Unit 2 Rural Development Programmes

Sriniketan Experiment Impact:

Rabindranath Tagore, a famous poet, witnessed the ● Introduced new farming techniques and skills.
poverty and hardship of farmers in East Bengal. He ● Promoted self-reliance and cooperation among
dreamt of improving their lives and making villages villagers.
self-sufficient and dignified. To achieve this, he started ● Empowered women through education and
the Sriniketan experiment in 1920, with the help of a economic opportunities.
British expert named Leonard Elmhirst.

Goals of Sriniketan Experiment: The Gurgaon Experiment

● Befriend villagers: Understand their problems
The Problem: In 1920, F.L. Brayne witnessed the
and work together to solve them.
struggles of rural communities in Gurgaon. People
● Learn by doing: Students got practical
faced poverty, poor health, and limited opportunities.
experience in farming, crafts, and other skills
needed to run a village. The Dream: Brayne envisioned a better future for
● Science meets tradition: Combine modern these villages – increased crop production, improved
knowledge with traditional practices for better health, and educated women.
results.
● Self-reliance: Train villagers to be self-sufficient The Plan (The Gurgaon Scheme):
in food, clothing, and other necessities.
● Cooperation: Encourage villagers to work ● Spreading Knowledge: Village guides were
together for the common good. trained to share information on better farming
methods, health practices, and women's
Key Activities: education.
● Demonstration farms: Showcased new farming ● Improved Farming: New seeds, tools, and
methods and trained villagers. techniques were introduced to boost harvests.
● Training in various crafts: Carpentry, weaving, ● Focus on Health: Health centers were
pottery, etc. to create additional income. established to provide medical care to villagers.
● Animal husbandry: Dairy, poultry, and ● Women's Empowerment: Training programs
beekeeping to improve nutrition and income. focused on women's education and skills
● Cooperative movement: "Dharmagola" - a development.
community rice bank where villagers could store
and borrow grain during tough times. Challenges:
● Women's empowerment: Mahila Samities
focused on women's education, health, and ● Limited Expertise: Village guides lacked
economic participation. technical knowledge, limiting the effectiveness
of the program.
Challenges: ● Lack of Ownership: Villagers weren't involved
in planning, so the project struggled to continue
● Limited government support hindered expansion. after Brayne's departure.
● Lack of research limited program development. ● Imposed Solutions: People weren't
encouraged to participate actively, hindering

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 long-term success. supported, making it difficult to sustain the
program.

The Marthandam Experiment

When and Where: In 1921, Dr. Spencer Hatch, an Baroda Experiment
American expert, started a project in Marthandam,
India, to improve village life. Overview:

The Goal: Make villages better in all aspects: ● Year: 1932

● Location: Baroda state (present day Vadodara,
● Spirituality: Strengthen religious values and Gujarat)
practices. ● Initiator: V.T. Krishnachari, Dewan of Baroda
● Mind: Improve education and knowledge. ● Goal: Rural reconstruction and development
● Body: Focus on health and well-being.
● Society: Build strong communities. Key Aspects:
● Economy: Create better opportunities to earn a
living. ● Comprehensive Approach: Aimed to improve
various aspects of rural life, not just agriculture
What they did: (education, infrastructure, etc.).
● Improved Living Standards: Uplifting the
● Model Center: Established a central location quality of life for villagers.
with: ● Self-Reliance: Encouraging villagers to be
○ Improved breeds of animals (cows, self-sufficient.
goats)
○ Beehives for honey production Implementation:
○ Demonstration plots for better crops
○ Training in weaving and other crafts ● Pilot Project: Began in Kosamba villages.
○ Tools and equipment for learning new ● Development Committees: Village-level
skills committees with officials and villagers for
● Self-help and cooperation: Encouraged planning and execution.
villagers to work together and solve problems ● State Rural Welfare Board: Provided guidance
on their own. and oversight at the state level.

