This paper examines the paradox of rapid economic growth alongside persistent inequality in India and Bangladesh, applying Marxist theoretical frameworks to analyze contemporary dispossession. Drawing on ethnographic studies by Feldman, Geiser, Walker, Munster, and Carswell, the essay traces how David Harvey's concept of "accumulation by dispossession" illuminates wealth concentration in neoliberal economies. The analysis demonstrates how mechanization, land seizure, labor commodification, and caste-based exploitation perpetuate proletarianization despite overall economic expansion. While acknowledging capitalism's potential for mobility (as exemplified by Tiruppur), the paper argues that embedded structural inequalities—caste systems, government inefficiency, and neo-liberal policies—continue to dispossess vulnerable populations of assets, labor autonomy, and social dignity.
China and India have emerged as global powers with high rates of economic growth. Their booming economies and vast developmental projects have become central to public debate. India is second only to the United States in terms of the combined wealth of its billionaires. However, this wealth is concentrated in only a few hands, and there is increasing disparity between the wealthy and the poor. In fact, India ranks highest in the world for numbers of homeless, malnourished, and illiterate people (Walker, 2008). A direct relationship can be seen between economic growth and inequality. This essay aims to explore this relationship using Marxist theories of alienation, primitive accumulation, and proletarianization.
David Harvey, a Marxist geographer, applied these theories to coin the term "accumulation by dispossession," applying it to the economic realm of today. Harvey traces the history of economic growth and discusses how the dispossession Karl Marx highlighted in feudal modes of production still exists in capital markets today. He follows Marx's argument that in the 17th and 18th centuries, feudal lords earned their wealth not through economic growth but through "primitive accumulation"—the accumulation of wealth by dispossessing the lower classes of their assets and property. Land, for example, was owned by a few wealthy individuals, and locals were robbed of their rights to it. Simultaneously, they were deprived of the right to consume the fruits of their labor. Harvey draws a parallel between that system and what he calls "the new imperialism" in capitalist modes of production. He asserts that the increase in wealth of a few individuals is not owing to economic growth but to dispossession. The rich keep getting wealthier while those without control suffer the brunt of any crisis.
Certain groups of people in certain urban zones working in certain jobs are those who keep losing to others who keep accumulating and growing wealthier, thus leading to a massive increase in inequality. This has prompted a rise in political struggles against "accumulation by dispossession," which can be related to traditional proletarian movements and are equally important. Harvey highlights how light must be shed upon workers who have been dispossessed of surplus capital in industry, as well as dispossessed of their assets and rights. The Marxist theory of primitive accumulation should not remain in history but should instead be used as a lens to understand this emerging phenomenon of accumulation by dispossession. By analyzing the work of anthropologists in South Asia, mainly in the context of India and Bangladesh, this essay explores the relevance of Marxist theories and the association between economic growth and inequality.
Feldman and Geiser (2012) provide an ideal setting for understanding the relationship between displacement and dispossession in their ethnography of Bangladesh. They assert that locals are displaced from their land "very sneakily" in Bangladesh. Displacement is largely viewed as being physically removed from land; however, these locals are displaced in other ways as well. They make a distinction between "in-situ" and "ex-situ" displacement. In-situ displacement occurs without a change in address but inhibits social reproduction, thus dispossessing locals of their right to use their assets according to their own will. Powerful groups gain control over land not owned by them, dispossessing locals of their rights. Government inefficiency in land allocation furthers this possibility. Locals are left helpless as the powerful use force, often violently, to retain control. This highlights Marxist notions of alienation and primitive accumulation.
Ex-situ displacement takes place when locals are physically removed from their land. This occurs when agricultural land is seized for housing developments or due to climatic reasons. Bangladesh's topography results in increasingly flooded land rendered useless for other purposes. Although some tenants lose land through natural causes, others lose land under the false pretense of such causes. Widespread government corruption means illegal takeovers occur without resistance. This leads to wealth concentrating in the hands of the wealthy and a clear emergence of the proletariat. However, the struggle of this class is largely ignored and yields no gains because of the ever-strengthening hold of the wealthy. It forms a vicious cycle whereby deprivation of one leads to increasing control of another.
This vicious cycle further takes root in Walker's (2008) ethnography on the neoliberalization of India. He provides an overview of economic growth, pointing out its relation to increasing inequality. He dissects the components of economic growth and highlights inequality as a byproduct at each level. Increasing factory production does not mean an increase in job opportunities; rather, it points toward increasing mechanization of industrial processes. The same workers are expected to be more productive, and some are often laid off as machinery makes them redundant. This directly highlights the Marxist notion of alienation, whereby the worker is deprived of their essence, of their work, of their individuality, and of relations with coworkers. Labor is increasingly reduced to a commodity.
In the midst of economic growth and booming industrial cities, there are pockets of increasing rural poverty. Disease, malnutrition, and anemia are the only things abundant in these areas. The "Green Revolution" policy has led to mechanization not only of industry but also of agricultural processes. It is as if the common person, already dispossessed of their land, is being told to compete against others to work on it. At the market level, increasing competition has left smaller companies desperate to survive, thus further exploiting labor. Banks, now focused on more profitable activities, are investing in already developed areas while leaving others unaided. Walker points out how money was being taken out of Bihar and invested in Maharashtra because it was more profitable. This results in large-scale dispossession. Electricity was also being diverted to areas where its usage would generate more profitable gains.
As wealth disparity continues to increase, demand for basic goods is declining while that of luxury goods is on the rise. If one person cannot afford basic necessities, another is increasingly indulging in luxurious activities. This clear formation of a proletariat has also signified the rise of revolts. Thousands of workers have mobilized in peaceful and sometimes violent revolts. However, these small insurgencies are always controlled through force or left ignored, and they have not been successful enough to make a difference. Interestingly, dalits hired from within this "proletariat class" are used by the powerful to control these insurgencies.
Munster (2012) provides an example from his ethnography of Kerala's Wayanad district, where locals are dispossessed not only of physical aspects but of social assets as well. The government has made increasing efforts to turn this district into a "tropical paradise for tourists," aiming to commodify the natural beauty of the area. This district faces significant problems of rural distress, agrarian crisis, and high rates of farmer suicide, yet the government masks these issues to portray a paradisiacal tourist destination. This serves as a microcosm of "economic growth." The perceived notion of economic growth seems to blanket over inequality in the area, giving the false perception of a prosperous state of affairs.
Low productivity in the land not only forces locals to sell but also leads to a "commodification" of their culture. Tourists are promised the "whole village experience" whereby they are brought into the homes of these people, reducing them to mere objects on display. Hotels and shops are portrayed as environmentally friendly while swiftly excluding the well-being of the locals who initially controlled the environment. This furthers Marxist notions of alienation and exploitation. However, it must not be ignored that growth of this tourist industry has also led to increased job opportunities and improved roads and villages connecting this district to main cities. The low productivity of the land would have forced locals to seek alternate means of income, and this industry provides that alternative.
"Caste system sustains bonded labor despite capitalism's incompatibility with it"
"Economic opportunity exists but caste and gender limit access to upward mobility"
Throughout this essay, the relevance of Marxist theory to the relationship between economic growth and inequality has been repeatedly highlighted. The neo-liberal policies introduced into these countries, especially India, after a period of strict market control has led not only to an extreme surge in economic growth but also to increased inequality. Each person is left to fend for themselves. Each opportunity is utilized to maximize results. However, economic growth cannot be blamed as a single factor leading to increasing inequality. The embedded caste system, overpopulation, and inefficient government policies also play pivotal roles that require further examination.
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