Rural Development: Principles, Policies and Management

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Katar Singh

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    Dedication

    To the fond memory of my beloved parents

    List of Tables

    • 2.1 Value of Major Agricultural Inputs and Output in India at 1999–2005 Prices 20
    • 2.2 Production of Food Grains, Milk and Fish in India 20
    • 2.3 Distribution of Operational Landholdings in India, 1995 and 2001–02 22
    • 2.4 Average Yield Rates in kg/ha of Principal Crops in India and Selected Countries, 2004–05 23
    • 2.5 Rural–Urban Literacy Rates in India, 1951–2001 25
    • 2.6 Share of Agriculture and Allied Activities in India's GDP at Factor Cost 26
    • 2.7 Value of India's Exports and Imports and Share of Agricultural Commodities 27
    • 3.1 Life Expectancy at Age 1, Infant Mortality and Literacy: Actual Data and Index Numbers (Early 1970s) 41
    • 3.2 Indicators of Rural Development by Group 42
    • 3.3 Simple and Weighted Composite Indices of Rural Development by State for the Years 1981, 1991 and 2001 43
    • 3.4 Basic Variables for Computing Human Development Index for Greece and India 44
    • 3.5 Indices of Life Expectancy, Educational Attainment, Adjusted Income and HDI for Greece and India 46
    • 3.6 Relative Shares of Aggregate Income Received by Various Decile Groups of Households in Aligarh District in 1963–64 and 1968–69 47
    • 3.7 State Specific Poverty Lines in India in 2004–05 53
    • 8.1 Public and Private Investment in Agriculture and Allied Sectors in India at 1999–2000 Prices 162
    • 8.2 Amount of Subsidies Granted to Indian Agriculture 164
    • 10.1 Estimates of Poverty and Trends in Poverty 200
    • 10.2 Number and Percentage of Population below the Poverty Line by States, 2004–05 (Based on URP Consumption) 202
    • 10.3 Number and Percentage of Population below the Poverty Line by States, 2004–05 (Based on MRP Consumption) 203
    • 10.4 Employment and Unemployment by Usual Principal Status in India 205
    • 10.5 Unemployment Rates for 55th Round and 61st Round of NSSO in Rural India 205
    • 10.6 Unemployment Rates for 55th Round and 61st Round of NSSO in Urban India 206
    • 14.1 Outlay and Expenditure in Public Sector on Agriculture and Allied Activities in India's Five Year Plans 287
    • 14.2 Flow of Institutional Credit to Agriculture and Allied Activities in India by Agency 292
    • 14.3 External Sources of Development Assistance to India 298
    • 14.4 Inflow of Foreign Aid in the Form of Loans and Grants in India 303
    • 14.5 India's External Debt Outstanding as on End of March of Selected Years 304
    • 15.1 A Conceptual Design for Impact Measurement 324

    List of Figures

    • 3.1 Distribution of Farm Family Income in Aligarh District in 1963–64 and 1968–69 48
    • 5.1 Determinants of Rural Development 80
    • 5.2 Role of Mother Nature/Environment in Economic Growth 83
    • 5.3 A Typical Environmental Kuznets Curve 84
    • 6.1 Hierarchy of Rural Development Policy Goals 105
    • 8.1 A Conceptual Framework for Policy Analysis 156
    • 8.2 Diagram of an Action System 160
    • 8.3 Effect of a Pollution Tax 168
    • 14.1 Sources of Funds for Rural Development 284
    • 15.1 Mechanics of Impact Assessment of a Programme like Operation Flood 323
    • 15.2 Mechanics of Impact Assessment of a Flood Control Project 323
    • 15.3 Mechanics of Impact Assessment of a Land Settlement Project 324

