Historical Background of Rural Development: Chapter-V
Historical Background of Rural Development: Chapter-V
HISTORICAL BACKGROUND OF
RURAL DEVELOPMENT
CHAPTER- V
5.0 Introduction:
Rural Development, as such is not a new topic to the developing countries, because
many developing nations have been practising and promoting rural development for
decades and of course many of them have achieved significant success in their efforts
especially in education, health care and family welfare, poverty eradication, self-
and so forth.
genesis, which may direct the authorities for its effective implementation in future.
Many programmes of rural development were conceived and implemented for the
development of Indian society and most of them failed because of either their
provide the full benefits to the society. Therefore, the changing theme of rural
development and its associated schemes, which have been implemented by the Central
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the people of the state, should be viewed critically here to understand the salient
In India, the work of ruml reconstruction may be traced back to the middle of nineteenth
century. Several eminent persons have contributed their might for rural development. It
is necessary to know about their past attempts, which have given the present shape of
• the dynamics of the programmes and changes, which have occurred over the period.
Rambhai (1959) Pandey (1967) categorised the activities of rural reconstruction works
British government took over the governance of India from a trading company called
the East India Company in 1858, after the first attempt to gain Independence by the
Indians in 1857 called the Sepoy Mutiny. The basic British policy in India was
governing political philosophy of Great Britain and was not concerned with the socio-
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economic development of the people. But the British government could not adhere to
such a policy for long; it was the famine in India, which forced the British Indian
Government to think about the people of India. The frequent recurrence of famines
forced the state administrative machinery to seize the food grain stocks and make
arrangements for the distribution among the fu.mine-affected people. All this was done
without any apparent legal sanction, motivated as the action purely was by
humanitarian act, and the practice was not backed by any executive or legal sanction in
the beginning. Legality and legitimacy were provided later. Rural development as a
department of agriculture in the government. It was Lord Curzon who was Viceroy of
agriculture at provincial levels. The Northwest province (at present Uttar Pradesh) was
Research Institute at Pusa (Bihar). This was followed by the Indian Agriculture Service,
which was constituted in 1906. Even though the colonial primary objective was on
The period of experimental (or the National Movement period) is marked by various
the first political attempt in India to mobilise the villagers and ruralise the politics. The
spinning in every house and hand weaving which was an ancient and honourable
practice of the people. Khadi became India's freedom dress, and its adoption by the
Congress was the first genuine organised concern for the rural poor and the spinning
wheel economy adopted by the Mahatma was the first popular exercise for rural
propagation ofthe national language were some ofthe main programmes started during
this period. Soon, Sevagram and Wardha, where these ideas were translating into action,
The new wave of'back to the village' movement quickly spread far and
wide and a spurt in voluntary activities in the field of rural development occurred.
Rabindra Nath Tagore set up the Sriniketan Institute of Rural Reconstruction in 1921
with the aim of making the rural population self reliant and self-respectful (Sriniketan
Bulletin 1946). In the same year, the Martandam experiment was started under the
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leadership of Dr. Spencer Hatch of Young Men Christian Association being about a
complete upward development towards a more complete and meaningful life for rural
Mr. F.L. Brayne, the district Collector of Gurgaon, started an experiment of rural
reconstruction in 1927 based on the virtue ofhard work, thrift, self respect, self control,
of rural amelioration to promote the will to live better and a capacity for self-help and
independence near about 7,000 displaced persons were rehabilitated in Nilokheri town,
S.K. Dey, former Minister for Community Development and Cooperation was the
moving spirit behind this project, the scheme was also called as Mazdoor Manzi/.
rural areas of Etawah district. The project aimed at an over all development of the area
(Mayer 1957). The problem was to ascertain how quickly these results may be attained
and remain permanently a part of the people's mental, spiritual, technical equipment
and outlook after the special pressure is lifted. This project had paid off the investment
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real values.
