CHAPTER-VI POVERTY ALLEVIATION AND RURAL DEVELOPMENT PROGRAMMES IN INDIA A BRIEF REVIEW

Transcription

1 CHAPTER-VI POVERTY ALLEVIATION AND RURAL DEVELOPMENT PROGRAMMES IN INDIA A BRIEF REVIEW

2 143 Poverty Alleviation and Rural Development Programmes in India-A Brief Review "If a free society cannot help the many who are poor, it cannot save the few who are rich". - John F Kenned 1 "The greatest evils and the worst of crimes is poverty; our first duty, a duty to which every other consideration should be sacrificed, is not to be poor". - George Bernard Shaw 2 6.1: Introduction India, the second most populous country in the world, despite experiencing population explosion during the second half of the twentieth century, has been able to bring down the growth rate of population, reduce the proportion of population below poverty line and keep in check the percentage of population unemployed. It is fairly a good achievement when we look at the problem-solution situation in terms of proportion of population. But, India with a huge population base faces a brink state of affairs when one looks at these tribulations in terms of absolute number of people suffering. The population, poverty and unemployment situation in India vis-à-vis the attempts made by the Governments and individuals to address these problems in the country are briefly discussed in this chapter. 6.2: Population Scenario in India Indian population, which was around 238 million in 1901 grew to about 1210 million in 2011 at more than fivefold increase in a time span of over a century 3 (Graph 6.A). The population growth rate picked up enormously in the second half of the twentieth century experiencing population explosion, with three fold increase in the population from 361 million to 1,029 million in five decades (Graph 6.B). The growth rate peaked during the decade (an average of 2.48 per cent per annum). This exerted a tremendous pressure on the resources which were already stretched to the limits. Though the decadal population growth rate has been showing a declining trend (from per cent during to per cent during and falling below 20 per cent during the first decade of the new millennium), increase in absolute number of people being added to the total population, every year, is still agonizing because of the sheer population base of the country. 1 retrieved on retrieved on The World Bank (2011), World Development Indicators, International Bank for Reconstruction and Development, Washington DC, USA, pp. 44.

3 144 Graph-6.A: Population Growth in India Since 1901 Source: World Development Indicators, 2011, pp. 44 Graph-6.B: Percentage Decadal Growth Rates of Population in India ( to ) Source: World Development Indicators, 2011, pp : State-wise Population in India Uttar Pradesh is the most populous state in the country with a population of around 200 million, nearly equal to the population of Brazil. It is followed by Maharashtra (112 million), Bihar (105 million), West Bengal (91 million), Andhra Pradesh (85 million) and Madhya Pradesh (73 million) in that order. Sikkim (state)

4 145 and Lakshadweep (Union Territory) are the regions with the least populous areas having 6 lakhs and 64 thousand inhabitants in them respectively. Population in each state of the country exceeds the total population of most of the nations in other continents. While twenty States and Union Territories have crossed a population mark of 10 million, five States and Union Territories are yet to reach one million mark (Map-6.I). Map-6.I: State and Union Territory-wise Population in India (2011) Source: World Development Indicators, 2011, pp. 37

5 146 Map-6.II: State and Union Territory-wise Growth of Population in India ( ) Source: World Development Indicators, 2011, pp. 42

6 147 Map-6.III: State and Union Territory-wise Growth of Population in India ( ) Source: World Development Indicators, 2011, pp. 43 The population of India, as per the Census 2011, was 1,028 million, an increase of 181 million, in absolute terms, during the decade This absolute addition to the population was slightly lower than the population of Brazil, the fifth most populous country in the world. India, accounting for only 2.4 per cent of world s surface area of million square kilometers, is home to world s 17.5 per cent of the population and stands next to Bangladesh in population density, among the top 10 populous countries. In comparison, United States, the third most populous

7 148 country in the world, possesses 7.2 per cent of world s surface area, but accounts for only 4.5 per cent of the world s population 4. As per the estimations of United Nations, annual growth rate of world population during the decade was 1.23 per cent. During the same period, population in USA grew at the rate of 0.7 per cent per annum and in China at the rate of 0.53 per cent per annum. In contrast, India s annual population growth rate for the decade was At this rate, India is likely to lead the world in size of population by Eight states in the country, namely, Rajasthan, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Madhya Pradesh, Chattisgarh and Orissa are popularly referred to as the eight Empowered Action Group (EAG) States. These eight states are home for about 45 per cent of the country s population. From the Maps 6.I and 6.II, it can be observed that the population growth rates declined in EAG States in decade compared to decade. The magnitude of this decline was to the tune of 7 percentage points in Rajasthan (from 28.4 to 21.4 per cent), 5.8 percentage points in Uttar Pradesh (from 25.9 to 20.1 per cent), 1.2 percentage points in Uttarakhand (from 20.4 to 19.2 per cent), 3.5 percentage points in Bihar (from 28.6 to 25.1 per cent), 1.1 percentage points in Jharkhand (from 23.4 to 22.3 per cent), 4 percentage points in Madhya Pradesh (from 24.3 to 20.3 per cent) and 2.3 percentage points in Orissa (from 16.3 to 14.0 per cent), with the exception of Chattisgarh (from 18.3 to 22.6 per cent) where an increase in the growth rate by 4.3 per cent was observed. Overall the fall in population growth rate was by about four percentage points. This, together with similar decline in non-eag States and Union Territories, lowered rate of growth for the century by around 3.9 per cent, a healthy sign for the economy. It might be an indication that the country has reached a point of inflection. 4 The World Bank (2011), World Development Indicators, International Bank for Reconstruction and Development, Washington DC, USA, pp. 44.

