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Unpacking the “Diaspora-Development” Mantra: Does Punjabi Diaspora Have the Potential to Contribute to the Rejuvenation of Punjab’s Economy?

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Economic Transformation of a Developing Economy

Part of the book series: India Studies in Business and Economics ((ISBE))

Abstract

Punjabi diaspora is now over 2 million strong and ranks as one of the oldest of the “free” Indian regional diasporas with a history of over 125 years. Given this long history, large segments of this diaspora are economically, socially and politically well settled and positioned in their adopted countries. This paper tries to unpack the current economic relationship between Punjab and its diaspora. An attempt is made to assess the current and potential contribution that Punjabi diaspora makes or can make to the Punjab economy by examining the motives, aspirations and abilities of the main factors involved. It will also consider, taking examples from other diasporas, how and why Punjabi diaspora’s potential contribution continues to be poorly mobilised and underutilised. It is argued that a major reason for this is the absence of a constructive engagement between the state government and diaspora communities, despite the populist rhetoric emanating from both.

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Notes

  1. 1.

    According to the Economic Survey of India, yields of wheat, rice and maize have stagnated at around 4,000 and 4,000 between 2005–2006 and 2011–12.

  2. 2.

    However, despite this relative decline Punjab still remains the single largest contributing state. Data taken from various issues of Economic Survey of Punjab, Government of Punjab, Economic and Statistical Organisation.

  3. 3.

    There is growing evidence that high level of pesticide residues in soil and water in many Malwa villages which, along with excessive tobacco and alcohol use, contribute to more than average incidences of cancer. Studies show that Punjab has 90 cases per 100,000 of cancer patients compared with the Indian average of 80. In the Malwa region the figure rises to 107.4 but in the Muktsar district it is even higher at 136.3 per 100,000. Over 33,000 deaths were identified up to end of 2014. For some studies, see (CSE 2005; Thakur et al. 2008; The Hindu 2013; The Tribune 2014a, b).

  4. 4.

    In 2007 the Punjab State Council for Science and Technology provided a comprehensive and detailed report on all aspects of environmental damage and loss of biodiversity in Punjab. See PSCST (2007) for details.

  5. 5.

    During British colonial times several books by administrators highlighted this facet of Punjabi peasant life, especially as captured in the travelogues of Calvert and Darling. For a recent historical study which revisits the Punjab peasantry and debt question under British rule, see Sohal (2012).

  6. 6.

    Centre–State Fiscal Transfers is a thorny and controversial issue in India and much has been written about reform and shrinking fiscal space for subnational states. To simplify, the assistance to Punjab from the Centre comes in four different forms; share of central taxes, normal central assistance, special central assistance and centrally sponsored schemes. Each has its own criteria for distribution and this is believed to favour relatively poorer states. For example, the Finance Commission’s criteria for devolving central taxes to states is based on population, area, fiscal capacity, distance and fiscal discipline which tends to be biased against more developed states and according to the Punjab’s Economic and Statistical Organisation, Punjab’s share of central taxes fell from 2.45 % in 1970–75 to 1.39 % in 2010–15 (ESO 2013). Others have argued that level of extent of political representation and bargaining power at the Centre also has an effect. For the latter argument, see Vasishtha and Singh 2004.

  7. 7.

    Apparently, village Badal, the home of the Badal family, is highly developed and can be seen as an oasis in an otherwise undeveloped region.

  8. 8.

    Government of Punjab (2011) press statement as of 31/3/2011.

  9. 9.

    This context may help us to understand why in the recent Lok Sabha election the Aam Aadmi Party surprisingly won four seats—in fact the only wins for the AAP anywhere in India.

  10. 10.

    For instance according to one estimate, annual remittances to Punjab are as high as US$2 to US$3 billion, which amount to a significant 12–18 % of Punjab’s gross state domestic product (World Bank 2004, p. 21).

  11. 11.

    For example the 2011 UK census reported that 56 % of the UK Sikh population was born in the UK (ONS 2012).

  12. 12.

    It is noteworthy that on 28 February 2013, after a petition organised by Kesri Lehar, and with support from the Sikh Federation, both UK-based Sikh organisations, initiated the British government to have a one and half hour parliamentary debate on the death penalty in India. The petition was largely based on Sikhs’ opposition to the unjust treatment of Bhullar and Rajoana. For details of the debate, see Daily Hansard (2013).

  13. 13.

    In this regard the role of Hometown Associations in contributing to economic development in some Mexican and other Central American countries is worth considering and replicating. For an assessment, see Orozco and Welle (2009).

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Authors and Affiliations

  1. Global and International Studies, University of California, Santa Barbara, CA 93106-7065, USA

    Shinder S. Thandi

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Correspondence to Shinder S. Thandi .

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Editors and Affiliations

  1. Department of Economics, Punjabi University, Patiala, Punjab, India

    Lakhwinder Singh

  2. Department of Economics, University of California Santa Cruz, Santa Cruz, California, USA

    Nirvikar Singh

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Thandi, S.S. (2016). Unpacking the “Diaspora-Development” Mantra: Does Punjabi Diaspora Have the Potential to Contribute to the Rejuvenation of Punjab’s Economy?. In: Singh, L., Singh, N. (eds) Economic Transformation of a Developing Economy. India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-0197-0_16

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  • DOI: https://doi.org/10.1007/978-981-10-0197-0_16

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