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Thursday, February 11, 2016

It doesn’t trickle down


Processes of knowledge diffusion reinforce inequalities. We need explicit pro-poor targeting of effort


There is much enthusiasm today for efforts to improve access to information about poor people’s rights and entitlements. In a much-debated recent example, Facebook’s “Free Basics” platform aimed to provide free access to a selected slice of the internet (including, of course, Facebook).
In arguing for Free Basics, Mark Zuckerberg said that “everyone… deserves access to the tools and information that can help them to achieve all those other public services, and all their fundamental social and economic rights.” I think we would all agree; less obvious is how much Free Basics would do that. Critics argue that it is a “walled garden” approach — indeed, a threat to net neutrality. There are other options using subsidised internet data packs, as in the proposal for India made recently by Nandan Nilekani and Viral Shah. On February 8, the Telecom Regulatory Authority of India (Trai) ruled against differential pricing for data packages; so the country will not get Free Basics.
Neither the Facebook proposal nor that of Nilekani and Shah includes explicit pro-poor targeting of efforts to enhance information access. Is that needed? It might be argued that it is likely to be the poor who are least connected now, so the gains will automatically be greater for them. Against this, those who have the hardware and are currently connected are less likely to be poor and will probably be in the best position to benefit from these initiatives, including enjoying any new subsidies.
Before India decides on how to enhance information access, more needs to be known about how well information spreads at present. There is already lots of “public information” out there relevant to poor people in India, and there are various dissemination channels, including the internet. Are the poor still sufficiently well-connected socially to tap into the flow of knowledge, or does their poverty come with social exclusion, including exclusion from information about programmes designed to help poor people? Is a more explicitly targeted approach called for? In short, does new knowledge trickle down?
In arguing for subsidised internet data packs, Nilekani and Shah use the MGNREGA as a motivating example. The MGNREGA created a justiciable “right to work” for all rural households in India. The most direct and obvious way the scheme tries to reduce poverty is by providing extra employment in rural areas on demand. This requires an explicit effort to empower poor people, who must take deliberate unilateral actions to demand work on the scheme from local officials.
In a book I wrote with Puja Dutta, Rinku Murgai and Dominique van de Walle, Right to Work?, it was found that most people in rural Bihar had heard about the MGNREGA, but most were unaware of their rights and entitlements under the scheme. Women were especially ill-informed about these matters.
Given that about half the adults in rural Bihar are illiterate, an entertaining movie made sense as an information intervention to try to inform people about the scheme. The setting and movie we produced for this purpose are described in Right to Work? and you can see the movie on my website, economicsandpoverty.com. The movie was tailored to Bihar’s specific context. Professional actors performed in an entertaining and emotionally engaging story-based plot whose purpose was to provide information on how the scheme works, who can participate and how to go about participating. The storyline was centred on a temporary migrant worker returning to his village from the city to see his wife and baby daughter. He learns that there is work available in the village under the MGNREGA, even though it is the lean season, so he can stay there with his family and friends rather than return to the city to find work. It was intended that the audience would identify strongly with the central characters.
With the aim of promoting better knowledge about the scheme in this setting, the movie was randomly assigned to sampled villages, with a control group not receiving the movie. Knowledge about the scheme was assessed in both treatment and control villages. Residents were encouraged to watch the movie but not, of course, compelled to do so. Some watched it and some did not. The movie was found to be successful in enhancing knowledge about the scheme.
In a new paper, “Social Frictions to Knowledge Diffusion”, written with Arthur Alik-Lagrange, I have used the movie to identify key aspects of how knowledge is shared within villages. The paper shows how such an information campaign can throw light on how new knowledge spreads within villages. It studies the impacts of knowledge, and the channel of that impact — notably, whether it was purely through the direct effect of watching the movie or whether it was through knowledge-sharing within villages.
While we find robust evidence of knowledge-sharing, the knowledge diffusion process within villages is far weaker for disadvantaged groups, defined in terms of caste, landholding, literacy or consumption poverty. For poor people, the direct effect of watching the movie is all that really matters to learning about the MGNREGA. In the main, it is the non-poor who learn from knowledge-sharing. There is also some indication of negative spillover effects for illiterate and landless households, suggesting the strategic spread of misinformation.
More knowledge about public programmes like the MGNREGA does not assure an effective public response on the service supply side.
The movie worked quite well in enhancing knowledge, but the supply-side response was still poor. Right to Work? also documents a number of specific, fixable deficiencies in the responsiveness of the MGNREGA in Bihar to the needs of poor people.
There is no denying that efforts are needed to improve the access of poor people to knowledge about public services that can help them. But these new research findings also suggest that such efforts need to be directly targeted to poor groups, rather than relying on prevailing processes of knowledge diffusion, which may simply reflect, and reinforce, existing inequities.

