DR. I. SATYA SUNDARAMEconomist and Writer,

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My WifeSIREESHA

PREFACE TO THE FIFTH REVISED EDITION

This new edition presents the updated material and tables. Two chapters (12 and 16) havebeen deleted.

Five new chapters have been added. These are: Rural Development in the 12th Plan; OrganicFarming and Indian Agriculture; Budgetary Support to Rural Development — Recent Trends,Raising Farmers’ Income and Role of ICT in Rural India.

This edition contains a completely new bibliography.

The last Part containing countries experience has also been updated.

This updated edition would be highly useful to students and teachers of colleges and universities,and also there appearing for various competitive examinations.

February, 2019 — DR. I. SATYA SUNDARAM

PREFACE TO THE FIRST EDITION

Rural Development has been receiving increasing attention of the governments across the

world. In the Indian context, rural development assumes special significance for two important

reasons. First, about two-thirds of the population still lives in villages and there cannot be any

progress so long as rural areas remain backward. Second, the backwardness of the rural sector

would be a major impediment to the overall progress of the economy. The industrial sector cannot

think of sufficient demand for its products so long as the rural incomes are low.

Rural development does not imply setting up of major industries in rural areas. Rural development

on a sustainable basis is possible only when the rural resources are put to optimum use, enhancing

a steady growth in rural output and generating surplus income. This strategy would ensure self-

reliance in the rural population. According to Dr. Y. Nayudamma, self-reliance implies self-competence,

resourcefulness, problem-solving capability, the ability to discern and wisdom to use knowledge.

Rural development remains an uphill task due to the complexity of problems existing in the

rural sector. The rural sector requires a multi-dimensional approach to reach cost-effective solutions

to these problems.

The rural areas suffer from poor infrastructural facilities. The villages are yet to emerge as

the main centres of production activity. The proclivity is to produce goods in urban areas, even to

meet the basic needs of rural consumers. This apart, the rural population requires not one but a

few inputs and services. These have to be provided at the right time and in the right sequence. This

demands the right kind of co-ordination amongst agencies extending help to the rural sector.

It has been rightly pointed out that a purely agricultural country remains backward even in

respect of agriculture. Much of the labour force in India depends on agriculture, not because it is

remunerative but because there are no alternative employment opportunities. This is a major cause

for the backwardness reportedly seen in the Indian agricultural sector. We must opt for a type of

rural industrialisation which extends full support to the agricultural sector. A part of the labour

force now engaged in agriculture needs to be shifted to non-agricultural occupations.

The new agricultural technology is responsible for the present comfortable foodgrain position.

But the Green Revolution too has created some problems. Moreover, the first phase of the Revolution

is said to have reached the saturation point. Agricultural scientists are laying stress on its second

phase which alone can give the real boost needed for India’s agricultural sector. Irrigation has

emerged as a crucial input contributing to the success of the Revolution. The farmers no doubt

require price incentives, but their problems can be solved only when there is a steady increase in

agricultural productivity. Technology should be cost-effective and give good financial returns to

the farming community.

Given the unfavourable power structure in rural India, the benefits of the Revolution or even

the anti-poverty programmes do not reach to benefit the rural population. The workers and small

producers in India cannot put in their best in an inequitous atmosphere. Therefore, production

suffers. Also, the rural sector cannot take advantage of opportunities available so long as the

institutions are dominated by the rich.

For various reasons, particularly for lack of political will, land reforms have been neglected.

The rural population requires support in terms of assets like land to improve their income levels

and social status. Diversification of agriculture is needed to improve the plight of the agricultural

labourers. The rural artisans and other sections would benefit only when the rural economy is

diversified with stress on non-farming activities. Of course, organisation of the rural sector is

needed to put an end to all kinds of exploitation continuing in the sector for a long time.

