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Feeling Rich on an Empty Stomach: Agrarian Crisis and Rural Consumption Choices

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Middle India and Urban-Rural Development

Part of the book series: Exploring Urban Change in South Asia ((EUCS))

Abstract

What contribution can village level studies (VLS) make to our understanding of the relation between income and consumption? An array of contested productivist and anti-productivist theories of mass consumption are critically introduced and then applied to polarized, unequal and caste-stratified villages in the rural hinterland of Arni. Changes to cropping patterns, a new generation of labour-sparing high yielding varieties, and mechanization and labour displacement threaten the livelihoods of the mass of labouring households. Water table depletion and a new cost-price scissors have reduced returns to agriculture. Distress-induced migration to Arni and far beyond is the commonest response. Their remittances are exiguous. Quota sampling, focus groups and participatory rural appraisal were deployed in the three survey villages in Arni’s hinterland that were first studied in 1973 to reveal that despite incomes being low enough to threaten food security, positional or status goods such as televisions and mobile phones were preferred over food. The real costs of marriages were reported to be on the increase, as were those of (private) education. Pressured by fashion, by media coverage and by social imitation, households below the poverty line dug into savings, contracted debt or omitted meals to maintain the visible elements of a socially decent standard of living. Cash transfer policies assume poor people will spend their income on what outsiders consider basic necessities—food and wage goods. But that is not a feature of poor agrarian households in the hinterland of Arni.

The author is grateful to Jimi Richardson, Mads Lofvall, Jacqueline Nivet, Henk-Jan Brinkman, Elisabetta Basile and Barbara Harriss-White for their comments. This essay is written in a personal capacity and does not necessarily reflect the position of the United Nations World Food Programme.

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Notes

  1. 1.

    Thaler (1994), Thaler and Sunstein (2009). There has recently been much written contributing to the empirical evidence against the rational theory. See for example Frank (2008), Harford (2013), Levitt and Dubner (2009, 2011), Ariely (2008, 2010), and Gladwell (2002).

  2. 2.

    Simon (1955, 1957), Simon et al. (1992), Arrow (1994).

  3. 3.

    There is significant evidence that the upper classes in ancient societies (e.g. the Romans, Greeks, Etruscans, Egyptians) had consumption patterns that were beyond subsistence levels—by which we mean involving goods or services not directly related to the satisfaction of the basic needs, such as, pictures for display on walls, figurines and personal ornaments.

  4. 4.

    This term was coined after the Second World War and is used frequently by authors such as Galbraith, Marcuse, Packard and Baudrillard (Sassatelli 2004).

  5. 5.

    As late as 1901 the Oxford English Dictionary defined “fashion” as “the process of making” (Kawamura 2005). Brenninkmeyer (1963) defined fashion as it is currently understood—the common way of dressing in a given historical time—though fashion is also associated with eating habits, accommodation choices, ways of speaking, music, etc. In 1971, Simmel argued that “fashion is the imitation of a given example and satisfies the demand for social adaptation” (1971, p. 296).

  6. 6.

    See also essays by Roman and Arivukkarasi, Chaps. 7 and 8.

  7. 7.

    According to the Italian sociologist Di Nallo (1997), consumption is a way of communicating individual social belonging. Individuals consume as if it were a form of speaking in order to express their social characteristics.

  8. 8.

    See also Spencer (1967) and Fallers (1971) who argue similarly.

  9. 9.

    Evidence of advertisements go back as far as 4000 BC. In ancient Egypt, Rome, China, India and Arabia, advertisements on walls or rocks were used to promote events and commercial products (Testa 2007). Over the course of history, advertisement techniques have been constantly improved—particularly since the invention of printing in the fifteenth century.

  10. 10.

    See also Spencer (1967) and Fallers (1971) who argue similarly.

  11. 11.

    This phenomenon has been observed since time immemorial; ancient books such as the Bible or the Veda contain examples. See Merton (1957), Fabris (1971).

  12. 12.

    The Norwegian economist Thorstein Veblen was the first and most authoritative scholar to study this phenomenon in depth during the 1930s.

  13. 13.

    Lipovetsky (1989) argues that people no longer consume to gain a particular social status, or to differentiate themselves from another group. They consume for personal satisfaction to increase their pleasure or comfort.

  14. 14.

    In the United States of America these include particular types of clothes, a television, a fridge, furniture for the house, etc. The Italian sociologist Alberoni (1964) has also identified a set of goods and services to be consumed in order to avoid feeling marginalized.

  15. 15.

