Growth, Inequality and Social Development in India: Is Inclusive Growth Possible?

256 Pages·2012·14.629 MB·English

by  R. Nagaraj (eds.)

Growth, Inequality and Social Development in India
Developmental Pathways to Poverty Reduction Series
Series Editor: Yusuf Bangura
Efforts to fight poverty cannot be separated from broader processes of economic growth
and development. It is the premise of this series that variations in poverty outcomes are
best understood through countries' development trajectories or structural change, as well
as the interconnections of institutions, policies and practices in the social, economic and
political spheres.
This series brings together contributions that engage with current policy debates on poverty
reduction from a developmental and social policy perspective. As the international community
approaches 2015, the Millennium Development Goals are a growing focus of attention, as
is the shaping of the post-MDG agenda. Contributions to this series highlight a range of
institutional, policy and political dimensions across the economy, society and polity that need
to be taken into account for an inclusive and sustainable development agenda beyond 2015.
This series is being inaugurated in 2012 with six volumes emerging from research carried
out under the auspices of the United Nations Research Institute for Social Development
(UNRISD). The research examined 16 cases from the perspectives of development strategies
and structural change; wealth and income inequality; social protection; social services;
organized interests; and developmental state capaCity.
The key findings of the research are reported in the UNRISD flagship report Combating
Poverty and Inequality: Structural Change, Social Policy and Politics, and in the first six volumes
of the present series.
UNRISD is grateful to the Swedish International Development Cooperation Agency (SIDA)
for their financial support of this research, as well as the governments of Denmark, Finland,
Mexico, Norway, South Africa, Sweden, Switzerland and the United Kingdom for proViding
core funding to UNRISD during the course of this work.
Titles include:
R. Nagaraj (editor)
GROWTH, INEQUALITY AND SOCIAL DEVELOPMENT IN INDIA
Is Inclusive Growth Possible?
Forthcoming titles are:
Khoo Bhoo Teik (editor)
POLICY REGIMES AND THE POLITICAL ECONOMY OF POVERTY REDUCTION IN
MALAYSIA
Jeremy Seekings and Nicoli Nattrass
POLICY, POLITICS AND POVERTY IN SOUTH AFRICA
Onalenna Selolwane (editor)
POVERTY REDUCTION AND CHANGING POLICY REGIMES IN BOTSWANA
Juliana Martinez Franzoni and Diego Sanchez-Anochea (editors)
GOOD JOBS AND SOCIAL SERVICES: HOW COSTA RICA ACHIEVED THE ELUSIVE
DOUBLE INCORPORATION
Yusuf Bangura (editor)
DEVELOPMENTAL PATHWAYS TO POVERTY REDUCTION
Developmental Pathways to Poverty Reduction Series
Series Standing Order ISBN 978-0-230-37088-3
You can receive future titles in this series as they are published by placing a standing order.
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Growth, Inequality and
Social Development
in India
Is Inclusive Growth Possible?
Edited by
R. Nagaraj
Professor, Indira Gandhi Institute of Development Research, Mumbai, India
UNRISD
palgrave ._11,.
II)~
macmillan ~ UNITED NATIONS
RESEARCH INSTITUTE
FOR SOCIAL DeVELOPMENT
* © United Nations Research Institute for Social Development, Geneva 2012
Softcover reprint of the hardcover 1st edition 2012 978-1-137-00075-0
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ISBN 978-1-349-43340-7 ISBN 978-1-137-00076-7 (eBook)
DOI 10.1057/9781137000767
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A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Growth, inequality and social development in India: is inclusive
growth possible? 1 edited by Rayaprolu Nagaraj.
p. cm.
ISBN 978-1-349-43340-7
1. Poverty-Government policy-India. 2. Income distribution-India.
3. India-Economic conditions-1991- I. Nagaraj, R.
HC440.P6G762012
339.4'60954-dc23 2012011168
10 9 8 7 6 5 4 3 2
21 20 19 18 17 16 15 14 13 12
For
Manaswini
(in memoriam)
Contents
List of Figures, Tables and Maps viii
Preface and Acknowledgements xi
Notes on Contributors xiii
List of Abbreviations xvi
1 Introduction 1
R. Nagaraj
2 Development Strategies and Poverty Reduction 2S
R. Nagaraj
3 Economic Development and Inequalities 63
M. H. Suryanarayana
4 Social Protection Policies, Experiences and Challenges 91
