It’s time to rid India of the GDP disease

A woman in the Aravalli hills of Rajasthan carries home a headload of field straw. India’s National Accounts Statistics is completely ignorant of the biophysical economy.

On 5 January 2017 the Central Statistics Office of the Ministry of Statistics and Programme Implementation, Government of India, issued a note titled “First advance estimates of national income, 2017-18”. The contents of this note immediately caused great consternation among the ranks of those in business and industry, trading, banking anf finance, and government who hold that the growth of India’s gross domestic product is supremely important as it is this growth which describes what India is and should be.

In its usual bland way, the Central Statistics Office said that this was “the First Advance estimates of national income at constant (2011-12) and current prices, for the financial year 2017-18” and then proeeded, after a short boilerplate explanation about the compilation of estimates, delivered the bombshell to the GDP standard-bearers: “The growth in GDP during 2017-18 is estimated at 6.5% as compared to the growth rate of 7.1% in 2016-17.” [pdf file here]

To me, this is good news of a kind not heard in the last several years.

But India’s business and financial press were thrown into a caterwauling discord which within minutes was all over the internet.

An example of one out of the many messages in a daily barrage delivered by the Government of India’s ‘GDP First’ corps. This is from what is called the Make in India ‘initiative’ of the Department of Industrial Policy and Promotion, Ministry of Commerce. “Make in India is much more than an inspiring slogan,” the DIPP says. “It represents a comprehensive and unprecedented overhaul of out-dated processes and policies.” For this childish GDP rah-rah club, environmental protection, natural reserves, watershed conservation, handloom and handicrafts are all outdated practices and ideas.

‘GDP growth seen at four-year low of 6.5% in 2017-18: CSO’ said the Economic Times: “Most private economists have pared the growth forecast to 6.2 to 6.5 percent for this fiscal year, citing the teething troubles faced by businesses during the roll out of a goods and services tax (GST).”

‘7 reasons why FY18 GDP growth forecast should be viewed with caution’ advised Business Standard: “The fact that growth will be 6.5% is significant as it is even lower than the Economic Survey assumption of 6.75-7.5% for the year. Hence, it is not expected to be higher than the base mark which means that it would be lowest in the past three years. The effects of demonetisation and GST have played some role here.”

‘CSO pegs FY18 growth at 6.5%; why forecast is an eye-opener for Narendra Modi govt’ said Firstpost: “The healthy uptick in volumes displayed by many sectors in November 2017, is expected to strengthen in the remainder of FY2018, benefiting from a favourable base effect and a ‘catch up’ following the subdued first half. Accordingly, manufacturing is likely to display healthy expansion in volumes in H2 FY2018, which should result in a substantial improvement in capacity utilisation on a YoY basis.”

‘GST disruptions eat FY18 economic growth; GDP seen growing at 6.5%, lowest under Modi government’ huffed the Financial Express: “For a broad-based recovery the rural economy needs to recover and we can expect the upcoming budget to focus on alleviating some of the stress in the rural economy and concentrating on measures to augment the flow of credit in the economy. Overall growth is likely to improve in the coming year and possibly move up beyond the 7% mark in FY19.”

‘India’s GDP growth seen decelerating to 6.5% in 2017-18 from 7.1% in 2016-17’ said the Mint: “The nominal GDP, or gross domestic product at market prices, is expected to grow at 9.5% against 11.75% assumed in the 2017-18 budget presented last year. This may make it difficult for the government to achieve the fiscal deficit target of 3.2% of GDP in a fiscally tight year.”

‘India Sees FY18 GDP Growth At 6.5%’ observed Bloomberg Quint: “Growth in gross value added terms, which strips out the impact of indirect taxes and subsidies, is pegged at 6.1 this year, versus a revised 6.6 percent last fiscal. Both GDP and GVA growth were marginally below expectations. A Bloomberg poll had pegged GDP growth at 6.7 percent. The RBI had forecast GVA growth at 6.7 percent at the time of its last policy review in December.”

‘India’s FY18 GDP growth estimated at 6.5%, says CSO data’ said Zee Business: “Real GVA, i.e, GVA at basic constant prices (2011-12) is anticipated to increase from Rs 111.85 lakh crore in 2016-17 to Rs 118.71 lakh crore in 2017-18. Anticipated growth of real GVA at basic prices in 2017-18 is 6.1 percent as against 6.6 percent in 2016-17.”

So great is the power of the School of GDP and of its regents, who are as priests of the Sect of GDP Growth, that the meaninglessness of GDP is a subject practically invisible in India today. Just as it has no meaning at all to the woman in my photograph above, so too GDP has no meaning for all, including the 2.7% (or thereabouts) who pay income tax.

This tweet shows us the scale of the problem. An article by Klaus Schwab of the World Economic Forum (a club of powerful globalists) is posted on the website of Prime Minister Narendra Modi ! The head of the ruling BJP’s information unit broadcasts it.

India’s National Accounts Statistics presents every quarter and annually, estimates of the size of the country’s GDP, of the rate of GDP growth, of the size of ‘gross value added’, to which GDP is bound in ways as complicated as they are misleading. There are wages, interests, salaries, profits, factor costs, net indirect taxes, product taxes, product subsidies, market prices, industry-wise estimates and producer prices to juggle.