The rural concern of the government thus by no means entirely absent under colonial
rule, but it was only after the country's independence that rural development acquired a
high level of priority. The dominant philosophy of our constitution is justice in the
social, economic and political walks of life. Gandhiji was emphatic about rural India
and because of his intervention, local self-government had found place in the Directive
Principles of the state policy and rural reconstruction drawn the attention of central
government and acquired a high level of priority in the Five Year Plans. The various
programmes of rural development adopted by the government under our various Five
times in various Five Year Plans. Many of these programmes were planned and
implemented due to the necessity of the situation that had arisen in the country. At the
same time, many programmes were also launched due to the political interest of the
country's ruling parties. However, whatever programmes came in the name of rural
development were implemented by the concerned authorities and agencies for the up-
India's Five Year Plans (Table-5.2). This is evident from the high proportion of total
public sector outlay of each plan that is allotted to agriculture, allied activities and
community and rural development, major and medium irrigation projects, flood control
and village and small-scale industries. During the Seventh Plan, some new
established by bifurcation from its parent Agriculture Ministry was established. Out of
the many department and ministries in the country, maximum allocation during the
particularly known as 'Democratic Planning and growth with justice.' It has been set
commencement of the Five Year Plans. This democratic planning is based on the active
programmes. Thus, in the early 1950s, the Community Development programme was
launched to obtain the active participation of the people in their own development, then,
Panchayati Raj institution was also revitalized to have the fullest cooperation of the
This was explained by Jaya Prakash Narayan, who observed and said, "There is so
much talk of building from below, building from the lower levels, planning from the
lowest levels. Everybody is preparing these phrases because each five-year plan used
them, but who is there to build from below, to plan from below? Everybody runs to
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Delhi, everybody runs to Bombay, no one seems inclined to go down to the people
except at election time perhaps. So words are being uttered without conviction."
decentralized (or horizontal), and in such type of vertical planning local problems never
receive adequate attention. All programmes are planned and directed by the centre, the
implementation and machinery are uniform while the situation at ground level is
diverse, leading to poor results and it defeats the objectives of the programmes. The
quality and quantum of development are far from satisfactory in substance and speed.
Despite the plethora of schemes and the huge amounts of money being spent on it, the
unemployment etc. Regional disparity is widened as developed areas become more and
more developed while backward regions remain backward. The gap between 'the haves'
and 'the have not' is also widened. As a consequence, the social fabric itself is under
severe strain. The worst hit is, of course, the poor people for whom development is
supposedly meant.
Nagaland, a tiny state in the Indian union, is in the eastern most part of
the country. Its remoteness and the mountainous conditions of the state have made the
consider the imperatives of both geography and its history. The state had experienced
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the process for socio-economic development plans directed by the Central Government.
It is felt that this process now needs to be modified and preparation new guidelines to
suit the local situation in the state. It is felt that without suitable changes, the process of
planning may end up causing irreparable damage to the rural structure. The planning
(b) The ViUage Council: Traditionally, villages in Nagaland are located on hilltops,
which are steep with high altitudes ranging up to nearly 3,000m of elevation. Naga
villages are, infact, have inherited an age-old history of self-governance. (Mills 1926)
remarked that which is the real political unit ofthe tribe and it is the village government
that governs and administers over the entire people of the village. While another
European, W. C. Smith wrote that Naga villages were bound together by social,
political and religious ties. The village society had been largely egalitarian and there
body in matters relating to people and the village, which is the oldest institution in all
Naga villages (Nakhro 1997). This in official parlance came to be known as "Village
Council" under an act passed by the state government known as the Nagaland Village
Council and Areas Council Act in 1973, and it was further amended in 1978. The
Village Council consists of members representing each "khel" (or clan). All members of
the clans in the village choose their representatives. Members of clan's representatives
appoint the head of the Village Council. Disputes, if any are settled according to the
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customary laws of the land with Do Bashi (interpreter) and Gaon Burah 's (Village
headman) assistance. The Village Council is the sole custodian and manager of the
community property that belong to the whole village. Functioning ofthe village council
is consensus among members and not necessarily by majority rule but with deep anxiety
to maintain harmonious human relationships within the clans I khe/s and the village as a
whole. Sharing of resources (land) in the name of clan community, khel community
land, village community land and individual land is yet another notable feature. All
members of the village have invariably a piece ofland to cultivate; there are neither rich
people nor wage earners in the village. Each and every village is independent. The value
system is such that even a poor person can become the chief provided he deserves it.
