SOCIETY, INEQUALITY, POVERTY AND HUMAN RESOURCE IN INDIA A PERSPECTIVE ANALYSIS FOR LAST THREE DECADES

Professor (Dr.) Debdas Ganguly Dean, School of Management & Social Science Haldia Institute of Technology Haldia, PIN-721657 Phone: 9433804726 Mail: debdas-hit@indiatimes.com & Dr. Kaushik Kundu Assistant Professor, School of Management & Social Science Haldia Institute of Technology Haldia, PIN-721657, Phone: 9433291953 Mail: kau_kun@rediffmail.com

SOCIETY, INEQUALITY, POVERTY AND HUMAN RESOURCE IN INDIA A PERSPECTIVE ANALYSIS FOR LAST THREE DECADES
ABSTRACT: The ideological aspects relating to the social framework of the Indian society have a tremendous appeal for the majority of the people. According to S. C. Dube, these features pertain to tradition and texts, not necessarily to the social reality on the ground. With changing time they have undergone considerable modifications. These modifications occasionally have been the cause of unequal and uneven distribution of social causes, natural resources and national scopes, benefits and opportunities. The societal system in India has been occasionally demoralized with respect of distribution of social justice and opportunities leading to uneven distribution of scopes and benefits of the social system. Also on the population demography had a mixed nature of composition consisting mixture from weaker to stronger in respect of education, affluence, cast construct, political and social status etc. and consequently it created two groups of people in the society a group under the umbrella of exploitation, poverty and insecurity and the other being just in the reverse side. This weaker section lying under the envelope of poverty developed because of this inequality and it has been a permanent cause of adversities in Human Resource prospects in India. Human Resource is not an ordinary resource like money or material, but a resource to make all other resources usefully usable. Accordingly Human Resource need to be suitably enriched with skill, education, knowledge, experience and other required potentialities. This Human Resource need to come through suitable scopes and opportunities so that they can develop themselves as required in the process of Human Resource planning. But the threat of inequality and poverty strip the people of the opportunities to develop themselves and groom themselves to the level so that they can make themselves eligible human resource eligible to contribute to national economy and development as enriched human resource as expected from an economy under development.

This work is an attempt to identify the real life situation in this respect in India during the last three decades. Key words: Social cause, human resource, population demography, human resource planning,

