Poverty and Inequality

Jyoti Yadav & Arun Kumar Gond

This book “Creation of Poverty and Inequality india: Exclusion, isolation, domination, and extraction” by Parthasarathi Shome [Bristol University Press, 2023, 344 p. 2,231] delves into the origins of poverty and inequality in India, examining various dimensions such as population, happiness, national income, human development, and macroeconomic indicators. The author analyses the root causes of these issues, considering both international and domestic factors. On a global scale, historical injustices like racism, colonialism, and slavery are identified as key contributors to inequality. In the Indian context, the rigid caste system and the persistent issue of untouchability are highlighted as major domestic challenges. The book also sheds light on the often-overlooked social and economic divides, including the rural-urban gap, gender disparity, and the declining impact of the demographic dividend. Additionally, it addresses critical concerns such as malnutrition, inadequate healthcare, poor sanitation, lack of access to clean water, and the effects of climate change all of which exacerbate inequality. In conclusion, the author proposes practical measures to combat poverty and inequality, emphasising the crucial role of India’s youth as a transformative force. The book argues that if young people actively contribute, significant progress can be made toward achieving social and economic equality.

This book is divided into four parts, discussing poverty and inequality in social, economic, and political aspects. The first part talks about discrimination in both historical and modern times. Inequality and poverty are not new to the world or India. In the past, they existed in the form of racism, slavery, and colonialism. In India, the caste system has been a major cause of inequality, leading to exclusion, isolation, and domination. This book explains that along with social problems, political ideologies also affect marginalised communities, making their struggles worse. The real issue is not a lack of ability but a lack of opportunities. Dreze and Sen (1995) said that poverty in India is directly linked to the lack of capability. The book connects this idea to the debate on GDP growth, showing that economic growth does not always mean personal progress. Health services, education, gender equality, and human well-being should be measured using indicators like the Human Development Index (HDI) and Multi-Dimensional Poverty Measure (MDPM). These measures provide a better picture of social development, but more factors need to be included. In India, discrimination based on gender and social status is common, making inequality continue without much resistance.

Similar inequality can be seen in the United States, where Black people face racism in job opportunities and income. Wilkerson (2020) compares India’s caste system to the way Nazi Germany treated Jews, and traces of such discrimination still exist. India’s colonial history also contributed to inequality, as British policies on land and taxation created economic divisions. The idea of growth-focused development does not reflect the true level of inequality; instead, it only focuses on numbers. Studies by Louis Dumont, Kathleen Gough, and K.M. Kapadia on caste, feudal systems, and women highlight India’s social problems. These issues need to be addressed at the policy and administrative levels to bring real change.

The second part of the book compares the economic conditions of China, Brazil, and India from different perspectives. It highlights that while China and India have similar GDP growth rates, inequality and poverty are much deeper in India. The same pattern is seen in gross capital formation. Trade deficits and trade surpluses have shaped the economies of both India and China for a long time. Special economic zones (SEZs) were created to boost economic growth, but they did not succeed much in India due to corruption. This raises the need to rethink taxation policies to attract foreign direct investment (FDI), which has been more successful in China than in India. Reforms like demonetisation, meant to improve the economy, also failed because corruption is deeply rooted in India. The negative effects of such policies were mostly felt by the poor. Political parties and their ideologies also influence economic and social policies, often changing priorities between human rights protection and favouring specific majority or minority groups. The book also reminds one of Malthusian population theory. China’s one-child policy had long-term negative effects, showing why population control is important. If not managed well, population growth can reduce resources, harm public health facilities, and affect water supply and sanitation. In India, rapid population growth is leading to more economic problems, such as a decline in per capita income despite GDP growth. Extreme poverty is still high compared to Brazil and China. The book provides data analysis showing that, since independence, the income growth rate across different groups has improved, especially from the 1980s to 2017. However, wealth distribution remains highly unequal. Around 80% of the country’s wealth is controlled by the top 1% of the population, making them millionaires and billionaires. In India, China, and Russia, this concentration of wealth among the top 1% means the remaining 99% see little to no income growth.

The third part of the book explains the reasons behind inequality and poverty across the world. It talks about how racism, colonialism, and slavery created class divisions in society. These divisions still exist today in different forms. The book describes how inequality happens in stages- first, certain groups are excluded from society; then they are isolated into separate categories, after that, they are controlled both socially and economically, and finally, they are treated unfairly without questioning. This pattern has been used by invaders, landlords, colonial rulers, and Western countries. First, they discriminate, and then they suppress. Racial discrimination is not just a social issue; it also affects the economy. Western countries continue to hold power over developing nations, keeping inequality alive. The book also looks at the caste system in India, which has been a major cause of inequality for centuries. Even though there are legal and constitutional protections, caste discrimination still exists. Unlike other social divisions, caste is something people cannot change, making it harder to escape. Caste also affects income, as people from lower castes often earn less. Government policies have tried to reduce caste-based inequality, but they have not been fully successful. Dr B R Ambedkar, who belonged to a Scheduled Caste, faced discrimination and worked hard to remove the caste system through legal and social reforms. He wrote about how Shudras, who were once equal, were pushed down by the Brahmins and treated as outcasts. Manusmriti even justified discrimination against them. Even today, caste-based discrimination exists and needs to be completely removed. Government programmes such as Nirmal Bharat Abhiyan and Swachh Bharat Mission have improved sanitation, but there are still problems in rural areas. Unequal water supply creates conflicts between states and divides society further. Climate change is another issue that affects countries differently. According to the Climate Risk Index 2019, Mozambique was the most affected; while India ranked seventh, losing 0.72% of its GDP. Rich countries contribute more to pollution, but poorer countries suffer the most from climate change. India also faces challenges in providing proper housing and compensation to indigenous people who are displaced by big projects like dams and power plants. While such projects are needed for development, they often force poor communities to leave their homes without enough support. To reduce inequality, India needs strong policies that ensure development benefits everyone.

The fourth part of the book suggests ways to reduce poverty and inequality by focusing on radical humanism, which believes in individual freedom and human dignity as the foundation of a fair society. While many programmes and policies already exist, real change requires improvements in the administration, economy, and political system. Tax policies need to be improved. The government should introduce taxes on wealth, gifts, and inheritance to reduce the gap between the rich and the poor. A fair corporate tax should be applied to both existing and new manufacturing companies. This will encourage industries to grow in a way that benefits both businesses and the country. To protect the environment, companies that cause pollution should be taxed, while those following eco-friendly practices should get tax benefits. India has a large youth population, which can be used effectively in various ways. Young people can help in monitoring and improving government programs related to social issues, environmental protection, human rights, and women’s empowerment. Their participation in awareness campaigns, teaching programs, and policy monitoring can play a big role in reducing poverty and inequality. Political reforms are also necessary to ensure that governance focuses on people’s welfare instead of political party interests. The government should work on protecting human rights and promoting fair policies. At the global level, India should take strong steps to represent its interests. It should aim for a permanent seat on the UN Security Council and raise important economic and agricultural issues at the International Monetary Fund (IMF). India should also actively participate in meetings with global organisations like the G20 and the OECD to promote its economic and social interests on an international level.

[The reviewers are deeply grateful to their research supervisor, Dr Keyoor Pathak for the suggestion
Jyoti Yadav, Research Scholar, Department of Sociology, University of Allahabad, Prayagraj, Uttar Pradesh
Arun Kumar Gond, Research Scholar, Department of Sociology, University of Allahabad, Prayagraj, Uttar Pradesh]