CHAPTER-II RURAL DEVELOPMENT PROGRAMMES IN INDIA: A HISTORICAL OVERVIEW

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1 CHAPTER-II RURAL DEVELOPMENT PROGRAMMES IN INDIA: A HISTORICAL OVERVIEW The relevance and acceptability of the outcome of rural development programmes rests upon the degree of public participation not only in the decisions themselves but in details that leads to those decisions. H.A Hiatt

2 45 Introduction Development of rural areas and alleviation of rural poverty came to be recognized as the sinequa-non for the national development and social welfare. Thus any strategy of socio-economic development in India that neglect rural people and rural areas cannot be successful where more than 600 million people live in rural areas. Thus in India various programmes have been launched during successive Five Years plans to uplift the rural population from the abject poverty and unemployment. Thus in this chapter attempt has been made to examine i) the rural development programme through voluntary organization during pre-independence era and ii) rural development programme in the post independence period. However, more than 75 per cent of population in India lives in rural areas and agriculture is their main occupation. As agriculture depends mostly on nature and nature is not always static thus the agriculture is always a prey to the erratic and crude behavior of nature. This caused misery to the life of rural people thus mostly rural people poor had to lead a life of drudgery, ill fed, ill sheltered, ill clothed and ill nourished. As their number is always high in number in comparison to urban population thus rural development is always an item in the Planning agenda since independence. Thus it is pertinent to study the causes and importance of rural development programme in India. However, in this chapter an attempt has been made to analyse the evolution and importance of rural development programmes in India, rural development by different organizations before independence and rural development programme in the post -independent period in India. The concept of rural development is not new to India; rather it deals back to country s ancient civilization. It had a long history of its growth and development since time immemorial. It received the attention of Gandhiji, Tagore and many others much before independence. Hence, it has two components: rural and development in which rural denotes an era which is

3 46 characterized by non- urban style of life, occupational structure, social organizations and settlements pattern, where as development means qualitative as well as quantitative socio-economic change not only relative but also subjective. India has been the land of villages. The villages have been the basic units of administration as far as Vedic period. During the ancient era, villages in India have been considered as the growth center of human civilization, because the village people used to organise themselves into self-sufficient, hardworking, co-operative and were governed by democratically constituted body by local community popularly known as Panchayats. Agriculture was one of the chief occupation and also very means of livelihood of the ruralities of India. Tradition, customs, conventions, cultures were the very bases of the village community. Social tranquility was very much prevalent. Thus the rural people had a life of ease. However, as the time passed, there are also marked changes in the historical, sociological, political and economic factors along with the structure, organization and ethos of the village communities began to be influenced in many ways. (Shiwalkar, 1968,14.) During the Vedic period, the village lives were full of discipline and happiness. The chief occupation of the Aryans was agriculture. In order to strengthen agricultural productions the Aryans had introduced wells and canales to irrigate their agricultural land.1 However, during the Vedic period, all the developmental work of the villages conducted by villages through collective efforts. The concept of rural development was also very much there during the medieval period, which is evident from the administration of Sher Shaha, the emperor. He gave a new meaning to rural development by introducing steps to improve the agriculture by reducing the land revenue, measuring of land, 1 N.N.Gosh, Early History of India. The Indian Press, Allahabad, 1964,p.77

4 47 constructing roads for the betterment communication and transportations.2the great Emperor Akbar during his reign also initiated some rural developmental activities like: survey of agricultural land for the welfare of the cultivation.3 However, the village system was completely destroyed during the Colonial regime and it had a very serious impact on the traditions, customs, and culture, of the rural life. It is often argued that heritage of Colonialism is partly responsible for the present day backwardness and stagnation in the Third World Countries including India. During those days, feudal economic structures were found in most parts of the India. The rural populations were largely illiterate and were engaged in subsistence agriculture. They were accustomed to traditional methods of productions and pre- industrial technology. The Britishers approached the rural development from the humanitarian point of view. The occurrence of recurrent famines and consequent sufferings of the rural poor forced the Britishers to take necessary measures in this direction. The first reformation ever taken up by the Britishers to develop the rural areas was the formation of local- self-institutions. The idea behind this was that, the village community people would elect the representatives to these institutions. As these representatives were from among the villagers they would solve those according to their needs and wishes without intervention of any outsiders. It was Lord Mayo, who initiated this reform, which was a part of the financial reform of 1870 which was popularly known as Resolution of provincial financial authority in the hands of the Local people in the form of different rural developmental projects. The funds allocated to the local -self institutions through different projects aimed at devoting them towards educational development, sanitation, public health and local public work etc. The impact of this particular resolution was not that effective but one important result of this 2 R.C. Majumdar, (ed.) The Mughal Empire. Vol.VIl, Bharatiya Vidya Bhawan, Bombay, 1974, p.85 3 Frederick Augustes. The Emperor Akbar. Vol.1. Academic Asiatic. Patna, 1973,pp

5 48 resolution was between the number of local-self institutions increased to a large extent.4 Another important contribution of the colonial rule towards the rural development was in form of Lord Ripon, Lord Ripon further extended the localself institution to the rural areas also, with the intention to trained the rural people with the political education and uplift and empowers them. The tenure of Lord Curzon as viceroy in India was a golden period in the history of Colonial rule. He had made landmark in the field of rural development. During his period, between , emphasis was laid on improvement of agriculture, through establishment of the Department of Agriculture at the national level, Provincial Departments of Agriculture, Agricultural College, Provincial research institutes and an experimental farm at each important agricultural zone. Besides these he also constituted one Central Research Institute for agriculture at Pusa (Bihar) in 1903 and the Indian Agricultural Services in Prior to independence, the other notable step that was initiated under newly introduced constitutional changes was the Government of India Act, Through this Act considerable amount of autonomy were entrusted with the provincial government Issues like rural development, agricultural development, promotion of village industries, and improvement of village communication, rural sanitation, and medical facilities were in its priority agenda.6 It is evident from the review of the rural development during preindependence era is that besides few Britishers, the main aim of the colonialisation was the economic exploitation. As such the agriculture in India was in primitive and backward stage. On the top of that the Britishers exploited and extracted raw materials from India. They used those raw materials for the ibid S.N. Bhattacharya, Rural development in India and Other Developing Counties. Metropolitan. 6 Ibid 1983, p.24

6 49 development of their industries. They also secured market for their manufactured goods. The Britishers got all the commercial crops like cotton from India to meet the requirement of raw material for their industries in Britain and exported the British manufactured goods to India. In the process they destroyed India s indigenous industries. As a result of this there was increased unemployment and growing poverty in the Indian economy. Thus, because of colonial exploitation Indian economy became dislocated, dependent, stagnant and backward. Therefore, any strategy of socio-economic development in India that neglects the rural people/ area can never be successful. However, the initiation of rural development during pre-independence India by Lord Mayo, Lord Ripon, and Lord Curzon were the eye opener. They gave new dimension to rural development by introducing local-self institutions both at the provincial and rural level. Besides these the changes that were enacted between 1919 to 1935 such as development rural areas, agriculture, village industries, sanitation, communication, medical facilities which added meaning to rural development. Therefore, rural development in India is a sinequa-non of development. 2.1 Rural Development through Voluntary Organizations during Pre- independence Era: The aim of rural development is the improvement of village areas in all directions. Rural development has been described as a Challenge for a mission to fight against poverty, illiteracy, stagnancy, and unemployment, ill health and various socio-economic stuffs and dynamic backwardness.7 The problem is not rural merely one of development of rural areas but, the development of rural communities to dispel ignorance and poverty and assist the process of creating self-reliant and self-sustaing, healthy local communities.8 To combat these problems during pre-independent era some 7 See S.N. Bhattacharya, Rural development in India and Other Developing Countries. Metropolitan, New Delhi, 1983, p See A. R. Patel, et.al, Integrated Rural Development Programme: Need for Scientific Planning and Effective Implementation, Financing Agriculture. Vol.XVI, No.3, July- Sept, 1984,p.27