SOCIETY, INEQUALITY, POVERTY AND HUMAN RESOURCE IN INDIA A PERSPECTIVE ANALYSIS FOR LAST THREE DECADES
1.0 INTRODUCTION: Indian society is one of the oldest and most complex one. Opinions of the scholars and historians differ regarding its antiquity. Some scholars have even said that it is as old as 500 B.C. Any study of Indian society and its history and culture cannot help recognizing one supreme characteristic of the Indian people. It is their vitality as as a distinct type, with a distinct civilization of their own and mind as active as ever in the past. This mind had its uniqueness and this unique identity is because of its sense of value, attitude, norms, behavioral pattern etc. which in turn are the constructs of culture. Indian society on its own had its own societal culture as well as culture of the people who belong to this society. Since the society had undergone several phases of changes it had been subjected to changes in its cultural constructs. As observed by S. C. Dube, in accordance with several popular estimates it has covered a span of five thousand years since the period of its first civilization. During this long period, several waves of immigrants representing different ethnic strains and linguistic families have merged into its population to contribute to its diversity, richness and vitality. This merging has emerged a heterogeneous mixture of different demographics of people in the society. Consequently, it had multiple impact and consequences in the society in the unequal distribution of property, uneven share of natural generating consumables and non consumable resources and also a differentiation of living and societal status. The result of such phenomena had been deprivation, exploitation, class and caste consciousness in the society. These disparities had generated inequality in the society and inequality had given the birth of a section of people in the society which, as happens to be significant in number in any society, had been subject to victimization, oppression, deprivation etc. These
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had been the reason behind the generation of a class which had not seen anything else than darkness of the society or mankind. The role of this adverse situation had been very much instrumental in creating large section human beings which as human resource was far from generating a healthy economy in the country because of their inadequacy in education, desired skill and expertiseness. They had very little to contribute for a developmental economy as in India. However, presently there appear to be a turn in the situation. Since spread of literacy and education are responsibility of state governments in India, state governments with financial aids from central governments are taking measures to come out the adverse societal effect upon human Resource. 2.0 Indian Society through the Ages: Indian society iis one of the oldest and most complex one. Opinion of the scholars and historians differ regarding its antiquity. Some scholars are of the opinion that it is as old as 5000 B.C. Study oof the Indian society and its history and culture recognize one supreme characteristic of Indian people. It is their vitality as a distinct type, with distinct civilization of their own and a mind as active as ever in the past. As stated by Sir jadunath Sarkar, The Indian people of today are no doubt as composite ethnic product; but whatever their different constituent elements may have been in origin, they have all acquired a common Indian stamp, and have all being contributing to a common culture and building up a common type of tradition, thought and literature. Sir Herbert Risley, a British ethnographer who was very skeptical about Indias claim to be considered as one people, had also been forced to admit this commonness of Indian culture. He acknowledged it when he wrote, Beneath the many fold diversities of physical and social type, language, custom and religion which strikes the observer in India, there can still be discerned a certain underlying uniformity of life from Himalayas to Cape Camorin. Indian society has withstood the waves of foreign invasion, political onslaughts, religious experiments, natural disasters, and the shocks of centuries. Its best right to live is its vital power displayed through many thousand years of shocking changes in our land. 2.1 Impact of the West: The impact of the Western culture and civilization on the Indian socioeconomic system can be analyzed in the following manner:
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i) Impact on Institutions: establishment of New Institutions: Western contact brought about changes in the institutional systems. Old institutions either modified or gave place to the new ones.
a) Impact on Education: Western education broadened the vision and

outlook of the people which made them to be conscious over their rights and freedom. In place of traditional educational institutions, the western type of formal educational institutions such as schools, colleges, technical institutes, research centers, universities etc. were established. English became the medium of language in these institutions and it also initiated spread of English culture.
b) Impact on the Economic System: The modern capitalist mode of

economy introduced by British gave a fatal blow to the economic self reliance of the village and also to the existing Jajmani system[Jajmani System refers to a system of distribution whereby high caste land owning families, called Jajmans, are provided services and products by various lower casts such as carpenters, barbers, potters, blacksmiths, washermen etc. It is a system governed by relationships based on reciprocity in inter-caste relationships in villages. Ram Ahujas Indian social system.
c) Impact on the Legal System: Due to British contact, India came under

one system of common law and legislation. In place of the tradition, caste panchayts and the village Nyaya Panchayats; the modern law, legislation, court, police and other legal systems came to stay.
d) Introduction

of New Systems: In place of joint families, local communities, caste fraternities etc. there came new institutional arrangements, such as social welfare schemes, life insurance schemes, social security schemes, etc. in order to provide protection and security to people whenever required.

Ii) Miraculous Changes in Field of Technology: The modernization of the age old Indian technology, agriculture, entrepreneurship, and industry led to economic advancement of the country. The new and large scale industries of the country introduced by the British exposed Indians to the influence of Western technology. The process of industrialization is normally associated with the growth of towns and cities which started attracting people from rural areas.

iii) Selection of New Values and Ideologies: The process of Westernization implies certain value preferences also. These are as followings:
a) Humanitarianism It includes in itself various other values and it

implies an active concern for the welfare of all human beings irrespective of caste, economic position, religion, age, and sex.
b) Egalitarianism which upholds the principle of equality that is equality of

sex, caste, class, color, creed, race and religion.

