Dealing with Inequities in India and China: A Comparative Study of Welfare Provisions

Abstract

Comparative studies of India and China are in vogue all over the world for various reasons. But not much has been written about the recent welfare provisions in these countries—both of them have huge populations and vast inequities to deal with. Both of them had been under planned economies and have been dealing with economic liberalisation since the 1980s. China started the process a decade ahead of India. It could do so being run by an authoritarian party, whereas India had to face a lot of resistance being a democracy. In both the countries, the state had to come forward to deal with socio-economic and regional inequities enhanced in the process of neo-liberalism. We find a shift in these countries from welfare to paternalism, from redistribution in the name to equity to social protection through social insurance, from government benevolence to contribution-based provisions, etc. The article seeks to compare and contrast the recent social protection and welfare provisions that are low-cost but effective on massive scale and draw some important lessons. An attempt is made to understand the emergence of new laws and find out how they are conceptualised and operationalised. It also covers the risks involved in direct cash transfers and redefining the relationship among state, market and society in ensuring the wellbeing of the most disadvantaged citizens. The methodology adopted is analytical, comparative and empirical.