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Distortions in Land Markets and Their Implications for Credit Generation in India

Data shows that land is collateral in a large proportion of loans in India. Yet, the several structural, regulatory, and information-driven distortions that afflict Indian land markets force lenders to adopt conservative policies ex ante, affecting both the availability of credit and the collateralisation of land. The paper examines some of these distortions and highlights their significance to the current debate on reforming bankruptcy framework in India. The first part of the paper discusses structural, regulatory, and informational gaps that limit lenders’ ability to lend against land as well as recovery after default. In the second part, some opportunistic and structural reforms in the land markets that could effectively monetise land in credit markets have been proposed.

Trade Liberalisation and Women’s Employment Intensity

Whether trade can be used as an instrument for generating greater employment opportunities for women is an important question for policymakers in developing countries. This paper analyses the role of various trade-related factors in determining female employment intensity in a panel of India’s manufacturing industries during 1998–2011. Import tariff rate is found to exert a negative effect on female employment intensity, supporting the hypothesis that firms, when exposed to international competition, tend to reduce costs by substituting male with female workers. Further, the relative demand for female workers increases to the extent that trade liberalisation leads to resource reallocation in favour of unskilled labour-intensive industries. By contrast, greater use of new technology biases the gender composition of workforce against females. Liberalisation has not led to large growth of female employment in India because the resource reallocation effect has not been strong enough to offset the negative technology effect.

The Western Ghats Imbroglio in Kerala

The bitter opposition in Kerala to the Gadgil and Kasturirangan reports on the conservation of the Western Ghats was a result of information asymmetries, engendered by ignorance of the reports’ contents, attendant disinformation campaigns and rumour-mongering abetted by and favouring the Church, ruling and opposition political parties, and other interest groups to mislead settler–farmers and create a panic situation. The exclusive focus on “ecologically sensitive areas” and efforts to exclude certain areas from it failed to address the larger debate on sustainable development.

‘Designed to Fail’

By taking the case of sewage infrastructure in the city of Gurgaon, the paper makes two observations. First, it argues that the dismal state of infrastructure in most parts of Gurgaon is linked to a culture of uncertainty around the roles and responsibilities of different governmental bodies and...

Preparing to Teach

District Institutes of Education and Training were the Indian state’s first and only significant institutional investment in elementary teacher education, ushering in a new phase of elementary schoolteacher preparation nationwide. This worm’s-eye view of one such institute in a backward district of Maharashtra suggests that, far from being “dysfunctional,” the pre-service teacher education at these places is engaged and responsive to local needs. The problems encountered by student–teachers and teacher–educators have more to do with the neglect and arbitrary nature of the system than the negligence and dereliction of duty of actors and agents within the institution. The proposal by the ministry to do away with teacher education at these institutes demonstrates that policymaking is often based on assumption rather than reality, borne out by research.

Colonial ‘Shock’ and Global Inequalities

Recent literature in New Institutional Economics has sought to study the link between colonialism and global inequalities. This strand of analysis has received substantial attention in academic and policymaking circles. But despite making an important contribution to development theory and deepening our understanding of North–South development differentials, this strand of analysis is not without its own set of problems and contradictions. Taking a critical view of NIE literature on colonialism, it is argued that by taking the nation state as the basic unit of analysis and by ignoring global power asymmetries, the NIE approach absolves the role of capitalist imperialism in creating global inequalities, and instead produces an internalist and Eurocentric theory of development.

Abductive Reasoning in Macroeconomics

Macroeconomic analytical frameworks change with events they are unable to explain. The process is closer to abductive reasoning that is based on both events and analysis, unlike induction which is data-based and deduction where analysis dominates. Abduction reasons backwards from the outcome to deduce the framework with which it is compatible. Therefore, it is useful to study how macroeconomic conceptual frameworks evolve after anomalous outcomes such as crises. The post-crisis churning is assessed from this perspective using criteria such as greater generality, systemic feedback, and structural aspects. Abductive reasoning is also used to extract the structure of aggregate demand and supply consistent with the observed negative correlation inflation and growth in India. If prolonged growth slowdowns do not reduce inflation, it suggests underlying aggregate supply is elastic but volatile, so that supply-side issues, not excess demand, are primary inflation drivers. Monetary and fiscal policy need to focus on elements that reduce costs, while avoiding sharp cuts in aggregate demand.

Shift in MGNREGS from UPA to NDA

The approach of the Bharatiya Janata Party-led National Democratic Alliance-II government towards the Mahatma Gandhi National Rural Employment Guarantee Scheme emphasises asset creation in a target-driven, if necessary, top-down fashion. NDA-II has done this without altering the basic features of the programme, as that needs an amendment in the act, a difficult political proposition given its lack of majority in the Rajya Sabha. Such a shift is in contradistinction to the pursuit of demand-driven job creation with a focus on participatory decentralised development under the United Progressive Alliance governments. While the emphasis on assets creation is not without its merits, the programme has been tilted in favour of agriculturists. Landless rural labour households, one-fourth of India’s rural population, have been excluded from the benefits of individual assets since they own no land. Asset fetishism may affect job creation and its target-driven pursuit may defeat objectives like promoting participatory decentralised development

Citizenship at Sea

Coastal erosions in the Sundarbans have not only dismantled infrastructure and place-based relations, but also adversely affected citizen’s abilities to make claims on the state and to translate these claims into desired outcomes, effecting a “corrosion of citizenship at the margins” which entails waning influence on bureaucratic decisions and, concomitantly, the fading of citizenship rights in practice.

Improving the Drought Resilience of the Small Farmer Agroecosystem

The farming systems followed by farmers in Asia, Africa and Latin America have the potential to deal with the problems thrown up by climate change. This article examines the changing drought ecosystems of poor farmers and also points out that the present paradigm of agricultural development and what it means for small farmers needs to be critically evaluated.

Does Citizenship Abate Class?

Drawing on data from a large household survey in Bengaluru, this paper explores the quality of urban citizenship. Addressing theories that have tied the depth of democracy to the quality and effectiveness of citizenship, we develop an index of citizenship and then explore the extent to which citizenship determines the quality of services and infrastructure that households enjoy. Findings show that citizenship and access to services in Bengaluru are highly differentiated, that much of what drives these differences has to do with class, but there is clear evidence that the urban poor are somewhat better in terms of the services they receive than they would be without citizenship. Citizenship, in other words, abates the effects of class.

Inequality in India–II

To determine the inequality in wage earnings, attention is paid to the distinction between formal and informal types of employment, and the returns to education. Alternative definitions to understand the formal–informal dichotomy are employed to show that employers are increasingly using “informal” workers in formal enterprises. In Part I of this paper (EPW, 29 July 2017), changes in household welfare as measured by per capita household expenditure were analysed.

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