Trend Analysis of Five Year Plans
Rural Economic Environment & Policy
Learning Group 6
Rural development in India
 In ancient times, the rural people in India were
organized into self-sufficient, hard working,
cooperative, happy village republics.
 Village system utterly destroyed during the British
regime.
 Independent India has pledged to establish a
socialistic pattern of society through planned
development
 Rural development, therefore occupies priority in
the agenda for rural development in India for more
reasons than one.
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POWERLESS
NESS
VULNERABI
LITY
ISOLATION
PHYSICAL
WEAKNESS
POVERTY
Deprivation Trap
Source: Rural Development by Robert Chambers
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Historical overview of planning
year
Event
1927
Time of rapid changes outside India. First time economic planning at the
national level had started in the USSR which created a strong impression on
Nehru at the time of his first visit to Moscow
1929
The all India congress committee passed a resolution stating that “in order to
remove the poverty and misery of the land to ameliorate the conditions of the
masses, it is essential to make revolutionary changes in the present economic
and social structure of the society and to improve gross inequalities”. This was
not acceptance of socialism but indicated an approval of “socialistic approach
1938
On the initiative of congress president, a conference of ministers of industries
was convened in Delhi which was of the opinion that the problem of poverty
and unemployment, of national defence and the economic regeneration
cannot be solved without industrialization.
1938
Congress appointed a national planning committee with Pt. Jawaharlal Nehru
as its chairman. The committee laid down the objectives of planning.
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Meanwhile the leading industrialist of India produced a plan, called the Bombay plan.
India also had become plan minded.
1950
The planning commission was set up by a resolution of the government of
India, to draw up a concrete plan.
1951-56
First five year plan was formulated. However the final document of this plan
was published in December 1952.
1956-61
Second five year plan
1961-66
Third five year plan.
1966-69
Three annual plans.
1969-1974
Fourth five year plan.
1974-1979
Janata govt. declared fifth five year plan.
1978
Janata government ended the fifth five year plan one year earlier to its term
i.e. only within four year span and introduced a rolling plan.
1980-85
Sixth plan was formed
1985-1990
Seventh five year plan started
1990-1992
Two annual plans were formed.
1992-1997
Eight five year plan started.
1997-2002
Ninth five year plan was operational during this period.
2002-2007
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The tenth plan became operational
Agriculture
Ist Plan to Vth Plan
Share of agriculture and allied sectors varied
from 11.3 % to 14.9 %
VI th Plan to Xth Plan
Share of agriculture and allied sectors varied
between 4.9 per cent and 5.2 per cent
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First Five Year Plan (1951-56):
 Overall development, particularly of rural communities. For this
purpose, the Community Development Programme (CDP) was
launched.
Second Five Year Plan (1956-61):
 Increase of 25% in the national income
 Expansion of employment opportunities
 Reduction in inequality.
Third Five Year Plan (1961-66):
 Increase the national income rapidly achieve self-sufficiency in
food grains and increase agricultural production
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Annual Plans (1966-69):


Intensive Agricultural District Programme.
This package programme brought the so called Green
Revolution.
Fourth Five Year Plan (1969-74):



accelerating the tempo of development
reducing fluctuations in agricultural production
safeguarding uncertainties of foreign aids.
Fifth Five Year Plan (1974-79):