The Government has been implementing special schemes for the benefit of the rural sector

since the early 1970s — worth mentioning are those for wage employment generation; others for

asset distribution, leading to generation of self-employment. However, studies show that these

schemes have been implemented in a perfunctory manner. The income generating capacity has

failed to register an increase and thus remains limited. The situation worsened subsequently because

of the absence of cost-effective groundwork to implement these schemes.

However, if these resources don’t exist, strategies should be worked out to generate the same

to meet the needs and demands of the rural sector. Studies relating to special schemes show irregularities

in the identification of beneficiaries and programmes. The schemes should be based on available

resources and needs. The industries being set up in rural areas must have forward and backward

linkages which alone can ensure their steady progress. Above all, the special schemes must form

an integral part of micro level planning. The stress should be on economically viable schemes

which alone can strengthen rural economy. The implementation, monitoring and evaluation stages

are crucial for the success of and financial sustainability of the rural sector.

The rural sector also requires institutional credit to take up economically viable projects. But

it needs to be noted that credit alone cannot deliver the goods. There is what is called the credit

absorption capacity of the region. This depends on the implementation of economically viable

schemes. Hence, the formulation of economic plans should precede the preparation of credit plans.

There are certain agencies like the co-operatives, regional rural banks and farmers’ service societies

which are most appropriate to serve the rural population, but their performance needs to be toned

up. Of course, cheap credit needs to be discouraged.

The rural sector can derive due benefits from development schemes only with the help of the

administration which needs to be strengthened. The panchayat raj institutions should assume their

new responsibilities in the development sphere. Of course, they should enjoy both functional and

financial autonomy.

The rural people should take active part in all stages of the planning process. At present, they

look up to the government for each and everything. This dependency syndrome needs to be dispelled.

People’s participation in the development sphere is crucial. People must be made fully aware of

the opportunities available and how to take advantage of them.

In a vast sphere like rural development, voluntary agencies play an important role in providing

infrastructure, in educating the public on development issues and opportunities available and in

curbing leakages. They see to it that the government machinery becomes more responsive to the

growing needs of the rural sector. They can tone up the rural delivery system by improving the

performance of public agencies like the public distribution system. In short, the voluntary agencies

are expected to provide the missing links in the long chain of rural reconstruction.

Concerted efforts are needed to bridge the widening gap between rhetoric and reality in the

rural sphere. Untrammelled flow of credit into the rural sector is not the answer to unemployment

and poverty problems. External assistance may be necessary to cross the Rubicon, but ultimately,

success on the rural front depends on the optimum utilisation of the available local resources.

Economic development ought to be based on individual and group initiatives.

The present book covers all the aspects of rural development in the Indian context. Suggestions

from the readers for further improvement of the book are welcome.

— DR. I. SATYA SUNDARAM

CONTENTS

PART ONE: RURAL DEVELOPMENT: AN OVERVIEW 1 – 55

1. RURAL DEVELOPMENT: NATURE AND SCOPE 3 – 6

Importance of Rural Development – Nature and Scope of Rural Development – Objectivesof Rural Development – Future Task.

2. APPROACHES TO RURAL DEVELOPMENT 7 – 12

Community Development Programme – Intensive Agricultural District Programme – GrowthCentre Strategy – Concept of ‘Integration’ – Micro Level Planning.

3. GANDHIAN APPROACH TO RURAL DEVELOPMENT 13 – 16

Labour and Merchanisation – Village Economy – Rural Industrialisation – Decentralisation– Conclusion.

4. THE POLITICAL ECONOMY OF RURAL POVERTY 17 – 24

Poverty Line – Incidence of Rural Poverty – Rural Poverty During Reforms – Salient Featuresof Rural Poverty – Profile of Rural Poor – Strategic Measures Needed.

5. RURAL UNEMPLOYMENT IN INDIA 25 – 32

Characteristics of Rural Employment – Incidence of Rural Unemployment – Measures Neededfor Employment Generation – Skill Promotion.

6. RURAL MIGRATION 33 – 36

Nature of Rural Migration – Adverse Effects – Measures Needed.

