Orissa Human Devlopment Report 2004


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Orissa Human Devlopment Report 2004

  1. 1. ORISSA HUMAN DEVELOPMENT REPORT 2004 P & C Department Government of Orissa 29 JULY, 2005 UN Conference Hall, New Delhi
  2. 2. <ul><ul><li>First Orissa Human Development Report (HDR) </li></ul></ul><ul><ul><ul><li>An independent assessment of human development conditions </li></ul></ul></ul><ul><ul><ul><li>A joint effort of Planning Commission, UNDP, Govt of Orissa, NCDS </li></ul></ul></ul><ul><ul><ul><li>A benchmark against which future attainments shall be judged </li></ul></ul></ul><ul><ul><li>The State Planning & Co-ordination Department aims </li></ul></ul><ul><ul><ul><li>Improved monitoring of outcomes for key HD indicators </li></ul></ul></ul><ul><ul><ul><li>Publication of periodical HDR at state and district levels </li></ul></ul></ul><ul><ul><ul><li>Seeking continued support from Planning Commission and UNDP </li></ul></ul></ul>ORISSA HUMAN DEVELOPMENT REPORT (2004)
  3. 3. <ul><ul><li>Human Development Issues Addressed </li></ul></ul><ul><ul><ul><li>Growth, Poverty, Livelihood </li></ul></ul></ul><ul><ul><ul><li>Food Insecurity & Nutritional Status </li></ul></ul></ul><ul><ul><ul><li>Health </li></ul></ul></ul><ul><ul><ul><li>Education </li></ul></ul></ul><ul><ul><ul><li>Gender Issues </li></ul></ul></ul><ul><ul><ul><li>Natural Disasters </li></ul></ul></ul><ul><ul><ul><li>Strategies for Financing HD </li></ul></ul></ul><ul><ul><li>Human Development Measures </li></ul></ul><ul><ul><ul><li>Human Development Index </li></ul></ul></ul><ul><ul><ul><li>Gender related Development Index </li></ul></ul></ul><ul><ul><ul><li>Reproductive Health Index </li></ul></ul></ul>ORISSA HUMAN DEVELOPMENT REPORT
  4. 4. ECONOMY & GROWTH: CORE STRENGTHS <ul><li>Rich Natural Resource Endowment (Aquaculture, Forests, Marine, Metals, Minerals and Water) </li></ul><ul><li>Rich Cultural Heritage – Tribal Heritage </li></ul><ul><li>Excellent base for Textiles, Handloom and Handicrafts </li></ul><ul><li>Excellent Tourism Opportunities - Eco-tourism, Religious </li></ul><ul><li>Rich Potential for Industrialization – Steel, Aluminum </li></ul><ul><li>Presence of Knowledge Industry – Good IT Skill base </li></ul>
  5. 5. ECONOMY & GROWTH : CHALLENGES WE FACE <ul><li>Undiversified, Slow Growing Economy (3- 4%) </li></ul><ul><li>Undeveloped and Stagnant Agriculture (<1%) </li></ul><ul><ul><li>- Primitive agricultural practices </li></ul></ul><ul><ul><li>- Low agricultural productivity </li></ul></ul><ul><li>Slow Growth in Manufacturing and Service Sectors </li></ul><ul><ul><li>- Inadequate private investment and technical change </li></ul></ul><ul><li>Poor Infrastructure </li></ul><ul><ul><li>- Lack of good roads, rails, ports, and airports </li></ul></ul><ul><ul><li>- Undeveloped markets </li></ul></ul><ul><li>Small Economic Base </li></ul><ul><li>Lack of employment opportunities </li></ul><ul><li>Low employable skills </li></ul><ul><li>Frequent natural disaster </li></ul>
  6. 6. POVERTY <ul><ul><ul><li>Poverty declining at a very slow rate </li></ul></ul></ul><ul><ul><ul><ul><li>Overwhelmingly rural and regional phenomenon (93% of the poor live in rural areas) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>About half of the rural poor are 40% or more below poverty line </li></ul></ul></ul></ul><ul><li>Poverty in Orissa: Some Characteristics </li></ul><ul><ul><li>4 out 5 poor persons are farmers or agricultural labourers </li></ul></ul><ul><li>Core Poverty groups </li></ul><ul><ul><li>ST (75%), SC (59%) </li></ul></ul><ul><ul><li>Small & marginal farmers (60%), casual wage labourers (75%) </li></ul></ul><ul><ul><li>Social Indicators for the Core Poverty Group are significantly worse </li></ul></ul>
