"A mind all logic is
like a knife all blade. It makes the hand bleed that uses it."
—Rabindranath Tagore
(Indian, 1861-1941)
Word for the day
Epigone (n)
An undistinguished imitator,
follower, or successor of an important writer, painter, etc.
Malice towards none
By agreeing to possibility
of a non-congress PM, has INC accepted RaGa is a weak candidate?
First random thought this morning
In past one year, the Supreme Court has considered many matters
relating to civic administration, exams, environment, religion, faith, movies,
personal conduct of people, etc.
Isn't it failure of our democratic system that the things that
should have been governed by the local administration, community leaders,
religious leaders, and the government are being frequently referred to the
Supreme Court?
The worst part is that all parties to the issue involved are
treating the Supreme Court's interpretation of the issue and directions in the
matter as per their convenience. Most court decisions have therefore become
excuse for inaction.
Farm sector: Policy level refoms
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.
For sustainable improvement in the
conditions of the rural populace, especially farmers, an integrated reform
package that deals with farm level reforms, policy level reforms and social
reforms is needed. Yesterday, I presented some ideas for farm level reforms.
The following are some of my ideas
for the policy level reforms. These ideas are based on the insights gained
through numerous interactions with the farmers, organizations and individuals
working in rural areas for welfare of the farmers, local administrators etc.
Policy level reforms
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 meet this end, the government may consider, as a matter of
policy, the following:
1. Exit
all industrial and banking activities.
2. Actively
undertake 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.
3. Undertake,
on mission basis, the task to re-skill the 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.
4. Develop
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 public, private or joint sector.
5. Acquire
farm assets, especially rice farms, overseas to reduce water intensity of
Indian agriculture.
6. Encourage
various states to make bilateral or multilateral agreements for procurement,
processing and trading of farm produce and movement of labor within states.
7. Nationalize
all rivers, set up a national water regulator, who shall work out water sharing
formula for all states and union territories every three year and maintain
adequate provisions for managing droughts. The idea should be to ensure that
not a drop of river water flows into sea from India.
It has taken seven decades for
Indian industries to reach a stage where the government may 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.
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.
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