ncs session 2
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NCS Session 2. The Language, Logic and Values of Cooperation versus Competition in the context of Sustainable Management. Amar KJR Nayak Professor of Strategy & NABARD Chair Professor, XIMB Coordinator, Centre for Development Research and Training. - PowerPoint PPT PresentationTRANSCRIPT
NCSSession 2
Amar KJR NayakProfessor of Strategy & NABARD Chair Professor, XIMB
Coordinator, Centre for Development Research and Training
The Language, Logic and Values of Cooperation versus Competition
in the context of Sustainable Management
The Context
Rural, Agricultural, People at the base of our current Financial Capital based Market Economy Pyramid
Rich
& large
Farmers Poor&
Vulnerable
farmers
Marginal & Small Producers
External Market & Intermediaries
Culture of Agriculture, Health, &
Education
Wea
ther
&
Clim
ate
External Inputs
Liberalization, Privatization & Globalization
Bio-diverse produce portfolioIntegrated Agriculture & Economies of Scope
A Systems View of our Globalizing World and base of our Society
Resource Inflow from the Governments to Community with Asymmetric Disadvantage & Holding Capacity
Conceptual &Theoretical Issues
Language, logic, value of Cooperation & Competitionin the light of
Sustainable Community Systems
Paradigm X Paradigm Y
Perfect Market
Competition
Perfect Community Cooperation
SYSTEMS VIEW OF THE CURRENT CHAOS
COMPETITION COOPERATION
COMMUNITY ENGAGEMENT AT GP LEVEL
INDIVIDUAL ENTREPRENEURSHIP
Paradigm X Paradigm Y
Market Based Competition
Parameters Sustainability through Cooperationamong members of a Community
Self/IndividualWelfare State as per state
regulationsPurpose
CommunityDirect participation for self &
community well being
Top-DownRivalry & Competition Approach
Bottom-upCommunitarian Spirit
EfficiencyMarket Economy
Firm view, Short termLogic
SustainabilitySocial Capital/System
Systems view, Long term
Efficiency, Rationality, Economic indicators; GDP, Income Vocabulary &
Indicators
Sustainability, empathy, altruism, Moral, Social, Sustainability indicators; depth of relationship, happiness, well
being
Private Property Rights, Contracts, Financial Capital
Tools & Techniques Common Property, Trust, Cooperation, Participation, Social Capital
Take and Accumulate for self (clan value) Values
Love and Sacrifice for others(universal values)
Language, Logic, & Values under the different Paradigms
Space (X1) Time (X2) Context (X3) Objective Function (X4) Value Base (X5)Efficiency • Point of
space
• Point of
Time
- • Neutral to Objective • Tight Control
• Output orientedEffectiveness • A body of
space (firm
or
individual)
• A frame
of time
• Closed
System
• Relatively
homogeneo
us
• With regard to objective of
the body or organization
• Tight Control
• Outcomes for specific
actor(s), institution(s), or
organization(s)
• Contract: Give and takeSustainability • Large
extent of
space with
many
stakeholder
s (spread
over an
ecosystem)
• Over a
longer
span of
time
• Open
system
• Natural /
diversified
• Relatively
heterogeneo
us
• To balance and optimize the
multiple objectives of
various entities of the
ecosystem
• Freedom with self control
• Strengthen the weakest in
the system
• Holistic (Inclusiveness, &
Integration)
• Humility, respect for others,
tolerance to heterogeneity,
& equality
• Norms: Give, service, love,
and sacrifice
Characteristics of Efficiency, Effectiveness & Sustainability
Source: Nayak, Amar KJR (2011), Efficiency, Effectiveness and Sustainability: The Basis of Competition and Cooperation, XIMB Sustainability Seminar Series, Working Paper 1.0, December 2011
Directions & Positions of Organization Design Variables in different Sectors/Industries
Technically not feasible Practically Unsustainable
Small Size Large
Multiple Scope Few
Low Technology High
Dispersed Ownership of Resources Concentrated
Simple Management Complex
Community Profit Purpose Financiers
Marginal Producer/Consumer Organization Design Variables Multinational/Global Enterprise
Space & Nuclear, Military, Hydro-electricity, Solar PowerAircraft, Information Technology, Automobiles, Heavy Industries
Agriculture, Retail, Food Processing, Insurance, Banking, Service Providers, etc
Source: Nayak, Amar KJR (2010), Optimizing Asymmetries for Sustainability: A Prism for Agriculture & Rural Development in India, DEAR, NABARD Seminar, Mumbai & XIMB Sustainability Seminar Series 1.0, Dec 2009
Technology Intensive Approach Agricultural Technology Integrated Low Cost AgricultureExternal Input Technology
GM Seeds Seed Local SeedsInorganic Fertilizers Plant Nutrition Organic manure, plant biomassInorganic pesticides Plant Protection Organic pesticidesMore Water Water Less Water Biologically poor soil Soil Biologically rich soil
Process TechnologyMono-crop for commercial purpose Cropping Pattern Multiple and diverse cropping to leverage seasonality for
better food and nutrition security, & better soil health
Specialized mono-crop cultivation with little integration with other farm production
Level of Farm Integration High degree of integration of farm crops with horticulture, agro-forestry, and livestock to leverage higher economies of scope in nature
Regular tilling with Tractor, power tiller, etc Land preparation methods Lesser Tilling for minimal soil disturbance
High Water intensity methods using Canal Irrigation, Deep Bore wells
Water management methods In-situ water conservation methods
High degree of weed management Weed management methods Little weed management through mulching & mechanical weeding
High technology equipments like Combined harvester, etc
Harvesting methods Generally, simpler technologies because of smaller farm size
Highly mechanized post harvest management Post harvest technologies Simpler post harvest techniques
Large scale, technology intensive machinery Processing technologies Simple decentralized processing system
Large scale storage and transportation Storage & transportation methods Smaller storage facilities with minimal transportation
Organizational ProcessTraditional Industrial Organization Design Organizational Design Sustainable Community Organization Design
Centralized, Hierarchical, highly qualified external managers
Management Process Decentralized, simple, local rural youth as managers
Market boundary for products is unlimited and aimed at global commodity markets
Market Space Direct marketing limited to a radius of 350 KM from production location.
