Yesterday, I
suggested 10 illustrative farm level reforms that need to be implemented "urgently,
vigorously, simultaneously", along with the necessary policy level and
social level reforms to have a positive structural shift in the conditions of
the farmers in India. It is critical for ensuring sustainable higher economic
growth and realization of the objective of self reliance.
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-reliant - financially secure and economically viable.
Unfortunately, the farmers have also been quite satisfied with occasional doles
and have not been seeking redemption from slavery.
The recent episodes of loan waivers, interest subventions, hike in MSP etc
are nothing but the new blanket and packets of sweets offered to the farmers so
that they survive the chilly winter. Anyone assuming it to be anything more
than that is seriously mistaken.
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 an inwardly oriented economy like India can
consistently grow faster.
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.
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
implementing the following five policy level measures:
1. Exit all industrial and banking
activities and actively undertake agricultural activities. It should 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.
2. 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.
3. 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. Besides, it may
acquire farm assets, especially rice farms, overseas to reduce water intensity
of Indian agriculture.
4. Encourage various states to make
bilateral or multilateral agreements for procurement, processing and trading of
farm produce and movement of labor within states.
5. Nationalize all rivers. Develop
a national water grid. 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 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.
Social reforms
The disproportionate rise in aspirational consumption;
distortion of social customs (especially marriage, death, birth) for the sake
of vanity, ignorance, and misguidance; rise in crime and litigation expenses;
rise in cases of chronic diseases and hence prohibitive healthcare expenses
form an overwhelming part of "farmers' debt". This debt usually has
nothing to do with farming activity. This is in fact true for a large majority
of urban poor and lower middle class people also. To cure this problem on
sustainable basis, it is important that economic reforms are implemented with
social reforms.
The social initiatives like focus on cleanliness, cooking gas
connection to BPL families, medical insurance, etc are commendable,. But what
we need is a social renaissance. Small correction and incremental improvement
might not be enough given the serious nature of the problem, in my view.
I am not a social scientist. I may therefore not be an
appropriate person to suggest the steps that could be taken within the Indian
sociological framework. But this does leaves me at freedom to throw some
thoughts that may not belong to the box. I would sugegst the following specific
programs at social level:
(a) The government should
take strong affirmative steps to eradicate social distortions that have crept
in over a period time in our social, religious and cultural events.
To begin with the government should totally nationalize the
religious part of the birth, death and marriage ceremonies. The government
should appoint qualified religious persons (QRP) who can perform these
ceremonies at the designated venues established by government in every Block of
the country. All the expenses like salary of QRP, cost of performing the
rituals, food offered to QRP, cost of feeding upto 20 close relatives of the
person for whom the rituals are being done, etc. should be borne by the government.
Special officers may be appointed to supervise all such ceremonies and issue
certificate (Birth, Death, Marriage) on the spot.
The government should actively discourage profligate spending on
the social part of these events. All expenses on marriage & birth related
parties and social functions relating to death, may be taxed @100%. Meaning, if
anyone wanting to spend Rs10,00,000 on marriage party of his/her child, he/she
shall be required to pay an equivalent amount as tax. This money may be used exclusively
for performing the religious ceremonies stated above.
(b) A dignified birth and
death shall be made fundamental right of every citizen.
In case of birth, the government should assume responsibility of
the child from the conception stage, for upto two children for each parent.
This includes good diet for mother, medical tests, medicine, delivery expenses
and immunization of the child. This should be done on a global standard basis
not the way typical government medical facility is run by the government. In
case of death, the final rights of the deceased should be performed in a
dignified manner, as per his/her religious traditions. This should apply to all
unclaimed and unidentified bodies also.
The insurance companies may be directed to make the claim
payments on the spot when the final rituals are done on 13th, 17th or 40th day
as the case may be, in cases where the deceased's life was insured, either
individually or under some government group scheme. The corporates may be
required to fund this initiative under their CSR obligation.
(c) All regular visitors
to the holy shrine of Mata Vaishno Devi in Jammu, who are more than 50years of
age, would vouch that the assigning the administration of the shrine to an
independent Board in
1986 has led to dramatic improvement in the management and infrastructure in
and around the Shrine. No one's religious feelings have been hurt and the
number of pilgrims visiting the holy cave has multiplied exponentially.
The government may consider constituting an autonomous
constitutional body like Election Commission to take over the management and
administration of all places of worship in the country to put an end to rampant
cases of exploitation, mismanagement, money laundering and other disputes,
encroachment of public land, environment degradation, and promote secularism,
brotherhood, tolerance etc.
A separate assembly of religious leaders, holy men for each
religion may be formed. This assembly may be given the task to reevaluate all
Holy Scripture, and find if there is any need to reinterpret the scriptures in
the light of modern day circumstances and realities. The religious leaders
should be requested to weed out the redundancies and misinterpretations, so
that no one manipulates the religious sentiments of the people in the name of
scriptures and divine mandate. The assembly should also frame a code of conduct
for all people responsible for helping people with their religious ceremonies
and duties. For example, the Hindu assembly may want to ban flowing the last
remains of dead people in holy rivers to save them from dying. The ashes may be
used for making bricks that can be used to build places of worships and houses
for the poor. It may also encourage people to use electronic or gas based
cremation, instead of wood pyres. Alternatively, each family member of the
deceased may be required to plant two trees each and take care of it till it
grows to become self-sufficient.
These steps, if taken, may make the life of poor (both rural and
urban) materially comfortable and substantially increase the happiness quotient
of the country, in my view.
These thoughts and suggestions are nothing new. I have been
presenting this to the concerned authorities and to the readers (through this
post) frequently. I promise to keep pressing with this in future also, till I
see some progress on this.
Readers' comments and views are welcome at
vijaygaba.investrekk@gmail.com
