Article Review-1
RESERVATION AND EFFICIENCY
RESERVATION AND EFFICIENCY
MYTH AND REALITY
AUTHOR: SUKHADEO THORAT
In this article, the author made arguments supporting reservations in private sector. He emphasised that, it will not only provide fair and non-discriminatory access to historically excluded and discriminated groups like the Dalits, but simultaneously remove constraints imposed by caste discrimination on labour markets, thereby induce competitiveness and economic growth.
SUMMARY AND REVIEW:
He starts the article reminding that there are no reservations in private sector ever since 1950. The justification for this was the supposedly negative impact of reservation/affirmative action policies on competitiveness and productive efficiency. Private industry also argues that its recruitment methods are fair and that anti-discrimination measures are therefore unwarranted. He criticised that the corporate sector put forward the neo-classical economic paradigm in support of liberalisation but it chooses to ignore the insights on antidiscrimination policies offered by the same paradigm.
Therefore he thinks that it is necessary to examine the theoretical and empirical basis of arguments of linkage between reservations and economic efficiency. He addressed to issues regarding the same argument. One is the effects of market discrimination on profit, wages, and efficiency in the allocation of labour. And second is assesses the impact of different types of reservation/affirmative action policies on productive efficiency, particularly that of the employees recruited under such policies. With the basic principle of neo-classical economic theories he explained that there should be competitiveness in the market for optimum economic outcome in any economy. Market discrimination induces imperfections in the labour and other markets through a kind of market failure, generates less than optimum economic outcome. He concludes that the discrimination in a market will lead to lesser efficiency, and also quoted the summary of a World Bank study depicting the same.
So, with the above conclusion, he argues that the same principle applies to economy of our country with respect to caste discrimination. As caste is also considered as a basic division of labour, he thinks that It is reasonable to assume that in a market economy framework, occupational immobility would operate through restrictions in various markets such as labour, land, credit, and other inputs and services necessary in any economic activity. So doing another occupation, gives the labour lesser wage, and worse condition of work. Immobility of labour and capital in a caste divided society essentially implies occupationally segmented, and imperfectly mobile labour and capital markets, which would generate sub-optimal economic outcomes and hamper overall economic growth.
He also argued that, in our society the occupation comes by birth and if some are considered to be pure and some are impure, the people who are working in the jobs of , so called impure will not give them the job satisfaction and this affects the economy. He also presented a quote of Dr. B.R. Ambedkar regarding the same.
With all this analysis he made, he strongly criticised the private sector. He said that the private sector has not given insight into policy and suggested policies of it’s own. Though some from the corporate sector do recognise the need for measures to compensate discriminated groups, but they are focusing on education and skill development alone but these solutions ignore the twin problems of market failure associated with caste-based labour market discrimination, and lack of fair access to jobs for the discriminated groups.
So he concludes saying that the reservations in private sectors are needed for proper growth of economy and efficiency.
Bibliography:
http://www.jstor.org/stable/4416261
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Article Review-2
THE EFFECT OF RESERVATIONS ON CASTE
PERSISTENCE IN INDIA
AUTHOR: MICHAEL D. BARKER
Washington, DC, April 15, 2010.
Introduction:
Reservation policy is an extremely contentious topic in Indian politics. There are many arguments supporting and opposing reservation policy. This thesis provided theoretical and quantitative evidence on the consequences of reservation policy. To determine the effects of reservations on the persistence of caste identity author develop and estimate a model of marriage choice in the presence of reservations. Author concludes that the net impact of reservation policy favours exogamy.
Summary and review:
The author is a non-Indian, so it is obvious that he is looking from outside the cast system. He feels that the issue of reservations is very complex. He compares the reservations with some policies US and UK. He feels that the function of reservations is same as affirmative action in US or Positive discrimination in UK. But the main focus in the data analysis was laid on effect of reservations on inter caste marriages.
He first looks the history of reservations, what constitution provided and what are the later changes made by the governments. The constitution established a 22.5 % of reservations and prohibits the act of discrimination or untouchability. He emphasized the changes made by the Mandal commission of 1979 and it’s perspectives on caste system. Cause for increase of reservations from 22.5 % to 49.5 % was attributed to Mandal Commission. The commission’s views of supporting reservations were presented with quotations indicating the same. In commissions view The British rulers made many structural disturbances in or caste system. but however he adds those arguments are not universal there are and many who opposed them.
