Monday, December 18, 2006

Do Bigha Zameen 2

Continuation of previous post:

Should agricultural land be used for commercial purposes ?

My answer is NO. I know, there is an alternate opinion on this which says that setting up of a manufacturing plant would result in creation of direct employment which would result in a greater GDP growth resulting finally in more purchasing power at the hand of the deprived.

All of the above are true except the last bit.

The problem is - those who are affected are seldom benefited. Unskilled labour accounts for a very small percentage of the total employment generated by a manufacturing plant and unfortunately almost all agriculturist (aha ! got a 'better-sounding' name for a farmer) in our country fall in that category.

It is also true that a developing country will have a general shift from an agriculture based economy to services based economy but the price that India will have to pay for that will have serious repercussions for India. Since, the choice has been made, we must be prepared to have a more fragmented disparate society. A society, which will be a lot less coherent than what it is now, a lot more fragile and seeped in mistrust and a strange concoction of anarchy and transient peace.

Using agricultural land would most likely render many homeless, jobless. Where would these people land up ? Most likely, they would migrate to the more populous, opportunity-filled cities causing severe strain on the existing infrastructure of the already saturating cities of India. What would they turn to for sustenance ? While it would be too pessimistic to assume that most of them would turn to anti-social means, it would not be too much of a travesty to assume that a fair percentage would. What are the implications of that ? In the context of the basic mistrust that would result from the initial land acquisition fracas and the economic disparity - it would just compound into a more unsafe India.

What in the final analysis it might mount to, is that, the very aspirations of the society that we are trying to fulfil - economic liberation, peace and prosperity for the general mass, by all such means would be destroyed by the process of 'getting there'.

Does it mean that we stop industrialization ? Definitely not. But our growth story has to be inclusive. If we think of the rural India as a burden and something that can be disposed off with - we might be in for a very very rude awakening.

Amartya Sen, in spite of being a socialist, somehow made sense when he highlighted this a lot many years earlier as a possible problem which we will have to face.

5 comments:

Gaurav Kumar Ambasta said...

Good one Hirok da..

The answer to this question is not easy. However, there is no denying that people dependent on subsitence agriculture are doomed to poverty. One bad season and u know what can happen. In the light of things would u not prefer rapid industrialization which would better the standard of living of people and also give them more stability in terms of earnings.

Let the population gradually move from agriculture to manufacturing & Services. India, of course, is not China and hence the transition cannot be as 'smooth'(pun intended) as in China. There'll be hiccups but in the larger benefit of the farmers, especially marginal ones, the employment opportunity through industrialization would be far more.

I am running into a great danger of being misunderstood. I don't imply giving off all agricultural(read fertile) lands for Industrialization purposes. This has to be optimized. India is not short on semi-fertile and barren lands. Secondly, adequate compensation in terms of money and job opportunities should be given.
Just because our Compensation mechanism is flawed does not mean the economics behind industrialization is bad.

See, just as Govt is zealous about industialization, it should also be equally considerate about the welfare of farmers. One thing does not necessarily reject the other,

The problem, however, is just in the transition phase. Once people see the benefits, inshaAllah, there won't be any resistance.

I remember, the case of Coal industry in England in early 80s when Margaret Thatcher first proposed to sell it off. At first people were angry, buit they saw lot more jobs being created by efficient market industrialization system.

spiderman! said...

Meer:
Am responding to your comments paragraph by paragraph :)

1st & 2nd:
Agreed that they are doomed to poverty. But my point is while everyone benefits the landless do not.

3rd:
Absolutely correct. Agreed to the hilt !

4th & 5th:
Precisely my point. How do you explain the benefits of this to someone whose ONLY source of sustenance is his land ?

Last:
Margaret had a different scenario to contend. Her idea was to privatize wherein the skilled workers would find other means of work. Here, we are talking of depriving unskilled people of the opportunity to exhibit the ONLY skill they have - that of farming.

R. Anand said...

call me a pessimist, but the only person who will improve his life after the realization from the article is the secretary... he must be taking only about 20-30%, but now he knows the "market" is willing to pay upto 75%.

SRK said...

my 2 paise worth..

i had the opportunity to see wht a corporate like TVS actually 'does' for rural people, instead of jus 'talking' abt CSR...

They put up a factory in Hosur, and most probably took over some agri land... i dunno for sure...

wht i do know is tht they have been making full efforts to include the rural folk in their economic devt...
1) TVS Canteen tries to source milk, coconuts, and possibly veggies from villagers around the factory... and i'm talking HUGE quantities... a successful project has been 'chappaties' sourced from a women SHG for the canteen...
2) Schools are built and maintained, much better than wht the Govt does with its primary schools...
3) Farmers are trained, inputs and scientific advice given... yield has actually increased in many cases...

I guess if there is an intent to help, then both agriculture and industry can co-exist...

spiderman! said...

Anand:

good...some way I am contributing at least...

Srk:

Such examples are few and far between and I do agree...IF the will is there all of this can happen...