Tuesday, May 18, 2010

MGNREGA in Dungarpur, Rajasthan under scanner


The District Administration of Dungarpur has found embezzlement of MGNREGA funds in many of the road construction work and other activities. A sum of Rs. 58,35,766 has been recovered from the Jharni Gram Panchayat, which comes under the Simalwada Panchayat Committee. A monitoring and evaluation team was formed under the District Collector Purna Chandra Kishan to check mismanagement of MGNREGA funds. The team has been looking into the technical and accounting aspects of the work done so far. It has been learnt that more funds are likely to be recovered from the former Sarpanch and the contractors/ suppliers.

The District Collector Purna Chandra Kishan has informed that during the evaluation, it has been found that the work done under MGNREGA have not been done as per the rules. The 2 monitoring teams sent have found that in 16 different work, that amounted to Rs. 63,26,110, payments were made without getting the requisite material from the contractors and without the work being completed. Vouchers were fudged and contracts for supply of materials were given to near and dear ones. The evaluation team has accused Jaisha Bhai Domar, Manilal Prapat, Maganlal Baranda and Gautamlal Baranda for making payments to the contractors without getting the construction material.

The evaluation report has mentioned the names of Ramlal Domar, Pankaj Kumar, Shantilal, Manoj Aamliya Rastapal, Hemant Kumar Shah, Shakarlal and Mansingh Domar from whom the siphoned off funds of MGNREGA would be recovered.

The Collector Purna Chandra Kishan has given the instruction that if funds are not repaid back within a week, FIRs would be made against the accused i.e. the former Gram Sarpanch and the suppliers.


Further readings:

Poor people unite against corrupt sarpanches,
http://www.im4change.org/articles.php?articleId=777

The system strikes back by Vidya Subrahmaniam, The Hindu, 17 December, 2009,
http://www.hindu.com/2009/12/17/stories/2009121756000900.htm

We will not sit quiet on social audit issue in NREGS, Aruna Roy tells Gehlot government by Sunny Sebastian, The Hindu, 17 December, 2009,
http://www.hindu.com/2009/12/17/stories/2009121761471000.htm

Violence and threats bring a government to its knees by Vidya Subrahmaniam, The Hindu, 16 December, 2009,
http://www.hindu.com/2009/12/16/stories/2009121655370900.htm

Planning Commission drafting reforms for NREGA, Livemint,20 October, 2009,
http://www.livemint.com/2009/10/20225136/Planning-Commission-drafting-r.html

Social audits lead to action against corrupt officials,
http://www.im4change.org/articles.php?articleId=251

Status of NREGS in Bhilwara, Rajasthan during 2008-09,
http://nrega.nic.in/writereaddata/citizen_out/Dist_MPR_emp_reg_2724_0809.html

Bhilwara Social Audit, Association for India’s Development,
http://aidindia.org/main/content/view/1094/1/

Social Audit in Rajasthan Undertaken by People, October 12, 2009,
http://www.thesouthasian.org/archives/2009/social_audit_in_rajasthan_unde.html

How a social audit makes people accountable, 5 October, 2009,
http://business.rediff.com/column/2009/oct/05/guest-how-a-social-audit-makes-people-accountable.htm

12 FIRs in Bhilwara after social audit of NREGS, 12 October, 2009, The Times of India,
http://timesofindia.indiatimes.com/city/jaipur/12-FIRs-in-Bhilwara-after-social-audit-of-NREGS/articleshow/5113274.cms

NREGS under scanner in Bhilwara by Sunny Sebastian, The Hindu, 10 October, 2009,
http://beta.thehindu.com/news/states/other-states/article31998.ece#

Audit of National Rural Employment Guarantee Scheme, 7 October, 2009,
http://www.cainindia.org/news/10_2009/audit_of_national_rural_employment_guarantee_scheme_.html

NREGS audit a relief to poverty-stricken by Narayan Bareth, The Asian Age, 12 October, 2009,
http://www.asianage.com/presentation/leftnavigation/news/india/nregs-audit-a-relief-to-poverty-stricken.aspx

Tuesday, May 4, 2010

Revisiting Malthus and his critiques

Abstract: The world is currently watching the rise of Neo-Malthusianism, which wants us to believe that climate change and agricultural production are going to be adversely affected by rising population pressure. In this context, an attempt has been made to understand the dogma present within the Malthusian framework. The purpose is to critique Malthus by taking note of the work done by Danish feminist economist Ester Boserup. The article is based on a survey of existing literature.

Rise of Neo-Malthusianism in the North
During January, 2010, I got the opportunity to listen to an interesting interview of Betsy Hartmann, which was conducted by Dr. Amit Sen Gupta. The interview appeared at http://www.newsclick.in/international/betsy-hartmann-climate-change-politics-and-overpopulation-propoganda. Author and activist Betsy Hartmann talks about how the issue of overpopulation is entering the climate change discourse. She had the experience of working in the area of women's health and population.

During the interview, one comes to know that in the United States (US) there has been an attempt recently to link the issue of population explosion to climate change. The population bogey has been brought back into the population discourse. In her interview, Betsy Hartmann says that there has been a resurgence of the population control ideology in the US. This is happening in the spheres of environment and family planning movements. The argument, which is provided, is that overpopulation is the main cause behind climate change. Therefore, family planning either of the voluntary type or the Chinese type is prescribed. However, this could be detrimental to reproductive rights and also detrimental to the US in coming up with a good climate change policy, argues Hartmann. Some of the population lobbies are demanding for increased assistance for international family planning. A fear surrounding climate change due to overpopulation is being created. Climate change is also getting associated with the issue of national security. Some lobbies are arguing that climate change would lead to overflowing of climate refugees into the US borders. This would create more resource scarcity. In Africa, climate conflict is expected particularly in Darfur and Sudan. The Malthusian environmentalists are now using the concept of ‘population bomb’ so as to propagate such theories. Somehow the US is trying to divert the real issue that it has to cut down its own greenhouse gas (GHG) emission. Instead of blaming itself and taking necessary steps, it has started blaming the poor people in the developing world for climate change. In fact, historically, the US has been the largest emitter of GHGs. It has been argued by the population lobbies that if women have access to family planning, then climate change can be mitigated. Some lobbyists have even gone to the extent of saying that climate refugees from Bangladesh are going to enter India and they are then going to spread Islamic terror within the country. Such population lobbyists and pundits are also active in the United Kingdom (UK). Instead of investing in green technologies and other such possible solutions, these population lobbies and think tanks are asking for investing money in family planning. Women in the North are made to believe that having children is too bad for climate change.

The climate justice movement in the US is more progressive since it demands more equity and environmental justice, Hartmann says in that interview. This particular movement talks about the role of fossil fuel industry in spreading toxic pollution among the poor communities. The movement is also asking for reduction in carbon emission. Hartmann praises the 350 movement (http://www.350.org/). At the policy level, there are experts who are working on carbon capping policy. California is serious about capping carbon emissions. She warns about certain defense interests active in the US and the UK who are painting climate change as a security threat.

About Malthus and Neo-Malthusian scholars
During the time when human beings started food cultivation 12,000 years back, world population was no more than 5 million. At the beginning of the common era 2,000 years before, world population grew to 250 million. From A.D. 1 to the beginning of the industrial revolution around 1750, global population tripled to 728 million. During the next 200 years (1750-1950), an additional 1.7 billion people were added to the total population. Between 1950 and 1990, world population more than doubled to reach 5.3 billion. By the beginning of the twenty first century, the world saw a population of 6.1 billion (Todaro and Smith, 2006).

India had a population of around 336 million in 1947. The provisional results of the 2001 Census gave a population total of 1,027 million. The current population growth rate is about 1.7 percent per annum, which implies an annual net addition to India's population of around 18 million people. In the years around 1947, the fertility of an average Indian woman was nearly 6.0 live births. After rising in the 1950s and early 1960s, the national birth rate probably started to decline in the late 1960s, and in 2003 the average level of fertility came down to 3.1 live births per woman (Dyson, 2003).

After going through some of these figures, one would certainly feel that India must have been doing well in terms of reducing population growth in the recent decades. This may be because of the fear that has been generated in us that population growth is bad for the nation and its citizens. A survey of literature surrounding population and fertility control may tell us a different story.

Mohan Rao (1994) in the article titled An Imagined Reality: Malthusianism, Neo-Malthusianism and Population Myths explains the basic postulates of Malthusian theory. According to Malthus, population when unchecked increases in geometric progression, doubling every 30 to 40 years, whereas food production increases by arithmetic progression due to diminishing returns to the fixed factor—land. Growth of population is determined by the availability of food. Growth of population beyond availability of food is halted by two things: positive checks such as hunger, famine and pestilence and preventive check i.e. birth control. An increase in wages over and above the subsistence wage would be followed by rise in population till checked by poverty.