    The three villages belong to the set of 11 villages that have been studied repeatedly since the 1970s to understand the socio-economic impact of the Green Revolution and rural development in the area (Harriss-White and Janakarajan 2004). The secondary data are all taken from this source and from the official Indian Census.

  16. 16.

    That for the whole of India in 2010 is only 0.37 (CIA Factfile).

  17. 17.

    On the credit system in the three villages, see Colatei and Harriss-White 2004 and Polzin, here. On machinery in Nesal see Harriss (2007).

  18. 18.

    For details of the subsidy’s rise, fall—under World Bank pressure in the mid-1990s to 2005—and rise thereafter, see Audinet (2002), Badiani and Jessoe (2011), Grossman and Carlson (2011), von Braun et al. (2005), UNCTAD (2004)—and Fig. 10.2 in the Appendix of this study. The problems related with water certainly did not start in the post-liberalization period. The sustainability of water exploitation was first questioned by Madduma Bandara based on systematic well level measurements in 1973 (1978). And in 1993, Janakarajan (2004) underlined the dramatically deteriorating situation with regard to irrigation and water exploitation. According to Harriss (1982) the declining use of the surface water tank started in the early 1970s after the Green Revolution with the beginning of mechanization and the technological possibility of digging waterholes in the granite.

  19. 19.

    Reported costs of energy per average well in turn averaged about Rs. 1500 ($34) per 6 months.

  20. 20.

    Similar results were observed by Janakarajan (2004).

  21. 21.

    John Harriss quotes Athreya et al. (1990) confirming the 1970s and 1980s trend for further south in Tamil Nadu and pointing out that the tightening of agricultural labour markets was the result as much of development in the non-farm economy as in agriculture—together with public employment programmes and subsidized credit (2007, p. 165).

  22. 22.

    On migration, see Jayaraj (2004), Picherit (2012).

  23. 23.

    See Vera Sanso (2010) for the physical effects on ageing of the construction industry in which workers are usually incapacitated by their late 30s or early 40s.

  24. 24.

    In a study of microfinance in villages nearby in Vellore district Guerin et al. (2010), two important findings are likely to be relevant in the Arni region but which have not yet been researched. First, financial outcomes depended as much on women’s control over women as they did to male control over women and second, transfers among female kin from the uterine village could amount to up to a third of annual household income.

  25. 25.

    Here we are indicating a period of time between 1993/1998 and 2008. On the performance and trends related to the PDS during that period, see Swaminathan (2001, 2008), Yesudian (2007), Harriss-White (2008).

  26. 26.

    The four elements of food security are: access, availability, utilization and vulnerability.

  27. 27.

    http://planningcommission.nic.in/reports/sereport/ser/stdy_pubexpdr.pdf and http://recoup.educ.cam.ac.uk/publications/WP18-ADfin.pdf.

  28. 28.

    http://www.macroscan.org/anl/oct06/pdf/Health_Expenditure.pdf. See Fig. 10.3 in Appendix for further details.

  29. 29.

    See also Polzin, Chap. 9. Already in the 1990s, Harriss-White and Colatei (2004) confirmed this trend by underlining that only a small fraction of credit was coming through the formal system and that around 40 % of the total amount taken was used for non-productive expenditures.

  30. 30.

    This phenomenon was spoken of most explicitly in the interviews with Untouchables. However, other people did not seem to like to speak about their food habits. The research has not involved collecting food recall or anthropometric data and so we cannot evaluate the real impact on nutrition.

  31. 31.

    As Polzin showed in the previous Chap. 9, a rapid increase in private transport especially motorcycles has led to the expansion of urban retail credit—and rural debt—for the purchase of consumer durables.

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Appendix

Appendix

See Figs. 10.2 and 10.3.

Fig. 10.2
figure 2figure 2

Electricity prices in India 1988–2005. Source Badiani and Jessoe (2011, p. 25)

Fig. 10.3
figure 3figure 3

Public expenditure on education and health. a Education. Source Planning commission. b Health. (i) Health spending as percent of household consumption expenditure, 1993–1994 to 2004–2005. Source NSSO surveys of consumption expenditure, 50th, 55th and 61st Rounds. (ii) Health expenditure of central and state governments as percent of GDP. Source http://www.macroscan.org/anl/oct06/pdf/Health_Expenditure.pdf

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Cavalcante, M. (2016). Feeling Rich on an Empty Stomach: Agrarian Crisis and Rural Consumption Choices. In: Harriss-White, B. (eds) Middle India and Urban-Rural Development. Exploring Urban Change in South Asia. Springer, New Delhi. https://doi.org/10.1007/978-81-322-2431-0_10

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