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Network Economy Model of Development
Village Swaraj - The concept
When production and consumption both become
localized, the temptation to speed up production, indefinitely and at
any price, disappears. All the endless difficulties and problems that
our present-day economic system presents, too, would then come to an
end. Distribution can be equalized when production is localized; in
other words, when the distribution is simultaneous with production.
Distribution will never
be equal so long as you want to tap other markets of the world to dispose
of your goods.
My machinery must be of
the most elementary type which I can put in the homes of the millions.
Under my system, again, it is labour which is the current coin, not
metal. Any person who can use his labour has that coin, has wealth.
He converts his labour into cloth, he converts his labour into grain.
If he wants paraffin oil, which he cannot himself produce, he used his
surplus grain for getting the oil. - Gandhiji in an interview, Harijan,
2-11-1934
Village Economy -
basis of its sustainability
Traditionally village communities in India have maintained a sustainable
economy through which they have maintained their security of their basic
needs. This has been made possible through practices of sustainable
agriculture, low cost labour and simple and yet elegant life style.
Such a sustainability of the day to day life in the village has been
the basis of the sustainable economy.
Village Network Economy
- Need of the Hour
Village network economy is an village community centered initiative
whereby the village aims to produce as much of its consumables within
itself or the surrounding network villages. The production process would
include agriculture, processing, manufacturing, preserving and marketing.
The production process is distributed among the network villages in
such a that maximum needs of these villages are produced amongst themselves.
The sur-plus produced through the network villages would also be made
available to the nearest town / city.
The efforts in processing,
marketing and other ways of converting the raw produce to village consumables
would generate reliable long-term employment for more than 30% of the
villagers. Apart from these there is agriculture and other allied jobs
which employ about 40% of the people. The rest of the people would be
either self-employed or could be easily absorbed through other means
of development.
In an typical network of
about 6 village with an average population of 1000 families each, the
food consumables such as rice, oil, dhal, baked food, milk and other
dairy products and other consumables such as soaps and detergents, other
health care and cosmetic items, clothing, etc. can all be produced within
in the village network itself. This would create jobs for about 1000
families directly at least.
The value of these consumable
would be to the tune of Rs.2.5 Crore per month. Currently, this amount
leaves the village for purchase of these consumables depriving the villagers
of any savings or capital creation. This also limits the options of
the village communities in any self-directed development or investment
for local development. It has been well proved that the increase in
the currency flow within the village communities through the Self-Help
Groups initiative has increased investment in the social and welfare
sector within the village. Such cash flow would also release the villagers
from the debt traps of local money-lenders.
The infrastructural needs
for creating such an initiative too are rather simple. Most villages
already have the land, water, labour and work space requirements. Creating
of a Communication network amongst the network villages too does not
require huge investments. Nor would the transport needs be high as the
mobility requirements would be only for short distances between the
villages.
Village Economy -
tapping dormant community strengths
Creating such vibrant local network economies does not require too much
of external inputs in terms of skill or knowledge transfer. The skills,
techniques and knowledge required for the basic needs of the village
economy have been present in the village communities for long.
The village community strength in terms of co-operation too can be used
to make a mutually dependent economy a success.
Today, low-cost modification
to traditional techniques in cloth making, food processing, agriculture,
water management, etc. have produced a vast knowledge base of easily
implementable solutions that are not too difficult for the village community
to adopt in their surroundings. Such techniques from research institutions
across the country could be utilised as a choice of expansion possibilities
for the village communities to bring in external currency to the network.
Village Economy -
working models as nuclear villages
The need to create a working model to instil confidence in such a network
economy amongst villagers and policy makers is essential. Community
enterprises and trading centres for the consumables of the village community
would be set up in such villages as an initiative. Such nucleus village
would be part of a network themselves, but, in addition be a show case
for self-dependent village economy. They would demonstrate the economy
and also be a communication centre for the same. There could be about
50 such model villages across the country each with their own network
of 6 villages.
To start with, Kuthambakkam
village in Tiruvallur District of Tamilnadu is striving to demonstrate
this concept. In this district, due to persistent campaigning 6 more
models are in the process of emerging in the same way.
Model Networks to
the rest of the Country - replication
Inspired by the Kuthambakkam example there are many more villages across
the country that have come forward to adopt the network economy concept
and work towards becoming a nucleus village. Ideally, at least one village
in district becoming such an example would be welcome. However, if even
50 villages could be attempted, it would inspire more village to adopt
this model.
