{"id":4726,"date":"2018-08-22T08:30:14","date_gmt":"2018-08-21T22:30:14","guid":{"rendered":"https:\/\/testblogs.griffith.edu.au\/asiainsights\/?p=4726"},"modified":"2023-08-08T10:08:03","modified_gmt":"2023-08-08T00:08:03","slug":"india-as-a-case-of-the-billionaire-raj","status":"publish","type":"post","link":"https:\/\/testblogs.griffith.edu.au\/asiainsights\/india-as-a-case-of-the-billionaire-raj\/","title":{"rendered":"India as a case of the \u2018Billionaire Raj\u2019"},"content":{"rendered":"<p><a href=\"https:\/\/testblogs.griffith.edu.au\/asiainsights\/tag\/yan-islam\">YAN ISLAM<\/a> |<\/p>\n<p>James Crabtree, formerly Mumbai bureau chief of the <em>Financial Times<\/em>, and currently holding a professorial position at the National University of Singapore, has recently released a much-noted book on the phenomenon of <a href=\"https:\/\/www.goodreads.com\/book\/show\/37007780-the-billionaire-raj\">the \u2018Billionaire Raj\u2019 in India<\/a>. There were only two billionaires in India in the mid-1990s, but now there are more than 100. This is the fastest growth, the author claims, in the size of the super-rich anywhere in the world. Crabtree regards them as today\u2019s <a href=\"https:\/\/www.businessinsider.com.au\/the-bollygarchs-meet-the-15-richest-people-in-india-2012-6?r=US&amp;IR=T#15-anil-agarwal-1\">\u2018bollygarchs\u2019<\/a> \u2013 a nomenclature that represents a fusion between \u2018Bollywood\u2019 and oligarchy. \u2018<a href=\"https:\/\/en.wikipedia.org\/wiki\/Antilia_(building)\">Antillia\u2019<\/a> \u2013 the billion dollar plus private home of India\u2019s richest man \u2013 Mukesh Ambani &#8211; represents the contentious icon of the Billionaire Raj. This is a far cry from the past when India was under the aegis of Nehruvian socialism. It was then a poor and relatively egalitarian society. Today, it is a lower middle income country that has enjoyed rapid growth for decades, but has also witnessed a sharp increase in inequality.<\/p>\n<p>Branko Milanovic, one of the leading scholars of global inequality, <a href=\"https:\/\/economics.hse.ru\/data\/2016\/03\/11\/1124888188\/gpol12032.pdf\">argues that India represents a paradox.<\/a> One the one hand, rapid growth over decades has enabled India to gradually converge towards the income levels of the richer parts of the world and, given its size, has played an important role in contributing to the reduction in income gaps between rich and poor countries. On the other hand, the rise in intra-country inequality that could be readily documented after income distribution data became available in 2004 has caused considerable anguish among analysts of Indian political economy.<\/p>\n<p>Crabtree\u2019s thesis of the Billionaire Raj has been explored by others quite extensively in recent years.\u00a0 Thomas Picketty, famous for his work on <em><a href=\"https:\/\/www.amazon.com\/Capital-Twenty-First-Century-Thomas-Piketty\/dp\/0674979850\">Capital in the 21<sup>st<\/sup> century<\/a><\/em>, and his co-author Lucas Lancel also document <a href=\"https:\/\/wid.world\/document\/chancelpiketty2017widworld\/\">India\u2019s transformation from the British Raj to the Billionaire Raj.<\/a> The 2018 <em><a href=\"https:\/\/wir2018.wid.world\/\">World Inequality Report<\/a><\/em> that Picketty coordinates with others classifies India as part of the \u2018extreme inequality frontier\u2019. This is defined as a situation where the top 10% own more than 50% of national income. Other countries\/regions that belong to this extreme inequality frontier include Sub-Saharan Africa, Brazil and the Middle East \u2013 see figure 1.<\/p>\n<p><strong>Figure 1<\/strong><\/p>\n<figure id=\"attachment_4732\" aria-describedby=\"caption-attachment-4732\" style=\"width: 632px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-4732 size-full\" src=\"https:\/\/testblogs.griffith.edu.au\/asiainsights\/wp-content\/uploads\/sites\/2\/2018\/08\/fig1-india-blog-1.jpg\" alt=\"\" width=\"632\" height=\"323\" srcset=\"https:\/\/testblogs.griffith.edu.au\/asiainsights\/wp-content\/uploads\/sites\/2\/2018\/08\/fig1-india-blog-1.jpg 632w, https:\/\/testblogs.griffith.edu.au\/asiainsights\/wp-content\/uploads\/sites\/2\/2018\/08\/fig1-india-blog-1-300x153.jpg 300w\" sizes=\"(max-width: 632px) 100vw, 632px\" \/><figcaption id=\"caption-attachment-4732\" class=\"wp-caption-text\">Source: World Inequality Report 2018, Executive Summary, p.5.<\/figcaption><\/figure>\n<p>Crabtree \u2013relying heavily on personal interviews with representatives of the super-rich \u2013 consider the emergence of the Billionaire Raj as the product of crony capitalism \u2013 where great wealth among a few were created through political connections. Despite this, he is hopeful that India might be able to forge a more progressive future of inclusive growth.\u00a0 Some reviewers of Crabtree\u2019s work consider this as <a href=\"https:\/\/www.nytimes.com\/2018\/07\/09\/business\/dealbook\/review-billionaire-raj.html\">na\u00efve optimism<\/a>. The work of <a href=\"https:\/\/wid.world\/document\/extreme-inequality-evidence-brazil-india-middle-east-south-africa-wid-world-working-paper-2018-4\/\">Lydia Assouad <em>et al<\/em><\/a> seem to support this contention. They conclude that \u2018extreme inequality in India derives directly from the caste system that institutionalized socio-economic, legal and political disparities among citizens\u2019. These historically entrenched sources of inequality were exacerbated as a generation of policy-makers progressively engaged in deregulation, privatization and global economic integration. These initiatives have produced mixed blessings: rapid growth, significant reductions in extreme poverty but also the rise of extreme inequality.<\/p>\n<div class=\"label author\">AUTHOR<\/div>\n<p><strong>Iyanatul Islam<\/strong> is an\u00a0Adjunct Professor at the Griffith Asia Institute and former Branch Chief, ILO, Geneva.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>YAN ISLAM | James Crabtree, formerly Mumbai bureau chief of the Financial Times, and currently holding a professorial position at the National University of Singapore, has recently released a much-noted book on the phenomenon of the \u2018Billionaire Raj\u2019 in India. There were only two billionaires in India in the mid-1990s, but now there are more [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":4729,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[233,246],"tags":[823,822,512,1320],"class_list":["post-4726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feature-series","category-india-and-south-asia","tag-billionaire-raj","tag-economic-inequality","tag-india","tag-yan-islam"],"acf":[],"modified_by":"Jill Moriarty","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin 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