0Chapter 3 RURAL DEVELOPMENTw Introduction "India lives in its villages" - Mahatma Gandhi.

Literally and from the social, economic and political perspectives the statement is valid even today. Around 65% of the State's 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 cascading effects of poverty, unemployment, poor and inadequate infrastructure in rural areas on urban centres causing slums and consequential social and economic tensions manifesting in economic deprivation and urban poverty. 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. The present strategy of rural development mainly focuses on poverty alleviation, better livelihood opportunities, provision of basic amenities and infrastructure facilities through innovative programmes of wage and self-employment. The above goals will be achieved by various programme support being implemented creating partnership with communities, non-governmental organizations, community based organizations, institutions, PRIs and industrial establishments, while the Department of Rural Development will provide logistic support both on technical and administrative side for programme implementation. Other aspects that will ultimately lead to transformation of rural life are also being emphasized simultaneously. Though the percentage of persons below poverty level in Tamil Nadu has come down significantly between 1993-94 (35.03%) and 1999-2000 (21.12%) as a result of the implementation of various Central and State sponsored schemes, the level of poverty both in absolute numbers (130.40 lakh persons) and percentage of population below poverty line (21.12%) in Tamil Nadu is highest among the four southern States. In spite of huge investments on wage and self -employment programmes, the level of unemployment as per the NSSO 55th round (1999-2000) for Tamil Nadu compared to All India is the second highest among major States in 1987-88 and 1993-94 and third highest in 1999-2000. The Government's policy and programmes have laid emphasis on poverty alleviation, generation of employment and income opportunities and provision of infrastructure and basic facilities to meet the needs of rural poor. For realising these objectives, self-employment and wage employment programmes continued to pervade in one form or other. As a measure to strengthen the grass root level democracy, the Government is constantly endeavouring to empower Panchayat Raj Institutions in terms of functions, powers and finance. Grama sabha, NGOs , Self-Help Groups and PRIs have been accorded adequate role to make participatory democracy meaningful and effective. 90 3. Rural Development

Review of Ninth Plan Performance An outlay of Rs. 2000 crores was provided for Rural Development sector during Ninth Plan period. The budgetary support and allocation from 1997-98 to 2001-02 for various schemes / programmes was Rs. 2498.30 crores. The year-wise outlay and expenditure are indicated below: Financial Performance (Rs. in crores) Year Budget Provision Expenditure 1997-98 330.68 440.76 1998-99 490.51 526.45 1999-2000 498.27 484.27 2000-01 423.31 543.50 2001-02 755.53 725.14 Total 2498.30 2720.12 Physical Performance Year I.R.D.P No.of families benefited TRYSEM No.of persons trained DWCRA No.of groups formed No.of SHGs formed SGSY economic assistance provided Families benefited Individual assisted 1997-98 180696 16479 2041 -- -- -- -1998-99 142813 12381 2917 -- -- -- -1999-2000 New scheme - SGSY introduced 18661 3198 47264 18163 2000-01 25324 4712 71503 11890 2001-02 12132 2158 34098 1259 Total 323509 28860 4958 56117 10068 152865 31312 During the Ninth Five Year Plan, under IRDP, income generating assets were provided to 3.235 lakh families through subsidy and credit.

Under TRYSEM 28,860 rural youths in the age group of 18 to 35 from the families of below poverty line were provided with training enabling them to take up income generating activities. Under DWCRA 4,958 women groups covering 12.40 lakh beneficiaries were formed and they were provided with revolving fund, credit and subsidy so as to enable them to participate in social developmental activities towards achieving economic self-reliance. During 1999-2000 the IRDP, TRYSEM, DWCRA were merged to form a new self-employment programme called Swarna Jayanthi Gram Swarojgar Yojana (SGSY) with effect from 1-4-99. Under SGSY 56,117 Women Self Help Groups (SHGs) were formed from the families of below poverty line. Out of this, 10,068 SHGs have been provided with economic assistance under various trades enabling them to take up income generating activities. Under SGSY 31,312 individual beneficiaries have also been provided with economic assistance. 3. Rural Development 91 Mandays generated and Community assets created under Centrally Sponsored Schemes during Ninth Five Year Plan Sl. No. Name of the scheme Unit Mandays generated / Assets created 1 JRY / JGSY Lakh mandays 1048.95 2 EAS 1344.38 IAY 3 New houses Nos. 2,08,441 4 IAY Kutcha houses Nos. 41,239 5 PMGY Rural shelter Nos. 6880 6 Credit cum subsidy Nos. 5577 7 Million Wells Scheme * Nos. 9588 * Scheme dispensed during 1999-2000 onwards and merged with SGSY. The total man-days generated under Employment Oriented Schemes like JRY / JGSY and EAS works out to 2393.33 lakhs. These schemes in addition to the creation of infrastructural facilities such as roads, school buildings, improvement of tanks etc. provided employment and income opportunities to the rural poor. Regarding provision of housing facilities, 2.08 lakh new houses were constructed and 41,239 kutcha houses upgraded under IAY, 6880 new houses were constructed under PMGY- Rural Shelter for benefit of rural poor living below poverty line. Under Credit cum subsidy scheme, 5,577 houses were constructed for the benefit the people above poverty line. Access to pucca dwelling provides basic housing as well as better environment for the beneficiaries and raises the social status of the members of the household. Under Jeevandhara Irrigation Wells Scheme (Million Wells Scheme), totally 9588 beneficiaries were assisted to dig irrigation wells during 1997-98 and 1998-99. During the Ninth Five Year Plan, the State Government introduced new schemes such as Member of Legislative Assembly Constituency Development Schemes (MLACDS), Annamarumalrchi Thittam (AMT) and Namakku Naame Thittam. Under

MLACDS, 42,954 works were taken up at a total cost of Rs. 580.46 crores, 1,05,605 works were taken up a total cost of Rs. 301.86 under AMT and 28,421 works were taken up at a total cost of Rs. 157.11 crores under Namakku Naame Thittam. Goals, Objectives and Strategy The prime goal of rural development is to improve the quality of life of the rural people by alleviating poverty through the instrument of selfemployment 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 Panchayat raj institutions. The Chief Minister's 15 Point Programme is a visionary programme which seeks to make Tamil Nadu the best State in the country by way of creating growth opportunities in rural areas and eradicating rural poverty. To achieve the above objectives, the following priorities and thrust areas have been identified during the Tenth Five Year Plan period:92 3. Rural Development The goal is reduction of poverty from 21.12% in 19992000 to 10% by 2006-07 and near elimination by 2012. Poverty reduction will be attempted a) by organizing the rural masses into self-help groups and the establishment of micro-enterprises, training, credit linkages, market support, etc. b) by substantial flow of investment in physical infrastructure like roads, water supply and social infrastructure like health, education and nutrition. Special efforts for generation of adequate employment and creation of durable community assets to improve the rural people especially the small farmers, marginal farmers, rural artisans etc., through programmes like Sampoorna Grameen Rozgar Yojana (SGRY). Decentralization of the process of planning by entrusting major role to the Panchayat raj bodies in the preparation of local level planning. Improving the efficiency and capacity of the officials and elected local body representatives.