7 50 voluntary organizations "have undergone massive experimentation in rural development. In this section an attempt has been made to analyse the role of voluntary organization in improving the rural areas through different types of developmental measures. However, rural development received popular support during the time of freedom movement following innovative experiment started by eminent personalities like Mahatma Gandhi and Rabindranath Tagore etc. During, pre-independent era the first ever attempt by any voluntary organization in the field of rural development was applied in India through Gandhian approach to rural development, which was based on the principle of Sarvodaya. Gandhiji was of opinion that, if inner spirit of human being will be enlightened then it will arouse in them moral values. And the moral values like truth, non-violence, dignity of working; fearlessness etc. should be the bases of humankind, which will ultimately promote in them the spirit of self-sufficiency, self-help, and co-operation. Which were earlier, the very base of rural life but got destroyed by colonialisation. That is why he wanted to revive all those moral values among rural people. He gave less stress/ importance to material development of the villages. He was organizing and initiating all these through his organization Sevagram.9 The other stalwart of rural development was Rabindranath Tagore. He gave dynamism to rural development. For the purpose, he established a voluntary organization to carryout his work named as Sriniketan the Institute of Rural Reconstruction, in The aim of this institute was to revive the old customs, traditions, and above all to bring back life in its completeness into the villages, making rural folks, self-reliant and self-res pectfull, acquainted with the cultural tradition of their own country and competent to make an efficient use of modern resources for the improvement of their physical, intellectual and economic conditions which had destroyed during the colonial rule.10 9 Gandhi, M.K. (1962), Village Swaraj, Navajivan Publishing House, Ahmedabad, p.iv. 10 Mishra, S.N. (1989), New Horizons in Rural Development Administration, New Delhi, Mittal Publications, pp

8 51 Beside, this some rural development programmes were also initiated at the state level during the pre-independence era. Most important of such programmes were: i) Gurgaon Scheme of village development, ii) Rural reconstruction through community participation in Baroda, iii) Firca development scheme in Madras, iv) Rural development programme in Etawah of Uttar Pradesh, v) Rural development programme through vocational training -cum-production in Haryana etc. are discussed in detail below. The effort of Spencer Hatch initiated one programme for the all round development and upliftment of the rural people. Spencer was of opinion that if the life style of the rural poor will improve economically, socially, mentally, and physically then only they will develop a sense of co-operation, fellow fellingness, self -respect etc. This experiment was popularly known as Martadam Experiment. The experiment was successful but could not last long because it was started in a very small scale.11 The famous Gurgaon Scheme of Village Development started in Punjab in The Deputy Commissioner of Gurgaon district, Mr. Brayne in order to improve the living standard of the rural poor, initiated this scheme. His idea of initiating this scheme was for the all-round development, well being of the villagers, improvement in their living standard and also to broaden their outlook. His works were highly appreciated by the government people. Thus not only the rural masses but also the government participated in the village reconstruction work.12 The other important contribution in the field of rural development was experimented by the Maharaja of Baroda in 1932 for rural reconstruction and this was implemented as a comprehensive and progressive programme of rural reconstruction by then Diwan of the state, Sri V.T.Krishanamachari with an aim 11 Ibid. 12 Ibid

9 52 of developing the standard of living of the rural poor and arouse in them the capacity for self-help, self-reliance which was proved to be very successful.13 Mr. T. Prakasham introduced on an experimental basis rural development programme through the Firca Development Scheme in Madras in 1946 with an objective to develop the villages adopting Gandhian Principle of Village Swaraj for the all-round development of rural people by providing them with education, economic, sanitary and other improvement of the villages and arousing in them the spirit of self-reliant, self-confidence. The Firca Development Scheme was emerged with the 'National Extension Service in Besides rural reconstruction, sanitation and economic and educational development the other important aspect of rural development was environmental protection, communication facilities etc. Mr. Albert was Mayer; an eminent American engineer started a rural development project in Etawah district of Uttar Pradesh in This Etawah district had usual rural development problem such as inferior quality of cattle, traditional pattern of cultivation with poor communication. Mr. Mayer through this project tried to solve these problems systematically and transformed Etawah district into a potential and developed district (Mosher, ) The other most remarkable steps taken for the rural development was famous Nilokheri Experiment, which was launched in February 1948 in Haryana. This was quite different from all other rural development programmes. The aim of this project was to make rural poor of using their potential capabilities in the proper way. This project diversified the dimension and occupation of the rural people because of the crudeness of the nature agriculture used to suffer very badly. As a result of which the rural people were leading a poor life. For this a vocational training -cum-production center was set up at Kuruksehetra, in order to carry out various activities like spinning, 13 ibid. 14 Government of India, (1962), Evaluation of Community Development Programme, Panchayati Raj & Co-operation, New Delhi, pp

10 53 weaving, tailoring, laundering, soap making, leather painting, calico painting, black smithy, carpentry, tin smithy, motor mechanism, driving, poultry keeping, embroidery etc.15 There was also one educational programme especially for rural poor farmers initiated in order to make them aware of the new agricultural method to improve in agricultural production to adopt farming pattern which would ultimately ensure to better living standard and better community life in the rural areas. There were some of the efforts undertaken both by voluntary organizations and some by the government during the pre-independence movement. Some rural development programmes were successful while others were not. But despite all remarkable efforts it failed to bridge the gap between the rich and poor because most of the projects were in small scale and confined to small locality, thus the benefits also went to very few villages. 2.2 Rural Development Programmes in the Post Independent India After the end of the colonial era, India emerged as an independent nation in Indian experience of development from the above discussion shows that rural development had been given importance during the preindependence period. It was only after independence the rural development received a new dimension of its own. During this period there were wide spread poverty, millions were ill-fed, ill-clothed, ill-housed, ill- nourished and illeducated and were leading miserable life. In order to tackle these problems, large numbers of rural development programmes were implemented by the governmental, non-governmental agencies along with national and international level funding agencies for the development of the rural areas and upliftment of the rural poor people. 15 Ibid.