  7. 7. POVERTY <ul><ul><li>Interior is poorly connected and has a very high incidence of poverty </li></ul></ul><ul><ul><li>Many of the poor depend on forests for their livelihoods </li></ul></ul><ul><ul><li>The poor are highly vulnerable to natural shocks, and have limited access to public services </li></ul></ul><ul><ul><li>They have limited or no voice in decision making </li></ul></ul>
  8. 8. LIVELIHOOD CONCERNS & RECOMMENDATIONS <ul><li>Concerns </li></ul><ul><li>Recurrent droughts and floods (natural disasters) </li></ul><ul><li>Poor Natural Resource Management </li></ul><ul><li>Lack of marketing linkage for rural non-farm sectors based on very low levels of household, income and consumption </li></ul><ul><li>Recommendations </li></ul><ul><li>Labour intensive growth strategy (small scale and cottage industries) (focus on KBK districts) </li></ul><ul><li>Watershed management </li></ul><ul><li>Shift from paddy cultivation to horticulture/fisheries </li></ul><ul><li>Joint Forest Management </li></ul><ul><li>Strengthening of rural credit </li></ul><ul><li>Provision of legal rights for share croppers </li></ul><ul><li>Promotion of non-farm sector employment </li></ul>
  9. 9. FOOD SECURITY AND NUTRITIONAL ISSUES <ul><li>Orissa is a food insecure state </li></ul><ul><ul><li>57% population suffer from Chronic Energy Deficiency (CED) </li></ul></ul><ul><ul><li>48% women suffer from nutritional deficiency </li></ul></ul><ul><ul><li>72.3% of children have some degree of anaemia </li></ul></ul><ul><li>The State has taken several bold measures </li></ul><ul><ul><li>A good network of PDS outlets </li></ul></ul><ul><ul><ul><li>92% HH access PDS within 2 km of their habitations </li></ul></ul></ul><ul><ul><li>TPDS, Annapurna and Antodaya Schemes </li></ul></ul><ul><ul><ul><li>48.58 lakh HH benefit from these initiatives </li></ul></ul></ul><ul><ul><li>Involvement of PRI to manage PDS outlets in tribal areas </li></ul></ul><ul><ul><ul><li>Sarpanches, BDOs, Sub-Collectors and Collectors authorized to extend food support to the most needy </li></ul></ul></ul><ul><ul><li>Targeted nutritional interventions </li></ul></ul><ul><ul><ul><li>NCAER appreciates the functioning of ICDS </li></ul></ul></ul>
  10. 10. FOOD SECURITY AND NUTRITIONAL ISSUES <ul><li>Recommendations </li></ul><ul><ul><li>Community based Management of PDS and grain banks </li></ul></ul><ul><ul><li>Rural employment generation along with food transfer component </li></ul></ul><ul><ul><li>Universalise PDS instead of TDPS </li></ul></ul><ul><ul><li>Design and implement supplementary and emergency feeding programmes for very vulnerable </li></ul></ul>
  11. 11. HEALTH CONDITIONS <ul><li>Highest Infant Mortality Rate (91 in 2001 & 87 in 2002) </li></ul><ul><ul><li>Lack of access to safe drinking water; adequate nutrition </li></ul></ul><ul><ul><li>High percentage of low birth weight babies </li></ul></ul><ul><ul><li>Early Marriage of Girls; poor female literacy </li></ul></ul><ul><ul><li>ARI, Diarrhoea, Measles, Malaria </li></ul></ul><ul><li>Excess Morbidity Burden </li></ul><ul><ul><li>Increased cases of Malaria, TB, Gastroenteritis, ARI, Diarrhoea </li></ul></ul><ul><ul><li>Preponderance of infectious and communicable diseases </li></ul></ul><ul><li>Access to Health Care Facilities </li></ul><ul><ul><li>Poor physical and economic access affect the utilization of public health care facilities </li></ul></ul><ul><ul><li>Significant inter-district and gender disparities </li></ul></ul><ul><ul><li>Perceptible improvement in coverage of health institutions </li></ul></ul>
