On Markets, Cities - And Dalits

There is an interesting story here about a Dalit entrepreneur, Chandra Bhan Prasad, who is a champion of liberalism, the free market, cities and urbanization – and globalization.

As a Dalit, he has witnessed a sea change in not only his own fortunes, but those of his entire caste group, since Indian began "liberalization" in the 1990s. Indeed, he adds that the rise of Dalit politics and politicians reflects this improvement in the living standards of Dalits.

The story reveals that most Dalits now hire cars for their marriage ceremonies. During the socialist era, they were denied even horses.

I have absolutely no doubt that Chandra Bhan Prasad is completely right in his views. Caste oppression is a totally rural phenomenon: India's cities are marked by caste anonymity. And since markets are urban, the future of India's Dalits, as market-based individuals in cities and towns, will be devoid of the label of caste. The market will destroy caste oppression.

There is an economic reason for this. In the urban economy discrimination has a private cost. If you do not serve customers because they belong to a particular faith or caste, you will have to bear the loss for your prejudice. Thus, caste and faith become irrelevant to the urban catallaxy. We all survive, in cities, by serving strangers, and are served by strangers in turn. The city is therefore the harbinger of civilization and civilized behaviour. Conditions in the rural areas are barbaric. It has been well said that "India does not live in her villages; India dies in her villages." The future must be urban – especially for Dalits.

I myself noted this on my first day in the western world, when I came to London as a student in 1989. And the brief article I wrote on the experience has been on the website of the Ambedkar Society for many years now. This is the link – but you will have to put my name in the search box and find it.