Marx believed that poverty of the laboring classes was the inevitable product of the capitalist process of accumulation and cannot be considered as a natural condition for the section of the society, unlike what Malthus proposed. In the essay titled Malthus’ Essay on Population at Age 200: A Marxian View, John Bellamy Foster (2000) finds that future improvements in the condition of society and the condition of the poor were impossible, according to Malthus. Before Malthus, it was the work titled Various Prospects for Mankind, Nature, and Providence by Robert Wallace that found population pressure resulting in resource depletion. William Godwin, who was critical of Wallace, in his work titled Enquiry Concerning Political Justice and its Influence on Morals and Happiness contended that human population growth will be determined by the conditions of wealth and wages as well as various (birth control) practices and institutions prevailing in the society. Malthus saw the fertility of the soil as subject to only very limited improvement.

In India, Annie Basant, who supported Neo-Malthusianism, was a champion of the birth control movement. Besant along with CR Drysdale founded the Neo-Malthusian League in 1877, says Rao (1994). Birth control was seen as a solution to end poverty and misery. Following the crystallization of the Theory of Demographic Transition, the Western demographers and the economists started looking at the problem of population growth resulting in poverty in South Asia. Both Ford Foundation and Rockefeller Foundation allocated huge sums of money for research and training in reproductive biology and to finance family planning programmes, finds Rao (1994). In 1952, the Population Council was established. Many of these Foundations funded reputed journals in the area of family planning. By the late 1960s, many of the United Nations agencies got involved in population control programmes in the third world countries after coming under the influence of the US.

Demographers fear that high fertility would produce low rates of saving instead of higher effective demand that can boost economic performance. Rao (1994) shows how the family planning programme, on its part, swayed from the extension education approach, to the IUCD approach, to the vasectomy camp approach, and finally to female sterilization.

For a critical review of the book titled Fatal Misconception: The Struggle to Control World Population by Matthew Connelly (2008), one can have a look at the review article titled Playing God: The Global Population Control Movement by Mohan Rao (2008). According to Rao (2008), the book shows with “meticulous attention to details of ideas, personalities and funding, how the global population control movement was created, tracing the extraordinary unfolding of population policies under the guidance of this movement, in India and China in particular”.

According to the Neo-Malthusian scholars, land scarcity combined with high rates of population growth would lead to armed conflict, says Henrik Urdal (2005) in the essay People vs. Malthus: Population Pressure, Environmental Degradation, and Armed Conflict Revisited. Urdal (2005) mentions that at the end of the 1960s and the beginning of the 1970s, a wave of Neo- Malthusian literature emerged, which predicted that the rapidly growing world population would soon exceed the resource base and lead to serious environmental destruction, widespread hunger, and violent conflicts. A renewed and more pronounced Neo-Malthusian concern over security made its inroads in the 1990s. Demographic and environmental factors were considered as major causes of conflict after the end of the Cold War. However, the Neo-Malthusian paradigm was challenged by three arguments. Firstly, resources are not scarce at the global level and there won’t be any resource crunch due to population growth. Secondly, if resources are getting scarcer, their prices would move up, thus lowering their demand. The market mechanism will help in tackling the problem of resource scarcity. Thirdly, it is the abundance of valuable natural resources, rather than scarcity that leads to violent conflict.

Urdal’s (2005) study explains the Homer-Dixon model, which proposes that the resource scarcity and conflict scenario is more applicable to developing countries, owing to generally lower capacity to deal with environmental issues and less ability to cope with and adapt to scarcity.

The paper titled Economic Growth and the Demographic Transition by David E. Bloom, David Canning and Jaypee Sevilla (2001) finds that the debate on population growth versus economic growth has under-emphasized a critical issue, the age structure of the population (that is, the way in which the population is distributed across different age groups), which can change dramatically as the population grows. Since people's economic behavior varies at different stages of life, changes in a country's age structure can have significant effects on its economic performance. Nations with a high proportion of either children or aged people or both are likely to devote a high proportion of resources to their care, which tends to depress the pace of economic growth. A large share of resources is needed by a relatively less productive segment of the population, which can inhibit economic growth. By contrast, if most of a nation's population falls within the working ages, the added productivity of this group can produce a "demographic dividend" of economic growth, assuming that policies to take advantage of this are in place. The combined effect of large working-age population and health, family, labor, financial, and human capital policies can create virtuous cycles of wealth creation.

The paper by David E. Bloom, David Canning and Jaypee Sevilla (2001) shows that in the late 1940s, conservationists saw excessive population growth as a threat to food supplies and natural resources. Concerns about the impact of rapid population growth and high fertility led to widespread implementation of family planning programmes in many areas of the developing world. In 1968 Paul Ehrlich released his influential book "The Population Bomb". In the book Ehrlich warns of the mass starvation of humans in 1970s and 1980s due to overpopulation and advocates immediate action to limit population growth. Unfortunately, the prediction of Ehrlich did not realize thanks to the success of green revolution (originally an initiative of the Rockefeller Foundation), which made countries like India self-sufficient in foodgrain production.

Close association between climate change and agricultural production
Much of research work has taken place on how climate change can affect agricultural production and vice-versa. The study by Sushila Kaul titled Bio-Economic Modelling of Climate Change on Crop Production in India reveals that excessive rains and extreme variation in temperature would affect the crop (rice and jowar) productivity adversely thereby affecting the incomes of farming families in a negative manner. The study Global climate change and agricultural production captures the indirect effects of climate change on agriculture. These effects, which are mostly quoted by the media include:


* the overall predictability of weather and climate would decrease, making the day-to-day and medium-term planning of farm operations more difficult;

* loss of biodiversity from some of the most fragile environments, such as tropical forests and mangroves;

* sea-level rise (40 cm in the coming 100 years) would submerge some valuable coastal agricultural land;

* the incidence of diseases and pests, especially alien ones, could increase;

* present (agro) ecological zones could shift in some cases over hundreds of kilometres horizontally, and hundreds of metres altitudinally, with the hazard that some plants, especially trees, and animal species cannot follow in time, and that farming systems cannot adjust themselves in time;

* higher temperatures would allow seasonally longer plant growth and crop growing in cool and mountainous areas, allowing in some cases increased cropping and production. In contrast, in already warm areas climate change can cause reduced productivity;

* the current imbalance of food production between cool and temperate regions and tropical and subtropical regions could worsen.

According to Climate change: Building the resilience of poor rural communities by International Fund for Agricultural Development (IFAD),
http://www.ifad.org/climate/factsheet/e.pdf:

• Between 15 and 37 per cent of land plants and animal species could become extinct by 2050 as a result of climate change

• Emissions of greenhouse gases have increased, on average, by 1.6 per cent per year over the past 30 years

• Agriculture and deforestation together contribute up to 30 per cent of all greenhouse gas emissions: forests act as carbon sinks, so deforestation results in higher carbon dioxide in the atmosphere

• Recent climate changes and variations are beginning to have effects on many natural and human systems, including earlier spring crop planting at the higher latitudes in the northern hemisphere

• Yields from rainfed agriculture could be reduced by up to 50 per cent by 2020 in some countries

• In Central and South Asia, yields could decrease by 30 per cent by 2050

According to the report The State of World Population 2009 (UNFPA): Facing a changing world: Women, population and climate,
http://www.unfpa.org/swp/2009/en/pdf/EN_SOWP09.pdf:

• The temperature increase since the late 1800s may seem small—0.74 degrees Celsius—but the impact on people is likely to be profound. The impact will be even greater as temperatures continue rising, by as much as 6.4 degrees Celsius by 2100.

• Rice-growing, livestock-raising, and burning organic wastes have more than doubled methane concentrations. The use of artificial fertilizers, made possible by techniques developed in the early 20th century, has released large amounts of another greenhouse gas, nitrous oxide, into air and water.

• Since 2000, “anthropogenic” or human-caused carbon-dioxide emissions have been increasing four times faster than in the previous decade. Most of the emissions came from burning fossil fuels.

• The World Health Organization estimates that in 2000 some 150,000 excess deaths were occurring annually—in extreme heat waves, storms, or similar events—as a result of climate change that had occurred since the 1970s.

• The additional greenhouse gases that come from intense burning of fossil fuels, modern farming methods that rely on fertilizers, and the industrial use of chlorofluorocarbons, particularly in the past 40 years, have thrown the earth’s natural greenhouse effect into a state of disequilibrium. In addition, deforestation, clearing of other vegetation and the accumulation of carbon dioxide in the oceans have reduced the capacity of the world’s “carbon sinks,” which have for millennia absorbed excess carbon from the atmosphere. Less capacity to absorb carbon means there is more carbon dioxide in the atmosphere, exacerbating what now appears to be a runaway greenhouse effect.

• The ten warmest years between 1880 and 2008 are: 2005, 1998, 2002, 2003, 2006, 2007, 2004, 2001, 2008 and 1997.

