I/II.
http://blogs.timesofindia.indiatimes.com/Swaminomics/monsoon-proofed-india-shrugs-off-twin-droughts/

Monsoon-proofed India shrugs off twin droughts

December 6, 2015, 12:01 AM IST SA Aiyar in Swaminomics | Economy, India | TOI

I am amazed when people ask me why food prices, notably that of dal,
have gone up. India has just suffered two consecutive droughts. The
question to be asked is why, after a disastrous monsoon, food prices
have risen so little.

I became a journalist in 1965, when also India was hit by two
consecutive droughts. Foodgrain production fell by 20%, starvation was
rampant, and inflation went through the roof. India was pathetically,
humiliatingly dependent for survival on US food aid, and lived a “ship
to mouth” existence.

Fifty years later, two back-to-back droughts years have made so little
impression on the lives and minds of people that they wonder why food
prices are up. GDP data shows that agricultural production actually
went up marginally in 2014-15 despite a drought. In the current
financial year, agricultural GDP rose by 1.8% in the first quarter and
by 2.2% in the second quarter, although the rainfall deficiency was
14.3 % this year against 12% last year. TV cameramen have scoured the
worst-hit districts for starving villagers but cannot easily locate
any. The drought is simply not a big news story.

A bad monsoon does not just hit agricultural production and prices: it
hits industry and services too. Historically, many industries —
notably textiles, jute, sugar and edible oils — were dependent on farm
output for raw materials. Most jobs were created in sowing, weeding,
harvesting, transporting and processing produce. This explains why
economist Arvind Virmani once showed that in the first 50 years after
independence, no less than 45% of changes in Indian GDP could be
explained by changes in rainfall: other factors put together accounted
for only 55%.

The twin droughts of 1965 and 1966 led some foreign exerts to opine
that India could never feed itself. Famine 1975, a bestselling book by
William and Paul Paddock, predicted global famine by 1975. The authors
said limited food surpluses of the West should be conserved for
countries capable of being saved, while countries incapable of being
saved, like India, should be left to starve, for the greater good of
humanity. Indians were angered and horrified by the book, yet it was
widely applauded in the West. Environmentalist Paul Ehrlich, author of
The Population Bomb, praised the Paddock brothers sky-high for having
the guts to highlight a Malthusian challenge.

Farm Fare: Over the years, the share of traditional crops has dropped
from two-thirds to just half of total production.

Farm Fare: Over the years, the share of traditional crops has dropped
from two-thirds to just half of total production.

Today, we seem barely aware of two successive droughts. What accounts
for the change? Some think the Green Revolution increased food grain
availability per head. No, grain availability peaked in 1964 and then
declined. Mass starvation ended in subsequent droughts mainly because
of better distribution: rural employment programmes provided just
enough purchasing power in affected districts. People were still
hungry, but did not starve.

Incomes rose over the years and Indians switched from cereals to
superior foods. So, per capita consumption of cereals declined. This
unexpectedly created grain surpluses. So, in the 1990s India became a
substantial net food exporter, and the second largest rice exporter in
the world. It continues to export food even in drought years. That is
amazing for a country that used to be the greatest beggar for food
aid.

The Green Revolution raised yields, enabling more to be produced from
the same area. Tubewell irrigation meant the rabi crop increased from
one-third the size of the kharif crop to as much or more. The total
irrigated area increased from one third to 60%. Drought proofing was
substantial.

More important, agriculture’s share in the economy fell steadily, from
52% in 1950 to just 14% today. Services now constitute 60% of the
economy, and don’t depend on the monsoon. Industrial production has
diversified into engineering and chemical products, and is no longer
dominated by farm-based industries like cotton textiles, sugar, and
jute textiles.

As incomes rose in the 1970s, farming patterns changed. Per capita
production of foodgrains declined, but that of superior foods (like
dairy products, edible oil, sugar, tea, eggs, fruit and vegetables)
went up. These superior foods provided farmers with more income even
as they satisfied the changing needs of a society getting better off.

The share of traditional crops — including cash crops like oilseeds,
fibres and sugarcane — dropped from two-thirds to just half of total
production. The other half consists mainly of fruits and vegetables,
poultry, fisheries, and livestock. These activities are much less
monsoon-dependent than traditional crops, and help explain why
agricultural GDP managed to rise 2.2% in July-September this year
despite a drought.

However, this success has been accompanied by grave environmental
damage. Free electricity to farmers has encouraged over-pumping and
alarming aquifer depletion. Politicians refuse to charge farmers for
power, saying this will lose them elections. One compromise may be to
give a free solar pump to every farmer, and charge for other electric
supplies.

