Resources Research

Making local sense of food, urban growth, population and energy

How ADB cooks the climate pot

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The Asian Development Bank has, amongst the world’s multilateral development banks, been a bit of a latecomer to the area of climate financing with the help of modelling. Its senior peers – the World Bank and the European Bank for Reconstruction and Development – have been at it for a while, with the World Bank being rather in its own league if one was to judge by the tonnage of reports it has printed. The ADB probably holds its own on the matter against the Inter-American Development Bank and the African Development Bank, but this latest effort, I think, pushes it ahead of the last two.

Not for any reason that would gladden a farmer or a municipal worker, for that is not the audience intended for ‘Assessing the costs of climate change and adaptation in South Asia’ (Asian Development Bank, 2014), which was released to the Asian world a few days ago. But the volume should immensely help the modelling crews from a dozen and more international agencies that specialise in this arcane craft. Providing the scientific basis around which a multilateral lending bank can plan its climate financing strategies will help the craft find a future. Rather less sunny is the outlook for states and districts, cities and panchayats, who may find an over-zealous administrator or two quoting blithely from such a report while in search of elusive ‘mitigation’.

Many reassuringly complex diagrams must only mean we need bigger loans?

Many reassuringly complex diagrams must only mean we need bigger loans?

In my view, this volume is useless. It is so because it is based on a variety of modelling computations which have their origin in the methods used for the IPCC’s Fourth Assessment Report (that was released in 2007). The permanent problem with all such ‘earth science’ modelling approaches is that it uses global data sets which must be ‘downscaled’ to local regions. No matter how sophisticated they are claimed to be by their inventors and sponsors, such models can only work with regular and large sets of well-scrubbed data that have been collected the same way over a long period of time and recorded reliably. This may serve a ‘global’ model (which is irrelevant to us in the districts) but in almost every single case of ‘downscaling’, a scaling down may make a smattering of sense if there is some comparable data relating to the region for which the scaling is taking place. And this correlation, I can assure you, is not possible 99 times out of 100.

But that doesn’t bother the ADB, because it is a bank, it must find a way for Asian countries to agree to taking loans that help them mitigate the effects of rampaging climate change, as this report tries to convince us about from 2030 to 2050 and 2080 (by which time those who have cashed in their climate technology transfer stock options will have passed on). Which is why the ADB has said its unimpeachable analysis is based on “a three-step modeling approach” and this is “(i) regional climate modeling (ii) physical impact assessment, and (iii) economic assessment”, the last aspect being what they’re betting the thermometer on.

The numbers that have emerged from the ADB’s computable general equilibrium model must be satisfyingly enormous to the bank’s thematic project directors and country directors. For the scenario modellers have provided the ammunition for the bank to say: “The region requires funding with the magnitude of 1.3% of GDP on average per annum between 2010 and 2050 under the business-as-usual-1 scenario. The cost could rise to up to 2.3% (upper range) of GDP per annum taking into account climate uncertainties. To avoid climate change impact under the business-as-usual-2 scenario, adaptation cost of around $73 billion per annum on the average is required between now and 2050.”

I could not, in this needlessly dense and poorly written volume, find a mention of which rice strains have been measured for their yields in the example given for India, when the ADB report makes some dire forecasts about how yields will be lowered or will plunge under several forecast conditions. Perhaps they were buried in some footnote I have overlooked, but considering that the International Rice Research Institute (one of the more dangerous CGIAR monster institutes) has in its genebank more than 40,000 varieties from India, and considering that rice conservationist Debal Deb cultivates 920 varieties himself, the ADB (and its modelling troupe) talking about rice ‘yield’ means nothing without telling us which variety in which region. And that sort of negligence naturally leads me to ask what sort of thermometers they consulted while assembling these models. [This is also posted at India Climate Portal.]

