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Downloaded From IP - 22.214.171.124 on dated 30-Aug-2010
Vilasini G. Patkar,
R.J. College, Ghatkopar (W), Mumbai
Members Copy, Not for Commercial Sale
Sanjay S. Kaptan,
Dept of Commerce and Research Centre, University of Pune
Rural reconstruction is an important task before the economic planners of India. The author takes a stock of measures adopted by the governments through planned policies and strategies and suggests measures to be undertaken for overcoming the dismal scenario of a so called developing economy. Rural Bharat has to be brought at par with Urban India. In achieving this goal the Corporate, the NGOs and the educated masses should function as ‘Social Change Agents’ to transform the vast rural expanse into modern developed India. Only then we can experience a galloping Indian economy. 1 Introduction Gandhiji had said ‘India lives in Villages’ and this is true even dotay. The idea of village self sufficiency has received great deal of attention from social scientists and plociy makers over the period of years. The reason for this may be political, academic or even human considerations. In fact, the problem of improving the lot of our population that lives in rural areas has assumed greater significance because of its explosive nature which is threatening our very existence. The present approach is of inclusive growth strategy which implies that we cannot visulize development of our economy unless we incorporate the
Table No. 26.1% of our population lived the below poverty line.117. .000 and above Total No.14267 1.8 0. Hence. of all types.IndianJournals.25.26 Journal of Commerce and Management Thought / January 2010 development of our villages and living conditions of the poorest of poor people residing in those villages under the broad strategy of globalization and economic development.net According to 2001 census.0 19. They have been subjected to economic deprivation. constituting of 6. of Villages 1.2% reside in the rural areas.com Source : Source www.204.758 69.38. Development of rural areas has been one of the concerns in the various Five Years Plans.3 25.365 villages..400 1. India has a population of 1029 millions.135 11.5 100.999 5000-9.999 2000-4. of which 741 millions i.7 10.999 10.00 500.e. The percentage / number of people in rural areas living below the poverty line were much higher.618 3.55.999 1000-1.123 1.9 24. discrimination and oppression of the worst kind. 1 : Distribution of Villages in India (2001) Population Less than 200 200-499 Downloaded From IP . Not for Commercial Sale www.censusindia.71. In 1990-00.230 on dated 30-Aug-2010 No. The gains of various programmes primarily occurred to the upper strata of the rural society.8 1.59. with a concentrated focus on the poor and needy people. 72. of Villages Members Copy.064 638365 % of Total Village 17. in the recent years the government is committed to the philosophy of social justice and socio-economic development of the rural areas.
9 23.3 11. Sanjay S. power shortage. .2 12. increase in crimes. Not for Commercial Sale www.2% of the total population which decreased to 74.net 89.0 86. land under agriculture has diminished. Patkar.8 10.117.39% in 1991 and 72.2 89.78 The census reveals that in 1901. the rural population of India was 89.0 80.22 10. The agricultural labor continued to be exploited and the gap between the rich and poor further widened.censusindia.22% in the year 2001.9 17.4 Source : Source www.7 285. it has adversely affected the poor very hard.7 27.0 13. In 2010 urban population is projected to rise at 42%.230 on dated 30-Aug-2010 Members Copy.com 1901 213 26 1911 226 26 1921 223 28 1931 246 33 1941 275 44 1951 299 62 1961 360 79 1971 439 109 1981 524 159 1991 629 218 2001* 741.7 74.3 18.2 percent to 71.7 82.0 19. Such rural migration in on account of lack of employment opportunities in rural areas causing rise in urban problems like slums. To combat this phenomenon of rural people migrating to urban areas. over crowding.1 82. youth unrest. Although the ratio of rural population has declined from 89. Kaptan / The Indian Economy 27 Table No.7 88.2 percent during the century. affecting the forests and exodus to urban areas.1 76. etc.3 25.Vilasini G. This decline shows a high rate of rural exodus.IndianJournals.204. On the other hand the density of population has increased. 2 : Rural and Urban Population : 1901-2001 Census Year Population (Million) Rural Urban Percentage of Total Population Rural Urban Downloaded From IP . quick action plans are required to be undertaken for speedy rural development and generation of ample opportunities of livelihood at the local village level itself.3 72.71.8 88. child labor.
