Business and Sustainable DevelopmentSustainable RuralDevelopment in India Presented By: Pramit Agrawal Priti Vandana Priyank Deshmukh Pulkit Bohra Pulkit Mathur Rahul Gupta Randeep Brar Ranjith
Agenda• Rural Development in India: Current State• Need for Sustainable Rural Development• Government targets for Rural Development• What Missions are running o Effect the Sustainable Rural Development• Success Of these Missions• What more Can Be Done
Rural development in India India – A country of Villages • India is a country of villages and about 50% of the villages have very poor socio-economic conditions. Since the dawn of independence, concerted efforts have been made to ameliorate the living standard of rural masses. So, rural development is an integrated concept of growth and poverty elimination and has been of paramount concern in all the consequent five year plans.
Current State of Rural India • 60% of rural population (~ 400 million) in India live in primitive conditions. No electricity and primitive cooking stoves. Around 300,000 deaths/year take place because of pollution from these stoves. • Around 260 million people (1/4thof our population) live on less than INR50/day. • Because of rural poverty large scale migration to cities takes place leading to serious urban problems. • Poverty in rural areas has resulted in suicides of a large number of farmers. In last 10 years about 150,000 farmers have committed suicide. Poor support price, increased input costs and aspirations. • „ Serious energy crisis in India. In rural areas 250 kWh/year per capita electricity consumption. This is 2% of that in US and lowest in the world.
Need for Sustainable Rural DevelopmentRising inequality a matter of concernAverage Monthly Consumption Expenditure and Total Consumption Demand All India MPCE Classes Poorest Second Third Fourth Richest Overall 20% 20% 20% 20% 20 % Avg. monthly real per capita consumption 83 112 138 173 297 161 exp. in 2004-05 (Rs.) Avg. monthly real per capita 83 117 145 183 320 169 consumption exp.2009-10 (Rs.) Change in Avg. Consumption (%) 0 4.5 5.1 5.8 7.7 5 Source: Assocham report_ Rural Development in India_Jan 2012 Increased inequalities between the richest and the poorest Despite high enrolment numbers in schools, quality of education is not proper in rural India 96.7% of all 6-14 year olds in rural India are enrolled in school Attendance in primary schools has dropped from 73.4% in 2007 to 70.9% in 2011 More than 50% students in the fifth grade can’t read at second grade level Source: Annual Status Of Education Report 2011
Need for Sustainable Rural DevelopmentRising inequality a matter of concern The Level of Inequality Across States: Gini Coefficient State 2004-05 2009-10 Change (%) J&K 15.02 22.38 7.37 MP (incl Chhattisgarh) 29.71 34.66 4.96 Bihar (incl jkhand) 24.31 29.2 4.9 Assam 18.66 21.97 3.31 Tamil 24.37 26.47 2.1 Punjab 19.05 20.88 1.83 Gujarat 22.12 23.92 1.8 HP 20.06 21.49 1.43 Kerala 21.19 22.38 1.19 UP (incl Uttarakhand) 24.64 25.26 0.62 Karnataka 26.42 26.13 -0.29 NE 19.1 18.76 -0.34 AP 25.81 25.22 -0.59 Rajasthan 20.73 19.11 -1.61 UTs 21.57 19.71 -1.86 West Bengal 24.84 22.5 -2.34 Haryana 22.54 20.18 -2.36 Maharashtra 27.5 23.65 -3.85 Orissa 36.88 31.13 -5.75 All India 26.4 27.4 1Source: Assocham report_ Rural Development in India_Jan 2012
Need for Sustainable Rural DevelopmentRising inequality a matter of concern Threat to Political Stability • High inequality threatens a country’s political stability because more people are dissatisfied with their economic status, which makes it harder to reach political consensus among population groups with higher and lower incomes. Political instability increases the risks of investing in a country and so significantly undermines its development potential. Limited use of Market Instruments • High inequality limits the use of important market instruments such as changes in prices and fines. For example, higher rates for electricity and hot water might promote energy efficiency, but in the face of serious inequality, governments introducing even slightly higher rates risk causing extreme deprivation among the poorest citizens.
