Thursday, July 29, 2010

Debacles of Mismanaged Growth

Something very fundamental have changed over the years, the last budget speech of Finance Minister marked it lucidly. Probably on such occasions, first time in history of modern India, private sector had framed in top order. Proposed catalyst role of non-governmental actor in new economy were coincided with other slew of statements; very notable among them was that government will now act as an enabler for poors of this country which mean, now protection of governmental intervention would be confine as prerogative rights of the wealthy class of this nation.
I have stout faith in the state and no idea is as lovable as “Idea of India” for me-the crux I raising here has lot to do with my faith as its tantamount would be graver then we perceive today.

Consine and consciousness, both have shrunken horribly in their respective spaces-barring few, we can see it in every sphere…media have been consistently shifted from its whistle-blower role to a compromising entity, in the name of commercial compulsions and sustenance.
UPAII government, which would be known for the failureness of ministerial obligations and departure of its custodians towards the pastime with greener pasture. Recently, Agriculture Minister has taken over the charge of ICC Chief-interestingly; he never had any footprint in the gentlemen game of Cricket. Further, exactly in bizarre move, he offered to reduce his ministerial burden to focus more on his penchant and to getting away from the obstinate inflationary challenges.

Shockingly, he displayed his penchant for the politics of Cricket in wrong time when agriculture as a primary sector was passing through its worst phase. Czarism of Cricket surpassed the basic needs of India’s two-third population…ridiculously, barren field was substituted by the Empowered Group of Ministers {EGOM} to channelise the hyped food security programme. Is it feasible in the world’s largest democracy to run with a part-time Agriculture Minister?

Obviously, negligence at macro level has turning agriculture farming and services, both as an unviable employment option. In recent years, cultivation cost has radically grown up-millions of farmers moved from conventional food corps to cash corps in the influence of mad commercialization. Increased cost of production, and failureness of marketing frequently leading them to suicides as an option to escape the unbearable humility of debtors.
In last twelve years, last six years were even more horrific-National Crime Record Bureau that solely takes into account of farm suicides reveals the grimness of situation. During2003-08, average one farmer commits suicide in every thirty-two minutes; Maharastra, which account highest farming suicidal incidents, alone have 22 billionaires in the Forbes list from total 48 Indian billionaire’s entry.

Leading voice on rural affairs, P.sainath gives a very realistic account of persisting problems; through rising food prices and diminishing values of farming activities lead 50-60% of their spending alone on foods, 18%on fuel-clothing and rest on everything? Transformation in the farm sector resulted with two hundred thousand of farmers suicide {from1970 to date} in sheer dark depressions…cases are rampant where whole villages have emptied in search of job to cities where there is no opportunity? As par, last Census, Average Per Capita Expenditure/month of farmers in India revolves around Rs.503…even current Census may dwarf this figure further.
Farmer’s indebtedness that grew from 21to 48% since1991 is the real bone of contention behind the farming distress and overall desperation prevailing in the rural areas.

In last two decades, banking presence getting freezed and even lowered in the rural terrains-micro loans are being marginalize in favour of sizable loans despite the government’s best effort in this regard. Despite all tall claims, Public Sector Banks {PSBs} have share of merely 7.61% in the total rural debts-if excluded the Regional Rural Banks{RRBs} stakes, then contribution would remain very abysmal from PSBs. New classes of Moneylenders {MFIs} are dwelling with many operational flaws and impractical policy maneuverings, so they hardly appearing remarkable as an institutional alternatives.

Indeed, there is need of reform in present subsidies mechanism but it must start from the Corporate Sector who doesn’t deserve more then a fair atmosphere of business as government assistance. Gulf between interest of business and rudimentary necessities of common citizens must be taken into account at the all levels of policy implementation otherwise impressions of growth would remain subdued and cause of aberrations for the majority of deserving stakeholders.
Atul Kumar Thakur
July16, 2010, Monday, New Delhi


  1. Everything related to the priority sector is being marginalised in UPAII regime.Really its a deep cause of concern-liked your sincere and forceful initiative.

  2. I am happy to see your concern,a healthy trend in itself,will sure fit the things better-Arnab Sen,New Delhi

  3. Dear Atul,
    Nice to see your balance take on developmental themes-as always liked your fair and unbiased views.All good wishes for further works..
    Shantanu Mishra
    New Delhi