Pa ne l 6 T he Impac t of the State Ho w fa r ha s the sta te - PowerPoint PPT Presentation

Labour Market Inequality in Brazil and India: A Comparative Study Pa ne l 6 T he Impac t of the State Ho w fa r ha s the sta te mo difie d the distrib utio n o f inc o me in e a c h c o untry? Wha t ha s b e e n the ro le o f e duc a tio n a nd o the r so c ia l po lic ie s? New Delhi, 17th February, 2015

Introduction • So c ia l Po lic y; so c ia l a ssista nc e , e mplo yme nt pro g ra mme s, a ffirma tive a c tio n, e duc a tio n a nd he a lth, so c ia l infra struc ture . • Ro le o f e duc a tio n: c o nside re d impo rta nt fa c ilita to r o f mo b ility • Pla c e the se po lic ie s a nd o utc o me s in the b ro a de r g ro wth re g ime s a nd sta te a c tio n I nstitutio ns fo r de live ring so c ia l po lic ie s sinc e the 1930s in • b o th c o untrie s. But ma ny diffe re nc e : – Size o f e c o no my a nd the size o f fo rma l se c to r, a nd thus the na ture o f unio nisa tio n, Na ture o f a g ric ultura l pro duc tio n, I nte g ra tio n with wo rld e c o no my; Na ture o f so c ia l hie ra rc hie s, g e nde r diffe re nc e s; Re g io na l imb a la nc e s • ‘ De ve lo pme nta l Sta te s’ : Go ve rnme nt’ s missio n to pro mo te industria lisa tio n a nd e c o no mic de ve lo pme nt 2

Social Policies in Brazil • I n Bra zil, Wo rke rs so c ia l pro te c tio n, a nd e duc a tio n re la te d me a sure s initia te d in the 1930s. Sta te –le d industria listio n, le a ding to a pha se o f rising ine q ua litie s a nd • c re a tio n o f rura l a nd urb a n pro le ta ria ts. I ndustria l wo rkfo rc e e xpa nde d in the 70s, po ve rty de c re a se d, b ut • so c ia l e xc lusio n inc re a se d; b ut pro c e ss le d to fo rma tio n o f we ll-o ff middle c la ss. • But till 1988 it wa s a se g re g a te d so c ia l se c urity syste m, he a lth a nd pe nsio ns fo r fo rma l se c to r, a nd e duc a tio n wa s unive rsa lise d (b ut the po o r c o uld no t a c c e ss it, e spe c ia lly se c o nda ry e duc a tio n) • Po st – 1988 Bra zil re struc ture d the fra me wo rk; ma king e duc a tio n, he a lth, pro -po o r po lic ie s during this pe rio d, no n- c o ntrib uto ry • So me individua l la b o ur rig hts we re ma de funda me nta l rig hts; mic ro - c re dit po lic ie s in Bra zil we re a lso e xpa nde d in this pe rio d 3

Social spending as a percentage of GDP, Brazil, 1990-2009 90s saw rising expenditures on social policy – also consolidation of social security under ‘Family Allowance’ in 2000 2003, further shift towards more comprehensive and universal programmes Steady rise in GDP devoted to social policy – 18 per cent in 1990 to 27 per cent in 2009, social security from 9 per cent to 14 per cent 4 India’s expenditure on social policy in 2013 around 7.5 per cent.

Social Policies in India • Ma ny me a sure s suc h a s the fo o d ra tio ning syste m a nd a ffirma tive a c tio n ha d a lre a dy b e e n in pla c e during c o lo nia l time s. • Struc turing o f the I ndia n Co nstitutio n: Critic a l ro le in de fining the ‘ ide a ’ o f so c ia l po lic y • T hre e pha se s up till 1980: – 1950s: L a rg e ly ig no re d so c ia l po lic y, de pe nde d o n e c o no mic g ro wth to a ddre ss so c ia l g ro wth, limite d la nd re fo rm – 1960s: Re a lisa tio n fo r the ne e d fo r so c ia l po lic ie s due to the fa mine s a nd the fa ilure o f ‘ g ro wth. Ho we ve r little wa s do ne during this pe rio d. Me a sure s a t this time ma inly a ddre sse d rura l po ve rty. Gre e n re vo lutio n re g io na lly imb a la nc e d, fa vo uring la rg e r fa rme rs. – 1970s: Ne e ds a sse ssme nts; la rg e r pro g ra mme s imple me nte d, a nd 70s a nd 80s witne ss c o nside ra b le po ve rty re duc tio n • Co ntinue d to b e do mina te d b y la rg e po o r a g ric ultura l po pula tio n 5

