Union Budget 2017

CURATED ANALYSIS BY CPR FACULTY
BUDGET ECONOMY

As Budget 2017 was announced by the Union government on 1 February, find below a curated analysis by CPR faculty.

Pratap Bhanu Mehta writes in The Indian Express that through this budget the government is trying to steady the ship after the demonetisation shock, explaining how it ‘is an exercise in forward-looking but cautious prudence’.

In an article in Hindustan Times, Rajiv Kumar writes that the budget is what the ‘doctor ordered for the economy’, as it addresses the critical tasks of ‘generating employment, promoting private investment, pushing up consumption, improving delivery of subsidies and public services’. He further writes in The Hindu on how the budget fulfills the three principle goals of reviving domestic investment; generating employment opportunities; and cleansing the economy of black money flows.

Yamini Aiyar writes in Livemint and in a Hindi article in Amar Ujala that the budget has maintained the status quo, as far as social sector schemes are concerned, and has been ‘remarkably silent’ on restructuring the ‘financing architecture for social policy post the 14th Finance Commission’. Avani Kapur reiterates this in another article in Deccan Herald, writing that despite riding high on expectations, Budget 2017 did not offer any major changes in majority of social sector schemes.

Kiran Bhatty writes in The Wire that the ‘attention deficit’ towards education remains unchanged in this year’s budget.

Sanjaya Baru and Rajiv Kumar also debate the budget on CNN News18 and Times Now (above) respectively.

Understanding Data Privacy

FULL LEARNING VIDEO
TECHNOLOGY

All information collected from our activities online is creating what we call our digital footprint, and contributes to our profiling.

We live in a digital, interconnected world. Almost all of us own a smartphone and are present on some social media platform. Most of us never actually read the lengthy terms of service for any of the platforms we are signed up on. Most websites today require us to share seemingly harmless bits of information about ourselves, in small parts, which are then kept on file. Over time, these small bits of information can be neatly combined into categories and comprehensive sets of information, called data. Most people do not feel the need to ‘protect’ their data, because the general perception is, what do we have to hide?

Whether it is through shopping online or using online maps to navigate our way, we are mostly comfortable sharing some of our personal data with online platforms, and with time, the number of these platforms have risen exponentially. This means that all aspects of our lives – from what we watch, what we wear, who we speak to, what we buy, where we are, where we are going, how we are going there, and even our vitals such as blood pressure and heart rate are slowly becoming data points, being put together in categories to create profiles to specifically target us for advertisements.

Digital footprints are available to buyers and make us vulnerable.

A major problem with this profiling is that, as our data slowly gets collected and linked together, it is stored with different for-profit private companies that can sell these profiles to advertisers looking to influence us into making decisions they would like us to make. The more money a firm has to offer, the more data they can get their hands on, and the better they can craft strategies to sway our decisions. It is important to remember that a for-profit company is currently not required to give us rights. Also, they get to define what ethics mean for them. While, sometimes these platforms are required to disclose how they will store and use our data, and what data they will have on file. Often, this is actually disclosed – deep within the lengthy terms of service, which almost all of us never read.

The other pertinent drawback is the vulnerability of this data. With news of data leaks becoming very common, it is important to question how safe our data is. Sensitive information such as credit card details, passwords, location details etc. can be misused in case of a data breach, such as in May, 2016, it was reported that IRCTC (Indian Railways Catering and Tourism Corporation) website was hacked and personal data of 10 million customers was feared to be stolen. We have already witnessed the debate on Facebook leaks and its impact on the US elections.

We must participate in protecting our data.

We must ascertain how we are sharing our data online in order to protect it. By keeping a check on our privacy settings, only sharing relevant information and reading the terms of service, we can try to keep our data more safe. In an age where sharing personal information and connection globally through the Internet has become the norm, we must consciously be more vigilant to avoid online profiling. And importantly, participate in the ongoing legal debate around the data protection law in India as responsible citizens, a topic that was discussed at length in the second Metamorphoses panel discussion, here.

This learning video has been produced by Centre for Policy Research as part of the Metamorphoses – Talking Technology project, being executed in partnership with NITI Aayog and India International Centre.

Understanding Economic Processes in Small Towns

PART 4 OF A SERIES OF INTERPRETATIONS DRAWING ON A NEW BOOK ON SMALL TOWNS

 

In this interview, Eric Denis, Director of Research at Géographie-cités lab, CNRS, Paris, discusses some of the varied processes characterising small town economics.

What kind of economic processes do we see emerging in small towns?

We can summarise the multiple and complex economic processes playing out in small towns into four broad types. Locally, these four ideal-types are interlaced with each other:

  • Small towns are incorporated into metropolitan and large cities,
  • Small towns are entrepreneurial, resilient and innovative localities,
  • Small towns are ordinary market towns,
  • Small towns are large villages that expand and grow including a work-force moving away from the farm sector.

What are the main characteristics of small towns under the influence of metropolitan expansion?

There are a number of places that are growing due to the diffusion and re-localisation of economic activities in the peripheries of large cities – both of these activities are in a phase of rapid expansion.

Diffusion: A heterogeneous amalgam of investments in infrastructure, real estate, commercial ventures, industrial parks and educational institutions surround small towns, which, in turn, become central places, i.e., nodes and sites of agglomeration and not just for accessing markets and services. In this case, the agency of local actors is limited. The urban transformation depends of such localities depends on their attractiveness seen in terms of:

  • Accessibility and location (new roads, mass transportation, etc.),
  • Cost of land,
  • Local tolerance to pollution,
  • Availability of a labour force and its willingness to accept the offered working conditions, often characterised by low wages, daily contracts and a weak level of unionisation.

