GREEN BUSINESS TERM PAPER

2009

ECO-FRIENDLY

SUSTAINABLE

DEVELOPMENT IN THE

ANDAMAN AND

NICOBAR ISLANDS

An Analysis of Policy and

Development Strategies

By Deepika Daimary, Rutli Mohanty, Yash Mahendra

Table of Contents

I. INTRODUCTION ..................................................................................................................... 3

i. Tribes of Andaman and Nicobar Islands ................................................................................. 3

ii. Economic Opportunities ......................................................................................................... 4

iii. Challenges to Development ................................................................................................ 4

iv. Four Pillars of development in ANI .................................................................................... 5

II. HISTORY OF DEVELOPMENT IN ANDAMAN & NICOBAR ISLANDS ............................. 5

III. THE EVOLUTION OF FOREST POLICY IN INDIA ........................................................... 7

IV. SUCCESSFUL DEVELOPMENT MODELS TO ENSURE ECO-FRIENDLY

SUSTAINABLE DEVELOPMENT EMPLOYED IN OTHER PARTS OF INDIA ........................... 8

i. Eco-Tourism: The Periyar Eco-Tourism Model .......................................................................... 8

ii. Co-Operative Models: .............................................................................................................. 10

iii. Natural solutions by Tribal Societies: The Jeypore tribe in Orissa ......................................... 11

V. HOW THESE DEVELOPMENT MODELS CAN BE APPLIED TO ANDAMAN & NICOBAR

ISLANDS ....................................................................................................................................... 12

i. The Ecotourism Model in ANI: ................................................................................................ 12

ii. Sustainable Co-operative Model in ANI: .................................................................................. 14

iii. Tribal Societies model applied to ANI:................................................................................. 15

I. INTRODUCTION

Andaman and Nicobar Islands (ANI) is a constellation of Indian islands situated in the Bay of

Bengal. It is an agglomeration of 349 islands out of which 38 have human habitation. The

Union Territory is home to rich biodiversity in the form of endemic flora and fauna. It is also

native to several tribes of Negroid and Mongoloid origins, some of which are on the verge of

extinction.

The development challenge that the island faces concerns the achievement of two intertwined

objectives.

• The sustenance of biodiversity in the islands

• The survival and emancipation of native tribes

In this paper, we aim to achieve the following goals.

• Analysis of how this development challenge has been addressed by the Government of

India so far.

• Study of how similar development issues are being tackled successfully elsewhere.

• Ideation on business models/ development strategies/ policy changes that can cause eco-

friendly sustainable development in the islands.

Before we venture into these let us establish the backdrop against which one needs to think

about eco-friendly sustainable development in the islands.

i. Tribes of Andaman and Nicobar Islands1

There are five Primitive Tribal Groups who have been identified in the Andaman & Nicobar

Islands.

i) Great Andamanese of Strait Island: They consist of around ten territorial and linguistic

groups. Their population was between 5,000-8,000 prior to 1858 but due to external contact

including influences from British, Mainlanders, etc these numbers dwindled down to 19 in

1961. After Government’s intervention to resettle them in Strait Island, today there are 52

who claim to be of Andamanese descent. They have lost their traditional skills of hunting and

gathering.

ii) Onges of Little Andaman: With less than 100 members of their tribe left on the islands the

Onges face a great threat of extinction. Theirs is a classic case of good intentions gone awry.

They need to be de-addicted and encouraged to develop their native skills.

1 http://tourism.andaman.nic.in/tribal.htm

iii) Jarawas of South and Middle Andaman: The Jarawas inhabit dense evergreen forests.

They have been deeply impacted by the construction of the Andaman Trunk Road that has

made them vulnerable to intrusion. Their numbers today amount to around 306.

iv) Sentinelese of Sentinel Islands: The tribe, which was very hostile and unfriendly to the

outside world, has been progressively becoming tolerant of the Government’s interventions.

Despite interventions they number around 300-500 only.

v) Shompens of Great Nicobar: They were the first inhabitants of Nicobar Islands. They

follow arboriculture, practice ethno-medicine and grow pandanus, colocasia, banana, etc.

