorious right of burning themselves
on the funeral pyres of their husbands. The second fundamental right would be
that the cow will be declared a divine being….and all Indians, including Muslims,
Christians and so on will be compelled to worship the cow.”
-Intervention by Shri Balasaheb Khardekar (MP, Kolhapur-cum-Satara, SC),

Lok Sabha Debates, 29 April, 1955 (cited in Guha, 2007: 238)
Indian Polity: Federalism
• Federal nation with 29 States of the union in addition to some “Union Territories”
• Each State enjoys “limited sovereignty” within its geographic area and pertaining to
subjects of its jurisdiction
• Each State has its own elected Assembly, its own governance structure, its own police
force, its own administrative set up and its Consolidated Fund
• Under the Article 248, subjects of governance have been divided in three Schedules:
‘State’, ‘Union’ and ‘Concurrent’
• The States can not legislate on subjects which fall in Union list (Defence, Banking and
Finance, foreign relations, international trade, aviation, Railways, Post and Telegraph,
Broadcasting etc)
• Centre can only make “Model” Acts for subjects which fall under State jurisdiction: (law
and order, cooperation, panchayati raj, agriculture, irrigation, electricity, road and
water transport, charitable organizations, etc.)
• Democratic Decentralisation: Session 10
Indian Polity: Resource Mobilization
• Centre has much wider and deeper powers to mobilize resources; a power that
has been further strengthened through 102nd amendment (pertaining to GST)
• Centre alone can levy customs duties, income tax, GST and has the sole
power to raise resources internationally
• Finance Commissions: responsibility of distribution of resources between the
Union Government and the State Governments and also between States
• Now a more powerful GST Council
• Role of Planning Commission (NITI Ayog) altered to public policy advise
• Parliamentary Standing Committees for checks and balances
• But federal institutions place relatively weak checks on the power of central
government run by a party with full majority in parliament (Tillin, 2018)
Indian Polity: the Executive
• The business of the Government is transacted by what is commonly known as

the Executive
• This comprises the Permanent Executive and the Elected Executive, the later
remaining in power for the tenure for which it has been elected
• Permanent Executive comprises the civil services, both central and provincial
• The Executive expected to formulate detailed norms for carrying out its tasks
and function according to those norms with as little “free discretion” as possible
• In theory the Permanent Executive remains subordinate to the Elected
Executive and must carry out tasks as laid down by the latter but following
norms and procedures
• Constitutional Authorities: Election Commission, Chief Vigilance Commissioner,
Comptroller and Auditor General
What are the major political happenings in India
since Independence?
Major Political Happenings in India since
Independence
• 1947: India gains independence from British rule
Source: lIvemint.com
Independence
• 1947: India fights first war with Pakistan after Pakistani tribesmen supported by
the army invade Jammu and Kashmir
• 1948: Mahatma Gandhi is assassinated by Nathuram Godse
• 1948: Indian troops enter the Nizam-ruled princely state of Hyderabad under
Operation Polo and annex the state
• 1949: The Indian Constituent Assembly adopts Article 370 of the Constitution,
ensuring special status and internal autonomy for Jammu and Kashmir.
• 1951: Prime Minister Jawaharlal Nehru introduces India’s first five-year plan,
which defines the Nehruvian model of centralized economic planning
• 1952: India holds its first general elections
Independence
• 1954: Jammu and Kashmir’s accession to India is ratified by the state’s

constituent assembly
• 1959: The Dalai Lama escapes to India. India’s sheltering of the Tibetan
spiritual leader is seen as a trigger for the 1962 war with China
• 1960: Bombay state is split along linguistic lines, forming Maharashtra and
Gujarat, after a series of violent protests
• 1961: Indian Army liberates Goa from the Portuguese; it becomes a Union
Territory
• 1962: French-ruled Pondicherry (now Puducherry) becomes part of India as a
Union Territory
• 1962: China’s People’s Liberation Army invades India in Ladakh, and across
the McMahon Line in the then North-East Frontier Agency (now Arunachal
Pradesh),inflicting heavy damage on Indian forces
Independence
• 1965: India’s second war with Pakistan over Kashmir

Independence
• 1966: Punjab is divided into three states along linguistic lines—Haryana,
Himachal Pradesh and Punjab
• 1967: Laying the foundation of the Green Revolution, farmers harvest the first
crop of high-yielding wheat
• 1967: Armed peasant revolt in Naxalbari in the Darjeeling district of West
Bengal gathers momentum
• 1969: Indian Space Research Organisation (ISRO) founded
• 1969: Government nationalizes 14 major Indian scheduled commercial banks
to serve the needs of development
• 1970: Meghalaya is formed as an autonomous state within Assam in 1970. It
becomes a separate state in 1972 with Shillong as its capital under the North
Eastern Areas (Re-organisation) Act,1971. The Act subsequently creates the
states of Manipur, Tripura, Mizoram, Arunachal Pradesh and present-day
Assam
Independence
• 1971: India fights third war with Pakistan; East Pakistan breaks away from
Pakistan and Bangladesh is born as an independent nation
• 1972: India and Pakistan sign the Simla Pact, under which the two sides agree
to sort out differences and disputes bilaterally
Independence
• 1974: India conducts peaceful nuclear test at Pokhran, comes under
international sanctions
• 1975: The Congress government imposes Emergency
• 1975: Socialist leader Jayaprakash Narayan leads the anti-Emergency
movement
• 1977: Emergency ends, first non-Congress government elected at the centre.
• 1980: The BJP is formed after internal differences in the Janata Party result in
the collapse of the Janata government in 1979
• 1984: Operation Blue Star is launched to drive out the Sikh extremist religious
leader Jarnail Singh Bhindranwale and his armed followers from the premises
of the Golden Temple in Amritsar.
• 1984: Prime minister Indira Gandhi assassinated by two of her Sikh
bodyguards
Independence
• 1984: More than 3,500 people die and 500,000 are injured in the Bhopal Gas
Tragedy following the leakage of toxic methyl isocyanate from Union Carbide
India Ltd’s pesticide plant in the city
Independence
• 1987: India-Sri Lanka pact signed to establish peace and normalcy in Sri
Lanka after tensions between majority Sinhala and minority Tamils. India
deploys troops in Sri Lanka to ensure peace
• 1988: Prime minister Rajiv Gandhi visits China and meets Deng Xiaoping—the
first visit to China by an Indian prime minister in 34 years; they agree to set up
a joint working group to resolve border dispute
• 1989: Outbreak of militancy in Jammu and Kashmir
• 1989: Exodus of Kashmiri Pandits from Jammu and Kashmir
• 1990: Cauvery tribunal formed to resolve 150-year-old river water dispute
between Karnataka and Tamil Nadu
• 1990: V.P. Singh government tables Mandal Commission recommendations for
27% reservation for OBC candidates in all levels of government services; later
extended to public educational institutions
Independence
• 1991: Rajiv Gandhi assassinated by LTTE during an election rally in TN
• 1991: Economic liberalization opens the economy to foreign and private
investment
• 1992: The disputed structure in Ayodhya demolished by kar sevaks
Independence
• 1993: Series of bomb blasts in Bombay (now Mumbai).
• 1998: India conducts five nuclear tests, joins club of countries possessing
nuclear weapons
• 1999: Prime Minister Atal Bihari Vajpayee visits Lahore in the inaugural run of
the Delhi-Lahore bus. The two countries sign Lahore pact committing both to
bilateral dispute resolution
• 1999: Delhi-bound Indian Airlines flight IC-814 hijacked from Kathmandu to
Kandahar in Afghanistan by Harqat-ul-Ansar. After a week’s negotiations with
the Indian government, militants Maulana Masood Azhar and two others
released in exchange for the hostages
• 1999: Indian army evicts Pakistani army regulars and militants from the heights
of Kargil inside the Line of Control in Kashmir
• 2000: The states of Uttarakhand, Chhattisgarh and Jharkhand are formed
• 2001: Five terrorists of Lashkar-e-Taiba and Jaish-e-Mohammed storm Indian
Parliament
Independence
• 2002: Communal violence breaks out in Gujarat after a coach of

Sabarmati Express is set on fire at Godhra railway station
Independence
• 2005: Right to Information Act implemented
• 2006: National Rural Employment Guarantee Act, 2005, implemented
• 2008: Ten members of Lashkar-e-Taiba carry out a series of coordinated
shooting and bombing attacks at different locations, including Taj hotel, in
Mumbai
• 2011: India Against Corruption movement launched against Congress-led
United Progressive Alliance (UPA) government
• 2011: World’s longest running democratic Left rule comes to an end as
Mamata Banerjee defeats communists in West Bengal, riding on the success
of an anti-land acquisition movement
• 2014: The BJP wins a parliamentary majority for the first time, under the
leadership of Narendra Modi; BJP-led National Democratic Alliance forms
government
Independence
• 2014: India’s 29th state, Telangana, is created. Telangana Rashtra Samithi
(TRS) forms the first government in the state
• 2015: India invites US president Barack Obama to be the chief guest at
Republic Day parade, the first time a US president is invited for the event
• 2016: The BJP makes inroads in the north-east, forms government in Assam
• 2016: Government announces demonetisation of Rs 500 and Rs1000 notes
• 2017: The goods and services tax introduced from 1st July
Has India’s democracy been a success?
Formal and Substantive Democracies
• Formal: Regular elections but people have less influence in governance

• Substantive: Broad-based participation (beyond voting), inclusive social policy
and a positive feeling of involvement in politics among the masses
• List of prerequisites for democratic transition: culture of equality, high levels of
education, well organized political parties and vibrant civil society and capitalist
economy (Lipset, 1994)
• India lacked most of the presumed prerequisites
• But the success of India’s formal democracy since Independence is reflected in
four key spheres (Corbridge et al, 2014):
▪ Country’s principal democratic institutions (civil services, Judiciary, Election Commission
etc) have been strengthened
▪ Ability with respect to human rights
▪ More or less free and fair elections (from central to local levels)
▪ Formal democracy has generated multiple forms of social mobilization and organizations,
from campaign against corruption to environmental movements
Substantive Democracy (1947-1990)
• Dominated by Congress Party in the first two decades after Independence

• Congress Party enhanced the power of already dominant upper and middle castes in local
arenas (Shukla, 1992)
• The Congress System of ‘patronage democracy’ also limited opportunities for the poor to
complain about government services
• The decline of the Congress Party dominance in the late 1960s created opportunities for upper
sections of OBCs (Robinson, 1988)
• Indira Gandhi’s populist rhetoric served to politicize the issue of poverty, putting the question of
economic inequality on to the agenda (Kohli, 2001)
• A system took root (‘demand politics’) in which parties made promises to selected sections of
the electorate in return for votes (Rudoplh and Rudolph, 1987)
• 1970s and1980s: criminalization and debasement of democratic practice in most parts of India
• Growing bureaucratic corruption and routine access to justice became very difficult for ordinary
citizens
• Substantive democracy did strengthen but unevenly in different regions
Substantive Democracy (1990-present)
• For analyzing substantive democratization in India, a comparison of UP, Tamil Nadu and MP is fruitful
(Corbridge et al, 2014)
• Rise of low-caste politics has been especially dramatic in UP where BSP tried to raise the social,
political and economic standing of Dalits (Pai, 2002)
• But substantive democratization in UP has been partial at best
• Widespread corruption and bureaucratic inefficiencies, fiscal crisis at the state level
• Tamil Nadu appears to have been more successful in linking formal to substantive democrarcy
• Party with an ideological commitment to addressing caste-based social injustices. But Dalits in TN
continue to face widespread discrimination and limited opportunities for mobility (Anandhi et al 2002)
• In MP Congress Party has been trying to foster poor people’s empowerment
• In the 1990s, increased funding to panchayats and educational reforms
• Visible success of the Congress Party in MP in the 1990s led to resurgence of the party at national
level between 2004-9.
• RTI, NREGA, mid-day meal etc.- a way toward substantive democratization
• India’s democracy has been a success but still a long way to go for the creation of a just
society
The Language Debate in India
Linguistic Diversity: Curse or Boon?
The Language Debate in India
• The first anti-Hindi imposition agitation was launched in 1937, in opposition to the
introduction of compulsory teaching of Hindi in the schools of Madras Presidency by
the first Indian National Congress government led by C. Rajgopalachari
• Mandatory Hindi education was later withdrawn by the British Governor of Madras in
February 1940 after the resignation of the Congress Government in 1939
• The adoption of an official language for the Indian Republic was a hotly debated issue
during the framing of the Indian Constitution after India's independence
• After an exhaustive and divisive debate, Hindi was adopted as the official language of
India with English continuing as an associate official language for a period of fifteen
years, after which Hindi would become the sole official language
• Efforts by the Indian Government to make Hindi the sole official language after 1965
were not acceptable to many non-Hindi Indian states, who wanted the continued use
of English
• To allay their fears, Prime Minister Jawaharlal Nehru enacted the Official Languages
Act in 1963 to ensure the continuing use of English beyond 1965
• Hindi and English are official languages; 22 scheduled languages
Classroom Discussion
Is India’s linguistic diversity a boon or a curse? Should

English be a passport to white collar jobs? If so, how
could that passport be made available to the masses?
Environment
Lecture 4
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Lecture Outline
• Political Economy of India since Independence

