The Agrarian Crisis in Punjab and the Making of the Anti-Farm Law Protests

The protests in Punjab are happening at a time when the agrarian economy is under stress. With increasing uncertainty, previously antagonistic groups across classes, castes & gender are coming closer, building a broader base for the agitation & beyond.

Punjab’s farmers have been unrelenting in their opposition to the new farm laws passed in September. Their sustained and creative opposition continues to make headlines. The central government too remains adamant and increasingly belligerent about sustaining the laws in their current form. The political pressure of the farmers has led the Punjab government, in a symbolic gesture, to pass legislation rejecting the centre’s farm laws. The past weeks have witnessed bitter stand-offs: farmers blocking rail tracks, the railways suspending services to Punjab for a period, and the state’s power plants starved of coal. A march of thousands of farmers to Delhi earlier this week to register their opposition to these laws is faced police barricades, water cannons, and tear gas shells.

In the face of the unpopularity of the farm laws, the central government has found refuge in different kinds of arguments in favour of the reforms. It has sought to discredit the protests by arguing that the agitation is driven by exploitative middlemen, and that small and marginal farmers are happy with these laws. The opposition to the new laws is portrayed as coming from large, prosperous, and politically powerful farmers, who dominate Punjab’s farmers unions and who benefited the most from the old system.

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Does India’s Gender Budget Need a Rethink?

India was a pioneering country when it first introduced a Gender Budget in 2001 as part of its annual Financial Year Budget. Gender Budgeting (GB) highlights the inherently different experiences in receiving financial and welfare support from the state due to their differing needs, priorities and access and serves to ameliorate the barriers to economic inclusion faced by women through a plethora of state financing. 

India’s Gender Budget Statement (GBS) has been released in two parts since 2005. Each ministry highlights allocations that are – women specific allocations where 100% of the budget for a specific scheme is assigned to women and a ‘pro-women’s’ allocation, where at least 30% of the budget for a specific scheme has been assigned to women to enhance affirmative action.

Figure 1: Proportion of women’s allocation in India’s Gender Budget

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Problems with a bottom-up approach to governance reform: Evidence from India

There is a neoliberal consensus pioneered by Hayek and Tiebout in the 1940s and 1950s in the idea that a market economy-like organisation of sub-national units in a federation will result in overall gains in institutional performance. Literature has focused on the efficiency gains to be derived from making sub-national units competitive guided by the principle that devolved government is better able to respond to voters’ choices. This rests on the assumption that local and national needs vary significantly. In this article, I ask whether the prioritisation of service delivery in healthcare and education sectors is indeed something that varies across states in India. The Indian federal system has been increasingly under pressure to devolve power to the states since the economy was set on a path to liberalisation. Initially, this pressure came from the outside, through international institutions (Bretton Woods, largely) but this opportunity was instantaneously accepted by sub-national politicians who promoted, rightly, the cause of their constituencies. This has taken shape in the form of reduced centralised monitoring of service delivery, and the funds previously allocated to this end are now being directly transferred to states who have unconditional leeway to allocate it to various uses. This occurred too suddenly without a mechanism in place to safeguard and ensure the equitable delivery of essential services in healthcare and education, and an ever widening gap among states.

fig1Source: Data from CMIE States of India, RBI

Building on to this, we also have inter-regional issues due to clustering economies. Some states benefit whilst others (often, the poorer ones) lose out by disgraceful margins. There is a race to the bottom on regulatory easing for corporations, and inter-state bargaining for central resources is competitive, rather than cooperative. Transplantation of a European approach to governance and institutions in the Indian context has meant that natural resources are being plundered by sub-national governments to promote corporate interests, as their citizens remain deprived. Public hospitals and primary healthcare infrastructure are slowly decaying into obscurity as shiny, private health players enter the market. This is the same case within the education sector, cheap, private schools largely targeting the middle class are driving away resources and interest away from the public school system, which in its crippled state cannot justify a case to be the recipient of sub-national governments’ interest. Read More »

Pandemic Discourses – A Global Contagion Demands Global Perspectives

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By Sakiko Fukuda-Parr, Manjari Mahajan, and Mark W. Frazier

As the inaugural issue of Pandemic Discourses goes online, 4.7 million cases of COVID-19 and nearly 320,000 deaths have been recorded by the World Health Organization. The waves of cases and deaths have been closely followed by mounting economic losses, leaving governments, communities, and individuals scrambling to find appropriate responses. Yet, even in this uniquely global moment, popular discourse around the pandemic has remained trapped within familiar terms.

