9. Fertilizers

Today the fertilizer subsidy is given to the manufacturers who use scarce fossil fuels to manufacture chemical fertilizers and who thus have no incentive to research and improve on the effectiveness of the end product. In fact, the more they sell of the same the more they benefit.

The artificial low cost of such fertilizers to the farmers also, encourages the farmers to over use the fertilizer, thus leading to pollution of all down-stream water sources and of the ground water aquifers. It also, discourages them from seeking better cultivation and soil conservation methodologies.

The subsidy if any, should be given directly to the farmer, on a per acre and type of crop basis, as suitable for the type of soil, to encourage more efficient usage of either the fossil fuel-based fertilizer or use of natural fertilizers as they each deem fit.

The fertilizer companies could be called upon to source their requirement of crude through direct imports paid from their export earnings as suggested above for fuel marketing companies. They could be encouraged to tie up with the farmers to not only improve the farming practices and guide them in the selection of crop, but to also, act as purchasers of the crop for both domestic distribution and exports.

10. Educational and Vocational Training

The Government should lay down standards for school education, higher education and vocational training and allow private parties to compete for the students. It should also, set up its own schools and institutions in collaboration with the local communities, to set bench marks and offer such services at a more economic level. Let the quality of the institutions or schools be measured by the students who compete to join them. A school’s voucher system and a liberal scholarship and education loan policy, will take care of the needs of the economically disadvantaged. (See “Education in the 21st Century”). The UN calculates human capital based on the Country’s population’s average years of schooling, the wages its workers can command and the number of years they can work before retiring. Then come, the Natural Capital and Manufacturing Capital. It is thus obvious that proper education and vocational training as appropriate is a value multiplier – an enabler.

Once again, such services should be encouraged by minimal taxation, if at all. Regulation should be more toward maintaining standards of physical resources/facilities, qualification of teachers and to ensure meeting of set educational standards and should involve parents and local authorities. It should also, be made mandatory for all Government employees and teachers to send their children only to the Government schools, to enforce the Authorities to maintain proper standards in them.

11. Medical Services and Health Insurance

These too are enablers though effective over a longer term, as they enhance productivity by reducing the down time caused by illnesses. Even such services utilized by the elderly can be deemed enablers as they then live longer and consume more and thus pay more consumption tax (GST). Here too, the Government should lay down standards and set up public institutions to set bench marks and offer services at a more economic level. Private institutions and community-based organizations should be encouraged to compete for the patients on the basis of services, facilities and costs. The costs of basic medicines, procedures and care should be standardized through bidding or negotiation or both. (See “Health Care for All”)

11. Water:

Other than that, used for purely domestic consumption, water is also, an enabler. Too many years of treating water as a free good has caused great damage to our rivers, lakes, coastal waters and the ground water aquifers. About 75 percent of our fresh water requirement is used by Agriculture, 18 percent by Industry and only about 7 percent in domestic consumption. Intensive and over use of fertilizers and pesticides and choice of water intensive cash crops and the flooding system for watering crops by farmers, and of chemicals and inefficient processes by Industry, have led to great damage to our environment and wasteful use of water which is a limited resource.

Water needs to be costed realistically to ensure proper usage. Again, competition with Public sector and other Private sector companies for processing and transporting water and allowing for off-take of water by all such companies, from various sources at fixed rates as appropriate for that source, will allow each category of customers to get water of the right specifications at the lowest realistic price and thus compel them to use the water conservatively.

In the auction procedure for water, done in a similar manner as for coal and spectrum above, the government should lay down the standards for potable water and water for other uses and fix a rate at say Rs. Y/Kl for each category. The rate for domestic consumption can be subsidized by an extra charge on the Industrial consumption.

Policies should be laid down and incentives, such as lower property taxes be offered to encourage rain water harvesting and storage in tanks in houses and even in check dams in fields.

Those that claim that they should be supplied water ‘free’, should be directed to go to such places as they can find and use water without affecting the other users and without allowing their wastes to ‘pollute the water’. To expect water to be collected, treated, transported and distributed, without paying for it equitably is not reasonable; it also, encourages unnecessary and wasteful use.

To those who predict water wars in the near future, one can only say;

“Trust technology to find an effective and economic way to meet future needs. Remembering that all human consumption is only a fraction of one percent of the water available on earth and new technologies of water desalination and treatment etc. are continuously becoming more effective and cheaper.”

It would be more effective and advantageous to have policies that encourage better and more efficient use of available water, especially in Agriculture, and encourage and incentivize research in effective desalination and other water collection technologies. (See – “Water Crisis – the Solution”).

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