Success Stories: Specific Initiatives:

● Egg-selling Club: Villagers formed a ● Promoting Cottage Industries: Programs

self-governing club to sell eggs efficiently. focused on income generation through activities
● Honey Cooperative: Learned modern like gardening, poultry, beekeeping, spinning,
beekeeping methods and sold honey together. and weaving.
● Revitalizing Panchayats: Strengthening
Challenges: traditional village councils for better
governance.
● Limited Money: The project didn't have ● Adult Education: Expanding educational
enough funding to continue long-term. opportunities for adults.
● No Government Support: The government
didn't provide much help.
● Reliance on one person: The project
depended heavily on Dr. Hatch's leadership.
● Volunteer Issue: Volunteers weren't financially

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Firka Development Scheme Etawah Pilot Project

Origin: Origin (1948):

● Launched in 1946 by T. Prakasam in Madras ● Initiated by Albert Mayer (American engineer) in

state (present-day Tamil Nadu). Etawah district, Uttar Pradesh, India.
● Supported by the U.S. Point Four Program and
Goals: the Government of Uttar Pradesh.

● Comprehensive Rural Development: Address Goals:

various rural issues, not just agriculture.
(education, economy, sanitation) ● Develop methods for rural development to
● Self-Sufficiency: Make villages self-sufficient improve living standards.
in basic needs. (food, clothing, shelter) ● Promote self-reliance through cooperatives and
● Gram Swaraj: Aligned with Gandhi's vision of community participation.
village self-governance. ● Test the project's scalability for wider
application.
Implementation:
Key Features:
● Focus: Firkas (administrative divisions) served
as development units. ● Focus on local resources: Utilized existing
● Phased Rollout: Started in 34 Firkas, then resources and knowledge for development.
expanded to 50 more. ● Multi-purpose village workers (VLWs):
● Decentralized Management: Introduced village-level workers to provide
○ Collectors oversaw districts. on-ground guidance and support.
○ Gram Sewaks supervised village groups ● Practical solutions: Prioritized solutions that
within each Firka. villagers could readily implement and maintain.
○ Collaboration between officials and
non-governmental agencies. Activities:

Key Areas: ● Improved agricultural practices: Introduced

better seeds, fertilizers, and implements.
● Infrastructure: Improved roads, ● Animal husbandry projects: Promoted livestock
communication, water supply. health and productivity.
● Governance: Strengthened Panchayats ● Infrastructure development: Improved roads,
(village councils). water supply, and drainage.
● Agriculture: Increased food production, ● Social development initiatives: Adult literacy
irrigation, livestock improvements. programs, farmer training, and community
● Cottage Industries: Promoted engagement activities.
self-employment through crafts like handloom
weaving. Impact:

● Increased agricultural production, particularly in

wheat.
● Improved living standards and infrastructure in
participating villages.
● Served as a model for India's Community
Development Programme.

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Challenges: Approaches to Rural Community
● Sustainability: Maintaining success after the
Development
project's initial phase and Mayer's departure in
1957 proved difficult. A. Gandhian Approach to Rural Community
Development

Core Principles:
Nilokheri Experiment ● Moral Values: Gandhian approach prioritizes
moral values like truth, non-violence, and
What Happened?
justice as the foundation for rural development.
● Religion and Spirituality: It draws inspiration
● In 1948, after India's partition, many people
from religious texts like Upanishads and Gita,
came from West Pakistan to live in India.
aiming for a society based on spiritual
● S.K. Dey led a project to help these people by
well-being.
building a new town called Nilokheri.
● Ideal Village: The village is the cornerstone.
Goals of Nilokheri: Gandhi envisioned self-governing villages
cooperating in a federation.
● New Homes & Jobs: Create a place where
people could live and work together. Key Features:
● Be Self-Sufficient: Grow their own food, make
● Decentralization: Power is vested in elected
their own goods, and not rely on others.
village Panchayats handling legislation,
● Learn New Skills: Get training in different
execution, and justice.
crafts and trades.
● Self-Sufficiency: Villages aim to produce what
What They Did: they need - food, clothing, shelter - reducing
dependence on external sources.
● Built houses and a marketplace for people to ● Village and Cottage Industries: Reviving
sell their goods. traditional industries provides employment and
● Started a training center to teach people new supports self-sufficiency. Gandhi wasn't against
skills like farming, carpentry, and weaving. appropriate technology.
● Made the swampy land suitable for farming. ● Trusteeship: Private property is acceptable,
● Built a school, hospital, and other facilities for but excess wealth should be held in trust for the
the town. benefit of the community.