 Providing all weather roads to all rural habitations having a population above 500 by 2004. Strengthening of Grama Sabha the governing body of village assembly as an agency of social audit and to review the implementation of programmes. Special efforts will be made to converge various schemes and programmes for accelerating the development process through special schemes like Village Self-sufficiency scheme etc. Emphasis will be given for the maintenance of the assets created under various schemes. Monitorable Targets for Tenth Plan Reduction of Poverty to 10% by 2006-07 and near elimination by 2012. All weather roads to rural habitations having population above 500 by 2004. Formation of 1.25 lakh Self Help Groups. Integrated Sanitary Complex for women in all Panchayats by 2003. Augmentation of water storage capacity of 12,618 village panchayat tanks through renovation. Training to 63,044 local bodies elected representatives including SHGs & officials to improve skill and capacity building. 3. Rural Development 93 Tenth Five Year Plan proposals The schemes / programmes proposed to be implemented during the Tenth plan period to achieve the above cherished objectives are: A. Centrally Sponsored Schemes I. Poverty Alleviation programmes 1. Swarnajayanthi Gram Swarozgar Yojana (SGSY) The magnitude of poverty and disparities that existed between the various social groups necessitated planned state intervention to provide succour and relief particularly to the disadvantaged and marginalised groups such as SC/ST, women etc. Keeping this in view and having regard to the positive aspects as well as deficiencies, the earlier self employment programmes like TRYSEM, SITRA, GKY, DWCRA, IRDP and MWS were merged and a new self employment programme viz., SGSY was launched w.e.f.1-4-1999. The SGSY is conceived as a holistic programme of micro enterprises covering all aspects of selfemployment and establishing effective linkages between the various components viz., organization of the rural poor into Self Help Groups (SHGs), their capacity building, planning of activity clusters, infrastructure

build up, technology, credit and marketing etc. The main objective of the programme is to bring the existing poor families above the poverty line. Among the rural poor, special emphasis will be given for the welfare of SCs/STs, women and disabled. The programme lays emphasis on organization of poor into Self Help Groups (SHGs) and their capacity building. The SHGs may consist of 10 to 20 persons. 4 to 5 key activities will be identified in each block based on the resource endowments, occupational skills of the people and availability of markets and these activities will be implemented in clusters. 10% of the SGSY fund will be set apart for training, wherein emphasis will be given for skill development through well designed courses. SGSY is a Credit cum Subsidy programme with the involvement of banking and financial institutions. The expenditure under SGSY is shared by the Centre and the States in the ratio of 75:25. Subsidy will be provided at 30% of the project cost subject to a maximum of Rs. 7,500 and 50% for SC/ST subject to a maximum of Rs. 10,000. For groups, the subsidy is 50% subject to a ceiling of Rs. 1.25 lakhs. During the Tenth Five Year Plan under SGSY it has been proposed (i) To form 1.25 lakhs Self Help Groups benefiting 25 lakh women beneficiaries in rural areas. SGSY Methodology Group Approach Organisation of rural masses into self-help groups Establishment of Micro enterprises Training for improvement of skill & capacity building Credit linkages Market support Provision of infrastructure facility94 3. Rural Development (ii) To impart EDP and Vocational training for about 5 lakh rural women to start micro enterprise for economic independency. (iii) To train 3 lakh unemployed youth to take up self-employment. (iv) To construct one Self Help Group Centre per Panchayat to conduct meeting, store and display their products and to hold training programmes for the members of SHGs. (v) To establish District Information Service Centre in each district to provide backward and forward linkages in marketing. The State's share of the SGSY scheme during the Tenth Plan will be Rs. 131.45 crores. 2. Sampoorna Grameen Rozgar Yojana (SGRY)

Creation of sustained employment opportunities for securing a minimum level of employment and income for the rural poor necessitated continuous need for special employment programmes. Keeping the above aim and to strengthen the need based infrastructure at the village level to boost the rural economy the erstwhile wage employment programmes JGSY and EAS were merged and a new scheme namely SGRY was launched from 15th August 2001. The main objective of the new programme is to provide additional wage employment in the rural areas as food security by creation of durable community social and economic assets and infrastructure development in rural areas. Towards this end the SGRY envisages distribution of food grains @ 5 kg per manday to the workers as part wages. While the cash component will be shared by the Centre and States in the ratio of 75:25, the Central Government will supply the food grains free of cost to the States. The scheme will be implemented in two streams. The first stream will be implemented at the District and Panchayat Union levels. 50% of the funds and food grains available under the programme will be distributed between the District Panchayat and the Panchayat Union in the ratio of 40:60. The second stream will be implemented at the Village Panchayat level. The entire allocation under this stream will be distributed among the Village Panchayats through the DRDAs / District Panchayats. To augument the storage capacity of the tanks maintained by the local bodies towards increasing the availability of water for drinking, irrigation and other purposes it has been proposed to renovate one tank per panchayat under this scheme. During Tenth Plan, the State's share will be Rs. 303.80 crores. II. Rural Housing The aim of the State Government is to provide a dwelling for each family giving special emphasis to rural poor and deprived. The on going rural housing programmes will be given a new thrust. 3. Rural Development 95 1. Indira Awaas Yojana With a view to meeting the housing needs of the rural poor, Indira Awaas Yojana (IAY) was launched in May 1985 as a subscheme of Jawahar Rozgar Yojana. It is being implemented as an independent scheme since 1 January 1996. It aims at helping below poverty line rural households belonging to SCs/STs, free bonded labourers, widows of nextof kin of defence personnel, ex-servicemen and retired members of

the paramilitary forces and also non SC/ST rural poor by providing them with grant-in-aid for construction of new dwelling units and upgradation of existing unserviceable kutcha houses. 3% of funds are reserved for the benefit of disabled poor below the poverty line in rural areas. The assistance ceiling for each house in plain area is fixed at Rs. 20,000/and for hill/ difficult areas Rs. 22,000. In order to enable fire proof RCC roofed houses to be provided, the State Government provides additionally Rs. 12,000 per house as additional cost apart from its usual matching share to the Central grant. The expenditure towards provision of RCC roofing is met under Adi-dravida Welfare head. Therefore, the unit cost including sanitary latrine under this scheme is Rs. 32,000/- in normal terrain and Rs. 34,000 in difficult terrain. 80% of the IAY funds is earmarked for construction new houses and 20% is towards upgradation of unserviceable kutcha houses at the rate of Rs. 10,000/- per unit. The funds under IAY are shared between Centre and States in the ratio of 75:25. During the Tenth Plan it has been proposed to construct 1,54,090 new houses and to upgrade 78,970 unserviceable kutcha houses into pucca houses. The proposed outlay during the Tenth plan under IAY under SCP is Rs. 292.89 crores. 2. Credit cum Subsidy Scheme The Credit-cum-Subsidy Scheme has been conceived for rural households having an annual income upto Rs. 32,000/-. Subsidy upto Rs. 10,000/- and loan up to Rs. 40,000/- from commercial or co-op. banks is provided to eligible households for construction of houses. Out of the total outlay of Rs. 9.15 crores, 25% share of the State Government will be Rs. 2.29 crores. The physical target under the scheme will be 914. Rural Housing Schemes Indira Awass Yojana - for below poverty line rural housing Construction of New Houses. Upgradation of Unserviceable Kutcha Houses. PMGY - to supplement the effort in Rural housing. Credit cum Subsidy Scheme - for rural households having annual income < Rs. 32,000. Innovative Stream for Rural house & Habitat Development to popularise low cost technology and locally available materials. (Fire-proof RCC roofing provided by State Government's supplementary grant of Rs. 12,000 per house)96 3. Rural Development 3. Innovative Stream for Rural House and Habitat Development Scheme This scheme intends to popularize low cost technology and usage of