II.
http://timesofindia.indiatimes.com/home/sunday-times/all-that-matters/The-future-of-India-Private-splendour-and-public-squalor/articleshow/50058339.cms?

The future of India: Private splendour and public squalor?

Ravi Venkatesan | Dec 6, 2015, 12.00 AM IST

India, and most Indians, are getting wealthier. With a per capita
income of $6,000 (PPP), India is now a lower middle-income nation. If
our GDP continues to grow at a modest 7% CAGR, millions of Indians
will gradually escape poverty and hundreds of millions of us will grow
steadily more affluent. The probability of this seems fairly
reasonable — not because of the competence of any government —but
because of the aspirations, drive and entrepreneurship of millions of
Indians, especially young Indians.

But even as we grow wealthier, the quality of life especially in urban
India will continue to plummet. I live in Koramangala, Bangalore, the
epicenter of India's entrepreneurial ecosystem, a place brimming with
talent and energy. But it is also brimming with mounds of festering
garbage. The stench of sewage permeates the air. A commute to the
airport that once took an hour now takes more than two. However,
Koramangala's residents have it good compared to those who live in
other suburbs like Whitefield. This story of unlivable cities is
repeated across India. Delhi's residents complain about the barely
breathable air and awful traffic. Mumbaikars lament the disappearance
of public spaces. Rain has shut Chennai down. As population and
consumption rise, we are seeing the degradation of everything public —
infrastructure, justice, law and order, healthcare, education — from
bad to unbearable.

Our response to this degradation has been privatization by default.
Companies create their own worldclass infrastructure. The affluent and
growing middleclass retreat behind gated communities and highrise
apartments and to a world of privatized education, privatized
healthcare, private security and transportation. This retreat has
given rise to what we see today: oases of private splendour in an
ocean of public squalor. But how sustainable is this? What's the point
in rising affluence if the quality of our life is plummeting? What's
the point in owning more cars or better cars if it takes an hour or
more to travel 10km? What's the point of rising GDP if we can't
breathe our air, if most of our food is contaminated and the judicial
system fails to deliver timely justice? As someone remarked about
China, what's the point in growing the pie if the pie is inedible? The
ocean of public squalor is beginning to engulf our private cocoons.

It is very easy to get angry and blame "government" for this mess. Our
deplorable situation is clearly the failure of successive governments
of every political hue at the Center, the state and local level. They
have failed to curb corruption and have failed even more miserably to
build institutions. Institutions are the foundations of society. Even
as our population surged and our economy multiplied, successive
governments have allowed key institutions to atrophy; indeed, in many
cases, they have been deliberately weakened. Weak institutions —
regulatory institutions, institutions of administration, policing, and
justice — are the root cause of government's inability to stem
corruption and deliver essential services to citizens.


Taking Control: To create a functional society citizens need to be
responsible and engage in community work.

But much as government is to be blamed, the bigger problem might be
our own behaviour. Why is there so much rotting rubbish on the streets
of Bangalore? It isn't primarily because the municipal contractor
doesn't pick up the rubbish every day. It is that residents refuse to
segregate garbage the way the law prescribes and most households
furtively throw their garbage on the street corner. Why is corruption
so rampant? Because fewer and fewer of us see anything wrong in either
taking or paying bribes; bribery is simply a transaction cost. How
many of us are willing to take the metro or bus to the airport instead
of our car? The total refusal on the part of babus, politicians and
middle-class citizens to use public services results in the lack of
any incentive to improve these. How many talented executives are
willing to give up their lucrative careers for just a few years to
help rebuild public institutions or strengthen good NGOs? How many of
us are willing to give up part of a weekend to participate in a
community initiative to get rid of garbage, plant trees in our
neighbourhood or attend meetings of the resident welfare association?
How many business leaders are personally engaged in the CSR work of
their company to ensure that financial contributions and employee
talent are directed towards building institutional capacity? How many
of us make the effort to vote in elections instead of seeing it as
another holiday?

It is time that we realize that we get the kind of government and
society we deserve. To a very large extent, the sorry state of our
society is the result of our own indifference. To make a democratic
society work, we need to redefine what it means to be a citizen.
Citizenship is not just a birthright, it is also an obligation. A
democratic society is fragile and its success demands vigilance,
collective action and even sacrifice from its citizens. It took great
sacrifice to win our freedom. It will take at least as much leadership
and sacrifice to create a functioning society.

(The writer heads Social Venture Partners India)
-- 
Peace Is Doable

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