Caste and Critics::
The Indian Economy
ABHIGYA ASMI / DECEMBER 03, 2022
Caste based hierarchy has come a long way into shaping India’s economic and political climate into what it is today. This article examines the history of the caste based system and how it has evolved.
indu society is stratified into four hierarchical classes, or varnas, with a large subpopulation of untouchables excluded from this system entirely. This system dates back as far as 1500-500 BCE. The four classes are the Brahmins, Kshatriyas, Vaishyas, and Shudras. Within each varna, are hundreds of jatis or castes. The role of caste in an individual’s course of life is definitive, as it will determine how they are assessed in the public sphere. The importance of caste in India’s economy and polity doesn’t come as a surprise, given the strong influence of the caste component in electoral politics. Post Independence, political parties have frequently leveraged particular castes as their vote banks, promising public resources and contesting candidates from the same caste, hence politicising castes. In India, elections have become an auction for the sale of basic government services. Basic necessities which should be provided without any political incentive are being used as a weapon to garner more votes. The recent rise in caste-based political parties does not help in this case. The political agenda of numerous parties is based on the caste appeal to obtain public support. According to a study (Sharan & Kumar, 2019), voters need candidates from their own caste to be in power for them to have access to basic public services. Even though local politicians target their own castes, recent research shows that cooperation within a caste has a positive effect on the provision of public goods.
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Spatial segregation of different castes within the village also results in a high degree of local social connectedness.
Spatial segregation of different castes within the village also results in a high degree of local social connectedness. These segregations were brought on by decades of land divisions based on castes perpetuated by British colonial intervention. Caste is still an impediment in post-colonial India due to the British land governance reforms. They brought about a distinction between zamindars, who owned the land and the labourers (mostly people from lower caste) who cultivated it, hence institutionalising caste within the land revenue establishment. The post-independence period, which saw land
Pictured: Illustration by Unknown via Google
reforms also excluded dalits and lower castes. Later, the green revolution that altered the agrarian sector did not change the land inequality, but instead deepened it since most of it was achieved through expensive factors of production like technological intervention, high-yielding seeds, and fertilisers which required financial capital. Even though land is not as important as it was once, it still works as a source of inheritance and speculative capital. Historically, social standing was often linked with access to land and has been a major determinant in the critical spheres of life. Marginalisation of the landless acquired a form which contributed immensely by broadening the lines between the castes.
An educated workforce is necessary for sustained economic growth. With caste superstructures already in place, education is deemed as the sole ladder to rise in economic status or social order, it is a vertical movement across all levels. India suffers from an elite bias from the colonial times as they were educated in tiny groups which belonged largely to the upper castes, for the British's own administrative purpose. This inequality in access to education got translated into inequality in other economic domains particularly in the job market. The elites also sustained their position at the top by denying and depriving education to a substantial population for an extended period of time, hence creating wage disparities. The dalit community has long been associated with occupations that are perceived to be menial and inhumane like garbage collections, manual scavenging, sweepers etc.
With caste superstructures already in place, education is deemed as the sole ladder to rise in economic status or social order, it is a vertical movement across all levels.
Illustration by Ashika Thomas via Pinterest
This ostracisation is further advanced by little or no access to formal education. Even though the government has formulated policies for higher education, discrimination within the institutions and among peers deters students from enrolling in schools. And even if this youth is able to avail formal education most of the time they are unable to convert their skills into secure employment. As compared to upper castes who have economic and social resources like family wealth and landholdings, lower castes are not able to complete their education due to a lack of the same. Thus, they are trapped in a vicious circle and are indirectly forced to return to their constrained employment.
Moreover, caste-based stratification and spatial segregation within villages have resulted in the creation of social clusters over time. This has given rise to a large and diverse economic network organised around specific castes. This has assisted the underprivileged as a group in gaining some resources and coping with economic uncertainty, which has since moved into urban labour markets. Post-independence, affirmative action policy and reservation, targeted large portions of historically disadvantaged castes, providing them access to higher education, government posts, and political representation. As a result of these, convergence in terms of education, income, and access to public resources has emerged in recent decades, contributing to defining the growth of the modern Indian economy. Statistical evidence (Munshi, 2019) points out that discrimination is mostly based on differences in socio-economic characteristics between upper and lower castes.
Statistical evidence (Munshi, 2019) points out that discrimination is mostly based on differences in socio-economic characteristics between upper and lower castes.
The expansion of caste networks has stretched into the urban sector which demonstrates the shift of caste from agriculture and rural occupations to administrative and business jobs. The Vaishyas, who had historically been in charge of moneylending and trading, split into tiny groups, with some migrating abroad and others, known as Marwaris, establishing themselves in the Calcutta trade. Like the marwaris, another subsection of the marginalised population, Patels or earlier known as patildars belonged to the Kshatriya caste. However, in the United States they are one of the many successful immigrants who have dominated the hospitality industry. With the passage of time, these communities transitioned from trade to industry, and the British colonial administration encouraged people to relocate abroad. The traditional business castes regulate the Indian diamond industry, known for its social heterogeneity and is associated with a high degree of community networking around the world. The primary function of these networks is to facilitate credit supply; these networks enable members to get credit connections with whom they do not need to establish long-term connections. In general, networks are effective in supporting the movement of groups, but they can restrict the mobility of individuals trying to follow a path of their own.
Pictured: Illustration by Unknown via Behance
When the market economy becomes more efficient, caste networks will vanish. In the interim, which could take decades, policies aimed at fostering growth would be more effective if they took into consideration the underlying caste networks that continue to influence educational, vocational and territorial choices in the Indian economy.
In current times though, these market forces have opened up new opportunities for marginalised caste. Along with globalisation and industrialisation, small businesses like scrapers and dealers which are usually held by lower socioeconomic population have had an opportunity to
expand provided sufficient resources and capital are provided. Caste networks usually come to rescue for jumpstarting the entrepreneurial venture. However, caste networks and affirmative action policies are insufficient, if India is to progress; the backward class must also progress alongside the rest of the population. In the meanwhile, policies that are intended to promote local growth should be audited annually, and those that are not contributing to development should be phased away gradually.
Keywords
caste, caste mobility, caste politics, hierarchy, marwari, spatial segregation, superstructure, socio-economic, job market, industrialisation, Kshatriya, Shudras, Brahmin, Vaishyas, diamond industry, elections, reservations
References
The Economist Newspaper. (2007). With reservations. The Economist. https://www.economist.com/briefing/2007/10/04/with-reservations
Thorat, S., & Newman, K. S. (2007). Caste and Economic Discrimination: Causes, Consequences and Remedies. Economic and Political Weekly, 42(41), 4121–4124. http://www.jstor.org/stable/40276545
Munshi, K. (2017, August 16). The impact of caste on economic mobility in India. Mint. https://www.livemint.com/Opinion/FLn6TiQPArdQZUN9LE2ZsM/The-impact-of-caste-on-economic-mobility-in-India.html
Sharan, M. R. (2019, November 30). Caste differences in govt bodies affect how lower castes get public services: Study. ThePrint. https://theprint.in/opinion/caste-differences-in-govt-bodies-affect-lower-castes-in-getting-public-services-study/328476/
Nair, M. (2016, August 31). Markets are breaking down India's caste system, turning untouchables into millionaires. FEE Freeman Article. https://fee.org/articles/markets-are-breaking-down-india-s-caste-system-turning-untouchables-into-millionaires/
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