Rural Economic Environment & Policy

1. Trend Analysis of Five Year Plans Rural Economic Environment & Policy Learning Group 6

2. Rural development in India • In ancient times, the rural people in India were organized into self-sufficient, hard working, cooperative, happy village republics. • Village system utterly destroyed during the British regime. • Independent India has pledged to establish a socialistic pattern of society through planned development • Rural development, therefore occupies priority in the agenda for rural development in India for more reasons than one. Learning Group 6

3. POWERLESS NESS ISOLATION VULNERABI LITY POVERTY PHYSICAL WEAKNESS Deprivation Trap Source: Rural Development by Robert Chambers Learning Group 6

4. Historical overview of planning Learning Group 6

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6. Agriculture Ist Plan to Vth Plan • Share of agriculture and allied sectors varied from 11.3 % to 14.9 % VI th Plan to XthPlan • Share of agriculture and allied sectors varied between 4.9 per cent and 5.2 per cent Learning Group 6

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10. First Five Year Plan (1951-56): • Overall development, particularly of rural communities. For this purpose, the Community Development Programme (CDP) was launched. Second Five Year Plan (1956-61): • Increase of 25% in the national income • Expansion of employment opportunities • Reduction in inequality. Third Five Year Plan (1961-66): • Increase the national income rapidly achieve self-sufficiency in food grains and increase agricultural production Learning Group 6

11. AnnualPlans (1966-69): • Intensive Agricultural District Programme. • This package programme brought the so called Green Revolution. Fourth Five Year Plan (1969-74): • accelerating the tempo of development • reducing fluctuations in agricultural production • safeguarding uncertainties of foreign aids. Fifth Five Year Plan (1974-79): • This plan launched a national programme of minimum needs, for providing a minimum level of social consumption for different areas and sections of the community based on the predetermined criteria of uniformity and equality Learning Group 6

12. Sixth Five Year Plan (1980-85): • Removal of Poverty • Strengthening infrastructure for both agriculture and industry Seventh Five Year Plan (1985-90): • The basic tenets of this plan were growth, modernisation, self-reliance and social justice. Annual Plans (1990-92): • Maximization of employment and • Social transformation. Eighth Five Year Plan (1992-97): • Structural adjustment policies were important. • Several liberalization measures were announced • Private sector was assigned important role in the development Learning Group 6

13. Ninth Five Year Plan (1997-2002): • Sustainable development of the economy and society. • Controlling the growth rate of population, empowerment of women and socially disadvantaged groups. Tenth Five Year Plan (2002-07): • Reduction of poverty ratio by 5 per cent points by 2007. • Providing gainful employment to the labour force Eleventh Five Year Plan (2007-12): • The United Progressive Alliance government issued a paper in the eleventh plan titled "Towards faster and more inclusive growth." Learning Group 6

14. Impact Assessment of PMGSY In Orissa Learning Group 6

15. Introduction • Started in 2000. • 100% centrally sponsored scheme. • Providing all India connectivity to all the villages by 2009 to all habitations with a population of 1000 or more in the plains and of 500 or more in the hilly, desert and tribal areas. • Educational, economic, and social backwardness. • This further led to poor political participation, • Failure to avail health care facilities coupled up with lack of awareness, access to basic & utility services and • Miserable situation and poverty in those areas. Learning Group 6

16. Impact Assessment MORD listed out five districts- -Angul -Balasore -Puri -Sambalpur & -Rayagada Learning Group 6

17. To assess the status of PMGSY in the state and find out whether or not there has been any perceptible change in the quality of life of the people due to the construction of road under PMGSY • To find out to what extent the selection of roads have been correctly done and to what extent people's participation/involvement have been guaranteed at all stages of the road construction (from selection till the completion of the road construction). • To assess and find out any operational lag in the road selection & construction process. • To suggest on the basis of the key findings of the assessment, risk factors involved in the process of construction of PMGSY roads and some possible strategies to ensure timely completion of the roads so as to meet the set objectives underlying PMGSY. Learning Group 6

18. Profile of the Area and People under Study • Demographic Profile • Workforce Participation • House Type • Area under cultivation • Access to Electricity • Availability to educational facility • Availability of Health facility • Availability of credit cooperatives • Access to administrative facilities • Availability of communication facility Learning Group 6

