All posts by PeterKi

Developmental Concerns

India’s Developmental Concerns

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As indicated in the economics section of this blog, India has sustained economic growth upon liberalization of the country, but at a cost of uneven development between states. Even with my own experience in India, I learned that within-state development can be uneven as well (e.g. a thriving metropolis versus an underdeveloped hinterland). Thus, my development concerns for India will focus primarily on ensuring that both slower states and less-developed parts of high-performing states catch up for everyone’s benefit.

To start with, providing relevant education and skills to Indians will be imperative. India is in the midst of transitioning to a knowledge-based economy, with skilled workers who can drive growth and innovation. Some challenges include coordinating skill development within the government, prioritizing skill formation in both formal and informal education institutes, acknowledging the informal sector, and standardizing required skills by industry. The cost for education infrastructure is also enormous. However, the government is not alone, as both NGOs and private companies are doing their part to achieve these skill development needs.1

Furthermore, fostering more business and entrepreneurship will be important for Indian development. One key component is financing MSMEs (Micro, Small, and Medium Enterprises), a significant component of economic growth and poverty reduction. An ongoing World Bank project is focusing on increasing financial access for MSMEs, particularly in services and manufacturing. Notably, these businesses also matter to slower states as a good proportion of rural MSMEs are found there.2

Although both initiatives are crucial to India’s success, my concerns will still focus on ensuring that slower states and areas catch up to balance development across the country. Greater focus should be placed on developing skills and fostering entrepreneurship in the more underdeveloped parts of India while halting brain drain.

Footnotes

1. Tara, S. N., & Kumar, N. S. (2016). Skill development in India:: In conversation with S. Ramadorai, Chairman, National Skill Development Agency & National Skill Development Corporation; former CEO, MD and Vice Chairman, Tata Consultancy Services. IIMB Management Review, 28(4), 235-243.

2.  Government of India and World Bank Sign $500 Million Agreement to Improve Access to Finance for Micro, Small and Medium Enterprises. (2015). Retrieved February 16, 2018, from http://www.worldbank.org/en/news/press-release/2015/03/31/india-sme-project-signing

India's Civil Society

India’s Civil Society

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It is worth mentioning the role that civil society plays in India’s development, despite conversations about its national strategy. India maintains a vibrant civil society with around 1.5 million NGOs. From religious activity to community service, there is a variation in the kinds of initiatives that these NGOs focus on.1

Historically, civil society was observed as a complement to the government’s development needs. In the latter half of the 20th century, India’s NGO sector grew and received formal recognition by the government as state development partners. Although grassroots organizations were growing in this sector, the 1990s structural adjustment period lead to the rise of larger agents of aid, which pushed these smaller organizations from the limelight.1

Notably, over the years, NGOs have been influenced by the government’s development agenda. Whether it was capital-oriented priorities or anti-poverty programs, the NGO sector has shifted its focus accordingly in line with the government. Even during the structural reform period of the 90s, NGOs began to prioritize scaling up and working with the state to become a legitimate force.1

Indeed, there is a diversity of ways that NGOs are approaching the government (whether as partners or as opposing agents), but the general feeling is reluctant, yet pragmatic towards state cooperation. Nonetheless, the government has created bodies to encourage funding of NGOs (which potentially runs into problems of autonomy). As for general goals, aspects such as improving some socioeconomic services or increasing participation have converged. Differences are found in their approaches between a bureaucratic government and a more flexible NGO sector.1

Footnotes

1. Samaj, P. (2009). Overview of civil society organizations: India (Civil society brief). Retrieved from http://ris.org.in/pdf/fidc_policybrief7.pdf

Present Indian IR

India’s Foreign Relations Today

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With the rise of Narendra Modi, foreign policy in India has shifted away from non-alignment and towards pragmatic engagement of all major powers in the world. Even within its regional sphere, the Modi government increased its focus on South Asian relations to the renewed expectation of its neighbours.1

As for conflicts, Indian foreign policy indicated a firmer response to China concerning border management. In fact, China’s rise remains a significant challenge to India, where the Modi government seeks to balance trade and economic ties with increased military presence as a deterrent. The current government is also vying for increased diplomatic relations in the face of China’s dominance.1

When evaluating how India is faring today in its foreign relations, Narendra Modi has been successful in engaging with the outside world but not necessarily improving its neighbourly relations. In fact, China appears to have been swaying India’s neighbours through investments in their economies. With Pakistan, relations have remained mixed with impromptu visits and military strikes in the contested region of Kashmir. And with former Cold War rivals, closer relations seem to be shifting away from Russia and towards the United States.2

Beyond bilateral relations, India’s engagement with international organizations remains diverse and its reputation towards developing countries is still excellent. The country is involved in many multilateral institutions such as the G-20, the G-77, the World Bank, and so forth. Of course, as discussed in this seminar, India remains an important figure in organizations such as IBSA and BRICS, especially in relation to development initiatives.3

Footnotes

1. Pant, Harsh V. (2014, November). Out With Non-Alignment, In With a ‘Modi Doctrine’. The Diplomat.

2. Jha, M. (2017, June 9). 5 Foreign Policy Trends In Three Years Of The Modi Government. The Huffington Post India.

3. Tilak, J. (2013). South-South Cooperation: India’s programme of development assistance–nature, size and functioning. Asian Education and Development Studies, 3(1), 58-75.