  12. 12. HEALTH CONDITIONS <ul><li>Recommendations </li></ul><ul><ul><li>Improved physical access to health care institutions </li></ul></ul><ul><ul><li>Institutional/safe deliveries </li></ul></ul><ul><ul><li>Promoting mother’s education </li></ul></ul><ul><ul><li>Strengthened child immunisation programmes </li></ul></ul><ul><ul><li>Strengthened vector control programmes </li></ul></ul><ul><ul><li>Involving PRIs, NGOs and SHGs in managing healthcare institutions (remote/tribal districts) </li></ul></ul><ul><ul><li>More targetted HIV/AIDS programmes </li></ul></ul>
  13. 13. EDUCATION <ul><li>Done comparatively well in education </li></ul><ul><ul><li>Literacy levels increased from 7% (1936) to 63.61% (2001) </li></ul></ul><ul><ul><li>Resource allocation: 6% of GSDP </li></ul></ul><ul><li>Increased Enrolment </li></ul><ul><ul><li>Significant improvement in gender parity index over the years </li></ul></ul><ul><ul><li>Increased gross enrolment ratio among SC(115.1%) and ST (99.7%) in primary education </li></ul></ul><ul><li>Regional, Social and Gender disparities </li></ul><ul><ul><li>Female literacy only 50.97% (vs 75.95% male literacy) </li></ul></ul><ul><ul><li>Wide inter-district variations – rural areas suffer more </li></ul></ul><ul><ul><li>Low literacy among ST – very low female tribal literacy </li></ul></ul><ul><ul><li>Drop out rates still continue to be high – 37% at primary level </li></ul></ul>
  14. 14. GENDER <ul><li>Concerns </li></ul><ul><li>Sex ratio higher than the national average (972 against 933 national average) </li></ul><ul><li>0-6 years sex ratio lower than the national average (developed pockets of coastal and central tableland districts) </li></ul><ul><li>Low BMI, Nutritional deficiency (esp. among SC and ST communities) </li></ul><ul><li>Economic reform process –downsizing of public sector – may impact on women – removal of social security benefits, flexi-time and child care </li></ul><ul><li>Recommendations </li></ul><ul><li>Land reforms – providing joint ownership to both husband and wife </li></ul><ul><li>Public support for out-of-home child care services </li></ul><ul><li>Simplifying banking procedures – increasing their accessibility to women </li></ul><ul><li>Targetted programs for women losing jobs due to downsizing of public sector </li></ul>
  15. 15. NATURAL DISASTERS <ul><ul><li>Concerns </li></ul></ul><ul><ul><li>Recurrent natural disasters -droughts (Western and Southern Orissa), </li></ul></ul><ul><ul><li>& cyclones and floods (coastal areas) </li></ul></ul><ul><ul><li>Loss of lives, livelihoods and property </li></ul></ul><ul><ul><li>Serious fiscal imbalances </li></ul></ul><ul><ul><li>Recommendations </li></ul></ul><ul><ul><li>Local communities should form the core of disaster preparedness and mitigation programmes </li></ul></ul><ul><ul><li>Explore the feasibility of disaster insurance </li></ul></ul><ul><ul><li>Building of safer houses crucial </li></ul></ul>
  16. 16. HUMAN DEVELOPMENT INDEX (HDI) <ul><ul><li>HDI is a composite measure </li></ul></ul><ul><ul><ul><li>Health Index, Education Index and Income Index </li></ul></ul></ul><ul><ul><li>Orissa HDI – 0.404 (11 th among 15 major States) </li></ul></ul><ul><ul><ul><li>Kerala (0.638) and Bihar (0.367) </li></ul></ul></ul><ul><ul><li>Wide Inter-district Variations </li></ul></ul><ul><ul><ul><li>16 districts have lower HDI than State average </li></ul></ul></ul><ul><ul><ul><li>Top Five Districts </li></ul></ul></ul><ul><ul><ul><ul><li>Khurda, Jharsuguda, Cuttack, Sundergarh, Deogarh </li></ul></ul></ul></ul><ul><ul><ul><li>Bottom Five Districts </li></ul></ul></ul><ul><ul><ul><ul><li>Malklanagiri, Kandhamal, Gajapati, Koraput, Nabarangpur </li></ul></ul></ul></ul>
