SAVITRIBAI PHULE PUNE UNIVERSITY

SY BBA Semester III (CBCS) Pattern 2019

Fundamentals of Rural Development

SY BBA Course Code: GC - 304 Credit: 3

Depth of the Course:

Functional Knowledge about Rural Development Course Objectives:

1. To understand the development issues related to rural society.

2. To find the employment opportunities for rural youth.
3. To create interest among the rural youth to participate in rural development
programmes and schemes for sustainable development.
4. To discourage seasonal and permanent migration to urban areas.

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 UNIT NO- 1

INTRODUCTION TO RURAL DEVELOPMENT

1.1 Concept of Rural Development- Meaning and Definition.

1.2 Scope and Importance of Rural Development.

1.3 Approaches of Rural Development.

1.4 Need of Rural Development.

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1.1 Concept of Rural Development- Meaning and Definition.

INTRODUCTION:-

Rural development usually relates to the method of enhancing the quality of life and financial well-

being of an individual specifically living in populated and remote areas. India is a vast and second

most populous country of the world. (According to the 1991 census, 74.28 per cent population of

our country reside in the countryside). India is predominately an agricultural country and farming

is their main occupation. In terms of methods of production, social organization and political

mobilization, rural sector is extremely backward and weak. Moreover, technical developments in

field of agriculture have increased the gap between the rich and poor, as the better off farmers

adopted modern farm technology to a greater extent than the smaller one’s.

Agriculture is the fundamental occupation of the rural people and forms the basis of rural economy.

The village communities are smaller in area than the urban communities. As the village

communities are small, the population is also low. As the density of population is low, the people

have intimate relationships and face-to-face contacts with each other. In a village, everyone knows

everyone. The rural people are in close contact with nature as most of their daily activities revolve

around the natural environment. The village communities are homogenous in nature. Most of their

inhabitants are connected with agriculture and its allied occupations, though there are people

belonging to different castes, religions and classes. The degree of social solidarity is greater in

villages as compared to urban areas. Common experience, purposes, customs and traditions form

the basis of unity in the villages. In rural areas, mobility is rigid as all the occupations are based

on caste. Shifting from one occupation to another is difficult as caste is determined by birth. Thus,

caste hierarchy determines the social status of the rural people. The frequency of social interaction

in rural areas is comparatively lower than in urban areas. However, the interaction level possesses

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more stability and continuity. The relationships and interactions in the primary groups are intimate.

The family fulfills the needs of the members and exercises control over them. Another

characteristic feature of the rural society is the joint family system. The father is head of the family,

he manages the affairs of the family and father is responsible for maintaining the discipline among

the members. Family controls the behavior of individual.

Concept of Rural Development

According to National geographic society, “Rural Area is an open swath of land that has few

homes or other buildings, and not very many people. A rural areas population density is very low.

Many people live in a city, or urban area. Their homes and businesses are located very close to

one another”

, “A Rural Area is a geographic area that is located outside towns and cities. ... Whatever is not

urban is considered rural." Typical rural areas have a low population density and small

settlements. Agricultural areas are commonly rural, as are other types of areas such as forests.

Development means “improvement in country's economic and social conditions”. More specially,

it refers to improvements in way of managing an area's natural and human resources. In order to

create wealth and improve people's lives.

Development is defined as the process of growth or new information or an event.

Development is a positive growth or change in economical, social and political aspects of a

country. Two aspects of development are: (a) Economic development or rise in income of

people. (b) Social development, which includes education, health and public services

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RURAL DEVELOPMENT

Rural development generally refers to the process of improving the quality of life and economic
well-being of people living in relatively isolated and sparsely populated areas. Rural development
has traditionally centered on the exploitation of land-intensive natural resources such as agriculture
and forestry.

However, changes in global production networks and increased urbanization have changed the
character of rural areas. Increasingly tourism, niche manufacturers, and recreation have replaced
resource extraction and agriculture as dominant economic drivers.

The need for rural communities to approach development from a wider perspective has created
more focus on a broad range of development goals rather than merely creating incentive for
agricultural or resource based businesses.

Education, entrepreneurship, physical infrastructure, and social infrastructure all play an important
role in developing rural regions.

Rural development is also characterized by its emphasis on locally produced economic

development strategies. In contrast to urban regions, which have many similarities, rural areas are
highly distinctive from one another.

MEANING AND DEFINITION OF RURAL DEVELOPMENT

Rural development means an action-plan for the economic and social upliftment of rural areas. It
aims at improving the quality of life of people living in villages. It focuses on the action for the
development of areas that are lagging behind in the overall development of the village economy.

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 ECONOMIC
UPLIFTMENT

AN ACTION-PLAN
SOCIAL
FOR RURAL DEVELOPMENT UPLIFTMENT
DEVELOPMENT

IMPROVING THE
QUALITY OF LIFE
OF RURAL
PEOPLE

Meaning of Rural Development

DEFINITION OF RURAL DEVELOPMENT :-

1. According to the paper of World Bank, Rural Development is 'a strategy to improve the
economic and social life of a specific group of people, the rural poor including small and
marginal farmers, tenants and the landless'. ... Logically urban area can neither develop
without Rural Development

2. According to the United Nations “Rural Development is a process of change, by which

the efforts of 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.

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 3. According to Van Der Ploeg (1998),” Rural Development consists of a ‘balance of
changing and stable elements’ and that continuity and change have always characterized
rural development”
4. According to Robert Chambers, “Rural Development is a strategy to enable a specific
group of people, poor rural women and men, to gain themselves and their children more
of what they want and need.”

5. Rural Development refers to continuous and comprehensive socio-economic process,

attempting to improve all aspects of rural life

6. According to Robert chambers, Rural Development is a strategy to enable a specific

group of people, poor rural women and men, to gain for themselves and their children
more of what they want and need.

7. Rural development involves efforts that are economic and social in nature intended to
encourage. Concepts of retention, growth, and expansion in. areas outside cities, including
improving quality. Of life for rural residents through such activity.

8. Rural Development is a Process leading to sustainable improvement and growth in the

quality of life of rural people.

From the above definition it reveals that, the main objectives of the rural development is

improving the living standard of rural people by utilizing the easily available natural and human

resources. The other objectives of rural development program is to development of community

services and facilities i.e. drinking water, road, electricity, and health services etc. , Development

of agriculture and allied activities, development of handicrafts and cottage and village industries,

development of human resource mobilization and development of socio economic infrastructure

which includes setting up of rural bank, cooperatives, school etc.

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1.2 Scope and Importance of Rural Development.

Rural development is a dynamic process which is mainly concerned with the rural areas.

These include agricultural growth, putting up of economic and social infrastructure, fair

wages as also housing and house sites for the landless, village planning, public health,

education and functional literacy, communication etc.

Importance of Rural Development.

Rural development is a comprehensive term which essentially focuses on action for the
development of area which is lagging behind in overall development of village economy. It
focused on Increasing productivity of agricultural sector, Generating alternative means of
livelihood in rural sector. Promoting education and health facilities in the rural areas. The
importance of rural development is as follows:-

1. Education – Whatever stays or not, quality education sustains for a lifetime. Through the
rolled out rural development programmes, it can be ensured that the children get quality
education which helps in their mental development and prepare them for a brighter and better
future. Education plays a vital role in understanding the basic things that can work towards the
betterment of life.
2. Employment – Encouragement of employment-generation based rural development
programmes can attract lots of youth and other persons who are willing to have some work,
but do not have any knowledge or expertise. The skill development programmes and
workshops can help with that.
3.
4. Healthcare – In many rural areas, there have been lack of health care. If any programmes
associated with the rural health are laid out, then NGOs and government lay the stress upon
building health centers and hospitals for them. The main advantage here is the people will find
immediate medical care instead of hurrying out for the cities.