8 : Growth of Population, GDP and Food Grain Production in India: to A comparison of decadal growth of population with Gross Domestic Product at factor cost at constant prices and food grain production helps to comprehend if the country s economic development and food grain production have been able to cope up with its escalating population, since population variables are both determinants and consequences of development process. From Table 6.1 and Graph 6.C it can be seen that, during the decade the GDP grew annually by more than 14.1 per cent, while the food grain production showed an annual growth rate of 1.09 per cent. However, the country s average annual growth rate at 1.76 per cent was higher than that of food grain production 2. These facts indicate that economy has to make every effort to enhance growth rate of food production to keep pace with population growth. Graph-6.C: Growth of Population, GDP and Food grains Production in India ( to ) Source: World Development Indicators, 2011, p. 60

9 150 Table-6.1: Growth of Population, GDP and Food Grains Production in India ( to ) Year Population (millions) GDP at factor cost (at constant prices in Rs. Crores) Food grain production (million tonnes) ,24, ,29, ,74, ,41, ,83, , ,64, , ,93, Source: World Development Indicators, 2011, p : Rural Poverty in India India, the second most populous country in the world, is home to 17 per cent of the global population. Despite its impressive economic performance in the recent years, poverty has remained a cause of great concern in the country. The Central as well as the State Governments have been making relentless efforts to address this issue through a number of employment generation and rural development programmes. As a result, the percentage of rural people living below poverty line (BPL) has halved, from per cent in 1973 to per cent in But, in absolute terms, 216 million persons living BPL is still a source of anxiety for the economy (Table 6.2). Table-6.2: Rural Poverty in India: Sl. No. Years Total Population (in crores) No. of Persons Below Poverty Line (in crores) People Below Poverty Line (in %) Source: Government of India (2008), Poverty Eradication in India by 2015 Rural Household Centred Strategy, Ministry of Rural Development, New Delhi, pp Plan-panel.html, pp. 1

10 151 Map-6.IV shows that in , the States of Uttarakhand, Madhya Pradesh, Assam, Odisha, Bihar, Arunachal Pradesh, Manipur, Jharkhand and Chattisgarh had Poverty Head Count Ratio (PHCR) above the national level estimate of 21.9 per cent and the remaining 21 states and UTs have PHCR below the national level estimate. Map-6.IV: Poverty Head Count Ratio: State and Union Territory-wise status in India ( ) Source: Millennium Development Goals India Country Report 2014 Note: Figures in parentheses indicate the number of States/UTs in each category

11 : Status of Unemployment in India The Labour Force Participation Rate (LFPR), under the Usual Principal Status (UPS) approach is estimated, by the Labour Bureau, GOI, to be 52.9 per cent at All India level and in rural sector it is 54.8 per cent as compared to 47.2 per cent in the urban sector. However, because of the seasonal nature of agriculture and more than two-thirds of the cultivated area in the country being rain-fed with only one crop per year, the rural workers, with hiring out their labour as the main source of income, are either unemployed or have disguised unemployment or are heavily under employed. This leads to low income - low consumption low savings - lack of skills - low productivity kind of poverty cycle. Table-6.3: The Unemployment Rates in India: Approach* Rural Urban Rural + Urban UPS UPSS CDS CWS Source: Report on Second Annual Employment and Unemployment Survey, by Ministry of Labour & Employment, Government of India * Four labour force estimation approaches followed by the Labour Bureau, GOI are UPS (Usual Principal Status) approach, UPSS (Usual Principal and subsidiary Status) approach, CDS (Current Daily Status) approach and CWS (Current Weekly Status) approach. The Labour Bureau, Government of India has estimated the rural unemployment to be 3.4 per cent and urban employment to be 5.0 per cent during the reference period (Table 6.3). Though the rural unemployment rate appears to be lower, underemployment and disguised unemployment are the major predicament faced by the rural labour force in India that pushes them in to poverty and reduces their marginal productivity.

12 153 Table-6.4: Per 1000 Distribution of Unemployed Rural Persons by Social Groups According to Different Approaches: Approach Scheduled Scheduled Other Backward General Castes Tribes Classes Category Overall UPS UPSS CDS CWS Source: Report on Second Annual Employment and Unemployment Survey, by Ministry of Labour & Employment, Government of India * Four labour force estimation approache followed are UPS (Usual Principal Status) approach, UPSS (Usual Principal and subsidiary Status) approach, CDS (Current Daily Status) approach and CWS (Current Weekly Status) approach. The Second Annual Employment and Unemployment Survey, conducted by Labour Bureau of GOI has thrown up a few surprises. It is generally believed that the socially disadvantaged groups, namely, Scheduled Castes, Scheduled Tribes and Other Backward Classes have low participation in labour force and may be having higher unemployment rate. Contrary to this general belief, as depicted in Table 6.4, distribution of unemployed persons per 1000 population is the highest among general category under UPS,UPSS and CDS approaches and in CWS approach it is much lower and distributed alike among labour force belonging to SC, ST and OBC categories. The UPS rates of participation in labour force for the SC, ST and OBC groups are 55.9 per cent, 59.7 per cent and 53.3 per cent as against 48.5 per cent for the General category : Government Initiative to Eradicate Poverty from India The Ministry of Rural Development has been according top priority to allround development of the rural areas, and there by eradication of poverty and hunger from rural India, in conformity with national planning. The ministry has taken a number of initiatives to build physical, economic and social infrastructure in rural areas to bridge rural-urban gap and fulfill basic needs, ensure food as well as livelihood security to rural populace. A glossary of all the development and employment programmes in India is presented below in Table 6.5, followed by a brief review of some important and relevant programmes. 5 Government of India, (2012), Report on Second Annual Employment and Unemployment Survey ( ), Labour Bureau, Ministry of Labour and Employment, Chandigarh, pp. iv.