They have been a reclusive tribe and their numbers are highly uncertain. According to

estimates their numbers are around 300.

ii. Economic Opportunities

To start with one has to consider the following economic opportunities favored by the

natural resources of the ANI.

• The islands are rich with natural resources, especially Timber.

• There is tremendous opportunity in the development of Tourism and related activities.

• There is also great potential of the development of Fishery and exports related to the

same.

• The islands also are a rich and fertile source of medicinal plants, spices, coconut and

other horticultural produce.

iii. Challenges to Development

Alongside these opportunities there are substantial challenges that pertain to the following

features of the islands.

• The islands are several miles away from the mainland and thus both interaction and

identification with the mainland are limited. Many development programs exist for the

tribal population but a lack of awareness reduces the efficacy of implementation. Despite

this distance their strategic location is important from both commercial and Defense

perspectives since they can function as both a shipping lane and a naval base.

• The ANI are a biodiversity hotspot replete with endemic species, which must be

preserved at all costs.

• The islands are home to many ethnic tribes whose lives are completely dependent on the

forest cover surrounding them. Also, 34% of the islands’ forest cover has been reserved

for them. The forests are sources of livelihood for Tribals. There exists an intricate

relationship between Tribals and forests in this Eco-system.

• The islands are far apart and their ecosystems are very sensitive. Results of large scale

sudden deforestation might be disastrous for many species.

• The islands are earthquake prone and sustained substantial damages during the Tsunami.

iv. Four Pillars of development in ANI

Given this context, the development strategies should be based on the following four pillars

as subscribed by the Government of India.

(Source: Planning Commission, Government of India)

1. SUSTAINABLE EXPLOITATION OF NATURAL RESOURCES

This pertains to limited deforestation/ exploitation of forests for other produce.

2. STRENGTHENING SOCIAL INFRASTRUCTURE

This includes investing in education, healthcare, vocational training, development of

handicrafts and local Arts, etc.

3. DEVELOPING PHYSICAL INFRASTRUCTURE

This pertains to the development of roads, bridges, transport between islands, modern

communication tools like the internet and mobile telephony, etc.

4. FISCAL CONSOLIDATION & REFORM

This relates to the efficient collection of taxes and distribution of subsidies and ensuring

the efficacy of expenditures by the government.

Given this framework we proceed to analyze efforts made by the Government hitherto in the

form of some major policies that were enunciated.

II. HISTORY OF DEVELOPMENT IN ANDAMAN & NICOBAR ISLANDS

While native tribes have existed on the islands since prehistoric times, the period of interest

as regards development issues begins with the establishment of a British Penal colony on the

islands. With this move the ‘first contact’ with external civilization was established and it

was everything but useful for the natives. The islands were not only home of the banished,

but also homes to people inflicted by epidemics who were conveniently deported to the

islands to contain the spread of disease. Exposure to diseases for which the scientifically

advanced populations had no remedy was disastrous for the natives. Entire populations of

Tribals were wiped out in a matter of months. Also, there was widespread Syphilis among the

Tribals which, it seems, passed on to them through the British. While the British had access

to four hospitals in the islands the Tribals had no means of fighting the disease and

succumbed silently.

The British tried to befriend the tribes but the hostile tribes responded with poison arrows.

The British retaliated and used their sophisticated weapons to annihilate many Tribals. The

fear of the British lead these tribes to flee deep into the hearts of the jungle which caused

more exposure to disease and greater isolation from the exterior world.

It is also notable that one of the ways to torture prisoners of the Penal colony was to chain

them and take them to forests where they were supposed to cut trees and harvest timber for

commercial purposes. These activities lead to indiscriminate deforestation in areas around the

colony.

In 1937, when the British were forced to vacate the Islands, they sent back most of the

prisoners to the Indian mainland. Some prisoners, especially those who were in the good

books of the British chose to stay back. Some of them even married and returned to establish

cities and towns in the Islands.

After India gained Independence in 1947, the Government took on the onerous task of

ensuring economic well being in the state. To this extent it encouraged commercial activity

on the islands of which the most lucrative was the establishment of Timber yards exploiting

the rich availability of Timber in the ANI.

