Education and Employment in Andhra Pradesh: Is there a reason to cheer? Presented to the Chief Minister of Andhra Pradesh by Nat. Council of Applied Economic Research Jubilee Hall, Hyderabad September 27, 2011

STARK DIFFERENTIALS between Rural, semi-urban and urban areas Unacceptably large difference between rural and urban areas in AP. So are differentials between semi-urban/urban periphery, towns and urban areas There is a problem in the definition of Poverty in AP where historically rural poverty is lower than urban poverty. Partly due to the presence of Muslims in peripheral urban areas Only recently this trend is reversed but the problem persists

STARK DIFFERENTIALS between Socio-Religious Communities The Muslims community is most deprived The deprivation gets compounded as they also live in deprived regions of AP Rayalaseema – Telangana, urban peripheries, Urban slums DOUBLE WHAMMY

Macro Economic Development of Andhra Pradesh

Triennium Average Per Capita Net State Domestic Product (PCNSDP) for Major States of India Constant prices (Rs. in '000') Ending Ending Ending Ending Ending Ending Ending Ending Ending STATE (current prices) PC- NSDPRank PC- NSDPRank PC- NSDPRank PC- NSDPRank PC- NSDPRank PC- NSDPRank PC- NSDPRank PC- NSDPRank PC- NSDPRank Haryana Maharashtra Kerala Punjab Himachal Pradesh Gujarat Tamil Nadu Karnataka Andhra Pradesh Uttarakhand West Bengal Rajasthan Chhattisgarh Orissa Assam *14 Jharkhand Madhya Pradesh Uttar Pradesh Bihar Source: Reserve Bank of India (RBI) Online Database, Estimated by Abusaleh Shariff and Veerpal Kaurhttp://

Sector Specific NSDP and Respective Shares in Andhra Pradesh NSDP at Constant Prices (Rs in '000' Crores)Sectoral Shares in NSDP YearPri SectorSec SectorTer SectorNSDPPri SectorSec SectorTer Sector Source:CSO, India.

Religious Diversity

%ge Distribution of Estimated Population by Religion – 2011 All ReligionsHindusMuslimsChristiansBuddhistsJainsSikhsReligion not stated Andhra Pradesh Telangana Telangana Hyderabad Rangareddi Nizamabad Mahbubnagar Medak Adilabad Karimnagar Warangal Nalgonda Khammam Costal Andhra Guntur Krishna Sri Potti Sriramulu Nellore Prakasam West Godavari Visakhapatnam East Godavari Vizianagaram Srikakulam Royalaseema Kurnool Anantapur Cuddapah Chittoor

Region and District-wise Estimated Population by Religion in Andhra Pradesh – 2011 ( Lakhs) Name HindusMuslims PersonsMalesFemalesPersonsMalesFemales Andhra Pradesh (89.0) (89.0) (89.1) (9.2) (9.3) (9.1) Telangana Telangana Adilabad Nizamabad Karimnagar Medak Hyderabad Rangareddy Mahbubnagar Nalgonda Warangal Khammam Costal Andhra Srikakulam Vizianagaram Visakhapatnam East Godavari West Godavari Krishna Guntur Prakasam Sri Potti Sriramulu Nellore Royalaseema Y.S.R Kurnool Anantapur Chittoor

Urban Muslim Concentrations in A P DISTRICTMunicipality/ Municipal Corporation Muslim Population 2001 CensusTotal Population 2001 CensusProportion of Muslims to Total Population in Towns/Cities Adilabad 36,0171,09, Kagaznagar17,28059, Bhainsa18,92841, Nirmal25,82875, Nizamabad Nizamabad MC1,00,2412,88, Bodhan34,26071, Kamareddy16,56164, Karimnagar Koratla15,70454, Medak Zahirabad21,31244, Sadashivpet9,97236, Sangareddy19,58057, Rangareddy Tandur20,03657, Mahbubnagar 51,2641,39, Hyderabad/rr GHMC17,83,67354,58, Kadapa (YSR) Kadapa MC60,1871,46, Proddatur38,1191,50, Rayachoti35,48172, Kurnool Kurnool MC92,5132,69, Adoni45,3091,62, Nandyal50,7741,57, Anantapur Guntakal29,3091,17, Tadpatri24,32086, Kadiri34,52576, Hindupur41,6861,25, Chittoor Madanapalle27,5421,07, Punganur16,25344,

Socio-Religious Diversity Dominantly Hindu OBCs, farmers Followed by the Upper Caste Hindus and the SCs and STs Muslims are the largest minorities just about 10 % of State population Muslims dwell in relatively large proportions in Urban and urban Peripheral areas of Andhra Pradesh Concentration in Rayalaseema and Telangana

Source: Census * Share of OBCs are derived from 64th NSSO Round. Note: Telangana1 includes Hyderabad

RURAL AREAS Dynamics of Income Inequalities by Economic Class SRCs and Occupation

Source: Estimated from NCAER-Human Development Surveys, and

Income Inequality (Gini coefficient) by Rural SRCs RegionPeriodAll HCHs & Oth Minor SCs, STs & Muslims Hindu OBCs Andhra Pradesh % change Telangana % change Rayalaseema % change Costal Andhra % change Source: Estimated from NCAER-Human Development Surveys, and

Monthly Per Capita Consumption Exp by Regions and Social Groups ( ) Region/ GroupAll GroupsSCsSTsOBCs Other Hindu s All Minori tiesMuslims AP Telangana Telangana Andhra Rayalaseema Source: Estimates from NSSO’s 64th round survey, Note: Small sample size for Hyderabad

LITERACY AND HIGHER LEVEL EDUCATION POST SACHAR PERIOD!