He also looked into the characterisation and persistence of castes. The author quoted many examples of Dinakar Gupta’s seminar on definition and effects of caste system. He also marks the treatment of exogenous and endogenous marriages by society. He says there are benefits due to endogenous marriage and for exogenous marriage there are punishments.
He seriously criticised the policies of government. He said The actual goal of reservations is unclear. The Mandal commission was more concerned with equalization of caste rather than eradication of caste system. but this was not the caste with all politicians. He underlines statement of Supreme Court of India which says that reservations should not be permanent or perpetuate backwardness. He also raised the doubt on people’s opinion. He feels even if the all castes are neutralised, the very existence of caste system creates many problems in society.
He stated that reservations are helping many people improve their lives, but he also expressed the doubt that , it may not be the caste always. There are many arguments opposing the policy of reservations and he feels they have potential to gain more support. He questioned the goal of the policy. To erode the caste system he strongly feels that a change is must in the current reservation policy.
Bibliography:
http://www12.georgetown.edu/students/mdb96/files/MBarker-caste-persistence.pdf
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Article Review-3
Reservations Policy Revisited
AUTHOR: D L SHETH
INTRODUCTION:
The reservations policy is being questioned today both at the level of principle and the level of operationalization. Author mainly discussed two inter-related arguments. One is to examine whether the reservation policy is consistent with the principles of equality and secularism as enshrined in our Constitution. Another is to devise a criterion to identify beneficiaries such that such that they promote, rather than militate against, the basic values and goals of social transformation envisaged in the directive principles of state policy laid down in the Indian constitution. Author examines the Reservations and its rationale, evaluated its performance and made some suggestions to make the policy more effective.
SUMMARY AND REVIEW:
Author first mentioned that recently the anti-reservation arguments are gaining popularity, and they have become effective that they made significant agitation on the mind of policymakers, citing some examples. Then he examines the reservation policy, reminding that, these reservations are part of much larger policy package. He briefly explained three important goals of present reservation policy, first - to remove social and religious disabilities of certain specified groups namely SCs, STs, OBCs , second-to facilitate and promote equal participation with others and third-to protect all these groups through legislative action and executive orders. Thus he concludes that reservations should be viewed as an instrument of a larger social policy of the state addressed to a long-term goal of creating a civil society through extending effective citizenship rights. He also mentioned some of other laws aimed to remove disabilities. He also marks that out of all those laws reservation law is the most controversial, and strongly protested by people who are outside beneficiary group.
The article then assesses the performance of the reservation policy. He analysed percentage of backward caste people in government jobs of higher class. He realises that there is some development in their groups but in spite of more than half century of reservations the percentage of backward caste people is still insignificant. So he criticised the development policy as inefficient and also felt showed a feeling that other components of the Policy will have to show a much higher operational efficiency. He analyses the cause, and finds that the rate of utilisation is very low. The problem is not the availability of benefits but the potential of beneficiaries to receive the benefits. There is a cut-off for backward caste people to get benefit of reservation, but many people couldn’t get the fruits of reservation because they don’t satisfy the criterion.
The author identifies that there are two main problems with the policy of reservation. One pertains to the legitimacy of reservations for the other backward classes and the other to the criteria used for identifying beneficiary groups. For the first the author concluded that , the constitution is unambiguous and emphatic about according preferential treatment to the scheduled castes and tribes, but it very ambiguous about with respect to the OBCs. He also reminds that there is no central policy for the other backward classes. He also underlines the fact that classification even of the scheduled castes and scheduled tribes are not clearly defined in the constitution.
The author gave valuable suggestions for modification of policy for it to be more efficient and successful. His first conclusion is that it needs to be firmly reoriented in the basic values enshrined in the constitution, namely of equality and social justice. Second is that, the other aspects of the policy, especially the enabling measures aimed at increasing the capability of beneficiary groups to receive benefits of reservations, need to be vigorously implemented. He ends the article with conclusion that only social criteria will have to be used, at least until their status disability ceases to come in the way of their social mobility.
Bibliography:
http://www.jstor.org/stable/4377730
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K.Pradeep
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