    List of Boxes

    • 1.1 Basic Elements of Rural Development 4
    • 2.1 Some Salient Characteristics of India's Rural Sector 21
    • 4.1 Basic Values and Premises underlying the Gandhian Model of Development 70
    • 6.1 Highlights of National Agricultural Policy 2000 115
    • 6.2 Objectives of National Policy for Farmers 124
    • 8.1 A Few Examples of Court Orders for Prevention of Pollution 175
    • 9.1 Basic Premises of Community Development Programme 180
    • 9.2 Activities of the Intensive Agriculture District Programme in India 186
    • 10.1 Large-scale Diversion of PDS Food Grains in India 208
    • 11.1 Components of Minimum Needs Programme 232
    • 13.1 Functions of an Organisation 261
    • 13.2 Criteria for Designing an Appropriate Organisation 267
    • 13.3 A Conceptual Framework for Bureaucratic Reorientation 270
    • 14.1 Certain Elements of a Favourable Environment for Foreign Investment 300
    • 14.2 Financing of the Operation Flood (of) Programme 302

    Preface to the Third Edition

    This edition of the book is brought out in response to the feedback that I got from some of the teachers, students and my colleagues about the second edition as well as my own realisation of the need to update some of the information and reorganise some of the chapters. The overwhelming success of the first two editions of the book, which together had a long innings of over two decades, provided me the rationale for revising the book.

    This edition comprises 15 chapters as against 16 chapters in the second edition. The major changes incorporated in this edition include (i) the addition of a new chapter (Chapter 7); (ii) reorganisation of five chapters (Chapters 812) of the second edition into three chapters (Chapters 911) by deleting some unnecessary details of the rural development programmes included in earlier chapters but adding a few new programmes; (iii) updating of the data and information presented in the second edition to the extent possible with the available information, including internet resources; (iv) addition of new tables presenting latest available estimates of poverty lines and incidence of poverty in India by state; (v) addition of two new sections—‘Main Points’ and ‘Questions for Discussion’—to each of the 15 chapters; and (vi) inclusion of 15 new boxes highlighting the salient features of some of the important programmes.

    Chapters 1 to 6, Chapter 8 and Chapters 1215 are revised and updated versions of earlier chapters of the same titles. Chapter 7 and Chapters 911 are new chapters. Chapter 7 is exclusively devoted to the presentation and discussion of a new strategy of sustainable development. It represents a significant addition to this edition of the book. Chapter 9, which is titled ‘Equity-oriented and Growth-oriented Programmes’, is rewritten by merging the earlier chapters on ‘Community Development Programme’ (Chapter 8), ‘Intensive Agricultural District Programme’ (Chapter 9), ‘Special group- and Area-specific Programmes’ (Chapter 10) and ‘Operation Flood’ (Chapter 11). The chapter retains all the salient features of the earlier programmes but omits unnecessary details. Chapter 10 is titled ‘Poverty and Unemployment Eradication Programmes’. Besides, retaining the salient features of the Integrated Rural Development Programme (Chapter 12), it also includes salient features of a few other programmes not included in the second edition, such as the Public Distribution System, and new sections on rural poverty scenario and the un-employment scenario. Chapter 11 titled ‘Natural Resources and Infrastructure Development Programmes’ includes some of programmes included in Chapter 10 of the second edition and few other programmes such as the National Watershed Development Programme for Rain-fed Areas, National Afforestation Programme, Twenty Point Programme and National Common Minimum Programme. I hope this edition will also be as useful as the first two editions of the book.

    Several people contributed to the revision of the second edition of the book. In particular, Late Shri Tejeshwar Singh, former Managing Director, SAGE Publications India Private Ltd, provided me the needed motivation and encouragement, as in the case of the second edition, to undertake the task. Dr Sugata Ghosh, Vice-President, Commissioning and Ms Anjana Saproo, Commissioning Editor, facilitated the project by providing me the Microsoft Word version of the second edition of the book and rendering valuable advice from time to time. Dr Anil Shishodia helped me with information about relevant websites. Most of the work on updating the data and the finalisation of various chapters of the book was done in Hastings, New Zealand, where I spent five months with my son, Arun K. Singh and his family. There I got a congenial environment, free from all kinds of distractions to do my work. Arun provided me the required logistics support and helped with computer software, and my wife, Vimala Singh, provided me the needed inspiration and moral support to finish up the work in time. I am thankful to them all.

    Finally, I am thankful to the India Natural Resource Economics and Management (INREM) Foundation for providing me the needed facilities and a congenial environment for working on this project.