A 68th Independence Day in our Bharat

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On 15 August 2014 it is the 24,473rd day that Bharat and India has been an independent country. During that time we have had 15 Lok Sabha and the 16th now sits in Parliament, having been placed there by 814,500,000 electors who cast their votes in 543 Parliamentary constituencies in a general election that has long been the largest and most complex in the world. We’re good at elections. We’re also good at reading newspapers – we have 10,908 daily newspapers – and 26,552 monthly magazines (far too many about films, far too few about farmers). Many of these get delivered thanks to the efforts of the dedicated staff of 154,822 post offices who deliver some 6,371,800,000 pieces of mail (including money orders and greeting cards). Schoolchildren like seeing postmen on their rounds and we have some 243,360,000 who learn from our heroic teachers in 1,314,633 schools.

Many of those schools (some under mango trees) are in our villages, of which there are 640,930 and these are run (quite well, on the whole) by 232,855 panchayats which noisily elect 2,645,880 panchayat members (a good number of them women, who care about how many children go to school). Our panchayats have lots on their weekly agenda, and between them manage 100,293,000 hectares of land that are planted with cereals that help feed Bharat (rotis and kheer, idlis and bicuits). All our villages keep a great number of animals – for ‘kisan’ households they are extended family – and our fields and festivals are attended by 199,075,000 cattle (whose horns are gaily painted) and 105,343,000 buffaloes (who enjoy a good scrubbing). When they’re at work, our cows and buffaloes are tramping around 138,348,461 farm holdings spread over 159,591,854 hectares – of which 117,605,129 are small and marginal holdings on 71,152,325 hectares, but cows and buffaloes aren’t choosy about farm size.

Our rice and wheat (and pulses) is moved carefully around Bharat by rail and by road. When it is moved by rail, this valuable foodgrain enters a system that is 65,436 kilometres long, rail tracks over which 9,956 locomotives (electric, diesel and still a few steam) smoothly pull 48,037 passenger bogies and 244,731 goods wagons past 7,172 stations (and their ‘chai’ stall), for which our farmers (and postmen) thank 1,307,000 railway employees (who are also some of our best sports persons). From Kaniyakumari to Leh, and from Bhuj to Kohima, our 1,325,000 jawans and 1,155,000 reservists rely on our trains (most are humbler than the well-appointed Shatabdis) to take them home to family. Usually outnumbering the jawans in railway bogies are managers and salesmen, accountants and technicians who work in our 738,331 companies and 211,660 factories.

They keep the wheels of industry and commerce turning  (they are usually small and nimble, 23,447,361 in cities and towns and 35,022,735 in rural districts). Their enterprise gives the jawan his sturdy trunk and the schoolgirl her satchel, stationery for the teacher and toolkits for the panchayat plumber. Somewhere between Ratlam junction and Nagpur, the engineer may proudly mention the 12,694,853 people (most of them workers) employed in our factories, at which the accountant will murmur that Rs 501,560 crore is the paid-up capital of Bharat’s many companies. Jawan or kisan, factory worker or manager, all must deposit their wages and salaries in a bank, and we have 109,811 bank branches (39,439 are rural and 41,681 are in cities and towns) in which savings are happily collected (Rs 56,380 per head) and against which credit is dispensed (as happily, we hope, at Rs 44,028 per head). Our bank branches are also the staging posts for the 11,756 billion currency notes in circulation (no more staples and the new series will come printed with braille) but with 933 million quick-fingered mobile phone subscribers (549 million in cities and towns) we may see fewer real notes and more ‘mobile’ payments.

Village and factory, trains and cattle, and 1,250,000,000 of us. This is our Bharat on our 68th day of Independence.

Written by makanaka

August 14, 2014 at 21:09

Of seeds and swadeshi

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RG_Asian_Age_GM_20140810India has reached food security without GM crops. Portrayed by GM advocates as an ‘attack on science’, the movement to keep this technology out is firmly grounded in the national interest. In this article published in full by The Asian Age, I have refuted three common arguments that are advanced to the citizens of India as justifying the need for genetically modified crops.

