Professional Documents
Culture Documents
Course Editor
Programme Co-ordinators
I. Ramabrahmam
S. M. Ilyas
E. Haribabu
Contributors
Dr. S. Mohanty
Dr. A.K.Patnaik
Dr. T. Mohammad
Dr. M. Roy
Dr. S. Sahu
Dr. P. Leelavathi
Dr. Hemalatha
10 Dr. Eshwarappa
11 Dr. Ramesh Babu
12 Dr. M.V. Laxmi Devi
13 Dr. R. Singh
14 Dr. K.V.R. Subrahmanyam
15 Dr. J. Ravindra Babu
16 Smt. Ram Lakshmi
17 Ms. Rajshree Padhi
PREFACE
This Course on Rural Development: Policies and Programmes is evolved to give a brief
idea to the student about the efforts made by Indian state to develop rural areas. Since 1950s,
Government of India played a proactive role in igniting development in rural areas through
centrally evolved model of development. In this top-down model, several new initiatives are
taken, interventions are planned. The achievements in this field are impressive. In certain sectors
like agriculture, the Indian states initiatives through popularising high yielding varieties are
worth the effort. The task of development of rural areas is indeed gigantic but the Indian
Government succeeded to a large extent. What are the policies and programmes initiated by the
government for development especially in rural areas is the basic thrust of the Course.
This Course is divided into five blocks; each block consists of two or more units. Block1 consists of four units which include Gandhian perspective, Nehrus vision and Jayaprakash
Narayans ideas on Rural Development. The learners get an overview of the vision of the three
national leaders on aspects concerning development of rural areas. Gandhian perspective perhaps
cannot be compared to Nehrus vision. The objective behind the inclusion of these three
perspectives is to familiarize the students with Gandhian notion of development which believes
in self-sufficiency of villages; Nehrus big state model based on planning and Jayaprakash
Narayans call for Lokniti over Rajniti. The Block is rounded off with a Unit (Unit-4) as
evolution of Green Revolution, especially with a focus on the role of Government and Non
Governmental agencies.
Block-2 consists of four units beginning a unit on planning for development of rural areas
(Unit-1) for better access, assets and services for sustainable rural development. A plan wise
presentation of programmes is discussed. Unit- 2 of the block presents a perspective on the
evolution and current status of Panchayati Raj in India. Unit-3 presents how micro-finance
promotes development in rural areas. However the dominant theme of the self-help group
approach to development is discussed in this unit. Unit-48 attempts to give an idea of the
approaches and methodologies for evolution of rural development programmes.
Block-3 features five units which are, on macro issues including an exclusive Unit on
right based approach (Unit-1), wage employment (Unit-2), self employment (Unit-3) , area
development (Unit-4) and on safety net programmes (Unit-5). The issues relating to right based
development and figuring in Unit -1. How civil society organizations are useful in creating the
awareness about the various programmes which is necessary for realization of objectives. Unit-2
presents details of policies on employment from Sixth Five Year Plan. The diversification of
employment structure is discussed in Unit-3 as self employment. It shows how Indian
Governments anti-poverty strategy comprises of a wide range of poverty alleviation and
employment generation. The unit attempts to give one an idea about the multiplicity of the
programmes and limitations to such a strategy. Unit-4 is on area development which furnishes
details about area specific programmes like DPAP. The unit on safety net programmes discusses
about the role of the state and central government in this important segment. It discusses some
programmes which are presently carried by the government in order to face the crisis and
improving the quality of life style of an Indian citizen.
Block-4 presents two themes. One on the Gender (Unit-1) and other on tribal
development (Unit-2). While the Unit-1 on gender and rural development presents contemporary
perspective about the role of women in development, it also notes the need for enhanced
participation for better impact on the women. Unit-2 on tribal development reflects various
strategies and approaches in the process of development. The prime emphasis of this unit is not
only listing of various interventions for development of tribal areas and people but also role the
need for the tribal peoples participation in the development process.
Block-5 gives you an idea of interventions in social sector. It presents three themes
health, education and thrift & savings which are essential for improving the quality of the life of
a citizen. Unit-1 gives you a picture on access to health, which is an important indicator of a
nations development. It is well known to all as to how good health contributes to productivity
and economic growth. The linkage between poverty eradication and universal health care are
mentioned in this unit. Development is freedom. What people can achieve is influenced by basic
education. How education plays an important role in the sphere of development is discussed in
Unit-2. Although primary education is compulsory and now that there is legal guarantee of free
education, it is seen how the gross enrolment ratio in primary education is not encouraging in
this unit. The Unit focuses on the issues in primary education in India and what are the policies
and programmes undertaken by the governments to strengthen the primary education, so that the
rural children can avail the educational facilities meant for them. Unit -3 is on thrifts and savings.
In this Unit, it will be seen how the two main sources through which not only women got
mobilized but these helped women to take active participation in the developmental process.
Unit-4 is on assessment of rural development programmes which highlights on the issues
concerned with effective implementation of different programmes.
I. Ramabrahmam
Course Editor
Contents
Block-1: Vision for Indias Rural Development
Unit - 1: Gandhian Perspective: Swaraj & Community Welfare
Unit - 2: Nehrus Approach to Development
Unit - 3: Jayaprakash Narayan and Rural Development
Unit - 4: Agriculture Development (Green Revolution), CommunityParticipation and Rural Development.
Block-2: Planned Rural Development
Unit -1: Five Year Plans and Rural Development
Unit- 2: Democratic Decentralisation: Peoples Participation and Panchayati Raj
Unit- 3: Funds, Loans, and Micro Finance
Unit -4:
Structure
1.
Introduction
2.
Objectives
3.
3.1
3.2
Gram swaraj
4.
Community Welfare
4.1
4.2
4.3
Agriculture
4.4
Khadi
4.5
4.6
Village Sanitation
4.7
Education
4.8
Economic Equality
4.9
Village Panchayat
4.10
5.
Summing up
6.
7.
1. Introduction
Mohan Das Karamchand Gandhi, regarded as the Father of Indian Nation, is well-known
for his views on development. In fact his vision for development is more inclusive. Gandhi was a
man of combining thought and action, a rare combination. He completely identified himself with
the Indian masses. He led the greatest anti- colonial struggle in history, organized his deeply
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divided countrymen, gave them a sense of collective pride, and developed a unique method of
struggle that combined the energy and effectiveness of violence with the peacefulness and
humility of non-violence.
For almost five decades of the 20th Century, Gandhi fought the greatest battles a human
being can fight for freedom, for ones country and for individuals, i.e., political freedom and
freedom from oppression.
freedom
from
injustice
and
violence.
In every country where there has been a peaceful revolution, Gandhis spirit has been present.
Today, around the world vast number of people are interested in his life and teachings, which
cover virtually every aspect of human existence. Gandhi left an all-encompassing religious,
moral, political and social philosophy. Even today people see that there is something in Gandhis
life that is a clue to a better life and world. This is because Gandhi searched for the Truth, and
that Truth is as relevant today as ever. Gandhi strongly believed that freeing the nation from the
foreign rule only paves the way for the development of rural areas. For which he lauded the
concept of swaraj.
2. Objectives
After reading this Unit, you will be able to:
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Swaraj or self rule as it is generally understood was not a term of Gandhis coinage. The
term swaraj had already gained considerable currency in the political vocabulary of India before
Gandhi gave serious thought to it. Gandhi gave serious thought to the question of swaraj in the
year 1903 and during his return from London to South Africa, in answer to the Indian school of
violence and its prototype in south Africa, he wrote for the columns of the Indian opinion and
series of articles on swaraj that subsequently appeared in book form with the title Hind Swaraj.
Hind Swaraj expressed for the first time Gandhis view about the nature and picture of swaraj
and it constitutes the first Gandhian blueprint of the swaraj of his conception.
In his Book Hind Swaraj (1909), Gandhi sought to clarify the meaning behind Swaraj
was much more than simply wanting English once without the Englishman; the tigers nature,
but not the tiger. The crux of his argument centered on the belief that the socio-spiritual
underpinnings of British political, economic, bureaucratic, legal, military and educational
institutions were inherently unjust, exploitative and alienating.
The call for Swaraj in his opinion represents a genuine attempt to regain control of the
self- our self-respect, self-responsibility and capacities for self-realization from institutions of
dehumanization. As Gandhi states, It is Swaraj when we learn to rule ourselves. The real goal
of the freedom struggle was not only to secure political azadi (independence) from Britain, but
also rather to gain true Swaraj (liberation and self-rule).
Gandhi wanted all those who believed in Swaraj; to reject and wholly uproot the
British Raj (rule) from within themselves & their communities and to regenerate new reference
points, systems & structures that enable individual and collective self development. This
regeneration was to grow from the strengths, perspectives, wisdom and experiences of people
living in village India, rather than from cities in Britain, America and even in India for that
matter. Understanding the real Self and its relation for communities and society is critical to the
project of attaining Swaraj.
For Gandhi writing Hind Swaraj in 1909, to think about Swaraj meant not just to
address the obvious historical circumstances of British colonial rule over India but to mediate
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upon the larger question of why the west, by which he meant capitalism, industrialism,
imperialism and nationalism, had come to dominate the world. For Gandhi the challenge was
twofold; India not only needed to attain the freedom to govern itself as a polity but Indian
civilization had to come back into its own with its full array of social, economic, political &
moral forms of life, some traditional and some modern. The importance of a term like Swaraj
then turns out to be far from limited to the decades when India was struggling to attain political
self-rule.
Prior to Gandhis intervention, it was Bal Gangadhar Tilak (1856-1920) who was best
known for introducing Swaraj. The slogan he gave was Swaraj is my birth right and I shall
have it. Gandhi insisted that replacing British rule by Indian rule was not going to change
anything, for it was not merely a question of self rule (Swaraj), but rather of clarifying exactly
what is meant by self, what is meant by rule and what sort of a relation is to be established
between these two.
For Gandhi, the matter of Indias Swaraj had not only to do with the discourse of rights
(adhikar), it has grounded as much in righteousness (dharma). Agency and responsibility,
mastery of non violence, self and other, resistance & surrender, courage & suffering, experience
& principle, choice & cowardice, were all brought into new dialectical & chiastic alignments
with respect to one another in the rubric of swaraj.
Although the word swaraj meant self-rule, Gandhi perceived an integral revolution that
encompassed all spheres of life. At the individual level, swaraj is vitally connected with the
capacity for dispassionate self-assessment, ceaseless self-purification and growing swadeshi or
self-reliance. Politically, swaraj is self-government and not good government (for Gandhi, good
government is no substitute for self government) and it means continuous effort to be
independent of government control, whether it is foreign or national. In other words, it is
sovereignty of the people based on pure moral authority. Poorna swaraj means full economic
freedom for the toiling millions. For Gandhi, swaraj of the people meant a sum total of the
swaraj (self-rule) of individuals and so he clarified that for him swaraj meant freedom for the
meanest of his countrymen. And in its fullest sense, swaraj is much more than freedom from all
restraints, it is self-rule, self-restraint and could be equated with moksha ( salvation).
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Self Control
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Apart from non-violence & Satyagraha, the other significant technique presented by
Gandhi for the attainment of real Swaraj or poorna Swaraj is self-control. As Gandhi wrote in
Hind Swaraj Real home rule is self-rule or self-control. Gandhi realized that self-restraint or
self-control expressed in terms of control of ones passion would act as a potent weapon for the
winning of Swaraj.
self-reliant,
making
provision
for
all
necessities of life - food, clothing, clean water, sanitation, housing, education and so on,
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including government and self-defence, and all socially useful amenities required by a
community. For India as a whole, full independence would mean that every village would be a
republic with full powers.
The people of the society will make development plan of the self-sustained village. They
themselves will execute and also enjoy the resultant outcome. Present social thinkers call it a
sustainable development. The main driving force of this development is economic and political.
If there is huge development of economic power but development in political power is poor, the
overall development is not called sustainable development. To lead our society to achieve Gram
Swaraj by making it sustainable, it needs community organization and capacity building as a top
priority.
If it is viewed in the present context, it is seen country might have developed greatly in
economy, but economic and political power are with a few people whereas vast majority of the
people are deprived of it. It might be called as a lopsided development.
4. Community Welfare
According to Gandhi, India lives in its villages. Still about 65% of the countrys
population is living in rural areas. People in rural areas should have the same quality of life as is
enjoyed by people living in sub-urban and urban areas. Further, there are ill effects of poverty,
unemployment, poor and inadequate infrastructure in rural areas on urban centres. Hence, rural
development, which is concerned with economic growth and social justice, improvement in the
living standard of the rural people by providing adequate and quality social services and
minimum basic needs, becomes essential.
With Gandhis presence on the Indian scene since 1915, a new articulation of
development is seen. When he was just 25 years old, he wanted to help his compatriots in South
Africa by saving them from blatant and crushing racial discrimination. This shows Gandhis
consideration of his fellow men even and that young age. It is Gandhis deep rooted conviction
that individual happiness lies in the happiness of society and vice-versa. Gandhi never drew a
sharp distinction between economics & ethics. For him economic policies, which are harmful to
the moral well being of an individual, community, society, country or a nation, were immoral
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and therefore sinful. For him, happiness meant the happiness of the community as a whole and
was indicated primarily by its moral standard and secondarily by its physical & economic well
being. The Gandhian notion of development deals with the following perspectives.
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The government must give full support regarding finance, technology, and market to
village industries. The people of the country must give first priority in purchasing their rural
productions. He accepted the foreign economic relation for unavoidable useful things which
could not be produced in the country and some basic industry on large scale like mines, cement,
electricity etc. He also encouraged big industrialists and big farmers and warned them, that if
they fail to accept trusteeship they will have to face bloody revolution.
4.3. Agriculture
The agricultural activities should be done with the help of livestock and bio-fertilizers.
He explained in detail how to produce organic fertilizer without any extra cost and minimum
labour. He described the number of benefits which can be achieved from the use of livestock
and cooperative farming. Today, bio technological revolution, popularity of organic fertilizer,
and awareness against harmfulness of chemicals used in agriculture prove the worth of Gandhi's
thinking.
4.4. Khadi
Khadi to Gandhi is the symbol of unity of Indian humanity, of its economic freedom and
equality. Moreover, khadi mentality means decentralization of the production and distribution of
the 'necessities of life. Therefore, every village has to produce all its necessities and a certain
percentage in addition for the requirements of the cities.
Heavy industries will need be centralized and nationalized. But they will occupy the least
spans of the vast national activity which will mainly be in the villages. Production of khadi
includes cotton growing, picking, ginning, cleaning, carding, slivering, spinning, sizing, dyeing,
preparing the warp and the woof, weaving, and washing. Every family with a plot of ground can
grow cotton at least for family use. When it does that, it will reduce the chance of a low market
ruining him. Why cannot we grow cotton voluntarily for the nation on a certain portion of our
land? The decentralization commences from the beginning of the khadi processes. The farmer
needs to know that his first business is to grow for his need.
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Gandhian notion of education deals with the development of research and science for helping
the country and population at large and not to help a few rich.
11 | P a g e
sovereignty of the people shall be properly exercised, or in other words for the prevalence of
perfect democracy, political power must be decentralized and diffused and lodged in smaller
political cells like self-governing village republics. Economic Swaraj can pave the way of
political Swaraj only when the economic system is decentralized & diffused, organized on small
scale and local basis and individuals are made an essential ingredient of the economic process,
determining its nature & character, tone and temper. Thus every villages first concern will be to
grow its own food crops & cotton for its cloth.
5. Summing up
The weapon of swaraj was developed as a weapon in achieving independence for India. It
was an attempt made by Gandhi for attaining the dignity, self-respect, and self- transformation of
the people along with the country. Swaraj was also necessary in realizing the rights and duties of
the people as well as an effort to fight against the Britishers. The practice of non- violence
remained the most important weapon in realizing the goal of swaraj, self- realization, selftransformation in general and the goal of independence in particular. Gandhi gave more
importance to individual, who should practice truth and non- violence in achieving the goal to
free India from the British rule and to the rural areas which play an important role for the
development of a country. The Gandhian notion of development starts with the villages and the
rural areas which deals with various perspectives like promotion of village industries,
development of village economy, decentralized political and economic system, promotion of
education etc which needs to be considered to unite the people to fight against the British Raj.
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Bakshi, S.R. (1988) Gandhi and Concept of Swaraj, Criterion Publications, New
Delhi.
Das, B.C.& Mishra, G.P. (1978) (Ed.) Gandhi in To-Days India, Ashish
Publishing House, New Delhi.
Thomson, Mark. (1995). Gandhi and his Ashrams, Popular Prakashan, Bombay.
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Structure
1.
Introduction
2.
Objectives
3.
4.
5.
6.
7.
8.
9.
10.
Summing up
11.
12.
1. Introduction
If Gandhi is the Father of India, Jawaharlal Nehru is the Architect of modern India. He
had always been a follower of Gandhian values and principles, nevertheless with his own
original political ideas and views. However, the difference between the political and economic
ideas of thinkers like Gandhi and Jayaprakash Narayan and that of Nehru is that while the former
thinkers ideas are seen through their literary works, Nehrus ideas were reflected in his
developmental policies and programmes.
Jawaharlal Nehru, the first Prime Minister of independent India, holds a significant
position in the planning and development in modern India. His ideas and views about
development shaped the future course of action for Indian model of development. The unique
model of mixed economy illustrates his understanding of diversified Indian society and the
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influence of western education on his political ideas. This Unit discusses the Nehruvian
understanding of development evident in the developmental programmes undertaken
immediately after independence.
2. Objectives
After reading this Unit, you would be able to:
Figure out the contribution of the Nehrus ideas towards Indian economy.
One of the first initiatives taken by Nehru after the formation of the Interim Government
was the setting up of an Advisory Planning Board to review the work done in the name of postwar reconstruction. This review pointed to the need for a new agency for planning to be called
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Planning Commission. However, the formal setting up of the Planning Commission came as a
sequel to the promulgation of the new Constitution.
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mining, electricity and heavy industries, serving public interest, small and medium scale
industries were allowed to be run by private enterprise with government control.
Nehru realized fully well that the formal political independence achieved by India in
1947 could be subverted by the foreign powers by their economic penetration and that India
could be converted gradually to a semi-colony. This was the economic basis of Nehrus political
thought in relation to Indian nationalism. Nehru believed in planned economy for maximum
utilization of resources. He did not favour nationalization of private capital. In his scheme of
economic development, mixed economy played a prominent role. He argued that both public
sector and private sector must help each other in removing poverty and the other basic problems
of Indian society.
Nehru was a firm believer in state control over the economic sectors. His socialist ideals
revealed themselves in the way he introduced laws for land redistribution, in order to curtail the
economic disparity in India among the landed and the land-less classes. His policies were based
on the socialist idea that the market economy and the unregulated capitalism, based on profitmaking basis should not determine the character of the economy. Nehru wanted the public sector
to have a major share in the economy. Therefore, he wanted the public sector to play a vital part
in regard to the development of heavy industries like steel and the exploration of oil resource in
India. In his own words:
Industrialisation produces steel, it produces power. They are the base. Once you
have got the base, it is easy to build. The strategy governing planning in India is to
industrialize and that means the basic industries being given the first place.
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The main objective of planning may be enumerated as rapid increase in national income
and per capita income, minimization of income inequalities, removal of regional disparities and
sectoral imbalances and stability. In other words, planning aims at mobilizing resources and
allocating in different sectors in such a way which assures high growth rate in national income
and per capita income on one hand and reduces inequalities of income and imbalances amongst
different regions and sectors on the other hand.
Prior to 1947, there was virtually no Public Sector in the Indian economy. The idea that
economic development should be promoted by the State actually managing industrial concerns
did not take root in India before 1947, even though the concept of planning was very much
discussed by Congress governments in the Indian provinces. However, in the post-independence
period, the expansion of public sector was undertaken as an integral part of the 1956 industrial
policy. The industrial policy resolution, 1956 gave the public sector a strategic role in the Indian
economy. At the time of independence, the country was backward and underdeveloped- basically
an agrarian economy with a weak industrial base, heavy unemployment, low level of savings and
investment and near absence of infrastructural facilities. Indian economy needed a big push
which could not come from the Indian private sector, which was starved of funds and of
managerial ability and was incapable of undertaking risks involved in large long-gestation
investments. It was assumed at that time that only the Government intervention in a big planned
way could accelerate agricultural and industrial production, expand employment opportunities,
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reduce poverty, etc. in other words, the public sector was thought of as the engine for self-reliant
economic growth to develop a sound agricultural and industrial base, diversify the economy and
overcome economic and social backwardness.
One of Nehru's key economic reforms was the introduction of the Five Years Plan in
1951. It was introduced to determine the mode of government expenditure and grants in
important development sectors like agriculture, industries and education. Nehru was fascinated
by Soviet Union's Piatiletka or Five-Year Plan and tried implementing the same for the Indian
economy. He wanted India to have the best combination of socialism and capitalism and tried to
implement Democratic Socialism in India. He wanted the state to be a principal entrepreneur and
all its citizens to be equal share holders. He strengthened the democratic pillars of nation
immensely by creating proper wealth distribution systems at all levels. Through the Five year
Plans, Nehru attempted to coordinate and balance the activities of the public and private sectors
in enhancing the material welfare of the country.
The Mahalanobis Model was created as an analytical framework for Indias Second Five
Year Plan in 1955 by appointment of Prime Minister Jawaharlal Nehru, as India felt there was a
need to introduce a formal plan model after the First Five Year Plan (1951-1956). The First Five
Year Plan stressed investment for capital accumulation in the spirit of the one-sector Harrod
Domar model. It argued that production required capital and that capital can be accumulated
through investment; the faster one accumulates, the higher the growth rate will be. The most
fundamental criticisms came from Mahalanobis, who himself was working with a variant of it in
1951 and 1952. The criticisms were mostly around the models inability to cope with the real
constraints of the economy; its ignoring of the fundamental choice problems of planning over
time; and the lack of connection between the model and the actual selection of projects for
governmental expenditure. Subsequently Mahalanobis introduced his celebrated two-sector
model, which he later expanded into a four-sector version.Nehru-Mahalanobis model of
development emerged as the driving force of the strategy of development adopted in the midfifties at the time of formulation of the Second Five Year Plan. This strategy has continued right
up to the eighties with a short interregnum of about 2-3 years when Janata Party came into power
during 1977-80.
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Nehru-Mahalanobis model was based on long run development strategy which accorded
greater preference to the long-term goals of development, rather than succumbing to the
immediate and short term goals. Industries got more importance in the second five year plan. The
focus was mainly on heavy industries. The Indian government boosted manufacturing of
industrial goods in the country. This was done primarily to develop the public sector.
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other hand, he had a strong belief that heavy industrial development would be the best way to
serve India's economic interests.
The profound wisdom of Nehru in opting for this course for Indian economy has been
proved right by the course of events over the years which have made possible the convergence of
the two competing economic systems and the emergence of a system based on the concept of a
welfare state.
Nehru inspired the industrialists to provide a fillip to India's economy. However, he had
strict reservations on the question of foreign investment. Nehru was wary of foreign investment.
His nationalist ideals confirmed in him the belief that India was self-sufficient to bolster her own
growth. Although he did not officially decry the possibility of foreign investment in direct terms,
he did stress that the sectors of foreign investment would be regularized, and the terms and
conditions of investment and employment would be strictly controlled by government rules in
case there were possibilities of a foreign investment. Nehru, moreover, emphasized that the key
sectors will always be in government hand.
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scale industries and cottage industries were effective solutions to the massive employment
problems that remained a perpetual issue of concern throughout his tenure.
After the independence of India in 1947, community development assumed high priority.
In 1948, a pilot community development project was launched through the Etawah Project. Later
in 1952, the Government of India launched 55 Community Development Projects, each covering
about 300 villages or a population of 30,000. This programme was multi-dimensional but the
major emphasis was placed on agricultural production, as the areas selected for launching the
project were located in irrigated areas or where the rainfall was assured. In 1953, the National
Extension Service Project was launched with similar objectives to cover larger areas, including
the dry regions. This project of three-year duration, demarcated the blocks of 150-300 villages as
manageable units for initiating community development programmes. The objectives and
activities of the project were modified from time to time and continued as a permanent multifunction extension agency in each block. These community development blocks were treated as
normal administrative units for planning and development with regular budgetary allocations. By
the end of the First Five Year Plan (1952-57), 1114 blocks covering 163,000 villages were in
operation and by sixties, the community development programme covered the entire country.
The programme was characterised by the following features: comprehensive in content;
economic progress as the core objective; flexible programmes and posting of a multipurpose
worker at the village level. The plan defined the central objective of planning as creation of
conditions in which living standards are reasonably high and the citizens have full and equal
opportunity for growth and justice. The programme aimed at upliftment of the rural poor,
covered agriculture, animal husbandry, roads, health, education, housing, employment, social
and cultural activities. While aiming at economic development through agriculture and cottage
industries, efforts were made to improve literacy, health, sanitation, housing, transport and
communication.
10. Summing Up
The economic policies of Nehru are often blamed for the poor economy of India in the
subsequent years. However, it cannot be denied that his decisions were necessitated by the needs
of the times. India needed to effectively harness its domestic means as well as strengthen its
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governmental control to lay the base for future privatization. In the present circumstances, the
basic approach of Nehruvian strategy of economic development is still valid. There is a need for
a renewed commitment and national consensus on the basic premises of planning. Planning has
to be geared up towards increasing the welfare of the common people. In the name of faster
growth, planning should not be allowed to be used for enrichment of privileged in few.
Explain the concept of Mixed Economy as a policy option. Was it the best alternative
for India in the context of Cold War? Give Reasons.
Das Gupta N.B and J.L. Raina (ed), Nehru and Planning in India, Concept Publishing
Company, New Delhi, 1993
R.C. Dutt (ed), Problem of Indias Development Gyan Publishing House, New Delhi,
1994
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1. Introduction
Every institution in a society grows based on its own peculiar soil, nature and
environment. So, whenever something is borrowed from outside for the upliftment of these
institutions it should suit the native society. If it does not, then the whole system will not be able
to survive and achieve its purpose. It is true in case of the India when Britishers transplanted
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their system of governance regardless of the nature of the Indian society. British democracy
stimulated after industrial revolution, when the middle class fought and gained some political
power. Later, the rise of the working class movement lead to the establishment of the universal
adult franchise, and representative form of democracy. However, in India, self- governing
communities existed and functioned for several centuries before the industrial revolution began.
Ancient Indian polity was based on the foundation of self-governing village communities, its
power was not based on central authority but by the willing consent of the families, which
constituted them. But strangely in India, after independence same system which was followed by
the British rule was followed.
Jayaprakash Narayan visualizes that India needs to reconstruct its political structure for
its development. Because, the Westminster model (inherited from British rule) as practiced in
India has not inherited any positive from Indias communitarian management of resources. After
all, democracy is about resource management. The official model of centralized resources could
be managed better if they are left to the responsibility of the communities. It appropriated all
resources surface based or underground based into the body of the representative powers
shared between the centre and the states. Here people become mere recipients of state power and
planning. That is why in the very first decade of independence, this model had trouble. To reduce
rural peoples passivity, it was felt that we must introduce decentralized democracy and planning
through panchayat raj institutions. In recent times, these bodies have become more representative
than participatory as envisaged in 1950s and 1960s. So, the question of making rural
development programme more participatory remains as it is, as an answer to that Jayaprakash
Narayan offers communitarian democratic model which is being discussed at length in this
chapter.
2. Objectives
After reading this Unit, You will be in a position to:
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3. Indian Polity
Jayaprakash Narayan wanted Indian polity to be reconstructed on the basis of ancient
Indian polity rather than on the basis of western polity, reason being:
3.3.1. Party System: Problem with party system is: i) the governments elected under universal
adult suffrage are actually minority governments, in the sense they represent minority voters. ii)
here the relation between state and individual is like arithmetical (as individual are seen as only
voters). iii ) in order to catch voters in election it creates an opportunity to indulge in half truths,
outright lies, etc. which will lead the society to a demagoguery rather than towards democracy.
iv) in running of the political parties they neither consider the opinion of the people nor even the
registered members. It is crme layer of the party who run the business on behalf of the people.
Moreover, these people keep party interest above national interest. iv) another major problem is
system of election, where it not only divides the people but also leads to fabulous expenses.
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Moreover, politically and economic issues which need to be discussed calmly but it is being
discussed with the public amidst the heat of election.
3.3.2. Bureaucracy: Western democracy leads to centralization of power at the hands of the
central or state governments (as it becomes the supreme authority on all matters) as a result the
government is left with over burden of work. So, the government is compelled to leave most of
their functions at the hands of bureaucracy. Who in course of time gather more power and turn
themselves to be autocrats. Moreover, as bureaucrats being appointed at various places and while
working they do not feel the sense of belongingness either with the community or with the place.
Thats why Jayaprakash Narayan asks for reconstruction of India polity, which is presently based
on western model. So his idea of reconstruction of the Indian polity is discussed below.
Jayaprakash Narayan pointed that India had emerged out of foreign rule, and the problem
of democracy was further complicated by its economic backwardness and the absence of recent
democratic experience. His argument revolved around two important terms Rajniti and
Lokniti. Rajniti meant party power, where as Lokniti was based on peoples power. Until the
British came in, much of India had a community oriented republic form of government, he said.
Self-development and self-regulation were distinguishing marks of ancient Indian polity. The
State interfered only when communities transgressed their own proper function and procedures,
which rarely happened. Jayaprakash Narayan believed that the model adopted by the ancient
Indian communities could be rejuvenated to solve present day development problems. However,
he clearly indicated that external agencies like the government, NGOs and voluntary
organiziations need to play an important role in reorganizing the communities, since present-day
communities were not united like old communities. Jayaprakash Narayan divided these
communities in two ways:
a. Territorial communities based on a strong territorial sense.
b. Occupational or functional communities, based on a strong sense of occupation.
Jayaprakash Narayan also saw Western communities more as segregated circles within a
boundary, existing autonomously. Indian communities, however, existed as convergence circles,
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where each community was intertwined with other communities. Based on this observation, he
built his argument on territorial communities.
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4.1.2. A regional community is one where a number of primary communities would come
together to co-operate and achieve the targets which are beyond the capacity of a primary
community. It would undertake high schools, an indoor hospital, power station and larger
irrigation works etc. Regional communities are not merely a sum of small primary communities,
but an integrated community by itself. They would function autonomously in those areas, which
are delegated by the primary community, and not as a higher authority that could interfere in the
internal affairs of primary community.
Politically, Panchyat Samities will govern at the regional community level and the village
councils, not its panchyat members, will elect its members. Planning and development of the
region is the responsibility of the regional community.
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institution would be integrated with the community to which it territorially belongs and it will
function according to the requirement of concerned community.
In each region, district, province and country there will be separate association of
ironworkers, carpenters, oil men etc. These communities or associations will unite and form
economic councils. The economic council of every community would advise and represent in the
communities political bodies like Panchayat Samiti, District Council, etc.
Let us return to Jayaprakash Narayans primary communities, the wider base of his
pyramid of power. Is this a romantic concept? Does have any relevance for contemporary
development? Here I will cite certain cases to prove that how Jayaprakash Narayan philosophy
has relevance.
Medha Patekar was once asked in an interview with the NDTV, who was your inspiration
for your Narmada Bachao Aadolan. She said: Jayaprakash Narayan. She was asked, if she would
think of Jayaprakash Narayans philosophy as romantic. She told the journalist that if you think
of romantic as one which is unrealizable, you should see the Swades film which depicts the true
life of what several villages in Sangli district did by forming a regional community and revived a
stream, set up a hydro-power unit in the early 1980s.
Rajinder Singh was inspired by Jayaprakash Narayans philosophy and his organisation
Tarun Bharat Sangh revived five rivers including Arvari, Bhagavani, Sariska
in the Alwar
district, not far from Delhi, and brought into life a variety of fish and other aquatic life. They had
to face the wrath of the contractors and the state government who were trying to gain access to
the same river resources and forest resources, which at one time were devastated by these forces.
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His organization initially set up many Pani Panchayats, reforested nearby forests, which actually
slowly helped the rivers to come into life with aqua life. Recently, to coordinate these primary
communities doing watershed activities, thrift societies involving women and dalits and to
prevent the degradation of forests, Sariska forest sanctuary was set up by the Tarun Bharat
Sangh. Adding to this the Tarun Bharat Sangh has set up a regional community called the Pani
Parliament (Arwari Sanshad) which is elected by 70 several primary communities managing
water-shed bodies located across 40 kms stretch of the river Arwari.
Rajinder Singh told further that he draws inspiration from Jayaprakash Narayans Lokniti
still. All these things are said easily, but was so difficult to set up anything like this. Initially
villagers would not listen to his philosophy from Jayaprakash Narayan. Later, when this
philosophy became successful, the foresters, politicians, mafia contractors would not allow them
to proceed further. That is why the Tarun Bharat Sangh decided to set up a bigger network like
Arwari Sanshad. How many times attempts were made at him to kill him? Once he was
interrogated in the local court, as the contractors foisted false cases, he was shot at. Luckily the
target was missed. It should be enough to show following Jayaprakash Narayans philosophy
one can achieve the desired ends even until today. Only one needs to face the initial difficulties
from various sources if the individual or the community is able to cross the hurdle than it is sure
of reaching the success. So, the Jayaprakash Narayans philosophy cannot be criticized for being
merely romantic it has more practicality in it.
6. Summing up
In conclusion, we can see that Jayaprakash Narayan is a critic of centralization drive of
planning process (which the Westminster Model upholds). On the other hand, he is also a critic
of decentralization drive of planning process. Here, the power is delegated to the lower level by
the centre and the people become just passive recipients of state power and planning, for eg:
Panchayat Raj Institutions have become an instrument at the hands of the state or the central
government for resource mobilization and common villagers wont find their voice in decision
making or implementation process of a programme. So, Jayaprakash Narayan explores middle
path through reconstruction of Indian polity, where he clarifies certain things like: a) power
should be evolved from bottom to top, and not devolved from top to bottom. b) minor
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development works like small irrigation projects, primary health centre, minor production of
electricity, etc. can be managed by the primary community itself. c) present day Indian villages
needs to be re-organized as they are not proper communities. In essence, he argues that very rural
development is not possible through liberal democracy (what we are following in India now), but
it is possible only when communitarian democracy comes into existence and the real power of
managing resources remains with the local people.
7. Keywords
1)
way. The centre of power remains with the highest authority in the top of the pyramedical
structure. This model of governance was brought to India by the Britishers and the same model
of governance is being continued even after independence.
2)
Lokniti: Lokniti means people power, which means the power actually belongs to the
people and it should floe to the top level through bottom up approach (where major chunk of
power remains at the bottom and lesser power is left at the top level). Jayaprakash Narayan
argues for such a kind of power arrangement through reconstruction of Indian polity.
3)
Rajniti: Rajniti literally means party power. Jayaprakash Narayan uses this term, because
he wants the party workers to work along with the villagers by educating them about their real
power (Lokniti) and helping them realize the goal of self- development. Thats why Jayaprakash
Narayan says Lokniti cannot be achieved without the help of rajniti.
4)
on the basis of caste, religion,etc). So, Jayaprakash Narayan wants through the help of Rajniti,
these traditional communities needs to be transformed into territorial communities (where the
feeling of oneness lies).
5)
like blacksmith, goldsmith, etc. Jayaprakash Narayan wants these communities to be the part of
territorial community, in order to guide and advice the political bodies in territorial communities.
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8. Model Questions
1) Critically examine the necessity for the reconstruction of Indian polity?
2) Explain in detail the stages of reconstruction of Indian polity?
3) Do you think Jayaprakash Narayan ideas are still relevant to the present society?
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1. Introduction
Agriculture means the activities of persons settled on the land, utilizing natural resources
for cultivation of the soil, to produce food, fodder and fibre crops. Agricultural sector in India
has rapidly changed since the green revolution. Earlier agriculture was a way of life, tradition
and the cultural and socio-economic life of the people in India. But now it has to compete with
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other sectors of economy. Agriculture continues to be largest living industry of India with more
than 50 percent population dependent on it.
2. Objective
This Unit deals with the importance of Green Revolution in Indian agricultural sector,
which transformed the nation from the importer of food grains to exporter of food grains and
made it self sufficient in food grains to feed its citizens. This development in agricultural sector
made the government to take various programmes to improve the standards of the people living
in rural areas.
There are various players today in the agricultural sector- the farmers, big and small; the
State through its policies and programmes, the Multinational companies selling seeds, fertilizers
and pesticides and the NGOs working with the farmers on alternative and sustainable agricultural
practices. In some regions, the government agencies are working with the NGOs for the
implementation of the programmes to eradicate poverty, such as Food for Work, Water Shed
Development, etc. In the post green revolution period, India assumed self-sufficiency in the
production of food grains, by using High Yielding Variety seeds. Green revolution has not only
affected the agriculture sector but also the industrial sector. The commercialisation of agriculture
has begun in a big way especially in the seed fertiliser, pesticides and relating sectors.
3. Agricultural Development
Independent India inherited a serious food problem. Levels of food grains production
were low and the periodic scarcities caused by droughts frequently held the threat of a famine.
The problem was compounded by the persistence of large scale poverty and unemployment of
the poorer classes whose incomes were insufficient to meet the food needs even when supplies
were adequate. During the 60s, it was possible to raise the levels of food grains production at an
impressive rate mainly through the expansion of areas under cultivation. But the food problem
remained because the incidence of poverty continued to be high despite the early successes of
planned economic development.
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To understand better the role of planned development, we have to know about various actions
taken by the Government of India in its various five year plans in view of agriculture and allied
sectors.
3.1
Overview of agriculture and its allied sectors in various Five Year Plans
In the First Five Year Plan 1951-56, the concentration was on agricultural production.
Large scale efforts were made for providing the food to its masses, through food distribution
network nationwide, community development programmes and bringing the fallow lands under
cultivation to increase the land use efficiency.
The Second Plan (1956-61) concerned about low land productivity and thrust on irrigated
agriculture and establishment of irrigation development programmes for the rain fed. Land
reforms laws (The Land Reforms Act of 1956 ) were made along with tenancy reforms and
ceiling on holdings. Co-operative development institutions and national extension service blocks
were created.
Training and extension work for the technology mere undertaken through
During the Third Plan (1961-66), food security concerns continued to dominate and
measures were taken for the improvement of technology to increase the land productivity by
bringing the waste land under cultivation. Intensive area development programme was adopted
for the selected districts and extension of non- agricultural activities in rural areas, bold approach
to integrated land policy and soil surveys were taken up.
The Fourth Plan (1969-74) emphasis on food security continued with efforts to ensure
requirement, as minimum dietary requirement concentration was on poverty regional inequality
and imbalances. Concern was more on irrigation and soil conversion in dry land regions.
Agricultural price policy was introduced. Second phase of land ceiling was implemented. Cooperatives were encouraged and institutional changes were made in agricultural credit, extension
and training.
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During the Fifth Plan (1974-79), twenty point economic programme was implemented,
the drought prone areas were given attention new inputs to dry farming and modernisation of
irrigation in selected irrigation command areas was undertaken.
The Sixth Plans (1980-85) major concern was to minimum needs programme providing
clean drinking water, elementary education and basic health facilities, attention was given to
unemployment and under employment groups. These groups were targeted under the poverty
alleviation programme like IRDP, NREP and RLEGP which were undertaken for the
employment and income generation. Drought prone areas continued to attract attention, more
attention was paid for lagging areas in the backdrop of green revolution.
The Seventh Plans (1985-90) major concerns were on poverty, unemployment, regional
imbalance, continued soil erosion and land degradation surfaced as major issues. Soil and water
conservation was given priority to save the land from degration. National watershed
development programme, oilseed and pulses development programmes, wasteland development
programmes were implemented and long term view of land management was initiated.
The Eighth Plan (1992-97) priorities were given to employment generation and
strengthening of infrastructure, liberalisation and globalisation in agricultural sector. Emphasis
on surplus agricultural production for exports and oilseeds sector increased. Horticulture sector
was encouraged and soil conservation merged with watershed programmes.
The Ninth Plan (1997-2002) priority was given to agriculture sector generating adequate
productive employment through employment assurance schemes. Accelerating growth with the
stable prices, food and nutritional security for vulnerable sections, providing basic needs for
environmental sustainability, growth with social justice and equity and export oriented growth
emphasis on horticultural crops for export, integrating watershed development programme across
various components, rethinking on land reforms, bringing of under-utilised land under
cultivation.
involvement of panchayat raj institutions to manage the village lands were emphasised.
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The Tenth Plans (2002-07) major concerns were on the revival of public investment in
irrigation capacity and water management, greater attention
increasing the irrigation potential through scientific watershed development and minor irrigation
programmes, efficient use of existing irrigation infrastructure through better and more
participative management practices.
infrastructure that supports not only agriculture but all rural economic activities.
Poverty
alleviation programme were reoriented so that they contribute more efficiently to the creation of
rural assets, both private and community owned. Third priority was for the development and
dissemination of agricultural technologies, strengthening of the agricultural research and
development system with special emphasis on bio-technology and significant improvement in
the degree of sophistication in the technology.
