Developing A Rural Economic Model To Make Villages Rich And Prosperous

Discussion in 'Economy & Infrastructure' started by HariPrasad-1, Dec 5, 2018.

  1. HariPrasad-1

    HariPrasad-1 Senior Member Senior Member

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    Hi guys,

    As all of us know, there is a great migration from villages to cities. Villages are becoming less and less livable places in most of the areas. How can we make villages more livable is a big question. If we can build a proper model of for villages and can build something worthwhile, we can stop migration from villages to cities. Core to this model is economy, health facility and education. We should build a nice economic model for rural economy with focus of farming, animal husbandry, cottage industries, handicrafts etc. So far as health care is concern, we can educate people about healthy life style, herbal medicines etc. In education, we can provide build a very nice school among few villages. we can give them training in handicraft , stitching etc.

    Let us discuss how can we build a rural model for the development of villages.

    A humble request to moderators not to merge this thread with other like they did to my beautiful thread "How to make India grow fast and make rich"
     
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  3. HariPrasad-1

    HariPrasad-1 Senior Member Senior Member

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    Our great scientist and thinker Dr. A P J abdul kalam gave us a great model of rural development. He proposed making a rural cluster of around 20 villages and build all rural amenities in that cluster. Villages in the cluster should be inter connected with roads and the cluster itself should be connected to highway or city by road. This cluster should have school, college, hospital etc into it. it should be by and large and independent units with minimum dependency on cities and outside world.

    https://en.wikipedia.org/wiki/Providing_Urban_Amenities_to_Rural_Areas

    Introduction[edit]
    To make the basic amenities like good roads and drinking water accessible to people even in remote villages, The Ministry of Rural Development (MoRD), Government of India has re-launched the scheme Provision of Urban Amenities in Rural Areas (PURA) as a Central Government scheme during the remaining period of the eleventh five-year plan. MoRD, with support from Department of Economic Affairs and the Asian Development Bank (which provided the technical assistance), intends to implement the PURA scheme under a Public Private Partnership (PPP) between Local executive bodies like the Gram Panchayat(s) and private sector partners. The vision of the scheme in particular is providing dual benefits like rural infrastructure development coupled with economic re-generation activities; it is the first attempt of the government in this direction of delivering basic amenities and infrastructure through this model to people in remote rural areas. All the efforts are directed to obtain dual benefits, provide a different framework for the efficient implementation of rural infrastructure development schemes and benefit from the private sector efficiencies in the management of assets and delivery of services.

    Background[edit]
    After India gained its independence, despite of a plethora of welfare schemes and activities aimed at rural areas in successive five year plans, a skewed development model increasing the disparities between the rural and the urban areas has proliferated. Lack of livelihood opportunities, modern amenities and services for decent living in rural areas lead to migration of people to urban areas. There are wide gaps in the availability of physical and social infrastructure between rural and urban areas. To address these issues, the President of India A.P.J. Abdul Kalam highlighted a vision of transformation of rural India by launching a large-scale mission for Provision of Urban Amenities in Rural Areas (PURA).

    On the eve of India’s 54th Republic Day, in 2003, Dr. Kalam addressed the nation explaining them his vision for a new India. He visualised providing four elements of connectivity: physical connectivity, electronic connectivity, knowledge connectivity leading to economic connectivity of rural areas and where there would be a lesser urban-rural divide. PURA was envisaged as a self-sustainable and viable model of service delivery to be managed through an implementation framework between the different stakeholders involved, namely local people, public authorities and the private sector. The Government support would be in the form of finding the right type of management structure to develop and maintain rural infrastructure, empowering the management structure and providing initial economic support. Subsequently, the Prime Minister of India also announced implementation of a PURA scheme in his Independence Day speech on 15 August 2003.

    Mission[edit]
    "Holistic and accelerated development of compact areas around a potential growth centre in a Gram Panchayat (or a group of Gram Panchayats) through Public Private Partnership (PPP) framework for providing livelihood opportunities and urban amenities to improve the quality of life in rural areas"[3]

    Vision[edit]
    The vision of transformation to a 'developed' India can only be realised if we launch a mega mission for empowering the rural people. Creation of Physical, electronic and knowledge connectivities leading to economic connectivity in villages. Such a model of establishing a circular connectivity among the rural village complexes will accelerate rural development process by empowerment. sundarchinna was rural development programes

    Strategy[edit]
    Public–private partnership (PPP)[edit]
    The Mission & Vision of PURA is to bring together the experience & expertise of both public & private players to achieve the objectives which are proposed to be achieved under the framework of PPP between Gram Panchayats and private sector partner. Core funding shall be sourced from the Central Sector scheme of PURA and complemented by additional support through convergence of different Central Government schemes. The private sector shall also bring on board its share of investment besides operational expertise. The scheme would be implemented and managed by the private sector on considerations of economic viability but designed in a manner whereby it is fully aligned with the overall objective of rural development. To attract the private sector, there is a need to design the scheme that would be 'project based' with well defined risks, identified measures for risk mitigation and risks sharing among the sponsoring authority (Gram Panchayat), Government of India, State Government and the Private Partners