locally available materials in construction of buildings in rural areas. Innovative technology adopted for the rural house type design in the scheme are: (i) Rat-trap bond brick work, hollow blocks and soil stabilized cement mortar for construction of walls. (ii) Filler slab roofing using Mangalore tiles as filler material for roofing. (iii) Ferro cement / pre cast RCC doors, window, frame and shelter and (iv) Brick baf with plastering for flooring. Under this scheme free houses are constructed for the rural poor. Infrastructure facilities such as drinking water, drainage, street formation etc., are provided by dovetailing funds under other ongoing schemes in the habitations developed under this scheme. This scheme is fully funded by the Government of India. The scheme will be taken up in the districts of Tiruvannamalai, Salem, Dharmapuri, Nilgiris, Nagapattinam, Tiruvarur, Theni, Ramanathapuram, Sivagangai and Villupuram during the Tenth Plan at a total cost of Rs. 5 crores. 4. Pradhan Mantri Gramodaya Yojana (PMGY) (Rural Shelter Component) This scheme has been introduced by the Government of India under additional Central assistance for providing shelter in the rural areas to supplement the efforts in the sphere of rural housing considering the magnitude of the task. The guidelines of Indira Awaas Yojana are applied for this scheme also. 60% of the total allocation is earmarked for SC/ST beneficiaries. During Tenth Plan it has been proposed to construct 34,475 rural shelters with an allocation of Rs. 111.14 crores. III. Member of Parliament Local Area Development Programme The Government of India introduced this scheme in 1993. Each MP (Lok Sabha and Rajya Sabha) was allotted Rs. 2 crore per annum to take up developmental works in his constituency. The District Collectors and in respect of Chennai, the Commissioner of Chennai Corporation implement the scheme. In Tamil Nadu, there are 39 Lok Sabha MPs and 18 Rajya Sabha MPs and hence Rs. 114 crores is received annually from Government of India under this scheme. A Member of Rajya Sabha may select any district of the State for exercising the choice of works under the scheme. The executive authorities concerned after studying the feasibility of the proposals of members will execute the works by following open tender system. The list of works that can be taken up under this scheme includes school buildings, village roads/approach roads, and irrigation canals, bus shelters, desilting of village ponds etc. An outlay of Rs. 570 crores has been proposed under this scheme during Tenth Plan period, which will be directly released to the District Collectors by GOI for executing the works.3. Rural Development 97 IV. Pradhan Manthri Gram Sadak Yojana (PMGSY) The Pradhan Mantri Gram Sadak Yojana (PMGSY) is a Government of India Scheme introduced in the year 2000-2001 with the objective of providing road connectivity through good all weather roads to all unconnected rural habitations having population above 1000 by 2003 and all unconnected habitations having population of 500 and above by end of Tenth Plan period

(2007). Under this programme the approved works are grouped into packages costing more than Rs. 1 crore but less than Rs. 5 crores and executed through tender system. The guidelines stipulate that district master plans would be prepared. A District Rural Road Plan is prepared for each district indicating the habitations in each block with the existing status of road connectivity. The scheme will be fully funded by the Government of India and an allocation of Rs. 750 crores has been proposed for the Tenth Plan, which will be shown under the chapter Rural Roads. V. National Project on Biogas Development Biogas Development programme aims to promote an eco-friendly Non-conventional Energy Source with multiple benefits. The role of biogas as a major source of renewable energy has been recognized by the Government of India by including this scheme as an item in the 20 Point Programme. Prevention of deforestation, production of enriched manure and to improve sanitation and hygiene by linking sanitary toilets with biogas plants are the objectives of this rural energy programme. This is a Centrally sponsored programme with a subsidy component of Rs. 1800/- for general category and Rs. 2300/-for scheduled category and Rs. 3500/- for hilly areas. An amount of Rs. 500/-is provided in addition for installation and maintenance of the plant to the Turnkey agent. 10,000 bio-gas plants will be constructed during the Tenth Plan. The scheme is fully funded by the Government of India and Rs. 8.05 crores is provided for the Tenth Plan which will be directly released to the District Collectors. VI. Eleventh Finance Commission Grant This grant is provided to Village Panchayats and Panchayat Unions for maintenance of civic services. Under Eleventh Finance Commission grant, a sum of Rs 186.45 crores for 2000-01 and 2001-02 was allocated. Out of this, Rs. 171.92 crores is provided to Village Panchayats and Panchayat Unions for maintenance of civic services and Rs. 14.53 crores for maintenance of accounts and audit and for development of database. An outlay of Rs. 659.47 crores has been proposed during the Tenth Plan period under this scheme. VII. Rashtriya Sam Vikas Yojana (RSVY) During Tenth Plan a new scheme viz, Rashtriya Sam Vikas Yojana (RSVY)-Development and Reform Facility will be launched by Government of India. The prime objective of RSVY is to address the problems of pockets of high poverty, low growth, low agricultural productivity, unemployment and poor governance by putting in place programmes and policies, which would remove barriers to growth and accelerate the development process. An98 3. Rural Development amount of Rs. 15 crores per year will be provided for implementation of various developmental programmes such as drought proofing (soil conservation, afforesation, social forestry, wasteland development and minor irrigation), agriculture, horticulture etc. infrastructure (road and power), social sector (health and education) and livelihood support (income generating activities such as handloom, information technology, agricultural processing

etc.). Under the scheme 15% of the funds will be earmarked for maintenance of assets in health, education and veterinary sectors. The main focus and strategy of the scheme will be on infrastructure development and income generation for under-privileged. The scheme will be implemented through people's participation, involvement of PRIs, NGOs and Self Help Groups at every stage including plan formulation, implementation and monitoring. Tiruvannamalai district has been selected on pilot basis for implementation of RSVY scheme. During Tenth Plan period the total amount of Rs. 225 crores is proposed under the scheme. B. State schemes 1.Construction of office buildings for Village Administrative Officers Administration at the door steps of the people is the slogan of the Government. In order to achieve this objective the scheme for construction of buildings for the office of the Village Administrative Officers has been proposed during Tenth plan period. There are about 16000 revenue villages in the state, each having a Village Administrative Officer. The VAOs office buildings would be constructed adjacent to every panchayat office building so that public can have easy access to both. It has been proposed to construct the VAO's office building through state budgetary support and by dovetailing funds under MLA Constituency Development Scheme. The outlay proposed for the scheme during the Tenth Plan is Rs. 19.80 crores. 2. Village Fair Development Scheme The Agro-based industries play a vital role in the development of rural economy. It is essential that the farmers should have remunerative returns and the agricultural labourers should have high wages. To enhance the livelihood security of the farmers and agricultural labourers, the Village Fair Development Scheme has been launched. Presently the agriculture produces are marketed in shandies maintained by village panchayats and panchayat unions. These shandies are being maintained without adequate infrastructure facilities. It is proposed to provide facilities such as stalls, drinking water to cattle/people, public convenience, lighting facilities, improvement to inner roads between the stalls etc., These will also facilitate the rural masses to have an access to agriculture produce besides improved income to the local bodies. The above scheme will be implemented in 25 districts with (NABARD) assistance costing Rs. 5.00 crores during the Tenth Plan period. 3. Village Self-sufficiency Scheme The main objective of the Scheme is to promote self-reliant and self help attitude among the rural people. This scheme attempts to reverse growing dependency syndrome in the rural areas on Govt. and bring back to3. Rural Development 99 the mainstream of development process by inculcating community involvement and participatory approach in development. Community needs are articulated by the public through Grama Sabha and after thorough deliberations, their needs are prioritized and converted as implementable projects where the public themselves actively contribute in cash, kind or through labour to supplement the government funds and execute the works.

The Government provides necessary technical support to execute the works. This scheme maximizes the utility value of the funds allocated by the Government. Apart from expediting the execution and improving the quality of work, it also promotes the concept of community maintenance of public assets. The outlay proposed for this scheme during Tenth Plan period is Rs. 120 crores. 4.Member of Legislative Assembly Constituency Development Scheme (MLACD) The Member of Legislative Assembly Constituency Development Scheme is fully funded by the State Government. The main objective of the scheme is to bridge the critical infrastructural gap in the Assembly Constituencies. Under this scheme each member of Legislative Assembly shall identify the works that should be executed in his constituency. The allocation for each Assembly Constituency is Rs. 82 lakhs. Important works like Integrated Sanitary Complexes for Women, construction of hostels for SC/STs, BC/MBCs students, construction of office buildings for VAOs and provision of drinking water in drought-affected areas are taken up on priority basis. The remaining works will be proposed by MLA should be in accordance with the guidelines issued in this regard. An outlay of Rs. 1059.85 crores has been proposed under the scheme during Tenth Plan period. 5. State Finance Commission Grant A devolution formula has been adopted for devolving resources to urban and rural local bodies based on the recommendations of the Second State Finance Commission for the award period 2002-07 coinciding with the Tenth Plan period. The rural and urban local bodies will receive 8 percent of the States' Own Tax Revenue after excluding Entertainment Tax receipts. The vertical sharing of resources between rural and urban local bodies will be in the ratio of 58:42. Of the total devolutions to the urban local bodies, the resources will be shared between the Corporations, Municipalities and Town Panchayats in the ratio 31:34:35. The devolution to rural local bodies will be shared among the Village Panchayats, Panchayat Unions and the District Panchayats in the ratio of 47:45:8. Further the State Finance Commission grants will be released to the local bodies on a monthly basis. An outlay of Rs. 659.47 crores is provided for this purpose 6. Integrated Sanitary Complex for Women Tamil Nadu's coverage in rural sanitation is presently at 11% which is lower than national average of 15%. To protect dignity and privacy of the women the Government have launched a new scheme called the Integrated Sanitary Complex for women to provide toilets and facilities for bathing and100 3. Rural Development washing for women under one roof. Each sanitary complex will be spread over approximately 750 sq.ft. with 10 toilets and 3 cubicles for bathing. Each complex has an independent water connection to ensure that the users have a steady and continued supply of water. A pump room and water tank will also form part of the sanitary complex. The operation and maintenance of these sanitary complexes will be the responsibility of the village panchayats

