Divergence in India: Income differentials at the state level, 1970–97

Abstract

We examine India's regional disparities in economic performance between 1970–97. Our preliminary analysis shows that, in absolute terms, initially poorer states grew at slower rates than initially wealthier ones and that there is also evidence of increasing dispersion of income levels across the states. Our econometric analysis investigates the possibility of club convergence and conditional convergence. Although we do not find evidence of the former, we can suggest some of the factors associated in the latter. Our research also indicates that the onset of economic policy reform in 1991 significantly intensified growth differentials between the states.     

Regional wages and economic development: A case study of manufacturing wages in India, 1950–1960

This paper examines some hypotheses with respect to the interregional wage variations in Indian manufacturing from 1950 to 1960. The choice of this period was determined by the availability of relevant data. It was found in an earlier study that the regional wage structure tended to be flexible during the period under consideration. In this paper, an attempt has been made to explain the inter‐regional wage differentials by analysing the data on trade unionism, per capita income, productivity, capital intensity, non‐primary employment and consumer prices. It is argued that the level of regional wage differentials can be explained by relative differentials in productivity and in trade unionism, but the change in wage differentials depends upon the changing capital intensity in respective regions.     

A farm‐sizewise analysis of irrigation distribution in India

This article analyses and describes the relationship between the size of operational holding on the one hand and various irrigation and irrigation‐related variables, on the hand, using cross‐section regression analysis of farm‐sizewise/statewise Indian data. The overall conclusion that emerges from the analysis is that irrigation development in India as a whole seems to be such that its propagation and diffusion among agricultural households seems to be somewhat in favour of larger farms. Even though the government predominantly controls the development and distribution of flow‐sources of irrigation, especially of canal irrigation, it does not seem to have produced any significant positive impact on reducing the level of inequity involved in the distribution of irrigation across farm‐size groups.     

Short‐run changes in rural income inequality: A decomposition analysis

This paper quantitatively assesses the principal determinants of the rather dramatic decline in income inequality observed in rural India between 1968–69 and 1970–71. A simple form of decomposition analysis is used to demonstrate that the most important effects of changes in weather, in technology, and in other factors on income distribution are those which occur rather indirectly as a result of overall tightening of the labour market. Whereas in periods of generally bad weather, workers from high‐income households apparently ‘crowd‐out’ those from low‐income households, in periods of good weather income effects induce the former to consume leisure, thereby opening up more jobs for workers from low‐income households.     

Directed credit and investment in small‐scale industry in India: Evidence from firm‐level data 1965–78

Panel data on 788 modern sector Indian firms during 1965–78 are used to analyse the link between the size of a firm and its financial environment. Exogeneity tests reveal that large firms with improved investment prospects could obtain external finance at the margin, but that small firms could not. The policy of directing bank credit accordingly relaxed a binding constraint on small firms, raising investment. Assuming that all of the rise in the credit‐sales ratio in small firms was policy‐induced then so was about one third of the 170 per cent rise during 1965—78 in their investment—sales ratio.     

Educational human capital and levels of income: Evidence from states in India, 1965 – 92

Abstract

This paper examines the long-run (steady-state) relationship between levels of educational human capital and levels of income for the 15 major states of India between 1965 and 1992. The relationship is estimated using the Pooled Mean Groups (PMG) technique; which produces common long-run coefficients but allows heterogeneity of the short-run adjustment parameters. The results suggest that levels of educational human capital, proxied by high school enrollment rates, have a robust positive impact on steady-state levels of income. This is true for male and female education, and the regressions also suggest that states which have larger gender-gaps in education have lower steady-state incomes. The estimated relationship is robust to the inclusion of alternative measures, added controls, and variation in the degree of state coverage.     

Developing countries' terms of trade in manufactures, 1967–87: A note

Terms of trade, relating only to manufactured exports and imports, are calculated for a sample of 37 industrialised and developing countries over the 1967 to 1987 period. It is found that the terms of trade movements were significantly more favourable for higher‐income countries. This result highlights the importance of export diversification as part of a development strategy.     