• Developing countries will account for the majority of the growth in total volume of carbon-dioxide emissions related to fossil fuels from 2008 through 2030.

• Emissions to be lower in 2030 than today only in Europe and Japan, where population is now approaching or already in decline

• Global emissions of black carbon are rising fast, and Chinese emissions may have doubled since 2000.

• From 1850 to 2002, countries we now call developed accounted for an estimated 76 per cent of cumulative carbon-dioxide emissions from fossil-fuel combustion, while the countries we now call developing accounted for an estimated 24 per cent.

• Boosted by growing populations and rising affluence, the sum total of all developing countries’ emissions began exceeding the totals of all those of developed countries in 2005 and now make up 54 per cent of the total.

• In 2007, China is believed to have overtaken the United States in total carbon-dioxide emissions resulting from fossil-fuel combustion.

Some of the climate change risks according to the report The State of World Population 2009 (UNFPA) are:

• The average global temperature could rise by as much as 6.4 degrees Celsius by the end of this century.24

• As much as 30 per cent of plant and animal species could become extinct if the global temperature increase exceeds 2.5 degrees Celsius.

• One-third of the reef-building corals around the world could become extinct because of warming and acidifying waters.

• Global average sea levels could rise by as much as 43 centimetres by the end of this century.

• Arctic ice could disappear altogether during the summer by the second half of this century.

• One in six countries could face food shortages each year because of severe droughts.

• By 2075, between 3 billion and 7 billion people could face chronic water shortages.

Boserupian theory and role of population
Ester Boserup in The Conditions of Agricultural Growth: the Economics of Agrarian Change under Population Pressures, published in 1965, finds that population density compelled societies to invent new technologies in order to increase food production. She traces how agriculture moved from slash-and-burn to intensive farming with additional labour inputs. Instead of believing that agricultural methods and technology determine population, she shows that population (density) determines agricultural methods.

According to BA Datoo (1978), Boserup’s argument is an antithesis of Malthus, and that is why she regards population growth as the independent variable and agricultural change as the dependent variable. In Boserup’s view, agricultural technology is not autonomous and food production is not inherently inelastic. A certain critical level of population density is required for the emergence of social hierarchy and for feudal organization of investment in land. According to Robert C Hunt (2000), Boserup used intensification to refer to changes in fallow from long-fallow to short-fallow to annual cropping to multiple cropping.
In her article The Impact of Population Growth on Agricultural Output, Ester Boserup (1975) writes that the type of agricultural system found in a developing country is determined on the basis of how historically adaptations in agrarian techniques and methods took place in the backdrop of varying degree of population pressure. She argues that in areas with low man-to-land ratio, there exists large tracts of fallow, pasture and forest land. Overtime when the local population starts growing, more and more of this fallow, pasture and forest land is brought under cultivation. In the case of primitive (or traditional) agriculture, the only investment done to improve land conditions is by employing additional labour in the clearing of land, in the leveling and terracing of land, in supplying water to the fields etc. In periods of rapid population growth, more and more of direct labour inputs is used.

She then asks that if constraint on output growth set by the supply of arable land and capital can be solved by additional labour employment, how can there be existence of un and under-employment. She finds that it is only during slack/ lean seasons, one finds un and under-employment. During the peak seasons, it is the availability of labour supply that determines the upper limit to the area that can be sown, planted and harvested with traditional technology. It is due to this factor that there exists little or no incentive to invest so as to expand the area. However, during periods of high population growth, the supply of peak-time labour rises, which provides incentive to expand area under cultivation. Shortening or elimination of fallow as well as the extent of multi-cropping to be introduced in densely population areas are limited by the available supply of labour for peak season operations. It is due to shortage of labour during peak time that wages go up. Many who are employed in the non-agricultural activities are drawn back to agriculture during peak-time.

Fodder shortage emerges when more and more fallow, pasture and forest land is brought under cultivation hitherto used for grazing. Human consumption then move towards vegetable food and more vegetable and other cereals are grown to be used as animal fodder. In the coming decades, industry would be producing fodder, she conjectures. There is little incentive in producing surplus in areas lacking infrastructure. The rate of rural-urban migration will rise if urban sector provides livelihood opportunities and better urban real wages. However, agricultural surplus might decline as a consequence of migration.

Modern inputs like chemical fertilizer, insecticides, improved seeds, tractors, modern irrigation equipment etc. can be applied in agriculture (modern and not traditional) in areas which have better infrastructure. With the availability of modern inputs, expansion of agricultural output is no longer constrained by the supply of labour available during the peak season as in the case of traditional agriculture. However, usage of modern inputs would be profitable if the price ratio at the village level between modern inputs and marketable agricultural products is low enough.

Boserup (1975) points out that increased labour unrest and demand for land redistribution (due to inequality in land distribution and proletarization of the small peasants) may cause temporary setbacks to output growth due to civil strife, less investment in their land by owners of larger landholdings as they fear of expropriation and lower increase in output during the period when redistribution is carried out.

While commenting on the fear of food scarcity and famines that arose during the early 1970s, Ester Boserup (1979) in her review of The World Conference of 1976-World Food and Nutrition Study: The Potential Contribution of Research is critical of the way National Research Council had been thinking of increasing food production i.e. by increasing crop yields via extensive use of industrial and scientific inputs. In her view, since agricultural production in the developing countries is based on human and animal muscle power, so there is enough scope of using additional labour for more intensive cropping by moving from long-fallow systems to shorter fallow or without fallow, converting to multi-cropping instead of mono-cropping and shifting to intensive fodder production instead of pasturing. She proposes for more investment in rural infrastructure.

She finds that availability of easy food aid and low food prices in the international market owing to surplus food production in the big exporting countries (like the US, Canada and Australia) left little room for expenditure on rural infrastructure by the developing countries during the 1950s and 1960s. Many of the developing countries saw lower growth in agricultural output since they relied on cheaper imports from the developed countries so as to meet the demand of the urban consumers. Such a policy acted as disincentive for the domestic producers of food grains. Between 1968 and 1970, fall in area under wheat production coupled with poor harvests led to depletion of surplus stocks in the early 1970s. The oil exporting countries were hit due to soaring international grain prices, and they cut oil production and oil exports so as to get compensation for the increase in grain prices. The United States gained from the rise in food prices than it lost due to increase in oil prices. Poor countries like India who were dependent on both oil and food imports suffered the most. After the food scarcity catastrophe, the food importing developing countries started promoting their food production and allocated more finances for rural infrastructure.

Boserup (1979) rightly points out that the conflict of interest between the farmers in the US and the governments in the developing countries that are aiming at self-reliance in food production will continue to be an important issue in the world policy. She asks for giving food aid to the developing countries from Africa and South Asia during the times when there is harvest failure so that it doesn’t act as disincentive to domestic production and major famines are avoided.

It is also important to mention here about an interview given to Kim Ives, when former President Bill Clinton and now the UN Special Envoy to Haiti, apologized for forcing Haiti to drop tariffs on imported, subsidized US rice during his time in office. The policy wiped out Haitian rice farming and seriously damaged Haiti’s ability to be self-sufficient (see: http://www.democracynow.org/2010/4/1/clinton_rice).

Explaining the French Physiocratic School that existed two centuries before, Boserup (1983) in her article The Impact of Scarcity and Plenty on Development says that the development of the human societies depended upon the size of agricultural surplus and the Physiocrats saw population increase as a means to increase this surplus. She criticizes Malthus for suggesting that population growth would reduce agricultural surplus and cause starvation. She explains about the possible role of technology so as to escape the Malthusian population trap and finds that the Malthusian theory overlooks the impact of population growth on technological change. Unlike the negative effects of diminishing returns due to rise in population, it may happen that there is motivation for the introduction of more intensive systems in order to raise land productivity. Collective investment in physical and human infrastructure is possible with a larger population.

Boserup (1983) says that long fallow systems existed in early food producing communities in Asia, Africa and Latin America when population density was low. However, with rise in population, it becomes essential to shorten the fallow period so as to produce more. Fallowing helps in preserving land fertility, reducing weeds and plant diseases and protecting against erosion. Long-term growth of population was sustained via more land-use and more intensive cultivation.

According to BA Datoo’s (1978) review article Toward a Reformulation of Boserup’s Theory of Agricultural Change, Boserupian theory finds that change in the fallow system triggered off a whole series of technological changes. With the intensification of agriculture, vegetation becomes more grassy and the land demands more thorough preparation, due to which the digging stick is replaced by the hoe which in turn is replaced by the plough. The method of fertilization changes from ash fertilization (by burning of natural vegetation) to use of animal manure and then to use of artificial fertilizers, when the length of fallowing is reduced.