it has design in which were reflected the basic values of Indian civilization.IndianJournals. in reality. having a social and cultural distribution of its own in contrast to the urban/city life in India. “a village is an aggregate of several families sharing the same habitation. homely. Rural reconstruction has become a very important issue before the Economic Planners today. It had received the attention of people like Gandhiji. However. less number of households who are closely knit individuals and families. the term rural development consists of two words. who are religious and ethical in their outlook and are fairly happy with their limited resources and consumption because they believe in simple living. Downloaded From IP . The terms ‘village’ and ‘rural’ are synonymous. Not for Commercial Sale www. Rural is differentiated from the urban in terms of geographical physical location (interior neglected areas).204. yet they are largely self-sufficient and house a contented community. In the simplest sense.rural implying underdeveloped and urban characterizing developed economy. who follow traditional lifestyles/practices.‘that area which is not urban’ In literal terms rural means rustic. Any area classified as village as per the revenue records of the state irrespective of population is referred to as rural. our villages are not economically and socially self-sufficient because they are under developed and gripped by poverty as their resources are not optimally utilized.. Rural refers to the under developed areas of state which are not either cities or districts or town places. ‘rural’ and ‘development’. The problem of rural reconstruction however was concertized by Gandhiji through the khadi movement.” Villages symbolize abundance of natural resources. The village ‘was not merely a place where people lived. The terms ‘rural’ and ‘village’ are synonymous.’ (Beteille 1980-108)i The Indian economy is dichotomous in nature. Rural is defined by the Census of India as . The villages have been a sine qua non of rich cultural heritage and an embodiment of traditional Indian Society. which are largely unexploited. The vllages characterize authentic native life.71.117. having rural and urban facets . Tagore and many others much before independence. viz. According to the Vedic definition.28 Journal of Commerce and Management Thought / January 2010 2 Analysis Rural development as a concept is not a new one.230 on dated 30-Aug-2010 Members Copy.com . unpolished countrymen or a villager who is unaware of advancements in the outside world.
The concentration of development in the urban area has given vent to a wider regional disparity. The new economic policy of 1991 also emphasized on the funding for rural development. Kaptan / The Indian Economy 29 India is a land of 638365 villages accommodating 72. This huge area of land and people are far lagging behind in terms of overall progress.considering the Government efforts through schemes and fund allocations since independence. The estimated expenditure on health and family welfare is Rs. through planned strategies and policies to improve the quality of life of rural citizens. This is a positive trend that will facilitate rapid rural development. free electricity.334 crores and on subsidy for fertilizers. 18. researchers. Integrated Rural Development Programme (IRDP). The planned allocation for rural development in 2005-06 budget is Rs. financing facilities through banks and financial institutions to farmers. The main emphasis of planning was ‘growth and development with equity’. politicians and industrialists. good quality seeds (HYV).IndianJournals.280 crores. social activists. subsides on agricultural implements and inputs. Rural India is predominantly agrarian in nature. Not for Commercial Sale www. economists. were implemented over the years to increase the agricultural production so as to provide adequate food.5% of its GDP on the social sector.2% of our population. employment and income to rural people. The development is visible in the urban areas. Measures such as improved irrigational facilities. The urban-rural divide has become a cause of concern for the academician. The Indian government spends around 6% to 7.Vilasini G. In recent years the government expenditure on the social sector has been rising. were used to increase Downloaded From IP .com .71. pesticides.204. the estimate is Rs. Various progressive and scientific measures in consultancy with research institutes like CSIR. which includes expenditure on social services and rural development. the rural areas have not significantly improved . Planned agricultural development was the thrust area for developmental programmes.230 on dated 30-Aug-2010 Members Copy. growth and development. 16. However. The three basic problems faced by the people living in the rural areas are : ● Backwardness ● Widespread unemployment and ● Massive poverty Steady and progressive measures were adopted by the government of India over the period of years.117. TISS. Patkar. BARC. TIFR. 10. fertilizers. technological appliances for farming. Sanjay S. etc. a few sectors and only in certain regions of the country.254 crores.