• Period of Slow Growth (1947-74)
• Period of Moderate Growth (1975-1990)
• Period of High Growth (1991- present)
• Crony Capitalism and Corruption in India
What is Political Economy?
• Political economy most commonly refers to interdisciplinary studies drawing

upon economics, sociology and political science in explaining how political
institutions, the political environment, and the economic system—
capitalist, socialist, or mixed—influence each other
• Interface of economic activities and political system
• Why is it important?
• Business eco-system is determined by political environment
• ‘Market sentiment’
• Choices made by governments influence economic activities
• Redistribution: what to do with capital formation?
Political Economy of India
• From the vantage point of hindsight, it seems quite remarkable that India did what no other
newly independent developing country did (Basu, 2018)
• It invested in politics first—establishing democracy, free speech, independent media, and
equal rights for all citizens
• At one level all progressive leaders around the world tried this after the end of World War II.
• Not just Jawaharlal Nehru in India, but Bung Karno Sukarno in Indonesia, Mohammad Ali
Jinnah in Pakistan, Kwame Nkrumah in Ghana, Julius Nyerere in Tanzania, and several other
leaders were trying to build political institutions to promote inclusive economic development
• But in most cases it did not last. Coups, chaotic responses, and the lust for power caused
democracy to collapse in one nation after another, bringing in military rule and conflict
• In any case, the upshot was that in terms of political design and structure, India resembled an
advanced nation, and in this respect had very few peers in the developing world
• India’s downside turned out to be its economy, in comparison to Singapore, South
Korea or Taiwan (Basu, 2018)
GDP Growth Rate since Independence
India’s Foreign Exchange Reserves
Source: Basu, 2018

‘Job-less Growth’
Political Economy of Growth: three phases
• Period of slow growth (1947-74)

▪ The period from 1947 to 1968 were years of moderate regulation by the
state
▪ In comparison, the years between 1969 and 1974 were characterized by
stringent regulation of private and foreign companies
• Period of moderate growth (1975-1990)
▪ Very important decisions that prepared the foundation of a strong economy
▪ The substantial bias in favor of government ownership and economic self-
reliance changed after the balance of payments crisis of 1991
• Period of high growth (1991-present)
▪ India’s private sector was freed from significant state control during this
period
▪ The subsequent Indian private sector boom has been associated with high
levels of economic growth in India
Period of Slow Growth (1947-74)
Mukherji (2009)
• The state and the business class in India reached a compromise in the early
years after independence
• The Indian business class desired limited state regulation and protection from
international trade
• Agreement on trade protection between the state and business class but
differences of opinion about the extent of state regulation over the economy
• Power of Indian business and its close links with the state produced a
regulatory regime between 1947 and 1955
▪ quite considerate towards the interests of Indian business than the socialists within the
Congress Party had desired
• The Nehru years witnessed a rise in the power of the Planning Commission,
which won it the epithet “super cabinet”
Period of slow growth (1947-74): The planning era
• Rapid development of heavy and capital goods industries in India, mainly in

the public sector (steel plants, heavy machinery etc)
• The shift in favour of heavy industry was to be combined with promoting labour
intensive small and cottage industries for the production of consumer goods
• Community development projects (for labour absorption) and agricultural
cooperatives as the immediate solutions to the escalating problem of
unemployment, without the state having to make large investments in these
areas
• State supervision of development along planned lines, dividing activity between
the public and the private sectors, preventing rise of concentration and
monopoly, protecting small industry, ensuring regional balance
• Dependence on external resources, foreign aid or foreign private investment,
was kept quite low
• High-powered national laboratories and public institutes for scientific
research;1948 the Atomic Energy Commission was set-up
• Nehru was not entirely averse to the private sector:

▪ Banks could not be nationalized
▪ Foreign investment continued to enjoy a reasonably favorable environment.
▪ G. D. Birla remained an important source of election funds and helped mobilize Indian
industry to the service of the Congress Party during the election years of 1952 and 1957
• Lal Bahadur Shastri became Prime Minister in 1964 and quite unexpectedly,
Shastri began systematically overturning the Nehruvian legacy
• Importance of the Planning Commission was diminished and the Prime
Minister’s Office was made more powerful.
• National Development Council involving state-level leaders was also made
more powerful
• Had Shastri not died prematurely in January 1966, the Indian economy might
well have taken a private sector and trade oriented route in the mid-1960s
(Kudasiya, 2002)
• Indira Gandhi’s unexpected rise to the Premiership in January 1966 was owed partly
to struggles within the Congress Party that could not easily be resolved
• Economic Crises: droughts of 1964-66 and the war with Pakistan in 1965 created a
financial situation where India became dependent on shipments of US PL 480 wheat
• The food situation and the related financial situation forced India to ask the US for
subsidized wheat supplies and financial assistance
• India liberalized its trade regime and devalued the Indian Rupee, bowing to external
pressure
• Indian business was overtly supportive of the reforms but was largely opposed to the
devaluation
• Domestically driven import substituting industry needed cheap imports for the
manufacture of goods for the Indian market
• The policy of trade promotion and private sector participation was reversed by 1969
• Nationalization of private sector assets in areas such as insurance, banks,

coal, wheat, and significant parts of the steel industry
• Large industrialists controlled stringently in relation to the quantities and types
of goods they could produce through the Monopolies and Restrictive Trade
Practices Act (MRTP; 1969)
• The Foreign Exchange Regulatory Act (1974) reduced the power of
multinational corporations by reducing the foreign equity participation
• This meant that multinationals would have fewer powers in company boards;
ultimately led to the departure of companies like Shell, Coca Cola, IBM
• The imposition of emergency in 1975 brought about some important economic
policy changes, most notably a joint venture between Suzuki and Indian
government to produce passenger cars; opposed by Indian auto industry
Period of Moderate Growth (1975-1990)
• In 1975 a special Cabinet Committee was formed for export promotion

• The Department of Electronics set up within the Prime Minister’s Office
foresaw the potential for India’s exports in software even in the mid-
1970s
• In the early 1980s, Mrs. Gandhi was attentive to China’s trade oriented
growth and the inability of the Soviet system to meet even its food
requirements
• The achievements of the 1980s were quite substantial in relation to the
legacy of the 1970s
▪ First, some industrial deregulation favoring the Indian private sector was achieved.
The restrictions for large businesses via the MRTP route were eased
▪ Second, Rajiv Gandhi was able to move the telecommunications sector in the
direction of private sector orientation
▪ Third, Rajiv Gandhi made a considerable effort to draw the more professional and
modern Association of Indian Engineering Industry (AIEI) closer to the government
Period of Moderate Growth (1975-1990)
• The period of domestic deregulation witnessed the emergence of the software

sector as an export oriented sector.
▪ Aided by synergies between the Department of Electronics (DOE) and India’s comparative
advantage, which lay in its cheap English speaking technically competent workforce
• The DOE also gave the push to government investment in software technology
parks, which provided Indian firms with cheap connectivity, office space and
infrastructure
• Most important legacy of the Rajiv Gandhi government was the background
research on economic liberalization within the Prime Minister’s Office, the
Ministry of Commerce and Industry and the Ministry of Finance by people like
Montek Ahluwalia, Rakesh Mohan, and Vijay Kelkar
Period of High Growth (1991-present)
• Trade, investment and infrastructure reforms of 1991, even though they

constituted a break from the past, were largely path dependent
• India could have done in 1991 what it did in 1966, which was retreat to reforms
in a moment of crisis only to pursue state control and autarky in the long run
• The reason why 1991 was different from 1966 was that this time there was
technocratic conviction within the executive branch
• Manmohan Singh had the support of an excellent technocratic team from the
1980s, which generated a sophisticated blueprint for reforms
• PM Narsihma Rao trusted his Finance Minister and understood that the end of
the Cold War required a fundamental restructuring of India’s internal and
external economic policies
• Why did Indian industry agree to tariff reductions, devaluation and easier entry
of foreign direct investment when they had opposed these in the past?
• Import substituting industry needed foreign exchange for imports of intermediate goods,
and this finance could only be made available by the IMF
• India had merely two weeks of foreign exchange and no alternative sources of funding
when it went to the IMF in 1991
• The technocrats also begged to differ with the IMF. The fiscal deficit was allowed to grow
after the first year, as government spending could not be drastically reduced in a poor
country
• Industrial de-licensing after 1991 allowed Indian private companies to produce whatever
they liked in almost all areas, without the need for a license
• Devaluation of the Indian Rupee made India’s software and other exports more
competitive
• Geography, exchange rates, and improved products made Indian goods such as watches,
motor bicycles, cars, and trucks more competitive than their counterparts from Japan
• A business lobby that supports foreign investment in India is the domestic industrialist who
needs foreign capital to compete with the more cash rich Indian companies
• Less well endowed companies like Bharti Televentures in India’s that supported the
government over increasing the foreign equity limit from 51 percent to 74 percent in order
to compete with richer companies like Tata and Reliance
• Even though Indian manufacturing lags behind China, Indian companies are
consolidating and multinationalizing their business operations
• India did a spectacular job of reforming its telecommunications sector, airlines,
stock markets, and banks. It has so far failed in reforming the power sector and
has had middling success in reforming physical infrastructure
• What is interesting is that with the exception of the power sector all the success
stories were home grown and evolved in the context of messy democratic
politics
• Yet, agriculture sector has been in decline since the mid-1990s.
• Trade union laws increase the propensity of Indian industry to remain capital
intensive, resulting in unemployment and increased employment in the
unorganized sector
• Manufacturing industry still faces major regulatory bottlenecks
Years of failure?
• A counterpart to today’s India Shining and Achche Din (Happy Times) is the
suggestion hat the economy of India performed very badly from 1950s-1980s
• The failure thesis has been proposed by pro-market reformers such as Deepak Lal
(1999) and Jagdish Bhagwati (1993)
• Indian economy underperformed under Nehru and more so Indira Gandhi
• Conventional view of economic growth is that India’s planners
▪ neglected agriculture (main provider of jobs)
▪ over-protected workers in organized sector
▪ misused scarce public money to build up capital-intensive industries
▪ deployed unnecessary trade barriers and restrictions to foreign capital
▪ Instead of moving swiftly from import-substitution industrialization to export led

growth in the mid 1960s when BoP crisis and pressure form the US opened a door
in that direction, India’s economy took on the characteristics of License-Permit-
Quota Raj (Mukherji, 2000)
The ‘failure’ narrative
• A powerful narrative emerges from the figures that seems to confirm that India
suffered from at least 20-25 years of economic failure
• 1970s was a difficult decade for many developing countries: oil price crisis and
global economic meltdown
• Easy to condemn India for slow growth rate in the first three decades and to
assume that economy ‘failed’ more generally in the pre-liberalization period
(Corbridge et al, 2014)
• Three issues stand out:
▪ British legacy: economy was in shambles with heavy debt; high population
growth
▪ Slow growth in comparison to 90s because energies spent in nation-
building; investments in heavy engineering and infrastructure, and IITs and
IIMs can deliver only in long run
▪ Didn’t do so bad in terms of world growth rates (De Long, 2003)
Is corruption a big problem for India’s economy?
• What is the nature of corruption? (Khan, 2006)

• Corruption also a feature of now developed economies when they were
developing
• Transparency, good governance etc. came into the picture much late for now
developed economies
• Control the corruption that distorts economy not that fosters investment
• East Asian countries have been able to do that but not South Asian and Sub-
Saharan African!
Environment
Lecture 5
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Why is agriculture important for development?
• Very important for poorer countries
• Very important when the now developed countries were developing

(surplus capital and labour from agri fed emerging industrial sector)
• As economic activity:
− 40% + exports in some countries
− Significant linkages with other sectors (trade, agro-processing, transport etc.)
− As a source for livelihood: 60-80% in some countries
• For food security provision (1 bn hungary people!)

Positive and Negative Stereotypes about Peasants
(kisan); reality of rural India today
• Positive: Hard-working, nature-loving, strong community ties, repositories of

traditional knowledge etc.
• Negative: Illiterate, filthy, conservative, averse to learning new techquines etc.
• Rural markets account for more than a third of all consumer goods sold
• Rural sales of FMCG product rose 13 per cent year-on-year in the September
quarter; urban sales grew only four per cent (Business Standard, Nov. 2017)
• Massive migration (seasonal) from rural to urban
• Exit from agriculture not resulting into entry in salaried employment
• More than 35 percent rural households are non-agricultural
• Deep distress often resulting into farmer suicides in period of high economic
growth
Problematising Peasantry
• Who are the farmers today? Region Proportion of total labour force
“Agriculture provides employment for in agriculture
1.3 billion people worldwide, 97 percent USA 2.1 %
of them in developing countries“ (World
Bank, 2007) EU 4.3 %
Not all farmers are farmers all the
time Japan 4.1 %
Brazil 16.5 %
China 49 % approx
• “The vast majority of the agricultural
population no longer appear on the India 56 % approx
market for commodities as sellers of
foodstuffs, but as sellers of labour- Sub-Saharn 60 % approx
power, and buyers of foodstuffs” Africa
(Kautsky, 1988)
Who makes money from agriculture?
Value of Food Exports

Rank Country
(US Dollars)
1 United States $149,122,000,000.00
2 Netherlands $92,845,387,781.00
3 Germany $86,826,895,514.00
4 Brazil $78,819,969,000.00
5 France $74,287,121,198.00
6 China $63,490,864,000.00
7 Spain $50,960,954,460.00
8 Canada $49,490,302,612.00
9 Belgium $43,904,482,740.00
10 Italy $43,756,176,567.00
Source: FAOSTATS
Where is money made?
Most of the economic value of food is added beyond the farm gate!
Source: http://www.grida.no/files/publications/FoodCrisis_lores.pdf
Source: http://www.globalpolicy.org/social-and-economic-policy/world-hunger/agribusiness-companies.html
6
Family Farming?
All Images: © The Hindu