7. RURAL DEVELOPMENT AND THE EIGHTH PLAN (1992-97) 37 – 41

Plan Outlay on Rural Development – Employment Generation – Land Reforms – DevelopmentAdministration – Voluntary Sector – Rural Energy – Critical Appraisal.

8. RURAL DEVELOPMENT IN THE NINTH PLAN (1997-2002) 42 – 45

Indian Agriculture – Rural Poverty – Rural Development Programmes.

9. RURAL DEVELOPMENT IN THE TENTH PLAN (2002-07) 46 – 49

Agriculture and Irrigation – The New Schemes – National Rural Health Mission (NRHM) –Jawaharlal Nehru National Urban Renewal Mission (JLNNURM) – National Food for WorkProgramme (NFWP) – Union Budget 2005-06 – Union Budget 2006-07.

10. RURAL DEVELOPMENT IN THE ELEVENTH PLAN (2007-12) 50 – 52

Agriculture and Rural Development in the 11th Plan – The Union Budget 2010-11

11. RURAL DEVELOPMENT IN THE TWELFTH PLAN (2012-17) 53 – 55

Growth of Agriculture – Employment Situation – Skill Promotion – Conclusion.

PART TWO: AGRICULTURE AND ALLIED PROGRAMMES 57 – 132

12. AGRICULTURE AND RURAL ECONOMY 59 – 67

Agriculture and Economic Development – Agriculture and Indian Economy – Problems FacingIndian Agriculture – Strengthening Agricultural Sector.

13. THE GREEN REVOLUTION 68 – 76

Aspects of Green Revolution – Green Revolution: Some Problems – Negative Aspects ofMechanisation – Strengthening New Agricultural Technology.

14. FOOD SECURITY IN INDIA 77 – 80

Status of Food Security in India – Measures to Strengthen Food Security – The Public DistributionSystem.

15. IRRIGATION AND INDIAN AGRICULTURE 81 – 88

Importance of Irrigation – Progress of Irrrigation – Various Systems of Irrigation – IrrigationManagement – Financing Irrigation – Strengthening Irrigation Schemes.

16. ORGANIC FARMING AND INDIAN AGRICULURE 89 – 91

Nature and Scope – The Benefits – Some Problems – Promoting Organic Farming

17. AGRICULTURAL PRICE POLICY OF INDIA 92 – 103

Importance of Agricultural Price Policy – Trends in Agricultural Prices and Some Issues –Minimum Support Price (MSP) – MSP – Rabi, 2018 – Poor Procurement – NITI Aayog’sSuggestions – Grain Stocks and Off-take – The Terms of Trade – Some Policy Issues –Trends in MSP.

18. FOREST RESOURCES OF INDIA 104 – 113

Importance of Forestry – Decline of Forests – Social Forestry – Forest Policy and DraftForest Bill, 1994 – Joint Forest Management – Measures Needed.

19. RURAL INDUSTRIALISATION IN INDIA 114 – 122

MSMEs: Major Problems – A Rational Approach – Institutional Support – Future Task.

20. TECHNOLOGY FOR RURAL DEVELOPMENT 123 – 132

Importance of Rural Technology – Plastics and Agriculture – Biogas Technology – ImprovedChulhas – Improved Bullock Cart – Technology for Rural Women – Rural Technology: SomeProblems.

PART III: RURAL POWER STRUCTURE 133 – 181

21. BUDGETARY SUPPORT TO RURAL DEVELOPMENT: RECENT TRENDS 135 – 138

Union Budget 2011-12 – Union Budget 2012-13 – Union Budget 2013-14 – Union Budget2016-17 – Union Budget 2017-18 – Union Budget 2018-19.

22. RAISING FARMERS’ INCOMES 139 – 142

Plight of Farmers – Low Income – Organic Farming – Limitations of NSP – Crop Insurance– Improving Marketing – Low Yields – Climate Change – Measures Needed – Farm Diversification.

