Wednesday, April 8, 2009

India's Development through Development of 635,000 Villages

We talk big about our Fifty Billionaires and the tens of thousands of NRI/ Indian diaspora, who have made "millions/ billions" in riches. Our nation is now an independent and reverberating/ vibrant democracy for over sixty years. Yet the current state of affairs is pathetic at the ground level. 800 million people in our total population of 1, 150 million do not earn even $0.50 per day; 350 million people do not have water to drink; 350 million people do not have even one square meal a day, and at least 200 million in these are children below the age of 5. Incidentally all these poorest amongst us live in the 635, 000 dilapidated villages that are spread across the length and breadth of India

The questions are:

1. How could we vaingloriously talk from hill-tops that we are a developed nation, when the ground level situation is as presented above?
2. What do we NEED to plan/ organize and execute so that the present 800 million poorest amongst us earn at least Rs.100, 000 ($2000) per annum?
3. Are we not to be ashamed that our Government prescribes a measly sum of Rs.10, 000 per annum as the compensation for the poorest workers?
4. Do we not have the moral obligation to discuss and come out with practical solution plans to overcome these NATIONAL SHAME?

In order that we go in stages, toward arriving at appropriate development Model to alleviate Village level poverty in India, we need to DEFINE ... DECENT LIVING STANDARD>

What constitutes an average decent Village Level living standard? Although it may be a bit hypothetical, we may observe that the yardstick for “decent” level would have to be based on costs of living, taking into account the following:

  1. FOOD
  2. ENERGY
  3. HOME/ HOUSING
  4. MOBILITY
  5. EDUCATION
  6. MEDICINES/ HEALTH
  7. LEISURE/ ENTERTAINMENT
  8. FAMILY
  9. OLD AGE SECURITY/ PROVIDENCE/ INSURANCE

This could be approximately estimated @ the lowest level of Rs.3, 500/ per month per individual, under the present Indian living index (cost of living). Anything less than this value would be pathetically low, when viewed from the context that even Rs.3, 500 per month is an extremely low earning power (not one amongst us could ever think of such wretched existence levels!) There are about 800 million people (both old and young) in India [Center page Article by P. Sainath, THE HINDU of March 18, 2009], who DO NOT earn even Rs.20 per day (@ about Rs.6, 000 per annum, which is lesser than 15% of this minimum decent living standard!). Further, we may consider this NEED for “Purchasing Power” to the available labor force in our country, as the prime NEED for POVERTY ALLEVIATION. The estimated total labor force in India is 520, 000, 000; at least 320, 000, 000 amongst these are unorganized agricultural labor, without any continual work/ wages. Thus, if we were to initially (as a First Stage Proposal) restrict the NEED for decent living standard income to just these 320 million agricultural labor force, the annual outgo would be a whopping Rs.13.44 trillion (roughly about 268 billion US $). The current annual earnings of this 320 million village level labor force is about 10% of this value, which is their purchasing power through eking out in wretched conditions, at average per capita Rs.4200!

What could we do to change this pathetic situation? What are the ground-level operational needs? Could we be satisfied with the economists' “trickle effect”, whereby the huge earning power increases in the minuscule minority top echelons' income levels would offer “something” to the “poor” so that they might eke out? Could we expect education to change this scenario, when JOBS are NOT available even to the existing educated youth? Is it not a fact that any so-called “poverty alleviation” program has to be a Self Sustainable Economic activity? If that be the case, is it not mandatory that ALL OUR NATIONAL PRIORITY Techno-Economic schemes/ themes would have to ANSWER these problem situations, through Science, Engineering, Economics, Business and Commerce? Going a step further, we may estimate that, if the labor earnings of 320 million village/ agricultural labor force is @ 7% of the total business volumes, the annual NEW BUSINESSES that are to be generated in the villages would have to be worth not less than Rs.192 trillion (let us say Rs.200 Trillion = US $4 trillion). Do we have any school, university, engineering institution … and any poverty alleviation programs of government working on these?

Thus, the FIRST STEP in poverty alleviation in villages would have to be Industrial development of villages (there are 635, 000 villages in India). And these development themes would have to consider the availability of Local resources and Local Needs, in tune with long term Environmental and Economic Sustainability.