Ester Boserup’s work show the important role women played in agrarian economy of Sub-Saharan Africa. She challenges the conventional wisdom that women are less productive and not entitled to a share of scarce development resources. In the traditional economies, women contribute more or less equally to the family incomes. It was Boserup who defined and differentiated female farming systems (shifting cultivation of Africa and food production) and male farming systems (settled, plow-based cultivation of Asia and private land tenure), reveals Beneria and Sen (1981). She found that lack of access to education and skills make the women in developing countries unable to find gainful employment in the modern sectors of the economy, says Kamla Nath (1970).

Conclusion
It is essential to have a glimpse of the official documents of the United Nations and its bodies so as to understand the ideology/ mindset behind population control. A simple and straight reading of the opening paragraph of one UN policy brief (see below) will make us believe that population growth indeed leads to poverty.


“Fast population growth, fueled by high fertility, hinders the reduction of poverty and the achievement of other internationally agreed development goals. While fertility has declined throughout the developing world since the 1970s, most of the least developed countries still have total fertility levels above 5 children per woman. Furthermore, universal access to reproductive health, one of the key goals of the Programme of Action adopted by the International Conference on Population and Development (ICPD) in 1994 and reaffirmed by the World Summit in 2005, is still far from being achieved and unmet need for family planning in the least developed countries remains high. Thus, particularly in the least developed countries, satisfying the unmet demand for modern family planning methods would reduce fertility, moderate population growth and have several beneficial effects on maternal and child health that would contribute to the achievement of other key Millennium Development Goals.”
Source: What would it take to accelerate fertility decline in the least developed countries?, UN Population Division Policy Brief, No. 2009/1, March 2009,http://www.un.org/esa/population/publications/UNPD_policybriefs/UNPD_policy_brief1.pdf

In a report prepared by the World Population Reference Bureau (http://www.prb.org/), it has been found that within a span of 12 years, population of the world increased by 1 billion. The report says that in the next two years, the world's youth population (in the age group 15-24 years) will get more concentrated in Africa and Asia. This is likely to cause pressures on domestic governments for employment generation. Despite fertility rates going down in many nations, there has been a rapid growth in world population. According to the 2009 datasheet generated by the World Population Reference Bureau, it took merely 12 years for the global population to increase from 5 billion to 6 billion. Forecasts show that global population numbers are on track to reach 7 billion in 2011, just 12 years after reaching 6 billion in 1999.

The Report of the Secretary-General titled Programme implementation and progress of work in the field of population in 2009: Population Division, Department of Economic and Social Affairs mentions about the World Population Prospects: The 2008 Revision. The World Population Prospects show that the world population is likely to increase from the current 6.8 billion to 7 billion by early 2012, and is projected to surpass 9 billion by 2050. The projected increase by 2050, amounting to almost 2.3 billion, is almost equivalent to the world population in 1950 and will be absorbed mostly by the less developed regions, whose population is projected to rise from 5.6 billion in 2009 to 7.9 billion in 2050. In contrast, the population of the more developed regions is expected to remain largely unchanged at 1.2 billion and would have declined were it not for the projected net migration from developing countries, which is expected to average 2.4 million persons per year after 2010.

The Report of the Secretary-General states that in the year 2007, 63 per cent of women of reproductive age who were married or in union were contraceptive users. Contraceptive prevalence ranged from 3 per cent in Chad to 88 per cent in Norway, and was higher in the more developed regions (70 per cent) than in the less developed regions (62 per cent). Contraceptive prevalence remained low in sub-Saharan Africa, at 21 per cent, and unmet need for contraception was particularly high in that region, with half of the 42 countries with data reporting that between 20 per cent and 30 per cent of women aged 15 to 49 who were married or in union had an unmet need for contraception. At the international level, the most common contraceptive method is female sterilization, used by 20 per cent of women aged 15 to 49 who are married or in union, followed by the intrauterine device (IUD), used by 14 per cent, and the birth control pill, used by 9 per cent. The ranking of contraceptive methods varies considerably across countries and regions.

The Report of the Secretary-General says that global fertility declined from 4.7 children per woman in the early 1970s to 2.6 children per woman in the period 2005-2010. Most of this decline is attributable to falling fertility, from 5.6 to 2.5 children per woman, in the group of developing countries that excludes the least developed countries. In the least developed countries, average fertility remains high at 4.4 children per woman in the period 2005-2010, and 31 of the 49 least developed countries still have fertility levels of 5.0 children per woman or higher.

Indeed after going through all these facts, one can hardly differ to say that controlling population would be beneficial to many of the developing countries and this is possible by increased adoption to family planning methods and more usage of contraceptives. In none of the documents of the United Nations on population policy we however come to hear how technology and increased educational expenditure will help in creation of human capital that may pave the way to development. Population is often seen as a burden and not an asset.

In a brilliantly crafted essay titled The Ideology of ‘Over-Population’, Utsa Patnaik (1996) shows that despite having a significantly smaller population vis-à-vis India and China, developed countries such as the United States consume several times more. Per capita commercial energy consumption in the US is several times more as compared to India and China. Despite all these facts, it has always been argued as if overpopulation in the developing countries can make things worse. Effective demand in India is lower as compared to the United States despite India having a larger chunk in the total world population. It is probably the case that effective demand coupled with consumerism prevailing in the North has contributed more to climate change in the recent times.

The UN Commission on Sustainable Development (May, 2010) notes that with the Earth’s current population of 6.75 billion, consumption and production volumes are expected to continue to rise with demographic growth, severely straining ecosystems. The commission, however, adds that over 60 per cent of the ecosystem services are being degraded or unsustainably used. The high rate of resource consumption has not been evenly shared, with 20 per cent of the population in the highest income countries accounting for 77 per cent of total consumption in 2005, while the poorest 20 per cent used only 1.3 per cent.
References

Betsy Hartmann on Climate Change Politics and Overpopulation Propaganda, 20 January, 2010,
http://www.newsclick.in/international/betsy-hartmann-climate-change-politics-and-overpopulation-propoganda

Bellamy, John (2000): Malthus’ Essay on Population at Age 200: A Marxian View, Monthly Review,
http://www.monthlyreview.org/1298jbf.htm

Beneria, Lourdes and Sen, Gita (1981): Accumulation, Reproduction, and "Women's Role in Economic Development": Boserup Revisited, Signs, Vol. 7, No. 2, Development and the Sexual Division of Labor, Winter, pp. 279-298, University of Chicago Press

Bloom, David E., Canning, David and Sevilla, Jaypee (2001): Economic Growth and the Demographic Transition, Working Paper 8685, Nationa Bureau of Economic Research (NBER),
http://www.nber.org/papers/w8685, December

Boserup, Ester (1975): The Impact of Population Growth on Agricultural Output, The Quarterly Journal of Economics, Vol. 89, No. 2, May, pp. 257-270

Boserup, Ester (1979): Proceedings: The World Conference of 1976-World Food and Nutrition Study: The Potential Contribution of Research, Economic Development and Cultural Change, Vol. 28, No. 1, October, pp. 199-203

Boserup, Ester (1983): The Impact of Scarcity and Plenty on Development, Journal of Interdisciplinary History, Vol. 14, No. 2, Hunger and History: The Impact of Changing Food Production and Consumption Patterns on Society (Autumn, 1983), pp. 383-407

Datoo, BA (1978): Toward a Reformulation of Boserup’s Theory of Agricultural Change, Economic Geography, Vol. 54, No. 2, April, pp. 135-144

Dyson, Tim (2003): India's Population: Past, Present and Future, Pravin Visaria Public Lecture organised by the Gujarat Institute of Development Research and held at the Conference Hall of the Ahmedabad Management Association on March 4

Ester Boserup by Irene Tinker, in The Elgar Companion to Development Studies edited by David A. Clark
http://womensstudies.berkeley.edu/faculty/documents/Elgar%20Companion.pdf

FAO (1996): Global climate change and agricultural production. Direct and indirect effects of changing hydrological, pedological and plant physiological processes, Edited by Edited by Fakhri Bazzaz and Win Sombroek,
http://www.fao.org/docrep/w5183e/w5183e00.HTM

Hunt, Robert C (2000): Labour Productivity and Agricultual Development-Boserup Revisited, Human Ecology, Vol. 28, No. 2, June, pp. 251-277

Kaul, Sushila: Bio-Economic Modelling of Climate Change on Crop Production in India, Indian Agricultural Statistics Research Institute,
http://www.ecomod.org/files/papers/370.pdf

Nath, Kamla (1970): Women, Work and Growth-Review of Woman's Role in Economic Development by Ester Boserup, Economic and Political Weekly, Vol. 5, No. 45, November 7

Patnaik, Utsa (1996): The Ideology of Overpopulation, People’s Democracy, April 7, reappeared in The Republic of Hunger (2008), Three Essays Collective

Rao, Mohan (1994): An Imagined Reality: Malthusianism, Neo-Malthusianism and Population Myths, Economic and Political Weekly, Vol. 29, No. 5 (Jan. 29), pp. PE40-PE52.

