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Book Reviews, South Asia and the Himalayas
Volume 88 – No. 2

AN INDIAN SOCIAL DEMOCRACY: Integrating Markets, Democracy and Social Justice | Edited by Sunil Khilnani, Manmohan Malhoutra

Box edition. New Delhi: Academic Foundation, 2013. 2 vols. (Figures, tables, B&W photos.) Rs.1995, cloth. ISBN 978-81-7188-994-5.


These two volumes are the outcomes of the tenth conference organized by the Indira Gandhi Memorial Trust, held in Delhi in November 2010. The conference brought together an extraordinary group of intellectuals, policy makers, activists, and business people—a real galaxy of serious thinkers, rather than of stars—from within India, and from overseas, presided over by Mrs Sonia Gandhi, to discuss the challenges and the prospects of an Indian social democracy. As the principal architect of the conference, Sunil Khilnani, puts it in his short introduction, the realization of sustainable growth in India, and in such a way as to ensure that the majority of the people can benefit from it, requires “the renewal of our social contract … (one) … that integrates and renovates India’s foundational commitments to democracy and social justice with recognition of the necessity of open markets for economic growth.” As he goes on to say, “Such a social contract is best described in social democratic terms …” (I:15). He, and others, are to be congratulated for their courage in using this language, for the idea of “social democracy” has often been regarded negatively in India, even though it seems to many of us that it is what the Nehruvian state aimed at achieving.

The volumes include 16 substantial papers, of which nine are by major Indian scholars: Sunil Khilnani, Pratap Bhanu Mehta, Vijay Kelkar, Kaushik Basu, Nitin Desai, Pranab Bardhan, Niraja Gopal Jayal, Sudipta Kaviraj and Yogendra Yadav. Two are by outside scholars, Michael Walton and Steven Wilkinson, who have written important works on India. Four other papers bring in comparative experience from Europe, China and the United States, and a global perspective (this from Pascal Lamy, then director-general of the WTO); while Pierre Rosanvallon of the College de France contributes an historical perspective on democratic society which makes the useful distinction between “relational” and “arithmetic” understandings of equality and presents a strong case for striving to establish a society of equality rather than only seeking to reduce economic inequalities. These papers, supplemented by the text of a memorial lecture given on the occasion by Joseph Stiglitz, on “A Social Democratic Agenda for a More Dynamic Indian Economy,” constitute the core of the two volumes. They also include transcripts of the presentations made by the paper writers and of the discussions that took place and which involved a wider group of comparably distinguished individuals.

As might be expected, the books are a bit of a curate’s egg, though for this reader at least, there is more good than bad in the various parts. The transcripts do include valuable points in addition to the arguments of the papers, though they take some digging out. Khilnani sums up broad conclusions as being, first, that “a sustainable social democracy for India must be based less on directly redistributive policies” than on building people’s capacities for participating in economic growth. As others have pointed out, too, for all the remarkable achievements of the Congress-led UPA governments between 2004 and 2014 in establishing a new rights-based welfare architecture for India, there was an awful failure to improve public education and health services. The second broad conclusion was that India must aim to replace the current
“cats-cradle of anti-poverty schemes,” most of them supposedly aimed at particular groups, with “a more simplified set of universal schemes, delivered by more efficient and trustworthy mechanisms” (so easy to say, so hard to achieve). And third, “the state must be wary of assuming large-scale fiscal responsibilities, which in future it may be unable to fulfill.” More generally, what is envisaged is not the kind of welfare state established in the West in the postwar period, but rather a polity based on principles of mutuality “between state, citizen and enterprise” (I:17).

It is impossible in a short review to do justice to the richness of the core papers. For me the outstanding ones are those by Pratap Mehta, Pranab Bardhan and (especially) Michael Walton, though I also believe that the paper by Vijay Kelkar and Ajay Shah on finance and economic policy is particularly worthy of attention, while Sudipta Kaviraj’s on “Indian Social Democracy and Questions of Culture” brings together ideas of his from writings over many years in an illuminating way. The core of the argument is summed up in his words: “Deep inequalities of culture, rooted in different levels of education, differential access on the basis of language, prevent our democracy from developing a real deliberative culture” (II:245).

Mehta’s paper is especially significant, I think, for its discussion of how and why social justice has come to be seen in India so much in terms of caste, and of what the implications of this are. He elaborates upon arguments that both he and Niraja Gopal Jayal have developed elsewhere about how the pursuit of affirmative action for particular social groups has led to a situation in which there is competition for power in order to secure benefits from the state for a particular set of people rather than in order to bring about transformations in society as a whole. Bardhan supplies a trenchant critique of social protection programs in India and advocates—in the spirit of encouraging serious rethinking—the possibilities of the payment by the state of a Universal Basic Income (in place of the “cats-cradle” of programs referred to above).

Walton offers, in short compass, a comprehensive review of arguments about why it does make sense to consider a social democratic resolution for India, what this might require, and its feasibility. The argument is conducted through comparisons with experiences elsewhere, both in Latin America and in Sweden, in particular, and the paper includes some detailed discussion of policy design for equity and growth. Walton’s conclusions about the feasibility of social democracy in India are not very optimistic. In the light of the victory of Narendra Modi in the Indian general elections that were completed shortly before I began this review, Modi’s evident commitment to big corporate capital (in spite of his tearful statements in parliament about serving the poor), and the evidence marshalled by Walton amongst others, of the extent of crony capitalism in India, one wonders whether there is much prospect, for now and the middle term at least, that Indian capital can possibly be part of a social democratic settlement. Walton concludes: “Sound social democratic designs are almost certainly in Indian capitalism’s long-term interest but this would involve a form of long-sightedness and collective action that is not apparent now” (II:68).

These books deserve close attention, offering as they do an alternative vision for India than the one that I suspect will be pursued by the new government.


John Harriss
Simon Fraser University, Vancouver, Canada

pp. 337-339

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