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Income Inequality and ‘tunnel effects’ : the case of a dry-land Telugu village

Income Inequality and ‘tunnel effects’ : the case of a dry-land Telugu village . Nilotpal. Anantpur ; background info. . Dispatches from the village. No. of small farms (≤5 acres) grew by 151% between 1985-2005

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Income Inequality and ‘tunnel effects’ : the case of a dry-land Telugu village

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  1. Income Inequality and ‘tunnel effects’ : the case of a dry-land Telugu village Nilotpal

  2. Anantpur; background info.

  3. Dispatches from the village • No. of small farms (≤5 acres) grew by 151% between 1985-2005 • But average groundnut yields/acre have declined by 33% (during 1988-93 and 2001-06) • So, a ≤ 5acres meta ryattuhas a gross return of Rs. 7,235 when the Chayanovian viability threshold is Rs. 19,455 (@ 2005 commodity prices), in a normal monsoon year. • And every 1 in 3 monsoon season fizzles out in this village and in villages around it

  4. Dispatches…… • So, being risk-averse under relative deprivation (i.e. not satisficing, Lipton 1982) , he participates in a ‘bore-well rush’: - 64.5% of HHs drilled a bore-well between 2000-2005 - no. of HHs drilling 2-3 wells in a single night abound - but only 34% HHs have had access to a thoTa - because of thefailure and volatility of bore-wells (every 2 of 3 attempts failed in sampled HHs) - it shows starkly Increasing social costs of groundwater irrigation for the late coming meta ryttu

  5. Risk-averseness under relative deprivation • But why do they take such risks: - citrus offers gross returns/acre 12-15 times that of dry groundnut (AP ranks 1st in citrus production) , - thus those 34% thoTa owing HHs are a ‘class’ in- themselves in Bourdieu’s sense (economic +non- economic capitals) - and this class, in local view, is able to somewhat ‘catch up’ with ‘town-people’ (median urban HH income in Andhra Pradesh is 2.3 times higher than that of rural HH, cf. IHDS data, 2004-05)

  6. Hirschman’s ‘tunnel effect’: costs of inequality • Implications of meta-thoTa-urban incomeinequalities : - All sampled small farm HHs indebted, average debt Rs. 51,600 (size and plot-location biases important to indebtedness) - High Status insecurity/volatility (Durkheim’s anomie operates in both directions- Pamurathi family’s case) - other-oriented violence and ‘water-disputes’ , local ideas of envy (asuya) - Self-oriented violence (cases of suicide) • Understanding these implications with ‘tunnel effect’: Hirschman’s proposition - a(n) individual’s/society’s tolerance to rising inequality is curvilinear and hence serious ( oppo. Rawls’ view)– the ‘local theory of chance in success, of envy’.The template of “direct action” here is not collective action but largely individualistic action.

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