[This is an earlier unedited English version of the interview that came out
in Odia
in the Sunday Special of Sambad on 31 May 2020.]
Professor Srijit
Mishra is Director, Nabakrushna Choudhury Centre for Development Studies
(NCDS). He has been Professor at the Indira Gandhi Institute of Development
Research (IGIDR), Mumbai and was the Chair Professor for India Studies at the National
Cheng Chi University, Taiwan. He has also been a Subir Chowdhury Fellow at the
London School of Economics and Political Science (LSE). He is in discussion with Kshetrabasi Nayak for Sunday Special of Sambad.
Q1. The carona
pandemic has adversely affected us globally, nationally and in the state (Odisha).
What will be its impact on the economy of our state?
A1. You
are right. The corona pandemic will have an adverse impact on global, national
and the state's economy. In fact, it will have adverse impact on all sectors of
the economy. Nevertheless, a silver lining has been Odisha's approach to
address the pandemic. Globally, we have heard about the successes in South
Korea, Taiwan and Vietnam as also in Kerala state of India. All these have had
impressive public health record. Odisha, in spite of its relatively poor health
record, has done reasonably well in addressing the pandemic so far and can also
be counted among these successes. The pandemic has put us all in a state of
uncertainty. It is difficult to quantify the adverse impact, but as past
pandemics suggest, saving lives and dignity now will help revive livelihood and
economy later. Hence, in this sense, Odisha has been on the right path.
Q2. The central
government has announced a special package for 20 lakh crore rupees (20 billion rupees). How will
it be helpful for us?
A2. The
pandemic has created a problem in the economy that has led to shocks on the
demand side as also the supply side (both curves have shifted left). The
stimulus package, prima facie, seems to be addressing the supply side
(liquidity measures by the Reserve Bank of India, which were made prior to the
current announcement, and credit facilities for MSMEs (micro small and medium
enterprises), agriculture and allied, among others) and to a limited extent on
the demand side (for instance, rural employment guarantee, and additional milk
procurement). Besides, we do not have the numbers to say how much of each of
the independent components will come to Odisha and what will be its implication
here. Nevertheless, we should explore possibilities under each.
Q3. How will our
state benefit from the announcements meant to help the MSMEs?
A3. The MSMEs
change in definitions have increased the net. If enterprises based in Odisha do
not move fast then they may miss out. Their associations and the state government
may set up facilitation centres. It is also equally important for the MSMEs to
gauge the future demand of their produce because we will be getting into a new
normal. Otherwise, their debt may become non-serviceable.
Q4. Post corona,
what should be the major concerns for Odisha? How should that be addressed?
A4. We are in a
state of uncertainty with regard to the duration of this pandemic as it is
still ongoing. However, from a global perspective food shortage is something
that should be given paramount importance. In India as also for Odisha, with
Kharif season knocking at our doors, we should consider agriculture, not only
as critical, but also with urgency under the Disaster Management Act. In
particular, sustainable agriculture should be the way forward. The reason for
this is two-fold. One is to do away with the market and non-market risks of
agriculture that can spiral into a debt problem that should be avoided in a
post-Corona scenario. The other is to strengthen the local economy through
necessary forward and backward linkages.
Q5. Large number
of Odia labourers go out in search of work to other states. What is reason for
them to go out? Can we provide them with adequate opportunities within the
state?
A5. Returning labourers
are broadly of two types. One is the seasonal migrants who go out as manual
labourers. These people largely go from rainfed and dry regions of the state
and sustainable agriculture has a lot of potential in absorbing this labour
within agriculture directly. The migrants who go out for work for the entire
year may have obtained a skill and it may not be possible for them to work
in agriculture directly. For them, we should explore the forward and backward
linkages. I must reiterate that, in the immediate short run, I am assuming the
uncertainty that the pandemic has given and we do not know when and where we
will have a containment, red, orange or green zone. Given this, it is paramount
that we strengthen the local economy from the village upwards. The powers that
the Government of Odisha has given to the Sarpanches will help us in taking
this forward. In the medium-to-long run the forward and backward linkages could
be further strengthened with MSMEs, micro food enterprises and street vendors
among others where self-help groups (SHGs) or farmers producers’ organisation (FPOs)
are also involved. People go out in search of work for a number of push and
pull factors. Strengthening the economy while providing them with adequate
opportunities is the need of the hour.
Q6. The
Government of Odisha is planning to double the number of man days of work under
rural employment guarantee. Some people have raised concerns on this. What is
your view?
A6. The
intention behind doubling of work under rural employment guarantee should be
appreciated. However, we should also link this to agricultural work in the
individual's own farm. If it is for agricultural work in someone else's farm or
for community then the individuals should also have an additional share in the
produce. To address concerns of some, we should involve the Gram Panchayat in
decisions and the Sarpanch in overseeing them. However, as conveyed earlier,
this should be linked to strengthening the local economy.
Q7. Will
agriculture be able to provide enough work? Can all returning workers be
employed in this?
A7. Yes,
sustainable agriculture alone has the potential to absorb additional labour.
This reminds one of the Physiocratic economic thinking (much before Adam Smith)
who considered Agriculture to be the only primary sector and all others
dependent on them. During this pandemic, this has some amount of relevance. If
some of the people who have returned to Odisha do not want to take up
agricultural work then they, as indicated earlier, should get engaged in the
backward and forward linkages if they want to. A census of returnees with
information on their current skill set, income that they earned prior to the
pandemic, kind of work they are willing to do, and expected income will help us
in our plans for strengthening the local economy. This could also be linked to
setting up of MSMEs and other entities provided demand for such produce exist.
Q8. The absence
of agriculture-based industries and village-based industries has been raised in
many discussions in the context of residents of the state seeking work outside
the state. What are your views on this?
A8. This
pandemic has given us a new situation and opened our doors to many realities.
Mobility of people and their goods and services have been as old as mankind and
a basis for the progress of civilization. It is also the basis
through which Odisha has a plural and syncretic culture. At the same
time, poor economic and livelihood opportunities can push people out and also
expose them to exploitative conditions. We are at a crossroad where
strengthening sustainable agriculture along with forward and backward linkages
in an enabling environment would give an opportunity to people to be part of this.
It is implicit in this that we also strengthen our public education and public
health.
Q9. To revive
the economy of the state, what are the recommendations that your
institute, NCDS, would
like to give?
A9. This should
be a continuing engagement, as we are all in this together and are learning as
things are unfolding. It may require us to throw away our existing paradigms
and structures and come up with some out-of-the box thinking. The pandemic
also seems to suggest that the states as also local bodies should have greater
revenue earning capacities. For instance, states and local bodies should have a
right to levy additional income tax for residents living within their
boundaries. This is followed in the United States and no reason why
India should not follow the same. Similarly, the funds coming from centre
should not be tied because in a post-corona scenario what may be required in
one state may not be required in another.
Q.10 What are
the other activities of NCDS that would help the state in strengthening livelihood
and economy.
A10. One of the
activities that NCDS has been involved with the Government of Odisha is the Odisha MilletsMission that works within the framework of sustainable agriculture and operates
in four verticals - production, processing, marketing and consumption,
which opens up forward and backward linkages. This sustainable approach
addresses climate resilience and malnutrition, aspects which assumes greater
importance with this pandemic. Hence, such approaches need to be further scaled
up. During the pandemic, our research centre has also come up with a series of
policy briefs to engage with policy makers and others concerned.
[The views expressed here are that of the interviewee and not that of the institutions or organisations that he is associated with.]
