I was very happy reading the news about first Aadhaar being issued to a person in Rural India. Its advantages are best seen when this not only considered as an ID but a passport to avail various benefits and services using IT enabled services.
Its been reiterated many times about the benefits of unique ID and what it can bring to millions of fellow Indians but none of the earlier attempts to create one were successful due to many reasons. We are a country of over 1.2 billion people and any effort to identify and issue a unique ID card is not an ordinary task. My hope this time that the latest technological advances in capturing various dimensions of citizen identity data(demographic, biometric and retina scan) and software tools to compare and detect the duplications of non textual data(Visual) will assure that this card is universally acceptable without doubt.
Benefits of this newly possessed identity can be better served only if we build applications and services that are focused on transparency, accuracy and faster of delivery of them. Adapting such systems will require careful planning, and proper execution. A public private partnership in building these applications may offer better results.
Monday, October 4, 2010
Saturday, June 19, 2010
Spot E-trading at Agricultural commodities Markets -- My thoughts
I came across this news few days ago on 'Spot E-trading to unleash power of commodities' that will soon integrate markets electronically across a few states in India. Though it is a first step in the right direction, it is designed to be used by the traders who are already licensed by the state Agricultural Produce Marketing Companies(APMC) to bring more transparency in pricing and hoping that the added competition will enable farmers to get fair prices on their products. Though the system offers the right solutions in certain areas(ware housing and guaranteed loans) it is failed to address the primary goal in solving the agriculture product marketing issues faced by the farmers in right approach.
Few state APMC's (for e.g. AP) do have transparency in pricing and offer a level of competition among the buyers to benefit the farmers from increased competition. But the system severely limits the competition only among the registered agents (buyer agents/buyers), which offers an opportunity for these players to operate themselves as syndicate's or pre-agreed, arranged upon pricing across the markets. This buyer tactics are severely limiting the farmers in demanding fair pricing on their produce.
Also, these market solutions are placing the market manipulators in commanding positions, which are in no way different from the quo. The only difference being the transactions are handled electronically rather physically at mandi's. They still enforce some restrictions on who can participate in the marketplace with the introduction of warehouses and warehouse receipts. Though warehouses may offer added value in securing loans using guarantees and being able to hold on to the goods until he gets the right offer, this adds an undue burden of additional warehousing costs, transportation and limiting himself to the markets that operate within that region.
A right approach to this problem is creating an online exchange or market place for non-perishable agricultural products(grains, lentils, cotton etc...) with no restrictions on who can participate in the system. This approach would correct the market to reflect(or closely resonate) the retail prices as the end consumers will be enticed to the market by better prices it offers that benefits the farmers further. Devising an open market will bring on its own challenges with respect to trust in the market place, quality of the produce, logistics and on time delivery, payment processing etc... These are some of the reasons why other market makers are moving towards a closer market where these factors will not be of a great issue. These trust issues can be alleviated to some extent with the adoption of Adhaar(Unique ID project) identity in to the system with a feedback ratings approach (like on ebay) which will incentivise the market players to be more honest in the market place that will help their long term marketability.
A good market place that incorporates all the best practices, encourages a fair play and easy to adopt interface will make a big difference in the lives of communities offering better earnings. Governments still have a role to play in the new system to determine minimum prices to prevent when the supply is in abundance (good harvest, monsoons etc).
Few state APMC's (for e.g. AP) do have transparency in pricing and offer a level of competition among the buyers to benefit the farmers from increased competition. But the system severely limits the competition only among the registered agents (buyer agents/buyers), which offers an opportunity for these players to operate themselves as syndicate's or pre-agreed, arranged upon pricing across the markets. This buyer tactics are severely limiting the farmers in demanding fair pricing on their produce.
