Is the Stage Set for Mainstreaming
Trade into National Development
Strategy of India?
Pramod Dev M
Policy Analyst, Cuts International
Concept of Mainstreaming Trade into
National Development Strategy
Process of integrating trade policies and priority areas of action within
the overall national development plan or strategy
A process of bargaining among key stakeholders and establishing a
correct balance between trade liberalisation and companion policies.
Approaches can take place at three levels- Policy, institutional and
government-donor relations.
Source: Taufiqur Rahman (2004), Concepts and Approaches to Mainstreaming Trade
Objective of the study

Go beyond impact analysis of trade and enquire about the
prevailing conditions for mainstreaming trade into national
development strategy.

To understand the benefit deficits in globalisation and
liberalisation.

Why is there a pattern for winners and losers, especially in a
participatory democracy?

How do the political and economic decision chains work?
How inclusive and responsive the processes are?
Hence the analysis of demand for and supply of support
policies and programs forms the basic frame work for this study
Trade Policy Making in India

Marred in secrecy - limited or selective public consultation

Decisions taken by small group of officials with out enough
prior political consultation

Process is still top-down and not in a position to factor in
ground realities.

Influence of vulnerable agricultural stakeholders limited due to
their capacities and lack of organisation.

Though the consultation processes have been initiated,
inclusiveness is still an issue.
Methodology of the study

Rajasthan and West Bengal as indicated by the project
proposal.

Agriculture sector was selected for its economic, political
and social importance within the country.

Impact of globalisation and liberalisation are most
noticeable in livelihoods and economic security in the
agriculture sector.

Sectoral analysis deemed desirable as the mainstreaming
process could vary across sectors.
Field Research

Field research was conducted in three phases among three
broad stakeholder groups like:
Peoples’ representatives and political functionaries at the
local, state, and national levels and government officials on
the supply side
The households, and local community based organizations
on the demand side

Separate questionnaires for government officials, peoples’
representatives, and households and gram panchayat.
Criteria for Selection of Districts





Analyse disaggregated HDI data to chose Best, Moderate and
Worst performing districts in terms of development.
Percentage of Agricultural population, especially rural, in the
total.
Production of Agriculture- considerable contribution to the State’s
agricultural out put and variety of cultivation.
Access to Public amenities like PHCs, education institutions,
water & sanitation etc.
Allocation of government funds
Districts Selected
Rajasthan
West Bengal
Best
Hanumangarh
Hughly
Moderate
Bundi
Jalpaiguri
Worst
Banswara, Barmer
Purulia, Malda
Criteria for the selection of Blocks from
the Districts
Tentative list of blocks- final selection on the basis of inputs
from the district level.
Select two blocks per district on the basis of following
selection criteria Chose the best and worst blocks on the basis of
development indicators and poverty.
 High percentage of agricultural population (Agricultural
labourers + cultivators) in each block.
 Ensure that each block produce different crops; where
ever possible.
 To ensure heterogeneity not to select contiguous blocks;
unless there is stark difference in terms of development
or major crops cultivated.
 Distribution of funds
Criteria for the selection of Panchayats
from the Blocks
Select two panchayats from the selected block based on



Ratio of agricultural population to total working population
in the villages.
Concentration of agricultural activities.
Based on the inputs from prior interviews and CBOs on
development and agricultural problems; choose the worst
and best performing panchayat on development
Criteria for choice of Household from
Selected Panchayat

Identify the prominent agricultural area using information
from the interviews at the district, block and panchayat
levels.

Establish a direct link with agricultural like a) agricultural
labourers b) Cultivators c) Agricultural Land owners etc. If
the person is earning/earned part/ full of his income from
agriculture she/ he is eligible.

Try to maintain 50:50 sex ratio of the interviewees, as far as
possible.

Choose respondents according to the share of each social,
religious and occupational group in the total population of
the village to ensure an accurate representation of the
society and agricultural activity of the panchayat.
Why Focus on Pachayati Raj
Institutions (PRIs)?

The three-tier PRI System was intended to provide the
people a larger role in political decision making.

Expected to reduce the transaction costs and improve
efficiency of services delivery.

First tier of signalling of needs and demands and last tier
of service delivery.

