BLOCK 3

Rural Development
BLOCK 3 RURAL DEVELOPMENT
Block 3 will introduce you to the concept of rural development. This Block consists of
three units. In the previous two Blocks, you learnt the concept of agripreneurship and
agri-based micro & small enterprises. This block will help you to understand the idea
of rural economics, resource planning and village development.
Unit 9 discusses the features of the rural economy, problems faced by the rural economy,
rural livelihood, agricultural forces/labour, sustainable agricultural and rural development
and the implementation of the Integrated Rural Development Program.
Unit 10 studies the principles and techniques of the participatory rural approach. It
also sheds light on the components and challenges of the PM-AASHA scheme.
Unit 11 aims to introduce you to the objectives, implementation strategies, and outcome
evaluation methods of the village development plan. The components of the Gram
Panchayat Development Plan (GPDP) have also been discussed.
The material provided in this block is supplemented with various examples and
activities to make the learning process simple and interesting. We have also provided
check your progress questions for a self-test at a few places of these units which
invariably lead to possible answers to the questions set in those exercises. What perhaps
you ought to do, is to go through units and jot down important points as you read, in
the space provided in the margin. This will help you in assimilating the content. A list
of reference books has been provided at the end of each unit for further detailed
reading.
Selection and Integration of
Technology for Teaching-
Learning

190
 Rural Economics
UNIT 9 RURAL ECONOMICS
Structure

9.0 Objectives
9.1 Introduction
9.2 Rural Economy- A Perspective
9.2.1 Concept of Rural Economy
9.2.2 Characteristics of Rural Economy
9.2.3 Problems of Rural Economy

9.3 Rural Poverty – A Perspective

9.3.1 Concept of Rural Poverty
9.3.2 Causes for Rural Poverty
9.3.3 Remedial Measures
9.3.4 Strategy for Poverty Alleviation in Rural Areas

9.4 Rural Unemployment – A Perspective

9.4.1 Concept of Rural Unemployment
9.4.2 Different Concepts of Unemployment
9.4.3 Causes for Rural Unemployment
9.4.4 Remedies for Rural Unemployment

9.5 Rural Livelihood and Agricultural Forces/ Labour

9.5.1 Characteristics of Rural Livelihood
9.5.2 Farm Based Livelihoods
9.5.3 Non-Farm Based Livelihoods

9.6 Sustainable Agriculture and Rural Economy

9.6.1 Sustainable Agriculture
9.6.2 Principles of Sustainable Agriculture
9.6.3 Indicators of Sustainable Agriculture
9.6.4 Role of Sustainable Agriculture in Rural Economy

9.7 Integrated Rural Development Programme

9.8 Let Us Sum Up
9.9 Keywords
9.10 Suggested Further Readings/References
9.11 Answers to Check Your Progress

9.0 OBJECTIVES
After studying this unit, you will be able to:

 describe the features of the rural economy; 191

Rural Development  recognize the most common problems faced in the rural economy;

 discuss the characteristics of rural livelihood;

 explain the concept of sustainable agriculture, its principles and

indicators; and

 discuss the objectives of ICDP, its components and problems in its

implementation.

9.1 INTRODUCTION
The areas located outside towns and cities are called rural areas. The Census
of India defines a revenue village as the basic unit of rural areas. The term
rural economy refers to the villages and rural community refers to the people
living in villages. The application of economic principles in understanding
and developing rural areas is called rural economics.

According to the 2011 Census, there were 640867 villages in India and 68.84
per cent of the 121crores total population lives in rural areas. These rural
areas face problems such as unemployment, poor income, illiteracy,
inadequate infrastructure, low labour productivity, backwardness of
agriculture, uneconomic prices for agricultural products, surplus labour force,
huge migration of labourfor work opportunities etc.

This unit discusses the features of the rural economy, problems faced by the
rural economy, rural livelihood, agricultural forces/labour, sustainable
agricultural and rural development and the implementation of the Integrated
Rural Development Programme.

9.2 RURAL ECONOMY – A PERSPECTIVE

Let’s discuss several issues related tothe rural economy.

9.2.1 Concept of Rural Economy

Generally speaking, the concept of economy deals with the production,
distribution and consumption of material goods and services. Material goods
are produced with certain means, raw materials, technology and labour.
Moreover, people enter into social relations for the organization of
production. Produced goods are distributed among the various sections of
society. The society also fulfils the need for different kinds of services.
Further, we find that historical experiences of human society show changes in
economic life over a period of time, which is accompanied by changes in
society as a whole. We have therefore taken a historical perspective to
describe the rural economy in India. Let us first define the term ‘rural’.

Various criteria which includedemographic, economic, ecological and socio-

cultural aspects are used to identify what is rural. The popular definition is
that it is an area pertaining to the country as distinguished from a city or a
192 town. Agriculture is its main economic activity.
9.2.2 Characteristics of Rural Economy Rural Economics

The main characteristics of the rural economy are as follows:

i) Primary Institution: The village is a primary institution and it satisfies

most of the basic needs of the rural people. The rural people have
afeeling of belongingness and a sense of unity towards each other.

ii) Dependence on Agriculture: The population density i.e., the number of

persons living per sq. km is very low and houses are scattered in
villages. Agriculture and allied activities are the main sources of income
in rural areas, but they are mostly only seasonal.

iii) Life of Rural People: The lifestyle of villagers is very simple and
backward. Public services such as education, housing, health, transport,
banking, market are limited or unavailable. People rely much on
traditional practices and superstitions. The standards of living, methods
of production, social and political mobilization etc., in rural areas are
extremely weak.

iv) Unemployment: Both unemployment (people are willing and able to

work but are not getting a job) and disguised unemployment (people are
employed in a job over and above the requirement) are common in rural
areas. In the latter case, people work without any increase in production.

v) Poverty and Indebtedness: Poverty is a condition where people do not

get even the basic needs such as food, clothing and shelter. According to
the 2011 Census, about 22 crore people were living below the poverty
line in rural India. Owing to poverty and the absence of formal loan
facilities, villagers mostly rely on local money lenders who lend money
at exorbitant rates which in turn causes huge indebtedness and frequent
farmer suicides.

vi) Inequality: There exists huge inequality in the distribution of income,

wealth and assets among rural people due to various social, economic
and political reasons. Landlords and landowners dominate the rural
activities. Land, livestock and other economic assets are mostly owned
by the people of dominant castes.

vii) Migration: Rural people are forced to migrate from villages to urban
areas to seek gainful employment for their livelihood. This character of
the development gives rise to the formation of cities. Sometimes local
enmity and lack of basic amenities in villages also push them to migrate
to urban areas.

9.2.3 Problems of Rural Economy

Rural areas face various general problems relating to(1) People (2)
Agriculture(3) Infrastructure (4) Economy (5) Society and Culture (6)
Leadership and(7) Administration. These are discussed below:
193
Rural Development

Fig. 9.1: Problems of Rural Economy

1. People Related: The standard of living of people in rural areas is highly

poor. They lack financial backing, literacy, technical know-how etc. Also,
they are dependent on traditional sentimentsand superstitions.
2. Agriculture Problems: Agriculture is the main source of employment
but its productivity is affected by various factors such as small
landholding, failure of monsoon rain, primitive technology, unavailability
of inputs, poor marketing facilities and uneconomic prices for agricultural
produce.
3. Infrastructure Problems: Most of the rural areas face problems due to
inadequate infrastructure facilities such as water, health,
electricity, transport, educational institutions, employment, storage,
banking and insurance.
4. Economic Problems: Rural people are unable to use costly inputs or
technology in farm activities as they live in acute poverty and
indebtedness. The rural industries are labour-intensive and labourers are
usually low-paid.
5. Socio-Cultural Problems: People living in rural areas face problems of
social and cultural conflicts. Caste discrimination among people plays a
dominant role in creating social confrontations. Inter-caste marriages
often end in caste-based killings by their own family members. Also, the
gender discrimination in rural areas is large and unchallenged. Rural
women enjoy less freedom than their city counterparts.
6. Leadership Problems: As the rural people are mostly illiterate,
leadership in rural institutions sometimes goes into the hands of
incompetent people. Even educated people fail to be good leaderswhen
they act as self-interested persons, with biased political will, poor
bargaining ability and weak negotiation skills.
7. Administrative Problems: The rural development programmes often fail
to bring the desired results as they are affected by various administrative
problems such as political interference, lack of professionalism, lack of
motivation and interest, low wages, improper utilization of budget funds,
194 absence of monitoring and ineffective implementation.
 Rural Economics
9.3 RURAL POVERTY – A PERSPECTIVE
Different perspectives on rural poverty are discussed below in detail:

9.3.1 Concept of Rural Poverty

The eradication of poverty has been one of the guiding principles of the
planning process in our country. Improvements in the living standards of
people and the provision of a decent standard of living have been prominent
objectives of the successive five-year plans. Identification of the poor and
initiation of specific programmes that address the differential needs of people
steeped in poverty have been the distinguishing features of all the five-year
plans. The multi-dimensional nature of poverty in India has been increasingly
recognized over time and the issue of poverty has also become a global
concern, especially since the last decade of the 20thcentury.

Rural poverty refers to situations where people living in non-urban regions

are in a state or condition of lacking the financial resources and essentials for
living. It takes account of factors of rural society, rural economy, and
political systems that give rise to the marginalization and economic
disadvantage found there. Rural areas, because of their small, spread-out
populations, typically have less well-maintained infrastructure and a harder
time accessing markets, which tend to be concentrated in population centres.

9.3.2 Causes for Rural Poverty

A poverty line is a hypothetical line defined on the basis of the income level
or consumption level of people. On the basis of recommended nutritional
intake, persons consuming less than 2400 calories per day (i.e., individuals
who fail to earn income sufficient to buy even this basic minimum
subsistence) in rural areas are treated to be living below the poverty line
(BPL).India is the home to roughly 22 per cent of the world’s poor. Poverty
in rural areas is deeper among the members of scheduled castes and tribes.

The causes of rural poverty are as follows:

i) Unequal land distribution compels the majority of rural people to work

as hired labour.

ii) Lack of non-farm employment opportunities leads to the incidence of

poverty.

iii) Low productivity of farm labour and increasing cost of cultivation also
cause poverty.

iv) A steady increase in prices affects their purchasing power and keeps
them in poverty.

v) Due to defective economic structure and policies, major gains of

economic development are enjoyed mostly by the urban rich instead of
195
Rural Development the rural poor. Nor their economic contributions are accounted for
properly.

vi) Large industries consuming huge investments are mostly capital-

intensive in nature and they mainly cater for the needs of middle and
upper-class urban people. They do not generate adequate employment
opportunities for the unskilled or semi-skilled rural people and
therefore they continue to remain in absolute poverty.

9.3.3 Remedial Measures

Since rural poverty and rural unemployment are interrelated, the subsequent
governments strongly believed that the creation of employment opportunities
would support the elimination of poverty in rural areas. Accordingly, various
poverty alleviation schemes and programmes have been implemented,
modified, consolidated and improved from time to time.

Some of the important poverty eradication programmes and development

programmes implemented in India are as follows:

Poverty Eradication Programmes Year Development Programmes Year

20 Points Programme 1975 Indira AwasYojana (IAY) 1985
Integrated Rural Development Jawaharlal Nehru National Urban
1976 2005
Programme (IRDP) Renewal Mission (JNNURM)
Food for Work Programme (FWP) 1977 Bharat NirmanYojana (BNY) 2005
Training of Rural Youth for Self National Rural Health Mission
1979 2005
Employment (TRYSEM) (NRHM)
National Rural Employment Programme 1980 Rajiv AwasYojana (RAY) 2009
Rural Landless Employment Guarantee Pradhan MantriAdarsh Gram
1983 2010
Programme (RLEGP). SadakYojana (PMAGSY)
National Rural Livelihood Mission
JawaharRozgarYojana (JRY) 1989 2011
(NRLM)
Mahatma Gandhi National Rural
Employment Guarantee Scheme 2006 National Food Security Scheme 2013
(MGNREGS)

9.3.4 Strategy for Poverty Alleviation in Rural Areas

Various Programmes and Schemes under the Government of India were
launched to eradicate poverty and to provide basic amenities to poor
households. Schemes like Pradhan MantriAwasYojana and Housing for All
by 2022 were developed to provide housing to the rural and urban poor.