Special Features:

● The project was called "Mazdoor Manzil", B. Tagore's Approach to Rural Community
which means "House of Labor" because Development
everyone worked together.
● Nilokheri was like a town and village combined, Tagore's Big Idea:
with everything people needed close by.
Rabindranath Tagore, a famous poet and thinker,
believed in solving problems in rural communities using
logic, science, and practical solutions. Here's what he
thought was important:

● Villagers Working Together: He encouraged

villagers to form cooperatives, where they could

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 help each other and become more applied to their practical skills.
independent. ● A Spirit of Service: Encouraging students to
● Using Local Knowledge: Tagore felt it was dedicate themselves to helping the villages
important to use the skills and knowledge that around them.
villagers already had. This would make ● Self-Reliance and Dignity: Helping students
solutions more effective and relevant to their feel good about themselves and teaching them
culture. skills they needed to live well in their villages.

Tagore's Rural Development Program: D. Reviving Local Crafts (Rural Industries):

A. Seeing the Problems Firsthand (East Bengal ● Bringing Back Old Skills: Tagore believed it
Experiment): was important to revive traditional crafts and
train young people and artisans in using new
● Life in Rural Bengal: Managing his estate in techniques.
East Bengal exposed Tagore to the difficulties ● Shilpa Bhavana: He established Shilpa
faced by villagers. This inspired him to work on Bhavana at Santiniketan to achieve this goal.
rural development.
● A Comprehensive Plan: His program included E. The Institute of Rural Reconstruction:
improvements in health, education, crafts,
farming, fishing, and weaving. ● Helping in Many Ways: The institute had
● Modernization Efforts: He introduced tractors different units that focused on farming, raising
for farming, furnaces for pottery making, and animals, crafts, health, education, and village
machines for husking rice. His goal was to organization.
create well-developed villages that were ● A Multifaceted Approach: Their work included
self-sufficient and confident. research, teaching villagers new methods, and
providing education.
B. Fighting Exploitation (Rural Bank):
F. Making Knowledge Accessible (Rural Library
● The Cause of Poverty: Tagore saw unfair System):
treatment by landlords, middlemen, and money
lenders as a major reason for poverty in ● The Importance of Reading: Tagore knew that
villages. libraries were important for learning, so he
● The Solution: He established Patisar Bank in established a central library for research.
1905, offering loans with lower interest rates. ● Local Libraries: There were also smaller
This helped villagers escape debt. libraries in villages to serve the community and
encourage reading and learning.
C. The Goals of Sriniketan Experiment: ● Unique Feature: Mobile Library (1925): A
special library with a village worker who
● Building Trust: Gaining the trust and friendship delivered books door-to-door, making
of villagers by showing an interest in their lives knowledge accessible to everyone.
and helping them solve problems.
● Learning by Doing: Bringing village issues into
classrooms and using the institute's farm to find
solutions.
● Practical Skills: Teaching students practical
skills like farming, raising animals, keeping
chickens, various crafts, keeping villages clean,
working together, and more.
● Science for Everyday Life: Providing students
with basic scientific knowledge that could be

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 Unit 1 Rural Planning & Development
\