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5. Infrastructure – As far as development is concerned, infrastructure plays a vital role to
achieve various goals. For example, in a rural village, if a school infrastructure with added
facilities will be provided, the environment would itself attract more number of students to join
and get educated.
6. Sanitation – Improper sanitation has led to several deaths due to diseases. There are several
portions of rural areas where people head for open defecation and urination. Building of toilets
is an utmost important part related to healthy development and decreasing the mortality rate.
7. Opportunities – Once the rural development programmes are implemented successfully,
people of every section would find enormous opportunities. For example, any individual with
an idea can become an entrepreneur because they can take the help of the programmes and
begin own venture.
8. Women empowerment – It dates back to many decades when the women in the society have
remained marginalized due to the male dominance. Although, gender inequality has been
reduced in the urban areas, but the stature of rural areas is gruesome. Hence, the programmes
would also focus in women upliftment as well and help them become successful entrepreneurs
too.
9. The speed of overall economic expansion of the nation-Rural development is important not

only for the majority of the population residing in a rural area but the growth of rural activities

is necessary to stimulate the speed of overall economic expansion of the Nation

10. A Strategy trying to obtain improved Rural Creation and Productivity-Rural development

is pretended to be noticeable importance in the India today than in the olden days in the process

of the evolution of the nation. It is a strategy trying to obtain improved rural creation and

productivity, higher socio-economic equality, and ambition, stability in social and economic

development.

11. Decrease the Famine- In India the primitive task is to decrease the famine roughly about 70

percent of the rural population, implement sufficient and healthy food. Later, serve fair

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 equipment of clothing and footwear, a clean environment and house, medical attention,

recreational provision, education, transport, and communication

THE MAJOR OBJECTIVES OF RURAL DEVELOPMENT ARE:

1) To improve productivity and the wages of rural people.

2) To achieve enhanced production and productivity in rural areas,
3) To improve productivity and the wages of rural people.
4) To guarantee increased and quick employment possibilities
5) To demolish unemployment and a notable decline in underemployment
6) To guarantee to increase the standard of living of the underprivileged population
7) To provide the basic needs – eg. Elementary education, health care, clean drinking
water, and, rural roads, etc.
8) To bring about a greater socio-economic equity,
9) To bring about a spatial balance in social and economic development,
10) To bring about improvement in the ecological environment so that it may be
conducive to growth and happiness, and
11) To develop broad based community participation in the process of development
12) It focused on Increasing productivity of agricultural sector,
13) To generate alternative means of livelihood in rural sector.
14) To promote education and health facilities in the rural areas.
15) To speed of overall economic expansion of the nation.

1.3 Approaches of Rural Development.

There are no universally accepted approaches to rural development. It is a choice

influenced by time, space and culture. The term rural development connotes overall

development of rural areas to improve the quality of life of rural people. In this sense, it is

a comprehensive and multidimensional concept, and encompasses the development of

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 agriculture and allied activities, village and cottage industries and crafts, socioeconomic

infrastructure, community services and facilities and, above all, human resources in rural

areas. So, the types of approaches to rural development are as follows:

i) Broad front Approach: ii) Sectorial Approach: iii) Participatory Approach: iv) Area

Development Approach: v) Target Approach: vi) Basic Needs Approach: vii)

Employment-oriented Integrated Approach to Rural Development: viii) Integrated

Development Approach: ix) Growth Center Approach: x) Community-driven development

(CDD) or Approach: xi) Gandhian Approach and its current relevance:

Broad front
Gandhian Approach:
Approach Sectorial
Approach:

Community-
driven
Participatory
development
Approach:
(CDD) or
Approach
Approaches
Growth To Rural Area
Center Development
Approach Development Approach

Integrated
Target
Development
Approach
Approach
Employment-
oriented Basic Needs
Integrated Approach
Approach

Approaches to Rural Development

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 1) Broad Front Approach:

Community Development and Panchayat Raj were often described as *Broad-front’ or

’Multipronged* development strategies as they aimed at development of villages covering

all the major spheres like Agriculture, Animal Husbandry, Rural Industries,

Communication, Health, Education, Women Welfare and Social Welfare(Desai, 1983). In

the early 1960*s India revised its rural development strategy and adopted sectoral approach

of development, due to financial limitations and pressing needs and priorities (Sharma,

1977)* In the process, it launched specific sectoral development programmes such as

Intensive Agricultural District Programme, Intensive Agricultural Area Programme,

Intensive Cattle Development Programme, etc.

While the sectoral approach to development was fruitful to a major extent in eliminating

scarcity of food, it has also contributed to the growing regional imbalances and inequality

among the people within the community, the later has affected significantly the rural poor,.

As a result, the development policy of India was revised once again in late 1970s in which

development of the rural poor became the primary concerned of rural development.

Antyodaya, Integrated Rural Development Programme, National Rural Employment

Programme are some of the programmes that were introduced in India for the development

of rural poor. The present study is an attempt to review the functioning of Integrated Rural

Development Programme with specific reference to the progress made by the beneficiaries

and the problems confronted by them in the development process. A theoretical

introduction to the Integrated Rural 3 Development Programme (IRDP) covering the

aspects of its history, meaning and scope is given hereunder.

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 In early fifties, rural development efforts began with multi-purpose approach which

included activities related to agriculture, animal husbandry, co-operation, irrigation, village

and small scale industries, health, sanitation, housing, transport and communication,

welfare of women and rural employment. The Community Development Programmes

(CDP) and National Extension Service (NES) initiated in 1952 fell under this approach.

Though CDP, as a holistic approach, did not succeed as expected. The impact of

programme was ephemeral. It was said that the community development programme has

been like film of butter spread over a large loaf, thus provide ineffective in a complex

society.

2. Sectorial Approach:

Sectorial development planning in individual sectors like education, health, housing and social

security are included in sectorial approach of development. This approach advocates

compartmentalization of development in different sectors as if these are watertight compartments

and have nothing to do with each other. Its inadequacies stem from this compartmentalized

approach. Little attempts are to be made to integrate them. By 1960’s the situation was rather

critical on the food front. The need for great concentration on food production led to strategy for

locating potential sectors and well-endowed districts and areas capable of yielding higher

agricultural production. More attention was paid in improving productivity per acre than on

extending the acreage. Thus, the Intensive Agriculture Development Programme (1960) (IADP)

and later in 1963 intensive Agricultural Area Programme (IAAP) were launched. Both IADP and

IAAP constituted landmarks in the development of agriculture, indeed of the rural sector in India.

The programmes placed agriculture on a qualitatively different footing with wide ranging

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repercussions on rural scenario. The programmes resulted in a spectacular breakthrough in total

agricultural production and productivity per hectare but at the expense of social equality and social

justice.

3. Participatory Approach:

This concept has been developed from participatory development. “Participatory development is

a process through which stakeholders can influence and share control over development initiatives,

and over the decisions and resources that affect themselves”(ADB, 1996).

• A process to engage local populations in development projects

. • PD uses local decision making and capacities to steer and define the nature of an intervention.

• PD aims at achieving a localized capital accumulation process based on the skills development

and local resources generation.