13 154 Table-6.5: Rural Development and Employment Programmes Implemented in India after Independence Plan Sl. Period No. Programme/Plan/Institution I 1 Community Development Programme (CDP) II 2 Hill Area Development Programme (HADP) 3 Intensive Agriculture District Programme (IADP) III 4 Tribal Area Development Programme (TADP) 5 Intensive Agriculture Area Programme (IAAP) Annual Plans 6 Credit Authorisation Scheme (CAS) Year of Objective / Description beginning 1952 For overall development of rural areas with people s participation 1960 For overall development of mountainous regions To increase agricultural production through adoption of package of improved practices 1962 For overall development of the tribal communities To boost food grain production through intensive development of scientific and progressive agriculture November A scheme of Qualitative Credit 1965 Control by Reserve Bank of India 7 Wells Cinstruction Scheme 1966 Promoting ground water irrigation 8 High Yielding Variety Programme (HYVP) To increase productivity of food grain crops by adopting latest varieties of inputs of crops 9 Green Revolution To increase the food grains, especially wheat and rice, production 10 Nationalization of 14 Banks July 1969 To provide loans for agriculture, rural development and other priority sectors IV 11 Pilot Intensive Rural Employment Projects (PIREP) 12 Employment Guarantee Scheme (EGS) 13 Scheme of Differential Interest Rate IV 14 Employment Guarantee Scheme of Maharashtra 15 Accelerated Rural Water Supply Programme (ARWSP) 16 Drought-Prone Area Programme (DPAP) 17 Crash Scheme for Rural Employment (CSRE) 18 Marginal Farmer and Agriculture Labour Development Agency (MFAL) 1972 For generation of rural employment 1972 For providing gainful employment to unemployed April 1972 To provide loan to the weaker sections of the society at a concessional interest rate of 4 per cent To assist the economically weaker sections of the rural society For providing drinking water in the villages 1973 To try a means for protection from drought by achieving environmental balance and by developing the ground water For rural employment generation For technical and financial assistance to marginal and small farmers and agricultural labourers

14 155 V Annual Plans Annual Plans Annual Plans 19 Minimum Needs Programme (MNP) 1974 For social and economic development of underprivileged population 20 Small Farmer Development Agency (SFDA) For technical and financial assistance to small farmers 21 Command Area Development Programme (CADP) To ensure better and rapid utilization of irrigation capacities of medium and large projects 22 Twenty Point Programme (TPP) 1975 For poverty eradication and 23 National Institution of Rural Development 24 Desert Development Programme (DDP) raising the standard of living 1977 To serve as training, investigation and advisory organization for rural development For controlling the desert expansion and maintaining environmental balance 25 Food for work programme For providing food grains to labourers for the works of development 26 Antyodaya Yojana To make the poorest families of the villages economically independent (in Rajasthan State) 27 Comprehensive Area Development Programme 28 Training Rural Youth for Self- Employment (TRYSEM) 29 Whole Village Development Programme (WVDP) 30 National Rural Employment Programme (NREP) VI 31 Integrated Rural Development Programme (IRDP) 32 Development of Women and Children in Rural Areas (DWCRA) 33 Rural Landless Employment Guarantee Programme (RLEGP) 34 Self-Employment to the Educated Unemployed Youth (SEEUY) 35. Farmer Agriculture Service Centre s ((FASC s) 36 National Fund for Rural Development (NFRD) 1978 For overall development of selected areas Aug.15, To train rural youth for selfemployment For building the development programme around the community as a whole 1980 To provide profitable employment opportunities to the rural poor Oct 2, 1980 Sep Aug 15, 1983 For all-round development of the rural poor through a programme of asset endowment for selfemployment To provide suitable opportunities of self-employment to the women belonging to the rural families who are living below the poverty line For providing employment to poor farmers and landless labourers To provide financial and technical assistance for selfemployment To popularize the use of improved agricultural instruments and tool kits Feb 1984 To grant 100 per cent tax rebate to donors and also to provide financial assistance for rural development projects

