RURAL DEVELOPMENT

PRESENDTED BY-SRI NATH SHUKLA,AJAY YADAV

SEC -A (3rd SEM MBA)

G.L.BAJAJ INSITITUTE GR.NOIDA

RURAL DEVELOPMENT

CONTENTS

Introduction Evolution of rural development Characteristics of rural development Growth for rural development in India Challenges in rural development Strategies to capture rural market Some noteworthy success stories

Rural development is a strategy designed to improve the economic and social life of rural poor.

It is a process, which aims at improving the well being and self realization of people living outside the urbanized areas through collective process.

Rural Development is all about bringing change among rural community from the traditional way of living to progressive way of living. It is also expressed as a movement for progress.

INTRODUCTION

The United Nations defines Rural Development as:

“Rural Development is a process of change, by which the efforts of the people themselves are

united, those of government authorities to improve their economic, social and cultural

conditions of communities in to the life of the nation and to enable them to contribute fully to

national programme.”

EVOLUTIONPHASE ORIGIN FUNCTION MAJOR

PRODUCTSOURCE MARKET

DESTINATION MARKET

Phase I Before mid1960(From independence to Green revolution)

Agricultural marketing

Agricultural produce

Rural Urban

Phase II Mid sixties(Green revolution to Pre-liberalization period)

Marketing of agricultural inputs

Agricultural inputs

Urban Rural

Phase III Mid nineties(Post-liberalization period in 20th century)

Rural marketing

Consumables and durables for consumption and production

Urban and rural

Rural

Phase IV 21st century Developmental marketing

All products and services

Urban and rural

Urban and rural

It is a two-way marketing process wherein:

• Urban to rural - Major part of rural development. Includes transactions of urban marketers who sell their goods and services in rural areas pesticides, fertilizers, FMCG products, tractors, bicycles, consumer durables, etc.

• Rural to urban - Basically falls under agricultural marketing. A rural producer seeks to sell his produce in urban market like seeds, fruits and vegetables, forest produce, spices, milk and related products, etc.

• Rural to rural - Includes the activities that take place between two villages in close proximity to each other like agricultural tools, handicrafts, dress materials, bullock carts, etc.

It is more developmental than transactional as its nature is more socio-cultural and economic as compared to the latter's commercial nature.

The word ‘rural’ is so much associated with agriculture and farmers that rural marketing is often confused with agricultural marketing but it should not be so as the latter is only a part of rural marketing.

Characteristics of Rural Market Large population

A/c to 2001 census, rural population constitutes about 73% of the Indian population.

Year Rural Population

In 1901 89 per cent

In 1951 83 percent

In 1971 80 percent

In 1981 76 per cent

In 1991 74 per cent

In 2001 73 per cent

Occupation Pattern1. Agriculture and related activities are the major source of

income for majority of the rural population.

2. More than 60% of rural income is from agriculture sector.

3. In the event of crop failure, the income of the rural masses is directly affected.

Large, diverse and scattered market1. Though large, the rural market is geographically scattered.

There may be less number of shops available to market products.

2. Diverse and heterogeneous market in terms of religious, linguistic, social and cultural factors.

3. About 700 million Indians live in 6,38,365 villages across India.

Socio-economic position1. Majority of rural population have low purchasing power and

per capita income.

2. More than 60% population has income less than 25000 rupees.

3. About 14% population has income greater than 50000 rupees.

4. Low disposable income.

Low literacy level It is estimated that rural India has a literacy level of 36% as

compared to 62% in the urban areas.

Low standard of living Low income, low purchasing power, overall social and

economic backwardness lead to low standard of living. In general a rural consumer spends less on non-food items.

Inadequate infrastructure facilities• Infrastructure facilities like roads, warehouses, and

communication system are inadequate in rural areas.

• About 20% of the six lakh villages are without telephone facility even today.

• About 50% of the markets are not connected by road. Most of the roads are kachha and become unusable during rainy season.

Traditional outlook• Villages develop slowly and have a traditional outlook.

• They accept changes gradually.

Distance• Villages nearer to towns have elements of the urban life.

Interior villages are more traditional.

Diverse socio-economic background Due to dispersion of geographical areas and uneven land

fertility, rural people have diverse socio-economic background.

Conservative lifestyle Lifestyle bounded by tradition, culture, religion and

community.

Media reach• The media reach in rural household is low.

• Statistics indicates that the reach of Print media is 10%, followed by TV 31%, Radio 32% and Cinema 36%.

Medical facilities Medical facilities are inadequate and the villagers have to

travel long distances for getting medical treatment.

Identification of Rural Producer Organization

• Principal actors of Rural areas

• Characteristics of RPOs

• Identification of needs and to strengthen the capacities of RPOs

Principal Actors of Rural Areas

Private economic agents including rural producers, firms and other economic organizations

Formal / informal community based organizations :cultural and religious groups, ad hoc political and social welfare oriented groups

NGOs; Local government

Features of RPOs• RPOs belong to the private sector.

• Emerged in different ways.

• It has multiple functions-Economic, Social, Representation, Information sharing, Co-ordination

• Produce and manage different types of goods.

• They are multipurpose-agriculture, processing, marketing & health,education.

• It operates at micro and macro level.

Other Features of RPOs• They encompass diverse social and

economic categories of rural populations-agri business, small scale farms.

• They are organized in different ways and are recognized to varying degrees-broad range of activities

• They evolve over time –At broader range-public goods. At Narrow range-health care, transport, access to land.

Features of Rural Development• RD is basically a mandate of government.

• RD has wide coverage.

• RD requires holistic approach.

• RD involves partnership.