Often, the weakness of the local government in enforcement, with its limited capability, becomes an added advantage in terms of attractiveness.

Over time, however, the physical planning of metropolitan regions, megaprojects, Special Economic Zones (SEZs) and real estate promoters’ appetite for new land opportunities can be destabilising factors for existing flourishing clusters of activities that depend on intensive workforce, inherited knowledge and local capital (such as the Kartarpur furniture industry in the periphery of Ludhiana, discussed in chapter 18 by Rémi de Bercegol and Shankare Gowda).

For example, India, which recently opened its doors to Foreign Direct Investment, has limited availability of large tracts of lands within large cities. Here, much of the globalisation related investment is occurring in peri-urban areas. This is where megaprojects such as SEZs materialise. Hence, often banal and polluting activities are de-concentrated from the city centre to these peripheral small towns alongside industrial development parks.

Re-localisation: Daily commuters constitute the second component of vibrant small towns around large cities. Their circular migration (i.e., not a permanent movement to the city but periodically going back and forth from a place of residence, which can be for short periods of time, or even daily commuting) towards jobs within the city transforms the small towns bringing in new households, mostly young people, who cannot find affordable housing in the core city. They stimulate a diversification of local economies and alter the local political equilibrium. The youth of small towns, notably those who have access to technical colleges, are also more engaged in commuting. This daily circulation tends to adjust itself as major firms relocate their factories and offices to peripheral parks, thus ensuring that circular migration comes full circle as people from the core city start commuting to the periphery.

What are the conditions of emergence, expansion and adaptation to change of entrepreneurial and innovative towns?

Outside the direct influence of metro cities, there are many vibrant small towns. This is due to a strong and often fast growing network of entrepreneurs and skilled workers who contribute to the development of industrial clusters. They are able to expand their market, adapt to change, and innovate.

Small and medium towns prove to be interesting locations to set up and develop productive activities, particularly in response to the immense demand constituted by the vast majority of Indian families that do not belong to the middle and upper urban class. In these locations, entrepreneurs innovate to create low cost products that respond to the specificities of the non-metropolitan environment with solid and rustic equipment that is easy to operate and repair using local skills. It is an environment of jugaad, by which we mean doing more with less. Such innovative products, notably vehicles adapted to bad roads and difficult weathers, are not just limited to the Indian customer base as some small companies even manage to export to other emerging low cost markets such as Africa (see Chapter 19 by Yann Philippe Tastevin for rig drilling trucks in South India).

Apart from industrial activities, these towns also provide locations for the establishment of technical colleges, which recruit beyond their local geography. Often, some of these towns do not grow in an isolated manner but belong to a group of small towns, co-specialising in a sector. This is also the case for more traditional activities, such as textile or leather industries, that are similarly integrating into the global value chain and up-scaling.

Besides the vibrant small towns, what constitutes the majority of small towns where most of the non-metropolitan urban citizens live?

These are of two broad types, as indicated earlier.

First, ordinary mandi or market towns.  These cater to the needs of the rural areas in their hinterland constitute a large proportion of small towns. Many of these towns have historically been market towns or administrative centres. Depending on their administrative functions (whether they are home to a block office or a police station, etc.), and the dynamism of local agriculture (such as the nature of production and volume of cash crops), they can be more or less dynamic.

Second, emergent census towns. With a decline in farm employment, people have to generate incomes with access to minimal resources. This is how mandi towns as well as large villages, become more diverse.  More of the labour force opens petty shops, becomes daily workers in the construction sector or at brick kilns – either locally or in other towns through seasonal migrations. In turn, their remittances stimulate the morphing of their place of origin.

This morphing, which occurs in villages gives rise to growth in the number of census towns, as the workforce shifts away from non-farm work. In this case, the local economy tends to move away from agricultural activities as in the settlements above. However, here, there is no previous history of urban-like activity such as administration or regional markets. As such, the emergence of these census towns is not supported by the presence of a local elite related to the presence of a market, educational or administrative functions, but markets do emerge.

These emerging urban areas, smaller than the towns referred to above, consolidate and diversify because there is a need for their population to create new activities and access resources through self-employment and mobility. These settlements, therefore, also often serve as local transport hubs assisted by improved rural roads and a growing access to vehicle finance from formal banks.

Is this typology airtight or do some small towns straddle these different ideal-types?

None of the types of small towns described above exists in a pure configuration. Each one is the product of multiple influences carried by an increasingly diverse population, which is often well connected with distant places.

The multiplication of small towns and the urban transformation of villages constitute the material expression of the current socio-economic transition in India that is characterised by important reduction of jobs in the farm sector and poor creation of employment in the industrial sector, associated with a limited level of residential migration towards large cities. Many of these emerging small urban centres are places where people struggle daily to access resources but prefer to stay in a known environment where local values of solidarity support them.

