role of village institution in rural development

2. ROLE OF VILLAGE INSTITUTION IN RURAL
DEVELOPMENT
Nooragha Khalil Safi (2015A147M)
22/04/2017

3. OUTLINE
Introduction
Important Concepts
Some village institutions and their role in rural development
Panchayati Raj Institution
NABARD
Cooperatives societies
Self Help Groups (SHGs)
Farmer Interest Groups (FIGs)
Schools

4. Introduction
• The Rural Development in India is one of the most important factors
for the growth of Indian economy.
• India is the primarily an agriculture-based country. Agriculture
contributes is nearly one-fifth of the GDP in India.
• In order to increase the growth of agriculture, the Government has
planned several programs related to Rural Development.
• The Ministry of Rural Development is the apex body for formulating
policies, regulations and acts related to rural development sector.

5. Cont…
• Most of the institutions are established for the purpose of rural
development like village institutions.
• Understanding village level institutions and its role for rural
development is important for the following reasons.
1. Informal institutions play an important role in regulating household
access to key resources on which livelihoods are based.
2. Given the current attention on building what are seen as more
democratic village organizations.

6. Rural population (% of total population)
World Bank IBRD. IDA 2015
Country 1960 2015
Afghanistan 92 73
India 82 67
Arab countries 69 42
Central Europe 55 38
World 66 46

7. Rural Community
A community is a group of
people, who live in a
geographical area and
have interest to each other
for the purpose of making
a living.

8. Rural development
Is a strategy designed to improve the economic and social life of
rural people.
It is a process, which improving the rural people’s living condition.
Is all about bringing change among rural community from the
traditional way of living to progressive way of living.

9. Main Objectives of Rural Development
To generate
Employment Self-help Economical activities
To improve
Health Education Living conditions
To build
Infrastructure Public Service Communication

10. Utility of Rural Development Programmes
Reddy, 2014, PRIs in Rural Development
Andhra Pradesh

11. Institution
An organization, establishment, foundation, society, corporation or the like,
devoted to promotion of a particular program.
Levels of Institutions
1. National
2. State
3. District
4. Cluster
5. Village

12. Some village institutions and their role in rural development
 Panchayati Raj Institution
NABARD
Cooperative societies
Self Help Groups (SHGs)
Farmer Interest Groups (FIGs)
Schools

13. Role Panchayati Raj In Rural Development
•The first organized effort to solve the problems of rural India
was made through the Community Development Programme
in the year 1952 and National Extension Service in 1953. on
the completion of first five years of the CDP, the planning
Commission appointed a high-ranking study committee headed
by Balwant Rai Mehta the Chief Minister of Gujarat.
•This team pointed out both positive and negative results in the
implementation of the programmes.
•This committee recommended Panchayati Raj.

14. Cont….
• The Panchayats institutions are play an important role in rural development
in India.
• Plan documents of both the central and state governments and various
committees have emphasized the importance of these bodies in the polity.
Five-year plans, specially the Second five-year plan a panchayat as
responsible for village development keeping transformation of social and
economic life of rural areas as its goal of development.
• It says that the rural progress depends on the existence of an active
organization in the village which can bring all the people including the
weaker sections in to common programmes to be carried out with the
assistance of administration.

15. The present status of Panchayati Raj
Elected representatives at all level are 3 million .
One-third are women’s seats .
 Gram/village level panchayats are more than 2.4 lakh.
Taluka/block level panchayats are more than 6,000.
Zilla/district level panchayats are 500.
Cover more than 5.8 lakh villages ( 96%).
Nearly 99.6% of rural population.
Source: Manual for (e-Course) PGS agricultural research, research ethics and rural development

16. Three Levels of Panchayat Raj
The Gram/ village Panchayat
Taluka/block Panchayat
Zilla/district panchayat

17. Gram or Village Assembly
• Villages – population of 500 or more
• Members – all adult of the village
• Meetings – twice a year
• Discusses important matters and problems regarding to the villages

18. Conti…
• Elected representatives of this assembly from the ‘Gram Panchayat
• Seats reserved for Scheduled Castes & Scheduled Tribes
• One – third of seats reserved for women

19. The main functions of Village Panchayat
1. Preparation of Annual Plans for the development of the village Panchayat area.
2. Preparation of Annual Budget of Village Panchayat.
3. Mobilization of relief in natural calamities.
4. Removal of encroachments on public properties.
5. Organizing voluntary labours and contribution for community works.
6. Keeping of essential statistics of village.
7. Service function, such as promotion of education, health, agriculture etc.
8. Regulatory and administrative functions, which consists of regulating the conduct of
individuals and institutions and also collection of taxes.