Finally, true potential of Indian agriculture can be realised only when there is
diversification of agricultural products both geographically and over time for which requisite
science and technology inputs will have to be provided along with appropriate supportive price
policies.
3.2 Green Revolution in Indias a background
The term "Green Revolution" is applied to the period from 1967 to 1978. Between 1947
and 1967, efforts at achieving food self-sufficiency were not entirely successful as the efforts
until 1967 largely concentrated on expanding the farming areas. In a perfect case of Malthusian
economics, population was growing at a much faster rate than food production. This called for
drastic action to increase food production. The Green Revolution phase became the turning
point in Indias agriculture.
Though the Indian farmer has been doing his best, shortages have recurred. India was a
massive importer, the import of food grains peaking at 10 million in 1966. Many countries of
course, helped, notably the USA with its massive PL-480 Programme. The Indian Government
gamely coped with the times. It was a decade of much hardship and morale sapping pessimism.
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Without understanding what PL-480 is, it is very difficult to understand the importance of
green revolution because prior to this India had not only to depend on import of food grains for
its citizens but was also humiliated.
The new Law created the Agricultural Trade Development and Assistance Act of 1954, to
solve the problems of surplus. First it was intended to create new markets for American products
in countries that would not be able to buy them. The American Government paid the American
farmers to sell crops to India. In addition to this, it provided business for ship-owners and
maritime unions, since it required that at least half of all PL-480 goods be transported in
American bottoms.
President Johnson was no longer willing to continue such large amounts of aid and
decided to change U.S policy in a radical way, conditioning food aid on economic performance.
1965 was an unfortunate year for India for the failure of monsoon caused a severe drought. The
U.S. was the only country that could provide the grains needed, asking for the additional aid to
be sent to India as part of an international effort.
The short tether (secure) policy, also known as the ship to mouth policy, meant that
food had to move directly from the ships to the mouths of the people to avoid famine. President
Johnson adopted this policy, with a new concept in food aid policy, referred to as self-help",
which meant the aid recipient countries had to make an effort to guarantee, that they will not
remain perpetually dependent on American aid. In the context of this policy, two objectives were
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framed for India. One is that the Indian Government should give priority to agriculture and raise
its food production, while the later objective was to have India obtain food aid from other
countries. The large amount of aid was sent to India for facing severe drought of 1965-67 and it
was the largest single recipient of food aid.
Johnsons short-tether policy succeeded, but at a cost. It achieved its first objective.
India changed its agricultural policy and implemented reforms; it experienced the Green
Revolution, increasing its food production and became self-sufficient in food production over a
decade. The second objective was also reached but in a more limited way, since a number of
countries provided a certain amount of assistance as a result of U.S. pressure. However, this
policy also had political costs, as India moved closer to U.S.S.R, because it did not support
America's attack on Vietnam. As a result, in spite of PL-480, the 70s saw a strain in IndoAmerican relations.
4. Governments Initiative
As Minister for Food and Agriculture(GOI), Shri. C. Subramaniam played a decisive
role in the introduction of high-yielding varieties of seeds and more intensive application of
fertilizers which paved the way for increased output of cereals in the later 60s and attainment of
self-sufficiency in food-grains for the country. He is the one under whose tenure the major public
agencies were established like CWC, FCI, CACP.
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Table 1: Production of food grains in million tonnes in India over a period of six decades
1950
1960
1970
1980
1990
2000
[mT]
50.8
82
108.4
129.6
176.4
201.8
4.8
10.4
7.5
0.8
0.3
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15.5
20.8
40
Population [m]
361
439
548
683
846
1000
(Source: www.indiagreenrevolution.in)
The term "Green Revolution" is a general one that is applied to successful agricultural
experiments in many Third World countries. It is not specific to India. But it was most successful
in India.
4.1 There are three basic elements in the method of the Green Revolution
Continued expansion of farming areas;
Double-cropping in existing farmland;
Using seeds of high yielding variety.
Continued expansion of farming areas
As mentioned above, the area of land under cultivation was being increased right from
1947. But this was not enough in meeting with rising demand. Other methods were required.
Yet, the expansion of cultivable land also had to continue. So, the Green Revolution continued
with this quantitative expansion of farmlands. However, this was not the most striking feature of
the Revolution.
Dams were built to arrest large volumes of natural monsoon water which were earlier being
wasted. Simple irrigation techniques were also adopted.
Using seeds with superior genetics
This was the main scientific aspect of the Green Revolution. The scientists developed a
number high yielding varieties (HYV), mainly for wheat and rice but also millet and corn.
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Crop areas under high-yield varieties needed more inputs viz., water, more fertilizer,
more pesticides, fungicides and certain other chemicals. This spurred the growth of the
local manufacturing sector. Such industrial growth created new jobs and contributed to
the country's GDP.
The increase in irrigation water requirement created need for new dams to harness
monsoon water. The water stored was used to create hydro-electric power. This in turn
boosted industrial growth, created jobs and improved the quality of life of the people in
villages.
India paid back all loans it had taken from the World Bank and its affiliates for the
purpose of the Green Revolution. This improved India's creditworthiness in the eyes of
the lending agencies.
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relatives in India. This not only helped the relatives but also added, albeit modestly, to
India's foreign exchange earnings.
4.4 Sociological results of the Green Revolution
The Green Revolution created plenty of jobs not only for agricultural workers but also
industrial workers by the creation of lateral facilities such as factories and hydro-electric power
stations as explained above.
India transformed itself from a starving nation to an exporter of food. This earned
admiration for India in the comity of nations, especially in the Third World.
The Green Revolution was one factor that made Mrs. Indira Gandhi (1917-84) and her
party, the Indian National Congress, a very powerful political force in India (it would
however be wrong to say that it was the only reason).
However, in today's globalised economic scenario, 100 per cent self-sufficiency is not
considered as vital a target as it was when the world political climate was more dangerous due to
the Cold War.
India has failed to extend the concept of high-yield variety seeds to all crops or all
regions. In terms of crops, it remain largely confined to foodgrains only, not to all kinds of
agricultural produce. In regional terms, only Punjab, Haryana and western Uttar Pradesh showed
the best results of the Green Revolution. The eastern plains of the river Ganges in West Bengal
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state also showed reasonably good results. But results were less impressive in other parts of
India.
Today, agricultural policy has come to mean corporate farming, capitalist agriculture, and
mechanization, development of horticulture, floriculture and fishery especially shrimp farming.
All these developments are targeted for exports. While the ratio of food grains and non-food
grains in the fifties was 70:30, it has now come down to 55:45; the production of the commercial
crops including coffee, tea, spices, vegetable, and gherkins grew by 23.48%. The government is
spending huge sums of money on research and development in technologies like BT cotton,
Vitamin A rice and by making the farmers change their traditional agricultural practices. For the
commercial crops, pesticides are used extensively causing the damage to the environments, soil
fertility and also the life of the farmers. Commercialization of agriculture leads to the emergence
of the middlemen mechanism.
The panchayati raj and the community development are often described as twin pillars of
rural development. Both panchayati raj and community development were based on
decentralisation, devolution and democratisation of power and responsibility for the specific
purpose of planning and implementing of rural development and welfare programme with
people's participation and active co-operation.
It was only during the seventies that the government recognised the role of voluntary
agencies in supplementing governments effort in rural development. Prior to this, the NGOs
formed by religious institutions and enlightened public were involved in operating hospitals and
educational institutions. With assistance from international donor agencies, the Ministry of
Agriculture formed an independent organisation called Freedom from Hunger Campaign to
support the voluntary organisations involved in rural development. This Organisation was reorganised and renamed as Peoples Action for Development-India (PAD-I). PAD-I was merged
with Council for Advancement of Rural Technology in 1986 and renamed as Council for
Advancement of Peoples Action and Rural Technology (CAPART). Since then, CAPART has
been providing financial assistance to voluntary agencies engaged in rural development. In the
last two decades, several initiatives of the non-government organisations have had significant
impact on the development. Widespread success of these initiatives have now encouraged many
state governments to launch schemes to promote peoples participation and several centrally
sponsored schemes have stipulated the development of community based organisations to plan
and implement the programme. With better opportunities for promoting self-employment
through investment in agriculture and micro-enterprise, facilities were created for availing soft
loans from banks and other financial institutions. Nevertheless, as the formal banking operations
were not convenient for many villagers because of their rigidity, distance and high cost of
operation, several innovative banking institutions have been established by the NGOs.
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By the end of the First Five Year Plan (1952-57), 1114 blocks covering 163,000 villages
were in operation and by sixties, the community development programme covered the entire
country. The programme was characterised by the following features: comprehensive in content;
economic progress as the core objective; flexible programmes and posting of a multipurpose
worker at the village level. The plan defined the central objective of planning as creation of
conditions in which living standards are reasonably high and the citizens have full and equal
opportunity for growth and justice.
These programmes were aimed at uplifting of the rural poor by covering agriculture,
animal husbandry, roads, health, education,
activities. While aiming at economic development through agriculture and cottage industries,
efforts were made to improve literacy, health, sanitation, housing, transport and communication.
To implement the multifaceted programme, an extension organisation, headed by a Block
Development Officer (BDO) was established at each block or the revenue tehsil, with a team of
subject specialists and village level workers (VLW). Each VLW covered a population of 50006000, spread over 5-10 villages to implement various development programmes launched by
different departments. The VLWs were expected to meet the farmers and persuade them to take
part in various development schemes. The BDO was assisted by eight Extension Officers, one
each for agriculture, animal husbandry, panchayat, cooperation rural industries, rural
engineering, social education and women and child welfare. In addition, a medical officer with
support staff was posted in each block to provide medical assistance.
The extension officers reported primarily to the BDO and to their senior as well, in the
respective department, based at the district headquarters. The BDOs reported to the District
Collector, who is the administrator of the district. The Development Commissioner, at the state
level was responsible for coordinating community development through the District Collectors.
At the National level, the administration of the community development programme was
entrusted to the Planning Commission.
Table 2: Multi level planning frame work for the community development programme in
India
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Level
Administrative
(Government)
Nation
Planning Commission
Prime
Minister/Chairman
Planning Commission
State
Development Commissioner
District
District
Consultative Committee
Collector/Chief District
Development
Committee
Block
Village
During the initial phase of community development, the government officials prepared
the plan under the guidance of the Planning Commission. There was no opportunity for the
community to demand any facilities to solve their problems. As the intention was to ensure
peoples participation, advisory committees were subsequently established at various levels. A
state level consultative committee consisting of state legislators was constituted for advising on
community development. District development or planning committee consisting of officials and
non-officials was formed under the chairmanship of the collector. A block level advisory
committee was constituted with block level officers and non-officials, member of the parliament
and state legislators, heads of educational institutions, progressive agriculturists and
representatives of voluntary organisations. As the non officials were generally interested in
matters of personal concern, they did not look at their roles in the proper perspective.
Furthermore, as the development programmes approved at the central and state level were rigid,
the consultation process remained merely an academic exercise.
From 1950s till mid 1970s, there was no significant achievement and poverty was on the
verge of increasing. The Indian economy had become slower compared to those in the East and
South East Asia over the post independence period. The levels of living were unacceptably low
for a large section of the population. The Land Reforms Act of 1956 did remove vestiges of the
feudal-colonial rule from the scene, but the enactment of the laws did not help the poor and
landless to gain control over the land, particularly in North India. There were fluctuations in the
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poverty status but the most prominent increase in poverty was observed in the late sixties and
early seventies (55% - 69%), when rainfall levels were less than normal and monsoon failures
prolonged beyond a year. Even the core programme of agricultural development failed to
enhance food production. In early seventies, India was compelled to import food grains.
Trickling benefits of development were wiped out by the growing population. Improvement in
agricultural productivity improvement in the absence of education and infrastructural
development was not sustainable. The resources allotted for community development during
1952-67 were also so low that it worked out to hardly Rs.10 per head over this period.
During most of the five year plans, there were attempts to address the issue of rural
development and food security through various schemes and programmes as seen in the Table: 3.
The Plans recognized that rural development along with agricultural policy and food security
were linked.
Table3: Plan-wise Programmes
Five Year Plan
Programme
Year
First
1952
Second
1959
Third
Intensive
Agricultural
Deveopment 1961
Programme(IADP)
1964
1966
1969
1970
1972
1974
1975
1977
Integrated
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Rural
Development 1978
49 | P a g e
Sixth
National
Rural
Employment 1980
Programme(NREP)
1982
1983
Rural
Landless
Employment
Guarantee
Programme (RLEGP)
Seventh
Eight
Nineth
Tenth
National
Rural
Employment
Programme(NREGPA)
Guranatee 2004
2007
The major factor influencing the successful implementation of rural development in India
is motivation of the poor families to ensure their active participation. Development of suitable
peoples organisations is also necessary to avail the benefits of various schemes, particularly by
the illiterate poor. To ensure peoples involvement in the development process and to take them
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into confidence, they should be involved in the programme, right from the stage of planning.
Several innovative programmes implemented on a pilot scale have shown that many rational
suggestions made by even the poor people can be easily implemented to produce good results.
Such an approach demands flexibility in the programme. The target families should be motivated
to assume the responsibility of implementing the programme, while the implementing agencies
should play the role of a catalyst. In this task of integrated rural development, voluntary agencies
can play an important role.
The government has made constant attempts to promote values like democracy, freedom
from discrimination, self-reliance and independence of thought. It has also tried to improve the
lot of the poor and weaker sections of society and women and children have figured prominently
in the governments agenda of social reforms and initiatives.
The role of non-governmental organizations in India has been very important in situations
of widespread poverty and deprivation, exploitation and discrimination. The state has not been in
a position to ameliorate poverty and the NGOs have stepped in to provide basic health and
childcare services, running homes for the destitute and distressed and providing education and
training opportunities at a same time. These NGOs have also been working towards building a
more humane society free from exploitation.
There are many NGOs which are working in the area of agriculture and community
development programmes, few of such these are listed below:
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Deccan Development Society, M.S. Swaminatham Foundation, Navadanya ,Centre for World
Solidarity etc.,
Apart from these organisations there are many farmer orgnisations which from time to
time to check and agitate against the government policies and these farmers organisations are
either affiliated to political party are independent. Here are the few farmer organisations in India
Bharatiya Kisan Union known as B.K.U. in Punjab and Haryana, Shetkari Sangathan in
Maharashtra, Khedat Samaj and Bhartiya Kisan Sangh in Gujarat, Tamil Agricultural
Association in Tamil Nadu, Karnataka Rajya Raiyet Sanghtana in Karnataka, Raitu Sangham,
Telugu Raitu and Raitu Kuli sangham in Andhra Pradesh, All India Kisan Sabha and Rastriya
Kisan Manch in Haryana, Uttar Pradesh Kisan Manch, Krishi Jeevi Sanghatan, the Hind Kisan
Sangathana, and the Kisan Mazdoor Sanghatan in Bihar, the Bharatiya Kranti Kari Sanghatn, the
Uttar Bang Tabsiti and Adivasi Sanghtan in West Bengal, Kisan Adivasi Sanghatan in Madhya
Pradesh etc.,
7. Summing up
This Unit will give the basic knowledge about the importance of the Green revolution,
its history and its relevance in Indian agriculture and the role of government and non government
agencies working for the agriculture sector. Though the various programmes implemented by
the government still they are far from the reach of the poor and the gap between them is filled by
the NGOs and other voluntary organisations helping the government to implement the
programmes. The other chapters of this course will elaborate the about the developments done
in various five year plans for the rural development in the country.
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Dreze, Jean and Amartya Sen (1989), Hunger and Public Action, Oxford
University Press, New Delhi.
Dreze, Jean and Amartya Sen(1990), The Political Economy of Hunger, New
York: Oxford University Press.
Krishnaji, N and T.N.Krishnan (2000), Public Support for Food Security: Public
Distribution System in India, Sage Publications, New Delhi.
Yojana
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Kurushetra
Abbrevations
CACP
FCI
MSP
HYV
CWC
IARI
BDO
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Finance being the most crucial and critical inputs for economic activity, growth and
development, has to be adequately understood so that the resources could be properly mobilized
and unitized. For effective rural development, fund acquisition and management is very
important.
While the economy is growing quite fast, there are unresolved issues of sharing of the
fruits of development by all the sections of the society. It is said that there cannot be any
development without growth, however growth is possible without development.
This Block is divided into following three Units:
Unit- 1: Five Year Plans and Rural Development
Unit - 2: Democratic Decentralisation: Peoples Participation and Panchayati Raj
Unit -3: Funds, Loans and Micro Finance.
Unit - 4: Right based approach Inclusive Growth and Development Strategies and
Approaches
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Structure
1. Introduction
2. Objectives
3. Planning for Rural Development
4. Planning, Poverty and Rural Development
4.1. Historical trend
4.2. Role of Plans for alleviation of poverty
5. Strategies and Programs for Rural Development
6. Five Year Plans and Rural Development
6.1. First Five Year Plan
6.2. Second Five Year Plan
6.3. Third Five Year Plan
6.4. Fourth Five Year Plan
6.5. Fifth Five Year Plan
6.6. Sixth Five Year Plan
6.7. Seventh Five Year Plan
6.8. Eighth Five Year Plan
6.9. Ninth Five Year Plan
6.10. Tenth Five Year Plan
6.11. Eleventh Five Year Plan
7. Five Year Plans: An assessment
8. Summing up
9. Know Your Progress / Model Questions
10. Further Readings / References
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1. Introduction
India opted for planning as a strategy for faster, equitable and inclusive development
since independence. India is continuing today with emphasis on planning as it helped us to
achieve development goals. An evaluation five year plans in India broadly tells us that planning
by and large succeeded in drastically reducing poverty in rural areas. In 1951, the first Five Year
Plan was announced and the then Prime Minister, Jawaharlal Nehru was the Chairman of that
Planning Commission. The Planning Commission has helped in the better utilization of the
country's resources for the common good of the citizens. It is considered by many as the
backbone of the country's progress and all-round development. The Commission was established
in order to bring about a steady and swift rise in the living standards of Indian citizens. So far,
ten five year plans are implemented and the Eleventh Plan is under implementation. This Unit
discusses the goals of planning with particular reference to rural development.
2. Objectives
List some major programmes to bring development in rural areas since 1950s.
Attempt an estimation of contributions of ten five year plans for rural areas development.
State the plan wise resource allocation of the eleven five year plans in India.
Identify the programs undertaken by the Government of India under each five year plan.
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The basic objectives of rural development programmes have been alleviation of poverty
and unemployment through creation of basic social and economic infrastructure, provision of
training to rural unemployed youth and providing employment to marginal farmers/labourers to
discourage seasonal and permanent migration to urban areas.
As part of the planning objectives in India, rural planning needs to reflect growth and
social justice. Growth in the rural sector is the key to social and economic development.
The Government of India has stated its policy objective as achieving 'Samagra Gramin
Vikas' (all round rural development) which means catering to the basic necessities and demands
of the rural scenario. The Ministry of Rural Development has been playing a key role in
organizing life improvement programs and other schemes for the development of rural India.
Planning for rural development in India is based on various issues. The chief areas of
development include:
Poverty reduction
Employment generation
The Planning Commission has helped in the better utilization of the country's resources
for the common good of the citizens. It is considered by many as the backbone of the country's
progress and all-round development. In India, planning is undertaken by the Planning of India in
order to improve the standard of living of the people belonging to the country. To improve the
quality of life of the people, the resources of the country have to be utilized efficiently.
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The planning has been done in various areas such as sports, education, labor, health,
village industry, urban development, rural development, agriculture, industry, information
technology, environment, real estate, infrastructure, and finance. The Planning Commission has
been set up in March, 1950 and it undertook to draw up 5 year plans for developing the Indian
economy. In these plans, the Planning Commission of India land emphasis to industry,
employment, agriculture, education, and health. Till 2007, there have been 10 five year plans. All
these plans have helped improve the quality of life of the people of India.
For rural development planning, up a Rural Planning and Credit Department has been set
up which is under the Reserve bank of India. This Department formulates polices which help in
rural development. It also extends credit for employment programs and agricultural activities in
rural areas. Under India planning, local bodies have been set up in all states in order to develop
urban areas. These urban local bodies such as the municipal corporation and the Panchayat see to
it
that
the
services
and
basic
Infrastructure
are
well
maintained.
The planning has helped improve the quality of life of the people. The Indian government
must make efforts so that it continues to do. The planning has facilitated the utilization of the
resources of the country for the common good of the people and also to develop the country.
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beginning of the planning era. Accordingly, the Government has lunched various programs from
time to time at alleviation of poverty and unemployment. The programs have been modified,
consolidated, expanded and improved over time. Extreme poverty continues to be a rural
phenomenon despite increasing urbanization. Most of the worlds poor live in rural areas. Since
its independence, the issue of poverty within India has remained a prevalent concern, According
to the common definition of poverty, when a person finds it difficult to meet the minimum
requirement of acceptable living standards; he or she is considered poor. A number of factors are
responsible for poverty in the rural areas of India. Rural population primarily depends on
agriculture, which is highly dependent on rain patterns and the monsoon season. Inadequate rain
and improper irrigation facilities can obviously cause low, or in some cases, no production of
crops. Additionally, the Indian family unit is often large, which can amplify the effects of
poverty. Also the caste system still prevails in India, and this is also a major reason for rural
poverty-people from the lower castes are often deprived a number of facilities and opportunities.
The World Bank estimates that 42% of the total Indian population now lives under the
global poverty line. This means that a third of the global poor now reside in India. However, this
also represents a significant decline in poverty from 60 percent in 1981 to 42 percent in 2005.
The Planning Commission of India has estimated that 27.5% of the population was living below
the poverty line in 20042005, down from 51.3% in 19771978, and 36% in 1993-1994. 75% of
the poor are in rural areas, most of them are daily wagers, self-employed householders and
landless laborers.
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income poverty declining from 51% to 39%. It went down further to 34% by 1989-90. Urban
income poverty went down from 41% in 1977-78 to 34% in 1986-87, and further to 33% in
1989-90.
After 1991: This post-economic reform period evidenced both setbacks and progress.
Rural income poverty increased from 34% in 1989-90 to 43% in 1992 and then fell to 37% in
1993-94. However, the official estimate of poverty for 1999-2000 was 26.1%, a dramatic decline
that led to much debate and analysis. Thus, poverty has declined after 1998, although it is still
being debated whether there was any significant poverty reduction between 1989-90 and 19992000.
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The Government has also continued to provide institutional security for the rural poor. Broadly it
can be said that the five year plans helped to strengthen the living standard of the people. The
fight for the alleviation of poverty by the five year plans can be said as a success that is one of
the reasons why state intervention through five year plans is justified
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point for co-ordination of all efforts at generation and dissemination of technologies relevant to
rural development in its wide sense and assist and promote programmes aimed at conservation of
the environment and natural resources.
However, various ministries in the central government are engaged directly or indirectly
for implementation of many programmes and schemes for the development of rural areas like
Ministries of Agriculture, Health and Family Welfare, New and Renewable Energy, Science and
Technology, Women and Child Development and Tribal Affairs etc. In addition, to strengthen
the grass root level democracy, the Government is constantly endeavoring to empower
Panchayati Raj Institutions in terms of functions, powers and finance. Gram Sabha, NGOs, SelfHelp Groups have been accorded adequate roles to make participatory democracy meaningful
and effective.
The rural economy is an integral part of the overall Indian economy. As majority of the
poor reside in the rural areas, the prime goal of rural development is to improve the quality of
life of the rural people by alleviating poverty through the instrument of self-employment and
wage employment programmes, by providing community infrastructure facilities such as
drinking water, electricity, road connectivity, health facilities, rural housing and education and
promoting decentralization of powers to strengthen the Panchayati raj institutions etc. There are
so many programs initiated by the Government of India. Some of the programs for rural
development are discussed below:
Integrated Rural Development Program (IRDP): First introduced in 1978-79, IRDP has
provided assistance to rural poor in the form of subsidy and bank credit for productive
employment opportunities through successive plan periods. Subsequently, Training of Rural
Youth for Self Employment (TRYSEM), Development of Women and Children in Rural Areas
(DWCRA), Supply of Improved Tool Kits to Rural Artisans (SITRA) and Ganga Kalyan Yojana
(GKY) were introduced as sub-programs of IRDP to take care of the specific needs of the rural
population.
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Employment Assurance Scheme (EAS): EAS was launched in October 1993 covering
1,778 drought-prone, desert, and tribal and hill area blocks. It was later extended to all the blocks
in 1997-98. The EAS was designed to provide employment in the form of manual work in the
lean agricultural season. The works taken up under the program were expected to lead to the
creation of durable economic and social infrastructure and address the felt-needs of the people.
Food for Work Programme: This Programme was started in 2000-01 as a component of
the EAS in eight notified drought-affected states of Chhattisgarh, Gujarat, Himachal Pradesh,
Madhya Pradesh, Orissa, Rajasthan, Maharashtra and Uttarankhand. The programme aims at
food provision through wage employment. Food grains are supplied to states free of cost.
However, lifting of food grains for the Scheme from Food Corporation of India (FCI) godowns
has been slow.
Rural Housing: Initiated in 1985-86, the IAY is the core programme for providing free
housing to families in rural areas. It targets scheduled castes (SCs)/scheduled tribes (STs),
households and freed bonded laborers. The rural housing programme has certainly enabled many
BPL families to acquire pucca houses. The coverage of the beneficiaries is limited given the
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resource constraints. The Samagra Awas Yojana (SAY) was taken up in 25 blocks to ensure
convergence of housing, provision of safe drinking water, sanitation and common drainage
facilities. The Housing and Urban Development Corporation (HUDCO) has extended its
activities to the rural areas, providing loans at a concessional rate of interest to economically
weaker sections and low-income group households for construction of houses.
Social Security Programs: Democratic decentralization and centrally supported Social
Assistance Programmes were two major initiatives of the government in the 1990s. The National
Social Assistance Program (NSAP), launched in August 1995 marked a significant step towards
fulfillment of the Directive Principles of State Policy. The NSAP has three components: a)
National Old Age Pension Scheme (NOAPS); b) National Family Benefit Scheme (NFBS); c)
National Maternity Benefit Scheme (NMBS). The NSAP is a centrally-sponsored programme
that aims at ensuring a minimum national standard of social assistance over and above the
assistance that states provide from their own resources. The NOAPS provides a monthly pension
of Rs. 75 to destitute BPL persons above the age of 65. The NFBS is a scheme for BPL families
who are given Rs. 10,000 in the event of the death of the breadwinner. The NMBS provides Rs.
500 to support nutritional intake for pregnant women. In addition to NSAP, the Annapurna
Scheme was launched from 1st April 2000 to provide food security to senior citizens who were
eligible for pension under NOAPS but could not receive it due to budget constraints.
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plans had been formulated. After that, there was a pause in the launch of 5 year plans in India
due to the Indo-Pakistan war. Again, in 1969, the Fourth Five Year Plan was launched. The
Planning Commission has helped in the better utilization of the country's resources for the
common good of the citizens. It is considered by many as the backbone of the country's progress
and all-round development. So far ten five year plans are implemented and the Eleventh Plan is
under implementation.
The target of GDP growth in the First Plan was 2.1% per year and the actual growth of
GDP that was achieved had been 3.6% per year. This shows the extent to which the First Plan in
India had been successful.
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context of rural development, the Panchayati Raj institutions were activated. Land reform
measures have been taken during the period of this Plan in order to remove the socio-economic
constraints
of
the
rural
population.
The Second Plan has, to a large extent, improved the living standards of the people.
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Under this Plan, target group oriented programs were introduced. The target group
consisted of small farmers, marginal farmers, agricultural laborers, scheduled castes and
scheduled tribes. Minimum needs programme was introduced for providing basic social services
like elementary education, rural health, rural roads, rural water supply, rural electrification and
rural housing. The Fifth Plan's total outlay was Rs. 39,303 crores and the plan outlay for rural
development was Rs. 4,644 crore. Some of the major programs undertaken by the Government
of India under this plan are:
Desert Development Programme (DDP)
Integrated Rural Development Program (IRDP)
6.6. Sixth Plan (1980-1985)
The Sixth Plan was undertaken with the main aim of attaining objectives like speedy
industrialization, rise in the employment level, poverty reduction, and acquisition of
technological self-reliance. Rajiv Gandhi, the then Prime Minister prioritized speedy industrial
development, with special emphasis on the information technology sector. The total plan outlay
for the Sixth Plan was Rs. 90,000 crores. The objectives of the Sixth Plan for rural development
were:
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Anti-poverty programmes basically meant for rural areas to alleviate rural poverty
Some of the major programs undertaken by the Government of India under this Plan
were:
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Some of the major programs for rural development undertaken by the Government of India
under this plan are:
Jawahar Rozgar Yojana (JRY)
Indira Awaas Yojana (IAY)
6.9. Ninth Plan (1997-2002)
Ninth Plan had the main aim of attaining objectives like speedy industrialization,
human development, full-scale employment, poverty reduction, and self-reliance on domestic
resources. The main feature of the Ninth Plan is that our nation crossed the fifty years of
independence and this called for a whole new set of development measures. There was a fresh
felt need for increasing the social and economic developmental measures. As a result in the
Ninth Plan, the emphasis was on human development, increase in the growth rate and adoption
of a full scale employment scheme for all. For such development one needs to promote the social
sectors of the nation and to give importance to the eradication of poverty. The total Plan outlay
for the Ninth Plan was Rs. 4, 89,361 crore. The main objectives of the Ninth Plan for rural
development were:
To stabilize the prices in order to accelerate the growth rate of the rural economy.
To provide the basic infrastructural facilities to the rural people like education for
all, safe drinking water, primary health care, transports.
To create a liberal market for the rural people for increase in private investments.
Some of the major programs for rural development undertaken by the Government of
India under this Plan were:
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Pradhan Mantri Gram Sadak Yojana(PMGSY)- Prime Minister Rural Roads Scheme
District Rural Development Agency(DRDA)
by 2007
Reduction in the decadal rate of rural population growth between 2001 and 2011
to
16.2%
All villages to have sustained access to potable drinking water within the Plan
period
Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012
Economic growth further accelerated during this period and crosses over 8% by
2006
Some of the major programs for rural development undertaken by the Government of
India under this Plan were:
Pradhan Mantri Gramodaya Yojana (PMGY) (Rural Shelter Component)
Rashtriya Sam Vikas Yojana (RSVY)
Central Rural Sanitation Programme
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Reduce dropout rates of children from elementary school which is high at rural
areas from 52.2% in 2003-04 to 20% by 2011-12
Reduce anaemia among women and girls which is high at rural areas
Ensure that all children enjoy a safe childhood, without any compulsion to work
in rural areas
Ensure electricity connection to all villages and BPL households by 2009 and
round-the-clock power.
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Some of the major programs for rural development undertaken by the Government of
India under this Plan are:
Agricultural and Rural Debt Relief Scheme
Bharat Nirman
By the beginning of the Third Plan, Indian planners felt that the Indian economy had
entered the take-off stage and that the first two plans had created an institutional structure upon
which further progress could be made. Consequently, the third plan aimed at the establishment of
self-reliant and self-generating economy. The experience of the earlier plans suggested that
agriculture should be assigned top priority. The Third Plan accordingly gave top priority to
agriculture together with emphasis on the development of basic industries. The over-ambitious
Plans from 1951 to 1966 met with a number of problems and failures. The Plans were unable to
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full fill the expectations of the common people; several difficulties and bottlenecks, especially
during the Third Plan, such as inflation, wars, droughts during 1963/ 64 and 1965/66, and nonachievement of targets etc. seriously disturbed the economy as well as society. In spite of
massive investment during the three plans, the living standard of the masses was not improved.
Poverty and inequalities in the distribution of income and wealth remained as acute as before.
Unemployment increased from 5.3 million in 1956 to about 9.6 million in 1966.
During that period, three annual plans were implemented: the Fourth Plan, which was due
in 1966, and a draft outline of what had been prepared, was postponed until 1969 for the revision
of objectives and priorities.
The Fourth Plan (1969-1974) was aimed at accelerating the tempo of development in
conditions of stability and at reducing fluctuations in agricultural production as well as the
impact of uncertainties in foreign aid. Its objectives were to raise the standard of living through
programmes which were, at the same time, designed to promote equality and social justice. The
Plan laid particular emphasis on improving the conditions of the less privileged and weaker
sections of society, especially through the provisions of employment and education. Efforts were
also directed towards reducing the concentration, and bringing about a wider diffusion, of
wealth, income and economic power. The average annual growth rate envisaged was 5.7 per
cent. The special programmes introduced for the poor during the Fourth Plan may be categorized
as area development programmes and family beneficiary programmes. The basic objectives
of those special programmes were the transfer and creation of assets, skills development and
creation of infrastructure as well as directly taking up developmental works in the backward
areas. The Fifth Plan (1974-1979) faced a major economic crisis which arose from inflation
fuelled by the hike in crude oil prices. The final draft of the Fifth Plan proposed the achievement
of two main objectives: (a) the removal of poverty; and (b) the attainment of self-reliance
through a higher rate of economic growth, better distribution of income and a significant step-up
in the domestic savings rate. The Fifth Plan was, however, terminated in 1978 and the concept of
rolling plans was introduced. The first of the new Plans sought to reconcile the objectives of
higher production with those of greater employment. The focus was the enlargement of the
employment potential in agriculture and allied activities, encouragement to the household sector
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and small industries producing goods for mass consumption, and the raising of the incomes of
the poor through a minimum needs programme.
The Sixth Plan (1980-1985) had the removal of poverty as its foremost objective even
though it was recognized that the task could be accomplished only in the long term. The strategy
adopted for the Sixth and the Seventh Plans essentially comprised of: (a) moving simultaneously
towards strengthening the infrastructure for agriculture and industry, in order to create conditions
for an accelerated growth in investments, output and exports; and (b) through special
programmes designed for the purpose, providing increased opportunities for employment,
especially in the rural areas and the unorganized sector, and meeting the minimum basic needs of
the people. The Eighth Plan recognized human development as the ultimate goal of planning.
Employment generation, population control, literacy, education, health, the supply of drinking
water and adequate food, and basic infrastructure were listed as priorities. Ninth Plan ran through
the period from 1997-2002 with the main aim of attaining objectives like speedy
industrialization, human development, full-scale employment, poverty reduction, and selfreliance on domestic resources. The main feature of the Ninth Plan is that our nation crossed the
fifty years of independence and this called for a whole new set of development measures. There
was a fresh need felt for increasing the social and economic developmental measures. As a result
in the Ninth Plan, the emphasis was on human development, increase in the growth rate and
adoption of a full scale employment scheme for all. For such development one needs to promote
the social sectors of the nation and to give importance to the eradication of poverty. The Tenth
plan (2002-2007) aimed to transform the country into fastest growing economy of the world and
targets an annual economic growth of 10%. The Eleventh Plan (2007-2012) is under
implementation now. We have already crossed three years of this Plan period. This Plan
especially emphasizes on the GDP growth rate. It can also focuses on the development of
villages through modern communication and technology like the telephone and broadband
connection etc along with sufficient employment opportunities for the rural unemployed.
8. Summing up
Rural development aims at improving rural peoples livelihoods in an equitable and
sustainable manner, both socially and environmentally, through better access to assets and
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services, which enable them to improve their livelihoods on a sustainable and equitable basis.
India opted for planning as a strategy for faster, equitable and inclusive development since
independence. India is continuing today with emphasis on planning as it helped us to achieve
development goals. An evaluation of five year plans in India broadly tells us that planning by
and large succeeded in drastically reducing poverty in rural areas. The Government of India has
undertaken 195 programs for rural development under the five year plans. In the sphere of rural
development, one can assume that all the programmes undertaken by the Government of India
for the development of rural areas are under the five year plans. So five year plans in India have
made a great contribution in the development of rural communities.
9. Keywords
Planning, Five Year Plans, Rural Poverty, Rural development.
2.
What is the role of five year plans in India for rural development?
3.
4.
Summarize the Five Year Plans of India with their main objectives?
5.
What are the major programs undertaken by the Government of India for the eradication
of rural poverty? Is it a success or a failure?
Mellor. John, Weaver. Thomas, Lele.Uma & Simon.S. (1972) Developing Rural
India: Plan and Practice, Lalvani Publishing House, Bombay.
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Web Sources
Website of the Planning Commission, India (http://planning commission.nic.in)
Website of the Ministry of Rural Development, Government of India
(http://rural.nic.in)
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15.4 Planning
15.5 Implementation of Programmes
15.6 Gram Sabhas
15.7 Involvement of Women
15.8 Reservations for Scheduled Castes/Tribes
15.9 Elections
15.10 Audit
15.11 Capacity-Building and Training
16. Summing up
17. Know Your Progress / Model Questions
18. Keywords
19. Further Readings / References
1. Introduction
Decentralisation is one of the most significant theme in democracy and democratic
governance. With the growth of modern state, peoples involvement is advocated and it is
required to set up a transparent, responsive and accountable government to ensure good
governance. Decentralisation brings government closer to the people. The existence of local
political arenas makes it easier for ordinary citizens to participate and exert influence. When
power is brought closer to the citizens, the political process becomes more tangible and
transparent and more people can become involved.
Decentralisation may also create a more open political system in that it implies a division
of powers in society; many channels of representation and power sharing becomes available.
This counteracts the monopolisation of power by certain elite groups, often the consequence of
centralised political and administrative structures. It promotes participation and improves the
controlling function held by the lower levels of the political system. In addition to such
consequences, which have obvious democratic merits, decentralisation can also be an effective
means of enhancing state capacity. The legitimacy of public bodies may be considerably boosted
by the greater involvement and influence of ordinary people due to the greater proximity to
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politics that decentralisation entails. This tends to strengthen the states capacity for
implementation and making policy implementation easier.
2. Objectives
After reading this Unit, you will be in a position to:
Better penetration of national policies from the centre to the remote villages;
Strengthening the capacity of the local institutions and their different skills;
Reduction of the cost of planning and increase the number of public goods
and
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the first Prime Minister of India advocated for democracy at the lower level and opined that local
self government was and must be the basis of any true system of democracy.
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The panchayat had never been the priority of the British rulers as they were interested in
the creation of 'controlled' local bodies, which could help them in their trading interests by
collecting taxes for them. When the colonial administration came under severe financial pressure
after the 1857 uprising, the remedy sought was decentralisation in terms of transferring
responsibility for road and public works to local bodies. However, the thrust of this 'compelled'
decentralisation was with respect to municipal administration.
Viceroy Lord Mayo's Resolution in 1870 (for decentralisation of power to bring about
administrative efficiency in meeting people's demand and to add to the finances of colonial
regime) gave the needed impetus to the development of local institutions. It was a landmark in
the evolution of colonial policy towards local government. The real benchmarking of the
government policy on decentralisation can, however, is attributed to Lord Ripon who, in his
famous resolution on local self-government on May 18, 1882, recognized the twin considerations
of local government: (i) administrative efficiency and (ii) political education. The Ripon
Resolution, which focused on towns, provided for local bodies consisting of a large majority of
elected non-official members and presided over by a non-official chairperson. This resolution
met with resistance from colonial administrators. The progress of local self-government was
tardy with only half-hearted steps taken in setting up municipal bodies. Rural decentralisation
remained a neglected area of administrative reform.
The Royal Commission on Decentralization (1907) under the chairmanship of Hob
house recognized the importance of panchayats at the village level. The Commission
recommended that "it is most desirable, alike in the interests of decentralisation and in order to
associate the people with the local tasks of administration that an attempt should be made to
constitute and develop village panchayats for the administration of local village affairs".
But, the Montague-Chelmsford Reforms (1919) brought local self-government as a
provincial transferred subject, under the domain of Indian ministers in the provinces. Due to
organisational and fiscal constraints, the reform was unable to make panchayat institutions truly
democratic and vibrant. However, the most significant development of this period was the
'establishment of village panchayats in a number of provinces, that were no longer mere ad hoc
judicial tribunal, but representative institutions symbolising the corporate character of the village
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and having a wide jurisdiction in respect of civic matters'. By 1925, eight provinces had passed
panchayat Acts and by 1926, six states had also passed panchayat laws.
The provincial autonomy under the Government of India Act, 1935 marked the evolution
of panchayats in India. Popularly elected governments in provinces enacted legislations to
further democratise institutions of local self-government. But the system of responsible
government at the grassroots level was least responsible. D.P. Mishra, the then Minister for
Local Self-Government in Central Provinces was of the view that 'the working of our local
bodies... in our province and perhaps in the whole country presents a tragic picture...
'Inefficiency' and 'local body' have become synonymous terms....'
In spite of various committees such as the Royal Commission on Decentralization (1907),
the report of Montague and Chelmsford on constitutional reform (1919), the Government of
India Resolution (1918), etc., a hierarchical administrative structure based on supervision and
control evolved. The administrator became the focal point of rural governance. The British were
not concerned with decentralised democracy but were aiming for colonial objectives.
The Indian National Congress (1920s to 1947), emphasized the issue of all-India Swaraj
(self rule), and organized movements for independence under the leadership of Mahatma Gandhi.
