The document discusses rural development and poverty alleviation in India, outlining key concepts related to rural economy, development indicators, theories of development, and issues related to development and poverty in global and Indian contexts. It also provides details on planning, funding, and implementation of potential poverty alleviation programs and schemes in rural India.

1. Rural Economy & Development
Why should we study in this paper?
3. To understand and analyze the socioeconomic
dynamics of the rural areas of India as well as
other countries
2. To know the basics and conceptual frameworks
of rural development
1. To put rural development theories methodically
into practices at state, national & international
level

2. What is Economy ?
• Economy means certain living conditions
of people in certain region through which
the physical quality of life of the people is
determined.
• Rural economy is characterized by the
primary sector & allied(joined) activities.
• Rural economy is basically a producers’
economy

3. Development
• Development is a continuous process of
positive change towards improvement of
PQL
• Development is not only the economic
growth, but it is also the equitable
distribution of the development gain
• Development means growth with justice

4. Characteristics of Development
• Increase in PQL
• Growth with justice
• Removal of inequality & Poverty
• Equitable distribution of development gain
• Sustainability
• Equalization of opportunities

5. Alternative Development Indicators
• PQLI
• Human Development
• Empowerment
• Moral & Ethics
• GNH

6. Schools of Thoughts
• Rostow’ s Growth Theory
• Lewis Development Theory
• International Dependence Theory
• Gandhian Development Theory
• Nehruvian Development Theory
• Marxist Development Theory

7. Issues of Development in Global Context
• Polarization of Wealth
• Feminization of Poverty
• Rural Urban Influx
• Large Scale Displacement
• Destruction of livelihoods System
• Synergic Problems

8. Issues in Development in Indian Context
• Growth VS Distribution
• Agricultural Development VS Industrial Dev
• Technology intensive VS Labor replacing Economy
• Centralized VS Decentralized Planning
• Urban VS Rural Development

9. What is Poverty ?
The word "poverty" suggests
impoverishment: an inability to
provide a family with nutritious food,
clothing, and reasonable shelter. UNO

10. Types of poverty
• Absolute Poverty
( Physical requirements at subsistence level, price quotations, per capita consumer
expenditure)
• Relative Poverty
( income distributions of fractile groups, top 10, bottom 10)

11. What does Poverty create ?
People residing in tribal and forested areas
are likely to remain poor forever as a result they
foment violence, conflicts & social unrest in
future.

12. Factors of Poverty
• Poor Quality Human Capital: low level of
productive efficiency
• Instability of output in Agriculture sector
• Imbalance in distribution & growing
inequalities
• Prevalence of Chronic Unemployment
• Prevalence of low level technology
• Steadily improving rate of capital formation

13. Why Poor is Poor?
Poverty becomes hereditary in India because Chronic
Poor pass on the poverty syndromes to the next
generation

14. Uneven distribution of food grains & absence of right to food act
(People's Union for Civil Liberties )

15. What is Poverty Line ?
Poverty Line is an economic benchmark
and threshold used to indicate economic
disadvantage and to identify individuals
and households in need of their
subsistence.

16. Underlining the Poverty
• 9th FYP criteria ( < 22,000/- AFI/ 2 hectors)
• 10th FYP criteria (Cut off mark-17 out of 52)
• 11th FYP criteria ( Rural & Urban)
• BPL criteria in Kerala ( 4 out of 9 point criteria)

17. Various Studies on Poverty
• Ojha’s estimate of Poverty (2,250 calories)
• Dandekar & Rath’s Study of Poverty
( Rs20/-pm)
• Minha’s Study of Poverty ( varies during
Harvest)
• Montek S. Alhuwalia’s study of Poverty
(Agricultural performance & PoG=Z-Y/Z
( for detail see the book: Indian Economy by Mishra &
Puri or Datta & Sundharam)

18. Poverty is widespread in India, with the
nation estimated to have 1/3rd of the
world's poor. According to a 2005 World
Bank estimate, 41.6% of the total Indian
population falls below the international
poverty line of US$ 1.25 a day.

19. Declining Poverty in India

20. International Poverty Line
Internationally, an income of less than $1.25 per
day per head of purchasing power parity is
defined as extreme poverty. Income-based
poverty lines consider the bare minimum income
to provide basic food requirements; it does not
account for other essentials such as health care
and education. That is why some times the
poverty lines have been described as starvation
lines.

21. Poverty in China
• < 0.2 US$ pd/ph ( 2005) & <1.25 US$ (2010)
• 230 million BPL

22. Poverty in United States of America

23. Infrastructure in Indian Economy
• Energy & Power
• Agriculture & Irrigation
• Transport
• Communication & IT
• Industry
• Defense
• Entertainment & Media
• Science & Technology
• Banking & Insurance
• Health & Education

24. Performance in Infrastructure Sector
Sectors Unit 1950-51 2008-09
Coal M.T 32 525
Electricity B.KW 5 747
Petroleum M.T 0.4 33.5
Steel M.T 1.0 57
Cement M.T 2.7 181.4
Railway M.T 73 833

25. Energy Consumption: World wide ( 2008)
Country PCI ( PPP) (US$) PCEC (KGs of Oil)
INDIA 2,930 529
CHINA 6,010 1,484
UK 32,240 3,464
JAPAN 35,190 4,019
USA 46,790 7,766

26. Natural Resources in Indian Economy
• Land Resources
• Water Resources
• Forest Resources
• Marine Resources
• Mineral Resources
• Non-Conventional & renewable energy

27. Major Areas of Intervention
Income Generation Road R&R
Employment Electricity Forestry
Migration Communication Women Issues
Agriculture Housing Social Security
Irrigation Health Marketing
Disaster Management Livelihoods Finance
Fisheries Education Others

28. Tips for Drafting the Scheme
• Download a related scheme which is already in
force (or phased out).
• Critically assess the scheme and find out the gaps
• Collect the all India level vital statistics on land,
population and others.
• Draft the scheme on any one of the areas of
rural development (Latest by 23rdof July) which will
be presented group wise on class from 1st of
August & will be assessed with 20 marks.

29. Guidelines of the Scheme ?
Give a nomenclature of the Scheme i.e.
“ National Poverty Alleviation Programme”

30. Part I - Programme Objectives and Guiding
Principles
1. Introduction
2.Programme Objectives
3.Guiding Principles

31. Part II – Planning, Funding & Execution
4. Planning for the projects
5. Funding and Allocation
6. Proposals
7. State Level Agencies
8. Preparation of Project Proposals and their
Clearance
9. Scrutiny of Project Proposals

32. 10. Empowered Committee
11. Tendering of Works
12. Programme Implementation Units
13. Execution of Works
14. Quality Control and Supervision of Works
15. Monitoring

33. Part III - Flow of funds, procedure for
release and Audit
16. Flow of Funds
17. Procedure for Release Of Funds to the State
Level Agency
18. Audit
19. Miscellaneous
20. Convergence