For the most part, these are prices and costs alone, upon which various kinds of taxes are levied and whose materials and processes may qualify for subsidies. All these are added and deducted, or deducted and added, and finally totalled show a GVA which then leads to a GDP. The prices are arbitrary and speculative, as all prices are, the arbitrariness and speculative nature being attributed to something called market demand, itself a creation of policy and advertising – policy to choke choices and advertising to spur greed. On this putrid basis does the School of GDP stand.

The GDP and GDP-growth frenzy in India spares not a minute for a questioning of its fundamental ideas, which in certain quarters had begun to shown as hollow and destructive in the early 1970s, when the effects of the material and consumption boom in Europe, North American (USA and Canada) and some of the OECD countries after the end of the Second World War became visible as environmental degradation.

Over 30 years later, sections of those societies inhabit and practice what are called ‘steady state’ economics, ‘transition’ economics (that is, transition to low energy, low consumption, recycling and sharing based ways of collective living) and ‘de-growth’, which is a scaling down of economic production and consumption done equitably and to ensure that a society (or groups of settlement and their industries) strictly observe the bio-physical limits of their environment (pollution and pollutants, land, water, biodiversity, etc).

But the Central Statistics Office of the Ministry of Statistics and Programme Implementation, Government of India, is ignorant of such critical thinking. It is just as ignorant of the many efforts at swadeshi living, production, cultivation (agro-ecological) and education (informal learning environments instead of reformatted syllabi lifted wholsesale from countries whose exploitative economies installed globalisation as the default economics mode) that are visible all over India today. The CSO and MoSPI are not entirely to blame for this abysmal blindness, because the Ministry of Finance (like every other major line ministry of the Government of India, and like every state government) has decided to be even more blind.

To read the insensate paragraphs disgorged every quarter from the CSO (and Ministry of Finance, likewise the Niti Aayog, the chambers of commerce and industry, the many economy and trade think-tanks) is to find evidence to pile upon earlier evidence that here is an administration of a very large, extremely populous country which cares not the slightest about the indubitably strong correlations between ‘GDP growth’ and more forms of environmental damage than have been reckoned.

The GDP-GVA-growth fantasy cares not the slightest about energy over-use and CO2 emissions, about the effects of widespread atmospheric and chemical pollution on the health of the 185 million rural households and 88 million urban households (my estimates for 2018) of India, and about the terrible stresses that the urban households in more than 4,000 towns, district headquarters and metros are subject to as a result of their lives – through mobile phone apps, banks, the food industry, the automobile industry and the building industry – being micro-regulated so that an additional thousandth of a per cent of GDP growth can be squeezed out of them.

The GDP asura has brought ruin to India’s environment, cities, farms, households, forests, rivers, coasts and hills. Let 2018 be the year we burn the monster once and for all.

Advertisement

Villages in their splendid talukas

As part of my continuing and long term study on the relation between populations both rural and urban, the land base upon which they depend for the growing of food, and the socio-economic changes taking place in our districts, I have begin an examination of how households are distributed in administrative regions, that is, districts and talukas. This graphed plot describes one kind of finding. (Click here for a full size plot that lets you explore each data point.)

States are administratively divided into districts (earlier the concept of a ‘division’, which was a group of districts, was more common – the ‘division’ is still used, for revenue determination but also for home affairs) and these are divided into talukas. How many talukas does the typical district have? Some have four, others as many as 12. There are talukas whose households are entirely rural as there is not a single census town, let alone a municipal council, within its precincts. The taluka contains villages and these can be numerous. Some talukas may have 50-60 villages whereas others may have 200 and more.

It is always an interesting matter to ponder. How did households in a small sub-region – at the confluence of a stream and a river for example or at the edge of a plain and at the margins of hills – become villages and what determined the distribution of such hamlets in a very local habitat? The factors were always environmental and there was often a strong cultural reason, such as proximity to a sacred site, a mandir or a venerated shrine, historical sites (such as those mentioned in the Ramayana and documented in detail thereafter in numerous local commentaries).

From the set of districts analysed so far a few guiding figures have emerged. The number of rural households in a taluka varies from 7,200 to 96,800; the number of villages in a taluka varies from 28 to 338; the average number of households in a village is 330; there is one urban household for every 3 rural households.

Where the agro-ecological conditions are favourable, there is to be found a denser gathering of villages and these will have larger populations. This can easily be understood. It is less clear how the toil of the households accommodated in a large number of villages are required to maintain, in many ways, urban households which are now clustered in a town or two of the same taluka. This dependence is what a study of not only the rural-urban population, but also how it is distributed within agro-ecological boundaries, can help uncover. The graphed plot included here is one step towards that understanding.

Sizing up rural and urban settlements in Maharashtra

The districts of Jalna, Osmanabad, Hingoli, Satara, Ratnagiri, Washim, Nandurbar, Gondiya, Gadchiroli and Sindhudurg in Maharashtra all enjoy a rural built-up to urban built-up ratio of more than 2 (where the built-up area of the district’s rural settlements are at least twice the area of its urban settlements).

In the chart, the light green bars show a district’s rural built-up area, the light maroon its urban built-up area. The number associated with the name of the district is the ratio between the two kinds of built-up area.