11 54 However, in the post independent era the primary objectives before the government was rapid economic growth, which could only have been possible through industrialisation, improved agriculture, expansion of education and other social services because these were the basic needs of the economy. In order to achieve this target India after independence required a unified centralised planning which was highly desirable. Thus, on March 15th, 1950, government of India constituted one National Planning Commission. The rationale behind Indian Planning was to mobilize resources according to the pre-determined priorities in order to achieve a 'proportionate and continuous growth of national economy. Thus planning has because an integral part of the Indian economic system. In spite of having developmental planning with eradication of poverty and benefits to the weaker section of the rural community as its chief objective yet after five and half decade of planning the country is still struggling hard to extricate herself from the abysmal trough of income. Thus through various Five Year Plans efforts have been made to uproot the very cause of under development of economy and encouragement of effective participation. Therefore, the thrust of rural development programme has been to make a frontal attack on poverty through special employment generation programmes, productive assets transfer though institutional credit and subsidy programme and programme of rural housing, drinking water and sanitation, special social security programme for providing assistance to destitute and poor families. However despite massive investment undertaken in the wake of planning during the last five and half decades, a large portion of Indian population still living below the poverty line which indicates the failure of Indian planning. The reason behind the failure of Indian planning in Indian is that there was persistence of gap between target and achievement leading to non-fulfillment of several important objectives of planning has generated a stronger feeling of dependency and helplessness.16 The other reason of unsuccessfulness of Indian Planning was that the Planning Process itself has become more or less 16 Planning Commission, Govt, of India, Draft of Five Year Plans,

12 55 a routine, stale and prisoner of its own premises, a wishful thinking unable to cope with the changing realities. The other reason is that the Indian planners still continue to harp on some of the old tunes despite repeatedly proven irrelevant and ineffectiveness. (Prasad, 1984, P-1). Thus as the planning has substantially failed to transform the backward agrarian economy into a rapidly growing one, it is clearly evident from the fact that, there was wrong in the strategy adopted for the economic development or there were fallacies in the execution of those developmental programmes. Therefore, it is highly imperative to undertake a diagnostic probe into the realities of Indian Planning exercise. Indian experience of development shows that rural development had been given importance during the pre-independence the Rural Development received a new dimension of its own been a number of importance in rural economy. Poverty alleviation and raising the average standard of living have been the central aims of economic planning in India. The plan strategies can be broadly divided into three branches. In the first phase the prime emphasis was on growth mainly through improvement in infrastructure and heavy industries. In the second phase poverty alleviation programme came to be adopted as an. explicit objective of the economic planning. In the third phase growth" and poverty alleviation were the twin complementary factors. Poverty alleviation cannot be made effective in isolation of growth. Growth can be expected to contribute to higher standard of living and at the same time, reduced poverty may also enhance the products of higher growth. However, poverty alleviation programme seeks to promote selfemployment by providing the poor household with productive assets through credit facilities along with subsidies. It at the same time provides usage employment and in the process creates community assets. The 1st phase of Rural Development may be said to begin with the introduction of community development, rural extension programme, abolition of intermediaries, land reforms, democratic decentralisation and prioritized investment in agriculture and irrigation. This aims at the integration of the rural overall development of

13 56 the Indian economy. The failure to integrate the poverty alleviation objective with the overall develop strategy or to put it more accurately, the failure of agricultural growth to make a sizeable dent on rural poverty led policy makes to focus attention on the strategy of "direct attack on poverty through poverty alleviation programmes. Such a realization of the macro policy failure to bring about development at the grass root level may be identified with the beginning of the second phase of the rural development and change. However the major programme undertaken by the Central and the State Governments in order to carry out the benefits of developments to India s 5,75,000 villages and improve the living standard of the rural poor, particularly those living below the poverty line. These rural development programmes are categorized into a number of: groups specifics, region specifics, rural developments and poverty alleviation programmes, which were phased out in various Five Year Plans. Hence an attempt has been made to analyse some of the important rural development programmes implemented both by Central and State Governments which are broadly grouped as - (1) Agricultural Development, (2) Employment Generation Programme, (3) Area Development Programme and (4) Social Development Programmes. (A detailed list of Rural Development Programmes in India has been presented in Appendices). (1) Agricultural Development Programme 1. Land Reforms. (LR) 2. Bhoodan Movement- (BM) Community Development programme- (CDP) National Extension Service- (NES) Panchayati Raj- (PR) Integrated Agricultural District Programme- (IADP) Intensive Agricultural Area programme- (IAAP) High Yielding Variety programme- (HYVP) Small Farmers Development Agency- (SFDA) 1969.

14 Marginal Farmers and Agricultural Laborer s Development Agency (MFALDA) integrated Rural Development Programme- (IRDP) $ (2) Employment Generation Programmes (1) Rural Industrialization- (RI) 1962 (2) Crash Programme for Rural Employment -(CPRE) (3) Food for Work Programme- (FWP) (4) National Rural Employment Programme- (NREP) 1980 (5) Rural Landless Employment Guarantee Programme- (RLEGP) (6) Jawahar Rozgar Yojana -(JRY) (7) Employment Assurance Scheme- (EAS) (8) Jawahar Gram Samridhi Yojana- (JGSY) (9) Swarnjayanti Gram Swarozgar Yojana- (SGSY) (10) Sampoorna Gram Rozgar Yojana- (SGSY) (3) Area Development Programme a. Tribal Area Development Agency- (TADA) 1962 / Integrated Tribal Development Programme- (ITDP) 19 b. Drought Prone Area Programme- (DAPA) c. Command Area Development Programme- (CADP) d. Desert Area Development Project- (DDP) e. Integrated Rural Energy Programme -(IREP) (4) Social Development Programme a. Minimum Need Programme- (MNP) b. Twenty Points Programme and Revised Twenty Point Programme-(TPP) 1975.

15 58 c. Training for Rural Youth for Self-Employment - (TRYSEM) d. Development of Women and Children in Rural Area- (DWCRA) e. Accelerated Rural Water Supply Programme- (ARWSP) f. Million Wells Scheme- (MWS) g. Indira Awaas Yojana-(IAY) h. Rajiv Gandhi National Drinking Water Mission- (RGNDWM) i. National Social Assistance Programme- (NSAP) j. Credit-Cum -Subsidy for Rural Housing Scheme -(1999). The basic features and objectives of the programmes under Agricultural Development Programme are enumerated below Land Reforms (LR) At the time of independence three types of land tenure systems were prevalent in the country: Zamindari, Mahalwari and Ryatwari. Approximately 57 per cent area of the country was under Zamindari system, where as Ryatwari covered 38 per cent, while Mahalwari was restricted to only 5 per cent of the area.17 Thus after independence the government of India enacted laws to abolish the intermediaries. However, these were entirely inadequate to have any drastic impact on the agrarian structure Thus after independence the land reform policy was adopted, which aims at restructuring agrarian relations to achieve an egalitarian social structure, elimination of exploitation in land relations, realizing the age old goal of land to tiller, increasing agricultural productivity and production and infusing equality in local institutions. 17 Thirumalai, S.T, Post War Agricultural Problems and Policies in India, p.129.

16 59 However, the aim of Land Reform in the successive Five Years Plans in the fulfillment of all the principles of the National Land reforms Policy consisting of the following objectives: i) abolition of intermediary tenures, ii) tenancy reforms, iii) ceiling on agricultural holdings and redistribution of surplus land, and iv) updating and maintenance of land records. Land reforms have been enunciated and re-emphasized in both the Seventh and Eighth Five Year Plans to be an intrinsic part of rural anti-poverty strategy. Yet there is ample evidence to conclude that implementation of land reforms in India have been wrought with serious snags and political apathy Bhoodan Movement (BM) Areharya Vinoba Bhave launched this movement in This was in the form of a moral appeal to the landowner classes to donate some portion of their land holdings to the landless workers of the society. This appeal worked, at times people used to donate either disputed landed property or the wastelands to landless workers through Bhoodan Movement Organization Community Development Programme (CDP) The Community Development Programme (CDP) was launched during the First Five Year Plan period on 2nd October The CDP was considered to be the process by which efforts of the people themselves are combined with those of governmental authorities to improve the economic, social and cultural, communities to integrate them into the life of the nation and to enable them to contribute fully to national progress.19 Through CDP a systematic approach made to reach as much as rural poor as possible through development activities more particularly in the field of agriculture, animal husbandry, social education, public health, programme for women, children and youth. This was a unique step taken which was viewed as unparallel in the history of any developing country. The main objective of CDP was to secure the total development of the material and human resources of rural areas and to 18 Ibid, UN reports on Community Development and Economic Development, p.1