None of these owe their intellectual genesis to the present NDA government (which is employing them nonetheless), and can be found as theses in both UPA2 and UPA1. They are: that genetically engineered seed and crop are necessary in order that India find lasting food security; that good science and particularly good crop science in India can only be fostered – in the public interest – by our immediate adoption of agricultural biotechnology; that India’s agricultural exports (and their contribution to GDP growth and farmers’ livelihoods) require the adoption of such technology.

The article has attracted a number of comments, including one which is pro-GM (and which in turn has been attacked). Here is a file of the support and exchanges till now.

Examining these uncovers a skein of untruths and imputations which have been seized upon by the advocates and proponents of GM technology and broadcast through media and industry channels. First, the food security meme, which has assumed an oracular gravity but which has not been supported by serious enquiry. On this aspect, the facts are as follows. Our country grows about 241 million tons of cereals (rice, wheat and coarse cereals), just under 20 million tons of pulses and between 160 and 170 million tons of vegetables (leafy and others together). This has been the trend of the last triennium.

Concerning current and future need, based on the recommendations of the Indian Council of Medical Research and the National Institute of Nutrition, an adult’s annual consumption of these staples ought to be 15 kg of pulses, 37 kg of vegetables and 168 kg of cereals. Using Census 2011 population data and the projections based on current population growth rates, we find that the current 2014 level of production of cereals will supply our population in 2028, that the current level of production of vegetables will be more than three times the basic demand in 2030, and that the current level of production of pulses will fall short of the basic demand in 2020.

In short, India has been comfortably supplied with food staples for the last decade (witness the embarrassingly large buffer stocks) and will continue to be so for the next 15 years at least. Why then are the GM advocates and proponents (including unfortunately the Minister of Environment, Prakash Javadekar) in a cyclonic hurry to bring the technology and its manifold risks to India by citing food security as a reason? Read the rest of this article on The Asian Age website, or find a pdf of the original full text here.

The level of public awareness about the dangers of GM food and seed needs independent and credible science as a partner. Here, anti-GM protesters in Bangalore, Karnataka, India

The level of public awareness about the dangers of GM food and seed needs independent and credible science as a partner. Here, anti-GM protesters in Bangalore, Karnataka, India

This blog has carried a number of posts about GM and agri-biotech in India. Consult these links for more on the subject:

It’s time to confront the BJP on GM
Lured by dirty GM, Europe’s politicians betray public
Of Elsevier, Monsanto and the surge for Seralini
Scientists’ statement deflates the bogus idea of ‘safe’ GM
India marches against Monsanto, hauls it back into court
Monsanto drops GM crop plans in Europe
The year the GM machine can be derailed
Of GM food crops, Bt cotton and an honest committee in India

Why IMD’s rain math doesn’t add up

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Each blue bar represents the actual rainfall recorded by a district as a percentage of its normal. There are 614 district recordings in this chart.. The red dotted line is the 100% mark, and many of the bars end below, or way below, this mark. This is the district-level view of cumulative rainfall over eight rain weeks using the IMD's own data.

Each blue bar represents the actual rainfall recorded by a district as a percentage of its normal. There are 614 district recordings in this chart.. The red dotted line is the 100% mark, and many of the bars end below, or way below, this mark. This is the district-level view of cumulative rainfall over eight rain weeks using the IMD’s own data.

Over eight weeks of recorded monsoon rain, the district-level data available with the India Meteorological Department (IMD) portrays a picture that is very different from its ‘national’ and ‘regional’ advice about the strength and consistency of rainfall.

In its first weekly briefing on the monsoon of August 2014, IMD said: “For the country as a whole, cumulative rainfall during this year’s monsoon (01 June to 30 July 2014) has so far upto 30 July been 23% below the Long Period Average.” Out of 36 meteorological sub-divisions, said the IMD, the rainfall has been normal over 15 and deficient over 21 sub-divisions.

The four regional readings that make IMD's data look less worrisome than it actually is.

The four regional readings that make IMD’s data look less worrisome than it actually is.