The task of preparing any sort of blueprint for the local level was neglected as a result. There
was no consensus among the top leaders regarding the status and role to be assigned to the
institution of rural local self-government; rather there were divergent views on the subject. On
the one end Gandhi favoured village Swaraj and strengthening the village panchayat to the fullest
extent and on the other end, Dr. B.R. Ambedkar opposed this idea. He believed that the village
represented regressive India, a source of oppression. The model state hence had to build
safeguards against such social oppression and the only way it could be done was through the
adoption of the parliamentary model of politics.
During the drafting of the Constitution of India, Panchayati Raj Institutions were placed
in the non-justifiable part of the Constitution, the Directive Principles of State Policy, as Article
40. The Article read 'the State shall take steps to organize village panchayats and endow them
with such powers and authority as may be necessary to enable them to function as units of self-
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government'. However, no worthwhile legislation was enacted either at the national or state level
to implement it. In the four decades since the adoption of the Constitution, panchayat raj
institutions have travelled from the non-justifiable part of the Constitution to one where, through
a separate amendment, a whole new status has been added to their history.
5.2 Post Independence Era
The Panchayat Raj institutions have developed through various stages. The First Plan
failed to bring about active participation and involvement of the people in the plan processes,
which included plan formulation implementation and monitoring. The Second Plan attempted to
cover the entire countryside with National Extensive Service Blocks through the institutions of
Block Development Officers, Assistant Development Officers, Village Level Workers, in
addition to nominated representatives of village panchayats of that area and some other popular
like co-operative societies. But the Plan failed to satisfactorily accomplish decentralisation.
Hence, committees were constituted by various authorities to advise the Centre on different
aspects of decentralisation.
7. Principle of Subsidiarity
The principle of subsidiarity is an organizing principle that matters ought to be handled
by the smallest, lowest or least centralized competent authority. The Oxford Dictionary defines
subsidiarity as the idea that a central authority should have a subsidiary function, performing
only those tasks which cannot be performed effectively at a more immediate or local level. The
concept is applicable in the fields of government, political science, management, military, etc.
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Subsidiarity is one of the features of federalism, where it asserts the rights of the parts over the
whole.
In the process of democratic decentralisation, when we talk about devolution of power, at
the same time devolution should be based on the principle of subsidiarity, that is, whatever can
be accomplished at a lower level should be entrusted to that level. Only that which cannot be
effectively implemented at a lower tier might be taken to a higher tier. Devolution may also be
made irreversible, a function once devolved should not be arbitrarily taken back. Therefore, it
would be preferable to make provision for devolution through legislation rather than
administrative orders.
That the basic unit of democratic decentralisation was at the block/ samiti level
since the area of jurisdiction of the local body should neither be too large nor too
small. The block was large enough for efficiency and economy of administration,
and small enough for sustaining a sense of involvement in the citizens,
Such body must not be constrained by too much control by the government or
government agencies,
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The body must be constituted for five years by indirect elections from the village
panchayats,
Its functions should cover the development of agriculture in all its aspects, the
promotion of local industries and others
The higher level body, Zilla Parishad, would play an advisory role.
The PRI structure did not develop the requisite democratic momentum and failed to cater
to the needs of rural development. There are various reasons for such an outcome which include
political and bureaucratic resistance at the state level to share power and resources with local
level institutions, domination of local elites over the major share of the benefits of welfare
schemes, lack of capability at the local level and lack of political will.
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A Panchayat Raj Finance Corporation should be set up to look into the financial
resource of PRIs at all levels, provide loans and financial assistance to these grassroots level
governments and also provide non-financial requirements of villages.
These issues have been debated over the last three decades and have been taken up by
the State Finance Commissions which are required to select taxes for assignment and sharing,
identifying the principles for such sharing and assignment, determine the level of grants and
recommend the final distribution of state's transfers to local authorities.
The district is a viable administrative unit for which planning, co-ordination and
resource allocations are feasible and technical expertise available,
The PRIs are capable of planning for themselves with the resources available to
them,
Representation of SCs and STs in the election to PRIs on the basis of their
population,
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Same states passed new legislation based on this report. However, many obstructions at
the state level did not allow these institutions to develop their own political dynamics.
PRIs have to be activated and provided with all the required support to
become effective organizations,
PRIs at the district level and below should be assigned the work of planning,
implementation and monitoring of rural development programmes, and
The block development office should be the spinal cord of the rural development
process.
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The suggestion of giving panchayats constitutional status was opposed by the Sarkaria
Commission, but the idea, however, gained momentum in the late 1980s especially because of
the endorsement by the late Prime Minister Rajiv Gandhi, who introduced the 64th
Constitutional Amendment Bill in 1989. The 64th Amendment Bill was prepared and introduced
in the lower house of Parliament. But it got defeated in the Rajya Sabha as non-convincing. He
lost the general elections too. In 1989, the National Front introduced the 74th Constitutional
Amendment Bill, which could not become an Act because of the dissolution of the Ninth Lok
Sabha. All these various suggestions and recommendations and means of strengthening PRIs
were considered while formulating the new Constitutional Amendment Act.
All the seats in a panchayat at every level are to be filled by elections from
respective territorial constituencies.
Not less than one-third of the total seats for membership as well as office of
chairpersons of each tier has to be reserved for women.
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Reservation for weaker castes and tribes (SCs and STs) has to be provided at all
levels in proportion to their population in the panchayats.
To supervise, direct and control the regular and smooth elections to panchayats, a
State Election Commission has to be constituted in every State and UT.
15 Action Points
15.1 Effective Devolution
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The number of subjects listed for devolution is less important than securing effective
devolution of functions related to these subjects. For devolution to the PRIs, there should be a
clear demarcation subject-wise of functions devolved to each of the three tiers of the PRIs. Such
demarcation would be essential to determining the contingent devolution of functionaries and
finances to each of the three tiers of the system.
15.2 Finances
Moreover, fiscal responsibility will evolve only when local bodies are empowered and
obliged to complement grants received by raising their own finances through taxation,
particularly forms of taxation which enable the local bodies, in accordance with the provisions of
Articles 243H and 243X, to appropriate the revenues so raised for their own purposes instead
of being obliged to credit them to the consolidated fund. District panchayats and municipalities
may also be encouraged and assisted in raising funds through bond issues.
15.3 Functionaries
PRIs must be left free to determine the number of bureaucrats/technocrats on their rolls
so as to free them of the financial overburden of excess staff which plagues state governments.
15.4 Planning
States may ensure that adequate legislative provision is made for effective district
planning. Such legislative provision pay particular attention to the requirements of social
justice stipulated in the Constitution. This is essential to ensure that the weaker sections,
including women, are fully benefited by and not discriminated against in the processes of
grassroots planning. Planning is required constitutionally to be undertaken at each level of the
PRIs, including separately the village panchayat, the intermediate panchayat and the district
panchayat. Similarly, nagar (city) panchayats and municipalities are required to prepare their
own plans.
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Planning at the Gram Sabha/Ward Sabha level should be preceded and accompanied by
an awareness campaign mounted by activists drawn from the local community and civil society
generally so that the community is conscientized about the significance of grassroots planning
for their own welfare and development. Each state may, in association with civil society
representatives, make arrangements for launching such a peoples movement.
The role of the gram/ward sabhas in this regard is crucial. Programmes undertaken by
Panchayats should initially be approved by gram/ward sabhas; utilisation certificates must
statutorily require prior Gram Sabha approval; and beneficiary identification must be done
transparently in the presence of all members of the Gram/Ward Sabha. On the other hand, States
may prepare road-maps for effective time-bound implementation arrangements.
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The participation of women in Gram/Ward Sabha meetings has been woeful. To rectify
this, Mahila Sabhas comprising all adult women voters might be organized at Gram/Ward level
so that they can discuss among themselves issues coming before the larger meeting and authorize
from among themselves spokespersons who will speak for the Mahila Sabha at the panchayat
and Gram Sabha levels.
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the Constitution because the constitutional scheme envisaged reservations not on the basis of the
ratio of population in the state but the ratio in each panchayat at that level. States may, therefore,
take a fresh look at the system of reservations to bring their respective systems in consonance
with the constitutional scheme.
15.9 Elections
Although the Constitution provides for elections before the expiry of five years of the
first meeting of the elected local bodies, there have been serious delays in many states in the
conduct of timely elections. The Supreme Court has laid down the exceptional circumstances in
which a slight delay may be condoned as unavoidable, but the practice of delaying elections on
other grounds has become regrettably widespread. This is as true of elections as of bye-elections.
The Constitution stipulates in Article 243E (4) and 243U (4) respectively that if a
panchayat is dissolved for any reason, elections must be held within six months to reconstitute
that particular panchayat. This provision has been so interpreted as to dissolve all panchayats and
then avail of the six-month provision to not hold elections at all. States must commit themselves
to holding elections within the time-period stipulated subject only to the exceptional conditions
set out in the Supreme Court order. Complaints of electoral malpractice are widespread. State
election commissions, in consultation with the central Election Commission, may consider ways
and means of ridding local bodies elections of electoral malpractice.
15.10 Audit
The audit of the accounts of elected local bodies has generally been so tardy and
haphazard as to have virtually ceased to have practical effect in ensuring the integrity of PRIs.
State Auditors-General, in consultation with the Comptroller & Auditor General of India, may be
advised to urgently identify and correct deficiencies in this regard.
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and the weaker sections of society) to the DPCs and the bureaucracy at all levels, extending to
MPs and MLAs, to optimize the working of Panchayati Raj to the benefit of all. Distance
education has a particularly important role to play in training and the multimedia programmes.
Indeed, the electronic media constitute the single most cost-effective method of reaching large
numbers of those concerned with the best available training talent in the state and country.
16. Summing Up
The Panchayati Raj reform clearly aims to bring power closer to the people. On the other
hand empowerment of people could be possible with the process of democracy and democratic
division of political, administrative and financial power among the different layers of the
government starting from the centre to the gram panchayat. Though India is a democratic
country, power of the people must be considered as omnipotent. And people from the grassroots
can be empowered when power would be distributed and gram sabhas and gram panchayats
enjoy independent autonomy. Power to people in true sense of the term means the power of the
Gram Sabha, which consists of all the adult residents of the panchayat area who exercise the
power to vote and really a corner stone of the entire scheme of decentralisation.
Hence, Indias commitment to democracy, decentralisation and development has been
very well embodied in the Constitution and policy proclamations of successive governments at
the central as well as the state governments. The success of the moves however has been
constrained on account of lack of clear cut vision about the shape and powers of the PRIs which
alone are capable of mobilizing people and ensuring good governance from the administrative
machinery. Therefore, the call for a democratic decentralised governance system in India can be
and is possible with an effective and empowered gram panchayat and a vibrants Gram Sabha.
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2.
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ii.
iii.
iv.
Joshi, R.P. and G.S.Narwani, Panchayti Raj in India: Emerging Trend Across the
States, Rawat Publications, Jaipur, 2002.
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Structure
1. Introduction
2. Objectives
3. Micro Finance-Meaning and Features
4. Provision of Loans and Funds through Micro finance in India
5. Summing Up
6. Know Your Progress
7. Further Readings / References
1. Introduction
Finance is one of the most crucial inputs for economic activity, growth and development.
A growing body of research from around the world shows that well developed and inclusive
financial systems are associated with faster growth and better income distribution. Finance helps
the poor to catch up with the rest of the economy as it grows. It also helps in extending the range
of individuals, households and firms that can get a foothold in the modern economy and it
reduces damaging concentrations of economic power.
If finance through own accumulated resource or equity is neither available, nor sufficient,
debt assumes a major significance. Formal financial institutions play an important role in this
regard by channelling funds from surplus sectors to deficit sectors. However these institutions do
not show much enthusiasm to put their resources in rural and backward areas for the benefit of
poorer people. The banks and other formal financial institutions more or less stay away from
banking with the poor mainly due to the following three reasons:
(1) There is a high amount of risk involved in the repayment of loan by the poor. This
may be due to the failure of the economic activity where the loan amount is invested or due to
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the use of borrowed amount in some other activities for which it is not borrowed (especially
when investment fund is used for consumption purpose).
(2) To mitigate the risk of loan repayment, formal financial institutions often demand
collateral in the form of some physical assets like land or houses which the poor either lack or
cannot afford to jeopardize.
(3) Finally the poor need small amount of loans frequently, which is not feasible for the
formal financial institutions as the transaction costs become high due to the formalities involved
in the lending process.
The factors mentioned above generally make the poor excluded from the formal credit
market. Under these circumstances, the impoverished section is compelled to depend on informal
credit sources like friends, relatives and village money lenders. The informal sector generally
charges an exorbitant rate of interest and thus exploits the poor clients to a great extent. This
necessitates the searching of an alternative model of finance which will meet all the credit needs
of the poor people by counterattacking the above three constraints.
In the seventies of the last century, micro finance has emerged in a big way to solve
the problem of the financial exclusion of the poor. The concept of micro finance is actually
the brain product of Prof. Muhammad Yunus, an eminent economist from Bangladesh who
set up the Grameen Bank at the outskirts of Chattagram University Campus in 1976 to
provide easy and cheap loan to the socio-economically vulnerable sections of the society.
Since then the role of micro credit in tackling the problem of the disadvantaged masses has
been getting a huge response in almost every part of the globe. Most of the micro finance
programmes in the world are based on group system for delivering various financial services
to their poor clients. Under group system, first a group of 10 to 15 people will be formed and
then these people will start saving some amount with the group out of their own pocket.
Initially loans will be provided out of groups savings fund. Once the group is able to
develop a good saving habit they will be linked with external credit sources. Thus the
advantage with the micro finance model is that it initially attempts to develop the saving
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habits among the group members and then links the groups with the credit from formal
financial institutions. More over the loans and funds are provided to a group and not to its
individual members separately and thus the responsibility of repayment of loans is entrusted
to the entire group. The social collateral or ties constitute a powerful device to reinforce
repayment among group members.
2. Objectives
The main objective of this Unit is to discuss how loans and funds are provided to the
underprivileged sections of the society through micro finance in India. But before this it is
important to look into the meaning of micro finance, its features and the various models of
micro finance working in India. The following sections will take care of the same.
Lack of access to capital assets / credit is a constraint for existing and potential
micro enterprises
The poor are able to save despite of having low level and sporadic incomes.
The Declaration of Micro Credit Summit, held in Washington in 1997, defined
micro credit programmes as those, extending small amount of credit to poor people for selfemployment projects of that generates income allowing them to cure for themselves and their
families. In India the Task force on Supportive and Regulatory framework for Micro Finance (
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NABARD,2000) defined micro finance as , Provision of thrift, credit and other financial
services and products of very small amounts to the poor in rural, semi urban and urban areas
enabling them to raise their income levels and improve living standards. This definition is also
accepted by the Reserve Bank of India (RBI). According to Rajaram Dasgupta (2001), micro
finance refers to financial services of small quantity provided by financial institutions to the
poor. These financial services may include saving, credit, insurance, leasing, money transfers,
equity transaction etc. i.e. any type of service provided to meet their normal financial needs ; life
cycle, economic opportunity and emergency with the only qualification that transaction value is
small and customers are poor. Dasguptas definition includes both consumption needs and
production needs of micro finance and different financial services such as saving and insurance.
All the micro finance programmes usually start with saving and gradually start practicing
other financial services like credit, insurance, money transfer etc. The important features of
micro finance can be stated as
(1) The main feature of micro finance programme is that under this programme loan is
not provided to any individual rather it is provided to a group of people on the condition that
even if any one of them fails to repay loan, none of the members will be able to get further loans.
(2) Most of the micro finance programmes start with savings rather than credit. It enables
the members to realize the value of savings.
(3) The savings made by group members are used for internal group lending at a very low
rate of interest.
(4) Once the saving habit has become well developed among the group members and the
internal group lending is also done successfully, the micro finance groups are linked with bank or
Micro Finance Institution for getting further credit support.
(5) In micro finance programmes, credit is usually provided either for consumption
purposes or productive purposes. Loan used for consumption purposes generally include
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marriage of daughter, treatment of some illness, repaying the old debt etc. People undertake loan
for productive purposes generally utilize it in some productive activities like opening of fishery,
poultry, shop etc.
(6) There is absence of physical collateral in micro finance progarmme and group
pressure itself works as a substitute of physical collateral.
3.1 Various Micro Finance Programmes of the World:
Over the years Micro-finance programme has been becoming more and more popular in
many countries. The concept of micro finance has got more popularity particularly after the
United Nations Conference on Micro finance in 1997 and the declaration of the year 2005 as
Micro Finance Year. In different countries different Micro Finance programme has been started,
among which the most famous is the Bangladesh Grameen Bank, which was started in 1976 with
an aim to make the poor free from the tight grip of money lenders. Following the success of
Grameen Bank, several other Micro Finance Institutions (MFIs) were established in Bangladesh
and in other parts of the world. Some of the important Micro Finance Institutions working in the
various countries of the world are: Bank Rakyat and Badan Kredit Kecamatan in Indonesia,
BRAC and Proshika of Bangladesh, Banco-Sol (Bolivia), SANASA (Srilanka), Mazdi Fund
(Malawi), Share and Spandana of India etc.
Most micro finance organizations of the world use a group system to distribute their
services to their clients. The important group systems prevalent in the world are Grameen Bank
Group of Bangladesh, Self-Help Group (SHG) system of India and Village Banking of Latin
America. The motto of all these systems is to provide easy credit to the poor and the poorest of
the poor of the society. But the SHG system operating in India is different from other micro
finance programmes prevailing in the world. The main difference between them is that while
SHG Model in India is working by keeping a close relationship with the existing banking system,
the other micro finance programmes around the globe are working parallel to the existing
banking system. For example, in case of the SHG-Bank Linkage Programme of India, the bank
itself is one of the initiators SHGs. Again sometimes the banks directly provide credit facilities to
the SHGs initiated by the NGOs and in some cases they provide loan to the SHGs which act as
intermediaries between the banks and the SHGs. Thus the SHG System in India is providing
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financial services to the poor from the already existing banking institutions. However in India
there are also some micro finance institutions providing micro financial services to the
disadvantaged sections of the society. But the total number of beneficiaries served by these
institutions in India is very less in number and also most of these MFIs take loan from banks.
Again some of the MFIs follow the rules of Bangladesh Grameen System. Thus in India micro
finance programme is mainly carried out by keeping a close connection with the existing banking
system.
Under Grameen Bank System, the Micro Finance Institutions ask the potential clients to
organize into groups of around five members, which in turn are organized in to centers and then
to some higher organizations. The members make regular saving with the MFIs according to a
fixed and compulsory schedule and they can take loans from the MFIs. Group meeting held
according to the schedule where the workers of the MFIs are also present to supervise the group
activities. At the group meetings members collect their savings and loan installments and handed
over to the micro finance organizations worker. The main functions of the group is to collect
members savings and guaranteeing the members loan in the sense that no members of the group
will be able to take loan in future if some members does not repay the loan. The bank directly
provides credit to the group members. Under the Grameen System each individual group
member has savings and loan accounts with the micro finance organisation.
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Let us have a brief discussion about the emergence of these two models and their various
forms in the following section.
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of poorest of the poor continued to remain outside the fold of the formal banking system. To
change this scenario, in the mid 1980s NABARD initiated a search for alternative policies,
systems and procedures, savings and loan products, complementary services and new delivery
mechanisms that would fulfill the requirements of the impoverished especially the women
members of such households. The investigation made by NABARD in this regard found that the
poor people were trying to organize themselves into a group and practicing savings and internal
lending among themselves. These groups were initiated by the group members itself or by some
NGOs and other voluntary organizations and are popularly termed as Self-Help Groups. The first
official interest in informal group lending in India took shape in 1986-87 when NABARD
supported and financed an Action Research Project as Savings and Credit Managements of
SHGs of Mysore Resettlement and Development Agency (MYRADA). In 1988-89, NABARD
undertook a survey of 43 NGOs spread over 11 states in India to study the functioning of the
SHGs and possibilities of collaboration between banks and SHGs in the mobilization of rural
savings and improving delivery of credit to the poor (NABARD, 1995). Encouraged by the
survey result of the NABARD, Reserve Bank of India (RBI) came out with a circular on July 24,
1991 that the commercial banks should extend credit facilities to the SHGs under the pilot
project of the NABARD to cover 500 SHGs. In addition to the commercial banks the project was
also extended to the Regional Rural Banks (RRBs) in 1993. In this way the SHGs in India were
linked to the formal financial institutions for the first time. To formalize the mechanism further
the RBI set up a Working Group in November 1994 to review the functioning of NGOs and
SHGs and make suitable recommendations for expanding their activities and deepening their role
in rural sector. The Working Group came up with the recommendation that the linkage
programme should be encouraged more as it provides easier savings and credit facilities and
has the potential of achieving 100 % repayment rate. Accepting the recommendation of Working
Group in April, 1996, the RBI issued instructions to the commercial banks that they should
consider SHG functioning as a main stream activity under their priority sector lending portfolio.
Different Models of SHG-Bank Linkage Model: The SHG- Bank Linkage Programme
in India is working via following three models viz.
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Model 1: In this form of SHG- Bank Linkage Model, self-help groups are formed by the
banks and banks directly deal with them on the matter of promotion and provision of credit. This
model is popular in those areas where NGOs have no existence or less active.
Model 2: In this model, self-help groups are promoted by the NGOs but the banks
directly provide credit to them.
Model 3: In this model, self help groups are initiated by the NGOs but the banks do not
deal with the credit requirements of the groups directly. Here the banks first provide the credit to
the NGOs and the NGOs later allocate this loan among the groups. Thus in Model 3, NGOs act
as intermediaries between bank and SHGs. This model of linkage programme is dominant and
popular in those areas where the banks are not so well developed.
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building activities, facilitating training of SHGs, undertake internal audit and promote new
groups. Some of these federations are also engaged in financial intermediation. Generally under
the NGO-MFI Model, the NGOs borrow money from Formal Financial Institutions and lend to
the SHGs under it. The NGO-MFIs vary significantly in their size, philosophy and approach.
Hence these institutions are structurally not the right kind of institutions for undertaking financial
intermediation activities as the byelaws of these institutions restrict commercial operations. The
NGO-MFIs, by their character are non-profit organizations and as a result face several problems
in borrowing funds from higher financial institutions. These organizations are large in number
and are still outside the preview of any financial regulation.
(b) Non-Profit Companies as MFIs: Many NGOs think that combining financial
intermediation with their core activity of social intermediation is not the right way to go. It is felt
that a financial institution including a company set up for this purpose does better at banking
function. Further MFIs need to demonstrate that banking with the poor is indeed profitable and
sustainable and hence they have to function as distinct institutions so that cross subsidization can
be avoided. On account of these factors, NGO-MFIs of late establish separate non-profit
companies for their micro finance operations
(c) Co-operative MFIs: Prior to 1995, the co-operatives in India organized under State
Co-operative Acts were not allowed to emerge as business enterprises owned, managed and
controlled by the members for their own development as the Govt. had its share in many of the
co-operative societies. The situation changed in 1995 when the Andhra Pradesh State Govt. for
the first time in India enacted the Mutually Aided Co-operative Societies Act (MACS) for
enabling promotion of self-reliant and vibrant co-operative societies based on thrift and self-help.
Since then several state governments have made the provision of similar legal framework. Many
of the SHG federations promoted by NGOs and development agencies of the state government
have been registered as Mutually Aided Co-operative Societies. These societies enjoy no
government interference because they are not allowed to accept share capital or loan from the
government MACS are not regulated by the RBI though they provide financial services to their
members.
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(d) For-Profit NBFC MFIs: NBFCs (Non Banking Financial Corporations) are
registered under the Companies Act, 1956, and regulated by RBI. Prior to 1997, the NBFCs were
not regulated by the RBI but thereafter it was made compulsory for NBFS to apply to RBI for a
certificate of registration and for this certificate NBFCs were to have minimum net owned funds
of Rs. 25 lakh and this amount has been gradually increased. All the NBFCs accepting public
deposits are subjected to capital adequacy requirements and prudential norm. The number of
NBFC-MFIs in India is very small and mostly these MFIs have a negligible focus upon micro
finance. Although it is the best legal form of MFI in India and many MFIs are aspiring to be
NBFCs, but they find it difficult due to various norms fixed by RBI.
The steps involved in providing loan to the impoverished through SHG-Bank Linkage
Programme are briefly discussed as follows.
(1) Formation of a SHG: The first step is to form a SHG. The village people may have
themselves come together to form a SHG or it may be formed by the banks or NGOs or MFIs. A
SHG is actually an informal association of poor people essentially from a homogeneous
background who have come together to meet some common goals. Homogeneous background
here means people must be from the same caste, same sex, same income group, same place of
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origin, same living conditions, same kind of livelihood etc. Homogeneity in the SHG is
important to maintain internal integrity and efficient functioning of the group. However, in real
life it has been seen that many SHGs are formed by ignoring this homogeneity principle.
(2) Savings and Thrift: After the formation of a SHG, its members are required to save
some amount for a particular period of time. The amount may be small, but savings have to be a
regular and continuous habit with all the members. This will make the members learn how to
handle large amount of cash through savings. A SHG will have to open a savings bank account
in the nearest bank. It is to be noted that a SHG may stop savings once it gets linked to external
credit from banks or it may continue the same. There is no hard and first guideline regarding this.
(3) Internal lending: After saving for a minimum period of 2 to 3 months, the common
savings fund should be used by the SHG for lending to its own members. The purpose, terms and
conditions for lending to its members, rates of interest etc may be decided by the group through
discussions during its meeting. The interest on loan is usually kept at 1 or 2 per cent per month.
The purpose can be emergency needs like illness of family members, marriage of children etc or
buying of assets for income generating activities.
(4) Provision of External Loan: The SHGs are required to save and continue internal
lending at least for a period of 6 or 8 months. After that they will be linked with external credit
from banks or MFIs. In linking the SHGs to external loans and funds, banks and MFIs generally
give a look on the drop out of members from the group and repayment of internal loan. The loan
is always sanctioned and issued in the name of a SHG. Banks may provide the loan to SHGs
directly or through NGOs. Micro Finance Institutions, on the other hand, provide the loans to the
SHGs directly. For providing external economic support to the SHGs, MFIs have to depend on
international donor and funding agencies, commercial banks, private foreign banks etc.
According to the NABARD Guideline, the amount of Loan to the SHG can be to the tune of 1 to
4 times of its savings. It is to be noted that no subsidized loan is provided to the SHGs under
micro finance programme in India and the amount of loan is generally small. However there are
some SHGs formed under Swarna Jayanti Grameen Swarozgar Yojana which are getting
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subsidized loan from the banks, but these SHGs do not come under the arena of micro finance
programmes in India.
Loan may be granted by the SHG for various purposes. The bank does not decide the
purposes for which the SHG gives loans to its members. A SHG can also start a joint investment
activity with the help of received funds or it can use the same only for meeting the credit needs
of its members or it can do the both. The Reserve Bank of India (RBI) has allowed the banks
freedom to decide on the interest rates to be charged to the SHGs. The interest rate on bank loan
generally varies in the range of 12-36 per cent per annum. However, micro finance institutions,
sometimes charge higher rates of interest from the SHGs. The responsibility of loan repayment is
entrusted to the entire group. The SHGs showing better repayment of loan are able to get further
credit support from the banks and MFIs.
The members of SHGs know that the bank loan is their own money like savings
They are aware that they are jointly responsible for the repayment.
Because of this, the bank gets a much better repayment from the SHG.
These are the steps involved in the provision of loans and funds to the poor through micro
finance in India. Micro Finance has really brought about a revolution in the lives of the
impoverished by reducing poverty and creating employment generating opportunities for them.
However micro finance as a source of credit suffers from the following limitations.
(1) It cannot provide bigger amount of loans to a poor client as it is based on the concept
of micro credit.
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(2) Micro finance programme is based on Savings first Credit later approach. Under
this programme, people first have to save some amount with the group for a particular period of
time aand then they are linked with external credit. Thus micro finance model can not meet the
immediate credit demands of the poor clients.
(3) Micro finance programme in India is still not able to provide loans to most of the BPL
category people. This is because BPL people find it very difficult to save with the SHG as they
hardly have any means and thus they are deprived of micro credit as without saving some
amount, no group member can demand for loan under micro finance.
(4) Micro finance cannot solve all the problems confronted with a poor family as it
provides only a small amount of loan.
On the ground of the above factors it can be remarked that micro finance can not meet all
the credit demands of the rural poor. It can be considered as only one of the important sources of
credit to the poor.
Regarding the disbursement of loan to the SHGs in India it is found that mainly three
types of banks viz. Commercial banks, Regional Rural Banks and Co-operative Banks are
providing the loan support to the SHGs from time to time. Agency wise position of loan
disbursed to the SHGs during the year 2007-08 is shown in the following table. It is to be noted
that here the data on the loan disbursed to the SHGs is provided only in case of SHG-Bank
Linkage Model. The data on the provision of loans to the SHGs under Micro Finance Institutions
Model is not available and hence it is not presented here.
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No. Of SHGs
Amount of Loan
(in Rs Lakh)
Commercial Banks
735119
540390.35
Regional
327650
265184.14
Co-operative Banks
165001
79351.75
Total
1227770
884926.24
Rural
Banks
It is depicted from Table 1 that during the year 2007-08, the banks financed 1227770
SHGs, including repeat loan to existing SHGs, with bank loan of Rs.884926.24. Regional Rural
Banks (RRBs) has financed the maximum no. of SHGs followed by Commercial Banks and Cooperative Banks. However regarding the disbursement of loans to the SHGs, Commercial Banks
account for the maximum share with an amount of Rs. 540390.35 lakh followed by RRBs with
an amount of Rs. 265184.14 lakh and Co-operative Banks with an amount of Rs 79351.75 lakh.
4.2 Region wise Position of Bank Loan Disbursement to SHGs under SHG-Bank
Linkage Programme:
Right from the inception, the SHG-Bank Linkage Programme has been a major success in
South India. Its share in the SHG coverage had risen from 60% to 68% from 199798 to 1999
00. The number of SHGs credit linked in the central region had increased due to a sharp rise in
credit linkages in Uttar Pradesh. In the eastern and the western regions, the number of SHG links
had increased, but these regions share of the total linkages had decreased. In the north and the
north-eastern regions, the linkage program had not gained much acceptability.
The loan disbursement to the SHGs in different regions has been uneven on account of
various factors like pro-active role of state governments, presence of well performing NGOs,
socio-cultural factors, better performance of SHGs etc. One of the major concerns about the
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disbursement of loans is that in case of disbursing loan North-Eastern States are totally
neglected. The reasons put forth by the financial institutions in this regard is that SHG strategy is
not suitable to the social configurations that prevailed in the North-East and the loan repayment
by the SHGs in the North-Eastern states is also not good.
Table 2: Region wise Position of Bank Loan Disbursement to SHGs during the year
2007-08
Region
No. of SHGs
Amount
of
Bank
Loan(in Rs Lakh)
Northern Region
33680
19146.56
North-Eastern
29119
14871.14
Eastern Region
224937
104584.34
Central Region
72747
48796.60
Western Region
90441
42329.15
Southern Region
776847
655198.44
Total
1227770
884926.24
Region
During the year 2007-08, Southern Region secured the first position in respect of the
highest number of SHGs linked to bank loans (776847) while the North-Eastern Region had the
lowest number of SHGs linked to bank credit (29119). The SHGs of the Southern Region also
got the maximum amount of loan (Rs. 655198.44 lakh). North-Eastern Region ranks last with the
loan amount of Rs. 14871.14 lakh disbursed to the SHGs.
5. Summing Up
This chapter has provided a detailed account on the concept of micro finance and how
loans and funds are provided to the poor clients of India through micro finance. It is observed
that micro finance has emerged as an alternative source of credit to the impoverished during the
last few decades in a big way. In case of India, micro finance programme is working via two
models viz. SHG-Bank Linkage Model and Micro Finance Institutions Model. Both the models
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are based on the Savings first Credit later approach. Although micro finance programme in
India is able to reduce poverty and create income generating activities for the poor to a good
extent, it is not able to meet all the credit needs of the poor. Again on the matter of loan
disbursement to the SHGs under SHG-Bank Linkage Model, it has also been seen that the region
wise disbursement of loan is uneven. Most of the bank loan is concentrated in the Southern
Region while the north-Eastern states are neglected most regarding the disbursement of loans to
the SHGs.
1)
Why the banks and other financial institutions generally stay away from banking with the
poor?
2)
How the poor are often excluded from the formal credit market?
3)
Discuss briefly the concept of Micro Finance. What are its important features?
4)
Name some of the important Micro Finance Institutions working in the world. Write a
short note on Grameen Bank Model. What is the difference between SHG system
prevailing in India and other micro finance programmes of the world?
5)
What is Micro Finance? What are the models of delivering micro finance service in
India?
6)
What is SHG-Bank Linkage Model? What are the different forms of SHG-Bank Linkage
Model?
7)
8)
Add a note on the various types of Micro Finance Institutions working in India?
9)
Discuss the agency wise disbursement of loans and region wise provision of loans to the
SHGs under SHG-Bank Linkage Model in India.
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problem of financial exclusion of the poor? Do you think micro finance can meet all
the credit needs of the rural poor? Justify your answer.
2. Explain the various models of delivering micro finance services in India.
3. Discuss how loans and funds are provided to the poor through micro finance in India.
Dasgupta, Rajaram (2001): An Informal Journey through Self Help Groups, Indian
Journal of Agricultural Economics, Vol.-56, No.3, July- September, 2001, Pp-371- 386.
Ghate, Prabhu (2007): Indian Micro finance: The Challenges of Rapid Growth, Sage
Publications, New Delhi.
Karmakar K.G (2008) ed. Micro Finance in India, Sage Publications, New Delhi
NABARD
(2008):
Status
of
Micro
Finance
in
India,
2007-08,
available
in
www.nabard.org.com
Harper, Malcolm (2006), Self Help Groups and Grameen Bank Groups: What are the
Differences? in Beyond Micro-Credit: Putting Development Back in to Micro-Finance,
(Ed), Thomas Fisher and M.S. Sriram, New Delhi: Vistaar Publication.
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Introduction
2.
Objectives
3.
4.
5.
6.
7.
8.
9.
Summing up
10.
11.
Keywords
12.
1. Introduction
The beginning of 21st Century, staged upon movements for individuals basic rights and
continuous social conflicts for controlling resources in the developing nations around the world
including India. During this period, individual's struggle for access to resources and basic rights
were hotly debated and strengthened in the face of neo-liberal policies. Such policies in the
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nature of free market economy, privatization, liberalization and de-regulation have been used as
political conditionality by the donor agencies for giving aid to third world countries. From
literature and various studies it is found that the implementation of these set of policies in the
countries of the South, has led to the poorer section getting sidelined from the development
process. Things have become worse as they are systematically deprived from accessing
resources. Consequently, the demand for the inclusion of underprivileged for access to resources
and involvement in the decision-making process has strengthened through which they could
protect their basic right to development.
2. Objectives
The objective of the Unit is to make the student aware about the following;
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Therefore, a prescription was made by the World Bank and the International Monetary Fund
(IMF) to reform in the form of privatisation, de-regulation and liberalisation, setting the tone for
a market driven development.
CDD is an approach that aims to give voice to and empower community groups to
control decisions and resources which affect their lives. These programs take many forms such
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Several international such as the World Bank are assisting governments including India
to institutionalize mechanisms for transparency and accountability to improve public service
delivery and make social spending more cost-effective. The activities undertaken include:
helping governments strengthen their legal, regulatory, political, and institutional frameworks;
providing training to both governments and CSOs on participatory budgeting, citizens score
cards, and social program evaluation approaches; and linking social accountability efforts
poverty reduction processes at the national and local levels.
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name of development, poor faced the crisis of poverty, deprivation, displacement, migration and
underdevelopment and food crisis. Basic social services such as provision of drinking water,
food security and livelihood opportunities are shrinking for them in a globalised world.
Therefore, towards the closing years of 20th Century movements for access to basic
resources and the consequent role of State in fulfilling them slowly emerged. The new century
brought development strategies with a right based approach to development stating that rights
belong to the citizen and a set of rights bestowed by the State. The right based approach to
development, in the present scenario, emerged due to the inaction and failure by the State in
protecting citizens basic rights such as food, water, shelter and so on. State fails when it is
constituted with weak institutions, weak governing mechanism or governance system and when
it fails to provide basic services to its citizens. When those institutions and officials cease to
function, this abstract idea of the State collapses and the political power that had been channeled
through such structures finds alternative, less ordered, means of expression.
The most often cited is the definition based on the contract is the social contract used by
William Zartman for whom State collapse/failure means that the basic functions of the State are
no longer performed. A collapsed/failed State is therefore one that maintains few or no
functioning State institutions, has lost its power to confer identity, can no longer assure security
and has lost its legitimacy. The State had failed in its duties because it had not addressed the
plight of the poorest and most desperate sections of the community. Those whose needs are the
most urgent and whose ability to enjoy all rights are therefore most in peril must not be ignored
by the measures aimed at achieving realization of the right. The approach expects the State to
play the fundamental role as the protector and promoter of those rights. The approach is based on
the principles that individual rights are shaped through continuous struggle from the bottom
considers citizens as beneficiaries as well as the participant in the development process from
which they are deprived off since time immemorial. Though individuals are deprived of basic
goods and services like food, water, shelter, etc, the approach identifies them as a matter of the
right and not just basic necessities. In this context, the people are to be empowered so that they
could demand the State for the fulfillment of their entitlements. And in this process, the role of
mediating agencies, such as the civil society has been lauded.
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The gap between the promise and practice in delivery of services to the people in India
seemed to have widened in the boundary of the so called welfare state. The gap between the
formal recognition of rights and their actualization remains poor. The right based approach to
development is quite significant as it pressurizes the state and its action while emphasizing the
effective implementation of welfare related programmes. It also expects the State to perform its
main function and demand to maintain transparency, accountability, equity and non
discrimination in implementation of different schemes. The approach includes equal opportunity
in accessing resources and its fair distribution for their development.
Right based approach to development includes all activities of social change in regard to
rights. It views development as a right rather than charity. The development efforts for
education, health, employment and other infrastructures must be decided with the participation of
the people. Development must be taken through rights perspective rather then reward. If there is
failure to ensure the participation of the community, development process cannot be completed
and is treated irrelevant for community. Lack of participation means no sense of ownership
towards development.
In India, the process for a right based development is much faster than in other countries
of the South owing to the existence of a constitutional democracy. The democratic state which
reflects the aspirations of freedom of its population from mere subjugation, is manifested
through the Constitution with guarantees fundamental rights which made people sovereign in
deciding who and what they need, (Fundamental Rights are enshrined in the Constitution of
India, Part III, Article 12-35). There are six fundamental rights : right to equality, right to
freedom, right against exploitation, right to freedom of religion, cultural and educational rights
and right to constitutional remedies. These rights are very comprehensive in nature and touched
upon all aspects of an individual for a standard and respected living. In the face of such legal
sanctions, the Indian State assumed responsibility in ensuring those rights through various plans
and programmes so as to reduce inequalities and discrimination amongst the population and
brought a number of development strategies to accelerate economic growth and human
development.
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The most disadvantaged such as the poor, women, dalits and the ethnic
minorities must get equal opportunity
All get equal actual access to education, health care, social security and
freedom to participate in political activities
Access to resource and control over it must be vested upon the poor and the
voiceless people
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of development is far more extensive. Apart from a rise in output, it involves changes in
composition of output, shift in the allocation of productive resources, and elimination or
reduction of poverty, inequalities and unemployment. In the words of Amartya Sen
Development requires the removal of major sources of unfreedom poverty as well as tyranny,
poor economic opportunities as well as systematic social deprivation neglect of public facilities
as well as intolerance or over activity of repressive States.
Development is not possible without growth but growth is possible without development
because growth is just increase in GNP. Development can be conceived as multi-dimensional
process or phenomena. If there is increase in GNP, more than the increase in per capita income
then it is said that development is possible. When given conditions of population improves then
it can be said that this is an indicator of economic development.
India has witnessed a gross domestic product (GDP) growth rate of 8 per cent per annum in
the last four years but this has not translated into any substantial reduction in poverty. The rich-poor
divide has increased and poverty reduction figures of India are now lower than those of Bangladesh.
More than 300 million people in India still live in deep poverty at less than a US Dollar a day (PPP)
while another 350 million live on less than two Dollars a day.
There are disparities among regions, states, sectors, and communities. Among the states, the
north-eastern and the central regions, which have large tribal populations, are lagging behind. Among
sectors, agriculture has fallen behind industry and the service sector. Although some of the poorest
states are rich in natural and forest resources, the predominantly tribal population is unable to take
advantage of this.
Tribal (ST) groups, and women still do not have access to many job opportunities and human
development. The informal sector has emerged as the largest job creator, characterized by low wages
and income insecurity while wage growth is concentrated only at the top end.
