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Innovation Systems and Inequality: Indian Experience K J Joseph

Innovation Systems and Inequality: Indian Experience K J Joseph Centre for Development Studies, Thiruvananthapuram Lakhwinder Singh Punjabi University, Patiala Vinoj Abraham Centre for Development Studies, Thiruvananthapuram. Background. Globalisation and Inequality

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Innovation Systems and Inequality: Indian Experience K J Joseph

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  1. Innovation Systems and Inequality: Indian Experience K J Joseph Centre for Development Studies, Thiruvananthapuram Lakhwinder Singh Punjabi University, Patiala Vinoj Abraham Centre for Development Studies, Thiruvananthapuram

  2. Background Globalisation and Inequality Origin and Rise of Inequality Structuralist-Evolutionary Approach Development Strategy and Inequality

  3. Co-evolution of NIS and Inequality in India • Phase I-Growth With Equity-Reducing injustice • Import Substitution and Public Sector • Technology-FDI-IPR Regime and Labour Related Policies • Asset Redistribution and Regulation of Monopoly Capital Policies • Fiscal, Monetary, Pricing and Freight Rate Policies • Food Procurement and Public Distribution System • Finance Commission and Redistribution of Revenue

  4. Co-evolution of NIS and Inequality in India • Phase II: Market Oriented Growth for Equity • Dismantling Controls and Policies • Widespread distress in the Rural Economy • Return back of Equitable Considerations • National Rural Employment Guarantee Act

  5. Trends and Patterns of Interpersonal Inequality in Consumption

  6. Year Rural Average Assets Gini Coefficient Urban Average AssetsGini Coefficient 1961-62 5287 0.6440 - - 1971-72 11343 0.6564 - - 1981-82 36089 0.6364 40566 0.7037 1991-92 107007 0.6207 144330 0.6805 2002-03 265606 0.6289 417158 0.6643 Inequality of Wealth Across Households in India: 1961-62 to 2002-03. (Figures are in Rs.) Source: Subramanian and Jayaraj (2006).

  7. Inter-Regional Disparities

  8. Inter-Regional Disparities • History does matter-Colonial System of Exploitation and Regional Structure • Three Phases • First Phase: Decline in Inter-regional disparities till Mid-Sixties • Second Phase: Rise in Inter-regional disparities-Green Revolution Period • Third Phase- Liberalisation Period-Rising Inequality-Service Sector driven growth and disparities

  9. Social Disparity • Class Vs Social Categories Provided by the Constitution • SCs, STs and OBCs • Education, Capability Building and Opportunities • The rate of educational dropouts is much higher for SCs, STs and OBCs. • The rates of return on education for SCs/STs is also very low

  10. Gender Discrimination • Adverse Sex Ratio- 933 • Discriminatory practices such female infanticide, female foeticide and practice of dowry • Female literacy has improved but still gender gap is 0.7 • Gender gap in wages is also very high

  11. Access to Health • Continuous improvements in Health Indicators, but gini coefficient shows stagnation in the post-liberalisation period • Piling up of food stocks and persisting malnutrition • 40 per cent children suffering from severe malnutrition • 46 per cent children remained unvaccinated • More than half the births take place without the benefit of a skilled attendent

  12. Economic Development and Structural Heterogeneity • Structural Transformation from agriculture to service sector • Dependence of workforce for livelihood primarily remained on agriculture sector • Employment opportunities in the informal sector • Informal employment in the formal sector • Decline in employment elasticity.

  13. Year Primary Secondary Tertiary Secondary + Tertiary Kuznets’ index of inequality Secondary + Tertiary/ Primary 1950-51 0.73 1.57 1.88 1.76 39.94 2.41 1960-61 0.68 1.74 1.93 1.85 46.38 2.72 1970-71 0.60 2.00 2.10 2.06 58.09 3.43 1980-81 0.53 1.88 2.32 2.12 66.18 4.00 1990-91 0.44 2.35 2.19 2.26 77.29 5.14 1999-00 0.37 2.23 2.08 2.14 81.20 5.78 Inter-sectoral Productivity Differentials and their bearing on Inequality Source: Sivasubramonian (2000).

  14. Regional Disparities in Competence Building Institutions and Production • 1300 Science and Technology Institutions have been established • 1400 R&D Units are functioning • These are located in eight states-Viz. AP, Karnataka, Kerala, TM, Maharashtra, Delhi, UP and WB • Public sector R&D is still more than 78 per cent • Concentration of both public and private sector R&D expenditure in the Engineering and Technology.

  15. Conclusions and Way Ahead • Innovation System Remained Subservient to the National Priorities and Goals • Production structure shown dynamism and inherently generated inequities • Science and technology accentuated inequities • Policy Instruments ensured to some extent the control over the inequitable regime but upper sections of society turned these instruments either in their favour or subverting them into non-functional • Social movements and inclusive growth: Return of employment guarantee programme-Democratic Polity and Inclusive growth

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