and self-help groups. Monitoring committees will also be formed for proper maintenance of these sanitary complexes. An outlay of Rs. 284 crores has been proposed under this scheme during the Tenth Plan period. 7. Other programmes / Schemes The outlay proposed in respect of other Rural Development programmes during Tenth Plan is as follows: Sl. No. Name of scheme / programme Proposed outlay (Rs. in crores) 1 Capital programme of Infrastructure Development by rural local bodies 100.00 2 DRDA Administration cost 20.08 3 Other Rural Development Programmes 113.14 Total 233.22 C. Area Development Programme 1. Western Ghats Development Programme Provision of infrastructure facilities like drinking water, street lights, formation of link roads, construction of school buildings and health subcentres have been proposed to be taken up in the Western Ghats taluks under WGDP. These works will be planned and executed by the concerned local bodies. The outlay proposed under the above head during the Tenth Plan period is Rs. 1.90 crores. 2. Drought Prone Area Programme The Drought Prone Area Programme (DPAP) is an integrated watershed development programme with the prime objective of promoting the over all economic development of watershed community by optimally utilizing natural resources so as to mitigate the adverse effects of drought, prevent further ecological degradation and create employment through non-farm activities. This programme is being implemented in 16 districts viz., 1. Dharmapuri (14), 2. Thoothukudi (18) 3. Sivagangai (7), 4. Ramanathapuram (7), 5. Virudhunagar (7), 6. Pudukottai (4), 7. Tirunelveli (1), 8. Salem (5), 9. Namakkal (3), 10. Coimbatore (5), 11. Thiruvannamalai (1), 12. Dindigul (3), 13. Vellore (6), 14. Tiruchirappali (1). 15. Perambalur (6), and 16. Karur (2) (No.of blocks in brackets). This programme is sponsored by the Government of India and the expenditure is shared in the ratio of 75:25 between and Central and State Governments. The DPAP is implemented on watershed approach. Each watershed covers an area of approximately 500 ha. The allocation per3. Rural Development 101 hectare is Rs. 6,000 . This programme consists of 5 major components, namely, 1. Entry point activity 2. Community organization, 3. Training, 4. Developmental activities and 5. Project administration. The Developmental works carried out under DPAP are as follows:

i. Land Development including land levelling, summer ploughing, institutional and moisture conservation measures like contour and graded bunds fortified by vegetation, bench terracing in hilly terrain. ii. Drainage line treatment with a combination of vegetative and engineering structures. iii. Development of small water harvesting structures such as low cost farm ponds, nulla bunds, check dam and percolation ponds. iv. Nursery raising for fodder, timber, fuelwood and horticultural species. v. Afforestation activities including block plantations, avenue plantation, shelter belts, sand dune stabilization etc., vi. Agro-forestry and horticultural development. vii. Pasture development either by itself or in conjunction with plantations. viii. Repair, restoration and upgradation of existing common property assets and structures in watershed to obtain optimum and substained benefits from previous public investments. ix. Crop demonstration for popularizing new crops / varieties or innovative management practices. Proposals - Development works in 297 watersheds sanctioned in the first batch during 1995-96 to 1999-2000 have already been successfully completed with a total outlay of Rs. 53.57 crores covering 42,090 hec. Watersheds sanctioned during 1999-2000 and 2001-02 will be continued during Tenth Plan period. In addition it is expected that 700 more watershed projects will be taken up during Tenth plan period. The outlay proposed under DPAP would be Rs. 210 crores during Tenth plan out of which the State's share will be Rs. 52.50 crores. The total outlay towards Special Programme for Rural Development is Rs. 3500 crores.102 3. Rural Development Proposed outlay for Special Programmes for Rural Development (Rs. in crores) Sl. No. Name of the scheme /Programme Outlay for Tenth Plan (State share) 1 Member of Legislative Assembly Constituency Development scheme (MLACD) 1059.85 2 Village Self-sufficiency scheme 120.00 3 Capital Programme of Infrastructure Development by Rural Local bodies 100.00 4 Rural Sanitary Complex for Women 284.00 5 Construction of building for VAO's Office 19.80 6 Villlage Fair Development scheme 5.00 7 SGSY 131.45 8 SGRY 303.79

9 IAY under Special Component Programme 292.89 10 Special Component Plan for rural shelter 111.14 11 District Reform facility 225.00 12 Finance Commission Grants to Local bodies 659.47 13 DRDA Administration cost 20.07 14 Other Rural Development Programme 113.14 AREA DEVELOPMENT PROGRAMME 15 Western Ghats Development Programme 1.90 16 Drought Prone Area Programme 52.50 Total 3500.00 Community Development Formation of rural roads, construction of small bridges and culverts, provision of water supply and sanitation facilities, improvement and maintenance of minor irrigation tanks constitute Community Development activities. Rural Sanitation To provide more and more sanitation facilities to rural population, generate awareness about health education and eradicate manual scavenging, the Total Sanitation Campaign scheme under RCRSP will be continued during the Tenth Five Year Plan period. The Total Sanitation Campaign envisages a demand driven approach with greater public participation and more emphasis given for IEC activities to create awareness among the rural masses. The project would be implemented in 24 months spread over 3 years in select districts with the ultimate objective of covering 80% rural population under sanitation. The expenditure on this scheme is shared by the Central and State Government on 80:20 basis. An outlay of Rs. 19.15 crores has been provided under the Tenth plan. Integrated Rural Sanitation and Water Supply Project with DANIDA Assistance This scheme aims to improve the health and sanitary condition in the project area villages through integrated approach to provide safe drinking water and sanitation through participatory and demand driven approach. This 3. Rural Development 103 programme is being implemented with DANIDA assistance. Water supply works, individual household latrines and institutional latrines are taken up in the project area. The outlay provided is Rs. 16.27 crores. Improvement of Rural roads, bridges and drainage structures At present panchayats and panchayat unions are maintaining 52% of the total length of the roads in the state. The road transport has emerged as the most eminent mode of transport in the light of its inherent advantages of lower cost of travel and flexibility in operation. The rural roads also provide outlet to market centres, taluk headquarters and other main roads. Hence, it is essential to improve village roads to all weather roads i.e., by black topping. The improvement of road works has been taken up under Rural Infrastructure Development Fund (RIDF) under NABARD. An outlay of Rs. 93.75 crores has been proposed under this head during Tenth plan. It has also been

proposed to avail a loan amount of Rs. 93.76 crores under RIDF-V. Provision of Infrastructural facilities in Tribal blocks The objectives of the schemes are (i) to assist the ST families to cross the poverty line with special emphasis on improving agriculture, irrigation and education in tribal areas and (ii) to provide basic infrastructure facilities for better living conditions. An outlay of Rs. 2.39 crores has been proposed during the Tenth Plan. Provision of Infrastructure facilities for Rural local bodies With a view to provide basic infrastructure facilities such as drinking water, street lights, link roads, construction of school buildings, health subcentres etc., an outlay of Rs. 294.68 crores has been proposed during the Tenth Plan. Local Bodies Incentive Scheme An outlay of Rs. 80 crores has been proposed during the Tenth Plan. Thus the total outlay for Community Development for the Tenth Plan is Rs. 600 crores. Proposed outlay for Community Development (Rs. in crores) Sl. No. Name of the scheme / Programme Outlay (State share) 1 Improvement of rural roads, bridges and drainage structures under RIDF 93.75 2 Loans for improvement of rural roads, bridges and drainage structures under RIDF- V 93.76 3 Integrated Rural sanitation and water supply project with DANIDA assistance 16.27 4 Central Rural Sanitation Programme 19.15 5 Local Bodies incentive scheme 80.00 6 Formation of Tribal blocks in Hill areas 2.39 7 Provision of infrastructure facilities for rural local bodies 294.68 Total 600.0

