Impact of post-liberal economy on ethnic identity and communalism

QUES . Discuss the impact of post-liberal economy on ethnic identity and communalism. UPSC 2023 GS MAINS PAPER I, 250 words, 15 Marks

संजातीय पहचान एवं सांप्रदायिकता पर उत्तर-उदारवादी अर्थव्यवस्था के प्रभाव की विवेचना कीजिए।

HINTS:

Impact of post-liberal economy on ethnic identity and communalism

The transformative period,which began in the 1990s while ushering in rapid economic growth, also impacted the socio-cultural landscape, including the dynamics of ethnic identity and communalism.

Impact of post-liberal economy on ethnic identity

Positive impact

Ethnic food, clothing, and jewelry have become highly marketable products post LPG reforms.

The post-liberal economy has facilitated increased migration, trade, and cultural exchange, allowing individuals to maintain connections with their ethnic or ancestral homeland.

Post liberal economy has made all types of connectivity fast, thus the ethnic culture is getting known to others and other cultures are impacting them.

The post liberal economy has propagated different languages by means of trade, travel, tourism, etc.

Negative impact

Because of migration for economic opportunities, ethnic identities have been largely diluted.

As migration increased with regionally imbalanced development with private capital concentration, so did
‘Son of the Soil’ movements against migrants. These strengthened ethnic identities.

The inflow of private capital also led to land acquisition in forested regions resulting in tribal displacement and clashes.

The LPG reforms also brought western cultural onslaught resulting in homogenization of culture and identities. The Fundamentalist reaction to this perceived threat to identity led to the rise of fringe groups promoting ethnic, religious and linguistic nationalism.

Must read: Why did human development fail to keep pace with economic development in India?

Impact of post-liberal economy on communalism

Positive impact

Faster growth due to LPG reforms meant more welfare expenditure which brought the vulnerable sections out of poverty. This led to reduced communal clashes as well as perception of relative deprivation amongst communities decreased. LPG reforms have opened ways for economic development and prosperity of all communities thus reducing communalism.

Urbanization, driven by economic opportunities in cities, has fostered more diverse and inclusive environments. Urban centers often have a more cosmopolitan outlook, where people from different backgrounds interact regularly. This has led to communal harmony and reduced the appeal of communal politics.

The spread of cultural traditions has been made helpful by the post liberal economy.

The expansion of the middle class due to economic liberalization has a positive impact as the middle class promotes liberal values and tolerance in the society.

Negative impact

The post-liberal economy has seen the rise of identity-based politics. Communal and caste-based identities are often used as political tools to consolidate vote banks.

False information and hate speech can be disseminated quickly, leading to communal tensions and violence. The youth may be radicalized.

Liberalisation has led to extraction of resources, which has led to competition for them on communal lines, which has led to communal tensions.

Economic liberalization has widened the economic gap between communities. Some political groups exploit these disparities to inflame communal tensions, framing them as outcomes of favoritism towards certain communities.

Thus, while the post-liberalization era presented a multitude of economic opportunities, it also surfaced latent tensions and catalyzed new dynamics around ethnic identity and communalism. It is crucial for Indian society and policymakers to address these challenges and promote inclusivity, social cohesion, and economic justice to ensure that the benefits of economic growth are shared by all communities.

External link: https://www.thehindu.com/opinion/op-ed/liberal-economics-creates-illiberal-societies/article38268676.ece

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