From a Republic to a Republic of Unequals (GS Paper 2, Polity)
Context:
- As India celebrated Constitution Day on November 26, 2024, marking 75 years since the adoption of its Constitution, a critical examination of the gap between the constitutional vision of an egalitarian society and the current reality of rising inequality is essential.
- The neoliberal ideological order that has shaped India's post-1991 economic reforms has increasingly overshadowed the constitutional commitment to creating an egalitarian social order.
Introduction: The Vision of an Egalitarian Republic
- India's Constitution, adopted in 1950, was the product of intense intellectual engagement among leaders from diverse ideological backgrounds.
- The goal was to build a single political identity that could accommodate the interests and rights of multiple cultural groups.
- The framers of the Constitution believed that the Indian state should play a positive role in reducing inequality and addressing the social and economic disparities inherited from the colonial era.
Liberal Framework with State Intervention:
- While the Constitution embraced the liberal democratic framework, there was an understanding that the state needed to intervene positively in economic and social matters to reduce inequality.
- This was reflected in policies such as affirmative action and reservation, designed to treat unequals in an unequal manner to create equality of opportunity.
The Constitutional Vision of Equality
The Indian Constitution envisions an egalitarian society in which inequalities are minimized, and citizens enjoy equal status and opportunities. Drawing inspiration from John Rawls’ egalitarian liberalism, the Constitution embodies three key principles:
- Equal Basic Liberties: The protection of fundamental freedoms for all citizens.
- Equal Opportunities: Ensuring that all citizens have an equal chance to succeed.
- Difference Principle: Justifying inequalities only if they benefit the least advantaged sections of society.
The Fundamental Rights (Part III) and Directive Principles of State Policy (DPSP, Part IV) of the Constitution are designed to uphold these principles, aiming to create a society where inequalities are reduced rather than perpetuated.
Role of the State in Reducing Inequality
DPSP and State Intervention:
- Articles 38 and 39 of the Constitution emphasize the role of the state in reducing economic inequalities.
- Article 38(2) mandates that the state work to minimize inequalities in income, status, and opportunities, while Article 39(c) emphasizes that economic systems should not lead to the concentration of wealth, which is detrimental to the common good.
Supreme Court's Interpretation:
- The Supreme Court has consistently reaffirmed the constitutional commitment to social and economic justice.
- In several landmark cases, the Court highlighted the Constitution’s commitment to creating an egalitarian society, focusing on social security, equality of opportunity, and reducing income disparities.
However, recent judgments have seen a shift in interpretation, with some decisions undermining the state's role in redistributing resources to reduce inequality. The Court’s reversal of earlier rulings on economic redistribution reflects a broader trend of moving away from the constitutional vision of a welfare state.
Economic Reforms and the Rise of Inequality
With the adoption of neoliberal economic reforms in the 1990s, India's economic landscape underwent dramatic changes. While the reforms spurred growth, they also resulted in rising inequality, particularly in wealth distribution. Key aspects of these changes include:
Withdrawal of the Welfare State:
- The role of the state shifted from being an active redistributor of resources to being a facilitator of market-based growth.
- This resulted in the gradual erosion of the welfare state and a focus on encouraging private capital investment.
Rising Income Inequality:
- Research by economists Lucas Chancel and Thomas Piketty highlighted the stark rise in inequality post-liberalization.
- The share of income held by the top 1% reached alarming levels, surpassing pre-independence levels.
- In the 1980s, the top 1% earned 6% of the total income, but by the 2020s, that share had surged to over 22%.
Social Inequality and Economic Disparities:
- Inequality in India is not just economic but also deeply intertwined with social disparities.
- Research shows that the upper castes control the bulk of billionaire wealth, while marginalized groups like Scheduled Tribes and Scheduled Castes are virtually excluded from this wealth accumulation.
- Between 2014 and 2022, the share of wealth controlled by upper castes in billionaire wealth rose from 80% to 90%.
Recent Findings on Inequality
State of Inequality in India Report (2022):
- This report highlighted extreme wage disparities, noting that the top 10% of earners earn an average of ₹25,000 per month, while the remaining 90% earn less.
- This stark inequality suggests that the promise of the Constitution—to create a society with equal opportunities—is far from being realized.
Wealth Concentration Among the Elite:
- Oxfam's 2024 report highlights the sharp rise in billionaires in India. From just 9 billionaires in 2000, the country now boasts 119 billionaires.
- The wealth of India's billionaires now accounts for an unprecedented share of the country’s total wealth, while millions of workers face stagnating wages.
Social and Economic Inequality Overlap:
- Research has shown how economic inequality is closely tied to social inequality, with caste-based discrimination reinforcing wealth disparities.
- For example, 90% of India's billionaire wealth is held by the upper castes, illustrating the close link between economic and social hierarchies.
Conclusion: A Republic of Unequals
- The neoliberal turn in India's economic policy has undermined the egalitarian vision of the Constitution.
- The state's retreat from its role as a redistributor of wealth has led to growing inequality, both economically and socially.
- The rise in the concentration of wealth among the elite, coupled with entrenched caste-based discrimination, reflects a republic of unequals rather than the egalitarian society envisioned by India's founders.
- As Constitution Day passes, it offers an opportunity to reflect critically on the gap between the constitutional ideals and the current state of inequality in India.
- The widening economic disparities and the overlap with social inequalities threaten the very foundations of political democracy, echoing Dr. B.R. Ambedkar’s warning that inequality could jeopardize India’s democratic fabric.
- The challenge remains for India to realign its political and economic practices with its foundational constitutional vision, ensuring that equality remains at the heart of its republic.