Such a comparison helps us understand the dependency of the two kinds of populations in a district, rural and urban, upon the natural resources (as classified by land types). The chart shows us that some districts (see Jalgaon, Sholapur, Satara and Ratnagiri) have total rural built-up areas of 150 square kilometres and above. But whereas the urban built-up areas of Jalgaon and Sholapur are more than 100 sq km each this is not so for the other two districts.

Districts may have similar ratios between rural and urban built-up areas – see Ahmednagar, Akola and Dhule – but whereas the built-up areas of both types are more than 100 sq km in Ahmednagar they are smaller in the other two districts. There are only three districts for which the total rural built-up area is less than 50 sq km: Parbhani, Hingoli ad Washim.

There are 15 districts in which there is at least 1.5 sq km of rural built-up area for 1 sq km of urban built-up and this indicates that in these districts the base of agricultural and allied activities is still strong and therefore needs continuous encouragement. There are 7 districts for which this ratio is between 1.5 and 1 and these therefore must be watched for signs of quickening urbanisation which will need to be curbed in the interests of sustainability and indeed of the provision of food.

I have taken the data from the land use and land change information for 2011-12 collected by the Resourcesat-2 satellite with land classification and calculation carried out by the National Remote Sensing Centre (NRSC), Indian Space Research Organisation (ISRO), Department of Space, under the Natural Resources Census Project of the National Natural Resources Repository Programme. It is available through Bhuvan, the geo-platform of ISRO.

Urban areas are non-linear built-up areas covered by impervious structures adjacent to or connected by streets. This class includes residential areas, mixed built-up, recreational places, public and private utilities, communications, commercial areas, reclaimed areas, vegetated areas within urban zones, transportation infrastructure, industrial areas and their dumps, and ash/cooling ponds. Rural built-up areas are the lands used for human settlement in which the majority of the population is involved in agriculture. These are built-up areas, small in size, mainly associated with agriculture and allied sectors and non-commercial activities. They can be seen in clusters both non-contiguous and scattered.

The last 4 districts – Nagpur, Nashik, Thane and Pune – have their urban built-up bars coloured differently to indicate that their scales are beyond, and very much above, the 150 sq km of the chart. Mumbai city and suburban is omitted entirely.

The relative speeds of urban inflation

How to read this chart. The light grey bars are the current month’s CPI-IW (consumer price index for industrial workers) for each urban centre plotted to the left scale (the current data is for 2016 May). The green square marker is the reading for the difference between the current month’s CPI and the average of the previous six months. The yellow square marker is the reading for the difference between the current month’s CPI and the average of the previous 12 months. And the red square marker is the reading for the difference between the current month’s CPI and the average of the year previous to 12 months ago. These are all plotted to the right scale, and their vertical separation helps tell us whether overall consumer inflation is rapid (or not) compared with other cities. You will find accompanying this chart a table. This associates a city code, such as ST21, used for the charting process, with a city: ST21 the city is Shimla in Himachal Pradesh. Data only (not method or treatment) are from Labour Bureau, Ministry of Labour and Employment.

Belgaum and Mysore in Karnataka with 12 points. Warangal, Telengana with 12 points. Panaji, Goa with 12 points. Munger, Bihar with 11 points. Bangalore, Karnataka with 11 points. Salem, Coimbatore and Coonoor in Tamil Nadu with 10 points. Rourkela, Odisha with 10 points. Sholapur, Maharashtra with 10 points. Vijayawada, Andhra Pradesh with 10 points.

Charting process codes used for urban centres and the cities they correspond with.

These are not Swachch Bharat rankings nor are they ‘ease of doing business’ scores. They are, for each urban centre, the number of points its consumer price index (CPI) increased in May 2016 over the average for the previous quarter. The data is collected and distributed by the Labour Bureau, Ministry of Labour and Employment. This is one of the ways in which the monthly CPI numbers for industrial workers (a somewhat dated term which suited an era when the public sector dominated the economy, but which still relates to urban households) can usefully indicate the acceleration in inflation of household staples.

The picture changes when the CPIs of urban centres for a month (the latest available being 2016 May) are compared with their own averages for the last six months, the last 12 months or the year which ended 12 months ago. When the frame of comparison is the average of the previous 12 months, I find that in 30 of the 78 centres for which a CPI-IW is calculated, the increase is 10 points or more. Warangal in Telengana, Kollam in Kerala and Mysore in Karnataka are 16 points above their previous 12 month average while Munger in Bihar, Rajkot in Gujarat and Jamshedpur in Jharkhand are 15 points above.

This is the relativist picture that perhaps makes the most illuminating use of a monthly index, whatever its faults and shortcomings. The well-appointed chart that I have drawn helps show why the speeds and acceleration, between a current measure and an earlier set of measures, are more important to consider than the absolute numbers themselves. This is an experimental way to help visualise a subject that is alas rather dry but of great import for every single household. I will update this as new CPI numbers are released by the Labour Bureau every month.

Bharat at 1.3 billion

In July 2016, the population of Bharat will cross one billion three hundred million. In 1937, the population of what was then British India was 300 million. Seventy-nine years later, there are a billion more.

This numerical landmark is based on the 2011 Census of India total population (which was 1.21 billion) and the growth rate of the population, or what demographers refer to as the rate of natural increase.

