India 50 Years of Independence: 1947-97 Status, Growth & Development (Rural Development)

Rural Development in the Indian context assumes special significance for more than one reason. Heavy investments have been made in this sector in the past, but the returns are not commensurate with such investments. Attempts have been made to bring about technological and institutional changes in the agricultural sector. But, the results are not encouraging for various reasons. Rural industrialisation too has not picked up to the extent expected. Even the special schemes meant for the rural poor have been implemented in a perfunctory manner. They suffered from high incidence of leakages because of the prevalence of wide-spread corruption. These schemes should be effectively implemented so as to strengthen the regional economy. The rural poor require institutional support to cross the poverty line. Therefore, the panchayati raj institutions need to be strengthened. The inputs and services provided by institutions like banks should be properly and productively used by the weaker sections. A purely bureaucratic approach to rural development may fail to deliver the goods. Hence, the role of voluntary agencies and self-help groups should be recognised. The rural poor should acquire skills to properly manage their resources.

I. Satya Sundaram (b. 1946) is a prolific freelance writer, author, and reviewer. His area of specialisation is rural development. But, he has contributed hundreds of articles on contemporary economic, educational and social issues to reputed newspapers and journals. Dr. Sundaram is an economist having thorough insight into the complex rural problems. His major works include: Anti-Poverty Rural Development in India, Voluntary Agencies and Rural Development, National Wage Policy, and Rural Development: A Text Book for University and College Students. He also edited Growth of Agriculture and Rural Development in India and Rural Poverty and Area Planning. He is the winner of Telugu Academy Prize for his book Integrated Rural on Development (In Telugu). Besides guiding research, Dr. Sundaram currently teaches in the Post-Graduate Department of Economics, The Hindu College, Machilipatnam, Andhra Pradesh.

This book, being brought out on the occasion of fifty years of India's independence, seeks to highlight the changes and challenges in the rural sector which assumes special significance for the simple reason that nearly 75 per cent of the country's population still lives in villages. About 35 per cent of rural population suffers from poverty. Rural development in the Indian context is no easy task. There are serious constraints on rural development. In rural India, even basic amenities are inadequate. The rural power structure is unfavourable for the poor. As such, the benefits of rural schemes are not reaching the rural poor to the extent expected. There is high incidence of leakages thanks to the prevalence of widespread corruption. We have not yet strengthened rural development administration. One difficulty with rural development is that the rural poor require not one, but a few inputs and services. These have to be provided at the right time and in the right sequence. No attempt has been made to ensure this while there has been a proliferation of rural schemes. When too many schemes are implemented, coordination becomes an uphill task. Instead of effectively implementing the existing schemes, new schemes are introduced more for political reason than for any other reason. This tendency should be given up. An important feature of India's rural development has been the implementation of special schemes for the rural poor. As benefits of development do not reach the poor automatically. it was thought that the rural poor require special schemes. However, these schemes have been implemented in a the perfunctory manner. As they have been implemented in isolation, they failed to strengthen the regional economy. All the special schemes should form an integral part of area planning so that the regional economy would be strengthened and the poor derive benefits on a lasting basis. In a densely populated Third World country like India, agriculture assumes special significance as an instrument to reduce poverty and unemployment. Experts say that the country requires a new phase of green revolution to boost agricultural productivity and production. Crucial inputs like irrigation, fertilisers and credit need to be properly managed. Radical measures like land reforms have remained on paper for want of political will. These have to be taken up more seriously in the coming years in order to alter the rural power structure which is at present very unfavourable for the weaker sections. The green revolution alone cannot solve the problems of poverty and unemployment in rural areas. The solution actually lies in speeding up the process of rural industrialisation. The approach so far adopted to bring about rapid rural industrialisation has not been successful. The rural industrialisation programme should be area-oriented. Credit is an important input for the rural poor. The banking sector has expanded significantly. Provision of institutional credit is no problem if repayment of loans is done promptly. The problem of overdues has crippled the capacity of the banking sector to meet the credit needs of the rural poor. The situation worsened because of political interference. Given the poor bargaining power, the rural poor can derive due benefits from development programmes only when they obtain institutional support. The Panchayati Raj institutions should therefore be strengthened. They should become the main conduits to take up both development and welfare activities. In a vast field like rural development, government efforts are inadequate to bring about radical changes. The non bureaucratic approach to rural development should be encouraged. The voluntary agencies and self-help groups do have an important role to play in making the rural poor self-reliant. The ultimate objective of rural development is to enable the rural poor to rely on their own resources. External help is necessary in the initial stages, but the poor should acquire the necessary skills to lead a decent life independently.

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