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How Money Lenders And Criminals Prosper In Indian Floods

By: Ben Needles Home | Finance


Publicly announced estimates of the number of dead in the Bihar floods are in the 60-100 range; relief workers on the ground say that well over 900 villagers have been drowned in the ferocious waters of the Kosi River. But deaths apart, it is the living misery of the relief camps which is now shaping the future of 4 million people.

As government spokesmen in New Delhi and Patna (capital of Bihar) would lead you to believe, the Kosi River breached embankments in the vicinity of an old and badly-maintained dam in Nepal, and then unexpectedly changed course by as much 100 km. But, as recent and not-too-recent history shows, changing course or otherwise, the Kosi River has been flooding the plains of Bihar with striking regularity for the better part of the last century.

Furthermore, any credible fundamental economic analysis of Bihar will show that the periodic flood-related havoc caused by the Kosi, and other rivers originating in the high mountains of the Himalayas, have been the single biggest contributor to extreme poverty levels in the Bihar countryside. The current floods, for example, have destroyed virtually the entire standing crop in 14 districts; and, given that the Kosi carries with it coarse sand and gravel (as opposed to silt), millions of acres of agricultural land will be deemed barren for agricultural purposes many years into the future.

How then will the inhabitants of the relief camps ever be able to repay the high-interest loans being made to them today by unscrupulous money lenders? How then will flood victims ever be able to replenish their meagre resources of gold and silver jewellery, needed for the next family crisis, being sold at heavy discounts to predatory traders? How will fathers and mothers be able to locate young daughters being lured into the sex trade and young sons being turned into lowly paid domestic helpers in Delhi and Kolkata?

As the flood-to-poverty cycle unfolds before the eyes of a media which prefers to look elsewhere, the disaster itself is, once again, being blamed squarely on the general inability to control the melting glaciers around Mount Everest, and on the insufficiency or inadequacy of the Kosi's embankments in Nepal. The bitter truth is that the entire water management system in Bihar is hopelessly outdated. And, at least 60% of the funds earmarked for flood prevention upgrades (including the upgrading of assets beyond the northern border) in previous decades have ended up in the coffers of politicians and contractors in India, and in the hands of surrogates of the former monarchy in Nepal.

To worsen matters, the impoverishment and exploitation which the floods bring in their wake, is further consolidating the flow of capital resources (mainly cash surpluses) away from the agricultural hinterland, to banks and assets in the cities, and to wasteful expenditures by a new breed of urban rich. Finally, given the widely available flood prevention technologies available today, and given the huge infrastructure expenditures by national and state governments in India since the mid-1950s, it is important to note there is nothing natural about a flood or a famine, particularly from the perspective of the lasting social impact of such calamities. Death, starvation and misery are all direct consequences of political and economic failures.

In public announced estimates of the total of dead in the Bihar floods are in the 60-100 range; relief workers on the ground say that well over 900 villagers have been drowned in the ferocious amniotic fluid of the Kosi River. But deaths apart, it is the living misery of the relief camps which is now shaping the future of 4 million people.

As governance spokesmen in New Delhi and Patna (capital of Bihar) would lead you to believe, the Kosi River breached embankments in the vicinity of an old and badly-maintained dam in Nepal, and then unexpectedly changed course of instruction by as much 100 km. But, as late(a) and not-too-recent history shows, changing feed or otherwise, the Kosi River has been overflowing the plains of Bihar with hit regularity for the better part of the last century.

Furthermore, any believable rudimentary economic analysis of Bihar will show that the periodic flood-related havoc caused by the Kosi, and other rivers originating in the high mountains of the Himalayas, have been the single greatest contributor to extreme poverty levels in the Bihar countryside. The flow floods, for example, have destroyed virtually the entire standing crop in 14 districts; and, given that the Kosi carries with it earthy sand and gravel (as opposed to silt), millions of acres of farming(a) land will be deemed barren for agricultural purposes many years into the future.

How then will the inhabitants of the succor camps ever be able to repay the high-interest loans being made to them today by dishonest money lenders? How then will flood victims ever be able to replenish their meagerly resources of gold and atomic number 47 jewellery, needful for the next class crisis, being sold at heavy discounts to predatory traders? How will fathers and mothers be able to locate young daughters being lured into the sex trade and young sons being turned into lowly paid domestic helpers in Delhi and Kolkata?

As the flood-to-poverty cycle unfolds before the eyes of a media which prefers to look elsewhere, the disaster itself is, once again, being blamed squarely on the general inability to control the liquescent glaciers around Mount Everest, and on the insufficiency or inadequateness of the Kosi's embankments in Nepal. The bitter truth is that the total water management system in Bihar is dispiritedly outdated. And, at least 60% of the funds earmarked for flood bar upgrades (including the upgrading of assets on the far side the northerly border) in previous decades have ended up in the coffers of politicians and contractors in India, and in the hands of surrogates of the former monarchy in Nepal.

To worsen matters, the impoverishment and exploitation which the floods bring in their wake, is further consolidating the flow of capital resources (mainly cash surpluses) away from the farming(a) hinterland, to banks and assets in the cities, and to wasteful expenditures by a new breed of urban rich. Finally, given the widely uncommitted flood prevention technologies available today, and given the huge infrastructure expenditures by national and state governments in India since the mid-1950s, it is crucial to note there is aught natural about a flood or a famine, particularly from the perspective of the everlasting social bear on of such calamities. Death, starvation and wretchedness are all direct consequences of political and economic failures.

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About the Author:
About the Author (text)Rakesh Saxena is a pricing and risk analysis specialist in insurance and derivative products and has extensive deal making in the emerging economies. He can be reached at derivatives@shaw.ca. Home URL http://www.quoteplatform.com

LIVING WILL BLANK FORM.INFO

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