Gita Sen and D. Rajasekhar
S Rethinking Reforms: A New Vision for the Social
Sector in India 13S
p. S. Vijay Shankar and Mihir Shah
6 Organised Interests, Development Strategies
and Social Policies 168
Vivek Chibber
7 State and Redistributive Development in India 194
Atul Kohli
Index 227
vii
List of Figures, Tables and Maps
Figures
2.1 Composition of output, 1950-1 to 2008-9 29
2.2 Inflation and external balance, 1951-2 to
2009-10 29
2.3 Public spending as % of GDP, 1961-2008 36
2.4 Agriculture labour: number and as proportion of
total workers, 1951 to 2001 37
2.5 Number of families assisted by IRDP, 1981 to 1995 40
2.6 Headcount ratio of poverty, 1983 to 2004-5 42
2.7 Nutrition poverty, 1972-3 to 1993-4 42
2.8 Rural to urban per capita NDP, 1970-1 to 2004-5 44
2.9 Coefficient of variation of per capita NSDP, 1980-1
to 2007-8 44
2.10 Ratio of unorganised to organised sector NDP per capita,
1983 to 2004-5 45
2.11 Wage and profit shares in private corporate sector,
1985-6 to 2007-8 45
2.12 Physical quality of life index, 1951 to 2001 48
2.13 Access to safe drinking water, 1981 to 2001 49
2.14 Literacy rate in India, 1951 to 2001 50
3.1 Growth in per capita real consumption 85
4.1 Index values of beneficiaries of social assistance
schemes in India 118
5.1 Comparison of other countries with Indian states
in under-5 mortality, 2000 137
5.2 Trends in social sector expenditure, 1990-2006 at constant
1993-4 prices (Rs 1000 million) 140
5.3 IMR and composite index of health care 152
7.1 Capacity to reduce poverty in states 209
7.2 Decline in poverty in states (1983-2005) 210
viii
List of Figures, Tables and Maps ix
Tables
1.1 India's achievements in meeting MDG goals as in the
mid-2000s 8
2.1 Long-term growth rates of Indian economy and its
principal sectors, 1951 to 2010 28
2.2 Sectoral distribution of labour force, 1951 to 2004-5 30
2.3 Protective social security entitlements available for the
organised sector 51
2.4 Principal social security for industrial workers 52
2.5 Growth in real wages 55
3.1 Estimates of consumption inequality measures: Rural
all-India (At current prices based on group data) 78
3.2 Estimates of consumption inequality measures: Urban
all-India (At current prices based on group data) 79
3.3 Estimates of consumption inequality measures:
Metropolitan cities (At current prices based on group data) 80
3.4 Estimates of consumption inequality measures:
Metropolitan cities (At constant prices with
adjustment for grouping bias) 82
3.5 Estimates of consumption inequality measures: Rural
all-India 83
3.6 Estimates of consumption inequality measures: Urban
all-India 84
3.7 Estimates of consumption inequality measures:
Rural and urban all-India (at current prices) 86
4.1 Distribution of total Indian workforce by formal and
informal sectors in 1999-2000 and 2004-5 104
4.2 Percentage distribution of expenditure classes by social
identity, informal work status and education, 2004-5 105
4.3 Percentage distribution of unorganised workers across
expenditure classes 106
4.4 Incidence of emergency needs in unorganised sector
households 108
4.5 Distribution of all emergencies faced by households
by type 109
x List of Figures, Tables and Maps
4.6 Distribution of total expenditure on crises by sources
from which financed 110
4.7 Distribution of workers (%) by proportion of expenditure to
average monthly per capita income 111
4.8 Distribution of households (%) by worker
categories and proportion of interest amount paid
to principal amount 111
4.9 Progress in the coverage of social insurance scheme
in India 121
5.1 Plan-wise investment in DWSS at current and constant
prices, 1969-2007 (Rs million) 141
5.2 Trends in public expenditure on health in India,
1950-2004 149
5.3 Performance of key health indicators, 1951-2002 150
5.4 Coverage of key health care services over the years 151
5.5 District-level regression coefficients with IMR and key
health variables 152
5.6 Share of public and private sector in health provision,
1986-87 to 2004, NSS rounds 153
5.7 Trends in public expenditure on education, 1950-2006 156
5.8 Distribution of schools (%) by number of classrooms,
all-India and states 158
5.9 Distribution of schools (%) by number of teachers,
all-India and states 159
5.10 Examples of low learning achievement in primary schools 160
6.1 Phases of state policy 172
Maps
2.1 Spread of left-wing extremism between 2001 and 2005 41