Rao, Mohan (2008): Playing God: The Global Population Control Movement, October 4, Economic and Political Weekly

Todaro, Michael P and Smith, Stephen C (2006): Economic Development, Eighth Edition, Pearson

Urdal, Henrik (2005): People vs. Malthus: Population Pressure, Environmental Degradation, and Armed Conflict Revisited, Journal of Peace Research, Vol. 42, No. 4, Special Issue on the Demography of Conflict and Violence, July, pp. 417-434, Centre for the Study of Civil War, International Peace Research Institute, Oslo (PRIO)

Climate change: Building the resilience of poor rural communities by IFAD,
http://www.ifad.org/climate/factsheet/e.pdf:

Father of green revolution no more with us,
http://www.im4change.org/articles.php?articleId=141

Gender Makes the Difference,
http://www.genderandenvironment.org/admin/admin_biblioteca/documentos/Agriculture.pdf

Interview of former President Bill Clinton by Kim Ives,
http://www.democracynow.org/2010/4/1/clinton_rice

Programme implementation and progress of work in the field of population in 2009: Population Division, Department of Economic and Social Affairs, Report of the Secretary-General, E/CN.9/2010/6,
http://www.un.org/esa/population/cpd/cpd2010/comm2010.htm

The State of World Population 2009 (UNFPA): Facing a changing world: Women, population and climate,
http://www.unfpa.org/swp/2009/en/pdf/EN_SOWP09.pdf

UN session on sustainable development begins, 3 May, 2010,
http://www.un.org/apps/news/story.asp?NewsID=34571&Cr=sustainable+development&Cr1=

What would it take to accelerate fertility decline in the least developed countries?, UN Population Division Policy Brief, No. 2009/1, March 2009,
http://www.un.org/esa/population/publications/UNPD_policybriefs/UNPD_policy_brief1.pdf

Monday, April 5, 2010

North East: Fallen off the Media Map?






The Foundation for Media Professionals (FMP, http://www.fmp.org.in/) with the financial support of Friedrich Ebert Stiftung (FES) organized its 11th Media Dialogue titled North East: Fallen off the Media Map? or, why does the media give so little space to this vast region? The panelists included Shri Subir Bhowmick (BBC Eastern India Correspondent), Mr. Pradip Phanjoubham (Owner Editor, Imphal Free Press), Shri RS Pandey (Former Chief Secretary, Nagaland), Mr. Dibang (Former Managing Director, NDTV India), Mr. Syed Zarir Hussain (Managing Editor, NEWS Live Guwahati), Sanjoy Hazarika (Research Professor at the Centre for Policy Research, New Delhi, and a former New York Times correspondent) and Ms. Sevanti Ninan (Editor, The Hoot, a media watch website). The 11th Media Dialogue took place on 31 March, 2010 at the main auditorium, Nehru Memorial Museum and Library, New Delhi.

Mr. Subir Bhowmick, who was the first speaker told that North East was never there on the media map. More number of people from the North East in the media industry could not ensure better and wider coverage of this region in the media. He informed that stories filed by reporters and journalists on North East are often rejected by editors. He shared his experience about a story related to Rohmaria. Rohmaria is an area that is about 20 km north east of Dibrugarh town on the south bank of river Brahmapurtra in Assam facing bank erosion. Indian Oil Corporation was once stopped from exploiting oil from Rohmaria. People wanted to stop bank erosion and were not ready to accept oil exploration. But when this story was filed, the channel head rejected it. To avoid regional baggage and parochialism, mainstreaming of news is considered as benign which often leads to rejection of stories on North East, said Mr. Bhowmick. The level of understanding and awareness about North East is poor. Only a handful of people like Nandita Haksar who is involved in the human rights movement have taken interest in the North East. There is a disconnect between the mainland civil society and the civil society from the North East. The target rating point (TRP) system prevailing for the television does not allow enough coverage of the North East. Training of stringers employed by the media seldom takes place. However, the BBC gives proper training to stringers. Hostile environment training is given by the BBC but not by the Indian media industry. Training and sensitization of editors too is needed. There is very little protection given to journalists, reporters and stringers. Protection in the form of proper ID card is more important than handsome pay packages. This is because reporters and journalists receive threat calls. They are neither safe from the security forces nor from the insurgent groups. Regional media owners do not invest properly on journalists, reporters and stringers.

Mr. Pradip Phanjoubham informed that plain and simple coverage of the North East is not enough. There are so many things happening in the North East. While discussing the book titled Unclaimed Experience: Trauma, Narrative and History by Cathy Caruth, he explained that central theme of the book was that trauma cannot be articulated. The same can be said about the North East. There has been no genuine effort to understand the psyche of the North Eastern people. The question is: How do we tell about the past without a sense of guilt? The observer and the observed should be the same person to tell the story. There is a difference between melancholy and mourning. The people from North East often indulge in self-pity and melancholy. Newspapers in Manipur are doing worse in terms of revenue earning, according to DAVP. There must be some incentive structure so that the mainstream media take interest in the North East.

Mr. RS Pandey (who is the new interlocutor in the Indo-Naga peace talks) informed that the presence of both national and local media was minimal in Nagaland 30-35 years back. Some media houses survived despite low profit, low circulation and disturbances and tensions. In Delhi and Mumbai, electronic media has cropped up. But this has not happened in the North East. Coverage of the North East in the national media is too poor. Both problems and prospects related to the North Eastern region get little or no attention. There are vast stretches of peace in the North East which often gets under-reported. North East is not just about violence. North East is not a homogenous unit. There are more than 200 ethnic tribes living in the North East. Inadequate and biased reporting are the problems. There are many entries in the Guinness Book of World Records from the North East. Mizoram, a small state in North East India, has literally danced its way into the Guinness Book of World Records when 10,736 dancers performed traditional Mizo bamboo dance 'Cheraw' in Aizawl on 12 March, 2010. There are areas of strengths and weaknesses in the North East, said Mr. Pandey. Infrastructure is too poor in the North East. More incentives should be given to the media for covering North East. It is not just about demand and supply i.e. market forces. More initiatives are needed to be taken. The social and human capital of the region should be unfolded via media.

Mr. Syed Zarir Hussain said that there is nothing called national media. It is actually the mainstream or metropolitan media. Such debates on coverage of the North Eastern region by the media have taken place in the past too. Distance from the capital of India is not a big thing because of the emergence of technology and transport facilities. Babudom has entered into mainstream media. The persons at the helm of affairs have never been to the fields. So they do not know about the pulses of the people. The babu mentality has to be removed. Editors want stories based on violence and militancy. Journalists are doing their best to file good stories. However, the bosses think that the stories are not sexy enough. The television industry is mostly interested in advertisement. Not a single copy of the Hindustan Times goes to the North East. The coverage of the North Eastern region has been relatively better in the Indian Express. Shekhar Gupta came out with good stories. When Sanjoy Hazarika was in the Statesman, more coverage was given to the North East.

Mr. Dibang informed that he was with the Illustrated Weekly for 7 years and then he stayed with the television industry for 14 years. He said that television cannot be a good substitute of newspaper. 30 minutes of news in the television means 2/3rd of a page of a newspaper. For knowing complicated issues, television is not enough. For those who cannot read, TV can be useful. For those who can read, watching television will bring down the ceiling of knowledge exploration. A 600 words story of a newspaper would be brought down to 150 words when it is telecasted. In the case of TV, every second is counted as it is valuable. TV news is based on politics and is celebrity driven. TV channels in the US have become inward looking after the 9/11 incident. TV channels have stopped doing Washington story. American TV now does stories on health and technology. Indian TV operators are more focused on TRPs. All the TV channels get TRP ratings on every Wednesday of a week. There are other details too that are provided. TV is ad and money driven. Weightage for Delhi and Bombay is high vis-à-vis North East. North East is small in terms of political representation in the Indian Parliament. It is a difficult region. Communication is difficult. North Eastern people employed in the media industry may be competent but that may not ensure more coverage of the region.

Mr. Sanjoy Hazarika said that nowadays more people from the North East are employed in the media industry. Between 1995 and 2010, the number of people who died in militancy related incidents is comparable to the number of people who died due to road accident in Assam during the same time span. North East is not just about violence. North East has some of the best stories to offer. Shekhar Gupta broke many good stories from the North East. Although the boat clinics of Brahmaputra river have been widely covered by the newspapers, they were not covered well by the television. Journalists can play a positive role in saving lives of the people during the times of conflicts and tensions.