    Pilot-testing and up-scaling[edit]
    Seven pilot projects were implemented during the 10th Five Year Plan in Basmath(Maharashtra), Bharthana (Uttar Pradesh), Gohpur (Assam), Kujanga (Orissa), Motipur (Bihar), Rayadurg (Andhra Pradesh) and Shahpura (Rajasthan). An evaluation study of these pilot projects was carried out by National Institute of Rural Development (NIRD) which identified the necessity of community and private sector participation as essential factors and the need for factoring infrastructure development with lead economic activities and livelihoods creation, requirement of project site selection on the basis of growth potential and need for convergence with other schemes of the government. Based on the findings of the evaluation study by NIRD, Comments, Feedback received from different stakeholders like various Ministries/Departments, feedback received during consultations with private sector representatives and officials of State Governments, and the recommendations of the consulting team of Asian Development Bank, the scheme of PURA has been restructured for implementation on pilot basis during 11th Five Year Plan[4] as a Central Sector scheme Through the implementation of proposed pilot projects in different parts of India, the unique features of this scheme would be tested on the ground so providing lessons for upscaling in the future and extending PURA throughout the country. Besides, the entire process is intended to strengthen the institutional ability of a Gram Panchayat to undertake PPP and help pilot-test the viability of PPPs in rural infrastructure development.

    Planning[edit]
    For a Scheme of this magnitude and importance and the impact it could have in the future and change the very face of Rural Areas in a developing country like India, Proper back ground research and planning has to be undertaken for the success of this project. The Private Partner selected after properly analysing his financial and operational abilities to undertake PURA projects shall identify a Gram Panchayat, a cluster of geographically contiguous Gram Panchayats for a population of about 25,000– 40,000. Whereas, the cluster would be the project area, there may be sub-projects to cover each of the Panchayats within the cluster. Alternatively, a large single Panchayat could individually provide critical mass to make the project viable. In the pilot phase, the Private Partner is given the flexibility to identify and select the Gram Panchayat(s) for undertaking PURA projects based on their familiarity with the area or past experience of working at the grassroots level. In this identified PURA area, the Private Partner shall plan for the development/re-development of selected infrastructure services along with economic activities, after undertaking baseline studies

    Identification of infrastructure needs and urban amenities[edit]
    The different Amenities & activities can be divided into three types: 1)Amenities/Activities to be provided under MoRD Ministry of Rural Development) Schemes (Mandatory), 2) Amenities to be provided under Schemes of other Ministries (non-MoRD Schemes), 3) Add-on Projects (Revenue earning, people centric projects).[5]

    MoRD Schemes Non-MoRD Schemes Add-on Projects
    Water and Sewerage Village Street Lighting Village linked tourism
    Construction and maintenance of Village Streets Telecom Integrated Rural Hub, Rural Market.
    Drainage Electricity generation Agri – Common Services Centre and Warehousing.
    Solid Waste Management Any other rural – economy based project.
    Skill Development & Economical ability
    Business model[edit]
    The essence of the PURA scheme is to have the best of both the worlds Private & Public, The leveraging of public funds with private capital and management expertise for creation and maintenance of rural infrastructure.

    Funding[edit]
    Funding for the various projects taken up under the PURA scheme depending on the priority, relevance to the objectives of the government may come from four sources: MoRD schemes, non-MoRD schemes, private financing[6] and Capital Grant under PURA.

    MORD schemes[edit]
    As the main vision of PURA scheme is the convergence of various schemes and a sustainable framework for long term maintenance of assets keeping in view the long term vision of the government, most of the capital expenditure will have to come from government schemes. Only community development schemes would ordinarily be included as the private partners would find it difficult to manage individual beneficiary schemes

    Non-MORD schemes[edit]
    The private partners selected shall also be responsible for delivering certain services under schemes of other ministries, as per the guidelines of those schemes. Alternatively, the concerned Ministry may make funding available if it finds the service to be very relevant to the local people there and under those schemes through DRDA.[7]

    Private funding[edit]
    In some cases and schemes It is possible that the essential infrastructure may not get fully funded by Government schemes to give equal responsibility and ownership to the private player in such instances wherein the Developer shall invest some capital of its own to fund the CAPEX of such infrastructure and to meet the operations and maintenance (O&M) costs. Financing of commercially viable add-on projects will be done fully through private funding.

    Current status of PURA[edit]
    Failure of PURA[edit]
    Former Rural Development Minister Jairam Ramesh on 24 February 2012 launched the restructured PURA scheme that combines rural infrastructure development with economic regeneration in Private Public Partnership (PPP) mode and seeks to harness the efficiencies of the private sector. He slammed former president APJ Abdul Kalam's concept of PURA(Providing Urban Amenities in Rural Areas) as a failure. Ramesh said that while the PURA Launched by Kalam has failed, the reworked PURA will succeed.[8] The minister was optimistic about the success of the new PURA because of the difference in the objectives. He was of the view that, now the focus was on water supply, sanitation, physical infrastructure rather than knowledge connectivity.