17 60 develop the local leadership and self-governing institutions. The central idea behind CDP was to raise the local community to higher level of living with active participation and initiatives of the local people. According to the First Five Year Plan: community development was the method and rural extension is the agency through which the Five Year Plan seeks to initiate a process of transformation of the social and economic life of villagers. However, this programme could not bring about a significant increase in agricultural production either because of the wide range of activities to be covered within limited resources and lack of co-ordination at the district, block and village levels. As a result, the country faced acute food shortage, which pressurized the government to import huge quantity of food grains and to increase the food grains production as well.20 The programme relating to CDP is presently the responsibility of the Department of Rural Development under the Ministry of Agriculture National Extension Service (NES) National Extension Service was launched in April 1953, which was the extension of CDP.This scheme was designed to provide the essential staff and funds, so that people could start developmental work on the basis of the selfhelp. The NES blocks were subsequently merged with CDP blocks and the pattern of CDP was further revised with effect from 1st April However, irrespective of the results CDP and NES programme, it has been considered as the first people s programme to accelerate the process of development in rural areas Panchayati Raj (PR) After the creation of the new ministry of Community Development, and to transform the CDP into a people s movement, a committee on plan project was set-up in January, 1957 under the chairmanship of Mr. Balwant Rai Mehta to evaluate the experience of NES and examine the possibility of improving the 20 Government of India, (1951), First Five-Year Plan, Planning Commission, New Delhi. P.223

18 61 functioning of Community Developed blocks. The report pointed out that CDP was not successful because it failed to evoke local initiative and that in the absence of local initiatives and local interest, development would not be possible. Again keeping in view the principle of democratic decentralization of administration, the committee recommended a three tier system of local government named as Panchayati Raj by the then Prime Minister Pandit Jawahar Lai Nehru set-up in the state consists of i) Gram Panchayat at the village level, Panchayat Samiti at the block level and Zilla Parishad at the district level. The tier structure of Panchayati Raj was brought into existence after National Development Council (NDC) approved the report in January However, the villages Panchayats have been an age-old institution in India deriving power from the customary laws and local conditions. But the present system of PR based on the principle of Gram Swaraj visualized by Father of the nation, Mahatma Gandhi. This PR system has been accepted as the institutional pattern for rural development. The role of PR system was to educate and motivate the rural people and encourage them to adopt improved and scientific methods of farming, maximum mobilization of human resources in rural areas and enhance the process of socio-economic formation in the countryside. Broadly, the village Panchayats are responsible for improvement of agriculture, village industries, animal husbandry, communication, sanitation, primary education and public health etc. Andhra Pradesh was one of the pioneering states, which adopted the new system of PR institution. Although, in theory, the PR bodies are considered as the agencies for rural planning and development, but in practice it was being done by government agencies. Besides, the power and responsibilities, administrative and technical, personnel and financial resources were being said to be transferred to the elected bodies but in practice the role of PR found to be very much limited. The existing PR bodies had become mere agencies of the state government. In order to transform it into a people oriented institution, the PR institutions were revived into an instrument for participative planning and

19 62 implementation of various development programmes at the grass-root level. And the Ministry of Rural development is constantly making effort to empower them in terms of functions, power and finance. Thus, it was decided to observed as the year of Gram Sabha. Hence, the 73rd Constitutional Amendment Act, 1992 was a landmark step in the history of PR in India, which welcome into force on 24th April The 73rd Amendment Act gave constitutional status to the Gram Sabha. The salient feature of newly revived PR institution were i) to provide three-tier system of PR for all state having population of over 20 lakh, ii) to hold Panchayat elections regularly ever 5yaers,iii) to provide reservation of seats for SCs and STs and women (not less than 33%) iv) to appoint State Finance commission to make recommendations regarding financial powers of the Panchayats, and v) to constitute district planning committee to prepare draft development plan for the district as a whole.further the provisions of the Panchayats ( Extension to scheduled Areas) Act, 1996, extends panchayat to the tribal areas of eight states. Besides, the Ministry has also extended limited financial assistance to the states to train and create awareness among the elected members of Panchayats and functionaries. From time to time the elected members also doing research, evaluation studies related to Panchayati Raj. No-governmental agencies and self-help groups and Pr institutions have been accorded adequate role in the new initiative. One of the important achievements of 73rd Constitutional Act is that it has empowered the rural poor, illiterate, traditional women to participate in local government with full vigc^ Integrated Agricultural District Programme (IADP) In response to food crises of 1957, the government of India initiated a team of agricultural experts from USA in January 1959 to study India s food problem and to recommend for raising agricultural production very quickly. The Ford Foundation of USA sponsored the research team. In the year , on the basis of the report of the Ford Foundation team known as India s Food Crises and steps to meet it, a significant feature took place and a new

20 63 programme known as Integrated Agricultural District Programme (IADP) in 15 selected districts (one district in each state) based on the principle of concentration and better management of resources and efforts in potential and responsive areas with assured water supply was introduced. It was developed on the basis of 10-point programme.21 IADP was approved and included by Government of India in the Third Five Year Plan, which stated: In pursuance of this proposal, IADP has been up, to begin with, in one district in each state. Its immediate goal was to achieve rapid rise in agricultural production through a concentration of financial, technical, extension and administrative resources. The main objectives of IADP were: adoption of a package of production, ensured the availability of credit and production inputs, adequate information on research activities, training and education of the farmers and extension personnel, storage and marketing arrangements and price support etc. which would encourage the cultivators to adopt scientific methods of farming. The noble purpose of the programme was to boost farmer s income and to improve the economic conditions of the village so as to provide a sound agricultural base to stimulate the process of an overall economic development and social upliftment of the weaker sections of the society. Through IADP, the traditional type of farming got transformed into scientific farming, extensive cultivation to intensive cropping, and production for home consumption to production to marketable surplus. Further for the effective functioning of the programme one administrative unit was set-up to look after the planning, monitoring and executing different aspects of the scheme. Which comprised of one project officer at the district level with four to five subject matter specialist (SMS) and other supporting staff. At the block level, the coordinating officer was the Block Development Officer with three or more agricultural officers and cooperative 21 Government of India, (1963), IADP report ( ), Expert Committee on Assessment and Evaluation, Ministry of Food and Agriculture, New Delhi, pp.2-3

21 64 Extension Officers and few others officers and 20 village level workers in each block at the field.22 Unlike other rural development programmes this programme was not free from shortcomings. The programme had massive setback because of the sever droughts in and Despite that the concept of package of improved practices evolved was found to be effective and practicable. Thus the government decided to expand it to other districts through Intensive Agricultural Area Programme Intensive Agricultural Area Programme (IAAP) Intensive Agricultural Area Programme, a similar type of programme and a modified version of IADP because in this scheme intensive agricultural development of the area as a whole, instead of district on the basis of potential of a single crop. It was a less intensity and staffing pattern. It was for the first time that a sizeable proportion of cropped area was brought under intensive production but without increase in resources High Yielding Variety Programme (HYVP) Government of India adopted and implemented the recommendations of the Ford Foundation. In order to make the IADP and IAAP viable, and also out of the short coming of these two programmes a new rural development programme emerged in august1965 named as High Yielding Variety Programme (HYVP). The chief objective of this programme is to development the agricultural production by adopting and supplying the farmers with high varieties of seeds backed by use of fertilizers, pesticides, adequate water supply, agricultural machinery and other equipment marked a turning point in the modernization of traditional agricultural growth. Thus it became the very 22 For a brief survey of all these studies see Gaikwad, V.R., et,a! (1977), Development of intensive Agriculture: Lesson from IADP. Center for Management Studies in Agriculture, IIM, Ahmedabad, pp Padhi, K.C, (1969), Rural Development in Modern India, B.R. publishing Corporation, New Delhi, pp.86-96

