Is inequality disappearing?

Globalization and inequality Three views Globalization has reduced inequality Globalization has caused inequality Globalization not to blame for inequality, domestic policies are to blame

Not globalization The main argument is that globalization impacted states in accordance with what existed before So, China was able to reduce poverty faster than any other nation because it already had low levels of inequality in land ownership and education Other states have not because was existing inequalities

In other words… Globalization has increased existing inequaliities? Has helped reduce poverty? Relationship between inequality and poverty?

China #2 economy Total GDP 5.87 trillion per capita income $3,600 last year – less than a tenth of Japan's ($37,800) 64 billionaires

With globalization China’s productive capacity has increased tremendously (how exactly?) Consumption capacity has not increased commensurately (why exactly? ) Video # # #

Type of inequality In China – economic, rural/urban In India – economic, social, ethnic, religious, gender

8 India’s society: some basic facts 1. 3 billion people 8 different religious groups. 82% Hindus,14% Muslims Hindus have a hierarchical social organization, known as caste 122 recognized languages; many other dialects 672 million voters, 230 parties

9 Basic economic facts 70% survive on agrarian incomes 93% work in the informal sector 80% live in under $2 a day 42 million live in slums 2 million are homeless 90 million are marginal workers

10 The tradition of caste Sudra (manual and menial labourers) Untouchables, now called Dalits (the downtrodden) Brahmin (producers of knowledge, particularly theology and interpretation of religious texts (Khsatriya (ruling classes/ political elites/warriors) Vaishya (business classes)

11 Traditional role of caste prevent social mobility ensure a supply of manual workers prevent social equality

12 What happened at Independence The constitution was drafted by Dr. Babasaheb Ambedkar. It became illegal to discriminate on the basis of caste or religion Untouchability was abolished by law Untouchables came to be categorized as Scheduled Castes More faces of discrimination

13 ST and OBC Another category of Scheduled Tribes were also recognized by the constitution. These are primarily indigenous communities known as Adivasis A third category called the Other Backward Classes (OBC) – communities listed by the government who have suffered systematic patterns of disadvantage but are not included in the Scheduled Castes or Tribes. They can be in any religion.

14 SC, ST, OBC Scheduled Castes (SC) 16.8% Scheduled Castes (ST) 8% Other Backward Classes 27% (or more) Even with conservative estimates, it appears that more than 50% of India’s population suffers systematic disadvantage and depravation

15 Inequality across religion The British left a highly communalized polity, scarred by the partition In India, the Muslim community found itself depleted of its middle class (who left for Pakistan) The community was left with a rather sharp divide between its upper classes and its lower classes

16 Situation of Muslims (1) The literacy rate among Muslims is substantially below the national average (59% as opposed to 65%). Only 3.4 per cent of the Muslim population obtains graduate degrees In the elite civil services, Muslim representation is no more than 4 %

17 Situation of Muslims (2) Muslims have the second highest levels of poverty with 31 % below the poverty line. Incidence of poverty among urban Muslims is the highest (31%), followed closely by SC/ST categories 36.4%. Worker Population Ratio for Muslim women are the least from among all communities, more so in urban areas; the participation of Muslims in regular jobs in urban areas is quite limited compared to even the traditionally disadvantaged SCs/STs. Other Backward Classes (OBCs) constitute 40.7 per cent of the total Muslim population. In the total OBC population, Muslim OBCs have a share of 15.7 per cent.

18 Structural Inequality Caste and religion-based inequality in India are structural, i.e. they arise from underlying social, political and economic structures (rather than factors such as lower access to education or jobs). underlying social, political and economic structures (rather than factors such as lower access to education or jobs). How did India try to address them?

19 Addressing Inequality Secularism: non-discrimination and separation of state and religion (i.e. state has no official religion Affirmative action (called reservation in India): creating quotas for admission to educational institutions and in public sector jobs Did they work?

20 Solutions? Secular democracy fulfilled a very important role but generated contradictions: it did not reduce the structural inequality between different religious communities, particularly Muslims Rise of communal politics and fundamentalist politics

21 Politics of Affirmative action Affirmative action resulted in some progress of individuals but has done little to change the social location of disadvantaged groups Upper castes and classes have reacted strongly against these reservations At present major social conflict exists over whether SC/ST/OBC should have reserved seats in elite institutions (such as the top engineering, business and medical schools). The fear is that this may lead to admission of students with less merit and destroy the credibility of these institutions

With globalization A very divisive politics of caste and religion While factories and sweatshops have been swelling with workers from all social strata, the upper echelons remain less diverse