Also, these market solutions are placing the market manipulators in commanding positions, which are in no way different from the quo. The only difference being the transactions are handled electronically rather physically at mandi's. They still enforce some restrictions on who can participate in the marketplace with the introduction of warehouses and warehouse receipts. Though warehouses may offer added value in securing loans using guarantees and being able to hold on to the goods until he gets the right offer, this adds an undue burden of additional warehousing costs, transportation and limiting himself to the markets that operate within that region.
A right approach to this problem is creating an online exchange or market place for non-perishable agricultural products(grains, lentils, cotton etc...) with no restrictions on who can participate in the system. This approach would correct the market to reflect(or closely resonate) the retail prices as the end consumers will be enticed to the market by better prices it offers that benefits the farmers further. Devising an open market will bring on its own challenges with respect to trust in the market place, quality of the produce, logistics and on time delivery, payment processing etc... These are some of the reasons why other market makers are moving towards a closer market where these factors will not be of a great issue. These trust issues can be alleviated to some extent with the adoption of Adhaar(Unique ID project) identity in to the system with a feedback ratings approach (like on ebay) which will incentivise the market players to be more honest in the market place that will help their long term marketability.
A good market place that incorporates all the best practices, encourages a fair play and easy to adopt interface will make a big difference in the lives of communities offering better earnings. Governments still have a role to play in the new system to determine minimum prices to prevent when the supply is in abundance (good harvest, monsoons etc).
Saturday, October 31, 2009
Rural Empowerment - why we need it?
As been reported in various publications recently, rural economy has vast potential both in terms of purchasing power and productivity. With a huge customer base (about 600 million), this economy attracting attention of both domestic and multinational enterprises. Even though this unprecedented attraction to this customer base is widely welcomed and appreciated, brings in another task of upbringing these people to sustain this economic wave.
Purchase power of these population as measured by these multinational entities and statisticians is the result of their lifelong savings and not from the recurring income standards. Unless we improve the economic standards, they will slid off the wave unnoticed causing systematic economic unrest caused by the widening of income and living standard disparities. Its hard to devise a quick fix to this problem given the limitations and the constraints.
We have to provide solutions to this section of the society to improve their economic capabilities both in terms of income and stability. Given the nature of their livelihood based on farming and agro based industries, it is hard to produce more with in same unit of land. We can't really crank up the production given all these constraints an unexpected natural calamities.
Other option is to improve their earnings is by increasing the value of their productivity. As the commodity prices are regulated by the market forces and partly subsidized by the government for the poor to feed themselves within their budgets. This option is not only feasible but also will have a greater impact on inflation and other economic factors.
The best option is to find a middle ground by reducing the cost of farming by utilizing advanced farming methods, by improving resource utilization and by minimizing fertilizer/pesticides which minimizes the capitol needs and by improving their marketing capabilities so that their produce can fetch reasonable prices. All of these can be achieved by educating these farming communities on these with proper guidance and information sharing. Let's call this as "Rural Empowerment"
Rural Empowerment should provide the necessary information to rural communities in a most usable form that can be easily digestible, readily accessible when needed so that they can make educated decisions based on their experience, available information and their better judgment. This can be achieved by utilizing the ubiquitous communication channels by customizing the content and delivery choices based on the user needs and providing a way to request any specific information needs with ease of use.
Purchase power of these population as measured by these multinational entities and statisticians is the result of their lifelong savings and not from the recurring income standards. Unless we improve the economic standards, they will slid off the wave unnoticed causing systematic economic unrest caused by the widening of income and living standard disparities. Its hard to devise a quick fix to this problem given the limitations and the constraints.
We have to provide solutions to this section of the society to improve their economic capabilities both in terms of income and stability. Given the nature of their livelihood based on farming and agro based industries, it is hard to produce more with in same unit of land. We can't really crank up the production given all these constraints an unexpected natural calamities.
Other option is to improve their earnings is by increasing the value of their productivity. As the commodity prices are regulated by the market forces and partly subsidized by the government for the poor to feed themselves within their budgets. This option is not only feasible but also will have a greater impact on inflation and other economic factors.
