Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 21, 2007 erstellt
Description:
Given the slow growth of Indian agriculture in the recent past, this paper contends that increased provision for agricultural infrastructure is an essential prerequisite not only for inclusive growth but also for sustained growth of the Indian economy. Agricultural growth is essential as the associated reduction in the propensity to import food will imply that more earned incomes are ploughed back into the economy and subjected to the multiplier. Second, agricultural growth will have a positive effect on the current account deficit, a high level of which might lead to the nation incurring growth impeding debt. Third, such agricultural growth, which is powered by agricultural infrastructure investments financed by the export boom, will stimulate domestic demand for export oriented sectors. Thus, it will help the national economy to prepare for a future in which exports assume diminished importance as a driver of growth and complementarities between various sectors in the economy become much more important for growth. The paper submits that mere budgeting for agricultural infrastructure and associated essential public services is not enough. Government servants who get only a tiny proportion of total benefits from such services if they use the budget to provide these, often find embezzlement of funds to be a more lucrative or utility enhancing option. It is therefore necessary to link successful provision of the public service to security of tenure and viability of the provider. Contracts for government workers or outsourcing to the private sector might be the answer