Class Differentiation in Farming
(Bernstein, 2010)
• Class Differentiation: Once family farmers are locked into commodity production,
there is a tendency of internal differentiation into classes
• Lenin (1964) termed these rich, middle and poor peasants
• Rich farmers or capitalist farmers tend to employ wage labour in addition to or
in place of family labour
• Medium scale farming rests on combining farming with off farm activities,
including labour migration, as a source of additional income
• Poor farmers may reduce their consumption to extreme levels in order to retain
possession of small piece of land or a cow, to buy seeds or to repay debts
• Marginal or poor farmers may not necessarily lack access to land but they do
lack one or more of the following to be able to survive through their own farming:
− Enough land of good quality
− Capacity to buy other necessary means of production, like tools or seeds or water
− Capacity to command adequate labour
Farm Size in India
Source: National Sample Survey Organisation (NSSO), 2014

Vast majority of Indian farmers are “small”
Size Matters!
Source: Times of India, April 2, 2015
11
Green revolution (1965-1980s)
Primarily rainfed agriculture
Fertilizers and Pesticides Usage in India
Productivity growth has stagnated in agri sector
Crop yields in India lower than world average
Public investment decreasing, input subsidy
increasing…
Poor track record of MSP procurement
Who is getting the MSP?
Crop Insurance controversial
Declining trend in farm/rural wages
Agrarian Transition (Structural Transformation)
(Binswanger, H. 2015)
• During structural transformation, employment grows rapidly in the non-agricultural
sectors and labour is pulled out of agriculture into industry and service
• Structural transformation in India is stunted one, in which workers move primarily
from agri sector to rural non-farm sector rather than to more secure salaried jobs
• Difference between share of agri in economy and its share in labour force have
widened significantly
• Accelerating growth of economy since the 1980s did not lead to an acceleration of
agricultural growth
• Poor development of labour intensive manufacturing in India: main problem in
stunted transformation
• 1980s golden years of Indian agriculture (3.3 percent); agricultural productivity
growth has slumped since then
• Dream of a structural transformation to a service economy with good and secure
urban jobs has not been relaised in India
Whither the Indian Village (Gupta, 2005)
• No matter which way one looks at it, as owner cultivators or as landless

labourers, the village is no longer a site where futures can be planned
• Rarely would a villager today want to be a farmer if given an opportunity
elsewhere
• Village economy has itself lost its sustaining power
• Power of landowners as patrons is diminishing as they can not employ the
landless any more due to shrinking size of their own landholding
• In Punjab, both adi-dharmis and mazhabis would not work in the fields of Jat
Sikh landowners if they get a job elsewhere even if the wages are slightly lower
• Same for Jatavs in western UP and other former untouchable castes in TN,
Maharashtra etc.
• Caste system is disappearing in rural India but caste identities are seen
everywhere in highly exaggerated form
Whither the Indian Village (Gupta, 2005)
• Rural agitations are no longer between agricultural labourer and landlord as

used to be the case until the 1970s
• No room now for agricultural labourers in farmers movements (as was the case
in the past; mobilization by left parties)
• New Framers’ Movements led by rich peasantry in India
• Enemy is no longer local but supra local: MNC’s or government of India
• Urban aspirations of cultivating castes: Yadavs, Jats, Gujars or Patels
• Without efficient transportation system, cold storage, greenhouses and a sound
marketing framework, the hope that the production of non-food crops will revive
the village is not very realistic
• To imagine that the Indian farmer could compete against the west where agri is
industry and farming is heavily subsidized, is quite difficult to conceive
• More than 35 percent rural households are non-agricultural
India’s problematic transition
• Declining relative share of income from agricultural sector has not been
accompanied by an equivalent decline in employment in that sector
• Virtually impossible for households with operational holdings of two hectares of
less to earn an income sufficient for family survival (Ramchandran, 2010)
• Supermarkets and other corporates are not interested in transacting with large
numbers of small farmers
• Declining farm size and diversification of households into non-farm sector will
continue
• All types of farmers will need to focus much on horticulture, milk, poultry and
high valued crops
• More capital intensive farms, use of more machinery, organic farming?
• So what is the future of vast majority of farmers in India?
Environment
Lecture 6
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Famine and Hunger: some starting points
• Analysis of hunger, and what to do about it, should make a distinction between
famine and chronic undernutrition
• Famine is a ‘crisis in which starvation from insufficient intake of food, combined
with high rates of diseases is associated with a sharp increase in death rate’
(Crow, 1998:43)
• But…famine is not the only form of hunger!
• Chronic nutritional deprivation is still experienced by a significant proportion of
the population (silent killer!)
• In the last part of 20th century, awareness of famine, through television and
newspaper reports of starvation deaths
• Nutritional deprivation doesn’t get much media attention!
Famine and Hunger
• Since the communist revolution of 1949, China has made progress in reducing
chronic hunger
− but between1958 and 1961, the largest famine of the 20th century was
allowed to occur (millions of casualties)
• By contrast, there has been no major famine in India since independence but
the chronic hunger remains widespread
• Phenomena of chronic hunger is much more pervasive
− it affects many times the number of people threatened by famine
• There are varying estimates of the global scale of chronic hunger (one in nine
people, according to the WFP)
• Undernourishment has reduced drastically in China and South East Asia in the
last four decades but has increased in SSA and some parts of South Asia
India and China compared
Percentage of undernourished population

25
21
20 20
19
18
17
15
12
10 10 10
0
1990-92 1995-97 2000-02 2005-07
India China
Source: Compiled from FAOSTATS

From famines to food crisis
• Eric Vanhaute (2011): In the second half of the 20th century, total agricultural
output rose faster (by a factor 2.6) than the world population did (by a factor 2.4)
• The percentage of people engaged in agriculture has decreased from 65 percent
in 1950 to 42 percent in 2000
• However, even though the average per capita food supply rose by one fifth
between 1960 and 2000, the number of undernourished people doubled
• Over time, the predominant character of hunger seems to have changed from
frequent food shortages to chronic food poverty
Is nutritional deprivation only developing countries‘
problem?
• Paradox: One contrast between the industrialized and non-industrialized
worlds at the turn of the last century
• Nutritional problem
− Industrialized countries: obesity and ‘junk food’
− Poorer countries: small body size and insufficient food
Image© Getty Images

Issue of relativity?
Wasteful overproduction and

overconsumption (by some) of
food in the industrialized countries
Continuing hunger of many

millions of people in the
developing world
Defining Hunger
• The sensation of hunger is universal. But there are different manifestations of

hunger which are each measured differently:
• Under-nourishment: people whose food intake does not include enough

calories (energy) to meet minimum physiological needs
• Malnutrition: characterized by inadequate intake of protein, energy and

micronutrients and by frequent infections and diseases
− measured not by how much food is eaten but by physical measurements of
the body - weight or height - and age
• Wasting: indicator of acute malnutrition that reflects a severe process leading

to low weight for height
• Stunting: indicator of acute malnutrition that reflects low height for age
Hunger amidst plenty
Source: FAO 2009

Prevalence of Malnutrition in Children (UNICEF, 2018)
Food Security Approach
• Food security exists when all people, at all times, have physical and economic
access to sufficient, safe and nutritious food to meet their dietary needs and
food preferences for an active healthy life (FAO, 1996)
• Lack of link between national food availability and household food access led
to food security approach
• Switch from focus on food supply to one on the way that food is accessed
11
Poverty-nutrition Trap
(FAO, 2008)
12
Agriculture in India
• 1950s-1960s: agrarian reform, irrigation projects
• Late 1960s: Green Revolution

• High-yield varieties of seeds (hybrid seeds)
• Access to credit, rural infrastructure, and technology
• Policies to encourage farmers (e.g. input subsidies and MSPs)
• Food Corporation of India (FCI)
Green Revolution: Aftermath
• Environment
• Positive: less land converted
• Negative: soil degradation, water use, chemical run-offs
• Poverty
• Who benefitted?
• Nutrition
• Self-sufficient by early 1980s
• Staple crops replaced micronutrient-rich foods
Calorie Consumption
(WSJ, 2015)
Undernourishment in India
FAO STATS, 2016

Stunting: Global Comparison
(Menon, 2015)
Stunting (Children under 5 years)
Malnutrition as a crisis in India
• India is home to nearly one third of malnourished children of the world
(Planning Commission of India, 2010)
• Rate of child malnutrition in India is almost five times more than in China, and
twice as much as in Sub-Saharan Africa (World Bank, 2013)
• In spite of India achieving strong economic growth over the past 20 years,
malnutrition in children under five years of age continues to be one of the
highest in the world (World Bank, 2013)
• ‘Malnutrition is India’s silent emergency and one of the greatest human
development challenges’ (World Bank, 2013)
• ICDS, Mid-Day Meal, PDS
Integrated Child Development Services (ICDS)
• ICDS initiated in 1975

• Anganwadi Centers (AWC) deliver 6 services:
ICDS Performance
• A sum of Rupees 15,850 crore (approximately 2.9 billion USD) was spent in
2012-13
• Gaps between official statistics and grassroots reality
• Half of total eligible children are currently enrolled at AWCs and the effective
coverage as per norms is only 41% of those registered for the ICDS benefits
• AWW are overburdened, underpaid and mostly unskilled, which affects the
implementation of the scheme
• Most AWCs have inadequate infrastructure to deliver the six services and this
hurts quality of service delivery
• ICDS performance mixed across states

Crisis of child undernourishment in Bihar
• Bihar has the highest level of child malnutrition among all the other provinces
of India (CAG Report, 2012-13)
• This failure is attributed to Bihar’s miserable performance in the delivery of
services under the ICDS
• Bihar was adjudged to be the most corrupt state in India in terms of petty
corruption (Transparency International India, 2005)
• ICDS, like any other welfare programmes suffered from leakages and petty
corruption (Fraker et. al, 2013; Nayak and Saxena, 2006)
• Bihar government since 2005 has instituted various reforms for the effective
delivery of services under the ICDS. These include:
▪ strict monitoring
▪ swift punishment to erring officials
▪ involvement of user groups
Anganwadi Centre
© Rajiv Verma
Questions addressed in the study
• What happens when a poor performing state like Bihar adopts governance
reforms for improving the services under the ICDS?
• How do frontline workers respond to these initiatives?
• Can strict monitoring, reporting and inclusion of user-based committees ensure
effective implementation of the ICDS?
• What are the main challenges in ensuring better services under the ICDS even
when there is a political will at the top for curbing corruption?
These questions were addressed through in depth case study of ICDS in

the new set up of ‘good governance’, for understanding what works and
what does not in terms of service delivery
Reforms initiated by the Bihar government
• Introduced the scheme of decentralised supplementary nutrition program

(SNP)
• Users based committees were constituted at the village level, comprising all
women beneficiaries
• These committees were assigned the following responsibilities :
I. Monitor the purchases made under the SNP & THR
II. Handle the joint bank account with AW
• Take home ration (food items) was to be distributed once a month in place of
twice, to save the time of the beneficiaries
• Web based reporting and regular monitoring- to be carried out by inspection
teams at regular intervals
• Stringent punishment for non compliance- immediate suspension of the AWW
& AWH
Findings from the fieldwork
• Contrary to the expectations of involving user committees in curbing

corruption, the presidents of the users committee have emerged as
‘bribe takers’
• One Anganwadi worker narrated:

‘We have to pay nearly Rs. 500 per month to the President for signing
the purchase register. She behaves autocratically and never works without
her share [….]. She claims that when everyone else is extracting their
share, is she the only fool around?’
(Excerpt from interview, 19 August, 2013)
Perception of the frontline workers on
prevailing bribery in the ICDS
• Believed that corruption will never end as all the actors involved in it are
corrupt
• Local elected leaders extracted money for recruiting them- if someone is
recruited after payment, she had all the incentive to extract money
• Regarding the commitment of the present regime on the issue of corruption,
one of the AWWs aptly stated:
“The chief minister might be honest but he seems to be the only one. The
last thing one finds in government is honesty”
• The reforms have increased the number of stakeholders in ‘bribe’
• Have made their work more vulnerable-now they work in an environment of
perpetual anxiety of losing their job
Conclusions
• Bribery in ICDS seems to follow a ‘progression’ path, where one act of

bribery leads to other
• User based committees have became partners in corruption
• Local elected representatives utilize it for their ‘vote-bank’ politics
• Strict punishments and continuous monitoring have increased corruption

rather than curbing it
• Who will monitor the monitors?

Environment
Lecture 7
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Bulk of Indian Workforce…
Education; Employment and Informal Economy
• Income poverty has reduced in India in the last two decades but non-income
indicators of well being remain depressingly low
• Why high rates of economic growth haven’t delivered more for Indian workers?
• Losers: agricultural workers and small farmers; Labour in unorganized (informal)
sector
• Stunted agricultural transition has led to (temporary) release of labour from rural
India; very few make it to organized sector
• High rates of GDP have not generated very many ‘good jobs’
• Bulk of economic activities remain in unorganized/informal sector
• Education system churning out unskilled labour force feeding the unorganized
sector and the cycle continues….
What is the problem with India’s School Education?

