Archive for November, 2007

Gandhian model of economic development juxtaposed with market economy! Hard to believe, but this could actually be the winning strategy in the war against rural poverty.

Tuesday, November 6th, 2007

It was the day after Gandhi Jayanti that I got on to a train to Deoghar, in Jharkhand. My friends at Pradan (Delhi-headquartered NGO, active in seven states) had been nice enough to help me plan this trip.
Deoghar district, like neighboring Godda & Dumka, figures in the ‘Most Backward 100 districts’ list, published by India Today few years ago.
So, it was a fascinating coincidence that, as the CII-sponsored India @ 60′ celebrations got underway in New York – the epicenter of the globalized economy- here we were, in Jharkhand, about to witness an experiment in home-grown Gandhian model of economic development.
Without sounding hopelessly romantic or impractical, I must say I came away reasonably convinced that Pradan’s Gandhian-style economic model, juxtaposed with the western-style market economy, can actually be a recipe for inclusive growth. I got a glimpse of how Pradan has organized 100,000 families into 5300 Self-Help Groups (SHGs), to enhance their livelihood options, and escape poverty.
Although most families in Jharkhand own 1-2 acres of land, but they are constrained by the uneven terrain, quality of land, and lack of irrigation. In such a situation, Pradan identifies and develops enterprises suitable for local needs, provides resource persons, and creates linkages with government and financing agencies. So you have Tasar plantations, poultry, dairy, horticulture, and vegetable farming becoming available as options. Also, through better ‘watershed development’, farmers can improve the yield from their land holdings.

Watershed development
In Titariya village (Banka district, Bihar), Pradan’s Pranjal Saikia (a veterinary scientist from Assam) introduced us to the Village Watershed Committee (VWC). He has been working with the VWC to bring in a set of revolutionary innovations that are transforming waste land. Whether upland, mid-land, or low-lands, these districts have a lot of land rendered waste due to their inability to retain water for cultivation. In such a situation, innovations like ‘5% Method’, ’30 ft by 40 ft’, ‘Staggered trench’, and ‘Drip Dams’ now enable farmers to prevent soil erosion and retain water. The outcomes are unbelievable – a 2nd paddy crop; mango, lemon and papaya cultivation.

Dairy farming

Elsewhere, in Jharkhand’s Mahadevgarh village, we saw how Santhal families of Dulari Kisko and Sonia Tudu were now earning Rs 1000/- more per month, thanks to newly-introduced dairy farming. Pradan facilitated a grant of two cows and a shed from the Tribal Welfare Council, and linkages with the state dairy council for milk collection.
As these changes take place, it is amazing to see how villagers’ perceptions and attitudes change completely. They become receptive, and actively seek additional livelihood options like Tasar cultivation or yarn production, as the next story will show.
The real take-away for me is that Gandhian-style economic development, customized to local needs, and juxtaposed with the market economy, can actually be a scaleable model for India.

The silent Tasar revolution in Central India.

Tuesday, November 6th, 2007

Birma Devi animatedly described her ambitions for her two sons who have studied upto Inter and Matriculation respectively. She wants one of them to become a teacher, and the other a politician. Listening to her, it’s hard to believe that, just ten years ago, hers was a family where they had hardly enough food for even six months in a year. But, for 10,000 families in Jharkhand, and many more in neighboring states of Central India, the silent Tasar revolution has offered new hope.
The efforts of NGO Pradan (along with its sister organization, Masuta) now account for as much as 15% of India’s Tasar yarn production. Their vertically-integrated Tasar strategy covers everything from rearing (of tasar cocoons), to reeling (producing yarn from tasar cocoons), and finally, weaving.
Hari is one of the 12 farmers in Sadalpur village who took the step towards Tasar rearing after hearing from Pradan and others that he could earn upto Rs 15,000/- additional income. It was exhilarating to walk through the 70 acres of ‘netted’ greenery in this village where 65,000 ‘Arjuna’ plants host the Tasar cocoons. (The nets prevent damage to plants, and protect from birds of prey).

Tasar rearing

We next drove to nearby Raksha village where a group of 30 women have formed a ‘Mutual Benefit Trust’ (MBT) to produce tasar yarn, from the cocoons. This is where Birma Devi works. While she and other women are at work, their small children are looked after at an on-premise crèche. The kids even sang and danced for our benefit!
There are almost 2000 such yarn producers in all.

Tasar reeling centre
 

 Madhabananda Ray

Madhabananda Ray, the Chief Executive of Masuta points out that this Pradan/Masuta model allows 53% of added-value to be retained by the actual producers, unlike the traditional model where only 25% was possible, after cocoon and finished-goods traders had taken away the lion’s share. Also, apart from the sheer quantity of jobs created, there is also the qualitative, social dimension – tasar offers a dignified job opportunity for marginalized groups like women and landless farmers without being exploitative.
The Tasar revolution can only be the beginning of something much bigger. If everyone has to earn a livelihood, NGOs like Pradan need to keep innovating. In Madhab’s words, “we need a Bell Labs of livelihood innovation

Hard to believe that such people still exist. My time with ‘Team Pradan’.

