GLOBAL FINANCIAL INSTITUTIONS

Global Financial Institutions – with special reference to Green Revolution

Dr. Pravinaben Pandya,

Banking and Economics Department.,

Dr. Subhsh Mahila Arts, Commerce and Home Science College, Junagadh. 362 001. Phone. (0285) 2670807
------------------------------------------------------------------------------------
It is the remarkable subject for study that the global situation adversely affects on Global Finance. Many economists suggest some important steps to remove some adverse effects. Among them, agriculture development, rural development, rural industrialization, rural marketing and agri-business developments are the main objects. So the green revolution is the significant factor for the same. The vast awareness of green revolution needs more and more money. So global finance is the main aspect and special role of global financial institutions is the remarkable aspect for researchers.
Many analysts widely perceived that Green Revolution was brought about largely to satisfy the needs of the corporate sectors of the industrialized countries who could rightly assess the enormous market potential of agro- chemicals particularly fertilizers and pesticides in the developing countries with fast rising population.
Global Financial Institutions:-
The agricultural policies along with many other polices were influenced right from the middle of the last century by the World Bank ( W.B.), International Market Fund ( I.M.F.) and similar Food and Agricultural Sector in particular.
The so-called green revolution with HYVs was eminently suitable for uptake of large quantities of inorganic fertilizers, but unlike the local cultivators. Because it is newly introduced once being less resistant to pests and diseases. It required large applications of chemicals pesticides. Besides imports, loans were granted for setting up fertilizer and pesticide factories with licenses from foreign manufacturers..
In fact, started from 1944 , for World Bank loans, the primary role of the bank had been to ensure the interest of the global corporate, so a s to enable them to capture the huge potential markets of the developing countries and the highest populated countries.
India would naturally based solely on imported inputs offered. A unique opportunity to have a tight grip on food and agriculture and all associated sectors is found with the help of global finance.
Policy of Global Finance:-
World Bank’s policy – oriented loans during the rise of green revolution covered financing of
· Irrigation project
· Seed corporations
· Fertilizer factories
· Pesticide factories…… etc. with licensing from appropriate MNCs
And so on. It includes more recent activites. Besides financial aspects, give it the role of a knowledge provider and funding for policy oriented research.
Conclusions of some studies:-
In India, there are 15 major studies have been undertaken during 2005 – 2008. It includes strategic issues
· For india’s water sector
· For Agricultural Marketing
· For value chain development.
All these studies objected for privatization. It had the named of “reforms” – which related or with off-repeated slogan of “Structural Reforms” of International Monetary Fund.

India and Global Finance:-
India’s corporate sector that represents one percent of the population, has a greater share of country’s income than 60% of the people who depend on farming, 77% of workers in the huge unorganized sectors earn less than 20 rupees per day. Data in 2008 show 400 wealthy persons of the country between them own wealth amount in to over 12.32 lakh crore in which 51 of them account for 31% of India’s GDP.
There is little doubt that reforms ushered in by the new world order of Liberalization, Globalization and particularly privatization has been great success in India.
World Bank and India:-
· A pertinent question has been raised in several quarter as to the need for World Bank Loans. World Bank’s lending to India in 2006- 2007 was worth US $ 3.8 billion ( on increase of 169% over the amount in the previous year) it is the highest lending by the bank to any country so far.
· In 2005 – 06 India paid a sum of Rs. 1487.3 crore as a interest to the bank. It is essential condition that one-fifth of the bank’s new soft loans are paid for repayments on past loans for this connection.
· The World Bank must keep on going soft loans to survive as its about dollar one billion yearly earning from accumulated capital is less than its administrative budge of over dollar 1.7 billion.
· The more recent trend of direct borrowings from World Bank by States with the permission from the centre should not be encouraged because of obvious reasons :
Reasons for not encouraging direct borrowings to States, By Central Government in India:-
(1) High yielding varieties (HYVs ) requiring high agro – inputs marginalizing locally adopted cultivators----
When HYVs were introduced in the country, there were in most cases location specific indigenous fully acclimatized cultivators with enough yielding potential to feed our population – which was half of what it is now. With adequate organic manures , green manures in particular, that could have boosted our productivity to sufficiently high level to feed the population. Unlike the present day commercially cultivated hybrids that require seed replacement for each sowing, the earlier HYVs were open – pollinated pure lines and mostly in the public domain, with an average seed replacement requirement of 3 or 4 years. Still there are skilled farmers in small pockets who are trying their level best to keep these varieties alive. The subsidy for the agro – inputs successfully tempted farmers to go for large scale adoption of the technology in the irrigated areas of the country. The pesticides applications in many such regions are somehow ushered in with the active support of the propesticide lobby and pesticide dealers.
(2) Technology Fatigue in Green Revolution :-
The so-called “Technology Fatigue” as an explanation of the decline of green revolution is an attempt to confuse the public on the issue – unfortunately, technology fatigue that happens in industrial technology has been equated with decline of soil fertility. Soil system and soil – water – plant relations that had been conveniently ignored by the proponents of technology fatigue. These are serious deliberate scientific lapses on the part of our agricultural research establishment.
Present Scenario of Organic Agriculture in the World and in India:-
The Foundation of Ecology and Agriculture ( SOEL ) Germany
The Research Institute of Organic Agriculture ( RIOL ), Switzerland.
International Federation of Organic Agriculture Movement ( IFOAM ).
These are the institutions which collected the world-wide information about organic farming. Ninenth edition in 2007 stated that organic agriculture under certifications being practiced in 120 countries of the world.
According to recent global survey compiled by Wilier and Ysseffi (2007 )--- area wise, Australia with 11,8 million ha. Under organic farming is the leading country followed by Argentina (3.1 million ha. ), China (2.3 million ha,) and USA ( 1.6 million ha.) , currently recording a noteworthy 30 % annual rise. In India, also, by September 2007, the total certified cultivated area under organic farming has gone up to 538171 hectors in 2006 – 07 with annual 100 % growth rate during the preceding two years.
Summary:-
The idea of second Green revolution to boost up productivity through signing of a bilateral agreement between India and USA in 2005 (known as Indian USA knowledge initiative in agriculture abbreviated as KIA ---- .The KIA would like to pave the way for further entry of US corporates in the agricultural trade and particularly a big share of India’s retail market. So World Bank and International Monetary Fund influenced right from the middle of last century to agricultural policies. Many researches starts to analyze the perfect position at world and India level. Most of analysists conclude that the global finance mostly satisfied industrialized countries’ corporate sector related with green revolution
References:-
A report of Rathindra Narayan Basu, Chairman, West Bengal State. Agri. Commission—Convocation address—17th April 2008.