Education Key to Solving Rural Problems

Embed Doc
Copy Link
Readcast
Collections

CommentGo Back

Download

RURAL PROBLEM IN INDIA

INTRODUCTION

About 75% of the Indian population lives in rural areas and about 80% of thispopulation is dependent on agriculture for its livelihood. Agriculture accounts forabout 37% of the national income. The development of the rural areas and of agriculture and its allied activities thus becomes vital for the rapid development of the economy as a whole.In this regard, India has succeeded in developing one of thelargest rural banking systems in the world. Various regulatory measures have beentaken enabling the banking system to play an important role in the economicdevelopment of the rural areas. The two most prominent measures are ruralcommercial bank branch expansion, thus moving from class banking to mass bankingand secondly, priority sector lending and the formulation of specific developmentprogrammes and action plans to facilitate credit flow to the rural sectors. Despitethese measures, as per the Debt and Investment Survey, Govt. of India (1992) about36% of the rural households are found to be outside the fold of institutional credit.

AGRICULTURAL PRODUCTIVITY

Even though India occupies the first or second position in the world in several cropsin terms of area and production, it's rank in terms of productivity per hectare in theworld is 52 for rice, 38 for wheat and much low in several other crops. Theproductivity of some crops is not only low but also remained stagnant over the years. The yield gap needs to be bridged through an integrated package of technology andagricultural policies to reap the untapped production potential, particularly, in rain-fed and other low productivity areas.

CAUSES FOR BACKWARDNESS IN VILLAGES

1. Zamindari System, the legacy of the British RuleIndia was under British rule for 200 years. British policies were aimed in revenuecollection and not rural development. They introduced the zamindari system. Thezamindars were deemed the owners of all land and they collected as much revenueas they could from the peasants. The system left the peasants very poor and thezamindars did very little to improve the conditions of the villages. After the countryattained independence this system was abolished, but the conditions of the peasantsis yet to transform completely.2. The Bonded Labour SystemIt is equivalent to near slavery. Bonded labour is an indebted agricultural worker, whohad borrowed from the money lender at usurious rate of interest and had to work inhis farm for low wages. The system was used to permanently enslave the worker, asthe worker was only able to repay a part of interest and the loan with compoundedresidual interest went on swelling. The agricultural labour can free himself eventuallyonly by giving his son in bondage as a substitute. Under the 20-point economic

programme, the Government India under Prime Minister Mrs.Indira Gandhi abolishedbonded labour system and brought legislation to this effect in 1975. Despite thelegislation the system is known to persist here and there in select areas.3. Other contributory reasons are the total lack of agricultural development underforeign rule, poor communication, roads and other infrastructure development invillages, lack of education and health facilities, and the destruction of the thrivingIndian cottage industries on account of competition from the cheap machine madegoods imported under British rule

PROGRESS MADE AFTER THE COUNTRY ATTAINED INDEPENDENCE

1. After Independence the Country adopted planned development. The very first fiveyear plan laid stress on agricultural development. It took a number of measures tobring more land under irrigation. Major irrigation Dams like Bakra Nangal, Hirakud,Nagarjunasagar, Tungabhadra were constructed which generated power forindustrialisation of the country and water for irrigation. A number canals were buildto distribute stored water over an extensive area. The Indian farmer, as a result, isnow not exclusive depending on the monsoon.2. Intensive cultivation of land is made possible through farm mechanisation. Tractorsare being produced in the country and these are available to the farmerseverywhere. Farmers are also using threshing machines, deep boring and irrigationpumps. They get supplies of high yielding improved seeds, fertilisers and otherinputs. To enable them to purchase such inputs the rural credit system has beeninvigorated with Cooperatives, Regional Rural Banks, and Rural Branches of Commercial Banks. The recent boon to the poor Indian peasant is the micro financesystem and Self Help Groups that have rendered financial support within the easyreach of all.3. Land Reform legislation introduced in the country after independence include theabolition of the zamindari system, the abolition of bonded labour system, land ceilinglegislation etc.. Legislation was also introduced to relieve rural indebtedness and themoney lender could no longer legally collect more than reasonable interest.Untouchability was abolished and special legislation for the upliftment of scheduledcases and scheduled tribes were enacted.4. Community Development Programmes, Integrated Rural Development Programme,bringing local self-government to the roots of the village through introduction of panchayat raj system ushered a new era of rural development. Development of public health care system, schemes undertaken for promoting literacy and adulteducation in the country, programmes for development of rural industries are otherdevelopment programmes that have received the thrust of the Government'sdevelopment approach.

FUTURE PERSPECTIVES

Agriculture, with its large dependent population has to thrive and flourish, in order tosecure rural prosperity. To ensure orderly and vigorous growth of agriculture policyand structural issues need to be addressed quickly. Some of the important issues thatneed to be addressed are -1. Improving profitability of agriculture, through yield improvements, diversificationand reform of agricultural marketing.2. Strengthening backward linkages and expanding irrigation coverage.3. Providing forward linkages especially for post harvest management, processing,transport, storage and market infrastructure.4. Securing a stable long term policy on agricultural commodities trade, including therole of private sector.5. Encouraging emergence of a market mechanism for agricultural commodities suchas a commodities exchange.6. Streamlining the cooperative credit structure for facilitating hassle free flow of credit.7. Implementing watershed development projects in the rain-fed and dry-land areas.Rural banking faces twin challengesBanking in rural India is faced with the twin challenges of regulation and distribution.Regulation with respect to banking has been designed for delivery in urban India anddistribution required more manpower to be deployed in rural areas. Initiatives likecheque transaction — where the electronic image and not the actual cheque is sent— have in mind the urban customer, he said. "About 500-600 million people in Indiastill do not have bank accounts. For the rural segment, one needs to design no-frillsproducts and deliver hard core value".The other handicap was that while Rs 1-crorebusiness in microfinance required 30 people in terms of manpower, the same volumeof business in other portfolios required only one person. Also, contract farming andsupply chain integration has not gone the way they should have. Power,telecommunications, banking and transportation had reduced the urban-rural divide,he said. Besides traditional banking services, people in the rural and semi-urbanareas are expressing interest in liability and investment products. He said, "RuralIndia is fast transforming a nation of savers into a nation of investors".

CONCLUSION

No doubt, villages are in a state of neglect and under-development, withimpoverished people, as result of past legacies and defects in our planning processand investment pattern. But the potential in rural India is immense. What if everyvillage in the country is provided with basic amenities, like drinking water, electricity,health care, educational transport, communication and other facilities, with only asmaller population of the village engaged in agriculture and the remaining in other

of 00

Leave a Comment