Rural development is about making life better for Elements or Components of Rural
people in villages and rural areas. It focuses on helping Development.
them earn more money, have a better standard of
living, and overcome challenges like poverty and lack 1. Meeting Basic Needs: Everyone needs food,
of opportunities. shelter, clothes, healthcare, education, and safety.
Helping people get these things lets them improve
their lives.
2. Respect and Opportunity: People in rural areas
Scope / Importance / Need / Objectives deserve respect and a chance to succeed. This
in Rural Development means treating everyone fairly and giving them a
say in how things are run.
1. Boost Agriculture: Improve farming income with 3. Freedom to Choose: People should be free to
better technology, infrastructure, and markets. make their own choices, earn a living, and
2. Stronger Infrastructure: Build roads, bridges, and contribute to their communities. This includes
irrigation systems for better connectivity and protecting their rights and giving them access to
economic opportunities. information.
3. Better Living Conditions: Ensure affordable
housing, clean water, sanitation, and healthcare.
4. Empower Youth: Expand education and skill
development opportunities for rural youth. Importance or Reasons of Rural
5. Balanced Progress: Rural development is crucial Development for Creation of
for national progress due to its population and Sustainable Livelihoods
economic contribution.
6. Bridge Urban-Rural Gap: Create sustainable 1. Fight Poverty: Create jobs, improve access to
livelihoods in rural areas to reduce migration to resources, and teach valuable skills to help people
cities and promote equality. escape poverty.
7. Resource Management: Develop agriculture and 2. Fairness for All: Bridge the gap between cities
manage resources wisely for long-term benefits. and rural areas by creating equal opportunities.
8. Increase Well-being: Raise incomes, improve 3. Enough Food for Everyone: Support sustainable
access to basic needs, and promote self-reliance in farming to produce more food and improve
rural communities. nutrition.
9. Tackle Challenges: Invest in infrastructure, fight 4. Protect the Environment: Manage resources
poverty, improve healthcare, and expand access to wisely and use renewable energy for a healthy
resources. future.
10. Sustainable Development: Utilize resources 5. Empower Communities: Give rural communities
effectively for a balanced and sustainable future. the tools to solve problems and make decisions.

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Rural Development Initiatives: ● Goal: Increases farm production and income in
areas with less rain.
A. Agricultural Sector:
5. National Watershed Development Project in
1. Pradhan Mantri Fasal Bima Yojana (PMFBY) - Rainfed Areas (NWDPRA):
Crop Insurance Scheme: ● Targets areas with poor land and water
● Provides financial support to farmers for crop resources.
losses due to natural disasters, pests, or ● Focuses on land and water management
diseases. through conservation activities (soil
● Farmers pay a small premium (maximum 2% improvement) and water harvesting structures.
for some crops) with the government covering ● Aims to increase cash flow through employment
the rest. generation and strengthen community
● Aims for quick claim settlement within 2 months participation.
of harvest. ● Goal: Improves land use, develops water
● Goal: Supports farmers' income and resources, and generates income for farmers.
encourages them to stay in farming.
6. National Mission for Sustainable Agriculture
2. Pradhan Mantri Krishi Sinchayee Yojana (NMSA):
(PMKSY) - Irrigation Scheme: ● Combines several programs to make farming
● Focuses on expanding irrigation coverage and more productive and environmentally friendly.
improving water use efficiency. ● Promotes location-specific farming systems,
● Provides solutions for water sources (building resource conservation practices, and efficient
canals, wells), distribution networks (canals), water management.
and farm-level applications (teaching new ● Focuses on soil health improvement, capacity
irrigation methods). building of farmers, and piloting models for
● Aims to create assured irrigation and promote rainfed farming.
water conservation practices. ● Goal: Makes agriculture more profitable,
● Goal: Increases the amount of land with sustainable, and resilient to climate change.
reliable water access for crops.

3. Paramparagat Krishi Vikas Yojana (PKVY) - B. Social Security:

Organic Farming Scheme:
● Promotes organic farming, avoiding chemicals 1. Atal Pension Yojana (APY):
and protecting the soil. ● Open to all Indian citizens between 18 and 40
● Helps farmers learn organic techniques, get years old.
certified, and sell their crops directly to ● Offers a guaranteed minimum monthly pension
consumers. between ₹1,000 and ₹5,000 after retirement.
● Empowers farmers through cluster-based ● You contribute a small amount every month,
training and marketing support. and the government adds some money too.
● Goal: Improves soil health, grows healthy food, ● After you die, your spouse will continue to get
and empowers farmers through cooperation. the pension.