Multi-pronged strategies are being taken by the Ministry of Rural

Development (MoRD) to address rural poverty and improve the economic
well-being of the people in rural areas with the main focus on increasing
livelihood opportunities, empowering rural women, providing a social safety
196
net, skilling of rural youth, infrastructure development, increasing land Rural Economics
productivity etc. through programmes of Department of Rural Development,
viz., Mahatma Gandhi National Rural Employment Guarantee Scheme
(MGNREGS), Deendayal Antyodaya Yojana – National Rural Livelihoods
Mission (DAY-NRLM), Deen Dayal Upadhyay – Gramin Kaushalya Yojana
(DDU-GKY), Pradhan Mantri Awaas Yojana – Gramin (PMAY-G), Pradhan
Mantri Gram Sadak Yojana (PMGSY), Shyama Prasad Mukherjee National
RuRBAN Mission (SPMRM) and National Social Assistance Programme
(NSAP), and programmes of Department of Land Resources, viz., Watershed
Development Component of Pradhan MantriKrishiSinchaiYojana (WDC-
PMKSY).

MoRD accords emphasis on the proper implementation of all its rural

development schemes. To ensure that the programme benefits reach the rural
poor, the Ministry has evolved a comprehensive multi-level and multi-format
system of monitoring and evaluation of the implementation of rural
development programmes, including Performance Review Committee
Meetings, District Development Co-ordination and Monitoring Committee
(“DISHA”) meetings, National Level Monitors (NLMs), Area Officers
Schemes, Common Review Mission, Concurrent Evaluation and Impact
Assessment Studies. Social Audits are also conducted by some schemes like
Mahatma Gandhi NREGS and PMAY-G.

Third-party evaluation of the schemes is also carried out regularly and

actions, as appropriate, are taken on the findings. In addition to the above,
steps have also been taken to strengthen transparency and accountability
using transaction-based IT systems for MIS which include geo-tagging of
assets, Direct Benefit Transfer (DBT), National electronic Fund Management
System (Ne-FMS), Aadhaar Based Payment System (ABPS), Software for
Estimate Calculation using Rural rates for Employment (SECURE) and
establishment of independent social audit units and appointment of
Ombudsman. State-specific reviews of States/UTs are also undertaken from
time to time. Further, the Ministry monitors the disposal of public grievances
as well as reports in the media on the status of implementation of schemes.

9.4 RURAL UNEMPLOYMENT – A

PERSPECTIVE
Different perspectives on rural unemployment are discussed below in detail:

9.4.1 Concept of Rural Unemployment

Unemployment is a situation in which a person is actively searching for
employment but unable to find work at the prevailing wage rate.
Unemployment is a situation in which a person is actively searching for
employment but is unable to find work at the prevailing wage rate. In simple
words, rural unemployment refers to joblessness in rural regions. It is mostly
a farming-related [Link] rates of unemployment signal economic
distress while extremely low rates of unemployment may signal an
overheated economy. 197
Rural Development 9.4.2 Different Concepts of Unemployment
Unemployment is a situation in which a person is actively searching for work
but is unable to find work at the prevailing wage rate. It is a tragic waste of
manpower and underutilization of human resources. As long as there is
unemployment, social problems cannot be stopped and the economy cannot
achieve development. The different types of rural unemployment are as
follows:

Unemployment: Agricultural labourers, rural artisans and educated youth

who are willing and able to work but do not get an opportunity to work.

Underemployment: More than the required numbers of people are involved

in work (mostly in agriculture farms) but without any increase in output.
Such disguised unemployment rate is around 25 to 30 per cent in India.

Seasonal Unemployment: Rural employment especially in agriculture is

mostly seasonal in nature. During the seasons there is a huge demand for
labourers for ploughing, sowing, weeding and harvesting works and for the
rest 5 to 7 months, they remain unemployed. This is really pathetic which
sometimes leads to acute poverty and incidents of farmer suicides.

9.4.3 Causes for Rural Unemployment

The causesof rural unemployment in India are discussed below:

i. Absence of skill development and employment generation: Lack

of Government initiatives to give required training and then to
generate employment opportunities.

ii. Seasonal Nature of Agriculture: Agricultural operations are

seasonal in nature and depend much on nature and rainfall. Therefore,
the demand for labour becomes negligible during the off-season. So,
non-farm employment opportunities must be created.

iii. Lack of Subsidiary Occupation: Rural people are not able to start
subsidiary occupations such as poultry, rope making, piggery etc. due
to shortages of funds for investment and a lack of proper marketing
arrangements. This restricts employment opportunities and rural
family incomes. The government must arrange funds for these people.
However, as of now, they pay huge interest to the local money
lenders, for they are unable to get loans from formal sources.

iv. Mechanization of Agriculture: The landlords are the principal

source of employment for the farm labour. Mechanization of
agricultural operations like ploughing, irrigation, harvesting, threshing
etc. reduces employment opportunities for farm labour.

v. Capital-Intensive Technology: The expanding private industrial

sector is largely found in urban areas and does not create additional
198 employment opportunities due to the application of capital-intensive
 technologies. The government must establish firms to absorb surplus Rural Economics
labour power.

vi. Defective System of Education: The present system of education has

also aggravated the rural unemployment problem.A large number of
degree-producing institutions have come in recent years. Students also
want to get degrees only, not any skills. Degrees should be awarded
only on the basis of skills acquired. The unemployed youth should get
sufficient facilities to update their skills.

9.4.4 Remedies for Rural Unemployment

In order to reduce rural unemployment in the country there is a need to take
integrated and coordinated efforts from various levels. A few remedial
measures are listed below:

i. Subsidiary Occupation: To reduce seasonal unemployment rural

people should be encouraged to adopt subsidiary occupations. Loans
should be granted and proper arrangements should be made for
marketing their products.

ii. Rural Works Programme: Rural Works Programmes such as

construction and maintenance of roads, digging of drains, canals, etc.
should be planned during the off-season to provide gainful
employment to the unemployed.

iii. Irrigation Facilities: Since rainfall is uncertain irrigation facilities

should be expanded to enable the farmers to adopt multiple cropping.
The increased cropping intensity creates additional demand for
labour.

iv. Rural Industrialization: To provide employment new industries

should be set up in rural areas. This will open new fields of
employment and also change the attitude of rural people towards
work. For this, the government has to do something. The private
sector would not take up this responsibility.

v. Technical Education:Employment-oriented courses should be

introduced in schools and colleges to enable the literate youth to start
their own units.

Activity 9.1:

Considering the causes of unemployment mentioned above, list out the

possible remedial measures that may be taken to reduce rural unemployment.
…………………………………………………………………………………
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199
Rural Development …………………………………………………………………………………
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Check Your Progress 9.1

Note: a) Write your answers in the space given below.

b) Match your answers with those given at the end of the unit.

1. What is rural economics?

……………………………………………………………………………
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2. What do you mean by the disguised unemployment?

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9.5 RURAL LIVELIHOOD AND AGRICULTURAL

FORCES/ LABOUR
A livelihood is more than a vocation or an income-generating activity. It
includes all activities and decisions that the family takes that result in the
family acquiring the income, expenditure, employment and risk that enable
the family to live on. Livelihood improvement would mean changes in these
characteristics in appropriate directions i.e., an increase in income and
employment and a decrease in expenditure and [Link] livelihoods are
sustainable when the family is able to continue with at least at the existing
level in these characteristics even when things outside its control have
changed adversely, i.e., the family is able to learn and adapt to a new
situation, acquire the required capacity to practice in learning to continue at
least at the existing level.

9.5.1 Characteristics of Rural Livelihood

The characteristics of rural livelihood are given in Fig. 9.2 which is
elaborated below:

200
 Rural Economics

Fig. 9.2: Characteristics of Rural Livelihood

i. Income:The income of a rural household may come from any kind of

work like farming, rearing livestock, fishing, carpentry etc. The
income of a person depends upon the skill he or she has. Income can
be acquired in the form of money, goods, or services. For example, in
some places, agricultural labour receives grains as their wage instead
of cash.

Money saved for not spending on something for example the egg
/meat produced by the hens that are domesticated also can be
considered as income, which otherwise the household would have
spent on them. While planning appropriate interventions to increase
the income of a household, a development worker has to analyze all
dimensions of income. The income can be enhanced by increasing the
number of sources of income or by increasing the income from any
one source.

ii. Expenditure: Besides spending money on basic needs like water,

food, clothing and shelter a household needs to spend on various other
needs such as education, health, transport and entertainment.
Expenditure is to be looked at in terms of money, time and energy. A
development worker needs to understand all these dimensions so that
he or she can plan for interventions that reduce household
expenditure. For example, collective bargaining and purchase of food
grains, bringing awareness about unnecessary expenditureslike
expenditures on liquor, festivals etc.

iii. Employment: Any activity in which time is spent for generating

income or obtaining goods is called employment. It includes time
spent in growing or procuring items like fruits and firewood from
forests for self-consumption. Some people get regular employment
opportunities while for many other people, it is irregular. Some
receive higher wages for short-duration work while for many other
people, it is lower wages even for long duration. The social status of
people is also associated with their employment.

iv. Risk: Risk exists in any livelihoods but the degree of risk may vary.
Even a small illness is a great risk to many poor households who
depend on physical labour for work. The death of an earning member
in the family will have a huge impact on poor families as they do not
have any insurance, savings etc. Similarly, old age, accidental 201
Rural Development disability, and natural disasters like cyclones, earthquakes etc., also
bring huge risks to the livelihood of people.

9.5.2 Farm Based Livelihoods

The opportunities and coverage of livelihoods through the farm sector are
explained in the following discussion:

i. Farming Systems: The Food and Agriculture Organization (FAO)

has divided the farming systems into the following eight broad
categories:

a) Irrigated farming systems for food grains and cash crop

production;

b) Wetland farming systems for rice cultivation, depending on

monsoon rain;

c) Rain-fed farming systems for plantations and commercial

horticulture;

d) Rain-fed farming systems for mixed crops and live stocks in steep
highland areas;

e) Rain-fed farming systems for mixed crops, and livestock in dry or

cold areas;

f) Dualistic (mixed large commercial and smallholder) farming

systems;

g) Mixed farming systems for coastal artisanal fishing and

production; and

h) Urban farming systems typically focused on horticultural and

livestock.

ii. Production Systems: When engaged in the production of more than

one item, the farmer adopts a method to balance the activities and also
to enhance the linkages that exist between these activities. For
example, when farmersgrow fish in rice farms, theyuse two main
production systems namely the concurrent system (growing fish
together with the rice in the same area) and the rotational system
(growing fish and rice in the same area, but at different times). The
method adopted by a farmer to produce any particular item is
influenced by the factors that influence the farming system. The
production system emphasizes the methods of production whereas the
farming system explores the reasons for a farmer taking a particular
decision. Crop rotation can also help in enhancing productivity.

iii. Farm Labour: Farm labour is engaged in all stages of agriculture

right from sowing to harvesting. Given that the requirement for
202 agricultural labour is available only seasonally, the labour searches
 for work outside during the non-agricultural season. Mechanization Rural Economics
also decreases work opportunitiesforthe rural poor. Consequently,
they engage themselves in non-farm jobs such as felling of trees,
selling of firewood etc. Migration of labour also influences the wage
rates both at sources and at destinations.

iv. Interventions around Inputs: Farmers use various inputs such as

land, water, seeds, implements, labour, fertilizer and pesticides in
agriculture. To support the purchase of these inputs, farmers require
adequate credit support, as credit also is one of the important inputs of
the agriculture business. The Primary Agriculture Cooperative
Societies (PACS) serve as the most important supplier of fertilizers,
pesticides and seeds to rural farmers. Commercial banks, cooperative
banks and RRBs offer credit facilities. The role of the agricultural
department and Panchayati Raj Institutions is also critical.

v. Livestock: Man has learnt to domesticate animals like cows,

buffaloes, camels, horses, goats, pigs, dogs, hens, ducks, etc. for the
value of the products and services they offer. Livestock provides
financial security as the animals can be easily traded at times of need.
Poor people engaged in the processing of wool, leather etc., and
findincome-generating opportunities by rearing livestock.

vi. Non-Timber Forest Produce (NTFP): The Forest Rights Act, 2006
defines NTFP to include bamboo, shrubs, fuel wood, honey, wax, dry
leaves, sprouts, medicinal and aromatic plants and their parts like
leaves, roots and tubes. About 3000 species in the forests of India are
the potential sources of NTFP. The current production of NTFP is
only about 60 per cent of potential production and in the case of non-
edible fibers and flowers, only 7-12 per cent of the potential is
exploited. Acts like the Wildlife Protection Act also restrict access to
NTFP.

