Series 2.2: Idea of India: Labor Oriented Economy

This is in continuation of the previous blog in which we discussed the western economy idea for India. In this series, we discuss the Labor oriented Economy, which is purely an Idea of India which made the civilization here survive for many millennia and was in harmony with nature and people.

India like all other countries is rich in population. That is labor is available in plenty. And as humans, we are compassionate towards other humans. So says Dharma that we have to be compassionate to each other. Manava Dharma is basically to maintain basic human rights and dignity.

Basic human right is: to live & let live;

NOT live at the expense of others.

To live, god has given a beautiful earth to man. To live man’s basic needs are Air, Water, and Food. For growing food land is a basic need. Man’s civilization has always developed along where fresh water is available. Because after Air which is available all across globe in plenty, Water is basic need, without which a man cannot survive for more than a day or two.

So a civilization grown in a region around particular fresh water automatically becomes the custodian of that region. The wealth of the region belongs to the people of the region. The wealth could be water wealth, land wealth, fisheries, forest around it, minerals, animals, plants etc.,

They produce products from the region’s wealth. The livelihood of the region people depends on the region’s wealth. Hence they protect it. They worship it. That’s how the culture of worshipping a tree, mountain, goddess of forest, etc., come into being. They trade their produce with others only after taking care of themselves. They trade only that much which can be regenerated, re harvested. This creates a sustainable growth & development of the region.

So the people of the region collectively own and utilize the wealth of the region in a sustainable manner.

Loss of First Right Over the Produce

In the modern world, however that is not so. There is nothing called people of a region collectively owning the region’s wealth. All that is not private to a person belongs to the state. Everything is privatized, especially the land & water. So a river flowing or land rich with minerals belongs to no one, but the state. The state auction’s that wealth. It goes to an entrepreneur who bids highest. He then rises “Capital = Future Money = Loan” from the bank. Whose father what goes? The bank prints money and gives it as loan. He becomes single owner of all that wealth. It is called concentration of wealth with few. He then employs the people of the region.

So in this process you see, the people of the region loose the first right over their produce. They get employed. Enslaved. Earlier they used to utilize what they produce first and then trade what was excess. Now what they produce doesn’t belong to them at all. They get monthly “Salary”. And they are told to buy what they want from the market. Their own produce they have to buy from the market at a price manipulated by the “owner”.

The coal block allocation, iron, bauxite, gold, silver and various other metal mining is all privatized. Big hills are privatized for Tea, Coffee estates. Granite, marble quarrying is privatized. Even water is getting privatized diverting the tributaries and streams for accumulation in large dams. Rivers become dry. Canals are built instead which need high maintenance. And it gets utilized more by the rich setting up factories along.

In few cases, like Tata Tea estates in Nilgiris, to quell any upraise, the owner makes the employees shareholders. The company gains a lot of goodwill by this gesture. It is eyewash. Because, the locals don’t have first right over their produce. They don’t have any say in the financials, reporting etc., where there are many unethical deeds possible within the legal framework. So the state cannot do much, but the local stakeholder is deceived. And he doesn’t even realize because he never claimed his rights in the beginning when all this exploitation of his region and wealth started happening.

Hope: Locals have a say:

Every problem has a solution. Provided we acknowledge and understand the problem.

What is given to private properties for earth exploitation cannot be reversed suddenly. India is still very rich. What is still to be exploited should be left to the locals to decide.

For example, recently, Vedanta mining company was given rights over Niyamagiri hills in Orissa for Bauxite extraction by both state and center governments. The locals got educated about it by citizen activists. They brought Supreme Court intervention to seek 14 local panchayat sabha approval. All 14 sabha s unanimously ruled against the region’s exploitation.

Similarly, the silent valley, in Kerala, was saved by the active resistance from the locals from the exploitation. It is one of the richest bio diversity sites maintained today.

Kudremukha hill range in Karnataka was mined for several years before the local activists bringing Supreme Court intervention and bringing a halt to the mindless exploitation.

