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Prejudice against reservation policies: How and why?

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SPECIAL ARTICLE

Prejudice against Reservation Policies

How and Why?
Sukhadeo Thorat, Nitin Tagade, Ajaya K Naik

Based on data and theory, this paper critically examines The Issue

R
the validity of popular arguments against reservation ecognising the specific problems pertaining to the
marginalised classes, the Constitution made an excep-
policies, namely, that reservation has bypassed the poor,
tion by providing special provisions for the advance-
that it has reduced efficiency, that economic criteria are ment of the Scheduled Castes (SCs), Scheduled Tribes (STs),
better than caste and that there should be a time limit and the socially and educationally backward classes. The
for the application of reservation policies. The paper Directive Principles of State Policy under the Constitution also
put an obligation on the state to “promote educational and
exposes the weak empirical and theoretical basis of
economic interests of SC and ST and other weaker sections,
these arguments and the prejudices underlying them. It and protect them from social injustices and all forms of exploi-
also makes suggestions to reform reservation policies to tation” by enacting appropriate laws and policies. These provi-
extend them to private employment and education, and sions were translated into laws and policies by the state, such
as in the Protection of Civil Rights (PCR) Act 1955, followed by
proposes a reparation policy to compensate for the
the Prevention of Atrocities (PoA) Act 1989, and the Reservation
wilful denial of the right to property and education to Policy (RP) applicable in legislature, employment and education
the former untouchables. in 1950.
While the purpose of anti-discrimination laws is to ensure
equal citizenship rights to the SCs and STs, that of the RP is to
provide protection against discrimination in the spheres of
employment, education, and legislature to ensure a fair share
in these for the SCs and STs and to bring about an improvement
in their economic and educational status. These two policies
have been in operation for about 60 years. However, unlike
other policies for the poor, the RP faces constant resistance in
one form or another, from some, if not all, influential quarters.
The most recent campaign against it originated in political
quarters with the suggestion that caste should be replaced by
economic criteria for the implementation of reservation. While
the suggestion was immediately withdrawn, academicians
continue to put forth old and new arguments, disregarding
theoretical and empirical considerations for RPs. The most
frequent criticisms against this policy are: that the RP has
achieved limited success in solving the problems of the SCs/
STs; that the economically better off among the SCs and STs
have benefited more than the weak; that since RP has achieved
only limited success in helping the poor among the SCs/STs,
caste should be replaced by economic criteria for reservation;
that the policy has encouraged inefficiency; and that there is a
need to set limits for RPs (Thorat et al 2007).
In this paper we examine how the arguments against RPs
are being articulated, then analyse the motives behind the
Sukhadeo Thorat ([email protected]) is professor emeritus, arguments and their theoretical and empirical bases, and
Centre for the Study of Regional Development, Jawaharlal Nehru suggest reforms in the policies. Since originally the RP was
University, New Delhi; Nitin Tagade ([email protected]) and justified for the erstwhile untouchables, it is appropriate to
Ajaya K Naik ([email protected]) are at the Indian Institute explore the arguments concerning the SCs, with a focus on
of Dalit Studies, New Delhi.
reservation in employment.1
Economic & Political Weekly EPW FEBRUARY 20, 2016 vol lI no 8 61
SPECIAL ARTICLE

Effective Outcomes income-earning capital assets. Unfortunately, the incidence of

