Wednesday, December 12, 2007

Substantiating the growth steam of India- I

Continuing with my previous post Diversity, I would discuss here the diversity of India in many fields like economy, income, living standard and growth.
At the time when reporters are raving about India’s rapid economic growth, the billion dollar mergers and acquisitions, the every year of accelerating average $12 billion Foreign Portfolio inflows, and the new heights that Sensex scales everyday, I wonder about the another face of India; Is the cursory examination of these much hyped about growth determinants enough, How about the slums of the cities, the villages and sub urban areas of India where a large population does not have even a day’s meal to eat, how about the increasing rate of farmer suicide or the Hafta which small shopkeepers and businessmen have to pay to the gangsters…..

I’ll evince my views on few of these points:
[These points are collected from different sources (newspapers, expert’s perspectives etc) combined with my own views]

Firstly, the most basic issues; the key areas like irrigation, agriculture, education and healthcare

· Instead of more than doubling the spending by Government on these areas, these are still at a very unsound stage. The large portion of two third of the population is still dependent on the mercy of the monsoon. Despite India being the top in Asia and third in world in terms of intangible assets; like intellectual properties and talent, many rural people are not able to access and tap the technological advancements. If the nation has to combat effectively with poverty, the solution is not the subsidies and handouts but rather the execution of a concerted plan to improve the productivity, profitability and sustainability of the small farmers. Several studies have proved that GDP growth originating from agriculture is at least twice as productive in reducing poverty as from non-agricultural industries.

· The state of infrastructure –roads, power, housing and office space, drinking water and other municipal services- despite the 40%+ growth in tax revenues are still dismal.

· Some of the state governments (like UP) are coming up with schemes like mid day food, providing uniforms, books, scholarships etc to fillip the level of primary education, but are these schemes actually serving the purpose. First of all a large part of the funds allocated flies out at it changes hand from one bureaucrat to another. Secondly, there are families in villages where the members are dying out of poverty. Their children join primary schools just to avail the facilities. Now even if these children complete their primary studies, they don’t have essential social conditions, enough money or facility to continue with their education.

· Not all farmers are equipped with modern techniques of farming. Moreover, because of intermediaries the farmers get only a paltry amount of the price of their production; resulting in the poor hinterland residents.

· In some areas like UP the cash crop like sugarcane is almost collapsing. The slow growth rate of agriculture combine with high growth of population has led to increasing landlessness, joblessness and pauperisation.

So, what could be the solution? Some of them could be as under:

-Check on bureaucracy, government should make sure that the allocated funds are going in proper hands.

-Introduction of vocational courses. The short term training programs will enable the less skilled people to be employable. The institutions like ITIs should be enlarged in number and should be improved on quality.

-Introduction of training programs/workshops for farmers, to make them aware of modern techniques and also equipped them with the knowledge of the latest market conditions and best possible moves.

-Though the emergence of organised retail is hampering the presence of local kirana stores, it is improving the condition of farmers in the areas where the stores are getting set up (like in Maharashtra). They provide farmers the best quality seeds, farming techniques, and eliminating the role of intermediaries.

-Government is also setting up some special marketplace for the farmers where they can directly sell their products. This kind of project is already being exercised in MP; it’s expansion in other parts of India can be very useful for the economy.

-Focus on management of infrastructure; this will create employment also. Government has allocated Rs 16680 crore under the seventh phase of NHDP program. It should come up with such projects in other infrastructure facilities also.

-Quality primary education should be provided to the poor people by offering more attractive packages to the teachers, making the teaching process more stringent. In Kerala, the primary government teachers were provided with lucrative offers, which resulted in better teaching effort and came up with Kerala as the state with highest literacy.

-Instead of allocating massive funds and scholarship, government can tie up with some private schools and provide vouchers to the poor children. These children can use these vouchers as the fees and thus can get quality education in competitive private schools.

There are several ways to improve the system, and as being acclaimed worldwide, there is no dearth of brains in India. The only thing necessary is the proper execution of the ideas coming out of these brains. I hope that the India 2020 dream of our esteemed former president and the great scientist Mr Abdul Kalam will get materialised and the whole India will be able to taste the fruit of growth which at present is available only to a part of the nation….

2 comments:

Unknown said...

I do agree with you Neha regarding the problems but I do not give complete mandate to your solutions.
As far as the action to be taken you have missed the basic element in it.Making the people responsible.Though Govt. had implemented many programs but with less success, the reason cited by you is correct but implementation of any plan for the people cannot be a complete success till people are involve in it.Thus its not only the responsibility of Govt. but also the responsibility of public.Corruption grows where ignorance grows.So making people aware of their rights and demand is the basic need of today.Naturally Govt. or bureaucrats would not like make public aware of their rights because it would hamper their black money flow.So who will then do it?The solution is again the people-people who know.Thus there are two categories-people who know and people who do not know.People who know should take initiative to make the public aware.There are some NGOs working on it,but not all NGOs are sincere.So, if a single learned person can make at least 1 person literate and aware then I think the problem will be solved.Because today about 60% of the public is educated,so going by statics it comes that a single person has to teach less than a single person!Adding to it,their are many programs of Govt.,just to take advantage of it and make them a success people should be aware.But the problem will still be not solved here.To eradicate it completely we have to ensure that its practical.So people like you and me have to take initiative to first awake the category of people who know,then they in turn guide the category who do not know.Lets change our mind set first,half of the problem will be solved when we not only stand with this cause but also try to give effort to make it a success.Now after this activity,if your solutions are implemented,surely they will be a huge success.

Neha said...

Thanks Sujeet for the suggestion. I appreciate your views. But tell me one thing, How often do u come from US to teach an illiterate farmer of your hometown? n even if you try and make them aware, how effectively do they grasp and implement the knowledge given by you?
I know the condition of a few NGOs in UP...these are all the victim of the currupt bureaucracy there, n the so called literate and influential people in those areas actually rule over these NGOs. A single person;you or me alone; can't transform the system allover. Power is needed to combat it.
Have u ever contemplated why not major private sector companies are prevalent in UP/Bihar(leave Noida as it's NCR region), Why the Reliance fresh outlet was shut out in Lucknow... You are right that people can change the system, but the condition needed is that system should be supportive and power should be given to the people who know...and it all depends on government.
Secondaly to question the officials, we have RTI act and it has worked very well in few cases(I'll talk about that in my next posts), but for that, as suggested by u, awareness is the must..