The writer, former director of the World Bank’s research department, is Edmond D. Villani Chair of Economics at Georgetown University, Washington DC
Source: Indian Express, 11-02-2016
Nothing to Drop?


Once, a great king decided to renounce his power and possessions and seek initiation from the Buddha as a monk. The bhikkus gathered around the hermitage to witness the ceremony . The king arrived, dressed in an ochre robe. His head was shaven, and he had dispensed with all his ornaments.He walked bare feet through the assembly of monks and in his right hand, he carried a priceless diamond, as an offering to the Master. In his left hand, he carried a rare white lotus -in case the Buddha refused to accept the ostentatious offering of the diamond. Buddha, seated with closed eyes, told the king, “Drop it!“ The king immediately dropped the diamond. Buddha's voice commanded again, “Drop it!“ The king now dropped the lotus.
Again, the voice commanded, “Drop it!“ The king was baffled, for he had nothing to drop now. He continued to walk towards the Master. But Buddha said once again, “I say to you, drop it!“ In one of Buddha's discourses, he had heard the Master say , “Yena tyajasi tat tyaja“ -leave that (the ego, or the `i' thought) through which you have left everything! He realised that he was still in the grip of the ego -that he had dropped the diamond and lotus at the Master's command.
He lacked the true humility that is the mark of a seeker. At that moment, he surrendered himself totally to the Buddha and dropped his ego. The Master opened his eyes and acknowledged him with approval -for, at that moment, the king had surrendered himself to the Master in all humility .

‘There is a kind of deep state in India’

ulitzer Prize-winning journalist Steve Coll on how India has changed since the 1990s and its way forward with its neighbours