15 156 VII 37 Comprehensive Crop Insurance Scheme Apr 1, 1985 For insurance of agricultural crops 38 Special Food grains Production 1986 To boost pulses production Programme (SFPP) 39 Special Rice Production 1986 To increase rice production Programme (SRPP) 40 Forest Farming For Rural Poor (FFRP) 1986 For providing an alternative to shifting cultivation 41 Indira Awas Yojana (IAY) 1986 For providing housing for rural poor 42 Council for Advancement of People s Action and Rural Sep1, 1986 To provide assistance for rural prosperity Technology (CAPART) 43 Service Area Approach (SAA) Feb 1988 A new credit policy for rural areas 44 Million Wells Scheme 1989 To provide open irrigation wells, free of cost, to individual, poor, small and marginal farmers belonging to Scheduled Castes/Scheduled Tribes and freed bonded labourers VII 45 Jawahar Rozgar Yojana April For providing employment to Annual Plans 46 Agriculture and Rural Debt Relief Scheme (ARDRS) 47 National Housing Bank Voluntary Deposit Scheme VIII 48 Supply of Improved Tool kits to Rural Artisans (SITRA) July Rashtriya Mahila Kosh March 30, Employment Assurance Scheme (EAS) 51 Members of Parliament Local Area Development Scheme (MPLADS) 1989 rural unemployed 1990 To waive off bank loans up to Rs.10,000 of rural artisans and weavers 1991 To utilize black money for constructing low cost housing for the poor Oct.2, 1993 Dec 23, 1993 To supply modern toolkits to rural craftsmen who are BPL To facilitate credit support to poor women for their socioeconomic up-liftment To provide employment of at least 100 days in a year to villagers To sanction Rs.1 crore per year to every Member of Parliament for various development works in their respective areas 52 District Rural Development Agency (DRDA) 1993 To provide financial assistance for rural development 53 Mahila Samridhi Yojana 2 Oct, 1993 To encourage the rural women to deposit in Post Office Saving Account 54 Group Life Insurance Scheme in Rural Areas To provide insurance facilities to rural people on low premium 55 National Social Assistance Programme 1995 To assist people living below the poverty line 56 National Old Age Pension Scheme (NOAPS) August 15, 1995 To provide pension to old people who are above the age of 65

16 National Family Benefit Scheme (NFBS) August 1995 (Now 60) who cannot fend for themselves and do not have any means of subsistence To provide a sum of Rs to a person of a below poverty line family who becomes the head of the family after the death of its primary breadwinner IX 58 Ganga Kalyan Yojana To provide financial assistance to farmers for exploring and developing ground and surface water resources 59 Bhagya Shree Bal Kalyan Policy Oct 19, Rajrajeshwari Mahila Kalyan Oct 19, Yojana Innovative Scheme for Rural Housing and Habitat Development Scheme 62 Annapurna Yojana March Swarna Jayanti Gram Swarozgar Yojana To uplift the girls conditions To provide insurance protection to women 1999 To end shelterlessness and ensure conversion of all unserviceable kucha houses to pucca houses by the end of 11th plan period April 1999 To provide 10 kg food grains to senior citizens who do not get pension For eliminating rural poverty and unemployment and promoting self-employment 64 Jawahar Gram Samridhi Yojana (JGSY) April 1999 For creation of demand driven community / village infrastructure 65 Samagra Awas Yojana For providing shelter, sanitation 66 Pradhan Mantri Gramodaya Yojana 67 Jan Shree Bima Yojana Aug 10, Antyodaya Anna Yojana (AAY) December 2000 and drinking water 2000 To fulfill basic requirements in rural areas For providing Insurance Security to people living below poverty line To benefit the poorest of the poor in the country by providing them 35 Kgs of food grains per family per Rs. 2 per Kg of wheat and Rs. 3 per Kg of rice. 69 Pradhan Mantri Gram Sadak Yojana (PMGSY) Dec 25, 2000 To line all villages with pacca road 70 Khetihar Mazdoor Bima Yojana 2001 For insurance for Landless Agricultural Workers 71 Ashraya Bima Yojana June 2001 To provide compensation to labourers who have lost their IX 72 Sampurna Gramin Rojgar Yojana Sep 25, Shiksha Sahyog Yojana December 31, 2001 employment For providing additional wage employment and food security, alongside creation of durable community assets in rural areas. For education of Children Below Poverty Line

17 158 X 74 Jai Prakash Narain Rojgar Gurantee Yojana Proposed in budget 75 Vande Matram Scheme Feb 9, National Food for Work Programme Nov 14, Janani Suraksha Yojana April 12, Bharat Nirman Programme Dec 16, 2005 For employment Guarantee in most poor districts As a major initiative in publicprivate partnership during pregnancy check-up To intensify the generation of supplementary wage employment For providing care to expectant mothers For development of Rural Infrastructure including six components: Irrigation, water supply, Housing, Road, Telephone and Electricity 79 National Rural Employment Guarantee Scheme Feb 2, 2006 To provide at least 100 days wage employment in rural areas 80 Aam Aadmi Bima Yojana 2007 For (posthumously awarded) death and disability insurance for rural landless households XI 81 Rashtriya Krishi Vikas Yojana August 1, Rashtriya Swasthya Bima Yojana April 1, Prime Minister s Employment Generation Programme (PMEGP) XI 84 Indira Gandhi National Widow Pension Scheme (IGNWPS) 85 Indira Gandhi National Disabled Pension Scheme (IGNDPS) 86 National Family Benefit Scheme (NFBS) 87 Indira Gandhi Matritva Sahayog Yojana 88 Pradhan Mantri Adarsh Gram Yojana 89 National Rural Livelihood Mission (NRLM) To achieve 4 per cent annual growth in agriculture through development of Agriculture and its allied sectors during the XI Plan period Health insurance for poor (BPL), Domestic workers, MGNERGA workers, Rikshaw pullers, Building and other construction workers, and many other categories as may be identified by the respective states A credit-linked subsidy programme for creation of employment in both rural and urban areas of the country. February 2009 For BPL widows 2009 BPL persons with multiple and severe disabilities in the age group of 18 to 64 years eligible for a grant of Rs 200 per month A grant of Rs in case of death due to natural cause and Rs in case of accidental death of primary bread winner was provided to bereaved household 2010 A cash incentive of Rs. 4,000 to women (19 years and above) for the first two live births 2010 For integrated development of Schedule Caste majority villages in four states June 2011 To organize rural poor into SHG groups and make them capable for self-employment and thereby to develop better livelihood options for the poor

