Desalinating sea-water: A big bang reform for economic revival

The health-crisis occasioned nation-wide lockdown is yet to be lifted. However, one need not be a rocket-scientist to decipher that the Indian economy is in shambles and economic outlook for the entire financial year has already received a battering. The silver lining is that the event has shaken up fixated notions to an extent that nothing seems impossible. Translated in economic terms, the projects which earlier appeared impractical, in a role-reversal, can become the order of the day, especially bold and gigantic economic projects. This article implores on one such ultra-mega project which is capable of pioneering economic activity across a variety of sectors and simultaneously generating massive employment opportunities, equally for the white-collar and the blue-collar. Desalinate sea-water and supply it to the hinterlands. Neither from the look or sound of it this project appears to quench the quest for such big-bang reform. However, as is demonstrated here, the time for ripe for its implementation. 

There are international examples where huge regions survive solely on desalinated sea-water. In fact, countries like Kuwait, Israel, almost exclusively source potable water from the desalination process. The proliferation of this technology is also rampant across large regions, such as and Singapore, California, Perth, etc. A 2015 paper published in the MIT Technology Review made a compelling case to highlight that seawater desalination is perhaps the only futuristic response to the growing demand for potable water. Massive investment and economic costs are cited to reject forward movement in this direction. However, those very reasons which earlier worked for repelling the proposal, now make it an irresistible choice. 

It is a known fact that desalinating sea water to make it potable is an expensive proposition. This is exactly why this idea is worth doing in today’s economic paradigm as it, let’s call it the desalination project, shall entail huge investments by the Government in diverse sectors. Firstly, in solar energy front, by establishing floating solar panels across vast stretches of oceans to energise the desalination process. This will also mean consistent demand for electricity, and thus translate into economies-of-scale for this struggling industry. Secondly, massive demand build-up for cement, iron and steel and other infrastructure goods, needed for laying down huge pipelines across State frontiers for transporting treated sea-water. Such pipelines already exist for oil and natural gas, and thus there are precedents. Thirdly, linking the desalination project with the ongoing inter-linking of rivers will spur the demand across other related sectors. The scope of inter-linking process can be expanded by including within its ambit dredging of dried up distributaries, desilting the existing water-channels and provisioning smaller canals to ensure that the desalinated water reaches every local area.

The desalination project has massive potential to further integrate the topographical spread and reduce regional inequities. For example, treated water from the coast of Gujarat can be brought to drier States, such as Rajasthan, Haryana, Delhi and others in North India. Similarly treated water from West Bengal can be brought to parched areas in eastern states like Bihar, Jharkhand, etc. Desalinated water from Odisha would supplement the water requirement for MP and Jharkhand, etc. Furthermore, areas with acute water shortage within the coastal States, such as Maharashtra, Andhra, Karnataka, Tamil Nadu, etc. can be supplied water from the desalinated plant within their respective States. Calibrated through dedicated SPVs across different regions, working in tandem with municipalities and other local bodies, to finetune the supply network, an all-India level desalination project augers well with the flagship program of the Union Jal Shakti Ministry to provide clean drinking water till the last mile. 

Considering its sheer size, the desalination project will generate massive employment opportunities. Whether it be by collaborating in public-private partnership, or by the public health department in form of large-scale recruitment of engineers (across various streams), construction workers, besides wide-ranging allied occupation and fields, there will be an overwhelming demand for both skilled and unskilled manpower. 

A crucial challenge in the design would be ensuring that the desalination project is not rendered cyclic and instead operates perennially, across the year, though in suitable moderation tied up to the seasonal rains. One way to achieve this, which can also reduce the costs to some extent, is by feeding the seasonal rivers and canals with the pipelines, which will ultimately converge in the mainstream rivers. This will ensure that the traditional irrigation channels are not disturbed, while at the same time supplementing the water-flow in the rivers, thus addressing the vagaries of monsoon. At the cost of repetition, pursued alongside interlinking of rivers, the desalination project can be modelled in a fashion that dedicated water-hubs are created across the length and breadth of the country which will obviate water-related regional disparities.  