Steve Coll, one of the foremost foreign correspondents and investigative reporters from the U.S., has won the Pulitzer Prize twice. He is a staff writer atThe New Yorker magazine and the Dean of the Columbia Journalism School. He is the author of Ghost Wars: The Secret History of the CIAAfghanistan, and Bin Laden, from the Soviet Invasion to September 10, 2001 (2004), The Bin Ladens: An Arabian Family in the American Century (2008) and Private Empire: ExxonMobil and American Power (2012). Before all that he wrote On the Grand Trunk Road: A Journey into South Asia (1994), a mixture of top-notch reporting and analysis based on his time as the Washington Post Bureau Chief for South Asia based in New Delhi. On a recent visit to India, Mr. Coll revisited the book and talked about India’s past, present and future.
Excerpts from the interview:
Q) You reported from India as the Washington Post Bureau Chief in the early 1990s—the time when Nehruvian state was staggering with bankruptcy. From that particular time to now, how much change has taken place?
It’s been dramatic and you are right, I was there at the beginning and some of it was the end of the cold war, the collapse of the soviet union, some of it was internal pressure from emerging middle class for more normal and open relationship with the world economy, and some of it was business class pushing for liberalisation and then you had leadership by Manmohan Singh who at that time was finance minister and started to articulate the way to describe reform without being trapped in the rhetoric of the past. It started from there and changes have been profound in a lot of ways, mostly involving economic world and the change in peoples incomes and mobility and then also in the infrastructure, not as much as the physical infrastructure as the technological infrastructure. And then the other thing on the dark side of development is traffic and the air is much worse.
I was at an event on this trip and someone pulled out that book [On the Grand Trunk Road] from 1994 and read a paragraph at the end of the book that was sort of about this question of reform and the future. It was a description of what I thought the middle class of India was looking for by way of leaving the Nehruvian state behind. And afterwards we were all reflecting on how that statement of what needs to change is still unfulfilled in important ways even though the country has changed profoundly. It’s almost half empty, half full.
Q) You write in The Grand Trunk Road that Indian middle class aspire for a forward looking political party that could lead them to economic progress, eradicate corruption and make things smooth. Two decades later, we saw Arvind Kejriwal led Aam Aadmi Party emerging from an anti-corruption movement…what kind of future does the AAP-style of politics has in India?
Well, it’s interesting because you have seen these movements, sort of middle class led, urban based, outside of reform movements spring up in number of countries. I think their record is pretty mixed. On the one hand they definitely have influence, they force the incumbent parties to shift and they can take office as Kejriwal has in Delhi. But there aren’t too many examples of those parties going all the way to national power building and entirely new organization because I think the incumbent parties can figure out how to co-opt their message and sort of take their agenda but hold on to power to some extent. One of the reasons why that’s the pattern is because the political parties and organizing require to compete in national elections even if they win state elections. It’s not something you can build overnight, it’s a real infrastructure, and it’s not always pretty, but it’s there, it’s permanent, and at voting time you can mobilize it, use it in ways that it’s hard for a new comer to replicate. In Pakistan for example, Imran Khan had a moment of sweeping the power from just the same kind of aspiration of urban middle class, especially in Lahore. I watched his party secretariat trying to come to terms with their own moment of opportunity and all of the administration associated with that moment of excitement choosing candidates all the way down to the provincial legislative district, figuring out how to choose candidates who would be aligned with their values and not be seen as the same old order switching parties. It is a kind of self limiting process. I suppose if you stick with it for long enough and you are good at it BJP is an example of you-can-come-out-of-the-wilderness with a fairly small and marginalized political organization, you can systematically build your way back, but it takes 10-20 years at least and you have to have a sustainable vision.
Q) In the 1970s, we have seen how public resentment against corruption morphed into what’s famously known as JP movement, which produced a new generation of politicians. Unfortunately, after serving various ministerial positions, most of them faced serious charges of corruption. You think the sustenance of political vision is subservient to how much money one can spend? Does that mean if business tycoons like Ambanis are on your side, you have a better chance to succeed?
Having Ambanis on your side is not necessary. It sort of depends on what aspect of the aspiration of urban middle class is you are talking about as the most important one. So let’s list a few: one is corruption, another is equal opportunity in education and economy. Corruption is a subject that politicians are not likely to solve because it is not in their interest to solve it. Otherwise, holding office would just be the same kind of a job as being a teacher; it might be stable, it might be a decent salary but it’s not that exciting, other than the opportunity to hold power and influence others. The people who have an interest in solving the corruption problem by and large are consumers and citizens and to some extent businesses, depending on which kind, small businesses, new businesses. The big ones can figure out how to work the system, they are part of the system. The way corruption usually falls in these kinds of settings, it never goes away, but if you look at the global indexes for perceived corruption around the world and you relate the clean countries to income; you could ask the question which countries are the least corrupt per income. I think you usually need some kind of pressure from outside that involves national laws and rules that force people into compliance and provide a reason why companies can resist demands for bribery and so forth. The more your economy becomes integrated in the international system, more dependent on international legitimacy it is, more corruption goes down.
On the subject of equal opportunity with efficient services there I think the citizens can have more impact faster because you see this in china as well the demands are for clean exams, fair exams standards, clean admission standards, therefore, health, therefore, clean air, clean water. And when you have an open society with a freedom of information laws like India you are empowering this agenda in a way that makes it harder to resist. There the incumbent parties are willing to change, that helps them stay in power if they deliver. I think corruption debate and struggle will probably go on longer than people would like but the politics of middle class can be advanced around government’s performance.
