Rural Economic Environment

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Rural Economic Environment Policy
Trend Analysis of Five Year Plans
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Rural development in India

• In ancient times, the rural people in India were
  organized into self-sufficient, hard working,
  cooperative, happy village republics.
• Village system utterly destroyed during the
  British regime.
• Independent India has pledged to establish a
  socialistic pattern of society through planned
  development
• Rural development, therefore occupies priority in
  the agenda for rural development in India for
  more reasons than one.

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POWERLESS NESS
ISOLATION
VULNERABI LITY
POVERTY
PHYSICAL WEAKNESS
Deprivation Trap
Source Rural Development by Robert Chambers
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Historical overview of planning
year Event
1927 Time of rapid changes outside India. First time economic planning at the national level had started in the USSR which created a strong impression on Nehru at the time of his first visit to Moscow
1929 The all India congress committee passed a resolution stating that in order to remove the poverty and misery of the land to ameliorate the conditions of the masses, it is essential to make revolutionary changes in the present economic and social structure of the society and to improve gross inequalities. This was not acceptance of socialism but indicated an approval of socialistic approach
1938 On the initiative of congress president, a conference of ministers of industries was convened in Delhi which was of the opinion that the problem of poverty and unemployment, of national defence and the economic regeneration cannot be solved without industrialization.
1938 Congress appointed a national planning committee with Pt. Jawaharlal Nehru as its chairman. The committee laid down the objectives of planning.
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Meanwhile the leading industrialist of India produced a plan, called the Bombay plan. India also had become plan minded. Meanwhile the leading industrialist of India produced a plan, called the Bombay plan. India also had become plan minded.
1950 The planning commission was set up by a resolution of the government of India, to draw up a concrete plan.
1951-56 First five year plan was formulated. However the final document of this plan was published in December 1952.
1956-61 Second five year plan
1961-66 Third five year plan.
1966-69 Three annual plans.
1969-1974 Fourth five year plan.
1974-1979 Janata govt. declared fifth five year plan.
1978 Janata government ended the fifth five year plan one year earlier to its term i.e. only within four year span and introduced a rolling plan.
1980-85 Sixth plan was formed
1985-1990 Seventh five year plan started
1990-1992 Two annual plans were formed.
1992-1997 Eight five year plan started.
1997-2002 Ninth five year plan was operational during this period.
2002-2007 The tenth plan became operational
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Agriculture

• Ist Plan to Vth Plan
• Share of agriculture and allied sectors varied
  from 11.3 to 14.9
• VI th Plan to Xth Plan
• Share of agriculture and allied sectors varied
  between 4.9 per cent and 5.2 per cent

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First Five Year Plan (1951-56)

• Overall development, particularly of rural
  communities. For this purpose, the Community
  Development Programme (CDP) was launched.
• Second Five Year Plan (1956-61)
• Increase of 25 in the national income
• Expansion of employment opportunities
• Reduction in inequality.
• Third Five Year Plan (1961-66)
• Increase the national income rapidly achieve
  self-sufficiency in food grains and increase
  agricultural production

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Annual Plans (1966-69)

• Intensive Agricultural District Programme.
• This package programme brought the so called
  Green Revolution.
• Fourth Five Year Plan (1969-74)
• accelerating the tempo of development
• reducing fluctuations in agricultural production
• safeguarding uncertainties of foreign aids.
• Fifth Five Year Plan (1974-79)
• This plan launched a national programme of
  minimum needs, for providing a minimum level of
  social consumption for different areas and
  sections of the community based on the
  predetermined criteria of uniformity and equality

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Sixth Five Year Plan (1980-85)

• Removal of Poverty
• Strengthening infrastructure for both agriculture
  and industry
• Seventh Five Year Plan (1985-90)
• The basic tenets of this plan were growth,
  modernisation, self-reliance and social justice.
• Annual Plans (1990-92)
• Maximization of employment and
• Social transformation.
• Eighth Five Year Plan (1992-97)
• Structural adjustment policies were important.
• Several liberalization measures were announced
• Private sector was assigned important role in the
  development

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Ninth Five Year Plan (1997-2002)

• Sustainable development of the economy and
  society.
• Controlling the growth rate of population,
  empowerment of women and socially disadvantaged
  groups.
• Tenth Five Year Plan (2002-07)
• Reduction of poverty ratio by 5 per cent points
  by 2007.
• Providing gainful employment to the labour force
• Eleventh Five Year Plan (2007-12)
• The United Progressive Alliance government issued
  a paper in the eleventh plan titled "Towards
  faster and more inclusive growth."