22 65 instrument of agricultural growth. The raft outline of the Fourth Five Year Plan stated: It is necessary to make for greater use of modern methods of production and to bridge the gap between demand and production by the application of the latest advance in the science of agriculture \24 Government of India adopted and implemented the recommendations of the Ford Foundation. In order to make the IADP and IAAP viable, and also out of the short coming of these two programmes a new rural development programme emerged in august1965 named as High Yielding Variety Programme (HYVP). The chief objective of this programme is to development the agricultural production by adopting and supplying the farmers with high varieties of seeds backed by use of fertilizers, pesticides, adequate water supply, agricultural machinery and other equipment marked a turning point in the modernization of traditional agricultural growth. Thus it became the very instrument of agricultural growth. The raft outline of the Fourth Five Year Plan stated: It is necessary to make for greater use of modern methods of production and to bridge the gap between demand and production by the application of the latest advance in the science of agriculture.2s Government of India adopted and implemented the recommendations of the Ford Foundation. In order to make the IADP and IAAP viable, and also out of the short coming of these two programmes a new rural development programme emerged in august1965 named as High Yielding Variety Programme' (HYVP). The chief objective of this programme is to development the agricultural production by adopting and supplying the farmers with high varieties of seeds backed by use of fertilizers, pesticides, adequate water supply, agricultural machinery and other equipment marked a turning point in the modernization of traditional agricultural growth. Thus it became the very instrument of agricultural growth. The raft outline of the Fourth Five Year Plan stated: It is necessary to make for greater use of modern methods of 24 Fourth Five-Year Plan, Planning Commission, Government of India, (1969), P Ibid.

23 66 production and to bridge the gap between demand and production by the application of the latest advance in the science of agriculture \ Small Farmers Development Agency and Marginal Farmers and Agricultural labours Development Agency (SFDA &MFALDAP) The Indian Planners have expected that the land reform programmes and Green revolution were affected in reducing the incidence of rural poverty. But is widely felt that the small and marginal and also agricultural labourers do not benefit from the Green Revolution and on the other hand, the gap between the rich and small, marginal farmers has started widening; besides there was also increase in regional variations in agricultural development. Thus the All India Rural Credit Review Committee in 1969 in its report recommended for the establishment of a country-wide net work of pilot project in the form these special programmes I) the Small Farmers Development Agency (SFDA), 2) Marginal Farmers and Agricultural Labourers Development Agency, (MFALDAP). During the Fourth Five Year Plan, the then Prime Minister, Mrs. Indira Gandhi, gave more stress on eradication of poverty, under which a whole lot of development programmes of the weaker sections of the society was launched. The above two discussed programmes were also the by-product of this. The basic objectives of these programmes were I) to promote small/marginal farmers through facilitating extensive use of new agricultural technology and inputs like high yielding variety of seeds and fertilizers, and additional production assets like wells, tube wells, pump sets, bullocks, farm implementation.27 In order to fulfill these objectives i.e., identification of small features, marginal farmers, agricultural laboures and their problems, formulation and 26 ibid. 27 Programme Evaluation Organization, Planning Commission, Government of India, (1985), New Delhi.

24 67 execution of model plans to resolve the different problems and to review the progress of the execution of these activities as well as the effectiveness of the efforts undertaken to benefit the target groups, they were given necessary assistance by existing agencies and financial institutions. (Mohsin, (1985), pp.5-16) Of the various activities undertaken by SFDA/MFALDP, the provision of supplementary sources of income like diary and other type of animal husbandry, bullock carts, and small handicrafts were made in which special loans at concessional rates were granted. Further incase of all the productive schemes, 25 per cent of the total amount was sanctioned as subsidy for the small farmers and per cent for the marginal farmers and agricultural labourers and the rest as loans. The main emphasis of the SFAD/MFALDP was on the crop husbandry in irrigated and rain fed areas. The programme was duly supported by activities like development of minor irrigation, soil conservation and land development, water harvesting techniques, consolidation of holding coupled with a shaping and construction of watercourses and field channels. Under the programme emphasis was also laid on strengthening the cooperative sector for smooth flow of credit to the identified small and marginal farmers. Further, provisions were also made for strengthening the market and go down facilities. However, the SFDA/MFALDA and agricultural laboures development designed to raise the income levels of the target groups resulted in deprive because there were i) no scientific and methodical survey was taken up to identify the beneficiaries, ii) no concrete plan for a block was prepared, iii) within the category of target groups, the topmost brackets were selected leaving the poorest of the poor languishing under poverty, iv) no attention was given to the technical capabilities of the SFDA/MFALDA officials, v) no follow up action was initiated by the project authorities as they remained satisfied with the achievement of the targets, vi) the stress was laid on disbursement of funds without any thought being given to the optimum level of investment that is

25 68 necessary to make substantial dent into the sip-to-mouth condition of the poor beneficiaries, and, vii) finally absence of appropriate monitoring and evolution of the performance of the programmes. Thus, it was realized by the Planners that the programme of the weaker sections couldn t be solved by economic measure alone. Therefore, SFDA and MFALDA the special programme of rural development were later on merged with Integrated Rural development Programme. (IRDP) Integrated Rural Development Programme (IRDP) As poverty a major problem and main concern of the Indian Planners thus, eradication of rural poverty has been the major goal of India s economic policy since the commencement of planning era. Thus Integrated Rural Development Programme was conceived during the Fifth Five Year Plan and was launched in The team integration was rather a nebulous concept. It has two main interpretations. Firstly, it implies the emphasis on inter-sectional coordination with its elements of inter-sectoral complementaries and internal consistency. It comprises of comprehensive agricultural development linked with rural industries, subsidiary occupations, tertiary sectors opportunities, community services and development organizations. Secondly if refers to an integrated project approach with the core project as a basic starting point and then weaving around it al complementaries and linkages, in fact all that were necessary as a support to the core project. It has emerged out the emphasis assigned to employment and income redistribution and many other aspects of rural development. However, the main objectives of the Integrated Rural Development Programme were the alleviation of poverty through growth and generation of employment opportunities for the poorest of the poor in rural India. The benefits were to accrue to the identified the target groups comprising of SCs and STs, small and marginal farmer, tenants, landless labourers, sharecroppers and rural artisans. These programmes are implemented through DRDAs. Thus, the

26 69 IRDP represents a synthesis of three approaches: the cluster approach to select villages for implementation, the antyodaya approach to select beneficiaries from the selected villages and the package approach to assist the selected beneficiaries. The first approach ensures that the supporting infrastructure are available in the selected villages at low cost, the second approach ensures that the real poor are selected and third approach ensures that the family benefits fully from the complementarily between various inputs and services. Thus, IRDP is the single largest anti-poverty programme currently underway in all the community development blocks in the country. The IRDP beneficiaries are assisted through viable and bankable projects, which are financed partly by subsidy and partly by bank loans. The financial sharing of IRDP between the state and center is on 50:50 bases. So far as the administration of IRDP is concern at the national level it is under the control of the Department of Rural Development in the Ministry of Agriculture and Rural development for policy planning direction, coordination and monitoring. At the state level either the Department of Planning or Rural Development is responsible for the planning, implementation, coordination and supervision and monitoring of the IRDP. At the district level an autonomous agency called District Rural Development Agency (DRDA) is responsible for planning, implementation and monitoring of the IRDP. At the block level there is a complete tie-up with the existing planning and implementation machinery and the programme are entirely motivated by Block Development Officer. Besides all these, it has also the provision of training for the beneficiaries and functionaries at all level. The beneficiaries are trained how to manage the new assets or projects as how to derive maximum benefits from them. The IRDP, the programme of massive dimensions having a multiplicity of critical parameters and functioning in a highly diverse environment have