Literacy rate increasing….
Students quitting soon….
Expenditure on Education: Comparison
Right to Education
• In 1950, the Constitution articulated its commitment to education through

Directive Principle of State Policy
• The original Article 45 mandated the state to provide free and compulsory
education to all children up to age 14
• In 2009, 86th Constitutional Amendment Act was passed and Right to
Education became a Fundamental Right in 2010
• 25% seats in private schools also for children from poor families
• No donation, capitation fee at time of admission
• Various schemes: Sarva Shiksha Abhiyan (SSA); Mid-day meal, Kasturba
Gandhi Balika Avasiya Vidhyalaya, Jawahar Navodaya Vidhyalaya etc.
• By and large, very limited focus on learning outcomes, especially in rural
schools
What it means to be a Dalit or tribal child in our
schools? (Ramachandran and Naorem, 2013)
• It is common knowledge that children from marginalized social groups drop out
of schools in greater numbers as compared to other children
• Schooling experience of thousands of children from diverse poverty situations
is not positive
• Despite the good intentions of RTE, we are far from creating a level-playing
ﬁeld for all our children
• Qualitative study from six states: 120 schools
• Studied language, infrastructure, Mid-Day meals, teachers, sports facilities etc.
• Caste and gender based exclusion quite prevalent
▪ Mid-Day meal as the single most important site for inclusion and exclusion
▪ Cleaning the toilets another major issue
Involvement of Philanthropic Organizations
• Azim Premji Foundation

• Working since 2000 with the elementary education system in rural government
schools
• collaboration with state governments to engage with teachers, school
leaders, teacher educators and other education officials
• The range of work involves efforts to:
▪ improve the quality of processes and practices within schools;
▪ facilitate creative approaches to teaching and learning through workshops, teacher
forums, seminars, melas, etc.;
▪ build professional networks of teachers and head teachers;
▪ reform school curriculum, teacher-education curriculum and related issues of
education policy
• Reached out to more than 3,50,000 schools across the country
• Teach for India, and many more….
Job Crisis and Labour Migration in India
Job Crisis in India
➢To capitalise on India’s

remarkable demographic
dividend, the country must not
just improve the quality of its
education but also create
employment opportunities
Jobless Growth
Crisis of ‘Good Jobs’
Labour Migration: Beyond stereotypes
• Peasants (as engaged only or mainly in agriculture)

• Peasant Immobility (as conceptualised in the timeless village community)
• Labour migration is a recent event
• The main trend is rural-urban migration (permanent)
• Wage differential is the only driving force
• Migration is mainly forced
• Efforts needed to prevent rural migration
➢Migration as coping mechanism as well as livelihoods strategy
Labour Migration and Emplyoment
• In contrast to the pattern of industrialisation and urbanisation which shaped

now developed countries, in Asia the labour market remains in a state of flux
• Huge armies of labour continue to be on the move simply because in most
cases employment is casual and conditioned by short term arrangements
• Not only men, but also women and children have been made mobile
• Although in many cases footloose, these are not free labourers able to go
wherever and whenever they want
• “This footloose workforce can be found in the open air but is also
“domesticated” and kept indoors, away from the public eye, in the multitude
of sweatshops that form the backbone of the informal sector economy”
(Bremen, et al 1997)
Labour Migration: the migratory life
• Migration for work within India is highly circular, with migrants working in multiple
destinations during their lifetimes, and retiring in their native places
• There are over a hundred million migrant workers in India, of which most are circular
migrants (Economic Survey of India, 2016-17)
• A few more tens of millions migrate seasonally for work—for a few months of the year,
drawn disproportionately from the Scheduled Castes and Tribes
• Missing men from Indian heartland and adverse sex ratios in destination (e.g. Surat)
• “Circular migrants often have to keep a low profile because, although their periodic
presence is required in order to keep the economy growing, they are considered a
nuisance in the public sphere because of their poor, dirty and undignified looks.”
(Breman, 1997)
• Miserable terms of employment-inadequate shelter-basic amenities
• Utter loneliness, lack of care and emotional comfort are equally critical features of their
misery apart from material deprivation
Migration Hotspots in India
Seasonal Migrants
South Rajasthan-Gujarat Migration
Faceless?
The Life Cycle
Grassroots Initiatives (E.g. Ajeevika Bureau)
How to skill labour in an informal economy?
Unorganised / Informal Economy
The unorganised sector refers to

those enterprises whose activities
or collection of data is not
regulated under any legal
provision or do not maintain any
regular accounts
No Job Contract/Beyond Tax Net

Skill India: Informality within formal sector
(Ruthven, 2017)
• Today’s workforce managers in global industrial plants need workers –
sometimes in large numbers (as many as 100-200 at a time) – but they can
only sustain these jobs when work is available
• How do companies succeed in cranking into place a workforce which fits these
unpromising conditions?
• Rule Number 1: Avoid regularising workers, while never completely
dousing their hope
• Rule Number 2: Keep the regular workers sweet and they’ll help you
manage the rest
• Rule Number 3: Close mature plants and move further out
• Rule Number 4: Play to status
▪ Enter into agreements with educational institutions; Such institutions are approached not
as vocational training providers but as workforce temping agencies
▪ The less people consider themselves ‘workers’, goes the argument, the less the risk of
industrial relations problems
‘Skills’ in Electronics and Automotive industries
• Scant sign that government skills policy has improved job quality
• By subsidising the stream of new entrants at no cost to employers, it may have
had the opposite effect and even kept wages down
• Industry’s failure to engage in the government’s skills policy is partly explained
by the fact that in many industries, skill is simply not the binding constraint:
▪ There are industries where the skilled workforce is long established (e.g. textile
and garment industry);
▪ where technology changes so rapidly that companies plan for in-house training
(e.g. electronics and capital goods industry);
▪ where automation levels have reached a point where the majority of roles are
unskilled
• It is to secure the availability of compliant and flexible workers at minimum
cost, rather than to access a better skilled workforce, that industry has
engaged with Skill India
Source: https://thewire.in/economy/skill-india-narendra-modi-jobs-in-india-unemployment
Environment
Lecture 8
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Gender is …
• Gender is often confused with biological differences between sexes

➢Gender is a social construct that assigns roles, responsibilities and
opportunities to men and women
• Gender assignments vary according to place, group, generation and stage

of the lifecycle
• Gender an increasingly important analytical lens to understand social

processes that can foster sustainable development
• Gender is, thus, not about women but about the relationship between
women and men
• Women in relation to men, kinship, community, market, state…
How much have things changed for Indian women?
• Do women constitute a single unified social category? Can we assume that

well-to-do metropolitan women see the world in the same way as female
agricultural laborers?
• Powerful reasons for believing that large numbers of women (and girls) in India
suffer disadvantage because of the way local gender relations are constructed
• Govt has recognized this problem early on and have taken several measures:
▪ Female education; infant mortality; reservation in local self-bodies; special waiting lines in
some public places; legal provisions for harassment at workplace etc.
• Location specificities matter and they keep changing:
▪ Purdah common in north India but is less often found in Adivasi communities
▪ Dowries which are historically more common in north are becoming common in South as
well
• But overall, welfare of women has been improving in may respects since
Independence
Trends in gender empowerment: Sex ratio
Trends in gender empowerment: Sex ratio at birth
Trends in gender empowerment: Workforce
participation
Female workers in India

largely comprise
unorganised labour, and a
vast majority in the
unorganised informal
sector include those
engaged in agriculture, as
low-paid subsistence
workers, a market
susceptible to economic
shocks.
Trends in gender empowerment: White collar jobs
Trends in gender empowerment: Gender gap
Crimes against women in India
Source: National Crime Records Bureau, 2015

Female share of agricultural labour
Share of male and female landowners
in main developing regions
Gender discrimination: Rural wages in India
Gender inequalities in rural areas
• Lower literacy rate; girls more likely to suffer malnutrition and hunger
• Limited land ownership and other productive resources

• Subordinate position within household (decision-making; lack of control over
household income; domestic violence)
• Household responsibilities vs agricultural responsibilities

• Not recognised as farmers or cultivators although often do the most tedious
jobs in fields
• Lower wages for same work

Theoretical approaches
• Two Approaches:
• Women in Development (WID): concerned with women‘s exclusion in national
development efforts
• Gender and Development (GAD): women are already incorporated into

development process but on terms that reproduce their subordinate status
• WID versus GAD: efforts to integrate women into the mainstream development
agenda and efforts to transform the mainstream agenda from a gender equity
perspective
Problems of Essentialism?
• Women are closer to nature (mother earth)
• The problem of tickbox in development projects
• Actual needs of targeted population versus perceived needs of the donors
• The problem of internal differentiation within ´women´

Legal protection for women at workplace in
organised sector
• What is sexual harassment?

• Quid Pro Quo (this for that)
• Implies or explicit promise of preferential / detrimental treatment in employment
• Implied or express threat about her present or future employment status
• Hostile Work Environment
• Creating hostile, intimidating or an offensive work environment
• Humiliating treatment likely to affect her health and safety
• Prevention of Sexual Harassment of Women at Workplace Act, 2013

What is sexual harassment?
South Asia has seen more women heads of government than

Europe and the US. Can we say South Asian women are more
empowered than their counterparts in Europe and the US?
“In the long run, it is hoped that women will come to escape male
violence as new property laws are enforced and as women participate
more in regular, paid employment” (Corbridge et al, 2014: 275)
If yes, how? If not, why?
Environment
Lecture 9
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Quiz
• Who is Birsa Munda? What is his contribution to Indian society and polity?
• What do you know about the Mangadh Massacre (The Bhil Revolt of 1913)?
• Where are the following dialects mostly spoken?

▪ Vagdi
▪ Ho
▪ Gondi
• Who are Limbaram and Dilip Tirkey?
• What is the Niyamgiri conflict about?

Geographical Spread
Tribes or Adivasis: Historical context
• Adivasi is the collective term for the indigenous peoples of mainland South Asia
• Modern Sanskrit word, coined in the1930s, from ādi 'beginning, origin'
and vāsin 'dweller' (itself from vas 'to dwell'), thus literally meaning ‘original inhabitant’
• Unlike the subjugation of the Dalits, the adivasis often enjoyed autonomy and,
depending on region, evolved mixed hunter-gatherer and farming economies
• In some areas, securing adivasi approval and support was considered crucial by local
rulers
• Larger adivasi groups were able to sustain their own kingdoms in central India. The
Meenas and Gond Rajas of Garha-Mandla are examples of an adivasi aristocracy
• From the very early days of British rule, the tribesmen resented the British
encroachments upon their tribal system
• Land and forest areas belonging to adivasis was rapidly made the legal property of
British-designated zamindars (landlords)
• Land dispossession and subjugation by British and zamindar interests resulted in a
number of adivasi revolts in the late eighteenth and early nineteenth centuries
‘Isolation’ in the past
• Adivasis generally live in remote forest areas, surviving mainly on the forest
ecosystem
• Often speak their own tribal languages, which makes communication with others
difficult
• What had once been self-contained and more or less independent tribes gradually
acquired the status of castes
• In many cases they entered caste systems at the lowest rung of the ladder
• There are some exceptions, such as the Meitheis of Assam who achieved a position
comparable to that of Kshatriyas
• Tribes who retained their tribal identity and resisted inclusion within the Hindu fold
fared on the whole better than the assimilated groups
• By and large tribal groups were not treated as ‘untouchables’
• Traders and money-lenders under the protection of the British administration
succeeded in acquiring large stretches of tribes' land
• The process of tribal marginalization began under the colonial rule
Scheduled Tribes
• Term coined by British administrators

• STs make up 8.6% of India’s population (Census, 2011)
• Negative stereotyping of adivasi groups as primitive, uncivilised and
unskilled
• This negative stereotyping is used to justify their exclusion from certain
services and economic opportunities
• Gap in literacy between STs and the rest of the population – only 59% of those
belonging to STs over the age of 7 can read and write compared with the
national average of 73%
Assimilation since Independence
• Assimilation likely to occur inevitably where small tribal groups are enclosed
within numerically stronger Hindu populations
• Christian missionaries/Vanvasi Kalyan Parishad
• Government of India adopted a policy of integration of tribals with the
mainstream aiming at developing a creative adjustment
• The Constitution has committed the nation to two courses of action in respect
of scheduled tribes:
▪ Giving protection to their distinctive way of life
▪ Protecting them from social injustice and all forms of exploitation and
discrimination and bringing them at par with the rest of the nation so that
they may be integrated with the national life
• Tribal Area Development Programme (TADP): except in NE
Adivasis and Indian Democracy
• Much of the poverty and degradation they saw, said the committee, was
the fault of us, the “civilised” people. We have driven [the tribals] into the hills
because we wanted their land and now we blame them for cultivating it in the only
way we left to them. We have robbed them of their arts by sending them the cheap
and tawdry products of a commercial economy. We have even taken away their
food by stopping their hunting or by introducing new taboos which deprive them
of the valuable protein elements in meat and fish. We sell them spirits which are
far more injurious than the home-made beers and wines which are nourishing and
familiar to them, and use the proceeds to uplift them with ideals. We look down on
them and rob them of their self-confidence, and take away their freedom by laws
which they do not understand
-(GoI 1960:20, Report of the Committee on Special Multipurpose
Tribal Blocks)
Adivasis and Tribes of NE
• The tribals of peninsular India are the unacknowledged victims of six decades
of democratic development- continued to be exploited and dispossessed by the
wider economy and polity (Guha, 2007)
• Out of 85 million Indians who are officially classified as ‘Scheduled Tribes’,
about 16 million live in the states of NE
• Tribes of NE differ from their counterparts in other parts of India in several
ways:
• Until recent past, more or less untouched by Hindu influence
• Exposed substantially to modern English education- high literacy rates
• Largely exempt from the trauma caused by dispossession through dams
and mining
• ‘Adivasi’ is not a word that is generally used to describe a Naga or a Mizo but
to a Gond, or a Bhil or an Oraon
Adivasis, Development and Dispossession
• Internal differences among Adivasis but some commonalities:

• Generally inhabit upland or forest areas
• Generally treat their women better than caste Hindus
• Rich traditions of music, and dance
• Rituals and traditions centre around local deities and spirits
• From the perspective of Indian democracy what unites the Adivasis is not their
cultural or ecological distinctiveness but their social and economic
disadvantage
• Policies of government have more actively dispossessed very many adivasis of
their land and resources- in the name of development (dams, mines, forestry)
• Estimate ranges from a few million to as many as 20 million who have lost their
homes and livelihoods (Guha, 2007)
Underrepresentation in government jobs
Why have some tribes done better than others?
(Xaxa, 2001)
• Among tribes, there are some that have done better in comparison to other tribal
groups
• Interesting to explore as to what accounts for such differences in case of groups so
found
• Tribal communities that have done relatively better than the others are the Meenas of
Rajasthan and oraons of erstwhile Bihar and Madhya Pradesh
• The Meenas and the Oraons with a population ranging between two and three million
each are smaller than the groups as the Gonds, Bhils and Santhals
• What seem to account for better representation of the Meenas in the government
services is that the Meenas was a fairly differentiated community
• As lords/ zamindars, many lived off land as extractors of rent. Also, as lords, they
were in more regular interaction with state authorities
• Provision of reservation gave an added advantage to the members of the Meena
community
• Once such processes were set in motion within the community, the not so privileged
too began to take the path set by the more privileged from within the community
How can ‘beautiful’ be ‘backward’? (Maharatna, 2011)
• The notion/identity of “tribes” is particularly complex in the Indian subcontinent,

where indigenous/primitive inhabitants were neither eliminated, nor quite
absorbed, by the rising civilisation
• Despite substantial accumulation of literature (official and non-official alike) on
the (relative) vulnerability of tribes, despite “countless” laws enacted for
protecting their rights, and despite about half the country’s mineral and forest
resources belonging to “tribal areas”, they remain the “most underdeveloped
community” (Jones 1978: 41)
• High levels of female autonomy and gender equity: Better sex-ratio, low infant
mortality, no dowry and no child marriage
• Thus ironical to brand tribes as ‘backward’ or not being ‘civilised’
Why are forest rights an issue for tribal
communities?
• Adivasis rely on forests for their livelihoods. They hunt, fish and collect
forest produce like wood, fruit and nuts to sell or use themselves
• Back in 1920 the Indian Forest Act was passed, making all forest land
government-owned. This meant that adivasis became “forest offenders”
and had to apply for permission to use the forest
• In 2006, the Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act was passed (otherwise known as the Forest
Rights Act or FRA), overriding the Indian Forest Act
• However, illiteracy is high within tribal communities, so without help, it is
impossible for them to fill out the necessary paperwork to claim their
rights
• Even for those communities and individuals who have applied for their forest
rights, decisions can take a long time
Tribal Communities and Forest Rights
• The FRA Allows those who live in forested areas, and who earn their livelihood
from forested areas, to claim the legal rights to the forested land that they use
• FRA gives three key rights to members of Scheduled Tribes (STs) and others
who traditionally live in and off forests:
• Rights to the forest land that they live on and cultivate, as long as they
have been doing so since before 13 December 2005
• Rights to own, access and use grazing grounds, water bodies and
minor forest produce in forest areas
• Rights to protect, regenerate and conserve community forest
resources including wildlife and biodiversity
Role of PACS
• Without forest rights, adivasis do not legally own their lands and are
therefore under the constant threat of eviction
• Indeed, the forest inhabited by tribal people tends to be rich in natural and
mineral resources.
• This habitat is very attractive to outsiders like mining companies. In many
cases, this has led to the displacement of adivasi communities.
• PACS has been working on the theme of forest rights with 51 Civil Society
Organisation (CSO) partners in five states (Bihar, Chhattisgarh, Jharkhand,
Madhya Pradesh and Odisha) covering 41 districts
• PACS has been supporting communities to claim their forest rights and
entitlements under the FRA
Maoist rebellion in Indian heartland
• Feudal system and landlordism has led to extreme poverty for the landless,
marginal farmers, sharecroppers and agricultural workers (mainly dalits and
adivasis)
• Green revolution led to further exploitation of the poor agricultural workers by
rich landlords in eastern India
• Backlash by dalits and adivasi agricultural workers since the late1960s;
movement led by ultra left communist groups (e.g. MCC, PWG, CPI (Maoist))
• Maoist movement now spread in almost one-third part of Indian countryside
Maoist rebellion in India
• Unlike the New Farmers’ Movement led by rich-middle peasantry, Maoists

rebels claim to represent the interests of poor adivasis / landless agricultural
workers
• Leadership from lower middle classes (youth radicalised in colleges). Cadre
from the communities of poor peasants, landless and adivasis
• Aim is to dismantle the Indian state and create a more ‘progressive’ dictatorship
of the oppressed communities
• Militant and violent in nature - main targets of the rebels are police and
paramilitary forces, and local politicians
• Thousands of killings of rebels, civilians and paramilitary/police since 1980s
• Adivasis in Chattisgarh and Jharkhand caught in the violence of Maoist rebels
and counter violence of the state
Double tragedy in tribal India
• First tragedy is that the state has treated its Adivasi citizens with contempt and
arrogance
• Second tragedy is that their presumed protectors, the Naxalites offer no long-
term solution
• Vast majority of tribals caught in the crossfire: ‘Pressed and Pierced from both
sides, here we are, squeezed in the middle’ (cited in Guha, 2007)
Environment
Lecture 10
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
3 Ds of Development
• Democratisation (process of contestation)
− Elite capture
− Populist development rather than pro-poor development
• Decentralisation
− Decentralised management rather than actual deconcentration of power
− Decentralisation without accountability
• Devolution (actual deconcentration of power)

− Selective devolution of not so lucrative tasks
− Devolution without capacity and resources
Panchayat System: Evolution
• Caste panchayats in the past

• Introduction of democratically elected panchayats in the early 1950s
• Remained dromant in most states until 1980s
• Constitutional status granted in early 1990s
• Reservations of seats for women, SC, ST and OBCs
• More resources and functions being devolved
• Deepening of democracy in long run
• Social audits for accountability
Three tier system of rural local bodies in India
Zila Parishad
(District:10-15
blocks)
Panchayat Samiti
(Block: 15-20 villages)
Gram Panchayat
(Village)
Public Policy and Welfare Schemes in India
Evolution of Welfare Regime in India
• The welfare regime and social policy in India today have to be viewed in the context of
the overall orientation of and shifts in state policy since Independence
• Developmental and Welfare state was seen as essential to achieve the stated aims
of the ‘Directive Principles’ of State Policy - the removal of poverty, social justice, self-
reliance, and growth
• Different recipes and structures were debated and concretised in successive Five-
Year Plans
• Model of welfare and social security that the new state created for its employees was
to act as a standard as well as to ensure the loyalty of the emerging middle class to
the new state
• Not only were these regulations rarely implemented beyond the public and for white
collar workers, the proportion of citizen-workers who were able to avail of this model
remained relatively small and gendered
• The welfare regime became the patchwork of programmes
Evolution India’s Welfare Regime
• The nature of Indian federalism is also important in understanding the welfare regime
• States governments given the responsibility of many social sector policies but not
enough resources
• With this, one sees increasing differences in social policy between provinces, a
result of differential resources as well as varying politics and ideologies
• By the 1980s, the entrepreneurial classes no longer needed the infrastructural
support of the state and saw labour laws as an obstacle to their further advancement
• Since then, a neo-liberal economic strategy narrowly focused on the market and
growth continues to be advocated by the corporate sector
• Social welfare now receives recognition in terms of the idea of a safety net against
poverty rather than a means to social transformation and reduction of inequality
• After the neo-liberal reforms begun at the end of the 1980s, there was a further and
clear shift in advocating private sector expansion in health, education, and (other)
“social services” and denial of state responsibility in these areas
Growth versus Social Development
Emerging Social Policy Paradigm since 2004
• There were very few ‘universal’ components in the Indian welfare regime before 2004
• The few that were in place, as in health and education, were differentially, unevenly and
minimally available or not accessed by those who had the means to avail of private facilities
• Unlike in Europe, where all sections accessed public health and education institutions, in India
even the middle classes turned to private facilities, except in higher education and schools
(Central and Army Schools) and hospitals (eg. All India Institute of Medical Sciences)
• Thus, those who run the government have had little stake in ensuring and improving
government facilities
• Last two decades have been marked by a renewed focus on pro-poor social policies in India
under the two Centre/Left Congress/United Progressive Alliance (UPA) governments (2004-14)
• These social policies included:
• education programs (such as Sarva Shiksha Abhiyan)
• health insurance programs (such as Rashtriya’s Swasthya Bima Yojana, and now Ayushman Bharat
• several conditional cash transfer schemes such as Janani Suraksha Yojana
• rural poverty alleviation programs (such as Mahatma Gandhi National Rural Employment Guarantee
Act (NREGA) etc.
• Result of mobilisation and lobbying of various civil society organisations as well as some
recognition of the political spin-offs of earlier welfare programmes
Public versus Private Provision
• Idea that health or education is best arranged by enabling people to buy it from
private providers is contrary to the historical experience of Europe, US or Japan
• Conditional cash transfers (e.g. Latin America) are not a substitute of public
provision of basic services but act as compliments
• In India, state provision is largely missing from basic services and conditional
cash transfers can’t fill this gap
• Needless to say, direct provision of services by the state could be very
inefficient and also exploitative
• Restoring accountability of public sector most important
• Privatization is an alluring short cut but it may merely replace one serious
problem by another no less grave
Beyond ‘market phobia’ and ‘market mania’
• Limitations of market incentives and the need for public action in relation to
poverty is now well established
• Hard to think of any aspect of poor people’s lives in India that does not depend
in one way or another on public policy, and especially on ‘social policy’
• An initiative can be called ‘social’ in the sense of drawing on many societal
institutions- not just the market mechanism
• Cash payment of wages in creation of employment and purchasing power
through public works (e.g NREGA)
• But market based provisions have not been universally useful in primary
education, health care, water supply, sanitation etc.
Public Provision versus Cash Transfers
• PDS expensive, leaky, large transaction costs

• Case for replacing the PDS with a system of cash transfers
• But grounds for apprehension:
• PDS is or can be more than just income support. Some states are delivering
nutritious commodities pulses, cooking oil, fortified salt etc
• Income in kind is often used differently from income in cash
• Effectiveness of local food markets is questionable in India. Distance and
exploitative pricing is common in many parts
• Digital and financial inclusion not robust yet
• Real value of cash transfers may get eroded due to inflation
Targeting-based system of social support
• Not so long ago, ‘targeting’ was widely accepted principle of social policy
• Targeting is not in general a bad idea
• But India’s experience with targeting is far from encouraging, esp. PDS
• Large exclusion errors: About half of all poor households in India did not have a
BPL card in 2005
• Large ‘inclusion errors’: relatively well off households are on the list
• Self-selection works well in case of India: e.g NREGA
• But universal coverage is not a general formula for unconditional use,
nor a principle that can be applied in every domain in poorer countries
NREGA
• ‘Game Changer’, ‘Money Guzzler’, ‘Costly Joke’

• Initial excitement was overdone on both sides: high hopes of radical change in
power relations or of dramatic poverty reduction have not quite materialised
• Nor did the doomsday predications of financial bankruptcy or economic chaos
• Faulty implementation but enactment of NREGA was very significant
development in many ways
• NREGA made a radical departure by recasting public works in the framework
of justiciable rights
• Opportunity to curb gender inequality by providing opportunity to work outside
the house
• 50 million households have been participating every year since 2008-9
• Change in wage relations, particularly of casual labour
• Corruption: but at the same time lively laboratory for anti-corruption efforts
Health Insurance: Can it cure India’s failing public
health provision?
Environment
Lecture 11
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Lecture Outline
• Environmental Problems: Global warming and pollution

• Analysing Environmental Problems: Ecoscarcity and
Environmental Kuznets Curve (EKC)
• Environment and Development Debates (1950s-1970s)
▪ Environmental Challenges in the North
▪ Environmental Challenges in the South
• Rise of Global Environmental Politics (1980s- )
• Environmentalism of the Poor
• Environment and Transnational Corporations
Global Trends: Population, Economy, Fossil Fuel
Consumption, CO2, Garbage
Adapted from Higgins (2015). Economic Growth and Sustainability Figure 6.14. Oxford: Elsevier.
GROWTH, GROWTH, GROWTH

Global Warming
Disease burden caused by unsafe water
• Some 6,000 children die every day from disease associated with lack of access to safe
drinking water, inadequate sanitation and poor hygiene
• The average distance that women in Africa and Asia walk to collect water is 6 kilometers
Source: http://www.ensaa.eu/index.php/water-and-food
5
Severity of air pollution in India
Anlaysing Environmental Problem: Ecoscarcity argument
• Draws inspiration from Malthusian ideas (18th century)
• Population expansion as primary cause of ecological crisis

When human population grows out of proportion to the capacity of the
environmental system to support them, there is crisis both for humans, whose
numbers fall through starvation and disease-based mortality, and for nature,
whose overused resources are driven past the limit of self-renewal (Robbins,
2004)
• See the problem of environmental degradation more

acute in the developing world
The problems with this approach are several...
Critique of Ecoscarcity
• Very few people consume the majority of resources

• Annual Per capita energy consumption of a person living in India is 477 kg (of
oil equivalent) when compared to 7,956 kg for an American
RESOURCE India United States
Meat (kg) 4 122
Paper (kg) 4 293
Water (cubic meter) 588 1844
Who is overpopulated? Comparative per capita consumption

