Monday, January 25, 2010

The first step towards Green revolution 2.0 has really nothing to do with agriculture

The unlucky majority have been condemned to lead a life of destitution, often resulting in horrific cases of suicides. Rahul Gandhi may have made Kalawati the poster woman of the deep distress that confronts Indian agriculture; but the fact is that there are hundreds of thousands of widows who are worse off than Kalawati ever was. And their tragic stories are buried in reams of newsprint and dozens of seminars discussing esoteric issues like farm credit, crop insurance, infrastructure and market mechanisms.

But just like in the 1960s, the latest crisis confronting Indian agriculture is also an opportunity. It is time for policy makers to take steps that will lead to Green Revolution, Part 2 in the country. How will Green Revolution 2.0 come about? Well, the first step has nothing to do with agriculture. The Indian government has to provide the access to education to children living in rural India and also create enough job opportunities in urban India so that a large percentage of rural India effectively becomes urban. All India has to do is follow the example set by China where massive investments in primary education have been accompanied by massive investments in infrastructure and industrialisation. Most children living today in villages will not get a job at Infosys; but they will surely earn a decent livelihood if Reebok, Nike, Wal Mart and others make India a supply hub. This will once and for all remove the Indian curse whereby more than 60% of the nation depends on agriculture for a livelihood even though it contributes just about 20% to GDP.

The other steps that need to be taken are already visible through numerous successful experiments that have been implemented by activists, NGOs, private sector companies and even many state agencies. The Indian farmer badly needs access to the market; and it is critical for the state to harness the power of internet and telecom technology to provide that access. Similarly, dozens of micro credit organizations have managed to reach rural India in a cost effective manner that public sector banks with their baggage of manpower and overheads have not been able to. All the state needs to do is to duplicate these entrepreneurial efforts by proving credit and guarantees.

But really, the most important step that needs to be taken to implement Green Revolution 2.0 is also the simplest and the most challenging. Just like India unshackled the animal spirits of entrepreneurial India in 1991 by lifting the heavy weight of the state, the Indian farmer too needs to be liberated from the heavy hand of a corrupt and patronage doling state. Green Revolution 2.0 will come when the Indian farmer has the freedom to grow what he wants and sell wherever he wants at the best price that he can get. The big question is: Will politicians like Sharad Pawar ever allow that to happen?
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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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