Failure of rural job plan? "Pro-Modi" economist finds deep urban-rural differentials in Gujarat, other states

By Rajiv Shah
A recent research work by a well-known pro-Narendra Modi economist, who many say is one of the key contenders for an authoritative posting in the Government of India in case the Gujarat CM becomes India’s next prime minister, has found that while urban Gujarat has seen a sharp rise in worker-population ratio (WPR) compared to any other part of India, the rural counterpart has suffered. Prof Ravindra Dholakia drawn the conclusion in a recent research paper, “Urban – Rural Income Differential in Major States: Contribution of Structural Factors”, co-authored with two Gujarat government officials.
While Prof Dholakia is a faculty at the Indian Institute of Management, the others, Manish B. Pandya and Payal M. Pateriya, are with the department of economics and statistics, notorious for poor standards in analysing data. The study finds that Gujarat’s WPR in urban areas was 37.7 per cent in 2004-05, reaching 38.4 per cent in 2011-12. But the rural WPR of Gujarat has gone down sharply – it was 51.4 per cent in 2004-05, sharply plummeting to 44.7 per cent in 2011-12. Dholakia is known for his neo-liberal views, and believes that market forces will automatically “adjust” other sectors, including human development.
As a result of the sharp fall in rural WPR, if the calculations made by Dholakia and others are to be believed, Gujarat’s urban-rural income differentials (URID), too, have gone up sharply. Thus, the differential, on a scale was one, was 0.73 in 2004-05, and in 2011-12, it reached 0.86. The URID in Gujarat, the calculations suggest, is one of the highest in India – higher than several states, including Karnataka (0.84), Maharashtra (0.75), Tamil Nadu (0.81), Madhya Pradesh (0.80), Rajasthan (0.77), and so on.
The team headed by Dholakia says that, in the country as whole, the URID have shown an rising trend over time in most of India, adding, in Gujarat and several other states has particularly gone up (since 1993-94, after which the data have been analyzed) particularly sharply. Other states which show a similar “consistency” are Bihar, Maharashtra, Tamil Nadu, Uttar Pradesh, Madhya Pradesh, Rajasthan and West Bengal.
The scholars admit, interestingly, that the urban-rural differential would have been even higher, but for the programmes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), which promises 100 days of employment to anyone in the country’s rural areas at state expense. Had this programme not been there, rural worker-participation rate, they seem to suggest, would have gone been particularly very low.
If one goes by this logic, analysts say, it would suggests that states like Gujarat are not implementing MGNREGS well enough! While the authors do not say so in so many words, they warn, “If targeted programmes aimed specifically at increasing rural labour productivity in different sectors are not implemented, the URID will show tendency to increase in future.” They add, the differential suggests that the structure of the work force in the economy as a whole “would change because of possible differences in the urban-rural population.”

As a result of the urban-rural income differential, Dholakia and others find, while there have been very sharp changes in employment pattern in Gujarat’s urban areas – one of the highest in India – it is not as high the state’s rural areas. In fact, in the rural areas, change in the employment structure is given the unit 0.045, which is lower than several states, including Kerala (0.126), Punjab (0.048), West Bengal (0.055), Maharashtra (0.052), Tamil Nadu (0.053), and so on.
In monetary terms, Prof Dholakia and others believe, the rural per capita gross state domestic product (GSDP) in Gujarat comes to Rs 64,499 in 2011-12, which is lower than Tamil Nadu (Rs 71,648), Kerala (Rs 75,128), Punjab (Rs 73,418), and Haryana (Rs 87,614). As for the urban areas, ther per capita GSDP in Gujarat comes to Rs 1,53,434, which is lower than two states – Maharasthra (Rs 1,68,178) and Haryana (Rs 1,75,960).

Significantly, these are average income levels, and hide the difference in income levels between different classes. Even then, the authors seek to conclude, these calculations would help “various development efforts undertaken by government and private sector entities by properly evaluating and monitoring long term programmes.”

Comments

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam* RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

Delhi HC rules in favour of retired Air Force officer 'overcharged' for Covid treatment

By Rosamma Thomas* In a decision of May 22, 2023, the Delhi High Court ruled in favour of petitioner Group Captain Suresh Khanna who was under treatment at CK Birla Hospital, Gurugram, between April 28 and May 5, 2021, for a period of eight days, for Covid-19 pneumonia. The petitioner had to pay Rs 3,55,286 as treatment costs, but the Ex-Servicemen Contributory Health Scheme (ECHS) only reimbursed him for Rs 1,83,748, on the basis of government-approved rates.

'Enough evidence' in Indian tradition to support legal basis for same-sex marriage

By Iyce Malhotra, Joseph Mathai, Sandeep Chachra* The ongoing hearing in the Supreme Court on same-sex marriage provides space for much-needed conversations on issues that have hitherto remained “invisible” or engaged with patriarchal locker room humour. We must recognize that people with diverse sexualities and complex gender identities have faced discrimination, stigma and decades of oppression. Their issues have mainly remained buried in dominant social discourse, and many view them with deep insecurities.

Religious divide 'kept alive' with low intensity communalism in Gujarat's cultural capital

By Rajiv Shah A fact-finding report, prepared by the Mumbai-based non-profit, Centre for Study of Society and Secularism (CSSS), has cited the Vadodara Ram Navami violence of March 30 as yet another example of how, after the BJP consolidating its hold on political power in Gujarat post-2002 riots and at the Centre in 2014, the nature of communal riots has changed, underlining, as opposed to high-intensity violence earlier, now riots have become “more sub-radar and at a smaller scale, more localized”.

Urgency for next pandemic? But Mr Health Secretary, you're barking up wrong tree

By Dr Amitav Banerjee, MD* The Union Health Secretary, Mr Rajesh Bhushan addressing the Health Working Group of G20 India, at Hyderabad on 05 June 2023, cautioned that the next pandemic would not wait for us to make global treaties and called on countries to work together.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Why continued obsession with adding more 'water guzzling' coal, nuclear power plants?

By Shankar Sharma* The true concerns over water inefficiency in coal power plants have been known and have been highlighted many times in the past. A highly relevant study report by Prayas Energy Group had highlighted this fast looming threat to our society many years ago. But our authorities have been acting as though there can be no issue with water supply, and that additional coal power plants can be added indefinitely; even without any true relevance to climate change.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Caste, impact on Ayodhya area 'halting' BJP rulers to act against Brij Bhushan Singh

By Vidya Bhushan Rawat* Finally, the #WrestlersProtest has got international attention. The United World Wrestling (UWW), condemning the treatment and detention of wrestlers and expressing its disappointment over the lack of results of the investigations against Brij Bhushan Singh, accused of sexually harassing women wrestlers, has urged the "relevant authorities to conduct a thorough and impartial investigation."

76% Odisha govt school infrastructure in dilapidated state, 'undermine' RTE norms

By Our Representative As many as 75.86% (5,421) elementary schools in Odisha do not possess a playground, depriving students of physical activity opportunities. Also, 75.68% (5,408) of schools require minor or major repairing, undermining the norms and standards stipulated in the Right to Education (RTE) Act.

Search This Blog