18 159 XII 90 National Food Security Act August 2013 Since 2014 Since Pradhan Mantri Jan Dhan Yojana August Saansad Adarsh Gram Yojana October Micro Units Development and Refinance Agency Ltd. (MUDRA) Bank 94 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) 95 Pradhan Mantri Suraksha Bima Yojana (PMSBY) April 2015 May 2015 To provide subsidized food grains to approximately two thirds of India s 1.2 billion people A financial inclusion programme, where in any one can open new bank account with zero balance too and the account holders are given insurance coverage up to Rs. 1,00,000 Each MP takes the responsibility of developing three villages (with physical and institutional infrastructure) by 2019 To facilitate all the individuals, especially those living in rural and interior parts of India to get the benefits of formal banking system and establish and grow their micro business. A term life insurance policy that can be renewed either on a yearly basis or for a longer period of time and provides coverage on the death of policy holder who is in the age group of 18 to 50 years. May 2015 An accidental death and disability insurance scheme, especially for the rural people. 96 Atal Pension Yojana June 2015 To bring pension benefits to allow people of the unorganized sector to enjoy social security with minimum contribution per month. Source: i) Pratiyogita Darpan, General Studies on Indian Economy (2010) ii) retrieved on iii). sion_scheme_.28noaps.29 retrieved on iv) retrieved on v) retrieved on : Plan-wise Developmental Programmes by Government of India for Reduction of Poverty and Unemployment 6 & (i): First Five-Year Plan ( ): India was essentially an agrarian economy providing livelihood to more than 70 per cent of the workforce and contributing more than 50 per cent of the GDP on the eve of launching the first five-year plan. Focus of this plan included investments on dams and irrigation works, land reclamation, promotion of animal husbandry within the ambit of agriculture, and revival of rural

19 160 industries. It aimed at increasing the supply of goods and services and improving the standard of living of people with the utilization of available labour force. In order to achieve the target set for rural development an ambitious programme, Community Development Programme (CDP) was launched in 1952 intending for overall development of rural areas with people s participation. 6.8 (ii): Second Five-Year Plan ( ): It was contemplated that providing employment opportunities outside agriculture would go a long way in addressing the problem of underemployment in the primary sector and hence the focus was laid on promotion of non-agricultural activities. But, in spite of conceiving and executing a number of public works programmes during the off season to generate employment on the one hand and creating and strengthening capital stocks in the rural areas on the other hand, magnitude of unemployment continued unabated. However, the government tried to address this issue by way of maximizing the use of labour force through proper mobilization of the existing resources at minimum social cost. Hill Area Development Programme (HADP) for overall development of mountainous regions and Intensive Agriculture District Programme (IADP) aimed at increasing agricultural production through adoption of package of improved practices were the two major programmes implemented during this plan period. 6.8 (iii): Third Five-Year Plan ( ): The primary objectives of this plan were achieving a national income growth rate of more than 5 per cent and attaining selfsufficiency in food grains production by mid 1960s. It targeted to generate employment for 3.5 million people in agriculture sector and 10.5 million aspirants in non-agriculture sector. Some studies showed that underemployment ailing the economy was to the tune of around 20 million people (George, P. T. and Raju, K.N. (1980) Rural Employment, Review of policies and programmes. National Institute of Rural Development, Hyderabad, p.60). Generation of employment, promotion of rural industries and effective use of rural works programmes were the three pronged components of the development strategy. In order to promote rural industries, rural electrification was also prioritized. Unfortunately, high population growth rate acted as a bottleneck in ameliorating underemployment problem in rural areas. Tribal Area Development Programme (TADP) aiming at overall development of the tribal communities and Intensive Agriculture Area Programme (IAAP) to boost food grain production through intensive development of scientific and progressive agriculture,

