The Effects of Economic Growth on Rural Communities
India's amazing economic growth is a topic on every summit and the expression foreign aid has long given way to the term foreing investment. By streamlining administrative procedures, installing an attractive legal framework for foreign investment and by furnishing the domestic industry with a basket of subsidies and incentives India's leaders have created great prospects and initiated a boost of the countries self esteem.
A highly skilled and motivated academic elite, a fast evolving and hard working middle class and inspired enterpreneurs have created this economic miracle within only a decade. The remarkable build up of infrastructure, knowhow and facilities attracts an ever increasing inflow of foreign capital on the lookout for global opportunities.
This sets the scene for much international credit and India appears as the new Americas as far as dreams, visions and possibilities are concerned. A fresh market that soaks up everything like a dry sponge and a potential market volume of several hundred million consumers really renders a fantastic scenery for any venture: The INDIAN DREAM is born...
However, such tremendous growth might possibly have a downside too and only in recent times this fact seems to have entered the public discussion.
The drawbacks of fast urban growth will eventually be eliminated by accomplishment or by proper planning. At present lots of funding is directed towards infrastructural development for mitigation.
In the rural areas the effects of economic growth are currently perceived as mainly positive: An elevation of standards, like the availability of electricity, communication facilities, private transportation etc.
But the impacts of this economic upsurge on the rural communities are just about to manifest and are mainly based on subtle changes in behavior and lifestyle patterns of the consumer masses – such changes will ultimately lead to a cataclysm of traditional values.
As an example it is getting popular amongst the urban population to buy agricultural products from the air-conditioned hypermarket rather than from the hawker as has been common practice. The high rentals and operational cost of such a modern outlet will certainly influence the price structure of the product and as a consequence the farmers will ultimately have to lower their production cost. The farmers with only a small plot of land will not be able generate sufficient income anymore and will have to give up, expand or diversify.
Behavioral change of the urban consumer can have a severe impact on a farmers life - and there are a multitude of such changes set in motion at present. In order to make this transition also for rural India a smooth, worthy and sustainable one it is imperative to monitor these subtle processes and to assist the rural communities in dealing with the ramifications.
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