Industry and Local Economy: Golden Fiber in Bengal

Jute is called as the Golden Fiber worldwide. It had a deep economic and trade relationship with India and specially with state of West Bengal. The river Ganges has provided immense opportunity to grow the jute industry along the banks in terms of water, transportation, soil, weather, cheap labour and other amenities. I am talking about this golden era of Jute Industry in the early 50s and 60s. It had grown to the level it could be.

But after the introduction of Plastics and rayon products, the jute industry and its products had been scrutinized as a new venture to invest money as well as further fresh investments. The analysis projected that plastic products are far better in terms of:
1. low production costs and thats why cheap
2. better longevity
3. easy to carry and use
4. fashionable and so on...

Jute Industry started to downpour its expansion and development in the late 80s and early 90s when Haldia Petrochemical was about to start. In addition, the famous Labour Union of West Bengal put more mobile to the path of this Golden Industry. It continued to decline and Govt. took no initiative to resist the paralysis process. At present there are almost 50 jute mills are either closed or about to close.

A Rough Calculation:
1. 1 jute mill has say 3000 workers on an average.
2. 50*3000=1,50,000 workers employed directly.
3. 4 persons in a family say.
4. livelihood of 6,00,000 people.
5. a jute mill is surrounded by a small market and lots of pop and mom stores.
6. Indirect employment of say another 1000 people.
7. livelihood of 50*601000=30050000 people
8. And the chain or the multiplier effect continues and it helps to grow the local economy as well as the economy of the state.

The Faults:
1. No or less initiatives on part of existing west bengal government to save the industry.
2. The focus was only on the Haldia.
3. Excessive spread of the labour union.
4. When the whole cake rises, the share rises automatically - couldn't able to understand this simple theory.

The History of Communism

The Book, Let History Judge has described the blood thirsty faces of the Communist nature in the then USSR. The book has explained concisely how the communist leaders made the country's prospect in a vacuum. Lots of people killed, the voices were relinquished, and the resource allocation were distributed so poorly that economic progress was nothing but a myth in the then USSR. The fact had been reflected in the post 90's era, that is after the collapse of the Soviet Union.

The Ruble value had fall to an extent that food crisis began at that time. Economic depression began at the end of the Soviet revolution (around 1990). The history of communism remains same through the world, from Russia to Cuba, from Chine to West Bengal (India). Could you imagine, no Philosopher, Economist, Chemist has emerged as an worldwide figure from USSR? As because, the state is the last word to say whether be it economical, political, or any social decision. China has recently modified their ruling team. They have understood the growing grudge among the general people within the country and offered the leadership to run the country to a rather younger generation. They don't really want another Tiananmen Square

Importance of BRIC

The cold war era has ended now. Its time to acquire the market worldwide. Merger and Acquisition has become a buzzword now. The big MNCs are trying hard to expand their operational territory moving beyond the few countries. They are desperate now. And the mother countries are backing them to expand. The masterminds understood the importance of the Power of the Market. The profit you can only reap from a big market only through maximizing sales as the margin of profit is quite low because of the high competition. So, big markets, large number of consumers are what required most.

Here lies the importance of Brazil, Russia, India and China (BRIC in short). Almost all the transnational companies are eying to those markets. A large number of middle class consumers, business environment (free trade zone), political stability, good spending power, knowledge driven economy, everything is there in these countries. So, the companies are interested to invest in these countries after the saturated US and European counterparts.

What I would like to point out is that, India’s position is now more Eco-political instead plain vegetarian politics.

Why this Blog is for?

India, from the ancient age remained a center point of discussion in the World Politics for its location, people, wealth, tradition and Kristi. It has become more prominent from the last 4 to 5 years as it has gained a momentum in the World Economy with respect to Investment, job opportunities, knowledge driven economy, political stability, democracy and so on.

But the politics inside the boundary couldn't be ignored at all. In fact, the more we have an internal stability, the more we can raise our voice to the International Platform to achieve our patents, successes, and economic freedom.

I will try to share the views about the different political stances worldwide as well as for the Home.