The other pieces in the series can be accessed below:

Understanding homelessness in Delhi through the voice of the homeless

WORKING PAPER FROM CPR’S NEW PROJECT UNDERSTANDING METROPOLITAN HOMELESSNESS BY ASHWIN PARULKAR
URBAN ECONOMY RIGHTS

This working paper from CPR’s and TISS’s (Tata Institute of Social Sciences) Understanding Metropolitan Homelessness project tells stories of six migrant homeless men from Uttar Pradesh and Nagaland who live, for various durations, in shelters along the western bank of the Yamuna river in North Delhi, locally referred to as ‘Yamuna Pushta’. Through tracing their journeys from villages and towns to Delhi’s streets, the paper explores how these men became homeless and how they survive homelessness in Delhi.

This project, which is funded by ICSSR (Indian Council of Social Science Research) and is being conducted by CPR and TISS, is led by Partha Mukhopadhyay and Ashwin Parulkar at CPR, and Tarique Mohammed at TISS. A key objective of the project in general, and this paper in particular, is to better understand the structural causes of homelessness (e.g. poverty, unemployment) and how these are interlinked – through capturing the lived experiences of the homeless in their voice. This research aims to inform successful policy and implementation responses to address the current ineffectiveness of outreach efforts to homeless people in Delhi, despite interventions by the Supreme Court and support schemes designed by the government.

The six stories in the paper uncover conditions, and combinations, of extreme poverty and physical abuse experienced by these men in their native places before they left home. It traces how they secure jobs, and survive, in daily wage, informal economies without housing, as well as access social services like shelter, health and drug de-addiction programs to endure the streets of Delhi.

According to a 2010 United Nations Development Programme (UNDP) survey, 87% of nearly 55,955 homeless adults worked jobs in the informal economy, entailing ‘the most rigorous activities which are essential for movement and building in the city.’ This paper describes in detail the varied experiences these six men have in such jobs that they find through contractors in informal labour ‘markets’ (mandis); as cooks and servers in small eateries (dhabas), and as wedding catering party workers.

Through their trajectories, Parulkar also explores differences between working homeless men who return home to support families and those who have no ties with their native places and live on the streets indefinitely. For a sense of how these men became homeless and the work conditions they experience while homeless, listen to audio samples of interviews (above) conducted during field research.

The full working paper can be accessed here.

Understanding India’s bureaucracy through the IAS officer

BLOGS BY T R RAGHUNANDAN OF THE ACCOUNTABILITY INITIATIVE
POLITICS BUREAUCRACY

Accountability Initiative at CPR deconstructs the Indian bureaucracy through the IAS (Indian Administrative Service) officer in a series of blogs by T R Raghunandan, a former bureaucrat himself, (referred to as Raghu here on) summarised below:

In the blog Uneasy Lies the Head that Wears the Additional Crown, Raghu breaks down the hierarchy of the Indian bureaucracy, explaining the various designations at different levels, and what these mean in terms of the power wielded.

In the next blog, taking off from the introductory one, Raghu details the Bureaucratic Review Process, unpacking the elaborate appraisal system, which is designed to ensure that the best talent reaches the top.

The third blog, How Commonplace is ‘Outstanding’?, explains how the gradation of officers during the review process is carried out; the hurdles in it; and the common use of ‘outstanding’ for 90 percent of the officers, reflective of the bureaucracy’s avoidance of confrontation in its internal dealings.

In the following two blogs, A Digression into Ethical Dilemmas and Ambition, Ethical Dilemmas and the Bureaucracy, Raghu shares his views on the ethical factors, which are likely to render ineffective a peer based confidential appraisal system–part of a new set of changes introduced.

In the last two blogs on this topic, The Loneliness Of The Ethical and How Honest Is Honest?, Raghu shares examples of the ‘loneliness of those who take an ethical stand, in the face of large numbers of those who do not’, and explains why a ‘shared understanding of what integrity is’, and a ‘culture of acceptance of honest criticism up the hierarchy’ (both currently lacking) are pre-requisites for a system of 360 degree appraisal to work as intended.

Understanding India’s Energy Transition in Global Context

FULL VIDEO OF PANEL DISCUSSION AS PART OF CPR DIALOGUES

 

Watch the full video of the panel discussion on ‘Understanding India’s Energy Transition in Global Context’, organised as part of CPR Dialogues, featuring Michael Grubb, Navroz K Dubash, Radhika Khosla, Ashok Sreenivas, chaired by Ajay Mathur.

India faces three substantial challenges in the coming decades with enormous implications for its future energy demand. First, India has yet to provide clean cooking energy to 800 million people, and electricity access to 200 million people; failure to achieve this will dramatically reduce the human development possibilities for vast numbers of Indians. Second, India has to create jobs at pace with our shifting demography, which cannot happen without more and better power – electricity demand is likely to at least double in the next fifteen years at a time when clean energy is rising up the national and global political agenda. Third, the quality and form of India’s urban transition has enormous implications for energy needs.  Managing these simultaneous pressures poses a severe challenge because India has to transform to the energy sector of the 21st century even as we grapple with 20th century problems of waste, theft and unreliability.

Moreover, India’s energy transition is taking place within a larger global energy context, which will shape available supply options. Globally, the steep fall in price of renewable energy technologies has sparked a conversation about how, not when, economies will transition to a predominantly renewable energy future. However, the transition costs and challenges are potentially substantial and hotly disputed. Moreover, global oil and gas economics and politics have been cast into uncertain territory with the development of shale oil and gas technologies. And not least, the imperative of addressing climate change in the face of ever more dire warnings by the Intergovernmental Panel on Climate Change hangs like a shadow over global energy futures, and in particular puts pressure on an expansion of coal-based energy.