• The essential feature of PD is social mobilization

• PD gives a new self-confidence through which the community can engage in more ambitious

projects involving collective action and management. Scope and Applications of Participation

• Participation at the micro level of projects such as project planning and design decisions, project

implementation, monitoring and evaluation.

• Participation at the macro level, for instance, participatory poverty assessments (PPAs) are

designed to influence policy particularly in relation to development and poverty reduction

strategies (Norton et al., 2001).

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Types of Participation:

1. Passive Participation-

People are told what is going to happen or has already happened. Top down, information

shared belongs only to external professionals. Information giving People answer questions

posed by extractive researchers, using surveys etc. People not able to influence the

research. Consultation People are consulted and external agents listen to their views.

Usually externally defined problems and solutions. People not really involved in decision

making. Participation by material incentives Provision of resources, e.g. labor. Little

incentive to participate, for example farm research, some community forestry.

2. Functional Participation

Groups are formed to meet predetermined objectives. Usually done after major project

decisions are made, therefore initially dependent on outsiders but may become self-

dependent and enabling. Interactive Participation Joint analysis to joint actions. Possible

use of new local institutions or strengthening existing ones. Enabling and empowering so

people have a stake in maintaining structures or practices. Self-Mobilization already

empowered, take decisions independently of external institutions. May or may not

challenge existing inequitable distributions of wealth and power

3. Area Development Approach:-

This approach contemplates that development of an area depends not only on the

development of an adequate infrastructure network but also the way factors of the local

economy are activated around the production infrastructure. In other words, for

development of an area, spatial and functional integration is necessary. Thus, while rural

growth centers provide ideal locations for the provision of infrastructural facilities, their

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 hinterlands are regarded as basic planning units for integrated multi-sectoral planning to

achieve integrated development of an area. The approach, while taking area poverty into

consideration, provides a balance between various sectoral activities as well as spatial

pattern of growth; however, it does not ensure that economic growth is being shared by all

classes and communities of the rural areas.

4. Target Approach:

In order to accommodate the lagging sectors/regions rural development was re-

conceptualized to highlight the improvement of the social and economic life of a

specialized group of people. The target group comprised of marginal and small farmers,

landless agricultural labourers for whom special programmes such as Small Farmer

Development Agency 47 (SFDA) and Marginal Farmers Development Agency

(MFALDA) were started. It was noticed that the target group approach showed a better

results where information facilities were satisfactory and administrative and organizational

arrangements were reasonably strong. This approach was for the correction of regional

imbalance. In this connection, mention may be made of Tribal Area Development

Programme (TADP, 1972), Hill Area Development Programme (HADP, 1974-75),

Drought Prone Area Programme (DPAP, 1970), Desert Development Programme (DDP,

1977-78), and Command Area Development Programme (CADP, 1975). These

programmes were fairly successful in terms of implementation.

5. Basic Needs Approach:

The basic needs approach gives primacy to the need for a minimum standard of living of

the poor as a central concern of development planning. It therefore contributes to the

formulation of a development strategy, which aims at reducing poverty and inequality,

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 promoting growth of employment and distributive justice. The basic needs concept is a

wider scope covering personal and social consumption and also human rights, peoples

participation, employment and growth with justice. 48 The Minimum Needs Programme

(MNP) in India was introduced in 1974 during the first year of fifth plan period. The fifth

plan proposed MNP with the objectives of establishing network of basic services and

facilities of social consumption in all areas of upto nationally accepted norms within in a

specified time frame. It is essentially a programme of investment in human resources

development and seeks to improve the consumption of those living below poverty line and

thereby improving productive efficiency of people and their quality of life. The main

components of MNP are: (1) Rural health, (2) Rural education, (3) Rural roads, (4) Rural

drinking water, (5) Rural electrification, (6) House sites for landless, (7) Environmental

improvement in slums, and (8) Nutrition.

6. Employment-oriented Integrated Approach to Rural Development:

With a view to overcome the limitations of earlier approaches and to improve the quality

of life of the poor living in the rural areas, a multilevel, multi-sector, with multisection

concept of integrated rural 49 development was launched in 1978-79. The different

programmes were brought under single umbrella of Integrated Rural Development

Programme (IRDP). It aimed at ensuring accelerated welfare and development of the

poorest of the poor based on Gandhian concept of Antyodaya. Several programmes for

providing employment to rural poor, namely, rural works programme, rural employment

guarantee programme, IRDP, Training Rural Youth for Self-Employment (TRYSEM),

Development of Women and Children in Rural Areas (DWCRA) and Jawahar Rozgar

Yojana (JRY) were introduced.

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 7. Integrated Development Approach:

In the context of problems in the area development approach to tackle the problems of rural

poverty, a new strategy of development, i.e. the integrated development approach has been

developed because the area development approach by and large failed to address the

question of inequalities in the distribution of employment, incomes and assets. A mere

geographical emphasis, as is the case with the area development approach, has been found

to be inadequate in solving the problems. The Indian economy and social structure are

characterized by widespread poverty, poor health conditions, illiteracy, exploitation,

inequitable distribution of land and other assets and lack of infrastructure and public

utilities (roads, communications etc). Clearly, this means that the problem requires an

approach that will take into account all these factors in devising a comprehensive strategy

to further rural development.

The concept of “Integrated Rural Development” came into vogue with the need for a

multipurpose thrust to rural planning. It stresses that various facets of rural development,

which have an impact on rural life, are interrelated and cannot be looked at in isolation.

Thus, an integrated approach towards rural development is essential. The various

dimensions of rural life---growth of agriculture and allied activities, rural industrialization,

education, health, public works, poverty alleviation and rural employment programmes --

all form a part of an integrated approach to the problems of rural development

8. Growth Center Approach:-

It is most appropriate for planning integrated rural development. Based on the principle of

“Equal Accessibility”, this approach can bring all these facilities, services and local

administration [PANCHAYATS] within easy reach of the population.

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 The growth center should be equipped with all the required facilities such as: [a] Training

center to impart practical training and build capacity to enhance productivity of agriculture

and rural/cottage/agro-based industries [b] Mobile training-cum-demonstration unit to

provide on the spot training, repair and maintenance, services for agricultural and industrial

machineries [c] Marketing-cum-warehousing facilities that can provide safe storage and

marketing of farm produce and cottage industries products [d] Forest and grass nursery to

provide fruits, fuel, fodder and forest cover [e] Developmental school based on the “

earning while learning principle” and oriented to develop a cadre of self-employed workers

in the area of human, animal, plant and soil-health care and [f] Residential housing complex

for workers in the project area.

9. Community-driven development (CDD) or Approach:

It is derived from community-based development (CBD), which is a developmental

initiative that provides control of the development process, resources and decision making

authority directly to community groups. The underlying assumption of CDD projects are

that communities are the best judges of how their lives and livelihoods can be improved

and, if provided with adequate resources and information, they can organize themselves to

provide for their immediate needs. Moreover, CDD programmes are motivated by their

trust in people (Naidoo and Finn, 2001) and hence it advocates people changing their own

environment as a powerful force for development. By treating poor people as assets and

partners in the development process, previous studies have shown that CDD is responsive

to local demands, inclusive, and more cost-effective compared to centrally-led NGO-based

programmes. CDD can also be supported by strengthening and financing community

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 groups, facilitating community access to information, and promoting an enabling

environment through policy and institutional reform.

10. Gandhian Approach and its current relevance:

Gandhian approach to rural development may be labelled as ‘idealist’. It attaches supreme

importance to moral values and gives primacy to moral values over material conditions.