c) Rationalism It means a system of belief regulated by reason not

authority.
d) Secularism- This is an ideology which believes that the state, morals,

education etc. should be independent of religion. These ideologies and values had a great impact on Indians. These changed the traditional outlook and attitude of people. Educated Indians came under the heavy influence of these values. They realized the importance of reasoning. iv) Creation of Intense Desire to Increase the Standard of Living or Material Life: The use of Western technology and the scientific equipment and gadgets and acceptance of the Western model of industrialism created new aspirations and ambitions in the minds of people. The pull of spiritualism became weakened and the attractions of comforts and luxuries of life got strengthened. The craving towards more and more material pleasures and economic prosperity increased. 2.2 Negative Effects of Western Contact Though the processes of westernization in the beginning brought along with a number of positive effects, it also led to some negative effects. Western way of life became so attractive that it made some educated Indians to imitate the West indiscriminately. In their eagerness to imitate the West, these Indians blindly picked up even the deficiencies, weaknesses, vices, and evil practices of the West. In their attempts to show themselves as more forward and progressive, they started ignoring and criticizing Indian cultural heritage, way of life and living. This also hampered the development of the spirit of nationalism in India.

According obtained through Western contact.ng to Sir Jadunath Sarkar, The British policy served to encourage all separatist tendencies that oppose national union and helped to widen the lines of cleavage. British policy consistently negatived everything that could make the Indians strong in the modern world. 2.3 Trends towards Modernity and Tradition: Present day Indian society is experiencing strong contrary pulls towards modernity and tradition. On the one hand, the country has adopted and promoted the ideology of democracy, egalitarianism, secularism, and social justice; on the other exploitative structures have never been seriously challenged, the sentimental longing for tradition is tapped for political gains. Also religious revivalism and, later fundamentalism have not been dealt with adequately. Also problems of economic backwardness, poverty, rural indebtedness, unemployment, caste conflicts, communal disharmony, shortages of capital, religious conservatism, lack of technically skilled workers, imperfect means of mobilizing human and material resources etc. have not been handled with knowledge and experience obtained through the impacts and influences of West. 2.4 Society as Observed in Present State of Affair Reached through Successive Social Upheavals: The observation can be summarized with the remarks of S. C. Dube in his work Indian Society. The author observes, The politicalization of Varna and Jati has led to diverse forms of atrocities on the lower Jatis, who are being prevented from using their electoral strength to improve their lot. In some areas the hold of Jatis has weakened, but in others it has fortified and strengthened itself. Indias society, economy and polity have paid only lip service to the cause of the degraded, the weak, the vulnerable but they have not been able to find any viable solution to their problems. The clearly discernible results are resentment and resistance, both very understandable. Tradition has its uses, but regard for it cannot be made an alibi for the perpetuation of exploitation, inequality and injustice. The society, as it is today, is the breeding nest of deprivation, inequality and poverty. This has penetrated in its root and its effect has cursed the nation with different adverse effects leading to irreparable harm upon humanity and its role in nation and its economy. 3.0 Growth of Inequality in Society and Its Role
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Economic growth has been an important motivator for individuals and policy makers to debate and initiate policies that would lead to an increase in aggregate national wealth. It is observed that in spite of economic growth, development of all components of the population is not taking place. Though these two terms are used interchangeably, social scientists have given different meanings to the two terms. Inequality refers to disparities in distribution in income and economic assets of individuals or households. 3.1 Development The concept of development has wider connotation than the concept of growth. Economic development refers to the process of economic and social transformation that takes place in a country or in some part of the country. Factors like literacy, levels of income of the population, inequality and health care facilities are taken into consideration while talking about development. Economic growth signifies the quantitative dimensions while economic development refers to qualitative aspects of progress being made. There are several factors which can improve quality of life. The most important ones are; improvements in literacy and skill formation, accessibility to basic needs such as food, drinking water, health care and housing facilities and availability of infrastructure such as roads, electricity and communication. Economists have emphasized both the productive capacity and the distributional aspects prevalent in an economy. It is often argued that economic growth might benefit some groups more and faster thus leading to divisions in the society. Steep inequality in an economy may stifle the uniform growth of humanity. It is worth mentioning that growth in economy may take place with creation of inequality. It has been observed that policies of economic growth pursued in the past have not led to equitable development across countries or within countries. Within countries there have been pockets of prosperity surrounded by poverty and illiteracy. In most of these countries, growth is confined to small areas, particularly urban centers and some industrial areas. They most often have a wealthy minority with vast levels of inequality amongst the poor majority. These inequalities are visible in terms of deprivation of various kinds and a very low quality of life. 3.2 Income Inequalities

