Thursday, January 05, 2006

Re: MNCs Sucking up India's IQ - Tom Friedman


There are a number of tasks that can and should be undertaken in order
to help the farming sector. At the outset, there is need for a Chambers
of Farmers somewhat similar to Chambers of Commerce and Industry. Such
chambers (and a National Chamber) should have the vision and mission to
develop the farming sector into a profitable and a thriving business. A
Chamber is a private organization as opposed to a Government run
organization. Initially, Governments may be involved in these tasks,
but ultimately, governments should leave the area to the Chambers.

Such Chambers should develop business plans (Situation Analysis, Ends
plan, Means plan, Strengths, Weaknesses, Opportunities, Threats,
Strategic Objectives, Implementation plan, and so on).

As it happened in the Developed Countries, there can only be a few
entrepreneurial farmers with a highly knowledge-intensive farming.
Taking land from those who possess it and subdividing it into
uneconomical lots is counter productive. The Chambers (and government
agencies till the Chambers are constituted) should look at optimal unit
size of a specific farming business and optimal inputs into such a
unit. For example, every farming enterprise requires resources (money,
labor, power, water, seeds, fertilizer, pesticides, technology,
knowledge, and so on). Less than optimal allocation of any of these
resources is wasteful of all resources. The optimal allocations will
necessarily vary with the type of crop, region, and other factors.

What do you do with the people displaced from farming (if optimal labor
is employed and that results in excess labor)? This should be taken as
an opportunity to train them in literacy, and knowledge and skill
enhancement. In essence, the excess labor has to be trained and readied
for the New Economy. For example, the National Rural Employment Scheme
(minimum Guaranteed Employment) should perhaps be used to train rural
laborers in other vocations by setting up thousands of adult literacy
and vocational schools. Other approaches should be conceived to
alleviate this problem.

Making easy and ready access to Information and Knowledge (I&K) is
critical. This places emphasis on Information & Knowledge. Information
technology (IT) is likely to provide ready access to information and
knowledge. (I distinguish between IT and I&K.)

Indian experience with the highly successful IT sector has demonstrated
that private sector with a market perspective is the right and
beneficial approach. The Chambers of Farmers should work towards
delivering products that meet the needs of the market (consumer) at
competitive prices and with quality of service.

Of course, this conceptual approach can be developed in detail for
implementation.

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