| Self-Sustianing Economic Zones
Posted byAsir Ebenezer
Making Globalization Irrelevant
Through
Self sustaining Economic Zone
Today over 40 % of the global population is under poverty and nearly half of them in acute poverty. India is undoubtedly the abode of almost 400 million of them
- Joseph Stiglitz,
Nobel laureate andFormer WB Chief Economist
The harsh reality of poverty and unemployment manifest in the cruel forms of farmers’ suicide, and massive migration of rural folk to urban habitations.
India Peace Centre in association with Urban Rural Mission of NCCI, has been organizing a series of four training programme for rural youth and women leaders on Self Sustaining Economic Zone as pragmatic way of fighting against poverty and starvation. It is a way of poor masses organize themselves into one economic zone, retain their market potency for themselves and convert it into production and distribute the employment among all the members equitably.
There is tremendous response for this concept from poverty stricken Poor villagers of Vidharba, particularly the Tribal communities. The last training programme was held on March 06 and 07 2007 at Dharmpuri of Bhandara District of Maharashtra. The first two training programme were held at Nagpur, the third one in Sakoli, Bhandara.
Self Sustaining Economic Zone:
SSEZ means, a set of villages (villagers of a specific area) forming themselves into an economic zone in order to retain their own market for themselves. Individual members of the zone would buy commodities that are produced/processed within the zone only. And every bit of employment they generate would be equitably distributed among the member consumers alone. The zone would produce everything that the zone members require. And it would sell its commodity to outside market to the tune of what it consumes from outside the zone.
Consumer has the Right to Produce / work:
As consumers create demand and make production possible, they also have the right over the employment involved in that production. This has to be honored in order to address the problem of unemployment and poverty. SSEZ helps in this regard.
Micro Economic Principles:
In order to make SSEZ a reality we need to follow certain micro economic principles.
1. Consumer - Producer Parity: In any specific group of consumers, the quantum of consumption in any given period of time is constant and the employment potency (production) generated thereby, is also constant. In order to render equitable economic justice, the number of producers (owners, workers and all associated servants) must be equal to the number of consumers. In other words, the available job generated by the consumption of a community need to be equally distributed among all the members of the community.
2. That is possible if only individual confines his/her demand for job/employment with in the average per capita job availability. Confining individual’s job demand within the per capita job availability is what we term as micro economy.
3. Consumer – Producer bilateral relationship: Economic Justice and equitable employment distribution is possible if only producers become mutual consumers.
4. Optimum employment potency: It is calculated keeping in mind the intended average income of the members of a specific community and the total demand of the particular commodity.
Profit Potential in the production
of the commodity
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Average intended per capita income
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Number of Jobs in the production of a particular commodity
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Divided by
Based on these principles, we can form an alternative economic structure that ensures ‘equitable economic justice’ by distributing employment following micro economic principles. We call this structure ‘Self Sustaining Economic Zone’.
1. As Market has become the fifth factor of production, alternative to present economy too start with alternate market system.
2. Consumers Unite: The consumers who are the stakeholders of the employment (involved in the production of the commodities they consume) unite themselves to retain their market potency to them.
3. Exclusive Market: Consumers in order to retain their market potency, form their won market and confine all their buying to that market.
4. Exclusive Production: A set of people (consumers of a specific area) after forming themselves into an economic zone and retaining their own market for themselves, can start producing all they require. Individual members of the zone would buy commodities that are produced/processed within the zone only. And every bit of employment they generate would be equitably distributed among the member consumers alone.
5. Import Export Parity: The zone would sell its commodity to outside market to the tune of what it consumes from outside the zone.
Formation of SSEZ
1. Initiating Self-Help Groups – 700 groups of 15 families each (to make it 10000 families)
2. Initiating all the basic processes of SHG with in each group (Savings, group dynamics, linkage with bank, lending etc)
3. Consientizing the masses of their own market strength and prepare them for retaining it.
4. Encouraging the members to start small shops in their villages, one shop in each village.
5. Orienting the members to buy only from the shop of the members.
6. Bulk purchase of commodities for retail sale in members shop. This is for the initial period
7. Study the market trend of different commodities sold in the members shops
8. Train individual members to produce commodities that are in demand in members shop. As the members start producing commodities, bulk purchase from outside will be curbed.
9. Structuralize procurement, distribution and finance flow and management
10.Monitor and train people to improve their reliance on members (shops) produce.
11.Orient the producers to improve the quality of the produce.
Create an external marketing mechanism.
Government is wedded to a wrong breadwinner (global economy) and is unlikely to divorce. Like a typical Indian wife she blindly believes this spouse, who is selfish to the core. So it is we who pay for the folly, ought to set it right. If we start consuming the produce of those who doesn’t occupy undue economic space, say for eg small / cottage produces, we would effectively disarm the killer tribes called MNCs and other mega economic players. Buying things of a small actor ensures a comfortable entrepreneurial space for oneself. Small is mutually sustainable. Therefore ‘judicious consumption to earn a living’ ought to be our guiding principle.
Hundred Mittals and Ambanis can make our GDP look formidable. But they will do so only by excluding millions from the race, from the phases of economy. GDP for a society full of excluded souls, would mean ‘Gross Domestic Problems.’ It goes without saying that, gross unemployment would give rise to such social fallouts as criminal and anti-social behaviour at large. We don’t want hundred billionaires, but a billion humans above poverty.
The principles of micro economy as reflected in the ‘Self Sustaining Economic Zone’ would guarantee equitable distribution of production opportunity and bring people out of poverty. If people choose to form their own SSEZ everywhere then, the MNCs and maga industrial products would become irrelevant in the local market. In a sense this would be the best way to boycott these unsocial commodities commercial ventures.
By
Dr. D. John Chelladurai,
Director,
India Peace Centre, Nagpur.
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