The government set up, to this end, two Governments saw mills, some small private saw

mills and furniture making units and three private plywood units. The private plywood mills

were the largest consumers of timber in the islands. This lead to massive deforestation and

the greatest impact of this was felt by the indigenous tribes like Onges, Jarawas, as these

tribes were completely dependent on these forests for their survival. Some of the other factors

contributing to their dwindling numbers were the barter system introduced by the local

settlers. These local settlers took precious produce and other animal products like turtle shells

etc in exchange for alcohol and tobacco. This led to the local tribes getting fatally addicted to

these narcotic products.

When tribal populations were found to be dwindling and the island’s biodiversity seemed to

be gravely compromised, the government, through legislation, then brought the deforestation

down. This reduction in deforestation has not gone too well with the industrial community

which is complaining about idle capacities which they are forced to fill by importing timber

from Malaysia.

Let us now look at the Policy frameworks that provide the backdrop to this historic evolution.

III. THE EVOLUTION OF FOREST POLICY IN INDIA

In pre-British India, forests belonged to the princely states and individual owners. While the

local community did not own the forest it obtained the maximum amount of benefit from it.

They depended on the forests for most of their everyday needs like food, shelter, medicines,

etc. Commercial exploitation to obtain timber was limited because of the limited economic

growth in the era. After British established their rule, infrastructure projects gained

importance. Massive demand for Timber was generated through the development of

Railways, large scale housing projects, and other infrastructure projects like bridges, etc.

When conflicts arose as regards the ease of felling trees, the British invoked ‘the rights of the

conqueror’ in the form of the Forest Act of 1878 that barred the Princes and Kings from

owning forests. The felling was now controlled by the ‘Conservator of Forests’ who was a

British official. The Forest Act of 1878 was extended gradually to almost the entire forest

cover of the country during British rule. The Indian Forest Act of 1927 went a step ahead to

define the procedures through which a forest could be classified as ‘Reserve Forest’ and

established Government ownership on Forest Produce.

Post independence the policy measures continued to ignore the rights and needs of the local

community. Forests, during the 60’s and 70’s, were looked at as vital sources of timber like

teak wood etc. Forest cover was cleared for the growth of teak plantations. It was in

retaliation to this massive felling that the Chipko Movement arose in the 70’s across India.

For the tribes of ANI though, the Government came out with the Andaman & Nicobar

(Protection of Aboriginal Tribals) Act of 1956 but its impact seems to be limited. Also, in

1972 the government came up with two important acts- Wildlife Protection Act and Forest

(Conservation) Act. While the former established the definition of hunting and poaching and

strictly prohibited the same, the latter aimed to limit deforestation to unsustainable levels.

In the 80’s though, policymakers grew conscious of the tribal dependence on forests and an

approach to make them part of the ‘protection, regeneration, and development of forests as

well as to provide them gainful employment’ was seen. In 1988 the Government

conceptualized the idea that would eventually become the Joint Forest Management Scheme.

It emphasized the need for people's participation in natural forest management. The policy

document asserts that, “local communities should be motivated to identify themselves with

the development and protection of the forests from which they derive benefits.”

These approaches culminated in the National Forest Policy of 1998 that emphasized on the

safeguarding of the customary rights and interests of these people. Joint Forest Management

(JFM) was applied to many parts of India.

Further to this, the Recognition of Forests Rights Act of 2006 guaranteed forest reserves for

Tribals that could not be exploited for commercial purposes.

IV. SUCCESSFUL DEVELOPMENT MODELS TO ENSURE ECO-FRIENDLY

SUSTAINABLE DEVELOPMENT EMPLOYED IN OTHER PARTS OF INDIA

The objective of this section is to do a study of various sustainable models prevalent

worldwide and understand the underlying phenomena behind those models to come up with a

similar sustainable model for ANI with an eye for the tribal development.

We have studied three self sustainable models as discussed below:

i. Eco-Tourism: The Periyar Eco-Tourism Model2

The Periyar Tiger Reserve located in Thekkady, is an example community based ecotourism.

People oriented and park centered community based ecotourism is the hallmark of Periyar

Tiger Reserve. These programs are conducted by local people responsible for the surveillance

of the vulnerable parts of the reserve. By taking tourists along, they are involved in the

conservation of the forests of Periyar and substantial revenue is generated for community

welfare. The visitors too directly contribute towards forest conservation and community

welfare by visiting the Reserve and joining in their efforts.