  18. 18. GAINS ACHIEVED DURING 1993-1999
  20. 20. <ul><ul><li>GDI is a composite measure </li></ul></ul><ul><ul><ul><ul><li>- Health Index, Education Index and Income Index </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- Captures the gender dimensions of human development </li></ul></ul></ul></ul><ul><ul><li>Orissa GDI – 0.546 </li></ul></ul><ul><ul><li>Wide Inter-district Variations </li></ul></ul><ul><ul><ul><li>20 districts have GDI values less than State average </li></ul></ul></ul><ul><ul><ul><li>Best Five Districts </li></ul></ul></ul><ul><ul><ul><li>Jharsuguda, Sundergarh, Deogarh, Angul, Khurda, </li></ul></ul></ul><ul><ul><ul><li>Bottom Five Districts </li></ul></ul></ul><ul><ul><ul><ul><li>Malkanagiri, Kandhamal, Jajpur, Gajapati, Koraput, </li></ul></ul></ul></ul>GENDER DEVELOPMENT INDEX (GDI)
  22. 22. <ul><ul><li>RHI captures impact of six indicators </li></ul></ul><ul><ul><ul><li>Risks of early pregnancies; pregnancy complications </li></ul></ul></ul><ul><ul><ul><li>Lack of trained Dhais; 3 rd or higher order babies </li></ul></ul></ul><ul><ul><ul><li>Reproductive tract infections, contraceptive side effects </li></ul></ul></ul><ul><ul><li>Orissa RHI – 0.549 </li></ul></ul><ul><ul><li>Wide Inter-district Variations </li></ul></ul><ul><ul><ul><li>13 districts have RHI values less than State average </li></ul></ul></ul><ul><ul><ul><li>Best Five Districts </li></ul></ul></ul><ul><ul><ul><li>Jharsuguda, Jagatsinghpur, Sundargarh, Keonjhar, Cuttack </li></ul></ul></ul><ul><ul><ul><li>Bottom Five Districts </li></ul></ul></ul><ul><ul><ul><li>Kandhamal, Bhadrak, Balangir, Nabarangpur, Nuapada </li></ul></ul></ul>REPRODUCTIVE HEALTH INDEX (RHI)
  24. 24. HUMAN DEVELOPMENT: CHALLENGES <ul><ul><li>Specific and target-oriented expenditure programmes </li></ul></ul><ul><ul><ul><li>Human Expenditure Ratio to increase from 4.43% to 5% </li></ul></ul></ul><ul><ul><ul><li>Restructure expenditure in favour of social sectors: elementary education, primary and secondary health services, nutrition, rural water supply and sanitation </li></ul></ul></ul><ul><ul><ul><li>Improve access of ST, SC and Women to quality education, public health and better nutrition </li></ul></ul></ul><ul><ul><ul><li>Reduce regional and gender disparities </li></ul></ul></ul><ul><ul><li>Need for broad-based labour intensive economic growth </li></ul></ul><ul><ul><li>• Mobilisation of higher resources </li></ul></ul><ul><ul><li>• Diversify livelihood options of the poor and ST </li></ul></ul><ul><ul><li>• Focus on higher agricultural growth, institutional credit and non-farm employment and income opportunities </li></ul></ul><ul><ul><li>• Sustainable Management of forests and other NR </li></ul></ul>
  25. 25. A DEVELOPMENT PERSPECTIVE FOR ORISSA- POVERTY TASK FORCE <ul><ul><li>Well-diversified, Fast Growing Economy </li></ul></ul><ul><ul><li>Reduce Poverty Ratio from 47.20% to 15% </li></ul></ul><ul><ul><li>Reduce Infant Mortality Rate from 87 to less than 41 </li></ul></ul><ul><ul><li>Universal Literacy, High Quality Employable Skills </li></ul></ul><ul><ul><li>Orissa - Net Exporter to rest of India & the World </li></ul></ul><ul><ul><ul><ul><ul><li>Free from Regional, Caste and Gender Disparities </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>A Leading State in Human Development </li></ul></ul></ul></ul></ul><ul><ul><li>A Transparent and Responsive Government </li></ul></ul>Key Development Goals