Q)To have that kind of ecosystem I think it’s important to increase peoples participation in governance, empower grassroots administrative systems so that development plans are made bottom up, rather than top down, and that needs a smooth devolution of power. Do you see that happening in India?
That’s a very sophisticated question. I think the particular structure of administrative districts and empowerment of district administrators and so on, that inheritance is a colonial inheritance adopted by the Nehruvian state. It is clearly not an efficient design either from the perspective of corruption or the delivery of services. That aspiration to work around that system through direct delivery of services accountability from the government to citizens through mobile payments, through verification, through other kinds of technological solutions that make it harder for the Nehruvian break off to incur without being nearly breaking on some electronic board. In principle that seems central because there is no constitutional design that’s easy to implement, that is going to get you very fast down that road, whereas transparency and direct contact between consumers and government around service delivery and that has the potential to make it necessary for government to respond to things that they otherwise would not. And India is in a position because it has advanced information technology and very powerful mobile phone network in a relatively dense population, coherent geography compared to certain places. All of these experiments around direct governance, they have potential. Everyone learns how to game systems and so forth. There is no perfect system. Putting citizens in a position to government directly through kind of a contract that connects them through technology to services they require. It is not just subsidies, like distribution of rations, but also things like air pollution….. You have in all over the world lots of models springing up that make it very difficult for governments to ignore. Or annoyances like holes in the roads that should have been fixed momentarily and haven’t been. So then if you put the citizens in a position to kind of have transparent oversight over at least some of the functions of government. Then the structure of the government, constitutional design matters a lot because whoever is in the government will be forced to respond to those demands otherwise they are going to have trouble at election time.
Q)You are suggesting a technology based solution. India is already debating net neutrality because internet freedom will be important for upward mobility as service delivery here is fast becoming IT-driven, which demands easing of Foreign Direct Investment (FDI), and which still faces a lot of political opposition. The fear is if we rely on technology that is corporate controlled, there is no guarantee poor people will get access to it…how do you look at that dynamic?
It’s always been the case in India’s independence movement, there has been this between the very deep rooted values of freedom and openness and democratic competition and very powerful static forces, incumbent political parties, other kinds of embedded groups. That’s the distinctive feature of Indian history because of the imperial inheritance but it is also India’s bottom up, sort of checks and balances and its aspirational grassroots attitudes that struggle with the state and the ability to do that without being mowed down by machine guns. That’s part of the history too.
France is another example. They built this system out of the chaos of the 18th century and the inheritance of the feudal system, quasi feudal system. Unlike in Britain and America, they still have that state; it’s still there… Those kinds of structures that come down from centuries they don’t go away that easily. But there has also been an evolution and a kind of a struggle with that state, to try to find an equilibrium that’s good for France, that’s French in character, that’s modern and connected with international economy. You can’t hide from international norms, over time you are going to have to adapt, you are going to have to adapt as far as American advice would wish you to go, and you are going to have to keep responding to these norms and rules.
Here is the thing I would say about the last 25 years. The balance of power in that struggle has clearly shifted away from the state and on the foreign side the ideas of reform are much more fully established, much more broadly based. In 1991, when Manmohan first started making speeches about liberalization which at the time was a very modest opening compared to the ideas that are on the table today. He had to stop in his speech after a few paragraphs and say ‘no we are not surrendering into the neo-colonialism.” This is a different discourse even though the incumbents are still strong and they still fight with some of that language.
Q) I wonder where that power has shifted now?
If I were here, I would have a richer sense of that. But I think the problem is that it has shifted to nifty fifty and their networks more than it has shifted to empower citizens. If you count the largest economic actors in the state as one complex then what’s really shifted is a lot of power has moved out of the bureaucracy and over to the international private sector and of course their agenda is different than the Nehruvian civil service bureaucracy. But it’s still not answering adequately to the demands of urban middle classes. The agenda of that sort of conglomerates is what the law the shareholders apply, which is they want to make money, they want to grow, they want to perform to international standards. And all of that creates good knock on effects but who is going to demand that government action deliver in shortest possible time transitions in the energy economy,
Q) Before coming into power, BJP’s election campaign was based on the idea that development is an idiom of nationalism, which I wonder whether it is a borrowing from China. But Unlike China, the model of rapid development has often triggered social tensions, slowing down the progress…how do you see that parallel?
The cliché about India and China is true. China had a commanding heights-led political economy that force marched transformation of physical structure even though they displaced tens of thousands of villagers and grabbed land, there was corruption, there was over building but they were able to, in the same way that Stalin forced Soviet industrialization, they were able to create a first class physical infrastructure—roads, airports, air traffic control, ports in a remarkably short period of time. We know from economics that investments in physical infrastructure of that type, no matter who makes them, no matter what their motivation is, they bring economical returns, they stimulate growth, so that is their advantage. On India’s side, because it’s an open competitive political system, you can’t just grab things, and land is the most difficult thing to work thing. So a rapid priority of physical infrastructure development was always difficult here and yet the country did find a way to be into virtual infrastructure, through telecom and software and knowledge and at that kind of a global level. That provided solvent for the economy that is comparable to that China experience. But it has left India in a strange place where they have this clear confident strategy for knowledge economy for the 21ist century whereas they don’t have anything for the late 20th century physical infrastructure. That problem was much more glaring in the early 2000s. When you went to china in early 2000s you’d say ‘My God they have separated from India.’