Thus, the traditional Naga Village Council was the local powerful structures and they
(c) The Village Development Board: The strong community based local self-governance
of the Village ·council in Nagaland, the common property (lands) and its usage systems
made the planners rethink on the development plans and administration and they decided
that the money for various development programmes be kept as community fund
(common property). The villagers themselves were given chance to formulate schemes I
plans for the development and progress of the village or help the needy persons in the
village. It is found here that the decentralized planning and implementation of the
development programmes are taken care of by the grass-root level itself. Consequently,
the name Village Development Board (VDB) was formulated under provision of "The
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Nagaland Village and Area Council Act 1978. " The Act empowers the traditional
the Village Council to undertake development works of the village. VDB is entrusted
with development and management of community funds. The Village Council concerned
chooses the members of the VDB and their tenure is usually three years unless decided
otherwise by the Village Council. The minimum members ofthe VDB should not be less
than five and the maximum would not exceed twenty-five. At least one fourth of the
members should be women and twenty five per cent of the fund is reserved for
development ofwomen.
As per the Nagaland Village and Area Council Act 1978, many
administrative, executive and judicial functions and powers are given to the Village
Council. The salient features of the act provide strength for the micro-level potential
(i) to identify, select and formulate the village development schemes as per
(ii) as the most popular and unique institution of the state that is assigned with
received from time to time and implements all the development programmes
of the village.
The VDB operates its funds under Grant-in-Aid, Matching Cash Grant,
Jawahar Rozgar Yojana (JRY) and other programmes through suitable accounts in the
bank. The Chairman and Secretary ofthe Management Committee ofthe VDBs operate
accounts jointly. It is also the duty of VDB to implement all development I social
welfare programmes of the Government, launched from time to time. The Board
functions under the directives issued by the Village Council and the State Government.
Chairman ofthe VDB and the management Committee ofthe VDB in their respective
functioning of VDB programmes at the state level. At the district level, the Deputy
Commissioner looks after all such activities in the blocks as well as in the village
technically approves all plans after concerned Block Development Officer verifies the
same. The BOO has to look after all the VDB works and provide guidance to the
providing model plans, which are prepared under guidelines issued by the Government.
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(i) Resources of the Village Development Board: There are two sources of funds for
VDll. The first and the foremost source is the common fund of the village raised from
the contribution from the villagers themselves. As stated earlier, the Common Fund is
the root of the emergence of the VDB programme. And the Matching grant is the
Government contribution to the village common fund, which is equal to the amount of
common, fund raised by the village and invested in minimum 5 years Fixed Deposit
account in the bank. The matching grant is given subject to two conditions. First, it
should be invested in a fixed deposit of not less than 5 years duration. Second, it should
be reinvested continuously, so that, the common fund of the village invested in fixed
deposit should always grow through continuous reinvestment. This scheme was initially
introduced in 1978 in Phek District and slowly covered all the villages in Nagaland. In
order to have a balanced distribution of resources among the villages, an upper limit of
Rs.75,000/- was fixed by the Government, which was later raised to Rs.l,OO,OOO/- in
1990. With good performance of the VDBs and the villager's interest on it, state
Government has once again raised the amount to a maximum ceiling limit of
Rs2,50,000/- during 1995-1996. This amount serves as security for the villagers with
the financial institutions for obtaining loan. This is one of the best schemes, which is
operating successfully under VDB. The state Government has a financial crunch at
present situation but the VDBs have enough money in their fixed deposits and grant-in-
aid accounts against which they can borrow any amount from bank. According to
reports, there are about Rs.l 0 crores in the bank accounts of VDBs in Nagaland, which
All the VDBs have to operate suitable Bank account for different sources
such as Grant-in-Aid, Matching Cash Grant, Jawahar Rozgar Yojana and other
programmes as provided in VDB Model Rules 1980. Each and every VDB has to keep a
current bank account and Fixed Deposits in bank and no VDB shall be allowed to
withdraw their Fixed Deposits, as it is the main basis fur the existence of the VDB.
