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By: K Parthasarathi
July 26, 2007
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(Author is a Chennai based freelance writer. Has contributed regularly
at Business line and Samachar.)
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The Road To Economic Development Rasik SWhile improving the urban infrastructure is very much essential, it
cannot be at the expense of development of rural side.
While launching long ago the Rs.1 lakh-crore Jawaharlal Nehru National
Urban Renewal Mission aimed at improving the urban infrastructure and
urban basic services in over 60 cities, our Prime Minister lamented at the
continued failure "to address the needs of the poor-such as drinking water
supply, sanitation, housing and social services to an increasing share of
urban population.
He spoke about the relentless and rapid urbanization and the faster
proliferation of slums, urban poverty, joblessness and crime. He felt the
need for providing the urban poor the land rights at affordable rates.
These sound good and are perhaps very necessary. But there is another side
to this chronic problem that has to be tackled differently.
The migration of lakhs of rural people from villages to the cities
swelling the populations has been there ever since the industrialization
of the country commenced but is more pronounced since the liberalisation
process was ushered in early Nineties. Such an internal migration can be
considered as a natural phenomenon where the surplus labour is lured from
the villages to provide the much needed manpower for urban industrial
growth.
This can also be viewed as socially beneficial because people were being
shifted from locations where their earnings were poor and living
conditions harsh to places where life could be easier and more
comfortable. But this has not happened as was expected.
The urban growth is much more than what it can absorb and provide jobs.
The percentage of urban population to the total which was 26% in 1991
(Census 2001) is expected to grow to almost near 50% by 2030.It is
pertinent to note that all this growth is not scattered in smaller cities
adjacent to the villages but largely to the bigger and metropolitan
cities. This is sure to result in urban centres breaking in their seams
setting in the decay process sooner or later. Such urbanisation has
already brought in its wake significant social, economic, and political
problems.
A large army of jobless, illiterate unskilled men provide a hunting ground
for undesirable groups to recruit. It is just not possible to sustain
urban development despite all good intentions and investment of money for
infrastructure to meet such a stupendous growth.
The liberalization that has been ushered since early Nineties has been
urban-centric and that too in selected places and sectors where the demand
is only for those with skills. Investors, particularly foreign, are choosy
about the places and the type of industry where they wish to invest. They
are not concerned about equitable development across the country.
IT industry crowd only around a few places and is not spread out in the
interior parts. The service sector too is naturally prone to big cities.
Even auto industries tend to cluster around big metropolitan cities. Close
to ports. The opening of the economy has not helped growth of the vital
agrarian sector and this segment is lagging considerably behind the
services and manufacturing segments. There has been no foreign investment
in agricultural and farm sectors resulting in very limited opportunities
to the rural unemployed.
The trade liberalization without a corresponding emphasis on the rural
sector is forcing lakhs off their lands, and the livelihoods of small
farmers and landless labourers are put in great jeopardy. Although poor
people in such marginal environments have an astonishing capacity to cope
with hunger and poverty there is a limit beyond which the suffering cannot
be endured.
Landless, jobless and with no social security, they look for greener
pastures in the cities based mostly on hearsay and shift in large numbers
to the harsh cities with nothing but high hopes and low skills. They find
later that surviving in cities, finding a shelter to live and a job to
earn is much more difficult.
Rural poverty may even appear preferable when they are forced to live in
overcrowded city slums with no potable water facilities in poor hygienic
surroundings leaving behind their long bonds with villages and its simple
people.
The unskilled jobs that can be found or generated are far less than the
numbers that migrate. The level of migration to cities has assumed
dropsical proportions that it can no longer be seen as beneficial. They
only heighten the unemployment problem in urban cities depriving at the
same time the rural areas of labour force when needed.
The emphasis in our economic growth has been slanted toward the capital
and knowledge intensive urban centers. With 75% of India"s population in
villages, it looks unfair to have the lion"s share of the economic
benefits going to the urban regions that house only 25% of the people. The
villages of India are not in the growth picture at all. This lop sided
development strategy cannot halt the unprecedented growth of urban centers
and the concomitant slums.
The economic experts who shape the destiny of the country are working to
attain an 9% growth but talk very little about the growth of agriculture.
This is never in their radar and its growth is naturally sluggish at a
meagre 2%. With agricultural growth on a low key we cannot stop the
rural-urban migration and the day is not far when the food security that
we pride ourselves today may also be in danger.
Rural labour will become scarce and urban population will grow unbridled
with most remaining jobless or in informal sectors. The urban explosion is
not a sequel to any demand for the unskilled labour in the cities but is
the result of impoverished villages with little avenue for reasonable work
through out the year. Such a denouement is the result of skewed policies
of the government.
It places a heavy fiscal burden on both the central and state governments
for providing urban services as can be seen from proposals like JNNURM.
While improving the urban infrastructure is very much essential not only
to attract investors but also to ensure sustained development of the urban
areas, it cannot be at the expense of development of rural side. There is
a need for proper balancing of the requirements. It is true the urban
poverty is more visible than the rural one.
The city slums and the inadequate and over strained urban facilities are
manifestations of the migration of the poor and the poverty in villages.
Tackling this problem of urban inadequacies and facilitating the lives of
the urban poor into one of comfort will only encourage further migration.
The solution to the urban poverty lies in the villages. Pouring vast sums
of money in the cities for improving the lives of urban poor and finding
them jobs would be treating the symptoms instead of the malaise.
It is in this context the government should work for the development of
rural segment as an overall national economic strategy. As Kemp Ronald
Hope Sr. Says in his book Development in the Third World "rural
development means the far reaching transformation of social and economic
institutions, structure, relationships, and processes in any rural area.
It conceives of the cardinal aim of rural development not simply as
agricultural and economic growth in the narrow sense, but as balanced
social and economic development- including generation of new employment,
equitable distribution of income, wide spread improvement in health,
nutrition and housing, greatly broadened opportunities for all individuals
to realise their full potential through education and a strong voice for
all the rural people in shaping the decisions and actions that affect
their lives."
The policies of the government should reflect such an integrated rural
development with the money found for this purpose. There should be a
strong commitment to usher policy changes that would secure equitable
distribution of land rights, improvement of agricultural technology and
the type of crops to be produced, market pricing of crops produced by
subsistence farmers and transportation net works.
The available scant resources should also take care of rural development
concurrently with urban development and directed at the unemployed. This
alone will contain the urban migration to some extent.
K Parthasarathi
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