For a country of the size of Bharat – and for that matter, even for the states with large populations – any ‘total’ or ‘final’ is no more than an estimate that is subject to variability. The population count of any administrative unit (such as a state or district) can be estimated with census data modified by health data (birth rate, death rate) and by seasonal changes (migration).

There are several extenuating reasons why this exercise needs to be done automatically at least every month by the states and the central government ministries and departments. Perhaps the 1.3 billion landmark can goad them into doing so. The carrying capacities of our river basins, the watersheds, the valleys and floodplains, the ghats both Western and Eastern, the plateaus and grasslands, the deltas and the hill tracts cannot be ignored.

Equations that govern these are simpler than they are typically made out to be by science. There is only so much water, land, forest, and vegetation (or biomass) available to support us. The 2001 Census found that the population of Bharat had crossed a thousand million. At that point at least the consequences of a steadily growing population (182 million had been added since 1991, and 345 million – which was the population at the time of Independence – since 1981) needed to have become the subject of monthly reflection and policy.

With Bharat at 1.3 billion being barely three months away, the new state population counts (in the chart) show why such monthly reflection and policy is vital, indeed a matter of urgency. We now have ten states whose population is more than 50 million – the comparisons of the sizes of our state populations with those of various countries around the world are now well-known.

West Bengal in May 2016 has a population of 97.7 million and will cross 100 million by the same time in 2017. In May 2016 the population of Bihar is 111.4 million, Maharashtra is 120.3 million and Uttar Pradesh is 214 million. These are gigantic numbers and it is because they are gigantic that they seem to escape planning notice – but the population of these four states is very much more than the population of the European Union of 28 countries.

The table shows the current estimated population (2016 May) for the age bands (from Census 2011 and adjusted for simple growth), which helps us understand the populations of infants, children, adolescents, youth, early adults, mature adults, the middle-aged and the elderly. About 257 million are under nine years old (19%), about 271 million are between 10 and 19 years old (20%) and about 111 million (8%) are 60 years old and older.

These are aspects that require as much study, comprehension and policy measures as we demand on subjects such as governance, corruption, the price of food, the extent of our forests, the supply of water, and the adequacy of monthly incomes. At the 1.3 billion mark, Bharat’s population is starkly in the foreground.

Ten years of India’s great rural guarantee

Ten years of a rural employment guarantee programme in India is well worth marking for the transformations it has brought about in rural districts and urban towns both, for the two kinds of Indias are so closely interlinked. The ten year mark has been surrounded by opportunistic political posturing of the Bharatiya Janata Party (BJP) of the ruling National Democratic Alliance and by churlish accusations from the Indian National Congress (or Congress party, now in the opposition).

When the National Rural Employment Guarantee Act came about (it is now prefixed by MG, which is Mahatma Gandhi) ten years ago, it was only the newest in a long line of rural poverty alleviation programmes whose beginnings stretch past the Integrated Rural Development Programme (still a touchstone during the Ninth Five Year Plan) whose early period dates from the 1970s as a more coherent manifestation of the ‘Food For Work’ programme. Democratic decentralisation, which is casually dropped into central government communications nowadays as if it was invented only last week, was explained at length as early as the Sixth Five Year Plan. And in the Fourth Five Year Plan, in the guidance section it was stated that measures were needed for “widening opportunities of productive work and employment to the common man and particularly the less privileged sections of society” which “have to be thought out in a number of different contexts and coordinated in to effective, integrated programmes”.

Work demand patterns in four districts (all in Maharashtra) from 2012 April to 2016 February. The cyclical nature of work demanded usually coincides with crop calendar activities in districts and sub-districts. This aspect of the MGNREGA information system can be used as a good indicator for planning by other line ministries, not only rural development. We can see the difference between the set of two districts of Akola and Gondiya, and the districts of Washim and Hingoli: the cyclical nature in the first two is more pronounced. The April to June demand is seen common, and increasing over the three years recorded by the charts.

This is only the barest glimpse of the historical precursors to the MGNREGA. The size of our rural population in the decade of the 2010s transforms any national (central government) programme into a study of gigantism over a number of dimensions, and so it is with the (MG)NREGA whose procedural demands for organising information over time and place became a discipline by itself, leading to the creation of a management information system whose levels of detail are probably unmatched anywhere in the world.

For its administrators, every week that the MGNREGA delivers money to households in a hamlet for work sanctioned by that small panchayat is one more successful week. There have over this last decade been considerably more successful weeks than unsuccessful ones. This has happened not because of politicians of whichever party of persuasion, but because of the decision made by many households to participate in the shape that NREGA (and later MGNREGA) took in their particular village. The politicians, like the parties they belong to, are incidental and transitory. At this stage of the programme’s life, it is to be hoped that it continues to run as a participatory pillar of the economy of Bharat, and assimilates in the years to come new concerns from the domains of organic (or zero budget) agriculture, sustainable development and ecological conservation.

At this stage the commentaries look back at the last year or perhaps two of the programme. “It is unclear, however, what the present NDA government thinks about the performance of the scheme,” commented the periodical Down To Earth. “Last year, Prime Minister Narendra Modi called MGNREGA a ‘monument of failure’. Now, the rural development ministry has termed it as ‘a cause of national pride’.” The magazine went on to add that MGNREGA “started losing steam when wages were kept pending, leading to the liability being carried forward to the following year”.