However, here is a far more realistic reading of the monsoon season so far, from the IMD’s own data. For the 614 individual readings from districts that have regular rainfall readings, we have the following: 86 districts have registered scanty rainfall (-99% to -60%); 281 districts have registered deficient rainfall (-59% to -20%); 200 districts have registered normal rainfall (-19% to +19%); and 47 districts have registered excess rainfall (+20% and more).

What this means, and the chart I have provided to illustrate the 614 individual values leaves us in no doubt, is that 367 out of 614 districts have had meagre rain for eight weeks. This also means that over eight weeks where there should have been rainfall that – as the IMD predicted in early June – would be around 95% of the ‘long period average’, instead three out of five districts have had less than 80% of their usual quota.

An India economical with monsoon truths

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Monsoon measures for six weeks. A few more districts reporting the revised normal, but the deficient-2 category still has too many districts, and so does excess-2. And why so many 'no data' (many from the north-east)?

Monsoon measures for six weeks. A few more districts reporting the revised normal, but the deficient-2 category still has too many districts, and so does excess-2. And why so many ‘no data’ (many from the north-east)?

When a politician and a bureaucrat get together to supply punditry on the monsoon, the outcome is directionless confusion. There is no reason for our shared knowledge on monsoon 2014 to be reduced to a few boilerplate paragraphs and a couple of amateurish maps and charts, not with the equipment and scientific personnel the Republic of India has invested in so that we read the rain better. But Jitendra Singh, the Minister of State who is in charge of Science, Technology and Earth Sciences, and Laxman Singh Rathore, the Director General of the India Meteorological Department, have not progressed beyond the era of cyclostyled obfuscation.

The Press Information Bureau reported Singh as saying that there has been “significant increase in the monsoon during the last one week beginning from 13th July, and the seven days between last Sunday and this Sunday have recorded 11 percent increase in the monsoon country-wide”. Following suit, Rathore said: “The monsoon deficit has come down by 12 per cent and the overall deficit stands at around 31 per cent. This will bring in much needed relief to the farmers and solve the water issues.”

Coming from senior administrators, such fuzzy distraction cannot be tolerated. The Ministry of Earth Sciences, the India Meteorology Department and the Ministry of Information and Broadcasting must cease (desist, stop, halt – do it now) the use of a ‘national’ rainfall average to describe the progress of monsoon 2014. This is a measure that has no meaning whatsoever for cultivators in any of our agro-ecological zones, and has no meaning for any individual taluka or tehsil in the 36 meteorological sub-divisions. What we need to see urgently adopted is a realistic overview that numerically and graphically explains the situation, at as granular a level as possible.

RG_rainfall_measure_six_weeks_20140723_sectionWhen that does not happen, news media and information sources struggle to make sense of monsoon and climate and their reporting becomes dangerously misleading – consider “Late monsoon starts Indian farmer’s ‘journey to hell’ “; “Why the monsoon numbers hide reality” (this report is an attempt to point out the problem); “Monsoon deficit has come down to 31 per cent, no need to be ‘alarmist': Met office”; “Satisfactory rainfall may wash away monsoon deficit”.

Using a revised categorisation of rainfall sufficiency levels (my method and the reasoning for it use is available here) we find that for the fifth and sixth weeks of monsoon, there has been a small improvement which does not lower the high likelihood of drought conditions becoming prevalent in districts and scarcity of water for our settlements – Messers Singh and Rathore please note (or visit the Indian Climate Portal Monsoon 2014 page which is an active repository of reportage, views, commentary and original data analysis on our monsoon).

The fifth monsoon week is 03 to 09 July 2014 and the sixth monsoon week is 10 to 16 July 2014. There has been a small addition to the revised normal rainfall category (-5% to +5%), rising from 18 districts recording normal rainfall in the 4th week to 22 in the 5th and 28 in the 6th. There has also been an improvement in the number of districts recording deficit-2 levels of rainfall (-21% and more) with 437 in the 4th week, 411 in the 5th week and 385 in the 6th week. For the remainder of July the likelihood of more rainfall in the districts that have recorded normal or excess-1 (+6% to +20%) is small, according to the available forecasts, and this means that monsoon 2014 will begin August with far fewer districts registering normal rainfall than they should at this stage.

