There is an urgent need for structured financial mechanisms to curb the tribal community's reliance on unregulated and predatory lending practices
Indigenous populations worldwide are highly sensitive to climatic shifts, mainly due to their prominent dependence on natural resources and environment for livelihood. The tribal communities predominantly rely on agriculture and forest resources for both their economic needs and socio-cultural practices. Amidst the uncertainties surrounding agricultural outputs and forest resource availability due to climate change, they have to move into newer economic territories, each with its set of transactional risks. They have no option but to navigate their economic activities through a blend of both formal and informal institutional mechanisms while their transactional risks are continuously aggravated by environmental as well as policy-induced changes.
The global scenario indicates that for native tribes like the Navajo and Hopi, the climate change impacts have disrupted their traditional farming cycles, increased their economic vulnerabilities, and pushed them towards alternative livelihoods and financial transactions. For aboriginals in Australia, with land and sea integral to their culture and economy, rising sea levels and temperature fluctuations are creating problems altering their fishing and hunting patterns, thereby affecting their traditional barter systems and pushing them into unknown domains of mainstream economic structures. The indigenous communities in the Amazon basin dependent on the forest and river ecosystems face threats from unpredictable rainfall and deforestation which not only impact their daily sustenance but also introduce new financial transactions as they seek alternative income sources. The increasing occurrences of natural disasters and expanse as well as the severity of wildfires coupled with the devastation of biodiversity and ecosystems are affecting the lives and livelihoods of all including the global economy.
The tribal communities of northeast India are grappling with changing monsoon patterns altering their cultivation patterns and age-old economic transactions pushing them towards newer financial systems. In Andhra Pradesh and Telangana, irregular rainfall patterns are disturbing the agricultural cycles, thereby influencing their economic choices and behaviours. In central India too the tribal economy, characterized by its reliance on agriculture and forestry resources, is experiencing exacerbated vulnerabilities in terms of transactional risks due to climate change. A study by the authors including concerned specialists into transactional risks and adaptive strategies of indigenous communities of selected districts of Odisha, Jharkhand and Maharashtra states of India has resulted in significant learnings and lessons.
The attempt at examining a century's worth of temperature and rainfall data to discern climate change's fingerprints and its potential effects uncovered significant shifts. Although monthly temperatures, when averaged over 100 years, seemed consistent; there was a pronounced increase of 0.5 to 1 degree Celsius in November and December temperatures across all studied districts. Furthermore, a detailed assessment indicated altered rainfall patterns in most districts, particularly during October and November, which experienced heightened precipitation.
The study utilized thirteen distinct parameters to delve into the intricate relationship between economic dynamics and transactional behaviours, potentially influenced by climate change. Notably, the three states showcased a diverse array of variations, illuminating both the different levels of developmental strategies in place and the unique socio-economic conditions of the tribal communities there.
Banks for savings and credit facilities are more prominently utilized in Odisha and Maharashtra than in Jharkhand. Over time, the dependence on money lenders has decreased in all three states. However, their presence remains significant in Odisha and Jharkhand, unlike Maharashtra where Cooperative Banks are a favoured go-to for credit requirements. A significant portion of the respondents across these states engage in agriculture and daily wage labour. Vegetable cultivation, as supplementary to Rabi and Kharif crops, is notably lesser in Odisha compared to Maharashtra and Jharkhand, indicating weaker development in the concerned sectors. Odisha's agricultural challenges stem from fluctuating temperatures, erratic rainfall, insufficient governmental aid, and issues in post-harvest and irrigation.
Maharashtra's primary agricultural concerns are financial, accompanied by unpredictable rainfall and prominently stated inadequate technological guidance and government assistance. Jharkhand's agriculture faces hardships primarily due to climatic variations, pest control, post-harvest challenges, and irrigation deficits. A common sentiment across the states revolves around increasing temperatures; dwindling water, forest, and agricultural resources; and shifting rainfall patterns. Despite feeling the effects, many respondents don't attribute these changes to the broader concept of climate change, often dismissing them as mere weather anomalies. This lack of awareness is compounded by the absence of effective coping strategies, with many resorting to short-term solutions like decreasing consumption, selling assets, taking loans, or using up savings.
The study brought out the need for strategies that enhance agricultural yields with duly addressed regional differences and the synergy of farming techniques with particular environmental and societal conditions. There's a call for the revival of native crop types, safeguarding germplasm biodiversity, and the promotion of crops that can withstand climate-induced challenges. Advocacy for traditional methods such as diverse cropping systems, crop rotation, organic fertilization, and the cultivation of reliable seed varieties that can weather climate change is evident. With site-quality dependent poor agricultural productivity areas recognized under forest right of cultivation under the Forest Rights Act 2006, the importance of advanced studies aimed at boosting yields in such historically marginalized areas through agro-forestry, medicinal plants cultivation, and integrated farming approaches to bolster resilience against climate change becomes a priority. Simultaneously, proper execution of the Panchayat (Extension to Scheduled Areas) Act 1996 and the Forest Rights Act 2006 in the scheduled and earmarked areas needs to be underscored, emphasizing the balance between conservation responsibilities and the resource rights of the people.
There is an urgent need for structured financial mechanisms to curb the tribal community's reliance on unregulated and potentially predatory lending practices that trap them in debt cycles. It requires an in-depth exploration of the tribal community's transactional behaviours to help banks and insurers in devising tailored financial solutions. Although state-specific variations are found to exist, states need to collaborate to share best practices, resources, and technological know-how to assist indigenous communities tackle the challenges of climate change. Collaborative effort amongst governmental agencies, communities, and civil societies to address gaps in technology and knowledge in related sectors; institutionalization of robust awareness campaigns; public education; and streamlined agricultural advisory services to guide local communities equipping them with appropriate tools to help navigate both financial and market-driven challenges efficiently perhaps have no alternative.
Leveraging community solidarity and collaboration is needed to strengthen the overall approach, drawing upon the deeply rooted values of unity and support inherent in tribal traditions. A special purpose vehicle needs to be created to identify specific measures to foster the sustainable growth of the tribal economy based on natural resources while merging traditional knowledge with modern technological advancements, enhancement of climate-aware governance, and empowerment of tribal communities with effective transactional behaviour risk averting strategies for both adaptation and resilience.
(The writers are Former Principal Chief Conservators of Forests, UP and Maharashtra)