4. Rainfed Area Development Programme (RADP): 2. Pradhan Mantri Suraksha Bima Yojana
● Targets farmers in areas with less rainfall. (PMSBY):
● Focuses on integrated farming systems to ● Provides accidental death and disability cover
improve yields and reduce risks from for a small annual premium (around ₹12).
unpredictable weather. ● If you die in an accident, your family gets ₹2
● Aims to improve the socio-economic status of lakh.
farmers in rainfed areas. ● If you are permanently disabled due to an

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 accident, you get ₹1 lakh or ₹2 lakh depending 3. Twenty Point Programme (TPP):
on the severity. ● Launched in 1975, with revisions in 1982, 1986,
● Open to people between 18 and 70 years old and finally in 2006.
with a bank account. ● Focused on priority areas like poverty reduction,
education, health, and infrastructure
3. Pradhan Mantri Jeevan Jyoti Bima Yojana development.
(PMJJBY): ● Aligned with the UN Millennium Development
● Life insurance scheme that offers ₹2 lakh Goals and SAARC Social Charter.
coverage in case of death due to any reason. ● Addressed issues like poverty, employment,
● Available to people between 18 and 50 years education, housing, health, agriculture, and
old with a savings bank account. environmental protection.
● Low annual premium of around ₹30.
4. Minimum Needs Programme (MNP):
C. Social Sector: ● Introduced in the Fifth Five-Year Plan
(1974-1979).
1. Mahatma Gandhi National Rural Employment ● Aimed to provide basic necessities like
Guarantee Act (MGNREGA): education, healthcare, water, sanitation,
● Guarantees up to 100 days of work a year for electricity, and housing in rural areas.
any rural family who needs it. ● Initially focused on eight components, with adult
● Provides much-needed income boost, education added later.
especially during lean seasons. ● Achieved significant progress in some areas, but
● Creates valuable assets for villages, like roads, faced challenges in others with uneven success
wells, and canals. across states.
● Empowers rural families, women, and
underprivileged communities. 5. Food for Work Programme (FFW):
● Over 2.3 billion workdays provided since ● Launched in 1977 to generate employment and
2005, benefiting countless lives. create rural infrastructure.
● Provided food grains as wages for manual labor
2. National Rural Livelihoods Mission (NRLM) on projects like road construction and canal
● NRLM aims to reduce rural poverty through job cleaning.
creation and income generation. ● Merged with the Mahatma Gandhi National Rural
● It provides better living standards by improving Employment Guarantee Act (MGNREGA) in
housing, water, and healthcare. 2006.
● Women empowerment is a key focus through ● Primarily aimed at providing food security and
self-help groups. promoting rural development through work
● Strong communities are built through opportunities.
collaboration and sustainable practices.
● DAY-NRLM targets 7 crore rural households 6. National Rural Employment Programme
across India. (NREP):
● Core values include inclusion, transparency, ● Launched in 1980 to replace the Food for Work
and community self-reliance. Programme.
● Implementation focuses on demand-driven ● Focused on creating employment and building
strategies and capacity building. durable community assets in rural areas.
● Eligibility criteria include active existence of ● Gave priority to landless laborers for work
self-help groups and adherence to opportunities.
'Panchasutras'. ● Merged with the Jawahar Rozgar Yojana (JRY)
in 1989.

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7. Rural Landless Employment Guarantee
Programme (RLEGP):
● Launched in 1983-84 to specifically target
landless workers.
● Guaranteed 100 days of employment per year
for landless households.
● Had similar objectives and implementation
mechanisms as NREP.
● Merged with NREP in the 1989-90 annual plan.

8. Jawahar Rozgar Yojana (JRY):

● Launched in 1989 by merging NREP and
RLEGP.
● Funded by the central and state governments in
an 80:20 ratio.
● Targeted unemployed and underemployed
people below the poverty line in rural areas.
● Gave priority to Scheduled Castes, Scheduled
Tribes, and freed bonded laborers.
● Reserved 30% of employment opportunities for
women.
● Replaced by the Jawahar Gram Samridhi Yojana
in 1999, which later merged with the Sampoorna
Grameen Rozgar Yojana (SGRY) in 2001.