Q) With India’s changing political economy, do you see any foreign policy shifts? Has that middle path of Nehruvian state moved to any side?
Nehru’s foreign policy was born of the need to balance the superpowers of cold war and so it’s the post-cold war foreign policy which still is work in progress….on the region, I see more continuity the way India manages its strength vis-à-vis small neighbours, which is that it does seek to integrate those small neighbours into its political and economical spheres but it is also not aggressive, it’s not going to invade, it uses soft-power to try to create coherent sphere of influence with the big naughty problem of Pakistan stuck in the middle of that. Now, you have Pakistan as a proxy for the 50 year question of China. I think the most important problem in Indian foreign policy is the same one that is the most important problem in American foreign policy, which is how do you assess China’s rise, how do you manage it, how do you prepare for multiple scenarios without somehow making things worse by provoking, giving a sense that you are headed for conflict, or into passive, setting yourself up vulnerable. I think India and US share this dilemma. I think both elites are driven by a belief, a tentative qualified belief that engagement and integration through economic integration can succeed, that the history of rising great powers provoking wars can be avoided. I think a majority of both countries’ elites prefer the optimistic engagement strategy, but I think both countries recognize especially partly based on China’s nationalism they can’t take that for granted so they are going to have to prepare a long-term defensive containment strategy to make sure that if China does become expansionist or radicalized in some way, it can be restrained.
Q) You think the nature of India’s foreign policy changes with the changing governments? When NDA-I was in power the country started off a healthy looking dialogue with Pakistan but when UPA-I replaced the engagement fell apart. Now BJP is in power again, and Prime Minister Narendara Modi recently surprised us with his impromptu visit to Lahore. You think BJP can make significant changes via-a-vis its policy toward its neighbours; or, there is some secret state within India that controls everything from behind and the political actors at the front keep changing?
Well, there is a kind of deep state in India but it is really more than Indian foreign service than it is the intelligence agencies or the military. I think there is such complexity in Indian foreign policymaking system. There is no, in that way similar to the US, you have a lot of constituencies around the decisions. My own thinking is that Pakistani nationalism will always require hedging about India, it will always require relationship with China as a counter to the threat of Indian invasion, or destruction of Pakistani state. In a strategic sense, having a relationship with China is always going to make sense to Pakistan. But it needs to change in order for India and Pakistan to realise their potential even in that framework is for civilian leadership to emerge in Pakistan and to finally as happened in Indonesia, as happened in Argentina, as happened in Brazil, in Turkey; you have countries with long periods of military rule but where eventually because of internal forces and external forces it flips and you get genuine or at least a substantial civilian control over the military. It doesn’t usually lead to sharp departures in foreign policy but it leads to significant ones and in the case of India-Pakistan, if you had civilian leadership in Pakistan that truly had control of the activities of the military and intelligence services you could imagine a much more normal balancing policy and politics that didn’t involve proxy groups and violence and your relationship between Pakistan and China could evolve, and the relationship between Pakistan and India could evolve, you could resolve some of the territorial conflicts, you could start to cooperate on economic and infrastructure issues, you could start to cooperate on energy and water and a lot of shared interests there they have but it would require a different government.
Q) What we are seeing that the civilian government in India is run by a rightwing political party, which has promised to people in the past that if they come to power they will retaliate against Pakistan. Do you see BJP led India heading toward provoking war in future?
I think there is two things—one is the fever about retaliation and the frustrations that people generally have with persistence of terrorism, especially coming out of groups the Pakistani state may or may not control but it’s often collaborating with. The second thing some of it is media age, some of it is frustration about persistence of these attacks but really in the Pakistani relations, unfortunately, a fairly stable in a low burn, you know a mild burn, but there is just enough potential for escalation because of the persistence of these groups and because of the politics in India that requires some response depending on the scale of the attack. I am sure this government will figure out some kind of symbolic response. If you had a Mumbai or something like that then it would be a whole different scale. I mean because deterrence makes the land invasion impossible, because the last two big crises—the parliament attack and the mobilization it followed, the establishment knows that mobilizing for a land that is not going to fight is not a very smart strategy. But they haven’t had a military capability to do something lighter but effective. I think over 20 years, the kinds of territorial responses you would expect to see will be the kinds of the Americans have in such a situation, some kind of special forces helicopter raid against headquarters of Jaish or Lashkar, try to make some arrests, pull the guys away in helicopters, maybe some targeted drone strikes, that sort of thing, and challenge Pakistan…we have been asking you do this for so long and we had no choice but to defend our people by taking these measures. Americans have already established that model but the problem is that it has turned into a PR disaster.
I imagine India will develop that kind of multifaceted capacity because that’s how this challenge of semi-state sponsored jihadi terrorism will present itself probably for 20 or 30 years.
jeelani.m@thehindu.co.in
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Source: The Hindu, 11-02-2016