Green Revolution in India and Its Significance in Economic Development: Implications for Sub-Saharan Africa Koichi FUJITA (Professor, Center for Southeast Asian Studies, Kyoto University, Japan) E-mail: kfujita@cseas.kyoto-u.ac.jp Abstract In recent years India is experiencing a rapid economic growth, especially after the 1990s when India started to liberalize its economy in a full scale. However, the author emphasizes the critical importance of the preceded 1980s when Indian agricultural sector registered a high growth rate. The Green Revolution in India started in the late 1960s and with its success India attained food self-sufficiency within a decade. However, this first wave of the Green Revolution was largely confined in wheat crop and in northern India such as Punjab, resulting in a limited contribution to overall economic development of the country. On the contrary, the agricultural growth in the 1980s (the second wave of the Green Revolution) involved almost all the crops including rice and covered the whole country, it enabled to raise rural income and alleviate rural poverty substantially. Such a rise of rural India as a market for non-agricultural products and services was an important pre-requisite for the rapid economic growth based on non-agricultural sectors development in India after the 1990s. The 1980s was a critical decade for South Asia and Sub-Saharan Africa to make a great divergence in the economic development thereafter. The implication for Sub-Saharan Africa is that raising income in rural areas through productivity growth of the agricultural sector, especially the staple food sector, is essential for the success of modern economic growth through industrialization. Introduction As one of the so-called BRICs, India is experiencing a rapid economic development and growth in recent years, especially after the 1990s when India started to liberalize its economy in a full scale. With no doubt, a series of economic liberalization policies implemented after 1991 in India largely contributed to the accelerated growth in the country until the present day. However, this paper will focus more on the role of the Indian agricultural sector in its history of overall economic

development process. To mention at first the major conclusion of the paper, we consider that agricultural growth should be preceded the modern economic growth which is based on industrialization. As described later in detail, we emphasize the existence of domestic market for 2 non-agricultural products and services as an important pre-requisite for the success of industrialization. By agricultural development through productivity growth such as the Green Revolution, rural income can be raised and rural poverty be alleviated. Therefore the Green Revolution can contribute to the overall economic development through creating a market in rural areas for non-agricultural products and services. In the case of India, the Green Revolution at first started in the late 1960s. With the success of it, India attained food self-sufficiency within a decade by the end of the 1970s (the first wave of the Green Revolution). However, because it confined only to wheat crop and in northern India such as Punjab, it failed to raise income in the vast rural areas of the country. The second wave of the Green Revolution, however, reached India finally in the 1980s. Since it involved almost all the crops including rice (which is a very important staple food in eastern and southern India) and it covered the whole country, it was able to contribute to raise rural income and alleviate rural poverty in the whole country. Thus the second Green Revolution in the 1980s was essential for the history of Indian economic development. This paper composes as followings. In the section I, we will reflect the process of the agricultural development in India after its independence in 1947. In particular, the process of the first and the second waves of the Green Revolution and their impacts will be delineated in detail. In the section II, the role of the Green Revolution in India on its history of economic development will be presented. In the section III, the implications of the Indian experience for the contemporary Sub-Saharan Africa will be discussed, taking into consideration the similarities and differences between the two regions. Finally, we will summarize the argument and conclude. I. The Green Revolutions in India Before focusing on the agricultural sector development in India, let us first look at briefly the

overall economic development process of the country since independence in 1947 until the present day. Figure 1 illustrates the economic growth rates (three-year moving averages) of India in order to eliminate year to year fluctuations. It is found from the figure that India suffered a relatively low economic growth rates around 3.5 percent per annum until the late 1970s, with a large fluctuations due to the influence of the agricultural sector growth which largely depended on the monsoon situation. Indian economy then experienced some improvement in the 1980s because of the governments liberalization policies (but not in a full-scale) under the Rajiv Gandhi regime and a relatively high growth rate attained by the agricultural sector in the decade. And finally, after the full-scale economic liberalization in 1991 the economic growth rates in India accelerated to a very high level (usually more than 6 percent, and 3 even more than 8 percent after the mid-2000s) until recently. It is notable at the same time that the agricultural sector growth started to clearly lag behind the GDP growth since the 1990s, which indicates that the Indian economy was plunged into a new developmental stage after the 1990s where widening disparity between agricultural and non-agricultural (or between rural and urban) sectors is one of the major problems for the economy. Now let us look into the agricultural sector development in India by dividing the whole period from the independence to the present time into several periods. Figure 1 Economic Growth Rates in India (Three Year Moving Averages) 1. Until the mid-1960s It is well known that the agricultural sector of British colonial India, especially the crop sector, was totally stagnant or even a negative growth was recorded in the entire first half of the 20th century (Blyn, 1966; Kurosaki 1999). This pattern, however, was reversed at the independence in 1947. The foodgrains (which is defined in India as cereals plus pulses) production registered a high growth in India at 4.13 percent during 1951-52 to 1960-61 on average (Kurosaki, 1999). Both the

sown area expansion and the crop yield increase were contributed to the growth. However, as shown in Figure 1, the growth rate of the agricultural sector was decelerated during the period. The priority of the governments agricultural policy was primarily given to institutional reforms such as the land reform and the promotion of farmers cooperatives. As a socialist nation India strongly promoted a heavy industrialization, especially after the second Five Year Plan (1956-57 to 1960-61), leaving the agricultural sector relatively neglected. Severe two years consecutive droughts attacked India in the mid-1960s. Agriculture recorded -2.0 0.0 2.0 4.0 6.0 8.0 10.0 1952-53 1954-55 1956-57 1958-59 1960-61 1962-63 1964-65 1966-67 1968-69 1970-71 1972-73 1974-75 1976-77 1978-79 1980-81 1982-83 1984-85 1986-87 1988-89 1990-91 1992-93 1994-95 1996-97 1998-99 2000-01 2002-03

2004-05 % Year GDP Primary Industry4 a large negative growth and India faced a serious food problem. Since the share of the agricultural sector in GDP was still very high at about 50 percent, the slump of agriculture hit the economy as a whole and even the political regime itself. India was obliged to import as much as 10 million tons of food (mainly wheat) for the two years (Figure 2). Figure 2 Population and Cereal Production & Trade in India 2. From the mid-1960s to the end of the 1970s The serious economic and political crisis which India faced in the mid-1960s triggered the big conversion of agricultural policy of the government; i.e. it emphasized technological innovation and started to introduce new agricultural technologies from abroad. And it was a fortunate coincidence for India that the mid-1960s was the time when new seed-fertilizer technologies started to diffuse in the tropical developing world. In particular, it was luckily found that the wheat HYVs (Mexican semi-dwarf wheat varieties) developed in CIMMYT in Mexico were quite suitable for the climate conditions in the northern India such as Punjab . And the most important factor which promoted the dissemination of the new technologies was the diffusion of private tube-wells which exploit groundwater. Thus the new seed-fertilizer technologies, especially for the wheat crop, started to disseminate very rapidly in northern India and within a decade or so India attained food self-sufficiency except for some drought years (Figure 2). It can be called the first wave of the Green Revolution in India. However, Indian economy as a whole had to experience a bitter lost decade during the mid-1960s to the mid-1970s mainly due to the shortage of foreign exchange for the importsubstituting industrial sectors (Ohno, 1999). It was because India had to continue to import a large amount of -1500 -1000

-500 0 500 1000 1500 2000 1951 1953 1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Year Populationmillion) Net production of cereals (lakh) Net export of cereals 10 thousand5 food for several years and it also had to import chemical fertilizers (and agricultural machineries) for the development of agriculture. In sum, India had to pay a huge cost for the sake of the negligence of agriculture at the time until the mid-1960s, which is considered to be a typical case of the Ricardian trap in economic development (Hayami, 1997).