Need for Sustainable Rural DevelopmentRising inequality a matter of concern Lack of Trust and Commitment • High inequality may discourage certain basic norms of behavior among economic agents (individuals or enterprises) such as trust and commitment. Higher business risks and higher costs of contract enforcement. Decreasing income inequality in countries help accelerate economic and human development
Government Targets for Rural Development • Providing livelihood opportunities to those in need including women and other vulnerable sections and food security to rural Below Poverty Line (BPL) households. • Providing for the enhancement of livelihood security of households in rural areas by providing at least 100 days of guaranteed wage employment in every financial year to every household. • Providing basic housing and homestead to BPL households in rural areas. • Provision of all-weather rural connectivity to unconnected rural habitations and upgradation of existing roads to enable them to market access. • Capacity development and training of rural development functionaries • Providing social assistance to the elderly, widow and disabled persons.
Emerging Issues In Rural Development o The Paradox The majority of the poor still live in rural areas, and support for agricultural and other rural development has slumped. o A diminishing urban-rural divide Rural and urban livelihoods are inter-dependent. Rural development strategies must take account of the urban links and context. o Diversified livelihoods Support to the non-farm rural economy and to migration are as important as agricultural support.
o Small-holder farming in less-favoured areas faces new challenges Targeted assistance is needed where small-scale farming can be competitive.o Reverse state compression: A strong state is needed to underpin the market and enable private sector development. Public interventions are needed to increase access to new opportunities (agricultural or non-farm) specifically by the poor, and to establish the institutional framework for effective market development.o Technological targeting: Technical change is biased against the poor. Policies to target technologies need to be location specific.o Rethinking institutional capacity and governance: Many recommended measures for rural development cannot be effective without significant capacity building and institutional support. In some areas, decentralisation should be promoted to reinforce positive trends for increased accountability.
Challenges Faced by Policies & Implemented By GovernmentMNREGA• Almost everyone wants more work form the scheme and better facilities at the work place• There is enough evidence of fudging and mismanagement of records.• Large number of works relating to water conservation has been taken up.• Minimum wages are still not paid in many states. Most of the states continue to pay wages based on old irrigation department norms• Delays in wage payments go against the Act but there is evidence of such delay already and needs to be done away with• The implementation of the Act has now thrown up issues of leakage and corruption and this need to be plugged by making the implementation truly decentralized and based on self selection by wage earners
SGRY Lack of Awareness about the Scheme Guidelines Construction of Community Assets Instead of Individual Asset Lack of Monitoring Lack of Reporting of the Performance of Individual Beneficiary Programs Improper Selection of Assets/WorksIn Andhra Pradesh, India • Political Interference , district authorities are not able to implement the program as per guidelines • Nellore district SGRY not implemented for the year2002-03 • Implementing authorities are not aware about the guidelines
PMGSY• Even after five years since the ambitious Pradhan Mantri Gram Sadak Yojana (PMGSY)was launched in December 2000, the achievement has been only 24 per cent of the target of connecting 1,41,085habitations.• Shortcomings in planning, fund mobilization, ineffective monitoring and operational deficiencies• The program suffered from drawbacks like unrealistic estimation and inadequate mobilization of funds
Techniques & Practices Sustainable agriculture technique• Sustainable agriculture is the ecosystem approach to agriculture• In this technique, farmers are advised to use animal and farm wastage as a manure in their fields.• Uses of biogas plants for domestic uses• This techniques helps in checking soil erosion, pesticide- free food and air pollution, which is caused by using open chullahs.• By using waste of crops reduced nutrients values of lands are retained.
Programs and Policies Bharat NirmanThis policy covers the infrastructure part of ruraldevelopment. • Water supply: - It provides safe drinking water to all 2.16 lakh villagers and promote conjunctive use water • Provides housing to homeless poor peoples. • Electricity: -To provide housing to 1.25 lakh individuals. • To provide all weather roads for better connectivity. • To cover 40% rural with telecommunication services.
Swarana Jayanti Gram Swarojgar Yojna• It covers all aspects of self employment such as help groups, training, credit, technology and infrastructure.• Government subsidy allocated for SGSY per individual is 30% of the total capital investment if the total investment is less than Rs. 7,500 and 50% of the investment for SC/STs if the investment is less than Rs.10,000
MGNREGA• This scheme provides legal guarantee for 100 days employment in a financial year to a adult of any rural household.• Minimum wage is Rs 120.• Aim was to improve purchasing power of rural peoples.
Pradhan Mantri Gram Sadak Yojna• This scheme helps rural growth in providing better connectivity with cities and among villages.• It also upgrade the existing roads District Rural Development Authority• These are district level agencies through which some funds are routed for rural development.• These are extremely important at district level to facilitate funding at district level.
