Panel No. 9

Panel Title: Political Economy of Punjab

Convenor: Shinder Thandi, Coventry University, UK

    Thursday 8 July, 8–12

Panel Abstract: The convenors welcome papers on any sector of the Punjab economy and would like to encourage a political economy approach to the study of any dimension of Punjab economy. We would like the contributors to keep focus on the economy of the Indian Punjab. Within that framework, several modes of flexibility are possible:

1. A paper may discuss the pre-1947 United Punjab if that discussion draws out the implications for the post-1947 Indian Punjab,
2. A paper may discuss the post-1947 Pakistan Punjab for the purpose of comparative analysis and for drawing implications for the post-1947 Indian Punjab,
3. A paper may examine the diaspora dimension to the Indian Punjab economy, and
4. Comparative analysis of the economy of Indian Punjab with that of any other state of India or with any other country/region of the world.

Papers accepted for presentation in the panel:

Paper Giver 1: Shinder S. Thandi, Coventry University, UK

Paper 1 Title: Nasha Vilayate Da: Migration Syndrome and Punjabi Youth

Paper Abstract: Although Punjab has a long history of overseas migration, the past decade has witnessed an upsurge in both legal and illegal forms of migration. New and imaginative forms have emerged for engaging in human trafficking both to traditional areas of Punjabi settlement and to newer territories. The main objective of this paper will be to examine the new context of overseas migration in Punjab and the strengthened links with globalised human trafficking networks especially as they operate in Europe. The paper will explore the extent of the human trafficking problem in Punjab, motives for migration, popular methods of financing migration, imaginative schemes of engagement, and major routes and destinations. The paper will also explore how the ‘migration syndrome’ has changed the geography of overseas migration from Punjab and its long-term implications for the evolution of the Punjabi/Sikh diaspora.

Paper Giver 2: Virinder S. Kalra, Manchester University, UK

Paper 2 Title: A preliminary statistical analysis of a United Punjab from the 1998 (Pakistan) and 2001 (Indian) Census

Paper Abstract: The census of Pakistan in 1998 and the decennial Indian census provide a useful set of data from which to present some preliminary statistical data on the demographics and socio-economics of a theoretically constructed 'united' Punjab. The focus here is not so much on differential trajectories (which is important work and has been carried out to some extent by Thandi in the field of agriculture) but rather to focus on the potential market that would be available for industrialists and entrepreneurs interested and capable of investing in a trans-Punjab enterprise. The structural and state barriers to such a venture are formidable, but the data presented in this paper seeks to indicate potential rather than offer policy strictures concerning Indo-Pak relations.

Paper Giver 3: Jaswinder Singh Brar, Punjabi University, Patiala, India

Paper 3 Title: Indian Punjab Since 1966 : An Analysis of Human Resources in the Context of Economic Growth

Paper Abstract: The general socio-economic scenario in the state of Punjab exhibits inextricably complex relationship between education, health and economic growth. The fact of the matter is that the state has been experiencing multiple imbalances between social sector and economic growth. The reasonably high level of state income coexist with relatively moderate level of human resources, when the latter have been measured in terms of educational and health standards. The manifold quantitative expansion in the state domestic product has not adequately been channelised to affect the desired changes in the quality of human resources. Every incremental increase in the state income has inadequately invoked the transfer of resources towards the improvement of the quality of human resources. The imbalance between social sector progress and economic growth has been a matter of great concern in the future development of the state keeping in view the globalisation, privatisation and liberalisation of the national economy. The ever increasing knowledge intensity of the production requires very high level of human resources to compete in the national and international market. Education and health are the key inputs in the development and upgradation of human resources. In view of the above, it becomes important to analyse the social sector progress of Punjab. For this, the social sector progress of the state has been examined both in the absolute and comparative sense. The central objective of the study is to highlight the state's achievements, gaps and imbalances on the educational and health front from numerous respects. The paper has been divided into four sections. The First Section deals with the educational and income level of the state in relation to other states of the union. The human resources development of the state has been compared with that of other states and countries. In Second Section, the critical educational and health indicators of the state has been compared with that of Kerala. It is to be noted that the state of Kerala has recorded the highest level of human resources in the country and has been considered as the best model of social development. The Third Section is concerned with the various dimensions of the educational spread in the state. The last section summaries the main findings as well as policy implications.