Historically, India has viewed pressures to mitigate climate change, in particular, as a threat to development. And indeed, India’s energy needs remain substantial, and any pressures to absolutely limit energy use or increase the costs of energy will have negative social and economic effects. At the same time, India is grappling with many other challenges that could also be solved by judicious shifts toward energy efficiency and cleaner energy: energy security due to import dependence in oil could be mitigated by renewable powered electric cars; congested cities could be cleared by energy-saving public transport; and air pollution could be mitigated through energy efficiency and renewable energy. The question before India, therefore, is whether India can productively leverage global energy trends through a judicious mix of demand and supply approaches even while meeting its own energy needs? Or do these trends pose a challenge to India as the country expands energy use in service of development?
From one perspective, rapid global change provides an opportunity: India has yet to lock into technologies and institutional paths that were designed for coal, oil and centralized power, and can build an energy and electricity system better suited for the 21st century. From the other, negotiating a complex technology and institutional transition, while dealing with the overhang of 20th century energy problems of low access and weak and inefficient systems, seems only to be a challenge.

This panel explored to what extent India’s energy transition, in the context of a global energy transition, provides opportunities versus throws up challenges, and what India can do to effectively negotiate this transition.

Ajay Mathur is Director General, The Energy and Resources Institute (TERI).

Michael Grubb is Professor of Energy & Climate Change, Bartlett School Environment, Energy & Resources, Faculty of the Built Environment, University College London.

Navroz K Dubash is a Professor at CPR.

Radhika Khosla is Research Director, Oxford India Centre for Sustainable Development, University of Oxford and Visiting Fellow, CPR.

Ashok Sreenivas is Senior Fellow at Prayas (Energy Group).

The question and answer session that followed can be accessed here.

Key takeaways about the Dialogues by Michael Grubb can be accessed here.

Watch all other sessions of the Dialogues below:

Understanding Informal Models of Septic Tank Emptying Services: Case Studies from Four Cities in India

FULL VIDEO OF CORP SEMINAR

 

Watch the full video (above) of the recent CORP seminar discussing the private septic tank emptying sector in India through case studies, in-depth ethnographic work and projections of business models.

Tarun Sharma discusses the market for private septic tank emptying services in the three cities of Dehradun, Jaipur and Bhubaneshwar, while Marie-Helene Zerah and Sweta Xess discuss the findings of a deep-dive ethnographic study of these operators in the peri-urban settlement of Aya Nagar (near the Delhi-Gurgaon boder). Finally, Anindita Mukherjee and Prashant Arya present the results of a projection exercise showing the progressive impact that regularisation and formalisation would have on the operations of these enterprises.

The presentation and the subsequent discussion dwelt on the need, and potential consequences of, regularising an informal sector with broad public health implications, the role of manual scavenging in such enterprises and the hidden costs of labor, and the need to understand the fundamental role that caste and community identities play in this particular kind of work.

Marie – Hélène Zérah is a Research Fellow at CESSMA (Centre d’études en sciences sociales sur les mondes africains, américains et asiatiques) / IRD (Institute of Research for Sustainable Development) deputed to the Centre for Policy Research.

Sweta Celine Xess is a Research Associate with the Centre for Policy Research.

Tarun Sharma is Director and Co-founder of Nagrika, a social enterprise focused on the issues of small and mid-sized cities.

Anindita Mukherjee is a Senior Researcher at the Centre for Policy Research working in the project, Scaling City Institutions for India (SCI-FI): Sanitation.

Prashant Arya is a Research Assistant with the Centre for Policy Research.

The question and answer session that followed the seminar can be accessed here.

Understanding Land Acquisition Disputes in India

CPR-LAND RIGHTS INITIATIVE REVIEWS SUPREME COURT CASES ON LAND ACQUISITION FROM 1950 TO 2016
RIGHTS LAND ACQUISITION

Context:

India faces serious challenges in creating development processes that generate economic growth while being socially inclusive, ecologically sustainable, politically feasible, and in accordance with the Rule of Law. Equitable and efficient acquisition of land by the state for economic development projects, including infrastructure and industry, lies at the heart of these challenges.

Simultaneously, securing constitutionally guaranteed land rights to the poorest and most vulnerable communities in India against the state and other dominant communities, has been considered crucial to their economic and social empowerment. Land is not only an important economic resource and source of livelihoods, it is also central to community identity, history and culture. Unsurprisingly then, throughout India, dispute over state acquisition of land that deprives people of their land rights spans various dimensions of economic, social, and political life.

How do we mitigate this conflict?

The CPR Land Rights Initiative report on ‘Land Acquisition in India: A Review of Supreme Court cases from 1950-2016’, offers some preliminary answers to this question. Not only is this report the first comprehensive country-wide study of land acquisition disputes since India’s independence, but also for the first time ever analyses these disputes along various metrics, such as i) public purpose, ii) procedure for acquisition, iii) compensation, iv) invocation of the urgency clause, v) pendency of claims, and vi) tracks trends with respect to distribution of disputes across geography and time, and central and state laws. The Report also analyses litigation under the newly enacted Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act) for the three year period, 2014 to 2016.