    Extension to 2000 new towns[edit]
    The Rural ministry plans to reform one of its ambitious yet not so successful programme – Provision of Urban amenities in Rural Areas (PURA) – to facilitate creation of urban infrastructure in around 2,000 new towns that have been identified by the 2011 decadal Census. It is also trying to restructure the old PURA objectives laid down by the then President[9]

    Under payment of wages[edit]
    The Prestigious scheme proposed providing livelihood and urban amenities in compact areas around a potential growth centre in Gram Panchayats through Public Private Partnership (PPP) framework to provide guarantee employment to rural areas so that they could have an assured income for at least 100 days of a year. the scheme is now facing rampant corruption, cases of underpayment of wages have been received by the government from all over the country.[10]
     
  4. ezsasa

    ezsasa Senior Member Senior Member

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    Yes, I am a proponent of more economy in villages.

    One of the patterns that need to be looked into is to how more cash can be retained in the village.

    Fundamentally what is happening in Agri sector is that the seeds, farm equipment purchases is driving the cash flow away from the villages and into cities.

    Research needs to be done to retain atleast 50% of cash earned by the village thru agri sales is retained in the village. Once sufficient cash is retained in the village, cash flow will sustain the families in the village.


    Once this happens, every thing else will follow.
     
  5. HariPrasad-1

    HariPrasad-1 Senior Member Senior Member

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    I think we have to look back at rural economy and see how it used to function. If you destroy that structure, it will be very difficult for rural economy to survive. Main drivers of economy should be agriculture, waste utilization, economic use of water and water conservation. I will write in detail about each one.
     
  6. Hari Sud

    Hari Sud Senior Member Senior Member

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    Village and farmer prosperity or lack of it is not in theory as described in Hariprasad-1 lead article above or extending loans to them as the UPA and Congress Party head honchos did for many years. It is the division of land which happens when the older generation passes into the new.

    Let us see, a profitable 10 acres land farm gets divided into his children as the generational change happens. The subdivided plots are not profitable even though the amount of output increases with use of fertilizers and pesticides. Now a profitable 10 acre plot has made the offsprings into just subsistence farmers, hardly able to support themselves. It results in economic lot of farmers tilling the land go from bad to worst. The forgoing is the true reason of farmer’s desperateness expressed in seeking more and more aid and waiver of previously obtained aid. They change their political affiliation from one party to the other, each promising waiver but can do nothing.

    There is no system in the society to prevent the division of the farm when one generation passes the farm on to other. Since 1960, two generational changes have happened. The land has been divided already two or three times. The farmers are tilling an uneconomic farming model. If society works to redress this issue, their will be no need for huge loans or their waiver. Quite a few subsidies extended will not be needed. The political issue today is to find work to the idled children.
     
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  7. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Veteran Member Senior Member

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    • Minimize the monopoly of Gram Panchayats, let them have a mayor or something like a D.C. in every district. Justice should be through district court.
    • End open defecation. Modi government is achived only 95% accessibility of toilets, usage may still below 80%. Things have improved for sure but government figures are unrealistic as per as far I know about people's mindset. It won't end before 15 years.
    • Instead of imparting money & making more & more loos which will never be maintained, criminalize open defecation and make it mandatory to have an indoor toilet. See effect thereafter.
    • Get some taxi pod, monorail or another kind of cheap infrastructure to connect villages to cities so that more & more people can commute.
    • FORMALISE EVERYTHING. Without FORCED FORMALISATION, everything in India will keep moving at snail's pace usual.
     
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  8. kstriya

    kstriya Regular Member

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    I would rather say use bio fuels which can accelerate rural income and make farming profitable
     
  9. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Veteran Member Senior Member

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    Add bio fuels to above. Khaap panchayats have screwed villages.
     
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  10. Darth Malgus

    Darth Malgus Senior Member Senior Member

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    I was watching speeches of Sadhguru and he had some brilliant ideas to improve the quality of life of people in villages. Am at work so can't post any videos, Will try to post relevant Videos, once I reach home.
     
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  11. YagamiLight

    YagamiLight Regular Member

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    There is not a single country in the entire world which has a industrialised/developed economy while still having majority of the population living in villages.
    To put it on simpler terms, economic development and urbanisation goes hand in hand be it USA, France or be it Japan / China. This is because cities are very efficient way for specialisation in economics which is how you get economic development. This basic won't change just for the whims of the bhakthals. So sorry to burst your rather pathetic bubbles - development of villages to the level of cities just isn't going to happen. This however doesn't mean villages won't become better off economically than before, which is happening right now. But this obsession with making rural economy rich, which is usually implied in relation to cities, is stupid to say the least
     
  12. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Veteran Member Senior Member

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    India's urbanization rate is enough to get a larger fraction of population living in cities than villages in few decades. Less than 3!
    I thought you're a leftist and here you're pitching against villages.
    Yeah, villages can never come across in neck with cities in quality of life but that doesn't mean that people living in villages are to be neglected.
    If they are developed, educated and more civilized before settling in cities, urbanization will be more civilized.

    And if you haven't planned anything, you know worst countries to live in world too are either highly urbanized or have damn high rates of urbanization.
     

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