Social Stratification: Systems, Mobility, Inequality & Nepalese Context

TAKEAWAYS:

• Social stratification is the division of society into layers based on access to resources, prestige, and power, and it is universal but varies in form (e.g., caste in Nepal vs. class in Western societies).
• The three main systems—caste, class, and estate—differ in rigidity, mobility, and criteria (birth vs. achievement), with Nepal’s system blending traditional caste hierarchies with emerging class divisions.
• Social mobility (vertical vs. horizontal) measures how easily individuals move between strata, influenced by opportunity structures (education, wealth, discrimination).
• Inequality is reinforced by institutionalized discrimination (e.g., untouchability in Nepal) and cultural ideologies (e.g., meritocracy myths masking systemic barriers).
• Global examples (e.g., India’s caste laws, Brazil’s racial stratification) and Nepali cases (e.g., Dalit rights movements, urban vs. rural wealth gaps) illustrate how stratification persists despite modernization.
• Business relevance: Stratification affects consumer behavior, labor markets, and corporate social responsibility (e.g., how Daraz’s delivery networks exclude marginalized groups).

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1. Defining Social Stratification: Layers of Inequality

Social stratification is the ranking of people into hierarchical layers based on:

• Wealth (economic resources),
• Power (influence over decisions),
• Prestige (social honor).

Unlike social differentiation (which groups people by roles like age or gender), stratification implies unequal access to rewards. Key features:

• Hierarchical: Layers are ranked (e.g., upper, middle, lower classes).
• Persistent: Positions are passed across generations (though mobility exists).
• Socially sanctioned: Institutions (laws, norms) justify the system (e.g., "hard work = success").

Visual: The Stratification Pyramid

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2. Systems of Stratification: Caste vs. Class vs. Estate

Not all societies stratify the same way. The three major systems differ in rigidity, mobility, and criteria:

IMAGE: Indian caste system hierarchy labelled diagram

| Caption: The traditional varna system (Brahmins, Kshatriyas, Vaishyas, Shudras) expanded into jatis (subcastes) in Nepal/India. Note: Dalits (untouchables) were outside this system.

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3. Nepal’s Stratification: Caste, Class, and Modern Challenges

Nepal’s stratification is a mix of caste and class, complicated by:

• Legal changes: The 2015 Constitution abolished untouchability but social stigma remains.
• Urbanization: Cities like Kathmandu create class-based divisions (e.g., Newari elites vs. migrant laborers).
• Globalization: Nepali diaspora (e.g., Gurungs in the UK, Tamangs in Malaysia) experience transnational mobility.

Worked Example: Dalit Access to Education

• Problem: Dalit children in rural Nepal have lower school enrollment due to discrimination.
• Data:
  • Only 40% of Dalit households send children to secondary school (vs. 70% for upper castes).
  • Teacher bias: Studies show Dalit students are less likely to be called on in class.
• Real-world link: eSewa’s digital inclusion programs aim to bridge this gap by offering subsidized tablets to Dalit students.

IMAGE: Nepal caste pyramid with modern class layers

| Caption: Overlap between caste and class in Nepal. Note how Dalits and Janajatis are concentrated in lower strata.

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4. Social Mobility: Can You Climb the Ladder?

Social mobility measures movement between strata. Two types:

1. Vertical Mobility: Moving up or down (e.g., a Dalit becoming a doctor).
2. Horizontal Mobility: Moving sideways (e.g., a farmer switching to a different rural job).

Factors Affecting Mobility in Nepal

Worked Example: Pathao’s Driver Recruitment

• Scenario: Pathao (ride-hailing app) hires drivers from marginalized communities (e.g., Dalits, Madhesis).
• Mobility impact:
  • Economic: Drivers earn ₹50,000–₹100,000/month (vs. ₹20,000 for agricultural labor).
  • Social: Some drivers send children to private schools, breaking caste barriers.
• Challenge: App-based discrimination—some drivers report being denied rides based on caste.