Total national income divided by the number of persons in a country gives the per capita income, which is an average figure of the total income of a country. This measure does not tell us about how the income is distributed amongst people. The income may not be equitably accessible to the entire population. Hence an increase in national income or per capita income does not tell us the real condition of an average person in society. The pattern of distribution of income in an economy informs us of the likely pattern of consumption. Hence, the study of consumption pattern is linked to the study of incomes and savings. Long term trends in income influence the expenditure pattern. Extreme inequality in income leads to a shift in the investment behavior in an economy. Income inequalities are also further accentuated by other social deprivations that low income earners experience. They have low level of skill and end up getting employment in low productivity jobs with low levels of wages. This reduces their chances of skill up gradation thereby keeping them in low wage jobs. Low income means bad housing, negligible health care and bad nutrition. This is then the vicious circle in which the poor are compelled to live. 3.3 Inverted U Hypothesis: It was argued by Simon Kuznets (1955) that a countrys industrialization process in the initial phases could lead to higher income inequalities. The process gets reversed as the level of industrialization goes up. Kuznets gave the example of developed countries to prove his argument. He hypothesized that the relationship between the level of economic development and income inequality takes the form of an inverted U curve. This hypothesis is commonly referred to as the inverted U hypothesis and the curve is called the Kuznets curve. Kuznets postulated that the intersectoral shifts which occur in the early stages of economic development accentuate inequality.

Inequalit y

Kuznets curve

Inverted U Hypothesis

Per capita income

The possible reason behind Kuznets curve is that in early stages of development, when investment in physical capital is the main engine of economic growth, inequality spurs growth by directing resources towards those who save and invest the most. Moreover, inequality impedes growth by hurting education because the poor people cannot fully finance their education. In India many studies have shown the implication of inverted U to justify the slow growth rate or adverse growth rate among a section of people. i) High income inequality may exist and increase absolute poverty which may, in turn adversely affect the quality of health, education, nutrition etc. resulting in poor quality of human capital.
ii) Rising inequality in favor of a small minority of the population may

heighten social and political tension and threaten a countrys long run development process. 3.4 Inequalities in India India is a good example of growth with inequalities. With an average growth rate of 6%, the level of deprivation in terms of nutrition, healthcare, and education is extremely high at more than 50% of the total population not being able to access reasonable levels of education and healthcare. India has pockets of advanced and modern industry and agriculture. These coexist with large areas of unorganized industrial sector and subsistence agriculture. India has the largest number of people living on less than $1 a day. Indicators like the proportion of population below the poverty line, the extent of malnourishment, illiteracy, lack of health care point towards high level of inequality in the country.

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Poverty Line in India Table 1: Poverty Line in India (Rupees per capita per capita per month)

Year 1993 94 1999 00

Rural 211.3 327.6

Urban 274.9 454.1

Source: Planning Commission of India

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Poverty Ratio at the State level Selected States (in percent)

Table 2: Poverty Ratio at the State level Selected States (in percent) State Andhra Pradesh Arunachal Pradesh Assam Bihar Gujarat Haryana Himachal Pradesh Jammu Rural 1993 - 94 1999 - 00 15.9 11.2 45.0 45.0 58.2 22.2 28.0 30.3 & 30.3 40.0 40.0 44.3 13.2 8.3 7.9 4.0
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Urban 1993 - 94 1999 - 00 38.3 26.6 7.7 7.7 34.5 27.9 16.4 9.2 9.2 7.5 7.5 32.9 15.6 10.0 2.0 4.6

Kashmir Karnataka 29.9 17.4 Kerala 25.8 9.4 Madhya 40.6 37.1 Pradesh Maharashtra 37.9 23.7 Meghalaya 45.0 40.0 Nagaland 45.0 40.0 Orissa 49.7 48.0 Rajasthan 26.5 13.7 Tamil Nadu 32.5 20.6 Uttar Pradesh 42.3 31.2 West Bengal 42.3 31.9 Delhi 1.9 0.4 All India 37.3 27.1 Source: Planning Commission of India

