Hi,
Rajiv Malhotra's article as suggested by Rajendraji gives pretty good overview of the subject. Inception of castes in ancient cultures and formation of social groups sharing similar interests today can be explained scientifically i.e. on economical and psychological basis (encompassing seemingly independent factor 'religion'), as is brilliantly explained by two Rattans
I agree that similar social hierarchy can exist in other societies as well, getting more or less sublime form depending on how educated and liberal the society is. Though, classification of people based on ethnicity, color and profession in developed societies can’t be called ‘caste’ in technical terms, this kind of implied social structure affects mindset and working of society in similar way as caste-ridden societies but, of course, in milder form. Education, merit, financial status and legal rights can certainly blur these boundaries in terms of explicit social dealings but that doesn’t always have similar affect in people’s minds. But that’s best one can expect from eugenic factors like education etc. the remaining problem falls in realm of individual’s conscience.
Today, everybody agrees that Indian caste system is curse on society and must be removed. Agreed! But there is more to it. Having agreed that something is bad the next natural step is to take care of it. That process involves discussion, analysis of history (because those who don’t know it are condemned to repeat it

), planning, logistics and implementation.
A specific historical question one can ask is: how this cumbersome caste system got caste(d) in rigid form as we see it today while earliest ritual texts like Rgveda mention caste system in completely different context? Manu’s code defines 4 classes -Brahmins, Kshatriya,Vaishya and Shudra. First of all, this was not rigid system and there are numerous stories where caste system didn’t hinder individual in fulfilling his/her ambitions e.g. Balmiki, Ved-Vyasa etc. These texts are highly symbolic e.g. word “varNA” doesn’t mean ‘color of skin’ but ‘color of aura’ and this classification of people also had psychological element associated with it. Brahims representing Sattva state of mind; Kshatriya and Vaishya for Rajas state and Shudra for Tamas state. Brahims used to wear white clothes (so that any smallest inpurity can show up), Kshatriya used to wear red clothes(symbolic of blood), Vaishya –yellow clothes(turmeric, symbolic of trade) and Shudra –black clothes. So this ‘varNA’ might also have some meaning associated with clothes. These colors also represent psychological states and in that line few argue that classification was based on personal qualification and profession not birth, which later on got degraded to based on birth.
Real ramification of classes began later. Later texts (Smriti) talk of stories where caste is more visible. There is a proposition which many schools hold on to “whenever there is any doubt or question regarding any issue what so ever Shruti(Vedas) has authority over Smriti(Puranas, Upnishads, Mahabharta etc)”. But caste system didn’t remain like as defined in Shruti and crystallization began in Puranic period and early ADs. As an example, how Untouchables (dalits) originated when there is no word for that in Vedas? May be Buddhism can shed some light. Dr. Ambedkar said
“The Broken Men hated the Brahmins because the Brahmins were the enemies of Buddhism and the Brahmins imposed untouchability upon the Broken Men because they would not leave Buddhism. On this reasoning it is possible to conclude that one of the roots of untouchability lies in the hatred and contempt which the Brahmins created against those who were Buddhist.”
Some internet sources say that a caste similar to Untouchables existed in China, Japan and Koriea too, so that seems to endorse the statement. [As a digession: In movie ‘Seven Samurai’ seventh samurai was not samurai but a farmer and he was treated with prejudices so similar strata of classes are visible there]
Actually, division of society based on labor wasn’t unique feature of Ancient India only but other civilization had it too. Caste system was present in Judism, castes like Cohanim, Levites and Israelites were there but they weren’t very rigid. Priest class was present in almost every civilization and they had special rights. Like Druids in Celts, the Magi of the Persians and there was priest caste in Egypt too. Medieval Europe had priests, nobles, farmers etc. [Some people even try to relate this caste system with Indian through Aryan Invasion Theory, Georges Dumézil’s trifunctional hypothesis is a preposterous effort in that direction,
http://en.wikipedia.org/wiki/Trifunctional_hypothesis ]
Actually “jati” system -division of society based on labor had similar groups in medieval Europe, called “Guilds” which were destroyed by onset on Industrial Revolution
http://en.wikipedia.org/wiki/Guild
Colonial era had its share too in making system more rigid. And more harm is done by portrayal of caste system in west in negative light by racist scholars serving the purpose of Raj i.e. belittling the ruled society to make it easy to rule. Today this job has been delegated to Indian leftists and proselytizing agencies which convert untouchables. Few centuries back when Presbyterian was looked down by Roman Catholic some East Asian should have gone there and coax them to convert to Buddhism
I believe that caste system was sensible idea in ancient time but its current form is due to various unfortunate courses history took. It’s easy to criticize that now because of all the “hindsight” we have but when Manu wrote his verse may be he didn’t have enough “foresight”. 5000 years are too long for any kind of foresight.
Anyway, that’s all….. thanks
Vinod
PS: Anuj, I couldn’t resist, your comparison of Indian caste system with Brave New World is childish. In BNW, castes alpha, beta and gammas are genetically tempered before birth and there are made like machines to serve their purpose by making them capable of enjoying what they are doing. And this is done to control society by a totalitarian ruler. While our caste system was meant to serve purpose of harmonious society.