These examples show that through strong citizen awareness & involvement, procedural intervention is possible in the country’s wealth looting. Taking up arms against the state is not the only solution.

It is a shame, that the state colludes with rich to exploit the region. The state is run by politicians. The politicians are elected by people only. Still they sell their own people’s wealth. That means there is a disconnect between the people and people’s representatives. This means that people are indifferent to the governance. This is dangerous for the republic. People have to involve in governance. People have to create Sangha/ Panchayat at village level/ area level and have regular connect sessions with their representatives at Assembly and Parliament. Assert their views and seek information on what decisions are being taken by their representatives. 

 Hope: Local Cooperative Based Economy:

It is however important to create an economy for the region. Not just resist the exploitation and stagnate the economy. So people of the region should know their wealth and form Cooperative Society to en-cash upon that.

For example, in Tamilnadu, in one of the Granite quarrying areas, multiple village panchayats of the area formed together a cooperative society for the quarrying. Women self-help groups were part of it. Everyone participated in various aspects of the operation of the quarrying from extraction, transportation, machinery, and financials in rotation. So there is clarity, simplicity (most important factor in gaining confidence), transparency, accountability. The tax collection was highest amongst all equal areas. There was of course big lobby by the private contractors to get the license for quarrying. At that time CM was Jayalalitha. When the renewal for contract came about, against much pressure of the private contractor lobbyists, the contract was renewed for 5 long years for the cooperative society. This kind of people oriented decision making by the government heads, ministers is much desired.

The Operation Flood architected by Dr. Verghese Kurien is a great success. It is emulated by almost all states in India. A perishable goods like Milk has transformed the country, that too at the country side. It is such a great case study for many reasons for the country to emulate it. Firstly it creates self-reliance for a large rural population. Producer reserves the first right over his produce. It creates multiple cooperative societies at village grass root level. It requires all people to be educated & involved & question each other & follow certain defined discipline. It meets the urban demand in a controlled manner.

Another recent example is the implementation of the PDS (Public Distribution System) through cooperatives, panchayats, women self help groups (SHGs) in Chattisghad. This is a great success. While the India average leakage in PDS is 25%, in this state it is reduced to less than 5%.

The Kerala government has highest allocation by any state towards Panchayatiraj. Kudumbashree mission (http://www.kudumbashree.org/ ) of women empowerment through village panchayats has seen great success for it to force government to make such good financial commitments. Healthcare, education, agriculture, sanitary, water, urban slum development, products, marketing, almost everything related to people and their wellbeing is covered by this initiative. It is an amazing and successful initiative; It is an absolute prescription for entire India.

There are many such good examples in pockets across country. The point is there is hope of doing it right. Few important things stand out:

1.       All large mining projects, water diversion projects, non-perishable & perishable produce especially the raw materials, should be handled by the locals. Very widely participative Cooperative societies should be formed who handle everything from production, transportation, marketing and finance.

2.       Meet the local market needs first and limit the exposure to outside markets. It will force all regions to find solutions to their needs indigenously not go for easy option of exploiting other regions.

3.       Educate the locals on the following points:

a.       The wealth of the region.

b.      To extract it in a sustainable, renewable manner; Not finish it off within one generation

c.       The purpose of extraction – Whether it is for providing security for the country or scientific development or Indulgence of the urban population or foreign population

d.      To involve all society members on rotation basis across functions in the cooperative society

e.      Wider involvement of the local society and community to bring out all differences and address it amicably

4.       What about Large Industries? They are the vehicles of countries economy?

a.       Large industry set up will claim large employment for a certain Taluq area or district. That will attract the locals to favor a large industry to be set up in their area. But education should be given to the locals of all the ills of it and wills of the owners of those industries. If industry set up makes sense due to the region’s wealth, then locals should demand making cooperative society to develop and maintain the industry themselves. We are very far from reaching this ideal situation. But at least for the raw material extraction, it should be controlled by the locals.