(Robbins, 2004)
Environmental Kuznets Curve
• At early stages of economic growth and industrialisation, environmental

degradation gets worse, but after a certain level of income per capita is
reached, the economy reaches a magical point where the trend reverses and
environmental quality improves (cited in Temper and Martinez-Alier, 2007)
• EKC theory:
▪ As citizens get richer, they begin to demand environmental goods such as clean water and
air
▪ As consumers reach a certain level of prosperity, their material desires are largely satisfied
and their consumption changes to include more “post material goods” or services which are
less environmentally damaging
▪ Technology and wealth accrued during the years of plenty allow you to clean up the mess
of generations past
• Do you find this convincing?
Environment and Development (1950s-1970s)
Period 1950s-70s very important for various reasons:

• Massive industrial growth in northern hemisphere
• For first time in human history, man able to go out of earth’s atmosphere and
take pictures of Earth
• Environment came to be cast in global terms
▪ Amongst developed countries US dominated scene, set agenda for environmental action
• Cold War created race for nuclear weapons and destructive chemicals
• Environment associated with poverty in ‘developing’ countries
▪ Developing nations getting anxious to ‘catch up’ with industrialised West and secure basic
needs for expanding populations
• Environment emerged not just in national politics in US and western Europe
but also in international politics and negotiations
Environment Challenegs in the North: 1950s-1970s
• Dominant thinking: State ownership the only way to preserve natural

landscapes
• Most US based analysts adopted a ‘population-resources-scarcity’ approach
▪ Paul Ehrlich’s famous book ‘Population bomb’ (1968)
▪ Ideas about ‘resource scarcity’ due to ‘overpopulation’ became very popular…. But history
proved them wrong!
• In the 1960s, a new element entered the US environmentalist thinking with the
publication of Rachel Carson’s Silent Spring (1962)
▪ Criticised indiscriminate use of pesticides
▪ President John F. Kennedy, convened a governmental panel to look into pesticides problem
11
Environmental Challenges in the South (1950s-1970s)
• Decolonisation--- Nation-building and Development

......New independent regimes often continued economic policies of
predecessors
• Colonial powers reoriented local economies toward mining, logging, and export
of cash crops (cotton, tea, peanuts etc.) with no environmental considerations
• Only available option was to increase production of a few cash crops or

minerals to raise income and exports
• Mining remained largely in the hands of multinational corporations even after

independence in most developing countries
• ‘Green Revolution’ through high yielding varieties of wheat and rice of Mexico
and Philippines respectively
▪ Successful but with severe side-effects
▪ New types of wheat and rice required large amounts of fertilizers and pesticides
▪ Use of chemical fertilisers in Asia increased thirty-eight-fold compared with a world average
of six-fold rise during this period
▪ Limited success in Asia and Latin America but condition deteriorated in Africa which
became a net importer of food crops
• Rise of grassroots environmental action in the 1970s in India (Chipko)
• Political and economic control of the resources in developing countries

enabled the industrialised world to live beyond constraints of its immediate
resource base
• China followed a policy called second-best technology throughout 1960s and

1970s
▪ Relied on 10-30 year old processes to build an indigenous industrial base cheaply without
foreign control
▪ Autonomy achieved through use of low cost energy but by taxing the carrying capacity of
the environment (Howard, 1993)
▪ 50 million acres deforested
• Overall, since 1950 about half of the world’s tropical forests destroyed and
three-quarters of clearance for agriculture
• Modern agriculture led to soil erosion due to extensive mono-cropping and

overgrazing
• Third World countries as dumping grounds for industrial waste

Origins of the Global Politics of Environment
• Environment cast in international terms after World War II

• Earliest examples: International Biological Program (1964-1975) and UNESCO’s Biosphere
Conference (1968)
• The UN Conference on Human Environment at Stockholm in June 1972
secured permanent arrival of environmental issues on international agenda
• The Stockholm conference was to provide framework for all human
environment problems, to identify aspects of environment that could be solved
through international cooperation
• Sweden’s emphasis on acid rain and side effects of industrial development
made Southern nations cautious about what industrialized countries intended!
• Tensions between industrialised and industrialising nations placed future of
conference in jeopardy-----agreement brokered by the conference secretary-
general Maurice Strong
Origins of the Global Politics of Environment
• Rather than just a pollution conference, the South succeeded in reorienting the
agenda for Stockholm towards the more contentious question of development
• USA emerged as leader in the conference
• Soviet Union initially participated in the preparatory phase of Stockholm
Conference but later on, along with entire Eastern Block, boycotted on the
issue of exclusion of East Germany...
• China saw the conference as an opportunity to position itself in the arena of
multilateral diplomacy
• Specific proposals the US made concerned the funding of international
environmental initiatives and the type of institutional mechanism to be
established in the UN after Stockholm
• The figure of $100 million as a US contribution transmitted to the White House in 1971-----
rejected as too high
The rise of global environmentalism (1980s onwards)
• 1980s and 1990s were the decades of great international turmoil

▪ rise and triumph of neoliberalism and capitalist globalisation, and a gradual shift from
bipolar world to unipolar world
▪ collapse of communism in Soviet Union - disintegration wars - significant redrawing of
international boundaries (especially in Eastern Europe and Central Asia) with wider
repercussions for environment and control of natural resources
• 1980s witnessed major industrial disasters (e.g. Bhopal Gas Tragedy) and
nuclear accidents (Chernobyl) and incidence of severe famines and droughts
in Africa (e.g. Ethiopia)
• 1990s saw some very big advances in scientific research (e.g. biotechnology;
genetic engineering)
• New scientific evidence generated during this period (e.g. global warming;
ozone layer depletion; biodiversity loss) demanded urgent global action
The rise of global environmentalism (1980s onwards)
• Process of politicisation of environment in the international arena started with

Stockholm Conference (1972) accelerated several international negotiations:
▪ World Commission on Environment and Development (WCED, Geneva, 1983)
▪ United Nations Conference on Environment and Development (UNCED, Rio de Janeiro,
1992)
▪ World Summit on Sustainable Development (WSSD, Johannesburg, 2002)
• Mainstream worldview of environment and development:
▪ ‘Same boat’ ideology- All in the same boat, no choice but to dialogue and co-operate
▪ ‘Slogan of ‘sustainable development’: there is no contradiction between ecological
sustainability and economic development
• Slow process of negotiating international agreements within the framework of
UN system poses important diplomatic and legal challenges
• North-South Differences; more recently rigid stand of the US
Paradoxis of “one-worldism“
• The titles of the reports produced by international commissions (e.g. Our

Common Future; Only One Earth) indicate an attempt to create ‘one-worldism’
on the issues related to environment
• Yet, irreconcilable differences between the North and the South as evident in
international negotiations on environment
• “When the rich chopped down our forests, built their poison-belching factories
and scoured the world for cheap resources, the poor said nothing. Indeed,
they paid for the development of the rich. Now the rich claim a right to regulate
the development of the poor countries. And yet, any suggestion that the rich
compensate the poor adequately is regarded as outrageous. As colonies we
were exploited. Now as independent nations we are to be equally exploited”
(Malaysian Prime Minister Mahatir Mohamad at the Rio Conference,1992,
cited in Gupta,1996)
Whose agenda prevail?
• Many North-South disputes boil down to conflicts over the transfer of financial
and technological resources
• Developed countries have been unwilling to put their hands in their pockets
• Big private corporations are reluctant to give up control of technologies
without economic or financial compensation
• Interesting case of ozone diplomacy
• The US government was encouraged to pursue its lead role in ozone
diplomacy after 1988 by the American chemical conglomerate Dupont,
which hoped to snatch competitive advantage over rival European
chemical manufacturers in the development of CFC alternatives (Carter,
2007)
20
Varieties of Environmentalism (Martinez-Alier and Guha,
1997)
• Northern environmentalism is a product of affluence – post-industrialisation

• But in developing countries, environmentalism emerged at a relatively early
stage in industrial process
• Environmentalism in developing countries cannot ignore issue of poverty,
social justice and access to natural resources
• Omnivores and Ecosystem people
• Environmental struggles pit “ecosystem people” who rely on their
surrounding environment against “omnivores” whose primary aim is
surplus production and export
• Control by omnivores ecological refugees
• No humanity without nature (Northern environmentalism)
• No nature without social justice (Southern)
Environmentalism of the Poor (Guha, 1997)
• Treats three case studies from India

• the foundational struggle of the Indian environmental movement, known as the Chipko
movement, in which peasants in Garhwal Himalaya resisted logging between 1973 in 1980
• the poster struggle of Narmada Bachao Andolan (NBA), one of the most famous anti-dam
movements in the world
• the resistance against Karnataka Pulpwoods Limited (KPL), a joint-sector company (owned
by the state and Harihar Polyfibres) monocropping eucalyptus in Karnataka
22
Corporate Greening or ‘Greenwash’
• Globalisation has concentrated corporate power by facilitating control over
specific markets
▪ In the mid 1990s, the five largest electronics companies shared 45 percent of the global
market
▪ five largest companies controlled 70 percent of the global market in consumer durables
• Critics of TNCs often accuse them of intentionally locating their operations in
areas with weak environmental regulations (e.g. pesticides and chemical
industries)
• TNCs have poor track record in oil, mining and logging (most polluting industries)
• In response to criticisms of their poor environmental practices in the late 1980s
and 1990s, many global firms began to “green” themselves
• Since then, a flurry of such voluntary codes established by industry (ISO1400)
• Industry coined the term “eco-efficiency” to refer to its new environmental
awareness
• Sustainability Certifications; Carbon Trading
Corporate Greening or ‘Greenwash’
• Critics of corporations argue that voluntary codes adopted by industry as
“greenwash”
• A phenomena where a company tries to convince consumers and shareholders
that it is environmentally responsible, where the purpose is more about image
than substance
• An example would be a company that was instrumental in producing chemicals
that destroyed the ozone layer now taking credit for “protecting” the ozone
because it no longer produces these chemicals
• Critics argue that nearly all of the examples of business adopting cleaner
production strategies have resulted from government regulatory pressure
• Critics claim that industry is just changing labels rather than truly changing
course
• Can we ensure sustainable development without changing consumption
pattern?
Environment
Lecture 12
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Lecture Outline
• What are NGOs? What do they do?
• Origins and rise of NGOs (North and South)
• Approaches to studying NGOs
• Some contentious issues: accountability; representation; relations with state
• Social Entrepreneurship
International NGOs: Popular Images
Popular Image of NGOs
• Advert for a new Chief Executive, ActionAid (Economist, 3 Oct 2009)
“ActionAid is an international anti-poverty agency …. We are a partnership,

between people in poor and rich countries, working with over 25 million of the
world’s poorest and excluded people to secure their rights to a life free of
poverty and injustice. We work with over 2,000 local partners and social
movements in over 40 countries and are supported by half a million donors
and campaigners. ActionAid has a unique vision and direction. It doesn’t
impose solutions, but actively partners with communities to strengthen their
own efforts to eradicate poverty in a sustainable manner.”has a unique vision and
direction. It doesn’t impose solutions, but actively partners with communities to strengtheown efforts to eradicate
• Reflects popular image of the NGO
• Based on ‘partnerships’ & real ownership by communities
• Able to reach the poorest of the poor
• Focus on social justice, rights, exclusion
• Supported by concerned individuals like you
• Campaigns for justice & tied into global social movements
INGOs, BONGOs, BINGOs, ENGOs, GONGOs, DONGOs, CBOs, FBOs
GROs…
What is an NGO?
‘Private,non-profit, professional organisations with a distinctive legal character,
concerned with public welfare goals’ (Clarke 1998)
‘Self-governing, private, not-for-profit organizations that are geared toward
improving the quality of life of disadvantaged people’ (Vakil 1997)
Most definitions focus on three key elements:
1.‘Independence’ from the state (non-governmental)
2.Not-for-profit (independence from the market)
3.Concern with people’s well being

The NGO Sector
• Operate at all levels: from the international to the very local and in every
conceivable arena of development
• NGOs have become key components of aid & development architecture since the
period of rapid expansion in 1980s
• NGOs are major conduits of official aid and development assistance

• 2008: $2.4 billion ODA channelled through NGOs
• NGOs are responsible for approximately one third of total overseas development aid
(Riddell, 2007)
• Some NGOs have become major donors in their own right

• Oxfam International spent $704.53 million in 2007
• World Vision International: $2.5 billion in 2008
How many NGOs are there ?
• UK has approximately 189,000 ‘charities’ with a total income of £46.9 billion

• 344 organisations work in ‘international development’
• US has approximately 350,000 ‘non-profit’ organizations, worth $1.3 trillion

• 564 organisations registered with USAID
• Tanzania: 8,000 NGOs are officially registered, but perhaps only 450 are
active
• Bangladesh has over 22,000 registered with the NGO Affairs Bureau
NGOs in India
Growth of Global NGO sector
Level of Operation
• International (‘Northern NGOs’):

• Work with policy-makers as well as partner organisations
• May have stronger focus on campaigning
• National:
• Focus on projects at national or district level
• Sector emerged largely in the 1980s as result of shifts in donor funding
• Some have become large-scale (and some campaigning)
• Community-based
• Tend to be small-scale, often limited in resources
• Based on particular group (geographic, ethnic, etc.)
Key Drivers of NGO action & policy
Driver Orientation Example