“What is relatively less known is the impact of MGNREGA on several other aspects of the rural economy, such as wages, agricultural productivity and gender empowerment,” a commentary in the financial daily Mint has pointed out. “While most critics lament the quality of assets created under MGNREGA, there is now increasing evidence based on rigorous studies, which suggest that not only has the asset quality been better than comparable government programmes, they are also used more by the community.”

The finance minister has been quoted by the daily Indian Express as follows: “A kind of indifference towards it (MGNREGA) was growing by 2013-14, when the scheme entered its seventh and eighth years. When there was a change of government in 2014-15, there was talk on whether the scheme will be discontinued, or its fund allocation curtailed,” Minister Arun Jaitley is reported to have said at the MGNREGA ‘Sammelan’ in New Delhi. “The new government [the BJP] not only took forward the scheme but also increased its fund.”

In a Press Information Bureau release, the Minister for Rural Development, Birender Singh, said that 2015-16 has seen a revival of the MGNREGA programme. He also said that more than 64% of total expenditure was on agriculture and allied activities and 57% of all workers were women (well above the statutory requirement of 33%), and that among the measures responsible for the “revival of MGNREGA are the timely release of funds to states to provide work on demand, an electronic fund management system, consistent coordination between banks and post offices besides monitoring of pendency of payments”.

So far so good. What MGNREGA administrators need to mind now is for managerial technology and methods to not get ahead (or around) the objectives of the programme because these tend to keep the poor and vulnerable out instead of the other way around. The evaluations and studies on NREGA – and there have been a number of good ones – have shown that the more new financial and administrative measures there are, the greater the decline in participation in the programme. Administrative complexity also provides fodder to those, like this pompous commentator, who try to find in data ‘evidence’ that NREGA does “not help the poor”.

The MGNREGA’s usefulness and relevance is not only about creating employment when it is needed and its generally positive impact on wages. For all its shortcomings the MGNREGA programme has also helped revitalise the need to understand labour dynamics in rural areas particularly as it pertains to agriculture and cultivation. At a time when the flashier sections of the modern economy have lost their shine (if ever there was a shine) and when the need for panchayat-led, village-centric development that is self-reliant in deed and spirit is growing in Bharat, a programme like the MGNREGA has all the potential to serve the country well for another generation.

Big cities, large appetites, fewer farmers

By March or April 2016 the populations of several of our smaller Class I cities (those whose populations are 100,000 and more) will pass certain marks. These marks mean little by themselves, but ought to be used by city administrations (municipal council and civic services departments) to judge for themselves how essentials are being provided for and used: food, water, sanitation, electricity, waste.

There are now 152 towns in the National Urban Information System, which is – if I have understood this national urban administration maze – under the Urban Infrastructure Development Scheme for Small and Medium Towns (which goes by the utterly unfriendly acronym of UIDSSMT). This is described as: “a component of JNNURM. The Mission aims to encourage reforms and  fast track urban infrastructure and services delivery, community participation, accountability of ULBs/parastatal agency towards citizens.”

As you can see, the Ministry of Urban Development likes dreadful acronyms, and likes keywords such as ‘component’, ‘reform’, ‘fast track’, ‘services’, ‘infrastructure’, ‘PPP’ and anything else that sounds large, technical and expensive.

The JNNURM which got all this going in the first place (the Jawaharlal Nehru National Urban Renewal Mission) turned ten years old in December 2015. Its ideas, assumptions and performance ought to have come under careful scrutiny at least on this occasion. It didn’t because there’s so much else to be distracted by when it comes to smartening up cities and towns in India these days.

The JNNURM favoured 65 cities for what it called a “higher level of resources and management attention” and with typical confusion also said these 65 ‘mission cities’ are under the Urban Infrastructure and Governance (UIG) programme. But, as I have written about here earlier, there are many towns in India whose populations are growing quickly, because of which ‘services’, ‘infrastructure’ and more modest levels of ‘resources and management attention’ all become programmes (with complicated balance sheets, naturally).

And so we have the Smart Cities Mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) – I’m still working out how it fits together with everything else going on in the Ministry of Urban Development.

Here’s what the officialese says: “Smart Cities Mission is based on the idea of developing the entire urban eco-system on the principles of complete and integrated planning.” Leaving aside the question of whether non-Smart cities (and towns) are destined to remain unsmart and unacronymed, 100 cities have been selected to become smart.

Nor is that all. There is an Urban Rejuvenation Mission (which goes by the, erm, unprepossessing acronym of URM) which the ministry says it is finalising which seems to have very much to do with infrastructure development, but on a much larger canvas of 500 cities, “to be implemented over a period of 10 years from 2014-15 to 2023-24”.

Nowhere in this plethora of programmes and schemes and grand visions have I seen anything that remotely refers to foodstuffs that city populations need, every day, week, month and year.