The basic of economy is Supply and Demand balancing. Consumption based economy spirals out of control to increase demand and create false demand only from urban self-indulgent population. The haves are going to have more and have nots are going to loose more of theirs.

The demand and the desire cannot be controlled. The supply needs to be controlled and checked.

If we shift the economy control over to the hands of the suppliers, it creates an equitable supply in a sustainable manner. Because it controls the earth exploitation in an acceptable manner by the locals:
-          It will check the rural to urban migration as it creates local employment
-          It will force lesser consumption & self-indulgence; It might result in enticing reverse migration to rural from urban
-          It will create rural employment, self-empowerment, dignity
-          It will give the producers first right over their produce
-          It will be labor oriented and creates large employment across India locally
-          It will bring down armed resistance to the state; Maoist menace is not good for country nor for the locals

Cottage Industries:

The idea of Charaka and Khadi Gramodyoga by Gandhiji was to create ‘Vocational’ Employment for the agricultural labors. There is very large landless agriculture labor population in the country. It was like that before and it is like that even today. The landless labors get work in agri fields only for 3-4 months of the year. The cottage industry is good way of keeping them occupied and creates an economy around it. Cottage industry is very wide spread. Examples include, Honey culture, Sericulture, saree weaving, Khadi, wool based industries, fresh water fisheries, art and artecrafts, bamboo, jute based products, etc.,

There was famous argument between Sir M Vishweshwaraya & Rajaji. Rajaji is Gandhian. Vishweshwaraya is a great Engineer who pioneered ‘modern state’ status for the Mysore state. Sir MV argued what 2-3 labors take 5-6 days to produce a set of clothes can be produced in a textile industry within a day. Rajaji’s argument was, so if it reduces so much employment what do they do? And besides who needs so much clothes?

Today we see the answer. All the cotton grown across India converges in Thirupur district of Tamilnadu. And the finished clothes get distributed to all urban clusters across the globe (not just India). They themselves can not afford some of the things they produce. Across India region specific textiles industry is shut. It brings in large scale migration to cities. Cities in India are about 3% land, housing 40% population, consuming about 75% resources, responsible for 70% energy consumption (Source: India Today, 17 March 2014 Edition). Of the 40% city population about 15% are slum dweller poor. That means the 75% produce is consumed by only 25% of our population. We are on a great quest to run the country like a tightly run company with maximum optimization in all ways. People are last priority. Productivity and output is first priority.

A cottage industry is one which is people oriented. It serves the people connecting their needs. It creates livelihood locally and services people locally not internationally.

For example, there is a low-cost Sanitary Napkin Revolution run by this simple man: http://www.bbc.com/news/magazine-26260978

Sanitary napkin is a hygiene factor. It is generally produced in Thirupur or in some Chinese export zone for the entire world. It is sold only in urban mid & upper class across the world at a high price.

The subject is a stigma in rural India (even in urban India). But this man struggles against all odds to create awareness. Not only does he create awareness of its hygiene factor but he takes the simple machine he created to be a vehicle of employment creation amongst the rural women. In India it will give a million jobs. Each serve about 300 women. That means 300 million rural women serviced. Compare that with industrial output of 300 million napkins coming out from a factory by about a 1000 workers. And it serves only the urban populace and doesn't reach out to the rural due to profitability concerns.  
He wants to create 10 million jobs across globe reaching out to all countries rural areas. There is no overarching brand. Women SHG s can create their own brands. He has not patented it to make millions for himself. It is for everyone to use and benefit.

If the people at the village unit level are educated, encouraged to build strong unions and assert their rights, the country becomes the strongest. It is our responsibility as educated to educate and build stronger society at the grass root level.

Series 3: In the next series on Idea of India and Idea for India, we’ll delve into the Religions. What religions from India say, and what Religions from foreign say. Religions play crucial role in social aspect of human life. Religion reaches an illiterate also. Religion is the most crucial educator for every human being on the earth. It is well trenched in the fabric of our life. It can create powerful self-sustainable society or a blood sucker society. We’ll also see what the concept of God in each religion.