It is often argued that the RP in employment has achieved ownership of agricultural land and enterprises among the SCs
limited success in solving the problem of the SCs/STs, and that is meagre. Most of them are small farmers and petty non-farm
the general pro-poor policy is, therefore, a better alternative producers/business households with low incomes, steeped in
for them. While it is true that the SCs/STs continue to suffer relatively high degree of poverty. In 2011–12, among the SCs,
from a relatively high level of poverty, attributing this entirely about 29% of the farmers, 24% of the non-farm producers,
to the limited success of reservation in employment would be 43% of the farm wage labourers, and 28% of the non-farm
incorrect. The employment reservation may have shortcom- casual labourers were poor. Similarly, in urban areas, 23% of
ings but it also has positive achievements to its credit, which the SC self-employed producer/business households and 38%
need to be recognised. In order to provide evidence with of the casual labourers were poor. On the other hand, the
regard to the strengths and weaknesses of the policy of reserva- degree of poverty among the SC permanent salaried employees
tion in employment, we use two sets of data, namely, that col- was only 12% to 13% in rural and urban areas combined, which
lected by the central government and that available in the is much lower compared to the corresponding figures for the
National Sample Survey (NSS) on employment for 2011–12. The other occupation groups. This indicates that employment in
data on central public services covers the central government, permanent salaried jobs through reservation had reduced
nationalised banks, public sector undertakings and others. poverty to a significant extent among the targeted beneficiaries.
This data, however, excludes state level services. The NSS data However, since the coverage of government jobs under reserva-
overcomes these limitations by including all the services at tion is so small (only 18% of the total non-farm salaried em-
both the centre and the states.2 ployees), it had limited impact on the overall well-being of SCs.
In 2012, there were about 9 lakh SCs in the central public Thus, the prevalence of a high level of poverty among the SCs
services, which was equivalent to about 20% of the total is not due to the poor performance of the reservation policy as
number of people employed. According to the NSS, there were has been suggested by critics, but is due to low job coverage
about 154.1 lakh permanent employees in 2012, of which 25.86 under reservation. Even after providing a limited number of
lakh were SCs, accounting for about 17% of the total. Thus, it jobs, reservation has induced some group mobility. In fact, the
can be concluded that the policy of reservation in employment social returns on the reservation policy have probably been
has been successful, insofar as the share of SCs in government higher than the initial benefits accruing to individuals. In the
services is proportionate to their population share of 16%, absence of reservation in employment, the decline in poverty
which signifies an obvious positive impact. While this is the would have been much less than has been achieved.
positive side of the outcome of reservation in employment, the Table 1: Non-farm Regular SC Employees in India
main limitation of this policy is the narrow coverage of the Type of Employees 2004–05 2011–12
In Lakh In % In Lakh In %
targeted beneficiaries, which produces limited results in Total government 40.71 100 45.41 100
reducing poverty among the SCs and STs. This narrow coverage Government permanent 26.55 65.2 25.86 56.9
is due to two reasons: first, the exclusion of private sector jobs Government non-permanent 14.16 34.8 19.55 43.1
and the exclusion of temporary government jobs from reserva- Total private 73.83 100 94.29 100
tion, with the result that reservation in employment is Private permanent 5.34 7.2 6.42 6.8
Private non-permanent 68.49 92.8 87.87 93.2
confined to a tiny segment of permanent government employ-
Total employees 114.54 100 139.7 100
ees only. In 2012, of the 856 lakh total non-farm regular
Permanent 31.89 27.8 32.28 23.1
salaried employees (which exclude farmers and non-farm Non-permanent 82.65 72.2 107.42 76.9
producer/business and casual labourers), about 70% (or 6oo Percent of GPE to total employees 23.2 18.5
lakh) were employed in the private sector, whereas only the Percent of GPE to total workers* 904.81 2.9 899.76 2.9
remaining 30% (256 lakh) were employed in the government GPE—Government Permanent Employees, * Total number of workers includes both farm
and non-farm workers.
sector. And even among these 256 lakh government employees, Source: NSSO Employment Survey, 2004–05 and 2011–12.
about 40% were temporary and hence not covered by reserva-
tion policies. Thus, only about 154 lakh or 60% of the govern- Benefits for Poor
ment employees—those permanently employed—were covered The most frequent criticism of the RP is that those who are
under reservation. This figure accounts for only about 18% of the economically better off among the SCs have benefited more
total non-farm regulated salaried employees, including those than the weak, and consequently, caste should be replaced by
in the private and government sectors, with the balance 82% economic criteria, for the enforcement of reservation. The
remaining outside the purview of reservation. In 2012, the argument for economic criteria will be discussed later, but we
permanent government employees who were SCs accounted first examine the factual basis of the argument that job
for only 18.5% of the total SC non-farm regular salaried reservation has had limited benefit for the economically weak
employees (or only 3% of the total SC workers), which is indeed sections. Depending on the data, three indicators have been
a very small proportion (Table 1). used to estimate the share of the weak vis-à-vis better off
The minuscule share of permanent employees who have among the SCs in employment reservation. From the available
benefited from reservation in the total workforce among the central government data, we take the percentage of SC
SCs would not matter if the rest of the persons were to own employees in Grades D and C as an indicator of the access of
62 FEBRUARY 20, 2016 vol lI no 8 EPW Economic & Political Weekly
 SPECIAL ARTICLE