The Gandhians believe that the source of moral values in general lies in religion and Hindu

scriptures like the Upanishads and the Gita, in particular. The concept of ‘Rama Rajya’ is

the basis of Gandhiji’s idea of an ideal social order. Gandhi defined Rama Rajya as

“Sovereignty of the people based on moral authority”.

Gandhian approach to rural development includes Basic principles of Gandhian model of

rural reconstruction, Trusteeship, Ideal Village, Decentralization, Self-sufficiency,

Industrialization, Rural Reconstruction through removal of untouchability.

Gandhi's basic aim was to have an all-round development of the society that included

human development along with socio-economic- political development. ... According to

him life cannot be divided in sphere like social, political, economic, moral and religious.

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 Basic principles
of Gandhian
model of rural
reconstruction,

Rural
Reconstruction
through removal Trusteeship
of
untouchability.

GANDHIAN APPROACH
TO RURAL
DEVELOPMENT

Industrialization Ideal Village,

Self-sufficiency, Decentralization,

Gandhian approach to rural development

1. Basic principles of Gandhian model of rural reconstruction

The basic principle of village swaraj as outlined by Gandhiji are trusteeship, swadeshi, full

employment, bread labour, self-sufficiency, decentralization, equality, etc. Thus the idea

of ideal village of Gandhian dream was a comprehensive one, encompassing the economic,

social, political and educational dimensions. Gandhiji gave emphasis on truth and non-

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 violence in every aspect of human life and said, "The swaraj of my opinion will come only

when all us are firmly persuaded that our swaraj has got to be won, worked and maintained

through truth and Ahimsa alone. Values underlying of this Model the Gandhian Model of

rural development is based on the following values and premises:-

1. Rural India is found not in its cities, but in its villages.

2. The revival of villages is possible only when the villagers are exploited no more.

Exploitation of villagers by city dwellers was ‘violence’ in Gandhiji’s opinion.

3. Simple living and high thinking, implying voluntary reduction of materialistic wants,

and pursuit of moral and spiritual principles of life

4. Dignity of labour : everyone must earn his bread by physical labour , and one who

labours must necessarily get his subsistence.

5. Performance to the use of indigenous (swadeshi) products, services and institutions.

6. Balance between the ends and the means: Gandhiji believed that non-violence and truth

could not be sustained unless a balance between the ends and the means was maintained.

Principal Components of the Model the Principal components of the Gandhian Model are

discussed in below in brief Self-sufficient Village Economy. Self-sufficiency was

advocated by him as a basic principle of life because dependence brings in exploitation

which is the essence of violence. The poor is exploited by the rich, the village by the city

and the undeveloped country by the developed ones due to lack of self-sufficiency” He

suggested that villages should be self-sufficient i.e. they should produce their own food,

clothing and other articles needed for meeting their basic needs. He insisted on the

promotion of village or cottage industries and handicrafts because they can provide

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 employment, necessary to meet the basic needs of the villagers and also facilitate village

self-sufficiency. Gandhiji said that it was not the British rule but the modem civilization

nourished by the rule, which was the real cause of economic, distress i.e., poverty and

unemployment. He further said, "If the British rule were replaced tomorrow by the

Indian rule based on modem methods, India would be no better”. "Against this, he

envisaged India's salvation in the revival of its ancient civilization which prescribes for

man the path of duty and observance of morality" Gandhiji's self-sufficient and non-violent

village society could only be built on the basis of co-operation and not on conflict.

According to him as far as possible, every activity in the village will be conducted on co-

operative basis. Even in the field of agriculture, Gandhiji recommended co-operative

farming which would save labour, capital, tools and provide employment to all adult

Villagers and increase production also. He said, "we must attempt to prevent further

fragmentation of land and encourage people to take to co-operative farming".

2. Trusteeship

Gandhiji emphasized the principle of trusteeship in social and economic affairs. He firmly

believed that all social property should be held in trust. The capitalists would take care not

only of themselves but also of others. Some of their surplus wealth would be used for the

rest of the society. The poor workers, under trusteeship, would consider the capitalists as

their benefactors; and would repose faith in their noble intentions. Gandhiji felt that if such

a trusteeship were established, the welfare of the workers would increase and the clash

between the workers and employers would be avoided.

Trusteeship would help considerably “in realizing a state of equality on earth.”Gandhiji

firmly believed that land should not be owned by any individual. Land belongs to God. Hence,

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individual ownership of land should be shunned. For that a landowner should be persuaded to

become a trustee of his land. He should be convinced that the land he owns does not belong to

him. Land belongs to the community and must be used for the welfare of the community. They are

merely trustees. By persuasion the heart of landowners should be changed and they should be

induced to donate their land voluntarily.

3. Ideal Village

The village is the basic unit of the Gandhian ideal social order. Gandhi succinctly pointed

out, “If the village perishes India will perish too…. We have to make a choice between

India of the villages that is as ancient as herself and India of the cities which are a creation

of foreign domination”. Gandhi’s ideal village belongs to the Pre-British period, when

Indian villages were supposed to constitute the federation of self-governing autonomous

republics. According to Gandhiji, this federation will be brought about not by coercion or

compulsion but by the voluntary offer of every village republic to join such a federation.

The work of the central authority will only be to coordinate the work of different village

republics and to supervise and manage things of common interest, as education, basic

industries, health, currency, banking etc.The central authority will have no power to

enforce its decisions on village republics except the moral pressure or power of persuasion.

The economic system and transport system introduced by the British have destroyed the

“republican’ character of the villages.Gandhi, however, admitted that in olden times

tyranny and oppression were in fact practiced by feudal chiefs. But, “odds were even”.

Today the odds are heavy. It is most demoralizing.” In this way in the Gandhian scheme

24 | P a g e
 of things the ancient ‘republic’, an Indian village without tyranny and exploitation serves

as a model unit.

4. Decentralization

Gandhi firmly believes that village republics can be built only through decentralization of

social and political power. In such a system decision-making power will be vested in the

Village Panchayat rather than in the State and the national capital. The representatives

would be elected by all adults for a fixed period of five years. The elected representatives

would constitute a council, called the Panchayat. The Panchayat exercises legislative,

executive and judicial functions. It would look after education, health and sanitation of the

village. It would be the Panchayats responsibility to protect and uplift ‘untouchables’ and

other poor people. Resources for Gandhian Approach to managing village affairs would be

raised from the villages. All the conflicts and disputes would be resolved within the village.

And as far as possible not a single case is to be referred to courts outside the village.. Apart

from managing its own affairs the village would also be capable of defending itself against

any invasion. A non-violent peace brigade of volunteers would be organized to defend the

village. This corps would be different from the usual military formation. They would

repose the utmost faith in non-violence and God.

5. Self-sufficiency

Such a decentralized polity implies a decentralized economy. It can be attained only

through self-sufficiency at the village level. The village should be self-sufficient as far as

its basic needs – food, clothing, and other necessities – are concerned. The village has to

import certain things which it cannot produce in the village. “We shall have to produce

25 | P a g e
 more of what we can, in order thereby to obtain in exchange, what we are unable to

produce”.