State writing,subversion and citizenship in Southern Rhodesia’s state of emergency, 1959–1960

This article takes a moment of political upheaval – Southern Rhodesia’s 1959 State of Emergency – to explore the uses of writing in the remaking of state authority and citizenship. The 1950s had produced a powerful bureaucratic state, a shaky attempt at multi-racial “partnership,” and African aspirations to a citizenship able to encompass equality, rights and self-determination. The Emergency brought the tensions in these modes of government and citizenship to the fore. The article explores the working out of these tensions in two instances: the bureaucratic attempt to manage political detainees, and the police evidence used to substantiate charges of subversion on the part of nationalists in court. The article traces the limits of the state’s “lawfare” and the means by which detainees and nationalists developed new understandings of citizenship as aspirational imaginary, legal condition and practical tool, through the written word.     

Workers' Councils in the Service of the Market: New Archival Evidence on the Origins of Self-Management in Yugoslavia 1948–1950

This article provides a new synthesis on the origins of self-management in Yugoslavia on the basis of new archival research. It rejects the dominant view in the historiography that self-management arose merely as an ideological justification for the split with Stalin's USSR in 1948. Rather, it demonstrates that the introduction of workers' councils was part of an elaborate effort on the part of the Communist leadership to return to its pre-1948, proto-‘reform Communist’ strategy that was remarkably open to interaction with the world market. This is shown to have implications for understanding Yugoslavia, Eastern Europe, the Cold War and Communism.     

How to lend like mad and make a profit: A micro‐credit paradigm versus the start‐up fund in South Africa

In current debates about micro‐credit, joint‐liability schemes are often viewed as the only viable way to non‐collateralised lending, and are thus seen as almost synonymous with micro‐credit. This article reports about an alternative, non‐participatory approach to micro‐credit. Prompted by the apparent inability of group credit schemes to reign in lending costs, the article sets out the institutional requirements for cheap, ‘mass‐produced’ credit. It argues that such credit can be viable if mechanisms are in place enforcing the self‐selection of potential borrowers and self‐motivation of existing borrowers. The analysis of a ‘mass‐minimalist’ micro‐credit institution from South Africa supports the argument.     

The Debate on the Writer’s Responsibility in France and the United States from the 1920s to the 1950s

The debate on the responsibility of the writer was, in France as in the USA, an attack against literary and artistic modernism. From Charles Maurras to Irving Babbit, the reaction against modernism presented itself as a defense of classicism and of tradition against romanticism. Far from being politically neutral, this attack identified romanticism with revolution and the destruction of the social order. The opposition between responsibility and freedom structured the debate from the end of the nineteenth century until World War II. The war entailed a loss of autonomy of the literary field which fostered, like during World War I, the imposition of national moralism. In both countries, a debate arose on the question of the responsibility of the writer, but it took a different form. Whereas the opposition between art for art’s sake and responsibility continued to structure it in the USA, the notion of responsibility was appropriated in France by the literary Resistance and redefined by Sartre at the Liberation.     

Does conflict begin at home?—using family dynamics to understand The Hindu-Muslim conflict in British India; 1907–1947

ABSTRACT

Despite common use of the term ‘sibling-rivalry’ for Hindu-Muslim conflict in British India, there are few or no attempts to explain this phenomenon from a proper theoretical foci. By employing an indigenous interpersonal conflict model, this article seeks to examine Hindu-Muslim conflict in the pre-partition period. This draws on the dynamics of intimate rivalry among family members to explain Hindu-Muslim conflict dynamics from a fresh psycho-cultural perspective. The institution of joint-family is the most pervasive and the most influential institution in the subcontinent shaping certain views regarding the functioning of other institutions in society; including in the political sphere. People use the concrete knowledge learned inside their families to reason about more abstract phenomena such as group conflict. Therefore, the conflict dynamics associated with the family institution are extrapolated onto intergroup conflicts.