The original idea was to pull the ones in the ditches up on to a level playing field; much of it is accomplished in segments. However, there are segments of population that are still at the bottom of the pit, like the Muslims and Dalits. I am sure you have read the famed Sachar Report.

The right wing Indians don’t believe in this original idea of capitalism, to them “I earned it to be here, let them come up if they want, I build it myself, let them build it on their own.” This sounds logical but in reality a dumb idea.

As a responsible capitalist, I would rather invest in pulling people up into the middle income group and expand my consumer base. The more people are in the market for the goods and services, the more I get to sell and serve, the more people I get to hire. I become rich by enriching people and not keeping them in the ditches. Bill Gates and other responsible entrepreneurs have proved that over and over again

I don’t know if there were benchmarks set, at which point the reservation would be yanked, once the momentum is built for them to be on their own and compete in the market place. The whole system will be successful if all of its parts are operating effectively.

Continued at http://mikeghouseforindia.blogspot.com/2012/10/with-affirmative-action-indias-rich.html

Mike Ghouse
www.MikeGhouse.net
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 The New York Times and Gardiner Harris, the author of the following article, may not have fully understood the history of India and its affirmative action programs.

The title of the article suggests that the "quotas" or "reservations" system in Indian laws were originally meant to help the "poor" but are now applied without regard to income or wealth. That is not really the case. Poverty did accompany the lower societal status experienced by the lower-caste people in India. However, most of the legal quotas were set up without regard to income or wealth levels. Quotas were set up to tilt the balance of power - through special entitlements in education and jobs - in favor of the once-downtrodden lower-caste members of Indian society. In recent decades, of course, Indian society and India's economic growth have been far less discriminatory against lower-caste Indians. Thus, many Indians born to lower castes are now quite wealthy, rivaling and even surpassing the wealth once enjoyed in preceding centuries by Brahmins and other higher-caste Indians.

Another part of India's history that should have been explained in this article but missing is the fact that lower-caste Indians have become dominant not only in higher income and wealth, but also in political and bureaucratic power, in most levels of Indian government. In the 1960s and 1970s, people of lower caste indulged in both non-violent and violent methods to become elected to powerful political positions, demoting and ejecting higher-caste people from power. The result is that the quotas and reservations no longer have much need or relevance in today's more-meritocratic India. That is not to say that caste-based discrimination does not exist in India. It does continue in day-to-day life, with people of different castes living separate lives but even in social and cultural matters, caste-based discrimination is a lot less today than it was decades ago.

The rapid development of the lower-castes in India is similar to that of African-Americans in the United States: impressive and irreversible.

John Laxmi

THE NEW YORK TIMES

With Affirmative Action, India’s Rich Gain School Slots Meant for Poor

By GARDINER HARRIS

Published: October 7, 2012

“When I came to know that I could not get into any medical college, I was really shocked,” C. V. Gayathri, the Indian student, said in an interview. “I didn’t speak to anyone for a week. I cried. I was very depressed.”

Read more at: http://www.nytimes.com/2012/10/08/world/asia/indias-rich-benefit-from-schools-affirmative-action.html

CHENNAI, India — The two women both claim that affirmative action cost them coveted spots at elite public universities. Both cases have now reached the Supreme Court.

Niharika Mandhana contributed reporting from Chennai and New Delhi.

CHENNAI, India — The two women both claim that affirmative action cost them coveted spots at elite public universities. Both cases have now reached the Supreme Court.

One of the women, Abigail Fisher, 22, who is white, says she was denied admission to the University of Texas based on her race, and on Wednesday, the United States Supreme Court is to hear her plea in what may be the year’s most important decision. The other woman is from the southern Indian state of Tamil Nadu, and two weeks ago the Indian Supreme Court ordered that she be admitted to medical school pending the outcome of a broader court review.

“When I came to know that I could not get into any medical college, I was really shocked,” C. V. Gayathri, the Indian student, said in an interview. “I didn’t speak to anyone for a week. I cried. I was very depressed.”

Though the outlines of the two cases are similar, differences between how the world’s two largest democracies have chosen to redress centuries of past discrimination are striking. While affirmative action in the United States is now threatened, the program in India is a vast system of political patronage that increasingly works to reward the powerful rather than uplift those in need.

Indeed, the caste-based affirmative action here raises questions for nations like Brazil and Malaysia that have adopted anti-discrimination programs that are in some ways similar to India’s. Without diligent judicial oversight, experts say, the efforts can help perpetuate inequality rather than redress it.

