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Monsoon no longer determines India's economic fate?

The Indian Express has a rather giddy article about monsoons and the economy. It was an article of faith growing up that if/when the monsoon failed on a particular year, the country’s economy would suffer greatly. Apparently, this is not true any more.

Monsoon grip on India’s economy weakens

The early arrival of India’s annual monsoon promises good crops and incomes for millions of farmers but economists say the rains no longer hold such a sway over Asia’s third-largest economy as they used to in the past.

It is true that agricultural now contributes to 22% of the economy as opposed to 38% in 1980. But, this kind of economic cheerleading is foolish. As the article itself admits, 700 million people live off farming related activities. India’s irrigation infrastructure is poor. The crop growing cycles are based primarily on the monsoon rains, their timing, the rain volumes during certain months, etc. You really think that an event that adversely affects 700 million people won’t devastate large swathes of the country?

Economists place way too emphasis on single macro variables. The relevant variable here is 700 milion!

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    India goes solar

    India, of course, gets a lot of sun, it is wasted in the sense that it makes us sweat, causes us to use increasing amounts of electricity for air conditioning, and all in all, is a pain. So, a plan to use that sun to generate solar energy, of course, is very welcome. Solar energy use obviously is not new in India, my best friend growing up had a solar water heater at home (his family business used to make them). Policy has never kept up because there has not been a push, is this one?

    The Union Government has finalised the draft for the National Solar Mission. It aims to make India a global leader in solar energy and envisages an installed solar generation capacity of 20,000 MW by 2020, of 1,00,000 MW by 2030 and of 2,00,000 MW by 2050.

    The total expected funding from the government for the 30-year period will run to Rs. 85,000 crore to Rs. 105,000 crore. The requirement during the current Five Year Plan is estimated to be Rs. 5,000 crore to Rs. 6,000 crore. It will rise to between Rs. 12,000 crore and Rs. 15,000 crore during the 12th Five Year Plan.

    A crore, BTW, is 10 million. India still uses its own number multiplier system for money that goes in 100s, not thousands. So, a 100,000 is a lakh, and a 100 lakhs is a crore. I never understood why this was not changed when the country went metric. Lakhs and crores, of course, are metric, but can get confusing.

    The plan will start off by mandating roof top solar panels for government and government owned industry buildings in an attempt to reduce costs by scaling up. It will be followed by mandated solar water heaters for all commercial buildings and apartment complexes, and use of solar panels for all in industrial buildings. All this is supposed to happen in the next three years, which appears to be wildly ambitious.

    India is a federal country with delineation of jurisdictions between the central and state governments on regulation. Electricity happens to be on the concurrent list, meaning both the state and central governments can make laws, and the central government’s laws will always preempt the states. However, building appears to be a local government issue, so managing this huge transition could get tricky. They are all supposed to use the same building code, but given the unevenness of local governance, who knows what implementation will look like.

    In Phase II, starting 2012, India will go solar thermal. India and Pakistan have 200,000 sq km of the Thar Desert, a typical dry tropical desert with oodles of space and sun. It would be a good place to site all kinds of capacity similar to efforts in North Africa and Spain.

    Solar thermal, if combined with the right kind of transmission and storage technology, could power the world in 7000 sq km, so theoretical capacity may not be an issue. Of course, the storage and distribution are key. Molten salt batteries look very promising for solar energy storage and night use.

    India’s electricity needs are daunting. This WolframAlpha search provides the following:

    IndiaCanada

    Note to Wolfram: your data presentation would result in a failing grade on a middle school term paper, where are the sources? Where did you get your numbers? BIG FAIL!

    We in Canada use more electricity than India for about a billion fewer people. Clearly, if India was as profligate as Canada in energy consumption and got the power it needed to get there from coal, we would all be dead soon. India needs to go solar in a hurry and I am glad the government has released a policy that is more ambitious than the US or Canada. It needs the support and funding to make it happen and I for one will be very happy to see progress in this area. Solar power needs big up front costs and little ongoing costs.

    Can Indian industry provide the money needed? We shall see. I am not too worried about the photovoltaic panel parts, they will muddle along in typical patchwork Indian fashion with the quality of governance being the controlling factor in success or failure. It is the capital and political will needed for solar thermal that strikes me as problematic. The coal and mining industries are entrenched in some population (and vote) rich states like Bihar based in the central and north east regions and there could be some big losers if India went away from coal (as it needs to in order to prevent catastrophic climate change) and toward solar thermal, which I assume would come out of Rajasthan (West).

    Anyway, we live in interesting and sunshiny times, stay tuned for more.

    h/t to my one of my favourite climate blogs, solve climate for bringing this article to my attention, love your blog folks!