Wednesday, February 10, 2016

Is horticulture farming’s bright spot?

Consecutive droughts and freak weather in 2014 and 2015 dented India’s foodgrain production and worsened rural distress.
For farmers, the weather woes came on top of a drop in prices of key crops like rice, wheat, cotton and sugar. But one sector that escaped the weather shocks—if not the price drops— is horticulture.
Production of fruits and vegetables overtook India’s foodgrain production by a whopping 31 million tonnes in 2014-15 (284 million tonnes against 253 million tonnes). This was the third straight year when the horticulture output outstripped that of foodgrains.
Foodgrain p ro d u c t i o n dropped in the drought years (2002, 2004, 2009, 2014), while horticulture production was either unaffected or stayed on its upward growth trajectory ( chart 1).
How did the sector manage this feat? Are fruits and vegetables more resilient to drought than say rice and wheat?
A recent report, Horticultural Statistics at a Glance, 2015, released by the Union agriculture ministry (on 31 December), and previous reports from the ministry shows the structural change under way in India’s farm sector.
These numbers show that most horticulture crops are grown with assured irrigation and, therefore, are more immune to monsoon deficits. This varies from 71% of area irrigated for tomatoes to 86% for potatoes.
Eight vegetables that make up 74% of the total vegetable production in the country have 73% access to irrigation.
In comparison, only 50% of the area under foodgrains has access to irrigation.
Barring wheat, which is an irrigated crop, irrigation access varies from 16% for pulses to 59% for rice ( chart 2).
Another positive for horticulture is that fruits and vegetables are mostly grown by marginal and small farmers (with less than 2 hectares of land). This means that resource-poor farmers are likely to have benefitted most from the growth in horticulture sector.
More so, because the value of the horticulture output grew more than double compared with all other crops put together in the four years between 2008-09 and 2012-13.
Fruits and vegetables are grown in less than 5% of the country’s gross cropped area, compared to over 63% of the area used to grow foodgrains ( charts 3-5).
What drove the growth of horticulture sector in India? Better incomes, urbanization and higher consumption of fruits and vegetables seem to be driving the demand which is addressed by small farms. Consumption data from the National Sample Survey Organisation (NSSO) shows that while monthly consumption of cereals per person in rural areas declined from 13.4 kg in 1993-94 to 11.2 kg in 2011-12, consumption of vegetables went up from 2.7 kg to 4.3 kg during this period ( chart 6).
There is no denying that higher incomes have led to a diversification of diet from cereals to fruits, vegetables, meat and eggs and this seems to be driving demand, but data on horticulture production needs to be on a firmer footing, said Himanshu, associate professor of economics at Jawaharlal Nehru University, Delhi.
“The data is suspect as crop cutting experiments (for estimating production) are only done for field crops like potato and onion, while the rest of the production is poorly estimated,” he adds.
The agriculture ministry admits the challenges. Since vegetables are grown in small plots, or in the back of houses, they do not have a single point of harvesting, making assessment difficult, noted the Horticultural Statistics report.
In 2013-14, the ministry discontinued the earlier methodology and replaced it with what is known as CHAMAN (coordinated programme on horticulture assessment and management using geoi n f o r ma t i c s ) . This uses a combination of remote sensing technology, sample surveys a n d ma r k e t arrivals to estimate horticulture output and area.
Hopefully, the new estimation methodology which is piloted in six states now, will help better understand the changes under way in Indian agriculture and how the farmer undertook that journey.
But estimates apart, the flip slide to the success story of horticulture is that farmers have been regularly affected by price dips, especially during the harvest season of onions and potatoes.
For instance, onion prices plummeted to ` 7.5 a kg on Tuesday (9 February) in the wholesale market in Lasalgaon, Maharashtra, due to higher arrivals of the late Kharif crop. In August last year, well after the harvest season, prices shot up to ` 60 a kg in wholesale markets on fear of drought and lower supplies.
The drought is still there and so is the fear of a lower harvest, but the price dips and hikes imply that farmers are selling it dirt cheap after harvest, and traders are reaping benefits during the lean months.
It happened with potatoes, when in April last year farmers in northern India left their crop to rot in the field as prices dipped to a measly ` 2 per kg after a bumper harvest.
This means horticulture farmers need better access to markets, facilities like warehouses and cold storages, and credit to help them better manage price risks and avoid distress sales.
Just drought proofing—often through private investments by the farmers themselves—isn’t enough.
Source: Mint, 10-02-2015

Labour ministry to restructure job survey, include service sector data

Labour bureau to visit over 10,000 firms every quarter, more than four times present number, to track employment

