I came across this piece of reading in a Community Friendly Movement website.
Commercial supply chain dynamics do not by themselves address the challenges of third world employment and quality of life issues. However, it is apparent that global trade, essentially in the worldwide industries can either exploit for unilateral gain, or collaborate to “share gain” for overall development of work force.
Corporate Social Responsibility has become a major issue these days for the many major MNCs, who have been establishing in-house fund-managers and PR managers to mange their Brand Image both in the developing countries where they have their back-ends of their supply chains and also at the destination countries for their goods/services.
But then, such an arrangement which is dictated by the market forces cannot always be totally reliable. This is where the Government and the Community can get involved. Since last year a new debate had been cause for lots of firewood being burnt over various intellectuals meeting and discussing about the extent of involvement that the government should be undertaking in both the developmental activities as well as maintaing the economy from falling of a cliff. How much should a Government interfere, and at which segments of its peoples life can it interfere??
I found this in a recent Swaminomics article, “Cash transfers better than drought relief works”
I became a journalist in 1965, when two successive droughts killed thousands and forced India to beg for US food aid. India’s share of global food aid was so large then that a best-selling book claimed that India was unviable and should be left to starve, conserving food aid for viable countries.
A lot has changed since then, we’re still being affected by droughts and as has been discussed in the above-mentioned article, the major difference since then till now is that, India has far less percentage of people who are starving. This is because of schemes like NREGS which provided the people in the drought affected regions some much needed purchasing power, this in-turn decreased the sufferings from mass-starvation, though probably not mass-hunger. Maharashtra was the first state to adopt this strategy and succeed.
Government involvement in relief works has always proved very controversial, with the Prime Minister himself stating on one occasion that for every rupee that the government spends for the poor, they get the benefits of only 10 paise, the rest being eaten up by the mind-boggling numbered layers of middlemen.
Even various Non-Governmental Organizations suffer from these middlemen, probably to different extents. This has been a major reason for the success of the NREGS(National Rural Employment Guarantee Scheme) where apart from implementing various developmental programmes at the rural level, the purchasing power of the poeple is being increased and the choice is being left to the beneficiaries to utilize their earnings.
The benefits can already be felt with various companies setting up shop in the semi-urban and rural areas and taking this segment of the population seriously as one of their major customer segments. Now this is Inclusive Development.
The drought that is occuring this year might setback the pace of all these processes, but how the rural customer can overcome this time can determine how fast a domestic market can be nurtured and developed in India.