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 Unit 3 Panchayati Raj & Rural Administration

What They Do:

Bureaucracy and Structure of
Administration ● Planning and Budgeting: They make annual
plans and budgets for village development
● Bureaucracy: A system with many levels and projects.
clear rules about who does what and how things ● Helping in Times of Need: They organize
get done. You might find bureaucracies in relief efforts during natural disasters.
governments, companies, and even clubs. In ● Keeping Things Tidy: They manage public
Panchayati Raj, the bureaucracy refers to the property and remove any unauthorized
officials working within the Panchayati Raj structures.
Institutions (PRIs) at different levels. ● Community Spirit: They encourage villagers to
volunteer for community projects.
● Structure of Administration: The way different ● Keeping Track: They maintain records and
parts of an organization are arranged to achieve statistics about the village.
specific goals. It's like a blueprint showing who ● Village Improvement: They work on projects
reports to whom and what each part is related to education, health, agriculture, and
responsible for. more.
● Giving a Voice: They represent the villagers'
concerns to higher authorities.
Panchayati Raj Institutions (PRIs) ● Setting Rules: They create and enforce rules
for the village to function smoothly, including
India's rural development system is based on a collecting taxes.
three-tiered Panchayati Raj structure:

1. Gram Panchayat (Village Level) 2. Panchayat Samiti (Block Level)

A Gram Panchayat is the village council at the most The Panchayat Samiti is like a mini-parliament that
basic level of the Panchayati Raj system in India. looks after a group of villages called a "development
Imagine it as a mini-government for your village! block." Here's a breakdown of what it is and what it
does:
The most basic unit, directly elected by villagers. It
handles village-level development activities like What it is:
sanitation, water supply, and primary education.
● A rural local government body in India at the
How it Works: intermediate level (between village and district).
● Often called the "panchayat of panchayats"
● A village is divided into sections because it coordinates village-level
(constituencies) based on the number of voters. Panchayats.
● Each constituency elects one member.
● These elected members come together to form Who's Who:
the Gram Panchayat, like a village cabinet.
● A mix of elected representatives from villages
(Gram Panchayats), government officials, and
seats reserved for under-represented groups.

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 ● Elects a Chairman and Deputy Chairman for
a five-year term.
What Does it Do?
Key Functions:
● Advising Blocks: The Zila Parishad provides
● Plans, executes, and oversees development guidance and recommendations to the
programs for the entire block. block-level Panchayats.
● Supervises the work of Gram Panchayats within ● Approving Plans: It reviews and approves
its area. budgets and development plans proposed by
● Encourages villagers to take initiative and the blocks.
improve their lives. ● Funding Distribution: The Zila Parishad
● Provides support for implementing development allocates funds from the government to different
programs. blocks within the district.
● Looks after the welfare and development of ● Education Focus: It takes responsibility for
various sectors like agriculture, healthcare, managing secondary education in the district.
education, and sanitation. ● Rural Development Champion: The Zila
● Manages funds and loans for village housing Parishad advises the state government on
projects. matters related to rural development in the
district.
● Monitoring Progress: It reviews and evaluates
3. Zila Parishad (District Level) the effectiveness of various development
programs implemented at the block level.
What is it?

The Zila Parishad (District Council or Mandal

Parishad or District Panchayat) is the highest level of Objectives of Panchayat Raj
the Panchayati Raj system in India. Imagine it as the
district council, overseeing all the villages and blocks 1. Helping Those in Need: Taking care of the
within a district. poor and vulnerable in the village.
2. Working Together: Encouraging villagers to
Who's Involved? cooperate and support each other.
3. Local Businesses: Helping villagers start
● Elected Members: People in the district vote businesses they own and run together.
for representatives. 4. Using What's Available: Making the most of
● Block Leaders: Heads of block-level the resources and people already in the village.
Panchayats (Panchayat Samiti) are part of the 5. Focus on Farming: Making sure growing crops
Zila Parishad. and raising animals is a priority for the village.
● Government Representatives: Members of 6. Sharing Power: Spreading decision-making
Parliament and state legislature from the district among different Panchayati Raj levels and
have a seat. involving volunteers.
● Officials: A chief executive officer manages the 7. More Village Businesses: Supporting small
administration, supported by a deputy secretary. businesses that make and sell things in the
village.
How Does it Work?
8. Working Together Nicely: Making sure elected
● The Zila Parishad is elected for a five-year term. officials and village workers understand and
● It acts as a bridge between the state communicate well.
government and the village councils (Gram
Panchayats).