    KatarSinghHastings, New Zealand 18 February 2007

    Preface to the Second Edition

    Students and teachers of rural development received the first edition of the book very well. It had a long innings of over a decade. Recently, some of my colleagues and students suggested that I revise and update the book, and I also realised the need to do so. However, I did not find the time nor had a strong will to start the work. I also thought that some younger teacher would do a better job of writing a new textbook on the subject. But, as far as I know, no good textbook on the subject has since appeared. However, it was not this that got me started. The real impetus to revise the book came from no less a person than Mr Tejeshwar Singh, Managing Director, SAGE Publications, who wrote to me in October 1997 urging me to revise the book. I wrote back to Mr Singh in the affirmative and set a deadline for the end of January 1998 for myself. In the first week of January 1998, I received, along with New Year's greetings, an enquiry from him about the status of the book. As I was not able to make much headway until then due to my various other preoccupations, I had to seek an extension of the deadline, which was granted. Thereafter, he religiously sent me reminders until I finally wrote to him that the revision work was almost over, and that the manuscript would be couriered to him by the end of June. I kept my word this time. So the real credit for this edition of the book must go to Mr Tejeshwar Singh, and I am thankful to him for this, as also for his comments and his personal interest in this project.

    I have updated, substantially revised and augmented Chapters 2,3, 4, 11, 14 and 15, and dropped Chapter 8, as in my opinion, it did not serve any useful purpose, and merged Chapters 17 and 18 into one chapter on Implementation, Monitoring and Evaluation. The remaining chapters were also revised and updated wherever necessary. So this second edition of the book comprises 16 chapters. While revising them, I took into consideration the comments made by various reviewers of the first edition, the suggestions made by Mr Tejeshwar Singh, and the feedback that I received from my students and colleagues at the Institute of Rural Management (IRMA). The revised edition retains all the strengths of the first one, is trimmed of unnecessary matter and adds quite a few new things to most chapters. Like the first edition, this one also is primarily addressed to students, teachers, trainers and researchers interested in rural development, and practitioners working in rural development organisations. I hope readers will find it better than the first one.

    Many persons helped me in revising and updating the book. My wife, Vimala Singh, willingly (and many times unwillingly), allowed me to work long hours on holidays and in the evenings after office hours on weekdays. My son, Dr Anil Shishodia, being an economics teacher himself, helped me with data and other relevant literature, besides proofreading and correcting many chapters. As in the case of the first edition, my personal assistant, Mrs Lissy Varghese, aptly handled various secretarial and administrative chores, painstakingly word-processed the manuscript and saw to it that I met the deadline. Mr Eric Leo, my secretary, also helped a lot in word processing, making figures, tables and printing the text. Mr Oliver Macwan carefully word-processed all the tables included in Chapter 2. I am grateful to them all and thank them for their ungrudging and willing help and cooperation, without which it would have been very difficult for me to complete the revision of the book. Last but not least, I am highly thankful to Ms Omita Goyal, Managing Editor, and Ms Jaya Chowdhury, Chief Desk Editor, SAGE Publications, for processing the manuscript expeditiously and bringing out the book in such a short period of time.

    KatarSingh Anand 6 August 1998

    Preface to the First Edition

    This book is the outcome of more than two decades of my professional experience in teaching, training, research and extension activities in the field of agricultural and rural development. From July 1961, when I started my professional career as Senior Research Assistant in charge of a research-cum-extension project in farm planning, I have had diverse experiences ranging from handling ‘nuts and bolts’ type jobs to building conceptual and quantitative models of development. Most of the material presented in the book is based on my own ideas, observations and research, and has been tested in some form or the other in my undergraduate and postgraduate classes, and in various short-term training programmes at both the G.B. Pant University of Agriculture and Technology, Pantnagar, and the Institute of Rural Management (IRMA), Anand.

