Sunday, March 19, 2017

Is the Union of India protected by too many differences?

"In India we often express legitimate concern about threats to the integrity of the Union, as relating, for instance, to Maoist and regional insurgencies," wrote Professor Vivek Dahejia. "But think for a moment that burgeoning economic, social and other disparities among sub-national regions in large federal states have historically fed secessionist movements at least as much as ideologically or religiously inspired insurgencies." The disparity in wealth between the rich south and west of India, compared to the poor north and east, is just as much a danger as the huge diversity in religion and cultures. The disparity is increasing wrote Chief Economic Adviser, Arvind Subarmanian and others. "Disparities have been strengthening, not weakening, over time. The less developed states are falling behind the richer ones instead of catching up." In the world, poorer countries are catching up with richer countries and poorer Chinese provinces are catching up with richer ones. In India it is the opposite, despite no borders between states and free movement of people. "The average Tamilian today earns four times more than the average Bihari. Just three decades ago, the average person in the then richest state, Maharashtra, earned less than twice the average in the poorest large state, Bihar," wrote Praveen Chakravarty and Dahejia. To get rid of difference in tax rates between states, the government is to introduce the Goods and Services Tax. The expectation is that if land and labor are cheaper in Bihar then industries will move to that state from the richer states, thus making them equal over time. But what if the opposite happens? What if companies find it easier to start business in states which have a large pool of educated workers and rich consumers to buy their products. GST will make it easier for them to transport goods to poorer states, increasing disparity. It was the economic differences between the industrialized north and the agricultural south of the US that resulted in the Civil War in 1861. Perhaps, to prevent any move towards secession freedom of speech is restricted in India. Successive governments have been authoritarian, including those of the left wing Congress, writes Aakar Patel. Indian citizens can be locked up under various repressive laws without due process, and sentences are harsh. Not so. Our courts are extremely loving towards criminals. Sanjeev Nanda received a paltry 2 years sentence for killing 6 people, including 3 policemen, and destroying evidence. Courts regularly allow withdrawal of charges of heinous crimes against politicians. There are so many differences that there is no unified protest. The Union is safe.

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