9.5.3 Non-Farm Based Livelihoods

The non-farm livelihood comprises employment opportunities through (a)
self-employment and (b) wage employment under the organized and
unorganized sectors.

i. Self-Employment: Among the rural non-farm activities, self-

employment is the highest in agriculture, followed by trade. The
majority of the self-employed people possess limited education and
poor access to capital. High-income self-employment includes
doctors, lawyers, rice mill owners, workshop owners etc. Low-income
self-employment includes handloom weavers, street vendors, auto
drivers, agarbati makers, potters etc. The nature of low-income self-
employed in India is more of a survival strategy than that of a
sustainable business activity.

203
Rural Development ii. Wage Employment: Among the rural non-farm activities, wage
employment is available from the organized and unorganized sectors.
The organized sector jobs include Anganwadi or primary school
teacher, primary health centres staff/nurse, etc. The unorganized
sector employment includes jobs like construction workers, workers
in hotels etc. engaged on a regular basis or casual basis.

iii. Government Interventions: Some notable interventions made by the

Government of India to improve the non-farm based livelihood in
rural areas are as follows;

iv. Rural Entrepreneurship: The government of India enacted the

Micro, Small and Medium Enterprises Development Act in 2006 to
facilitate the development, promotion and enhancing competitiveness
of rural enterprises. Small Industries Development Bank of India
(SIDBI) will be strengthened to improve its lending.

v. Artisans: An artisan is a skilled manual worker who crafts items that

may be functional or strictly decorative including furniture, weaving,
jewellery, tools, etc. Lack of skills, lack of infrastructure, less
exposure to information and technology, non-availability of quality
raw material, absence of training, inadequate credit support etc. are
some of their major problems.

Fig. 9.3: MGNREGA Beneficiaries at Work

vi. Jobs under MGNREGA: TheMahatma Gandhi National Rural

Employment Guarantee Act (MGNREGA) 2005 was introduced to
increase the number of days of employment forthe rural poor thereby
increasing their incomes across the country. Under this Act, each rural
poor household is guaranteed at least 100 days of work in a year. The
works undertaken include constructing bunds, roads and other works
to improve village infrastructure. The Act also forbids the use of
contractors in the works. Usage of machinery is also not encouraged
as much as possible.

204
Check Your Progress 9.2 Rural Economics

Note: a) Write your answers in the space given below.

b) Match your answers with those given at the end of the unit.

1. What is livelihood? What is improvement in livelihood?

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2. What are the possible interventions available to upgrade the livestock

breeds?
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9.6 SUSTAINABLE AGRICULTURE AND RURAL

ECONOMY
The sustainability of agriculture is important for the suitability of the rural
economy. This section explainsto you the concept, principles and role of
sustainable agriculture in the rural economy.

9.6.1 Sustainable Agriculture

Development is a complex concept that implies positive reorganization,
modification and innovation of an existing system or process. According to
the Human Development Report, “Development is about creating an
environment in which people can develop their full potential and lead
productive, creative lives in accordance with their needs and interests” (HDR
of UNDP, 2001).

The World Commission on Environment and Development (Brundtland

Commission Report 1987) has defined the term sustainable development as
the “development that meets the needs of the present without compromising
the ability of future generations to meet their own needs”. It is a socio-
ecological process characterized by the fulfilment of human needs while
maintaining the quality of the natural environment indefinitely.

Now let’s discuss sustainable agriculture.

Sustainable agriculture is a concept that helps farmers maintainproductivity

so that the needs of the present are achieved without compromising the
ability of future generations to meet their own needs.
205
Rural Development 9.6.2 Principles of Sustainable Agriculture
The fundamental principles of sustainable agriculture are as follows:

i) The farm productivity is enhanced over the long run;

ii) The adverse impacts on the natural resource base and associated eco-
system are avoided or minimized;

iii) The residues resulting from the use of chemicals in agriculture are
minimized;

iv) The net social benefit (both monetary and non-monetary) from
agriculture is maximized; and

v) The farming systems are sufficiently flexible to manage risks

associated with the vagaries of climate and markets.

9.6.3 Indicators of Sustainable Agriculture

The indicators of Sustainable Agriculture (SA) in different dimensions are as
follows:

Fig. 9.6: Indicators of Sustainable Agriculture

i. Economic Dimension:Production efficiency, product viability, price

and technology competitiveness are some critical indicators of the
economic dimension.

ii. Social Dimension: The availability of skilled human capital, equal

work and income opportunity for all workers involved in agricultural
production etc. are some critical indicators of social dimension.

iii. Environmental Dimension: The quality of soil, cultivation practices

used in the soil, its impacts on the soil and at atmosphere, availability
and the quality of water for irrigation, rainfall patterns, etc., are some
critical indicators of ecological and environmental dimension.

9.6.4 Role of Sustainable Agriculture in Rural Economy

Agriculture is the backbone of our rural economy, and with the global
population reaching 8 billion in 2022, our society increasingly depends on the
206
sustainability of this sector to produce the 60% more food that we will need Rural Economics
to produce globally by 2050. That’s why we need to make the agriculture
sector sustainable. However, in light of this, and with climate change
increasingly impacting crop yields, we must transition to more sustainable
agricultural practices to meet the needs of present and future generations.

In India, where the agricultural sector employs almost half of the country’s
population, the need to adopt sustainable practices is urgent – more so given
that climatic challenges would accentuate risks to the country’s crop yields,
farmers’ livelihoods and the overall food system. For example, Indian cotton
farmers have faced water scarcity and degraded topsoil in recent years, due to
climate change.

While there is no single solution to accelerate the transition, transformative

steps can be implemented to ensure responsible management of the natural
resources that are crucial to farming, including the adoption of innovative
technologies and solutions, and increased access to education and training,
facilitated through collaboration between governments and corporations.

Check Your Progress 9.3

Note: a) Write your answers in the space given below.

b) Match your answers with those given at the end of the unit.

1. What do you mean by sustainable agriculture?

……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

2. How does low literacy affect development?

……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

9.7 INTEGRATED RURAL DEVELOPMENT

PROGRAMME
The Integrated Rural Development Programme (IRDP) was a major poverty
alleviation and rural developmentprogramme launched by the Government of
India in 1978. It was implemented from 1980 to 1999. IRDP focuses on all
sectors such as health, education and hunger where development is needed
and also closely monitors the rate of development.

In most of the development programmes, only a small percentage of the

population benefits from development, while the bulk continues to suffer. 207
Rural Development IRDP aims at the ‘integration of individual and group development’ and
ensures equitable distribution of resources among the [Link],
shelter, education, and health benefits could be provided to alleviate poverty
in rural areas. While achieving the above objectives, resources and the
environment must be balanced in order to protect the interests of future
generations. IRDP aims at the ‘integration of the conflicting goals of socio-
economic and environmental development’.

The main objective of IRDP is to help families who live below the poverty
line and to enhance their standards of living by providing productive assets,
employment opportunities and additional sources of income. The assets thus
provided under IRDP could be in the primary, secondary or tertiary sector.
The beneficiaries are provided financial assistance in the form of bank loans
and government subsidies for creating such assets. To date, around 55 million
poor people have been covered under the scheme at the cost of Rs. 13,700 to
the government.

9.8 LET US SUM UP

In this unit, you have already learnt the following:

 The areas located outside towns and cities are called rural areas. The
application of economic principles in understanding and developing
rural areas is called rural economics.

 Poverty, unemployment, indebtedness, and sick industries are some

major problems faced by people living in rural areas.

 Rural livelihood is more than a vocation or an income-generating

activitythat can be improved by bringing changes in income,
expenditure, employment etc., in appropriate directions. Rural
development will become sustainable when improvements in farm-
based and non-farm-based livelihoods of people are achieved.

 The development that meets the needs of the present without

compromising the ability of future generations to meet their own
needs is called sustainable development. It encompasses three general
policy areas such as economic, environmental and social.

 One of the popular development programmes introduced was the

Integrated Rural Development Programme (IRDP) launched in 1978.
The inadequate resources and poor quality of assets provided are
some critical problems in its implementation.

 Agriculture is the backbone of our rural economy, and with the global
population reaching 8 billion in 2022, our society increasingly
depends on the sustainability of this sector to produce the 60% more
food that we will need to produce globally by 2050. That’s why we
need to make the agriculture sector sustainable.
208
  After understanding these basic concepts of rural economics, it would Rural Economics
be highly useful to know the various aspects of resource planning for
rural development which will be discussed in the next unit.

9.9 KEYWORDS
BPL : Below Poverty Line.

DRDA : District Rural Development Agencies.

FAO : Food and Agriculture Organization.

KVIC : Khadi and Village Industries Commission.

MFI : Micro Finance Institutions.

MUDRA : Micro Units Development and Refinance Agency Bank.

NTFP : Non-Timber Forest Produce.

PACS : Primary Agriculture Cooperative Societies.

RRB : Regional Rural Banks.

SECC : Socio Economic and Caste Census.

SHG : Self Help Groups.

SIDBI : Small Industries Development Bank of India.

SSI : Small Scale Industries.

9.10 SUGGESTED FURTHER

READINGS/REFERENCES
1. Dutt Gaurav., Mahajan Ashwani(2020), - Indian Economy, 72 Ed, -S.
Chand, New Delhi, India.

2. Sankaran., S. (2017), Rural Economics, Margham Publications, Chennai,

India.

9.11 ANSWERS TO CHECK YOUR PROGRESS

Check Your Progress 9.1

1. The application of economic principles in understanding and developing

rural areas is called rural economics.

2. A condition in which more than the required number of people are

involved in work (without causing any increase in output) is called
underemployment or disguised unemployment. It mostly happens in the
agriculture sector. The disguised unemployment rate is around 25 to 30
per cent in India. 209
Rural Development Check Your Progress 9.2

1. A livelihood is more than a vocation or an income-generating activity. It

includes all activities and decisions that the family takes that result in the
family acquiring the income, expenditure, employment and risk enabling
the family to live on. Livelihood improvement would mean changes in
these characteristics in appropriate directions i.e., an increase in income
and employment and a decrease in expenditure and risk.

2. The interventions in breed up-gradation of livestock are possible in at

least three aspects such as, (a) promoting artificial insemination to
increase the number of cross-bred animals (b) motivating farmers to
adopt new and improved breeds and (c) acclimatizing the new animals.

Check Your Progress 9.3

1. Sustainable agriculture is a concept that helps farmers maintain

productivityso that the needs of the present are achieved without
compromising the ability of future generations to meet their own needs.