A Brief History

India’s Entire Pre-Independence History In A Few Words

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One could trace India’s history as far back as the Indus civilization between 2600 and 2000 BCE where prominent religions such as Hinduism, Buddhism, and Jainism were born. A few thousand years later, the subcontinent experienced invasions by Muslim rulers who began to integrate and reside in the region by the 13th century.1

The last 500 years of history began with the Mughal Empire rising between the 16th and 18th centuries as an expanding civilization. This was also a time when European powers began to establish trading posts there.2 Eventually, the Mughal Empire itself declined and lead to the rise of various states based on ethnic groups.3

Although European powers such as France and Portugal had trading missions to the subcontinent (with their remnants still present in Goa and Puducherry), it was the British who rose throughout the Mughal decline. First, Britain’s East India Company began ventures to India for spices and cotton in 1600.4 Then, the Company began to hold dominion over the region which eventually underwent direct British control in 1858.5 1

The formation of the British Raj introduced an imperial bureaucracy, railroads, and colonial modes of production to extract raw materials to Britain. The subcontinent also experienced an increasing nationalist movement.6 By 1947, independence was achieved, but with a partition between a Hindu India and a Muslim Pakistan. The British systems of governance in India remained along with the usage of English, with Hindi becoming an official language as well.1

Footnotes

1.  India. (2018). In Encyclopædia Britannica online.

2. India. (2018). In Encyclopædia Britannica online. (The Mughal Empire section)

3.  India. (2018). In Encyclopædia Britannica online. (The Regional States section)

4. India. (2018). In Encyclopædia Britannica online. (The British section)

5. India. (2018). In Encyclopædia Britannica online. (Revolution in Bengal section)

6. India. (2018). In Encyclopædia Britannica online. (Government of India Act of 1858 section)

Historical Indian IR

History of India’s Foreign Affairs

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India’s independence was achieved on the heels of the Cold War, a time where the superpowers of the United States and the Soviet Union competed. However, India took a noticeably different path by aligning itself with the Non-Alignment movement. India’s first PM, Jawaharlal Nehru, proclaimed India as a part of this group where they commit to actions supporting peace.1

In the 1960s and 70s, India engaged in balancing its relations with other countries, but its international position waned with wars against China and Pakistan along with the souring of geopolitical relations in South Asia. Especially with Pakistan’s support by China and the US, India sought Soviet assistance in 1971. This was followed by an effort to improve relations with other countries in general (e.g. China, the US, etc.) by the 1980s, while further engaging in South Asia.2

In the 1990s, the end of the Cold War forced a shift in India’s foreign policy due to the displacement of its core, non-alignment purpose. Especially with the Soviet Union’s fall, India sought stronger ties with the United States and developed countries in general. The country also forged better ties with Central, Southeast, and East Asian states. Although India’s non-alignment opinion against the Global North’s dominance still persists, there are also differences with other Global South countries concerning national interests. 2

Footnotes

1.  Nehru, J. (1961). Conference of Non-Aligned Nations. Speech.

2. Heitzman, J., & Worden, R. L. (1995). Foreign Relations. India: A Country Study (Washington: GPO for the Library of Congress, 1995).

Developmental Past, India's National Government

Developmental Past of India

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Historically, India has been at the forefront of South-South development initiatives starting with the 1950 Colombo Plan, and later being a prominent player in the 1955 Bandung Conference, the Non-Alignment Movement in 1961, and the Group of 77’s formation in 1964. Their SSDC track record only grew when they became a founding member of IBSA and BRICS, asserting its alternative way to development since the mid-20th century.1

Unlike Western aid, India has emphasized its development cooperation to be mutually beneficial and not focusing simply on financial assistance or one-way relationships. With a collaborative mindset, India’s development programs focused on reducing poverty and increasing economic growth instead of mere debt relief. Specifically, the country has executed a “mission approach” strategy by identifying growth drivers for development and assisting partners to greater growth. By understanding a partner’s economic scenario, key sectors would be highlighted and a plan could be made on what resources to provide as equals.2

One major part of India’s development package is the Indian Technical and Economic Cooperation (ITEC) Program, which mainly devotes itself to training, projects, and technical assistance to partner countries; this can range from governance studies to IT skills. A sister program called the Special Commonwealth Assistance Programme (SCAAP) covers only African countries. These two programs combined reach over 150 countries and ITEC itself has given $2 billion+ worth of technical assistance.1

However, a few challenges exist. India does not devote as much money towards assistance programs and has to compete with other donors. India also has to preserve its “goodwill” attitude towards assistance and ensure that commercial interests do not take over. Finally, there is an issue of detailed documentation that is required for India’s aid engagement and to allow for better policymaking.1

Footnotes

1. Tilak, J. (2013). South-South Cooperation: India’s programme of development assistance–nature, size and functioning. Asian Education and Development Studies, 3(1), 58-75.