The Union labour ministry will revamp its quarterly job survey to reflect the latest employment data from both the manufacturing and service sectors in a bid to make it more structured and sync it with policymaking.
So far, employment data collection in India has been ad hoc, patchy and irregular. For instance, employment data from many manufacturing and export-oriented firms is available only up to June 2015, unlike export data, which comes in every month.
“The quarterly survey will be revamped soon. We are looking to expand the base of the survey as well. The aim is to have regular up-to-date jobs data for both policymaking and public consumption,” said Daljeet Singh, deputy director general of the labour bureau, which functions under the labour ministry.
“The quarterly survey which has been carried out since 2008-09 (but only for a small segment of companies) will be expanded,” Singh said, adding that the expansion will be in terms of firms visited and sectors covered. The labour bureau will visit some 10,000-plus firms every quarter—more than four times the present number—to track the employment scenario, he said.
To the list of labour-intensive and export-oriented manufacturing companies, the ministry is set to add more job-creating sectors, including banking, insurance, e-commerce and small and medium enterprises, to “get a complete picture”.
The quarterly employment survey was started in OctoberDecember 2008 to assess the impact of the global recession on the Indian job market in eight sectors: textiles, metals, automobiles, leather, gems and jewellery, information technology and business process outsourcing, transport, and handloom and power loom.
“Jobs data internationally create a lot of buzz but in India we have not done that yet on a regular basis. We have been discussing the idea for several months and the broad consensus is that there needs to be a structured employment survey quarter after quarter, with the results announced in time—not a year after,” said a labour ministry official, who declined to be named.
Kamal Karanth, managing director at human resources firm Kelly Services India, said that India does not have a culture of collating structured employment data regularly, but it has huge demand. “Different companies release some jobs surveys but that’s not official reliable data. The labour ministry runs the Employees Provident Fund Organisation and it can be used to track job creation as addition and substraction of active subscribers can be traced through it,” said Karanth.
He said that while there will be initial hiccups and criticism to such an exercise, the ministry should go ahead. “They can track the service sector as it forms a large portion (53%) of the Indian economy now,” he suggested.
Karanth, however, said tracking jobs at the bottom of the pyramid and in sectors like construction will be a challenge.
The labour bureau’s Singh said that though the ministry of statistics was talking about conducting a similar survey, there is no final decision as yet. “They will conduct a pilot late this year but the final outcome is not known. We have the capacity and capability of conducting such a survey and are looking to have a dedicated set of people to conduct the task.”
Despite talk about jobs, employment generation fell by a net 43,000 in the three months ended 30 June from the previous quarter in manufacturing and export-oriented units, according to the labour ministry’s 26th quarterly employment survey.
The net fall in jobs created was the lowest since April-June 2009 (131,000), the height of the global economic crisis, Mint reported on 10 December.

Source: Mint, 10-02-2016

Google to offer flood alerts for India

Google will make public emergency alerts for floods available in India as part its efforts to make critical information more accessible around natural disasters.
“Users in India can now find ‘flood alerts’ along with ‘river level’ information for more than 170 areas in which the Central Water Commission (CWC) has active observation stations,” Google said in a statement on Tuesday.
These alerts are available on web search, Google Now Cards on the Google app, maps as well as Google Public Alerts homepage, it added.
The alerts will be created and shared using data provided by the CWC, Google said.
“Timely information is the first step in disaster preparedness and has the potential to save thousands of lives lost to natural disasters each year,” Google product manager Payal Patel said.
By making critical information more widely available to people, flood alerts will enable citizens across the country to make quicker and more informed decisions, she added.
In 2015, Google introduced ‘cyclone alerts’, which offers information with details about the hazard, including a map and expected timeline, as well as tips on how to stay safe.
Keywords: Googleflood alerts
Source: The Hindu, 10-02-2016

Internet power to the people

TRAI’s vigorous endorsement of net neutrality safeguards the Internet against platform monopolies, retaining the ability for users not only to be consumers but also creators of content

The regulations issued by the Telecom Regulatory Authority of India (TRAI)barring differential pricing of data based on content have created a global impact. A friend, who runs a major international software company, called it the most important victory for the people in the tech space in the last 20 years. India has joined a select few countries that have protected net neutrality and barred zero-rating services.
What makes this “victory” even more surprising was the complete asymmetry of the two sides involved. On one side was Facebook, a company whose market cap is greater than the GDPs of 144 countries, allied with a bunch of big telecom companies (telcos). They had already “won” easy victories for their platform in a number of countries, and felt India would be no exception. They had an ad campaign that estimates put at Rs.400 crore. On the other side was a motley group of free software and Internet activists, with unlikely allies such as comedy group AIB, a bunch of start-ups, and some political figures and formations.
The argument that Facebook was using appeared simple. Why should anybody deny the poor getting some access to the Internet — even if this was limited? Isn’t something better than nothing? Mark Zuckerberg not only wrote articles terming his opponents “Net Neutrality fundamentalists”, but also appeared in advertorials in the electronic media to push Free Basics. Some commentators wrote plugs for Facebook in the guise of opinion pieces, all more or less posing different variations of the broad theme that Zuckerberg’s heart beats for the Indian poor.
To beat back such an offensive, backed by the full power of Facebook’s media blitz, was no ordinary event. So why did Facebook’s campaign fail?
People’s campaign prevails