2 http://www.periyartigerreserve.org/

The Model provides an example of how threats to habitat can be substantially reduced if local

(tribal) people are directly involved in, made aware of and provided with economic incentives

in protecting their forests. The uniqueness of the eco-development programmes in Periyar lies

in their ability to recognize site-specific concerns and evolve strategies which can address

these concerns. Some salient features are as given below.

(1) Analysis of the threats to habitat within Periyar reserve due to Cinnamon barks

(teak/rosewood/sandalwood) smuggling.

(2) The presence of the Sabarimala Temple inside the Reserve precincts – pilgrim traffic,

increase in local services for pilgrim traffic like shops, hotels, etc.

(3) In the mid-1990s it was realized that policing alone to counter smuggling/theft of forest

produce/poaching was not possible; local population must somehow be involved and given a

stake in the process.

(4) Establishing EDCs (Eco-Development Communities) based on locality, ethnicity,

professional backgrounds and habits.

The EDCs can be categorized into four functional groups depending on their mode of

operation:

• Neighborhood EDCs - families in a particular geographic or administrative area;

• Professional EDCs - organized along occupational lines;

• User Group EDCs - organized to utilize a particular physical resource; and

• Pilgrim Management EDCs - organized to provide a specific service to pilgrims.

• Tribal Trackers-cum-Guides EDCs

Among these the last group of EDC is particularly to relevant our study of eco-tourism.

Indigenous tribal groups engaged in fishing and the collection of honey and fuel wood are

incorporated into the eco-tourism model. Initially there were 12 members, but this expanded

to 19 subsequently. They take small groups of tourists on three-hour sightseeing trips, either

on foot or by riding a raft. Guides are paid a daily retainer by tour operators. Some members

of the Tribal Trackers EDC work independent of tour operators and take groups on their own

into the sanctuary. Each guide receives a fixed monthly stipend from the EDC.3This model is

currently successfully implemented in Periyar.

3 www.earthcarefilms.com

(Tiger forest reserve, Periyar)

ii. Co-Operative Models:

Co-operative Models are the best mechanism to address market and supply chain failures in

agricultural commodities. The formation of cooperatives encompasses the full involvement of

all the members i.e. state and community. The operations emanate out of detailed supply

chain and need analysis, engagement and training of members on principles so that it is

ingrained within the members.4

The principle of formation and management of cooperatives, as the term refers, is the

advancement of cooperation among members for common good, equitable ownership of the

enterprise thus formed and profit distribution in share of the patronage by members.

4 www.nimblesol.com/the_cooperative_model.pdf

The co-operatives are usually formed around commodity or group of similar commodities, it

enables the members to pool their resources and thus take advantage of economy of scale

(EOS). The EOS provides benefits at all levels of supply chain starting from the procurement

of raw material or agricultural inputs to economical warehousing facilities; to leveraging of

transportation costs, processing and finally marketing eliminating intermediaries.

A perfect example of the co-operative model is AMUL

Amul is the result of milk producers organizing into cooperative structure to take advantage

of EOS in the entire supply chain of milk and milk products. Amul made interventions at all

levels of supply chain starting with the producers and culminating in marketing activities.

Producer Level Interventions - Raising milk production, providing nutrient balanced cattle

feed and upgrading the animal breed

Procurement Level Interventions - Transportation models were used to develop logistical

solutions like enhanced shelf life of milk, and transport route which would ferry the milk

within short times to the processing centers

At the processing level, processing methods were put in place to process milk in order to

enhance shelf life and make various products. The benefits accrued at both economic and

social levels. On the economic front, the producers were able to get the best prices for their

produce. On the social side it helped create jobs for unemployed people in the community,

upgraded the village infrastructure by helping repair and build schools, roads, potable water,

awareness building on health and sanitation issue among others and removing social

disparities by fostering a feeling of cooperation.

iii. Natural solutions by Tribal Societies: The Jeypore tribe in Orissa

The Jeypore Tribe of Orissa is a society working to make their livelihoods and food security

sustainable through a number of natural solutions. The society engages in the following

actions - agricultural biodiversity conservation, genetic resource management, and

environmental protection.