Tuesday, November 6th, 2007

Satyabrata Acharya has one of the most important jobs in India. As Programme Director, Jharkhand for NGO Pradan, he leads 12 teams who are responsible for guiding over 100,000 families out of poverty.
Dhrubaa Mukhopadhyaya heads one of these teams. When, after graduating with an M.Phil from Jadavpur University, she joined Pradan in 1995, her teachers and classmates thought she was nuts! Today, she and her team of Executives, Subject Matter Specialists (SMS), and Development Apprentices work with 250 villages in two districts of Jharkhand and Bihar- helping them improve their land condition, increase agricultural productivity, and explore additional livelihood options.

Satyabrata Acharya, Dhrubaa and Sujata

Sericulture expert, Prabhati, and Development Apprentices, Meena (Patna University,’07) & Bhavna (BHU,’07) are three young ladies roughing it out in the villages. Working as part of Dhrubaa’s tight-knit team, they display a passion that is hard to find in urban centers today. I witnessed Prabhati and Meena training villagers to produce Tasar cocoon, while Bhavna sang & danced with tribal kids at a mobile crèche being run by Pradan at village Raksha( while the mothers were busy at the Tasar reeling centre).

Young ladies of Pradan
Having been a spectator to the HR mayhem in metros and mini-metros, where youngsters driven purely by material gains, accept and leave jobs every six months, it was something else to see this young Pradan brigade in action.
Pradan carefully hires and nurtures this young talent. Sujata Nath, the talented HR Executive who traveled with me on my field visit, filled me in on the details of the intensive 12-month apprenticeship that all Pradan hires go through. But, as Pradan scales up its operations to meet its Vision 2017(of working with 1.5 mn poor families), it needs as many as 100 teams(= 800 people) across the country. For Pradan’s HR Director, Nivedita Narain, this is the real HR challenge. On the one hand, Pradan needs to hire such large numbers; on the other hand, retaining this trained and committed team is an equally big challenge. As these executives reach their late-20s or early-30s, and have families, they feel the need to move to an urban centre, in order to get better housing and education.
One way to overcome this hiring challenge is for Corporates to collaborate with large NGOs like Pradan. 4 to 6 years of Pradan training produces some of the best managers who understand rural markets; for corporates addressing mass markets, this could be a boon. By working together with corporates, Pradan could continue to hire the best youngsters, while offering them a road-map (to a corporate career) after 4-6 years.
Are companies like ICICI, Unilever, Asian Paints, and Mahindra’s ready?

Gentlemen, to your left is Bihar; and to your right is Jharkhand. (The case for smaller states).

Monday, November 5th, 2007

This is an interesting sidelight of my trip to Jharkand and Bihar. On the last day of the trip, we drove from Jharkhand’s Deogarh district (where I was staying) to Banka district in Bihar. As we started the journey, I was pleasantly surprised to see that the narrow, straight road was in very good shape. Conditioned by my recent experience with rural roads in Western Orissa, I had anticipated a rough, bumpy ride, but this was different.
The first hour was wonderfully smooth…..until we reached Bihar!

Road to Bihar

The same straight road suddenly turned unbelievably pot-holed, and I could not but resist capturing this contrast, for posterity.
Apart from the superior condition of roads, I also saw and heard other evidence in Jharkhand that the government machinery does deliver results. One such example was the Dairy initiative being run by the Tribal Welfare Council which grants a shed and two cows to tribal families, thereby enabling them to earn an additional income of over Rs 1000/- p.m.
Notwithstanding political jugglery and the usual kinds of administrative corruption, Jharkhand seems to be delivering better governance than its elder sibling, Bihar.
Couple of years ago, my friend Shankkar Aiyar (Managing Editor, India Today) did a path-breaking feature on India’s 100 most-backward districts, and asked whether smaller states were the answer. He wrote, “In recent times, politicians such as Goa Chief Minister Manohar Parrikar and former finance minister P. Chidambaram have argued passionately to reorganize states in smaller sizes so that those left behind in the maze of development can be helped……. But will creation of smaller states help? On paper it seems so, since smaller states have done better. But the acid test would be a study of Chhattisgarh, Uttaranchal and Jharkhand. The jury is still out on that”.
In my view, the verdict seems clear. Jharkhand has made progress beyond what Bihar offered. Unless Nitish Kumar does a brilliant job, and Madhu Koda messes things up, it is likely that the junior sibling will keep moving ahead.