Returns to Education At lower levels of education measured in mean years of schooling, such as in India High Returns Primary | Elementary | Matric RUPEE INCOME VERY HIGH FOR HIGHER LEVEL EDUCATION Higher level of Education is accessible to only a few Any more investment will benefit only those already benefited earlier

MARKET AND NON-MARKET RETRURNS Market Returns: Private Rupee Income increases - Daily wages, Contractual wages, Salaries Non-market Returns: ‘public good’ Human Development Value, Human Resources Child health, women empowerment, environmental gains, productivity gain in agriculture and informal sector

LITARACY INDIA | AP

MATRIC INDIA | AP

HIGHER LEVEL EDUCATION INDIA | AP

AP SCENARIO HIGHER LEVEL EDUCATION

PUZZLE AND CONTROVERSIAL ANY NEW INVESTMENT IN HIGHER EDUCATION IN A.P WILL BENEFIT …… THOSE WHO ARE ALREADY BENEFITTED AND STUDENTS FROM OUTSIDE STATE BENEFIT TO THE EXCLUDED COMMUNITES IS MEAGER UNLESS AFFERMATIVE POLICIES ARE FORMULATED AND IMPLIMENTED IN EARNEST

Constitutional Provisions Preamble of the Indian Constitution, there is a resolve to secure to all citizens ‘equality of status and of opportunity’. Directs the government take proactive role to ensure equal opportunity The concepts of equality, equal access and equal opportunity are further elaborated in Article 14 (right to equality), Article 15 (access to education) and Article 16 (public employment); that ‘... State shall not discriminate.... on grounds only of religion, race, caste, sex, place of birth...’.

EDUCATIONL PROVISIONS The clause (4) of Article 15, states ‘Nothing.... shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Schedule Castes and the Scheduled Tribes’. Interestingly, the mention of ‘socially and economically backward classes’ (SEBC) in fact precedes that of the SCs and the STs. Clause (5) especially directs the State to make special provision by law for the advancement of the ‘socially and educationally backward classes’..... through admission to educational institutions including private, aided or unaided institutions excepting the minority education institutions as in clause (1) of article 30. WHY TALK OF ONLY ARTICLE 3O?

SOURCE OF INCOME WORK AND OCCUPATIONS Macro economic indicators are not enough Household data are essential in understanding level and quality of life

Main Household Source of Income in Andhra Pradesh Distribution within each Source of Income by Social Groups RURALURBAN Social Group Self Emp (Agri) Agri labour SE in non- agri Other labour Others (Salaried, etc)TotalSocial Group Self Emp Casual labourSalaried Others Pension/ RemitenceTotal SCs SCs STs STs OBCs OBCs Upper caste Upper caste Muslims Muslims Others Others Total 100 Total

Formality of work and Sectors URBANRURAL Social GroupFormalInformal Private Sector Public Sector Ltd./ Co-opTotalFormalInformal Private Sector Public Sector Ltd./ Co-opTotal Muslims OBCs SC/STs High Caste Hindus Total 100 (22.3) 100 (77.7) 100 (69.2) 100 (12.3 ) 100 (18.3) 100 (4.6) 100 (95.4) 100 (93.8) 100 (2.6) 100 (3.5) 100

INDIVIDUAL LEVEL WORK STATUS Rural AP: Usual Principal Activity Prevalence Distribution by Social Group ( ) Self Employed Casual LabourSalariedUn-PaidRentersStudy Not Working Due to Disability Domestic ChoresTotal SCs STs OBCs UCs Muslims Others Total URBAN AP : Usual Principal Activity Prevalence by Social Group ( ) Self Employed Casual LabourSalariedRentersUn-PaidStudy Not Working Due to Disability Domestic ChoresTotal SCs STs OBCs UCs Muslims Others Total

Enrolments and School Continuation; many fold increase in matric and pre university level Undertake Occupation Based programs Community Based Polytechnics Banking & Credit

ESTABLISH Equal Opportunity Commission Tamil Nadu: championed Mid-day meals program Maharashtra : Food for Work program lead to MG-NREGA Andhra Pradesh P-EOC can become an example for the national and other state governments.

Governance Strategy Socio-Economic Survey Monitoring of Programs Urban / City Level Cluster Program Reaching out at the level of Taluka / blocks Establish and Equal Opportunity Office in each University

CHIEF MINSTER’S AWARDS Annual Awards Best University for increasing diversity Best NGO/Civil Society promoting Diversity in its Staff and Program Focus Individual / institution promoting State wide Diversity Program

Thank for Your Time