27 70 achieved a limited success. 28 Because the programme itself is not well conceived. The Sixth Five Year Plan emphases the critical significance of constituting a centralised planning authority at the district level to formulate an integrated district/block development plan, which combine the development and beneficiary aspects together with an objective of poverty amelioration.29 The rural development programmes grouped under the Employment Generation Schemes for the rural poor are discussed below: Crash Scheme for Rural Employment (CSRE) Crash Scheme for Rural Employment (CSRE) sponsored by central government and implemented through the agency of state government in April 1971 for a period of 3years. The main objectives of the scheme were i) direct generation of employment for 1000 persons, on an average, continuously over a working season of 10 months in a year in all rural districts of the country through the execution of projects which were essentially labour intensive, ii) the creation of assets of works of a tangible nature in consonance with local development plans so that all round development of the district becomes possible. Under labour intensive work the CSRE adopted 3 important schemes mainly related to land development and reclamation, construction of roads, drainage, minor irrigation projects, water conservation, soil conservation, afforestations and special repairs of these community assets. This programmes are unlike the other programme is not free from shortcomings. The major problem with this programme was the lack of coordination among various departments and conflict with the state plan programmes, e.g., mostly the projects were listed and identified after the sanction of funds and without any reference to the preparedness of Panchayati 28 Anonymous, (1989), IRDP Success Limited, The Hindustan Times. June 12, New Delhi, p Dentewala, M.D, M.D, M.D., (1989), Garibi Hatao: Strategy Options, Economic and Political Weekly. Vol.XX, No. II, 18th March.

28 71 Raj agencies responsible for carrying out the projects. 30The other major problem of this scheme was that the project taken up under the scheme were of most absorptive in nature and as such could not create perennial potentialities of employment for as soon as they were completed, the labour force were thrown out of employment. It was therefore proved as a stopgap absorptive tool for employment for the time being Food For Work Programme (FFWP) It is felt that along with the growth of national income, employment must expand simultaneously. As the capital investing in industries and allied activities keep rising, the demand foe labours get depressed. So unemployment comes to be reckoned as a problem in its own right. As this point of time poverty is recognized in particular, with unemployment and under employment and its removal sought to be found in providing employment in rural programme.31 Thus in order to remove the twin problem of poverty i.e., unemployment and underemployment of the rural areas and to create additional employment opportunities for the rural poor, a new scheme introduced in popularly known as Food For Work Programme. The objectives of the programme to offer gainful employment to the rural poor and improve their nutritional status and income level through development of infrastructure and to strengthen the durable social community assets by utilizing surplus food stocks, in other words the labours are paid in terms of food grains for the work done by them. The category of works qualify for assistance under the scheme included irrigation works, soil conservation, afforestations by Forest Department, Construction of village roads, construction of field channels, construction of school buildings and construction of Panchayat ghar, community centers, medical and health centers, improvement of sanitation and hygienic conditions of the rural areas. This was made possible 30 Padhy, K.C., (1986), Rural Development in Modern India. B.R. Publishing Corporations, New Delhi, pp Sau, Ranjit, (1978): Growth, Employment and Removal of Poverty, Economic and Political Weekly. Special No, Vol'XII, August

29 72 due to availability of surplus food grains in the country for implementation of these programme Panchayati Raj institutions played an important role. The major reason of the failure of this programme was lack of proper planning and supervision. Appointment of contractors for the execution of the projects and distribution of wages to laboures was prohibited in this programme. No serious attention was paid to the proper implementation of the programme at later stage because of the uncertainties about its continuation.32this programme was merged with national rural Employment programme in the year National Rural Employment Programme (NREP) The National Rural Employment Programme (NREP) is the modified and restructured version of FFWP launched in October 1980 and became a regular plan programme right from April This programme was conceived during the Sixth Five Year Plan as an integrated strategy of rural employment because unemployment in the rural areas is mainly seasonal. However, the very dimension of the problem of unemployment calls for a multipronged strategy, which aims at, resource development along with supplementing the existing employment opportunities available to the rural poor, particularly during the lean period of the year. It is a centrally sponsored programme and the expenditure on this programme was shared on 50:50 bases between the center and the states.33thus, basing on the experience gained from FFWP, a well directed and sustained programme like NREP was drawn up for providing supplementary employment opportunity to masses during the lean period of the year. The main objectives of the programme were to (a) to generate additional employment opportunities for the unemployed and under employed person,(b) to create productive community assets for continuous flow of Ibid Government of India, (1986), Ministry of Agriculture, Department of Rural Development, Guidelines for Implementation of Accelerated Rural Water Supply Programme, August, P.1

30 73 benefits to the poverty group, (c) to bring about overall development of the rural areas, and (d) to provide nutritional standards to rural poor through supply of food grains as wages.34the wages paid under the programme were at par with the prevailing wage rates in the states. But in order to avoid corruption the position of contractors were totally excluded from the execution of the programme on which employment was offered through NREP. Thus the implementing agencies were required to attach priority to works for the creation of community assets under this programme is to be takeup as an exception in respect of group housing and land development projects which benefit individuals belonging to SCs and STs. Thus the works undertaken under this programmes were divided into social forestry and pasture development, social and water conservation, irrigation, flood control, construction of field channels and water courses in command areas, improvement of village environment, hygiene and sanitation, and those workers which were beneficial to village community at large. This programme has also resulted in strengthening socio-economic infrastructure of the rural areas. The implementation of this programme resulted in providing great relief to rural people and facilities for trade and commerce with the improvement in communication. It has ensured minimum wage. The Sixth Plan experience showed that the distribution of food grains was not up to the mark of 1k.g per man-day for a variety of reasons on account of the problems of storage and movements of food grain quality of food grains and the diversion of food grains to the Public Distribution System (PDS), and in some cases, preference of local people for course food grains. The distribution of food grains had also an impact on the stabilization of prices of food grains in the area. The short comings of this programme is proved from the fact that it lack besides all other, the wage paid under the scheme were often lower than that of market rates, selection of the beneficiaries was not proper in as much as that the poorest of the poor for whom the programme was really meant were left out altogether shorter period, the selection of the projects were not in consonance 34 ibid.