Proximity to hot-spots of impact- testing the possibility of
swift action.
Results of Field Survey
Basic Information



Participation of the female
stakeholders in the survey was
limited due to the prevailing
socio-cultural aspects and their
lower level of awareness
Elected female representatives
operated in constraining
environments that favored men as
the only important actor
Functional literacy was poor
among the farmers
Raja
sthan
West
Bengal
Total
Total
Respondents
366
412
778
Female
30
65
95
Male
336
347
683
SC
63
135
198
ST
92
74
166
Muslim/ OBC
177
122
299
General
31
78
109
No Response
3
3
6
Education:
Illiterate
112
109
221
Education:
10th or lower
178
260
438
Education:
Above 10th
56
38
94
Occupational Profile



The small- scale farmers constituted
almost 45 per cent of the total
households surveyed
Multiple role in West Bengal
indicates high incidence of outward
migration and seasonal agricultural
employment.
Above 70% of the total respondents
depended on agriculture for more
than half of their incomesusceptibility to the changes in the
international and domestic arena.
Rajastha
n
West
Bengal
Total
Agricultu
ral
Labour
30
64
94
Smallscale
farmer
194
163
357
Medium
scale
farmer
53
32
85
Large
scale
farmer
56
33
89
Multiple
Role
26
118
144
Is agricultural income sufficient for
survival?
Different responses according
to scale of activity:
Large and Medium farmers
receive sufficient income.
Sufficiency for small farmers’
depend on rain, local prices,
affordability and availability of
credit.
 Coping measures- migration,
animal husbandry in Rajasthan
(walking cash reserves!)
Rajasth
an
West
Bengal
Total
Yes
105
113
218
No
207
222
429
Family
Members
Work
43
53
96
Others
2
5
7
Knowledge on International Trade