2. Poor access to education results in low literacy and unemployment among

rural youth. Low literacy in the case of rural women adversely affects
their skill development, employment, productivity, family welfare and the
education of their children.

210
 Resource Planning
UNIT 10 RESOURCE PLANNING
Structure

10.0 Objectives
10.1 Introduction
10.2 Rural Resources
10.2.1 Conceptual Framework for Resource Planning

10.3 Participatory Rural Appraisal (PRA)

10.3.1 Principles and Procedures of PRA
10.3.2 Techniques of PRA

10.4 Panchayati Raj Institutions (PRIs)

10.5 Pradhan Mantri –AnnadataAaySanrakshanAbhiyan (PM-AASHA)
10.5.1 Components of the PM-AASHA Scheme
10.5.2 Challenges in the Implementation of PM-AASHA Scheme

10.6 Women Empowerment

10.6.1 Components of Women Empowerment
10.6.2 Programmes for Reducing Gender Inequality

10.7 Self-Help Groups (SHGs)

10.7.1 Rights of SHG Member
10.7.2 Obligations of SHG Member
10.7.3 Functions of SHGs

10.8 Concept of Community Health Centres (CHCs)

10.9 Rural-Urban Interface
10.10 National Institute of Rural Development & Panchayati Raj (NIRD &
PR)
10.11 Let Us Sum Up
10.12 Keywords
10.13 Suggested Further Readings/References
10.14 Answers to Check Your Progress

10.0 OBJECTIVES
After going through this unit, you will be able to:

 describe the meaning of rural resources and conceptual framework for

resource planning;

 explain the principles, procedures, and techniques of the participatory

rural approach (PRA); 211
Rural Development  discuss the concept of PRIs;

 elaborate on different dimensions of rural development;

 explain the concept of women's empowerment and also the formation

and functioning of self-help groups; and

 discuss the concepts such as community health centres (CHCs), rural-

urban interface, NIRD & PR.

10.1 INTRODUCTION
Dear Learners,

In the previous unit, you have learned about the features of the rural
economy, along with the problems faced by it. The concept of rural
livelihood was introduced and the role of agricultural forces/labour in rural
development was discussed. Various components related to sustainable
agricultural and rural development were introduced. You have also learned
how the Integrated Rural Development Programme is implemented.

Taking the discussion to the next level, it is needed to understand the

concepts related to resource planning which is essential for rural
development. It discusses the principles and techniques of the participatory
rural approach. It also sheds light on the components and challenges of the
PM-AASHA scheme. The tools and approaches of rural development, the
ideas of women empowerment, self-help groups, community health centres,
and rural-urban interface are thoroughly analyzed. The functions of
NIRD&PR are also discussed.

10.2 RURAL RESOURCES

Rural areas are usually dependent on natural resources including agricultural
resources, forest resources, timber, minerals, rivers, lakes, etc. The
infrastructure available such as transportation facilities, telecommunication,
housing, schools, health centres, work opportunities from non-farm-based
industries, markets, technology, banking, and other institutional support, etc.,
also form a part of rural resources.

In some places, rural people have started utilizing their historical or cultural
features, traditional skills, and artisanship as their sources of income.
Resource management for rural areas would mean identifying all such
resources available in villages and sustainably utilizing them to get adequate
income for their life and allow the future generation to derive similar benefits
as and when required.

10.2.1 Conceptual Framework for Resource Planning

Sustainable development of rural areas will promote quick growth of the
agricultural economy, enhance the local employment level and quality of
212 living for the rural people, and simultaneously preserve the ecological and
environmental factors of rural areas. The conceptual framework for Resource Planning
sustainable development indicates the interconnections between the tasks,
goals, factors that influence sustainability, mechanisms that provide for
development, and the instruments of sustainability in the whole and
separately. The Government, regional authorities, and the Panchayati Raj
Institutions (PRIs), etc., can be instrumental in bringing sustainable rural
development. The interrelationships of the factors and mechanisms
considered in the conceptual framework of sustainable rural development are
discussed below from the social, economic, and ecological aspects;

The conceptual framework for resource planning for rural development can
be understood from the estimation of existing resources in farming and non-
farming domains. The resources in the farming domain include cultivable
land available, water resources, cattle resources, minerals, timbers, and other
natural resources available in rural areas that can serve as a source of
employment/income generation to rural people.

Goals: Improving the quality of life in rural areas, enhanced agricultural efficiency
and rational utilization of natural resources.
Social: Raising the quality of life, preservation, and enhancement of cultural
potential.
Economic: Sustainable growth of rural economy including agricultural efficiency.
Ecological: Rational utilization of natural resources, preservation of environment.

Tasks: Creation of essential resources/assets for rural development sufficient to

maintain the social and natural potential of rural areas.
Social:Increase employment and income-generating opportunities.
Economic:Arranging credit and subsidy support to increase production efficiency.
Ecological:Preservation and restoration of natural resources in development efforts.

Factors: Availability of rural resources, infrastructure, and investment prospects.

Social:Availability of labour, social infrastructure, and demographic situations.
Economic:Competition, utility of infrastructure, availability of transportation, etc.
Ecological:Availability of ecologically safe measures, and their status
measurements.

Mechani[Link] and approaches to be used for the interaction of social,

economic, and ecological components to ensure sustainable rural development.
Social:Extension of social partnership between Government and rural people.
Economic:Extension of Investments, innovations, and production.
Ecological:Extension of Environment protection efforts in rural areas.

213
Rural Development The non-farming domains include resources available from domains other
than agriculture such as the rural infrastructure domain (houses, roads,
electricity, etc.), socio-economic domain (cottage and village industries, rural
markets, availability of the formal lending system, etc.) socio-cultural
domain, and environmental domains. All these available resources make
together the resource potential of the whole village. Based on the available
resources suitable development programmes are designed and implemented
in rural areas by the Government, NGOs, Panchayati Raj Institutions, etc.

The resulting indicators are closely monitored to confirm their achievements

toward the goals. The outcomes are measured and evaluated based on the pre-
determined parameters and the feedback is given to the authorities concerned
for further improvement. These authorities shall make necessary
interventions in the development programs, improve them accordingly, and
implement the same in model villages to achieve enhanced rural
development.

Fig. 10.1: Conceptual Framework for Resource Planning & Rural Development

10.3 PARTICIPATORY RURAL APPRAISAL

(PRA)
The Participatory Rural Appraisal (PRA) is a citizen-centric method of
development that aims at empowering communities by engaging residents in
the process of identifying issues, implementing solutions, and monitoring
evaluation. The PRA is also known as Participatory Learning and Action
(PLA).

10.3.1 Principles and Procedures of PRA

The PRA is a reversal technique of learning. The principles of PRA include
learning rapidly and progressively, offsetting biases, and triangulating. The
basic principles of PRA are as follows:
 Learn together, be inclusive and gender-sensitive;
214
  Not so rigid standardized methodology to be used; Resource Planning

 Biases may be avoided, more listening less lecturing;

 Attempts to identify and analyze contradictions and exceptions;
 Leave out unessential details;
 To get correct details and conclusions, it is better to cross-check;
 Use of local materials - dirt, stones, sticks, or paper; and
 Use of maps, models, and diagrams.

The procedures followed in PRA techniques are as follows:

i) Team formation,
ii) Clarifying goals and objectives,
iii) Choose main topics,
iv) Prepare a list of sub-topics,
v) Indicators and key questions,
vi) Review existing documentation,
vii) Select tools and methods to gather information and analysis,
viii) Processing is done in several rounds,
ix) Summarizing, and
x) Action.

10.3.2 Techniques of PRA

The various techniques used in PRA are as follows;

1. Transect Walk: It is an information-gathering process related to Natural

resources, land use, vegetation, physical infrastructure, cropping patterns
public resources, etc. The steps involved are as follows:
i. Selection of groups;
ii. Explain the objectives very clearly to the groups;
iii. Carefully plan a route that covers all features and record the
information;
iv. Analyse the transect diagram and information; and
v. Relate the information with the village planning.

2. Social Mapping: A social map provides data on community layout,

infrastructure, demography, health, education, livelihood, different social
groups, social institutions, and development is planned accordingly. This
process is comparatively easier when conducted with a small sample. The
steps involved are as follows: 215
Rural Development i. Selection of groups;
ii. Explain the objectives very clearly to the groups;
iii. Producing the social map;
iv. Analyze the social map; and
v. Relate the information with the village planning.

3. Community Resource Mapping: Community resource mapping enables

people to make a pictorial representation of the community resources,
topography, and settlements and identify problems, possibilities, and
opportunities and accordingly the development activities are planned.
The steps are as follows:
i. Selection of groups;
ii. Explain the objectives very clearly to the groups;
iii. Producing the community resource map;
iv. Analyse the community resource map; and
v. Relate the information with the village planning.

4. Seasonality Analysis: The seasonality analysis shows the distribution of

seasonally varying phenomena of a village related to its economic
activities, resource availability, production activities, health issues,
migration of communities, and other such problems. It helps in effective
village-level planning and understanding the seasonal variations in
vulnerability, risk, and access to assets or resources. The steps involved
are as follows:
i. Selection of groups;
ii. Explain the objectives very clearly to the groups;
iii. Communicate with rural people for information regarding the seasons
they follow;
iv. Analyze the seasonal calendar; and
v. Relate the information with the village planning.

5. Focused Group Discussion: Focus groups are structured around a set of

carefully predetermined questions but the discussion is free-flowing.
Ideally, participant’s comments will stimulate and influence the thinking
and sharing of others. Some people even find themselves changing their
opinions during the discussion. A focus group is homogeneous and may
not be considered as a debate or a conflict resolution session. The steps
involved in a Focused Group Discussion (FGD) are as follows:
i. Selection and segregation of groups;

216 ii. Explain the objectives very clearly to the groups to initiate discussion;
 iii. Carefully plan and moderate the discussion; Resource Planning

iv. Analyse results and prepare a written summary; and

v. Relate the information with the village planning.

6. Semi-Structured Interview: The semi-structured interviews are

conducted with a fairly open framework which allows for focused,
conversational, two-way communication. The main aim is to obtain
specific quantitative and qualitative information from a sample of the
population and some general information relevant to specific issues and
gain insights on specific issues. The steps involved are as follows:
i. Selection of individuals and/or groups;
ii. Explain the objectives very clearly to the groups;
iii. Start with more general questions or topics and eventually get
information;
iv. Analyze the schedules; and
v. Relate the information with the village planning.

Check Your Progress 10.1

Note: a) Write your answers in the space given below.

b) Match your answers with those given at the end of the unit.

1. The process of social mapping is comparatively easier to conduct when

the sample is
……………………………………………………………………………
……………………………………………………………………………

2. A focus group is ........................................ in nature and may not be

considered a debate or a conflict resolution session.

10.4 PANCHAYATI RAJ INSTITUTIONS (PRIs)

Panchayati Raj, introduced by the 73rd Constitutional Amendment in 1992, is
a system of local self-government of villages in rural India. The Panchayati
Raj Institutions (PRIs) ensure the achievement of local self-government in
India. These Institutions aim "to bring economic development in rural India,
strengthen social justice and implement various rural-based Central and State
Government Schemes, including those 29 subjects listed in the 11th Schedule
of the Indian Constitution”.

The PRIs give life to the village local government andplays a significant role
in the development of villages, especially in the fields of primary education,
health, agricultural development, women and child development, and
women's local government participation. In India, Bihar was the first state
217
Rural Development that adopt the Panchayat Raj System by enacting the Bihar Panchayat Raj Act
of 1947. The areas listed under the V Schedule and states Nagaland,
Meghalaya, and Mizoram, the hill areas of Darjeeling in West Bengal are
exempted from the implementation of the PR Act. The 74th Amendment of
the Constitution paved the way for the formation of urban local bodies.