And so to return to March or April 2016 when the populations of several of our smaller Class I cities (those whose populations are 100,000 and more) will pass certain marks. Using the 2001-2011 decadal growth rates for the urban centres, and adjusting for lower growth rates for the most recent three years (to account for factors such as fewer work opportunities in these centres, rising urban costs of survival compared with the slower increase in wages for informal work, and the benefits of the MGNREGA, here is a summary that shows the sort of change we continue to see in towns and cities.

Chhindwara and Guna in Madhya Pradesh, Nabadwip in West Bengal, Bhusawal in Maharashtra, and Modinagar and Sitapur in Uttar Pradesh will all have reached or crossed the mark of 200,000 residents. Likewise, Vadakara in Kerala, Ganganagar in Rajasthan, Haldwani in Uttarakhand, and Karur, Udhagamandalam and (all three in Tamil Nadu) will all have reached or crossed the mark of 250,000 residents. And moreover Farrukhabad-Fatehgarh in Uttar Pradesh, Satna in Madhya Pradesh, Jalna in Maharashtra and Navsari in Gujarat will all have reached or crossed the mark of 300,000 residents.

What is the impact of these increases in the populations of these cities? Using the recommended dietary allowance (prescribed by the National Institute of Nutrition) this is what the population increases mean for the provision of food essentials. Every day in 2016, Sitapur in Uttar Pradesh will need 92 tons of cereals, 8 tons of pulses and 20 tons of vegetables. Compared with the city’s needs in 2001 (when the previous census was done) Sitapur will consume 23 tons more of cereals, 2 tons more of pulses and 5 tons more of vegetables – every day.

In the same way, every day in 2016 Navsari in Gujarat will need 137 tons of cereals, 12 tons of pulses and 29 tons of vegetables. Compared with the city’s needs in 2001 Navsari will consume 31 tons more of cereals, 3 tons more of pulses and 7 tons more of vegetables – every day. Then there is Hosur in Tamil Nadu which every day in 2016 will need 115 tons of cereals, 10 tons of pulses and 25 tons of vegetables. Compared with the city’s needs in 2001 Hosur will consume 77 tons more of cereals, 7 tons more of pulses and 17 tons more of vegetables – every day.

This is an indication of the food dimension of the population change that we are seeing – of ever greater quantities of the bare essentials being needed, but fewer agriculturists and cultivators – that is, fewer farming households growing these and other food essentials in their fields – remaining to support nearby (and distant) urban populations.

These equations are simple enough to understand for the Smart city lot, the JNNURM technocrats and the engineers and financiers running the PPP treadmills. Why then hasn’t daily food budgets of our towns and cities made it to the top of the urban renewal charts of India?

Cities by numbers, a count of our cities

The 27 cities shown on this map are no different from many others like them in India today, and the selection of these 27 is based solely on a single numerical milestone which I am fairly sure few of each city’s citizens (or administrations for that matter) will have marked.

On some day during the months since March 2011, the population of each of these 27 cities has crossed 150,000 – this is the criterion. March 2011 is the month to which the Census 2011 has fixed its population count, for the country, for a state, a district, a town.

And so these 27 cities share one criterion – which they be quite unaware of – which is that when their inhabitants were enumerated for the 2011 census, their populations were under 150,000 whereas in the four years since that mark has been crossed.

Any population mark is as arbitrary as any other. What such an exercise does help with is that the spotlight of awareness about our living spaces can once more shine on that factor which stands above all others: our numbers. It is these numbers that dictate our impacts, as individuals and as householders, on the environment and its gifts.

That’s why it is of scant interest to us that the city of Palanpur in the district of Banas Kantha (Gujarat) would have crossed the 150,000 mark only very recently, perhaps one or two months ago, just like the city of Beed in the district of the same name (Maharashtra).

It is also of scant interest that whereas the city of Barabanki (district Barabanki in Uttar Pradesh), crossed the mark within a year after March 2011, it was in 2013 that Kaithal (district Kaithal, Haryana) crossed the same mark (as did Sasaram, in the district of Rohtas, Bihar).

On this map, some of the increments seem small – look at Damoh in Madhya Pradesh and Tiruvannamalai in Tamil Nadu. What is of interest to us the cumulative impact of these small increments over time.

When the great enumeration of 2011 fixed their populations, these 27 cities taken together were home to 3.88 million people. In 2015 September about 4.3 million people live in the same 27. The difference between the two totals – about 405,000 people – is more than the population of any two on this short list together!

This is but the briefest outline for 27 cities only. Using a conservative estimate for the annual population growth rate there are in 2015 September 238 cities (including these) whose populations are between 100,000 and 200,000 – Nabadwip in Nadia district (West Bengal), Neyveli in Cuddalore district (Tamil Nadu) and Rae Bareli (Rae Bareli district, Uttar Pradesh) have all just crossed the 200,000 population mark.

So many households, some in slums (pucca and ‘regularised’, or with blue plastic sheets for a roof and water mafias in control) and some in tenements, some owning a car and two-wheeler both and others reliant on public transport and the kindness of neighbours, very very few with electricity around the clock and every one of those that can afford it with an inverter or UPS. All, humble or well-to-do, with a monthly food budget and all, humble or well-to-do, with dreams and hopes.