When the term deposits expire, the concerned DCs I ADCs shall direct the VDB to
Rozgar Yojana funds form other major sources of funding which are distributed to the
VDBs at the rate of Rs.750 and Rs.400 per household of the tax paying villages. The
number of households recorded in 1991 census was taken as the basis for fund
are nodal agencies for planning and implementation of the various development
programmes; BOO, District Planning Board and Rural Development Cell help and
provide necessary guidance. The Deputy Commissioner starts the process first by
sending the list of villages oflast year that paid house tax on whose basis the allocation
of grant-in-aid amount was made. The Village Council I VDB, upon receiving the
amount available for the year, can decide upon what activity would be taken up, and
then schemes are prepared as per their needs and the necessity of the village as a whole,
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and submit the proposed schemes to the BOO for scrutiny and onward transmission to
the District Planning Boards. The Directorate, Rural Development Blocks, provides
model schemes for grant-in aid, JRY and EAS to the VDBs in advance. Though the
officials assist in planning, the kind of works to be taken upon priority basis is purely
creation of durable assets and village infrastructures. Youth welfare schemes and
women's schemes with earmarked budgets are redeeming features of the VDBs. The
activities are mostly towards social aspect; however, income-generating schemes are
earning a monthly income of more than Rs.20,000/- as rent by some VDBs. To some
villages, the Community Bus, purchased from VDB fund is the only means oftransport
to their district headquarters. They transport vegetables, fruits, animals and other
household products to market and in return they bring essential commodities, household
items etc. back to their villages. The following are some of the activities of VDBs;
public well, water reserve tank, play ground, school building, minor irrigation, drainage,
community latrine, rest houses halfWay between the village and the khetis (fields of
cultivation), suspension bridge, rice mill, community bus, maintenance of village road,
womenfolk, fishery ponds, social forestry, horticulture farming, rural housing etc. In
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addition to the above activities for the village communities, nearly l 00 percent of the
houses have been converted to CIG or RCC roofed houses from thatch roof. It is rather
slow but there is a change in appearance of the village itself after the introduction of
The VDB programme has made a remarkable progress in the state when
judged by the speed with which it has spread to all the recognized villages of the state.
The remotest and inaccessible villages are also at par with the rest of the villages in the
state because there is VDB in their village. In spite of the turbulent and volatile politics
in the state, VDB programme did not suffer any set back. Even if the state Government
is begging loan for financial deficits from the Central Government, each and every
VDB has kept a fat wallet in the bank. There has been a tangible improvement in the
span of time, which is not possible without the involvement of the VDB.
(iii) The VDB Model schemes: The State Government of Nagaland has framed rules
known as VDB Model Rules for identification of the schemes for individuals or
households. These model schemes include the following items along with the cost
amount of the scheme (bank loan and subsidy amount for those people below poverty
line). The following schemes are, Land development, Minor irrigation, Horticulture,
Fishery, farm forestry, Animal power, Sericulture, Bee keeping, Poultry, Dairy,
Piggery, Goatery, Duckery, Knitting & tailoring, Agricultural tools & implements,
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Carpentry, Blacksmithy etc. These are some of the model schemes the Department of
Rural Development has laid down for the people but the importance given to a scheme
is according to the interest and choice of the people. The department also has given
steps in the village, Village approach road, Public wells/water tank, Community
benefit sharing, active involvement ofthe people is also required for the success of the
dependant on how the people take initiatives for the implementation of the programme.