Media coverage has to a large extent focused on experiences of the United States and Europe. The frameworks developed to respond to the pandemic have also been US/Euro-centric, frequently inward-looking and isolationist, paying scant attention to expertise, knowledge, and capacities elsewhere. The experiences of other parts of the world, even when taken into account, often serve to cement prior prejudices. In response to this lopsided discussion, Pandemic Discourses aims to foster a more expansive dialogue that encompasses voices from the global South, including China, India, and beyond.Read More »

Is Postcolonial Capitalism a Thing to Itself? Reviewing Sanyal’s Rethinking Capitalist Development

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Kalyan Sanyal’s Rethinking Capitalist Development (2007, 2014) is a rare work of political economy for many reasons. It is written by an economist, but it’s so interdisciplinary that you won’t be able to tell. It is an attempt to theorize capitalism in the postcolonial context from the inside-out rather than outside-in, i.e. with no reference to an ideal type. It refuses to sit neatly in theoretical boundaries — it is not entirely Marxist, not entirely Postmarxist, not entirely neo-Gramscian, not entirely Foucauldian, but a strange concoction of all. Perhaps the only thing that is not rare is that like most interesting and influential works that emerge from the Global South, it too has been largely ignored in the academic circles of the Global North, especially in Economics. Read More »

When does state-permeated capitalism work?

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In recent years, state capitalism has become an important buzzword in the development economics discussion (again). In view of the very different ways in which this term is used, Ilias Alami and Adam Dixon recently highlighted the dangers of using the term too loosely in an article in Competition and Change. In view of its recent popularity, state capitalism could suffer a similar fate to the terms “neoliberalism” or “financialisation” by becoming a very loose rallying cry without any significant analytical value. To overcome this problematic situation, Alami and Dixon propose that future research should (1) develop a theory of the capitalist state, (2) circumscribe the time horizons of state capitalism, and (3) locate state capitalism more precisely in territorial and geographical terms.

Although I am not sure whether the genius can be put back into the bottle by developing a unified theory of the state (too many different theoretical traditions are involved by now), I am very sympathetic to the latter two demands. Our recently published book “State-permeated Capitalism in Large Emerging Economies” (Routledge) is a modest contribution to the latter goals. It deals with the economic development of Brazil, India, China and South Africa between 2000 and 2015. Departing from a comparative capitalism perspective, we have developed an ideal type of state-permeated capitalism as opposed to liberal, coordinated and dependent capitalism – and examined to what extent large emerging markets are approaching this ideal type. Read More »

Pandemics and the State of Welfare

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In the midst of what might possibly be the worst recession since 2008, and staring down the barrel of overwhelming economic, social and human disaster, there is widespread recognition that increased welfare spending is critical not just to contain the fallout from the pandemic, but also to effectively combat it. By ensuring timely delivery of essentials and basic income support, one can minimise the chances of people venturing outside, and hence contain the spread of the COVID-19 virus.

There are valid concerns raised as to whether these measures go far enough in helping workers or whether institutional mechanisms will be able to convert announcements into genuine progress on the ground. This blog post analyses the arguments behind the justification of introducing welfare schemes in today’s times, and the underlying economic logic behind them. 

The increase in welfare provision is sorely needed in a catastrophic situation such as the one we face. But while the readiness to deploy instruments to achieve this is unprecedented, the measures themselves are not. Much of the welfare measures rolled out by governments are standard income support and welfare packages, larger in scale but with no fundamental changes in their basic design. Much of these measures, moreover, have been advocated by many to deal with fallouts from economic crises in the past, only to be met with middling levels of success and acceptance by the powers that be. The impact of the coronavirus has shown us how quickly governments can turn over the fundamental principles of austerity if they are pushed to do so. 

This post does not simply aim to criticise government policies of the past in light of current actions, but to outline a warning for the future. The problem of economic distress will not go away once the pandemic does, because then we will be dealing with battered economies, high unemployment, and weak to non-existent growth. In such times, when the threat of the virus has ebbed, there will be calls to roll back the welfare measures of the government. These calls will have to be countered stringently, on the grounds that the need to protect welfare and ensure government assistance is not contingent simply on the existence of a virus, but on the inability of the economic machine to provide for welfare.Read More »