During the interface between the panelists and the audience, many a good points cropped up, which are as follows:

* Sensitizing about the North East is essential. Editors have myopic vision.
* Internet is good but its reach is limited. What one reads in the Internet may not be authentic.
* There is dearth of people oriented stories that cover issues related to livelihood.
* Has North East fallen off media map or it has fallen off ‘corporate media map’?
* Extra judicial killings are not covered well by the media. Media eat out of the hands of the police. Media is not independent.
* North East should not be considered as too small or too far.
* Political representation of the North East in the Parliament is too small despite its huge size. That is why North East can be termed as small.
* Gruesome killings are sometimes telecasted directly thus breaking the ethical code.
* Development funds are meant for pacifying and not for real development of the people of North East.
* Nation-building process is not complete in the North East.
* Though the NE region lacks industrial development, but illicit trade to neighboring countries is quite common here.

The 11th Media Dialogue of the FMP missed the following points:

* Is it because of the censorship imposed by the government, due to which less attention or coverage is given to the North East region? The discussion neglected this point altogether.
* The focus of the discussion could have been more on how North East was assimilated in the Indian republic after its independence for example the role played by JP Narayan in the dialogue between Nagaland and independent India. This could have helped in understanding the conflict situation in the NE region in a better way.

Wednesday, March 17, 2010

Highlights of the Finance Minister Pranab Mukherji's budget speech (2010-2011) delivered on 26 February, 2010




· During 2009, growth had started decelerating and the business sentiment was weak. The economy's capacity to sustain high growth was under serious threat from the widespread economic slowdown in the developed world.

· There was uncertainty on account of the delayed and sub-normal south-west monsoon, which had undermined the kharif crop in the country. There were concerns about production and prices of food items and its possible repercussions on the growth of rural demand.

· The economy stabilised in the first quarter of 2009-10 itself, when it clocked a GDP growth of 6.1 per cent, as against 5.8 per cent in the fourth quarter of the preceding year. It registered a strong rebound in the second quarter, when the growth rate rose to 7.9 per cent. The Advance Estimates places the likely growth for 2009-10 at 7.2 per cent.

· The growth rate in manufacturing in December 2009 was 18.5 per cent— the highest in the past two decades. There are also signs of a turnaround in the merchandise exports with a positive growth in November and December 2009 after a decline of about twelve successive months.

· A major concern during the second half of 2009-10 has been the emergence of double digit food inflation. There was a momentum in food prices since the flare-up of global commodity prices preceding the financial crisis in 2008, but it was expected that the agriculture season beginning June 2009 would help in moderating the food inflation. However, the erratic monsoons and drought like conditions in large parts of the country reinforced the supply side bottlenecks in some of the essential commodities. This set in motion inflationary expectations. Since December 2009, there have been indications of these high food prices, together with the gradual hardening of the fuel product prices, getting transmitted to other non-food items as well. The inflation data for January seems to have confirmed this trend.

· A Nutrient Based Subsidy policy for the fertiliser sector has been approved by the Government recently and will become effective from April 1, 2010. This policy is expected to promote balanced fertilization through new fortified products and focus on extension services by the fertiliser industry. Over time, the policy is expected to reduce volatility in the demand for fertiliser subsidy in addition to containing the subsidy bill. Government will ensure that nutrient based fertiliser prices for transition year 2010-11, will remain around MRPs currently prevailing. The new system will move towards direct transfer of subsidies to the farmers.

· Provide further capital to strengthen the RRBs (regional rural banks) so that they have adequate capital base to support increased lending to the rural economy.

· The Government intends to follow a four-pronged strategy covering (a) agricultural production; (b) reduction in wastage of produce; (c) credit support to farmers; and (d) a thrust to the food processing sector.

--The first element of the strategy is to extend the green revolution to the eastern region of the country comprising Bihar, Chattisgarh, Jharkhand, Eastern UP, West Bengal and Orissa, with the active involvement of Gram Sabhas and the farming families. For the year 2010-11, Rs.400 crore will be provided for this initiative. Proposal to organise 60,000 "pulses and oil seed villages" in rain-fed areas during 2010-11 and provide an integrated intervention for water harvesting, watershed management and soil health, so as to enhance the productivity of the dry land farming areas. Rs.300 crore will be provided for this purpose. This initiative will be an integral part of the Rashtriya Krishi Vikas Yojana. More focues on conservation farming, which involves concurrent attention to soil health, water conservation and preservation of biodiversity. An allocation of Rs.200 crore will be made for launching this climate resilient agriculture initiative.


--The second element of the strategy relates to reduction of significant wastages in storage as well as in the operations of the existing food supply chains in the country. The deficit in the storage capacity is met through an ongoing scheme for private sector participation where the FCI has been hiring godowns from private parties for a guaranteed period of 5 years. This period is now being extended to 7 years.

--The third element of the strategy relates to improving the availability of credit to farmers. For the year 2010-11, the target has been raised to Rs.3,75,000 crore from Rs.3,25,000 crore in the current year. Under the Debt Waiver and Debt Relief Scheme for Farmers, there is proposal to extend by six months the period for repayment of the loan amount by farmers from December 31, 2009 to June 30, 2010. The effective rate of interest on short-term loans for farmers who repay on timely basis will now be five per cent per annum.

--The fourth element of the strategy aims at lending a further impetus to the development of food processing sector by providing state-of-the art infrastructure. In addition to the ten mega food park projects already being set up, the Government has decided to set up five more such parks. As a part of the farm to market initiative, External Commercial Borrowings will henceforth be available for cold storage or cold room facility, including for farm level pre-cooling, for preservation or storage of agricultural and allied produce, marine products and meat.


· The Jawaharlal Nehru National Solar Mission envisages establishing India as a global leader in solar energy. An ambitious target of 20,000 MW of solar power by the year 2022 has been set under the mission. There will be an increase in the plan outlay for the Ministry of New and Renewable Energy by 61 per cent from Rs.620 crore in 2009-10 to Rs.1,000 crore in 2010-11.

· In order to set up solar, small hydro and micro power projects in Ladakh region of Jammu and Kashmir, an allocation of Rs.500 crore will be made.

· A one-time grant of Rs. 200 crore to the Government of Tamil Nadu towards the cost of installation of a zero liquid discharge system at Tirupur to sustain hosiery industry

· The draft Food Security Bill will be placed in the public domain very soon. To fulfil these commitments, the spending on social sector has been gradually increased to Rs.1,37,674 crore which now stands at 37 per cent of the total plan outlay in 2010-11. Another 25 per cent of the plan allocations are devoted to the development of rural infrastructure.

· About 98 per cent of habitations are now covered by primary schools. There will be an increase in the plan allocation for school education from Rs.26,800 crore in 2009-10 to Rs. 31,036 crore in 2010-11. In addition, States will have access to Rs.3,675 crore for elementary education under the Thirteenth Finance Commission grants for 2010-11.

· An Annual Health Survey to prepare the District Health Profile of all Districts shall be conducted in 2010-11. There will be an increase in the plan allocation for the Ministry of Health and Family Welfare, from Rs. 19,534 crore to Rs. 22,300 crore for 2010-11.

· An augmentation of Rs.100 crore for each of the Financial Inclusion Fund and a Financial Inclusion Technology Fund, which shall be contributed by Government of India, RBI and NABARD.

· For the year 2010-11, Rs.66,100 crore will be made available for rural development. Mahatma Gandhi National Rural Employment Guarantee Scheme has completed four years of implementation during which it has been extended to all districts covering more than 4.5 crore households. The allocation for NREGA has been stepped up to Rs.40,100 crore in 2010-11. Bharat Nirman has made a substantial contribution to the upgradation of rural infrastructure through its various programmes. For the year 2010-11, there will be an allocation of Rs. 48,000 crore for these programmes.

· The Rashtriya Swasthya Bima Yojana will extend its benefits to all such Mahatma Gandhi NREGA beneficiaries who have worked for more than 15 days during the preceding financial year.

· The unit cost of construction under this Indira Awas YOjana is raised to Rs.45,000 in the plain areas and to Rs.48,500 in the hilly areas. For the year 2010-11, the allocation for this scheme is being increased to Rs.10,000 crore.

· There will be an enhancement in the allocation to Backward Region Grant Fund by 26 per cent from Rs. 5,800 crore in 2009-10 to Rs. 7,300 crore in 2010-11.

· Allocation of Rs. 1,270 crore for 2010-11 as compared to Rs. 150 crore last year for Rajiv Awas Yojana for slum dwellers. This marks an increase of over 700 per cent.

· Micro, Small and Medium Enterprises (MSMEs) contribute 8 per cent of the country's GDP, 45 per cent of the manufactured output and 40 per cent of our exports. They provide employment to about 6 crore persons through 2.6 crore enterprises. A High Level Council on Micro and Small Enterprises will monitor the implementation of the recommendations and the agenda for action. Allocation for this sector will be raised from Rs. 1,794 crore to Rs. 2,400 crore for the year 2010-11.

· The fund corpus for 'Micro-Finance Development and Equity Fund' is being doubled to Rs. 400 crore in 2010-11.