The colossi of Guangdong

West of Hong Kong lies one of the most extraordinary landscapes in the world, as much for the dense concentration of urban zones, of industrial and factory regions, but also for the change that has occurred over the space of a generation. In the 1970s, the Pearl River Delta was a mainly rural region. Of course there was Guangzhou (known to the world as Canton) but the rest of the sprawling delta was village. The Pearl River itself (‘Zhu Jiang’ in the Chinese) is China’s third longest river, but the second largest by volume of water which moves (after the Yangtze) and its course and seasons governed a basin in south-central China that is just over 400,000 square kilometres large.

The nine cities of the Pearl River Delta together form the world’s most urbanised region. Where did they come from? According to most annals of trading history concerning China, in the late 17th century the Qing government became more open to foreign trade and when that happened Guangzhou (Canton) quickly became a suitable port.

A shipping container terminal whose size defies the scale the eye can gauge, but one of several in the Pear River delta region.

The Portuguese in Macau, the Spanish in Manila, Arabs from the Middle East and Muslims from India were already actively trading in the port of Canton by the 1690s, when the French and English began frequenting the port through the ‘Canton System’ (which was the name given to the imperial court’s regulatory response to what it saw, that long ago, as political and commercial threats). But for the Pearl River Delta, the gates had been opened – the Ostend General India company arrived, so did the Dutch East India Company, then came ships from most western colonial powers.

Over every horizon in every direction but towards the sea is such a landscape, teeming with structures and over-crammed with multi-tiered infrastructure.

By the middle of the 18th century, Guangzhou had already emerged as one of the world’s great trading ports, and the ‘Thirteen Factories’ (not in fact factories at all but the designated areas of the port in where foreign trading was conducted) which were given imperial leave to operate, ensured the distinction was maintained until the outbreak of the First Opium War (1839) and the opening of other ports a few years later.

When, in the 1990s, China became known as the factory of the world, the province of Guangdong (of which Guangzhou is the capital) was where these manufactures were done. This is the activity which has made the province both the most populous in China and the biggest contributor to national GDP. What has also happened is the most rapid urban expansion in human (and Chinese) history. In a little more than 30 years, the Pearl River Delta region has become the epicentre of the Chinese manufacturing and consumer economy.

Over two generations, the urbanisation rate has increased from 28% to 83% which in effect means that where once not very long ago two-thirds of the residents pursued agriculture-based livelihoods, now four-fifths live in fully urban environments. The scale and speed of this transformation is astonishing. The cities of the Pearl River Delta have since 2008 been also referred to as a single interconnected zone of megacities, as their perimeters have blurred, they merge through wide highways and fast railway links and the endless manufacturing zones with their vast factory structures. The entire region has a geographical size larger than Denmark or Switzerland – with a wide river lined thick with docks and crammed with watercraft running through in the middle.

As densely packed as components on printed circuit boards, but these factory zones are kilometres long on each side, and their clones fade into the blue industrial haze.

Working and living here is the largest urbanised population in the world – Guangzhou with 12.8 million, Shenzhen with 10.5 million, Dongguan with 8.3 million, Foshan with 7.3 million and the rest (Huizhou, Zhongshan, Jiangmen, Zhaoqing and Zhuhai) with another 18 million together) for a linked agglomeration of 56.9 million people. This enormous urbanised region accounts for 4.2% of China’s total population, and for 9.3% of its GDP. The multi-megalopolis has been assembled through the completion (and continuous expansion) of more than 150 major infrastructure projects (each by itself would be a significant milestone in a small country) which have helped the colossal network of transportation, water, energy supply and telecommunication to function every day.

There are labyrinths of roads, tunnels and bridges across the delta, as well as intra- and inter-city railways so that the residents of the Pearl River Delta speed from any one of the nine cities to another in an hour or less. Extending south-eastwards, these lead into Hong Kong, the Special Autonomous Region, whose economic might and cultural richness are both natural guides for the Pearl River multi-megalopolis but also (as seen from within Hong Kong, and perhaps Beijing) its competitor. Will the Pearl River Delta – the world’s biggest concentration of manufacturing megawattage, of people and of infrastructure – eventually absorb Hong Kong?

[Photos by Rahul Goswami, 2015.]

Why India must rely on local food stocks

The below average June to September monsoon season will lead to lower foodgrains production. What is the likely impact and how can society cope?

Context – For the last four years the numbers that describe India’s essential food security have become a common code: 105 million tons (mt) of rice, 95 mt of wheat, 41 to 43 mt of coarse cereals, 19 to 20 mt of pulses, 165 to 170 mt of vegetables and 80 to 90 mt of fruit.

With these quantities assured, our households feed themselves, army and factory canteens are supplied, the public distribution system is kept stocked and the processed and retail food industry secures its raw material.

Only provided there is such assurance, and that the allowance for plus or minus is as small as possible. Monsoon 2015 has removed that assurance for the agricultural year 2015-16. Our 36 states and union territories – and the 63 cities whose populations are more than a million – must begin to deal with the possible scenarios immediately.

Stock scenarios – In September 2015 the Department of Agriculture, Cooperation and Farmers Welfare, of the Ministry of Agriculture, Government of India, released the first of its usual four ‘advance estimates’ for the 2015-16 agricultural year. Each estimate sets the targets for the year for the foodgrain (and also commercial) crops, and provides with every estimate how likely it is that the annual target will be met.