Challenges in PRI execution

The major challenges in the execution of the PRI system are as follows:
i) As per the constitutional provisions, the PanchayatiRaj is a state
subject and the devolution of power and authority to panchayats has
been left to the discretion of states. Some states show reluctance to
share their powers and authority with PRIs.
ii) PRIs generate tax and non-tax revenue by renting shops, house tax
clean water fees, etc. However, their Own Source of Revenue (OSR)
is often inadequate to carry out various activities assigned to them.
The transfers made by the State Finance Commissions (SFCs) are also
meagre at times.
iii) Due to gender biases, women's illiteracy, and the patriarchal society
the 'SarpanchPati Culture' exists in many places and the elected
women representatives could not work independently.
iv) Some of the PRIsdo not have their own building and they share space
with schools, Anganwadi centres, and other places. Some have their
building but without basic facilities like toilets, drinking water,
electricity and internet connection.
v) The Standing Committee on Rural Development (July 2018) observed
that there is a severe lack of support staff and personnel as secretaries,
junior engineers, computer operators, and data entry operators in
many PRIs. This affects their effective functioning and delivery of
services by them.
vi) Sometimes, there is a lack of convergence between various
development programs of the State and the Centre. Different
guidelines issued by different departments cause a lack of
convergence. This affects the effectiveness of service delivery in
PRIs.

Check Your Progress 10.2

Note: a) Write your answers in the space given below.

b) Match your answers with those given at the end of the unit.

1. The 73rd Amendment added ……………………….. to the Constitution.

2. The 74th Amendment added …………………………..to the Constitution.

3. Panchayati Raj is a ………………………… subject.

218
 Resource Planning
10.5 PRADHAN MANTRI – ANNADATA AAY
SANRAKSHAN ABHIYAN (PM-AASHA)
The Pradhan Mantri –AnnadataAaySanrakshan Abhiyan (PM-AASHA) is a
scheme introduced in September 2018 to ensure farmers get fair prices for
their produce, by strengthening the procurement process. It is aimed at
providing financial assistance to farmers in distress due to crop failure and
increasing their income to a greater extent.

10.5.1 Components of the PM-AASHA Scheme

The important components of the PM-AASHA Scheme are as follows:

1. Price Support Scheme (PSS): The procurement of pulses, oilseeds, etc.,

will be carried out by the Central Nodal Agencies with State
Government support. The procurement process is done through the Price
Support Scheme (PSS) set up by the Food Corporation of India (FCI)
along with NAFED. All expenses incurred in the process are borne by
the Central Government.

2. Price Deficiency Payment Scheme (PDPS): All pulses, oilseeds, etc.,

notified for Minimum Support Price (MSP) are covered under this
scheme. The difference between the Minimum Support Price (MSP) and
the selling price is directly paid to the registered bank account of the
farmers. i.e., No procurement will take place but only the difference
between MSP and selling price is paid.

3. Pilot of Private Procurement &Stockiest Scheme (PPPS): The PPPS

refers to a procurement operation made by the private sector. The states
will have the option to carry out the scheme on a pilot basis in the
selected Agriculture Produces Marketing Committee (APMC) with
involvement from the private sector.

10.5.2 Challenges in the Implementation of the PM-AASHA

Scheme
The major challenges in the implementation of the PM-AASHA Scheme are
as follows:

 Experts think that this scheme does not improve the country's robust
infrastructure for procurement mechanisms for rice and wheat.

 A study conducted by K.S. Aditya in 2017 found that only 24% of

households were aware of the MSP scheme. Also, other studies have
found that the MSPs were functional only in a few states.

 Excluding wheat and rice, the quantity of agricultural produce procured

by the designated state agencies was too limited.

 The evaluation study conducted by the NITI Aayog has found that the
procurement facilities of many states were inadequate. 219
Rural Development Check Your Progress10.3

Note: a) Write your answers in the space given below.

b) Match your answers with those given at the end of the unit.

1. The main objective of the PM-AASHA scheme is to ensure farmers

get…….........………… and increase their …….................……. to a
great extent.

2. The procurement process is done through the Price Support Scheme set
up by the ……………………….. along with ………………….……

10.6 WOMEN EMPOWERMENT

Women's empowerment can be defined as promoting women's sense of self-
worth, their ability to determine their own choices, and their right to
influence social change for themselves and [Link] women helps
to create a more just and equitable society for everyone.

Health and Well-being: Women's empowerment is also important for

promoting health and well-being. When women have access to education and
healthcare, they can better take care of themselves and their families.

10.6.1 Components of Women Empowerment

As per the document prepared by the United Nations Agency, Task Force on
the implementation of the ICDPProgramme of Action, the concept of women
empowerment has five major components as listed below:

 Their sense of self-worth;

 Their right to have access to opportunities and resources;

 Their right to have and to determine choices and to make decisions on

their own;

 Their right to have power to control their own lives, within and
outside their homes; and

 Their ability to influence the direction of social change to create a

more just social and economic order.

10.6.2 Programmes for Reducing Gender Inequality

Reduction of gender inequality is one of the main requirements for women's
empowerment. Some important programs implemented to reduce gender
inequality are as follows:

1. The National Programme for Girls at Elementary Level (NPEGEL):

This program was specially tailored to ensure that girls have access to
220 elementary education as a part of the SarvaShikshaAbhiyan (SSA).
 Around 2 lakh teachers have been trained in gender sensitization and Resource Planning
free uniforms have been issued to 2 crore girls.

2. The National Literacy Mission (NLM): This program was initiated in

1988 to impart functional literacy to women. Nearly 60 per cent of the
beneficiaries are women. The NLM also provides post-literacy
campaigns and continuing education programs to sustain adult literacy.
About 120 million people were made literate by NLM.

3. The MahilaSamakhyaProgramme: This program aims to address-

women's perceptions of themselves through the mobilization of
marginalized rural women. The approach is to educate rural women
about the importance of educating girl children.

4. Protection of Women against Domestic Violence Bill, 2005: The

Hindu Succession Amendment Bill, 2004, and Pre-Conception and Pre-
Natal Diagnostic Techniques Act (PC & PNDT Act) 1994 are some of
the bold initiatives taken to strengthen the protection of women.

5. Prohibition of Child Marriage Act (PCMA), 2006: The legal age for
getting married for males is 21 and for females 18 in India. Marriage of a
girl below the age of 18 is called an illegal child marriage. The PCMA
enacted by the Government of India prevents such child marriages.

10.7 SELF HELP GROUPS (SHGs)

A Self Help Group (SHG) is a small group of people (not exceeding 15 to 20)
who voluntarily join together to save money and mutually agree to contribute
to a 'common fund' that is to be lent among themselves as per the group
decision. Members should be at least 18 years of age. Only one member from
one family is allowed.

The members of an SHG are economically and socially homogenous people

living in urban or rural areas. These SHGs are promoted by both the
Government and Non-Governmental Organizations (NGOs) with emphasis
on thrift and credit activities. All financial decisions in SHGs are collectively
taken by the group through a consensual approach. Registration is not
compulsory.

10.7.2 Rights of SHG member

An SHG member has the following rights:
i) Right to determine the goals, objectives, and vision of the SHG;
ii) Right, to participate in group meetings and decision-making;
iii) Right to participate in every activity of the group;
iv) Right to participate in a leadership function;
v) Right to share in the group’s wealth;
221
Rural Development vi) Right to access loans from the pooled corpus funds of the group;
vii) Right to scrutinize the records of SHG and inspect the properties; and
viii) Right to withdraw membership for genuine reasons.

10.7.3 Obligations of SHG member

An SHG member has the following obligations:
i) To participate in all group meetings and decision-making;
ii) To contribute the minimum agreed thrift amount to the group;
iii) To act with diligence in discharging group responsibilities;
iv) To discharge debt liability as contracted by the group;
v) To participate in the supervision of group finances and businesses;
and
vi) To defend the group in all its collective endeavours.

These rights and obligations of members are almost convergent mainly

because an SHG is an institution owned, managed, and controlled by the
members. Every member is a part of its management and transparency is the
watchword.

10.7.4 Functions of SHGs

The basic functions performed by an SHG are as follows:
i) There shall be a common agreement on when the members should
meet;
ii) The time and place of meetings is predetermined;
iii) There shall be agreed penalties for non-attendance of group meetings;
iv) There shall be an agreement on the amount of savings;
v) There shall be provision for giving small loans to each other; and
vi) Also, there shall be provision for taking loans from banks and
repayment habits.

10.8 CONCEPT OF COMMUNITY HEALTH

CENTRES (CHCs)
Healthcare infrastructure in rural India has been developed at three levels
namely the Sub-Centres (SCs), Primary Health Centres (PHCs), and
Community Health Centers (CHCs).

Sub Centres:It is the most peripheral contact point between the primary
health care system and the community. It serves the plain areas with at least
222 5000 population and the hilly-tribal or difficult areas with at least 3000
population. Each sub-centre is manned by at least 1 Auxiliary Nurse Midwife Resource Planning
(ANM) / female health worker. As per National Rural Health Mission
(NHRM) norms 1 Lady Health Visitor (LHV) is entrusted supervision of 6
SCs. The Government of India bears the salary of ANM and LHV. The state
government may appoint one Male Health Worker and bear his salary. As of
March 2019, 157541 sub-centers were functioning in the country.

Primary Health Centres: It is a referral unit for 6 sub-centres and the first
contact point between the village community and the medical officer. It
focuses on the preventive, curative, promotive, and family welfare aspects of
health care. It is established with 4 – 6 beds manned with one Medical
Officer in charge and 14 subordinate paramedical staff. It serves the plain
areas with at least 30000 population and the hilly-tribal or difficult areas with
at least 20000 population. As of March 2019, 24855 PHCs were functioning
in the country.

Community Health Centres: It is a 30-bed referral unit for attaching 4

PHCs with specialized services. Each CHC is required to be manned with 4
medical specialists (1 surgeon, 1 physician, 1 gynaecologist, and
1paediatrician) who shall be supported by 21 paramedical and other staff. It
serves the plain areas with at least 120000 population and the hilly-tribal or
difficult areas with at least 80000 population. It provides care in Medicine,
Obstetrics and Gynecology, Surgery, Pediatrics, Dental and AYUSH. 5951
CHCs were functioning in the country as of March 2021 as per Rural Health
Statistics Bulletin 2021.

Unlike Sub-centre and PHCs, CHCs will be of one type only and will act as
the block-level health administrative unit and gatekeeper for referrals to a
higher level of facilities. The CHC serves as the first referral unit, block-level
administrative unit, and block-level public health [Link] Indian Public
Health Standards (IPHS) for CHCs have been prescribed under the National
Rural Health Mission (NRHM) since 2007 to provide specialized care to the
community and maintain an acceptable standard of quality of care. These
standards would act as benchmarks to monitor and improve the functioning
of the CHCs.

10.9 RURAL-URBAN INTERFACE

The rural-urban interactions are the basis for a balanced regional
development that is economically, socially, and environmentally sustainable.
The local government institutions can play an important role in facilitating
positive interactions and limiting negative [Link] is best placed for
decision-making on physical transport and communication infrastructure.
However, the infrastructure expenditure can be significant and well beyond
the means of local self-government. Therefore, wider alliances which can
increase the access to financial resources are necessary.

223
Rural Development Table 10.1: Livelihoods and the Rural-Urban Continuum

RURAL URBAN
Livelihoods are drawn from natural capital Livelihoods are drawn from the non-
such as crop cultivation, livestock, agricultural labour markets by making/
forestry, fishing, etc. selling of goods or services.
Access to natural capital is the key asset The house is the main economic resource/
and basis for rural livelihood. production space for urban livelihood.
Access to land for housing is very
Generally, access to land for housing and
difficult; housing and land markets are
building materials is not a problem.
highly commercialized.
Rural areas are distant from the
Urban areas are more vulnerable to ‘bad’
government as the regulator and provider
governance.
of services.
Access to infrastructure and services is Access to infrastructure and services is
limited largely because of their less difficult for the poor and easy for the rich.
awareness and limited capacity to pay. Poor governance is also a problem.
Limited opportunities for earning cash as Multiple opportunities for earning cash.
people put greater reliance on favourable Greater reliance on cash for access to
weather conditions. Most of the income food, water, sanitation, employment, and
Rural-Urban Interface

goes for self-provisioning. children's education.

