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Sustainable Rural Development
Strategies for Sustainable and Inclusive Development in Rural
areas in the 12th Five Year Plan and Beyond




  Kuldeep Singh, Rural Development Division, Planning Commission
Percentage of Population Below
                                                                                    Poverty Line (BPL)
                                                                      45
                                       Rural                                         42
                                       Population:                    40
                 121                   68.8%
                                                                                     37.2
                Crore
              Population of                                           35
               India (2011                                                                                 33.8   Rural
                 Census )
                                       Urban
                                                                                                                  Urban
                                       Population:                    30                                   29.8
                                       31.2%                                                                      All India


                                                                      25             25.45


                                                                                                           20.9
                                                                      20
                                                                                2004-05             2009-10
                                       Beneficiaries (In Thousands)
                              400000                                                Expenditure (Rs. in crores)
                              350000
                                                                           250000
                              300000

                              250000                                       200000

  11Th Five Year Plan         200000                                       150000
   (Beneficiaries ~
 Expenditures) Rural          150000                                       100000
Development Programs
                              100000                                       50000
                              50000
                                                                               0
                                  0
Major Challenges for Rural Transformation

                                  Untapped                                Unemployment, Under-
 Lack of Conducive                                            Low         employment and seasonal
 Environment for                  Emerging
                                                          Contribution    employment , Low
                                Opportunities                             Productivity in agriculture &
 Entrepreneurship                                           in GDP
                                for livelihood                            allied sectors




                                                        Low              Inadequate            Low coverage and
              Large segment dependent on                                    Social
                                                   Productivity                                assistance under
    Agriculture, Small & Marginal Farmers ,         in Rain fed
         Low capacity to invest, low output                                Security            NSAP
                                                   Agriculture             System


 Lack of Financial                                                         Low level of skill &
 Inclusion, Inaccessibility     Inadequacy                 Poverty         education, Low
 to credit, High lending          of Credit                 Trap           Productivity &
 rate by MFI and                                                           unsustainable Income
 informal source of
 finances
                                                                                          Weak Local Institutions, low
         Poor connectivity and                                        Poor                public participation and
                                                  Lack of
         marketing Infrastructure,            Infrastructure         Delivery             democratic decentralization
         Lack of power & other                                      Mechanism
         facilities
Present
                              Creation of Employment
Program                             - MGNREGA
Continuum                             - NRLM




       Housing, with Basic
       amenities through                                 Sustainable Agriculture &
          convergence                                       Rural Connectivity
              - IAY          Sustainable Rural           -IWMP including synergy
                                                              with MGNREGA
               - TSC           Development
                                                                 - MKSP
            - NRDWP
                                                                 - PMGSY




                             Social Protection Program
                                       - NSAP
Approach adopted - Action Plan
Focus on ‘horizontal’ issues through ‘vertical’ programs that cut across sectors

                                                                                       Employment
                                                                             Women Empowerment
      Social Security (Old Age, Disabled & Widows Pension and Family Benefit)
                                                                             Sustainable Agriculture
                                                              Skill Development for Rural Youth
                                                                               Financial Inclusion
                                                              Public Private Partnership (PPP)




                                                                                                                                                                                                                                                                   Rural Transformation
                                                                   Infrastructure Development
                                                              Effective Delivery Mechanism




                                                                                                                                                                              Training & capacity building




                                                                                                                                                                                                                                    Entrepreneurship Development
                                                                                                                                                  Use of IT and Institution
                                                                                                                          Watershed Development




                                                                                                                                                                                                             Institutions of Poor
      Rural Connectivity




                                                                                                                                                          Building
                                                                                                      Skill Development
                                            Houses for Poor
                           Drinking water




                                                                                 Asset Creation
                                                                Sanitation




                                                                                                  Sectoral Group
Approach to Poverty reduction through Sustainable Rural
     Development