23. LAND REFORMS IN INDIA 143 – 160

Rural Power Structure – Importance of Land Reforms – Ceiling on Land Holdings – Distributionof Surplus Land – Effects on Production – Land Ceiling Programmes: Limited Success –Tenancy Reforms – Aspects of Tenancy Reforms – Limitations of Tenancy Legislation –Better Deal for the Tenants – Consolidation of Holdings – Co-operative Farming – LandReform: The Task Ahead.

24. PLIGHT OF AGRICULTURAL LABOURERS 161 – 169

Predominant Workforce – Conditions of Agricultural Labourers – Measures to Improve Statusof Agricultural Labourers – Minimum Wage Legislation – Abolition of Bonded Labour System– Diversification of Rural Economy – Organising the Rural Poor.

25. CONDITIONS OF RURAL ARTISANS 170 – 176

Plight of Rural Artisans – Problems of Rural Artisans – Suggestions to Improve Artisans’Conditions.

26. ORGANISING THE RURAL POOR 177 – 181

Plight of the Unorganised Workforce – Need for Unionisation of Workforce – Problems inOrganising the Unorganised – Measures Needed.

PART FOUR: SPECIAL SCHEMES 183 – 267

27. RATIONALE OF SPECIAL SCHEMES 185 – 191

Stress on Special Schemes – Limitations of Special Schemes – Strengthening Special Schemes.

28. EMPLOYMENT GENERATION PROGRAMMES 192 – 216

Crash Scheme for Rural Employment – Pilot Intensive Rural Employment Projects – Antyodaya– Employment Guarantee Scheme – Food for Work Programme – National Rural EmploymentProgramme – Rural Landless Employment Guarantee Programme – Jawahar Rozgar Yojana– JRY: Salient Features – JRY: Targets and Achievements – JRY: Major Problems – JawaharGram Samridhi Yojana (JASY) – Salient Features of JGSY – Sampoorna Grameen RozgarYojana (SGRY).

29. NATIONAL RURAL EMPLOYMENT GUARANTEE PROGRAMME (NREGP) 217 – 221

The Background – Salient Features – The Approach – The Work – Implementing Agencies –Wages – Other Facilities – Funding – Some Problems – Measures Needed – MGNREGS.

30. INTEGRATED RURAL DEVELOPMENT PROGRAMME 222 – 237

SFDA/MFALDA Programmes – IRDP: Salient Features – IRDP: Targets and Achievements– IRDP: Major Problems – Strengthening IRDP.

31. SWARNAJAYANTI GRAM SWAROZGAR YOJANA (SGSY) 238 – 242

Salient Features of SGSY – Progress of SGSY – A Critical Appraisal of SGSY – NationalRural Livelihood Mission (NRLM).

32. TRAINING RURAL YOUTH FOR SELF-EMPLOYMENT (TRYSEM) 243 – 249

TRYSEM: Nature and Scope – TRYSEM: Targets and Achievements – TRYSEM: BasicProblems – Strengthening TRYSEM.

33. TRIBAL DEVELOPMENT PROGRAMMES 250 – 255

Economically and Socially Backward – Major Problems – Measures Needed – The ScheduledTribes Bill, 2005 – Forests Rights Bill, 2006.

34. DEVELOPMENT OF WOMEN AND CHILDREN IN RURAL AREAS (DWCRA) 256 – 261

DWCRA: Nature and Scope – DWCRA: Targets and Achievements – DWCRA: Basic Problems– Strengthening DWCRA.

35. IMPLEMENTATION, MONITORING AND EVALUATION OF RURALDEVELOPMENT PROGRAMMES 262 – 267

Implementation – Monitoring – Evaluation – Measures Needed.