40.1 24.5 48.4 35.2 7.7 7.7 41.6 30.5 39.8 35.4 2.4 16.0 32.4

20.3 25.3 38.4 26.8 7.5 7.5 42.8 19.8 22.1 30.9 14.9 9.4 23.6

4.0 Poverty and its Interpretation as in India: Poverty is often defined in terms of income levels of a set of population. The income criteria are preferred as an indicator of poverty as it is easy to establish the income earned by a person or household. A number of other indicators can be added to these measurements based on their money value to arrive at a comprehensive measurement of poverty. Poverty refers to different forms of deprivation that can be expressed in a variety of terms (i.e. income, basic needs and human capabilities). Per Capita Income Concept Per capita income can be used as a measure of household welfare. A threshold level of income is used to differentiate the poor from the non poor. Basic Needs Concept This approach measures welfare of individuals or households on the basis of certain basic needs such as food, clothing, housing, education and simple medical treatment. It define poverty as the deprivation of requirements, mainly material for meeting basic human needs. Food Ratio Concept The Engel coefficient derived from Engel curve proposes that the ratio of food to non-food expenditure could serve as a useful welfare indicator. Studies have shown that households with higher levels of income usually
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spend a smaller fraction of their total income on food while the reverse applies to households with lower income. Per Capita Food Consumption This approach hinges directly on a familys propensity to consume food items. In this approach welfare is measured strictly in terms of per capita food consumption. Calories Concept This definition of poverty focuses on calorie intake instead of expenditure on food items and therefore is based on nutritional requirements of human beings. Once there is an agreement on the acceptable calorie intake, the measure allows for comparison across time and space. Medical Data Concept Medical indicators and data on nutrition can also be used as an indicator of welfare. This approach is especially important when the focus of the study is on young children. Per Adult Equivalence Consumption This approach to defining poverty uses total consumption expenditure, adjusted for household equivalent scales, as a measure of household welfare. Equivalent scales control for differences in household composition based on age and gender. Poverty Estimates in India Globally the decade of 1990s is considered a decade of jobless growth, which means economic growth, has taken place, but employment growth has stagnated. This has forced a large number of people to stay unemployed or to take up low paying jobs on the unrecognized sectors. In recent years in India it has been observed that large sections of people in developing countries are facing increased joblessness, lack of health care facilities and food security. Malnutrition, illiteracy, and lack of livelihood appear to have become crucial issues to resolve the problem of deprivation and poverty. Table 3: Population below Poverty Line in India
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States

No of Persons In Lakhs 198788 199394 25.1 15.9 43.9 154.0 76.6 105.2 128.5 96.4 156.5 3203.7 305.2 604.5 298.5 202.1 254.6 493.4 160.6 19992000 14.5 5.1 17.3 25.4 41.0 67.9 81.8 94.6 1o4.4 2602. 5 228.0 529.9 298.5 130.5 213.5 425.6 169.1

Punjab Himachal Pradesh Haryana Andhra Pradesh Kerala Gujarat Rajasthan Assam Karnataka All India Maharashtra Uttar Pradesh Madhya Pradesh Tamil Nadu West Bengal Bihar Orissa

25.2 7.5 25.4 160.4 88.5 122.4 142.9 75.8 158.6 3070. 5 296.3 536.5 264.3 231.1 283.6 420.9 165.9

Poverty Ratios (% of Population) 19871993 - 94 199 88 9 200 0 13.2 11.8 6.2 15.5 28.4 7.6 16.6 25.9 31.8 31.5 35.2 36.2 37.5 38.9 40.4 41.5 43.1 43.4 44.7 52.1 55.6 25.1 22.2 25.4 24.2 27.4 40.9 33.2 36.0 36.9 40.9 42.5 35.0 35.7 55.0 48.6 8.7 15.8 12.7 14.1 15.3 36.1 20.0 26.1 25.0 31.2 37.4 27.0 42.6 47.1 17.1

