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LATEST NEWS UPDATES | Docile populace might makes for low-grade welfare

Docile populace might makes for low-grade welfare

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published Published on Nov 2, 2011   modified Modified on Nov 2, 2011

-The Economic Times

 

Maruti's decision to locate expanded production in Gujarat, following strikes at its plants in Haryana, is being widely interpreted as an instance of virtuous policy being rewarded and worker militancy as well as official failure to check it being penalised.

Gujarat's industrial peace is the virtue, and its reward is flow of investment to the 'peaceful' state. However, the posited linear relationship between workforce docility and popular welfare through prosperity is facile and, more often than not, false.

Gujarat and Maharashtra are stellar examples of liberalising India's fast-growing states that succeed in attracting investment. However, neither state fares particularly well when it comes to measurements of human development.

The recently published India Human Development Report 2011 tells a startling story of failure in these states to translate economic growth into popular welfare.

The condition of scheduled tribes in Gujarat, 16.5% of the population, has actually deteriorated, despite the state's overall economic success and the spectacular 10% annual growth in agriculture achieved after 2000.

If there is any single indicator that encapsulates the multitude of factors ranging from access to food, nutrition and healthcare, sanitation, women's health, gender discrimination and ability to command state resources, it is the infant mortality rate (IMR), the number of children per 1,000 live births who fail to live beyond their first year.

This measure for scheduled tribes improved from 84.2 in 1998-99 to 62.1 in 2005-06 at the national level but deteriorated sharply from 60.3 to 86 over the same period in Gujarat. While several states had a higher scheduled tribe IMR in 2005-06 than Gujarat's, no other state registered deterioration, leave alone deterioration of 43%.

Anaemia afflicts women across India, and the indicator for prosperous Gujarat is the same as the national average for women in general, but higher for Muslim and scheduled tribe women. Democratic organisation empowers people and raises living standards. The benefits of industrial policy that overlooks this fact are strictly short-term.

The Economic Times, 1 November, 2011, http://articles.economictimes.indiatimes.com/2011-11-01/news/30345792_1_gujarat-tribes-imr


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