the relatively poor to government jobs, as most of these employees areas, 82% of the SC employees who were graduates or had
would have an economically weak background. The NSS empl- higher levels of education possessed land less than 1.23 acres,
oyment data for 2011–12 provides the number of SC govern- which highlights their relatively weak financial status. In
ment employees under reservation by their education level. fact, the ratio of those who owned less than 1.23 acres of
We assume that the share of those educated up to the higher land varied from 76% to 89% for employees with different
secondary would fall in the category of the weaker sections education levels, which implies that the poor from all educa-
among the SCs. The third indicator is the share of SC govern- tional levels have benefited from reservation in employment
ment employees in rural areas with a landownership background. (Table 4).
As regards central government public sector jobs, in 2011, This finding is further substantiated by the landownership
categories C and D together account for about 81% of the total background of the SC government employees in rural areas.
of 8.94 lakh SC employees, while the remaining 19% fall into The SC salaried permanent employees in rural areas account
categories A and B, which clearly indicates a significant use of for about 32% of the total SC permanent employees in the
reservation by the weaker sections among the SCs through country, while the balance 68% are located in urban areas. In
recruitment in C and D category jobs (Table 2). As per the NSS 2011–12, of the total SC employees in rural areas who had ben-
estimates, in 2011–12, out of a total of about 26 lakh permanent efited from reservation, about 11% were landless and another
SC employees, about 68% were educated below the secondary 69% possessed less than 1.23 acres of land—adding up to
and higher secondary levels or were diploma holders, while about 80% of the employees who were landless or owned less
Table 2: SCs in Central Public Services by Grade: All India (%) than 1.23 acres of land. In fact, 96% of the SC employees
Year Nos All AB C D CD Total owned less than five acres of land, and only 4% of them owned
2004 8,67,732 19.0 12.2 60.3 27.5 87.8 100 five acres or more of land (Table 4). This clearly shows that the
2011 8,93,954 19.7 19.2 62.4 18.4 80.8 100 relatively economically weak among the SCs in rural area have
Group D does not include safai karmacharis.
Source: Annual Reports of the Ministry of Personnel, Public Grievances and Pensions, benefited from reservation in employment on a significant
Government of India, New Delhi. scale. While a more systematic analysis of NSS data is possible,
Table 3: SC Government Employees by Level 32% were educated up to this simple tabular analysis leaves no doubt about the substan-
of Education (%) the graduate level or abo- tial benefits of reservation in employment reservation for the
Education Level Distribution of
Government Employees
ve. Thus, close to three- financially weak SCs. It can thus be said that employment in
2004–05 2011–12 fifths of the SC benefi- reservation has been a significantly pro-poor policy. The argu-
Illiterate 9.5 9.0 ciaries of reservation in ment that weaker sections benefited less from reservation in em-
Below primary 6.3 4.0 employment had educa- ployment is not based on facts but a myth created by the critics.
Primary 10.4 5.7 tion levels below the
Middle 16.2 11.2 Economic Criteria: Poor Substitute for Caste
secondary and higher
Secondary 17.3 18.1
secondary levels, and It is argued that since the economically weak SCs have benefited
Higher secondary 11.0 15.3
Diploma certificate 5.9 4.0
these people also gener- less from the reservation in employment policy than the eco-
Graduate and above 23.4 32.6 ally belonged to the eco- nomically better off (which in any case is not true), caste
Total 100.0 100.0 nomically weaker sec- should be replaced by economic criteria as a basis for reserva-
Source: NSSO Employment–Unemployment Survey, tions (Table 3). At the tion. If the criticism of reservation not being pro-poor is em-
2004–05 and 2011–12.
all-India level, in rural pirically unsustainable, the suggestion of replacing caste with
Table 4: Land Size Owned by SC Government Employees at Each Level of economic criteria has no validity. Theory tells us that social ex-
Education (Rural Areas 2012) clusion and discrimination is a “group concept” based on
Education Level Land Size Class
Less than 0.5 ha (%) Above 0.5 ha (%) Total(%) group identity like race, colour, religion, ethnicity, caste or
Illiterate and below primary 89.1 10.9 100.0 gender. In the case of group exclusion, all individuals from a
Primary and middle 76.1 23.9 100.0 group are excluded due to their social identity, irrespective of
Secondary, higher secondary and diploma 79.9 20.1 100.0 the economic standing of the individual within a social group,
Graduate and above 82.0 18.0 100.0 thereby making the discrimination neutral to economic status.
Total 80.7 19.3 100.0 All the untouchables face discrimination on the basis of their
Source: NSSO Employment–Unemployment Survey, 2011–12
caste identity, irrespective of their financial status as the
Table 5: Number of SC Employees by Size of the Land Possessed, Rural Areas people belonging to the higher castes do not make any distinc-
(%)
Land Size Class (ha) 2004–05 2011–12 tion between the economically weak and better off among the
Population Government Employee Population Government Employee discriminated group. Therefore, policies to provide safeguards
Less than 0.002 8.9 8.6 9.3 11.4 against discrimination like reservation are based on the social
0.003–0.500 65.9 69.0 69.9 69.2 identity of the group rather than that of an individual. If
0.501–1.000 12.0 9.6 9.8 6.7
discrimination is neutral to economic status, the criteria for
1.001–2.000 8.2 7.6 6.9 8.8
legal safeguards and policies has to be caste and not the
2.001–3.000 2.8 3.6 2.0 2.3
3.001 and above 2.2 1.7 2.1 1.6
economic status of the individual within the group.
Total 100.0 100.0 100.0 100.0 Having said this, however, we need to recognise the uneasi-
Source: NSSO Employment–Unemployment Survey, 2004–05 and 2011–12. ness of critics about the coverage of the economically better-off
Economic & Political Weekly EPW FEBRUARY 20, 2016 vol lI no 8 63
SPECIAL ARTICLE

