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

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

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

Historical overview of planning year Event 1927 Time of rapid changes outside India. First time economic planning at the national level had started in the USSR which created a strong impression on Nehru at the time of his first visit to Moscow 1929 The all India congress committee passed a resolution stating that “in order to remove the poverty and misery of the land to ameliorate the conditions of the masses, it is essential to make revolutionary changes in the present economic and social structure of the society and to improve gross inequalities”. This was not acceptance of socialism but indicated an approval of “socialistic approach 1938 On the initiative of congress president, a conference of ministers of industries was convened in Delhi which was of the opinion that the problem of poverty and unemployment, of national defence and the economic regeneration cannot be solved without industrialization. Congress appointed a national planning committee with Pt. Jawaharlal Nehru as its chairman. The committee laid down the objectives of planning. Learning Group 6

Janata govt. declared fifth five year plan. Meanwhile the leading industrialist of India produced a plan, called the Bombay plan. India also had become plan minded. 1950 The planning commission was set up by a resolution of the government of India, to draw up a concrete plan. 1951-56 First five year plan was formulated. However the final document of this plan was published in December 1952. 1956-61 Second five year plan 1961-66 Third five year plan. 1966-69 Three annual plans. 1969-1974 Fourth five year plan. 1974-1979 Janata govt. declared fifth five year plan. 1978 Janata government ended the fifth five year plan one year earlier to its term i.e. only within four year span and introduced a rolling plan. 1980-85 Sixth plan was formed 1985-1990 Seventh five year plan started 1990-1992 Two annual plans were formed. 1992-1997 Eight five year plan started. 1997-2002 Ninth five year plan was operational during this period. 2002-2007 The tenth plan became operational Learning Group 6

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

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

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

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

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

Impact Assessment of PMGSY In Orissa Learning Group 6

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

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

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

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

Impact on Agricultural Production Indicators Overall Use of Chemical Fertilizers (% increase in average quantity of chemical fertilizer use in major crops) 10.90 Increase in Pesticide use 20.00 Change in Cropping Pattern (from food crop to cash crop) 5.43 Percentage increase in number of improved farm implements owned by farmers 31.31 Percentage change in quantum of milk sold outside the village 21.28 Increase in Farm Employment opportunities due to increase in cropping intensity (% increase in average days of employment in a year) 11.69 Increase in employment opportunities outside the village due to greater mobility 12.43 Increased accessibility to market for selling out the agricultural products Increased Reduction of transport cost of fertilizers 53.00% Reduction of distance of the agro input shops from the village in Kms 0.39 Learning Group 6

Impact on Employment Indicators Overall Average days of engagement in a year in agricultural wage employment inside the village 86.00 Increased employment opportunities in agricultural sector inside the village (% increase in average days of employment in a year) 11.69 Average days of engagement in a year in non-agricultural wage employment inside the village 99.00 Increased employment opportunities in non-agricultural sector inside the village (% increase in average days of employment in a year) 16.47 Average days of engagement in a year in agricultural wage employment outside the village Increased employment opportunities in agricultural sector outside the village (% increase in average days of employment in a year) 10.26 Average days of engagement in a year in non-agricultural wage employment outside the village 131.00 Increased employment opportunities in non-agricultural sector outside the village (% increase in average days of employment in a year) 13.91 Learning Group 6

Impact on Industry Indicators OVERALL Type of Industries located in & around the village before the road Pottery Unit, Rice Hauler (at all places) & Brick Unit & Bidi Unit in Angul. Type of industries located in & around the village after the road Percentage of increase in the industries after the road Nil Percentage of increase in the employment opportunities after the road About 5-10 percent on an average Percentage of profit in the income level in the industries in the post road scenario Marginal except brick unit where about 12 percent increase in brick cost. Learning Group 6

Impact on Health Indicators Overall Availability of Health care facilities in study villages (% increase in no of villages reporting availability of Govt Hospitals/Dispensaries & Pvt. Clinics 20.00 Percentage increase in number of delivery cases in hospital 55.00 Percentage increase in number of persons visiting hospital in case of suffering from diseases 42.86 Percentage decline in number of malaria cases reported in the village 16.00 Percentage increase in immunization of children 9.87 Percentage decline in neo natal deaths Visit of Health Workers/ANM to the study village (% increase in average no of visits/month/village 59.88 Learning Group 6

Impact on Education Indicators Overall Percentage increase in attendance of children in middle schools 4.98 Percentage increase in attendance of children in high schools 6.58 Percentage increase in attendance of children in colleges 6.06 Percentage increase in middle school pass out children taking admission in high school 10.64 Percentage increase in high school pass out children taking admission in colleges 15.91 Learning Group 6

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

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

Impact on Communication Learning Group 6

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

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

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

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

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

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

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

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