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Rural debt is an old continuing tragedy. The English left us the most impoverished peasantry in Asia. This is the real English legacy. The control of rural agriculture by merchants and moneylenders, and the failure to modernize agriculture and set up industry, is because the rural home market is captured by foreign multinationals (like Unilever) and banks, going to the very root of our economic underdevelopment.
There’s both a rural labor surplus and a high cost of rural labor, raising food prices. How is this possible? This is because the cycle of rice cultivation sometimes requires large numbers of workers and sometimes not. This could be resolved by providing high-skilled industrial work to agricultural workers during their off-season. Setting up industry requires a strong rural economy. Yet most of the rice produced by small cultivators is consumed by them. Harvests are promised in advance for industrial goods lent by merchants and or paid for by moneylenders. This leads to a lack of rural monetization and commercialization necessary to create a rural market for industrialization.
NGOs highlighting microfinance debt on behalf of those who borrow are helping to hide this and several other big secrets. They will not divulge that people are actually borrowing from EU and US banks! These EU and US banks are behind the microfinance companies. These microfinance companies lend for people to buy or lease imported machinery and goods etc. Rural people are borrowing to buy EU and US goods! These borrowers also work (as in the garment fraud) for companies exporting goods and services to the EU and US. Goods and services made with expensive EU and US inputs. So who are these EU and US lenders? (see below)