SCs by the reservation policy. While there is some truth in this section of the Hindu population, which has, in turn, deprived
argument of the critics, they have failed to draw a distinction generations of scientific knowledge, technological innovation,
between exclusion of the better-off SCs from concessional and development (Ambedkar 1987).
economic benefits and exclusion from protection against The continuation of discrimination in the present in many, if
caste-based discrimination in employment through reservation. not all, spheres in modified forms in the labour and capital
It is fair to suggest that the economically better-off SCs could be markets as well as in the goods and services markets, would
selectively excluded from concessional or subsidised financial make individuals less mobile, less competitive and less efficient.
support and treat them on par with others. However, to extend Therefore, interventions in the form of affirmative action in the
this argument to their exclusion from reservation is misplaced, labour and capital markets and in education would help
as even the economically better-off SCs need protection reduce segregation by bringing the discriminated persons in
against discrimination through a reservation policy to ensure the employment market, by inducing competition and also
fair access to and share in employment, assets, housing and helping increase the supply of human resources. With hiring
education. The economically weaker SCs, on the other hand, practices often being far from merit-based, affirmative action
need both financial support as well as reservation to ensure policies help improve the pool of meritorious persons (Desh-
fair access to employment and education. pande and Weisskopf 2010). Hence, interventions that help re-
It is not surprising that several countries in the world have move imperfection in the markets through affirmative action
supplemented anti-poverty policies with equal opportunity policies are positive steps for economic growth. This is a lesson
policies for excluded groups based on group identity. The failure from theory. But what is the empirical evidence in this regard?
of critics to draw this distinction has generated profound confu- There is a near absence of studies on the theme. The limited
sion, as the argument of replacing caste with economic criteria evidence that we have, however, shows the positive impact of
for reservation is based on a poor theoretical footing. reservation on efficiency.
Ashwini Deshpande and Thomas Weisskopf (2010) arrived
Reservation: Not Less Efficient at this conclusion on the basis of an extensive study of the
Another criticism of reservation policy is the inefficiency reservation policy in the Indian Railways. We cannot do better
argument. As in the case of earlier arguments, this criticism than quoting the authors:
also does not receive support in theory or through empirical
Analysing an extensive data set on the operation of the world’s
facts. The standard economic theory of growth requires that largest subject to AA (Affirmative Action), the IR (Indian Railway)
certain conditions be met for ensuring economic efficiency employer subject to Affirmative Action Policy, we have found no evi-
and an optimal economic outcome. Among other things, it dence whatsoever in support of the claim of critics of AA that increas-
presupposes the free mobility of labour and capital. It also ing the proportion of AA beneficiaries adversely affects productivity
presupposes the freedom to be accorded to an individual to or productivity growth. On the contrary some of the results of our
make choices about occupation and work, and the freedom to analysis suggest that the proportion of SC-ST employees in high-lev-
el positions (at A and B jobs level) is positively associated with IR
develop human capabilities through education. Freedom is a
productivity growth.
precondition for the successful working of the private economy.
The noted economist Amartya Sen (2000) observed, Reflecting on the reasons for high productivity of A and B
Expansion of freedom is viewed both as the primary end and as the
SC/ST employees, the authors observed:
principal means of development. Development consists of the removal There are numerous a priori reasons to expect that AA in hiring might
of various types of un-freedom that leave people with little choice improve economic performance, particularly in high-level jobs. In-
and little opportunities of exercising their reason agency. The remov- dividuals from the marginalised groups may well be especially highly
al of substantial un-freedom, it is argued here, is the constituent of motivated to perform well when they attain decision making and
development. managerial positions, because of the fact that they have reached these
positions in the face of claims that they are not sufficiently capable
Those who have theorised caste as an economic system have and they may have consequently strong desire to prove their detrac-
argued that in its original form, it is an unfree economic order, tors wrong. Or such individuals may simply believe that they have to
with arrays of restrictions in economic spheres (Akerlof 1976; work harder (p 24).
Ambedkar 1987). There are restrictions on the ownership of Thus, neither theoretical nor empirical evidence supports
property, on the choice of occupation, on the mobility of capital the myth created by critics about the negative impact on
and labour across caste occupations, and on the acquisition of efficiency of the reservation policy in employment.
skills and education. The caste code makes labour and capital
less mobile across the castes, and creates a segregated market. Until Discrimination Persists
It has failed to provide any professional incentives to individuals Lastly, the question repeatedly asked by critics of the reserva-
as it allocates occupation in advance on the basis of birth instead tion policy is as to how long it needs to continue. This question
of on the basis of choice and interest, while also treating some can possibly be answered by raising another question: What is
occupations as impure and polluting. All these conditions the purpose of special policies? The laws against discrimination
reduce the incentive to work productively, which results in a have been developed to ensure equal citizenship rights to the
lower economic outcome. It also adversely affects efficiency by erstwhile untouchables. The RPs have been created to provide
restricting the development of human resources of a large protection against discrimination in employment, education
64 FEBRUARY 20, 2016 vol lI no 8 EPW Economic & Political Weekly
 SPECIAL ARTICLE