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India has strong safeguard measures to promote inclusive growth. However, these are not
working well. The country is experiencing exclusion in different forms e.g. (1) regional; (2)
social exclusion within developed regions; and (3) sectoral disparities.
inequality and needs to be understood in the context of access to opportunities, access to benefits
from service delivery mechanisms and access to political process. The high chronic poverty is
observed in areas which are rich in natural resources however the government has failed to
address poverty in these areas. There are people living in conflict areas who have been losing
out on the benefits from the high growth rate.
In the light of the above disparities, the Prime Minister Dr. Manmohan Singh observed
If those who are better off do not act in a more socially responsible manner, our growth process
may be at risk, our polity may become anarchic and our society may get further divided. We
cannot afford these luxuries.
Consequently, all the major initiatives of the government; in agricultural and rural
development, in industry and urban development, in infrastructure and services, in education and
health care sought to promote inclusive growth. The government also went in for a variety of
legislative interventions to empower the disadvantaged. For example, the Eleventh Plan
document is titled Inclusive Growth which shows the strategy of government to make growth
and development inclusive. The Plan states,
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The strategy for the Eleventh Plan must therefore aim at bringing about major
improvements in governance which would make government-funded programmes in critical
areas more effective and efficient. The best possible way of achieving this objective may be by
involving communities in both the design and implementation of such programmes, although
such involvement may vary from sector to sector. Experience shows that Civil Society
Organizations (CSOs) can work with Panchayati Raj Institutions (PRIs) to improve the
effectiveness of these programmes. For achieving the vision of the Eleventh Plan, it is extremely
important to experiment with programme design to give more flexibility to decision making at
the local level.
Another example for such an endeavour of the Indian government is the National Rural
Employment Guarantee Scheme (NREGS) of the Government of India has sought to make
growth inclusive by giving the rural people daily employment through a rights perspective.
As it is referred to in the Eleventh Plan, in the present context the role of civil society is
indispensable in the overall scheme of fulfilment of the right development and fulfilment of basic
necessities. It can organize innovative programmes while playing the role of a pressure group.
CSOs pressurises the government in fulfilling peoples right to development through various
means and demanding for more accountability, transparency and participation in the
implementation of various schemes while engaging in mobilization, capacity building, advocacy
etc. Public pressure through public hearings is effective in asserting the right to development for
a more inclusive growth.
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The UN-MDGs have given some hope for a right based development at the international
level which talks of inclusive by targeting the poor people in member countries.
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demand for a more inclusive society which many feel can be through a right based
approach to development.
9. Summing Up
What is really needed is the participation and involvement of a vibrant civil society and
community members in planning, executing, monitoring and evaluating public policies and
schemes. In addition, CSOs can create awareness about various schemes and keep a watch over
its implementation so as to exert pressure on the State institutions to perform and deliver services
to the people. In a larger sense it can sensitize the nation as a whole about the prevalent
circumstances of unemployment, food insecurity, hunger, lack of water and generating a mass
opinion to develop strategies to come out of the crisis as is done by the Right to Food
Campaign. Further it must play a greater role in recognizing that the primary responsibility for
ensuring peoples development lies with the national and local governments. In the present
context, this has all been possible owing to an emergent active civil society. But there is still a
long way to go in order to make the populace aware of their rights and entitlements and to
strengthen the moment for the right based approach to development and make growth more
inclusive.
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______________________________________________________________________________
__________________________________________
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Williams, John J, the Grootboom case and the constitutional right to housing: the
politics of planning in post-apartheid South Africa, in Naila Kabeer s (Ed), Inclusive
Citizenship : Meaning and Expression, Zubban, New Delhi, 2005.
Focus on Inclusive Growth, The Hindu, July 07, 2009, available online at
http://www.thehindu.com/2009/07/07/stories/2009070759720800.htm
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Structure
1.
Introduction
2.
Objectives
3.
Significance
4.
5.
6.
7.
8.
9.
Summing up
10.
11.
Keywords
12.
1. Introduction
Rural poverty ratios remained above 50 per cent in 70s and reduced to
about 40 per cent by the end of 80s. There was deceleration in poverty decline in early 90s.
India has successfully reduced the share of the poor in the population by 27.4 percentages in
2004-05 from 54.9 in 1973. The absolute number of poor people has declined only marginally
from 321 million in 1973 to 322 millions in 1983, 320 millions in 1993-94 to 302 million in
2004-05, which was very high. Of these 302 million poor, 75 percent are in rural areas.
Agriculture wage earners, small and marginal farmers and casual workers engaged in nonagriculture activities constitute the bulk of the rural poor. The poor did not have income to access
the consumption basket including food grains. Their purchasing power is very low.
Poverty
reduction has been one of the major goals of development planning since independence.
Accordingly, the development efforts have been directed in creating adequate employment,
livelihoods and provision of services for a better quality of life for the poor. The strategy and
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policy of direct attack on poverty by way of target approach for rural poor came into being in the
Fourth Plan. Towards this end, many wage employment programmes were being implemented
in the rural areas with the main objective of improving the asset base of the poor and to involve
the poor in the production / income generation processes.
2. Objectives
After going through this Unit, you will be able to know:
i) What is wage employment?
ii) Wage employment programmes: their need, role and outcome
iii) Gaps in wage employment programmes
3. Significance
The reference to maximum production and full employment, attainment of economic
equality and social justice in our Five Year Plans. It was the Fifth Plan (1974-79) that mentioned
Poverty, and as a major objective, along with self reliance. Employment planning was no longer
considered as part of the overall planning but tagged to agriculture productivity and rural
employment. In the light of the clear failure of higher growth in attaining equity and social
justice, the main theme of the socialistic pattern of society that was adopted as a goal of planning
and development in India, The direct intervention through a number of income and employment
generation schemes constitutes an important poverty alleviation strategy of the government. The
relative importance of these and other major social sector schemes has gone up in the postreform period. Annual Plan 19972-73 clearly states that the states should take steps for making
appreciable impact on unemployment and under employment by taking up employment
generation programmes. The plan outlay of the major rural development schemes, too, has risen
and currently stands at around 14 per cent of the total plan outlay of the Centre. The amount of
funds available for rural poverty alleviation and employment generation is substantial and can
contribute significantly towards reducing rural poverty. The efficient use of such resources is,
therefore, of utmost importance. During 1993-94, the Central and State governments together
spent another Rs. 14,160 crore on the budget categories Rural development, Welfare of SC,
ST & OBCs and Social Security and Welfare. During the 1999-2000 year the Central and
State Governments together spent another Rs. 28,080 crore on Rural development (RD),
Welfare of SC, ST & OBCs and Social Security and Welfare. During 2008-09 more than Rs.
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70,000 crore was allotted for the upliftment of rural community by providing additional
employment and for development of rural infrastructure.
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Employment Scheme)
National Food For Work Programme [NFFWP]: launched on November 14, 2004
2006
Rural Works Programme (RWP): For better utilisation of the unemployed and
under-employed rural manpower, this Programme was proposed in the year 1960-61. It was the
first major public programme aimed at providing employment to the unemployed, particularly in
the lean season. A beginning was made with 32 pilot projects in early 1961 and this number in
the course of time increased to 820 blocks by December 1962. It was expected that the works
programme would provide increased employment opportunities & in the process create
productive assets to strengthen the rural economy. It had been proposed to provide employment
for an annual average of 100 days to about 1 lakh persons in the first year and to about 2.5
million persons by the end of the Third Plan Period. The Plan outlay indicated an allocation of
Rs.150 crores for this programme. Due to the limitation of resources the scale of efforts was
drastically curtailed and only a sum of Rs.19 crores was made available during the whole plan
period. Due to its limited scope and its various organizational and administrative deficiencies, it
did not make any significant dent on the problem of unemployment in rural areas. A series of
special employment programmes followed RWP, each of these trying to learn from the
experiences of the previous one, and trying to improve upon it.
5.2 Crash Scheme of Rural Employment (CSRE): The Government of India in April
1971 initiated the Scheme to alleviate the prevailing conditions of unemployment
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underemployment in rural areas. The duration of scheme was three years. The important
objectives of scheme were direct generation of employment on an average continuously over a
working season of 10 months at the rate of 2.5 lakhs mandays per annum in each district through
the execution of labour intensive projects and creation of durable assets, in consonance with
local development plans. Assets of a durable nature in the areas of minor irrigation, land
development, roads, afforestation, school buildings etc were given priority. This scheme was
started with an annual out lay of Rs.50 crore and created employment to the tune of 316million
persondays in three years. Of the total expenditure of 104.72 crore on CSRE, 71.31% was spent
on road construction, 15.9% on land development and 12.8% on minor irrigation. This was
diametrically opposite to the CSRE guidelines which had suggested to give least importance to
road construction.
Evaluation studies of CSRE, however did not rate it as successful programme. The
Programme Evaluation Organizations (PEO) evaluation revealed that the programme neither
generated sizeable employment nor provided any guidance for employment planning in the
future. The experience of CSRE indicated the need for more concentrated efforts to tackle the
problem of rural unemployment. The Bhagavati Committee on Rural Unemployment drew
attention to this aspect in it report, and recommended the initiation of the Pilot Intensive rural
Employment Project (PIREP)
5.3 Pilot Intensive Rural Employment Projects (PIREP): This was implemented during
1972 to 1976 in 15 community development blocks situated in various parts of the country with
different economic and ecological conditions. It was an action cum-pilot study project on the
characteristics of employment in the particular selected areas. Over and above employment
generation, it also aimed at studying the nature and dimensions of the problem of unemployment
among wage-seeking rural workers. Though PIREP proved to be slightly better programme in
the sense that it threw light on certain characteristics of rural unemployment, the Review
Committee on PIREP did not rate it as successful. The Committee pointed out that due to certain
organizational problems, PIREP could not be of much use in evolving a comprehensive
programme for the whole country.
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5.4 Food for Work Programme: Conceived in 1976-77, the basic objective of the
Programme was to create additional employment in rural areas through utilization of surplus
food grains available in the buffer stock for payment as wages and thereby to create durable
community assets. FFWP was reintroduced in January 2001 as non-plan scheme and as part of
the Employment Assurance Scheme (EAS) in eight droughts affected states viz., Chhattisgarh,
Gujarat, Himachal Pradesh, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, and Uttaranchal.
Later expanded to form
governments being implemented in the notified districts during periods of natural calamities,
such as drought, flood, cyclone, or earthquake.
The cash component of the wage and material was met from the scheme under which
it is being implemented and food grains from FFWP up to 5kg per manday.
The criterion for employment is relaxed to include both BPL and APL families.
MoRD directly makes payment of the cost of food grains to the FCI. The cost of
transportation of food grains is the responsibility of the state government.
Supply of food grains is made to the workmen preferably at the worksite. The official
supervising the work under FFWP will be responsible for the distribution of food
grains at the worksite or through PDS. The payment of wages, cash as well as food
grains must be made weekly.
The works for the FFWP executed in accordance with the guidelines of that scheme
under which they are taken up.
FFWP was evaluated by the PEO of the Planning Commission. It pointed out that the
major problems of the programme pertained to its administration and implementation. FFW was
observed to have severe limitations in meeting the food needs of all the poor in drought areas on
time, defeating its basic objective. Works rather than the food needs of the poor became the
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focus. Contractors step and use of machinery to complete works and there was massive misuse of
funds. Corruption was rampant in procuring the necessary certifications as well as in the food
distribution process. Officials, for their own convenience, often limit the programmes to areas
that are close to the headquarters, while needier yet far flung areas are neglected. At the end of
all this, the poor receive food only at the end of completion of the works, if at all, and that is too
late. Therefore, they are forced to sell the food in order to pay the debts they have incurred
during the crisis.
5.5 National Rural Employment Programme (NREP) which replaced the `Food for
Work Programme' came into operation from October, 1980. Since 1st April, 1981, it has been
implemented as a Centrally Sponsored Scheme with the expenditure shared between the centre
and the states on a 50:50 basis. The basic objectives of the NREP are generation of additional
gainful employment for the unemployed and underemployed men and women in the rural areas
and creation of productive community assets for rapid growth of rural economy, and steady rise
in the income levels of the rural poor. The programme was also expected to stabalise the market
wage rates in the rural areas at least to the level of statutory minimum wages. By spending 25.66
lakh MT food grain along with Rs. 3304 crore, 9432.5 lakh persondays of employment was
generated under this Programme.
The PEO of Planning Commission evaluated the programme in 1982 and found out that
construction of rural roads' accounted for a predominant part of the total value of assets created.
None of the concerned state governments had accorded any particular priority to the (i) works
taken up in the areas with SC/ST or landless labourers population, (ii) works relating to the
pockets having complaints of concealed bonded labour; and (iii) works benefiting women. The
schemes benefiting SC/ST population were not taken up by most of the selected states. It was
found that the Panchayats had no uniform role in the implementation of NREP in different
States/districts. However, by and large, Panchayat Samities played an important role in respect of
the NREP works in most of the States.
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view to providing guarantee of employment to at least one member of every landless labour
household up to 100 days in a year. The Programme was fully funded by the central government.
During Seventh Plan, 20 percent of the allocated funds are to be earmarked for social
forestry and 10 percent earmarked for the works directly benefiting SCs and STs. The wage
component should not be less than 50 percent of the total project cost. A shelf of project was
required to be prepared by the state for the works to be implemented under the programme.
Priority should be given to the works that needed to be taken up in backward areas having a
predominant population of unemployed landless labour, particularly for the SC/ST, works in
areas where there are low wage packets and works benefiting women. An amount of Rs.2266.3
crore was spent to generate about 353.5 lakh mandays of employment.
5.7 Jawahar Rozgar Yojana (JRY) or Jawahar Employment Scheme was started in
April 1989 by merging the two on-going employment programmes i.e. NREP and RLEGP into a
single employment programme. The Yojana has been designed to arrest the seasonality of wage
employment and provide a positive impact on the prevailing wage rates in rural areas.
Objectives:
The main objective was generation of additional gainful employment for the
unemployment and under-employed persons, both men and women in rural areas.
The secondary objective of the Yojana was creation of durable community and
social assets.
JRY was targeted to benefit people living below the poverty line. However,
preference is given to the Scheduled Castes, the Scheduled Tribes and the freed
bonded labourers.
22.5% of funds have to be spent on individual beneficiary schemes for the direct
benefit of SCs/STs.
It was centrally sponsored scheme and shared between the centre and the states in
the ratio of 80:20.
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It was implemented by the Panchayati Raj Institutions. Funds under JRY are
distributed among ZPs, Intermediate Panchayats and Village Panchayats in the
ratio of 15:15:70 .
The wage and material ratio is 60:40 to be maintained for JRY works.
Part of wage amount can be paid in the form of food grains and balance part in the
form of cash.
After three years of implementation of JRY, the strategy was changed for its better
implementation by providing targeted employment of 90-100 days to unemployed and
underemployed persons. JRY was again restructured in 1996. Consequently, the Employment
Assurance Scheme and the Indira Awas Yojana and Million Wells Scheme, which were earlier
sub-schemes of JRY, were made independent and separate schemes.
Since inception in 1998-90, until November 1998, JRY had generated 71906.12 lakh man
days of employment, which is 98 percent of the target set for it. The share of SC and ST
beneficiaries in the total employment generated was about 56 percent. Total women participation
was 25 percent. Total funds available during the above same periods was Rs.36826.32 crore of
which Rs.28892.71 crore (78.45 percent) was utilized
The Union Ministry of Rural Areas and Employment conducted a concurrent evaluation
of JRY from June 1993 to May 1994, covering about 470 districts, 933 blocks and 4,700 village
panchayats. The findings revealed that nearly 82.16 percent of available funds were spent on
community development projects. High priority was given to rural connectivity. The wage and
non-wage component of the expenditure was 53:47; the share of SCs / STs employment was
satisfactory; Roughly 11 mandays of employment were created during the reference period to
each family members of workers; The evaluation has highlighted the need for the training
programme to PRI representatives as more than 50 percent of PRI heads were not imparted
training for implementation of JRY. 49.97% works undertaken by panchayats could not complete
because of shortage of funds. Some discrepancies were observed between payment of wages of
to male and female workers. The use of locally available material in various works undertaken
by Panchayats was not appreciable.
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5.8 Jawahar Gram Samridhi Yojana (JGSY) or (Jawahar Village Prosperity Scheme):
The government restructured JRY and EAS and launched a new programme Jawahar Gram
Samridhi Yojana (JGSY) to develop rural infrastructure at the village level in a planned manner.
This Programme came into effect from 1st April 1999 and ended by March 2002. The following
main features were added under JGSY for its better implementation:
The main emphasis of JGSY is to create rural infrastructure at the village level.
100% of funds (both central and state shares) are released directly to the village
panchayats through the Zilla Parishads(District Councils )
Village Panchayat is the sole authority for planning and its implantation with the
approval of Gram Sabha(Village Council).
Village Panchayat can execute the works / schemes cost up to Rs.50,000/- without
technical and administrative approval. However, Gram Sabhas approval is a must. It
provides freedom of PRIs from bureaucratic control in approval and technical
scrutiny of the works.
3% of annual allocation would be utilized for creation of barrier free infrastructure for
the disabled.
Panchayats can suitably relax 60:40 wage-material ratio for building up demand
driven rural infrastructure.
Social audit by Gram Sabha to be conducted for all works created under JGSY
Village level monitoring & vigilance committee to oversee and supervise the works /
schemes undertaken.
Works to be taken up under JGSY: All works that result in the creation of durable
productive community assets can be taken up by the village panchayat under the programme as
per the felt need of the area / people. Following works are given priority:
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Since inception until November 2002, about 6003.34 lakh mandays of employment
generated by utilizing an amount Rs.5046.26 lakhs. The percent of utilization of available funds
under the JGSY was 83% and completed 17.39 lakh works. During 2001-2002 Rs.1262.9 core
worth of food grains utilised towards payment of wages.
5.9
Employment Assurance Scheme (EAS): It was introduced with effect from 2nd
October 1993 in 261 districts in which revamped Public Distribution System was in operation. It
covered about 1,778 blocks. Later 1994-95 it was extended to 409 blocks under DPAP /DDP and
Modified Area Development Approach (MADA) blocks having a relatively larger concentration
of tribals. In March 1995, it was further extended to 256 blocks, of these 223 blocks were flood
prone blocks and 23 blocks were in Jammu & Kashmir. In 1996, it was extended to all rural
blocks of the country. The primary objective this scheme was to provide assured employment of
100 days of unskilled manual work to the rural poor who are in need of employment and seeking
it. The secondary objective is creation of economic durable community assets for sustained
production and employment generation
The assurance of 100 days of employment extended to the male and female rural
workers to a maximum of two adult members of a family who in the age group of 18
to 60 years normally residing in the villages of the blocks covered by EAS.
Persons, who are need of employment under EAS, should register their names in the
gram panchayat where they are residing. A family card will issued to every family
whose adult members are registered.
Employment provided to the members of the registered family under EAS or plan or
non-plan scheme and the details are recorded in the family card.
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It is centrally sponsored schemes and expenditure shared between centre and state on
80:20 basis.
The wage and material ratio of 60:40 to maintained for all works. If additional cost is
required for creation durable assets, it should be met from other sectoral programmes.
Implementing agencies are BDOs, district level officers of various line departments
and PRIs at all three levels.
When minimum 10 workers demand work, new projects can be started by the block
level officer for providing employment
The district collector has to prepare a shelf of projects of productive works containing
(i) block-wise works under normal plan /non-plan budget. (ii) New works which
should be taken up under EAS in each block.
The district collector is responsible for allocating the work to various implementing
agencies and coordinating their execution.
Under EAS, priority should be accorded to the works of soil and moisture conservation,
minor irrigation, rejuvenation of drinking water sources and augmentation of ground water,
traditional water harvesting structures, works related to watershed schemes, formation of rural
roads (linking villages with other villages / block headquarters) and roads linking the villages
with agricultural fields, drainage works, forestry etc. Land development and horticulture were
permitted activity in the land belong to BPL families.
Since its inception in October 1993, until November 1998, 4.12crore persons had
registered themselves under the Scheme, and 17823.47 lakh mandays of employment had been
generated by utilising an amount of Rs.8665.16 crore.
One of the weaknesses observed in the implementation of the Programme is that the
provision of employment under the scheme has not focused on the persons registered for the
purpose with the panchayat. Though EAS is a self-targeting programme, the need for providing
assured employment to the specific individuals registered with the panchayat is paramount. This
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Salient features:
The expenditure of the Scheme will be shared by centre and states in the ratio of
87.5:12.5. However, the cost of cash component of the Programme is shared by the
centre and state in the ratio of 75:25
The Scheme is exclusively implemented by the Panchayat Raj Institutions and can
take up works as per the felt need of the areas.
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The state governments and UT administrations will be free to calculate the cost of
food grains (paid as part of wages) at either BPL rates or APL rates or anywhere
between the two.
Use of machinery, which may displace manual labour is also not permissible.
Vigilance and Monitoring Committees at the state, district and block level have been
constituted for overseeing the implementation of the works under the SGRY.
There is a provision of special component under the SGRY for augmenting food
security through additional wage employment in the calamity affected rural areas.
Under SGRY about 264.6 lakh MT utilized during its implementation besides
27756.5 crores towards generating about 28130 lakh persondays of employment.
5.11 National Food For Work Programme (NFFWP): A need for the new programme
was felt because the existing resources in the Sampoorna Grameena Rozgar Yojana (SGRY)
were not sufficient to meet the requirement of additional wage employment in most backward
districts. Moreover, it was felt that the additional resources should be channelised into some
focus areas like water conservation and drought proofing which is the principal problem in some
states and major cause of backwardness of certain regions. Some areas are flood prone and
measurers for flood control require special attention in these areas in a planned manner. The
states were finding difficult to provide state share of funds and therefore a 100% Centrally
Sponsored Scheme was proposed so that the investment in backward areas does not suffer
because of lack of resources available with the states. NFFWP was launched in the month of
November 2004, in 150 most backward districts of the country, identified by the Planning
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Commission in consultation with the Ministry of Rural Development and the state governments.
The objective of the programme was to provide additional resources apart from the resources
available under the SGRY to 150 most backward districts of the country so that the additional
wage employment will be provided simultaneously providing of food security through creation
of economic, social and community assets in these districts.
The most 150 backward districts were selected on the basis of an exercise under taken by
the Planning Commission using three parameters viz., i) SC/ST population ii) Inverse
agriculture productivity per worker iii) inverse of agricultural wage rate (other than
special category states except Assam)
The wages under NFFWP both for skilled and unskilled labourers shall not be less than
the minimum wages fixed by the state government for agricultural laboures. Equal wages
to male and female workers shall be paid through a mix of cash and food grains. The food
grains so provided to the workers shall be calculated at BPL rate.
Special focus of the Programme will be on water conservation, drought- proofing, and
land development as a first priority. Flood control measures, rural connectivity in terms
of all-weather roads will be next priority. However, other productive works for ensuring
economic and sustainable works may be taken up depending upon local need.
A Five Years Perspective Plan be got prepared by the Collector of the district with the
assistance of the experts and in consultation with the appropriate level of panchayats.
Gram Panchayat-wise and block wise shelf of projects will be prepared based on local
priorities. The works for execution will be selected out of the shelf of projects so
prepared under the Perspective Plan. The works will be got executed through line
departments /Panchayat Raj Institutions (PRIs) reputed NGOs / SHGs as decided by the
collector.
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Guarantee
Act
In the 56th year of the Republic and working of the Constitution, the Parliament of India
passed the National Rural Employment Guarantee Act 2005 and notified on September 7, 2005,
towards fulfilment of constitutional obligation under Article 39 (a) and 41 of the directive
principles of state policy contained in Part IV of the Indian constitution. The NREGA draws
heavily on the experiences of the Maharashtra Employment Guarantee Scheme (MEGS) and on
the experiences of a number of rural wage employment programmes of the central and state
governments.
MGNREGA coverage:
The Act came into force in 2005. The Act mandates that all
districts are to be covered within five years of its notification. Therefore, its coverage has been
extended to 130 more districts (Phase-II) since April 1, 2007 and later extended to entire country
on 1st April 2008 and covering all 615 rural districts in 30 states and 5 union territories of union
of India. As per the section 4 of the Act, every State government within one year from the date
of commencement of this Act, shall make Employment Guarantee Scheme by notification for
providing not less than one hundred days of guaranteed employment in a financial year. The
principle Act was applicable to various states of India except Jammu & Kashmir. However, on
May 11, 2007 the Act extended to Jammu and Kashmir.
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To reduce distress migration from rural to urban areas and from one part of rural to
another part of rural areas in search livelihood;
Invigorating civic and community life, and enlivening of PRIs as they have been
entrusted to formulate, implement and monitor the scheme;
Each wage seeking family to be registered by Village Panchayat and after due
verification of details the household will be provided a Job card
The work should ordinarily be provided within 5 km radius of the village or else
extra wages to be given to the tune of 10% of minimum wage. Persons older in
age and women shall be given preference to work on worksites nearer to their
residence.
If the applicant is not provided employment within fifteen days of receipt of his
application or from the date on which employment has been sought in case of
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Every person who has done work to be provided minimum wage as notified by
the MoRD to each state.
This is demand based programme and demand emanating from the village
through the Gram Sabha.
PRIs have a principle role in planning and implementation. Gram Sabha (Village
Council) will recommend and prioritise the works. Shelf of projects is to be
prepared on the basis of priority assigned by GP.
The power to start a work is vested in both programme officer and gram
panchayat.
Such work would be selected from the shelf of projects, which would be ready
with administrative and technical approvals.
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Transparency, public accountability and social audit of all works are to be ensured
through institutional mechanisms at all level.
All accounts and records relating to the scheme shall be made available for public
scrutiny and any person desirous of obtaining a copy of such records may be
provided such copies on demand and after paying specified fee.
A copy of muster rolls of each scheme shall be made available in the office of the
GP and PO for inspection by any person interested after paying specified fee.
The overall implementation responsibility under the Act is with the District
Programme Coordinator and the Block level Programme Officer.
Social Audit of all the works executed will be done by the Gram Sabha once in
six months.
Land development
Flood control and flood protection works including drainage in water logged
areas.
Any other work which may be notified by the central govt. in consultation with
the state government.
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National and State Employment Guarantee Fund: The central and state governments
have established a fund called the National Rural Employment Guarantee Fund to be managed
according to the Rules, which are under consideration of its government. The grants to the state /
district for implementation of NREGS is released out of NEG fund.
Participatory approach in planning and implementation: The Act envisages a
collaborative partnership between the centre and state governments, the panchayats and local
community. Broadly, the main activities of implementation are at the village and block levels;
The Gram Sabha is the statutorily mandated institutional mechanism for eliciting community
participation. The other methods of community participation are also stipulated under the Act,
which include local vigilance and monitoring communities, local beneficiary committees, local
Self-Help Groups.
By December 2009, about 10 crore families have registered with the GPs and got the job
cards and 4.55 crore families provided employment on demand with an expenditure of Rs.74163
crore for generating 62811.4 lakh mandays of employment as per the information from
www.nrega.nic.in as on 30th December 2009.
Performance of MGNREGA
2006-07
2007-08
2008-09
2009-10
120
100
Percent
80
60
40
20
0
% HHs with
jobcards
% SCs in total
employment days
% STs in total
% of Others in total % of Women in
employment days employment days total employment
days
% of fund
utilization
Indicators
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The impact assessment of the NREGS on the overall quality of life of the beneficiaries
carried out by the PEO of Planning Commission. Due to the income generation through this
Scheme, the number of beneficiaries at the low earning level is reduced to nearly half in size
resulting this on the rise of HHs with marginally higher income. It was found that more than half
of the beneficiaries are agricultural and unskilled workers. There is also shift in the beneficiaries
expenditure pattern on food and non-food items. The survey revealed that the number of families
spending less on food has come down drastically where as there is a rise of families who are
spending more on food and non-food items
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Under EAS, as per official records, the overall average for the 14 sample states works
out to 62.81 days/person/year. At the beneficiary level, it was observed that all the
selected beneficiaries did not get employment in all the years under study.
Under FFWP nearly 79% of the selected beneficiaries were satisfied with the system
of distribution of food grains followed in their villages. Dissatisfaction was mainly
due to the inadequacy of stocks, delayed payments, remoteness of the distributing
centres and overcrowding in fair price shops.
Under NREP, the household income increased from Rs.2418 to Rs.3248. The average
wage rate paid under any wage employment programme is higher than that of the
market wage rate.
However, many of beneficiaries admitted that their consumption levels had gone up due
to the additional wage earnings. The increase in income helped them in meeting some of their
social obligations. Many studies by PEO indicated that the construction of roads linking villages
and towns opened better access to health and education. Thefts and crimes born out of hunger
came down due to the implementation of the Programme. Despite these tangible developments, it
was apprehended and was evidenced in some cases that the durable assets created under the
programme might benefit only the upper strata of the village community.
Inability of the Union Ministries to control the execution of the schemes with a view
to ensuring the attainment of the stated objectives in the most cost effective manner
and within the given time-frame.
There are too many schemes to be monitored. Multiplicity of rural development and
other Ministries of Centre schemes are in operation with similar objectives. For every
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Most schemes follow a blue print and top-down approach, with little flexibility given
to field staff.
States do not release the counterpart funds in time, leading to uncertainty about the
availability of funds at the field level.
Further, no local vigilance and monitoring committees were constituted for social
monitoring. The existing monitoring formats do not reflect whether the objectives of
the scheme were achieved or not.
The works / projects were executed on selectivity basis in the areas which benefited
the big farmers / local leaders.
Lack of awareness among the community and rural people regarding the wage
employment programme and opportunities.
Most of the works created under wage employment programme are not labour
intensive
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Even though the programmes clearly spelt out the worksite facilities, lack of
amenities to workers was observed in many studies.
Enormous delay and low wage payment and low participation of women workers was
also observed in implementation of various wage employment programmes.
None of the states have observed the prescribed norm of wagematerial ratio for
different programmes. In many of the wage employment programmes the cost of one personday
of employment was very high as the cost of material was higher than the maximum limit which
defeats the primary objective of additional employment generation to rural poor.
9. Summing Up
The concept of poverty came to stay in the planning literature in India, and along with
that employment interventions became a major policy focus in the eighties Poverty reduction
programme assumed the character of an appendage to the total planning process and the
possibility of getting integrated with the total development. The 1980s witnessed an integrated
approach to the reduction of poverty, unemployment and under employment. Integration was in
the sense of components under different schemes for the poor. On one hand, the economic base
of the backward areas was attempted to be upgraded with interventions for augmentation of
natural resources, and on the other, creation of rural employment programme for the poor
segment of the population was a major focus of planning. The employment policy of the Sixth
Plan focused its attention on underemployment and unemployment of the labour force. The
relative importance of wage employment programmes has gone up number of wage employment
programmes implemented from time to time with some modifications and innovations for their
effectiveness. Most of the wage employment programmes linkages between natural resources
particularly agriculture, environment and employment generation as majority of rural poor
depends on natural resources for their livelihood.
programmes are similar in nature to provide additional employment as well as create durable
assets.
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11. Keywords
MGNREGA
Wage employment
Rural employment programme
Desai Vasant: Rural development in India-past, present & future, A challenge in the
crisis, 2005
ii.
iii.
iv.
v.
Evaluation of Food For Programme, PEO study No. 114, Planning Commission, GoI,
1980
vi.
vii.
Singh R.P. Impact Assessment of Wage Employment Programmers (JRY & EAS) in
selected states, Jawahar Rozgar Yojana: A quick study, PEO study No.147, Planning
Commission, GoI,
viii.
ix.
Poverty Alleviation during 10th Plan Policy Issues, Planning Commission, GoI
Study of Crash Scheme for Rural Employment, PEO Study No. 104, Planning
Commission, GoI, 1979
x.
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xii.
xiii.
xiv.
xv.
The National Rural Employment Guarantee Act, Operational Guidelines (2008), Dept. of
Rural Development, GoI, New Delhi
xvi.
xvii.
xviii.
Annual Report, Ministry of Agriculture, Dept. of Rural Development, New Delhi, 198990.
xix.
Annual Report, Ministry of Agriculture, Dept. of Rural Areas and Employment, New
Delhi, 1998-99.
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Structure
1.
1.
Introduction
2.
Objectives
3.
4.
5.
6.
7.
Summing up
8.
9.
Introduction
The Rural development in India requires priority because more than 65 per cent of the
population is still living in villages and over 85 per cent of the rural people are dependent on
agriculture for their livelihood. More than 75 per cent being small and marginal farmers, most of
their earnings are utilised to ensure food security. With the growing population and overexploitation of natural resources, the pressure on food security and employment generation will
continue to mount, further affecting the quality of rural life. To achieve rural prosperity, the
development strategy should focus on improved agricultural production while generating gainful
self-employment for small farmers and weaker sections of the society. With year-round
employment, the poor can earn enough to meet their basic needs.
Agriculture is the main source of rural employment, but being deprived of irrigation
facilities, a majority of the small and marginal farmers are heavily under-employed for 6-8
months in a year. Even under well established irrigated conditions, the growth of the agriculture
sector itself has been almost stagnant for the last 8-10 years. Therefore, there is a need to develop
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a suitable strategy to improve the economy of the rural sector through employment generating
programs.
2.
Objectives
To highlight support systems and services required for sustainable self employment,
and
3.
one may perform on his own as a gainful occupation, and this may consist of producing buying
and selling goods, or rendering services for a price.
Characteristics of self-employment
Self-employment involves doing something on ones own to earn ones
livelihood.
It involves ownership and management of activities by a person although he/she
may take the help of one or two persons to assist him/her. Thus, self-employment
may provide employment to other persons as well.
The earning from self-employment is not fixed. It depends on the income one can
earn by producing or buying and selling goods or providing services to others at a
price.
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In self-employment, the owner alone has to take the profit and bear the risk of
loss. So, we find a direct link between the effort and reward in self-employment.
Trading
The trade involves buying and selling of goods and services. With small amount of
investment one can start and run a small trading unit. One can think of starting a small grocery or
stationery shop in his/her locality. If one is able to invest more capital and ready to take risk, then
wholesale business is a good option. One can also take up some agency business or become a
stockist.
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Manufacturing
One can start a small industry of manufacturing bricks, or producing bakery items or
confectionery. All these businesses require small amount of capital and simple equipment.
Farming is another such area in which a person can work all alone or take the help of one or two
persons. This is an age-old area of self-employment. Orchards, dairy, poultry, sericulture,
fisheries, horticulture, etc. are good examples of avenues of self-employment.
Professional work
Occupations that require special knowledge and training in a particular field also provide
opportunities of self-employment. Lawyers, doctors, chartered accountants, architects, engineers
and journalists fall in this category. However, one has to follow certain code of conduct framed
by their association and need specialized knowledge and training.
Individualised services
Tailoring, motor repairing, hair cutting, beauty parlour, fashion designing, interior
decoration etc. are some of the business activities, which provide individualized services to the
consumers. These can be easily started and run by individuals. These activities are based on the
personal skills of those who perform them. Blacksmiths, carpenters, goldsmiths are all selfemployed persons. You choose the area of your interest to pursue the career in self-employment.
If you decide to start a small business of your own, you must have complete knowledge about the
line you choose and the scope and importance of small business, including the government
policy and institutional support for its promotion.
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Group based activities/ enterprises: A group of 3-6 persons can take up an enterprise
and work together and sharing the responsibilities and profits. Example
1. Manufacturing and trading of bricks, cement bricks, stone quarry
2. Fruit processing
3. Leasing in of flower and fruit gardens
4. Collection and sale of agricultural produce
5. Cattle-feed
6. Bamboo/ jute materials/ products
Services
Manufacturing
Trading
1.PCO
1.Sale of dairy/ poultry
1.Cement bricks
2.Wet grinder
2.Low cost sanitary products products
3.
Renting
out
centering 3.Moulded cement products 2.Sale of lubricants and auto
equipment
4.Processing of fruits and fuels
4.Repair and Maintenance of vegetables, masala products 3.Retail sale of pesticides
agriculture equipments
4. selling of garments/sarees
5.Rural courier service
6.Pathological labs
7. Tent house
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Women and Children in Rural Areas (DWCRA), Supply of Toolkits in Rural Areas (SITRA) and
Ganga Kalyan Yojana(GKY), besides Million Wells Scheme (MWS).
PROGRAMME (PMEGP):
Government of India has introducd a new credit linked subsidy programme called Prime
Ministers Employment Generation Programme (PMEGP) by merging the two schemes that
were in operation till 31.03.2008 namely Prime Ministers Rojgar Yojana (PMRY) and Rural
Employment Generation Programme (REGP) for generation of employment opportunities
through establishment of micro enterprises in rural as well as urban areas.
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in the field of rural development. The objective of IRDP was to enable identified rural poor
families to cross the poverty line by providing productive assets and inputs to the target groups.
The assets which could be in primary, secondary or tertiary sector are provided through financial
assistance in the form of subsidy by the Govt. and term credit advanced by financial institutions.
The Programme was implemented in all the blocks in the country as a centrally sponsored
scheme funded on 50:50 basis by the Centre and State. It was stipulated that at least 50 per cent
of the assisted families should belong to Scheduled Caste and Scheduled Tribe categories. It was
also required that at least 40 per cent of those assisted should be women under this Programme.
(b) Training Of Rural Youth For Self-Employment (TRYSEM): It aimed to train rural
youth from the target group of families in skills so as to enable them to take up self/wage
employment. It has been laid down that the coverage of youth from SCs and STs communities
should be at least 50 per cent of the rural youth trained. Out of the total beneficiaries, at least 40
per cent should be women.
(c) Development of Women and Children in Rural Areas (DWCRA): This programme
was launched as a sub-component of IRDP and a centrally sponsored scheme of the Department
of Rural Development with UNICEF cooperation to strengthen the women's component of
poverty alleviation programmes, is directed at raising the income levels of women of poor
households so as to enable their organised participation in social development towards economic
self reliance. The DWCRA's primary thrust was on the formation of groups of 15 to 20 women
from poor household at the village level for delivery of services like credit and skill training,
cash and infrastructural support for self employment. Through the strategy of group formation,
the programme was aim to improve women's access to basic services of health, education, child
care, nutrition and sanitation.
(d) Supply of Improved Tool-Kits to Rural Artisans (SITRA): This Programme was
implemented as a part of IRDP. At the district level, the DRDA was the nodal agency. The
Scheme was formulated and circulated to all the State Governments on 20th. July, 1992. Under
this Programme, any suitable improved hand tool was to be provided. All the prudential rural
artisans will be able to enhance the quality of the product to increase their production and their
income and lead a better quality of life.
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(e) Ganga Kalyana Yojana (GKY): It is a centrally sponsored scheme, being launched
with effect from 01.02.1997. The objective of the Scheme was to provide irrigation through
exploitation of ground water (bore wells and tube wells) for individual and group of beneficiaries
belonging to the target group.
These programmes were conceived to be complementary to each other for achieving the
goal of poverty alleviation in rural areas. Over years, however, there was erosion in the process
of implementation of the programmes. However, each programme was implemented as a
separate and independent programme that focused more on the achievement of individual
programme targets. Experience and the studies have clearly revealed that over all the impact of
the programmes in poverty alleviation was less than the expected of them.
The Planning Commission set up a committee under the chairmanship of Prof. Hashim,
Member, Planning Commission to review and rationalise the various centrally sponsored
schemes for poverty alleviation and employment generation. In so far as self employment
programmes are concerned, the Committee recommended that IRDP should continue to be the
single self employment programme, and also recommended a concerted move from the
predominantly individual beneficiary approach to a group approach, as well as identification of
activity clusters for concerted action
During the Ninth Plan, these anti-poverty programmes have been restructured to enhance
the efficiency of the programmes for providing increased benefits to the rural poor. Self
employment programmes have been revamped by merging all these programmes in to a holistic
self-employment scheme called Swarnjayanti Gram Swarozgar Yojana (SGSY).
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Objectives:
To bring the assisted poor families (Swarozgaris) above the poverty line by
providing them income-generating assets through a mix of bank credit and governmental
subsidy.
To bring the assisted BPL (below poverty line) family above the poverty line by
Main Features
Emphasis on mobilization of rural poor to enable them to organize into Self Help
Group.
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Provision for development of infrastructure to provide missing critical link. 20% fund
(in case of NE State 25%) is earmarked for infrastructure development.
15% fund earmarked for special projects to ensure a time bound programme for
bringing specific number of BPL families above poverty line.
Funding Pattern: The funds are shared between Centre and the States in ratio of 75:25
Target Group:
Families below the Poverty Line (BPL) in rural areas constitute the target group
of the SGSY.
Under SGSY, the beneficiaries are known as Swarozgaris. The swarozgaris can
be either individuals or groups. The programme lays emphasis on the group
approach, under which rural poor are organized in to Self-Help Groups (SHGs).
Within the target group, special safeguards have been provided to vulnerable
sections, by way of reserving 50% benefits for SCs/STs, 40% for women and 3%
for disabled persons.
Strategy: It covers all aspects of self-employment of the rural poor viz. organisation of
the poor in to Self Help Groups(SHGs) and their capacity building, training, selection of key
activities, planning of activity clusters, infrastructure build up, technology and
marketing support.