The village should produce food-crops and cotton in order to meet its requirements. Some

lands should also be earmarked for cattle and for a playground for adults and children. If

some land is still available, it should be used for growing useful cash crops like tobacco,

opium, etc. to enable the village to get in exchange things which it does not produce.Village

economy should be planned with a view to providing full employment to all the adults of

the village. Each man should be guaranteed employment to enable him to meet his basic

needs in the village itself so that he is not forced to migrate to towns. In the ultimate

analysis full employment should be linked with equality. Physical labour occupies a central

place in the Gandhian concept of the self-sufficient village. In this respect he was highly

influenced by Rus-kin and Tolstoy. According to Gandhi, each man must do physical

labour to earn his bread. Physical labour is necessary for moral discipline and for the sound

development of the mind. Intellectual labour is only for one’s own satisfaction and one

should not demand payment for it.The needs of the body must be supplied by the body.

Gandhi said, “If all laboured for their bread then there would be enough food and enough

leisure for all.”

6. Industrialization

Gandhiji maintained that industrialization would help only a few and will lead to

concentration of economic power. Industrialization leads to passive or active exploitation

of the villages. It encourages competition. Large scale production requires marketing.

26 | P a g e
 Marketing means profitseeking through an exploitative mechanism. Moreover,

industrialization replaces manpower and hence it adds to unemployment. In a country like

India, where millions of labourers in the villages do not get work for even six months in a

year, industrialization will not only increase unemployment but force labourers to migrate

to urban areas. This will ruin villages.In order to avoid such a catastrophe, village and

cottage industries should be revived. They provide employment to meet the needs of the

villagers and facilitate village self-sufficiency. Gandhians are not against machine per se if

it meets two aims: self-sufficiency and full employment. According to Gandhi, there would

be no objection to villagers using even the modern machines and tools that they could make

and could afford to use. Only they should not be used as a means of exploitation of others.

7. Rural Reconstruction through removal of untouchability

Untouchability is a social evil and should not be looked upon as a mere political necessity

The socio-economic evils associated with this system must be abolished. According to

Gandhiji, there should be perfect social equality among the people m the society No social

superiority should be entertained by any individual or by a section of the society on the

ground of birth or knowledge or religion or any other consideration. Gandhiji fought

against social superiority in any form and carried on his crusade against the doctrine of

racial superiority in South Africa and evil practices of untouchability in India. He has the

opinion that no one is born as untouchable and unequal. The practice of untouchability is

a sin against God as the Harijans and non-Harijans are the children of the same God. He

found untouchability as the worst evil effect of Hinduism and worked for their temple entry

for religious equality. In 1932, Gandhiji introduced Harijan Sevak Sangh, a non-political

27 | P a g e
 association for their self-improvement. He suggested their econ omic self-reliance through

the adoption of spinning and weaving.

1.4 Need of Rural Development.

Rural development is a national necessity and has considerable importance in India because

of the following reasons.

1. The rural economy is an example of an agrarian economy. Although farming and

agriculture are one of the most important primary activities, the problem lies in the fact

that they share in the GDP of the agriculture sector is on a constant decline. At the

same time, about two-thirds of India’s population depends on agriculture. As a result,

the productivity is not up to the mark, with conditions only getting worse.

2. Public investment declined since 1991 coupled with a lack of adequate infrastructure,

credit, transport, employment, etc. Henceforth the agricultural output has grown at only

3.2% during 2007-2011. All these factors have been denting the process of development.

Therefore there is a need to focus on rural development and not just urban development.

3. India's three-fourth of population live in rural areas, and nearly half of the country's

national income is derived from agriculture,

4. Around seventy per cent of Indian population get employment through agriculture,

5. Bulk of raw materials for industries come from agriculture and rural sector,

6. Increase in industrial population can be justified only in rural populations' motivation

and increasing the purchasing power to buy industrial goods, and Growing disparity

between the urban elite and the rural poor can lead to political instability.

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 7. Rural Development focuses upon the upliftment and development of the sections of rural

economies, that experience grave poverty issues and effectively aims at developing their

productivity.

8. Rural Development also emphasizes the need to address various pressing issues of village

economies that hinder growth and improve these areas.

9. Some areas that need urgent attention for Rural Development in India are: Public health

and sanitation, Literacy, Female empowerment, Enforcement of law and order, Land

reforms, Infrastructure development like irrigation, electricity, etc.

10. Rural Development focuses on availability of credit and Eradication of poverty which

is need of an hour.

11. Rural development is a complete term that concentrates on the action taken for the

development of rural areas improve the village economy. However, few areas that demand

more focused attention and new initiatives are, Education, Public Health and Sanitation,

Women Empowerment, Infrastructure Development (E.g electricity, irrigation, etc),

Facilities for agriculture extension and research, Availability of Credit, Employment

opportunity

12. Rural development usually relates to the method of enhancing the quality of life and

financial well-being of an individual specifically living in populated and remote areas.

13. Traditionally rural development is centered on the misuse of land-intensive natural

resources such as forestry and agriculture. But today, increasing urbanization

14. Today, rural development still remains the core of the overall development of the

country. It has become more than two-thirds of the country’s people is dependent on

agriculture for their livelihood and one-third of rural India is still below the poverty line.

29 | P a g e
 Therefore, it is important for the government to be productive and provide enough facility

to upgrade their standard of living.

********************************************************

30 | P a g e
 UNIT NO- 2

RURAL DEVELOPMENT PLANNING & MANAGEMENT

2.1 Rural Development Planning –District Rural Development Agency

(DRDA)- Organization Structure

2.2 Functions of DRDA

2.3 NGO’s and Rural Development

2.4 Self Help Groups (SHG’s) formation

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2.1 Rural Development Planning –

Rural development planning has gained prominence in recent times because of the growing
realization that benefits from development have, by and large, bypassed large segments of rural
society. At the same time, it has been recognized that the organization and structure of the process
of planning have to be modified, so that policies and programs reflect the development needs of
rural areas.

Planning is the process of preparing a blueprint of actions to attain stated objectives within a time
frame. The determination of objectives, the specification of targets, the strategy for mobilization
of resources, the allocation of resources to different development sectors, the blueprint of actions
(including their operationalization in the shape of policies, programs and their delivery system)
are aspects, which have to be considered in any planning exercise.

Planning is the process of thinking about the activities required to achieve a desired goal. It is the
first and foremost activity to achieve desired results. It involves the creation and maintenance of
a plan, such as psychological aspects that require conceptual skills.

According to Moseley, Malcolm J. ( 2003), Rural Development and planning generally refers to
the process of improving the quality of life and economic well-being of people living in relatively
isolated and sparsely populated areas.

Rural development planning in India is an area of prime importance for the Ministry of Rural
Development. As part of the Planning objectives in India, Rural Planning needs to reflect growth
and social justice. Growth in the rural sector is the key to social and economic development of
India.

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To understand the rural development and rural planning we must understand first the
administrative structure of India.

Administrative Structure of India

( Source taken from http://upload.wikemedia.org/wikepedia/commons/c/cd/setup_of_india.png)

The departments of the Ministry of Rural Development established to facilitate rural needs have
been enlisted below:

 Department of Land Resources- (i) Land Reforms Division and (ii) Wastelands
Development Division
 Department of Rural Development
 Department of Drinking Water Supply

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2.2 District Rural Development Agency (DRDA) - Organization Structure

DRDA has traditionally been the principal organ at the district level to oversee the implementation
of anti-poverty programmes of the Ministry of Rural Development.

This agency was created originally to implement the Integrated Rural Development Programme
(IRDP). IRDP is described officially as a major mechanism for the alleviation of rural poverty.
The main objective of IRDP is to raise families of identified target group below poverty line by
creation of sustainable opportunities for self-employment in the rural sector.