Key findings:

Reasons for inequity between state and land losers: The Report concludes that the political and social contestation over land acquisition stems from the inherently coercive nature of the land acquisition process, which creates a severe imbalance of power between the state and land losers. While much of this imbalance was created by the text of the Land Acquisition Act, 1894, a considerable part of it could also be attributed to executive non-compliance with the rule of law. The result is a situation of great inequity for the land losers.
Legal reform under the LARR Act should be implemented by government, not subverted to redress these inequities: The Report finds that specific provisions of the LARR Act are steps in the right direction to redress the imbalance of power that was built into the Land Acquisition Act, 1894 in so far as: i) they empower livelihood losers along with title-holders to bring claims for compensation and rehabilitation, ii) bring compensation requirements in accordance with existing reality, and iii) introduce requirements of consent and social impact assessment. The Report shows that litigation helps channelise political contestation of state action into legal as opposed to extra legal disputes. Therefore, by empowering hitherto disempowered land losers to bring claims under the LARR Act, the Act will help preempt extra-legal conflict. Since conflict inevitably stalls or derails legitimate development projects, it is in the interest of the government to comply with, and not subvert the LARR Act.
Legal reforms must be supplemented by administrative and bureaucratic reforms: The Report highlights that legal reform is a necessary but not a sufficient precondition for ensuring greater equity and efficiency within the land acquisition process. In the absence of administrative and bureaucratic reforms, the introduction of the LARR Act will not succeed in eliminating inequities and inefficiencies embedded within the implementation of existing land acquisition procedures. In fact, the increase in procedural requirements under the LARR Act implies an even greater need for securing executive compliance with the rule of law, in order to translate the equities intended by these additional procedures into reality for land losers.
Types of administrative reforms required: Such administrative reforms include building of state capacity to meaningfully comply with the increased procedural requirements stipulated by the LARR Act, and designing institutional structures that incentivise such compliance with the rule of law. This, in turn, requires a serious mind-set shift within the government toward accepting the reform enshrined in the LARR Act, and not subverting it as we have seen in both the LARR Ordinance, and the state amendments to the LARR Act, as also the rules adopted to implement the LARR Act in the states.
Watch (above) a detailed presentation of the findings from the report.

Understanding Land Conflict in India and Suggestions for Reform

AS PART OF ‘POLICY CHALLENGES – 2019-2024: THE BIG POLICY QUESTIONS FOR THE NEW GOVERNMENT AND POSSIBLE PATHWAYS’
CPR LAND ACQUISITION

By Namita Wahi

An estimated 7.7 million people in India are affected by conflict over 2.5 million hectares of land, threatening investments worth $ 200 billion.1 Land disputes clog all levels of courts in India, and account for the largest set of cases in terms of both absolute numbers and judicial pendency. About 25% of all cases decided by the Supreme Court involve land disputes, of which 30% concern disputes relating to land acquisition.2 Again, 66% of all civil cases in India are related to land/property disputes.3 The average pendency of a land acquisition dispute, from creation of the dispute to resolution by the Supreme Court, is 20 years. Since land is central to India’s developmental trajectory, finding a solution to land conflict is one of the foremost policy challenges for India.

Understanding Incidence and Pendency of Land Conflict in India

Legislative and administrative factors are responsible for the high incidence of legal and extralegal conflicts over land, and judicial factors are behind the pendency of land disputes. Competing historical and current policy narratives of property rights over land, have resulted in the coexistence of numerous, conflicting laws leading to legal disputes over land. This is the legislative factor. This problem is compounded by administrative failure to comply with the rule of law. This is the administrative factor. The pendency of conflict, in turn, is a result of legal and evidentiary barriers in bringing land disputes to court, largely due to administrative and judicial incapacity; this prevents expeditious resolution of land disputes. This is the judicial factor.

Conflicting narratives, policies and land laws create land disputes

There are two conflicting narratives about ownership and management of land in India. The first narrative – inherited from the British colonial state5 – views common land, or land that is not privately owned, as merely a commodity, no different from labour and capital, with the state as the ultimate owner.6 This claim to ultimate ownership gives the state the power to redistribute land at will, as largesse to selected beneficiaries.7 Such state acquisition of land has historically been the source of considerable dispute. According to estimates by CPR’s Land Rights Initiative (LRI), these disputes constitute 30% of all land litigation in the Supreme Court over the past 70 years. LRI’s comprehensive study of land acquisition litigation before the Supreme Court over a 66-year period, from 1950 to 2016, reveals that all litigation is with respect to privately held land. In contrast, data from the Land Conflict Watch project reveals that the vast majority of current, on-ground, extralegal conflict over land is with respect to common lands.8 Thus, it is clear that in the face of state acquisition of land, when people have legally recognized land rights, they go to court. Where their rights are insufficiently recognized by law, they protest on the ground.

The second narrative – articulated by the ‘people’, including farmers, both landowners and tenants; and other traditional communities, such as cattle grazers, forest dwellers, tribals and fisherfolk – views land as an economic, social and cultural resource over which multiple groups exercise property rights. Usually, after intense on-ground contestation, the property rights of certain groups like Scheduled Tribes (STs)and tenants have been protected by the Constitution9 and statute,10 while in case of other groups like fisherfolk,11 their rights are protected by custom and, often, executive action.