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Gram Sabha
The Gram Sabha is like a village meeting! All adults Rethinking and Improvement:
gather to discuss village issues. They can:
● Another committee, led by Ashok Mehta,
● Talk about problems like water or roads. reviewed the system in 1977.
● Suggest solutions and ideas for improvement. ● They suggested changes like a two-tier system,
● Approve plans made by the village council regular checks on spending, allowing political
(Gram Panchayat). parties at all levels, and reservations for
● Basically, they have a say in how their village disadvantaged communities.
develops!
The Journey Continues:

● More committees followed, all aiming to

strengthen Panchayati Raj.
Emergence and Growth of Panchayati
● One committee, led by L.M. Singhvi, was the
Raj Institutions in India first to propose giving Panchayati Raj
constitutional status.
Panchayati Raj is all about villages governing
themselves! A Landmark Moment:

● It wasn't a new idea in India. Villages already ● Finally, in 1992, the 73rd Amendment Act made
had Panchayats that handled local issues and Panchayati Raj a part of the Constitution!
disputes, kind of like mini-courts. ● This guaranteed regular elections, reservations
● Even Mahatma Gandhi believed in empowering for women and marginalized communities, and
these Panchayats for a better rural India. more power and resources for Panchayats.

The Constitution Takes Notice:

● Knowing their importance, our Constitution The 73rd Amendment Act

included a provision for Panchayats (Article 40).
● This article tells states to set up village Big Change for Village Councils!
Panchayats and give them the power to
function as self-governing units. ● In 1992, the Indian Constitution got an update
● But, it didn't specify how these Panchayats (73rd Amendment) to strengthen Panchayati
would be organized. Raj.
● This added a new section about Panchayats
Building a Structure: and gave them more power.

● A committee led by Balwant Rai Mehta came up Key Points:

with the first formal structure for Panchayati Raj
in 1957. ● Gram Sabhas: Ensured village meetings are
● They suggested a three-tier system with village, held for everyone to discuss issues.
block, and district levels. They also wanted ● Three Tiers: Established a clear structure with
direct elections for the village level. village (Gram Panchayat), block (Panchayat
Samiti), and district (Zila Parishad) levels.
Taking Steps: ● Direct Elections: People directly vote for most
Panchayat representatives.
● Rajasthan became the first state to set up a
● Age Limit: You need to be at least 21 years old
Panchayati Raj system in 1959.
to run for Panchayat elections.
● Reservations: Seats are reserved for women

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 and marginalized communities (Scheduled The Problem:
Castes/Tribes) to ensure their voices are heard.
● Election Commission: Each state has a ● PRIs often don't have enough money to do
special commission to handle Panchayat everything they need to do.
elections fairly. ● They rely too much on the government, which
● Five-Year Term: Panchayats work for five can limit their choices.
years, with new elections if dissolved early.
● Financial Support: A commission is set up Structure of Rural Finance
every five years to recommend how to provide
funds for Panchayats. Rural areas need money for development, just like
cities! Here's how they get it:

Formal Sources (organized institutions):

Financial Organizations in Panchayati
Raj Institutions ● Banks: Regular banks offer loans and savings
accounts for farmers, businesses, and
Village councils (Panchayati Raj Institutions or PRIs) individuals.
need money to do their jobs! But where does it come ● Cooperative Banks: These banks are owned
from? by their members, often focusing on agriculture
and rural credit.
Mostly from the Government: ● Regional Rural Banks (RRBs): Set up
specifically to serve rural areas, offering loans
● Central grants: The national government gives and other financial services.
money based on recommendations, often for ● NABARD (National Bank for Agriculture and
specific projects like building schools. Rural Development): This government bank
● State government funds: Each state sets provides refinancing to other rural financial
aside some money for PRIs based on their own institutions and promotes rural development
priorities. initiatives.
● Tax sharing: Some states share a bit of the
taxes they collect with PRIs for a more reliable Informal Sources (less organized):
income.
● Money lenders: Individuals or small
A little bit on their own (depending on the state): businesses that lend money at high interest
rates, which can trap borrowers in debt.
● Small taxes: PRIs can charge a little bit of tax, ● Landlords: Some landlords may advance loans
like a property tax or a fee for using the public to tenants in exchange for a share of the crops.
toilets. ● Self-help groups (SHGs): Groups of villagers,
● Market fees: They can also collect money from often women, who pool their savings and
people who use the village market or other provide small loans to each other.
facilities.
Choosing the Right Source:
Other sources (not as common):
● Formal sources are generally safer and offer
● Extra grants: Sometimes the government gives lower interest rates, but may have stricter
extra money for special projects. requirements.
● Loans: PRIs can borrow money for big ● Informal sources can be more flexible but can
projects, but they have to be careful not to be risky due to high interest rates.
borrow too much.