An increase of soil, water, and forest conservation and natural environmental development

has been brought about by the villagers by widespread awareness. Over 120 different

medicinal plants are under strict conservation for the protection of these keystone species.

Water conservation is helping the growth of the forest and enabling the natural environment

to flourish. These goods harvested from the natural environment create a market and helps

place a value on farming generating revenues. These revenues help with income

diversification and promote the growth of the markets from within.

Healthy environment will lead to coexistence of the Jeypore tribe and the forest. These tribes

will be get all nourishment from the earth to sustain themselves. Their hard work has also

spread to neighboring villages where they have replicated the process of conservation,

multiplication, evaluation and exploration of rice germplasms.5

V. HOW THESE DEVELOPMENT MODELS CAN BE APPLIED TO ANDAMAN &

NICOBAR ISLANDS

i. The Ecotourism Model in ANI:

Tourism is the fastest growing industries in developing countries which are rich in traditional

and minority cultures as well as in eco- and bio- diversity. ANI is a safe haven for the various

tribal cultures, religions, beliefs and traditional knowledge. Hence it is beneficial to assess the

prospects for the development of culturally and ecologically sustainable tourism in the island.

An eco-tourism model similar to the Periyar Forest Reserve Model can be replicated in ANI

for preservation of primitive community and development of tourism industry in ANI. Some

prospective features that can be implemented are as follows:

The ANI Mangrove - A glimpse provided to the tourists into the peaceful co-existence of

tribes and nature by the tribal guide themselves.

Nature Walk: A guided day trek of the forests and mangrove in ANI without disrupting the

ecology.

Bamboo Rafting: Bamboo rafting of the waters since ANI is an island.

Jungle Patrol: Tribal communities shepherd the jungle because it is their home and ecology.

The tourists can be given a flavor of the same.

5 http://en.wikipedia.org/wiki/Least_Sustainable_Societies

For all the above measures to be successful, a lot of effort and planning needs to be put in to

get the buy in of Tribals. The Tribals should understand the importance of the measures for

their sustainability and should be willing to hold a stake in all the measures. There should be

no feeling of alienation, or intrusion by the tribals.

A PEST analysis of the ecotourism model is delineated below.

Political Factors: The political parties support the eco-tourism industry prevalent in the

island. Further the various regulatory trends, legislations and press media can be leveraged to

gather wide support to preserve the tribal communities and engage in eco-tourism.

Economic Factors: It should be an economically sound means to conserve biodiversity and

provide revenues to improve the lives of the tribal people. It should constitute a niche market

for the environmentally aware tourists who are interested in observing the nature. Ecotourism

should be a vehicle to finance the protection of the subject area and at the same time

contribute to the local economy and as a result contribute to the overall wealth of the

local(tribal)community

Socio Cultural Factors: The benefits provided by eco-tourism should be recognizable within

the context of social scenario. The tribal community is able to take advantage of the

ecotourism when the main economic, environmental and political objectives have been

achieved, enabling the gain of social benefits6. The involvement of the tribal communities

contributes to the quality of tourist experience in addition to protecting the status quo of the

environment.

Technological Factors: The impact of the emerging technologies like internet,

communication costs and various R&D activities impacts the ecotourism industry. The

challenge here is to incorporate these modern technologies and at the same time protect the

ethnicity and identities of the tribal people by taking precautionary measures like keeping

6 www.docstoc.com

their skills from being affected by the modern technologies. For eg: Design workshops to

showcase the skills of the tribal people viz handicrafts, cane and bamboo designs, herbal

medicines etc. Internet has transformed the provision of tourism and the more people become

aware and informed of the eco-tourism project the better they can promote the long term

development and increase its sustainability.

Eco-tourism is mutually beneficial for both the communities and the island. The tribal will

continue with their ethnic livelihood with controlled interaction with the outside world.

Further the state is encouraged to preserve the primitive tribes and their environment due to

better ecotourism prospects.

ii. Sustainable Co-operative Model in ANI:

There are many remarkably successful new developments in state-tribal relations. As Indian

tribes improve governmental capacity and more frequently exercise their powers of self-

government, tribal and state governments are increasingly finding areas of mutual interest

favoring cooperative government-to-community interactions.