and the legislature to ensure a fair share in these spheres to The untouchables engaged in non-farm production and
improve their economic and educational levels, and to bridge business faced similar discrimination. On the basis of the life
the gap between the SCs and others. Therefore we have to ask: histories of 90 Dalit entrepreneurs from 13 districts in six
Are caste-based discrimination and untouchability things of states, Prakash (2015) observed caste barriers faced by SC
the past? Have the SCs made economic and educational pro- entrepreneurs/businesspersons in renting or buying a strate-
gress in a manner that would minimise the gap between them gically important physical space for their businesses, resulting
and the higher castes? The answers to these questions demand in their having to shift their retail establishments to their own
empirical evidence. Let us examine the progress made on caste locality and cater to consumers of their own caste;
these two fronts. experiencing difficulties in securing initial orders for business;
The official data and studies do reveal an improvement in being compelled to sell goods (especially among retailers of
access to civil rights by the erstwhile untouchables, but also food and beverages) at lower prices than their higher caste
its continuation on a significant scale. During the period counterparts; and being threatened that their caste identity
1995–2014, a total of 2.43 lakh cases of caste discrimination would be invoked, resulting in negative publicity against them
and atrocities were registered by the erstwhile untouchables as impure sellers by higher caste traders to prevent competition
under the PCR and PoA Acts, with an average of about 13,000 from them. They also faced discrimination from the state in the
cases per year. This is only the tip of the iceberg, as only procurement of state resources like licences and other approv-
serious cases get registered. Primary studies revealed that als; and suffered from a lack of access to the social or caste
discrimination is deeply embedded in social relations and network. Thus, while Dalits are able to enter the markets as
persists in a significant measure in the social, cultural and owners of capital, they experience numerous forms of discrim-
religious spheres (Shah et al 2006). ination, resulting in poor economic outcomes (Prakash 2015).
In the economic sphere, the erstwhile untouchables faced This market-based discrimination affects the income of the
discrimination in various markets, including the labour erstwhile untouchables. The 1994 and 2005 panel survey data
market in hiring, in the supply of inputs and services (required of the National Council of Applied Economic Research found
for farm and non-farm production) and in the sale of products that at least one-third of the average income difference
by the erstwhile untouchables among the farmers and between the high caste Hindu and SC/ST households was due
non-farm-producers/businesspersons. In the rural areas, the to the “unequal treatment” of SC/ST attributes (Borooah et al
erstwhile untouchables are not hired in some kinds of work/ 2015). Non-market exchange is not free from discrimination.
occupati0ns, such as cooks in restaurants and in the mid-day Studies provide evidence regarding discrimination faced by
meal programme for children or as waiters. And they are hired SCs in the receipt of goods and services supplied by the govern-
for a fewer number of days and on lower wages than their ment or government-approved agencies in respect of food,
higher caste counterparts, while in the other spheres they face nutrition, health services, education and public employment
forced labour. (Indian Institute of Dalit Studies 2013). This empirical evidence
In urban private employment, a low proportion of former shows that traditional restrictions faced by the erstwhile
untouchables receive calls for interviews as compared to their untouchables in the markets and in non-market institutions
higher caste counterparts with the same or lower level of have continued as remnants of the past in multiple spheres,
qualifications (Thorat and Newmen 2010). Based on an NSS thereby preventing the SCs and STs from accessing various
survey, Madheswaran (2014) found that in 2012 as compared opportunities and facilities. Hence, a large part of the inequal-
to forward caste employees, SCs earned 8% less in the public ities that we see in terms of ownership of assets, education,
sector and 20% less in the private sector. Discrimination employment, civic amenities, and income and poverty, are due
accounted for about 10% and 24% of the wage differential to the economic discrimination perpetrated against the SCs.
between the SCs and the forward caste in the public sector and
the private sector, respectively. Job discrimination accounts Extent of Poverty Decline
for a large part of the gross earning differences in urban areas, We now discuss the second issue, namely, the extent to which
as job discrimination is considerably more important than the access of SCs to assets, education, employment and income
wage discrimination among regular salaried workers. has improved and the Table 6: Untouchability Cases Registered,
As regards farmers, a 2003 NSS survey indicates that almost level to which poverty (Number)
Year PCR PoA Total
36% of the observed differences in net income between the SC among them has de-
1995–2000 6,235 53,745 59,980
and higher caste farmers and 64% of the differences between clined. As regards assets
2001–05 2,940 49,319 52,259
the SC and Other Backward Classes (OBC) farmers are account- at the all-India level, in 2006–10 1,170 51,658 52,828
ed for by the discrimination perpetrated against SC farmers 2012, among total SC ru- 2011–14 292 78,193 78,485
(Thorat 2013). Using the same data set, another study found ral households, about 1995–2014 10,637 2,32,915 2,43,552
that inequality between castes accounts for about 3% to 17% of 20% were farmers and PCR—Protection of Civil Rights, PoA—Prevention
of Atrocities.
the overall inequality in net farm income (Singh 2010). The another 14% were small Source: National Crime Records Bureau (NCRB)
erstwhile untouchables faced discrimination in buying agricul- entrepreneur/business of India.

tural land (Thorat 2010) and in the urban rental housing mar- households, whereas the corresponding ratio in the urban ar-
ket (Thorat et al 2015). eas was about 27% (NSS 68th round). The Economic Census of
Economic & Political Weekly EPW FEBRUARY 20, 2016 vol lI no 8 65
SPECIAL ARTICLE