In Tamil Nadu, for instance, 69 percent of university admissions are now set aside for what the state has determined to be “backward castes.” Many of those favored with these set-asides have controlled Tamil Nadu’s government and much of its resources for generations, but they claim special status by pointing to a caste survey done in 1931. (Ms. Gayathri, 17, is a Brahmin whose parents are civil servants with modest incomes.)

Five prominent university officials in Tamil Nadu said in interviews that those given set-asides at their institutions were generally the children of doctors, lawyers and high-level bureaucrats. The result is that rich students routinely get preference over more accomplished poor ones who do not happen to belong to the favored castes. None of the officials would allow their names to be used for fear of angering the government ministers who benefit politically and personally from the program.

India’s caste system was created nearly 1,500 years ago to organize occupations in a feudal agricultural society. Those at the bottom of the system, now known as Dalits, were forbidden in some places from even allowing their shadows to fall on those at the top, known as Brahmins. Most castes were deemed “backward,” which meant that they were consigned to menial jobs.

Over the last 30 years, however, India’s economy has been transformed, much of its populace has moved from villages to sprawling cities, and once distinct castes have been scrambled. That has led to the erosion of historic differences in education and increased income mobility within castes in India, recent studies have found.

“Caste is no longer an economic restriction,” said Viktoria Hnatkovska, an assistant professor of economics at the University of British Columbia, and a co-author of several studies on the changing role of caste in India.

Nonetheless, quotas have transformed the taint of “backwardness” into a coveted designation.

The Gujjars of Rajasthan, for instance, held violent riots two years ago to protest the government’s refusal to declare them as “most backward.” Politicians win elections in India by promising to bestow this one-time curse, which has led to a dramatic expansion in those considered backward decades after the designation had true economic meaning.

Indeed, caste awareness among the young is sustained in part because of set-asides, so a program intended to eliminate the caste system is now blamed by many for sustaining it.

“When I was filling out my college application forms, there was this box for caste,” said Sneha Sekhsaria, 25, of Calcutta. “I had to ask my dad what our caste was, and he had to think about it for 15 minutes before telling me that we were in the general category.”

The general category meant that she received no preference, a fact that Ms. Sekhsaria blames for her failure to qualify for medical school. She went to dental school instead.

“Being a doctor was always my dream, but I got a dental degree instead and that’s O.K.,” she said.

But she remains bitter that some of her friends who scored more poorly than she did on entrance exams were able to become doctors even though she and others in her circle were entirely unaware that they were “backward.”

Nonetheless, the benefits that flow from caste quotas have made them popular, and supporting them is one of the few issues on which the present government and its opposition agree. Within the next few months, the Indian Parliament is expected to overwhelming approve a constitutional amendment that would allow caste-based quotas not just in educational settings and in government hiring but also in government promotions.

The Supreme Court has repeatedly tried to curtail the scope of caste quotas, but the Parliament has passed amendments in response to protect and even expand them. The court has ruled that quotas should not exceed 50 percent of university admissions, but Tamil Nadu has ignored this restriction and a case challenging the state’s larger quota has been pending since 1994.

In the meantime, the court has ordered the state to provide extra slots to at least some students who contest the higher quotas, including Ms. Gayathri, who has been admitted to Tirunelveli Medical College. In an interview, Salman Khurshid, India’s law minister and minister for minority affairs, said that wealthy beneficiaries of caste quotas should acknowledge that they no longer need set-asides and voluntarily bow out of the system.

Some rules forbid the wealthy — or “creamy layer” — from taking advantage of quotas, but those rules have not been implemented in many states and are widely ignored in others.

D. Sundaram, a retired professor of sociology from Madras University and a longtime member of Tamil Nadu’s now-disbanded Backward Classes Commission, defended the state’s quotas by saying that even three generations of wealth and power cannot reverse centuries of backwardness.

“The system has not been in place long enough,” Dr. Sundaram said.

To be sure, many Dalits and people from tribal backgrounds are still overwhelmingly poor, and even many critics of India’s caste-based quotas acknowledge that set-asides for them may still be worthy.

Ravi Kumar, general secretary of a Dalit political party in Tamil Nadu, agreed that many of those who benefit from the state’s vast caste-based quotas are wealthy and powerful. But his party supports quotas, also known as reservations, for the wealthy “because if we opposed them they would stop all reservations,” Mr. Kumar said.

Pratap Bhanu Mehta, president of the Center for Policy Research in New Delhi, said that caste-based quotas will gradually become less important as the quotas themselves make public universities less attractive to the most talented students. “The talented people will simply migrate away,” he said.

But that is no comfort to Ms. Sekhsaria, whose family ended up spending tens of thousands of dollars to send her to a private dental school after she was turned down for a government medical school, where the fees are modest.

“Of the thousands of reasons to hate the government, reservations is definitely one of them,” she said.