Paradigms of Agricultural Technology
Source: Nayak, Amar KJR (2012), Integrated Low Cost Agriculture for Internal Consistency and External Synergy for Sustainability of Smallholder Farmers: Case of Nava Jyoti Agricultural Community, International Conference on GM Food in India, Hotel Marriot, Hyderabad, September 27, 2012.
Approaches Competitive & Market Economy System Cooperative & Social Economy System
1. Orientation Agricultural Research driven by the global players/agents
Top down approach
Agricultural Research to be driven by the Small holder Farmer/Producers requirements
Bottom up approach
2. Governance Principles Centralization National, Regional, Global level outputs
Decentralization Small producer family & Community/Cluster level
outputs
3. Management Methods Capacity Building of Institutions at the national, regional & global level
Investment Decisions driven by the needs of the global/national systems
Partnerships of scientists, organizations, institutions based on familiarity with global/national System
Large & hierarchical Organizations
Capacity Building of small farmers, farmer groups, local institutions/NGOs working with farmer communities
Investment Decisions to be determined by the small holder farmer/producer needs and priorities
Partnerships among farmers, local communities, institutions working with the farmer communities
Optimally sized community based farmer/producer organizations to facilitate small producers in market
4. Research/Innovation Methods
Research/Innovation is reductionist High specialization: Breeding Varieties Agricultural Scientists governed by technological
path dependency rather than usefulness of research to small farmers
Knowledge systems largely based on laboratory and research station experiments
Scaling Up
Research/Innovation is holistic and integrated Integrated Low Cost Agriculture to be the focus of
research Research to be practical & applicable to small
farmer’s context Knowledge systems that are based on action
research in the farmer’s field conditions & situation Replication
5. Indicators/Measurement Units
Food Security at global level Nutritional security at global level Development of national and international
commodity markets Scale & commoditization NPK in soil Central tendencies GDP, Income, Production, Productivity, etc
Food & Nutritional Security through small producer & local communities
Nutritional Security for small producer & local communities
Development of local markets closer to farming communities
Scope or Diversity Carbon content in soil Central tendencies with focus on variances Net Income of small holder farmers/producers
Approaches & Policies under different in Paradigms of Competition & Cooperation
Paradigm X Paradigm Y Paradigm X (In Transition)
Imperfect Market
CompetitionPrimitive
Community Cooperation
Advanced Community Cooperation
TRANSITION STRATEGY RESEARCH IN XIMB
Working Definition of Sustainability: Sustainability is a dynamic state of deep relationships among the people and all the constituents both living and non living within a micro ecological unit that strongly values the acts of sacrifice and love for each other; where the priority is to strengthen the weak and where the spirit of high external cooperation and high internal competition not only drives its own ecological unit to eternal peace, joy and happiness but also inspires other micro ecological units for such deeper inter relationships.
Basic Unit: The micro ecological unit of the global ecosystem is the basic unit; which could consist of a micro watershed, a village, cluster of villages or a cluster of habitations.
Logic: If the basic unit of an ecosystem is healthy; the whole ecosystem shall be healthy. As every micro ecological unit will have its
own characteristics, solutions and approaches that are context specific and not general in nature shall be the approach that can lead to overall sustainability.
Focal Point: Within the micro ecological unit, the priority is always to strengthen the weakest person or family within the micro
ecological unit. Logic: The logic of the systems theory that is the strength of a chain is the strength of the weakest link is applicable. Further, it is
also strategic to stabilize the most volatile actor, the human actor within a given ecosystem to ascertain peace and harmony in the ecosystem.
