On Caste, And Markets

Mint today is carrying a report on an interesting study that proves “liberalization” since 1990 has been good for Dalits – who are India’s lowest castes. The method of the study, conducted by the Centre for the Advanced Study of India (CASI) of Pennsylvania University, took samples of Dalit lifestyles from two blocks of UP. It was found that:

1. The ownership of television sets rose from 0.8% to 34%.
2. The number making a living from “unclean” activities like disposing of the carcasses of animals, fell from 39.9% to 2.4%.
3. The chart in the report lists out improvements that have occurred in occupation, in material consumption, and in the “cognitive dimension.” There has been vast improvement in every indicator that has been measured.
4. One interesting statistic shows that 58% of “cleaning staff” are now from upper castes.

The CASI study has a supporter in Narendra Jadhav of the Planning Commission, who is quoted as saying:

“We have seen the study and the results of this survey vindicates the stand of many including me. Liberalization and the market economy gave an opportunity to the untouchable of country to break the established norms of villages and work with dignity. The process still continues.”

Of course, there must be a JNU don on the other side – Vivek Kumar, associate professor at the Centre for the Study of Social Systems, Jawaharlal Nehru University, who says:

“The market ushers in the change for the sake of its profit and for expanding its consumer base. The process of social change cannot be left to the mercy of the market.”

Yes, Capitalism means mass production for mass consumption – and this is precisely how the lives of all are steadily improved. This is not “social change.” Rather, this is “peaceful evolution.” The State must never intervene in this peaceful progress.

Another activist is quoted at the end of the report as saying:

“The market is cruel and insensitive.”

As though our The Chacha State is kind and compassionate!

What is my take on this report?

First, that this proves that freer markets have worked not only for the rich, but even more so for the poor and the downtrodden. Second, that improvements in consumption – as in the case of TV sets and mobile phones – have improved lives right across the board. Third: that rigid caste barriers have broken down. All these have been good for Dalits.

Studies such as this only vindicate what is common perception, or “gut feel.” Since 1990, the only good things that have happened in India have come from freer markets and entrepreneurs, including the much maligned MNCs. Nothing good has come from The Chacha State.

This study thus tells us what is the direction on which we must proceed – viz., more Liberty and free markets, and less and less of The Chacha State.