19. Impact on Agricultural Production Learning Group 6

20. Impact on Employment Learning Group 6

21. Impact on Industry Learning Group 6

22. Impact on Health Learning Group 6

23. Impact on Education Learning Group 6

24. Impact on Social Aspects • There has been considerable increase in the number of visits by the health workers and Village Level Worker (VLW) to the villages after the construction of the roads. • Also, there is improvement in Government Programs/Services due to the construction of road under PMGSY. Example - increase in the health camps. • There has been an increase in the number of agricultural demonstrations in the post road period. Learning Group 6

25. Impact on Transport Facilities & Accessibility • All the villages (18) located in the 3 districts are able to be commuted throughout the year after the construction of the roads. Learning Group 6

26. Impact on Communication Learning Group 6

27. Suggestions • Implement the road construction activities through the NGOs, R & D Department being the nodal agency which will ensure employment opportunity to the local people. • No provision of funds for the maintenance of the roads constructed under PMGSY and in order to ensure their maintenance, to make budgetary provision & place funds either with the Zila Parishad or with the Panchayats for maintenance of PMGSY roads. • Wrong selection of roads. • These are still early days of PMGSY roads, since only very small numbers of such roads have been completed and those which are completed are only recently constructed. Learning Group 6

28. Rapid Framework Model Political Context • The key policy actors are bureaucrats, planning commission members- reputed persons in the society. • There is certainly a demand for research and new ideas among policymakers because the old ideas have run out of steam. We need fresh new ideas to breathe new life into it. • Source of resistance is because of the weak linkage between the stakeholders & policymakers • Policy making is a long term process involving people all walks of life including all stakeholders • Perhaps it provides immense opportunity to toy with new ideas and launch it on pilot basis before full fledge launch Learning Group 6

29. Rapid Framework Model Evidence • The current theory is also as a result of remarkable difference between announcement, disbursal of funds and execution of the schemes. • All the rural development schemes were very promising. They could have brought sea changes in the rural landscapes but unfortunately it did not happen as planned. • The five year plans were mostly focused on short term approach and focused on poverty elimination through income enhancement through temporary measures. • Several schemes launched by the government resulted in the remarkable progress of the areas in isolated instances. • A combination of Top-down and Bottom up approach should be followed to satisfy the policy makers. Learning Group 6

30. Rapid Framework Model Links • Key stakeholders: Farmers, landless labourers, people below poverty line, artisans, policy makers, central & state government, administrative mechanism, institutions, planning commission etc. • Links & networks: Right to Information Act, Delivery mechanism through official channels, farmers association, government schemes, institutional mechanisms, state & district administration. • Influence of Intermediaries: Yes, they all are influential in their own ways. The rural people are beneficiary to these schemes. Learning Group 6

31. Rapid Framework Model External Influences • International actors: World Bank, International Monetary Funds, Asian Development Banks, Ford Foundation, External Donor agencies, Grants from the develop world. • These international actors have great influence on the policy making process and very often they modify these policies to suit them. • Aid Priorities: Poverty elimination, improvement in infrastructure facilities, education, rural water supply & sanitation, health, hygiene & family welfare etc. • Research Priority: The focus has been shifting in this case from the philanthropic activity to rights based approach. They loans are generally disbursed in the areas which produces sustainable livelihood opportunity and with repayment capacity within a specified period of time. Learning Group 6

32. Conclusions • FYP is a grand plan to achieve faster growth & overall development of the people. • It involves best brain and expertise involving all the key stakeholders related to the given field. • The entire planning process- conceptualization, allocation of funds and implementation of the schemes involve great deal of expertise, dedication and innovation to make it fool proof to reach the maximum target beneficiary in order to achieve the defined objective. Learning Group 6

33. Conclusions • The FYP has contributed to the overall development of the society and in the same way rural development planning has touched the lives of millions of people living in rural areas. • Despite all criticism about the FYP, we found that there is nothing wrong with the planning process, but there are some issues with the implementation of these plans. • Perhaps FYP is an unique initiative of its own kind in the world in order to achieve the desired goals by the government of India. Learning Group 6

34. Thank You! Ajai Kumar Tiwari Roll No.-06 Dhirendra Pratap Singh Roll No.-13 Nishi Kalpana Pandey Roll No.-26 Pankaj Sharma Roll No.-27 Rohit Upendra Arya Roll No.-40 Subhodip Ganguli Roll No.-53 Sweta Sharma Roll No.-54 Learning Group 6