it is a clear indication of disguised unemployment. it is found that the growth in agricultural production was not phenomenal. in the year 1999-2000. This means agriculture. as many as 260 million people in India lived below the poverty line-this is an unhealthy situation.11% of rural people were below the poverty line. One of the reasons being. A high percentage of rural people are below the poverty line as compared to the urban population. Similarly. i. 93% in Hong Kong. India has a very low literacy rate of 58% in 1999. which is not the main income-generating source. the importance of agriculture had further declined to 21%. In terms of employment scenario. 10. In other words.5% of them were women). 25. provides maximum employment. Therefore. the relative importance of agriculture in total economy has declined considerably from 56% to 29% during 1950-51 to 199596. In 1993-94. Unless agricultural growth is improved (the growth rate of agriculture in the last 10 years has been less than 1. Moreover. A poor country like India cannot afford to have so many million people unemployed. trade and transport had increased from 15% to 29% and 11% to 20% respectively. the higher rate of growth in other sectors of the economy might further widen the already wide ruralurban disparity. the Downloaded From IP . the rate of unemployment was 2. Naturally.117.5 million persons were unemployed in India. It reflects on our poverty.71. Despite the priority accorded to education in several plans.204. However. Another glaring feature of underdevelopment is illiteracy.9% of urban population and 26. the resources have to be diverted and invested for industrial and trade-transport development in rural areas. In the year 2003-04. 21.8%.60% of the urban masses and 32.IndianJournals.e. Industry and Services may also not grow on expected lines without agricultural growth. to make the rural economy prosperous.5% p. As per the estimates of 1990-2000. such a low rate of agricultural progress cannot ensure rural prosperity. During the same period the importance of industry.a. Agriculture constituted 59% and industry 16% of the total employment in India. in the year 2000. At the same time statistical information reveals that in the year 2000.. whereas it was 98% in South Korea. 365.9 million persons were employed in India (26.93% of rural population were below the poverty line. Not for Commercial Sale www. 95% in thailand and 83% in China. Compared with other developing countries. prompt measures have to be devised to improve employment generation in order to overcome poverty.com .230 on dated 30-Aug-2010 Members Copy.30 Journal of Commerce and Management Thought / January 2010 land productivity.) one cannot achieve annual GDP growth of 7% and reduction in poverty. Hence.
37. Not for Commercial Sale www. Naturally. 18. nearly 50% of the children are under nourished and about 88% of the pregnant women suffer from anemia. Poverty induces children to work rather than seek education.1 and female is 33. Female literacy is even lower.230 on dated 30-Aug-2010 Members Copy.4 million in a population over 1 billion.337 crores and for rural development the allocation is Rs. Unless there is graceful fund allocation. how can we expect this state of affairs to change? Moreover. followed by stagnancy in 2000-01.17% in 1998-99. 7% for tribal development. The 2004 budget appropriate a 4% provision for education and the allocation for education in 2005-06 budgets is Rs. what progress can we expect? This shameful scenario is due to a very low budget expenditure of the governemt on education. departments that received higher allocations in the year 2004-05.204. 10. Sanjay S. 9% for social justice. unless the concerned department is fully equipped to utilize the funds properly. the expenditure on public health and water supply has been quite less. around 54%.9 and child labor constituted 2. Such a mismatch of allocations and utilization cannot generate the desired results of development. mere allocation of funds in the budget is not sufficient. 4% for family welfare and 21% for all urban employment and poverty alleviation remained unutilized. The reseasons being ● Young population of nearly 36% was below 15 years of age .71. For example. India had labor force of 376.Vilasini G. Similarly.com . which is obviously low.280 crores as estimated expenditure on health and family welfare.06% and GDP in 1990-91 to 3% in 1998-99 and further to 2. with such a literacy level. 18. more than 15 lakh children die each year before they reach the age of 1 year.117. The combined expenditure (planned and non planned) of central and state government on education. Another distinguished feature is the character of employment and labor market in India. Female literacy in rural areas is only 47%. The 2005-06 budget sets aside Rs. In the year 2000.98% in 2000-01. Kaptan / The Indian Economy 31 average rate of literacy at the national level is still 65%.15% of the GDP in 1990-91.IndianJournals.334 crores. Patkar. sports and youth welfare declined from 3. It was 1. did not actually spend as per the allocations17% in case of land resources. Downloaded From IP .3% of total labor force.6%) of which male is 82. It is estimate that more than 350 million people have no access to safe drinking water. ● Labor force participation rate of adult population is also low (58. more than 700 million people do not have access to sanitation. The implied worker-population is 0. which marginally increased to 1.