Corporate–To–Social Activity• Corporate Social Responsibility (CSR) have been becoming an important activity to businesses nationally and internationally.• Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.• CSR Programs could range from overall development of a community to supporting specific causes like education, environment, healthcare etc.• CSR Programs could range from overall development of a community to supporting specific causes like education, environment, healthcare etc.• Many CSR initiatives are executed by corporates in partnership with Non- governmental organizations (NGOs) who are well versed in working with the local communities and are experts in tackling specific social problems.
BPCL CSR Activity• As a corporate responsibility, BPCL has today adopted 37 villages across India. This adoption included, making substantial investments for nearly a decade and a half in them to make them fully self reliant, providing them fresh drinking water, sanitation facilities, medical facilities, enhancing their income standards by imparting vocational training and agricultural innovations.• BPCL also firmly believes that the only vehicle for raising the villagers from their present state is by educating the young and the old, a focus on providing grants for opening schools and opening adult literacy camps as well.
Major Activities • Entrepreneur development program • Agri and farm based support • Construction of • Animal driven flour mill infrastructure • Non electric irrigation system• Education support • Medical assistance• Community library • Veterinary• Adult literacy • Installation of Solar lights assistance• Vocational training • Awareness on • Ayurvedic Health center environment • Awareness on HIV/ AIDS
Maruti Suzuki CSR Activity• Community Development: Company adopted four villages around the Manesar manufacturing facility for overall development the well-being of people living in these villages.• Education: School students are given exposure to the companys manufacturing facilities by organizing plant visits. Career guidance is part of the factory visit program. Besides, the company runs two schools in Gurgaon area in collaboration with the DPS society. These schools cater to the educational needs of the children of MSIL employees and the people living in the local communities of Gurgaon
• Health Care: The areas of focus include Health Care, Education, Employability and Infrastructure. Free health camps, Eye check-up Camp are organized regularly in these villages• Vocational Training: Unemployed educated youth are identified from these villages and given vocational training at ITI Gurgaon (Being upgraded by Maruti Suzuki) and Maruti Driving School, Gurgaon. The company also facilitates their employment.• Infrastructure: The company has improved infrastructure of a Government Senior Secondary School, Kasan in 2008-09, by constructing toilets, pavements and erecting drinking water supply system.
GlaxoSmithKline CSR ActivityTribal welfare projects in Peth Taluka, Nashik, Maharashtra: • GSK India undertakes a number of Rural Development initiatives through its trust GRAMIN AAROGYA VIKAS SANSTHA (GAVS). • Tribal population in India is over 84 million. They constitute roughly 8 percent of Indias population. Most tribe community are concentrated in heavily forested areas that combine inaccessibility with limited political or economic significance. Health has been the major factor considered for the community. • GAVS contributed to development of health care centers, formal education system, connectivity by means of road and transportation. • GAVS collected primary data from 92 villages in Peth Tehsil / Block near Nashik in the year 2005. Peth is the smallest Tehsil / Block in the district; it occupies 3.63% of the district. The tribal population in Nashik falls amongst the 10% of the total Tribal population (7.4 million) in the state of Maharashtra to identify underserved village communities • Project laid emphasis on health seeking behavior in the areas of Tobacco de- addiction, Nutrition, common illnesses with a special emphasis on different types of fevers and diseases of joints, HIV/AIDS infections, skin diseases, Tuberculosis, water- borne diseases and Respiratory Tract Infections, etc.
Yuva Parivartan GSK Livelihood Training Centres: Peth Taluka, Nashik, Maharashtra• The project is undertaken with a long term objective of imparting specialized skills and making the unemployed youths more employable / self-reliant. Training are provided in the areas of computer literacy, tailoring, beauty, wireman/ electrician, agriculture productivity, motor training, nursing assistance, etc. Nearly 2500 youths have been trained and a number of them are currently gainfully employed
OTHER INITIATIVES• Hindustan Unilever Limited also adopted villages where they focus on holistic development. They provide better medical and sanitation facilities, build schools and houses, and help the villagers become self-reliant by teaching them vocational and business skills.• SAP India in partnership with Hope Foundation, an NGO that works for the betterment of the poor and the needy throughout India, has been working on short and long term rebuilding initiatives for the tsunami victims. Together, they also started The SAP Labs Center of HOPE in Bangalore, a home for street children.
References • Ministry of Rural Development, India • Rural Development in India: State Level Experiences, The Associated Chambers of Commerce and Industry of India • Sustainable Rural Development, Nimbkar Agricultural Research Institute