2005 indicates that the share of SCs in the country’s enterpris- the higher castes discriminate against and deny equal rights to
es was 10%, which is lower than their share in the population. the Dalits, which the former enjoy?
A low incidence of ownership of income-earning assets by the Way back in 1956, Nobel laureate economist Becker (1956)
SCs results in a high level of their dependence on wage labour, provided the reason in response to a similar question, that the
at about 52%, as compared to the corresponding figures of 32% white males discriminate against their black counterparts
for OBCs and 21% for Others. Similarly, in urban areas, about because they have a test for discrimination from which they
21% of the SCs were casual wage labourers, as compared to derive utility, and this test emanates from prejudices that an
corresponding figures of 15% for OBCs and 6% for Others (NSS individual from one group holds against individuals of another
68th round). The erstwhile untouchables also lack access to group, in this case blacks and women. Another Nobel laureate,
education and civic amenities. In 2008, the enrolment rate for Arrow, came with an alternative reason in 1973, that people
higher education was 11.6% for SCs as compared to 27% for discriminate because they perceive that people from another
Others (NSS 68th round). group are, on an average, less productive and therefore, they
In 2011, the percentage of SC households without drinking water make their decisions about the hiring and wages for the other
facilities at home was 68% as compared with 57% for Others. group members on the basis of that belief, which may be
In addition, 77% of the SC households had no latrines in their wrong and may result in a discriminatory outcome. Yet another
homes as compared to a corresponding figure of 66% for Others, Nobel laureate, Akerlof along with Kranton (2010) brought in
and 41% of the SC households had no electricity as compared to a social categories or social identities and their norms into the
corresponding figure of 34% for Others (Census of India 2011). realm of economic decisions. The “Identity theory” postulates
A low level of access to assets and high dependence on wage that social categories and their norms determine how individ-
labour results in low income and high poverty levels. In 2011–12, uals in the social category behave towards others, as individual
the monthly per capita consumption expenditure (MPCE) was decisions are socially framed. In its application to race and poverty,
about Rs 1,297 for SCs, followed by Rs 1,518 for OBCs and the Identity theory implies that the behaviour of whites to-
Rs 2,239 for Others, with the corresponding all-India average wards blacks is determined by group norms, which perpetuate
being Rs 1,645. The MPCE of SCs was only 58% of higher caste a distinction of “us” and “them.” The whites think of blacks as
incomes, 85% of OBCs and 79% of the national average. Similar “them” rather than including them in the category of “us all.”
disparities are visible with regard to poverty. In 2011, as This division of norms on the basis of “us” and “them,” or what
compared to 12.4% of the Others and 25% of the OBCs, 30% of authors call “oppositional identity,” results in discrimination.
the SCs were poor, with the corresponding all-India average In the Test, Belief and Identity theory, the discrimination
figure being 23%. The incidence of poverty among the SCs in results from prejudice, which is embedded in individual
2011–12 was more than double than that among the Others psychology. Social psychologists have also provided more
(NSS 68th round). The percentage of underweight children insights into the causes of prejudice and motive of discrimina-
among the SCs was 51% as compared to the corresponding figures tion. Allport (1954) treats prejudice primarily as something
of 45% for OBCs and 36% for Others, while those with anaemia which is rooted in an individual’s psychology. A psychology of
was 74% for SCs, 72% for OBCs and 67% for Others. The pro- prejudice, which produces stereotypical (false) beliefs by the
portion of women with anaemia was 58% among SCs, as com- dominant group, and which yields discriminatory behaviour
pared to 51% for Others (National Family Health Survey towards the subordinate group, a view that is similar to the
2005–06). Thus, SCs suffered to a much greater degree than their Test theory. Blumer (1958: 3) questions Allport’s theoretical
higher caste counterparts in all the indicators of malnutrition. construct of prejudice, as a set of individual feelings and
Thus, empirical evidence pertaining to caste-based dis- argues that “race prejudice exists in sense of group position
crimination and poverty indicates that despite an improve- rather than in a set of individual feelings which members of
ment to some degree, the erstwhile untouchables continue to one racial group have toward members of another racial
face discrimination on a significant scale. The gap in human group.” Blumer shifts the locus of the origin of prejudice from
development between them and the rest of the population also individual beliefs to
persists. They are still far from attaining the status of full attitudes of group about the relative status and material benefits
citizens, as they are a “part of Hindu society, but a part apart,” associated with membership in the group harboring stereotypical
as Ambedkar put it. Therefore, the answer to the question as to beliefs toward the ‘other’. The extent to which the dominant groups
how long the reservation policy would continue is that it should perpetuate advantage for their own and disadvantage for subordinate
groups is a key factor for group outcomes (pp 3–4).
be in place as long as discrimination and disparities against the
Dalits persist. It has a backlog of about 2,200 years to clear, In Blumer’s notion of prejudice, there are four basic types of
which began with the codification of the Manusmriti in 186 BC feelings or attitudes that always seem to be present in (race)
and therefore it is too early to ask for a reversal of the RP. prejudice by the dominant group:
a feeling of superiority, a feeling that the subordinate race is intrin-
Fear of Losing Privileges
sically different and alien, a feeling of proprietary claim to certain
We return to the question posed at the beginning of this paper, areas of privilege and advantage, and perhaps the most important,
namely, as to why opposition to RPs persists. This can be a feeling of fear that the subordinate race harbors designs on the
clarified by seeking an answer to another question: Why do prerogatives of dominant race (p 4).