Rural transformation from social. Some of the measures that can be immediately undertaken would be : ● Education to small and marginal farmers. need based educational programmes for knowledge. Not for Commercial Sale www.32 ● Journal of Commerce and Management Thought / January 2010 Labor force is largely low skilled . an average labor force participant had only 3. Micro Financing Option.204.. Chambers of Commerce and Industries (CCI). particularly. etc. Such a vision and broad based planned action can alone Downloaded From IP . cultural. The government machinery. Basic infrastructure needs of villages such as roads. 3 Measures All these unique dimensions of Rural India necessitate drastic measures to be undertaken for overcoming this dismal picture of a so-called developing economy. cooperative farming and better marketing practices in all the remote villages. the Panchayat Raj system has not delivered the expected success in uplifting the rural community. help of organizations like Khadi and Village Industries Commission (KVIC). ● Development of agro processing and agro supporting small industries with indigenous labor intensive methods and improving the working of village household industries. there is male female disparity i. in spite of various plan allocations and variety of programmes launched by the government from time to time. availability of quick credit facilities.230 on dated 30-Aug-2010 Members Copy. should be attended to on priority basis.com . has to be seeked to successfully implement the programmes of rural development.e. power supply. warehousing and storage facilities.more than 42% had no education at all. ● Participation by NGOs and SHGs in making rural people aware of their work opportunities.IndianJournals. District industry Centers (DICs).9 years of education. ● Credit sanctioning by banks and financial institutions for all developmental activities. ● Change in the outlook of village communities towards life. primary health centers.117. females are less skillful than males.71. economic and political angle has to be planned. information and field development. Trade Associations and Business Organizations. communication linkages. There.
contributed to the generation of alternative power through other sources. etc.IndianJournals. GOI. Allahabad. technical training. Institute of Engineering and Rural Technology. Not for Commercial Sale www. village sanitation project. etc. in Dindigul district of Tamilnadu. irrigational and industrial practices. banking facilities. The primary focus of all KVIC Schemes has been on the promotion of Khadi and Village Industries in the rural areas with the objective of employment generation. Development of Communication. Community based Organizations. Some of the leading examples in this connection would be ● Downloaded From IP . animal husbandry. Effective implementation of Community Development Projects (CDP). It is one of the 14 Rural Institutes of higher education started to carry higher education to village doorstep. KVIC. Under the banner of social responsibility and corporate governance. Media coverage should be utilized to enlighten the rural masses for improving their agricultural. and several other organizations. research and extension work. to develop a cluster of 10 to 12 villages around it with various sections for enterpreneurship training. NGOs and social activities could play an important role in the transformation of the rural economy. Agricultural Credit Institutes.com The Gandhigram Rural Institute (GRI) established in 1947. at Ghori.204. In 1976. Sanjay S.230 on dated 30-Aug-2010 Members Copy. medical and health centre. job training.Vilasini G. experimented in intensive development of rural areas.117. which is committed towards the total transformation of rural India through teaching. Intensive Agricultural Development Programme ● ● ● ● . wind. The Commission for Additional Sources of Energy. Patkar. it set up the first Nyaya Panchayat Level Service Centre. IRDP schemes. along with enterpreneurship development programmes for rural people. rural marketing. for the rural area usage like biomass. This Institute also runs other six Nayana Panchayat Level Service Centers.71. Kaptan / The Indian Economy 33 bring about rural development. cow dung. solar. Research and development (science and technology) for village entrepreneurs and for rural development is undertaken by KVIC. education. a number of companies have also marched the rural way by adopting villages for rural development.