The first wave of the Green Revolution in India had another limitation from the viewpoint of overall economic development in the country. Because the diffusion of the Green Revolution was confined to wheat crop and in northern India such as Punjab, Haryana and the western part of Uttar Pradesh, it could not raise rural income and alleviate rural poverty in a wider area. Rural India continued to be poor except some particular spots. 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 1950/51 1952/53 1954/55 1956/57 1958/59 1960/61 1962/63 1964/65 1966/67 1968/69 1970/71 1972/73 1974/75 1976/77 1978/79 1980/81 1982/83 1984/85 1986/87 1988/89 1990/91 1992/93 1994/95 1996/97 1998/99 2000/01

2002/03 2004/05 2006/07 Million tons Year Rice Wheat Coarse grains Maize Figure 3 Production Trend of Major Cereals in India Figure 4 Sown Area, Yield and Irrigated Ratio of Wheat Production in India Source. Government of India, Agricultural Statistics at a Glance 2004. Sown area Yield Irrigated Ratio(right) 0 20 40 60 80 100 0 10 20 30 1950/51 1960/61 1970/71 1980/81 1990/91 2000/01 2003/04* (%) Million hectare, 100kg/ha Sown area (million ha) Yield100Kg/ha) Irrigated ratio(%)6 As a result of the rapid production growth of wheat, which was a minor crop in India at the time of independence, however, the production of wheat exceeded that of the coarse cereals (such as jowar, bajra, ragi and maize) by the end of the 1970s in India (Figure 3, Figure 4). 3. During the 1980s The decade of the 1980s witnessed a very favorable growth rates in the agricultural sector, including almost all the regions of the country and almost all the important crop sectors (Table 1).

The rapid increase of rice production during the 1980s, which is an important staple food in eastern and southern India, was especially essential for the development of hitherto povertystruck rural areas in India (Figure 5). The most important factor behind the overall rapid growth of the agricultural sector in India was a widespread diffusion of private tube-wells (especially small-scale shallow tubewells). The diffusion of tube-wells in formerly rain-fed areas (or unreliably irrigated areas by government canals) enabled to grow HYV wheat instead of rabi crops such as pulses in the dry season (rabi season), and in the monsoon season (kharif season) the yield of rice was increased substantially by switching the varieties from traditional to modern types (HYVs). Thus the highly productive rice-wheat cropping pattern was established in a wide area of rural India, especially in the Gangetic Basin. Furthermore, in some places with a plenty of rainfall such as West Bengal , double cropping of HYV rice was widely disseminated. There had been a controversy in India among economists regarding the reason why new agricultural technologies were not accepted for long in eastern India, in sharp contrast with northern and some other parts of India. It was argued by some Marxist economists that the semifeudal mode of production system in eastern India (represented by agrarian structure with small numbers of big landlord and large numbers of indebted poor sharecroppers) was ultimately attributed to it (Bhaduri, 1973). Against this argument, however, Newberry (1974) tried to refute it from the theoretical viewpoint and Bardhan and Rudra (1978) did so empirically. Table 1 Growth Rate of Crop Production in India 195060 196070 197080 198090 199096 Rice 4.53 2.12 1.73 4.08 1.60 Wheat 5.79 7.73 4.15 4.29 3.64 Coarse grains 3.76 1.67 0.55 0.71 -0.99 Maize 7.84 3.90 0.64 3.20 1.30 Total 4.45 3.10 2.07 3.38 1.81 Pulses 3.80 -0.47 -1.18 2.45 -0.07 Total Foodgrains 4.35 2.63 1.76 3.31 1.66 Oilseeds 3.05 2.41 1.34 6.01 4.16 Sugarcane 5.62 2.54 2.27 4.38 3.72

Cotton 4.54 2.03 2.69 3.23 4.51 Jute/Mesta 5.60 0.32 2.13 1.28 2.18 Note.The data are three year moving averages.7 Sown area Yield Irrigated ratio(right) 0 10 20 30 40 50 60 0 5 10 15 20 25 30 35 40 45 50 1950/51 1960/61 1970/71 1980/81 1990/91 2000/01 2003/04 * % Million hecrate, 100kg/ha Sown area (million ha) Yield 100kg/ha) Irrigated Ratio(%) Figure 5 Sown Area, Yield and Irrigated Ratio of Rice Production in India Source. Government of India, Agricultural Statistics at a Glance 2004. Note. Yield of rice in India is in terms of milled rice. However, if we investigate the factors which critically determine the diffusion of the new seed-fertilizer technologies, it is evident that one of the key factors was the diffusion of private tube-wells. Therefore the key question is why especially in the eastern India the introduction of

private tube-wells was delayed until the 1980s. One of the answers may be the shortage of capital in the hand of farmers to purchase private tube-wells, because in eastern India there were in general only small-scale poor farmers. In other words, it can be hypothesized that after the 1980s the real price of tube-wells declined so that even the relatively poor farmers in eastern India could purchase tube-wells. Another factor may be the delay of rural electrification in eastern India, because irrigation cost is much cheaper by electric tube-wells than diesel-driven tube-wells . On the other hand, extreme land fragmentation in eastern India with a lack of successful land consolidation program was often attributed to the delay of the diffusion of tube-wells (Bardhan, 1984). However, the experiences in eastern India in the 1980s suggested that this hypothesis was totally wrong; i.e. tube-wells did rapidly diffuse even under the extreme land fragmentation. And under the land fragmentation the water sales market (groundwater market) for irrigation was widely emerged and developed . In sum, rural India witnessed a widespread agricultural development in the 1980s due mainly to the diffusion of private tube-wells (Figure 6). Especially the most important thing was that rice production, which was the main staple food in eastern and southern India, increased rapidly and 8 contributed to raising rural income and alleviating poverty. The real wages of agricultural laborers in India had started to rise and also rural poverty started to decline for the first time in the long history of the country. CanalGovernment) CanalPrivate Tank Tube-well Other well Others 0 2000 4000 6000

8000 10000 12000 14000 16000 18000 20000 1960/61 1970/71 1980/81 1990/91 1995/96(p ( 1000 ha ) ( Year ) Figure 6 Net Irrigated Area by Source of Irrigation in India Source. Until 1990/91: Water and Related Statistics 1994, Statistics Directorate, Irrigation Management Organization, Central Water Commission, p.81Regarding the year 1995/95, Fertilizer statistics 1998/99. If we look at the indicator of per capita per day calorie intake by the data of FAO (FAO, 1995), both South Asia and Sub-Saharan Africa were almost at the same level at 2100 calorie/day until the late 1970s, but after the 1980s whereas Sub-Saharan Africa stagnated at the same level, South Asia began to rise continuously to the level of approximately 2300 calorie/day by the end of the 1980s (Figure 7). Therefore, it can be stressed here that the 1980s was the critical period for South Asia and Sub-Saharan Africa to make a great divergence in the economic development thereafter. Lastly, it should be noted that in India not only rice and wheat increased their yield levels dramatically during the period of the Green Revolution (Figure 4, Figure 5), but also coarse cereals accomplished a continuous and substantial increase of their yield (Figure 8). According to Figure 8, the average yield of coarse cereals increased from less than 500 kg/ha in the 1950s to more than 1000 kg/ha in recent years, although sown area experienced a rapid decrease from the beginning of the 1970s due to the continuous decline of demand for human consumption. At present, as indicated in Figure 9, although demand for coarse cereals for human consumption became minimal except some spots (rural and urban Karnataka, rural Maharashtra, rural Gujarat and rural Rajasthan), demand for animal feed is increasing, especially in the case of maize and jowar (sorghum).9 Figure 7 Per Capita Calorie Intake of Developing Areas Source. FAO, 1995. Sown area Yield