Urban Characteristics in Rural Characteristics in
Rural Areas Urban Areas
Prosperous tourist areas, mining areas,
Urban agriculture, village enclaves, and
high-value crops, and diverse non-
access to land for housing through non-
agricultural production with strong links
monetary traditional forms.
to cities.

Check Your Progress 10.4

Note: a) Write your answers in the space given below.
b) Match your answers with those given at the end of the unit.

1. Rural livelihood depends on the opportunities available for ……………

labour and urban livelihood depends on the market for …………labour.

2. The ………………….. areas surrounding urban centres play an important

role in providing food for urban consumers, low-cost transportation, and
storage.

10.10 NATIONAL INSTITUTE OF RURAL

DEVELOPMENT & PANCHAYATI RAJ
(NIRD & PR)
The National Institute of Rural Development and Panchayati Raj, Hyderabad
is an autonomous institution established under the Union Ministry of Rural
Development, Government of India. It is one of the UN-ESCAP Centre of
224
Excellence in India functioning Resource Planning
in the fields of Rural
Development and Panchayati
Raj. It is involved in offering
various inter-related training,
research, and consultancy
services to build capacities of
rural development functionaries,
elected representatives of PRIs,
bankers, NGOs, and other Figure 10.2: NIRD & PR Building, Hyderabad
stakeholders. This Institute has a North-Eastern Regional Centre at Guwahati,
Assam to meet the needs of north-eastern regions. The Council for
Advancement of People’s Action and Rural Technology (CAPART), an
autonomous organization functioning under the Ministry of Rural
Development, was merged with NIRDPR in May 2020.

Vision: The vision for the institute is "to focus on the policies and programs
that benefit the rural poor, strive to energize the democratic decentralization
processes, improve the operation and efficiency of rural development
personnel, promote the transfer of technology through its social laboratories,
Technology Park and create environmental awareness”.Being a ‘think-tank’
for the Ministry of Rural Development, the NIRD & PR acts as a repository
of knowledge on rural development and assists the Ministry in policy
formulation.

Mission: The mission of NIRD & PR is as follows:

1. To examine and analyze the factors contributing to the improvement of
the economic and social well-being of people in rural areas on a
sustainable basis, through research, consultancy, and documentation
efforts. The focus is on the rural poor and other disadvantaged groups.
2. To facilitate the rural development efforts with a specific focus on the
rural poor.
3. To improve the knowledge, skills, and attitudes of rural development
officials and support staff through training, workshops, and seminars.

Objectives

The objectives of NIRD&PR are as follows:

1. To organize training programs, workshops, seminars, and conferences for
development officials, elected representatives of PRIs, bankers, NGOs,
etc.;
2. To undertake research in collaboration with state, national & international
agencies;
3. To offer solutions to problems encountered in the planning and
implementation of rural development programs by various development
institutions including the PRIs; 225
Rural Development 4. To study the functioning of the Panchayati Raj Institutions (PRIs) and
rural development programs across the country;
5. To analyze and suggest solutions to problems in the planning and
implementation of various rural development programs; and
6. To develop content for periodicals, reports, e-modules, and other
publications to disseminate information among different stakeholders.

10.11 LET US SUM UP

In this unit, you have already learnt the following:
 The process of improving the quality of life and economic well-being
of people living in rural areas is known as rural development. The
estimation of existing resources in farming and non-farming domains
is essential for planning rural development.
 Based on such available resources suitable development programs are
designed and implemented and the outcomes are measured and
evaluated on the basis of the pre-determined parameters.
 The Participatory Rural Approach (PRA) is a citizen-centric method
of development that aims at empowering communities by engaging
residents in the process of rural development. It uses various
techniques such as transect walk, social mapping, community
resource mapping, seasonality analysis, etc.
 Panchayati Raj is a system of local self-government of villages
through Rural Local [Link] approaches followed for rural
development include the multi-purpose approach, sectoral approach,
target approach, area development, integrated approach; basic needs
approach, and participatory approach.
 A self-help group is a small group of people who voluntarily join
together to save money and mutually agree to contribute to a
'common fund' that is to be lent among themselves as per the group
decision.
 A community health centreis a 30-bed referral unit for attaching 4
PHCs with specialized services.
 The rural-urban interactions are the basis for a balanced regional
development that is economically, socially, and environmentally
sustainable. The local government institutions can play an important
role in facilitating positive interactions and limiting negative
exchanges.

10.12 KEYWORDS
APMC : Agriculture Produces Marketing Committee.

226 CHC : Community Health Center.

DDU-AY : DeenDayalUpadhyay – AntyodayaYojana. Resource Planning

FGD : Focused Group Discussion.

IRDP : Integrated Rural Development Programme.
MGNREGA : Mahatma Gandhi National Rural Employment
Guarantee Act.
NIRD & PR : National Institute of Rural Development and
Panchayati Raj.
NRLM : National Rural Livelihood Mission.
PDPS : Price Deficiency Payment Scheme.
PM-AASHA : Pradhan Mantri –AnnadataAaySanraksHanAbhiyan.
PPPS : Pilot of Private Procurement & Stockiest Scheme.
PRA : Participatory Rural Approach.
PRI : Panchayati Raj Institutions.
ULB : Rural Local Bodies.

10.13 SUGGESTED FURTHER READINGS/

REFERENCES
1. Ajay Tankha. (2012). Banking on self-help groups: Twenty years on. New
Delhi: Sage Publications.

2. Government of India, National Institute of Rural Development and

Panchayati Raj, (2020). Model learning materials for elected
representatives of gram panchayats. (Book -3), Hyderabad, India: NIRD
&PR.

3. Krishnan, M.G. (1992). Panchayati Raj in India: An Analytical Study of

Karnataka (1st ed.). New Delhi, India: Mittal Publications.

10.14 ANSWERS TO CHECK YOUR PROGRESS

Check Your Progress 10.1

1. Small in size.

2. Homogeneous

Check Your Progress 10.2

1. Part IX (The Panchayats)

2. Part IXA (The Municipalities)

3. State subject
227
Rural Development Check Your Progress 10.3

1. Fair price for their produces, Income

2. Food Corporation of India, NAFED

Check Your Progress 10.4

1. Natural (or) Agricultural, Non-Agricultural

2. Peri-Urban

228
 Village Development
UNIT 11 VILLAGE DEVELOPMENT
Structure

11.0 Objectives
11.1 Introduction
11.2 Village Development Plan(VDP)
11.2.1 Objectives of VDP
11.2.2 Village Development Committee (VDC) and Nodal Agency
11.2.3 Operational Mechanism
11.2.4 Preparation of Plan Document
11.2.5 Key Strategies of Implementation
11.2.6 Outcome Evaluation

11.3 Gram Panchayat Development Plan (GPDP)

11.3.1 Components of GPDP Cycle
11.3.2 GPDP Implementation and Convergence: A Case Study

11.4 Village Poverty Reduction Plan (VPRP)

11.4.1 Objective of VPRP
11.4.2 Components of VPRP

11.5 Let Us Sum Up

11.6 Keywords
11.7 Suggested Further Readings/References
11.8 Answers to Check Your Progress

11.0 OBJECTIVES
After going through this unit, you will be able to:
 recall the meaning and objectives of the Village Development Plan
(VDP);
 explain how the VDP document is prepared and implemented;
 discuss the meaning of Gram Panchayat Development Plan (GPDP)
and People’s Plan Campaign (PPC);
 discuss various components of GPDP; and
 describe the meaning, objectives, and demands of the Village Poverty
Reduction Plan.

11.1 INTRODUCTION
In the previous unit, you have learned about the concept of resource planning
which is essential for rural development. The techniques of the participatory 229
Rural Development rural approach were introduced. The functioning of panchayat raj institutions
was discussed in detail. The components and challenges of the PM-AASHA
scheme were critically analyzed. The tools and approaches of rural
development, the ideas of women empowerment, self-help groups,
community health centres, and rural-urban interface were thoroughly
analyzed. Also, you have learned the functions of NIRD&PR.

Taking the discussion to the next level, it is needed to understand the

concepts related to village development in detail. This unit aims to introduce
you to the objectives, implementation strategies, and outcome evaluation
methods of the village development plan. The components of the Gram
Panchayat Development Plan (GPDP) have been critically analyzed. Also,
the objectives and components of the Village Poverty Reduction Plan
(VPRP) have been discussed.

11.2 VILLAGE DEVELOPMENT PLAN (VDP)

A majority of the Indian villages face many development constraints such as
access to education, health facilities, drinking water, roads, power, credit, and
market. A Village Development Plan (VDP) is a document that outlines the
desired developments as expected by the residents of that village. It aims at
improving the quality of life within and the immediate surroundings of the
village. The VDP provides a road map to identify various social, economic,
and environmental issues affecting the rural community, set goals, define the
action plan, and guide its effective implementation.

It is prepared after identifying the major issues, carefully analyzing the

problems, and developing intervention strategies. It suggests methods for the
optimum utilization of resources to bring maximum benefits for the local
communities in both farm-based and non-farm-based livelihood aspects.

11.2.1 Objectives of VDP

The main objective of a village development plan is to develop the selected
village in an integrated manner. This would include economic development,
infrastructure development, and other aspects of human development i.e.,
education, health, drinking water supply, and access to bank credit.

11.2.2 Village Development Committee (VDC) and Nodal

Agency
A Village Development Committee (VDC) is a voluntary association of
village people formed for the local administration of VDP. It is extra-
constitutional. A VDC may consist of member representatives from all
categories of people living in the village. It will monitor the implementation
of the VDP and a separate monitoring committee will be put in place at the
district level, which will include the lead bank, NGOs, NABARD, and other
development agencies.

Nodal Agency: Anyone willing to implement a VDP can become a nodal

230 agency. It may be anyone among the Government, Agricultural Universities,
KVKs, NGOs, SHGs, Village Development Committees, Farmers’ Clubs, Village Development
Individual Rural Volunteers (IRVs), Cooperative Societies, Bank Branches
and Post Offices. The village development plan can be directly prepared and
implemented by NABARD through District Development Managers(DDM)
or the banks independently. Alternatively, it can identify any of the nodal
agencies listed above and finalize the same in due consultation with the
concerned regional office.

Due care should be taken to ensure that the selected nodal agency is locally
based so that it can easily mobilize the requisite support from the
stakeholders and deliver the intended results on time. It would be desirable to
make some provision of incentive to the nodal agency on mutually agreed
terms if inducted for the implementation of VDP.

Responsibilities of a Nodal Agency

The responsibilities of a nodal agency are as follows:

i) To create necessary awareness among the village people and officials
about the VDP;
ii) To undertake PRA exercise;
iii) To identify people’s needs;
iv) To prepare the plan document to bring adequate socio-economic and
infrastructural development in the village;
v) To place the plan before the stakeholders such as VDC, NGOs,
Banks, Government Departments, PRIs, NABARD, etc., for their
approval;
vi) Coordinate the physical, financial, and promotional support necessary
for the plan;
vii) To obtain firm commitments from each stakeholder;
viii) To commence plan implementation in earnest; and
ix) To monitor the progress and guide for effective implementation.

11.2.3 Operational Mechanism

The Nodal agency or banker conducts a workshop to explain the concept of
VDP to village people and discuss ways to operationalize the plan.
Discussions on VDP may be undertaken with local leaders to explain the
possible benefits and seek their active involvement in its implementation.
Also conducts workshops at the local level for other stakeholders such as
government officials, banks, NGOs, local panchayats, and other development
agencies about VDP.