66 FEBRUARY 20, 2016 vol lI no 8 EPW Economic & Political Weekly

 SPECIAL ARTICLE

Thus, Blumer shifts the axis of prejudice away from individual system as an empirical case for the group theory of prejudice,
sentiments towards collective interests in maintaining a relative but also brings in new insights into the role of religious ideology
group interest. The focus is on group position and group in the formation of norms or beliefs that form group prejudice
efforts (rather than on individual efforts) for material interest and discrimination (1987).3 In Ambedkar’s view, the caste
and high social status. Prejudice becomes an operative, system entails the division of the Hindus into five social groups
mobilising instrument for preserving the advantaged position called “castes,” (with several sub-castes), with each of them
of the dominant group. There are real (material) interests at being isolated through the rule of endogamy or marriage within
stake in the efforts of the dominant group to preserve its one’s caste, and restriction on social relations, making caste a
privileged position, and also the more intangible, and psychic separate, isolated and exclusive entity, with some inter-caste
benefit of a high status advantage. obligations. It involves the fixation of economic rights (pertaining
Building on this, Darity et al (2006) brought further to occupations or property), civic and religious rights of each
insights into the role of economic or material interest in shap- caste well in advance and making it hereditary by birth. The
ing the (racial) identity norms. Racial identity norms are rights are, however, assigned in an unequal and graded
shaped by the relative income gains from racial or non-racial manner among castes, making “Graded Inequality” the foun-
or mixed strategy in social interaction. Identity norms are dation of the caste system. The castes consisting of members
determined by the relative income gains (or the productivity other than the untouchables form the dominant groups and
of identity norms in social interaction) from each of the iden- perpetuate a hierarchy of dominance by placing the Brahmins
tity norms. The most significant aspect of this theory is that by at the top with all rights and privileges. The untouchables
bringing the relative income gains into the norm formation of located at the bottom, on the other hand, have no rights and
racist, secular, and mixed identity in social interactions, it bear the stigma of pollution, which makes them the subordi-
captures the underlying condition that brings change, say nate group. The most unique feature of the caste system is the
from racial norms to individual norms (non-racist norms) and provision of a mechanism to enforce the system that involves
mixed norms of discrimination, and makes the theory dynamic excommunication and penalties for any deviation from the
in nature. caste codes. The fear of losing privileges, which Blumer
mentioned as the key feature of prejudice, is not left to chance,
Lessons for Understanding Caste but is fully protected through the use of a community level
What are the lessons of these theoretical insights for the institu- mechanism of social ostracism. Added to that is the protected
tion of caste? In the Test, Belief, and Identity theories, individual cover from Hindu religious philosophy. Caste thus has divine
prejudice becomes the basic for discrimination. Prejudice as an origins, receiving solid backing from Hindu ethics and morality.
individual psychological feeling produces stereotypical (false) The moral principle of graded inequality forms the basis of the
beliefs about the others, which results in discriminatory observance of customary and formal laws by everyone. It is
behaviour. The group-based theory shifts the focus from this double injection of moral and legal philosophy which
individual psychological feelings to group feelings in order to imparts solidity to the institution of caste. The principle of
constitute prejudice. This prejudice is treated as an amalgam graded inequality with privileges accruing to the dominant
of attitudes of the dominant group towards a subordinate groups and disabilities or disadvantages being imposed on the
group, developed with the purpose of deriving material benefits subordinate group constitutes the very foundation on which
and high social status. The racial identity norms would persist the structure of the caste system is erected, “sanctified by the
as along as they bring income gains and high social status for Hindu religious ethical, moral and legal philosophy, and made
the whites in social interactions; this high social status also sacred, eternal, and inviolate,” as observed by Ambedkar
provides an avenue for material gains. The discriminatory (1987: 129).
behaviour of the dominant group towards the subordinate Theories of prejudice did refer to the process of formation of
group thus assumes a functional or instrumental role for the prejudicial norms, and Blumer attributes it to the historical
derivation of greater material benefits by the dominant process while Darity does so to the evolutionary process.
groups at the cost of the subordinate groups. Group-based Akerlof highlights the role of ideology in the formation of
theory shifts the focus from an individual’s prejudicial feel- norms. Ambedkar provided evidence on how religious philos-
ings to the group’s prejudicial norms and also from the utility ophy, both moral and legal, is used as a means to justify the
and psychological gains to more tangible material gains and privileges and superior economic and social rights of the
high social status emanating from discrimination. The shift is higher castes accompanied with the denial of the same to the
twofold, from individual (psychological) feeling to group lower castes. Caste-based prejudice is ideologically grounded
feeling, and in purpose from utility and psychological satis- and serves the material interests and high social status enjoyed
faction to material and social status through discrimination. by the high castes. It is in this sense that prejudice becomes
These are the most valuable insights from the efforts made functional and an instrument in the hands of the higher castes,
by social scientists to identify the motive for caste-based enabling them to hold on to traditional privileges. This indeed
discrimination. explains the constant opposition to RPs by many, if not all,
Ambedkar’s analysis of caste squarely falls in the group- members of the dominant castes. The fear pervading the higher
based theoretical perspective. It not only presents the caste castes about the loss of their material privileges and high social
Economic & Political Weekly EPW FEBRUARY 20, 2016 vol lI no 8 67
SPECIAL ARTICLE

status is, therefore, at the root of their perpetual opposition to and right to education have been devastating.4 Therefore, in
RPs, and other similar policies for the excluded groups, as they such cases, the policy of “reparation or compensation” has
see this policy as an encroachment on the reserved space that been found to be useful, and has been successfully imple-
they have enjoyed for so long. mented by some countries like Malaysia and South Africa
(Feagin 2004; Bittkar 2003).
Reform of Policy What are the grounds for reparations for the Dalits? The
Since discrimination serves as an instrument for economic rationale for ensuring compensation for them is the enrich-
privileges and high status for the higher castes, this vested ment of the higher castes at the cost of the impoverishment of
interest continues to motivate them to practise discrimination the lower castes. The enrichment of the higher castes has
in multiple spheres. Therefore, it is imperative to introduce occurred by under-payment of wages to labour and denial of
legal safeguards and protection against discrimination rights to assets and education to untouchables. The past is not
through comprehensive policies for both the market and the past as it has been carried forward into the present through
non-market institutions, and all other spheres wherein such the intergenerational transfer of assets and human resources,
discrimination persists. This necessitates the reform of the making the present generation of high castes the beneficiaries
present RPs in the spheres of employment, assets and education of past privileges, at the cost of denial of the same to the
in order to overcome their limitations. In the case of reservation untouchables through the prevalence of formal and customary
in employment, the first limitation is the exclusion of the laws. Therefore, the present generation of high castes cannot
private sector. The second limitation is the absence of an say that they are not responsible for the wrong done to the
effective policy for improving the ownership of capital assets untouchables (Feagin 2004). The higher castes and the state
by the erstwhile untouchables, while the third limitation were involved in the enforcement of caste-based codes. Since
relates to education. Two corrections are necessary in the the high castes have benefited at the cost of the former
sphere of employment. The first is to bring temporary govern- untouchables, there is a legal case that the higher castes need
ment jobs under the ambit of reservation. In 2012, at the all-India to compensate the latter for the losses they have suffered
level, of a total of 256 lakh government salaried employees for centuries.
about 43% were on contract, and were outside the provisions Wherever such reparation has taken place, it involves three
of RPs. There is no reason as to why reservation should not be steps: first, the recognition of the exploitation and wrongs
applied to temporary jobs, if the purpose of RPs is to protect done to the untouchables, through an open apology by the
the SCs from discrimination and to provide them a fair share head of the religious faith (Hindu religious heads are yet to
in government jobs. The second reform relates to the exten-
sion of reservation in employment to the private sector. In
2012, of the total regular salaried employees, about 80% were
in the private sector, which is currently excluded from the
ambit of reservation. In several countries, the private sector
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68 FEBRUARY 20, 2016 vol lI no 8 EPW Economic & Political Weekly
 SPECIAL ARTICLE