    The book consists of 18 chapters which are grouped into three parts. Part I comprises five chapters, which are devoted to an exposition of the meaning, objectives, measures, hypotheses and determinants of rural development. Part II contains eight chapters, which deal with rural development policies, policy models, policy instruments and selected rural development programmes followed in India. Part III includes five chapters which together cover various organisational and managerial aspects of rural development, such as planning, organising, financing, implementing, monitoring and evaluation. Thus, the book is a comprehensive treatise on rural development covering all the three important aspects of the subject—principles, policies and management.

    This book is written for all those interested in contributing towards, and acquiring knowledge about, rural development. More specifically, this book is addressed to teachers, trainers, researchers, students and agencies interested in rural development. In particular, it examines the meaning of rural development, its pace and level, the lessons learned from India's experience with various rural development programme, and how these programmes should be managed.

    In writing this book and in the development of my thoughts and ideas about agricultural and rural development, I have benefited a great deal from my interaction with my teachers, colleagues, students, people in the rural areas, policy makers, planners, bankers and from the writing of many development theorists. To name them all would be impossible and to mention a few invidious. I extend my sincere thanks to them all. My greatest debt is to my parents, Late Shrimati Anandi Singh and Late Shri Rajvir Singh, who taught me, through their work and attitude, the basics of farm and household development and management. My formal education has served only to corroborate and enrich what I learnt from them. I thank my wife, Vimala Singh, who kept me free from various household responsibilities and spent many lonely evenings and holiday ungrudgingly while I worked on this book.

    I am extremely grateful to Shri R. N. Haldipur, Director, IRMA, who granted the permission and provided the necessary facilities and a congenial environment for writing this book, and whose advice and encouragement during the course of this work was invaluable. My sincere thanks are also due to Dr G. V. K. Rao, former member, Planning Commission and currently a member of IRMA's Board of Governors, for his valuable advice and suggestions to improve the book.

    Finally, I want to thank my secretary, Mrs Lissy Varghese, who so willingly and carefully typed the final as well as earlier drafts of this book. Her cheerfulness, meticulous work and patience made writing easier, quicker and more of a pleasure.

    KatarSingh Anand February 1986
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    About the Author

    Professor Katar Singh is currently Honorary (Founder) Chairman, India Natural Resource Economics and Management (INREM) Foundation, Anand which is a nongovernmental academic organisation committed to promoting teaching, training and research in natural resource economics and environment management, and improving natural resource management policies and programmes. He holds a Ph.D. in agricultural economics from the University of Illinois, Urbana-Champaign, USA, and has done postdoctoral research and advanced course work in natural resource economics from the Department of Agricultural and Resource Economics, Oregon State University, Corvallis, USA and from the Workshop in Political Theory and Policy Analysis, Indiana University Bloomington, USA.

    He has over 45 years of teaching, training, research and consulting experience in the areas of agricultural and rural development, and natural resource economics and management. He was Director and RBI Chair Professor in the Institute of Rural Management, Anand (IRMA), India, and has also had a short stint as Director, Bankers Institute of Rural Development, Lucknow. He has also taught at the GB Pant University of Agriculture and Technology, Pantnagar, India.

    He has coordinated and conducted several research and consultancy projects funded by national and international agencies. A prolific writer, he has published over 120 articles and papers in professional journals of repute and authored/coauthored nine books, including a textbook Rural Development: Principles, Policies and Management, Second Ed. (SAGE, 1999), and another entitled Environmental Economics: Theory and Applications (SAGE, 2007), coauthored with Dr Anil Shishodia. He has also coedited three books, namely, Co-operative Management of Natural Resources (SAGE, 1996), Natural Resource Economics: Theory and Application in India (Oxford & IBH, 1997), and Designing and Managing Rural Development Organisations (Oxford & IBH, 2000).

    Professor Singh is a life member of numerous bodies including the Indian Society of Agricultural Economics (ISAE) and the Indian Association of Public Administration (IAPA). He has been recipient of several awards and honours, including Rathindra Puraskar 2003, awarded by Visva Bharati University, Santi Niketan, in recognition of his significant contribution to education in rural development and Sir Chhotu Ram National Award for the year 1996–97, awarded by CSS Haryana Agriculture University, Hisar, in recognition of his outstanding research work in the field of agriculture and rural development.


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