Assistance is given in the form of subsidy by the government and term credit ad-vanced by
financial institutions (commercial banks, cooperatives and regional rural banks.) The programme
is implemented in all blocks of the country as centrally sponsored scheme funded on 50:50 basis
by the centre and the states.

The target group under IRDP consists of small and marginal farmers, agricultural laborers and
rural artisans having annual in-come below Rs. 11,000 defined as poverty line in the Eighth Plan.
In order to ensure that benefits under the programme reach the more vulnerable sectors of the
society, it is stipulated that at least 50 per cent of assisted families should be from scheduled castes
and scheduled tribes with corresponding flow of resources to them. Furthermore, 40 per cent of
the coverage should be of women beneficiaries and 3 per cent of handicapped persons.

The programme is implemented through District Rural Develop-ment Agencies (DRDAs). The
governing body of DRDA includes local MP, MLA, Chairman of Zila Parishad, and heads of
district develop-ment departments, representatives of SCs, STs and women.

At the grass root level, the block staff is responsible for implementation of the programme. The
State Level Coordination Committee (SLCC) monitors the programme at state level whereas the
Ministry of Rural Areas and Employment is responsible for the release of central share of funds,
policy formation, overall guidance, monitoring and evalu-ation of the programme.

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Assistance is given in the form of subsidy by the government and term credit ad-vanced by
financial institutions (commercial banks, cooperatives and regional rural banks.) The programme
is implemented in all blocks of the country as centrally sponsored scheme funded on 50:50 basis
by the Centre and the states.

Subsequently the DRDAs were entrusted with number of programmes of both state and central
governments. From April 1999 a separate DRDA Administration has been introduced to take care
of the administrative costs. This aims at strengthening the DRDAs and make them more
professional in managing the anti-poverty programmes and be an effective link between the
ministry and the district level.

Rural development and poverty alleviation programmes are implemented on a decentralized basis,
keeping in view the large geographical areas, the administrative requirements and the need to
involve grassroots-level officials and the community in the implementation of the programmes. At
the central level the Ministry of Rural Areas & Employment has been implementing these
programmes. The Ministry is responsible for the release of central share of funds, policy
formulation, overall guidance, monitoring and evaluation of the programmes. At the State level
Secretary, Rural Development and the Commissioner of Rural Development are overall in charge
for implementation of the rural development programmes. At the District level, the programmes
are implemented through the DRDAs (District Rural Development Agencies).

The governing body of DRDA includes Members of Parliament (MPs), Members of Legislative
Assemblies (MLAs), District level officials of Development Departments, Bankers, NGO's and
representatives of weaker sections of the society. The District Collector used to be (but not always
at present) the Chairman of the Governing Board. The Governing body at the district level provides
guidance and directions to DRDA. The body in DRDA responsible for actual implementation is
headed by an Additional District Collector.

35 | P a g e
Many Schemes of the Central and State Governments are introduced from time to time. Several
schemes are available providing support to different components of Rural Development. Schemes
are also periodically modified to reflect the experience over the years.

The task of DRDA has been to identify the needs of the rural population and reach the appropriate
schemes where they are needed. In implementing the schemes, the role of the DRDA has been
Technical, Managerial and Financial.

Thus DRDA is not only a body to disburse the funds for the schemes but also provide appropriate
Managerial and Technical support.

District Rural Development Agencies (DRDAs) are district level development execution and
monitoring agencies created under the Indian Societies Registration Act. Substantial sums of rural
development funds of government of India were transferred and routed through them under various
Centrally Sponsored Schemes. From purely a financial resource from Rural Development point of
view the DRDAs are extremely important institutions at the district level.

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 ORGANISATIONAL STRUCTURE OF DRDA

ORGANISATIONAL SETUP OF RURAL DEVELOPMENT DEPARTMENT

Director of Rural Development

TECHNICAL WING ADMINISTRATIVE

Superintending Engineer District Collector

(RD & PR) /Chairman DRDA

Joint Director / Project

Executive Engineer (RD)
Office (DRDA)

Assistant Executive Engineer Block Development Officer

(RD) (BP) & (VP)

Assistant Engineer (RD)/Block Engineer

Union Overseer Road Inspector

Reference :- Government of India, Ministry of Rural Development, Guide Lines, New Delhi, 2008.
37 | P a g e
 2.2 FUNCTIONS OF DRDA

1. The DRDAs play a critical role - If effective programme design is critical to successful
implementation of rural development programmes, so is an effective delivery agency. None of the
anti- poverty programmes can have impact unless they are implemented with a clarity of purpose
and a commitment to the task. It is here that the DRDAs play a critical role. The DRDAs are not
be implementing agencies, but can be very effective in enhancing the quality of implementation
through overseeing the implementation of different programmes and ensuring that necessary
linkages are provided. To this extent the DRDA is a supporting and a facilitating organization and
needs to play a very effective role as a catalyst in development process.
2. Ensure effective utilization of the funds - The District Rural Development Agency is visualized
as a specialized and a professional agency capable of managing the anti- poverty programmes of
the Ministry of Rural Development on the one hand and to effectively relate these to the overall
effort of poverty eradication in the District. In other words, while the DRDA will continue to watch
over and ensure effective utilization of the funds intended for anti-poverty programmes, it will
need to develop a far greater understanding of the processes necessary for poverty alleviation/
eradication. It will also need to develop the capacity to build synergies among different agencies
involved for the most effective results. It will therefore need to develop distinctive capabilities
rather than perform tasks that are legitimately in the domain of the PRIs or the line departments.
The role of the DRDA will therefore be distinct from all the other agencies including the Zilla
Parishad.
3. Coordinate with the line departments - DRDAs must themselves be more professional and
should be able to interact effectively with various other agencies. They are expected to coordinate
with the line departments, the Panchayati Raj Institutions, the banks and other financial
institutions, the NGOs as well as the technical institutions, with a view to gathering the support
and resources required for poverty reduction effort in the district. It shall be their endeavor and
objective to secure inter-sectoral and inter- departmental coordination and cooperation for

38 | P a g e
 reducing poverty in the district. It is their ability to coordinate and bring about a convergence of
approach among different agencies for poverty alleviation that would set them apart.
4. Coordinate effectively with the Panchayati Raj Institutions -The DRDAs are expected
to coordinate effectively with the Panchayati Raj institutions (PRIs. ). Under no
circumstances will they perform the functions of PRIs.
5. To oversee the implementation of different anti-poverty programmes - The DRDAs are
expected to oversee the implementation of different anti-poverty programmes of the Ministry of
Rural Development in the district. This is not to be confused with actual implementation, which
will be by the Panchayati Raj and other Institutions. The DRDAs will monitor closely the
implementation through obtaining of periodic reports as well as frequent field visits. The purpose
of the visit should be to facilitate the implementing agencies in improving implementation process,
besides ensuring that the quality of implementation of programmes is high. This would include
overseeing whether the intended beneficiaries are receiving the benefits under the different
programmes.
6. To oversee and ensure that the benefits specifically earmarked for certain target groups - It
shall be the duty of the DRDAs to oversee and ensure that the benefits specifically earmarked for
certain target groups (SC/ST, women and disabled) reach them. They shall take all necessary steps
to achieve the prescribed norms.
7. Conduct awareness regarding rural development and poverty alleviation - The DRDAs shall
take necessary step to improve the awareness regarding rural development and poverty alleviation
particularly among the rural poor. This would involve issues of poverty, the opportunities available
to the rural poor and generally infusing a sense of confidence in their ability to overcome poverty.
It would also involve sensitizing the different functionaries in the district to the different aspects
of poverty and poverty alleviation programmes.
8. Promote transparency -The DRDAs will strive to promote transparency in the implementation
of different anti- poverty programmes. Towards this end, they shall publish periodically, the details
of the different programmes and their implementation.
9. Ensure financial discipline -Keeping in view, the substantial investment that are being made in
poverty alleviation programmes, the DRDAs shall ensure financial discipline in respect of the
funds received by them, whether from Central or State Governments. They shall also ensure that