Irrigated ratio(right 0 20 0 5 10 15 20 25 30 35 40 45 50 1950/51 1960/61 1970/71 1980/81 1990/91 2000/01 2003/04* (%) (Million hectare, 100kg/h Figure 8 Sown Area, Yield and Irrigated Ratio of Coarse Cereal Production in India Source. Government of India, Agricultural Statistics at a Glance 2004. South Asia Sub-Saharan Africa10 Figure 9 Per Capita Consumption of Cereals and Its Composition in India Source. National Sample Survey Organization, 2006. 4. After the 1990s Indian economy was plunged into a new developmental stage after the 1990s. First, the critical period for the preparation of full-scale non-agricultural sector development was over until the end of the 1980s, when broad-based agricultural development based on the second Green Revolution was happened. Second, however, since India turned to the stage when per capita human consumption of foodgrains (especially for staple food such as rice and wheat) started to decline, agricultural growth rate will not be very high because foodgrains sector is large within the agricultural sector, even if high-valued agricultural commodities (such as livestock, vegetable, fruits) will increase relatively

rapidly. Third, it means that widening disparity between agricultural and non-agricultural (or between rural and urban) sectors will be a serious problem for the economy. Because of the limited space, let us point out only some key facts and issues which Indian agriculture faced after the 1990s in the following. 1) The agricultural sector growth rate declined to 2.5 percent per annum on average after the 1990s. The fatigue of agricultural sector and rural economy is becoming a serious social problem, especially compared to the rapid growth of non-agricultural sectors mainly in urban areas. Although the government is setting the growth rate target of agricultural sector at 4 percent, it may be quite difficult to realize it. 2) Because of the declined per capita consumption for cereals (especially for rice) and also because of the failure of food management policies of the government, India became a major exporter of rice (very recently wheat also) since the mid-1990s to the world market (Figure 2), particularly to Bangladesh and Sub-Saharan Africa. The export of rice (and Urban Rural11 wheat) was strongly associated with an excess buffer stock of rice (and wheat) accumulated in the government sector (Food Corporation of India), and India experienced two peak periods of extremely excess stock; i.e. the first one was in the mid-1990s and the second one was at the beginning of the 2000s. 3) Subsidies for agricultural inputs such as chemical fertilizer, irrigation (canal) and electricity (for electric pump sets such as tube-wells) has been rapidly increased since the 1980s until the present day. Agricultural subsidies are now very big fiscal burden for the government, especially for the state government. The subsidies are given mainly to the advanced agricultural areas and also to the wealthy farmers in particular. Therefore, the necessary public investment for agriculture and for rural areas is neglected, which causes the disparity between advanced rural areas and backward rural areas fixed. II. Role of the Green Revolutions in Economic Development Now let us summarize the role of the Green Revolution in India, especially the second Green Revolution during the 1980s, on overall economic development process of the country. The most important lesson we learned is that agricultural growth should be preceded the modern economic growth based on industrialization. The reasons are as follows. At the beginning of economic development the agricultural sector is large. A large share of population depend their livelihood on agriculture and related activities. They are poor and the share of their household expenditures for food and beverages (Engels coefficient) is usually very high; around 70 percent. Under such a situation, even if the government tries to promote industrialization (especially heavy industrialization) with neglecting the agricultural sector, it tends to fail because of the lack of the market for non-agricultural sectors. Note that export-oriented industrialization is more

difficult and entrepreneurs should at first depend on the domestic market which is more familiar to them before going to exploit export market. In this sense, the existence of the domestic market for their products is essential when promoting industrialization. Because the majority of people live in rural areas at this stage of economic development, the key is how to raise income and alleviate poverty in widespread rural areas. Thus the development of agricultural sector, especially staple food sector, should come first because majority of rural population depend their livelihood on it. If raising income of rural population is the key, the agricultural growth should be led by productivity growth, rather than by horizontal expansion of farmland. Actually, as we had seen before in this paper, India had to pay a huge cost for the negligence of agricultural sector before the mid-1960s, in the form of the lost decade from the mid1960s to the mid-1970s.12 In conclusion, the second Green Revolution in India during the 1980s was able to play a critical role in preparing a wide market in rural areas for non-agricultural products and services, which became the basis of the rapid economic growth based on non-agricultural sector development in the country after the 1990s. The author emphasizes here the final demand effects of the agricultural development in the 1980s, although the author does not deny the existence and the importance of backward and forward linkage effects of it too. III. Implications for Sub-Saharan Africa What are the implications of the experience of India for the development of Sub-Saharan Africa? In terms of the living standard of ordinary people, the two regions made a great divergence in the 1980s when India started to escape from the hitherto low-level equilibrium. If the major argument so far of this paper is summarized, the critical difference between the two regions was the performance of the agricultural sector during the 1980s. During that decade, India accomplished a nationwide development of the agricultural sector due to the spread of the second Green Revolution while the agricultural sector was more or less stagnated in Sub-Saharan Africa. Actually the growth

rate of agriculture in Sub-Saharan Africa during the 1980s was less than 2 percent, which lagged behind even the population growth rate. Per capita food production was thereby decreased and food import (rice and wheat) started to rise rapidly from the 1980s. And per capita calorie intake is still stagnating in Sub-Saharan Africa at around 2100 calorie/day. To be worse, while the population growth rate largely decelerated in India to nearly 1.5 percent per annum in recent years, Sub-Saharan Africa is still suffering from the population explosion at about 2.5 percent per annum. Note that the major reason why India came to the last stage of the so-called demographic transition (the stage in which birth rate started to decline substantially) was the successful transition of the economy from agriculture-based to non-agriculture-based. The most important implication of the experience of India for Sub-Saharan Africa, therefore, is to raise rural income to a certain level and alleviate poverty in rural areas, thus to make rural areas a big market for non-agricultural products and services. If it is realized, Sub-Saharan Africa can most probably proceed to the next step of economic development based on industrialization. And in order to raise rural income to a certain level, the agricultural sector, especially the staple food production sector, should be developed by productivity growth (not by horizontal expansion of farmland, as experienced in most of the regions in Sub-Saharan Africa so far). The other method such as introducing cottage industry in rural areas, for example, cannot be universal enough for raising rural income in everywhere. The key question is thus how to introduce the Green Revolution in the context of the existing natural and socio-economic environment in Sub-Saharan Africa.13 However, several critical disadvantages can be pointed out for the introduction of the Green Revolution in the area. First, the staple food crops are much diversified in Sub-Saharan Africa, and rice and wheat occupy a very small share in the total staple food (Table 2). Since there is relatively a small backlog of new technologies in the world for root crops and coarse cereals other than maize, it may be quite difficult to raise productivity of the major staple food crops in Sub-Saharan Africa.