The best option is to find a middle ground by reducing the cost of farming by utilizing advanced farming methods, by improving resource utilization and by minimizing fertilizer/pesticides which minimizes the capitol needs and by improving their marketing capabilities so that their produce can fetch reasonable prices. All of these can be achieved by educating these farming communities on these with proper guidance and information sharing. Let's call this as "Rural Empowerment"
Rural Empowerment should provide the necessary information to rural communities in a most usable form that can be easily digestible, readily accessible when needed so that they can make educated decisions based on their experience, available information and their better judgment. This can be achieved by utilizing the ubiquitous communication channels by customizing the content and delivery choices based on the user needs and providing a way to request any specific information needs with ease of use.
Friday, October 23, 2009
Role of Social Enterprise in Rural India
Over 60 percentage of Indian population is living in rural India, primarily depending on agriculture and small-scale industries for their livelihood and almost half of them living below poverty line working as laborers, small-scale farmers(with irrigable land of below an hectare). Its an inordinate task for any government to provide necessary facilities and social welfare activities to cater these under-served below poverty line population.
Given the state of infrastructure and government priorities, a lion share of government spending is being allocated to infrastructure improvements and social welfare activities that feed the people in need. These efforts are not sufficient enough to cater everyone in need. We often come across the news about suicide deaths, malnourishment among kids and women, hungry and sick kids begging on the streets etc....
In my opinion, the right approach is to emphasize on rural empowerment, providing access to information, educate them on the tools and facilities that they can use to overcome these hurdles and provide a clear path for them to lead better lives rather subsidizing.
There may exist many solutions to help and empower these rural dwellers and their interests will be better served when the entrepreneurs come forward with solutions that help these people in need by offering elegant solutions to these peoples troubles. So far, we have seen great success by micro financiers who provide sensible lending to these rural population providing the most needed capitol for their farming, small-scale industries etc. We have seen a great many successes with these micro financiers in not only empowering the rural population but creating wealth and attractive returns on the investment in their enterprises. They have proven that there is wealth of untapped potential still to be uncovered among these population and unlimited avenues for these social entrepreneurs to explore and succeed with passion and satisfaction.
India needs great many minds and social entrepreneurs to alleviate these troubles and improve standards of living, empower the rural population, providing information and tools to better organize their lives. This is certainly possible with a social entrepreneurship revolution. I urge my fellow indian citizen, lets hold hands and seed and fertilize this moment and uncap the vast hidden potential among our rural India.
Long live humanity, Long live social entrepreneurship.
Given the state of infrastructure and government priorities, a lion share of government spending is being allocated to infrastructure improvements and social welfare activities that feed the people in need. These efforts are not sufficient enough to cater everyone in need. We often come across the news about suicide deaths, malnourishment among kids and women, hungry and sick kids begging on the streets etc....
In my opinion, the right approach is to emphasize on rural empowerment, providing access to information, educate them on the tools and facilities that they can use to overcome these hurdles and provide a clear path for them to lead better lives rather subsidizing.
There may exist many solutions to help and empower these rural dwellers and their interests will be better served when the entrepreneurs come forward with solutions that help these people in need by offering elegant solutions to these peoples troubles. So far, we have seen great success by micro financiers who provide sensible lending to these rural population providing the most needed capitol for their farming, small-scale industries etc. We have seen a great many successes with these micro financiers in not only empowering the rural population but creating wealth and attractive returns on the investment in their enterprises. They have proven that there is wealth of untapped potential still to be uncovered among these population and unlimited avenues for these social entrepreneurs to explore and succeed with passion and satisfaction.
India needs great many minds and social entrepreneurs to alleviate these troubles and improve standards of living, empower the rural population, providing information and tools to better organize their lives. This is certainly possible with a social entrepreneurship revolution. I urge my fellow indian citizen, lets hold hands and seed and fertilize this moment and uncap the vast hidden potential among our rural India.
Long live humanity, Long live social entrepreneurship.
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