39 | P a g e
 the accounts are properly maintained including in respect of the funds allocated to banks or
implementing agencies in accordance with the guidelines of different programmes.
10. Vital role in planning and its implementation- The role of the DRDA is in terms of planning
for effective implementation of anti-poverty programmes; coordinating with other agencies-
Governmental, non-Governmental, technical and financial for successful programme
implementation; enabling the community and the rural poor to participate in the decision making
process, overseeing the implementation to ensure adherence to guidelines, quality, equity and
efficiently; reporting to the prescribed authorities on the implementation; and promoting
transparency in decision making and implementation.
11. Conduct of the BPL Census- In addition the DRDAs shall coordinate and oversee the conduct of
the BPL Census and such other surveys that are required from time to time.
12. The DRDAs shall also carry out/ aid in carring out action research/ or evaluation studies that are
initiated by the Central/ State Governments.
13. Research/ or evaluation studies -The DRDAs should deal only with the anti-poverty programmes
of the Ministry of Rural Development. If DRDAs are to be entrusted with programmes of other
ministries or those of the State Governments, it should be ensured that these have a definite anti-
poverty focus. Entrusting of any programme to the DRDAs, other than anti- poverty programmes
of the Ministry, be it of any other Ministry of Government of India or the respective State
Government will have to be done with the approval of the Secretary, Rural Development of the
respective State(s), who should examine such request in consultation with the Ministry of Rural
Development, Government of India, In such cases, it must be ensured that adequate provision is
made for requisite staffing needed for proper implementation of the programme.

2.3 NGO’S AND RURAL DEVELOPMENT

NGOs act as planners and implementers of developmental plans. They help in mobilizing the local
resources to be used for development. NGOs help in building a self-reliant and sustainable
society. These agencies play the role of mediator between people and government.

NGOs are very prominent in effective implementation of government programmes towards

sustainable rural development through the third party activities in education, health, agriculture,
community development, energy, environment, and waste, moral up bringing, youth . They have

40 | P a g e
the ability to experiment freely with innovative approaches and, if necessary, to take risks. They
are flexible in adapting to local situations and responding to local needs and therefore able to
develop integrated projects, as well as sectoral projects. Rural development has assumed greater
importance in India today than in the earlier period in the process of the development of the
country. It is a strategy package seeking to achieve enhanced rural production and productivity,
greater socio-economic equity, and aspiration, balance in social and economic development.

Non governmental organization (NGO) The World Bank defines NGOs as private organizations
that pursue activities to relieve suffering, promote the interests of the poor, protect the
environment, provide basic social services, or undertake community development

NGOs are difficult to define, and the term 'NGO' is rarely used consistently. As a result, there are
many different classifications in use. The most common focus is on 'orientation' and 'level of
operation'.
An NGO's orientation refers to the type of activities it takes on. These activities might include
human rights, environmental, or development work. An NGO's level of operation indicates the
scale at which an organization works, such as local, regional, national or international.

The term "non-governmental organization" was first coined in 1945, when the United Nations
(UN) was created. The UN, itself an inter- governmental organization, made it possible for certain
approved specialized international non- state agencies— ie., non- governmental organizations—
to be awarded observer status at its assemblies and some of its meetings. Later the term became
used more widely.
Today, according to the UN, any kind of private organization that is independent from government
control can be termed an "NGO", provided it is not-for-profit, non-criminal and not simply an
opposition political party.

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.
2.3.1 NGO’s and Rural Development:-
In India, the scope of development is not narrow but very wide, as it includes not just the economic
development but the growth on social front, quality of life, empowerment, women and child
development, education and awareness of its citizens. The task of development is so huge and
complicated that just implementing government plans is not sufficient to fix the problem. To
achieve this, a holistic vision and collaborative efforts involving various departments, agencies
and even NGOs is required. Owing to such a great need, the number of NGOs in India is increasing
rapidly and, at present, there are about 25,000 to 30,000 active NGOs in India.
`
Superficially, rural development seems to be a simple task but, in reality, it is not. Post-
Independence era has seen many rural development programmes through different five-year plans.
Alleviating poverty, employment generation, more opportunities for generating income, and
infrastructure facilities are emphasized through the policies and programmes of the government.
Along with this, the `have also been initiated by the government to strengthen the democracy at
grass roots level. But in spite of all the efforts rural poverty, unemployment rate, low production
still exists. The fight is still on for the basic facilities such as livelihood security, sanitation
problem, education, medical facilities, roads, etc. Still there is a huge gap in terms of infrastructure
that is available in urban and rural areas. The basic rural development should include all these
apart from employment, proper water supply and other basic facilities.

NGOs or Non-Governmental Organizations have more benefits of working in rural areas as

compared to governmental organizations because NGOs are more flexible, NGOs are specific to
a particular locality and moreover these are committed towards serving the public and community
as a whole. As the task of development is massive, many NGOs are playing vital role in the rural
development of India in collaboration with the government.

Since ancient times, social service has been an integral part of Indian culture. Soon after
Independence, a number of NGOs had emerged in India. Mahatma Gandhi even pleaded to
dissolve the Indian National Congress and transform it to a Lok Seva Sangh (Public Service

42 | P a g e
Organization). Though his plea was rejected, but the followers of Mahatma Gandhi started many
voluntary agencies to work on various social as well as economic issues of the country. This was
the first phase of NGOs in India.

HUMAN DIMENSION -Education -Social

Structure- Demography -Urban Lifestyle -
Culture

ECONOMIC DIMENSION- Agriculture,

ROLE OF NGOs IN RURAL DEVELOPMENT

Forestry- Rural Industry-tourism, Services,

Changing Economy

POLITICAL DIMENSION - EU Enlargement -

WTO & Subsidies- Food Safety & Lobbying

ENVIRONMENT & RESOURCES- Biodiversity

-Fragmentation-degradation -Pollution

SCIENCE & TECHNOLOGY- Bio Technology-

New Trends - It / Internet

ROLE OF NGOs IN RURAL DEVELOPMENT

The second phase of NGO development started in 1960 when it was felt that just the government
programs were not sufficient to complete the task of development in rural areas. Many groups were
formed whose role was to work at grass root levels. Moreover, favorable state policies had
drastically affected the formation of NGOs and their roles at that time. Over the years, the role of
NGOs in rural development of India increased. At present too, their role significantly changes with
the change in the policies of the government through different plans.

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In the sixth five-year plan (1980-1985), a new role for NGOs in the rural development had been
identified by the government. In the seventh five- year plan (1985-1990), the Indian government
envisaged an active role of NGOs in developing self-reliant communities. These groups were
supposed to show how the village resources along with human resource, skill, local knowledge
that is greatly underutilized could be used for their own development. As NGOs were working in
close connection with local people so bringing such a change was not a tough task for them.
Owing to this, in the eighth five-year plan, more importance to NGOs for rural development in
India had been given. Under this scheme, a nation- wide NGO network had been created. The role
of these agencies was the rural development at a low cost.