20 161 Credit Authorisation Scheme (CAS) by RBI for qualitative credit control, Wells Construction Scheme for promoting ground water irrigation were the important development programmes started during that plan period. 6.8 (iv): Annual Plans ( ): Three annual plans during this period witnessed launching major development programmes which transformed the country from being a food aid seeking economy to a self-sufficient food producer, in the coming years, including High Yielding Development Programme (HYVP) that laid the foundation for Green Revolution were launched during the annual plans period. Nationalization of 14 major banks to extend loans for agriculture, rural development and other priority sectors was also done during this period. 6.8 (v): Fourth Five-Year Plan ( ): A strategy to directly attack poverty through target approach was the novel concept conceived during this plan. The Government reiterated its commitment to create gainful employment on a large scale and thereby paved the way for rapid strides in agriculture development. Several wage employment programmes were implemented in rural areas in order to improve the asset base of rural poor and involve them in the process of production and income generation. The Government also pondered over shifting the investment pattern from urban to rural areas, capital-intensive to labour-intensive sectors in line with wage- Good model. The major thrust given for poverty alleviation in terms of development programmes and policies included Pilot Intensive Rural Employment Projects (PIREP) for generation of rural employment, Employment Guarantee Scheme (EGS) for providing gainful employment to unemployed, Scheme of Differential Interest Rate (DIR) to provide loan to the weaker sections of the society at a concessional interest rate of 4 per cent, Employment Guarantee Scheme of Maharashtra (EGSM) to assist the economically weaker sections of the rural society, Accelerated Rural Water Supply Programme (ARWSP) for providing drinking water in the villages, Drought- Prone Area Programme (DPAP) to provide protection against drought by achieving environmental balance and by developing the ground water irrigation, Crash Scheme for Rural Employment (CSRE) for rural employment generation and Marginal Farmer and Agriculture Labour Development Agency (MFAL) for providing technical and financial assistance to marginal and small farmers and agricultural labourers.

21 (vi): Fifth Five-Year Plan ( ): The main objective under this plan was creation of employment opportunities on a large scale in agriculture and allied sectors, which were more diversified and dispersed in nature. The initiative behind this effort was that technological breakthroughs in the agricultural sector would enhance the potential for intensive agriculture which extends the scope for accommodating burgeoning labour force in that sector. The major development pogrammes initiated during this plan period were Minimum Needs Programme (MNP) for social and economic development of underprivileged people, Small Farmer Development Agency (SFDA) for technical and financial assistance to small farmers, Command Area Development Programme (CADP) to ensure better and rapid utilization of irrigation capacities of medium and large projects, Twenty Point Programme (TPP) for poverty eradication and raising the standard of living, establishment of National Institution of Rural Development (NIRD) to serve as training, investigation and advisory organization for rural development, Desert Development Programme (DDP) for controlling the desert expansion and maintaining environmental balance, Food for work programme (FWP) for providing food grains to labourers for the works of development, Antyodaya Yojana to make the poorest families of the villages economically independent (in Rajasthan State) and Comprehensive Area Development Programme for overall development of selected areas. 6.8 (vii): Annual Plans ( ): A couple of major rural development programmes initiated during this interim period included Training Rural Youth for Self- Employment (TRYSEM) and Whole Village Development Programme (WVDP) for building the development programme around the community as a whole. 6.8 (viii): Sixth Five-Year Plan ( ): The Government faced the challenge of growth rate of labour force exceeding growth rates of population and employment. It was expected that around 108 million new job seekers would enter the labour market during this plan period. Agriculture, rural development, village and small-scale industries and construction sectors were identified to generate additional employment, of which agriculture and allied activities sector alone was expected to generate half of this projected employment. Employment policy envisaged for this period hovered around reduction in open unemployment and underemployment by increasing the rate of growth in gainful employment. Seeds of economic liberalization were sown during

22 163 this plan period. A policy of doing away with price controls and ration shops led to increase in food prices and a raise in cost of living as a consequence. Rural development and poverty alleviation programmes initiated during this period included Integrated Rural Development Programme (IRDP) envisioned to be an umbrella programme comprising of various special programmes for all-round development of the rural poor through a programme of asset endowment for self-employment which were expected to generate capacious employment, Development of Women and Children in Rural Areas (DWCRA) to provide suitable opportunities of selfemployment to the women belonging to the rural families who are living below the poverty line, Rural Landless Employment Guarantee Programme (RLEGP) for providing employment to poor farmers and landless labourers, Self-Employment to the Educated Unemployed Youth (SEEUY) to provide financial and technical assistance for self-employment, establishment of Farmer Agriculture Service Centres ((FASCs) to popularize the use of improved agricultural instruments and tool kits and creation of National Fund for Rural Development (NFRD) to grant 100 per cent tax rebate to donors for rural development projects and also to provide financial assistance for such projects. 6.8 (ix): Seventh Five-Year Plan ( ): The planners looked ahead to an increase in country s labour force by 39 million employment aspirants, while the rate of growth in employment was pegged at 4 per cent per annum. Employment strategy unfurled in the plan documents emphasized increased cropping intensity, diffusion of improved technologies in rain-fed and low productive regions, promotion of labourintensive infrastructure development and so on. The plan also earmarked 20 per cent of fund allocation for social forestry and 10 per cent for works directly benefiting Sc and ST workers in backward areas with predominant proportion of unemployed and landless labourers. Ambitious programmes implemented during this plan period included Comprehensive Crop Insurance Scheme (CCIS) as a risk mitigation mechanism for farmers exposed to brutal weather uncertainties, Special Food grains Production Programme (SFPP) to increase rice production, Forest Farming For Rural Poor (FFRP) for providing an alternative to shifting cultivation, Indira Awas Yojana (IAY) to provide housing for rural poor, instituting Council for Advancement of People s Action and Rural Technology (CAPART) to provide assistance for achieving rural prosperity, Service Area Approach (SAA) as a new credit policy for expanding