Underlying Religious or secular Impact on shaping overall policy &
Ethos strategy of organisation
Political perspective
Objectives Relief Humanitarian aid, disaster relief,
refugees, etc
Welfare Broad ‘development’ objectives, health,
water supplies, livelihoods
Activism Human rights, pro-democracy, anti-
corruption, challenging global trade rules
Approach Service delivery Providing key services to communities
(vertical delivery)
Empowerment Participatory approaches, building
capacity (horizontal engagement)
Willingness to work GO-NGO partnership
with state actors
Operational / non- Does it implement projects, or channel
operational funds to partners?
The Origins of NGOs
• Several points of origin
• Philanthropic / Christian mission movements of nineteenth century

• Co-operative movement in nineteenth century Europe
• New politics of solidarity amidst wars and conflicts
e.g. YMCA (1855); ICRS (1863); Save the Children (1919);

Plan International (1937); Oxfam and Christian Aid (WW2); World
Vision (Korean War)
• NGOs in the former colonies developed with the rise of nationalism

(mainly ‘self help’ and cooperative associations and professional
associations concerned with civil liberties and freedom)
From Relief to Development
• 1960s and 1970s: shift from a relief to a development-oriented approach
• New focus on how to prevent disasters occurring in the first place (Freedom from
Hunger Campaign)
• Emergence of radical social movements & ideologies [liberation theology (Latin
America), Gandhian ideas (South Asia), concerns with gender, environment,
appropriate technology etc.]
• ‘Alternative development’ led by NGOs in the South
• Northern NGOs increased their involvement (funding & running) in

specific interventions
• Initiated small-scale projects

• Linked up with organisations in developing countries
• Beginnings of anti-poverty campaigns
The Contracting Era
Shift from ‘alternative’ to ‘mainstream’
• 1980s:Dominance of Washington Consensus & rolling-back of the state

under SAPs
• Donors saw NGOs as a more efficient conduit for distributing aid & ensuring it
met the needs of the poorest
• Led to huge increase in number of NGOs
• Expansion especially big in developing world: rise of ‘Southern NGOs’
• But expansion of sector was based on funding from donors:

• Increased reliance on donors (instead of voluntary contributions)
• NGOs were being used to bypass the state & privatise services
Civil Society Actors
• 1990s: rise of good governance agenda
• Renewed focus on the state as agent of development

• But a particular type of state: democratic, open, transparent, etc
• Required strong civil society to enable democracy to take root
• Role of NGO reconceptualised as core member of civil society: NGOs as ‘magic

bullet’ (Vivian 1994)
• Monitoring & holding government to account

• Protecting & promoting human rights
• Articulating needs of the poorest
• Backlash against NGOs by late 1990s

(accountability, legitimacy, effectiveness, autonomy etc.)
International Development Approaches, 1950-2000
(adapted from Chabbott 1999)
Decade Development Role of International NGOs

Approaches
1950s National Planning, Minor: emergency relief
Industrialization and
Community
Development
1960s Economic growth Limited: technical assistance, schools and
hospitals
1970s Equitable growth; Limited: small-scale rural social service
poverty alleviation, delivery and development advocacy
basic human needs
1980s Structural adjustments Significant: social service delivery to the poor
and social dimensions
of adjustment
1990s Sustainable Major: development and dissemination of

development environmentally sound innovations
Late 1990s Good governance Influential: advocacy, policy influence, making
onwards state accountable, achieving MDGs
Approaches to understanding development NGOs
(Lewis and Kanji 2009)
• NGOs as ‘democratization’
Help in the deepening of democracy through citizen participation and voice in policy
• NGOs as ‘privatization’
Work with business as ‘non profit actors’ and with governments as contractors for service
delivery
• NGOs as ‘developmentalization’
Part of development industry; extensions of official and private donors
• NGOs as ‘social transformation’

Vehicles of alternative ideas about progress and change
• NGOs as ‘charity’
Key actors within an international system of charitable giving
To whom are NGOs accountable ?
• Legally
• NGOs are subject to laws in home & host countries
• But generally relate to administrative (tax, etc.) details
• Institutionally
• Donors: generally limited to questions of finance
• Donating public: interests vested in board or trustees, but do these adequately
challenge NGO decisions?
• Accountability to communities & partners

• Are INGOs accountable to their partners?
• Where do communities go to challenge actions of an NGO?
• How real is participation if NGOs will only fund projects that fit in their vision?
What about power relations?
NGOs and State
• NGOs are conditioned by and gain much legitimacy from relationship with
government and the nature of the state
• NGOs can oppose/ complement/ reform the State but cannot ignore these
• Government attitudes to NGOs vary place to place and change with successive
regimes (active hostility ……. active courtship)
• State may be threatened ~ NGOs reveal State’s “inability to deliver” and often
“compete for the same resources”
Representing the poor or what NGOs think is best
for the poor ?
• How real is the assertion that NGOs speak for the poor on the
national & international stage?
• Are NGOs able to capture all voices within a community?

• Even local CBOs are likely to be drawn from an elite
• Communities are not monolithic: whose voices take priority?
• There is a critical difference between:
• Representing the stated demands & wishes of a community
• Representing the interests of a community
But… generalized criticisms against NGOs need to be avoided

State-NGO blame games!
Mismatched needs (?) NGO legitimacy (?)

Take away points…
• NGOs are difficult to define and categorize in straightforward ways
• NGOs have been around for many decades but they became important actors
in development in the 1980s
• Rise associated with both the growth of neoliberal policy agendas & the
emergence of alternative development ideas and practices
• Criticisms against NGOs need to be context / case specific
• NGOs are often portrayed as a better form of development organisation: Closer

to the communities; flexible approach; cost-effective; pursuing alternative model of
development
…but realities can be more complicated
Entrepreneurs and Developmental Challenges
• Tradition of Charity
▪ Ford Foundation or Tata Trusts classic examples
▪ Bill & Melinda Gates or Azim Premji Foundation recent examples
▪ Mainly financial support to make people’s life better
• Rise of Philanthrocapitalism
▪ Need for philanthropy to become more like the for-profit enterprise
▪ Two essential features (The Economist, 2006):
o First there must be something for philanthropists to “invest” in—something
that, ideally, will be created by “social entrepreneurs”
o Second, philanthropists themselves need to behave more like investors.
Some might operate as relatively hands-off, diversified “social investors”
and some as hands-on, engaged “venture philanthropists”
Social Entrepreneurs: why important for
development?
• State and NGO sectors can’t solve all the problems effectively
• Poor management and lack of innovative thinking
• Most global problem requires local and tailor-made solutions
• Social entrepreneurs work with problem-solving approach
▪ Teach for America/Teach for India
▪ Several examples in health and hygiene areas
• Service to poor do not turn into poor services
• Social enterprises are potentially more sustainable in the long run
• Social entrepreneurs are not an alternative to the state or NGO
sectors: need for learning and sharing
Social Entrepreneurship: Indian context
• State most important player in the arena of development

• Global trend of ‘rolling back the state’ from early 1990s
• Conventional NGOs mainly implementing state-sponsored programmes
• Rapid increase in microfinance in the past decade or so; not so encouraging
• But…none of these leading to inventions or new thinking about solving
societal problems; here comes the role of social entrepreneurs
• Self Employed Women’s Association (SEWA); Dabbawalas in Mumbai
• Ashoka, Schwab Foundation for Social Entrepreneurship, Skoll
Foundation and other organisations (e.g. NDTV) promoting social
entrepreneurial initiatives
https://www.ashoka.org/en, http://skoll.org, http://www.schwabfound.org/
• Social entrepreneurship growing field with great potential!
Social Entrepreneurship: Training and Support
• Social entrepreneurship is not simply ‘non-profit’ but increasing the

‘performance capacity of society’ (Drucker)
• Part of a trend among elites in many countries who just do not want to make
money but make a “difference”
• Money may not be as big as in business but a bright student would make much
more significant difference even in non-profit sector
• Need to bring together philanthropic capital markets, social entrepreneurs and
researchers
• Incubation centres (e.g. IIMU)
• Can social entrepreneurship be learnt formally?
▪ Harvard Business School in the mid-1990s
Some food for thought…
• Can small initiatives add up to make a big difference?

▪ Socially aware youth: largely missing in our management/tech institutions
• How to create a virtuous circle of development-oriented research,

philanthropic capital and social enterprise to counter the vicious cycle of
poverty and deprivation?
Environment
Lecture 13
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Religious Minorities
• The Indian Constitution makes no attempt to define or comprehensively list the

groups to be regarded as minorities
• Religious minorities, linguistic minorities, ethnic minorities etc.
Constitutional Provisions
Communal Violence
• History of communal violence post-independence

▪ Rise of vigilante groups in the recent times
▪ Several states (Odisha, Madhya Pradesh, Arunachal Pradesh,
Chhattisgarh, Gujarat, Himachal Pradesh and Rajasthan) have passed
freedom of religion legislations aimed essentially at preventing people from
converting to Christianity and Islam
• Post-violence justice and rehabilitation seem beyond a victim’s reach in most
cases
• Poor investigation system, lengthy trials and very high acquittal rate
The menace of communal violence
Under-representation in police and parliament
Poverty
Poverty and denials
Literacy Rate
Representation in Public Sector and Personal Law
Boards
Minorities in Business: a brief history 1
(Damodaran, 2008)
• Traditional Muslim business gentry is mainly recruited from three commercial

communities of the Sindh-Kutch—Kathiawar region: the Memons, Khojas and
Dawoodi Bohras
• Other significant Muslim business community was the Chinioti Sheikhs- (converts from
Khatris and Aroras) and the Konkani Muslims (descendants from Arab merchants)
• In early 19th century quite a few Konkani Muslim families migrated to Bombay and
made fortunes in cotton exports to China in partnership with Parsis
• Originally from Sindh, the Memons first migrated to the Kutch-Kathiawar region of
Gujarat and settled into small towns of Bhuj, Rajkot and Porbandar
• Forged long-distance mercantile connections covering the entire subcontinent by the
first half of the 19th century, just as the Marwaris had done earlier
• Memons came to dominate the entire rice trade of eastern India from Orissa to Burma
• Established diasporic networks extending beyond India to the [posts of the Red Sea
and Persian Gulf, East and South Africa, Ceylon,, China and Far East
(Damodaran, 2008)
• Despite enormous wealth accumulated through trading, Musim merchnats rarely

invested in manufacturing industry in British India
• A notable exception was Currimbhoy Ebrahim, a Khoja merchant who founded
Currimbhoy Mills in 1888, biggest India-owned business house after the Tatas
• Other notable industrialist was Adamjee Haji Dawood who set up Asia’s largest match
factory in Rangoon in 1922 and a number of jute mills.
• The nizam of Hyderabad in 1929 founded Industries Trust Fund to promote industries
in the State; benefited capitalists like Mir Laiq Khan and Abdulkarim Babu Khan
• But general Muslim indifference to industry by the 1940s- saw Congress as party
harbouring Bania-Marwari business interests
• After partition, huge vacuum in the money market of Pakistani Punjab; Khojas and
Memons were the early birds to have capitalized on this gold rush
• Unlike Pakistan, Muslim entrepreneurship in India is far from dismal!
• That illustrates the pluralistic and secular traditions of India
(Damodaran, 2008)
• Wipro: Azim Premji (India’s third largest IT company)

• Habib Fakhruddin Khorakiwala: Wockhardt Limited (pharmaceutical)
• Siraj Lokhandwala (leading Construction company)
• Among Memons, Abdul Razzak Allana (Indian’s top exporter of agri and processed
foods)
• And many more from meat export to real estate and logistics to retail
• Post-independence period witnessed widening of the base of Muslim entrepreneurship
beyond the old Gujarat-Sindhi merchant groups to include communities such as
Qureshis and Ansaris in UP and Malabar Muslims or Moplahs of Kerala
• Many businesses in UAE and Gulf and east Africa owned by Muslims from Kerala
• Among Christians, the most prolific are the Syrian Christians of Kerala
• There is no corner in India (and abroad) where one doesn’t find nurses, teachers, and
high end professions from their ranks
• Also in banking and finance (e.g. Muthoot Finance)
Quote from “Being the Other: The Muslim In India”
By Saeed Naqvi, Aleph Book Company, 2016
In Allahabd university, during the Babri Masjid Ram

Janmabhoomi agitation, I put a simple question to the
packed audience consisting of teachers and students,
almost equally divided between Hindus and Muslims.
‘Have the Hindus in this audience ever seen the inside
of a Muslim home?’ One or two murmured ‘my father
knew Persian’ or ‘my mother cooked chicken’ as
evidence of his emancipation from religious
parochialism. But, no, none of them had ever been to a
Muslim home. Likewise, the Muslims in the gathering
had never visited a Hindu home. At that moment, a
truth hit me between my eyes. We have lived in a state
of uninstitutionalised apartheid for decades, even
centuries.
Muslims: From rulers to “backward” citizens?
• From 11th Century till the dawn of British rule and much thereafter as Princely
states Muslims ruled large parts of India
• Historically, have held positions of power and privileges
• There is every evidence of abundant talent pool among Muslims:
▪ MC Chagla, Hidaytulla and Baig in judiciary;
▪ APJ Abdul Kalam in science;
▪ Zakir Hussain among others in education;
▪ Bade Ghulam Ali Khan, Bismillah Khan, Amjad Ali Khan, Zakir Hussain in classical music
▪ Azim Premji (Wipro); Khwaja Abdul Hameid (Cipla) in industry
▪ Hindi Film industry dominated by Muslim artists and directors
▪ Vibrant workmanship: carpet, glass bangle, embroidery, mechanic, metal work etc.
• Why has the average Muslim family gone down in stature in absolute and
relative terms?
• What are the systemic solutions that will lead to improving the wellbeing
of Muslims in India?
Social Exclusion
What is exclusion?
• Exclusion is defined as the processes by which individuals and population groups face barriers
in relation to their access to public goods, resulting in inequitable social attainments,
capabilities, development, justice and dignity outcomes (CES, 2014)
• Social exclusion or social marginalisation, is the social disadvantage and relegation to the
fringe of society
• Social exclusion exists in all arenas: from urban housing to schools to everyday interactions
• Bonded labourers and manual scavengers among the most excluded groups in 21st century
India
• Bonded workers toil for exploitatively long hours, get paid extremely low and irregular wages
and are blocked (often forcibly) from changing their employers in search of better work
conditions
• Approx 10% of labour force works under conditions of bondage in India today (Breman)
• Apart from agriculture, where both traditional and newer forms of bondage co-exist, bonded
labour is now also found among workers in a wide range of nonagricultural sectors:
▪ stone quarries, brick kilns, sex
▪ workers, fishermen, forest labourers, bidi workers,
▪ carpet makers, weavers, head loaders and children
▪ in match and firework factories, among others
Most Excluded Communities
• Musahars in Bihar and Eastern UP