  26. 26. OLD DEVELOPMENT PARADIGM <ul><li>Low private investment and narrow base of economic growth </li></ul><ul><li>Government expansion seen as main source of employment growth </li></ul><ul><li>Public resources pre-empted by interest payments, pension and salaries of government employees </li></ul><ul><li>Stagnation and decline in public investment in both quantity and quality </li></ul><ul><li>Growth in inefficient subsidies such as grants to colleges and high schools with poor or zero output </li></ul><ul><li>Exploitation of minerals and forest wealth  degradation of environment & displacement of tribals </li></ul><ul><li>Top down public administration with information hidden from the public eye </li></ul>
  27. 27. NEW PARADIGM <ul><li>On a path of fiscal improvement since 2001 </li></ul><ul><ul><ul><li>Revenue Deficit reduced from 40% to less than 15% of Revenue Receipts </li></ul></ul></ul><ul><ul><ul><li>Salary bill reduced from 150% to 80% of own revenues </li></ul></ul></ul><ul><li>Orissa is the NUMBER ONE state in terms of revenue collection from the newly introduced VAT </li></ul><ul><li>Orissa is NUMBER ONE in terms of private investment projects under implementation (source: CMIE) </li></ul><ul><li>Government of Orissa is committed: </li></ul><ul><ul><ul><li>To enhance transparency and accountability of public administration </li></ul></ul></ul><ul><ul><ul><li>To reduce corruption, and </li></ul></ul></ul><ul><ul><ul><li>To improve the quality of public spending and delivery of services </li></ul></ul></ul>
  28. 28. REFORM AGENDA OF THE GOVT OF ORISSA <ul><li>Economic Growth Enhancing Reform  simplify rules & regulation for clearing private investment proposals with adequate safeguards, identify potential growth engines and remove binding constraints in key sub-sectors </li></ul><ul><li>Power sector reform  electric connectivity  e-connectivity  technology and market information from urban to rural areas </li></ul><ul><li>Fiscal and admin reform  quantity and quality of public investment  improve operation of economic infrastructure and basic social services </li></ul><ul><li>Health & Education reforms  Reallocate public expenditure towards priority outcomes + Reorganize departments + Improve service delivery </li></ul><ul><li>Empowerment of poor and tribal people  Establish farmer groups and women’s self-help groups to enable the poor to benefit from growing market opportunities </li></ul>
  29. 29. BUILDING BLOCKS FOR INCLUSIVE DEVELOPMENT <ul><li>Improved connectivity -- road, electric power, electronic connectivity, modern ports </li></ul><ul><li>Easy market access so that farmers receive competitive prices for crops </li></ul><ul><li>Easy entry for private investment with effective social & environmental safeguards </li></ul><ul><li>Literate and skilled human resources </li></ul><ul><li>Effective food security through enhanced productivity of agriculture and strengthened PDS with local oversight </li></ul><ul><li>Effective targeting of wage employment and self-employment programs aligned with seasonality of demand </li></ul><ul><li>District level planning  convergence of services </li></ul>
  30. 30. INCLUSIVE DEVELOPMENT … <ul><li>Empowered rural communities with active self-help groups  voice to the voiceless </li></ul><ul><li>Devolution to local bodies  power to the powerless </li></ul><ul><li>Consultative process of decision making </li></ul><ul><li>Transparency of programs and accountability of service providers </li></ul>
