Its a very tinted and convenient analysis.hope someone gives a suitable
reply.

On Tue, Jan 20, 2009 at 12:31 PM, C.K. Vishwanath <
[email protected]> wrote:

> S.gurumurthy's argument shares certain neo-liberal pundits of india very
> positively.but,the ugly underbelly of indian caste system is ignoring.For
> eg.what is the social capital for valmiki community of gujarath?For the past
> few years,social  capital based theories have got an upper hand in elite
> social thinkers.In other words,they are attacking the struggles waged by
> ambedkarian movements and other such subaltern movements of india.their
> problem is lack of social capital.
>
>
>
>
>
>
>
> ---
>
>
>
> Is caste an economic development vehicle?
>
> S. Gurumurthy
> Traditional caste, by reorienting itself, seems to be handling modernity
> well. It is modernity that appears clueless as to how to handle caste.
> In his two articles in The Hindu (Jan. 8 and 9, 2009), Justice Markandey
> Katju has brilliantly articulated what was once the colonial — now, the
> modern — view on 'caste.' He asserts, like most do, that caste is a "social
> evil," "divisive," and "a curse" that must be 'eradicated' if India is "to
> prosper." Yet he concedes that, despite its suspected racial origin, caste
> had done good to India by helping in work specialisation, which had made
> India an economic super power till CE 1700. But, he says, it is an old
> story, and the British advent has changed all that. Asking "could India have
> developed like North America and Europe had the British not come?" he
> answers: "there is no use crying over spilt milk." He is now relieved that
> the evil of caste is being destroyed by technology, people's struggles, and
> inter-caste marriages.
>
> In sum, Justice Katju accepts the western anthropological view of Indian
> society. But setting out to validate the western view, the Dravidian and
> Dalit movements actually ended up repudiating it. For it is the very caste
> that such movements fought to snuff out that finally became the vehicle for
> their assertion, surprisingly proving the old saying, "vishasya visham
> oushadam," that is, if caste were poison, it is its cure too. Justice Katju,
> like most scholars — social, economic and political — seems confused about
> how to handle the 'traditional' caste in 'modern' times. While they see it
> as an evil in politics, here is a different view of caste that brings out
> its positive role in market economics, that is, caste as 'modern'
> development — yes, modern economic development — vehicle.
>
> Popular Indian socio-economic discourse today seems to be not fully
> familiar with the emerging phenomenon of 'social capital' — an area of study
> where culture and economics confluence.. Francis Fukuyama, who authored the
> first bible of globalisation (The End of History and the Last Man) and made
> individualism, the free market, and liberal democracy demigods, wrote his
> next book Trust in which, on rethinking, he captured culture as the "20 per
> cent missing element" of economics. As contrasted with individualism-
> dominated societies, he says, relation-based societies generate culturally
> defined social capital. Social capital is non-formal networking based on
> kinship within societies. The emerging view is that social capital expedites
> the socio-economic development process.
>
> Fukuyama had missed out India, therefore caste, as India was not worth
> noticing when he wrote the book Trust. But contemporary writers and modern
> minds like Gurcharan Das and Swaminathan Ankilesaria Aiyar in India did not
> miss that out what Fukuyama had. They perceive caste as a potential engine
> of growth and development. Swaminathan Aiyar saw it as the social capital of
> India. That Justice Katju seems to be unaware of the empirical evidence of
> caste as a development vehicle in economics is evident from his remark that
> "a scientific study' on caste 'is yet to be done."
>
> Caste is a very strong bond. While individuals are related by families,
> castes link the families. Castes transcended the local limits and networked
> the people across. This has prevented the disturbance that industrialism
> caused to neighbourhood societies in the West, resulting in unbridled
> individualism and acute atomisation. In independent India, a contradiction
> has developed between the individualism- centric Constitution and caste
> collectives. Caste-based politics has actually helped to harmonise this
> contradiction between the formal Constitution and the non-formal social
> architecture. In a sense, caste-based politics mediates between traditional
> society and the modern state in India. Yet it can still be argued that the
> caste element in politics is not desirable. But caste in economics is a
> positive drive of development. Read on.