As a consequence of these two historically competing policy narratives, the constitutional, legislative and administrative framework governing land is as fragmented as the land holdings in India.12 Enacted at different points of time, land laws clash with each other, because they seek to articulate in law these two competing narratives. For instance, the provisions of the Forest Rights Act, 2006, are in conflict with those of the Indian Forest Act, 1927, and the Forest Conservation Act, 1980, and are also threatened by proposed amendments to the Indian Forest Act.13 Legal conflicts also arise when laws are enacted or amended at different times to appease different stakeholders. For instance, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act has, in the five years since it came into force, been amended by seven state legislatures.14 This will likely create more legal disputes with respect to land acquisition, because the original RFCTLARR Act provisions had been included with a view to addressing growing conflict over land acquisition.15 Moreover, in many states, we find laws that provide for eviction of unauthorized occupants over public lands coexisting with laws that provide for regularization of unauthorized occupation, thereby creating potential for dispute/conflict at the level of law itself.16

Finally, the legislative landscape is complicated by the fact that many subjects pertaining to ‘land’ are in the ‘state’ and ‘concurrent’ lists of the Constitution, leading to a multiplicity of original and active land laws.17 Yet, there is no official comprehensive database of all land laws in India. A first of its kind, ongoing LRI study estimates that India has over a thousand original and active central and state land laws.18

The problem of ‘multiple laws’ is exacerbated by the fact that these laws are administered by numerous government ministries at the central level, and departments at the state level. These include, for instance, the ministries of Law and Justice, Rural Development, Mining, Industries, Infrastructure, Urban Development, Tribal Affairs, Home Affairs and Defence.

Administrative non-compliance with law also creates and prolongs land disputes

Where laws are clear, disputes and conflicts arise because of administrative non-compliance with the rule of law due to both unwillingness and incapacity. The LRI study of all Supreme Court cases on land acquisition during 1950-2016 shows that 95% of the disputes arose because of administrative non-compliance with the legal procedure for acquisition of land, including the process of computation of market value compensation for land acquired.19 Around 34% of the disputes involved irregularities in completion of the procedure for acquisition. Almost half of such cases concerned with procedural irregularities involved administrative unwillingness to comply with the rule of law. The remaining half of the cases involved administrative incapacity to comply with the rule of law, in part because of governmental failure to regularly update administrative manuals based on changes in the law. Moreover, the government was more likely to lose than win these land disputes before the Supreme Court.20

Additionally, since colonial times, land in India has been broadly administered by the revenue and forest departments. But there have also always existed disputes between both departments as to which land belongs to which department. This in turn creates and prolongs land disputes.

Finally, legal disputes over land are also created by evidentiary barriers for establishing rights over land in the absence of documentary proof21 because of outdated/no land surveys22 and inaccurate/outdated land records23 in most states. The Department of Land Resources has sought to resolve the problem of inaccurate land records through the ‘Digitisation of Land Records Modernisation Programme’. However, unless the government makes a serious attempt to update land records on the ground to reflect the property rights of all landowners, digitizing them would not eliminate the problem of inaccurate land records.

Judicial reasons cause pendency of land disputes

Once a land dispute goes to court, serious judicial incapacity leads to pendency of disputes. First, a major cause for pendency of all disputes is India’s low judge-to-people ratio.24 Land cases form more than half of all civil cases and constitute over a quarter of cases before the Supreme Court; they also have the longest pendency compared to other cases. Hence low judge-to-people ratio particularly prolongs resolution of land disputes. Second, the judiciary, particularly at its lowest levels, lacks the financial, technical and infrastuctural capacity necessary to resolve disputes quickly.25 Finally, poor enforcement of court decisions by the government, and limited judicial capacity to follow up on such enforcement, especially when such decisions go against the government, also lead to prolonging of land disputes.

Policy Recommendations for Reducing Incidence and Pendency of Land Disputes

Eliminate legal conflicts. No government has ever attempted an exercise to rationalize existing land laws. But this is the need of the hour. The Law Ministry and Law Commission are best positioned to conduct or commission such an exercise. This would involve, first, the creation of an exhaustive database of all land laws in India. Once such a database of laws is created, the Law Ministry and Law Commission must identify, and Parliament must repeal, laws that deny rights of certain groups of people, particularly women,26 and eliminate genuine conflicts between laws.

Improve administrative willingness and capacity to implement the rule of law: The government must take steps to ensure greater administrative capacity and willingness to implement the rule of law. In addition, we need greater coordination between government departments dealing with land, transparency of land administration, and better access to land data. This can be achieved by undertaking the following measures.

The Department of Land Resources, currently under the Ministry of Rural Development, is the nodal agency for coordination of land policy across states. But land is not merely a rural concern. As India becomes increasingly urbanized, the government needs to have a more comprehensive imagination of land requirements for rural and urban populations. The creation of a separate Ministry of Land to serve as the nodal agency for coordinating land policy across different types of land is critical.
There needs to be a coordinated effort between the Ministry of Law and Justice, Department of Land Records, Ministry of Environment and Forest, Ministry of Tribal Affairs, state boards of revenue, and state forest departments to resolve conflicting land laws and streamline land administration.
All government departments dealing with land, and particularly those involved in land acquisition, must update administrative manuals in accordance with changes in legislation and judicial precedent.
Through dedicated interdepartmental meetings and other coordination, government must resolve land boundary disputes between the revenue and forest departments.
The government must devote financial and technical resources to conduct land surveys and update paper records to reflect property rights of all the people, as opposed to digitization of existing records that are substantially inaccurate.
The government must ensure better skills training so that officials dealing with land have both the knowledge and the capacity to implement the rule of law. Institutional mechanisms should be designed to incentivize compliance with, not defiance of, the rule of law.
Given the low success rate of government appeals, the government must carefully evaluate the likelihood of success of an appeal before pursuing it. Government officials must be incentivized to not appeal cases that have little likelihood of success following such an evaluation. This would go a long way in reducing pendency of land disputes.
The government must wholly commit to transparent land administration and comply with its obligations under the Right to Information Act, 2005, to make digitally accessible all land laws, executive notifications, rules, circulars, etc. pertaining to land administration. In addition, the government must open up to public scrutiny departmental data on compliance with land laws.
In addition to legislative and administrative reforms, judicial reforms can go a long way towards reducing the pendency of land litigation in India. The first step in this direction would be the implementation of key recommendations of the Law Commission.27 These include:

Changing the base for determining sanctioned posts for judges from ‘Judge: Population Ratio’ to ‘Rate of Disposal Method
Filling up all existing vacancies
Increasing the retirement age of subordinate judges to 62; and those of High Court and Supreme Court judges to 65 and 68 years respectively.
Greater financial allocations to the lower and higher judiciary, to enable infrastructure, technical and skills upgradation
Some states like Bihar have created separate land tribunals for expeditious resolution of land revenue cases. This model should be studied, and if found effective, should be replicated in other states.

Conclusion

Land conflict in India, both legal and extralegal, has existed from colonial times because of the imposition by the British state of the notion that all land not privately held belongs to the ‘state’. This concept has been continuously resisted by the ‘people’ who were disempowered by the colonial state’s deprivation of their legal property rights under precolonial administration. Over time, competing ‘state’ and ‘people’ narratives over land have led to conflicting policy and legal interventions. This has, in turn, led to legal disputes over land. Even when laws are clear, administrative failure to comply with the rule of law, due to unwillingness and incapacity, contributes to the incidence and pendency of land disputes. Serious judicial incapacity in turn prolongs pendency of land disputes.

Due to the increasing population pressure on land, and the corresponding demand for land to fuel the development engine, the scale and scope of land conflict today has assumed gigantic proportions, stalling development projects and threatening livelihoods and investments. Equitable and efficient intergenerational management of land is necessary not just for India’s economic development, but also for its political and social stability. Therefore, working towards resolving land conflict, in light of the above policy recommendations, is an imperative agenda for the new government.

Other pieces as part of CPR’s policy document, ‘Policy Challenges – 2019-2024’ can be accessed below:

The Future is Federal: Why Indian Foreign Policy Needs to Leverage its Border States by Nimmi Kurian
Rethinking India’s Approach to International and Domestic Climate Policy by Navroz K Dubash and Lavanya Rajamani
India’s Foreign Policy in an Uncertain World by Shyam Saran
Need for a Comprehensive National Security Strategy by Shyam Saran
A Clarion Call for Just Jobs: Addressing the Nation’s Employment Crisis by Sabina Dewan
Time for Disruptive Foreign and National Security Policies by Bharat Karnad
Multiply Urban ‘Growth Engines’, Encourage Migration to Reboot Economy by Mukta Naik
Schooling is not Learning by Yamini Aiyar
Clearing Our Air of Pollution: A Road Map for the Next Five Years by Santosh Harish, Shibani Ghosh and Navroz K Dubash
Protecting Water while Providing Water to All: Need for Enabling Legislations by Philippe Cullet
Interstate River Water Governance: Shift focus from conflict resolution to enabling cooperation by Srinivas Chokkakula
Managing India-China Relations in a Changing Neighbourhood by Zorawar Daulet Singh
Beyond Poles and Wires: How to Keep the Electrons Flowing? by Ashwini K Swain and Navroz K Dubash
Regulatory Reforms to Address Environmental Non-Compliance by Manju Menon and Kanchi Kohli
The Numbers Game: Suggestions for Improving School Education Data by Kiran Bhatty
Safe and Dignified Sanitation Work: India’s Foremost Sanitation Challenge by Arkaja Singh and Shubhagato Dasgupta
Safeguarding the Fragile Ecology of the Himalayas by Shyam Saran
Female Labour Force Participation: Asking Better Questions by Neelanjan Sircar
Towards ‘Cooperative’ Social Policy Financing in India by Avani Kapur
1 Land Conflict Watch, https://www.landconflictwatch.org/.
2 This is based on preliminary findings from a CPR Land Rights Initiative study, and is also consistent with findings from a comprehensive quantitative study of the Supreme Court’s caseload between 1993 and 2011. See Nick Robinson, ‘A Quantitative Analysis of the Indian Supreme Court’s Workload’, Journal of Empirical Legal Studies,10(3) (2003): 570-601.
3 Daksh, ‘Access to Justice Survey, 2016’, http://dakshindia.org/wp-content/uploads/2016/05/Daksh-access-to-justice….
4 Namita Wahi et al., ‘Land Acquisition in India: A Review of Supreme Court Cases from 1950 to 2016’ (New Delhi: CPR, 2017).
5 Articles 294 and 295 of the Indian Constitution stipulate that the Indian state succeeds to all property, claims and assets of the British state.
6 B.H. Baden Powell, The Land Systems of British India (Oxford University Press: 1892); B.H. Baden Powell, A Manual of Jurisprudence for Forest Officers Being a Treatise on Forest Laws (Calcutta, 1882).
7 An LRI study estimates that there are 102 laws of land acquisition alone, including state amendments to the Land Acquisition Act, 1894. Supra note 4.
8 ‘Land Conflicts in India: An Interim Analysis’, https://rightsandresources.org/en/publication/land-conflicts-india-inter….
9 Article 244(1) and Article 244(2), read with the Fifth and Sixth Schedules respectively, create special protections for land rights of Scheduled Tribes in geographically demarcated areas, known as Scheduled Areas.
10 Starting with the Bengal Tenancy Act, 1885, almost each agrarian state has laws protecting tenancy rights. Similarly, the Forest Rights Act, 2006, recognizes land rights of Scheduled Tribes and other forest dwelling communities.
11 A prolonged movement has sought the enactment of a Fishing Rights Act, along the lines of the Forest Rights Act.
12 86.21% of all land holdings in India are small and marginal holdings taken together (0.00-2.00 ha). See Census of India.
13 Nitin Sethi et al., ‘Modi government plans more draconian version of colonial-era Indian Forest Act’, The Wire, 21 March 2019, https://thewire.in/rights/modi-government-plans-more-draconian-version-o…
14 These include the states of Tamil Nadu, Gujarat, Rajasthan, Maharashtra, Telangana, Andhra Pradesh and Jharkhand. See Namita Wahi, ‘How central and state governments diluted the historic land legislation of 2013’, The Economic Times https://economictimes.indiatimes.com/news/politics-and-nation/how-centra….
15 Jairam Ramesh et al., Legislating for Justice: The Making of the 2013 Land Acquisition Law (New Delhi: Oxford University Press, 2015); Namita Wahi, ‘The Story of Jairam Rajya’ India Today, June 2015, https://www.indiatoday.in/magazine/books/story/20150622-jairam-ramesh-la….
16 Ongoing LRI study on ‘One Thousand Land Laws’.
17 Article 246 read with the Seventh Schedule of the Constitution of India.
18 CPR ‘Land Laws’ Database; see: https://www.cnbctv18.com/legal/hundreds-of-indian-land-laws-cause-confus….
19 Wahi et al., ‘Land Acquisition in India’.
20 Ibid. p. 28.
21 Sections 61-64 of the Indian Evidence Act, 1872, emphasize that documents must be proved by primary evidence, that is, presentation of the document itself. However, many people with legally recognized land rights do not have documentary proof for the same. This makes judicial resolution of land disputes extremely difficult.
22 Much of the northeastern part of India, including the state of Assam, has never been fully surveyed. The last full land survey for the state of Bihar happened in 1950s-1960s.
23 Former Minister for Rural Development notes that the state’s failure to fairly compensate those who lost land under the 1894 Act arose due to inaccurate land records, rampant undervaluation of sale deeds, and absence of land markets in many rural areas. See Ramesh et al., Legislating for Justice.
24 Two reports – the 245th Law Commission Report on ‘Arrears and Backlog: Creating Additional Judicial (Wo)man) power’ (2014), http://lawcommissionofindia.nic.in/reports/Report_No.245.pdf, and the 230th Law Commission Report on ‘Reforms in the Judiciary: Some Suggestions’, http://lawcommissionofindia.nic.in/reports/report230.pdf – highlight this as a major cause for disputes.
25 Ibid.
26 Bina Agarwal, ‘Gender and Legal Rights in Agricultural Land in India’, Economic and Political Weekly A39 30(12) (March 1995).
27 Supra note 24. (Q: Pl give direct source)
28 245th Law Commission Report, 29.

Understanding Land Conversion, Social Impacts and Legal Remedies in Asia

 

INTERNATIONAL DEVELOPMENT RESEARCH CENTRE STUDY ON LAND USE

 

Land transformation has been at the centre of economic growth of post-colonial, Asian nation-states. While their political reforms and economic policies have focused on land governance, the outcomes have resulted in promoting privatisation and speculative business interest in ecologically sensitive landscapes that are also under diverse forms of common use by resource-dependent communities. A three-year study undertaken to understand community-level responses to land use transformation in India, Indonesia and Myanmar shows that the current scale and approach of land–intensive development in these large democracies is facilitated by fast-paced, top down policy changes. These policies are ‘stacked’ (when multiple layers of current and revoked laws are simultaneously in use) rather than integrated and their implementation is the responsibility of various authorities and agencies that overlap.

Growing private investments in land that has remained within varying degrees of state control have changed the way land is managed. Land has become increasingly securitised and ‘out of bounds’ for small farmers and other land-users with or without recognised forms of ownership and use rights. Land conflicts are caused due to coercive acquisition processes or land grabs, unlawful operations of projects and long pending remedies to social and environmental impacts. In many instances, these conflicts begin even before the final decisions on projects are taken and persist for years.

Highly capitalised land use change brings powerful investors and corporations, governments and local communities in unequal and precarious arrangements of negotiation and confrontation. Citizens and communities affected by land use change, use varied strategies such as administrative complaints, protests, litigation, media campaigns and political advocacy, and engage in improving project design and implementation, increase compensations, restore community access to resources and get a review on the operations of harmful projects. These are done under conditions of political intransigence and criminalisation of those who speak up. While all three countries have recognised land conflicts and their impact on development plans and proposals, they are yet to give affected people a formal and effective role in land and natural resource governance.

The study reports on IndiaIndonesia and Myanmar and an overview of the study’s methodology and findings can be accessed here.

A series of blog posts over the next two months will highlight specific research findings and case studies.

This study was carried out by the CPR-Namati Environmental Justice Program, supported by a grant from the International Development Research Centre, Ottawa, Canada.