Holistic: Convergence and integration of different internal perspectives and external perspectives at the micro ecological unit. The
internal perspectives include philosophical-moral-behavioral perspectives. The external perspectives include political-policy-legal perspectives, technological-innovation perspective, and organizational-Institutional-systems perspectives.
Logic: Convergence and integration of multiple perspectives brings out several complexities and frictions if we were to negotiate
them in a larger ecosystem or at the national or global level. However, at a level of micro-ecological unit, convergence and integration of these perspectives are feasible; a process that could be synthesized at the subsequent levels.
Value Base: The acts of love and sacrifice for the others in the micro ecological unit is the basis for strong bonding and inter
personal relationships with deep trust and cooperation among each other. Logic: The acts of love and sacrifice for the others have the power to heal the pain, remove the tensions of integration, simplify the
complexities of convergence and integration, and complete the incompleteness in human rationality. The synergies arising out of the acts of love and sacrifice can yield eternal growth and development within a micro ecological unit. When the same value base drives the other micro ecological units, the global ecosystem can become sustainable.
Category I: Social Economy Category II: Industrial Economy
Dignity Identity of self Self Respect Hard Working individuals Faith Trust Love other Cooperation Identity of community Giving Back Sacrifice Social Capital Kulo Panchayats 73rd and 74th Amendment Decentralization Duties of a citizen Appropriate Technology Traditional Seeds Bunding and Stone Walling Well Being Multi Cropping Local Market
Rights Based perspective BPL Card Respect of Government Laws Welfare State, Subsidy, Entitlements Greed Contract Self love Competition National Identity Taking away (return on investment) Accumulate Financial Capital, MGNREGS/NRLM GP / Government Machinery Central Government Centralized Rights of Citizenship High end Technology Hybrid & GM Seeds Large Check Dams GDP Mono Cropping/specialized farming Far away domestic/Export Markets
Table 5: Terminologies & Parameters of Different Paradigms
NCSSession 7
Amar KJR NayakProfessor of Strategy & NABARD Chair Professor, XIMB
Coordinator, Centre for Development Research and Training
Implementing Sustainable Community Systems
Action Research & Demonstration to Recreate Sustainable Community Systems
Supported byRabo Bank Foundation, NABARD, SFAC, XIMB
Rich
& large
Farmers Poor&
Vulnerable
farmers
Marginal & Small Producers
External Market & Intermediaries
Culture of Agriculture
Wea
lth &
Cl
imat
e
External Inputs
Liberalization, Privatization & Globalization
Bio-diverse produce portfolioIntegrated Agriculture & Economies of Scope
Local Producer Owned & Managed Community Enterprise System
Adopt Sustainable Agricultural Management Practices with NRM
Integrate Activities for the producer across 365 days & Converge Resources
for Community Health & Education
Mobilize Community to build Trust and Cooperation among Members and
People in the Cluster
Provide Emergency & Production Credit and Support Village Retail Outlets
Sell surplus produce, undertake Value Addition & Marketing
Family
Village
Cluster (GP)
Ecology
CES
Ope
rate
d by
Tra
ined
Coo
rdin
ator
s, &
Fac
ilita
tors
fr
om th
e Lo
cal C
omm
unity
Reso
urce
Con
verg
ence
from
the
Gove
rnm
ent,
Dist
rict
Adm
in &
Lin
e De
pt. o
f the
Gov
ernm
ent w
ith te
chni
cal &
m
anag
eria
l sup
port
from
Aca
dem
ic In
stitu
tions
, &
Inte
rnati
onal
Bod
ies
Com
mun
ity E
nter
pris
e Sy
stem
(CES
)
Loca
l & U
rban
Mar
kets
(3
00-5
00 K
M fr
om C
ES)
Exte
rnal
Inst
itutio
nal C
ham
pion
s
Net Income
Optimal Size
Leverage Scope
Appropriate Technology
Ownership and internal Resource Generation
Governance & Management by Producers/Farmers
Design Variables of CES
Design Variables and Structure for Sustainable Community System
Community/Cluster (5000 people)
Marketing, Coordinator
Professional Support Board of Internal
Facilitators / Directors of CES
External Facilitators: Professors & Development Experts from XIMB-CENDERET, VRO
600 Members (3000 people)
Principal Coordinator(Community Champion)
Accounts & Systems, Coordinator
Integrated Agriculture, Coordinator
Community Mobilization,Coordinator
Local Interns (1)Local Interns (1)Local Interns (2) Executives at GP, Block, District Level (6)
Village Volunteers (One Female & One Male)
Post Harvest & Value Addition, Coordinator
Local Interns (1)
Education & Health,Coordinator
Local Interns (1)
Organizational Structure of CES
External Facilitators: Experts from our Development Partners & Local Champions