First is, of course, the energy and the creativity of the groups fighting Free Basics. They not only ran an innovative and creative campaign, but were also able to bring tech activists on to the streets. What surprised even them was the response of the people.
I am convinced that Facebook and their ad agencies completely underestimated the Indian public. Even if all of them do not use the Internet, they understand the difference between having access to the full Internet, with nearly a billion websites, and the so-called Free Basics platform that provides Facebook and a few other sites. They are sophisticated enough to know that Free Basics would not offer them any of the things they really want to access. No search, no email, no access to various services; no pictures or video clips for entertainment either. No access to the rich diversity of views and material on the Internet. Only a sterile walled garden where, at best, you can see what your friends are doing.
A level playing field

What is the flip side of such a platform? Other people who want to have the full Internet could still access it, so why is Facebook’s Free Basics harmful?
TRAI has correctly pointed out that the tariff principle at play is whether we can have differential pricing of data based on the content we see. If we accept this principle, what then prevents telcos from charging various websites and Internet services for accessing their subscribers? Accepting that one form of price discrimination is okay opens the door to all other forms of discrimination as well.
This is where Net Neutrality comes in. The most important characteristic of the Internet is whether it is the richest corporation in the world or an individual writing a blog, both are treated identically on the Internet. If the blogger had to negotiate with the Internet service providers (ISPs) — in today’s world the telcos — to reach the telco subscribers, she would have to negotiate with thousands of such ISPs. Telcos would then be the gatekeepers of the Internet. Only the biggest corporations could then survive on the Net. This is how the cable TV model works; for their channels to be carried, the TV channels have to negotiate with all the platforms such as Dish TV, Tata Sky, etc. If we accept that telcos can act as gatekeepers, we would then lose what has given the Internet its unique power, the ability for us not only to be consumers but also creators of content.
In its nascent phase, the big telco monopolies tried to levy a “tax” on all Internet content providers. The Internet companies were then the new kids on the block. They and the Internet user community fought back such attempts. This was the first net neutrality war, and it established the principle of non-discrimination on the Internet between different types of content or sites.
The scenario has changed dramatically today. We have the emergence of powerful Internet monopolies that are much bigger than the telcos. Not surprisingly, these companies now see the virtues of monopoly. They would like to combine with telcos to create monopolies for their platforms, ensuring that they control the future of the Internet and freeze their competition out.
Today, we have nearly a billion websites on the Internet and 3.5 billion users. This means that nearly one out of three users is both a content provider as well as content consumer. What the Internet monopolies want is that we should be passive consumers of their content, or at best generate captive content only for their platforms. This is why they have joined hands with telcos to offer various forms of zero-rating services.
Future-proofing policies

The two most common forms of zero rating used by telcos are (a) no data charges for a select set of sites, e.g. Facebook’s Free Basics, and (b) a few content providers such as Netflix not being subjected to data caps by telcos. The TRAI order bars both these forms.
The other issue that TRAI dealt with is whether regulatory policies should be crafted to prevent harm (ex ante) or be applied only after harm has been established. The argument of the telcos has been, “prove there has been harm, otherwise we should be allowed to do as we please”. TRAI has again correctly pointed out that not crafting the right policies for the Internet would distort the basic character of the Internet itself. It would then help the well heeled, who would be able to take advantage of a lack of policy. The TRAI order also points out that without the right policies, each tariff proposal would have to be analysed on a case-by-case basis, imposing high regulatory overheads.
The last issue we need to examine is how a powerful monopoly can bend policy by virtue of its control over its users. Facebook not only launched a media blitz but also ran a completely misleading campaign on Free Basics to its 130 million Indian subscribers. Through its various pop-ups and user interface, it pressured its users to send TRAI a boilerplate statement of support for Free Basics. It even painted this as providing basic Internet to the poor, without informing its users that Facebook was the sole arbiter of what constitutes a basic Internet.
The question is, can a platform monopoly — of the type Facebook, Google are — use this monopoly to run a campaign on a country’s policy? Facebook is a foreign entity and has argued before Indian courts that it is not accountable to Indian laws. Should such entities have such power over our peoples’ lives?
A media company is supposed to differentiate between advertisements and news. Facebook did not identify its plug for its Free Basics platform on Facebook as opinion but presented it as truth. How should online media conduct itself in the future on such issues?
TRAI had rebuked Facebook on its attempt to convert TRAI’s consultation on differential pricing to a numbers game. TRAI wanted clear answers to the questions they had posed, not boilerplate emails saying how people loved Free Basics. But it still leaves unanswered the question of what are the rights and duties of such platform monopolies towards their users. With Google and Facebook emerging bigger than many nation states, this is the key question for the Internet in the future.
(Prabir Purkayastha is Chairperson, Knowledge Commons, and Vice-President, Free Software Movement of India.)
Source: The Hindu, 10-02-2016