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Chapter 8 of 142 · The Freeman 1990 by Foundation for Economic Education

Communal Politics in India; R. Prasad

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During the euphoria of India's struggle for in dependence, many predicted that this anachro nistic division of society would disappear with the spread of literacy. But the communal virus con tinues to affect all-poor and rich, literate or oth erwise. In a recent speech, Prime Minister Rajiv Gandhi said that the people are still dividing themselves on the bases of religion, caste, and sub-caste, and that this is perhaps the most dan gerous trend in the country today. It is common to talk about how each caste is represented in the state and central cabinets. For example, one Indian commentator recently stat ed: "Choosing a high caste man [as a chief minis ter] would have been tantamount to setting the clock back in a state where the alignment of so cial classes and castes had definitely been in favor of the backward castes." Politicians and newspa pers routinely engage in such calculations.

In the name of socialism, the government conMr. Prasad, who immigrated from India in 1975, is a freelance writer in Atlanta, Georgia. centrates power in its own hands, controls access to production, and engages in arbitrary distribu tion of goods and services. In such an atmo sphere, to belong to a group with influence over politicians and bureaucrats means survival, progress, and prosperity. The caste system serves as an old solution to these new problems. In day-to-day life, communal influences are very strong. If you are a government official, for example, your superior,who may belong to anoth er caste or religion, can downgrade your evalua tion and thus your chances for promotion. You can be transferred to places you never knew existed. People belonging to a powerful caste can obtain jobs, promotions, and exclusivepermits and licens es. It is cheaper than to pay the huge bribes.

People belonging to other castes and religions feel threatened, huddle together, and wait for their chance at the wheel. Leaders of these groups negotiate with politicians for a slice of the power in return for votes. "We have decided to create a strong vote bank on our demands. Only those who support these will get our votes," says a religious leader. Even the judicial and police appointments aren't immune from communal considerations. With enough support from politicians, one can engage in criminal behavior with no fear of reprisal or punishment. With the backing of these criminals, politicians intimidate their opponents on a regular basis. Thus, one cannot dream of en tering public life without the constant support of an army of hooligans~ "I cannot trust police any more in this town," says a victim of recent communal clashes. People, out of desperation, take the law into their own 27 hands, and communal riots are as predictable as monsoon rains.

This artificial division of society does trouble some Indians. The judge who recently ruled in fa vor of "Tamas"-a television show attacking fun damentalists in both the Hindu and Muslim com munities-said, "the message is loud and clear, directed as it is against the sickness of communal ism ... the extremists stand opposed ... when realization dawns on both communities who ulti mately unite as brothers." Both Hindu and Mus lim extremists opposed the screening of this pro gram. For most people in socialist India, however, the lure of communalism is too powerful to resist. By belonging to a ruling caste, you get a promotion and your son gains admission to a good college. Soon, belonging to a particular religion or caste becomes an integral part of your self-image. You learn to distrust "others" as a part of this learned behavior that benefits you. Politicians know that if they ignore these pow erful forces, they are doomed. They go with the flow, and gain maximum advantage from caste and religious differences. The power they accu mulate-all in the name of socialism-helps them cater to various factions. The caste system thrives in this atmosphere of political patronage.

There is another reason why people distrust "others" and seek comfort among their caste members. The explanation can be found in Her nando de Soto's magnificent book, The Other Path, in which he describes the various networks of "cousins" and "uncles" operating in Peru's un derground economy. People in free market economies slowly learn to trust strangers. The reason is simple. You and your business partner have an enforceable con tract. The same goes for consumer and provider, landlord and tenant, stockholder and company, employer and employee, and so on. Respect for private property and enforceable contracts en able millions o( strangers to deal with each other in complex, large-scale production and distribu tion processes. In India, as in Peru, high tax rates and over whelming governmental regulation have driven a large part of the economy into the informal sec tor. Even the legal businesses have two sets of books.

People operating in such an illegal under ground economy don't have the luxury of en forceable contracts. They have to depend upon people they know and can relate to. In India, the caste system serves as a convenient vehicle for that kind of kinship. Communal politics in India is a new phe nomenon spawned by socialism. Deregulation, reduced tax rates, and transfer of productive pro cesses back to the people will melt away the foundations of the underground economy."All this coupled with decentralization will destroy the forces behind communalism, corruption, vio lence, and disorder. 0 IDEAS ON LIBERTY The Despotismof Faction T he despotism of faction is not less to be dreaded than the despotism of an individual. When the bulk of the community are engrossed by pri . vate concerns, the smallest parties need not despair of getting the upper hand in public affairs. At such times it is not rare to see on the great stage of the world, as we see in our theaters, a multitude represented by a few players, who alone speak in the name of an absent or inattentive crowd: they alone are in action, while all others are stationary; they regulate everything by their own caprice; they change the laws and tyrannize at will over the manners of the country; and then men wonder to see into how small a number of weak and worthless hands a great people may fall.

-ALEXIS DE TOCQUEVILLE 28 A Room with a NewView by Steve Lopez T hree years ago, architect Peter Fox is fresh out of college and catches a bus for his first day on the job. The bus pulls up to 20th and Chestnut, the door opens, and there's some guy camped out on the sidewalk like he owns the property. Next day, same thing. And the next day, and the next. "I had to step over him every morning," Fox says. Fox would continue on to work, where he sat against a window one flight above 20th Street. Sometimes he'd design a new swimmingpool for someone who was unhappy with their old swim ming pool. And when his work didn't seem to re flect reality,there was alwaysthe window. Three years later, the man is still out there; Pe ter Fox is still looking. They don't know each other. But Fox has found comfort and inspiration in just looking. And the man-oblivious to his starring role in the drama Fox sees through his window-is com fortable with his own invisibility.

The Freeman 1990

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