PART FIVE: RURAL BANKING IN INDIA 269 – 370

36. RURAL INDEBTEDNESS AND RURAL CREDIT 271 – 281

Magnitude of Rural Credit – The Situation Assessment Survey (SAS), 2003 – InstitutionalCredit Gap – Causes of Rural Indebtedness – Consequences of Rural Indebtedness – IdealCredit System – Debt Relief and Regulation of Money-lending Acts – Loan Waiver Scheme– Multi-Agency Approach to Rural Credit.

37. THE CO-OPERATIVES 282 – 295

The Cooperative Banks – PACS – DCCBs – SCBs – SCARDBs and PSARDBs – Advantagesof Co-operative Institutions – Problems of the Co-operative Structure – StrengtheningCo-operative Structure – The Land Development Banks – Management of LDBs – Progressof LDBs – Problems of LDBs – Measures to Strengthen LDBs – Farmers’ Service Societies– Objectives of FSS.

38. THE COMMERCIAL BANKS 296 – 306

Progress of Commercial Banks – Recent Trends – Priority Sector Lending – CommercialBanks: Some Problems – Coordination between Cooperatives and Commercial Banks – Measuresto Strengthen Commercial Banks – Appendix: Pradhan Mantri Jan-Dhan Yojana (PMJDY)

39. THE DIFFERENTIAL INTEREST RATE SCHEME 307 – 312

Recent Trends – DIR Scheme: Some Problems – Measures to Strengthen DIR Scheme.

40. THE LEAD BANK SCHEME 313 – 323

Scope and Objectives – District Credit Plans – Block Credit Plans – Lead Bank Scheme:Some Problems – Measures to Improve Credit Plans.

41. SERVICE AREA APPROACH 324 – 328

Major Problems – Strengthening Service Area Approach.

42. REGIONAL RURAL BANKS 329 – 342

Special Position of RRBs – Functions of RRBs – Responsibility of Sponsor Bank – Progressof RRBs – RRBs: Recent Trends – Major Problems of RRBs – Measures to Improve thePerformance of RRBs.

43. NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT 343 – 352

Functions of NABARD – Schemes and Patterns of NABARD – Progress of NABARD –Major Problems – New Measures – NABARD’s Progress by 2006 – NABARD’s Progress by2014.

44. TECHNIQUES OF LENDING FOR AGRICULTURE 353 – 358

Crop Loan Scheme – Essential Features of Crop Loan Scheme – Drawbacks of the CropLoan System – Area Approach to Agricultural Lending – Group Loaning – Problems of GroupLoaning – Project Approach – Consortium Advances – Agricultural Credit Pass Book – CreditSupervision.

45. THE PROBLEM OF OVERDUES 359 – 364

Incidence of Overdues – Causes of Overdues – Measures Needed to Curb Overdues.

46. MICROFINANCE IN INDIA 365 – 370

Bangladesh Grameen Bank – Self-help Groups – Microfinance in India – Microfinance:Some Problems.

PART SIX: RURAL DELIVERY SYSTEM 371 – 430

47. AGRICULTURAL MARKETING IN INDIA 373 – 385

Importance of Marketing – Present System of Agricultural Marketing – Defects of AgriculturalMarketing – Co-operative Marketing – Suggestions for Imnproving Co-operative MarketingSystem – Measures to Improve Agricultural Marketing – The National Agricultural Market(NAM).

48. RURAL DEVELOPMENT ADMINISTRATION AND PANCHAYATI RAJINSTITUTIONS 386 – 395

The Panchayati Raj (PR) System – Functions of the PR System – Sources of Income forPanchayats – Merits of PR System – Weaknesses of PR System – Strengthening the PRSystem – Rural Development Administration.

49. PEOPLE'S PARTICIPATION IN RURAL DEVELOPMENT 396 – 400

Importance of People’s Participation – People’s Participation: Some Problems – Measuresto Strengthen People’s Participation.

50. RURAL DEVELOPMENT: ROLE OF VOLUNTARY AGENCIES 401 – 408

Importance and Changing Role – Superiority of Voluntary Agencies – Limitations of Voluntarism– Strengthening Voluntary Agencies.