(PRIs), the banks, the line departments and the non-governmental organizations (NGOs).
Social Mobilization of the Poor: A major shift of the SGSY from the previous
programmes is in terms of its emphasis on social mobilization of the poor. The programme
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focuses on organization of the poor at grassroots level through a process of social mobilization
for poverty eradication.
An SHG may consist of 10-20 persons belonging to families below the poverty
line. A person should not be a member of more than one group.
In the case of minor irrigation schemes, disabled persons, and in difficult areas i.e.
hills, deserts and sparsely populated areas, the number of persons in a group
may range from 5-20.
Efforts have to be made to involve women members in each SHG. 50% of SelfHelp Groups in each block should be exclusively for women.
NGOs
or
Community Based
Organization
(CBOs)/
Community
building.
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Grading of the SHGs: The formation stage generally lasts for six months. It is necessary
at the end of six months each SHG is subject to test whether it is evolved in to strong group
which is ready to go in to the next stage of evolution. This is done through a grading exercise to
identify the weakness, if any and help the group to develop in to a good group. After passing the
Grade I, the group is eligible to get revolving fund and second grading
Selection of Key Activities: The SGSY emphasizes assistance to the Swarozgaris for
those activities which have been identified and selected as key activities in terms of their
economic viability in the area.
Each block may select about 10 key activities but focus should be on 4-5 Key
Activities based on local resources, occupational skills of the people and availability
of markets so that the Swarozgaris can draw sustainable incomes from their
investments.
Block Level SGSY Committees are mainly responsible for selection of key activities
which should be done through participative approach. Selection of key activities
should be done in consultation with banks, industrial/technical organizations, local
Khadi & Village industries officials and district industry center
The selected key activities are to be recommended by Panchayat Samiti and finally are
to
be approved by District Level SGSY Committee. Any new activity can be added
to list of key activity by the District Level SGSY Committee but ordinarily selected
key activities should not exceed 10 in a block.
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Cluster Approach: SGSY stresses on cluster approach for taking up economic activities.
The key activities are to be taken up in clusters. The cluster may not merely be geographic
agglomerations but limits where backward and forward linkages can effectively be established.
Separate clusters are to be taken up or each activity. More and more Swarozgaris (Self
Employed)can be added to the cluster each year. The cluster approach in the programmes is
adopted to facilitate Infrastructure and marketing support to the activity.
Project Approach: The SGSY adopts a project approach for each key activity. Project
reports are to be prepared in respect of each identified key activity. The banks and other financial
institutions have to be closely associated and involved in preparing these Project Reports, so as
to avoid delay in sanctioning of loans and to ensure adequacy of financing.
Project report should include all aspects like level of investment required at Swarozgaris
level, economies of group lending, return from the activity, repayment schedule, technical input
required by Swarozgaris , training requirement and mode of training, credit, infrastructure and
marketing requirement and identification of resources to develop them, net accruable income
from activity.
ii) Credit is a critical component of the SGSY, subsidy being a minor and enabling
element. Accordingly, the SGSY envisages greater involvement of the banks.
Iii) Subsidy under the SGSY to individuals is uniform at 30% of the Project Cost subject
to a Maximum of Rs. 7500/-.
iv) For SCs/STs and disabled persons, the subsidy is 50% of the Project Cost, subject to a
maximum of Rs. 10,000/-.
v) For groups of Swarozgaris (SHGs), the subsidy is 50%of the cost of the scheme,
subject to per capita subsidy of Rs. 10,000/- or Rs. 1.25 lakh which ever is less. There is no
monetary limit on subsidy for Irrigation Projects. Subsidy is back ended.
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Revolving Fund Assistance under SGSY: Revolving Fund is to be given by DRDA and
Banks as cash credit to SHGs when it passes first grading.
- Quantum of Revolving Fund: DRDA provides Rs.10, 000 to each SHG as Revolving
Fund; banks provide cash credit of Rs.15, 000 for Grade-I SHGs.
- Credit by Bank is up to four times of Group Corpus.
Quantum of subsidy
a) For individual Swarozgaris, 30% of Project cost subject to a maximum of Rs.7500,
in case of SC/ST & disabled, 50% of Project cost or Rs.10, 000 whichever is less.
b) For Self Help Groups, 50% of project cost subject to Rs.1.25 lakhs or Rs.10, 000 per
SHG Member whichever is less?
c) There is no monetary limit on subsidy for irrigation projects.
Taking up of economic activities/enterprises
Once the SHG has passed through second grade, it is eligible to receive assistance for
economic activities. This is in the form of loan and subsidy. There are two ways SHG can
receive this assistance.
a) Loan-cum- subsidy to the individuals in a group provided the prospective Swarozgaris
in the group are capable of and willing to take income generating activities.
b) Loan- cum- subsidy to the group where all the members of the group want to take up a
group activity.
Training:
training courses. Those, who have been sanctioned loans, are to be assessed and given necessary
training. The design, duration of training and the training curriculum is tailored to meet the needs
of the identified key activities. DRDA will be entitled to meet the expenses, incurred by the
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training institutions for both basic orientation and skill development training out of the SGSY
funds.
Infrastructure Development: SGSY provides for review of existing infrastructure for the
cluster of activities and identification of gaps. Critical gaps in investments have to be met from
the funds available under the Programme infrastructure, subject to ceiling of 29% (25% in case
of North- Eastern States) of the annual allocation made under the scheme for each district.
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state KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District
Industries Centers (DICs) and banks.
Objectives
To bring together widely dispersed traditional artisans/ rural and urban unemployed
youth and give them self-employment opportunities to the extent possible, at their place.
and prospective artisans and rural and urban unemployed youth in the country, so as to help
arrest migration of rural youth to urban areas.
To increase the wage earning capacity of artisans and contribute to increase in the
Beneficiaries
Co-operative societies
Partnership firms/private limited companies/joint borrowers/co- borrowers/coobligators/joint ventures/HUF do not come under the ambit of Gramodyog Rozgar
Yojana
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Commissioner / Collector concerned. The Bankers should be involved right from the beginning
to ensure that bunching of applications is avoided.
Financial Institutions
Beneficiarys
contribution
(of project cost
General category
Rate of Subsidy
(of project cost)
Urban
Rural
10%
15%
25%
25%
35%
Note: (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25
lakh.
(2) The maximum cost of the project/unit admissible under business/service sector is Rs.
10 lakh.
(3) The balance amount of the total project cost will be provided by Banks as term loan
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Subsidy: The Government subsidy under the Scheme will be routed by KVIC through the
identified banks for eventual distribution to the beneficiaries / entrepreneurs in their bank
accounts.
development.
Awareness camps: KVIC and State DICs will organize awareness camps, in close
coordination with each other and KVIBs, throughout the country to popularize PMEGP and to
educate potential beneficiaries in rural, semi rural and urban areas about the Scheme. The
awareness camps will involve participation from the unemployed men and women with special
focus on special category, i.e., SC, ST, OBC, Physically challenged, ex-servicemen, minorities,
women. The requisite information in this regard will be obtained by KVIC/KVIBs/DICs from
State level organizations like SC/ST Corporations, NYKs, reputed NGOs and employment
exchanges
Budget for EDP will be provided to Training centers. An amount of Rs. 2500/- to
Rs.4000/- per trainee for a period of two to three weeks towards course material, honorarium to
guest speakers, lodging ,boarding expenses, etc. is admissible under the Scheme. KVIC will
reimburse the expenditure to the training centers / institutes chosen for the purpose, in
accordance with the procedures to be separately devised by it and circulated to KVIBs and DICs.
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Village industry
Any village industry including coir based projects located in the rural area which
produces any goods or renders any service with or without the use of power and in which the
fixed capital investment per head of a full time artisan or worker i.e. capital expenditure on
workshop/ workshed, machinery and furniture divided by full time employment created by the
project does not exceed Rs. 1 lakh in plain areas and Rs.1.50 lakh in hilly areas.
The beneficiary can directly approach bank/financial institution along with his/her
project proposal or it can be sponsored by KVIC/ KVIBs /DIC/Panchayat
Karyalayas etc. However, the applications received directly by the banks will be
referred to the Task Force for its consideration of the scheme in accordance with
the targets allocated
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been conceptually well designed to build the capacity of the poor to take up self employment.
However, number of operational issues is encountered in the process of implementation. As
PMEGP is a new a programme, enough information in terms operational issues and coverage is
not yet available.
Social mobilisation and formation of homogeneous self help group with people from BPL
families in the village and sustain their interest for the period required (3 years) to stabilise
the group is a time consuming process.
The development functionaries at the block / village level do not have much time and skill to
create awareness and make the poor people to understand the objectives and benefits of the
programme. Functionaries are more interested in achieving the programme targets so quality
of the programme suffers.
Different promotional agencies like DRDAs, NGOs and banks are involved in formation of
SHGs under the programme, therefore there is a problem of multiple membership.
Lack of importance for capacity building and developing cohesiveness among the group
members is resulting in defunct / less stable groups.
Heterogeneity of groups in terms of caste / APL / BPL and the size of the group are affecting
the distribution of benefits like revolving fund and subsidy.
Grading of SHGs is a very time consuming with a large number of these groups
Identification and selection of key activities matching with existing skill of the swarozgaris is
a major problem in promoting self employment opportunities under the programme.
More women self-help groups have been formed, but self-help groups for men are not
forthcoming. In general, men prefer to avail credit and other benefits on individual basis.
SHGs often emulate/ duplicate a successful one choosing the same activity which in turn
reduces the demand for their produce and lower productivity.
Training institutions are not focusing on development of business skills among the
swarozgais which is crucial for management of enterprise.
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Credit is a critical input for starting an enterprise. However, the banks are not responding
adequately, neither advancing cash component of revolving fund or loans for taking up
income generating activities/ enterprises
Banks show greater interest in sanctioning individual loans who have not availed loan or
individuals who are not defaulters than sanctioning large amount of loan for group economic
activity.
The capacity of the poor people to absorb credit and to start enterprise is very limited. This is
partly to do with their lack of literacy and business skills and their inability to take risks
.Therefore most of the swarozgaris are not willing to take up any enterprise.
The poor people require a package of services to go beyond micro credit. Therefore
infrastructure and marketing support
own enterprises.
targets
their
There is lack of coordination between banks and block level officials in recovery
Hence banks are not willing to provide adequate credit to SHGs for
of loans.
taking up new
enterprises.
7. Summing up
In the process of economic development of a country, several changes occur over a
period of time. One such change is the diversification of rural employment structure in favor of
rural self employment .This is due to quantum of shift of agriculture work force to nonagriculture sectors.
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the rural poor for self - employment, the overall objective was not being effectively realized,
primarily due to the reason that multiplicity of programmes, being viewed as separate
programmes in themselves, resulted in a lack of desired linkages among these programmes and
the implementation being more concerned with achieving individual programme targets rather
than dealing with the substantive issue of sustainable income.
There are two major self- employment programmes namely SGSY and PMEGP are being
implemented are supported by two ministries, Ministry of Rural Development (SGSY) and
Ministry of Micro, Small and Medium Enterprises (PMEGP), Government of India. SGSY deals
with BPL families and special emphasis for the welfare of SCs/STs, women and disabled in
rural areas. PMEGP is concerned with unemployed men and women with special focus on SCs,
STs, OBCs, Physically challenged, ex-servicemen, minorities, women and artisans in rural as
well as urban areas.
2.
3.
4.
5.
6.
7.
8.
9.
What are the support services are extended by the government to take up
enterprises?
10. How much loan from the bank can be availed under the SGSY/PMEGP ?
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9. Keywords
Self Employment
SGSM
PMEGP
IRDP
DWCRA
TRYSEM
KVIC
DIC
DRDA
ii.
iii.
Ministry
of
Rural
Development,
India.http://www.rural.nic.in/g1.htm
iv.
v.
vi.
vii.
PGD-SRD, 2010-11
Rural
Development,
Government
of
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Structure
1. Introduction
2. Concept of Drought
3. Types of Drought
4 . Drought Prone Areas Programme
5. Guidelines for Watershed Development
6. Peoples Participation
7. Summing up
8. Know Your Progress
9. Further Readings / References
1. Introduction
In the Unit, an attempt is made to describe the concepts of Drought, DPAP and DDP with
clear bases of usage with field settings. Special Area Programmes have been formulated to deal
with special problems faced by certain areas arising out of their distinct geo-physical structure
and concomitant socio-economic development.
2. Concept of Drought
A drought is an extended period of months or years when a region notes a deficiency in
its water supply. Generally, this occurs when a region receives consistently below average
precipitation. It can have a substantial impact on the ecosystem and agriculture of the affected
region. Although droughts can persist for several years, even a short, intense drought can cause
significant damage and harm the local economy. This global phenomenon has a widespread
impact on agriculture. The United Nations estimates that an area of fertile soil the size
of Ukraine is lost every year because of drought, deforestation, and climate instability. Lengthy
periods of drought have long been a key trigger for mass migration and played a key role in a
number of ongoing migrations and other humanitarian crises in the Horn of Africa and the Sahel.
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Drought is a normal, recurring feature of the climate in most parts of the world. It is
among the earliest documented climatic events, present in the Epic of Gilgamesh and tied to
the biblical story of Joseph's arrival in and the later Exodus from Ancient Egypt. Hunter-gatherer
migrations in 9,500BC Chile have been linked to the phenomenon, as has the exodus of early
man out of Africa and into the rest of the world around 135,000 years ago. Modern peoples can
effectively mitigate much of the impact of drought through irrigation and crop rotation. Failure
to develop adequate drought mitigation strategies carries a grave human cost in the modern era,
exacerbated
by ever-increasing population
densities.
Recurring
droughts
leading
to desertification in the Horn of Africa have created grave ecological catastrophes, prompting
massive food shortages, still recurring. To the north-west of the Horn, the Darfur conflict in
neighboring Sudan, also affecting Chad, was fueled by decades of drought; combination of
drought, desertification and overpopulation are among the causes of the Darfur conflict, because
the Arab Baggara nomads searching for water have to take their livestock further south, to land
mainly occupied by non-Arab farming peoples.
According to a UN climate report, the Himalayan glaciers that are the sources of Asia's
biggest rivers :
Ganges, Brahmaputra, Indus
by 2035 due to global warming. Approximately 2.4 billion people live in the drainage basin of
the Himalayan rivers.
India, China, Pakistan, Bangladesh, Nepal and Myanmar could
experience
floods
followed by droughts in coming decades. Drought in India affecting the Ganges is of particular
concern, as it provides drinking water and agricultural irrigation for more than 500 million
people. The west coast of North America, which gets much of its water from glaciers in
mountain ranges such as the Rocky Mountains and Sierra Nevada, also would be affected.
Drought is a temporary aberration; it differs from aridity, which is restricted to low
rainfall regions and is a permanent feature of climate. Drought is an insidious hazard of nature. It
originates from a deficiency of precipitation that persists long enough to produce a serious
hydrologic imbalance. Drought should be considered relative to some long-term average
condition of balance between precipitation and evapotranspiration (i.e., evaporation and
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Intensity is generally measured by the departure of some climatic index from normal and
is closely linked to duration in the determination of impact. Impacts are, in turn, related to the
timing (e.g., delays in the start of the rainy season, occurrence of rains in relation to principal
crop growth staged) and effectiveness of rainfall (e.g. number of rainfall events). Other climatic
factors such as temperature, wind and humidity can significantly aggravate its severity.
3. Types of Drought
Droughts are categorized as meteorological, hydrological, agricultural and socioeconomic (Nagarajan 2003).
a) Meteorological drought is related to the deficiency of rainfall compared to
long-term average amounts on monthly, seasonal or annual tile scales. Another definition
if meteorological drought identify periods of drought on the basis of the number of days
with precipitation less than some pre-determined thresholds. The India Meteorological
Department (IMD) uses a meteorological definition of drought based entirely on rainfall
deficiency from normal of the mean annual, mean summer monsoon, mean monthly and
mean weekly rainfall. This classification covers special scales from meteorological subdivisions of India as a whole. As per IMD, meteorological drought is defined as occurring
when the seasonal rainfall received over an area is less than 75% of its long-term average
value. It is further classified as moderate drought if the rainfall deficit is 26-50% and
severe drought when the deficit exceeds 50% of normal. A year is considered to be a
drought year for the country if the area affected by the drought is more than 20% of the
total area of the country.
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defined on a watershed or river basin scale. Hydrological droughts are usually out of
phase with or lag the occurrence of meteorological droughts. Water in hydrologic storage
systems (e.g., reservoirs, rivers) is often used for multiple and competing purposes (e.g.,
flood control, irrigation, recreation, hydropower), further complicating the sequence and
quantification of impacts. Although climate is the primary contributor to hydrological
drought, other factors such as changes in deforestation, land degradation and the
construction of dams all affect the hydrological system of the basin.
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water levels due to continuous exploitation without any effort to recharge the
underground aquifers.
Though the Programme created some positive impact in terms of creating durable public
assets in the programme areas, the overall impact of the programme in effectively containing the
adverse effects of drought was found to be not very encouraging. In addition, many of the
programme States had also been demanding inclusion of additional areas under the programme.
Keeping this in view a High Level Technical Committee under the Chairmanship of Prof. C.H.
Hanumantha Rao, Ex- Member, Planning Commission critically reviewed the contents,
methodology and implementation processes of all area development programmes and suggested
suitable measures for improvement.
DPAP, a centrally sponsored scheme, in operation since 1973, aims at restoring
ecological balance in the drought prone areas and mitigation of the adverse effects of drought on
crops and livestock through integrated development of natural resources by adoption of
appropriate technologies. However, the program fell short of its initial objectives despite large
expenditure.
DPAP is aimed at developing the drought prone area with an objective of drought
proofing by taking up of soil land moisture conservation, water harvesting structures,
afforestation and horticulture programs on a comprehensive micro watershed basis. During 199495 the program was implemented in 69 blocks of 8 districts. From 1995-96 the program is
extended further: 11 districts with 94 blocks under the scheme and Anantapur with 16 blocks
under Desert Development Programs (DDP). So far, 3518 watersheds were taken up covering
110 blocks in 12 districts covering an area of 17.6 lakh hectares. Almost 30 percent of the total
watersheds in country are located in Andhra Pradesh. Total Rs.507.57 crores are spent towards
implementation of the program from 1995-96 to 2002-03. The expenditure for this program is
shared by centre and state governments in the ratio of 75:25.
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(50% allocation in DPAP and DDP areas) were issued in October, 1994 which came into effect
from 1995-96.
There are 7090 VSS actively involved in protection and development of forests.
8.71 lakh hectares has been treated so far out of 17.40 lakh hectares of forest area under
VSS. T he Joint Forest Management program is being supported by the World Bank
funded A.P. Community Forest Management Project, NABARD assistant for RIDF
schemes and Government of India funded Forest Development agencies.
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water available underground in the most efficient manner while improving productivity.
It is contemplated that in the first phase an extent of 2.50 lakh ha would be covered at an
outlay of nearly Rs. 1200 Cr. The farmers will be given 50% state Government subsidy
on the unit cost.
The development of semi arid and rain fed drought prone areas is one of the
priority areas of Government of Andhra Pradesh and it is also established that
development of natural resources in these areas will lead to sustainable rural livelihood.
Participation of the committee of resource poor and landless as primary stakeholders is
precondition of sustainable rural livelihood. Therefore, the Government of Andhra
Pradesh has entered into an agreement with Department for International Development
(DFID, UK), who shares this vision, for implementing AP Rural Livelihoods Project
(APRLP) in Anantapur, Kurnool, Mahabubnagar, Nalgonda and Prakasam districts. The
APRLP will facilitate the objective of people centred development input to the ongoing
watershed Program of government including 500 new innovative watersheds, sustainable
rural livelihood initiatives in 2000 ongoing watersheds, capacity building of various
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stakeholders, research and lesson learning for policy initiatives, and infrastructure
support.
e) Watershed Development
National Agriculture Bank for Rural Development (NABARD) finances a
watershed development fund. Due to watershed development Program, the proportion of
area under irrigation has increased by 19 to 129 percent among all households. Total
employment has gone up by 11 to 29 percent. Yield rates have gone up for irrigated as
well as un-irrigated crops. Only 50 percent of the watersheds studied are economically
viable in terms of incremental returns. The equity effect is not clearly known, though the
impact on rich and medium households possessing of lands seems higher. Drinking water
situation improved substantially. Ground water levels improved to a limited extent.
Migration of labor decreased during execution period. But in majority of cases, this is not
sustained after the executing period. Households preference for education increased. The
role of women in financial matters has improved substantially.
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Objectives
The basic objective of the programme is to minimize the adverse effects of
drought on production of crops and livestock and productivity of land, water and human
resources ultimately leading to the drought proofing of the affected areas. The
programme also aims to promote overall economic development and improving the
socio-economic conditions of the resource poor and disadvantaged sections inhabiting the
programme areas.
Strategy
The common Guidelines for Watershed Development provide for a uniform
strategy in the implementation of all area development programmes viz. DPAP, DDP,
IWDP and EAS. The main features of this strategy are :
Coverage
At present, DPAP is in operation in 947 blocks of 155 districts in 13 States. The
corresponding physical area for treatment under the programme works out to
approximately 7.45 lakh square kilometers. The States where DPAP is under
implementation along with number of districts and blocks may be seen in the Table-1
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TABLE - 1
S.No
Andhra Pradseh
11
94
Bihar
16
121
Gujarat
10
52
Himachal Pradesh
22
Karnataka
11
81
Madhya Pradesh
25
134
Maharashtra
22
148
Orissa
47
10
Rajasthan
10
32
11
Tamil Nadu
15
80
12
Uttar Pradesh
18
91
13
West Bengal
36
155
947
Total
Districts
Blocks
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desertification and adverse climatic conditions on crops, human and livestock population,
combating desertification and restoring ecological balance of the area.
In hot sandy desert areas, sand dune stabilization and shelter belt plantations were given
greater weightage. On the other hand, in cold desert areas, since rainfall is negligible, crop
cultivation and afforestation could be taken up only through assured irrigation. In these areas, the
main activity was water resources development by construction of channels for diversion of
water flow from the glacier and springs to the fields and lift irrigation works in the valleys.
Through the Programme created good impact in the areas treated, overall impact in the identified
areas in the country was not very encouraging. Some State Governments had also been
requesting this Ministry for inclusion of additional areas under the programme. With a view to
identifying the infirmities in the programme and also to consider the cases for inclusion of
additional areas, a Technical Committee on the DPAP and the DDP was constituted in 1993-94
under the Chairmanship of Prof. C.H. Hanumantha Rao, Ex-member, Planning Commission. The
Committee submitted its Report in April, 1994.
The main reasons identified by the Committee for the far from satisfactory results under
the programme was that area development was not taken up on watershed basis and the
involvement of the local people both in planning and execution of the programme was virtually
non-existent. Besides inadequacy of funds, non-availability of trained personnel and taking up of
too many activities, which were neither properly integrated nor necessarily related to the
objectives of the programme, were also identified as contributory factors towards reducing the
impact of the programme.
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Objectives
In a broad sense, the objectives of the programme are to promote the economic
development of village community, restore ecological balance and improve the economic
conditions of resource poor and disadvantaged section of society through creation, widening and
equitable distribution of resources and increased employment opportunities. DDP has been
envisaged as an essentially land-based activity and conceived as a long-term measure for
restoration of ecological balance by conserving, developing and harnessing land, water, livestock
and human resources. Objectives of the programme have been recast as under :-
Strategy
Although the DDP has been under implementation in several areas, its impact had been
felt only in the areas actually treated by core activities. Growing population and poverty
compounded the problem by increasing pressure on fragile ecosystems. On the basis of lessons
learnt, the major elements of new strategy are :
Area development under the programme will be on watershed basis only and a
watershed project of about 500 hectares would be the field unit for implementation
and it will be developed in four years.
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There would be direct participation of the local people in planning and development
of watersheds and maintenance of assets after the project is completed through
Watershed Association (WA) comprising of all adults residing within watershed
project area and its executive body named as Watershed Committee (WC).
The Zilla Parishads, Panchayat Samitis and Gram Panchayats have the right to
monitor and review the programme at district, blocks and village levels. The
Panchayat Raj Institutions can also function as Project Implementation Agencies
(PIA) if they so desire.
Coverage
Under DDP 227 blocks of 36 districts having an area of 457,432 sq.kms. in 7 States are
covered. The States where DDP is under implementation are Andhra Pradesh, Gujarat, Haryana,
Himachal Pradesh, Jammu and Kashmir, Karnataka and Rajasthan. The coverage of the
programme is given in Table-2.
TABLE 2
S.No
Districts
Blocks
Andhra Pradesh
16
Gujarat
47
Haryana
44
Himachal Pradesh
10
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Karnataka
22
Rajasthan
16
85
36
227
Total
At the district level the District Rural Development Agency/Zilla Parishad will be in
overall charge of implementation of the programme. The DRDA/ZP will be advised
in regard to selection of Project Implementation Agencies (PIAs), approval of
Watershed Plans, Training, Publicity etc., by a district level Watershed Development
Advisory Committee under the chairmanship of Project Director, DRDA/CEO, ZP.
The DRDA/ZP will select the PIAs which could be besides DRDA/ZP itself, other
line departments, autonomous organizations, public sector undertakings, voluntary
organizations, cooperatives, banks, etc. The PIA will remain in charge of
implementation of the Watershed Projects (WPs). A multi-disciplinary team
designated as Watershed Development Team (WDT) shall assist each PIA in the
implementation of these WPs.
Planning and implementation of the Watershed Project will be done with the technical
support of multi-disciplinary Watershed Development Team by the WA comprising
all adult members of the village(s) in the watershed area. 75% of the project fund will
be spent directly by the Watershed Association on the development works of each
project.
As per Guidelines for Watershed Development issued by this Ministry, 10% of the
total project cost is earmarked for administrative expenditure, 5% for community
organization works, another 5% for training to people associated with the
implementation of Watershed Projects and 80% for works.
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As regards the Panchayati Raj Institutions (PRIs),the Zilla Parishad at the district
level may remain overall in-charge of implementation. The Panchayat Samiti and
Gram Panchayat will have the right to monitor and review the implementation of
programme and can take the responsibility of implementing the projects as PIAs.
The Guidelines also provide for an elaborate institutional arrangement at the Centre for
monitoring, review and policy making, at the State level for monitoring and review of
programmes and at the district level for selecting Watershed Projects and Project Implementation
Agencies, monitoring and review of the implementation of the programme. Problem of
inadequacy of funds has been tackled by allowing utilization of 50% of the Employment
Assurance Scheme (EAS) funds for the development of watersheds. Training has been made a
continuous process and 5%
of the funds of each project has been earmarked for training of the WDT members, field
functionaries and the local people. There is an in-built provision in the guidelines for
maintenance of assets created under the watershed development projects.
6. Peoples Participation
The guidelines for Watershed Development issued by this Ministry are an instrument,
which provides an opportunity to local people to not only involve them in the implementation of
the programme but is a tool for capacity building and empowerment of participation village
community. The critical key factor in the implementation is peoples participation in all aspects
of the programme. It has been envisaged under the Guidelines that the local people through User
Groups and Self-help Groups formed by the Watershed Association shall execute the whole
work of Watershed Development Projects. Under the new Guidelines, area development on
watershed basis has been made mandatory. To ensure peoples participation, an elaborate
institutional mechanism at various levels has been prescribed which include the formation of
Watershed Association and a Watershed Committee for each watershed project.
Watershed Association comprises of all adults residing within a watershed project area.
Watershed Committee is the executive body of the Watershed Association constituted by it by
nominating 10-12 members from amongst the Self-help Groups (3-4), User Groups (4- 5), Gram
Panchayat (2-3) and a member of the Watershed Development Team (WDT). This Committee
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has been made responsible for planning and development of Watershed Projects with the
technical assistance from the Project Implementation Agency. PIA provides technical input
through a Watershed Development Team having four experts in the disciplines of Animal
Sciences, Plant Sciences, Civil/ Agricultural Engineering and Social Sciences.
7. Summing up
In the Unit, an attempt was made to critically evaluate the concept of drought, its impact
on the people. The efforts made by the different agencies are also critically examined .
2.
3.
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1. Introduction
Food security and agriculture issues are gaining importance in the wake of global food
crisis steep rise in food grain prices. The global food crisis in 2007-08, mainly in South East Asia
and Africa is attributed to several reasons the diversion of food and especially food grains to biofuel production in the US to counter the spiraling fossil fuel price. This coincided with the crop
failures in some of the main grain producing countries like Australia and Ukraine. This led to an
initial price hike that triggered the panicky button and speculators predicted continuation of the
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201 | P a g e
high prices for at least the next 10 years. Countries like India, China and Vietnam began to react
by banning export of rice. Price control measures were used to keep prices low. Private traders
who were not part of the incentives price controls of the government system resorted to hoarding
creating shortage and prices raised fivefold from the 2005 levels. There were riots and fall of
government in many parts of Africa. The Food and Agriculture Organisation estimated that over
100 million more people were led to poverty. Even now grain prices are double the original
price.
In any food crisis, the immediate step should be to protect the poor either through safety
net programmes or free supplies. In the African countries, there is no safety net or distribution
net work. The only possibility is on the spot free food supply. India adopted safety net
programmes in order to face the crisis. Safety net means protecting the poor from food crisis and
sociological problems by the government. The government assurance and commitments towards
the poor may be called as safety net programmes.
As a medium term measure, arrangements must be made to import food grains through
bilateral or multilateral aid agencies and for their distribution, even in inland areas. In spite of
these measures, it is possible that several areas would go uncovered and people have to starve.
There should be long term plans for increased local production. Several African countries are
doing this by importing and distributing fertilizers at subsidized prices.
India, with its public distribution network and other safety net programmes and through
regulating exports, is insulated from global food crisis. However, steep price increases in
premium quality grains like ponni rice is a reflection of the developments in the world markets.
As India is a net importer of pulses, the recent steep increase in the price of pulses,
especially red gram dal(legume), is the result of the global market conditions. Production loss in
countries like Nigeria and Tanzania has played its part in increasing global prices with resultant
impact on Indian markets. The only way for India to save itself from similar crisis in future is by
increasing productivity through taskforces and technology missions, with pre-determined targets
and making the programme implementing terms accountable. Farmers should be encouraged to
take up pulses cultivated as a cash crop with supplementary irrigation facilities.
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2. Objectives
After studying the Unit, you will be able to know the following:
In India, the safety net programmes are carried out by central government and state
governments. Policy framing, financing decisions are taken by central government and policy
implementation by state governments. The financial resources will be contributed by both
governments. The following programmes are presently carried by the government in order to
face the crisis and improving the quality of life style of an Indian citizen.
203 | P a g e
annum unachievable. It distributes each year, commodities worth more than Rs. 15,00,000
crores. The production problems in less endowed regions, which have led to a dangerous
situation of huge pile-up inside FCI godowns and under cover in open and widespread incidence
of hunger outside. There is a strong need to correct these policy imbalances as to increase food
production. The following schemes are existing under public distribution system in India.
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OFF TAKE
Year
RICE
WHEAT
Total
RICE
WHEAT
Total
2002-03
18.84
9.40
28.24
13.75
7.45
21.20
2003-04
17.72
9.08
26.80
13.49
7.20
20.69
2004-05
20.14
7.35
27.49
15.41
5.92
21.33
2005-06
17.78
4.72
22.50
13.64
3.63
17.24
2006-07
17.22
4.38
21.60
13.05
3.50
16.55
2007-08
19.98
5.30
25.28
3.95
14.41
18.36
2008-09
21.48
4.78
26.26
15.82
4.37
20.19
This Scheme is implemented by the Ministry of Women & Child Development. The food
grains allotted under this Scheme are utilized by the states/UTs under the Integrated Child
Development Scheme for providing nutritious/energy food to children below 6 years of age and
expectant/ lactating women from disadvantages sections.
Allocation/off take of food grains under the Scheme during the 10th Plan period and the
first two years of the 11th Plan (2007-08 and 2008-09) are as under:
(in lakh tonnes)
ALLOCATION
OFFTAKE
YEAR
RICE
WHEAT
Total
RICE
WHEAT
Total
2002-03
1.47
1.75
3.22
0.69
2.13
2.82
2003-04
1.04
3.72
4.76
0.61
3.16
3.77
2004-05
1.16
3.42
4.58
0.85
3.57
4.42
2005-06
1.50
2.82
4.32
2.07
2.73
4.80
2006-07
1.98
3.19
5.17
1.61
2.98
4.59
PGD-SRD, 2010-11
205 | P a g e
2007-08
2.31
3.20
5.51
1.79
2.74
4.53
2008-09
3.30
4.80
8.10
2.15
3.92
6.07
The central
government is continuing this scheme, even though the stock position of food grains in the
central pool in recent years, were not comfortable. Allocation/off take of food grains under the
scheme during the 10th Plan period and the first two years of the 11th Plan (2007-08 and 2008-09)
are shown as follows. The data includes allocations to SC/ST/OBC hostels.
(Figures in lakh tonnes)
OFFTAKE
ALLOCATION
YEAR
RICE
WHEAT
2002-03
6.58
4.53
2003-04
6.25
2004-05
TOTAL
RICE
WHEAT
TOTAL
11.11
1.30
0.14
1.44
5.19
11.44
3.15
0.23
3.38
6.06
4.80
10.86
1.94
0.75
2.69
2005-06
3.47
2.44
5.91
2.37
0.27
2.64
2006-07
3.26
0.57
3.83
2.76
0.25
3.01
2007-08
2.13
0.57
2.70
1.61
0.33
1.94
2008-09
2.96
1.12
4.08
2.43
0.41
2.84
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7. SC/ST/OBC Hostels
This Scheme was introduced in October, 1994. The nodal agency for this Scheme is
Ministry of Consumer Affairs, Food and Public Distribution. The allocation was made under
this Scheme to 19 states on the recommendation of Ministry of Social Justice and Empowerment
in the year 2001-02. As per the Scheme Guidelines, the residents of the hostels having 2/3rd
students belonging to SC/ST/OBC are eligible to get 15 kg food grains per resident per month.
The Central Government allocated in the year 2008-09 to Andhra Pradesh, Nagaland, Tripura,
Dadra and Nagar Haveli, Madhya Pradesh and Karnataka on the basis of requests received from
the respective states. The allocation/ off take of food grains under this Scheme during the 10th
Plan period and the first two years of the 11th Plan (2007-08 and 2008-09) are presented below.
The offtake data are combined with offtake against 5% bpl allocation with effect from 2002-03.
(Figures in lakh tonnes)
ALLOCATION
OFF TAKE
YEAR
RICE
2002-03
0.36
2003-04
WHEAT
TOTAL
RICE
WHEAT
TOTAL
----
0.36
----
----
-----
1.63
----
1.63
---
---
----
2004-05
1.34
----
1.34
---
---
----
2005-06
---
0.14
0.14
---
---
---
2006-07
1.62
0.14
1.76
---
---
----
2007-08
0.28
0.14
0.42
---
---
---
2008-09
1.14
0.65
1.79
---
---
---
8. Annapurna Scheme
This Scheme was launch in the year 2000-01. The Ministry of Rural Development
is the nodal agency. From 2002-03, it has been transferred to state plan along with the national
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social assistance programme consisting the national old age pension scheme and the national
family benefit scheme. At present the implementation of the scheme is made by respective states
and union territories. As per the guidelines of the Scheme indigent senior citizens of 65 years of
age or above, who are eligible for old age pension under the national old age pension scheme but
are not getting the pension, are covered. Under this Scheme, the eligible person will get 10kg of
food grains per person per month or free of cost. The allocation of the off take of food grains
under this Scheme during the 10th Plan period and the during the first two years of the 11th Plan
(2007-08 and 2008-09) are presented below:
(Figures in lakh tonnes)
ALLOCATION
OFFTAKE
YEAR
RICE
2002-03
0.54
2003-04
WHEAT
TOTAL
RICE
WHEAT
TOTAL
0.24
0.78
0.53
0.62
1.15
0.56
0.67
1.23
0.45
0.64
1.09
2004-05
0.90
0.77
1.67
0.64
0.68
1.32
2005-06
0.90
0.77
1.67
0.69
0.70
1.39
2006-07
0.90
0.77
1.67
0.61
0.29
0.90
2007-08
0.92
0.77
1.69
0.70
0.30
1.00
2008-09
0.92
0.77
1.69
0.64
0.31
0.95
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Ministry of Women and Child Development Administers the scheme at the central level and
state/UT governments implement the Scheme at the state level.
As per the revised guidelines of the Programme, adolescent girls i.e. from the age group
of 11 years to 19 years as identified by prescribed weight would be covered irrespective of
financial status of the family to which they belong. Free food grains @ 6 kg. per beneficiary per
month is provided to the adolescent girls (weight<35 kg) initially for a period of 3 months. Those
beneficiaries, who cross the cut off point for weight, would not receive food grains any further.
Those who in spite of receiving food grains for three consequent months do not show
improvement in nutritional status are investigated by anganwadi workers and, if necessary
reffered to doctor for investigation and treatment, but continue to receive free food grains for the
next three months.
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Annual allocation
0.14
Off take
0.13
2003-04
0.14
0.14
2004-05
0.14
0.14
2005-06
0.14
0.12
2006-07
0.17
0.14
2007-08
0.17
0.16
2008-09
0.18
0.17
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Total
211 | P a g e
aspects are forced to throw the highly experienced senior citizens. As per 2001 census the
number of old persons was 70 million and which was projected 90 million in 2011.
The gender position of the elderly reveals that the life expectancy of women is
expected to remain higher. For the period 2006-2010, the life expectancy of female is 68.1
against 65.8 of males which will rise to 72.3 for female against 69.02 for males during the period
2011-2016. This indicates that the population of elderly women will account for a larger chunk
compared to their male counterpart in 60+ age bracket.
In absolute terms, the projection for male population in 60+ age group was 35
million in 2001, projected to be 40.7 million in2006 and 48 million in 2011 as against the female
population in the same age group was 36 million in 2001, 42 million in 2006 and 50.2 million in
2011. From the projected figures for the year 2006-2011 and 2016, 2021 and 2026, it is clear that
percentage of female population in 70+ age group will out number their male counterpart in the
same age group. This accounts for a larger female population in the overall 60+ age group
compared to the male population in the years to come. Many of women in the 70+ age group
would be either widow or single without any ostensible support for themselves.
A comparison of rural elderly and the urban establish the fact that around 74.97%
of older persons live in rural areas and 25.02% in urban areas. This involves planning for post
retirement socio economic security through continued skill up-gradation, employment and
participation in other creative and gainful activities.
promising to safeguard their interest in terms of financial security, health, legal, social and
pschycological security, also envisages their productive partnership with them in the process of
development by creative opportunities for their gainful engagement and employment. The
policy also appreciate the special needs of older persons and therefore lays emphasis on
empowerment of community as well as individuals to adequately meet the challenges of the
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process of ageing. The policy provides the following objective to fulfill the needs of our
esteemed senior citizens.
Financial security through coverage under old age pension scheme for poor and
destitute older persons, better returns on earnings/ savings of government /quasi government
employees.
The NPOP recognizes the special health needs of the older persons to be met
through strengthening and reorienting the public health services at primary health care level
creation of health facilities, through non profit organization like trust/charity etc and
implementing health insurance.
The NPOP provides for earmarking 10% of houses/housing sites in urban as well as
rural areas for older persons belonging to the lower income groups, special considerations to
the older persons falling in the category of below poverty line and destitute in housing
schemes like indira avas yozana, loans at reasonable interest rates and easy repayment
installment with tax relief and purchase of houses etc
Education information needs of older persons too have got adequately reflected in
the national policy. Education/information material relevant to the lives of older persons
should be developed and made available through mass media. Education, training and
information being the important human requirement, the NPOP provides for proactive role in
ensuring the same by disseminating knowledge about the preparation of old age. It is also
emphasized for schools to have programme on inter generational bonding.
Institutional care has been provided for in the NPOP as the last resort. The care in
non-institutional set up i.e., within the family and the community needs to be strengthened
and encouraged. This apart, the state should also create infrastructure in partnership with
voluntary organizations to provide for poor, destitute and neglected older persons whose care
cannot be ensured within the family. This is to be ensured through old age homes and other
such institutional facilities that would be needed. Voluntary efforts needs to be encouraged
for creating facilities for day care, outreach services, multi service citizen centre etc
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The state has to gear up the security network to save the older persons from criminal
offence and police is required to keep friendly vigil. Early settlement of property/inheritance
disputes is to be done, safeguards to protect those fraudulent dealings in transfer of property
through sale/will are to be put in place and free legal aid and toll free helpline services are to
be placed across the country. Maintenance of elderly within family resorting to the provision
of law viz., criminal procedure code 1973, Hindu adoption maintenance act 1956 etc.,
whenever needed is required to be ensured.
The policy lays emphasis on need for trained personnel/care givers. This envisages
the training of human resources in the areas like specialization in geriatrics in medical
courses, special courses on geriatric care in nursing training, training of social worker
especially for this care and professional care givers.