  • Terrorists boated in from Pakistan

    MUMBAI: Maharashtra Police investigators say they have evidence that operatives of the Pakistan-based Lashkar-e-Taiba carried out the fidayeen-squad attacks in Mumbai — a charge which, if proven, could have far-reaching consequences for India-Pakistan relations.

    Police sources said an injured terrorist captured during the fighting at the Taj Mahal hotel was tentatively identified as Ajmal Amir Kamal, a resident of Faridkot, near Multan, in Pakistan’s Punjab province.

    Highly-placed police sources said two other Pakistani nationals had also been held in the course of intense fighting on Thursday.

    All three, the sources said, identified themselves as members of a Lashkar fidayeen squad.Based on the interrogation of the suspects, the investigators believe that one or more groups of Lashkar operatives left Karachi in a merchant ship early on Wednesday. Late that night, an estimated 12 fidayeen left the ship in a small boat and rowed some 10 nautical miles to Mumbai’s Gateway of India area.

    The investigators say the fidayeen unit of which Mr. Kamal was a part then split up into at least six groups, each focussing on a separate target: Mumbai’s Nariman House, which is home to a large number of Israeli families and a Jewish prayer house; the Chhatrapati Shivaji Terminus rail station; the Cama hospital; the Girgaum seafront; and the Taj and Trident Oberoi hotels.

    via The Hindu : Front Page : Three Lashkar fidayeen captured

    Well, so it goes, this gives the government and all politicians free license to start bashing Pakistan all over again, while failing to take care of all the changes that need to happen in order to avoid an attack of such brazenness and sophistication. There is no intelligence gathering, no infrastructure to coordinate intelligence, no disaster preparedness, insufficient patrolling of the coasts, gang influences that run deep in the police and the politicians, an inability to run effective investigations, the list is endless.

    All that being said, how does one deal with the lawlessness in Pakistan? If we assume that the Pakistani establishment did not have anything to do with this, we are still left with the conclusion that terror groups can function with impunity and in broad daylight in Pakistan’s major cities and just sneak across the border to attack, either in Afghanistan or in India.

    The US is bombing the crap out of the Pak-Afghan border, but the terrorists are in the cities and towns, can’t really bomb away. India needs to seriously tighten its borders, and cannot rely on Pakistan’s situation improving any time soon.

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    Colonialism: Environmental Edition

    Does put recycling in context…

    Independent Online Edition > Environment

    Regardless of how carefully you separate your waste, there is a good chance a disposal firm will dump it all in together with other kinds of plastic trash and ship it to the developing world to be dealt with by a family of migrant workers earning a pittance. They will deal with the salad-bar container, the pistachio ice-cream container and the superfluous bag for carrots in your shopping basket in a variety of different ways – it may be recycled, it may become landfill or it may simply be burnt. Whatever happens, it is generally not a priority for the waste disposal company. Britain dumps around two million tonnes of waste in China every year, everything from plastic mineral water bottles to shopping bags and other forms of superfluous packaging from some of the country’s biggest supermarkets.

    Same for India as well. The article says that all of this “recycling” is illegal. But how do you hide 200,000 tonnes of plastic waste?

    Read the whole article, it is tragic. Some highlights:

    So too are the many and varied health complaints suffered by the local population, who risk multiple skin ailments and exposure to potent carcinogens as they touch the contaminated materials. Poisonous chemical effluents stream into their water supply, turning it black or lurid red, and studies by Greenpeace show that acid rain is the norm in this region. Children are prone to fevers and coughs. Their skin is often disfigured by the toxic plastic waste they have to process.

    A report by the University of Shantou on the town of Guiyu, another Guangdong recycling hub, showed that more than 80 per cent of local children suffer from lead poisoning.

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    Why India is a Prominent Global Warming Sceptic

    I grew up in Chennai, proudly known as the automotive capital of India and home to Standard Motors. While it makes me very happy to see Chennai back on the automotive map, it also points me to the fact that India needs to be involved in the long-term reduction of heat-trapping emissions. This is not going to help…

    BBC NEWS | Business | India eyes 25 million automotive jobs

    India’s labour intensive car industry has become a tremendous job creator and as such a crucial driver of economic growth.

    Already, some 10 million people are working in factories across India – making cars and motorcycles, tractors and trucks – or in sales and service centres.

    And their numbers are set to swell.

    By 2016, the automotive industry should have created employment for 25 million people in India, according to government predictions, set out in its Automotive Mission Plan.

    I realize that India has a loooooooooooooong way to go before it catches up with the US and the rest of the developed world as far as per capita heat-trapping emissions are concerned. I also admit that infrastructure development, job creation, manufacturing prowess, etc., are critical for India in order to mitigate its soul crushingly large poverty and development issues. But, by putting so much emphasis on conventional car technology, and putting so many more CO2 emitting monsters on the road, India is putting itself in a position of playing the development vs. environment game.