2. Chaturvedi, S., & Mohanty, S.K. (2016). Indian development cooperation: a theoretical and institutional framework (Policy brief 7). Retrieved from http://ris.org.in/pdf/fidc_policybrief7.pdf

 

 

A Diverse Society

The Diversity Of India On Many Fronts

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One must realize that India simply cannot be generalized as Apu from The Simpsons. In fact, there is so much diversity in the country that it is a miracle it functions cohesively at all.

First, with ethnicities, the People of India Project (beginning in 1985) identified 4635 different ethnic groups or communities.1 In relation to ethnicity, the 2011 Indian census seems to suggest that there are 4.6 million castes and sub-castes. But even the methodology of identifying castes becomes debatable, and one scholar claims that there are multiple caste systems with different understandings of positioning.2

Going beyond caste, religion is also a diverse arena in India. Although nearly 80% of Indians adhere to Hinduism, 14.2% are Muslims, 2.3% are Christians, and 1.7% are Sikhs.3 Considering the fact that India’s population has over a billion people, these seemingly small percentages of other religions add up substantially in absolute terms (e.g. Muslims would make up 100 million people in India).

Another diverse factor is India’s languages. According to Ethnologue, there are 462 listed languages in the country where 448 of them are still living.4 Even when you observe the states, it is found that many of them have their own separate languages (e.g. Kannada for Karnataka and Tamil for Tamil Nadu). Contrary to initial belief, Hindi is spoken only by 41% of the population while 14 other official languages exist.2

With various languages, ethnic groups, and religions, India proves itself to be incredibly diverse in its demographic composition.

Footnotes

1. Singh, K. S. (1992). People of India: an introduction.

2. Iwanek, Krzysztof. (2016, August). Counting Castes in India. The Diplomat.

3.  The World Factbook: INDIA. (2018).

4. Simons, G. F., & Fennig, C. D. (2017). India. In Ethnologue. Dallas: SIL International.

Indian Politics

The Political Governance of India

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It is no surprise that given previous British rule, India would retain much of its governmental structures left by colonial administration.

Much like the Westminister system of bicameral legislatures, the Indian Parliament contains the Rajya Sabha (Council of States) and the Lok Sabha (House of the People). Of course, as a republic, India does not observe a monarch but rather a president. The actual maintenance of government is done by a bureaucracy with various ministries and agencies. Unfortunately, there is the issue of too much bureaucracy that has hampered India’s administration.1

The central government aside, India, like many federal countries, have states (with their own governments) and these states are further divided into districts. Even districts can be divided into smaller units containing their own local governance structures.1

As for the kinds of political parties dominating the Indian scene, two parties are worth mentioning. The first party, the Indian National Congress (or the Congress party), has existed since 1885, even before Indian independence (but with later divisions). The second party is the BJP (Bharatiya Janata Party), a more right-wing party appealing to Hindu nationalism.1 The former party ruled India under Singh’s leadership before the present administration, which is run by the BJP under Narendra Modi.

Footnotes

1.  India. (2018). In Encyclopædia Britannica online. (Government and Society section)

The Economy

India’s Economy (Post-Independence)

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Initially, after independence in 1947, India promoted self-sufficiency by focusing on rapid industrialization and shrugging off its dependence on foreign exchange. To achieve this, the country enacted import-substitution measures which also restricted trade. Furthermore, there was an emphasis on having a large public sector involved in producing capital goods while controlling the private sector; however, small enterprises were still encouraged to produce manufactured goods. 1

By the 1980s, and accelerating in the 1990s, India began to relax its restrictions on the private sector due to a shift in the political and economic climate. 1980s policies included liberalizing imports (especially capital goods), increased access to foreign credit, and the easing of licensing requirements in some industries. In the 1990s, India liberalized its international trade and finance structures even further while leaving the labour market as is.1

To summarize sector trends since the 1980s, India’s manufacturing remained unchanged or declined, the service sector soared via the boom of the IT industry, and agriculture appeared to have declined. Of course, these sectors and general economic progress varied by state, and it is suggested that the policies enacted at the state level mattered in the 1990s, creating a divergence of development. Greater human capital and entrepreneurship would contribute to a state’s higher economic growth. However, a shift towards services by nearly all states is witnessed. 1

Moving forward, the decentralization of states in their economic progress created a divergence where faster-growing states are looking more like developed countries while slower states are falling behind via high births and low education. These latter states are expected to follow a traditional growth path via manufacturing, but they require further reforms and restructuring to do so. Indeed, India’s economic growth is evident, but inequalities remain.1

Footnotes

1.  Kochhar, K., Kumar, U., Rajan, R., Subramanian, A., & Tokatlidis, I. (2006). India’s pattern of development: What happened, what follows?. Journal of Monetary Economics, 53(5), 981-1019.