FAB is a fabulous idea indeed !
The Economist , the well-known weekly magazine published from London, has a report on a novel idea put forward by Bhagwan Chowdhry, Finance Professor at the University of California, Los Angeles. The professor has proposed that every child born in the world should have a bank account at birth with an amount of $100. It is called FAB ( FinancialAccess@Birth). The amount would not be touched until the child attains the age of 16. This would encourage parents to register the birth of their children. The government or charities could transfer monetary help to the child's account for education and health. This simple idea has the potential to empower the poor children in the world.
It is a fabulous idea indeed! It is an idea for which the time has come as other avenues of help have been usurped by the middle-men. The idea has already received support from prominent people like Peter Singer, a well-known philosopher, and Vijay Mahajan, an Indian social entrepreneur.
The rich countries such as Britain, Canada and South Korea have introduced this, says Chowdhry. He expects 35 million rich children would not avail this facility and the 100 million babies born each year could be covered with one-fiftieth of one percent of GDP amounting to $10 billion annually.
India can pioneer and promote this idea with its UID programme being implemented by the central government. If there is anything that can empower the poor people apart from education and health, it is the access to financial resources (capital and credit). The Tendulkar Committee report has highlighted the fact that one-third of our country's people are still poor and even the recent Economic Survey of the central government is concerned with the last 20 percent of the people in the country. The economic development of the last 60 years through the socialist paternalism and individualistic liberalization has not made much difference to the poor. They are still waiting for their economic freedom. Mahatma Gandhi's statement that India lives in its villages hold good even today as two-thirds of our people still live in villages and almost sixty percent depend on agriculture.
Since the economic progress has not percolated to them we have to reverse the development model from top down to bottom up – progress through empowerment of villages with education and health. If the state can provide primary health-care, primary, secondary and vocational education and an access to credit to the poor, India should be able to abolish poverty in the next 10 years. It may even unleash innovation and enterprise in the country in a large scale.
Dr.Anil K.Gupta's Indian Innovation Foundation has some 12,000 innovations in its Honey Bee database made mostly by our poor and illiterate people. They are all self-taught mechanics and entrepreneurs. They were the pioneers of 'reverse engineering' for which India is famous. Sabastian Joseph who is a school drop-out developed the high-yield cardamom variety in Idukki in Kerala. Amruthbhai Agrawat of Junagadh in Gujarat invented a multi-purpose tool bar, a wheat planting box and a peanut digger. He also devised a pulley with a ratchet for village wells and bullock cart with a tilting bed. There are many more in the database. After all necessity is the mother of invention. Their inventions are made from scrap as they do not have access to sophisticated machinery and equipment. They are not scaled-up and commercialized. They are poor and illiterate because our state has not provided them access to education and credit, the means to improve their social and economic status.
Poor in India do not need any charity. They need the tools to improve their lives
Ever since I heard in Saudi Arabia, where I was working for a couple of years in the early 'eighties, that all graduates were entitled to get 50,000 riyals to start their life, I fancied we in India should have a similar facility. It could be Rs.5000 at birth as now suggested by Chowdhry or an amount of Rs.25,000 to each child when he/she reaches the age of 16/18 to start his/her life after the graduation or vocational education irrespective of gender. He/she should be eligible for an additional loan at a low rate of interest if he/she has a feasible idea..
This amount could be used to improve whatever occupation the person has inherited or an occupation the person has learnt. It could be even used to build a house or repair a house as it would create employment in the village. It could be used to purchase the latest tools of his occupation.
To make such a scheme successful, the state has to make primary, secondary and vocational education free. Since most of the people still depend on agriculture, a school or a course in modern agricultural practices including the selection of seeds, fertilizer, testing of soil, cultivation of cereals/ vegetables/ fruits, drip irrigation, rainwater harvesting, agro-processing, dairy and poultry farming should be made available in every taluk of the country at a small fee, if not free of charge in the local language.
Indian agricultural productivity is poor compared to the world average. An educated farmer could increase agricultural yield and bring prosperity to his family and the country. Mobile phone revolution has made it possible for him to know the price of his produce in the cities in his state and sell it to the highest bidder. India has the potential to be the granary of the world. Of course, there should be a guiding body, a rural bank with the knowledge about the resources of the region and how it could be used to create wealth through enterprise or though the joint effort of a co-operative. In addition to that, a monitoring body, an NGO, to prevent misuse.
All these years, we have made our people depend on government doles in the form of subsidies - free electricity, subsidized rice/wheat, low-priced LPG etc. Most of these have benefitted the well-off rather than the poor. Even the latest flagship schemes suffer with the problem of leakages. For example, a report in the Times of India (2/10/09) states " A government investigation into the working of scheme ( the National Rural Employment Guarantee Scheme) with an annual budget of Rs.40,000 crore has revealed the siphoning-off of a whopping 40% of the allocation and woefully inadequate implementation of the scheme in districts where it is needed most." Money now misused can be easily diverted to empower every child and every person in the villages..
Poor should be helped to be productive, and be the proud citizens of India who can stand on their own legs. They should be empowered with education, a vocation and resources to be their masters of destiny. It is better to teach fishing than give fish.
April, 7, 2010.
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