The Nitish Kumar government will start its much-hyped caste-based census in Bihar. The project will cost Rs 500 crore.
The state government will conduct the exercise in two stages. In the first phase, which is likely to be over by January 21, the number of all households in the state will be counted.
First Phase: In the first phase, which will be over by January 21, the number of all households in the state will be counted.
Second Phase: In the next phase, data pertaining to people of all castes, sub-castes, and religions will be collected.
What is Caste Census?
A caste census is basically the counting of people belonging to different castes in a particular marked area.
With this two-phase exercise, the Bihar government will try to get numbers of people belonging to SC, ST, and OBC communities and their financial status among other important things.
The exercise is termed ‘Jaati Aadharit Ganana’. People belonging to every religion and caste will be covered during the exercise.
Why is it being done in Bihar?
Caste, as an entity, plays a major role in Indian politics.
However, the advocates of the caste-based census argue that reservation to the SCs and STs was given based on their population, but this is not the case with the OBCs.
The central government conducted a socio-economic and caste census in 2011, but the data was not released.
Bihar has been repeatedly demanding a caste census for the last several years. The state legislative assembly passed two unanimous resolutions, in 2018 and 2019, in favour of a caste census.
The caste-based headcount will enable the government to work for the development of various sections of society, including those who are deprived.
Political implications of the move
If the caste census data comes out before the 2024 Lok Sabha election, Bihar coalition, both heading caste-based parties, could be its biggest beneficiaries.
Conversely, the sensitive caste census data may ignite a fresh round of Mandal and Kamandal politics (slang used for OBC reservations in Bihar).
Arguments for caste census
A caste census is not merely geared to the reservation issue.
Enumerating the marginalized: A caste census would actually bring to the particular the number of people who are at the margins, or who are deprived, or the kind of occupations they pursue, or the kind of hold that institutions like caste have on them.
Data for Policymaking: This information is absolutely necessary for any democratic policymaking.
Judicial backing: The courts in India have often emphatically said that it is important to have adequate data with regard to the reservation.
Caste offers privilege: Caste is not only a source of disadvantage; it is also a very important source of privilege and advantage in our society.
Caste doesn’t marginalize: We need to do away with the idea of caste being applicable to only disadvantaged people, poor people, people who are somehow lacking.
Rids away caste rigidities: Counting of caste doesn’t necessarily perpetuate caste or the caste system. Myths of caste elitisms can be debunked through a caste census.
Arguments against caste census
50% breach: It is argued that a Socio-Economic Caste Census is the only way to make a case to breach the 50% cap on reservation and rationalize the reservation matrix in the country.
Caste within Caste: Given the differences in caste hierarchies across various regions of the country, a comparative reading along with generating a common hierarchy may be a challenge.
Caste over occupation linked predicaments: Further, caste linked deprivation or adversity may not be as common as occupation linked predicaments, which become easier to compare across states/regions.
Anonymity and bias: An intimate and personalised attribute like caste may have its differential exposition between urban and rural residents. Urban residents’ need for anonymity can always bias the reporting on caste.
Identity crisis: Above all, recognition and adherence to caste identity is to a large extent shaped by progressive ideals, cosmopolitanism and education, which has its own regional divide in the country between the north and the south.
Hurdle to casteless society: The idea of a national caste census is abhorrent when the stated policy is to strive for a casteless society.
Feared outcome: Exposing inefficacy of caste-based reservations
Fractional benefits: The way reservation is practiced has invariably led to elites among castes and communities.
Domination: These elites within the castes have tended to exercise their dominance over their very communities and not let them exercise the kind of freedoms, or search for equality, which any democratic polity deserves.
Welfare isn’t reservation: The state has helped privileged communities far more, even though this help has not taken the explicit form of programs like reservation.
Why is a caste census always controversial?
Data manipulation: This is a manifestation of the principle that those in power control data and information.
Censoring of data: We have had instances where this data has been collected but has not been made public.
Relative deprivation: Since a caste census is a necessity, it is not a happy thing, it is not a great achievement, it is just something that the State has to do circumstantially.
Vote bank politics: Vested interests of particular state governments in hunt for vote banks are also visible these days.
Way forward
Socio-Economic Caste Census: Many have argued that a SECC would be the best way to rationalize reservation based on data and make a strong case for breaching this gap. Earlier governments argued that counting caste will perpetuate it.
Focus on rational parameters: Attributes like caste and religion should be less important compared to modifiable attributes like education, occupation and other endowment linked attributes.
Conclusion
Favoring one caste becomes a disfavor for others. This is an undeniable fact of Indian society.
It seems that the caste census will happen unless something extraordinary happens in our polity.
There are also important questions of demands coming up because of mismatches between the numbers that we come out with and the share in resources that different communities have.
This is a kind of nightmare that all governments fear. So, they would much rather leave things vague.
The Backward Classes are more than 50% of the population. And this dispensation knows that it cannot afford to lose the support of the Backward Classes.
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More than six years after the Centre’s decision to demonetise the Rs 1,000 and Rs 500 denomination notes in 2016, the Supreme Court in a 4:1 majority verdict, has upheld the move.
SC upholds Demonetization decision
Constitutionally valid: The Supreme Court ruled that the decision to scrap the high-value currency notes does not suffer from any legal or constitutional flaw.
Valid intention: The judgment said the decision-making process was not flawed merely because the procedure emanated from the government.