The NOAA map of the land and sea percentiles. Note the warm water south of India and to the east of the Philippines.

The NOAA map of the land and sea percentiles. Note the warm water south of India and to the east of the Philippines.

With many sowing cycles beginning belatedly between now and the end of July, the Ministry of Earth Sciences, the India Meteorology Department, the Ministry of Agriculture and the Ministry of Water Resources are advised to work together (why aren’t they doing so already – or at least mandating ICAR institutes to supply them with analysis which they must absorb jointly?) to understand the impacts of regional, tropical and global climate trends that affect the Indian summer monsoon.

There is good reason to. According to NOAA, for 2014 June land and ocean surface temperatures jumped 0.72 Celsius above the 20th century average. These new records were pushed upwards by a broad warming of the ocean surface, and not only by an Equatorial Pacific whose waters are approaching the warmth usually seen during an El Nino. NOAA has said there was “extreme warming of almost every major world ocean zone” which warmed local air masses and had a far-reaching impact on global climate, “likely delaying the Indian monsoon”.

It’s time to confront the BJP on GM

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Eight months ago, they wrote to Manmohan Singh about GM and said decisions must be "based on sound science, principles of sustainability and intergenerational justice... we sincerely hope that vested interests would not be allowed to prevail".

Eight months ago, they wrote to Manmohan Singh about GM and said decisions must be “based on sound science, principles of sustainability and intergenerational justice… we sincerely hope that vested interests would not be allowed to prevail”.

The ability of the biotechnology industry to pursue its aims, regardless of the orientation of the central government, became clear on 18 July 2014 when the Genetic Engineering Approval Committee (GEAC) stated to the press that it has permitted field trials of genetically modified (GM) rice, mustard, cotton, chickpea and brinjal.

The brazen permission, with no details provided to the public of how the committee arrived at the decision (no agenda, minutes, attendance, notes, circulars), has been given by this committee despite the Supreme Court technical expert committee last year recommending an indefinite moratorium on the field trials of GM crops until government prepares a regulatory and safety mechanism, and despite the Parliamentary Standing Committee on Agriculture, in its 2012 August report, advocating powerfully for a ban on GM food crops in India.

The decision to permit field trials is blatant bullying by a section of the so-called scientific and technical expertise of the Government of India, which has acted as the agent of the biotechnology industry in India and its multi-national sponsors. The permission also underlines how firmly entrenched the interests are of India’s biotech industry (which combines crops seed, pharmaceuticals and plant protection formulae) in that the industry has been able to get its way even though the manifesto of the Bharatiya Janata Party explicitly included a statement on GM.

The GEAC committee [pdf]

The GEAC committee [pdf]

A committee such as the GEAC is unconcerned with the socio-economic ramifications of such decisions (a trait it shares with the rest of the industry-sponsored ‘scientific’ and ‘technical’ rubber stamps that litter central government, their cozy seats filled with feckless Indians). But the reaction has been swift and damning, and none of it angrier than from within the ideological allies of the BJP.

The Swadeshi Jagran Manch has accused the BJP of “deceiving the people” for “neither the government nor the GEAC has disclosed as yet the contents of the promised scientific evaluation, if any, or what changed between April 7, 2014 (the day the BJP released its election manifesto) and July 18, 2014, when the field trials of GM food crops were approved”.

“The people of India who have elected the BJP to power are feeling deceived,” said the statement. “They voted the BJP to power on the promises the party made to the people of India in its 2014 manifesto and speeches made by the leaders during the election.” In its election manifesto the BJP had written: “GM foods will not be allowed without full scientific evaluation on the long-term effects on soil, production and biological impact on consumers.” Those long-term effects have not been studied, and both the Department of Biotechnology and the Ministry of Environment, Forests and Climate Change have – through their inaction – failed in their duties to the government by reminding it of its objectives concerning the safety of India’s people and environment.

