Bloomberg Businessweek - USA (2020-08-31)

◼ECONOMICS BloombergBusinessweek August 31, 2020

UndoingIndia’sGainsin

FightingPoverty

32

DHIRAJ

SINGH/BLOOMBERG

THEBOTTOMLINE Homepricesin bedroomcommunities

outsidebigU.S.citiesarerisingfasterthanin metroareas,asvirus-

warybuyerstakeadvantageoflowinterestrates.

MillionsofmigrantworkersinIndiamadearduous

journeysbacktotheirvillagesafterthegovernment

imposedtheworld’slargestlockdowninMarch.

Manysaycastediscriminationtheyfaceinrural

hinterlandsis reversingeventhesmalleconomic

andsocialgainstheyekedoutincities.

InthevillageofAston,inthecentralstateof

MadhyaPradesh,RajuBanskar,33,saysthedou-

blestigmaofcomingfroma lowercasteandhaving

traveledfromNewDelhi,wherethecoronavirus

is spreading,hasmadeit impossibletofinda job.

Inthecapital,constructionworkbroughthimas

muchas 300 rupees($4)a day,andfewpaidatten-

tiontohiscaste.

But building sites shut down when Prime

MinisterNarendraModiimposedthenationwide

lockdown.Backhome,Banskarsaysjobscreated

throughgovernmentprogramsaremostlyallo-

catedbythevillageheadmantouppercastework-

ers.NinemigrantsinterviewedbyBloombergNews

inseveralIndianstateshadstoriesthatweresim-

ilartoBanskar’s,showinghowthepandemicis

widening one of the nation’s sharpest inequities,

the social hierarchy determined by India’s ancient

caste system.

The founders of postcolonial India attempted to

do away with caste discrimination, enshrining affir-

mative action into the constitution. India’s so-called

backward classes—a group that includes the lower

castes as well as tribal peoples—are the beneficiaries

of a quota system that allots them seats at universi-

ties, in government offices, and in Parliament. Yet

the ancient code of social stratification continues

todefinehowmanyearntheirlivingandwhom

theymarry.

Nearlya thirdofDalits,membersofthelow-

estcastewhonownumbermorethan 200 million,

earnlessthan$2a day,andoftenlackaccessto

runningwateroreducation.“Ihavenoland,so

hadleftmyvillagesome 12 yearsagoinsearchof

workandtoescapethissystemwhereI amcon-

sidereduntouchable,”Banskarsays.“Ihavecome

backtothesamesituationthatI left,infactit has

onlybecomeworse.”

Theheadman ofBanskar’svillagecouldn’t

bereachedforcomment.ChandrasenSingh,an

officialattheTikamgarhdistrictoffice,which

administersBanskar’svillage,saystheregion’s

jobprogramis activeandhehasn’treceivedany

complaintsaboutcastediscrimination.“Allthese

allegationshavenosubstance,”hesays.Somepeo-

plehaverefusedworkbecausewagesunderthe

government’sjobprogramarelowerthanwhat

of success that it is right now, but I believe it’s a

confluence of events that’s leading people in our

direction,” he says. “There’s a sense of urgency that

I need to get to safety and space while I take advan-

tage of this situation with the mortgage rates.”

As a firefighter and former Marine, Jason

Alonzo, 34, has learned to sleep practically any-

where. So camping overnight on a lawn chair in

the heat outside ShadeTree’s sales office wasn’t

all that bad, he said. He couldn’t take a chance—

his wife, Rebecca, was nine months pregnant with

their first child, and they need space. A month ago

they missed out on the lot they wanted at the same

DeterminedatBirth

Castestillshapeseconomicprospectsin India,despitelawsthatprohibitdiscrimination

Caste

Population

share*

Average per

capita income

(in rupees)

Females

with some

education

Male workers

defined as

professionals

Brahmin 0 4.9% 35,303 84.6% 43.8%

Other upper castes 14.9 36,060 80.6 34.8

Dalit 21.8 19,032 49.4 18.1

Other “backward” castes 42.8 21,546 59.1 19.0

DATA: NITIN KUMAR BHARTI, PARIS SCHOOL OF ECONOMICS (2018 PAPER “WEALTH INEQUALITY, CLASS AND CASTE IN INDIA, 1951-2012”)*BALANCE OF THE POPULATION INCLUDES MUSLIMS, CHRISTIANS, AND OTHER MINORITY GROUPS. DATA IS FOR 2011;^

● Millions escaped caste discrimination.

Covid-19 brought it back

432-lot master-planned subdivision near the town

of Ontario, because they arrived too late.

This time, Alonzo was seventh in line. The cou-

ple secured a five-bedroom house for $680,000,

which they’ll finance with a zero-down Veterans

Affairs mortgage. “I know things will never go back

to normal after the pandemic,” Alonzo said. “But I

feel safer knowing I have room now to take in my

extended family if things get bad.” �Prashant Gopal

and John Gittelsohn