No overnight phenomena: The decision came up after six month consultation between the Reserve Bank of India and the Union government.
Executive decision: The top court also observed that the decision being the executive’s economic policy cannot be reversed.
What is Demonetization?
Demonetization is the process through which a nation’s economic unit of exchange loses its legally enforceable validity.
Currencies that are terminated are no more legally considered exchanges and have no financial value.
It is a process by which countries opt to reintroduce defunct currencies as legal money.
Demonetization in India
2016 is not the first instance of demonetization in India.
1946: The RBI demonetized Rs. 1,000 and Rs. 10,000 currency notes which were then under circulation.
1954: The Government introduced new currency notes of Rs. 1,000, Rs. 5,000, and Rs. 10,000.
1978: The Janata Party Government under Morarji Desai demonetized Rs. 1,000, Rs. 5,000, and Rs. 10,000 to curb illegal transactions and anti-social activities.
Reasons behind Demonetization
While demonetization is exceptional, governments around the globe have used it because of several reasons-
Formalization of Economy: Demonetization helps formalize India’s informal economy. It reduces the extent of cash transactions and help in the creation of a less-cash economy.
Inflation control: If problems like hyperinflation happen in any country, then the government considers demonetization as a solution to take back control and minimise the adverse situation.
Increased Saving: As a result of demonetization, people will tend to deposit their cash in the bank rather than at home. This will help them save more.
Eliminating counterfeit currency: Some negative situations or actions like counterfeit currency, terror, and tax fraud can all be eliminated with demonetization.
Introducing new system: Demonetization is also used to introduce a new monetary system in some circumstances.
Fight corruption: Demonetization is used to improve a cash-based emerging economy as well as fight corruption and criminality.
Pros and cons of Demonetization
[A] Pros
Governments can benefit from currency demonetization in several different ways, from preventing and reducing criminal activity to currency regulation. Below are the advantages of demonetization.
Increased money outflow
Increased revenue collection
Reduced conspicuous consumption
Curb over criminal activities and terror financing
Forbid tax avoidance and other financial crimes
Contributed to the dawn of paperless financial system and UPI
Ensured transparent funding of elections and election expenditures
[B] Cons
Some disadvantages of demonetization are stated below.
Furore and Panic among the general public ex. Long queues in Banks and ATMs
Disruption in economic activity and daily expenses
Supply-chain disruptions
Drop in rural demand
Black marketing of the new notes/ Old notes replacement mafias
Expenses issuing new currency and coinage minting can be high
Illegal activity will not be stopped entirely
May create disturbances among individuals
A critical evaluation
Black money is not just cash: The sudden demonetization was premised on the idea that “black means cash”. And, it is in high-denomination currency notes that black money would be held.
Benami transactions whitens black money: The truth is that illegal cash transaction, though black money, constitute a very small proportion of the black economy.
Much cash was accounted: Much of the prospected cash in circulation including a major chunk of ‘black money’ was collected back by the RBI.
Wealth is dispersed: The wealth is held in a variety of forms like, in undervalued inventory or balances held in tax havens abroad. A return is expected from this wealth. So, cash, on which there is no return, would be a tiny amount – 1% of the black wealth.
Schemes were exploited: Deposits in Jan Dhan accounts suddenly swelled as the poor were used as cash mules. Some bankers were caught helping their rich clients do this. There was a 30% charge for this. As a result, new black incomes got generated.
Suspicion over timings: Some suggested that demonetization was ordered for political reasons – that it was crucial to win the impending UP elections. It was thought that if the Opposition lost its black-money hoards, it would not be able to campaign effectively.
Bluff over objectives: Within days, the government changed the goalpost. It argued that the move would make the economy “cashless”. After few months, the goal became a “less cash economy”.
Fuss over fastest growth: Official data showed that the year of demonetization, 2016-’17, had the best growth rate for the decade. The reason is that unorganised sector data is not available so the GDP data uses the organised sector as a proxy to capture it.
Embraced as failure: Demonetisation is perceived as an ill-advised step that did not achieve any of its goals. The ruling party understood this and did not showcase it as an achievement in the subsequent elections.
How demonetization affected the poor?
Market vendors had to shut down their shops: Typically, market vendors farm on a daily basis and sell their production. The drop in customer traffic, however, forced the market vendors to shut down their shops.
Informal sector collapsed: Informal workers including domestic help, agricultural laborers, workers in factories, micro-business owners, daily-wage workers, etc. receiving their salary in cash were severely disadvantaged.
Household expenses distorted: Typically, working class people have basic jobs with fairly low wages. Due to the fact that there is a shortage of cash flow, many low-income workers experienced delayed salary payments.
Income loss to farmers: Disruptions, breaks in the supply chains feedback to farmers as sales fall, increased wastage of perishables, lower revenues etc.
Gendered impact: Demonetization amplified the inherent discrimination against women in Indian society who are financially excluded. Same was the case with sex workers and transgenders.
Conclusion
Demonetization brought about a policy-induced crisis for the country, adversely impacting the marginalized sections of society – women, farmers and workers – while doing little to curb the black economy.
However, it can be termed as a good intended policy with hasty execution.
![[Sansad TV] Perspective: Demonetization Verdict](https://d18x2uyjeekruj.cloudfront.net/wp-content/uploads/2022/12/sansad.jpg)