Table 2 Crop-wise Demand and Supply in Sub-Saharan Africa in 2000 Crop Demand (million ton) Production (million ton) Net import (million ton) Ratio of net import in total demand (%) Cassava 106.5 106.8 0.3 0.4 Sweat Potato 43.8 35.7 2.1 5.6 Maize 37.8 32.6 2.4 6.9 Other Cereals 35.0 43.7 0.1 0.2 Wheat 13.6 4.6 9.0 66.2 Rice 12.0 6.7 5.3 44.2 Source. De Fraiture, 2005. Second, most of the Sub-Saharan agriculture is depending on rainfall. The irrigated ratio of farmland is only less than 4 percent (60,000 hectare is irrigated out of the total 1,580,000 hectare). Irrigation is the most important pre-requisite not only for the diffusion of the new seedfertilizer technology but also for the introduction of rice and wheat itself. From the irrigated land which is less than 4 percent, half of the rice production and one third of the wheat production are at present produced in Sub-Saharan Africa as a whole. Moreover, approximately 60 percent of the irrigated land is concentrated in only three countries; South Africa, Sudan and Madagascar. Therefore, 55 percent of irrigated rice production is concentrated in Nigeria and Madagascar, and 75 percent of irrigated wheat production is concentrated in South Africa and Ethiopia (Riddle et al, 2006). Third, the share of urban population is already higher in Sub-Saharan Africa than in South Asia including India. In other words, a large-scale rural-urban migration has been started in Sub-Saharan Africa before attaining substantial increase in agricultural productivity and also before creating sufficient non-agricultural job opportunities in urban areas. Therefore the poverty of urban population is a more serious problem in Sub-Saharan Africa than in India. In addition, as the Green Revolution technology is basically labor intensive, it may not be suitable for rural SubSaharan Africa where labor is a scarce resource.

Fourth, the demand for staple food is usually different between rural and urban areas in Sub-Saharan Africa. Urban population prefers rice and wheat whereas rural people are continuously depending on traditional staple foods other than rice and wheat in general. Therefore, even if farmers 14 try to increase their staple food production there will not be much demand for it in urban areas, so that there is not much incentive for farmers to increase their traditional staple food. This is the main reason why Sub-Saharan Africa as a whole has basically been able to keep selfsufficiency in the traditional staple foods while high percentages of rice and wheat have been imported mainly for urban population (Table 2). There is not much room for increasing wheat production in Sub-Saharan Africa. However, situation is different in the case of rice. West Africa has a long history and experiences in rice production and there remains a lot of unutilized swamped land there. There is a good prospect to increase rice production in West Africa for commercial sales to urban areas (Sakurai, 2006). Summary and Conclusions In recent years India is experiencing a rapid economic growth, especially after the 1990s when it started to liberalize its economy in a full scale. However, the author emphasizes the critical importance of the preceded 1980s when Indian agricultural sector registered a high growth rate. The Green Revolution in India started in the late 1960s and with its success India attained food self-sufficiency within a decade. However, this first wave of the Green Revolution was largely confined in wheat crop and in northern India, resulting in a limited contribution to overall economic development of the country. On the contrary, the agricultural growth in the 1980s involved almost all the crops including rice and covered the whole country, it enabled to raise rural income and alleviate rural poverty substantially. Such a rise of rural India as a market for non-agricultural products and services was an important pre-requisite for the rapid economic growth based on nonagricultural sectors development in India after the 1990s. The 1980s was a critical decade for South Asia and Sub-Saharan Africa to make a great divergence in the economic development thereafter. The

implication for Sub-Saharan Africa is that raising income in rural areas through productivity growth of agricultural sector, especially the staple food sector, is essential for the success of economic development through industrialization. However, the actual situations which Sub-Saharan Africa faces at present are much more challenging, if various disadvantages are taken into consideration. Disadvantages of contemporary Sub-Saharan Africa include; diversified staple food in which rice and wheat has only a minor share, scarcity of irrigated land, labor shortage in rural areas, difference in staple food between rural and urban areas and so on. The Green Revolution which India and other Asian countries experienced in the past is much needed in Sub-Saharan Africa now for the long term economic development. It is forecasted, however, that imports of rice and wheat will continue to be increased, especially in urban areas. 15 Wheat production cannot be increased in Sub-Saharan Africa due to lack of suitable land, but in the case of rice, West Africa has a long history of its production and there are much room for increased production in a wide unutilized swamped land for sales to urban areas. If the Green Revolution will be possible in Sub-Saharan Africa in the near future, rice is the most prospective crop. References Bardhan, P.K., 1984, Land, Labor and Rural Poverty: Essays in Development Economics, Oxford: Oxford University Press. Bardhan, P.K. and A. Rudra, 1978, Interlinkage of Land, Labour and Credit Relations: An Analysis of Village Survey Data in East India, Economic and Political Weekly, Annual Number, February, 367-384. Bhaduri, A., 1973, A Study of Agricultural Backwardness under Semi-Feudalism, Economic Journal, March, 120-137. Blyn, G., 1966, Agricultural Trends in India, 1891-1947: Output, Availability and Productivity, Philadelphia: University of Pennsylvania Press. De Fraiture, C., 2005, Assessment of Potential of Food Supply and Demand Using the WaterSim Model, Colombo: International Water Management Institute (IIMI). FAO (Food and Agriculture Organization), 1995, World Agriculture: Towards 2010, Rome: FAO.

Fujita, K., 2010, Agrarian Structure Transformation in Bangladesh: Green Revolution and Its Impact, Kyoto: Kyoto University Press and Trans Pacific Press, forthcoming. Fujita, K., A. Kundu and W.M.H. Jaim, 2003, Groundwater Market and Agricultural Development in West Bengal: Perspectives from A Village Study, Japanese Journal of Rural Economics, 5, 51-65. Hayami, Y., 1997, Development Economics: From the Poverty to the Wealth of Nations, Oxford: Oxford University Press. Kahnert, F. and G. Levine, 1993, Groundwater Irrigation and the Rural Poor: Options for Development in the Gangetic Basin, Washington D.C.: World Bank. Kurosaki, T., 1999, Agriculture in India and Pakistan, 1900-95: Productivity and Crop Mix, Economic and Political Weekly, 34 (52), December 25, A160-A168. Newberry, D.M.G., 1974, Crop-Sharing Tenancy in Agriculture: A Comment, American Economic Journal, 64. National Sample Survey Organization, 2006, Level and Pattern of Consumer Expenditure, 2004-05, NSS 61 st Round (July 2004-June 2005), New Delhi. Ohno, A., 1999, Indo: Kyozou wa Tachiagarunoka? (India: The Big Elephant Will Stand Up?), In 16 Hara, Y. ed., Ajia Keizai Ron (Asian Economies), Tokyo: NTT Publishers, 381-415. Pant, N., 1992, New Trend in Indian Irrigation: Commercialisation of Ground Water, New Delhi: Ashish Publishing House. Riddle, P.J., M. Westlake and J. Burke, 2006, Demand for Products of Irrigated Agriculture in Sub-Saharan Africa, FAO Water Reports 31, Rome: FAO. Sakurai, T., 2006, Intensification of Rainfed Lowland Rice Production in West Africa: Present Status and Potential Green Revolution, The Developing Economies, Vol. XLIV, No.2, 232-251. In addition to the favorable climate conditions, there were other important socio-economic conditions for the rapid diffusion of the new agricultural technologies in north India such as Punjab; i.e. the areas were newly settled areas by medium-sized farmers after construction of the canal irrigation network in the British colonial era; and land consolidation program was successfully

implemented in the areas after independence which solved the problem of land fragmentation; and finally and most importantly, private tube-wells were introduced for irrigation in the areas which solved the problem of unreliable irrigation water distribution from the government canals. After the first wave of the Green Revolution the copping pattern was changed as follows. In the dry season (rabi season), pulses (or the mixed cropping of pulses with wheat) were substituted by wheat. And in the monsoon season (kharif season), coarse cereals such as jowar (sorghum) and bajra (pearl millet) were substituted by rice albeit the process was lagged behind the diffusion of wheat in the rabi season for several years. Double cropping of HYV rice (aman in the kharif season and boro in the rabi season) was widely expanded in the neighboring country of Bangladesh too. However, under the situation without rural electrification, tube-wells were rapidly diffused in rural Bangladesh during the 1980s. See, for example, Kahnert and Levine (1993), Pant (1992), Fujita, Kundu and Jaim (2003). See also Fujita (2010) regarding Bangladesh