Awareness on international trade in
agricultural trade and globalization
is abysmally low, even in the export
zones.
Lack of awareness amongst
government officials and people’s
representatives on trade and
globalization
Domestic trade is misunderstood
as international trade
Inability to trace the value chain
beyond the point of sale.
Higher procurement price and
stopping imports as desired
government action against cheaper
imports.
Rajasthan
West
Bengal
Total
Have
Knowledge
37
38
75
Don't know
240
316
556
Sell to
exporters
6
2
8
Don't Know
if it goes
abroad
8
10
18
Know
Someone else
3
6
9
Better price
for exported
items
16
4
20
Reasons for Cultivating Current Crops
Propensity to try new crops low
due to availability of water,
concerns on subsistence.
Increased vulnerabilities due to
dependence on traditional
varieties.
Demonstration effect important in
cultivation of better varieties of
traditional crops.
Timely incentives(especially input)
induce shift to cash crops and
vegetables
Market demand, government
incentives alone not enough
Rajasth
an
West
Ben
gal
Total
Traditional
254
324
578
Government
subsidies and
incentives
0
2
2
Recent
Market
Demand
16
14
30
Contract
Farming
1
2
3
Others
18
2
20
Most Important Point of Sale
•Lack of marketing facilities for
agricultural goods as the important
cause of underdevelopment
•Most small-scale farmers sell produce
close to the farm due to high
transportation costs, lack of awareness
about regulated markets(Rajasthan)
and storage facilities(West Bengal).
•Result: low prices, wastage and
exploitation.
•Low awareness about government
procurement.
Rajasthan
West
Bengal
Total
Government
procurement
1
0
1
Local Private
Agents
136
67
203
Directly at
Mandis
114
208
322
Multiple
Points
46
28
74
Self
Consumption
59
45
104
Knowledge about Govt. Support
Programmes/ Subsidy for Agriculture
•Low: despite the ‘yes’ as most of
them could not single out specific
support for agriculture or its size.
•Government support for housing
was held as agricultural support
•Knowledge limited to ‘minikits’ and
subsidy for drip irrigation .
•Delivery of support inefficientuntimely, insufficient; and corruption
Rajasthan
West
Bengal
Total
Know
About
Govt.
programs
227
260
487
Don't
Know
133
127
260
Access to Agricultural Credit
•Difficult to access government
funds
•Unwillingness to pledge land
•Local money lenders, traders better
source as corruption and delay
make the bank funds costly.
•Sivana, Rajasthan medium and
large farmers have easy access to
credit: middlemen- bank officials
nexus. Indebted beyond their
means in anticipation of waiver.
Rajasthan
West
Bengal
Total
Requested
169
118
287
Not
Requested
182
229
411
Difficult to
get funds
124
100
224
Not
difficult to
get funds.
58
79
137
Primary Contact on Government
Support
•GP members best informants and
primary access points.
•Capacity of the GP members as
facilitators limited due to lack of
information and dependence on
govt. officials.
•Outreach programmes of the
agricultural departments ineffective
•Difference of opinion between
officials and political functionaries
on the best access points.
Rajasthan
West
Bengal
Total
Approach
Dept
Directly
124
78
202
Go through
Political
Leader
37
40
77
Panchayat
Members
155
172
327
Others
36
59
95
Who could deliver support at the time of
need?
•Farming has become speculative- Increased Vulnerability
•Uncertainties in the form of price shocks and crop loss
•More than profit margins, resources and time needed to recover
after a loss determine the impact of shock in the era of globalisation.
•Important to assess stakeholder confidence in the available
mechanisms
Wide variation in responses
•Rajasthan- Government, as
neighbours will also be affected.
•West Bengal- Sceptical about
government support- community
and self help.
Rajasthan
West
Bengal
Total
Local
Panchayat
61
33
94
Agri Dept./
State Govt.
121
20
141
Neighbours
39
136
175
None/self
27
109
136
Others
14
56
70
Preferred form of Support
•West Bengal preference for
monetary support
•In Rajasthan, the stakeholders
preferred food grains as the best
form of support in Banswara; input
subsidies in Barmer and work in
Bundi.
Rajasthan
West
Bengal
Total
Money
55
244
299
Food Grains
80
30
110
SubsidyInput
58
29
87
Work
66
39
105
Other
13
13
26
NREGS as a Support Measure
Teething problems: Less than legal wages and work
Higher awareness, unforeseen transparency
Positives
•Just five percent of the willing respondents did not receive any work.
•General satisfaction with wages; not with work.
•Rural wage rate has gone up; and out-migration has come down
•Employment for women in the vicinity of their homes and equal wages.
•Creation of rural infrastructure
Points to Ponder
•The scheme needs to be reinvented to sustain- should not be too successful
•Should only supplement rural employment and not replace
•Incorporate labour mobility.
•Ward- off ensuing nexus and misuse with more transparency and audits.
Perceptions on NREGS
Experience with NREGS( 596 respondents)
Rajasthan
West Bengal
Total
Applied/ has Job Card
146
317
463
Did not seek work
22
22
44
Doesn't Know about NREGS
4
22
26
Less Than 100 Days Work
Received
106
234
340
No Work Received
3
47
50
Less than Stipulated Wage
107
7
114
Satisfied With Work Received
67
32
99
Not Satisfied with Work Received
44
112
156
Satisfied With Wage Received
61
36
97
Not Satisfied With Wage Received
46
23
69
Gram Sabha in Mainstreaming
Development
•High participation and information on Gram sabha; barring few exceptions
•Scepticism about its utility
•Functions of gram sabha are not well understood by polity- Requests largely relate
to personal needs.
•Idea as a tool to aggregate articulate demands has not caught up in the villages.
•Policy makers do not pay enough attention to the action plans of gram sabha.
• Predetermined thrust areas affect Grama sabha’s effectiveness in responding to
local needs
• Burueacratic- responsibility to draw plans and financial authority, limited authority to
people’s representatives.
•Misuse of gram sabha in West Bengal due to competitive politics.
•Process of elimination of requests problematic and snaps the signalling process.
Perceptions on Gram Sabha
Rajasthan
West
Bengal
Total
Attended
Gramsabha
197
262
459
Not attended
142
61
203
Not Interested
22
20
42
Don't Know about
Gramsabha
30
48
78
Proposed Activities
162
182
344
Recommendations of
Gram Sabha are
Implemented
85
119
204
Recommendations of
Gram Sabha are not
Implemented
131
116
247
Funds Available to GP
•Considerable lack of knowledge and
secrecy about funds available at the
GP level
•Available funds are insufficient.
•Mostly, funds are underutilised due to
untimely allocation and improper
planning
•More funds may not translate into
more development
Rajasthan
West
Bengal
Total
Sufficient
80
68
148
Not
Sufficient
116
131
247
Don't
Know
155
168
323
People as Policy Makers
Are common people capable of participating in governance?
•More than 60 per cent respondents had suggestions to offer.
•Most suggestions were on personal needs
Need to strengthen existing avenues of consultation and introducing
fool-proof methods to ensure effective stakeholder participation in
political decision making.
Impediments to Mainstreaming
Development
•The Missing Opinion: Women in Decision Making.
•War & peace between government officials & peoples’
representatives at the GP level.
•Convenient Coalitions: Peoples representatives from Weaker
Sections
•Lack of reach and responsiveness of government support
mechanisms.
•Irrelevant eligibility criterion- misuse of BPL Cards
•Inefficient use of government funds
•Ignorance about issues related to globalisation and its impact
• Asymmetric information and adverse selection by stakeholders on
markets and prices.
In retrospect…
•Lack of stakeholder participation in political decision making
•Gram panchayat cannot respond to contingencies
•Complex signalling process to gather information on demands from the
•ground with multiple actor involvement.
•Multiple layers of decision making often result in inefficient
implementation of support schemes.
• Absence of an inclusive mechanism that could reflect the ground
realities in the formulation of national development strategy.
The need is to mainstream development in the national development
strategy- democratisation of the process.
Development, when inclusive, is the best strategy to mainstream
trade.
Way Forward?
• Strengthening the capacity of central government and its officials in
effective assimilation of poverty and livelihood concerns.
• Wider stakeholder consultation at the state and district levels.
• Strengthening State Governments’ capacities on trade issues.
• Raising awareness and ensuring transparency on old and new
development and support schemes at the GP level
• Contingency funds for GPs to act swiftly in the time of need.
• Enhancing the authority of people’s representatives at GP
• Enhancing the capacities of local civil society and media on trade
and globalisation.
Thank You