The rollout of GST holds major implications for inequalities across Indian states, in a federal context. Some are not too pleasant.
The Union of India – integrity and inequalities
[ ##thumbs-o-up## Share Testimonial here - make our day!]
Often, we in India speak about “integrity of the nation”. That is usually with reference to ideological or religious insurgencies like the ongoing Maoist rebellion (Naxalism) in some states, or the earlier Khalistan Movement in Punjab. But there is another threat – growing disparities based on economic and social parameters. It is important to note that disparities born out of social and economic reasons can be serious catalysts for secessionist movements in a federal setup. A good example to study – the American Civil War (North versus South). The standard logic given is that it was a war due to slavery and secession issues. That is not wrong. But what is also worth considering is that it happened after a long period of economic divergence between north and south. Earlier, the manufacturing industries (mostly located in north) wanted higher tariffs to fight imports from abroad, while the slave-labour driven southern plantations wanted cheap imports (and hence easy access to export markets). South Carolina rose in revolt in 1832, passing a law for nullifying the federally imposed tariffs of 1828 and 1832, and declared that it will secede if forced.
This “Nullification Crisis” was the harbinger of 1861 secession by 7 southern states (later joined by 4 more) to form the CSA – Confederated States of America. View a full video lecture on the American Civil War on this page! Finally, the question whether a frustrated state (a member of the federal Union) can secede or not was settled not through the Constitution or the Judiciary, but through a bloody battle between the Union army of President Abraham Lincoln and the Confederate army of President Jefferson Davis. The Union won decisively. Judiciary came in much later, in 1869, when the Supreme Court declared in a case (Texas versus White) that a single state cannot, on its own, secede unilaterally. But the territorial integrity of each state is sacrosanct, i.e. a state cannot be broken up into smaller states (unlike in India). Indian case is different. Our Constitution, made by the Constituent Assembly in 1947-50, made secession an impossibility, and also gave no promise of legal sanctity on individual territories to constituent States (hence smaller states can be made by dividing existing ones). Read many Bodhi Saars on this theme, here Most important : India is passing through a strange phase – prosperous states of South and West are racing ahead of the Northern and Eastern states. But the GST will tie everyone together in one rope! So the promise of the constitution that individual states’ fiscal autonomy will be protected is being voluntarily given up by States. Why? Because the larger hope is that one GST will lift all boats. What is that logic? That widening regional disparity will be reduced by one common market. But that is just a hope. The exact reverse may happen. Then what? You must read the comprehensive GST Bodhi by us to understand every aspect of it.
BODHI BOOSTER Bodhis News Shrutis Quizzes Sameeksha Bhasha Downloads | GOVT. EXAMS Headlines Quizzes | APTITUDE PT Boosters Full Site | CIVILS TAPASYA English हिंदी Answer-writing | FULL COURSES Self-Prep Online | VOCAB Course
[ ##bug## Errors? Suggestions? Welcome here!] Comments welcome in the thread below!
COMMENTS