How disconnected the work of the ministries and departments are from the concerns of farmers and consumers is obvious for, only a day before the despicable GEAC decision, Prakash Javadekar (Minister of State for Environment, Forests and Climate Change), told the Lok Sabha about India implementing the
Nagoya Protocol on Access and Benefit Sharing. “By promoting the use of genetic resources and associated traditional knowledge, and by strengthening the opportunities for fair and equitable sharing of benefits from their use, the Protocol will create incentives to conserve biodiversity, sustainably use its components, and further enhance the contribution of biodiversity to sustainable development and human well-being.”

GM seed, crops and food is not what the Nagoya Protocol means by “promoting the use of genetic resources” and this government’s statements about “fair and equitable”, about “sustainable development and human well-being” will prove to be as hollow and as cynical as the statements made, in such reckless profusion, by the Congress during both terms of the UPA. For an NDA government that has taken pride in recalling Deen Dayal Upadhya and Shyama Prasad Mookherjee, it is not too much to recall that in a letter dated 8 November 2013 (addressed to the then prime minister Manmohan Singh) 251 scientists and academicians had asked the former government to accept the final report submitted by the Supreme Court-appointed Technical Expert Committee on modern-biotechnology regulation [archive containing the Supreme Court report here, 3.2MB].

“Never in the history of agriculture has a technology been so controversial as Genetic Engineering (GE)/Genetic Modification (GM) of crops,” the letter had said. “The unpredictability and irreversibility of Genetic Modification (GM) as a technology and the uncontrollability of GMOs (Genetically Modified Organisms) in the environment, coupled with scientific studies pointing at the potential risk to human health and environment, has resulted in a controversy across the world around the safety as well as the very need for introducing such potentially risky organisms into food and farming systems. These concerns, incidentally, have been raised first and foremost by scientists who are free of vested interests, on scientific grounds.”

Member companies of the biotechnology lobbying group ABLE-AG

Member companies of the biotechnology lobbying group ABLE-AG

It became quickly clear that the Congress government couldn’t have cared less about the carefully considered concerns of a large group of scientists and academicians speaking in one voice. In early February 2014 Manmohan Singh, in his inaugural address at the Indian Science Congress said that India “should not succumb to unscientific prejudices against Bt crop” (in what read like a script prepared for him by the public relations agencies for Monsanto, Bayer, Syngenta, BASF and the rest of those who sit in the shadows behind the GEAC). At the time, the Coalition for a GM Free India had bluntly said Singh was wrong and was willfully misleading the country on the issue of genetically modified (GM) crops. Moreover, there is a growing body of scientific evidence on the adverse impacts of GM crops on human health, environment and farm livelihoods – compiled by the Coalition in a set of more than 400 abstracts of peer-reviewed scientific papers.

Technically, the companies which will benefit from the contemptible GEAC and its permission will have to get no objections from the states for field trials. The record of states is mixed – Andhra Pradesh, Gujarat, Punjab and Haryana have allowed confined field trials in the past; Kerala, Tamil Nadu, Karnataka, Madhya Pradesh, Chhattisgarh, Bihar, West Bengal and Rajasthan have refused them. This disunited approach by the states only emboldens bodies such as the Association of Biotech Led Enterprises-Agriculture Group (ABLE-AG), which is the biotech industry’s frontline lobbying group in India. “This is what we have been asking for the past three years,” ABLE-AG said on 18 July, “to approve field testing of new crops and traits. (Former environment minister) M. Veerappa Moily paved the way for it and we hope the new government will be supportive.”

The 336 seats that are occupied in the Lok Sabha – what prime minister Narendra Modi said is the ‘mandir of lokniti‘ on the first day the new government began its work – were not won for deception and false promises. Modi must annul the GEAC permissions, his government must abide by the provisions of the Supreme Court Technical Expert Committee report, and it must act on the advice of the Parliamentary Standing Committee report. Lokniti expects and deserves nothing less.