The policy enjoins upon media to take up a special responsibility for the care of
older persons. Media is to play a rolling, identifying emerging issues and areas of action,
dispelling stereo-types and negative images about the old age, maintaining restraint from
creating fear psychosis by responsible reporting, promoting inter generational bonds and
informing individuals/families/groups with appropriate information on ageing process.
The National Social Assistance Programme came into effect from 15th August,
1995. NSAP is a programme for the poor households. The fulfillment of this
principles enshrined in Article 41 & 42 of the Constitution of India.
The national old age pension scheme covers older persons/destitute for those who
did not have any source of income or financial support from their families. At present,
50% of the older persons are covered in this Scheme. The state governments are
advised to add some amount as their contribution in the federal set up. During 10th
Plan, a total of 110,793,860 elderly were covered and US $ 1022.20 million approx.
were incurred on this count.
Presently persons of 60 years of age are entitled for 30% concessions in train fare in
all classes. There are different air lines providing 45% to 50% concession in air
journey to senior citizens.
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Older persons who are above 65 years of age also enjoy income tax rebate up to
15,000 of actual tax with provision for deduction of Rs.20,000 spent on account of
medical insurance premium and Rs.40,000 spent on medical treatment from taxable
income. Senior citizens are exempted from income tax up to 1.95 lakh as per the
Union Annual Budget, 2007.
Banks are providing 0.5%-1% additional interest to older persons of 65 years and
above on fixed deposits. The public facilities for the elderly are initiated by the
government which includes reservation of seats for elderly in the public transport,
railways and airways.
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years after motor insurance. A booming life insurance market has propelled the Indian life
insurance agents, into the top 10 country, list in terms of membership to the million dollar round
tablean exclusive club for the highest performing life insurance agents.
With the changing lifestyle of modern society, the young generation is migrating
from not only rural to urban area rather one country to another as well; leading to increase in
old age dependency ratio. The old age dependency ratio(number of old persons 60+ years) to
the working age group (15-59years) has increased from 9.8% in 1981 to about 12.6% by the
year 2001. (Census of India,2001)
The increase in life expectancy with better health care, nutritious food and socioeconomic status, has led to the demographic transition which impacts the prosperity and
health of the people. This necessitates old age specific health management to address the agelinked health problems like cataract related blindness, osteoarthritis, hypertension, diabetes,
coronary heart disease, stroke, heart failure, Alzheimers disease and other dementias,
Parkinsons disease osteoporosis, and fractures, cancer, enlarged prostate and depression, etc.
The needs of older persons living in rural areas that accounts for about 62.5 million
of them, require special attention. The government is concerned to provide the rural elderly
access to health system, socio-economic security, the institutional care and homes for the
destitute.
The government has launched a reverse mortgage system for senior citizens to
extract value out of their property and lead a hassle free life by securing a regular income as
loan against their existing property.
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an integrated programme for older persons with an aim to empower and improve the quality
of life of older persons. The basic thrust of the programme is on older persons of 60 years
and above, particularly the infirm, destitute and widows. Under the Scheme, financial
assistance is provided to non-governmental organizations, autonomous bodies, educational
institutions, cooperative societies, etc., up to 90% of the project cost for setting up and
maintenance of day care centers, mobile medi-care units, old age homes and non-institutional
service centers. During the 10th Plan, the Ministry provided financial assistance to voluntary
organizations to the tune of US $ 18.6 million.
Growing old is marked by failing health and advancing age may bring with it
enumerable health complications. Restricted physical mobility coupled with crippled health
makes it difficult for older persons to access the health facilities if they do not enjoy the
support of the family or have a care institution within their easy access. Realizing the real
situation wherein the older persons live, the national policy envisages covering of health
insurance and financial security towards essential medical care and affordable treatment
process.
Some of the initiatives by the government are enabling a separate counters/O.P.D. in
hospitals and free medical services in Central Government Health Scheme, government hospitals
to facilitate easy accessibility to the elderly including geriatric units in the hospitals.
Dementia due to Alzheimers and other causes is one if the most serious
degenerative diseases that affects the older persons. The loss of memory with advancing age
is a common phenomenon. However, dementia, which is a progressive disease of the brain,
affects memory, personality and intellect. Of all the dementia, Alzheimers disease is the
commonest and the severest.
Many of the government and public hospitals have started memory clinics, mental
health programmes to facilitate proper diagnosis of dementia to enable slowing down the
process and preparing the care-givers and the family to manage Alzheimers and dementia
care. The national institute of social defense under the ministry of social justice and
empowerment has initiated training of care-givers and functionaries as a special initiative on
the centenary of Alzheimers.
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(PMGY). This Scheme was introduced from 2000-2001. ACA would be provided to the states
and UTs for this purpose. This would replace the ACA being provided for BMS, thus far.
Free medical care: AIMS hospital in cochin provides state of the art care regardless
Of a patients ability to pay from 1998 to 2005 it and other math medical institutions
have tended to 20, 97,099 patients of this 7, 51,098 have received 100% free care
at an expenditure Rs.149.7 crore.
Amrita Kuteeram: Built 125000 homes for the homeless across India and is building
one lakh more.
Amrita Niketan: This orphanage in Kollam, Kerala houses 500 children 35% of who
go on to pursue higher education i.e., fully sponsored by the math.
Amrita Nidhi: This is a life time pension programme for one lakh destitute of India.
Amrita Tsunami relief and rehabilitation project: Building 6,200 homes in south
India, srilanka and Andaman and Nicobar for providing free food, medical care,
clothing, education, jobs and fishing boats.
Disaster relief: Three villages (1,200 houses) were built in the following 2001
quake. Medicines, clothing and food were provided in Mumbai after 2005 floods.
Three villages were adopted Kashmir and a similar offer were made to Pakistan
after 2005 earth quake.
Hurricane relief: The math donated Rs.4.4 crores to the US for the Katrina relief
fund.
Hospices: In Mumbai and Thiruvananthapuram and homes for the elderly were set
up in Tamilnadu, Kerala and Karnataka.
Amrita Vishwa Vidya Peetharn: A four campus values- based deemed university.
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Green Friends: This environment protection group plants one lakh saplings every
year.
Jan Siksha Sansthan: It provides training to tribal villagers in every thing from
candle making to computers.
Amrita Kripa Neeti Prathishthan: Free legal aid for the poor is provided by more
than 1000 advocates.
Aasha Social Welfare Association working for welfare of tribal, women, farmers
and the poor people of Andhra Pradesh.
ADHAR helping people to help themselves by cultivating a better life and a just
society.
Advanced Centre for the Study of Philanthropy and Development (ACPD) NGO
that works mainly with health issues and would like to focus on the care of the
elderly.
Agape Educational And Charitable Society operates orphanages for girls and boys
and provides educational counselling and support for the poor and backward in
society.
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Akshaya Patra Foundation the largest NGO run school meal program in the world
that feeds more than a million children every day.
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provided that the contribution in the case of villages, where scheduled tribe/scheduled caste
(ST/SC) constituted more than half of all habitations, could be in any form without any
stipulation of a contribution in cash. Fourth, from an institutional perspective, one of the
consequences of a demand-led perspective is the rethinking of the role of the government. The
guidelines here specifically provide that the aim is to shift the governments role from direct
services delivery to only supporting a limited number of activities such as planning, policy
formulation, monitoring and evaluation.
18. Summing up
Food security and agriculture issues are gaining importance in the wake of global food
crisis steep rise in food grain prices. The global food crisis in 2007-08, mainly in south East
Asia, and Africa is attributed to several reasons. The diversion of food and feed grains to bio-fuel
production in the US to counter the spiralling fossil fuel prices. This coincided with the crop
failures in some of the main grain producing countries like Australia and Ukraine. This led to an
initial price hike that triggered the panicky button and speculators predicted continuation of the
high prices for at least the next 10 years. Countries like India, China and Vietnam began to react
by banning export of rice. Price control measures were used to keep prices low. Private traders
who were not part of the incentives price controls of the government system resorted to hoarding
creating shortage and prices raised fivefold from the 2005 levels. There were riots and fall of
government in many parts of Africa. The food and agriculture organization estimated that over
100 million more people were led to poverty. Even now grain prices are double the original
price.
In India, the safety net programmes are carried out by central government and state
governments. Policy framing, financing decisions are taken by central government and policy
implementation by state governments. The financial resources will be contributed by both
governments.
Keywords
Safety Net: the protection of government towards the poor people by making efforts through
various policies under various schemes. The governments social responsibility towards the
welfare of society.
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on
various
2.
3.
What is PDS?
4.
5.
6.
7.
What is insurance
8.
9.
10.
11.
12.
Define following:
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i.
ii.
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iii.
What is MAP?
iv.
What is ACA?
v.
What is CSS?
13.
14.
15.
16.
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The tribal population of the country is less than 10 per cent but they are spread in 15 per
cent of the geographical area. The British rulers did not pay much attention to their developments
ostensibly to protect their specific culture and traditions. This resulted in their abject poverty and
loss of resources like forest and agriculture land. The governments have successively adopted
many approached with mixed success.
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Structure
1.
Introduction
2.
Objectives
3.
4.
5.
6.
7.
8.
9.
10.
11.
Rural
Development:
Preference
to
Women,
Policies
and
Programmes
12.
13.
14.
15.
16.
Keywords
17.
1. Introduction
Rural development in India is considerably dependent on the capacity enhancement of
women as they increasingly make a vital contribution to the development of rural communities.
A look at recent trends and prospects for 2010 for developing Asian countries reveals a striking
point: the number of women economically active in agriculture is increasing and growing faster
than the number of males economically active in this sector. This phenomenon is dubbed as the
"feminization of agriculture," referring to women's increasing participation in the agricultural
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States. Over the past decade, India has had five international beauty queens. And yet, on
average, women in India are socially, politically, economically, and even demographically
weaker than men.
Women in India gained suffrage in 1950 and hold 8 per cent of Parliamentary seats.
However, women hold less than 6 percent of Cabinet positions, less than 4 percent of positions in
High Courts and the Supreme Court, and less than 3 percent of government administrative and
managerial positions. Gender gaps remain significant in almost all facets of life, reinforcing
other inequalities. A GDI of 0.600 compared to a HDI (0.619) gives a measure of the extent of
gender inequality. Let us see some more statistics.
Table 1 : India figures at a glance
Human Development Index value, 2005
0.619
112
0.600
31.3
62
8.6
5.6
In India, women in general, are relatively powerless with low work participation rate,
little decision making power and very little or no control over resources. Literacy rate of Indian
women is found to be lower as compared to males. They are lagging behind socially, politically
and economically in the society.
The socio-economic and politico-legal changes that have taken place after 1990s have
definitely brought about perceptible changes in the status of women in the country. Some of
these changes such as rapid increase in female life expectancy, literacy, employment,
participation at grass root level democracy and increasing awareness about rights have been
strongly in the positive direction.
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2. Objectives
After going through this Unit, you will be able to :
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adopted a multi-disciplinary approach with thrust on health, education and employment. In the
Seventh Plan, developmental programmes for women were continued, with the objective of
raising their economic and social status by beneficiary-oriented programmes, which extended
direct benefits to women. The Eighth Year Plan marks a definite shift form development to
empowerment of women. The Ninth Plan [1997-2002] made two significant changes in the
strategy of planning for women. Firstly, empowerment of women became a primary objective
and secondly the plan attempted convergence of existing services available in both women
specific and women related sectors. The Tenth Plan [2002-07] made a major commitment
towards empowering women as the agent of socio-economic change and development. Based
on the recommendation of National Policy for Empowerment of Women, the Tenth Plan
suggested a three-fold strategy for empowering women through social empowerment, economic
empowerment and gender justice.
Approaches to womens development
There can be two major approaches to womens development:
Governmental, or
Non-governmental.
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(NCSW)
In the eighties, increasing role was played by the nongovernmental agencies (NGOs) in
womens development programmes. They helped in forming grass-root womens organizations
(Mahila Mandals) and DWCRA groups. Working with the central and the state governments and
the commercial banks, their participation was highly appreciable. While retaining their
independence, flexibility and grass-root orientation, these NGOs collaborated very well with the
government, functionaries and agencies. In the year 1990, the National Commission for Women
came into existence by the National Commission for Women Act 1990. Investigation and
examination of all matters relating to the safeguards for women under the constitution and other
laws are some of the main functions of the Commission.
A promising strategy for new initiative was the organization of women into groups which
gave them legitimacy forum for demanding services and inputs which they previously lacked
access to. Membership in a group helps a woman compensate for lack of bureaucratic know-how
and unfamiliarity with public discourse. Groups can transform women for beneficiaries- clients
who participate in a long- term reciprocal relationship with the institutions that serve them
Modes of approach to womens development
At the highest administrative decision making level as well as at the political level gender
awareness needs to get top priority. In formulating policy options right selection of mode of
approach is very important. There can be five different modes:
Welfare mode;
Equity mode;
Anti-poverty mode;
Efficiency mode and
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Empowerment mode.
The welfare mode is one that benefits the most vulnerable group as passive recipients and
suits in the very beginning stages of development having wide disparities. The equity mode takes
special care of gender needs and emphasizes redistributing power. The anti-poverty mode
recognizes majority of women to be falling in the category of deprivation. It focuses on the
productive role of women. It reflects on the necessity of providing women with better access to
resources. The efficiency mode takes care of practical gender needs and helps in having the
capability and capacity of women by way of imparting education, skill, training, etc. The
empowerment mode helps women in making their own choices with regard to their lives and
makes them more active players in society. These modes need to be selected for different
programmes according to what is expected of the programmes.
Existing programmes for the development of women
Currently, the Government of India has several schemes which are women specific.
These schemes are located in different Departments and Ministries of the Government of India
such as Rural Development, Labour, Education, Health, Science and Technology, Welfare and
Women and Child Development. The thrust of these programmes was to provide employment
and income generation, education training, support services, general awareness and legal
support.
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the secondary and tertiary sectors. Worldwide, 20-50 percent of women experience some degree
of domestic violence during marriage.
India is the second country after China to cross the one billion mark in national
population. Among the six most populous countries, Indias sex ratio as per Census 2001 at 933
is the lowest. The subordinate position of woman is evident from the sex ratio. Literates in India
stand as 566,714,995 (65.38 per cent of total population) of which 339,969,048 are men (75.85
per cent of all males) and 226,745,947 are women (54.16 per cent of all females) male-female
gap in literacy is 21.70 per cent. Moreover, in every age group, literacy figures are lower for
females as compared to males. Regional variation, which is described in the following table, is
visible in the female literacy rate in India
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Stuart Mill had advocated women's participation in governance by the struggle for women
suffrage in the self avowed liberal West very well illustrates the entrenched nature of patriarchic
resistance to women's empowerment. In the last century more women heads of state could be
counted in Asia as compared to Europe. Relative to their population share, women are
underrepresented in political leadership positions throughout the world. In June 2000, women
comprised only 13.8% of all parliament members in the world, up from 9% in 1987. Recognizing
this fact, many governments are taking active steps to encourage the participation of women in
policy making, notably by establishing quotas for women in parliaments or in local governments.
Quotas for women in assemblies or on parties candidate lists are in force in the legislation of
over 81 countries.
The 73rd and 74th Amendments of the Constitution of India have impacted nearly 600
million Indian people in 500,000 villages. Interestingly the percentage of women at various
levels of political activity has risen from 4-5% to 25-40%. More than one million women have
now entered political life in India and 43% of the seats are occupied by them district, province
and national level. Women's participation is understood in terms of voter turn out, number of
women contestants apart from the number of those who succeeded in winning.
However, there has been an upswing in the number of women candidates each general
election. This year, for instance, 556 women candidates contested the polls as against 355 in
2004 and 284 in 1999. Consequently, a record contingent of 58 women MPs marched into the
Indian Parliament this year. The Table below describes the number of women parliamentarians
of India.
However, the battle to make the PRI's affective instruments of local rural governance is a
battle, a struggle of the grass roots, population (women and men) against administrative apathy
and listlessness, against ignorance and low awareness. For women, these odds are accompanied
and intermeshed with deep rooted patriarchal practices that determine and sanction norms of
speech and behaviour both within and outside the home.
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women's empowerment as a central focus and UNDP developed the Gender Empowerment
Measure (GEM) which focuses on the three variables that reflect women's participation in
society political power or decision-making, education and health. To measure women's
empowerment now, GEM takes 3 indicators, women's participation in economic, political and
professional activities. Within political power what is measured is mainly women in parliament,
judiciary or in local bodies. Women's empowerment or disempowerment has to be seen in all
areas physical, socio-cultural religious, political legal and economic.
It is also now often pointed out that women's empowerment must be seen as a process
where in we must consider women's awareness, consciousness, choices with live alternatives,
resources at their disposal, voice, agency and participation. These are all related to enhancement
of women's capabilities and decisions they take individually or collectively for themselves.
Indian womens empowerment is still a long way if the World Economic Forums report,
which has put the country among the bottom 10 when it comes to their participation in economic
agenda, is any hint. According to the World Economic Forums latest Gender Gap Index Report,
released over the weekend, India has been ranked at 114th position after taking into account
economic, political, and educational and health parities, among a total 128 countries. In terms of
economic participation and opportunity alone, India has fared even worse at 122nd position,
pushing
it
into
the
bottom
ten.
In the overall ranking, the country has slipped from 98th rank in 2006 when the index included
a total of 115 countries. According to the WEF report, India has an overall 59.4% gender
equality, while for economic participation and opportunity, it stands at 39.8%. Compared to its
122nd rank for economic participation, India has fared much better in terms of political
empowerment at 21st India is ranked at fourth position with a 43% gender equality when
compared in terms of a women state head. The economic parity index is based on four
parameters labour force participation, wage equality for similar work, income, legislators,
senior officials and managers and professional and technical workers. In terms of wage equality,
Indias rank is much better at 59th with 67% gender equality, while for professional and
technical it is 97th (27% equality). It has been ranked below 100th position for the other three
parameters. WEF said India has 36% female participation in overall labour force, while for
professional and technical workers it is 21%.
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faces but a new quality. Some of the ways in which women, through PRI, are changing
governance are evident in the issues they choose to tackle; water, alcohol abuse, education,
health and domestic violence.
But obstacles to the realization of PRI's transformative potential are many. There
continues to be a resistance to really devolving power and funds from centres of (male) power to
the periphery. Women still face considerable handicaps to their involvement in politics; for
example, inadequate education, the burden of reproductive and productive roles, a lack of selfconfidence and the opposition of entrenched cultural and religious views.
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Africa followed and initiated formation of gender sensitive budget in 1995, through a
participatory process of involving parliamentarians and NGOs. The Commonwealth initiative to
integrate gender into national budgetary processes was started in 1997 in four countries other
than South Africa such as Fiji, St Kitts and Nevis, Barbados and Sri Lanka. Several other nations
have also taken steps to engender their national budget (Canada, UK, Mozambique, Namibia,
Tanzania and Uganda). Gender budget initiatives are currently being attempted in 35 countries
following diverse trajectories in terms of the process and partners involved in undertaking the
activity.
Womens Component Plan and Gender Budgeting in India
The Planning Commission of India has always focused on womens issues as per the
perceptions of their members on womens status within the economy. The First Five Year Plan
(1951-1956) set up Central Social Welfare Board in 1953 to promote welfare work through
voluntary organizations, charitable trusts and philanthropic agencies. The Second Plan (19561960) established the development of Mahila mandals (women groups)at the grass-root level.
The Third, Fourth and Interim Plans (1961-74) made provision for womens education, pre-natal
and child health services, supplementary feeding for children, nursing and expectant mothers.
The Fifth Plan (1974-1978) marked a major shift in the approach towards women, from welfare
to development. The Sixth Plan (1980-85) accepted womens development as a separate
economic agenda with a multidisciplinary approach with three- pronged thrust on health,
education and employment. The Seventh Plan (1985-1990) declared as its objective to bring
women into the mainstream of national development. The Eighth Plan (1992-1997) projected
paradigm shift, from development to empowerment and promised to ensure flow of benefits to
women in the core sectors of education, health and employment. Outlay for women rose from
Rs. 4 crore in the First Plan to Rs. 2000 crore in the 8th Plan. The Ninth Plan (1997- 2002) stated
that empowerment of women was its strategic objective. It accepted the concept of Womens
Component Plan to assure at least 30% of funds/benefits from all development sectors flow to
women. The introduction of Gender Budgeting (GB) in the Centers budget in 2005-06, was the
culmination of long efforts by a variety of factors, among them the Ministry of Woman and
Child, UNIFEM, UNDP, IFES, womens groups and gender experts.
The Tenth Plan (2002-2009) has suggested specific strategies, policies and programmes
for Empowerment of women. They are as follows:
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disadvantages in the rural and urban locations with reference to different parameters of
deprivation.
development and their use as a tool for monitoring development needs to be hastened.
Gender Mainstreaming
The term gender mainstreaming emerged in the early 1980s, as a concern of the
international womens movement for alternative strategies to move womens issues out of the
periphery and into the mainstream of development decision-making. In the years following the
Beijing Conference in 1995, gender mainstreaming has been referred to as a comprehensive
strategy that involves the integration of women-oriented programmes and gender issues into
development institutions. It is a process to achieve gender equality and overcome the costs of
womens marginalization.
It is a globally accepted strategy for promoting gender equality. Mainstreaming is not an
end in itself but a strategy, an approach, a means to achieve the goal of gender equality.
Mainstreaming involves ensuring that gender perspectives and attention to the goal of gender
equality are central to all activities - policy development, research, advocacy/ dialogue,
legislation, resource allocation, and planning, implementation and monitoring of programmes
and projects.
Emphasizing the importance of gender mainstreaming, the following action areas are
suggested for enhancing coverage and participation of women in mainstream sectors
o Breaking barriers to access for women availing services of public utilities like
road transport, power, water and sanitation, telecommunication etc.
o Training of women as highly skilled workers- top end skills
o Research/technology for women
o Enhanced participation of Women in the work force
o Asset ownership by women
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o Women as entrepreneurs
o Implementation of laws like equal remuneration, minimum wages and the
provisions of the Factories Act
o Provision of infrastructure for women likewater and sanitation at workplace,
creches, working women hostels, transport services and security.
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Thus, the report of the CSWI awakened the government to take up rural womens
development as a priority area. Issues on rural womens development are identified by three
planning groups of the Government of India, namely,
Core group in IRDP (1976),
Working group on development of village level organizations of rural women, and
National committee on role and participation of rural women in agriculture and rural
development.
In order to benefit the rural women in various fields like social, educational, health,
economic, political, etc., and to integrate them into the process of development a concerted effort
was made at various levels, that is, central ministries, state governments , Planning Commission,
non-governmental organizations, social service and research agencies, through various
programmes.
A number of steps are taken to bring more rural women to the fold of IRDP, thereby
bringing their share in IRDP beneficiaries to 30 per cent. The National Bank for Agriculture and
Rural Development [NABARD] has advised banks not to ask from women any collateral
security or third party guarantee for loans under IRDP up to a certain limit. Soon the government
came to realize that in spite of
the policy
assistance under IRDP. The male members of the family usually take the decisions on the mode
or utilization of the fund provided for the womenfolk. Hence, it was felt that there was need for
a sharper focus on the status of rural women and for adopting a different strategy for offering the
services of IRDP to women. To fulfill this need, DWCRA was launched by the Government of
India in 1982-83 with special assistance of the UNICEF.
Under the DWCRA, the assistance is given to a group of women and not to any
individual. In order to take up income-generating activities, the women groups under the
DWCRA scheme are provided loans by banks and subsidy by the government. The beneficiary
groups are also given training in such income generating activities which match their aptitude.
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Minimum Needs Programme is a package of services for rural women which include
primary health programme, elementary education, rural water-supply, electrification, roads,
housing, environmental improvement, nutrition, etc.
It was only during the Seventh Plan period that the women came to be perceived as a
crucial resource for national development. A twin concept of equity and empowerment came to
govern the governments attitude to bring about strategic changes in the conditions of rural
women. With the intention of making rural womens development more viable the government
started emphasizing certain new concepts which included, inculcating confidence among women,
generating awareness about their rights and privileges, training them for economic activities and
generating employment for them, providing them credit facilities, and training in new skills.
The Seventh Plan adopted a special component approach for the development of rural
women. A minimum of 30 per cent of beneficiaries were targeted to be women. As such the
women became an important component of all anti-poverty and rural development programmes.
The Seventh Plan also directed to give priority to rural womens groups in land distribution,
productivity improvement through skill training, in employment generation, in development of
wasteland and marginal land, renovation of tanks for fisheries, social forestry, etc., in order to
reach maximum quantum of benefit to poor women with the objective of organizing women in
socio-economic activity group with the dual objective of providing self-employment
opportunities and social strength.
Micro-finance
Major advances in womens livelihood condition have been through the institution of
microfinance and their participation in the local markets. Starting in Bangladesh, through the
innovations of Grameen Bank and BRAC, microfinance institutions (MFIs), whether in the form
of NGO-run credit groups or the Indian variety of self-help groups (SHGs), have now become a
ubiquitous feature of womens livelihood programmes. Microfinance in India covers over 11.6
million poor households accessing banking services through their 0.77 million SHGs and the
SHG-Bank Linkage programme is reported to be the largest in the world in terms of its outreach
(IFAD 2004:63).
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organizing various welfare activities and giving priority to womens education, the Fifth and
Sixth Plans witnessed a shift in approach from welfare to overall development of women with a
three pronged thrust on health, education and employment of women. The Seventh Plan laid
stress on efforts to identify and promote beneficiary oriented programme with the intention of
extending direct benefits to women. The Eight Plan made a significant shift form development
to womens empowerment. It recommended 30 per cent reservation for women at all levels of
government. The strategy of women component plan in the Ninth Plan provides for ensuring
that a minimum of 30 per cent of benefits or funds flow to women from all ministries and
departments. The 10th Plan called for initiating action and linking the concepts of Womens
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Component Plan (WCP) and Gender Budgeting (GB) to play a complementary role to each other
to ensure women received their rightful share of public expenditure.
Extensive consultations were held to design the Eleventh Five Year Plan. The Planning
Commission constituted a Working Group on Empowerment of Women for the 11th Five Year
Plan under the Chairpersonship of Secretary, Ministry of Women & Child Development. Its
basic objective was to carry out a review, analysis and evaluation of the existing provisions/
programmes for women and make recommendations. They set-up four Sub-Groups: dealing with
Commission on 29th March 2007 to analyze economic policies and make recommendations.
Meanwhile five regional workshops and one national consultation to engender the 11th Plan
were organized by MWCD with UNIFEM and UNDP support in 2007. As a result of these
interventions, the vision or philosophy of empowerment for the XI Plan is Inclusive and
integrated economic, social and political empowerment with gender justice.
Some positive indicators of womens development can be seen in the female literacy rate,
which rose from 8 % in 1947 to 54%, in the 2001 census. Similarly, life expectancy rose from
40.6 years in 1961-71 to 58.1 years during 1981-91 and to 64.9 years in 2001. The total fertility
rate has come down from 5.97 in 1951-61 to 3.3 in 1997 and to 2.97 in 2001 signalling a
comparatively greater acceptance of family planning and late marriage norms. Womens
presence in Parliament has increased from 4 % in 1952 to 8.9 % in 2001. At the village and the
district levels, nearly one million women are heads and members of the local self-government
institutions.
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Empowering Strategies: Indira Mahila Yojana (IMY), Mahila Samriddhi Yojana (MSY),
The Rural Women's Development and Empowerment Project (RWDEP) now called as
Swa-Shakti Project, Development of Women and Children in Rural Areas (DWCRA).
Employment and Income Generation: Training of Rural Youth for Self Employment
(TRYSEM), Swayamsidha, Swalamban, Support for Training and Employment
Programme (STEP), Norwegian Agency for International Development (NORAD),
Socio-Economic Programme (SEP), Condensed Courses of Education and Vocational
Training (CCEVT), Swarnjayanti Gram Swarozgar Yojna (SGSY), Women's Vocational
Training Programme (WVTP), Swarna Jayanti Shahari Rozgar Yojna (SJSRY), Urban
Self Employment Programme (USEP), Development of Women and Children in Urban
Areas (DWCUA), Jawahar Rozgar Yojna (JRY), Trade Related Entrepreneurship
Assistance and Development (TREAD).
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Welfare and Support Services: Hostels for Working Women (HWW), Short Stay Homes
(SSH), Swadhar, Creches/Day care centers for the children of working and ailing
mothers.
Other Enabling Measures: Rashtriya Mahila Kosh (RMK), a national level mechanism to
meet micro-credit needs of poor women in the informal sector. Also known as the
National
Credit
Fund
for
Women
(NCFW).
SEWA and AWAKE whereas others are common for both men and women. There are a
good number of financial institutions that support women to start any new enterprise.
Some of them are- Rashtritya Mahila Kosh [RMK], National Agricultural Bank for Rural
Development [NABARD], Small Industries Development Bank of India [SIDBI],
Council for Advancement of People's Action and Rural Technology[CAPART], Access
to Credit through "Development Bank for Women Entrepreneurs" in small scale and tiny
sectors
and
Reserve
Bank
of
India
[RBI].
Entrepreneurs can be trained to start an enterprise, if proper inputs in the form of training
are
given.
Some
of
the
specialized
institutes
for
training
are:
Institute
of
Entrepreneurship
[lIE],
Guwahati
and
At grass roots level, womens collectives or informal self-help groups are engaged in
reforming the political structure of decision-making and seeking the redistribution of power.
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Many village women in India are also seeking assistance under various poverty alleviation
programmes, for example, via the Development of Women and Children in Rural areas, and the
Integrated Rural Development Programme.
Despite this, there are serious constraints which militate against the promotion of an
effective role for women in development in those societies which were bound by age-old
traditions and beliefs. In developing countries, among the poor, rural women are the poorest and
more vulnerable. Empirical evidences suggest that women in rural areas are more adversely
affected by poverty than men.
Yet when one speaks of the economic advancement of rural women in developing
countries, statistics show that in reality, one is often speaking of economic survival and poverty
alleviation, for 60 per cent of women in developing countries live below the poverty line. One
must look at the differences in the living standards of men and women in these areas - the gender
gaps - because the numbers of the two groups are not equal, with the number of female-headed
households among the poorest of the poor growing at a steep rate while many areas of the globe
are witnessing the feminization of poverty.
ii.
iii.
iv.
v.
vi.
16. Keywords
Women development
Empowerment
Reservations for women
Women participation in rural development
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Introduction
2.
Objectives
3.
4.
5.
6.
7.
8.
9.
Summing up
10.
11.
1. Introduction
According to 2001 Census, the total population of scheduled tribes is 84.3 million who
constitute 8.2% of the total population of the country. Tribal communities live in 15% of the total
geographical area, in various ecological and geo-climatic conditions ranging from plains and
forest to hills and inaccessible areas. There are over 700 schedule tribes notified under Article
342 of the Constitution of India, spreading across the various states and union territories. There
are 75 scheduled tribes, who are known as particularly vulnerable tribal groups (PTG). The
colonial government did not pay any attention to the development of tribal communities as it
mainly focused at regulatory functions, such as maintenance of law and order and collection of
revenues. It enacted the Scheduled Districts Act in 1874 and kept large chunks of tribal areas
outside the jurisdiction of normal administration. In 1939 the colonial government introduced the
Excluded and Partially Excluded Areas Act in order to make non applicable the legislations
of provincial government non-applicable to the tribal areas.
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their social and economic betterment, yet a great deal remains to be done. It is also believed that
the advantages of planning processes might have gone in large measure to certain politically
active and affluent tribal groups. Therefore, equitable development in various fields of life
remains to be achieved in comparison to other advanced communities. The problems of politicoeconomic and social development of tribals remain to be solved over a long period of time.
Since inception of planned development, various programmes are continuing in the form of
family, community and area development programmes in the tribal areas across the country. The
planning process that mitigates or aggravates old problems appears to be creating new ones. This
Unit attempts to give an idea of different programmes for development of tribal areas and people
in India.
2. Objectives
After reading this Unit, you would be in a position to:
i.
ii.
iii.
iv.
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is a special responsibility of the President of India; the Governors are responsible for reviewing
the administration and development of tribal areas and for reporting to the President. Since
independence, India has been actively thinking for the uplift of her tribal people. Jawaharlal
Nehru, former Prime Minister of India, sought the tribes to develop along with lines of their
own genius. He said wherever you live, you live in your own way. We want that your customs
should survive and at the same time we want that you should be educated and should do your
part in the welfare of our country (Nehru, 1955).
However, the British Policy of isolation increased the misery of the tribal communities,
and they were exposed to unhindered exploitation. Their plight was heightened by the
introduction of National Forest Policy in 1894. This curbed their traditional rights on forests. The
Forests Policy led to the introduction of contractors, traders and non tribal labour to forest areas
in substantial numbers. Other consequences of the commercialization of the forests were:
continued depletion of forest area, soil erosion and decline of fertility in the soil. This further
widened the socio-economic gulf between the tribal communities and non-tribal communities.
Policy of assimilation: It takes the other extreme stand. It rests on the premises that tribal
life is not worth bothering about too much, and that nothing would be lost if the forces of
modernization obliterated that. The tribal food, tribal dress, the tribal dance and the tribal crafts
are not worthy of any serious attention. Hinduism or Christianity, on other hand, is considered
superior to the tribal ways of worship. For supporters of this policy, some of the tribal life give
way to and is assimilated into the large society; the better it would be for everybody. Ghurey
strongly advocates assimilation of tribal groups into the larger Hindu society. In his view, the
tribal people are not different from the rest of the people except in their economic backwardness
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and there is no case for keeping them segregated. The point he emphasized is that only by
assimilation into the Hindu society that the tribal people would get their due place in the national
life. There is no denying the fact that assimilation did sometimes lead to betterment of the lot of
some individuals who endeavoured to profit from mission schools and their contacts with the
world beyond the tribal hamlet. But this was not accepted as any sound policy towards the
tribesman.
Policy of Integration: On the eve of independence, it was decided to put all the
communities, hitherto recognized as aborigines, in separate schedules of the Constitution of
India. Thus the excluded and partially excluded areas were enlisted in the Fifth and Sixth
Schedules.
The founders of the Indian Constitution were deeply conscious of the miserable
conditions of the tribals who were segregated from the national mainstream. This policy
believed that, tribals should be integrated into the Indian society but not necessarily assimilated.
It was implied with the aims to preserve their identity. Integration of tribes into the national
mainstream was considered to be the solution which should be done in a phased manner. In this
regard, the government appointed a sub-committee in 1947 with Sri Thakkar Bapa as its
Chairman to study the position of excluded and partially excluded areas of the erstwhile British
Government. The Committee made several recommendations.
recommendations was that the State should bear the responsibility of the tribal people. It also
suggested certain statutory safeguards for the protection of tribals.
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population. Subsequently, the recommendation of the Commission was accepted and the block
approach was continued. By the end of Third Plan, the Scheme was implemented in about 500
blocks covering about 40% of the total tribal population. It precluded a large section of the tribal
population from the development programmes. The major emphasis was given on economic
development along with education, health, housing and communication.
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Rs.44 crores were allotted to these agencies. The allocations were in addition to the normal
outlays. In actual practice, however, the agency approach practically remained an agricultural
development programme and failed to achieve the desired results. This approach was not
extended to other areas and the blocks continued to be the unit of development, having been
seized with the weakness in policies and programmes of tribal development notably: (a). The
programme got atrophied financially and consequently, physically since it became a sectoral
programme for execution of certain schemes with the limited resources of the backward classes
welfare sector (b). There was failure to comprehend distinctive characteristics of the tribal areas
and scheduled tribes. (c). The policies and programmes as well as the administrative machinery
were hardly moulded to their needs. These were kept in view while formulating the policy,
approach and strategies for the Fifth Plan. A new phase of tribal development started since fifth
five year plan and may be considered as a turning point in the history of tribal development.
ii.
In evolving a strategy for the Fifth Plan, it was felt that attention had to be focused on the
specific problems of each identifiable group or area. The situation in region of tribal
concentration and in the area of dispersed tribal population would be quite distinct and require
different approaches. In the regions of tribal concentration, area development approach had to be
introduced, keeping in view the problems of the tribal people. In case of the dispersed tribal
population, family approach would have to be adopted. In case of primitive tribal communities,
special group oriented programmes would have to be formulated for them.
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The administrative structure in tribal areas is too complex to be understood by tribals and
therefore it does not motivate them to participate. Such an administrative structure may not,
therefore, be suitable for carrying out integrated development of tribal areas. The task force
recommended that to ensure balanced socio-economic development of the tribal areas, a policy
of integrated development was felt necessary in the Fifth Plan. Therefore, a tribal Sub Plan
strategy was evolved in 1974-75. This strategy emphasized area development with a focus on
improving the quality of life of the tribal communities. Its immediate objectives were :
elimination of exploitation in all forms, speeding up the processes of social and economic
development, building up inner strength of people and improving their organizational
capabilities. It observed that any developmental activity for benefiting the tribal population will
not succeed unless exploitation in various forms is prevented.
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Prevention of exploitation
It was realized that no development activity could be benefit to the tribal population
unless their exploitation was prevented and integrated credit cum marketing services developed
in the sub plan areas. These services covered marketing of agricultural and minor forest produce,
supply of inputs and essential consumer commodities. Credit for productive, consumption and
social needs was made available to the tribals in the Sub Plan areas. The credit and marketing
structure in these areas was reorganized into large agricultural multipurpose societies (LAMPS)
in accordance with the recommendations of the Bawa Committee set up by the Ministry of
Agriculture. Besides, programme for prevention of land alienation, restoration of land already
alienated and rehabilitation of bonded labour were taken up. Attention was also given to the
solution of problems created among the tribal society on account of modern industries being
developed in these areas. The excise and forest policies, which directly affected tribal, were also
reviewed to protect the interests of these people.
High priority was given to tribal agriculture. The most important aspects of tribal
agriculture development are ownership rights, completion of land records, land development and
introduction of improved methods of agriculture through extension services. Special attention
was given to shifting cultivators, forest villages and forest labourers through schemes of
plantation, a forestation, forest labour co-operatives societies etc.
Provision of Infrastructure
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Even within the tribal areas, the Primitive Tribal Groups (PTGs), extremely backwards
pockets, shifting cultivators and tribal affected by major industrial projects were given special
attention by drawing up different schemes which would help these people. Each sectoral
authority was required to review sectoral programmes beings implemented in the sub plan areas
in order to adapt them to the special needs of these areas. The core programmes included credit
and marketing , preparation of land records, restoration of alienated land, crop husbandry,
training of farmers, minor and medium irrigation, forest based programmes, special problems,
primary road network linking important market and growth centres, rationalization of
administrative structure and techno economic survey and evaluation studies.
While preparing the Tribal Sub Plan which aimed at area development with a focus on
tribal families, a thorough review of tribal problems was made which included:
Assessment of potentialities, special problems and felt needs of the tribal areas;
The Tribal Sub Plan approach has been applied to certain identified areas in 17states and
two union territories. The main component of the Tribal Sub Plan strategy are Integrated Tribal
Development Projects (ITDPs), Modified Area Development Approach (MADA), and pockets
and Primitive Tribal Group Projects. For implementation of Tribal Sub Plan strategy, 191 ITDPs
have been carved out in the aforesaid states and union territories. Each ITDP comprises blocks
/Taluks/Tehsils or even whole district with 50% or more tribal population. In delineating the
projects areas, the main factors viz, predominance of tribal population, contiguity of area and
administrative viability have been kept in view. In certain states like West Bengal, Karnataka,
Kerala and Tamil Nadu where concentration of tribal population is not in contiguous belts, a
flexible approach has been adopted in delineating ITDP areas. Besides, 285 Modified Area
Development Approach (MADA) pockets have also been carved out in 9 states, covering about
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50 lakhs tribal population. These areas comprise smaller pockets of tribal concentration having
minimum total population of 10000 with scheduled tribe population of 50% or more. In these
areas, the emphasis is on family development by taking up family oriented income generating
programmes. By the end of the Sixth Plan, the Tribal Sub Plan approach covered about 75% of
the total tribal population in the seventeen states and two union territories to which it was
applicable.
It was later decided to extend the benefits of Tribal Sub Plan strategy to the remaining
25% dispersed tribal population in various states. Thus 100% dispersed tribal population in
various states. Thus, 100% tribal population has been brought within the fold of tribal sub plan.
Economic assistance to families living below the poverty line is also being continued.
Financial resources and outlays
The tribal sub plan is being financed through the resources drawn from:
The basic frame for the development of these areas was provided by the state plan. The
flow of funds from the state plan for the Tribal Sub Plan was worked out on the basis of total
population of the sub plan area, its geographical area, its comparative level of development and
of social services. The actual share of the tribal sub plan out of the state plan was quantified out
of the divisible pool of the state plan resources with a weightage for the backwardness of the sub
plan area. The investment of the non divisible pool such as power, major irrigation and industrial
projects were generally in accordance with the actual benefits accruing to these regions. A
special central assistance meant to augment the efforts of the state was added to the state plans
on the basis of an accepted formula. The central ministries were also required to identify central
and centrally sponsored schemes which would benefit the tribal areas.