· As a follow up to the Unorganised Sector Workers Social Security Act, 2008, it has been decided to set up a National Social Security Fund for unorganised sector workers with an initial allocation of Rs. 1,000 crore. This fund will support schemes for weavers, toddy tappers, rickshaw pullers, bidi workers etc. To encourage the people from the unorganised sector to voluntarily save for their retirement and to lower the cost of operations of the New Pension Scheme (NPS) for such subscribers, Government will contribute Rs. 1,000 per year to each NPS account opened in the year 2010-11. This initiative, "Swavalamban" will be available for persons who join NPS, with a minimum contribution of Rs. 1,000 and a maximum contribution of Rs. 12,000 per annum during the financial year 2010-11. The scheme will be available for another three years. An allocation of Rs. 100 crore for the year 2010-11 has been made. It will benefit about 10 lakh NPS subscribers of the unorganised sector.

· The plan outlay for Women and Child Development will be raised by almost 50 per cent. A Mahila Kisan Sashaktikaran Pariyojana to meet the specific needs of women farmers is being launched. Rs. 100 crore will be provided for this initiative as a sub-component of the National Rural Livelihood Mission. Allocation of Rs. 1,900 crore to the Unique Identification Authority of India (UIDAI) for 2010-11.



Source: http://indiabudget.nic.in/ub2010-11/bs/speecha.htm

Thursday, March 11, 2010

‘Growth versus Development: Rural Urban Continuum’



The first lecture of the Knowledge Lecture series titled ‘Growth versus Development: Rural Urban Continuum’ was delivered by Prof. Dipankar Gupta at Centre for Information Technology (CIT) Auditorium, Jamia Milia Islamia on 9 March, 2010. Prof Gupta is an eminent Social Scientist and former Professor of Sociology at Jawaharlal Nehru University (JNU). The programme was inaugurated by Prof. Biswajit Das, Director, Centre for Culture, Media and Governance, JMI and chaired by Shri Najeeb Jung, IAS.

Prof. Dipankar Gupta informed that organized sector employment has remained stagnant during the post-1991 period, thus providing only 23 to 24 million jobs. There exists not enough demand for information technology (IT) and IT enabled services (ITeS) within India. Hence these sectors depend primarily on exports. Much of the growth is actually taking place in the unorganized sector. About 93 percent of the workforce is employed in the informal sector and 74 per cent of this is in rural India. The small and informal enterprises have grown by over 110 percent in the past 25 years.

He shared his experience when he was working with KPMG, which is one of the largest professional services firms in the world and one of the Big Four auditors, along with PricewaterhouseCoopers (PwC), Deloitte Touche Tohmatsu (Deloitte) and Ernst & Young (EY). While auditing the books of many of the big manufacturing firms, he noticed that firms do not possess sufficient financial and account records. This happened since most of the big firms were engaged in outsourcing their manufacturing processes. Manufacturing work got outsourced over and over again to smaller and smaller units including the informal small scale industrial sector so as to reduce cost and risk and increase efficiency. Prof. Gupta was unable to access the books to know the accounts detail.

Prof. Gupta informed that within the informal sector, there is no social security. Roughly, 27 percent of the export was from this sector. In the recent years, 80% of the overall growth in the economy was contributed by unorganized small-scale sector. However, formal credit accessed by such units is meager. Carpet industry, gems and jewellery etc are part of this sector. Subletting of contract is deep in the case of carpet industry. Since cost of production is low, India has a good export market for carpets. People employed here don’t want their children to be employed in the carpet industry.

In India, villagers are undergoing rural crises. Old fashioned policy recommendations like land reforms won’t help us. There is little land left to be reformed. 85 percent of the rural land holding size comes below 5 acres. Those possessing 50 acres of land may watch fragmentation of land sooner or later. There is little opportunity left before the rural poor. That is why we find confrontation taking place between land owners and land have-nots during the harvesting seasons. The owner-cultivators are no longer rich, Prof. Gupta emphasized. Mahendra Singh Tikait who formed the Bhartiya Kisan Union was once termed as a kulak farmer. But he is from a lower middle class status if we judge him from an urban point of view. He was wrongly classified as a rich kulak farmer by the academicians. Land owners in rural India are no longer rich.

Roughly, 50% of the rural economy is not agricultural. So we may doubt India as rural society. Farmers know farming. But they don’t have sufficient land and capital to farm. 40 percent of the rural households In Bihar are non-agricultural. Merely 25 per cent of Bihar’s urban population lives in industrial centres. Due to distress migration, we find daily labourers waiting near chowks to get work in the cities.

Village oligarchs can no longer call the shots. Emergence of lower caste politics started happening with the breakdown of the rural oligarchy. Owner-cultivators do not pay regularly to the labourers and the share-croppers. Hence, the labourers try to find alternative sources of livelihood. They even work as rickshaw pullers and coolies.

People employed in the unorganized sector have very low level of skill. They seldom upgrade their skill set. However, in the organized sector, there is prestige associated with the job along with social security. There is possibility of moving up the ladder. One may upgrade his/ her skill-set in the organized sector.

The percentage of those who are literate among the working class has gone up. But the percentage of those who have received higher education among the working class has gone down. Factories employ under-skilled labourers. They seldom upgrade themselves.

India must learn from the West, particularly the United States so as to provide higher standards of living to its workers. There must be higher public investment in education and health. About 80 percent of the health expenditure is out of pocket expenditure in the case of India, Prof. Gupta informed. Apart from higher costs of agricultural inputs, indebtedness is caused by higher out-of-pocket expenditure on health. Our health system is collapsing. Expenditure on research and development (R&D) is falling down in monetary terms.

Village economy is collapsing since agriculture is no more profitable. Input prices are higher than before. There is unreliable supply of electricity. Horticulture and floriculture will not help as land is fragmented. The way out of the agrarian crisis is technological solutions. Land to the tiller programme could not help the farmers. Contract farming may be the way out of the rural crises. Some people do not sell land due to conservative reasons. Others think that land is the only social insurance they have. Labour needs to be shifted out of agriculture. We must know that India has a surplus in cheap labour and they need to be employed somewhere else.

Big cities are growing because of migration of unskilled labourers. But small and medium towns are growing faster than the big cities since rural graduates move to these towns and they do not migrate to big cities. Migrant labourers want their children to be educated.

Prof. Dipankar Gupta mentioned that advanced economies like France, Italy, Spain, Germany and Scandinavia are only 2-3 per cent rural, which is an indication of their prosperity.

Finally, Prof. Dipankar Gupta said that we need to act as elites at the national level to get things done and to make our government stronger. He asked for strengthening the public sector, which can deliver the most.

While commenting on Prof. Gupta’s speech, Shri Najeeb Jung said that the health system has collapsed in the capital of India i.e. Delhi. Urban poor do not have access to health care. The quality of health care provided is poor.

Thursday, February 4, 2010

Playing with the Mahatma Gandhi NREGA!




The Times of India dated 2 February, 2010 (New Delhi edition, page no. 17) carried a full page DAVP (Directorate of Advertising and Visual Publicity, Reference no.: davp35101/13/0015/0910) advertisement on the Mahatma Gandhi NREGA Sammelan. One of the achievements as claimed by the advertisement was: ‘Real Wages raised to Rs. 100 per day’. Going by the definition of real wages, one knows that it is earnings that are deflated by a price index so as to provide the inflation-adjusted purchasing power of the nominal wage. Instead of putting the term 'nominal wages' or simply 'wages', the Ministry of Rural development sponsored advertisement preferred to use the term 'real wages' But this gives us a false impression about the earnings of manual unskilled labourers who are employed for 100 days (in a year) under the NREGS. The advertisement simply wants to take away from our memory and perhaps, from our rationale that just a few weeks back India's annual food inflation based on wholesale prices rose to 17.4% for the week ended January 16 from 16.81% the week before. The World Economic Situation and Prospects (WESP) 2010 data shows that annual price inflation in consumer prices almost touched 10 percent in 2009 and 2010 in India. In the face of high inflation in food, a hike of nominal wages to Rs. 100/- per day is like a tiny drop of water in the ocean. Unfortunately, the Government does not understand this.

The other claims (Highlights) made by the ToI advertisement (dated 2 February, 2010, New Delhi edition) were:

· Allocation of funds for the current year raised to Rs. 39,100 crores

· Employment provided to 4.27 crore households

· 200 crore persondays generated so far, of which women are 50%, SCs 30% and STs 22%

· 8.8 crore bank accounts opened to give wages transparently

· 34 lakh works taken up in 619 districts

We all know that advertisements are meant to promote brands and communicate about a product to the potential customers. Their objective is to attract and tap the consumers so that they buy a product or a service with a sense of satisfaction despite spending money from their wallets. One may notice that for quite sometime advertisements on government schemes that are being publicized and funded by various ministries carry in them the photographs of the national and state-level leaders hailing from the top echelons of the ruling political party or coalition. Clearly, the hidden agenda is to woo potential voters in the name of development and welfare so that they vote in favour of such political leaders or a particular political party in the forthcoming elections. However, one may ask how tax payers’ money can be utilized for propaganda of a handful of political leaders. What about public accountability?

