Context-

The Karnataka Reservation Bill, formally titled the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, mandates 50% and 70% reservation for local candidates in management and non-management categories, respectively. This legislation has faced significant backlash, prompting the State government to pause its implementation. The controversy highlights deeper issues such as India’s jobs crisis and regional socio-economic disparities that require more than legislative action to address.

The Downsides of Inequitable Growth

India’s status as the fastest-growing large economy and the country with the largest youth population presents a paradox.

The high-growth model driven by sectors like IT and finance has failed to generate the vast number of jobs needed for the burgeoning youth population. Instead, economic gains are concentrated among a small elite, exacerbating income inequality and leaving large segments of the population in precarious employment. This situation has been decades in the making, fueled by policies that prioritize capital efficiency over broad-based employment.

Globally, these trends have political repercussions. In developed nations, this manifests as anti-immigration sentiment, whereas in India, it is reflected in regionalism and opposition to inter-State migration. While liberal parties in developed countries argue for immigration based on labor shortages and aging populations, India’s context is more complex due to constitutional guarantees of freedom of movement and the right to work anywhere in the country. Despite these guarantees, local reservations evoke parochialism and threaten national unity.

In India, the disconnect between growth and job creation has led to significant social and political tensions. The promise of economic growth has not translated into improved living standards for many, leading to frustrations that manifest in regionalism and demands for local job reservations. The backlash against inter-State migration is one symptom of this broader issue, where local populations feel left out of the economic gains and are pushing back against perceived external competition for scarce jobs.

Regionalism and Political Accountability

The push for local reservations is a response by State political leaders to their electorate’s demands. This tension between local aspirations and national unity recurs in Indian politics, evident in debates over fund devolution, delimitation, and domicile requirements. The core issue here is federalism and political accountability. Local reservation initiatives typically favor unskilled jobs, raising questions about the causes of large-scale migration for such jobs and industry preferences for migrant workers.

Large-scale unskilled migration in India is primarily distress migration, driven by some State governments' failure to develop their regions adequately. Addressing this issue requires acknowledging the lack of political accountability for regional underdevelopment. Industries prefer migrant workers for unskilled jobs due to their lower likelihood of unionizing, which allows for easier exploitation, thereby displacing local workers and depressing wages.

This dynamic creates a vicious cycle where underdeveloped regions continue to lose their labor force, perpetuating their economic stagnation. Local reservations are seen by some as a way to protect local interests, but they also reflect deeper issues of governance and accountability. The preference for migrant labor highlights systemic flaws in labor rights and protections, where economic benefits are prioritized over fair labor practices.

Towards a Comprehensive Solution

Addressing the underlying issues necessitates a multi-faceted approach:

1.      National Debate on Job Creation: A real national debate involving political leaders, the corporate sector, and civil society is crucial to tackle India’s jobs crisis. Current interventions, such as skilling programs and production-linked incentives, are insufficient to address the scale of the problem. A long-term solution requires moving beyond data manipulation, unemployment allowances, and regionalism.

2.      Political Accountability: Political accountability must extend to both State and national leaderships for the chronic lack of development in certain regions, which fuels distress migration. Holding leaders accountable can drive more effective and equitable development policies.

3.      Federalism and National Unity: Federalism and national unity require both institutional responses and greater political maturity. Reviving the National Development Council, which has become inactive, could facilitate better coordination and planning across States.

4.      Corporate Responsibility: The corporate sector must be held accountable for labor standards for unskilled workers. Exploiting worker precarity for profit should be curtailed through stricter regulations and enforcement.

Conclusion

The Karnataka Reservation Bill is a symptom of broader structural issues in India’s economy and polity. While the Bill itself can be revised or postponed, the fundamental problems it highlights need urgent and sustained attention. Addressing India’s jobs crisis and regional socio-economic disparities is crucial for the country’s future economic growth, social cohesion, and political stability. The strong reactions to the Bill should prompt a deeper conversation about these underlying issues, ensuring that they remain at the forefront of national discourse and policy-making.

Source- The Hindu