      Full paper to be downloaded (as a pdf-file)

Paper Giver 4: B.S. Ghuman, Panjab University, Chandigarh, India

Paper 4 Title: Economic Liberalisation and Industrial Development of Punjab

Paper Abstract: In India economic liberalisation was initiated during mid 1980’s. However, in the beginning of the 1990’s, it became a mother policy encompassing all facets of the economy. An assessment of the policy suggests that its impact is uneven across sectors, states and strata of society. The objective of this paper is to examine its impact on the industrial development of Punjab. An attempt has also been made to compare Punjab’s industrial development with other states of the country wherever possible.
Prior to economic liberalisation, the industrial licensing policy of the Central Government was considered as one of the major policy constraints for industrial development of Punjab. Economic liberalisation has abolished licensing in most of the industries. It was expected that during post-liberalisation period, Punjab would attract increasing flow of domestic and foreign investment resulting in rapid industrialisation. A perusal of investment particularly foreign direct investment (FDI) figures suggests that reality is far away from the rhetorics. Punjab, for example, received FDI worths Rs. 24216.74 million only between August 1991 and October 2003. It works out to be 0.84 percent of the all India FDI. In contrast states like Maharashtra (17.36 %), Delhi (11.96 %), Tamil Nadu (8.55 %), Karnataka (8.27 %), Gujarat (6.50 %), Andhra Pradesh (4.61 %), and West Bengal (3.20 %) received much higher share of FDI. The share of neighboring state namely, Haryana was also more that that of Punjab. It is not only that fresh investment is not finding Punjab its destination in a big way, but a couple of industries in the state fail to face the onslaught of liberalisation and are on the verge of extinction. Two indicators of industrial development, namely, share of industrial sector in State income and growth of industrial sector clearly shows that industry in Punjab has failed to reap the benefits of economic liberalisation. The share of industrial sector in Net State Domestic Product was 14.78 per cent on the eve of economic liberalisation. It improved slightly but experienced a dip in the recent past. For example it declined to 13.74 per cent in 1999-200 from 14.36 percent in the previous year. The declining trend continued and the share of industrial sector has come down 13.46 percent during 2001-02. A comparison of the rate of growth of industrial sector during the 8th Five Year Plan (7.34 per cent per annum) and 9th Five Year Plan (5.46 per cent per annum) also reveal that industrial sector has suffered set back during the recent years of the post-liberalisation phase. In addition to common factors such as lack of natural resources, land locked state far away from ports, and national markets, and hostile international border, the major post liberalisation factors which are causing slow process of industrialisation include absence of new industrial policy (for about 12 years) patterned on the philosophy of economic liberalisation, lack of techno-ecnomic survey aiming to identify industries having locational advantages and quality of governance. The study recommends that opening of Pakistan border for free trade, pro-active industrial policy, identification and promotion of industries having locational advantages, pragmatic approach towards privatisation and improvement in quality of governance can help in a big way to industrialise the state.

Paper 5 Giver: Dhian Kaur, Panjab University, Chandigarh, India

Paper 5 Title: Changing Structure of Rural Employment in Punjab – A Spatial Analysis

Paper Abstract: The rural employment in Punjab has witnessed notable changes in its structure in consonance with the growth of state economy during the past few decades. The economy of the state has recorded a growth rate of more that 5 per cent per annum particularly after mid 1960’s. Most of this growth has taken place due to development of agriculture and livestock. Following the normal path of development agricultural and livestock have been released some employment to be absorbed by non-agricultural sectors. This is evident from the fact that in 1971, 80 per cent of the rural workforce was employed in agricultural sector, which reduced to 74per cent in 1991 and further reduced to 70 per cent in 2001. This is not evenly distributed over different parts of the state. It varies highly markedly from one part of the state to another. The present paper aims to analyse the spatial variations in changes in structure of rural employment in the state behaved with the growth of the economy? The paper is based on secondary data pertaining to 1971, 1991 and 2001 census years, which were collected from census publications of the Government of India. The analysis is based on the maps, which were prepared using choropleth techniques besides the use of techniques such as mean, correlation and regression analysis. Some suggestions and policy recommendations have also been given from planning point of view.

Paper Giver 6: H.S. Sidhu, Guru Nanak Dev University, Amritsar, Punjab, India

Paper 6 Title: Punjab Peasantry in Turmoil: A Close Look At The State’s Contemporary Agrarian Scene

Paper Abstract: Peasantry in Punjab, which happens to be the most prosperous state of India, is in turmoil. Hundreds of farmers have committed suicide in the last few years. Militant farmer’s organizations are resorting to agitations quite frequently. The intensity of distress is so acute that farmers are prepared to die rather than put up with the prevailing circumstances. Infact recently a farmer was killed in police firing in Amritsar district. This study takes a close look at the economic condition of cultivators, tenants and landless laborers, the three sections of rural society directly involved in agriculture, to identify factors responsible for this unrest.
The paper is divided into five sections. Section-1 deals with evolution of Punjab model of agrarian transformation in the wake of chronic food shortages in late 1950’s and early 1960’s. Section-2 discusses the trend in returns per hectare to farmers from the three major crops i.e. wheat, paddy and cotton and shows that a major share of the gains from increased productivity has been appropriated by the State through the mechanism of administered prices. Section-3 brings out the phenomena of reverse tenancy in Punjab and shows that tenancy is no longer a source of employment for the landless workers and small peasants. Section-4 brings out the poor condition of agriculture laborers. Section-5 sums up how in the face of economic distress, while some farmers are resorting to suicides, a large majority of them are in a mood to fight it out politically, leading to the present turmoil.