• RD is anchored on the culture of the people.

• RD is working together and sharing resources.

Importance of RD

1. To develop rural area as whole in terms of culture, society, economy, technology and health.

2. To develop living slandered of rural mass.

3. To develop rural youths, children and women.

4. To develop and empower human resource of rural area in terms of their psychology, skill, knowledge, attitude and other abilities.

5. To solve the problems faced by the rural mass for their development.

Importance6. To develop infrastructure facility of rural area.

7. To provide minimum facility to rural mass in terms of drinking water, education, transport, electricity and communication.

8. To develop rural institutions like Panchayat, cooperatives, post, banking and credit.

9. To develop rural industries through the development of handicrafts, small scaled industries, village industries, rural crafts, cottage industries and other related economic operations in the rural sector.

10. To develop agriculture, animal husbandry and other agricultural related areas.

Objectives of RD• Rural development is first and foremost directed

toward the development of man and society.• Rural development is a continuing process.• Rural development is a kind of planned change.• Rural development considers existing

resources—natural, physical, human, financial, technical and institutional.

• Rural development is think “local but act global”.

• Rural development must be anchored on sustainable development giving due respect to the protection of God’s gift .

Objectives Of Rural Development

• To develop farm, home, public service and village community.

• To bring improvement in producing of crops and animals living condition.

• To improve health and education condition etc. improvement of the rural people.

• To improve village condition with their own efforts.

• To improve village communication

RD Programs in Democratic society• RD programs are based on existing resources

and responsive to human and community problems and needs..

• RD programs are desired, initiated, planned and implemented by the people themselves with assistance and guidance from government officials.

• RD programs are funded by government funds with counterpart funds from the people or the community.

• RD programs are anchored on the development plan of the province, district, city or town.

RD Programs • RD programs are comprehensive involving all

aspects of human lives.• RD programs are directed for the welfare of the

majority who are in need of government support and services.

• RD programs utilize local leadership and organized groups in program planning and implementation.

• RD programs are implemented in cooperation, complementation, or in partnership with the private sector.

RD Methods & Approaches• RD utilizes tested, appropriate and variety of

methods and approaches.• RD methods and approaches are culture bound.• Education and training play important roles in

the transformative process of development.• RD is interdisciplinary—utilizing various fields of

specialization such social, technical, economic, environmental, engineering, political, organizational and others.

• RD needs integration of efforts of various players. In our society, each agency of group is mandated only to work on specific area with some limitations.

Core Values of RD

• Sustainable • Purposive • Collaborative • Innovative • Challenging• Excellence• People-centered• Effective • Efficient• Environmental Protection

Scope of Rural Development• Agriculture, Fisheries, Forestry and Natural

Resources Management• Micro, Small and Medium Scale Industries• Irrigation Development • Domestic Water Resource Development• Power and Energy Utilization• Educational Programs and Services• Health Programs and Services• Credit and Financing Institutions• Nutrition Programs and Services• Human Rights• Religious and Spiritual Development

Identification of needs and Strengthening the RPOs

• From the viewpoint Internal structure on different levels in order to facilitate mechanisms of internal consultation and representation.

• Their level of information so that they can express a well thought-out point of view on the questions that concern them and about which the government and international agencies solicit them

Some more ways of strengthening the RPOs

• Their management capacities so that they are capable of managing resources including public assistance they may receive.

• The capacity to negotiate through the constitution of a real base of proposals making it possible to create new contractual relations.

Structure Dynamics

The rural Infrastructure

1.Transport & Communication

2. Road Connectivity-Kerala has the highest road length per hundred square km.It has created a rural-urban continuum.

3. Post Offices-Under ministry of communications & Information.

4. Network- India with its 1,55,279 post offices( 31stmar 02).

5. PO’S are categorized as head, sub and branch post offices.

6. Head PO are graded into 5 categories head, sub and branch post offices.

Infrastructure

1. Radio- All India Radio has 208 radio stations. All stations broadcast farm and home program directed at rural audience.

2. Television-DD-1 operates through a network of 1,402 terrestrial transmitters of varying powers reaching 87% of the population.

3. Press and Print Media- The total no. of newspapers and periodicals published in India was 49,415 appearing in 101 languages and dialects.

4. Electrification

5. Telecom Services-People who are unable to afford a telephone facility have access to village public telephone.

Social Infrastructure1. Rural Health services- The primary health care

infrastructure in rural India has been developed as a three-tier system.

Sub-centres :It is the contact between primary health care system and community.

Primary Health: It is the first contact point between the village community & medical officer. A PH is manned by medical officer & other paramedical staff & they are involved in preventive, curative.

Community health: It is established & maintained by the state gov. As per census 2001, total no. of hospitals & dispensaries in rural area is 3,40,000.

Public Distribution System: It is the distibution of essential commodities to a large no. of people through a network of FPS referred as ration shops.

Agri Infrastructure• Mandis• Agriculture Cooperatives-A network at the

local,state and national levels assists in agricultural marketing. Major products handled are food grains,jute,sugar,milk.

Marketing Infrastructure• Haats and Melas• Shops-As per 2001 census,out of 1.33 crore

shops in India,55 lakhs are in rural areas .The type of outlets in villages are grocery, paan ,flour mills, cycle repair shops.

Commercial Infrastructure• Regional Rural Banks: It was developed with the aim

to provide credit to small & marginal farmers.• As of 31st mar 2003 ,there are 14,777 RRBs in the

country.• Cooperative Banks: It is three-tier cooperative credit

structure in the rural cooperative banking ,with the SCB at the apex level, DCCB at district level and PACS at the grassroots (village level).