The Nodal agency assigned responsibility to a team of officers and

designateda nodal officer to coordinate the village development work at
ground level. It setup a Village Development Committee (VDC) involving 231
Rural Development the relevant government departments, banks, NGOs, academicians, and social
workers to help in the formulation of plans, networking, implementation, and
monitoring.

The members of the VDC will elect their leader from amongst themselves
through consensus to head the VDC. Since the VDP aims at the convergence
of all schemes of the government, involvement of the Government at the
local level is a must. Since village panchayats play a critical role in the
development of villages, they could be involved right from the beginning of
the exercise.

Identification of the needs of the village, based on discussions made with the
villagers and local leaders through PRA exercise. Since credit flow is crucial
in the plan, the involvement of bankers at the local level is imperative at the
planning stage itself. The credit target should be based on a bottom-up
approach.

Selection of Villages

The criteria for village selection are as follows:

i) The selected village should be within the PPID Block/DDM District.
In the case of NABARD, the Non-DDM district may also be
considered on merit. Banks can have their own choice.
ii) It should have responsive Panchayat machinery.
iii) It should be well connected with the district headquarters.
iv) Priority may be given to the villages which have volunteers of active
participation.
v) Preference may be given to the villages which have a high need for
development.

11.2.4 Preparation of Plan Document

The preparation of VDP is done in two phases. The PRA exercise will
precede the plan preparation. It shall cover two types of information namely
the:

i) Basic Information such as gender-wise population, literacy level, land

use pattern, production trends, major crops grown, and so on.

ii) Information regarding the existing situation such as infrastructure

such as transportation and communication facilities, institutional
support like post office, banks, credit facility including recovery, and
so on.

The VDP may be prepared by the Nodal Agency by covering the following
areas:

232 i) Development activities are to be undertaken with bank credit.

 ii) Promotional support in the form of grants or soft loan assistance from Village Development
NABARD/ State / Central Government Agencies and Line
Departments.
iii) Creation of Infrastructural facilities with NABARD support under
RIDF through State Government Departments or Panchayati Raj
Institutions.
iv) Promotional activities such as conducting meetings/workshops,
publicity, etc., related to the adoption of villages are to be funded
under the plan through grant support.
v) Any other activities, programs, or schemes to be undertaken.
vi) Dove-tailing of various schemes/programs for which Grant support is
available from the Government / NABARD and other agencies.
vii) Government schemes for social development like education, health,
drinking water, etc. may be attempted for synergy and convergence.

11.2.5 Key Strategies of Implementation

The period of VDP implementation will be 3 years with scope for extension
for another 2 years. The implementing agency will strive to implement the
plan within this period to achieve the desired socio-economic impact on the
lives of the village community. The key implementation strategies are as
follows:

i) Scope of the Plan: The plan should aim at developing the selected
village so that it can become a 'replicable model' for achieving holistic
development.

ii) Family-Centric Approach: While assessing the credit needs of the

village communities, a ‘family-centric approach’ shall be adopted.

iii) Financial Inclusion: All the beneficiary borrowers including the

tenant farmers, oral lessees, sharecroppers, and defaulters should be
brought into the fold of KCC. At least 2% of their crop loans should
be directed towards tenant farmers / oral lessees.

iv) Peoples’ Involvement: The success and sustainability of the VDP

depend upon the active participation of local people in it. Hence at
every stage of implementation people's involvement should be
ensured.

11.2.6 Outcome Evaluation

The outcome of the VDP implemented can be measured using the suggestive
benchmarks listed below:

i) Reduction of the number of BPL families from ………..to ………..

(Reduced by……. %).
233
Rural Development ii) Increase in the literacy level from…………..% of the population to
…….... %.

iii) Reduction in the number of migrant labourers from ………..to ……..

(Reduced by……. %).

iv) Number of Non-farm self-employment units started with bank credit

during VDP……

v) In several rural industries, post-harvest management/value addition

including processing units started during the implementation of VDP.

vi) Ensuring 100% financial inclusion and doubling the credit

disbursement.

vii) Achieving all-weather road connectivity to the village.

viii) Gender-related vision and targets.

ix) Protection of environment / ecological balancing/restoration (The

expected position at the end of each year for the three years may be
indicated).

Check Your Progress 11.1

Note: a) Write your answers in the space given below.

b) Match your answers with those given at the end of the unit.

1. What is the main objective of a village development plan?

……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

2. How is the plan document prepared for VDP?

……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

11.3 GRAM PANCHAYAT DEVELOPMENT PLAN

(GPDP)
The Panchayati Raj System is a unique system of local self-government in
India. The 73rd Amendment (Article 243G) has constitutionally mandated
the Panchayats to prepare the Gram Panchayat Development Plans (GPDPs)
for promoting economic development and social justice in villages by
234
Panchayats utilizing all the resources available to them at the local level. The Village Development
14th Finance Commission recommendations also made it mandatory for the
Panchayats to prepare the GPDPs to utilize the Panchayat Grants.

The guidelines issued by the Ministry of Finance for the release and
utilization of the local bodies grant stipulate that proper plans are to be
prepared by the Gram Panchayats for the essential services within the
functions devolved to them as per State laws before incurring expenditure
under the FFC award. The Ministry of Panchayati Raj (MoPR) had prepared
and circulated its first guidelines for preparing the GPDPs in 2015.
Subsequently, the States / UTs have also made their guidelines following
their specific needs, and their Gram Panchayats (GPs) have prepared the
GPDPs for 2016-17, 2017-18 and 2018-19.

Revised GPDP Guidelines 2018

Keeping the contemporary developments and for making a comprehensive

GPDP, the MoPR constituted an expert committee consisting of the
representatives of MoPR, related Ministries, State Governments, National
Institute of Rural Development &Panchayati Raj (NIRD& PR), State
Institutes of Rural Development (SIRDs) and other experts to revise the
GPDP Guidelines 2015. The committee deliberated various dimensions of
GPDP, analyzed the experiences in the preparation and implementation of the
GPDP from 2016-17 to 2018-19 across the country, identified the processes
to deal with new challenges and opportunities emerging in rural areas, and
accordingly revised it in 2018.

These new guidelines serve as the user manual for the Gram Panchayats
(GPs) and other principal stakeholders for preparing the GPDP. It discusses
various steps and processes that a GP should undertake to prepare a need-
based, participatory, and inclusive GPDP. The GPDP provisions should also
aim at achieving the Sustainable Development Goals (SDGs) by 2030.

People's Plan Campaign for GPDP

The Ministry of Panchayati Raj (MoPR) launched the People's Plan

Campaign (PPC) "SabkiYojanaSabkaVikas" in 2018 (rolled out from 2nd
October to 31st December 2019). The PPC aimed at enabling the GPs to
prepare structured and evidence-based GPDPs for 2019-20 and 2020-21. The
State Governments, for this purpose, encouraged the Panchayats to hold
Gram Sabha meetings across the country and empower the Gram Panchayats
to prepare a convergent and holistic GPDP by identifying sectoral/
infrastructural gaps in the respective areas. Inspired by the commendable
performance of the Gram Sabhas, Gram Panchayats, and other stakeholders
in the previous PPCs, this exercise has again been rolled out in a Campaign
mode from 2nd October 2020 to 31 January 2021 for preparation of the
GPDP 2021-22.

235
Rural Development 11.3.1 Components of GPDP Cycle
The primary components ofthe GPDP Cycle are as follows:

1. Formation of GPPFT. 6. Visioning Exercise for Goal Setting

2. Environment Creation 7. Resources and Activity Identification

3. PRA and Community Mobilization 8. Plan Development and Prioritization

4. Collection of Primary & Secondary Data 9. Approval of GPDP

5. Situation Analysis [Link] and Monitoring

Formation Initial
of GPPFT Gram Sabha
Plan
Implementation Environment
Creation
Gram Sabha For and Monitoring
Plan Approval

PRA
Plan Approval Community
Gram Panchayat Mobilization
and its
Committees
take active part in
Prioritization, GPDP Preparation Collection of
and Plan Primary and
Preparation Secondary Data

Resource
and Activity Situation
Analysis
Identification
Special Visioning
Gram Sabha Exercise

Fig.11.1: Components of the GPDP Plan Cycle

i) Formation of Gram Panchayat Planning Facilitation Team

(GPPFT): The Gram Panchayats (GPs) need to prepare GPDPs to
ensure maximum participation of local beneficiaries, optimal
utilization of resources, and significant developmental benefits for
their villages. For this, every GP may form a team, namely the Gram
Panchayat Planning Facilitation Team (GPPFT) under the
chairmanship of the Panchayat President. The GPPFT will facilitate
all the steps of the planning exercise right from the stage of
environment creation to the approval of GPDP, its implementation,
and monitoring.

ii) Environment Creation: Before starting the formal preparation of

GPDP, a Gram Sabha meeting should be conducted to create
awareness among the villagers about the need for GPDP, and the plan
is discussed in detail. If required, separate Gram Sabha for women,
children and the elderly may be conducted before the Gram Sabha
236
 meetings to mainstream their issues with the GPDP. The environment Village Development
creation for GPDP preparation should create a festive environment to
solicit the willing participation of all stakeholders.

iii) Community Mobilization: Community mobilization and community

ownership are critical for low-cost or no-cost development activities.
Many activities to be undertaken by GP may not be cost-intensive or
require any funds at all. For instance, activities like campaigns on
Swachhta (cleanliness), sanitation, school enrolment of dropouts,
ensuring enrolment of pregnant women for institutional delivery,
village plantation, and social forestry are more effective in community
mobilization without incurring any cost.

Source:[Link]
social-audit-exercise-in-andhra-pradesh-ap-is-time-pioneering-state-which-has-made-the-
social-audit-as-a-non-negotiable-exercise-to-check-whether-all-the-expenditur/retrieved
on 01.02.2024
Fig. 11.2: A Gram Sabha is in Progress in Andhra Pradesh

iv) Data Collection: The primary objective of the preparation of GPDP

is to identify and formulate ways of addressing the development
needs of the GP. This can be identified using the secondary data
already collected through sources such as the Census, SECC, Mission
Antyodaya, published data by line departments, and previous GPDP
surveys. These secondary data will be pre-populated in the Plan-Plus
Software. GPs may use them for better plan preparation after
verification.

