Ill.8.0.a The Parameters of a Resilient Community Ill.8.1.a Correlation of Potential & Trade ……………...……………….…….….….……73

Ill.8.0.aThe Parameters of a Resilient Community | Author

8.1 |

POTENTIAL & TRADE

Potential of a community is like the fuel that keeps the engine of trade running. Potential can either be determined by the profession or the occupation the community practices in common, or by the means by which they utilize the existing resources to their benefit. The community earns its profits when it gets an immediate market for sale. By the means of trade, these profits can be quantified by the respective producer.

For a local industry, the immediate market is supposed to be a neighboring urban centre, be it a Tier 1 metropolitan city, or a Tier 2 city. As discussed in earlier chapters [refer to Chapter 1.1.1], the existence of a sense of deprivation due to the manipulations by the means of consumerism, these urban centres negate their purpose of serving as a market to the local & small-scale industries.

As a medium of solution, a system of trade can be established in the rural context itself, that serves as a unit for both local production & local consumption. The internal trade system along with the monetary transactions, can also enrich the mutual cooperation of the communities for a balanced growth. The distinct potentials of these distinct communities can be interlinked by the means of this established trading system that acts as a node & epicentre of the circle.

The absence of an immediate market is eliminated by the addition of a new trading framework. Surplus of the production can find its market in the urban centres in order to add to the personal profits.

Ill.8.1.aCorrelation of Potential & Trade | Author

8.2 |

QUANTIFYING THE POLICY

A community on the basis of its potential comes up with a volume of its production. The quantity of production & its supply is the key to the economy of these communities.

The basic requirements of the household & the monetary amount put in for its consumption determines the profits earned through the trade of the production that is based on the potential of a community.

Considering in a community, [a] Number of households = a [b] Average amount spent on weekly consumption by 1 household = b [c] Average amount spent on weekly consumption by the community = a x b [d] Average amount spent on consumption by the community for a month = 4 x (a x b) *Considering 1 trip in every week [e] Average amount spent on weekly transportation by 1 household = t [f] Average amount spent on weekly transportation by the community = a x t [g] Average amount spent on transportation by the community for a month = 4 x (a x t) *Considering 1 trip in every week [h] Total average amount spent on consumption by the community for a month = 4 x a x (b + t) *From [d] & [g]

Assuming the general values of a = 50 nos. b = Rs.500 t = Rs.200 Substituting the values into [h],

[h] Total average amount spent on consumption by the community for a month = Rs.1,12,000 [j] Assuming the average amount of a man-day in 1 household = Rs.500 [k] Deficit amount of a man-day in a week in the community = 500 x a = 500 x 50 = Rs.25000 [l] Deficit amount of a man-day in a month in the community = 4 x 25000 = Rs.1,00,000 *Considering 1 trip in every week

[m] Sum total amount spent on consumption by the community for a month = [h] + [l] = 1,12,000 + 1,00,000 = Rs.2,12,000 *From [h] & [l]

[n] Average monthly amount earned by the community = e *on the basis of its potential [o] Average profit amount earned by the community = e - (2,12,000) *on the basis of its potential

Dependence of the rural contexts on the neighboring urban centres ideally should be a two-way process wherein the dependence is not just for consumption, but also for production & supply. Since these urban centres negate their purpose of serving as a market for the local & small-scale industries, the process becomes unilateral & the monetary funds flow majorly in one direction, that is away from the rural context. Comparatively, the return flow of these funds is at a slower rate.

As a whole, the total amount spent by the community becomes a huge deficit that can be utilized for community development programs. The quantification process indicates the monetary amount put in for consumption, that can be converted into a monetary fund for production purposes.