1
                         Self Employment and wage Employment under various Rural
    Employment
                         Development Programs.
2
    Sustainable          Multilevel approach to increase investment in agriculture, watershed
    livelihood through   development and empowerment of women through MKSP.
    Agriculture

3                        Focus of MGNREGA to create durable and quality assets .
    Durable Asset
                         Connecting rural People with Banking system, Post offices and
4
    Financial            Banking Correspondents (BC) for payments etc.
    Inclusion
                         Promotion of proven technologies and best practices with multiplier
5
    Innovative Tech.&    effects.
    Best Practices
                         Rural Flexi-Fund to incentivize better performing States and
6
                         managing the inequality of the region through better targeting and
    Flexi-Fund
                         focused projects on state-specific priorities.
Approach to Poverty reduction through Sustainable Rural
       Development

 7
      Convergence    Multilayer convergence at all levels with Inter and Intra-ministerial
                     programs.
 8                   Focus of major Rural Development Programs on women and skilling
      Women and
                     the youth .
      Youth

 9                   Participation of Scheduled Castes and Scheduled Tribes in all major
      Vulnerable
                     Flagship Programs of Rural Development.
      Section
10
      Information    electronic Financial Management System (e-FMS) to ensure availability
      Technology     of funds at each level along with effective and time bound payments.

 11                  • electronic Muster & Measurement system (e-MMS) to strengthen
      Transparency     monitoring process expediting the payment of wages and removal
                       of duplicity.
                     • Social Audit along with Grievance Re-dressal Mechanism to
                       promote accountability.
Expected Outcomes

1.   Sustainable Development for Rural Transformation.
2.   Skill development of large number of rural poor youth for employment

3.   To facilitate 30 lakh entrepreneurs among the poor to set up micro-
     enterprises.

4.   Nurturing and strengthening the ‘Institutions of Poor’

5.   Women Empowerment

6.   Better Quality IAY Houses.

7.   Comprehensive Financial Inclusion through linkages to banks, Post offices
     and other Financial Institutions.
Additional Information


1.   Rural Development Chapter, 12th Five Year Plan (Chapter 17)
     http://planningcommission.gov.in/plans/planrel/12thplan/welcome.html

2.   Planning Commission http://planningcommission.gov.in

3.   Ministry of Rural Development http://rural.nic.in/

4.   Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA
     http://nrega.nic.in/

5.   National Rural Livelihoods Mission (NRLM-AAJEEVIKA) http://aajeevika.gov.in/

6.   Provision of Urban Amenities in Rural Areas(PURA) http://rural.nic.in/sites/pura.asp

7.   Indira Awaas Yojana (IAY) http://iay.nic.in

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Rural Development in the 12th Five Year Plan and Beyond