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NABARD Government & Non-Government
Organizations
Imagine a giant bank that cares about villages!
There are many organizations working to improve
● That's NABARD (National Bank for Agriculture
people's lives. Here's a breakdown of two main types:
and Rural Development).
● It's like a super bank that helps other banks 1. Government Organizations (GOs):
lend more money in villages.
● Who they are: Run by the government, funded
Why was NABARD Created? by taxes we pay.
● What they do: Provide essential services like
● In the past, India faced challenges in boosting
education, healthcare, roads, and social welfare
rural development through just planning.
programs.
● The agricultural and rural economy needed a
● Examples:
financial push.
○ Public schools and hospitals
● The Reserve Bank of India (RBI), at the
○ Police and fire departments
government's request, formed a committee in
○ Social security and welfare programs
1979 to address these issues.
2. Non-Government Organizations (NGOs) and
The Birth of NABARD:
Community Based Organizations (CBOs):
● This committee, led by Shri B. Sivaraman,
● Who they are: Not run by the government, rely
highlighted the need for a new organization to
on donations, grants, and fundraising.
focus on rural credit needs.
● What they do: Focus on specific social issues
● They recommended creating a unique
like poverty, education, healthcare,
development bank dedicated to rural areas.
environment, or human rights.
● Based on this recommendation, the Parliament
○ CBOs are usually smaller and focus on
approved the formation of NABARD in 1981.
a specific community's needs.
● It was officially launched in 1982 by Prime
● Examples:
Minister Indira Gandhi.
○ NGOs: Red Cross (disaster relief),
What Does NABARD Do? UNICEF (children's rights), Greenpeace
(environment).
● Makes it easier for farmers to get loans for ○ CBOs: Local women's cooperatives,
things like land, animals, and crops. neighborhood development groups,
● Supports small businesses in villages so they youth clubs.
can create jobs.
● Helps fund projects that improve villages, like
better roads or schools.
● Teaches people in villages about saving money NGO vs. CBO
and using loans wisely (financial literacy).
Feature NGO CBO (Community
(Non-Governmental Based
Organization) Organization)

Focus Broad social issues Specific needs of a

(poverty, education, particular
healthcare, community
environment, human
rights)

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 How SHGs Work:
Geograp Local, national, Local (village, town,
hic international neighborhood)
● Membership: Usually people from similar
Scope
backgrounds (income, social status) in a village
Leaders May have paid staff Led by volunteers or or community.
hip and professional members of the ● Activities:
leadership community ○ Savings: Members contribute small
amounts regularly, creating a pool of
Funding Donations, grants, Membership fees, money.
fundraising local fundraising, ○ Loans: Members can borrow from the
sometimes pool for various needs (education,
government grants healthcare, business) with fair interest
rates.
Structur More formalized Less formal ○ Peer Support: Members share advice,
e structure with boards structure, often skills, and encouragement with each
and directors based on social ties other.
● Benefits:
Account Accountable to Accountable to the ○ Empowerment: Members gain financial
ability donors and funders community they independence and confidence.
serve ○ Financial Security: Access to savings
and loans helps manage finances better.
Example Red Cross, UNICEF, Local women's
○ Community Building: Creates a strong
s Greenpeace cooperatives,
support network within the community.
neighborhood
development Examples of SHGs:
groups, youth clubs
● Women's groups saving for their children's
Advanta Access to wider Deep understanding
education.
ges resources and of local needs and
● Farmers pooling resources to buy better seeds
expertise strong community
or equipment.
connections
● Artisans working together to market their crafts.
Disadva May be less Limited resources
ntages responsive to local and capacity
needs

Self-Help Groups (SHGs)

Imagine a group of people in your community
coming together to support each other!

● That's what Self-Help Groups (SHGs) are all

about.
● They are small groups (10-25 people) who work
together to improve their social and economic
well-being.

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