India: 1980s onwards • 1980s: Policy development and implementation of new programmes continued. The programmes of the 70s were restructured and expanded. Shift from a welfare perspective towards an empowerment perspective vis-à-vis women, some discussion on ‘quality’ of education. • 1990s: The restructuring and expansion continued during the 90s. The liberalisation process led to increasing inequalities, once again, there was some hope that the ensuing growth would address some social issues. Greater decentralisation (73 rd and 74 th amendment) were seen as tools for greater efficiency in policy making and implementation. • 2000s: This decade was marked by a movement towards rights based policies, after 2004-05, there has been a resurgence in social policy spending and may have had a role to play in not letting the Gini rise rural areas (which is the target of most social policies) such as the rise seen in urban areas. 6

Total government expenditure and social sector expenditure as a proportion of GDP; and social sector expenditure as a proportion of total expenditure, India, 1990-91 to 2013-14 7

Expenditure on the social sector as a proportion of Gross Domestic Product, India, 1990-91 to 20013-14 8

Social Security and Income Transfers Bra zil: Co ntrib uto ry pe nsio n syste ms, he a lth c o ve ra g e fo r wo rke rs sinc e the • 1930s = pro po rtio na l to c o ntrib utio n • Unive rsa l he a lth c o ve ra g e fo r a ll sinc e 1988 • No n c o ntrib uto ry pe nsio ns fo r o ld pe rso ns, wo rke rs a nd disa b le d sinc e 1988 = 1 minimum wa g e Sinc e the la te 90s, c a sh tra nsfe r pro g ra ms la unc he d (so me a re c o nditio na l), • sig nific a nt inc re a se in the se pro g ra ms sinc e L ula (2003) = le ss tha n o ne minimum wa g e – One in fo ur re c e ive so me kind o f tra nsfe r fro m the g o ve rnme nt India : So c ia l se c urity intro duc e d fo r e mplo ye e s in the 50s b ut limite d to sma ll • g ro ups o f industria l a nd pub lic se c to r wo rke rs, c o ntrib uto ry sc he me s fo r fo rma l se c to r a nd o c c upa tio na l g ro ups in info rma l se c to r • No n c o ntrib uto ry pe nsio ns fo r o lde r pe rso ns, disa b le d, wido ws (po o r): Ha ve g o o d c o ve ra g e b ut a mo unt o f pe nsio ns is e xtre me ly sma ll, suppo rts sub siste nc e • F o o d Ra tio ning / PDS: Sub sidise d ite ms. T a rg e te d a t po o r ho use ho lds. Sta te - wide diffe re nc e s NRE GS – Rig ht to wo rk, g ua ra nte e s 100 da ys o f e mplo yme nt/ ye a r in rura l • I ndia , se ts minimum wa g e . Hig h pa rtic ipa tio n o f wo me n a nd SC, ST s. Sig nific a nt impa c t, multiplie r e ffe c ts. 9

Rights, Access and Participation: Health and Affirmative Action • I n Bra zil, he a lth se c urity fo r fo rma l wo rke rs, we a lthie r a c c e sse d priva te c a re , e xpa nde d with g ro wing so c ia l se c urity, la te 1980s se e s unive rsa lise d he a lth syste m, g o b e yo nd o c c upa tio na l struc ture , ho we ve r ha ve funding a nd ma na g e me nt pro b le ms, spe nding g re w little . So me ne w pro g ra mme s in mid 2000s I n I ndia , he a lth fa c ilitie s in princ ipa l unive rsa l b ut po o r q ua lity a nd • a c c e ss, se c urity limite d to fo rma l se c to r, c o nc e ntra te d in urb a n a re a s, fo c us o n fa mily pla nning . Na tio na l he a lth po lic y in 1983, b ut imple me nta tio n hurdle s, q ua lity a nd e ffic ie nc y. Priva tisa tio n – tho se who c a n pa y. Re ne we d fo c us sinc e mid-2000s I n Bra zil, a ffirma tive a c tio n a t the unive rsity le ve l fo r b la c ks, po o r a nd • pub lic sc ho o l stude nts ha s b e e n intro duc e d sinc e 2000. Sta te s ha ve so me a uto no my in se tting rule s. • I n I ndia , in Pub lic Jo b s, Hig he r E duc a tio n a nd L e g isla tive Asse mb lie s – Hig hly po litic ise d , c o nc e ptua lize d a s a n e xc e ptio n fo r SCs a nd ST s, e xpa nd e d to c o ve r the OBCs (re q uire me nt is d e b a ta b le ), so me g ro ups pe rha ps mo re d e prive d le ft o ut. Re se rva tio ns o f wo me n in jo b s, e d uc a tio n, a s we ll a s PRIs, b ut no t in le g isla tive a sse mb lie s – Ha ve ha d so me po sitive impa c t, a ffe c te d b y imb a la nc e s in a c c e ss to e d uc a tio n, to so me d e g re e a ppro pria te d b y mid d le c la sse s (OBCs) 10