should be re-enforced with proper understanding. Similarly Telco has developed a number of villages near Pune. Escorts. SASHA in malnutrition. .117. HLL-since 1960s for dehydration of vegetables and manufacturing of milk products. 5 Conclusion Downloaded From IP .since 1944 .34 Journal of Commerce and Management Thought / January 2010 (IADP).IndianJournals. thrust on rural development and new optimism of bringing about positive rural development. if every corporate entity functions as the ‘social change agent’ by actively participating in the most vital Integrated Rural Development Programme. ● ● ● ● ● ACC . Tata chemicals developed Mithapur village into modern Industrial Township and it has also started a leatherfactory at Devas.204. etc. transforming rural India will not be a distant dream. a village near Matheran-started at the behest of the Forest Department to prevent deforestation. AKSHARA foundation for children’s education. Citigroup has partnered with a bevy of exceptional NGOs like SEWA in women’s banking.230 on dated 30-Aug-2010 Members Copy. etc. It encouraged the village community to develop village industries and handicrafts to supplement their incomes. Godrej & Boyce runs ‘swayam’ an NGO devoted entirely for transforming the lives of the underprivileged in 25 districts of Maharashtra and 18 states in India.by setting up demonstration farms at a number of rural places so as to practice improved methods of agriculture by the village farmers. by adopting villages in Uttar Pradesh. a backward area in MP. it will not take much time to transform this vast rural expanse into modern developed India. If organizations and individuals make rural development their mission. Not for Commercial Sale www.71. Team effort is necessary to make the schemes work. Working Women’s Forum in poverty eradication. because mere governemt level implementation cannot ensure results. Mafatlal Group and Sugar Cooperatives have played a vital role in rural development.com In this manner. 4 Business Organizations Participating in the Rural Development Programmes. It was started as an Entrepreneurship Development Programme for the tribals in Jumpatti. including windows and displaced persons. It gave employment opportunities to a large number.
S. i Encyclopedia of Rural Planning and Development. Kirit S. Chand and Co. Beteille. 2. 24. Economic Times.230 on dated 30-Aug-2010 References 1. Singh & S.K. application of methodology that is suitable for generating employment and income and above all-an earnest effort in this direction. confidence in our resources both human and physical. R.Ali. 22. Jan.. Front Line. If planned strategic action is set in motion. we can definitely achieve our long cherished dream of rural development. New Delhi. 10. Kaptan / The Indian Economy 35 Only when rural Bharat is brought at par with urban India. May 15. Peasants in History : Essays in Honour of Daniel Thornier. Competition Success Review. 5.Vilasini G. 2005. Presently. Sarup and Sons. K. 3.71. ‘Nation and Village Images of Rural India in Gandhi.204. Agrawal.C. 2004. 2005. 3. the India Economy is a Lame Horse without the full strong firm support of Rural India. Aug. Radhakrishna. we can relish the true fruits of development. we can experience a truly galloping Indian economy. 6. March 1. Patkar. Indira Gandhi Institute of Development Research. 8. 4. To achieve this goal we need faith in our rural setup. Parikh and R. Indian Economy . Vol. Sept. Oxford University Press..IndianJournals.N. Calcutta. EPW April 2.com . Not for Commercial Sale www. 2004. A (1980) : ‘The Indian Village : Past and Present’ in EJ Hobsbown et al (eds).’ EPW. Only when Rural Bharat is brought at par with Urban India. 2005. Members Copy. Arora.117. 2004. New Delhi. Oxford India Development Report 2004-05. 7. Industry and Rural Development.Problems of Development and Planning (30th Edition) A. Sanjay S. 2002. Nov. Ltd. Downloaded From IP . Jodhaka Surinder S. Nehru and Ambedkar. with a strong will and determination.
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