23 164 loan base and ease lending in rural areas, Million Wells Scheme (MWS) to provide open irrigation wells, free of cost, to individual, poor, small and marginal farmers belonging to Scheduled Castes/Scheduled Tribes and freed bonded labourers and Jawahar Rozgar Yojana (JRY) to mitigate the problem of seasonal unemployment. 6.8 (x): Annual Plans ( ): The efforts by the Government to tackle rural misery continued during this interim period. Agriculture and Rural Debt Relief Scheme (ARDRS) to waive off bank loans up to Rs.10,000 of rural artisans and weavers and National Housing Bank Voluntary Deposit Scheme to utilize black money for constructing low cost housing for the poor were the two major state initiatives of this regime. 6.8 (xi): Eighth Five-Year Plan ( ): The plan envisioned deceleration in population growth rate, improvement in employment opportunities and reduction in poverty. Focus of employment generation strategy was shifted from providing employment of relief type to that aimed at building durable productive assets. Employment generation to the tune of 10 million person days per annum was planned. JRY was restructured for this purpose. The planners tried to break the nexus between unemployment, poverty and economic hardships by planning and executing various programmes that included Supply of Improved Tool kits to Rural Artisans (SITRA) to supply modern toolkits to rural craftsmen who are below poverty line (BPL), establishment of Rashtriya Mahila Kosh (RMK) to facilitate credit support to poor women for their socio-economic up-liftment, Employment Assurance Scheme (EAS) to provide employment of at least 100 days in a year to villagers, Members of Parliament Local Area Development Scheme (MPLADS) to sanction Rs.1 crore per year to every Member of Parliament for various development works in their respective constituencies, establishment of District Rural Development Agency (DRDA) to provide financial assistance for rural development, Mahila Samridhi Yojana (MSY) to encourage the rural women to deposit in Post Office Savings Account, Group Life Insurance Scheme in Rural Areas (GLISRA) to provide insurance facilities to rural people at low premiums, National Social Assistance Programme (NSAP) to provide necessary assistance to people living below the poverty line, National Old Age Pension Scheme (NOAPS) to provide pension to old people who are above the age of 65 years (now revised to 60 years) who cannot fend

24 165 for themselves and do not have any means of subsistence and National Family Benefit Scheme (NFBS) to provide a sum of Rs to a person of a below poverty line family who becomes the head of the family after the death of its primary breadwinner. 6.8 (xii): Ninth Five-Year Plan ( ): This plan aspired at fast paced industrialization, agriculture and rural development, human development and poverty reduction through full-scale employment. An attempt was made to provide basic facilities like education, safe drinking water and primary health care to all. Self reliance on domestic resources was emphasized in prioritizing agriculture and rural development activities. Programme and policy initiatives of the Government during this five-year plan included Ganga Kalyan Yojana (GKY) to provide financial assistance to farmers for exploring and developing ground and surface water resources, Bhagya Shree Bal Kalyan Policy (BSBKP) to uplift the girls conditions, Rajrajeshwari Mahila Kalyan Yojana (RMKY) to provide insurance protection to women, Innovative Scheme for Rural Housing and Habitat Development (RHHDS) to end shelterlessness and ensure conversion of all unserviceable kucha houses to pucca houses by the end of 11th plan period, Annapurna Yojana (AY) to provide 10 kgs. of food grains to senior citizens who do not get pension, Swarna Jayanti Gram Swarozgar Yojana (SGSY) for eliminating rural poverty and unemployment and promoting self-employment, Jawahar Gram Samridhi Yojana (JGSY) for creation of demand driven community/village infrastructure, Samagra Awas Yojana (SAY) for providing shelter, sanitation and drinking water, Pradhan Mantri Gramodaya Yojana (PMGY) to fulfill basic requirements in rural areas, Jan Shree Bima Yojana (JSBY) for providing Insurance Security to people living below poverty line, Antyodaya Anna Yojana (AAY) to benefit the poorest of the poor in the country by providing them 35 Kgs of food grains per family per month at the rate of Rs. 2 per Kg of wheat and Rs. 3 per Kg of rice, Pradhan Mantri Gram Sadak Yojana (PMGSY) to line all villages with pacca roads, Khetihar Mazdoor Bima Yojana (KMBY) to provide insurance facility to landless agricultural workers, Ashraya Bima Yojana (ABY) to provide compensation to labourers who have lost their employment, Sampurna Gramin Rojgar Yojana (SGRY) for providing additional wage employment and food security to people and creating durable community assets in rural areas and Shiksha Sahyog Yojana (SSY) for the education of Children Below Poverty Line. 6.8 (xiii): Tenth Five-Year Plan ( ): This plan set the target of poverty reduction by 5 percentage points by the end plan period. It also aimed at increasing

