"The best revenge is to
be unlike him who performed the injury."
—Marcus Aurelius (Roman,
121-180)
Word for the day
Interditate (v)
To interlock, as or like the
fingers of both hands.
Malice towards none
What kind of government do
we have?
(a) Capitalist
(b) Socialist
(c) Communist
(d) Opportunist
(e) None of the above
(f) Mix of all of the above
First random thought this morning
In past three years, many
sections of the Indian society have seen rise in agitation. Youth, farmers,
religious minorities, religious majority, armed forces, media, traders, industrialists,
bankers - all have been quite restive.
The factors could have been
varied. For example, poor monsoon for two years, abolition of large currency
notes, stricter compliance norms, demand slowdown, GST implementation, rise in
cross border threats, authoritarian disposition of the leadership, rise in
assertiveness of fringe elements within religious communities, and fear of
marginalization amongst regional parties, etc. But the fact is that an average
Indian is far more agitated today, that he/she was three years ago.
The moot point is whether this
agitation will give rise to a new vibrant India or dissipate India's energy and
push us back by couple of decades!
Farm sector reforms - 2
There was this feudal lord, who had enslaved a number
of peasants on different pretexts. He would make them toil hard the whole day
and give two inadequate meals to survive.
Occasionally, on festivals,
birthdays of his children, his marriage anniversary, and death anniversary of
his parents, he would treat them with a good meal and sweets. Once in 3-4yrs,
during winters, he would give them new blankets so that they do not die of
cold. In return, the bonded peasants were expected to hail him as protector and
great benefactor of the poor.
No one ever dare ask for freedom
from bondage. No one ever considered freeing these poor enslaved peasants.
The condition of Indian farmers is
no better than those bonded labors in the story stated above. Various
governments have been exploiting them, giving occasional doles and expecting
favors in the form of votes.
No one has considered making these
farmers self-dependent and economically viable. Unfortunately, the farmers have
also been quite satisfied with occasional doles and have not been seeking
redemption from slavery.
The recent episode of loan waiver
is nothing but the new blanket given to farmers so that they survive the chilly
winter and vote for the incumbent governments. Anyone assuming it to be anything
more than that is seriously mistaken, in my view.
I believe that this is the primary
reason for Indian economy not being able to grow faster on sustainable basis.
Unless, two third of the population earns enough so that it can adequately consume,
save and invest - it may be actually foolish to believe that a inwardly
oriented economy like India can consistently grow faster.
As suggested yesterday, a
sustainable improvement in Indian farmers' conditions is possible only under a
comprehensive rural development mission. I presented my suggestions for one
aspect of this mission yesterday (see here). Today I am presenting my thoughts on the reforms
needed on the Policy level.
Since independence the government
has focused on development of industrial infrastructure in the country. It has
actively participated in the endeavor through a large number of public sector
enterprise; besides offering a myriad tax and other concessions to the private
entrepreneurs.
Now, the country has a reasonably
strong industrial base. Many of our industries are globally competitive. We
have a strong set of entrepreneurs and risk takers.
It is therefore high time when the
government should reset its priorities and turn its primary focus on
agriculture.
To begin with, as a matter of
policy, the government should exit all industrial and banking activities.
Instead of sitting in Krishi
Bhawan and making plans, the agriculture minister of the country should step
out, take all state agriculture minister along and toil on the fields.
Firstly, the government should
actively take agricultural activities - develop barren lands; develop water
bodies and irrigation facilities; develop and use technology for enhancing
productivity; give employment to landless farmers; take risk with new
technologies & crops; partner with marginal farmers in consolidating their
land and do farming on that land - just the way it undertook industrial
activities immediately after independence. The minister should be made
accountable for making the endeavor remunerative.
It has taken seven decades for
Indian industries to reach a stage where the government can consider fully
exiting the industrial activities. It may take 2-3 decades for Indian
agriculture to reach a stage where the government will be able to exit farming
activities completely, in my view.
Please note that at this point in
time, I am not interested in engaging in debate whether the government's
industrial policy was appropriate in the first place. I am also not suggesting
nationalization of agriculture sector. I am just saying that the government
should undertake the activity on commercial basis to provide the sector with
much needed escape velocity in terms of capital, technology, and risk taking
capability.
Secondly, the government should
undertake on mission basis the task to reskill of underemployed farmers and
farm labor. The farmers and their family members may be trained as dairy
workers, domestic help, nurses, tourist guides, artisans, etc. Expecting
construction sector to absorb all surplus farm labor is a bad idea, in my view.
Thirdly, the government should
consider developing at least 5 very large special agri export zones in rocky
and desert areas of central and western India and undertake export of farm
produce as a commercial activity. These zones may be developed in private or
joint sector.
Fourthly, the government may
consider acquiring farm assets, especially rice farms, overseas to reduce water
intensity of Indian agriculture.
Fifth, various states of the Union
may be allowed to make bilateral or multilateral agreements for procurement,
processing and trading of farm produce, movement of labor
Last, but not the least,
nationalized all rivers, set up a national water regulator (commission) who
shall work out water sharing formula for all states and union territories every
three year and maintain adequate provisions for managing droughts.
...to continue next week
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