The desalination project is replete with positive after-effects. Perennial and assured water-supply will render moot the crop-failures linked to irrigation woes. In fact, this will permit multiple crop plantations across the year, thereby, also in a sense addressing the target of doubling farmer income. Arid regions and depleting green cover, would also be unwitting beneficiaries.  

Before embarking on such a project, however, it must be unfailing appreciated by the policy-makers that there cannot be any half-hearted attempts in such expeditions. At any rate massive projects like nation-wide desalination cannot be undertaken, not even in parts, by private players or even large corporations. This is so on account of huge investments which are required coupled with lack of immediate and attractive returns, which are necessary to excite private participation. This does not imply that the project should be entirely undertaken by the Government as part of its socio-welfare obligations. Instead, multiple avenues should be created to obtain benefit of private initiative and expertise by suitable revenue modelling of the various parts of the grand design. Nonetheless the Government will have to be the lead driver in this strive to push desalination. 

In the current economic paradigm, selection of alternatives towards economic revival must be made basis three crucial touchstone; (a) creating employment opportunities, (b) addressing inequities which have permeated this country; and (c) setting into motion a series of events which will have a domino effect so as to fast-track economic demand and supply. The simple yet massive desalination project is one such idea which not just overwhelms other alternatives on economic potential but is also a path-breaker in terms of socio-welfare programs. Once a dream, electrification of every village is already a reality. Successful implementation of desalination project translates into perpetual availability of clean drinking water for every household. Thus, in the short term the desalination project is an immediate boost to address the growing unemployment and arresting receding economic growth while in the long term, attaining another frontier on the welfare agenda. The existing MGNREGA schemes, CSR activities, NGO guidelines, etc. can be suitability tweaked so as to institute the desalination project within the national mainstream. For that matter, considering its wide-ranging benefits, this project can be modelled as a mission in itself with a catchy tune of Pradhan Mantri Samudra se Jal Yogna. It would perhaps also be an apt tribute to the Mahatma whose walk to desalination is a vivid national memory.

India ranked 115 in the Index of Economic Freedom !!!

Covering “162 countries across 10 specific freedoms such as trade freedom, business freedom, investment freedom, and property rights”, the Index of Economic Freedom from the Heritage Foundation ranks India at 115 on a list of the 162 countries surveyed. [click here for the full list] But then, does India really deserve to be this low? I can understand the argument that developed countries would surely be ranked above India but then when a whole lot of countries from amongst LDCs, Africa and Latin America are all ranked above India, which generates only an abysmal score of 54.2% in a list which is topped by Hong Kong with 90.3%, I really wonder that either there is a serious error in the calculation of these figures or that there is something really wrong with the way we act.

The ratings have been explained in the 422-page book titled similarly i.e. ‘2008 Index of Economic Freedom’ [click here to go to the downloading page for the full book] which seeks to not only illustrate the basis or rankings [for more, read the methodology adopted for the rankings] but also looks forward towards defining the future. Built in five plus one chapters namely; (1) Economic Fluidity: A Crucial Dimension of Economic Freedom; (2) Narrowing the Economic Gap in the 21st Century; (3) Globalization Is Making the World a Better Place; (4) Methodology: Measuring the 10 Economic Freedoms; (5) Economic Freedom in Five Regions; and (1) The Countries; the report in its last seeks to illustrate the views of its compilers in formulating the report and in the last accompanying chapter given an individually focused account of the reported countries. It is this last chapter that we are most interested in and particularly the view adopted in India, which has led to such a poor rating of 115.

In fact what struck me in sharp contrast to the optimism we breed in the country was the comment in the second paragraph itself was “India has no notably strong economic institutions, and the few areas that score better than the world average are limited government size, labor freedom, and property rights. Government expenditure is relatively low.”