Besides the secondary data, the GPs may also collect the primary data
to update/validate the secondary sources, fill the gaps, and have 360
degrees of coverage of each household's needs in the GPDP. The tools
for the collection of primary data may include household surveys,
Participatory Rural Appraisal (PRA) including transect
walks,socialmapping, resource mapping, and focus group discussion.

v) Situation Analysis: The GPs conduct a situation analysis to identify

the critical issues, community needs, gaps in infrastructure, amenities,
and services, and the areas where plan intervention is needed. For
example, it may identify gaps in civic amenities like the need for solid
and liquid waste management, overall cleanliness, habitations without
roads, and whether it requires repair, restoration, or new construction.
237
Rural Development After completing the situation analysis, the GPPFT needs to prepare a
draft Development Status Report (DSR) of the GP and place it before
the Gram Sabha. This discussion will make people aware of the exact
and real-time situation of the people in the respective focus areas.
vi) Visioning Exercise: The GPs should conduct a Gram Sabha meeting
to undertake a visioning exercise based on the findings of the DSR.
Visioning refers to what the local people want their GP to be in the
next five years in the identified principal thematic areas. The vision
document should clearly show the commitment of GP to make its
functions more effective and efficient in improving the quantity and
quality of primary services. It also helps to identify priorities and set
clear milestones to be achieved by the GP during the plan period. The
GPs, while preparing GPDP, may give priority to economic
development, poverty reduction, water and sanitation, natural
resource management, and social justice.
vii) Resources for Planning: Resources are not confined to financial
resources only. GPs should be aware of all kinds of resources at their
disposal to carry out the
GPDP activities. Resources for
Resources may be planning SOCIAL
(1) social resources, (2)
natural resources, (3)
human resources, and
(4) financial resources. FINANCIAL RESOURCES NATURAL

Panchayats are
dependent on the grants
received from Finance HUMAN
Commissions, Centrally
Sponsored Schemes,
and State Governments.
The GP funds may be Figure 11.3: Resource Planning for RD
tied, untied, or partly
tied. However, for an empowered GP, adequate generation of Own
Source Revenue (OSR) is critical. The GPs should mobilize at least
10% to 20% of the resources locally.
viii) Preparation of Draft GPDP: The GPs should initially prepare a
five-year perspective GPDP, and subsequently, based on
prioritization; they should prepare separate annual plans after
considering necessary changes as per the current situation. After
preparing the Draft Status Report (DSR), the GPPFT should organize
a one-day Panchayat Development Seminar, present the DSR to the
participants, andinvite their suggestions for improvement.
After consolidating the prioritized activities or needs, the GPPFT
shall prepare a list of feasible and executable works. All works
identified shall be mapped to the resources available with the GP with
the funding details of Government schemes. Under Article 243G of
238
 the Constitution, the GPs need to cater primary services referred to Village Development
within the 29 subjects of the 11th schedule of the constitution like
water supply, sanitation, solid waste management, maintenance of
community toilets, roads, footpaths, street-lighting, burial, children
park and cremation grounds.
The GPDP takes up activities that can increase local production,
employment opportunities, and market access to the local produces by
converging various poverty reduction programs such as MGNREGA,
NRLM, PMAY, PMGSY, NSAP, PMASY, and RKVY. The activities
taken up under GPDP should be environment-friendly and bio-
diversity-enhancing. Therefore, the GPs should necessarily take up
maintenance and up-gradation of various ecosystems like water
bodies, pastures, and grasslands.
GPDP should also focus on skill-building for vulnerable sections,
including women. It should create databases for skill demand and
placement, conduct Job Melas, track job placements after training,
and interact with candidates to monitor their performance as part of
the grievance redressal mechanism. The GPDP should have activities
for attaining the rights of women and children in the village and take
steps to operationalize the same. The e-governance in GPDP makes
the governance in GP activities more efficient and transparent through
disclosure of information and efficient delivery of services.
ix) Approval of GPDP by Gram Sabha: The Panchayat will place the
GPDP before the Gram Sabha to get the GPDP approved as per the
state guidelines. GP and GPPFT members should sensitize Gram
Sabha participants about the process of GPDP preparation and should
explain the details of the projects included in the GPDP. The GP shall
display the decisions taken by the Gram Sabha on the noticeboards in
the Panchayat and other local institutions.
x) Plan Implementation and Monitoring: There should be clearly
defined roles and responsibilities of various departments, agencies,
andfunctionaries for better implementation and monitoring of GPDP.
There should be an established system for all village-level
functionaries to come tothe GPs on fixeddays to discuss the
implementation status with all concerned, sort out operational
problems, listen to people, and redress their grievances.

Schematic guidelines of various schemes should include instructions for

integration with GPDP andgrassroots-level functionaries of respective
departments. The GPDP must mention the role of SHGs, and other village
organizations in implementing thedevelopment plan and ensure their active
[Link], there should be a robust monitoring system for the
implementation of GPDP.

Salient Features of the GPDP Process

The Gram Panchayat Facilitating Team (GPFT) consists of Elected

Representatives (ERs) and employees of the GP, employees of line 239
Rural Development departments including ANM, ASHA, ICDS Supervisor, and members of the
Self-help Groups, school teachers and volunteers, among others, have steered
the GPDP preparation and implementation. Intensive community
mobilization through women's SHGs has been instrumental in sustaining
participation in the planning process. Invitation letters from the GP to each
household, rally, and procession, and wall writing by SHGs on social issues
have also enabled the community to jell together.

Vibrant “Para Baithaks" (neighbourhood meetings) havebecome the catalyst

for situation analysis bringing out sector-specific information on local
challenges, resources, and solutions. Taking note of the importance of local
action for attaining Sustainable Development Goals (SDGs), each planned
activity was discussed and linked with the relevant SDG. Low-cost and no-
cost activities like awareness camps on child labour and human trafficking,
public health, women and child development, and social forestry were given
due importance along with cost-intensive infrastructure-related activities
([Link]).

11.3.2 GPDP Implementation and Convergence: A Case

Study
The Digambarpur GP prepared an integrated GPDP that converges all
resources available to GP under various programs. The budget for 2017-18
stood at Rs.9.023 crore. The GP has implemented several schemes
dovetailing resources from the Fourteenth Finance Commission Grant, the
Swachh Bharat Mission, the State Finance Commission Grant, the State's
special untied fund (from the World Bank), and Own Source Revenue for
effective delivery of services like solid and liquid waste management,
community toilets, provision of drinking water, construction of ICDS
Centres, and improving road [Link] GPDP utilizes GIS-based
technology and an Android-based customized mobile application (designed
and developed by the state). They capture field-level data on project
execution with latitude, longitude, image, date, and time stamp
([Link]).

Fig. 11.4: Making GPDP a Vehicle for Local Development in Digambarpur GP,
West Bengal
240
For instance, the GP has become ODF. Households are getting piped water Village Development
against a monthly fee of Rs.50. Solid waste collection and processing is
getting done against payment of Rs.10/household/month. The empowered
SHGs and groups of adolescent girls (Kanyasree Brigade) created through the
Government of West Bengal's 'Kanyasree' scheme were utilized to curb social
evils like early marriage, trafficking, distribution of sanitary napkins to
adolescent girls and women from their own-source revenue
([Link]).

Award:Digambarpur Gram Panchayat was awarded first prize in India for

GPDP.

Activity 11.1:
Visit a nearby Gram Panchayat and talk to the Panchayat authorities to find
out if they have made any GPDP for their village. Accompany with them to
the site to observe the development work carried out under GPDP. Compare
the development work with pre-development status and provide your
constructive suggestions (if any) to improve the work standard. Make a
presentation of your observations to your fellow learners using PPT.
…………………………………………………………………………………
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Check Your Progress 11.2

Note: a) Write your answers in the space given below.
b) Match your answers with those given at the end of the unit.

1. What is the role of GPPFT in the implementation of GPDP?

……………………………………………………………………………
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2. What is the source of income for GPDP implementation?

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Rural Development
11.4 VILLAGE POVERTY REDUCTION PLAN
(VPRP)
The Village Poverty Reduction Plan (VPRP) is a plan prepared by the Self
Help Group (SHG) network which may be integrated into the Gram
Panchayat Development Plan (GPDP). Since 2018, the People's Plan
Campaign (PPC) guidelines and the joint advisory issued by the Ministry of
Panchayati Raj and Ministry of Rural Development as mandated Self Help
Groups and their federations under DeendayalAntyodayaYojana-National
Rural Livelihoods Mission (DAY-NRLM) to participate in the annual GPDP
planning process and prepare the Village Poverty Reduction Plan (VPRP).

11.4.1 Objectives ofVPRP

The main objectives of VPRP are as follows:
i) Strengthen the community-based organizations and their leadership
for active participation in poverty reduction activities;
ii) Prepare a comprehensive and inclusive demand plan for the
community for local development; and
iii) Facilitate an interface between the SHG federation and Panchayati
Raj institutions for the development of a demand plan.

11.4.2 Components ofVPRP

Given below are the major components of VRPP:
i) Social Inclusion: The VPRP is a plan for the inclusion of vulnerable
people or households into SHGs under NRLM.
ii) Entitlement: The demand for various schemes such as MGNREGS,
SBM, NSAP, PMAY, Ujjwala, and Ration Card holders comes under
the purview of VPRP.
iii) Livelihoods: Specific demands for enhancing livelihood through
developing agriculture, animal husbandry, production and service
enterprises, and skilled training for placement are taken care of by
VPRP.
iv) Public Goods and Services: The demands for necessary basic
infrastructure, for the renovation of the existing infrastructure, and
better service delivery are considered under VPRP.
v) Resource Development: VPRP accommodates demands for the
protection and development of natural resources like land, water,
forest, and other locally available resources.
vi) Social Development: Similarly, the demands for specific social
development issues of a village under the low-cost / no-cost
component of GPDP are also accommodated under VPRP.
242
 Village Development
11.5 LET US SUM UP
In this unit, you have already learnt the following:
 A Village Development Plan (VDP) is a document that outlines the
desired developments as expected by the residents of that village. It
aims at improving the quality of life within and the immediate
surroundings of the village. A Village Development Committee, an
extra-constitutional association is responsible for the local
administration of VDP. The VDP is prepared in two phases.
 The PRA exercise will precede the plan [Link] plan is
implemented with a family-centric approach, ensuring financial
inclusion and people's involvement. The outcome is measured using
predetermined standards and corrective measures are taken wherever
necessary.
 The 73rd Amendment (Article 243G) has constitutionally mandated
the Panchayats to prepare the Gram Panchayat Development Plans
(GPDPs) for promoting economic development and social justice in
villages by Panchayats utilizing all the resources available to them at
the local level.
 The Village Poverty Reduction Plan (VPRP) is a plan prepared by the
Self Help Groups network which may be integrated into the Gram
Panchayat Development Plan.
 The broad aims of VPRP are to bring social, economic, livelihood and
environmental developments in villages and reduction of rural
poverty.

11.6 KEYWORDS
BPL : Below Poverty Line.
DAY-NRLM : Deendayal Antyodaya Yojana-National Rural
Livelihoods Mission.
DDM : District Development Managers.
DSR : Development Status Report.
GP : Gram Panchayat.
GPDP : Gram Panchayat Development Plan.
GPPFT : Gram Panchayat Planning Facilitation Team.
KCC : Kisan Credit Card.
MoPR : Ministry of Panchayati Raj.
NABARD : National Bank for Agriculture and Rural Development.
NGO : Non-Governmental Organization.
PPC : People's Plan Campaign. 243
Rural Development PPID : Pilot Project for Integrated Development.
PRA : Participatory Rural Appraisal.
PRI : Panchayati Raj Institution.
VDC : Village Development Committee.
VDP : Village Development Plan.
VPRD : Village Poverty Reduction Plan.

11.7 SUGGESTED FURTHER

READINGS/REFERENCES
1. Guidelines for Preparation of Gram Panchayat Development Plan (2018),
Ministry of Panchayati Raj, Government of India.
2. Village Poverty Reduction Plan Handbook (2020), Ministry of Rural
Development, Government of India.

11.8 ANSWERS TO CHECK YOUR PROGRESS

Check Your Progress 11.1
1. The main objective of a village development plan is to develop the
selected village in an integrated manner. This would include economic
development, infrastructure development, and other aspects of human
development.
2. The preparation of VDP is done in two phases. The PRA exercise will
precede the plan preparation. It shall cover two types of information
namely the basic information (such as gender-wise population, literacy
level, land use pattern, major crops grown, etc.) and the information
regarding the existing situation (such as transportation and
communication facilities, institutional support, bank credit, etc.).
Check Your Progress 11.2
1. The Gram Panchayats are required to prepare GPDPs to ensure maximum
participation of local beneficiaries, optimal utilization of resources, and
significant developmental benefits for their villages. The GPPFT created
under the chairmanship of the Panchayat President facilitates all the steps
of the planning exercise right from the environment creation to the
approval of the GPDP, its implementation, and monitoring.
2. While implementing GPDP the GP may consider various resources
namely (1) Social resources (2) Natural resources (3) Human resources
and (4) Financial resources. Panchayats are dependent on the grants
received from Finance Commissions, Centrally Sponsored Schemes, and
State Governments. However, for an empowered GP, adequate generation
of Own Source Revenue (OSR) is critical. The GPs should mobilize at
least 10% to 20% of the resources locally.
244