25 166 wage rates by 50 per cent by 2007 and providing gainful and high-quality employment at least to the additional job seekers. In its effort to achieve the targets the Government launched many employment generation and poverty alleviation initiatives including Jai Prakash Narain Rojgar Gurantee Yojana (JPNRGY) for providing employment Guarantee in most poor districts, Vande Matram Scheme (VMS) as a major initiative in public-private partnership during pregnancy check-up, National Food for Work Programme (NFWP) to intensify the generation of supplementary wage employment, Bharat Nirman Programme (BNP) for the development of Rural Infrastructure including six components: Irrigation, water supply, Housing, Road, Telephone and Electricity, National Rural Employment Guarantee Scheme (NREGS) to provide at least 100 days wage employment to all the rural households whose adult members are ready to do manual work and Aam Aadmi Bima Yojana (AABY) for providing (posthumously awarded) death and disability insurance for rural landless households. 6.8 (xiv): Eleventh Five-Year Plan ( ): The pushy targets set for the eleventh plan included inter alia; achieving a growth rate target of 4 per cent per annum in agricultural GDP, creation of 70 million new employment opportunities, lessening the educated unemployment level to below 5 per cent, increasing real wage rate of unskilled workers by 20 per cent and reducing the headcount ratio of consumption poverty by 10 percentage points. The Government came up with many schemes in its efforts to mitigate poverty and unemployment. Some of such programmes were Rashtriya Krishi Vikas Yojana (RKVY) to achieve 4 per cent annual growth in agriculture through development of Agriculture and its allied sectors, Rashtriya Swasthya Bima Yojana (RSBY) for providing health insurance coverage to poor (BPL), Domestic workers, MGNERGA workers, Rikshaw pullers, Building and other construction workers, and many other categories as may be identified by the respective states, Prime Minister s Employment Generation Programme (PMEGP), a credit-linked subsidy programme for creation of employment in both rural and urban areas, Indira Gandhi National Widow Pension Scheme (IGNWPS) for widows who are BPL, Indira Gandhi National Disabled Pension Scheme (IGNDPS) for BPL persons with multiple and severe disabilities in the age group of 18 to 64 years who are eligible for a grant of Rs 200 per month, National Family Benefit Scheme

26 167 (NFBS), a grant of Rs in case of death due to natural cause and Rs in case of accidental death of primary bread winner to be provided to bereaved household, Indira Gandhi Matritva Sahayog Yojana (IGMSY) for providing a cash incentive of Rs. 4,000 to women (19 years and above) for the first two live births, Pradhan Mantri Adarsh Gram Yojana (PMAGY) For integrated development of Schedule Caste majority villages in four states and National Rural Livelihood Mission (NRLM) to organize rural poor into SHG groups and make them capable for self-employment and thereby to develop better livelihood options for the poor. 6.8 (xv): Twelfth Five-Year Plan ( and then discontinued): The major poverty alleviation programmes launched in the recent years include National Food Security Act (NFSA) to provide subsidized food grains to approximately two thirds of India's 1.2 billion people. 6.8 (xvi): Since : The major programmes launched by the Central Government to provide social and financial security to the rural people are Pradhan Mantri Jan Dhan Yojana, a financial inclusion programme which allows a person to open new bank account with zero balance too and he is given insurance coverage up to Rs. 1,00,000, Saansad Adarsh Gram Yojana, with a responsibility on each MP to develop three villages by 2019, Micro Units Development and Refinance Agency Ltd. (MUDRA) Bank to help individuals living in rural and interior parts of India to establish and develop micro business, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) to provide insurance coverage on the death of policy holder who is in the age group of 18 to 50 years, Pradhan Mantri Suraksha Bima Yojana (PMSBY), an accidental death and disability insurance scheme, especially for the rural people and Atal Pension Yojana to bring pension benefits to people of the unorganized sector. 8 retrieved on

27 : Details of some major programmes implemented in India to address 9, 10 & 11 the problems of Unemployment and Poverty 6.9 (i): Rural Landless Employment Guarantee Programme (RLEGP) The programme was launched by the Government of India on 15 th August, 1983, with an objective of creating employment, constructing the productive projects and improving the rural life. However, due to lack of resources the guarantee part of the programme could not be implemented. The total expenditure was financed by the central government. The resources were allotted to the States/Union territories on the basis of determined standards, in which 50 per cent weightage was given to the cultivators and marginal farmers on the basis of number and the rest of 50 per cent of weightage was given based on the poverty. The wages given to the workers were in accordance with the Minimum wages Act. Out of the total expenditure, 10 per cent was earmarked for SC /ST beneficiaries. This programme also allocated funds for social forestry, Millions wells Scheme and Indira Awas Yojana. The condition which needed to be satisfied as per the norms of the programme was that the total expenditure made on labour component should not be less than 50 per cent of the total expenditure and involvement of contractors was completely prohibited. Since RLEGP was merged with Jawahar Rozgar Yojana (JRY). 6.9 (ii): National Food for Work Programme (NFWP) The programme was launched on November 14, 2004 in 150 backward districts of the country identified by the planning commission in consultation with the Ministry of Rural Development and state governments. The objective of the programme was to provide additional resources apart from the resources made available through Sampoorna Grameen Rozgar Yojana to those districts. The resources were made available for generation of supplementary wage employment and to offer food security through creation of need based socio economic and community assets. It was a cent per cent centrally sponsored scheme. Later on it was subsumed under National Rural Employment Guarantee Programme since February 2 nd, Pratiyogita Darpan, General Studies on Indian Economy (2010) 10 GOI (2009) Annual Report: Ministry of Rural Development, Government of India, New Delhi. 11 MoRD (2008) Poverty Eradication in India by 2015 Rural Household Centered Strategy. Ministry of Rural Development, Government of India, New Delhi.