51. PUBLIC DISTRIBUTION SYSTEM IN THE RURAL CONTEXT 409 – 413

Rural PDS: Some Problems – Measures to Strengthen Rural PDS.

52. BASIC NEEDS OF RURAL INDIA 414 – 424

Rural Housing – Present Position – Measures Needed – Rural Health – Present Position –Measures Needed – Rural Education – Present Position – Measures Needed – Rural WaterSupply – Present Position – Measures Needed – Rural Roads – Present Position – MeasuresNeeded – Conclusion.

53. COMMUNICATION FOR RURAL DEVELOPMENT 425 – 427

Importance of Communication – Mechanisms of Communication – Some Problems – MeasuresNeeded.

54. ROLE OF ICT IN RURAL INDIA 428 – 430

Importance of ICT – Women Empowerment and ICT – Rural Telephony – Community Radio.

PART SEVEN: RURAL DEVELOPMENT:EXPERIENCES OF SELECT COUNTRIES 431 – 466

55. RURAL DEVELOPMENT IN CHINA 433 – 442

Chinese Economy – Chinese Communes – Rural Health in China – Chinese Agriculture –Chinese Rural Industrialisation – Conclusion – Chinese Rural Economy: Recent Trends.

56. RURAL DEVELOPMENT IN PAKISTAN 443 – 447

The Economy – Agriculture in Pakistan – Rural Industrialisation – Conclusion.

57. RURAL DEVELOPMENT IN BANGLADESH 448 – 455

Agriculture in Bangladesh – Rural Industrialisation – Bangladesh Grameen Bank – The ComillaModel – Rural Development Programmes – Conclusion.

58. RURAL DEVELOPMENT IN SRI LANKA 456 – 458

The Economy – Agriculture in Sri Lanka – Poverty Alleviation Programmes – Conclusion.

59. RURAL DEVELOPMENT IN THE PHILIPPINES 459 – 462

The Economy – Agriculture in the Philippines – Rural Development Programmes – Conclusion.

60. RURAL DEVELOPMENT IN TANZANIA 463 – 466

Approach to Rural Development – Agriculture in Tanzania – Rural Industry – Conclusion.

SELECT BIBLIOGRAPHY 467– 470

RURAL DEVELOPMENT:AN OVERVIEW

PART ONE

1

Rural development involves raising the socio-economic status of the rural population on asustainable basis through optimum utilisation of local resources, both natural and human. Whileexternal help is necessary and appreciated, rural development can be achieved only when the ruralpeople actively participate in the development process.

The essence of development is not in ‘providing’ but in ‘promoting’ the rural sector. Therural population should know how to sustain itself financially and gain economic independence.Therefore, the stress of rural development should be on self-reliance. Also, rural developmentshould result in greater access to the rural population to goods and services.

Importance of Rural Development

The emphasis on Rural Development (RD) in most developing countries is understandable.The majority of the population lives in the rural areas. As such, their backwardness would beretarding growth in other sectors and in the economy as a whole. The growth of towns and cities(urbanisation) will be possible; it is backed by prosperity in rural areas. Rural backwardness is themajor cause for the falling demand (recession) for most products.

The stress on rural development is also due to many constraints facing the rural areas, whichgenerally suffer from inadequate infrastructural facilities and technological advancements. Therural areas are not well placed in terms of even minimum needs like safe drinking water, primaryhealth and road transport. This apart, the rural population suffers from indigence, ignorance andilliteracy. Their traditional outlook towards development has been preventing them from takingfull advantage of the incentives offered by the Government. But with substantial exposure tomedia, both electronic and print media, the rural sector is moving towards self-reliance and economicindependence. Also, the ownership of land and other assets has been heavily concentrated in thehands of a few. It is precisely for this reason that the benefits of rural development programmesfailed to reach the rural population targeted for these benefits to the extent expected.

