Tuesday, April 29, 2008
Government at Work - in India
Apparently, governments work (or don't work) the same all over the world...
Swaminathan S. Anklesaria Aitar reports in the Wall Street Journal - Asia:
"But the steady increase of yields ground to a halt by 2000. Government scientists failed to deliver new, more productive seeds for grains like rice and wheat – which the private sector tends not to research because farmers can reuse seeds crop after crop, thus cutting into demand for the private companies' products. The emphasis of the government's rural agricultural spending shifted from investment to subsidies, providing palliatives instead of increasing the production base.
Reliance on government also put agricultural policy at the mercy of politicians, with predictable results. For example, in many states, politicians offered to have the public sector pay for canal water, driving the cost down to almost zero. As a result, canal revenues are insufficient to maintain existing canal systems, which are deteriorating."