Another important feature regarding the outlays for the tribal development was that funds
should be made non divertible. So far as the special central assistance is concerned it is already
charge on the consolidated fund of India and has a special status. The first step towards nonPGD-SRD, 2010-11
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divertibility of the state plan outlay has been to introduce separate budget sub heads under each
major head of development. This was an important step for systematizing and consolidating the
developmental efforts in the Tribal Sub Plan areas and bringing some accountability. It is also
noted that after introduction of Sub Plan strategy there has been substantial increase in the flow
of funds of tribal sub plan areas. But most of the funds have remained notional and as a result
commensurate benefits could not accrue to tribal areas and tribal communities.
The broad approach of TSP strategy was continued during the sixth plan period with
greater emphasis on specific objectives, namely,
a. Raising of productivity levels of tribal, activities with view to enabling a targeted
member of families to rise above the poverty line;
b. Development of human resources and up gradation of education;
c. Elimination of exploitation of tribals in the field of land alienation, money lending,
trade, excise and forest;
d. Development of adequate infrastructure.
The strategy for the Sixth Plan emphasized the consolidation of the gains of protective
measures, employment programs, education and health services. It also sought to ensure a higher
degree of devolution of funds so that at least 50% of the tribal families were provided assistance
to cross the poverty line. In this Plan, the emphasis was on family oriented economic activities
rather than infrastructure development schemes. It was reported that during sixth plan about 39
lakh tribal families were economically assisted against the target of about 28 lakh families.
The Seventh Plan( !985-90) was committed to growth with equity, social justice, self
reliance, improved efficiency and productivity and called for a strategy built around agricultural
growth, creation of jobs and all round technological up gradation, specialized industry and
measures to improve the quality of life. During the Seventh Plan, the target of providing
economic assistance has been fixed at 41.56 lakh families. During the first four years of the
seventh plan, about 42.58 lakh families have already been assisted. The quantum of assistance
varies from programme to programme and not sufficient enough to raise the family above the
poverty line. On the other hand,74 primitive tribes have been identified in 14 states and union
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territories . They constitute about 13 lakhs of the tribal population. For these groups, special
micro projects have been formulated. After reviewing the plan performance, the lack of progress
in some areas may be noted. States were not able to prepare project reports for all the Integrated
Tribal Development Projects or for tribal pockets or for the development of primitive tribes.
Coordination between different tribal programmes was lacking and there was not sufficient
involvement of tribal people and their traditional institutions in the developmental and the
reproductive spheres.
Tribal development is based on the twin approach namely, protection of their interests
through legislative and administrative support and promotion of developmental efforts through
plan schemes. In the Eight Plan (1992-97), efforts were intensified to bridge the gap between the
levels of development of the scheduled tribes and those of the other sections of the society so
that by turn of the century these disadvantaged sections could be brought at par with the rest of
the society. The allotment for the development of STs was increased during the plan period along
with emphasis on the elimination of their exploitation. The Ninth Plan (1997-2002) envisaged
advancement of STs through a process of empowerment wherein efforts are to be made to create
an enabling environment conducive for the exercise of their rights freely, enjoying of their
privilege and leading a life of self confidence and dignity at par with other citizens of the
country. This encompasses three vital components namely,
Social empowerment,
Social justice.
The Tenth Plan (2002-2007) makes a strong case for a tribal policy. It gave more
emphasise on improving their inability to negotiate and cope with the process of integration with
the mainstream economy, society, culture and political system, from which they are historically
protected as a result of their relative isolation.
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of welfare there are some schemes common to both scheduled caste and scheduled tribes, such as
award of post matric scholarships, coaching and allied facilities like pre examination training
centres and educational facilities like book banks etc. A separate provision for scheduled tribes
has also been made under three schemes namely, girls hostels, research and training and aid to
voluntary organizations. The construction of boys hostels has also been taken up under the
centrally sponsored schemes.
areas and
execution of development programmes for tribal communities in general. The governor has been
given almost unlimited powers in the fifth schedule to make regulations for improving the
socioeconomic conditions of tribals in the schedule areas. These regulations can negate or
modify any law passed by parliament or the state legislature in its application to any part of the
Fifth Schedule. Under the fifth schedule, a provision is made for setting up a Tribal Advisory
Council which is consulted by the Governor in relation to his regulation making powers. Thus,
the need to consult the state legislature is dispensed with in the case of these areas.
The provisions for the Sixth Schedule areas are more stringent. This shows that the legal
system has been kept flexible for the tribal areas. Under the Directive Principles of State Policy,
the state is directed to promote with special care the educational and economic interests of the
weaker sections of the people in general and of the SCs and STs in particular. The states are
directed to protect the tribals from social injustice and all form of exploitation. It is evident,
therefore, that the constitution provides an ideal setting for effective administration and its
adaptability and responsiveness to local tribal situation.
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Political safeguards-Articles 164(1), 330, 332, 334, 371A, 371B, 371C, and 371F.
In addition to the above constitutional provisions, there are numbers of laws both central
and state, which provide protection and safeguards for the interest of the tribals. These acts and
regulations emanate various constitutional provisions. Some of the important central acts are as
follows:
Despite of all these initiatives, the following persistent problems have proved to be
intractable and continue to plague the planners and administrators:
Indebtedness
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To give effect to the provision of Panchayats (extension to the scheduled (Areas) Act
of 1996 through required legislation at the state level.
It is understood that the tribals have been treated as mere receivers of the benefits and
they have not been involved either in the decision making process or in formulation or
implementation of the plans and programmes. As the problems of the tribals are unique, it is
essential that they are actively involved in planning as well as in the implementation of the
programmes.
9. Summing Up
It is clear from the discussion that tribals have been kept isolated from the mainstream
society during British regime. There was not much attention towards the development of tribals
in the country. Only after independence, it was realised that tribal should be integrated into the
mainstream society. Hence, smooth integration of tribal communities with rest of India has been
the main goal. The first three decades after independence witnessed the arrival of reports like,
Verrier Elwin (1960), Dhebar (1961), Shilu-Ao (1969) dealing with the socio-economic
problems of the tribal population, and evaluation of the functioning of development agencies and
their policies. Elwin committee report can be quoted as a master piece in elucidating the
philosophy of tribal life. This is just an instance to emphasise the need for proper training to the
personnel engaged in tribal development at any level. Immediately after this report, Dhebar
Commission report was published. This report took a review of the entire tribal situation in India,
and made a number of recommendations on each and every aspect of tribal life. This report is a
repository of all the facts and information on the tribal situation. Shilo Ao Committee report took
the historical review of the developmental policy in the first, second, third five year plans. The
findings of this committee made it clear once again that it was necessary to adopt the flexible
policy for the development of tribals.
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The comprehensive reports from various committees and experts revealed the repeated
kind of suggestions for the improvement of tribals. Most of these reports mainly emphasised on
the preservation of tribal culture, working through or making use of tribal institutions, instilling
among tribals a sense of confidence and self-respect. It also evoked serious concerns for
understanding and taking care of the tribals consent, initiative, and involvement and felt-needs
of the tribals. Apart from the Special Multipurpose Tribal Blocks of 1956, various valuable
multifarious measures have been taken for the development of Scheduled Tribes. The Fifth Plan
can be considered as a land mark in the history of tribal in India when the Integrated Tribal
Development Projects came into existence.
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11. Keywords
Isolation, Assimilation, Integration, Safeguards, Exploitation, Poverty, Participation,
Development.
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Structure
1.
Introduction
2.
Objectives
3.
Health: An Overview
3.1
4.
Current Scenario
5.
Major Challenges
5.1 Increasing hunger
5.2 Slowing down in improvements in child death rates
5.3 Increasing cost of health care
5.4 Increase in maternal mortality rate
5.5 Economic development, education and health
5.6 Human development indicators: A challenge for all
5.7 High burden of disease
5.8 Inequity in health care
6.
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
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7. Summing up
8. Appendix
9. Know Your Progress / Model Questions
10. Further Readings / References
1.
Introduction
Access to health is an important indicator of a nations development. Good health
contributes to productivity and economic growth. In a country like India, where the only asset
most people have in their bodies, health assumes even greater significance. Good health acts as a
defence against illness. Indian State rightly understands this responsibility. Five year plans,
programmes, schemes have been drawn up to alleviate poverty and also to promote universal
health care. However, close linkage between poverty eradication and universal health care have
not been fully comprehended.
One of the major reasons for the gains has been the three tiered system of rural health
infrastructure with Sub-Centres (SC) for each 5000 population, Primary Health Centers (PHC)
for each 30000 population and Community Health Centres (CHC) for each 1 lakh population. A
major effort is made to control communicative diseases, smallpox, eradication of leprosy and an
appreciable social mobilization for polio eradication. As per Ministry of Health
& Family Welfare, Department of Family Welfare, Infrastructure Division: Bulletin on Rural
Health Statistics in India March 2002, there are 137311 sub centres, 22842 PHCs, 3043 CHCs
and 25724 doctors in India.
Some of the achievements are possible because of improvement in water supply and
sanitation. However there exists huge difference between and within states. Health indicators of
Kerala are quite encouraging. In respect of Uttar Pradesh, Madhya Pradesh, Orissa, a lot of
improvement is needed. Similarly, huge disparity exists in terms of access between urban and
rural areas and between developed remote areas inhabited by marginalized sections of the
society.
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We are far behind the target stipulated by National Health Policy, 1983. A study by the
National Council for Applied Economic Research (NCAER) reveals that the richest 20% enjoy
three times the share of public subsidy for health compared with the poorest. The poorest 20%
unfortunately have more than double the mortality rate.
Indian State promised universal health care through public health system. However due
to low budgetary support, we are unable to meet the goal. Health figures in the State List of the
constitution of India as an item listed in entry 6 as Public Health, Sanitation and Dispensaries.
For a growing population, the above arrangement is not adequate therefore access to
health appears to be a major problem now. We need to know what the policies, programmes for
promotion of health in India. As health is a major determinant of development, it would be useful
to know the governments effort in this area and the issues in this sector.
2. Objectives
After reading this Unit, you will be in a position to:
Note the existing arrangements for accessing health
Know the deficiencies in the existing arrangements
Identify the major challenges for accessing basic health in India
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Poverty is the real problem of India. Nearly one-third of the population live below or at
subsistence levels. This means 70-90 per cent of their incomes go towards food and related
consumption. In such a context, social security support for health, education, housing etc.
becomes critical. India has one of the largest private health sectors in the world with over 80 per
cent of ambulatory care. The public health services are very inadequate. The public curative and
hospital services are mostly in the cities where only 25 per cent of the one billion population
lives. Rural areas have mostly preventive services like family planning and immunisation. The
already difficult scenario of access to health care is getting worse, and not only the poor but also
the middle classes are also affected.
Thus India has a large, unregulated, poor quality, expensive and dominant private
health sector, and an inadequately resourced, selectively focused and declining public health
provisioning. Given the above context the lack of right to healthcare is the main reason why
health status of the Indian population is not improving rapidly. Social intervention for nutrition is
also rendered only during a crisis. The unfortunate reality is that today even during crises this
appears to be taking place. With such inequities prevailing, it is evident that the healthcare and
food distribution systems are biased in favour of those with purchasing power and hence such a
system is discriminatory.
3.1. The Healthcare System in India: An overview
There are different systems of medicine available in the country like Allopathy,
Ayurveda, Homoeopathy, Unani, Siddha etc. However, Allopathy is the dominant system of
medicine.
The Constitution of India has made health care services largely a responsibility of state
governments. According to Article-246, the Parliament and (subject to clause) the state
legislatures have power to make laws with respect to any of the matters enumerated in the
Concurrent list which is discussed in the Seventh Schedule of the Constitution. There are 47
items under the Concurrent List. On these items, both the central government and state
governments have the power to make laws. However, when the centre decides to act, the state
governments have to follow. Areas like drugs, medical education are placed in the Concurrent
List. These show that the Union or Central Government has a larger say in policy matters
concerning these items. The central government has played a far more significant role in the
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health sector than demanded by the Constitution. The health policy and planning framework has
been provided by the Central Government. In concrete terms, it has pushed various national
programs (programs for leprosy, tuberculosis, blindness, malaria, smallpox, diarrhoea, filaria,
goitre and now HIV/AIDS) in which the states had little say in deciding the design and
components of these programs. The states have acquiesced to such programs due to the central
government funding that accompanies them. These programs are implemented uniformly across
the length and breadth of the country. Then there are the centres own programs of family
planning and universal immunisation which the states have to implement.
In order to ensure health care as a basic right, it will be necessary to reorganise the health
sector, by ensuring primary health and improving efficiency of resource allocation, strengthening
referral linkages and regulating the private health sector. Access to health care is defined as the
use of healthcare by those who need it. Studies show that gender, social geography, social groups
and class influence access. Inequities in access to healthcare lead to systematic differences in
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health outcomes within different subgroups of population. Ensuring universal access will mean
special efforts to include the most vulnerable and marginalized populations within the fold of
publicly funded health services. The private sector in India has managed to permeate through
primary, secondary and tertiary levels of healthcare, in the urban and rural areas, in all systems
of medicine.
There are no safe waste disposal facilities, physical standards are poor in quality, and
none of them were registered with any local authority. Physicians in private practice are often
driven to cover prescription of certain medications, irrational use of diagnostics and splitting
practices. Many physicians employed in government hospitals extend their practice into private
clinics and nursing homes. There is an urgent need to regulate the quality and magnitude of the
private sector and harness its resources to ensure access to all sections of society. The judiciary
has a vital role to play in ensuring access to essential services for all citizens, irrespective of their
ability to pay. At present, there is a gradual withdrawal of the state from its role in providing
health care through the public health system.
The right to health and the availability of health care are issues that have been addressed
all over the world. The United Nations has adopted various resolutions protecting health rights of
people like the Universal Declaration of Human Rights. The World Health Organization
Constitution states: The Constitution of India also covers health and healthcare, but does not
explicitly recognise right to health as a fundamental right. The Directive Principles of State
Policy cover various health related issues like provisions for just and humane conditions of work,
wages for workers, level of nutrition and living conditions for workers, protection of
environment etc. The Supreme Court has passed a number of judgements dealing with right to
access to medical treatment under various conditions ranging from the right to healthy life to
right to privacy as a component of healthcare. Although these judgements support the right to
health, the actual means for enforcing this right elude the system. Health having many
dimensions and therefore many possible definitions, the right to health is a subjective issue to
address. However, the right to health care, ensuring access to appropriate and affordable
healthcare including necessary diagnostics and essential drugs can be pursued since health care is
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amenable to implementation of judicial orders. Making right to health care a fundamental right is
an important step in the overall goal of health as a human right.
4. Current Scenario
Communicable diseases not only continue to be the single largest cause of mortality but
prevalence of many diseases like tuberculosis and malaria has increased and diseases like AIDS,
leptospirosis, dengue etc. have got added to the list. The dominance of the private health sector is
increasing but with absolutely no regulation and minimum standards being followed. The
medical profession pays no heed to self regulation or ethics and has never looked at the
possibility of an organised system of healthcare. In fact the profession is losing control to the
corporate sector, which is now looking beyond the hospital sector at not only diagnostics but also
consultant services and general practice. Such a scenario is bound to impact on costs and
increases the burden on the patients. Such a situation is not good for 70 per cent of the countrys
population that lives in poverty or at subsistence level.
India has the highest infant mortality rate in the world, a nationwide survey reveals. India
has slipped from 128 to 134 ranks in 2009 according to a United Nations Human Development
report. One infant dies every 15 seconds in the country. Over 4 lakh newborns die in the first 24
hours of their life and 90 per cent of deaths are due to preventable diseases like pneumonia and
diarrhoea. The high mortality rate is also due to fact that India ranks 171 out of 175 countries in
the world in public health spending. What is worse, it's the state in which the child is born that
decides how long he would survive. One out of every four children in the world, who die under
the age of one, is an Indian as per the latest UNICEF (United Nations Children's Fund) figures.
The UNICEFs latest figures state that infant mortality rate in the country is 57 per thousand live
births. According to the Human Development Index, Infant mortality rate in India is 30.15
deaths/1,000 live births (2009), male: 34.61 deaths/1,000 live births, female: 25.17 deaths/1,000
live births. The infant mortality rate (IMR) is defined as deaths of children below one year of age
in a year per 1000 live births in that year. Madhya Pradesh has the highest 70 Infant Mortality
Rate (IMR) says the latest bulletin of Sample Registration System (SRS) of the Registrar General
of India. Orissa, which stands second in worst performing states in IMR recorded 69 infant
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deaths. Kerala achieved the status of best performing states in IMR where only 12 infant deaths
were reported followed by Tamil Nadu (31) and Maharashtra (33).When compared to the
provisional data of the national census for 2001 it is clear that there has been no improvement in
the last seven years.
The Crude Birth Rate (CBR) of India is 26.4 and Crude Death Rate (CDR) is 9.0. The
crude death rate in Madhya Pradesh and Orissa is high with 32 and West Bengal has the lowest
death rate with 20. The crude birth rate in Uttar Pradesh is high with 30 and TamilNadu has the
lowest with 12.According to a report by UNICEF, the life Expectancy in India at birth is 64. Life
expectancy is defined as the average number of additional years a person could expect to live if
current mortality trends were to continue for the rest of that person's life. In Kerala, the life
expectancy rate is high which is 71.67 for males and 75 for females. In Madhya Pradesh, the life
expectancy rate is low which is 56.4.
5. Major Challenges
Over the last fifteen years, since India's economic liberalisation programme started in
1991, there has been a sharp decline in the government's commitment to public health. Thus
today our country has the fifth lowest public health expenditure in the world. Over the last 50
years, India has achieved a lot in terms of health improvement. But still, it is way behind many
fast developing countries such as China, Vietnam and Sri Lanka in health indicators. In case of
government funded health care system, the quality and access of services has always remained
major concern. A very rapidly growing private health market has developed in India. This private
sector bridges most of the gaps between what government offers and what people need.
However, with proliferation of various health care technologies and general price rise, the cost of
care has also become very expensive and unaffordable to large segment of population. The
government and people have started exploring various health financing options to manage
problems arising out of growing set of complexities of private sector growth, increasing cost of
care and changing epidemiological pattern of diseases. The major challenges to better access to
health in India are:
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and communicable diseases remains substantially unchanged. Infant and child mortality take an
unconscionable toll of the lives of 2.2 million children every year. We are yet to achieve the
National Health Policy 1983 target to reduce the Infant Mortality Rate to less than 60 per 1000
live births. More serious is the fact that the rate of decline in the Infant Mortality Rate (IMR),
which was significant in the 1970s and 80s, has remarkably slowed down in the 1990s. The
percentage decline in IMR between 1971-1981 was 14.7; between 1981-91 it was even more
marked at 27.3 per cent. However in the period 1991-99, there has been a marked stagnation
with the rate of decline in the IMR at 10 per cent.
5.3
Costs of both outpatient and in-patient care increased sharply in both rural and urban
areas, compared to the mid-eighties. Private outpatient costs increased by 142 per cent as against
77 per cent in the public sector in the rural areas. In urban areas, private outpatient costs
increased by 150 per cent compared to 124 per cent in the public sector. The increase in costs in
in-patient care is even more striking: average costs raised by 436 per cent in rural and 320 per
cent in urban areas. It is thus not surprising that, as the National Health Policy notes, medical
expenditure has emerged as one of the leading causes of indebtedness. At the same time, the
proportion of people not availing any type of medical care due to financial reasons increased
between 1986-87 to 1995-96: from 10 to 21 per cent in urban areas, and from 15 to 24 per cent in
rural areas.
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5.4
In 1983, the Government of India fixed a target to reduce Maternal Mortality Rate to
less than 200 per 100,000 live births by 2000. However, 407 mothers die due to pregnancy
related causes, for every 100,000 live births even today. Thus, for instance, deaths due to
anaemia among women who are not pregnant are twice as much as among those who are.
Similarly, communicable diseases take a much higher toll than that due to pregnancy and
childbirth. The underlying reason of course for this pattern of morbidity and mortality is not just
poverty, but the fact that health systems have collapsed over the last decade and a half.
5.5
health care. Poor educational status leads to non-utilization of scanty health services and increase
in avoidable risk factors. Both are closely related to life expectancy and infant mortality rate.
Advances in medicine are responsible for no more than half of the observed improvement in
health indices.
5.6 Human Development Indicators: a challenge for all
Longevity, literacy and GDP per capita are the main indicators of human development.
Longevity is a measure of state of health, and is linked to income and education. Weakness in
health sector has an adverse effect on longevity. India ranks low (115th) amongst world nations
judged by Human Development Index (HDI).
5.7 High Burden of Disease
India faces high burden of disease because of lack of environmental sanitation and safe
drinking water, under-nutrition, poor living conditions, and limited access to preventive and
curative health services. Lack of education, gender inequality and explosive growth of
population contribute to increasing burden of disease. Full impact of the HIV epidemic and
tobacco related diseases is yet to be felt.
5.8 Inequity in health care
Almost everywhere, the poor suffer poor health. In addition the gap in health between
rich and poor remains very wide. Addressing this problem, both between countries and within
countries, constitutes one of the greatest challenges of the new century. Failure to do so properly
will have consequences for the global economy, for social order and justice, and for the
civilization as a whole.
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6.
health in the country. The major policies and programmes are discussed below.
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India.
The
medical
through
Wellness
Centres
/polyclinics
under Allopathic, Ayurveda, Yoga, Unani, Sidha and Homeopathic systems of medicines.
imbalances in availability of
affordable/reliable
tertiary level healthcare in the country in general and to augment facilities for quality medical
education in the under-served States. The PMSSY envisages:-Setting up 6 AIIMS (All India
Institute of Medical Sciences) like institutions one each in the States of Bihar (Patna), Madhya
Pradesh (Bhopal),Orissa (Bhubaneswar), Rajasthan (Jodhpur), Chhattisgarh (Raipur) and
Uttaranchal (Rishikesh) at an estimated cost of Rs.332 crore per institution. Each institution will
have a 850 bedded hospital intended to provide healthcare facilities in 39 speciality/superspeciality disciplines. Medical College will have 100 UG intakes besides facilities for imparting
PG/doctoral courses in various disciplines.
6.7. National Aids Control Programme
The National AIDS Control Organization, Ministry of Health & Family Welfare has
launched the National AIDS Control Programme, from December, 1999. It has two key
objectives namely:
1. To reduce spread of HIV infection in India; and
2. Strengthen India's capacity to respond to HIV/AIDS on a long term basis
6.8. National Polio Surveillance Project
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The Project, which was launched in 1997, provides technical and logistic assistance to the
Government of India, and works closely with state governments and a broad array of partner
agencies to achieve the goal of polio eradication in India. India has made tremendous progress in
polio eradication. As a result of these tremendous efforts, the incidence of polio in India has been
reduced from an estimated more than 75,000 annual cases in 1996, to just 136 cases in 2004, the
lowest number ever. India now stands on the verge of being polio-free.
6.9. Revised National Tuberculosis Control Programme (RNTCP)
This Programme began as a pilot in 1993 and was launched as a national programme in
1997. Rapid RNTCP expansion began in late 1998. By the end of 2000, 30%of the countrys
population was covered, and by the end of 2002, 50%of the countrys population was covered
under the RNTCP. By the end of 2003, 778 million populations were covered, and at the end of
year 2004 the coverage reached to 997 million. By December 2005, around 97% (about 1080
million) of the population had been covered.
6.10. National Cancer Control Programme
This Programme was started in 1975-76. Its goals & objectives are:
1. Primary prevention of cancers by health education regarding hazards of tobacco
consumption and necessity of genital hygiene for prevention of cervical cancer.
2. Secondary prevention i.e. early detection and diagnosis of cancers, for example, cancer of
cervix, breast cancer and of the oro-pharyngeal cancer by screening methods and
patients education on self examination methods.
3. Strengthening of existing cancer treatment facilities, which were inadequate.
4. Palliative care in terminal stage cancer.
6.11. National Maternity Benefit Scheme
This Scheme was introduced in 2001 to provide nutrition support to pregnant women.
Under this scheme BPL pregnant women are given a onetime payment of Rs. 500/- 812 weeks
prior to delivery.
6.12. Accredited Social Health Activist (ASHA)
One of the key components of the National Rural Health Mission is to provide every
village in the country with a trained female community health activist ASHA. Selected from the
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village itself and accountable to it, the ASHA will be trained to work as an interface between the
community and the public health system. ASHA will be the first port of call for any health
related demands of deprived sections of the population, especially women and children, who find
it difficult to access health services.
6.13. National Health Policy, (1983)
A National Health Policy was last formulated in 1983, and since then there have been
marked changes in the determinant factors relating to the health sector. The NHP-1983 gave a
general exposition of the policies which required recommendation in the circumstances then
prevailing in the health sector. The noteworthy initiatives under that policy were:(i) A phased, time-bound programme for setting up a well-dispersed network of
comprehensive primary health care services, linked with extension and health education,
designed in the context of the ground reality that elementary health problems can be resolved by
the people themselves;
(ii) Intermediation through Health volunteers having appropriate knowledge, simple
skills and requisite technologies;
(iii) Establishment of a well-worked out referral system to ensure that patient load at the
higher levels of the hierarchy is not needlessly burdened by those who can be treated at the
decentralized level;
(iv) An integrated net-work of evenly spread speciality and super-speciality services;
encouragement of such facilities through private investments for patients who can pay, so that
the draw on the Governments facilities is limited to those entitled to free use.
6.14. National Health Policy, (2002)
The NHP 2002 needs to be lauded for its concern for regulating the private health sector
through statutory licensing and monitoring of minimum standards by creating a regulatory
mechanism. This has been an important struggle of health researchers and activists to build
accountability within the private health sector and it is hoped the new policy addresses this issue
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rigorously. Besides this, the express concern for improving health statistics, including national
health accounts, is welcome. A mechanism of assuring statutory reporting not only by the public
system but also the private sector is an urgent requirement so that health information systems
provide complete and meaningful data. The main objective of NHP 2002 is to achieve an
acceptable standard of good health amongst the general population of the country.
The situation demands concerted action from civil society organizations, Peoples health
movements and other concerned groups and movements to pressurize the Government both at
the national and state levels to radically alter the way the health services are organized and
funded. Priorities are to be changed taking into consideration the health problems affecting the
marginalized people and the vulnerable sections of the society. The CentralGovernment should
also resist the pressure from the International Financial Institutions to further privatize the health
sector, since the Indian health sector is one of the most privatized in the world.
7. Summing up
Given the above context, the lack of access to healthcare is the main reason why health
status of the Indian population is unsatisfactory. Health indicators across the board are close to
the worst and within the country inequities across classes are very severe. Health indicators of
Kerala are quite encouraging. In respect of Uttar Pradesh, Madhya Pradesh, Orissa, a lot of
improvement is needed. Similarly huge disparity exists in terms of access between urban and
rural areas and between developed remote areas inhabited by marginalized sections of the
society. In a federal state like India, the centre enjoys much more power basically in the health
sector. After taking so many initiatives, we the Indians are far away from access to health care.
8. Appendix
Table-1: Differentials in Health Status among States
Sector
Population BPL
IMR/Per
Mortality
(%)
1000
per 1000
Live Births
India
26.1
70
94.9
Rural
27.09
75
103.7
Urban
23.62
44
63.1
Better
Performing
States
Kerala
12.72
14
18.8
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Maharashtra
TN
Low
Performing
States
Orissa
Bihar
Rajasthan
UP
MP
25.02
21.12
48
52
58.1
63.3
47.15
42.60
15.28
31.15
37.43
97
63
81
84
90
104.4
105.1
114.9
122.5
137.6
1951
1981
2000
36.7
54
64.6
40.8
33.9
26.1
25
12.5
8.7
146
110
70
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Dyson, Tim and Amresh Hanchate (2000). India's demographic and food prospects: A
state level analysis. Economic and Political Weekly 35, November 11.
Gangoli. Leena, Ravi. Duggal & Abhay. Shukla. (2005). Review of Health Care in
India, CEHAT, Mumbai.
Government of India (2000). National Population Policy 2000. Ministry of Health and
Family Welfare, New Delhi.
Registrar General, India (2001). Provisional Population Totals: Census of India 2001,
Series-1, India, Paper-1 of 2001. Controller of Publications, Delhi.
Web Sources:
Website of Ministry of Health and Family Welfare, Government of India.
(http://mohfw.nic.in/)
Website
of
Registrar
General
and
Census
Commissioner
(http://www.censusindia.net/)
Website of
(http://populationcommission.nic.in/)
Website of the Human Development Report, UNDP (http://hdr.undp.org/en/)
Website of the World Bank (http://www.worldbank.org.in)
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1. Introduction
Literacy in India is key for socio-economic progress, and the Indian literacy rate grew to
66% in 2007 from 12% at the end of British rule in 1947. Although this was a more than fivefold
improvement, the level is well below the world average literacy rate of 84%, and India currently
has the largest illiterate population of any nation on earth. Despite government programs, India's
literacy rate increased only "sluggishly," and a 1990 study estimated that it would take until 2060
for India to achieve universal literacy at then-current rate of progress. The 2001 Census,
however, indicated a 1991-2001 decadal literacy growth of 12.63%, which is the fastest-ever on
record.
There is a wide gender disparity in the literacy rate in India: adult (15+ years) literacy
rates in 2009 were 76.9% for men and 54.5% for women. The low female literacy rate has had a
dramatically negative impact on family planning and population stabilization efforts in India.
Studies have indicated that female literacy is a strong predictor of the use of contraception
among married Indian couples, even when women do not otherwise have economic
independence. The 2001 Census provided a positive indication that growth in female literacy
rates (14.38%) was substantially faster than in male literacy rates (11.13%) in the 1991-2001
decadal period, which means the gender gap appears to be narrowing.
In 1944, the Government of British India presented a plan, called the Sergeant Scheme
for the educational reconstruction of India, with a goal of producing 100% literacy in the country
within 40 years, i.e. by 1984. Although the 40 year time-frame was derided at the time by leaders
of the Indian Independence Movement as being too long a period to achieve universal literacy,
India had only just crossed the 64% level by the 2001 Census.
The importance of education has been realized since times immemorial and continues right up to
this day. Education is said to be the third eye of man. It is a source of guidance in almost all spheres of
life. It is nothing else but education that elevates a man into a perfect human being. Primary education
constitutes a very important part of the entire structure of education. It is at this stage that the child starts
going to a formal institution and formal education starts. The education which she receives there provides
the foundation of the physical, mental, emotional, intellectual and social development of the child. Sound
primary education gives a fillip to sound secondary and higher education. Education is the cornerstone of
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political development and social development and is regarded as a principal means of improving the
welfare of individuals. It increases the productive capacity of societies and their political, economic and
scientific institutions. It also helps reduce poverty by increasing the value and efficiency of the labour
offered by the poor and by mitigating the population, health and nutritional consequences of poverty. The
social effects of education in developing countries are equally positive. According to Frederick Harbison
and C.A. Myers, Education is the key that unlocks the door to modernization. In the words of Goel,
Education affects economic development both directly and indirectly, and directly through productivity,
employment, composition of labour force, division and mobility of labour etc., and indirectly through
savings, limitation of the size of family and by inculcating the right kinds of attitudes and skills and by
removing some of the obstacles to social change and progress. Recognising such importance of education,
one of the Five Year Plan document stated that, Education is the most important single factor in
achieving rapid economic development and technological progress and in creating a social order founded
on the values of approach and methods.
Primary education is the first stage of compulsory education. It is preceded by pre-school or
nursery education and is followed by secondary education. In most of the countries, it is compulsory for
the children to receive primary education, though in many jurisdictions it is permissible for parents to
provide it. The transition to secondary school or high school is somewhat arbitrary, but it generally occurs
at about eleven or twelve years of age. Some educational systems have separate middle schools with the
transition to the final stage of education taking place at around the age of fourteen. The major goals of
primary education are achieving basic literacy and numeracy amongst all pupil, as well as establishing
foundations in sciences (physical, chemical and biological), geography, history, maths, and other social
sciences. The relative priority of various areas, and the methods used to teach them, are an area of
considerable political debate. Typically, primary education is provided in schools, where the child will
stay in steadily advancing classes until they complete it and move on to high school / secondary school.
Children are usually placed in classes with one teacher who will be primarily responsible for their
education and welfare for that year.
2. Objective
Main objective of this Unit is to know, what is primary education and what are various policies
and programmes which had been taken up by the governments at Centre and State since
independence.
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primary stage.
3.3. High School Education
The secondary stage consists of Classes IX-X in 19 States/UTs. However, the Higher
Secondary / Senior Secondary stage of school comprising classes XI-XII (10+2 pattern) is
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minorities, whether based on religion or language, shall have the right to establish and administer
educational institutions of their choice. While Article 30 (2) lays down that the State shall not
in granting aid to educational institutions discriminate against any educational institution on the
ground that it is under the management of a minority, whether based on religion or language.
Though the constitutional provisions and institutional arrangements are in place, the goal of
making education accessible to all appears to be eluding us. The low literacy of the country vis-vis other nations in terms of Human Development Index, a methodology evolved by UNDP,
bears testimony to this.
Special care of economic and educational interests of the underprivileged sections of the
population is laid down as an obligation for the state under Article 46. As per the Article state
shall promote with special care for the educational and economic interests of the weaker sections
of the people. And in particular, of the scheduled tribes (STs) and shall protect them from
social injustice and all forms of exploitation
As stated earlier, education was brought under the Concurrent List, till then it was in the
State List through 42nd Amendment to the constitution in 1970 and except for certain specified
items in the Union List like determination of standards in institutions for higher education or
research, establishment and maintenance of central universities as well as specified institutions
for scientific or Technical education and research. The objective of including education in the
Concurrent List was to facilitate evolution of national policies in the field of education. The
concept of concurrency was given an operational meaning by the National Policy on Education
(N.P.E) 1986. This Policy envisages concurrency as a meaningful partnership between the
Centre and States and placed on the Union Government a greater responsibility in regard to the
national and integrative character of education, quality and standards, manpower planning,
research and advanced study, and international aspects of education, culture and human resource
development. This move was never questioned by political parties as all parties seem to be of the
view that there will be greater integrative value, necessary for national unity than the compulsive
argument that a more decentralized approach for this policy helps participation in schooling.
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A broad assessment of situation after nearly two decades of experience reveals that India
has the largest number of illiterates and out of school children in the world which is 30% of the
worlds adult illiterates and 21.87% of out of school children. About 19 to 24 million children, in
the age group 6-14, are out of school of whom about 60% are girls, and more than 35 million are
adult illiterates in the age group of 15-35 of whom majority are women. The Public Report on
Basic Education in India , an authentic appraisal of state of affairs in this sector, further dampens
the enthusiasm of students of public policy besides a host of other reports.
However, the policy makers cutting across party affiliation continue to lay emphasis on
education especially elementary education. The benefits of investing in basic education, both for
its intrinsic value in enhancing human capabilities, as well as for its social development and
economic growth, greater efficiency and better functioning of democratic institutions are often
quoted. Policy pronouncement on the ability of education to empower women and men to
acquire greater control over the
Demographers categorically state that fertility regulation cannot be a matter of mere promotion
of contraception. A number of works state that the socio- economic factors which strongly
influence fertility behavior include female literacy. Aspects like infant mortality rate, sex ratio
are related to the universalisation of elementary education (UEE).
The UEE has a stronger regional and gender dimensions. The Indian experience
encompasses the entire third world experience. At one end, we have states such as Kerala which
have achieved universal literacy as well as UEE in terms of school participation. Even this State
may not be the best in terms of learning achievement with social indicators compared to
Scandinavian countries. However, on the other end of the spectrum we have states like, UP,
Bihar, Andhra Pradesh, Orissa and MP with indicators worse than some countries in Africa. To
the extent that gender disparity is pronounced, UEE is the problem of girl child. Teacher
competence, motivation and performance are areas, which require greater attention. These of
course remain crucial inputs in UEE.
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numbers alone this is the greatest challenge that human society ever faced. More so, if one were
to adhere to the task decided in the NPE 1986, achieving universalisation before the
commencement of twenty first century; it was now postponed to 2005 as part of Millennium
goals- ironically set by G-8 the highly developed countries.
In the debate on rights based approach to development, the states role in public
education assumes criticality. In Indian context, while the Union and the state governments
having their full share of responsibility; observers opine that peoples involvement in educational
development makes crucial difference to the task. While the challenge that confronts in this
sector is formidable, studies on successful states like Kerala and Tamil Nadu provide useful
lessons. The policy response ought to be individually and collectively be faced. All the state
holders i.e. public, teachers and educators; NGOs the industrial sector, the media, politicians,
panchayat leaders, grass root workers and others have to regard it as achievable task. Lets see
how it through a whole circle as.
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Similarly, following concerns are raised. The Act maintains the inequity in education
system between the rich and the poor which plants the seeds for discrimination further in life.
The government has allowed its education system over the years by wilful neglect to degenerate
into a sub-standard system with inadequate resources thereby letting private players to
increasingly play a more visible role. The present Act further strengthens the privatization
agenda. There is a need to rethink on it.
i.
When the poor are 75%, why only 25% reservation for their children in private
schools?;
ii.
Why don't the children of government officers and political leaders attend the
government schools?;
iii.
iv.
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02. SSA has been built upon the experience of several primary education programmes that
preceded it, including the District Primary Education Programme (DPEP) , Shiksha Karmi
Project (SKP), and Lok Jumbish (LJP). It is a partnership programme between the Central and
State Governments , which seeks to improve the performance of the school system through a
community owned approach , with specific focus on the provision of quality education. SSA is
a time- bound mission , with the objective of ensuring universalisation of Elementary Education
and Bridging of gender and social gaps by 2010. States have established independent
implementation societies for SSA under the chairmanship of their respective Chief Ministers and
Education Ministers.
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Its an important component of SSA , which provides additional support for girls
education in educationally backward blocks by way of girl- child friendly school, stationery ,
uniform etc., for elementary education under privileged / disadvantaged girls.Another important
component of SSA is the Education Guarantee Scheme and Alternative and Innovative
Education (EGS & AIE), which is specially designed to provide to children in school-less
habitations and out-of-School children, access to elementary education. The scheme support
flexible strategies for out of school children through bridge courses, residential camps, dropin- centres, summer camps, remedial coachings.etc.
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The Programme covers all children studying in government, local body, government
aided schools, and in learning centers established under the Education Guarantee Scheme and
Alternative and Innovative Education.
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The National Policy on Education 1986 further refined quality improvement of primary
school. It tried to make school environment attractive. Efforts are made to give a face lift to
building and additional material was supplied to schools. Motivating factors impinging on
enrolment and retention are identified. This initiative was symbolically called Operation
Blackboard.
The Scheme started off in 1987-88 with the motive of i) At least two reasonably large
all-weather class rooms along with ii) two teachers of whom one is a woman; iii)provisioning
essential teaching and learning material including blackboards, maps, charts, a small library,
besides toys; and games at the school.
The Operation Blackboard envisioned that the construction of school buildings be given
as the responsibility of state governments. To begin with Ministry of Rural Areas and
Employment earmarked 48% of the funds under Jawahar Rozgar Yojana (JRY) for construction.
The Scheme has been further extended to cover upper primary schools, provision was
made for at least i) one room for each class; ii) a Headmaster-cum-office room; iii) necessary
toilet facilities; iv) a contingency grant of Rs.1000 per annum; v) library facilities vi) essential
equipment; vii) at least one teacher for each class/section. Primary schools with enrolments more
than 100 and two teachers and now being provided with a third teacher.
The salary of one additional teacher is met by the Central Government for the plan
period. Rs.50, 000 is provided to each school for essential teaching learning equipments
including Rs.10,000 for library facilities. In order to promote community participation in this
venture; preference is given in selection to the villages where community contributes 20%
(Rs.10,000) towards equipment in which case Central contribution will be Rs.40,000. However
in Tribal (ITDA) areas, entire 100% assistance will be provided by the Central Government.
With these there is a definite improvement. There is an appreciable rise in retention though it is
still short of the goal.
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In Rajasthan since 1987 with the assistance from the Swedish International Development
Agency, the Siksha Karmi Project is under implementation whose objective is to achieve
qualitative improvement of primary education in remote and of inaccessible backward villages in
Rajasthan. The primary target group is girls. In a report it is stated that teachers absenteeism is
one of the major reason for low achievement of UEE. The Government of Rajasthan through
Rajasthan Shiksha Karmi Board (RSKB) is implementing the project with the assistance of
voluntary agencies.
Further, this Project succeeded in checking of teacher absenteeism, social and gender
inequality in access through in a limited way and also addressed quality question. According to
reports there has been a three-fold increase in enrolment of children in schools given to this
agency. Furthermore, it is gathered that nearly fifth of those of where project is implemented that
is a 62 percent rise in retention. A significant number of children covered by the SK schools are
from scheduled caste and scheduled tribe households. The project as of 2003 covered 1785
villages in 113 blocks of Rajasthan. 4271 Shiksha Karmis provided primary education to
approximately 1.50 lakh children in day schools and PreharPpathasalas. Thus the experiment in
public-private partnership to a large extent met the goals.