RuralDevelopment:Nature and Scope

Chapter

1

3

4 ----------------------------------------------------------------------------------------------- RURAL DEVELOPMENT

It is true that the process of economic development involves a shift from agricultural andallied activities to non-agricultural activities. It is, however, erroneous to believe that the increasein non-agricultural activity should be confined to towns and cities. After all, villages with growingnon-agricultural activity will without doubt, become towns in course of time. What needs to bedone is that non-agricultural activities in the rural areas need to be focussed upon and strengthenedon priority basis.

The rural areas remain impoverished with remunerative economic activities initiated to becarried out only in towns and cities. Thus, even an essential commodity like soap is being producedin urban areas. The argument generally advanced for this is that rural areas lack the basic infrastructuralfacilities for setting up industrial units. But, it is conveniently forgotten that such facilities wouldbe available in rural areas only when these areas become centres of growing economic activity. Itis not for nothing that Gandhiji laid stress on village development.

So long as rural areas are deprived of minimum facilities, there will be rural exodus. Migrationof rural people to urban areas has serious implications proving to be of burden on the availableresources and facilities in urban areas. It is estimated that urban population is growing at 4% peryear and 2% of the increase in urban population per year is reportedly caused by migration fromrural areas.

The administration in the urban areas has been finding it difficult to provide employment tothe rural labour force migrating to towns and cities. According to Michael Todaro, “Migration inexcess of job opportunities is both a symptom and a contributing factor to third world underdevelopment.”The social consequences of rural exodus like growing slums are too serious to be ignored by theurban administration authorities.

Another disturbing trend in the rural sector is that the surpluses generated in the rural areasare being invested in urban areas for various reasons. While the Government has stepped up itsinvestment in rural areas, the rural surpluses are diverted to urban areas. When rural services areheavily subsidised by the Government, the rural rich have an obligation to step up their investmentin rural areas.

Nature and Scope of Rural DevelopmentOver the years, rural development has emerged as “a strategy designed to improve the economic

and social life of a specific group of people — the rural poor. It involves extending the benefits ofdevelopment to the rural population who seek a livelihood in the rural areas.”

Rural development is three dimensional in nature. As a method, it seeks people’s involvementin all programmes. As a process, it seeks to modernise, through the application of science andtechnology, the traditionally-oriented rural cultures. Its major objective is to bring about improvementin the quality of life of the rural people.

‘Rural development’ denotes overall development of rural areas with a view to improvingthe quality of life of the rural people. The concept is comprehensive and multi-dimensional innature. It encompasses development of agricultural and allied activities, cottage and small-scaleindustries, traditional crafts, socio-economic infrastructure, rural manpower and improvement incommunity services and facilities.

Rural development covers, besides agricultural development, a comprehensive set of activities,pertaining to all aspects of rural economy. It confers benefits on a number of classes like cultivators,landless labour and rural artisans.

RURAL DEVELOPMENT: NATURE AND SCOPE ---------------------------------------------------------------------- 5

Agriculture, in its broad sense, itself is very vast. It covers activities like horticulture, irrigation,land development, soil and water conservation, animal husbandry, dairying, poultry, pig-farming,fishery, handloom and other village industries, social forestry and setting up of agro-based industriesand forest-based industries.

But rural development which is much more than agricultural development, ought to take intoaccount the existing local and area-wise resources and complementary links among them. Thereare various classes in rural India and sometimes the relations among them may be conflicting.These conflicts have to be resolved.

Rural development requires a vast infrastructure. Provision of this is no easy task, because ithas to be undertaken by the Government. Private investment in this area has been meagre andcontinues to be so. But the trend of meagre investments in the rural sector is gradually changing interms of economic sustenance. However, evolving an appropriate technology for rural developmentis no easy task. Such a technology has to simultaneously achieve the twin objectives of raisinggrowth rates and stepping up opportunities of employment. The setting up of appropriate institutionsand co-ordinating their activities are crucial to any rural development strategy. The potential ofself-reliance in rural areas needs to be exploited in a planned manner.