▪ Unable to escape the trap of desperate poverty from
generation to generation
▪ For instance, female literacy among the Musahars is a
shockingly low 2 per cent (9 per cent for the community as a
whole)
• Manual scavengers and sewer workers in India
engaged in most undignified work
• Approx 1.3 million manual scavengers across India
• Every year hundreds of scavengers die due to hazardous
work
• Manual scavenging was banned 25 years ago with the
passing of the Employment of Manual Scavengers and
Construction of Dry Latrines (Prohibition) Act, 1993, but it
continues…
Environment
Lecture 14
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
North East at a glance
• Culturally extremely diverse – out of
some 450 tribes in India over 200
come from this region, speaking 325
different dialects
• Moist to wet tropical evergreen

forests; oil and natural resources;
huge potential for hydro-power
• Formation of states:
▪ Assam:1947
▪ Nagaland: 1963
▪ Meghalaya, Manipur and
Tripura:1978
▪ Arunachal Pradesh and
Mizoram: 1987
What the figures did not say…
• The Northeastern region is

culturally diverse and politically
very complex
• The region has a contentious

past – insurgency movements
in Nagaland, Manipur,
Mizoram, Assam, and Tripura
• The region continues to have a

contested present
NE: Alienation and Migration
• Major effort of colonial system was not to protect the tribes or upland people
but to protect the extraction and plantation industries
• In the process they kept the hill groups at a great distance from plains
communities and the mainland keeping normal interaction to the minimum
• Made hill districts feel they were separate and different
• No or little identification with the mainland India
• Severe lack of economic development and opportunities in the post -
independence period
• At the turn of the last century, NE from being a migrant-receiving region,
became migrant-producing region for the first time in centuries
• Sadly, there is nothing in the Indian education system that teaches anything
about this vast region in a sustained manner
Insurgency in NE
• At one point, more than 120 militant groups operated in India’s northeast
• In recent years, the Indian government has had some success in achieving
stability in the region, using tactics from negotiations to military operations
• Militants in India’s northeast once enjoyed vast popular support in their
formative years:
• voiced genuine grievances of the people such as poor governance, alienation, lack of
development and an apathetic attitude from the central government
• Over the years, militant groups have successfully transformed themselves into huge
abduction and extortion rackets; drug trafficking and arms dealing
• collecting regular contributions from the public, government servants and business houses
• A strong military presence has been the feature of all the militancy-affected
states in the region
• In states like Manipur, militants have been able to carve out vast stretches of
“liberated zones” where only their laws and dictates hold sway
• Strong nexus of politicians, bureaucrats, businessmen and contractors
NE region has deficit of power/telecom
Access to safe water/specialist doctors
Small Scale Industries in NE
Key Challenges
• Ensure that any developmental

activities benefit local people in the
Northeastern region
• Low connectivity with the rest of
India is perhaps the greatest
economic impediment in the region
(air, road and inland waterways)
• Civil unrest associated with conflicts
between and within some of the
region’s states
• International connectivity esp.
Bangladesh (access to seaports)
Northeastern Region Vision 2020
• Empowerment of people by maximising self-governance and participatory

development through grassroots planning
• Creation of development opportunities for a majority of the people living in
villages through rural development initiatives (horticulture, organic farming,
high value crops)
• Developing sectors with comparative advantage: agro-processing
industries, tourism (adventure and high value), power generation
• Capacity development of people and institutions: hospitals and medical
colleges, technology and engineering colleges etc.
• Creating a hospitable investment climate: trade with neighbors
• Investment by both public and private sectors
The Conflict in Jammu and Kashmir
J&K, PoK and CoK
Kashmir Conflict Timeline
• 1939: The National Conference launches the ‘Quit Kashmir’ movement

demanding abrogation of the Treaty of Amritsar and a call of freedom
• 1947 (Mar): An internal revolt begins in the Poonch region but is suppressed by
the Maharaja’s forces
• 1947: Kashmir signs the Standstill Agreement with Pakistan. The Maharaja
delays his decision to accede into either India or Pakistan
• 1947 (July-Aug): Hindu migrants from Punjab arrive in Jammu; shared
horrifying stories of massacre; widespread killings of Muslims in Jammu
• 1947 (Oct): Indo-Pakistani War of 1947: Thousands of Pashtuns from
Pakistan’s North West Frontier Province attack Kashmir
• 1947 (Oct): Maharaja signs a treaty of accession with India. Sheikh Abdulla was
released from prison and made caretaker Prime Minister
• 1948 - India raises Kashmir in the UN Security Council, which in Resolution 47 calls
for a referendum on the status of the territory
• The resolution also calls on Pakistan to withdraw its troops and India to cut its military
presence to a minimum
• A ceasefire comes into force, but Pakistan refuses to evacuate its troops. Kashmir is
for practical purposes partitioned
• 1951 - Elections for Constituent Assembly in the Indian-administered state of Jammu
and Kashmir. The Assembly backs accession to India.
• January 1952 – June 1952: Jammu Praja Parishad renewed agitation and called for
the full integration of the state with India.
• January 1952 – June 1952: Sheikh Abdullah veers around to the position of
demanding self-determination for Kashmiris, having previously endorsed accession to
India
• May 1953: Jana Sangh leader Syama Prasad Mukherjee made a bid to enter Jammu
and Kashmir, citing his rights as an Indian citizen
• August 1953: Sheikh Abdullah was dismissed by Sadr-i-Riyasat and later arrested.
Bakshi Ghulam Mohammed was appointed as the new prime minister
• February 1954: The Constituent Assembly, under the leadership of Bakshi Ghulam
Mohammad, passed a resolution ratifying the accession of Kashmir to India
• August 1955: Sheikh Abdullah's lieutenant Mirza Afzal Beg formed the Plebiscite
Front to fight for the plebiscite demand and the unconditional release of Sheikh
Abdullah
• 1957: Elections were held for the first Legislative Assembly. National Conference won
69 of the 75 seats, where 47 seats were unopposed
• 8 April 1964: The government dropped all charges in the Kashmir Conspiracy
Case. Sheikh Abdullah was released after 11 years
• August 1965 – 23 September 1965: Indo-Pakistani War of 1965: Pakistan took
advantage of the discontent in the Kashmir Valley and sent a few thousand armed
Pakistani infiltrators across the cease-fire line
• 1966: Kashmiri nationalists Amanullah Khan and Maqbool Bhat formed another
Plebiscite Front with an armed wing called the Jammu and Kashmir National
Liberation Front (NLF) in PoK
• 1972: India and Pakistan agreed to respect the cease-fire as Line of Control (LOC)
• 24 February 1975: The Indira-Sheikh accord was reached between Indian Prime
Minister Indira Gandhi and Sheikh Abdullah
• Sheikh Abdullah assumed the position of Chief Minister of Jammu and Kashmir
• May 1977: Jammu and Kashmir Liberation Front (JKLF) was founded in the United
Kingdom by converting the UK chapter of the Plebiscite Front
• 1980: Overt support of Pakistani army to Kashmiri nationalists in PoK for armed
struggle
• 8 September 1982: Sheikh Abdullah died. His son, Farooq Abdullah, later assumed
office as Chief Minister of J&K
• 1984: The Indian consul general in Birmingham, UK, Ravindra Mhatre, was abducted
by JKLF militants and murdered. India executed Maqbool Bhat.
• 1987: Farooq Abdullah won the Assembly elections. The Muslim United Front (MUF) alleged
that the elections had been rigged. The insurgency in the Kashmir Valley increased in
momentum following this event.
• The MUF candidate, Mohammad Yousuf Shah, a victim of the rigging and state's mistreatment,
took the name Syed Salahuddin and would become chief of the militant outfit Hizb-ul-
Mujahideen
• 1988: Protests and anti-India demonstrations began in the Valley, followed by police firing and
curfew
• 1989: The end of the Soviet occupation of Afghanistan released a great deal of militant energy
and weapons to Kashmir
• January 1990: Jagmohan was appointed Governor. Farooq Abdullah resigned
• March 1990: Most of the estimated 162,500 Hindus in the Valley, including the entire Kashmiri
Pandit community, fled the Valley
• 1990-98: Peak of militancy in Kashmir; heavy army deployment
• 1998-present: sporadic violence and periods of unrest; NC, PDP taking turns to run
government; rise of Hurriyat Conference
• Who controls Kashmir?
Can we solve Kashmir Issue?
• Is there a military solution?
• Can it be solved without involving Pakistan and Kashmiri separatists?
• What are the aspirations of Kashmiri youth? Can Kashmir gain its lost glory
(and trade and industry)?
Environment
Lecture 15
MBA Term 3
2018-19
Dr Saurabh Gupta
Dr Ajit Kanitkar
Ms. Jayapadma RV
Tips for End-Term Exam
• End-term Exam (60%):

▪ 2 hours duration
▪ Answer any six out of eight questions
▪ Essay type answers; develop the habit of writing using hand (laptops are not allowed)
▪ Tip: Read news paper editorials to understand how argument is formed and presented
▪ Lecture slides and core & supplementary readings should suffice to answer
• Sample exam question:
Why is it important for business managers to understand social and political
environment? What are India’s major achievements as well as pitfalls since
independence, and why?
• Make sure you answer each part; do not use bullet points; and give
examples wherever necessary!

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Indian Social and Political

Natural Resources Management Agricultural Transformation

State, NGOs and Civil Society Food Security

• How many of you come from non-engineering and non-sciences

• Domain of human life which pertains to acquisition of resources, their

Independent judiciary and military absence Substantial population in extreme poverty;

Territorial integrity and no major secession Persistence of forms of insurgency in some

Food self-sufficiency and surplus foreign Child undernourishment and affordable

Growth in service sector Manufacturing; ‘jobless growth’

7 28 Jan Education, Employment and Informalisation of SG/JP

• Readings: Core (study pack) and Supplementary (soft copies)

• Documentary viewing on 15th Jan, 2:30 pm (Auditorium)

Is diversity an asset or a liability

• Feudalism to adult franchise

• Land Reforms and Democracy

• Caste, Class and Power

• Sanskritization and Westernization (emulative change)

• Rise of Sub-cultural Identities

• Urbanization and Demographic Shift

▪ Urbanization has been happening at rapid pace in India

• Linguistic Identity (Session 3)

• Change in Gender Relations (Session 8)

• Upsurge of Hindu Identity (Session 13)

• Media Reach and Digital Revolution (Session 15)

• Stratification: System by which a society ranks categories of people in a

• Reach of social policy significantly expanded in recent years

• School participation in India has risen rapidly in the last 20 years

• Addressing this question involves engaging with a series of questions:

• Caste declining as a hierarchical system but reinventing as an identity in modern competitive

• Characteristic features of Indian polity

• The word polity encapsulates a vast multitude of organizations many of which

▪ “Reasonable Restrictions” on these rights may be imposed for short periods

-Intervention by Shri Balasaheb Khardekar (MP, Kolhapur-cum-Satara, SC),

• The business of the Government is transacted by what is commonly known as

• 1947: India gains independence from British rule

• 1954: Jammu and Kashmir’s accession to India is ratified by the state’s

• 1965: India’s second war with Pakistan over Kashmir

• 2002: Communal violence breaks out in Gujarat after a coach of

• Formal: Regular elections but people have less influence in governance

• Dominated by Congress Party in the first two decades after Independence

Is India’s linguistic diversity a boon or a curse? Should

• Political Economy of India since Independence

• Political economy most commonly refers to interdisciplinary studies drawing

• Interface of economic activities and political system

Source: Basu, 2018

• Period of slow growth (1947-74)

• Rapid development of heavy and capital goods industries in India, mainly in

• Nehru was not entirely averse to the private sector:

• Nationalization of private sector assets in areas such as insurance, banks,

• In 1975 a special Cabinet Committee was formed for export promotion

• The period of domestic deregulation witnessed the emergence of the software

• Trade, investment and infrastructure reforms of 1991, even though they

▪ Instead of moving swiftly from import-substitution industrialization to export led

• What is the nature of corruption? (Khan, 2006)

• Very important for poorer countries

• Very important when the now developed countries were developing

• For food security provision (1 bn hungary people!)

• Positive: Hard-working, nature-loving, strong community ties, repositories of

Value of Food Exports

1 United States $149,122,000,000.00

All Images: © The Hindu

Source: National Sample Survey Organisation (NSSO), 2014

Source: Times of India, April 2, 2015

• No matter which way one looks at it, as owner cultivators or as landless