development programme. Community involvement is very strong and also the feeling of
oneness is a prestige for the Nagas. Thus, the success ofVDB in the state is because of
The state Government and the Department of Rural Development in particular is taking
keen interest in the activities of rural development at grass root level and the decision
was taken to allocate part ofthe Government ofNagaland's annual plan fund village-
wise instead of mere sector-wise as is the common practice all over. The village-wise
allocation was introduced from 1980-81 (financial year) under which every village
receives grant- in- aid at a specific rate for carrying out schemes of community
under different heads of rural development programmes during 1995-1996 and 1999-
2000 respectively. It is indicated that the maximum share 36.3% (Rs.ll25.00 lakhs)
went to Gmnt-in-aid to VDBs for community development work at village level during
1999-2000 followed by EAS, 33.82% share in 1995-96 and 18.0% in 1999-2000. BMS
for rural housing is another important scheme, which got a major share in the allocation
of fund for development, 22.46% share in 1995-96 and 21.59% share in 1999-2000.
Where as BMS for road development was 8.63% share and 7.36% share in 1995-96 and
etc., which were some of the important schemes in the 80s and 90s. Under Indira Awas
Yojana (rural housing scheme), Rs.200 lakhs in 1995-96 and Rs.l45 lakhs in 1999-2000
were allocated. Under Jawahar Rozgar Yojana an amount of Rs.260 lakhs (11.27%)
during 1995-1996 and Rs.210 lakhs (6.78%) during 1999-2000 were allocated (fable-
5.3).
The State Government have proposed the Ninth Plan for Central
Government approval, and the same was approved and allocation was made as shown in
Table-5.4. During the Ninth Plan, there was a total allocation of Rs.2006.43 crores to
the state government, out of which 25.66% share of the fund was kept under the head of
Social Service, 15.22% of the share for Tmnsport and Communication and only 14.39%
of the share for Rural Development followed by Agriculture and Allied activities with a
share of 12.96%.
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Table-5.4 The Ninth Five Year Plan (1997-2002) Outlays for the State of
Nagaland under Different Major Heads of Development:
SI.No. Major Heads for Development Total Outlays Percent
(Rs. in crore} to total
1. Agriculture & Allied activities 260.00 12.96
2. Rural Development 288.80 14.39
3. Special Area Programme 27.00 1.35
4. Irrigation & Flood control 57.00 2.84
5. Energy 119.65 5.96
6. Industry and Minerals 121.00 6.03
7. Transport and Communication 305.40 15.22
8. Science & Tech. and Environment 5.00 0.25
9. General Economic services 204.00 I 0.17
10. Social services 514.79 25.66
11. General services 103.79 5.17
Grand total 2006.43 100.00
Source: Five-Year Plan, Planning Commission, Govt. of India, New Delhi.
Rural development through VDB initiations is doing well as far as village community is
concerned. But it is also equally important that whether there is any improvement in an
respects. The absence of industrial sector in the state is another blow to the present
generation, where educated youth as well as school and college dropouts are unable to
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go for employment. As these groups of people are not in the position to go for
type of industrial units can help to some extent, which can generate employment
There is hardly any revenue for the state government to generate its own
resources (income) and thus, the state is fully dependant on Central Government for
financial assistance. Even though, crores of rupees has been spent in the name of
development every year, under different heads as shown above, there is very little
improvement being seen on the face of the rural people, especially those in the remote
areas. Village Development Boards are there at grass root level, but with this pace of
remote areas and approach to infrastructure facilities for the development are major
Notes:
1. Government of Nagaland has directed all the V .D.Bs to operate a joint account
(Saving Account), and all transaction is made through this bank account. Each
and every V .D.B in Nagaland has got a Fixed Deposit Scheme with a minimum
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