31 74 with the needs of the people. Finally NRP has been merged into Jawahar Rozgar Yojana in Rural Landless Employment Guarantee Programme (RLEGP)(1983) The Rural Landless Employment Guarantee Programme (RLEGP) was introduced on 15th August It is a centrally sponsored programme and parallel to NREP. The basic objectives of the programme are: (i) improvement and extension of employment opportunities for the rural landless labourers with a view to provide them the guarantee of gainful employment to at least one member from each of the landless house holds for a period up to 100 days in a year, and (ii) creation of durable assets for strengthening the rural socioeconomic infrastructure and improving the overall quality of life in the rural areas. During the Seventh Plan, outlays of Rs.1, crores was shared equally by the center and the state with the target to generate 1,013 million man days of employment during the period ranging from 1985 to The ratio of wage and non-wage expenditure prescribed to be maintained at 50:50 bases.35 However, due to paucity of resources, the guarantee part of the programme could not be implemented. The priority in employment was given to the landless labourers, workers, SCs and STs.36 Thus this programme not only provided scope for creation of durable community assets but also able to guarantee employment in the rural areas. However, this programme has been merged with JRY in Government of India, (1989), Ministry of Agriculture, Department of Rural Development, Manual on National Rural Employment Programme (NREP) & Rural Landless Employment Guarantee Programme (RLEGP), October, p Government of India, (1990), Ministry of Agriculture, Department of Rural Development, Annual Report ( ), pp

32 Jawahar Rozgar Yojana (JRY) During the year , two employment guarantee programmes NREP and RLEGP were merged into a single programme known as Jawahar Rozgar Yojana was the brain child of the then Prime Minister of India, Late Mr. Rajiv Gandhi. It is a centrally sponsored programme. The expenditure under the programme is shared by the center and the state on an 80:20 bases. The aim of the scheme is to reach every Panchayat and seeks to provide employment to at least one member in a family living below the poverty line in rural areas for 50 to 100 days a year at a place near his residence. An estimated 440-lakh families have been living below the poverty line in rural areas.37 The objectives of the programme were: i) to provide gainful employment to the unemployed and underemployed of the households below the poverty line with special reference to SCs and STs communities, ii) to create durable and productive community assets with a view to improve overall quality of rural life, iii) at least 30 per cent of the total employment opportunities are to be provided to women beneficiaries.38under the scheme, workers can be taken up for execution during any part of the year, whenever the need for generating supplementary employment is felt, preferably during lean agricultural seasons. And the resources for the scheme are allocated to the States/Union territories in accordance with the poverty incidence. It aims at placing in the hands of the village Panchayats around the country adequate funds to the run their own rural employment schemes. By devolving the finances to the Panchayats and entrusting them the administration of the programme it is expected that a larger proportion of the funds, than ever before to deployed for this programme. Through the devolution of this programme to village Panchayats it is hoped that the benefits of this programme directly reaching the people to be significantly Anonymous, (1989), Jawahar Rural Job Plan Launched, The Hindustan Times. April 29, New Delhi, p.5 38 Government of India, 1989,A Manual of Jawahar Rozgar Yojana (JRY), Department, Ministry of Agriculture, New Delhi, August, pp.2-4

33 76 higher than in the past. However, the entitlement of funds to a Gram Panchayat depends on the per capita allocation of the district worked out on backwardness criteria as well as population. The bases of allocation of funds are I) SCs and STs population as percent of total rural population with 60 per cent weightage, ii) agricultural workers as percent of main workers with 20 per cent weightage, and iii) inverse of agricultural productivity per hectare value of agricultural product with 20 per cent weightage.39 In order to avoid delay of reaching funds to the implementing agencies, these funds are released directly to the districts. At least 80 per cent of district allocation is distributed among Panchayats on the basis of the population.40a unique feature of the JRY is that each beneficiary knows how much remuneration he/she and others are getting and how many days work are being given to them and others. Thus, those who will be cheated or deprived will not only be encouraged to demand immediately redressal, but also use the ultimate weapon in their hands to vote out of office any Sarpanchs for cheating and abusing or misusing his powers and responsibilities. Government of India, in September 1989 did a review of JRY and the findings of the reviews shows that the performance of Bihar, Goa, Gujarat, Haryana, Tripura, Dadra and Nagar Haveli, Lakshadweep and Pondicherry in the matters of resources utilization has been good and above the national average. Bihar was in number one position where as Tamil Nadu was in number two, in the whole of the country Employment Assurance Scheme (EAS) Employment Assurance Scheme was launched on 2nd October 1993 for implementation in 1,778 identified blocks in the drought prone areas, desert areas, tribal and hilly areas of different States. Later on the scheme was 39 Ibid. 40 Ibid. 41 Anonymous. (1989)(B), Second Installment under JRY Released, Gramin Vikash News Letter. Vol.5, Nos.8-9, (August- September), p.16

34 77 extended to the remaining blocks of the country in a phased manner, it is centrally sponsored scheme with cost sharing pattern of 80:20 between the center and the states. It was implemented in those 1752 blocks where the Revamped PDS is in operation. The scheme aims at providing 100 days of unskilled manual work to the rural poor who are in need of employment and seek it in manual work. The main objectives of the scheme are to provide gainful employment to the agricultural labourers and other workers who are in need of wage employment especially during the lean agricultural season. EAS is now the single wage employment programme being implemented at the district/ block level through out the country with focus on areas suffering endemic labour exodus. Under this scheme, assured employment of about 100 days is to be provided to maximum of two adults per family, who are above 18 years and below 60 years of age and seeking employment during the lean season. An amount of Rs lakh per block has so been released to the states as central share for implementation of the scheme in the RPDS blocks during Further, release would be made depending upon the number of people seeking employment under the scheme and the resultant demand for funds from the state governments.42the workers that are identified under the scheme on the priority basis of the treatment plants prepared for water conservation, land protection, vegetative barriers, afforestations, agro- horticulture, under watershed development etc. minor irrigation tanks, percolation tanks, village tanks, canal works, primary school building on the pattern of operation Block Board Scheme were being implemented under JRY Anonymous, (1991), Jawahar Rozgar Yojana," Gramin Vikash News Letter. Vol. 7, No. 8, (August- September), p Anonymous, (1994), Wage Employment and Infrastructural Development, Gramin Vikash News letter. Vol.10, No.4, April, P.18

35 Rural Industrialization (Rl) In the past it was believed that rural unemployment could be tackled through agricultural development. But Green revolution in many states has shown that the benefits of agricultural development have not percolated to the rural mass. And this led the problem of unemployment and disguised underemployment that plugs the rural economy. On the one hand these rural poor unemployed also lack skill to be absorbed in urban large industries, on the other hand it was also true that agricultural sector was unable to bring prosperity to the rural people. This provides the raison dieter of rural industrialization programme in India. However since independence, emphasis on rural industrialization has been one of the concerned of the Indian Planners. Thus rural industries have been sporadically established in small scale in the villages. The idea behind this is not only to harmonize the welfare approach with production approach but also maximum utilization of local skills and manpower and raw materials. It involves a process of all-round, self-sustained development of manufacturing activities in the household and small-scale sectors, so as to provide employment opportunities to the rural illiterate, asset less and unskilled people to raise their income. The most important aspect of rural industries is that the employment generating capacity in cottage and village industries in rural sector is eight times more than the large-scale industries. And the capital cost per person employed with appropriate technology in rural industries is very low. It is also a centrally sponsored scheme started in 1962, which covered 45 areas with different socio-economic background. Later on four more areas were included in The main objective of this programme were to i) set up small industries in the rural areas by utilizing effectively rural resources, ii) enlarge the employment opportunities, iii) raise the income and standard of living of he rural people, iv) reduce the exodus to urban areas, v) eliminate