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Bihar is one of the educationally backward states. A number of initiatives are needed to
reach the goal UEE. Bihar Education Programme is one of them launched in 1991 with the
objectives of bringing about quantitative and qualitative improvement in the elementary system.
It laid emphasis on the education of deprived sections such as Scheduled Castes (SCs) and
Scheduled Tribes (STs) and women. Participatory planning and implementation remain
highlights of the project.
The goal of social reconstruction through education does not remain a distant dream says
a report. The Bihar Education Project (BEP) went through the processes to achieve goals. It
registered appreciable progress in the problem plaguing the primary education sector in one of
the largest states in the country. However it needs to be stated that much more needs to be done
in Bihar as the retention levels suggest. Lets look another major state i.e., U.Ps programme of
Universalisation of Elementary Education.
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Like Bihar, Uttar Pradesh too attempted a major drive. A Project Education for All
prepared by the Government of UP was approved for funding by the World Bank in June 1993.
The progress of implementation for the last decade is reported to be satisfactory though more
needs to be done. Lets get into details.
Nearly 10 years after implementation, the Uttar Pradesh Basic Education Programme
appears to be showing remarkable results. Enrollment at the primary as well as upper primary
school levels in the Uttar Pradesh Basic Education Programme districts has shown a major
increase. At the primary level, enrollment increased by 66.8% and at the upper primary level by
64 percent. If one compares girls enrollment in project and non-project districts in UP, the
increase is reported to be nearly 67% and 33.11% respectively. Improvements have also been
recorded in the mid-term learning assessment conducted in 1996 in which composite mean
scores for grade 5 in language improved over the baseline from 34.18 to 37.30 and mean scores
from mathematics were higher in project districts as compared to the non-project districts.
Classroom activities also reflect a variety and 60% - 90% of Teachers report constructing
and using teaching aids as compared to 25-60% in the baseline survey. The Project has also built
good capacity with the support of the State Institute of Educational Management and Training
which will serve as a training and resource institution for the northern region. Thus the special
intervention programmes intended for improving access, equity, retention, and quality-major
goals of these programmes seem to be showing good results in major states.
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It has also initiated several innovative programmes activities like school health
programme to generate awareness among the school children on health issues. Measures such as
enrolling minorities to mainstream education, supply of the uniforms / free text books to schools
seem to have resulted in better enrolment and retention of children, especially girls, in the
schools. Low cost hostels for the benefit of tribal children also helped the cause in extending to
cover 5.57 lakhs primary class children in the 4426 blocks comprising employment assurance
scheme (EAS) / Revamped Public Distribution System and the Lok Jumbish initiatives calls for a
more intensive analysis.
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8. Summing up
If we are to nurture and strengthen democracy and build a secular society in India, participation
by all as equal citizens is imperative. In this regard, education of the whole population is essential.
Although the transformation of a country from a high level of literacy to one of near universal literacy
cannot be achieved overnight, the fact remains that the status of a child going contrasts sharply with that
of a full-time worker, even in a situation of low literacy levels. The school going child is treated primarily
as a student and any work performed by him / her cannot be at the expense of his /her school activities. In
other words, it is accepted that the primary activity of the child is that of a student and not a worker.
Therefore, any programme to increase literacy levels among children must necessarily also be a
programme to reduce the incidence of child labour.
10. Keywords
UEE: Universalisation of Elementary Education
SSA: Sarva Shiksha Abhiyan
DPEP: District Primary Education Programme
KGBV :Kasturba Gandhi Balika Vidyalaya
MLL: Minimum Levels Of Learning
OBB: Operation Black Board
BEP:Bihar Education Project
UPBEP: Uttara Pradesh Basic Education Programme
NP-NSPE :National Programme of Nutritional Support to Primary Education
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v.
vi.
vii.
viii.
Aggarwal, J.C (2004): Development of Education System in India Shipra, New Delhi
Chalam K. S (1993): Education Policy for Human Resources Development Rawat
Publications, Jaipur.
Dreze Jean and Amartya Sen (1996): India Economic Development and Social
Opportunity Oxford University Press, New Delhi
Mukhopadhyay Marmar (1999): Primary Education Fifty Years in search of
Universalisation, Indian Education- Development Since Independence Vikas Publishing
House,
New Delhi
Naik J P (1975): Education, Planning and Human Development Isha Books, Delhi
Ravindra Babu J (2009): Universalisation of Elementary Education: A study of
implementation of District Primary Education Programme from South India Cambridge
Scholars Publications, UK
Tilak J B G (1990): Education for Development in Asia SAGE Publications, New
Delhi
Venkataiah.S (2001): Child Education Anmol, New Delhi
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1. Introduction
One of the aspects that promote development and quality of life is access to easy credit.
While opportunities for savings are plenty, rural people in general and women in particular stay
away from them because of illiteracy and ignorance. It is a vicious circle. However, the state
continues its efforts to enhance the participation of people in the development process. Thrift and
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savings are proved to be the two main sources through which not only women got mobilized but
these help women to be active participants in the developmental process. This Unit explains the
evolution movements for thrift, its current status and how it is seen today.
The hand that rocks the cradle, rules the World is an old adage that is acceptable even
in the contemporary society. Women by nature, are self motivators and enterprising unlike men
who take things for granted, because of genetic, traditional and conservative attitudes prevailing
in our society. Since times immemorial, men have suppressed women to play second fiddle,
thereby keeping them in their clutches. The industrial revolution, over population, rising literacy
rate among women and the awareness of their rights and duties portrayed through the print and
visual media has created a sense of craving to carve a niche and remain non-dependent and self
sufficient to face the adversaries of society.
Interestingly, women empowerment is the best yardstick to find out whether a Nation is
developing or underdeveloped. This is a reliable indicator to the rural poor and policy makers to
evolve a programme to empower women folk. In this direction, Government of India in general
and Government of Andhra Pradesh in particular planned strategies, policies and programmes
that are well culminated with an agenda to empower women by making them come together to a
common platform called Self Help Group.
The large scale mobilization of women, especially those coming from the poor families
during the total literacy campaign affords an opportunity for savings movement to consciously
intervene and provide leadership so that emancipator potential of the campaign is realized.
1988-89 by
combination of relatively chance developments in the administration and the peoples social
movements. It is rather surprising to find that savings movement has grown in a space of 5 years
into an unprecedented state level mobilization of women in rural areas. This had an impact not
only on literacy and on primary education, but also in a number of other development activities.
There are a number of reasons for the women to participate in the literacy campaigns.
Women in Nellore answered this question by saying that they can write letters to their husbands
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and relatives, they can read the place of destination on the buses, to get wisdom, to count money,
to avoid getting cheated by the money lender and so on. Literacy gave them a sense of identity,
enhanced status and image.
It is likely that content of the literacy primers and the unconscious attempts to build in
messages relating to their daily lives helped. In groups of 5-10, they could sit down near their
own door steps, at a time of their convenience, with a familiar person as instructor an informal
setting where they could come and leave as and when they wanted.
Another motivating factor and key to mobilization was the Kalajatha a powerful
medium that packed its messages in the popular cultural idioms and farms. Messages are linked
to literacy with basic problems of livelihood and enable them to question the exploitation of the
poor and the women in the society. The final message was to escape from poverty and resist
oppression. These messages struck a chord the sympathy amongst women of the weaker
sections.
Simultaneously the call for becoming literate by the district administration was not
perceived as a threat by the local vested interests. Women participated in the massive
environment building, met daily for evening classes and participated in the discussions with men
on various social issues. The presence of the District Magistrate and other government officials
and NGOs gave the campaign legitimacy and comfort in the eyes of conservative sections of the
society.
Women of Nellore expressed that initially husbands were worried of facing a confident
women in them and reduce domestic violence. The association of women literacy groups helped
them to gain more strength. Sometimes even the intervention of literacy volunteer helped the
women to attend classes regularly. Literacy campaign was used as a strategy for mobilization of
women especially the poor.
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The lessons learnt were womens movement recognized much broader aspirations of
women and their willingness and eagerness to acquire education and improve their living
conditions given an opportunity to do so.
2. Objectives
After going through the Unit , you will be able to:
explain the evolution of movements for literacy its metamorphosis into a thrift
movement
4. Facilitating Factors
Interaction of the group members enables them to discover common interests,
likes and dislikes attitudes or sentiments.
Neighbourhood:
Community: people with similar social background exhibit similar coping behavior
in times of crisis and hence will be able to extend mutual support.
Occupation: people in similar occupation tend to be cohesive and group action often
found successful in confronting common problems. Ex: Vegetable, fruit, flower, milk
and other commodity vendors, weavers, handicraft workers.
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Besides these, other factors like age, physical or social disability, management of
community resource/ asset are also being tried out for building community organizations.
5. Organizational Issues
5.1. Membership requirements
Persons with negative characteristics tend to be left out and those with positive
attributes tend to be included.
Every member has right to determine goals, objectives and vision of the group.
Right to access loans from the pooled corpus funds of the group.
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Developing systems and procedures where ordinary members are required to assist
leaders in discharge of routine functions
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Providing inbuilt mechanism for rotation of leadership at least once in 2 years with a
clear succession plans for smooth changeover of leadership similar to that found in
Rotary Clubs
Withdrawals against compulsory thrift contributions are not permitted unless the
member withdraws from primary membership.
Groups must collect thrift contribution in the presence of all members during the
meetings only.
Thrift collections must be utilized for lending to group members nd must not be
kept idle.
Penal provisions like fines, penalties, etc must be forced against late payment or
default in thrift.
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Continuity of thrift is the jugular of Self Help Group process and any attempt to
obstruct or discontinue it after receipt of Revolving fund, Subsidy, Grant or even
a Bank Loan can only be a self-inflicting move.
Credit
A well conceived loan program in a SHG will enhance its attractiveness to the
members. The loans are often given for various purposes without insistence on
collateral but are available at cost. Some of the best practices in the credit
management include
Small, short term loans for meeting emergent and consumption requirements only
to the group members.
The internal lending must preferably commence from the data first pooling of
savings or after six months or one year depending on the group decision.
Loans are extended keeping in view the nature of the need of a particular member.
Groups must have a system of giving differential priorities to several purposes for
taking loaning decisions.
Group must establish a process to access credit requirement for arriving at a loan
quantum.
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All credit decisions must be taken at the meetings only after giving due
consideration to opinion of all members.
Large loans to members are suitably collateralized considering the risk perception
of the group.
Terms of credit like interest rates and schedule of loan repayments are negotiated
and conveyed to the borrower.
Flexible repayment schedules are worked out by the groups taking into
consideration the various income flows of the member and his / her repayment
capacity.
Monthly and even weekly repayments are encouraged to liquidate the loan
liability.
Separate schedules for principal and interest payments may be stipulated as their
easy to comprehend even by illiterate borrowers.
Loans have to be issued to the borrower in the presence of other group members.
Groups ensure proper end-use on credit and also management of asset. This
practice is continued till the loan is totally repaid.
Concurrent loans are generally discouraged by most groups in view of the small
fund base, but wherever they are given, rigorous appraisal must be undertaken on
the purpose of loan and genuine need of the borrower.
Reward for one time repayment may be given to members in the form of future
access to higher loan amounts.
Penal provisions like fines, penalties must be enforced against late payment or
default.
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Continuity of need based internal lending will strength them SHG process and any
attempt to obstruct or discontinue it after receipt of Revolving Fund, Subsidy, Grant or even a
Bank Loan can only be a self destructive move.
Fund management
Group fund generally comprises member thrift, interest earned on internal loans, fines
and penalties levied on defaulting borrowers, subsidies received through Government
schemes grants and loans received from financial institutions.
Managing savings account with local bank branch is an important area in fund
management. All cash collections made at a meeting may be deposited into the bank
and with drawls made for disbursing loans. Periodic reconciliation of accounts with
bank transactions is crucial.
Initially only short term loans ranging from 3-12 months are encouraged. Monthly
repayments will accelerate the velocity of lending within the group, which also
partially reflect equity in loan access to group members.
Most of the groups charge interest rates that are linked to contemporary market rates.
It is desirable to building risk factor in the interest rate structure in long term.
It must be appreciated that the interest charge on loan is a source for rising additional
capital to augment the corpus base. However most of the groups charge interest on a
flat rate basis for maintaining simplicity of accounting.
Members must be made aware of their cumulative thrift contribution and outstanding
loan amount.
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Groups incurring regular expenditure towards the cost of bank transactions and
honorarium to the bookkeeper could collect additional amounts from the members to
avoid erosion of loaning funds.
Groups should have small cash balances, say Rs 200-1,000 to give hand loans to
members for meeting the emergency credit requirements.
Record keeping
Record keeping is the most crucial function in a SHG often confined to the periphery. An
effective information system that supports their self management efforts is sine quo non for
sustainability of SHGs. It should be easily understood and appeals to the cognitive abilities of
ignorant and illiterate SHG members. Some of the best practices in record keeping are
1. Groups should be responsible for safe keeping of records.
2. Must be trained to recognize books of accounts and their structure.
3. Must be encouraged to discuss on nature and content of records.
4. must be encourage d to hire the services of local bookkeeper for updating and marinating
books of accounts in case of non-availability of literate members in the group capable of
writing the records.
5. Must be encouraged to compensate for the services render by book keeper.
6. Must ensure that book writer reads out the noting made in various books to the members.
7. Must develop a practice of closing books of accounts by the calendar / financial year end
as per their choice.
8. Must cultivate habit of conforming entries in member passbook duly attested.
5.6 Banking relationship
Self Help Groups can avail credit services from the local banks as a part of the logical
extension of their growth strategy to meet the increasing credit demands from members. Scale of
operations would also accelerate economic development. The desirable best practices are:
Open savings account in groups name with the service area bank branch.
Regular operations in the account will help to build a healthy relationship with bank.
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Groups to assess the credit gap and approach banks with micro-credit plans.
Groups should have clarity on credit eligibility conditions and legal obligations
arising out of credit linkages with banks.
Terms and conditions of credit including implications of joint and several liabilities in
the event of credit linkage must be clearly understood by all group members.
Groups must assimilate bank loans with their corpus fund by extending need based
loans to the members who could not access loans earlier from out of pooled savings.
Groups must ensure on time payment of bank loans by setting aside a portion of total
collections made in each meeting for honouring repayment obligation to the bank.
Banks must reward for on-time repayment by means of repeat and higher finance.
Empathy with the community and ability to see from the perspective of the people.
Patience and diligence particularly on financial side of group activity to enable him
to explain the implication of savings and credit activity in simple terms to the group
members.
Pragmatic style of community worker would help the program respond effectively to
particular needs of the group.
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5.8 Stages of Self Help Group Development and the role of Government/ NGOs /
Self Help Promotion Institutions (SHPIs)
The following table shows the evolution of the roles of SHPI through various stages of
development of SHGs and focus of activities at each stage.
Stage of
Development
Pre-formation
Time
period
1-2 months
Role of NGO /
SHPI
Initiator/
Promoter
Formation
2-6 months
Facilitator
Stabilization
Phase I
7-12 months
Advisory /
Managerial
Phase II
12-18
months
Advisory/
Managerial
18 months
and above
Advisory/
Managerial
Consultative/
Institution
building
Growth and
expansion
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Focus of activities
Identifying the poor through
participatory
rural
appraisal
methods in small hamlets /
villages / towns.
Motivation to form groups, select
group leaders, develop rules and
norms, conduct meeting, pooling
of savings, issue and collection of
small loans, group cohesion,
adjustment systems and accounts.
Leadership stabilization, training
of leaders, members, regularize
and increase savings, handling of
group level transactions, informal
interactions with other groups/
clusters, addressing community
interests. Stabilizing the process of
issuing and repaying loans,
handling/ helping defaulters to
repay, sourcing loans for groups
through formal credit system, etc.
In addition to above activities,
initiation of income generating
programmes, linkages with banks,
support
for
new
groups,
demonstrative effect on others to
form groups.
Different institutions working with SHGs may have particular interest in a class of
parameter(s) oblivious of others, but it is often found that an institution focusing on a particular
factor at given time may have interest on the other parameter at another point of time. The microfinance practitioners are often confronted by dilemma of according paramountcy to performance
related issues over human processes. Their argument is routed in the premise that parameters
concerning structures functions and performance of groups, are all surrogate for human
processes they have undergone. It is generally felt that rating of SHGs could be done taking into
consideration a few areas like group dynamics, financial management, accounts and records
maintenance, development linkages, profile of economic activities pursued and participation in
social programs. Most of the rating indices develop by Government agencies relay upon social
dynamics as they are loaded heavily in favour of participation of SHGs in social development
activities. While social development is no doubt important the grading requirement of financial
institutions is essentially to determine the credit absorption capacity of the groups and their
ability to handle enhanced fund base.
Another important consideration for design of rating device is whether the information
rating out of grading effort is to be integrated with Management Information System (MIS) of
Self Help Promoting Institutions (SHPI). MIS can be achieved by maintaining historical data of
the group and processing of rating information. This may require a composite index comprising
both static and dynamic information relating to the group.
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Provisions of credit plus services (technology, skills, raw materials, market support,
etc)
Provision of credit plus plus services (literacy, drinking water, health care etc)
Credit functions
Strengthening and streamlining, book keeping and audit systems at group level
Balancing fund surpluses and deficits through network level lending to ready
members/ groups
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network will have federal character where the groups will be its primary members and not the
individuals in the groups. Needless to say that the restructuring effort should not affect the group
composition, size, scale of operation, methods of decision making and group discipline norms.
Over a period the groups and networks will specialize in provision of package of services to their
members depending upon their inherent strengths. Four scenarios likely to emerge from such
evolution process, viz.,
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Asset quality: Federation should have at least 95% of their loan assets in
performing category.
Self Sufficiency Indices and Performance Ratios: SHG networks must plan
for their portfolios to earn adequate income to meet their operation costs.
Project Approach
Term Loans
Portfolio Approach
Balance
Sheet
Approach
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Recommends
DWCRA Scheme was implemented on a pilot basis in a few districts in the country from
1982-83 and extended to all the districts by 1994-95.
Financial Resources
Up to 1994-95, cash support in the form of Revolving Fund to a group is limited
to Rs 15,000/- and the amount was shared equally by Government of India (GOI), State
Governments and UNICEF. During 1995-96, Revolving fund for each group was enhanced to Rs
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25,000/- and Government of India, State Government and UNICEF shared @ 40:40:20
respectively. During 1996-97, UNICEF withdrew its support. Government of India and State
Governments shared the revolving fund amount on 50:50 basis. UNICEF provided support to
administrative staff cost for a periods of 5 years initially for each district. Later it was met from
IRDP administrative staff cost from 01.01.1996 UNICEF withdrew totally from DWCRA.
DWCRA is a unique scheme and it envisages that once women improve their
economic and social status, they would be the vehicle for realizing health and educational
benefits to the family particularly children. Though DWCRA was a sub scheme of IRDP, the
basic differences between the two schemes are
1
2
3
4
5
6
7
8
9
10
11
1
2
3
4
5
6
IRDP
Concerned with Below Poverty
Line (BPL) family
Dependent on outside support
Based on Institutional support
Individual or family oriented
Assures that asset creation leads to
income generation
Per capita unit cost > Rs 15,000
Target driven development
Subsidy based
Men based
Quantification of spill over due to
success of IRDP has been difficult
IRDP
Concerned with Below Poverty
Line (BPL) family
Dependent on outside support
Based on Institutional support
Individual or family oriented
Assures that asset creation leads to
income generation
Per capita unit cost > Rs 15,000
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DWCRA
Concerned with women and children
only in BPL families
Emphasis is self reliance
Based on awareness and stimulation
for Self Help
Voluntary group oriented
Working capital based income
generation
Per capita unit cost Rs 1000-2000
Self driven development
Thrift & loan based
Women based
Quantification of spill over due to
success of DWCRA is overwhelming in ferns of additionality of
incomes, awareness on health and
nutrition, family planning and
literacy.
Success rate compared to resources
ploughed into this programme has
been sustained.
DWCRA
Concerned with women and children
only in BPL families
Emphasis is self reliance
Based on awareness and stimulation
for Self Help
Voluntary group oriented
Working capital based income
generation
Per capita unit cost Rs 1000-2000
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7
8
9
10
11
of women into groups to foster a collective approach to their problems and improve their lot by
enhancing their bargaining power and also to resist exploitation. These organized women can
pull many of the resources of the Governmental Programmes into the village for their benefit.
Hence they will be in a position to harvest the Opportunities from schemes, resources, services
and the laws meant to help them.
Government staff and Women Groups work as partners using participatory approach.
Under DWCRA, Rs 25,000/- is provided to the group as lump sum grant. The numbers
can use it collectively or share it on pro rate basis and it can be used for any income
generating activity. This is a common fund which is recouped and revolved periodically.
Over and above this, if needed IRDP/ SGSY (Swarnajayanthi Gram Swarozgar Yojana)
and bank loans can also be availed.
DWCRA programme is not target oriented in the conventional sense of term. It has
targeted coverage of all women living in BPL(Below Poverty Line) families in 5-6 years.
There are 910 sectoral targets since the groups themselves decide on the work they
undertake. Generally the poor women only feel the necessity of group organisation with
savings as base to provide a platform for that to stand together and muster strength.
DWCRA recognises that banks do not cater to the consumption needs of rural women,
hence they selected thrift and credit for self reliance. Within the group, women are
recognised to save their own money. Savings could be Rs 1 per day or Rs 30 per month,
Rs 2/- or Rs 60 per month as a common fund. Savings are collected once in week or in a
fortnight or in a month depending on the members through open discussions and
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deliberations. DWCRA helped to keep the women out of the grip of the money lenders
who often keep the poor Poor for generations. In this way DWCRA helped women to
take action on the root cause of Poverty.
A group opens a Saving Bank Account, jointly operated by two of the group members in
the nearest service area bank branch. Thrift is regularly credited to the group account and
withdrawn later for providing loans to the members. Rate of interest on the loans
extended to members is decided by the group itself. Generally the interest rate is fixed
depending on the availability of credit in the market or in the banks. Initially, when the
groups were formed between 1990-95, interest rate varying from 18-24% was levied.
Later, the groups reduce the interest rate from 12-18% because institutional credit was
available at 8-12% between 1996-2008. Moreover, Government of India has also
introduced the system of Back End Subsidy to the loans taken under SGSY scheme in
which a group will be entitled to avail SGSY Subsidy only after successful repayment of
loan.
Womens income is found to have a positive correlation with the nutritional and
educational status of the family and enhance the positive attitudes towards the status of
Women inside and outside the households. Cash income in the hands of Mother reach
their children for improved living standards. If women become economically
independent, their status in the family and society improves.
It is experienced that some activities particularly which are non-traditional in nature, it
was difficult to find local market for those products. In these circumstances, most of the
activities were localize. The number of groups carrying out such activities in the same area were
formed so as to increase the local production in a given area. Majority of the groups do not
depend on external marketing agencies for sale of their products. Some products are sold through
the departmental linkages within and outside the district. For eg; vegetables, chilly, sambar and
powders produced by DWCRA groups were supplied to various welfare Hostels. Jute and Cloth
bags were procured by Banks, Training Institutions like National Institute of Rural Development
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Starting point need not be the same for different SHGs. It could be around a theme
which holds maximum appeal to its members. Savings and credit could be one of the
options for starting a group.
Group trajectory need not be the same for all groups. After all group dynamics has
several routes and multiple options. Hence trajectory differs from group to group.
Speed at which the group proceeds need not be forced from outside agencies or
Government agencies. Gentle force and moderate acceleration is good but abrupt
shock in the form of announcing Government schemes and its benefits result in jerks
which are quite capable of hastening collapse of group dynamics altogether. During
1999-2000 many groups were lured with LPG connections (Deepam a Telugu name
for a scheme in which LPG connections are provided to the members of the Self Help
Groups in Andhra Pradesh by the Government and the deposit to the gas companies is
paid by the Government as subsidy) and a number of groups were formed with an
intention to avail the benefits of Deepam scheme. Some of the groups withered away
after availing the benefits.
Who exercises power to decide is extremely important for encouraging self esteem of
all the group members. It is not We who decide for Them however well
intentioned the move may be it must be They and They alone to decide about
themselves.
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As the group survives and moves forward, several issues are taken up by them not
exactly sequentially, but in totality. End results have been almost identical. Each
member of a Self help Group has better income than a Non-SHG member from her
own community in the same village. Awareness about hygiene and nutrition status of
family members had improved amongst group members. Urge for literacy especially
for daughters and acceptance of family planning has short up; and the most important
of all self esteem of individual members and we can do it feeling has become a part
of the psyche.
There may be a few commas, but no full stop for a Self Help Group starting from a
nucleus of 10-12 women clustered around a theme which brought them together, it
develops into a micro social organism ever evolving and embracing a wider spectrum
of activities of their choice over a period of time.
The following characteristics are reflected in some of the best Self Help Groups
Group members should come together in homogenous groups (poverty being the
common link), not caste or religion.
Members must be able to save money with a purpose, not necessarily only surplus
funds, but make conscious decision to set aside some money.
Members should have full freedom to decide who should get a loan and for a purpose.
I he group decides to give emergency/ consumption loan so be it. This Power will
build their self esteem.
Give the group the freedom to decide if women do not fit into the group and decides
to leave.
The Government (DRDA) should build a good Member Information System (MIS),
their savings, their activities and other details.
Take program to scale to make it visible. Permit multiple groups in the same
habitation / village. Let the villagers decide how many groups they want(self
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targeting). Aggressive and sustained effort to take the program to every single poor
women in the state is the key for a comprehensive coverage.
Administration has to focus on mobilization and leave the rest to the group members.
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SAPAP aimed at covering a large number of the poorest of the poor in the most
poverty stricken pockets in the State through a process of social mobilization leading to
empowerment of the disadvantaged sections of the society, mainly concentrating on Scheduled
Caste (SC) and Scheduled Tribe (ST) families with rights based approach for accessing the
resources and programs otherwise also due for them.
Capacity Building of Self Help Movement
Capacity building program is key to sustainable development and growth of
SHGs. In the anxiety to document successes in the short-run to impress the External Funding
Agencies, there is a marked tendency to hand down unrelated tasks on SHGs resulting in the
malady of task overload. It is not the carrying capacity of the community that is under question,
but it is the capacity of the groups to sustain and maintain new responsibilities without
commensurate increase in their managerial abilities. While ignorance and illiteracy among
members or often posed as major handicaps in managing knowledge delivery efforts of SHPIs, it
must be admitted that Rural Poor do possess native wisdom and adequate numeracy skills,
enough to manage their lives and livelihoods.
9. Summing Up
SHGs have become an integral part of the rural life in Andhra Pradesh. Their linkages
with the banks have opened an altogether new dimension in the socio economic empowerment of
poor particularly of women. It is a win-win program for all those connected with it. Increased
amount of credit from financial institutions and other linkages from various Government
Departments may help in removal of poverty in a very effective way, but it is very essential that
the ownership of SHGs remain with SHGs themselves, so that they retain their members entered
and growth oriented character.
10. Keywords
DRDA- District Rural Development Agency
SHG- Self Help Group
DWCRA- Development of Women and Children in Rural Areas
NABARD- National Bank for Agriculture and Rural Development
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1. Introduction
India, being predominantly a rural country and having majority of its population residing
in rural areas, has a major responsibility towards its development. Significantly, rural India has
been characterised by poverty ridden, underdeveloped, hunger dominated, and lack of basic and
infrastructural facilities and so on. To develop the rural areas, the Indian state has been initiated a
number of development programmes since independence. Hence the state has initiated specific
Rural Development (RD) programmes with a major focus on poverty reduction and empowering
the rural population. These programmes have an integrated perspective towards improving the
quality of life of the rural people and ensuring equity and participation. These programmes
primarily focus on asset creation, capacity building of weaker sections, wage employment and
self employment and providing basic minimum services to the rural people.
However , the RD programmes are broadly categorised into four. They are
1.
2.
3.
4.
Though these programmes are already been discussed in the earlier units thoroughly, the
present unit is focusing on the assessment or evaluation of these RD programmes. Assessment is
required due to the existence of remaining social and economic gaps despite of various efforts
made by the government and to understand how far these programmes are able to help rural
population in their growth and development. In this unit, why and how the assessment of RD
programmes is carried out is been discussed. What happens to the RD programmes, implemented
plan after plan? Are the resources utilised effectively? Why are changes not visible? Why the
rural population are sceptic about government promises and government officials? Why are there
wider gap between rural and urban areas even with the presence of many development
programmes? To understand all these, meaningful evaluations of the RD programmes are
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required as well inevitable to find out the problems. Even evaluation/assessment can be a
compelling reason for government or its agency to try to know what happens to a programme,
once it is introduced in a particular socio-economic milieu.
The Ministry of RD regularly conducts evaluation studies of the existing RD and poverty
alleviation schemes through third party independent research organisations to assess the impact
and functioning of the schemes at grass root levels and also to take policy decision and corrective
measures in the programme guidelines. The intention behind assessment is to achieve the
programme objectives and maximize fund utilization. The monitoring tools are district wise data
management, periodical progress reports/returns, review by Union Minister, area officers
scheme, Utilization Certificate/Audit Reports, Performance Review Committee, National Level
Monitors, and Vigilance and Monitor Committee at state and district level. The Ministry of RD
adopted five pronged strategy comprising (i) creation of awareness about the scheme, (ii)
Peoples Partnership (iii) transparency, (iv) Accountability and (v) Strict vigilance and
monitoring of RD programmes to implement the scheme effectively.
2. Objectives
After reading this unit, you will be in a position to:
State the importance and need for assessment of Rural Development programmes;
Identify the agencies for the evaluation of various programmes for the
development of rural areas;
Discuss the methods adopted for the assessment of programmes; and
State the role of civil society organizations in the process of assessment.
3. Importance of Assessment
Assessment is a problem solving activity, through which individuals evaluates the
possible alternatives available to them and choosing one suitable to them and that appears to be
most appropriate. Over a period of time, assessment has grown from a tool of providing
information to a flexible management technique. Assessment provides more information than
just providing more information than just reporting the extent of a programmes achievement. A
careful assessment can also
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4. Objectives of Assessment
The objectives behind assessment or evaluation of RD programmes could be
Collection of information on physical and financial achievements of the schemes
meant for rural areas,
Facilitate the process of micro planning and decentralized development
administration,
Proper, meaningful and planned utilisation of limited resources in rural areas,
To find out felt-needs and priorities with focus on equity and social justice,
Designing and organizing training and research programmes with focus on
participatory approach to planning,
Contributing to the formulation of the policies, strategies and programmes of RD
by providing feedback.
5. Process of Assessment
The ultimate goal of an evaluation/assessment study is to locate/identify the causes that
lead to a particular level of outcome, and thereby provide policy recommendations to modify the
programme components and also to improve its implementations. In this regard the process of
assessing the causes of success or failure of RD programmes would require:
A prior knowledge and clear understanding of the programme;
A theoretical framework/model which would depict the programmes process;
and
A well suited analytical technique.
A prior knowledge and clear understanding of the RD programmes is a pre- requisite to
explain its outcome. In the absence of such an understanding, an attempt to identify the causes
will be a futile exercise. An important purpose of an evaluation is to help form theories,
concerning the operations and effects of the programme. This can be possible with an intimate
understanding of the programme under the study.
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or
communities.
problems/deficits/weaknesses
of
Assessment
the
is
required
different
to
identifying
programmes/
material
schemes
and
A "gap" analysis to identify the current skills, knowledge, and abilities of your
people, and the organizational and personal needs for HRD activities,
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or
checking
and
scrutiny
work
as
being
done
in
the
administrative
Ministries/Departments.
The PEO is primarily a field level organization under the overall charge of the Deputy
Chairman, Planning Commission. It has a three-tier structure with its Headquarters at Planning
Commission, New Delhi. The middle rung is represented by the Regional Evaluation Offices,
while the next links are the Field Units known as the Project Evaluation Offices. At the apex is
the Headquarters at New Delhi, which is responsible for evolving suitable methodologies
including statistical designs for various types of evaluation studies, organizing, execution and
monitoring of sample surveys, data processing, statistical analysis and interpretation of
qualitative and quantitative data generated by the field units and also for bringing out the
Evaluation Reports. The Organization is headed by the Adviser (Evaluation). At the
headquarters, a Joint Adviser, 5 Directors/Deputy Advisers and four Senior Research Officers
support the Adviser. The Directors/Deputy Advisers are responsible for designing and execution
of evaluation studies and act as Project Director.
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and
organizations
engaged
in
monitoring
and
evaluation
of
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Direct observation
Questionnaires
Interviews
Focus groups
Tests
Work samples
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Along with the above mentioned methods there are also other important methods to
assess the RD programmes. Among them Participatory Rural Appraisal (PRA), Rapid Rural
Appraisal (RRA) Participatory Learning and Action (PL&A) are most important. But among the
PRA, RRA and PL&A, the PRA is one of the widely accepted methods to assess the RD
programmes. PRA encourages the sharing and empowering of local people and facilitate the
learning process.
8.1. Origin and Evolution of PRA
A reversal of learning
Offsetting biases
Triangulating
Seeking out the poorer people and women, and learning their concerns and
Priorities
8.1.3. Reversals and Reality
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Methods/Tools
Sharing
Rapport Building
Social map
Resource map
Transect walk
Time line
Seasonal calendar
Preference ranking/scoring
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multidisciplinary. A core concept of RRA is that research should be carried out not by
individuals, but by a team comprised of members drawn from a variety of appropriate
disciplines. Such teams are intended to be comprised of some members with relevant technical
backgrounds and others with social science skills, including marketing research skills. In this
way, it is thought that the varying perspectives of RRA research team members will provide a
more balanced picture.
8.2.1. Techniques of RRA
Interview and question design techniques for individual, household and key
informant interviews
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Simultaneously, there are numbers of evaluation reports were prepared for the policy
changes and further guidance. These are evaluation study on National Project on Biogas
Development, evaluation study on Member of Parliament Local Area Development Scheme,
evaluation study on Functioning of Primary Health Centres (PHCs) Assisted under Social Safety
Net Programme, evaluation report on Khadi & Village Industries Programme, A Study of
Nature, Extent, Incidence and Impact of Domestic Violence Against Women in the States of
Andhra Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh and Maharashtra, Poverty eradication
and role of local institutions in comparative perspective : with focus on Kalahandi, Chittoor and
Bhojpur, Impact of the Tribal Sub-Plan implementation in improving the socio-economic
condition of the Tribal people with special focus on reduction of poverty level covering the states
of Assam and Tamil Nadu, Evaluation of varied approaches for enabling sustainable and
equitable access to drinking water in Uttaranchal, Study on evaluation Nehru Yuva Kendra
Sanghtan(NYKS) scheme in the states of Andhra Pradesh, Gujarat, Karnataka, Maharashtra and
Tamil Nadu, etc. are significant. To know about the assessment reports please refer to the
planning commissions various assessment reports.
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and the poor prefer urban slums to stagnant villages and the rural communities lack basic
facilities like schools and health centres. In a word, the policy making for RD has largely been
ineffective though, along with marketisation, technological change and politicization of the
masses, the policies for RD have opened up the rural communities which are now confronted
with new opportunities as well as risks. Even beyond that assessment of implementation of these
programmes has become a major problem due to rampant corruption and wide spread ignorance
of the rural population.
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of the services it provides. In India, ADB has been strengthening its engagement with CSOs at
the country strategy and programming level. ADB benefits from the experience, innovation, and
grassroots knowledge of CSOs that participate as advisors, consultants, monitors, evaluators, and
implementing agencies in ADB-assisted activities. Under grant projects funded by the Japan
Fund for Poverty Reduction, for example, more than 30 CSOs are implementing direct poverty
reduction interventions that are sustaining income and basic services in the drought- and disasterprone areas of Gujarat, and reducing water-related human poverty in slum and low income urban
areas of Rajasthan.
In recent years, ADB has consulted with a diverse range of CSOs including the Bank
Information Center, Praxis, Self-Employed Women's Association, Water Aid India, Humana
People to People India, Aga Khan Rural Support Programme, HOPE Foundation, Sulabh
International, The Energy and Resources Institute, All India Women's Congress, and Society for
Development Studies. As part of ADB's Karnataka Urban Infrastructure Development Project,
nearly 20 local NGOs have assisted with community based interventions on health, non formal
education, women's empowerment, community awareness, low-cost sanitation, legal literacy,
self-employment, and micro credit.
In coastal Karnataka, the Mysore Relief and Development Agency, Shri Kshethra
Dharamsthala Rural Development Project, and Livelihoods Advancement Business School have
been facilitating livelihood, sanitation, and community participation activities under the
Karnataka Urban Development and Coastal Environment Management Project. Nearly 2,500
self-help groups comprising mostly poor women have been formed under the project. In Kolkata,
10 CSOs are supporting the implementation of resettlement activities, slum improvement works,
and stakeholder consultations under the Kolkata Environment Improvement Project.
CSOs working in disaster-affected areas help ADB provide targeted and appropriate
interventions, such as those in Gujarat, where more than 80 local and national NGOs supported
the implementation of livelihood restoration and housing interventions under ADB's Gujarat
Earthquake Rehabilitation and Reconstruction Project. And, in Kerala and Tamil Nadu, the
Society for Assistance to Fisherwomen, Dhan Foundation, and Agency for Development of
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Aquaculture, among others, has participated in formulating livelihood restoration strategies and
interventions under ADB's Tsunami Emergency Assistance Project.
The Indian Institute of Rural Management is implementing the community awareness and
participation program under the ADB financed Rajasthan Urban Infrastructure Development
Project in six project cities by fostering greater awareness and involvement of beneficiary
communities in project implementation. Two other CSOs, the Indian Institute for Rural
Development and the Community Economics and Development Consultants Society, are
facilitating the implementation of the resettlement plan for the Bisalpur Water Supply Project,
monitoring the delivery of entitlements, conducting a baseline survey of affected persons, and
conducting public consultations.
CSOs played a large role in the Participatory Poverty Assessments (PPAs) carried out in
Gujarat, Madhya Pradesh, and Kerala in 2001; and in Assam Chhattisgarh, Sikkim, and West
Bengal in 2005. The PPAs identified priorities for development action emerging from in-depth
analyses involving those in poverty and the disadvantaged. Significantly, MKSS (Mazdoor Kisan
Shakti Sangathan), PUCL, Right to Food Campaign, Social Work and Research Centre in
Rajasthan, CHETNA in Ahmedabad, Aalochana-Maharastra, PRIA-New Delhi, MVF and
NAANDI Foundation in Andhra Pradesh and so on.
level.
The MKSS
held Jan Sunvais, or public hearings, at which official records of state development
projects were exposed to the scrutiny of intended beneficiaries. Shocking revelations of corruptio
n and misuse of funds followed. Such revelations embarrassed
officials and led to apologies, investigations and in some cases the return of stolen public funds.
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Regarding NREGA, a number of policy changes have been brought out due to its
continuous assessment by MKSS. Among them few changes are mentioned below.
The Central government issued an order for the appointment of an Ombudsman in
every district for grievance redressal (attached). And, news of a protracted but
successful struggle for delayed wage payment from Gujarat.
Rashtriya Rojgar Khatri Kayda Hethal-na Kamdaro-nu Union-Gujarat (The Union of
Workers Under the National Rural Employment Guarantee Act, Gujarat) which has
been actively striving towards implementation of the programme and the rules
therein, had received complaints of non-payment of due wages to 2,376
workers/persons from
panchayats of Dahod district. The due amount involved was Rs.34, 24,856 which was
not paid for the works done on construction/rejuvenation of community wells in the
villages of these panchayats. This was despite the fact that any such payments have to
be made within 15 days of work done!
The Workers Union mobilized people from the concerned villages and had taken out a
massive rally on 20th January 2009 at Fatepura and a Memorandum of Demand concerning the
non-payment of peoples rightful due wages, with details of the villages and panchayats, number
of persons worked and eligible for legitimate payments, and the amounts due to them, and
presented it to the Taluka Development Officer (TDO) to take urgent steps to concede the
demands. However, the TDOs promise to do so remained false inspite of repeated
representations by the Union and the workers, as payments were affected only for a period of 2
to 3 weeks of works done. Gujarat: 2376 workers receive Rs. 34 lakhs after months of struggle.
On Mid-Day Meals Scheme (MDMS), with the intervention of the PUCL, the Supreme
Court of India directed the State Governments/ Union Territories to implement the Mid-Day
Meal Scheme by providing every child in every government and government assisted primary
schools with a prepared mid day meal with a minimum content of 300 calories and 8-12 grams of
protein each day of school for a minimum of 200 days. Now MDMS is implemented throughout
the country covering all the children attending government primary schools.
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2.
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3.
What are the problems of rural India and how to come across it?
4.
What are the three different techniques to understand the rural problems?
5.
What is PRA?
6.
Name the major NGOs working for the empowerment of rural people in India?
7.
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