The advertisement that appeared in The Times Of India on 2 February, 2010 had the same purpose though it was meant to communicate to the people of India about the Mahatma Gandhi NREGA Sammelan. It appears like the ghost of ‘paid news’ haunting the Indian newspaper readers again and again in various shapes, colors and printed words.

But was it the case that Mahatma Gandhi NREGA Sammelan became a grand event? Not at all. The article titled 'Jean Dreze, Aruna Roy keep off sammelan', which has been written by K Balchand and that appeared in The Hindu on 3 February, 2010 tells us that two of the main brains i.e. Aruna Roy and Jean Dreze behind NREGA chose to stay away from the sammelan as they found that Central Employment Guarantee Council (CEGC) — governing body for the Mahatma Gandhi NREGS has not been allowed to function properly. These two persons have grievances against the way NREGA is being implemented that may convert the labour intensive scheme into a labour displacing one. By simply adding the name of the Father of the Nation cannot transform the NREGS into a foolproof and efficient government scheme.


References:

Jean Dreze, Aruna Roy keep off sammelan by K Balchand, The Hindu, 3 February, 2010,
http://www.hindu.com/2010/02/03/stories/2010020359501100.htm

Annual food inflation up at 17.4%, IANS, 28 January, 2010,
http://timesofindia.indiatimes.com/biz/india-business/Annual-food-inflation-up-at-174/articleshow/5508520.cms

Cabinet meeting on price rise today, PM to chair meet, The Times of India, 13 January, 2010,
http://timesofindia.indiatimes.com/india/Cabinet-meeting-on-price-rise-today-PM-to-chair-meet/articleshow/5440056.cms

Food inflation at 19.8% as pulses, potatoes jump, The Times of India, 1 January, 2010,
http://timesofindia.indiatimes.com/biz/india-business/Food-inflation-at-198-as-pulses-potatoes-jump/articleshow/5400513.cms

Aam admi finds dal-roti out of reach in UPA’s second innings by Gargi Parsai, The Hindu, 29 December, 2009,
http://www.hindu.com/2009/12/29/stories/2009122952980900.htm

Sewa Kendras to come up with rural job scheme funds by K Balchand, The Hindu, 26
January, 2010,
http://www.hindu.com/2010/01/26/stories/2010012656812400.htm

Social Audit of NREGS in Araria reveals corruption,
http://www.im4change.org/articles.php?articleId=870

Poor people unite against corrupt sarpanches,
http://www.im4change.org/articles.php?articleId=777

NREGS under scanner in Bhilwara, The Hindu, 10 October, 2009,
http://beta.thehindu.com/news/states/other-states/article31998.ece

Guild asks editors to endorse pledge against ‘paid news’ by Anita Joshua, The Hindu, 16 January, 2010,
http://www.hindu.com/2010/01/16/stories/2010011661051400.htm

Full disclosure by Rajdeep Sardesai, The Hindustan Times, 30 December, 2009,
http://www.hindustantimes.com/Full-disclosure/H1-Article1-491873.aspx

Mass media: masses of money? by P Sainath, The Hindu, 30 November, 2009,
http://www.hindu.com/2009/11/30/stories/2009113055290900.htm

Monday, January 18, 2010

Child labour problem in India



India has the largest population of child labourers in the world. According to statistics provided by non governmental organizations (NGOs), roughly 60 million children are working as child labourers. According to the official estimates of Census 2001, there were 12.7 million economically active children in the age-group of 5-14 years. The number used to be 11.3 million during 1991.

Most of the child labourers in India belong to the social groups Scheduled Tribes (STs), Scheduled Castes (SCs) and Other Backward Classes (OBCs). A significant chunk of child labourers are minorities. They are recruited for reducing costs of production and because of their inherent weakness to unionize for bargaining better wages, improved work conditions and related labour rights. That is why we have the paradox of having a large pool of child labour amidst high level of adult unemployment.

Works that needs dexterity is often done by them. Labour recruiters often get child labourers from poverty stricken areas and those areas that have undergone droughts and floods or where agriculture has failed. It is a well established fact now that trafficking of women and children is quite prevalent in this part of the world.

According to statistics provided by Indian NGOs, 70 percent of child labourers are engaged in agriculture. They also work in construction industry, quarries, mines, brick kilns and small scale industries (unorganized sector). They are often found engaged in household activities, street restaurants (dhabas) and hazardous industries.

Child labour is considered as the denial of human dignity and freedom. That is why there is demand for use and sale of fair trade products (instead of free trade products), in whose manufacturing child labour hasn’t been absorbed. The Child Labour (Prohibition and Regulation) Act 1986 prohibits child labour in certain occupations and processes alone and their conditions of work are regulated in the rest.

Two-thirds of the child workers in India were engaged in agriculture and about 17 percent were engaged in manufacturing, according to the 2004-05 National Sample Survey Organisation results. More girls than boys were found to be engaged in agriculture and manufacturing. One-tenth of the boys were engaged in trade as compared to just 2 percent of girls. About 11 percent of girl child workers were engaged in domestic duties in rural areas, collect water and firewood and prepare cow dung cakes for fuel.

The 2004-05 National Sample Survey Organisation (NSSO) results clearly suggest a negative association between per capita household expenditure and child labour/deprivation and a positive association between caste/religious status and child labour and deprivation. For instance, households with lowest per capita expenditure have the highest incidence of child labour and child deprivation. STs, followed by Muslims, SCs and Hindu OBCs bear higher incidence of child labour and child deprivation.

The NSSO results also show that the total number of child workers declined from 13.3 million in 1993-94 to 8.6 million in 2004-05. They constituted about 6.2 percent of children in the age group 5-14 years in 1993-94 and 3.4 percent in 2004-05. The majority of the child labourers are located in the rural areas (7 million) where about two-thirds of the children were engaged in family enterprises as helpers and the remaining one-third were engaged as paid workers. In the urban areas, on the other hand, nearly 50 percent of the child labourers were found as wage workers. Some common causes of child labor are poverty, parental illiteracy, social apathy, ignorance, lack of education and exposure, exploitation of cheap and unorganized labor.

There is across the board decline in the incidence of child labour in the Southern and Western Indian States and UTs between 1991 and 2001. However, there has been an increasing trend in the incidence of child labour in the Eastern and North Indian States and UTs.

In India, exploitation of little children for cheap labor is an accepted practice (and norm) and is perceived by the local population as a necessity to earn livelihoods. Child labourers engaged in carpet weaving industries are paid poorly and they work for long hours in unhygienic conditions. Children working in such units are mainly migrant workers from Northern India, who are sent here by their families to earn some money and send it back to them. Their families dependence on their income, forces them to endure the onerous work conditions in the carpet factories.

However, there are some myths surrounding the association between poverty, incidence of child labour and school attendance. If one can remember, the Public Report on Basic Education (PROBE) survey was conducted in late 1996 in 188 randomly-selected villages of states of Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh. These four states account for more than half of India's out-of-school children. Aside from surveying all the schooling facilities in the sample villages, the PROBE team interviewed 1,221 households. The PROBE survey challenges several myths about the causes of educational deprivation in rural India. The survey exposed the myth that elementary education in India is free, that Indian parents have little interest in education and that economic dependence on child labour is the main reason why poor families are unable to send their children to school.

The PROBE survey found that an overwhelming majority of parents, even those amidst the deprived sections of the population, attach great importance to the education of their children. Sending a child to school on a regular basis requires a good deal of parental effort (not only due to the significant costs involved but also in terms of the time and attention required to ensure the child's sustained attendance and progress), and that the poor quality of the schooling system often discourages parents from making that effort.

Recently, the Pratichi Trust (India) has come out with a useful report on the state of primary education in parts of West Bengal. It has been found that the burden of curricula is making the way for private tuitions. Class divisions exist in getting access to education.

References:

The Challenge of Employment in India: An Informal Economy Perspective, Volume-I, Main Report, National Commission for Enterprises in the Unorganised Sector (NCEUS), April, 2009,
http://nceus.gov.in/

PROBE: Public Report on Basic Education,
http://www.ashanet.org/stats/PROBE.html#What%20is%20PROBE?

http://www.childlabor.in/

Primary Schooling by Amartya Sen, The Telegraph, 19 and 20 December, 2009,
http://telegraphindia.com/archives/archive.html

Child Labour in India,
http://www.youtube.com/watch?v=EJXfILoTEXQ

Abolition of Child Labour in India: Strategies for the Eleventh Five Year Plan, Executive Summary,
http://ncpcr.gov.in/Reports/Abolition_of_Child_Labour_in_India_Strategies_for_11th_Five_Year_Plan_Executive_Summary_to_Planning_Commission.pdf

http://www.globalmarch.org/worstformsreport/world/india.html