A single approach to rural development would not be effective. In fact, rural development isthe product of interaction between various physical, technological, economic, socio-cultural, institutionaland environmental factors. Indeed, the rural sector should experience the required changes so thatit can join the mainstream of national development and contribute its share for economic development.It has been rightly said, “In the end, however, rural development should not be seen as a packageof specific needs but as a transformation of rural life and conditions.”

Objectives of Rural DevelopmentRural development programmes, in the Indian context, have aimed at achieving a number of

objectives. These include:

(i) Changing the attitude of the rural people towards development/transformation of thevillage community;

(ii) Promotion of democratic leadership at the grassroots level by setting up local self-governments;

(iii) Provision of basic needs such as drinking water, health care, better sanitation, housingand employment;

(iv) Development of both farming and non-farming activities so as to generate gainful employmentwithout adversely affecting the environment;

(v) Improving infrastructural facilities in villages, particularly transport and communicationfacilities and

(vi) Ensuring a tension-free life for the rural population by promoting communal harmonyand unity, levels of literacy, education and cultural activities.

Rural development should have the following major objectives: (i) full employment of labourand physical resources, (ii) setting up of agro-industrial complexes, (iii) laying down minimumstandards of productivity or efficiency for those owning or using precious resources, (iv) minimumstandards of performance by public agencies by making them accountable to the local people and(v) creating a scientific temper which implies a changing of the mind and old habits of thought andaction.

6 ----------------------------------------------------------------------------------------------- RURAL DEVELOPMENT

According to ESCAP (The Economic and Social Commission for Asia and Pacific), the criterionfor rural development involves: (i) drawing the entire rural labour force into the mainstream ofeconomic activity; (ii) realising the creative energies of the rural people, (iii) checking the drift ofthe rural population to cities, (iv) enhancing participation of women and youth in the rural developmentprocess, (v) improving the quality of life through integration between development and environmentand (vi) the all-round development of the rural population by tapping the abundant manpower.

Rural development involves generating employment opportunities for the rural people sothat they are able to meet their basic needs and ultimately become major agents of economicprogress and social change. A climate has to be created which enables the rural poor to realisetheir full potentialities to attain a higher quality of life with economic security to sustain themselves.This alone can prevent rural exodus.

Future TaskRural development is a complex process. It can, therefore, be achieved only through concerted

efforts on various fronts. It is rightly said, “It seems that of major weak links in rural developmentplanning are absence of total approach at the strategy level, lack of co-ordinated planning at theprogramme level and weak planning component of individual programmes.”

Rural development programmes cannot be successful without adequate regional planning,strong central co-ordination, effective local level organisation and people’s active participation atthe planning and implementation stages.

Even well-conceived rural development schemes have run into rough weather because ofinefficiency and corruption at various levels which are again attributed to “the absence of properaccountability and deterring punishment for failures.”

The rural population is said to be coping with a dependency syndrome, forcing them to lookup to the Government for financial help. While external help is necessary and desirable, the initiativefor developing areas should come from the rural people themselves. It may be necessary to formself-help groups. These have to be linked with formal financial institutions before chalking outlocation-specific development schemes in the rural sector.

Rural exodus could be arrested through a wider dispersal of industries which would generatefinancial returns for the development of the rural sector. This indicates that the feasibility of settingup of economically viable industries is important before investing in the rural sector. There is,however, a strong case for intensifying non-agricultural activities in rural areas in the servicesector as much as in manufacturing. The tendency towards ‘rurbanisation’ (urbanisation of ruralareas) is quite welcome. The latest NSS data indicates that non-agricultural activity in the ruralareas is on the rise. If this trend is strengthened, it would be easy to convert villages into smalltowns.

Rural development can be possible if only there is proper balance between service-orientedprogrammes and development-oriented and self-reliant centred programmes. The importance attachedto service-oriented schemes, besides retarding rural development, has also resulted in the wastageof precious resources.