The report summarizes the position of relative freedoms in India as under;

[click on the image to enlarge]

While the ‘freedom from corruption’ is understandably low, the low depth to which ‘financial freedom’ has been rated is really something which I really look with skepticism for the reason that has been assigned for the same is that “banks must lend to priority borrowers” and that “foreign ownership of banks and insurance companies is restricted”. Instead of being major influencers of financial freedom, I find the two reasons assigned as more of a western looking-down upon the way in which India has out-performed the major developed economies of the world given the fact (sic) that we have very restricted financial freedom. This really makes me wonder whether these reports are issued to encourage the countries to outperform each other by bringing positive changes in their system or to throw mud at ill-received countries. Just like saying on the face of it that we are ‘non-racists’ and ‘proud multicultural societies’ but then from inside really despising those not of the same colour or kind.

But digressions apart, I serious doubt the credibility of the rating especially in the light of more factors, few of them being our property rights, business freedom and trade freedom being assigned lower percentage points than labour freedom. Further, unlike the comment on the other countries, there is not a word of praise or appreciation of the country’s performance and all that is written is either negative or portrayed as being worst off in the world.

Nonetheless, as they say ‘when the sky falls, we shall catch lark’, similar is the rating which I would assign to this report. It is an exercise in retrospect and except for the other chapters of the book (some of which really look forward and relate the present to the future), I do not find any worthwhile use of the report either for potential investors or otherwise.

A big day for capitalism

If what is reported is true, then it is really a big day for capitalism. [Click here for the full report] It may be that he doesn't represent the stature which Marx occupied, but Joyti Basu is a big name in India. So when he says that Socialism has failed to bring in the benefits and has to give way to capitalism, it really carries a lot of weight.

The longest serving CM ever, Mr. Basu had retained and leveraged his position as a politician only by carrying forward the socialist pattern which now only find place in two states in India; West Bengal and Kerala. To quote the news piece;

"We want capital, both foreign and domestic. After all we are working in a capitalist system. Socialism is not possible now," he told reporters after a meeting of the party's state secretariat.

"We had spoken about building up a classless society, but that was a long time ago," he said.

Basu supported Bhattacharjee’s contention that industrialisaton in the state has to follow the capitalist course and wondered why this was being objected to by Left Front allies.

"Socialism is our political agenda and was mentioned in our party document, but capitalism will continue to be the compulsion for the future," said Basu.

This indeed has huge implications for the polity of the country as the Left has been an important heavy-weight in the Indian political diaspora with its influence at the centre growing with times. Mr. Basu is a respected Left leader and if he comes out in public in favour of captialism, which implies denunciation of socialist principles, then this Left faces a huge political and in-principle make-shift.

In any case, I agree with Mr. Basu's views. This state has been working on a pattern totally on reverse lines with the national economy's movement. At one time Kolkata (when it was Calcutta) was one of the major economic centres of India. But then the changing times and affluence of other areas have seen this city crumpling down in its share and positioning in the Indian markets and similarly the pattern has spread across the entire state.

The artificially maintained low cost of living and prices of goods has had the state to be cut off from the other parts of the country, which makes it unable to share the growth and success story of a rising nation. I am aware of the cultural and political thought prevailing in that part of India which makes such situation inevitable but then when this was the case with the other parts of India, the economy only grew with what is called as the Hindu growth rate of about 2-3%. But when the rest of India dispensed with its native and traditional practices in the economic segment, we have seen a massive rise and growth. This gives another reason for this socialist-front-dominated-state to adopt the change with the changing times. And when this cannot happen with socialism, it is required to be done away with.

I do not want to pick the incidents but then it seems irresistible to cite them in order to show the glaring lack of conformity in the professional cultures of this part of India with the rest. The lack of compassion for the entrepreneurs, the frequent lock outs and bandhs, the constant use of strike for all and sundry purposes, the state has seen it all and has suffered itself now. But then it is never too late to change and I believe things will change soon enough before more disadvantage is meted out to the inhabitants of this part.