Tuesday, March 1, 2011

India 2.0 The Future is Today

That India is a technological leader, not marching but rather moving smoothly and swiftly into the future, is seldom a matter for dispute. In fact, it is not really discussed but simply assumed as the conversation progresses.

Still, as with any country or economy, there are adjustments to be made in the economics of a country's economy.

The issue of food is uppermost on the minds of the people of India. In a previous monograph, I referred to increased supply. A literal understanding would be counter productive. The issue is not resolved by saying, "Grow more food." However, if we were to discuss the issue from that statement, we would have to ask, "Do the same number of farmers increase their output, or do we need an increase in the number of farmers?" A subtext would involve farmers joining to take advantage of economies to scale, and form large farms. (Remember, the absence of primogeniture caused the collapse of pre Soviet Russia. The absence of private ownership led to the collapse of post-Czarist Russia. Conclusion: many small farms don't satisfy the need; collective farming won't solve the problem.

The first issue to address is that India has a culture of co-operation. This will serve India well as time marches on. However, on the question of supply, we are not simply suggesting more food for today; but a stable supply of food for a foreseeable future.

Two problems indicated in recent reports from the media are that

1. India cannot get food to the market. It rots before it can be sold or eaten; and 2. That the fluctuation in food prices in a largely agricultural nation has a greater impact in that nation than they would in a heavily industrialised nation.

Some options to consider.

If there is difficulty getting food to the market,

the food can be preserved at the source. Canned and frozen foods, processed at the source, can be stored as a hedge against future food supply failures. In addition, they can be sold on the national and international market. (The marketing of Indian cuisine can become a larger industry. I had curry for the first time when I was about 9 years old. Only recently have Indian food products made their appearance in supermarkets. That is a gap of almost half a century.)

The food supply prices can be leveled slightly through the investment in commodity options. This would allow investment consortia to

a. Have food available at a more affordable price if food prices rise considerably
b. Provide a return on the investment if national supplies are sufficient to meet demand
c. Provide the necessary supply of food to process for market and hedge against a future crop failure
d. Attract investors to partner with the agriculture, manufacturing, and finance industries to bring in money for capital investment.

The government can assume the responsibility of developing roads; negotiating trade deals (read: taxes, tariffs, concessions, etc.), and provide for a stable food supply and food pricing system to stabilise the government.

The economic growth, political stability, national unity, can be promoted.

Now, many people are skilled in the various areas mentioned above. The only thing necessary is what is too often referred to as a shared vision. This monograph is a demonstration of one of the few times that the term, shared vision, may perhaps have been used appropriately.

Sincerest regards,


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