A curious case of ‘Gujarat Model’

Hardik Patel;  a fellow from Gujarat's ‘Patel’ (Patidar) community; recently got popular for his demand of inclusion of Patidar’s in OBC (other backward casts); which created a real havoc; in India’s so called ‘politically stable’ state; as BJP (backed by PM Narendra Modi) enjoys a political monopoly over the state since last 15 years. Hardik, A Champion of democracy (at least on TV screens and in his speeches), waged a war against social degradation of his community’s youth, and thus demanding OBC quota reservation hoping social inclusion of his adherents in India’s social development path.

Patidars used to be the Zamindars; one of the wealthiest communities in India; earned livelihood by land leasing their lands to tenants for cultivation and post independence when land ceiling laws came into force; they were left with the less but still a handsome amount of land they used to hold earlier. Backward class who were beneficiaries of land reforms and later got reservations i.e. a positive discrimination by State to ensure the equal opportunities to backward class in terms of education, health, government jobs and other social security measures. Patidars were still enjoying better social security than that of those backward community as they were accustom with trade, commerce and agriculture, they were having better resources, inherited wealth from generations, and better wisdom to earn living left them one step ahead on social transformation path of India. Backward community was therefore positively discriminated to get them on equal footing as of majority.

Hence having this sort of feudalistic background; the main question arose in my mind is; what lead to this better resourced community to demand for reservations? What sort of uplifment this already uplifted community is seeking? If Hardik Patel’s contention of degradation of this community in social terms is true, then what sort of situation led Patidars to this day?

The community accounts for roughly 1.5 crore of Gujarat’s 6 crore population. As The Indian express mentioned in one of its reports that out of 6,146 industrial units with an investment of more than Rs 10 crore, 1,700 are Patidar-owned and 15 per cent of Patels are affluent, and the rest are middle class or poor. In percentage terms, the rural population in Gujarat constitutes 57.4% (decrease of 5.2% during the decade) of the total population and the urban population Socio-Economic Review; Gujarat State, 2013-14 is consisting 42.6% (increase of 5.2% during the decade).

Socio-Economic Review (2013-2014) for Gujarat state (prepared by Directorate of Ecoomic and statistics, Government of Gujarat, Gandhinagar) data shows that;

In percentage terms, the rural population constitutes 57.4% (decrease of 5.2% during the decade) of the total population and the urban population Socio-Economic Review, Gujarat State, 2013-14 is consisting 42.6% (increase of 5.2% during the decade). The Dangs district is showing a steady increasing trend in sex ratio, whereas the Surat district is showing a steady declining trend in sex ratio sine 1961; Since the formation of Gujarat state, i.e. from 1961, the sex ratio of the state has a decreasing trend except in 1981 census

In spite of decline in global economic meltdown, Gujarat achieved an annual growth rate of 9.51% during 11^th five year plan. In Gujarat, out of 247.7 lakh total workers 54.5 lakh are cultivators and another 68.4 lakh are agricultural labourers. Thus, nearly 50 per cent of the workers are engaged in agricultural activities compared to 52 per cent in Census 2001. Of the remaining workers, 3.4 lakh are in household industries and 121.4 lakh are other workers. During the decade 2001-2011, the Census results show a fall of about 3.55 lakhs in cultivators and an increase of 16.78 lakhs in agricultural labourers. The household industries have shown a decrease of 0.86 lakhs and other workers have increased by 22.75 lakhs.

Economic downturns and crop failures have led to a preference for government jobs over farming, agricultural workers and producers are committing suicides and not earning any profits since last several years, oil seeds, cotton and groundnuts are major produce of the state and at all India level these crops are witnessing distress.

Gujarat has badly performed in education; thus suffered showing weak indicators of life and sustainability. Lack of community participation resulted into the type of policy functioning in state; which was sort of Neo liberalism along with Free market operation with less Govt. intervention in place. (Refer the following data)

According to ‘Children in India-2012- A statistical Appraisal’, Ministry of Statistics and Program Implementation, Government of India; gave Gujarat’s position as;

1.  IMR (infant mortality rate): 44 deaths per 1000 births (11^th Rank amongst all   states)
2. Child Sex Ratio 886 girls 1000 boys (9^th Rank amongst all states)
3. 50% of children under five years of age are underweight.
4. School life expectancy: 8.79 years (18^th Rank amongst all states)

Composite Development Index prepared by Raghuram Rajan committee suggests somewhat same in other socio-economic indicators

1. ACB (Achievement of Babies and Children) 9th rank amongst 20 states
2. MPI (Multidimensional poverty Index) 9th rank amongst 20 states

Since the formation state in 1960; analysis of growth form last 2 decade (1980-2010) and implication of policy decisions shows concrete changes in the state of Gujarat;

1990-2000 (1st decade)

• Mining and industrialization
•  Natural Resource extraction (for both domestic and export purposes)
• Slow but steady growth in infrastructure
• Slow growth Manufacturing sector

2000-2010 (2nd decade)

•  Industrial growth increased
• Huge private sector capital formation
• Shifting of Agricultural sector labour (Cultivators + Farm Labourers + Non Farm Economy Labour) to Household Industries and Manufacturing sector.
• Increase in Foreign and domestic investment
• Increasing consumption of low cost labourers by Private sector
• steady growth of Electrification in rural area
•  Increase in state backed credit, subsidies, tax concessions, tariff benefits to Private players in economy.

Though it is fact that along with these characteristics Gujarat was successful in maintaining the 7.3.% GDP growth rate and 4th rank among Indian states. Misallocation of resources and Factor market distortion resulted out of state backed incentive to private players created immense pressure on state exchequer. Huge labour availability proved a good reason for their absorption into private sector. Wages which remain law as a result of abundant labour force, failed to create the demand in the economy. State economic policies focused on investment and capital formation of boost GDP and per capita income; resulted into massive chunk of credit and savings flown towards private sector, leaving rural non-farm and farm sector in distress.

The rural non-farm and agricultural sector; which was already falling sick due to shift of unabsorbed labour force to private sector, also faced challenges in terms of low level of rural development, low level of education and women inclusion, which is making the half of the population alienated from State’s crony capitalistic Development.

State’s expenditure in percentage of GDP on education and health decreased; as major chunk of states revenue was flowing in a way which was creating lucrative development but also creating income inequalities in State. State’s policies on import-export and domestic trading activities were such that desired ‘Value addition’ got generated outside the state and was centralised in the few hands at the same time state was also failed to ensure the equal distribution of this value addition.  

This remind me of what Sitaram Yechuri said few days back that; “demand for reservation comes when job, education and livelihood-improvement opportunities are denied in social structure of the state.”

The ‘Gujarat’ was a bandwagon; of PM Modi for 2014 general elections; still economic policies of ‘Some are more equal than others’ has brought huge chunk of population into poverty, illiteracy and ignorance towards state’s activities. Therefore there is an urgent need for Gujarat’s leaders and policy makers to seriously consider some policies which can really make some tangible effect at social level; otherwise these sorts of agitations will become frequent.