Question

What efforts have been done by democratic coibyrues for reduction of inequality and poverty?

Answer 1

The economic policies India pursued after independence gave the state the role of allocating resources across sectors and federal states, and made it a major instrument of redistribution. However, since the onset of economic reforms in 1991 the state has been reduced to a merely political instrument, while the allocation of resources and even their redistribution are seen as the outcome of market-based policies. This withdrawal of the state from the essential function of shaping economic outcomes has eroded its role as an instrument of social inclusion. Recent years have seen a rise in allegations of crony capitalism, and the reduced role of the state in reducing barriers to equality of outcomes.

However, in the last decade, pro-poor democratic politics have been strengthened through the recognition of various rights, such as the right to education, to information, to food security (through the National Food Security Act), to employment (through the Mahatma Gandhi National Rural Employment Guarantee Act), and to land (through the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act).[1]  While the legal recognition of these rights demonstrates that the government is responsive to the needs of the poor, these developments must be seen in the context of India’s increasingly free-market economic policies.

The fact that the two trends – increasing inequality, and gains to the poor in terms of legal rights – have occurred during the same period is a reflection of the strength of India’s democratic processes. As in other developing countries, India’s citizens are not equal before the market. The unequal nature of endowments and opportunities available to citizens and the subordination of markets to existing social and political institutions perpetuates inequality. However, the public debate engendered by democracy means that the state has remained responsive to the demands for redistribution.

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