  31. 31. RE-THINKING GROWTH <ul><li>Build on Orissa’s natural advantages </li></ul><ul><li>Diversify agriculture and non-farm activities </li></ul><ul><li>Identify potential growth engines – horticulture, mineral-based manufacturing, tourism and traditional hand skills, fisheries, forests, and IT </li></ul><ul><li>Base policies and decisions on objective analysis, not on anecdotal impression </li></ul><ul><li>Improve overall climate for private investment – Single Window, R&R Policy, Credit arrangements, Land & Water, etc. </li></ul><ul><li>Win public support for private investment – negotiate for social investment from private entrepreneurs, advertise ‘win-win’ cases, allocate share of mining revenue to social development in mineral rich districts </li></ul>
  32. 32. ENHANCE RETURNS TO FARMERS <ul><li>Increase density of agricultural markets  improve price realization by farmers in Orissa through access to markets and to price information </li></ul><ul><li>Amend Agricultural Marketing Act to permit private investment alongside public investment in marketing yards and storage facilities </li></ul><ul><li>Establish framework for contract farming  e ncourage agro-processing and value addition </li></ul><ul><li>Encourage sustainable and comprehensive water management through  Pani Panchayats  Water harvesting and re-cycling  Measures to combat droughts and control floods </li></ul>
  33. 33. FISHERIES & FORESTS <ul><li>Both salt water and inland fisheries have potential </li></ul><ul><li>Need to avoid adverse effects on natural environment </li></ul><ul><li>Need for a policy framework and transparent guidelines </li></ul><ul><li>Sustainable harnessing of, and value addition to, biomass resources  bamboo, medicinal plants and other species </li></ul><ul><li>Maintain ecological stability and sustainability of land-based production systems  higher growth possible from forests and fisheries resources </li></ul>
  34. 34. RE-THINKING APPROACH TO TAP THE STATE’S MINERAL WEALTH <ul><li>How to give back what is taken from the tribal districts? </li></ul><ul><li>Sensitive R&R Policy </li></ul><ul><li>Public investment in technical training to enhance employment prospects in the interior districts </li></ul>
  35. 35. TOURISM HAS A GREAT POTENTIAL <ul><li>Enormous tourism resources </li></ul><ul><ul><ul><li>Natural (tigers, elephants, Chilika, Simlipal) </li></ul></ul></ul><ul><ul><ul><li>Cultural (sculpture, dance, handicrafts) </li></ul></ul></ul><ul><ul><ul><li>Religious (Hindu, Buddhist, Jain) </li></ul></ul></ul><ul><li>Need for high quality infrastructure </li></ul><ul><ul><ul><li>Airports, roads, hotels </li></ul></ul></ul>
  36. 36. FUTURE PROSPECTS <ul><li>Large-scale private investments expected to boost job creation and urbanization over the next 15 years </li></ul><ul><li>Revenue Deficit will be eliminated by 2008-09 and the Government of Orissa will become creditworthy, borrowing only for investments </li></ul><ul><li>Mineral based industry + Tourism, Handlooms, Handicrafts, Fisheries, Horticulture and forests  Accelerated growth in wage employment and self-employment </li></ul><ul><li>Rapid economic Growth + Decline in Inequality  Rapid decline in Poverty and more employment opportunities </li></ul><ul><li>Improved health and education  Food, health and social security  Education as a means of empowerment, value addition and knowledge creation  Improved quality of life </li></ul>
  37. 37. CONVERGENCE OF EFFORTS, IDEAS & INVESTMENT <ul><li>Transforming Orissa requires: </li></ul><ul><ul><ul><li>Convergence of efforts, ideas and investment </li></ul></ul></ul><ul><ul><ul><li>Concerted action by all stakeholders </li></ul></ul></ul><ul><li>State Govt., Central Govt., External Donors, Private Sector, Non Resident Oriyas, NGOs and the poor people themselves </li></ul>THANK YOU