20. Role
• Helping in daily problems
• Administrative, social, economic and judicial functions
• Community development
• Training for future leaders
• Mutual help, cooperation, responsibility and self – sufficiency

21. Public image on the services of PRIs
Reddy, 2014, PRIs in Rural Development
Andhra Pradesh

22. Role of NABARD In Rural Development
A Brief Profile
• Set up in 1982, committed to Rural development through
intervention of credit and developmental activities.
• Paid-up Capital Rs.3000 crore against the Authorized Capital of
Rs.5000 crore.
• Operates through HO at Mumbai, 30 ROs in State Capitals & 391
District Offices.
• As on 31-03-2013, total assets worth Rs.210000 crore.

23. Mission
By the end of year 2015, NABARD planned to link nearly
9.2 crore households which would ensure coverage of more
than 50% women through Self-Help Group (SHG) in Bank
linkage program.

24. Role
Providing refinance to lending institutions in rural areas .
Provides refinance facilities for agriculture.
Promoting institutional development .
Evaluating, monitoring and inspecting the client banks .
Acts as a coordinator in the operations of rural credit institutions.
Extends assistance to the government, the RBI and other organizations for
rural development.

25. Conti…
Training and research facilities for banks, cooperatives and
organizations working in the field of rural development .
Apex institution for policy, planning and operations in the field of
credit for agriculture and activities in rural areas.
It prepares rural credit plans for all districts in the country on
annual basis.
It promotes research in the fields of rural banking, agriculture and
rural development.

26. Role of the Self-Help Groups (SHGs) in Rural development
A Self-Help group is a village-based financial intermediary
committee.
Self-Help Groups are small groups of people facing similar
problems. The members of the group help each other to solve
their problems.
Most of Self-Help Groups are located in South and Southeast Asia
including India.
It is estimated that more than 25 million rural women of India have
been benefited by the (SHGs).
(Source: http://EzineArticles.com/3481129)

27. Structure of SHG
10- 20 members
3 representatives for minimum one year
Chairperson for each meeting

28. Major Functions
1. Regular saving of small amount
2. Contributing to common corpus
3. Collective decision making
4. Resolve problems through mutual
discussions
5. Meet emergency needs

30. Growth of Self Helps Group on Rural Development in Haryana
Dr. Surender (September 2014)

31. Role of Co-operative Society in rural development
A voluntary association of persons.
Working together for common economic
objective.
Providing support to the members.
Self-help and mutual help.
Pooling individual resources for group
welfare for common benefit .

32. American Journal of Educational Research(2015)

33. The Principles of Cooperative

34. Classification of cooperatives
• Worker Cooperatives
• Consumer Cooperatives
• Producer Cooperatives
• Purchasing Cooperatives
• Housing Cooperatives
• Agricultural cooperatives

35. Role of Cooperatives Societies
• Increase returns to the farmers
• Helpful in creating marketing infrastructure.
• Associated with other aspects of agriculture.
• Providing inputs and consumer goods.
• Others
• Bulk purchasing so farmer has to pay less.
• Provide quantity seeds, pesticides and fertilizers.
• Arrange availability of requisite inputs and ensure distribution.

36. Role of Farmers interest groups (FIG) in rural development
 A Farmer Interest Group (FIG) is a self
managed, independent group of farmers
with a shared goal and interest.
 The members work together to achieve
this goal by pooling their existing
resources, gaining better access to other
resources and to share in the resulting
benefits

37. Objectives of a group
• To address production and marketing issues.
• To develop 'self-help' approaches.
• To provide pooled resources.
• To allow members to exploit an economy of scale.
• To provide a forum for training and information sharing.
• To provide a local point for technical and training activities.

38. Activities of a group
• Conduct meetings
• Engage in information sharing (including networking with other
groups)
• Receive technical training
• Conduct field trials
• Organize bulk selling and purchasing
• Develop market networks and make market assessments
• Support individual members on a needs basis
• Manage a 'revolving' fund for group activities
• Identify technical and product opportunities
• Invest in issues that cannot be covered by individuals
• Gain access to credit not available to individuals

39. Village schools
• Rural schools traditionally have
played a central role in their
communities.
• Besides providing for basic
education, they often have served as a
cultural center in the community.
Athletics, drama programs, music,
and other social activities conducted
at schools have played an important
part in rural community life.

40. Important of schooling contributes to economic
productivity
Individuals acquire skills in school that enable them to be more productive.
What individuals learn in school makes them more likely to adopt new
technologies and practices.
 Schooling helps individuals to do functions more effectively in modern
production organizations.
Schools socialize people into functioning effectively in modern society.
The discipline of learning taught in school helps individuals learn new skills
outside of school.

41. Conclusion
• Rural development has always been an important issue in all
discussions related to economic development, especially of developing
countries.
• Around 63% population of developing countries living in rural area.
• Rural Development is a process of bringing change among rural
community from the traditional way of living to progressive way of
living.

42.  For the purpose of rural development government established
village institutions.
1.To develop farm, home, public service and village community.
2. To improve health, agriculture and education condition etc.
3. To bring improvement in producing of crops and animals.
4. To improve villagers with their own efforts.
5. To provide employment for rural people.
6. To improve village communication.
7. To improve village industries.