>
> The caste system, which was admittedly savvy with economics over millennia,
> has in modern times engaged the market in economics and democracy in
> politics to reinvent itself. It has become a great source of
> entrepreneurship. Studies show that the castes-based industrial clusters
> lead the nation's industrial development. A UNIDO study (1997) shows that
> out of the 370 small scale industrial clusters and 2600 artisan-based
> clusters, which generated 70 per cent of India's industrial output, 66 per
> cent of exports, and 40 per cent of employment, only 13 were
> government-sponsore d. The rest had evolved out of the caste/community-
> based network.
>
> Take the case of backward castes. The entrepreneurship generated by the
> Patel caste today dominates two-thirds of the global diamond trade. The
> Nadar caste runs over three-fourths of the retail trade, match works, and
> fireworks in Tamil Nadu. In Tirupur, Goundar caste entrepreneurs, 80 per
> cent of whom are not even matriculates, compete at the global level,
> exporting knitwear garments valued at over $2 billion. The World Development
> Report 2001 found that the social networking within the Goundar caste and
> the circulation of capital by trust had enabled Tirupur's rise as a global
> knitwear hub. In Sankagiri and Namakkal in Tamil Nadu, Goundar caste
> entrepreneurs own the largest fleet of lorry, tanker, and tipper transport
> vehicles in the whole of India. Ninety per cent of them were farmers earlier
> and 20 per cent were just rearing cattle. The list is too long to be
> captured here.
>
> An empirical study was conducted in some 25 caste-based industrial clusters
> in different places in India by a team of academics and professionals
> trained in modern business under the aegis of the Tamil Nadu Swadeshi
> Academic Council. It showed that whether it is the Jatavs of Agra and
> Kanpur, or the Nadars, Naidus, or Goundars of Tamil Nadu, or the Patels of
> Gujarat, or the artisan Ramgadiyas of Punjab, they have risen as competent
> entrepreneurs – many at the global level – mostly by leveraging on their
> kinship-based social capital. Most of them have had very little education.
> It is the community that has acted as the knowledge provider thorough
> kinship and social network.
>
> More information on the caste-based growth model is available in the book
> Indian Models of Economy, Business and Management [Prentice-Hall of India
> 2008] by P. Kanagasabapathi who was part of the Swadeshi Academic Council
> team. A recent book by Harish Damodaran, India's New Capitalists: Caste,
> Business, and Industry in a Modern Nation (Palmgrave Macmillan) also points
> to the evolution of caste as a development vehicle. A study of unregistered
> small and tiny enterprises by the National Sample Survey Organisation (NSSO)
> in 2005 showed that there were over 42 million such units, out of which 45
> per cent were owned by backward castes, scheduled castes, and scheduled
> tribes. These 42 million units provided the largest employment outside
> agriculture, engaging 90 million hands, and growing at an annual rate 2.6
> per cent during 1990-98. So caste is turning into social capital in the
> market economy, and emerging as an open air university for entrepreneurship.
>
> To conclude, traditional caste, by reorienting itself, seems to be handling
> modernity well. It is modernity that appears clueless as to how to handle
> caste. The modern elites see caste as a political nuisance. But they seem to
> be unaware that its perceived nuisance in politics can be mitigated by
> promoting the economic potential of caste. Elite India's dilemma about caste
> seems to be outdated.
>
> (The writer is a political and economic commentator and a corporate
> consultant. His email id is g...@gurumurthy. net <guru%40gurumurthy.net> )
>
> http://www.hindu. com/2009/ 01/19/stories/ 2009011955440900 
> .htm<http://www.hindu.com/2009/01/19/stories/2009011955440900.htm>
>
> "Do not judge me by my actions;Do not judge me from man's point of
> view""Judge me from God's - by the hidden purpose behind my actions.
> Regi George wishing you Good Luck. Thanks
>
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