Quiet preparations for scarce water, smaller harvests

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State and district officials will have to turn forms like this (the drought management information system) into preparation on the ground and in each panchayat.

State and district officials will have to turn forms like this (the drought management information system) into preparation on the ground and in each panchayat.

The Ministry of Agriculture through the Department of Agriculture and Cooperation has released its national drought crisis management plan. This is not taken as the signal for India that drought conditions will set in, but to prepare for drought where it is identified. In the fifth week of the South-West monsoon, the trend continues to be that week by week, the number of districts which have recorded less rainfall than they normally receive outnumber those districts with normal rainfall. When this happens over a prolonged period, such as four to six weeks, drought-like conditions set in and the administration prepares for these conditions.

There are a group of ‘early warning indicators’ for the kharif crop (sowing June to August) which are looked for at this time of the year. They are: (1) delay in the onset of South-West monsoon, (2) long ‘break’ activity of the monsoon, (3) insufficient rains during June and July, (4) rise in the price of fodder, (5) absence of rising trend in the water levels of the major reservoirs, (6) drying up of sources of rural drinking water, (7) declining trend in the progress of sowing over successive weeks compared to corresponding figures for ‘normal years’.

On this list, points 1 and 2 are true, 3 is true for June and July until now, 4 and 5 are true, we have insufficient information for 6 and 7 but from mid-May there have been a number of media reports on water scarcity in the districts of peninsular, central and northern India. Thus the state of the ‘early warning’ indicators taken together have triggered the issuing of the government’s drought crisis management plan. Please read the rest at the India Climate Portal.

Written by makanaka

July 18, 2014 at 12:00

Retiring the American dollar

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Off into history's sunset, like the cowboy. This image (modified) is called 'Dollar Green' by the artist mancaalberto (

Off into history’s sunset, like the cowboy. This image (modified) is called ‘Dollar Green’ by the artist mancaalberto (

Seventy years ago, to the very month, a man named Henry Morganthau celebrated the creation of a “dynamic world community in which the peoples of every nation will be able to realise their potentialities in peace”. It was the founding of what came to be called the Bretton Woods institutions (named after the venue for the meeting, in the USA) and these were the International Bank for Reconstruction and Development – better known as the World Bank – and the International Monetary Fund.

None of the lofty aims that seemed so apposite in the shattering aftermath of the Second World War have been achieved, although what has been written are libraries of counter-factual history that claim such achievements (and more besides) commissioned by both these institutions and their web of supporting establishments, financial, academic, political and otherwise. Instead, for the last two generations of victims of ‘structural adjustment’, and of ‘reform and austerity’ all that has become worthwhile in the poorer societies of the world has been achieved despite the Bretton Woods institutions, not because of them.

Now, seventy years after Morganthau (the then Treasury Secretary of the USA) and British economist John Maynard Keynes unveiled with a grey flourish a multi-lateral framework for international economic order, the Bretton Woods institutions are faced with a challenge, and the view from East and South Asia, from Latin America and from southern Africa is that this is a challenge that has been overdue for too long.

Let's get the de-dollarisation of the world started.

Let’s get the de-dollarisation of the world started.

It has come in the form of the agreement between the leaders of five countries to form a development bank. Russia’s President Vladimir Putin, China’s President Xi Jinping, India’s Prime Minister Narendra Modi, Brazilian President Dilma Rousseff and South Africa’s President Jacob Zuma made formal their intention during the sixth summit of their countries – together called ‘BRICS’, after the first letters of their countries’ names – held this month in Brazil.

What has been set in motion is the BRICS Development Bank and the BRICS Contingency Reserves Arrangement. Both the new institution and the new mechanism will counter the influence of Western-based lending institutions and the American dollar, which is the principal reserve currency used internationally and which is the currency that the IMF and the World Bank conduct their ruthless business in (and which formulate their policies around, policies that are too often designed to impoverish the working class and to cripple labour).