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Impact Assessment of PMGSY In Orissa
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Introduction

• Started in 2000.
• 100 centrally sponsored scheme.
• Providing all India connectivity to all the
  villages by 2009 to all habitations with a
  population of 1000 or more in the plains and of
  500 or more in the hilly, desert and tribal
  areas.
• Educational, economic, and social backwardness.
• This further led to poor political participation,
  
• Failure to avail health care facilities coupled
  up with lack of awareness, access to basic
  utility services and
• Miserable situation and poverty in those areas.

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Impact Assessment

• MORD listed out five districts-
• -Angul
• -Balasore
• -Puri
• -Sambalpur
• -Rayagada

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• To assess the status of PMGSY in the state and
  find out whether or not there has been any
  perceptible change in the quality of life of the
  people due to the construction of road under
  PMGSY
• To find out to what extent the selection of roads
  have been correctly done and to what extent
  people's participation/involvement have been
  guaranteed at all stages of the road construction
  (from selection till the completion of the road
  construction).
• To assess and find out any operational lag in the
  road selection construction process.
• To suggest on the basis of the key findings of
  the assessment, risk factors involved in the
  process of construction of PMGSY roads and some
  possible strategies to ensure timely completion
  of the roads so as to meet the set objectives
  underlying PMGSY.

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Profile of the Area and People under Study

• Demographic Profile
• Workforce Participation
• House Type
• Area under cultivation
• Access to Electricity
• Availability to educational facility
• Availability of Health facility
• Availability of credit cooperatives
• Access to administrative facilities
• Availability of communication facility

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Impact on Agricultural Production
Indicators Overall
Use of Chemical Fertilizers ( increase in average quantity of chemical fertilizer use in major crops) 10.90
Increase in Pesticide use 20.00
Change in Cropping Pattern (from food crop to cash crop) 5.43
Percentage increase in number of improved farm implements owned by farmers 31.31
Percentage change in quantum of milk sold outside the village 21.28
Increase in Farm Employment opportunities due to increase in cropping intensity ( increase in average days of employment in a year) 11.69
Increase in employment opportunities outside the village due to greater mobility 12.43
Increased accessibility to market for selling out the agricultural products Increased
Reduction of transport cost of fertilizers 53.00
Reduction of distance of the agro input shops from the village in Kms 0.39
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Impact on Employment
Indicators Overall
Average days of engagement in a year in agricultural wage employment inside the village 86.00
Increased employment opportunities in agricultural sector inside the village ( increase in average days of employment in a year) 11.69
Average days of engagement in a year in non-agricultural wage employment inside the village 99.00
Increased employment opportunities in non-agricultural sector inside the village ( increase in average days of employment in a year) 16.47
Average days of engagement in a year in agricultural wage employment outside the village 86.00
Increased employment opportunities in agricultural sector outside the village ( increase in average days of employment in a year) 10.26
Average days of engagement in a year in non-agricultural wage employment outside the village 131.00
Increased employment opportunities in non-agricultural sector outside the village ( increase in average days of employment in a year) 13.91
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Impact on Industry
Indicators OVERALL
Type of Industries located in around the village before the road Pottery Unit, Rice Hauler (at all places) Brick Unit Bidi Unit in Angul.
Type of industries located in around the village after the road Pottery Unit, Rice Hauler (at all places) Brick Unit Bidi Unit in Angul.
Percentage of increase in the industries after the road Nil
Percentage of increase in the employment opportunities after the road About 5-10 percent on an average
Percentage of profit in the income level in the industries in the post road scenario Marginal except brick unit where about 12 percent increase in brick cost.
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Impact on Health
Indicators Overall
Availability of Health care facilities in study villages ( increase in no of villages reporting availability of Govt Hospitals/Dispensaries Pvt. Clinics 20.00
Percentage increase in number of delivery cases in hospital 55.00
Percentage increase in number of persons visiting hospital in case of suffering from diseases 42.86
Percentage decline in number of malaria cases reported in the village 16.00
Percentage increase in immunization of children 9.87
Percentage decline in neo natal deaths 20.00
Visit of Health Workers/ANM to the study village ( increase in average no of visits/month/village 59.88
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Impact on Education
Indicators Overall
Percentage increase in attendance of children in middle schools 4.98
Percentage increase in attendance of children in high schools 6.58
Percentage increase in attendance of children in colleges 6.06
Percentage increase in middle school pass out children taking admission in high school 10.64
Percentage increase in high school pass out children taking admission in colleges 15.91
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Impact on Social Aspects

• There has been considerable increase in the
  number of visits by the health workers and
  Village Level Worker (VLW) to the villages after
  the construction of the roads.
• Also, there is improvement in Government
  Programs/Services due to the construction of road
  under PMGSY. Example - increase in the health
  camps.
• There has been an increase in the number of
  agricultural demonstrations in the post road
  period.