    Is it necessary that India and China tread the same path as the U.S and Europe? Does India have to make and use cars that are built using technology developed prior to our knowledge of global warming? The same company that gets cautious praise from the Union of Concerned Scientists for its “leadership” role in global warming will turn around and build factories in India that carry the status quo forward for another 30 years. When you’re starting from the foundation, and you know that the plans provided to you will lead to your house crumbling in 20 years, would you use the plans anyway because your contractor provides you with no alternative? The logical answer seems to be no, but is this process logic driven, or enforced by the existing power structure?

    The vehicle industry is entrenched in the US and therefore, resistant to change. It is understandable, not optimal, not desirable, shortsighted, etc., but understandable. Change requires effort, and a lot of the time, the effort is motivated by external factors, such as strict regulation. Without these external factors, it is very easy to keep chugging along merrily.

    But, does India have to make the same mistakes? Does India have a choice here? I am afraid not. The pressure to build infrastructure quickly leads India to seek foreign investment and the investment will only come in the way of companies like Ford. And Ford will do exactly what it needs to do to make money in the short term (apparently, they’re not very good at that either!).

    What is the answer? The developed countries have to pass legislation that pretty much forces the car companies’ hand. Strict increases in fuel economy standards, tightening of loopholes, and strict enforcement are all required. As this UCS report shows, fuel efficiency improvements of up to 40% are possible using run of the mill technology (as in, no hybrids, no electrics, nothing). But this is not sufficient. While the US market is focused enough that the highest regulation (California) pretty much drives the market, will car companies simply make a set of third world cars and a set of first world cars?

    There’s clearly another piece to the puzzle, encouraging technology transfer of the most carbon efficient technologies to emerging markets so that they can build infrastructure correctly, using current knowledge instead of following the only blueprint currently available to them. Yes, this hits upon intellectual property issues at times, but when your village is being submerged by the sea, intellectual property needs to take a back seat. This technology transfer needs to happen either through incentives (tax breaks, non-profit/UN funding), or disincentives (carbon taxes, etc.). the Kyoto Protocol does have some technology transfer programs built in, but without the participation of the US, the protocol is not going to work.

    Do I see any of this happening? Not really, so I guess we’re stuck with recycled global warming denialism like this one from one of India’s prominent columnists.

    Almost as soon as the Kyoto Protocol on global warming came into effect on February 15, Kashmir suffered the highest snowfall in three decades with over 150 killed, and Mumbai recorded the lowest temperature in 40 years. Had temperatures been the highest for decades, newspapers would have declared this was proof of global warming. But whenever temperatures drop, the press keeps quiet.

    Yes, the country that produces great intellectuals has come down to this. But, this is the prevailing wind in India. As a country, it has swallowed the American line on development being at odds with the environment. As a country, it is poised to greatly increase its heat-trapping emissions and fight vigorously, any efforts to restrict its emissions. India is right in most ways, its per capita energy consumption is miniscule. It already only uses half the energy per dollar of GDP that the US uses (of course, this is at the expense of quality of life for millions). So, any attempts at pointing fingers at China and India are irresponsible. But, that is the past. Looking forward, every country needs to use the most efficient technologies possible, and this Ford factory driven development model ain’t gonna work.

    I leave you with the energy intensity chart…

  • Hindu Terrorists – No Oxymorons

    The revelation that a militant section of the Hindutva network was behind the September 29 bomb blasts in Muslim-dominated Malegaon in Maharashtra and Modasa in Gujarat has shattered the myth propagated by the Hindutva campaign that only Islamist fundamentalism breeds terrorism. Indeed the Sangh Parivar’s loaded argument has been that while all Muslims are not terrorists, all terrorists are Muslim. Saffron rabble-rousers have had no compunction in lobbing this charge at the Muslim community as a whole. While it has become almost an article of faith with the parivar to link Islamist fundamentalists with terrorism, today, with the arrests of radical Hindu activist Sadhvi Pragya Singh Thakur and four others, among them a retired Major, the Sangh and its affiliates find themselves warding off the same accusations. Prima facie, the case against the Sadhvi and her accomplices is serious. The Anti-Terrorism Squad of Maharashtra, which has been on the trail of Hindutva terror since 2006, has charged them under the Indian Penal Code for murder as well as under sections of the Indian Explosives Act, 1884, and the Unlawful Activities Prevention Act, 1967.

    via The Hindu : Opinion / Editorials : Hindutva’s terror link

    Note: Sadhvi means saint! Terrorist accused saint, now that is an oxymoron we can believe in.

    Seriously, what has this so called Hindutva movement come to? Ban them all!

One Comment

  1. The key word is farm-related, Not all those 700 million people are farmers. There is a significant amount Non-farm employment in rural India.

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