tender an apology for the imposition of untouchability in the Ambedkar had proposed the introduction of a compensatory
way that the heads of the Christian faith have done so for the measure through the distribution of agricultural land to the
perpetration of slavery in the US), estimation of the amount of untouchable families by nationalisation of land and separate
compensation, the method of its payment, and identification settlements, and with a special fund for educational develop-
of the victims and beneficiaries to whom the compensation ment of the SCs. But his suggestion did not receive any support
has to be paid (Darity 1990). A number of countries have used from the Constitutent Assembly (Ambedkar 1979).
the compensation policy for victims of discrimination in Given the exceptionally high proportion of the former
various forms. In our own country, some compensatory efforts untouchables who are asset-less and less educated, there is
were made for the former untouchables through the allocation thus a need to evolve a comprehensive policy of compensation
of land, such as Panchami land in Tamil Nadu, the Mahar and one-time settlement for the former untouchables in the
Watan land in Maharashtra, and the Depressed Caste land in manner in which Malaysia and South Africa have done to pay
Andhra Pradesh. But all these attempts have failed to improve for the losses accruing to victims of social discrimination in
the ownership of agricultural land among the erstwhile these countries. This is a long overdue social debt that the
untouchables. At the time of the framing of the Constitution, higher castes owe to the erstwhile untouchables.

notes Matters,” Economic & Political Weekly, 27 June, — Mason, Patrick and James Stewart (2006):
1 Ambedkar articulated the policy during Vol L, Nos 26 and 27, pp 47–53. “The Economics of Identity: The Origin and
1919–32 with respect to untouchables, which Becker, Gary (1956): The Economics of Discrimina- Persistence of Racial Identity Norms,” Journal
was extended later in 1950 to STs and later to tion, Chicago: University of Chicago Press. of Economic Behaviour and Organisation,
OBCs. The basis of the reservation varies it is Bittkar, Boris (2003): The Case for Black Repara- Vol 60, No 3, pp 283–305.
social and physical isolation for STs, but tions, Boston: Beacon Press. McCormack, William (1966): “Caste and British
economic and educational backwardness for Blumer, Herbert (1958): “Race Prejudice as a Sense Administration of Hindu Law,” Journal of Asian
OBCs. The arguments developed for SCs could of Group Position,” Pacific Sociological Review, and African Studies, Durham, the US, Vol 1,
be used for STs and OBCs in their specific Spring, Vol 1, No 1, p 3. No 1, pp 27–34.
situations. Borooah, Vani, Nidhi Sabharwal, Dilip Diwakar, National Crime Records Bureau of India, Ministry
2 The NSS provides the number of regular sala- V K Mishra and Ajaya Naik (2015): Caste, Dis- of Home Affairs, Government of India.
ried employees in the government with and crimination and Exclusion in Modern India, NSSO (2008): “Survey on Participation and Ex-
without contracts. The former are divided by New Delhi: Sage. penditure in Education—2007–08,” 68th round,
the length of the contract, which may range CSO (2005): “Fifth Economic Census—2005,” CSO, MOSPI, Government of India.
from zero to one year, one to three, and more MOSPI, Government of India. — (2012): “Survey on Employment and Unemploy-
than three years. We have considered those Darity, William (1990): “Forty Acres and a Mule: ment—2011–12,” 68th round MOSPI, Govern-
who are employed on a contract of more than Placing the Price Tag on Oppression,” The ment of India.
one year and are entitled to PF/pension/gratu- Wealth of Races: The Present Value of Benefits
ity as permanent employees. — (2012): “Survey on Consumer Expenditure-
from Past Injustices, Richard F America, Green-
3 See Ambedkar, (1987 and 1979); for a discus- —2011–12,” 68th round, MOSPI, Government
wood Press, pp 219.
sion on caste. of India.
Darity, William, Mason Patrick and James Stewart
4 See McCormack, (1966); Mani (2011); Galanter (2006): “The Economics of Identity: The Origin Prakash, Aseem (2015): Dalit Capital: State, Market
(1963); for the use of the Hindu Shastra for and Persistence of Racial Identity Norms,” and Civil Society in Urban India, Delhi:
framing of laws related to property till the Journal of Economic Behaviour and Organiza- Routledge.
early 19th century by the British, which denied tion, Vol 60, No 3, pp 283–305. Population and Basic Amenities Census of India
the right to property and education to the un- Deshpande, Ashwini and Thomas Weisskopf (2011): “Population Census 2011,” RGI, Govern-
touchables. (2010): “Does Affirmative Action Affect Pro- ment of India.
ductivity in the Indian Railways?,” Working Sen, Amartya (2000): Development as Freedom,
Paper No 185, Centre for Development Eco- Anchor.
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