Unlike the rest of the subcontinent, Assam retained many elements of its tribal economy well into the 19th century. With the British invasion the picture began to change gradually. Opening up of the Brahmaputra Valley in 1826 brought about two major changes in the mode of surplus extraction. One, colonial capital flowed into tea plantations, along with indentured labourers from mainland India. Though immensely profitable for the planters, this had a limited impact on the larger peasant economy of Assam.

The proposed legislation for regulation of the for-profit microfinance sector has a number of problems. It makes the Reserve Bank of India the sole regulator of the sector when this is the domain of the states rather than the central bank. The proposal will permit a back-door entry for the MFIs to collect savings which is not a healthy idea. Any proposal should be drawn on the experience of the states and the for-profit MFIs should be regulated as moneylenders.

This article examines the National Sample Survey Organisation unit record data pertaining to debt and investment (59th round) and highlights inequality in access to credit by certain segments of society. In particular, it shows that weaker sections such as female-headed households have a much lower access than their male counterpart even when they are involved in similar economic activities and consequently face significantly higher rates of interest.

Farmers’ suicides in Bundelkhand are a result of several years of neglect of the agricultural sector and industrial backwardness. Neither the Uttar Pradesh nor the Madhya Pradesh government has made efforts to address the basic issues of ecological degradation, agricultural modernisation and rural indebtedness.

It is the peasantry that cry loudly and piteously for relief, and our programme must deal with their present condition. Real reflief can only come by a great change in the land laws and the basis of the present system of land tenure. We have among us many big landowners, and we welcome them. But they must realise that the ownership of large estates by individuals, which is the outcome of a state resembling the old feudalism of Europe, is a rapidly disappearing phenomenon all over the world.

The article “Prospects and Policy Challenges in the Twelfth Plan” by Montek S Ahluwalia (EPW, 21 May 2011) offers a comprehensive overview of the subject, but what is missing is a discussion of the risks to the economy. An enumeration and discussion of the many risks that must be taken into account while framing the Twelfth Plan.

Y V Reddy’s central point is that while outlining a strategy for the Twelfth Plan, we must also focus on the risks that the economy may face and evolve a strategy to manage those risks. This is sage advice and a very useful input as we move towards finalising a workable strategy for the Twelfth Plan.