Thursday, March 31, 2016

Notes for Discussion for Session 8 on The Neoliberal State (Part 2)

The State in India after liberalization: Introduction 
Akhil Gupta and K. Sivaramakrishnan

The authors in this book question the perceived economic growth in India and the transformation of state and society after the ‘economic reforms’ or liberalization in 1990s. Liberalization in India not only changed the economic policy towards international investment but also led to the entry of private investment in core sectors like health, banking and education. Decentralization was also a feature of the 1990s simultaneous with liberalization, and both have impacted together on the Indian state. An attempt is made to find how the state channels its power while overtly it is retreating. Secondly, the book tries to tease out the various arena in which neoliberalization has played out quite differently in India than elsewhere.
Through liberalization, the state moved in favor of the industrial capitalist, by removing restrictions, enabling foreign direct investments, eased acquisition of land, etc. In terms of decentralization, each state was given the powers to seek its own investment and develop its own strategies for development, creating enormous differences and competition among the states to attract the industrial capitalists. The state has also had to invest in massive development schemes owing to populist pressures – in a sharp contrast to slashing public investments in other liberalized nations. This makes the Indian context unique.
The authors argue that liberalization changed the structure of the government as well as the normative principles from which it derived its authority – e.g. there was a marked change from the socialist ideals of the developmental state of the 1940s -1980s. It also led to changed relations between centre and state governments owing to growing strength of regional political powers, as well as the shift of state power between levels of government (not necessarily shrinking of state power).
In the neoliberal state, the NGOs (and/or Government Organized NGOs) also emerged as an important agent in the interaction of people and state agents. While elsewhere rise in NGOs is considered as a sign of democracy, in India emergence of NGOs played out differently. Social movements transformed into social development enterprises and often NGOs were coopted into undertaking state tasks. The state not only funded NGOs but also created channels for imposing control and surveillance over their activities.
Liberalization was touted to lead to redistribution of wealth and several studies pointed to the drastic reduction in poverty post economic reforms. However, there is considerable debate about this issue. It is found that the developmental state and the poor had traditionally interacted such that the poor depended on the public investments, subsidies and credit. With the liberalization and the state’s faith in economic growth as an engine for employment, the interaction of the developmental state and poor changed drastically offering no cushioning for the poor to adapt. Low agricultural growth rates, informal employment sector, and other such features of the rural economy have led to a decline in social development aspects as a result of increased faith in privatization – including the delivery of basic services. There is serious drop in public spending on healthcare and education which also marks the changing moral basis of the state.
In the neo-liberalised state there is also a serious reduction in the ‘developmental state as an engine of social inclusion’. The state places these responsibilities on the market whereas, foreign investors invest in regions conducive to their growth and rarely bother about increasing disparities and inequalities. The law which used for asking questions about social inequalities too has transformed over time. As the democracy grows and evolves, there are questions being raised about how inviolate the Constitution should be. Liberalization marks the shift from society to individuals – it is reflected in the way law also tries to focus on the individual rights within groups.
The book then dwells on the creation of the enterprising-citizen – that the local traders and federation now have to respond to the globalised market and competition, where the state itself is interested in competitiveness rather than cooperation. Thus trade (banks, trade laws) becomes an arena for the state to reconstruct its sovereignty.
In conclusion, the authors highlight that the Indian difference in the liberalization has been the component of democracy which gave a feedback to the state regarding its policy of redistributive justice. They also emphasize that while liberalization has led to an increase in economic growth, there has been a simultaneous increase in social inequality between people and regions. Indian liberalization has not followed expected or familiar trajectories and has created differential impacts on everyday experiences of individuals and institutions. 

Governing ‘‘Advanced’’ Liberal Democracies
Nikolas Rose

The author seeks to find how the state created apparatuses for regulation of what was personal and private and the rules and norms of conduct in the public sphere. There is an exploration of what constitutes freedom in the balance sought between liberty and government.
The author proposes three hypotheses; (detailing of only the third hypotheses on advanced liberal state has been attempted)
1.       Liberalism tried to deal with opposite objectives: the need to govern in interest of morality and order and the need to restrict the government to secure interests of liberty and economy. This role was taken up initially by the ‘philanthropist’ who had claim to knowledge and neutrality. With the rise of the idea of ‘rationality of rule’ increasingly the role of the philanthropist was taken by the scientist, bureaucrat, engineer who exercised authority through specialized knowledge and technology
2.       A need to tame the undesired consequences of industrial life, wage labour, etc. was felt and a ‘social’ concept of rule emerged. There was emphasis on building social solidarity, social security, social prosperity. The focus shifted toward integrating individuals into a social form. Individuals were to be governed through society.  Welfare of the individual was sought through the welfare of society. Among several problems of this form of rule was the path of ‘total state’, where individual rights, democracy and freedoms were subverted for ‘social welfare’.

3.       This focus on society and welfare had impacts on public finances, individual rights and an ‘advanced liberal’ rule emerged, which was a complex of early liberalism and certain aspects of the welfare state. The advanced liberal rule depends on expertise of the scientists, bureaucrat and yet subjects them to the rationality of markets (competition, consumer demand). The rule is not through society, but through the regulation of individual choices – individuals are governed through freedom. There is a certain valorization of choice.  This autonomizing and pluralizing formula of rule depends on both – the individual’s pursuit of self-realisation and also on abiding by the orders of the ‘expertise’.  It rests on the value that freedom is the cornerstone of the growth of civilization. This form of rule emerged, among other things, as an aftermath of the World War II and as a response also to the growing discontent with governmental overreach, the consolidation of economic power in the middle-class, etc. A de-legitimization of the expertise was sought as individuals reconceptualised themselves as different from the images projected by the expertise. Marketisation gave a ‘choice’ to individuals to engage with expertise and what kind of expertise. There is also a shift from the notion of a centrally controlled ‘society’ to a self-regulating ‘community’ that comprises of responsible individuals.  The author states that within this new regime of the ‘actively responsible self’, individuals are to fulfil their national obligations not through their relations of dependency and obligation to one another, but through seeking to fulfil themselves. Further, individuals are expected to become ‘‘experts of themselves’’ - to adopt an educated and knowledgeable relation of self care. Technologies then had to be devised to ensure that individuals are made responsible to those whom they owe allegiance. These technologies included indirect methods of regulating individual choices such as through mass media, advertising, and marketing. The individual is educated to become calculative, prudent to avert risks, they are made ‘active responsible citizens’ through the use of counseling, skilling, etc. 

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