I would call his arguments the preachings of a sect of upper caste people who 
want caste domination to persist . His arguments on the contribution of caste 
in economic progress is far dimnished by the friction created by the hate 
philosohpy that caste is perpetuating from the antiquity . His vision is from 
that of an upper caste angle who made economic progress out of the lower caste 
people by oppression and suppression . What economic progress , the lower caste 
people of India including the Dalit community made except providing cheap 
labour to the upper caste ? Specialization of jobs should not be based on caste 
, it should be based on capacity and willingness of the individual to work . 
Caste has posed a huge threat in the socio economic development of the country 
. It has created divisive politics , bifurcated the student community based on 
colour and above all annihilated the feeling of togetherness . The only 
solution for this menace would be intercaste marriages . 
Also the state should not recognize an individual based on his/ her caste . 

--- On Tue, 20/1/09, C.K. Vishwanath <[email protected]> wrote:

From: C.K. Vishwanath <[email protected]>
Subject: [GreenYouth] Is caste an economic development vehicle?
To: [email protected]
Cc: [email protected]
Date: Tuesday, 20 January, 2009, 1:01 PM






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 )

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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