In ANI a sustainable co-operative model can be developed in the lines of AMUL for herbal

medicines. Herbal medicines are a growing sector and the tribal communities are rich in

knowledge about the various medicinal properties of the herbs in jungle. They also have

extensive knowledge of medicinal plants, spices, coconut and other horticultural produce

which can be used to get into these businesses.

A supply chain should be developed to bank on this historical knowhow of medicinal herbs

and utilize it for treatment of people.

New transparent structures for communication and collaboration, solutions and agreements

should be created for the ever-changing range of issues, and older tribal-state institutions.

Development of positive intergovernmental relationships between states and tribes should be

smoothened and made mutually beneficial7.

With one tribe there may be development of improved communications and a building sense

of trust between state and tribal officials, while in a neighboring tribe the parties will rarely

speak to each other. Within the same tribe, there may be a great deal of cooperation on one

issue but very little on another. Initiatives should be designed to find a creative and mutually

7 www.cefas.co.uk

beneficial policy issues. Analyzing few guiding principles in effective state-tribal relations

and following examples of successful cooperative government implementation of co-

operative models can assist citizens of both tribes and states. The tribes can be given the

authorized owner ship of the forests which will a go a long way to sustain their livelihood and

benefit the state overall. Further fishery can also be a viable and attractive model of business

for them.

PEST Analysis for the Cooperative model

Political Factors: Policies to support cooperative models are already in place.

Economic Factors: It is a win-win situation for both the tribes and the state.

Socioeconomic Factors: Tribes can participate in the models without compromising their

ethnicity.

Technological Factors: Enterprise Management softwares are available to ease

implementation of the model and to do effective management of the supply chain.

iii. Tribal Societies model applied to ANI:

Development of Tribal Societies for the upliftment of the various ANI tribes can be initiated

by trailing the success of the Jeypore Tribes of Orissa. Natural solutions can be put to effect

to strike a balance between the tribes and sustainability. The tradition of these tribal people is

rooted in their lifestyle in harmony with the natural environment they live in. The tribal

societies have lived for centuries depending upon the thick forestland of the region.

The forest products like wood, cane bamboo that serve as raw materials for the handicrafts

they fashion out in their leisure times. Such objet d'art, the artifacts speak volumes for the

rich aesthetic sense and skilled craftsmanship of the ANI tribes.

(The following are some examples of handicraft and artworks that form part of their tribal

heritage. Predominantly handicrafts are made from Bamboo, Cane and Coconut derivatives)

They design various items like exquisite baskets, bags, furniture, necklaces and beads which

turn out to be fantastic items for shopping for tourists. Thus the natural talents of these tribal

people can provide them sustainability with initiatives from the state and government.

Natural methods implemented by the tribes can go a long way in ensuring their survival for a

prolonged time period. The tribes must be empowered to protect their reserves by the

government with support from the state. A similar experiment in Baratang has been highly

successful. The ANI government should promote indigenous skills for fishing and bamboo

cultivation and not induce the tribal to lose their traditional skills by distributing doles in the

form of availability of water at doorstep and electricity. Special effort must be taken to

archive and conserve their traditional skills with ethno medicine and herbal treatment.

PEST Analysis for the Tribal Society model

Political Factors: This model is deeply aligned to the motivation behind most Tribal

Development policies.

Economic Factors: New revenue models can be generated by engaging the tribals in various

forms of art and crafts.

Socioeconomic Factors: Traditional lifestyles of the Tribal communities are maintained.

Technological Factors: No dependency on modern technology works out to their favour.

Other Recommendations:

• The tribes of Andaman are from negroid origins and have traditionally indulged in

hunting for their survival. Their skills can be further sharpened. The Tribals should be

trained and encouraged to participate in sports. Matches with and against the main landers

will foster feelings of geniality about the outsiders. Also encouraging them to participate

will create a sense of belonging and will serve to integrate them with the mainland

naturally.

• Animal Husbandry and Agriculture: The Tribes should be also be trained /supported to

engage in agriculture. Agriculture will be an important tool to make them self sustainable.