Plain tale from the hills

Kausani, deep in the Kumaon. Ahead, moonlit Trishul, the trident peak. Below, the vast spread of lights from the eighth century town of Bai...

Kausani, deep in the Kumaon. Ahead, moonlit Trishul, the trident peak. Below, the vast spread of lights from the eighth century town of Baijnath. Denver, Colorado, would find an unbeatable rival if Baijnath develops8217;.

Sat under an apple tree amidst tea bushes and read Urban World/Global City by David Clark. Two conclusions struck home. First, that 50 per cent of the world is urban, the rest is catching up. Second, where markets are underdeveloped the primary city grows at the expense of its surrounds.

Delhi is the primary city of the Kumaon. I recall the journey. Ghaziabad, Hapur, Gajraula, Moradabad and Haldwani in the plains. In the hills Bhowali, Almora and Bageshwar. All towns inadequately linked to their primary city. Each a flourishing centre of commerce amidst urban squalor. While they are self-destructing, Delhi is swelling to unimaginable proportions. The reasons: inadequate investments in transportation and a predominantly rural orientation of the administration. Urban areas are neglected. Fatal vision.

Observed the economics of prosperity at work. It begins with traders in markets in towns. Looked through the shops: cloth, brassware, bronze, groceries, toiletries all from the plains. The lesson: it matters little to local prosperity where goods are manufactured. As long as they are bought and sold, prosperity ensues. Bought a Japanese photo film. The shopkeeper made some money. Could have bought camping and trekking equipment, fishing gear, central heating systems, or motorized mountain ploughs if free trade was allowed. All-round gain would automatically ensue. Have collaborator, will manufacture does not yield prosperity. Have shop, will sell does.Visited Baijnath and saw its ancient rock temples. How did such a remote place raise the money? In the old market, the ayurved gave the answer. Baijnath was an important centre of trade with Tibet. Caravans of sheep would come over the high passes carrying wool, shilajit and suhagaa. The Tibetans would go back with gold, but the traders of Baijnath would gain as they sold these commodities to second-rung traders in Bageshwar, the next link in the chain. Can import and currency restrictions yield prosperity?The lesson: first focus on the urban areas. There must be thousands of them. Link them up well, creating hubs and spokes that work. Invest in urban infrastructure. Set up town planning systems. Leave the rest to the market.For the dissenter, a trip to Loharkhet, first stop on the way to the Pindari glacier. The road has not yet reached Loharkhet, but its PWD bungalow is dated 1962! The nearest market is Kapkot, 10 km away. The nearest town is Bageshwar, 25 km downriver from Kapkot. Loharkhet has only one shop: Mohan Tea Stall. Tea is made on a gas stove. Empty cylinders have to be carried to the roadhead and then jeeped to Bageshwar. It can cost Rs 300 a cylinder. Fifty per cent of the 85 households use gas. They have electricity. The telephone, like the road, is yet to arrive. The post comes daily.

This is a subsistence economy. You eat what your land and animals give you. You want fish, hit the river. How can development occur here?

The State, on its part, has made certain investments. There is a school whose teachers reputedly spend most of their time petitioning for a transfer. A migrant Bengali priest has set up a private school which charges Rs 50 per month. Locals are proud that their kids speak English. There is a health centre run by a compounder whose advice is not trusted. There are godowns where subsidised rice and sugar are stored. Old age pensions are distributed. When the subject is discussed threadbare, all agree that the road should have been the first priority. The rest they don8217;t really need.There is misery and squalor in a great and ancient civilisation only because its polices are based on false economics, political science and public administration the trishul of development. Roads are a public good. But public money is being diverted from an essential public good to service rural schemes, PSUs and wasteful subsidies. Indirect taxes the bulk of revenue are maximally collected in the markets of towns which lie neglected and are denied the right to trade freely in whatever the market may demand. Hence, poverty.