36 79 regional economic disparities, vi) diversify rural occupations and vii) reduce inequalities in income and wealth and secure to social justice. However the small industrial sector is divided into nine groups: i) Khadi, ii) Village Industries, iii) Handlooms, iv) Sericulture, v) Handicrafts, vi) Cane, vii) Small scale Industries, viii) Power looms, and ix) Others. Besides the last two sectors all other are traditional rural sector. In order to promote and develop the small scale and cottage industries the government has reserved certain items to be produced exclusively by small-scale sectors. Though over last two decades rural industries have been sporadically established yet rural industrialization has not been occurred. It also has failed to meet the needs of the rural poor in an effective manner as possible Jawahar Gram Samridhi Yojana (JGSY) Jawahar Gram Samridhi Yojana is the restructured and streamlined, comprehensive version of erstwhile JRY lunched on 1st April 1999 with a change focus on programmes aimed at giving self-employment and wage employment to the poorest section of the community. The JGSY implemented entirely by Gram Panchayats at the village level to create need based rural infrastructure to boost rural economy in general and improvement in the quality of life of the rural poor in particular. The DRDAs and Zilla Parisads were the media through which the funds from the center along with the state s matching share, directly released to the Village Panchayats. And the Village Panchayats were in charge of preparation of annual action plan and for its implementation with the approval of Gram Sabha People living in villages below the poverty line constitute the target group of JGSY. Priorities were given to developing infrastructure for SC & ST families and physical handicapped persons, habitation, education, and public health etc. 30% of the employment opportunity under the Yojana are reserved for women. However the wage under JGSY is fixed by the State Governments. The DRDAs/ZPs and

37 80 Intermediate Panchayats are responsible for overall guidance, co-ordination, supervision, and monitoring and periodical reporting. Contractors/Middlemen are not permitted for execution of any work under the programme Swarnjayanti Gram Swarozgar Yojana (SGSY) The Swarnjayanti Gram Swarozgar Yojana is the single self-employment for the rural poor launched on 1st April, 1999 by replacing the earlier selfemployment and allied programme- IRDP, TRYSEM, DWCRA, SITRA, GKY and MWS. These programmes are no longer in operation. SGSY is an innovative and carefully thought out Yojana. It takes into account all the strengths and weakness of all earlier self-employed programme. It aims at establishing a large number of micro enterprises in the rural areas. Persons assisted under this programme are known as Swarozgaris not beneficiaries. The objective of SGSY is to establish a large number of microenterprises in the rural, building upon the potential of the rural poor, A significant aspect of SGSY is that every family assisted under this programme will be brought above the poverty line in three years and therefore the programme aims at creating substantial additional income for the rural poor. The programme has been designed to provide proper support and encouragement to tap the inherent talent and capabilities of the rural poor. The most vulnerable sections are its target group i.e. at least 50 per cent of the Swarozgaris will be Sc and Sts and 40 per cent women and 3 per cent disabled. SGSY is conceived as a self-employment scheme covering i) organization of the rural poor into self-help groups and their capacity building, planning of activity clusters, infrastructure build up, technology, credit and marketing. Gram Sabhas are entrusted with the task of authenticating the list of families below the poverty line identified in the below poverty line census.

38 81 SGSY is a credit-cum-subsidy programme. Thus the greater involvement of banks in the planning and preparation of projects, identification of activity cluster, infrastructure planning as well as capacity building and choice of activity of the SHGs, selection of individual Swarozgaris, pre- credit activities and post credit monitoring including loan recovery. It seeks to promote multiple credits. The funds under SGSY shared between the center and states in ratio of 75:25. It is implemented by DRDAs through Panchayat Samitis. it offers the perfect balance of credit and subsidy Sampoorna Gramin Rozgar Yojana (SGRY) Sampoorna Gramin Rozgar Yojana is a new centrally sponsored scheme introduced in 1st April 2001, by merging EAS and JGSY. The scheme is to provide additional wage employment in the rural areas as also food security, along with creation of durable community, social and economic assets and infrastructural development of direct and continuing benefits to rural poor. The priority is given to the protection of traditional water resources, water harvesting and creation of infrastructure like market, anganwadis, schools, and dispensaries, veterinary hospitals etc. It is implemented in two streams namely i) districts and block Panchayats levels and ii) Gram Panchayat level out of the total funds available under SGRY 50 per cent is earmarked to district and block Panchayats at the ratio 40:60 per cent. In the economic and social assets and for development works in the individual lands of below poverty line families of the se groups. The balance 50 per cent of the funds earmarked to the Gram Panchayats. Then the Gram Panchayat will earmark 50 per cent of the funds allotted to them for taking up infrastructure development works in Sc and ST settlements. Above all the expenditure sharing between the center and the states is in the ratio of 75:25. The central government provides food of value equipment to the cash component, free of costs, on additionally.

39 82 Area development programme are also the important component of rural development programme, which are discussed below: Tribal Area Development Programme (TADP) and Integrated Tribal Development Projects (ITDP) One of the Directive Principles Of State Policy in the Constitution enjoys that the state will promote with special care of the educational and economic interests of weaker sections of particularly of the SC and Sts and shall protect them from social injustice and all forms of exploitation. This directive has been reflected in the Five Year Plans, which has sought to raise the living standards of Sc and Sts and other weaker sections. The TADA was launched in The objective of the programme is to foster the economic development of the tribal population so far as to bring then within the ambit of developmental efforts of the country and in particular to make an impact on the horticulture, development of these areas. The core economic programmes including horticulture, land reclamination, land development, soil conservation, minor irrigation control of shifting cultivation and animal husbandry, development of forest based industries, debt redemption, land restoration etc were programmed to be undertaken under the scheme. However, all the tribal development projects were implementation through a society called Tribal Development Agency, which is registered under the Registration of Societies Act, Each project had an out lays of Rs.1.5 crores for the core programme of economic development and Rs. 50 lakh for the construction of arterial roads to open up the tribal areas. Each of these projects intended to cover 10,000 tribal families or 50,000 tribal populations who constitute the weaker sections even amongst the tribals. The basic idea behind these programmes was to bring these backward areas at par with the development areas of the state. Ordinarily the agency subsidies 50 to 75 per cent of the special requirement of each programme and the balance are meet by the tribal beneficiaries through loans from institutional and

40 83 other resources. Thus in order to bring these backward areas at par with the developed areas, a strategy of earmarking of funds for the development of SC and STs was evolved for the developed to ensure the flow of benefits from all sectoral programmes and to provide integrated delivery of series in the tribal areas, covering 63 per cent of the tribal population in the country in 16 states and union territories. Again these sub plans were divided into 180 integrated tribal development projects for operational purpose. The tribal sub plans envisaged development efforts in the identified areas with resources pooled from i) out lays from state plans, ii) investment from central ministries, iii) special central assistance, and iv) institutional finance. The chief objectives of the TADP and ITDA are i) to increase agricultural production in the area with introduction of modern technologies and use of improved seeds and fertilizers ect, ii) to take up plantation of suitable fruit bearing trees to meet the requirement of the tribal who mostly depend upon minor forest products, iii) to provide credit and marketing facilities and strengthening the existing ones, iv) to take steps to free the tribals from the bondage of indebtedness, v) to discourage the tribals from shifting cultivations and to take up settled cultivation, and vi) to initiate measures to improve the educational, sanitary, health and drinking water problems along with provision of ancillary other facilities. The states enacted laws to prohibit land transfer from tribals to non-tribals. Even agro-forest based training programme are taken up by the states so as to create opportunities of gainful employment for tribals. Some states have established Tribal Development Corporations (TDC) to coordinate the relationship between the tribal and market economy through an integrated credit -cum-marketing services. The administrative structure in the tribal areas was reviewed and restructured the area under the Fifth Scheduled has been nationalized in order to ensure better implementation and effective protection to the tribals. However, decades of development have had no desired impact on these socially, economically and educationally backward groups. Their