At one time or another, and not always at inter-governmental fora, the BRICS have objected to the American dollar continuing to be the world’s principal reserve currency, a position which amplifies the impact of policy decisions by the US Federal Reserve – the American central bank – on all countries that trade using dollars, and which seek capital denominated in dollars. These impacts are, not surprisingly, ignored by the Federal Reserve which looks after the interests of the American government of the day and US business (particularly Wall Street).

In the last two years particularly, non-dollar bilateral agreements have become more common as countries have looked for ways to free themselves from the crushing Bretton Woods yoke. Only this June, Russia’s finance minister said the central banks of Russia and China would discuss currency swaps for export payments in their respective national currencies, a direction that followed Putin’s visit to China the previous month to finalise the gigantic US$400 billion deal between Gazprom and China National Petroleum Corporation (CNPC). It is still early, and the BRICS will favour caution over hyperbole, but when their bank opens for business, the sun will begin to set on the US dollar.

India’s crop quotas for a rain-troubled year

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In this graphic, the size of the crop squares are relative to each other. The numbers are in million tons. Rice, wheat, pulses, coarse cereals, sugarcane. oilseeds and the fibre crops are the major categories for the 2014-15 crop production targets. What is always left out from the 'foodgrain'-based projections are vegetables and fruit, and these I have included based on the 2013-14 advance estimates for horticultural crops.

In this graphic, the size of the crop squares are relative to each other. The numbers are in million tons. Rice, wheat, pulses, coarse cereals, sugarcane. oilseeds and the fibre crops are the major categories for the 2014-15 crop production targets. What is always left out from the ‘foodgrain’-based projections are vegetables and fruit, and these I have included based on the 2013-14 advance estimates for horticultural crops.

Your allocation for the year could be 136 kilograms of vegetables, provided the monsoon holds good, which at this point in its annual career does not look likely. We need the veggies (not just potato, onion, cabbage and tomato) as much as fruit. But the central government is more traditionally concerned with ‘foodgrain’, by which is meant rice, wheat, pulses and coarse cereals.

That is what is meant by the ‘foodgrain production targets’, which have been issued by the Ministry of Agriculture for 2014-15 – as usual with scant sign of whether the Ministries of Earth Sciences and Water Resources were invited to a little chat over tea and samosas. I would have expected at least a “what do you think dear colleagues, is 94 million tons of wheat wildly optimistic given the clear blue skies that o’ertop us from Lutyens’ Delhi to Indore?” and at least some assenting murmurings from those foregathered.

But no, such niceties are not practiced by our bureaucrats. So the Ministry of Agriculture gruffly rings up the state agriculture departments, bullies them to send in the projections that make the Big Picture add up nicely, sends the tea-stained sheaf to the senior day clerk (Grade IV), and the annual hocus-pocus is readied once more. What the departments in the states say they are confident about is represented in the chart panel below, which shows you for rice, wheat, coarse cereals and pulses the produce expected from the major states. The question is: will monsoon 2014 co-operate?

Rice, wheat, coarse cereals and pulses, and the states which grow them the most, targets for 2014-15, using data from the Ministry of Agriculture

Rice, wheat, coarse cereals and pulses, and the states which grow them the most, targets for 2014-15, using data from the Ministry of Agriculture

Written by makanaka

July 12, 2014 at 18:25

A month of truant rain

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We now have rain data for four complete weeks from the India Meteorological Department (IMD) and for all the districts that have reported the progress of the monsoon. The overall picture is even more serious than reported earlier because of the falling levels of water in the country’s major reservoirs. [05 to 11 June is the first week. 12 to 18 June is the second week. 19 to 25 June is the third week. 26 June to 02 July is the fourth week.]

Using the new measure of assessing the adequacy of district rainfall (and not the meteorological cgradations that is the IMD standard), in the fourth week of the monsoon the number of districts that reported normal rains in that week (+5% to -5%) is 18; deficient 1 (-6% to -20%) is 31; deficient 2 (-21% and more) is 437; excess 1 (+6% to +20%) is 17; excess 2 (+21% and more) is 113; no data was reported from 25.


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