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Impact on Transport Facilities Accessibility

• All the villages (18) located in the 3 districts
  are able to be commuted throughout the year after
  the construction of the roads.

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Impact on Communication
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Suggestions

• Implement the road construction activities
  through the NGOs, R D Department being the
  nodal agency which will ensure employment
  opportunity to the local people.
• No provision of funds for the maintenance of the
  roads constructed under PMGSY and in order to
  ensure their maintenance, to make budgetary
  provision place funds either with the Zila
  Parishad or with the Panchayats for maintenance
  of PMGSY roads.
• Wrong selection of roads.
• These are still early days of PMGSY roads, since
  only very small numbers of such roads have been
  completed and those which are completed are only
  recently constructed.

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Rapid Framework Model

• Political Context
• The key policy actors are bureaucrats, planning
  commission members- reputed persons in the
  society.
• There is certainly a demand for research and new
  ideas among policymakers because the old ideas
  have run out of steam. We need fresh new ideas to
  breathe new life into it.
• Source of resistance is because of the weak
  linkage between the stakeholders policymakers
• Policy making is a long term process involving
  people all walks of life including all
  stakeholders
• Perhaps it provides immense opportunity to toy
  with new ideas and launch it on pilot basis
  before full fledge launch

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Rapid Framework Model

• Evidence
• The current theory is also as a result of
  remarkable difference between announcement,
  disbursal of funds and execution of the schemes.
• All the rural development schemes were very
  promising. They could have brought sea changes in
  the rural landscapes but unfortunately it did not
  happen as planned.
• The five year plans were mostly focused on short
  term approach and focused on poverty elimination
  through income enhancement through temporary
  measures.
• Several schemes launched by the government
  resulted in the remarkable progress of the areas
  in isolated instances.
• A combination of Top-down and Bottom up approach
  should be followed to satisfy the policy makers.

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Rapid Framework Model

• Links
• Key stakeholders Farmers, landless labourers,
  people below poverty line, artisans, policy
  makers, central state government,
  administrative mechanism, institutions, planning
  commission etc.
• Links networks Right to Information Act,
  Delivery mechanism through official channels,
  farmers association, government schemes,
  institutional mechanisms, state district
  administration.
• Influence of Intermediaries Yes, they all are
  influential in their own ways. The rural people
  are beneficiary to these schemes.

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Rapid Framework Model

• External Influences
• International actors World Bank, International
  Monetary Funds, Asian Development Banks, Ford
  Foundation, External Donor agencies, Grants from
  the develop world.
• These international actors have great influence
  on the policy making process and very often they
  modify these policies to suit them.
• Aid Priorities Poverty elimination, improvement
  in infrastructure facilities, education, rural
  water supply sanitation, health, hygiene
  family welfare etc.
• Research Priority The focus has been shifting in
  this case from the philanthropic activity to
  rights based approach. They loans are generally
  disbursed in the areas which produces sustainable
  livelihood opportunity and with repayment
  capacity within a specified period of time.

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Conclusions

• FYP is a grand plan to achieve faster growth
  overall development of the people.
• It involves best brain and expertise involving
  all the key stakeholders related to the given
  field.
• The entire planning process- conceptualization,
  allocation of funds and implementation of the
  schemes involve great deal of expertise,
  dedication and innovation to make it fool proof
  to reach the maximum target beneficiary in order
  to achieve the defined objective.

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Conclusions

• The FYP has contributed to the overall
  development of the society and in the same way
  rural development planning has touched the lives
  of millions of people living in rural areas.
• Despite all criticism about the FYP, we found
  that there is nothing wrong with the planning
  process, but there are some issues with the
  implementation of these plans.
• Perhaps FYP is an unique initiative of its own
  kind in the world in order to achieve the desired
  goals by the government of India.

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Thank You!

• Ajai Kumar Tiwari Roll No.-06
• Dhirendra Pratap Singh Roll No.-13
• Nishi Kalpana Pandey Roll No.-26
• Pankaj Sharma Roll No.-27
• Rohit Upendra Arya Roll No.-40
• Subhodip Ganguli Roll No.-53
• Sweta Sharma Roll No.-54