Poverty Reduction 87-88 93 94 to 93 - to 99 94 00 1.4 -12.9 -8.5 3.7 6.4 7.3 7.8 -4.7 4.2 2.9 3.5 0.6 0.6 8.4 9.0 -2.9 7.0 5.6 20.8 16.4 12.1 6.3 6.8 7.5 4.8 13.2 9.9 11.9 9.7 5.1 13.9 8.7 12.4 1.5

Note: States have been arranged in the ascending order of poverty ratio in 1987 88. Source: Planning Commission of India Poverty Level in India The prevalence of a large proportion of population which can be called absolute poor is overwhelming in India. The process of development is implemented over the past three decades does not appear to have benefited these people. As a result, rural and urban poor exist in large numbers. According to the World Resource Report 2005, published by World Resource Institute, in the year 1999 2000 the percentage of population living on less than $1 per day is 8 percent. If that had been considered $2 per day, the percentage of population living on less than $2 per day would have been 35 percent.

Poverty and Nutrition

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The basic requirement for survival is sufficient nutrition which not only enables a person to live a healthy life but also enables him/her to participate actively in improving his economic and social well being. Chronic diseases due to malnutrition put a heavy toll on creative abilities of people. In particular, childhood malnutrition hampers proper growth of children, which finally becomes an impediment to their physical, intellectual and emotional development. Table 4: Calorie Intake at Different Expenditure Levels (1999 2000)
Expend iture Class [MPCE] Rs. 0 - 225 225-255 255-300 300-340 340-380 380-420 420-470 470-525 525-615 615-775 775-950 950 and above All Propor tion of person s% 5.1 5.0 10.1 10.0 10.3 9.7 10.2 9.3 10.3 9.9 5.0 5.0 99.9 Rural Cumula tive % Calorie Intake/ Capita/ Day 1388 1609 1733 1868 1957 2054 2173 2289 2403 2581 2735 3778 2149 Expend iture on Food % 67 67 66 65 65 64 63 62 60 58 55 46 Expend iture Class [MPCE] Rs. 0-300 300-350 350-425 425-500 500-575 575-665 665-775 775-915 9151120 11201500 15001925 1925 and above All Propor tion of person s% 5.0 5.1 9.6 10.1 9.9 10.0 10.1 10.0 10.0 10.1 5.0 5.0 99.9
th

Urban Cumula tive %

Calorie Intake/ Capita/ Day 1398 1854 1729 1912 1968 2091 2187 2297 2467 2536 2736 2938 2156

Expend iture on Food % 64 64 62 60 58 56 54 52 49 45 41 32

5.1 10.1 20.2 30.2 40.5 50.2 60.4 69.7 80.0 89.9 94.9 100.0

5.0 10.1 19.7 29.8 39.7 49.7 59.8 69.8 79.8 89.9 94.9 100.0

Source: Nutritional intake in India NSS 55 Round. Report No. 471 in Alternative Economic Survey (2004). 5.0 Inequality and Poverty in Society and its effect in Human Resource Development: The principal resource of an organization is human resource that according to Jucuius (1976) may be regarded as the human factors, which refers to a whole consisting of inter-related, inter-dependent and inter-acting physiological, psychological, sociological and ethical components. According to Likert (1967), All the activities of any enterprise are initiated and determined by the persons who make up that institution, plants, offices, computers, automated equipment and all else that make a modern firm uses are unproductive except for human effort.
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Hence Human Resource is the resource that makes an organization, an institute, a society, a country or nation what it should be. The real need herewith is to develop the human resource, as is necessary, in different fields in an ideal environment giving it freedom from all evils of inequality and poverty that exist in a society. Once these constraints and evils of society remain in it, it leads to situation being adverse in nature for growth of Human Resource in its suitable form with respect to quality. 6.0 Conclusion Society, as in India in last three decades, as discussed here still is not free from the hazards which different social scientists have pointed. Still the outcome of these adversities is deprivation, exploitation, hunger, malnutrition and mountainous want of basic needs of live. All these are being the causes of hindrances towards growth of human resource which can adequately contribute towards t he cause of country, nation and its all round development.

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