  • 1. Sustainable Rural Development Strategies for Sustainable and Inclusive Development in Rural areas in the 12th Five Year Plan and Beyond Kuldeep Singh, Rural Development Division, Planning Commission
  • 2. Percentage of Population Below Poverty Line (BPL) 45 Rural 42 Population: 40 121 68.8% 37.2 Crore Population of 35 India (2011 33.8 Rural Census ) Urban Urban Population: 30 29.8 31.2% All India 25 25.45 20.9 20 2004-05 2009-10 Beneficiaries (In Thousands) 400000 Expenditure (Rs. in crores) 350000 250000 300000 250000 200000 11Th Five Year Plan 200000 150000 (Beneficiaries ~ Expenditures) Rural 150000 100000 Development Programs 100000 50000 50000 0 0
  • 3. Major Challenges for Rural Transformation Untapped Unemployment, Under- Lack of Conducive Low employment and seasonal Environment for Emerging Contribution employment , Low Opportunities Productivity in agriculture & Entrepreneurship in GDP for livelihood allied sectors Low Inadequate Low coverage and Large segment dependent on Social Productivity assistance under Agriculture, Small & Marginal Farmers , in Rain fed Low capacity to invest, low output Security NSAP Agriculture System Lack of Financial Low level of skill & Inclusion, Inaccessibility Inadequacy Poverty education, Low to credit, High lending of Credit Trap Productivity & rate by MFI and unsustainable Income informal source of finances Weak Local Institutions, low Poor connectivity and Poor public participation and Lack of marketing Infrastructure, Infrastructure Delivery democratic decentralization Lack of power & other Mechanism facilities
  • 4. Present Creation of Employment Program - MGNREGA Continuum - NRLM Housing, with Basic amenities through Sustainable Agriculture & convergence Rural Connectivity - IAY Sustainable Rural -IWMP including synergy with MGNREGA - TSC Development - MKSP - NRDWP - PMGSY Social Protection Program - NSAP
  • 5. Approach adopted - Action Plan
  • 6. Focus on ‘horizontal’ issues through ‘vertical’ programs that cut across sectors Employment Women Empowerment Social Security (Old Age, Disabled & Widows Pension and Family Benefit) Sustainable Agriculture Skill Development for Rural Youth Financial Inclusion Public Private Partnership (PPP) Rural Transformation Infrastructure Development Effective Delivery Mechanism Training & capacity building Entrepreneurship Development Use of IT and Institution Watershed Development Institutions of Poor Rural Connectivity Building Skill Development Houses for Poor Drinking water Asset Creation Sanitation Sectoral Group
  • 7. Approach to Poverty reduction through Sustainable Rural Development 1 Self Employment and wage Employment under various Rural Employment Development Programs. 2 Sustainable Multilevel approach to increase investment in agriculture, watershed livelihood through development and empowerment of women through MKSP. Agriculture 3 Focus of MGNREGA to create durable and quality assets . Durable Asset Connecting rural People with Banking system, Post offices and 4 Financial Banking Correspondents (BC) for payments etc. Inclusion Promotion of proven technologies and best practices with multiplier 5 Innovative Tech.& effects. Best Practices Rural Flexi-Fund to incentivize better performing States and 6 managing the inequality of the region through better targeting and Flexi-Fund focused projects on state-specific priorities.
  • 8. Approach to Poverty reduction through Sustainable Rural Development 7 Convergence Multilayer convergence at all levels with Inter and Intra-ministerial programs. 8 Focus of major Rural Development Programs on women and skilling Women and the youth . Youth 9 Participation of Scheduled Castes and Scheduled Tribes in all major Vulnerable Flagship Programs of Rural Development. Section 10 Information electronic Financial Management System (e-FMS) to ensure availability Technology of funds at each level along with effective and time bound payments. 11 • electronic Muster & Measurement system (e-MMS) to strengthen Transparency monitoring process expediting the payment of wages and removal of duplicity. • Social Audit along with Grievance Re-dressal Mechanism to promote accountability.
  • 9. Expected Outcomes 1. Sustainable Development for Rural Transformation. 2. Skill development of large number of rural poor youth for employment 3. To facilitate 30 lakh entrepreneurs among the poor to set up micro- enterprises. 4. Nurturing and strengthening the ‘Institutions of Poor’ 5. Women Empowerment 6. Better Quality IAY Houses. 7. Comprehensive Financial Inclusion through linkages to banks, Post offices and other Financial Institutions.
  • 10. Additional Information 1. Rural Development Chapter, 12th Five Year Plan (Chapter 17) http://planningcommission.gov.in/plans/planrel/12thplan/welcome.html 2. Planning Commission http://planningcommission.gov.in 3. Ministry of Rural Development http://rural.nic.in/ 4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA http://nrega.nic.in/ 5. National Rural Livelihoods Mission (NRLM-AAJEEVIKA) http://aajeevika.gov.in/ 6. Provision of Urban Amenities in Rural Areas(PURA) http://rural.nic.in/sites/pura.asp 7. Indira Awaas Yojana (IAY) http://iay.nic.in