In the ninth five-year plan, it has been proposed that NGOs would play a significant role in
the development on the public-private partnership model. More scope has been provided to NGOs
by the government for rural development through the agricultural development policies as well as
their implementation mechanisms.

As with every five-year plan, the role of NGOs in the rural development of India is growing, so
NGOs are now attracting professionals from different fields. NGOs act as planners and
implementers of developmental plans. They help in mobilizing the local resources to be used for
development. NGOs help in building a self-reliant and sustainable society. These agencies play
the role of mediator between people and government. NGOs are actually the facilitator of
development, education and professionalization.

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 2.4 Self Help Groups (SHG’s) formation

The origin of SHGs in India can be traced back to the establishment of the Self-Employed
Women’s Association (SEWA) in 1972.Even before, there were small efforts at self-organising.
For example, in 1954, the Textile Labour Association (TLA) of Ahmedabad formed its women’s
wing in order to train the women belonging to families of mill workers in skills such as sewing,
knitting, etc. Ela Bhatt, who formed SEWA, organized poor and self-employed women workers
such as weavers, potters, hawkers, and others in the unorganized sector, with the objective of
enhancing their incomes.

NABARD, in 1992, formed the SHG Bank Linkage Project, which is today the world’s largest
microfinance project.From 1993 onwards, NABARD, along with the Reserve Bank of India,
allowed SHGs to open savings bank accounts in banks.

The Swarn Jayanti Gram Swarozgar Yojana was introduced in 1999 by GOI with the intention of
promoting self-employment in rural areas through formation and skilling of such groups. This
evolved into the National Rural Livelihoods Mission (NRLM) in 2011.

Self-help Groups (SHGs) are informal associations of people who come together to find ways to
improve their living conditions. They are generally self-governed and peer-controlled.

People of similar economic and social backgrounds associate generally with the help of any NGO
or government agency and try to resolve their issues, and improve their living conditions.

Many self-help groups are formed with the assistance of Self- help promoting agencies.

The various types of Self-help promoting agencies are stated below:

1. Non-governmental agencies
2. Government
3. Poverty management programmes
4. State & commercial banks
5. Microfinance institutions

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 6. SHG Federations
7. SHG leaders/Entrepreneurs.

2.4.1 NEED AND IMPORTANCE OF SELF HELP GORUPS (SHGs)

1) One of the chief reasons for rural poverty is the lack of access or limited access to credit
and financial services.
2) SHGs play a vital role in giving credit access to the poor and this is extremely crucial in
poverty alleviation.
3) They also play a great role in empowering women because SHGs help women from
economically weaker sections build social capital.
4) Financial independence through self-employment opportunities also help improve other
development factors such as literacy levels, improved healthcare and better family
planning.

5) The Rangarajan Committee Report highlighted four major reasons for lack of financial
inclusion in India. They are:
a. Inability to give collateral security
b. Weak credit absorption capacity
c. Insufficient reach of institutions
d. Weak community network
6) It is being recognized that one of the most important elements of credit linkage in rural
areas is the prevalence of sound community networks in Indian villages.

2.4.2 ADVANTAGES OF SELF HELP GORUPS (SHGs)

1) Financial Inclusion – SHGs incentivize banks to lend to poor and marginalised

sections of society because of the assurance of returns.
2) Voice to marginalised – SHGs have given a voice to the otherwise underrepresented
and voiceless sections of society.

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 3) Social Integrity – SHGs help eradicate many social ills such as dowry, alcoholism,
early marriage, etc.
4) Enhancing the efficiency of government schemes – SHGs help implement and
improve the efficiency of government schemes. They also help reduce corruption
through social audits.
5) Alternate source of livelihood/employment – SHGs help people earn their livelihood
by providing vocational training, and also help improve their existing source of
livelihood by offering tools, etc. They also help ease the dependency on agriculture.
6) Impact on healthcare and housing – Financial inclusion due to SHGs has led to better
family planning, reduced rates of child mortality, enhanced maternal health and also
helped people fight diseases better by way of better nutrition, healthcare facilities and
housing.
7) Banking literacy – SHGs encourage people to save and promote banking literacy
among the rural segment.
8) Gender Equality – By empowering women SHGs help steer the nation towards true
gender equality.
9) Pressure Groups – SHGs act as pressure groups through which pressure can be
mounted on the government to act on important issues.

2.4.3 PROBLEMS OF SELF HELP GROUPS (SHGs)

 Sustainability and the quality of operations of such groups have been questionable There
is Need for extending this idea into the poorest families, which is not necessarily the case
at present.
 Patriarchal mindset prevailing which prevents many women from coming forward.
 There is a need for monitoring cells to be established for SHGs across the country.
 There are about 1.2 lakh branches of banks in rural areas as opposed to 6 lakh villages in
the country. There is a need to expand banking amenities further.
 The SHGs work on mutual trust. The deposits are not safe or secure

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2.4.4 FORMATION SELF HELP GROUPS (SHGs)

The SHG is an association of people belonging to similar socio-economic characteristic, residing

in same locality. The SHGs are voluntary associations of people formed to attain some common
goals. These are groups, which have similar social identity, heritage, caste or traditional
occupations, and come together for a common cause and manage resources for the benefit of the
group members. The SHG is a group of urban women who have volunteered to organize
themselves into a group for eradication of poverty and also the empowered of the women. They
agree to save regularly and convert their savings into a common fund. The members of the group
agree to use both this common fund and the other funds that they may receive as a group through
a common management.

1.The SHGs are presently promoted by Governments, Development Banks and Voluntary
Agencies, with focus on social and economic issues, mainly thrift and credit programmes.

2. As per the guidance of the Mahalir Thittam each Self Help Group should contains 12 – 20
members. If a group is too small, the strength of the group will be weak and the diversity to ideas,
talent and skills will also by very less. If a group this too large, then each member will not be able
to participate to a great extent in all the activities. Therefore, now–a-days, they likely to keep total
membership of each Self Help Group comprises of 15 – 20 members.

FORMING STORMING NORMING PERFORMING

STAGE STAGE STAGE STAGE

FORMATION SELF HELP GROUPS (SHGs)

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3. There are four stages of group formation:

1) Forming Stage This is the first stage during which organizers explain the concept of Self
Help Groups. After this introductory session, women usually agree to form a group.
2) Storming Session In this stage, a lot of queries arise in the minds of SHG members. Their
hidden anxieties and fears are expresses during the meeting and conflict between individual
interests and group interest are also evident.
3) Norming Stage In this stage, members begin to internalize the concept of “self – help”.
The members try to understand the concept of experience of meeting, interacting,
contributing, saving and lending if a particular group by other group members.
4) Performance Stage Both the task and maintenance functions of the group are clearly
realized by the members of the group at this stage. The members approach the bankers for
further credit and the group is perceived as a means for income generation and collective
action.

Every Self-help group usually goes through 3 stages of evolution stated below:

1. Formation of group

2. Funding or Formation of Capital

3. Development of required skills to boost income generation for the group

2.4.5 ROLE AND FUNCTIONS OF SELF HELP GORUPS (SHGs)

1) SHGs try to build the functional capacity of poor and marginalized sections of
society in the domain of employment and income-generating activities.
2) SHGs are an important source of microfinance services to the poor.
3) They act as a go-through for formal banking services to reach the poor, especially
in rural areas.
4) They also encourage the habit of saving among the poor.

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 5) They offer collateral-free loans to sections of people that generally find it hard to
get loans from banks.
They also resolve conflicts via mutual discussions and collective leadership. Thus SHGs
are playing vital role in rural development in India,

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