This first advance estimate has issued a direct warning: rice production is estimated at 90.6 mt against a target of 106.1 mt. The wheat target is just under 95 mt but there is no estimate provided as yet. The target for coarse cereals is 43.2 mt whereas the advance estimate is just under 28 mt. The target for pulses is 20mt and the first estimate is 5.5mt.

What are the implications? The responsibility of the Department is to provide a provisional reading of the conditions that affect the production of our staple crops, and to inform and prepare state and central governments of the likelihood of shortfalls in foodgrain. The signal it has given for rice, estimated at 85% of the target, must be taken as a flashing red beacon which demands that our food stocks return to the foreground of the national agenda.

It is likely that the second and third advance estimates will see quantities revised upwards, but our planning must be based on this first estimate so that even the most adverse of natural contingencies can be met with suitable measures.

Using the first advance estimate as the basis, here are the likely annual production quantities, at 90% of the target and at 95% of the target: rice, between 95 and 101 mt; wheat, between 85 and 91 mt; coarse cereals, between 39 and 42 mt; pulses, between 16 and 17 mt; total foodgrains, between 236 and 250 mt of which cereals are between 220 and 232 mt.

Household demand – Will these quantities suffice, as for the last four years total foodgrain targets and production have been in the region of 260-273 mt?

To help answer this question, two sets of deductions must be accounted for. To begin with, for each main category of foodgrain, there are production quantities, imports, stock variations and exports. When these are added or subtracted, a gross domestic supply quantity remains.

It is worth also noting that this gross quantity is still no more than a best assessment that is synthesised from the information provided by state governments. The first set of deductions is by way of feed, seed and waste (foodgrain that is used in animal feed, is harvested to use as seed for sowing, and which is damaged after harvest or rendered unusable because of pests and infection). Allowing for the lowest likely level of deductions, the combined deduction is about 7% for rice, 10.5% for wheat, 17% for coarse cereals, 15% for pulses, 5% for vegetables and 10% for fruits.

The available quantities are now revised further. Under a 95% of target scenario, we will have 93.5 mt of rice, 81 mt of wheat, 34.5 mt of coarse cereals and 14.5 mt of pulses. In the same way, a 95% of target scenario for vegetables is 153.5 mt and for fruits it is 72.5 mt. On the consumption side we have the households – in 2016 we will have 175 million rural and 83 million urban households.

These households will require a baseline minimum of 181 mt of cereals, 136 mt of vegetables, 45 mt of fruits and 41 mt of pulses. Under a 95% of production target scenario therefore, there will be enough cereals, enough vegetables and enough fruits. We have been falling short in pulses for several years.

But this apparent comfort is still without the second set of deductions. And these are: (1) buffer stocks of rice and wheat to be maintained, with 5-8 mt of rice during the year and 10-18 mt of wheat during the year (to fulfil the demands on the public distribution system and to fulfil the allocations for the food-based welfare programmes), and in addition the strategic reserve of 2 mt of rice and 3 mt of wheat to be maintained; (2) the use of foodgrains by the food processing and retail food industry; (3) exports of primary crops (such as rice and in particular basmati) and processed crops (vegetables and fruits); (4) the industrial use of foodgrain (including for biodiesel); (5) the diversion of cereals to alcohol distilleries.

Some amongst the second set of deductions are known – such as the withdrawals for buffer stocks and the food reserves, and the export quantities – but the others are either hidden, concealed or misreported. In a food production scenario that is less than 95% of targets (in the way that rice has already been estimated for 2015-16), the deductions from gross crop production will decrease available foodgrains, vegetables and fruits to levels that will compromise household food security, especially those households in the lower income brackets.

Recommendations – The climate variations that have led the Department of Agriculture to raise a red flag warning are no longer uncommon. The 2015 monsoon was affected by El Nino conditions, which are expected to continue into the first quarter of 2016. These changes in the pattern of the Indian summer monsoon are amplified by land use change in our districts, by deforestation, by rapid urbanisation, by inequitous water use, and by consumption behaviour. Some of these can be addressed through policy, education and incentives over the long term. What is needed immediately however are:

a) A review of the drivers of crop cultivation choice in our watersheds and agro-ecological zones so that, as far as possible, these settlements units begin the transition towards local food security in sustainable ways. This means that the income-led arguments which favour the cultivation of commercial crops for farming households must be critically re-examined – in a situation of primary crop scarcity an income buffer alone will not help these households.

b) The demands placed by export arrangements (including the export of meat, which represents fodder and feed) and by the food processing and retail food industry must be quantified and made public. Especially at the level of district administrations, the need to rationally incentivise land use towards the cultivation of food crop staples that suit agro-ecological conditions has become an urgent one. The decentralisation of planning that can make such an approach possible can take place only when hitherto hidden and concealed foodgrains use becomes public.

c) To reach self-reliance at the level of panchayat or block (tahsil, taluka), cooperative farming must be vigorously encouraged, villages must become self-reliant in the provisioning of their food staples (a consideration that must balance that of the ‘national market’), the bio-physical limits of the major food producing districts (the top 250 by quantity) have already been reached and this necessarily limits the demand urban India can exert upon rural districts, in terms not only of food quantities but also in terms of the population that must be fully engaged in foodgrains cultivation.