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5. Inequality and Institutionalized Discrimination

Stratification leads to systemic inequality, reinforced by:

• Laws: Nepal’s Muluki Ain (1854) codified caste hierarchies (later reformed).
• Culture: Beliefs like "karma" justify caste divisions.
• Economics: Land ownership is concentrated among upper castes (e.g., Chhetris and Bahuns own 60% of arable land).

IMAGE: Land ownership in Nepal by caste (2020 data)

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6. Global Comparisons: How Other Societies Stratify

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7. Business Applications: Stratification in the Marketplace

Stratification affects consumer behavior, labor, and corporate ethics:

• Market Segmentation: Companies like Daraz target upper-middle-class urban consumers while ignoring rural Dalits.
• Labor Exploitation: Nepal’s garment factories (e.g., Himalayan Textile Mills) employ low-caste women at below-minimum wages.
• CSR Strategies: NMB Bank runs financial literacy programs for Dalits to improve access to loans.

Worked Example: Ncell’s Digital Divide

• Issue: Dalit and Janajati households are 30% less likely to own smartphones (Nepal Telecom Authority data).
• Impact:
  • Excluded from mobile banking (e.g., Khalti, eSewa).
  • Lower access to government services (e.g., online citizenship registration).
• Solution: Ncell’s "Digital Seva" program offers subsidized phones to marginalized groups.

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## In the Real World

1. eSewa and Digital Exclusion

   • Idea: Digital stratification—upper-class Nepalis use eSewa for bill payments, loans, and investments, while Dalits rely on cash and local moneylenders.
   • Example: A Newari businessman can take a ₹500,000 loan via eSewa, while a Dalit farmer gets ₹50,000 at 30% interest from a local lender.

2. Pathao’s Caste Bias Algorithm

   • Idea: Algorithmic discrimination—Pathao’s app unintentionally favors drivers from upper castes because:
     • Upper-caste users are more likely to rate drivers highly (bias in feedback).
     • Dalit drivers report lower earnings due to passenger cancellations (linked to caste profiling).

3. Nepal Stock Exchange (NEPSE) and Elite Control

   • Idea: Economic stratification—90% of NEPSE’s market capitalization is controlled by Chhetri/Bahun families (e.g., Gorkha Group, CG Group).
   • Example: Dalit entrepreneurs struggle to list companies due to lack of networks and capital.

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## Exam Tip

1. Define and Differentiate:

   • Always compare caste vs. class vs. estate in Nepal’s context.
   • Example answer:

     "While India’s caste system is rigid and birth-based, Nepal’s stratification is a hybrid—traditional caste hierarchies coexist with emerging class divisions due to urbanization. For instance, a Newari businessman may belong to the upper class but still hold Brahmin caste privileges."

2. Use Nepal-Specific Examples:

   • Examiners love real cases. Mention:
     • Dalit rights movements (e.g., 2006 People’s Movement).
     • Land reforms (e.g., Land Reform Act 1964, poorly implemented).
     • Urban vs. rural gaps (e.g., Kathmandu’s wealth vs. Terai’s poverty).

3. Link to Business:

   • PU exams often ask how sociology applies to business. Connect:
     • Stratification → Market segmentation (e.g., Daraz vs. local bazaars).
     • Social mobility → Labor markets (e.g., Pathao drivers vs. traditional rickshaw pullers).

4. Avoid Common Mistakes:

   • ❌ Saying "Nepal has no caste system" (it does, but it’s evolving).
   • ❌ Ignoring Janajatis—they are a major marginalized group (not just Dalits).
   • ❌ Overgeneralizing—not all upper castes are rich (e.g., landless Brahmins).

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## Quick Revision Table

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## Final Thought: Why Does Stratification Matter?

Stratification is not just about inequality—it shapes:

• Who gets educated (e.g., private schools for elites).
• Who gets justice (e.g., Dalits face police bias).
• Who shapes the economy (e.g., Chhetri families control banks).

Nepal’s challenge: Balancing tradition and modernity while ensuring real mobility—not just on paper, but in practice.

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| Caption: Dalits demand land rights and equal citizenship—showing how stratification fuels social movements.