This plan launched a national programme of minimum needs,
for providing a minimum level of social consumption for
different areas and sections of the community based on the
predetermined criteria of uniformity and equality
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Sixth Five Year Plan (1980-85):
 Removal of Poverty
 Strengthening infrastructure for both agriculture and industry
Seventh Five Year Plan (1985-90):
 The basic tenets of this plan were growth, modernisation, selfreliance and social justice.
Annual Plans (1990-92):
 Maximization of employment and
 Social transformation.
Eighth Five Year Plan (1992-97):
 Structural adjustment policies were important.
 Several liberalization measures were announced
 Private sector was assigned important role in the development
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Ninth Five Year Plan (1997-2002):
 Sustainable development of the economy and society.
 Controlling the growth rate of population, empowerment of women
and socially disadvantaged groups.
Tenth Five Year Plan (2002-07):
 Reduction of poverty ratio by 5 per cent points by 2007.
 Providing gainful employment to the labour force
Eleventh Five Year Plan (2007-12):
 The United Progressive Alliance government issued a paper in the
eleventh plan titled "Towards faster and more inclusive growth."
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Impact Assessment
of PMGSY In Orissa
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Introduction
 Started in 2000.
 100% centrally sponsored scheme.
 Providing all India connectivity to all the villages by 2009 to all habitations with
a population of 1000 or more in the plains and of 500 or more in the hilly,
desert and tribal areas.
 Educational, economic, and social backwardness.
 This further led to poor political participation,
 Failure to avail health care facilities coupled up with lack of awareness, access
to basic & utility services and
 Miserable situation and poverty in those areas.
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Impact Assessment
MORD listed out five districts-Angul
-Balasore
-Puri
-Sambalpur &
-Rayagada
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 To assess the status of PMGSY in the state and find out whether
or not there has been any perceptible change in the quality of life
of the people due to the construction of road under PMGSY
 To find out to what extent the selection of roads have been
correctly done and to what extent people's
participation/involvement have been guaranteed at all stages of
the road construction (from selection till the completion of the
road construction).
 To assess and find out any operational lag in the road selection &
construction process.
 To suggest on the basis of the key findings of the assessment,
risk factors involved in the process of construction of PMGSY
roads and some possible strategies to ensure timely completion
of the roads so as to meet the set objectives underlying PMGSY.
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Profile of the Area and People under Study
 Demographic Profile
 Workforce Participation
 House Type
 Area under cultivation
 Access to Electricity
 Availability to educational facility
 Availability of Health facility
 Availability of credit cooperatives
 Access to administrative facilities
 Availability of communication facility
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Impact on Agricultural Production
Indicators
Overall
Use of Chemical Fertilizers (% increase in average quantity
10.90
of chemical fertilizer use in major crops)
Increase in Pesticide use
20.00
Change in Cropping Pattern (from food crop to cash crop)
5.43
Percentage increase in number of improved farm implements
31.31
owned by farmers
Percentage change in quantum of milk sold outside the
21.28
village
Increase in Farm Employment opportunities due to increase
in cropping intensity (% increase in average days of
11.69
employment in a year)
Increase in employment opportunities outside the village due
12.43
to greater mobility
Increased accessibility to market for selling out the
Increased
agricultural products
Reduction of transport cost of fertilizers
53.00%
Reduction of distance of the agro input shops from the
0.39
village in Kms
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Impact on Employment
Indicators
Overall
Average days of engagement in a year in agricultural wage employment
86.00
inside the village
Increased employment opportunities in agricultural sector inside the
11.69
village (% increase in average days of employment in a year)
Average days of engagement in a year in non-agricultural wage
99.00
employment inside the village
Increased employment opportunities in non-agricultural sector inside
16.47
the village (% increase in average days of employment in a year)
Average days of engagement in a year in agricultural wage employment
86.00
outside the village
Increased employment opportunities in agricultural sector outside the
10.26
village (% increase in average days of employment in a year)
Average days of engagement in a year in non-agricultural wage
131.00
employment outside the village
Increased employment opportunities in non-agricultural sector outside
13.91
the village (% increase in average days of employment in a year)
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Impact on Industry
Indicators
OVERALL
Type of Industries located in & around the village
before the road
Pottery Unit, Rice Hauler (at all
places) & Brick Unit & Bidi Unit
in Angul.
Type of industries located in & around the village Pottery Unit, Rice Hauler (at all
after the road
places) & Brick Unit & Bidi Unit
in Angul.
Percentage of increase in the industries after the
road
Percentage of increase in the employment
opportunities after the road
Nil
Percentage of profit in the income level in the
industries in the post road scenario
Marginal except brick unit where
about 12 percent increase in brick
cost.
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About 5-10 percent on an average
Impact on Health
Indicators
Overall
Availability of Health care facilities in study villages (% increase in
no of villages reporting availability of Govt
Hospitals/Dispensaries & Pvt. Clinics
20.00
Percentage increase in number of delivery cases in hospital
55.00
Percentage increase in number of persons visiting hospital in case
of suffering from diseases
Percentage decline in number of malaria cases reported in the
village
Percentage increase in immunization of children
Percentage decline in neo natal deaths
Visit of Health Workers/ANM to the study village (% increase in
average no of visits/month/village
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42.86
16.00
9.87
20.00
59.88
Impact on Education
Indicators
Overall
Percentage increase in attendance of children in
middle schools
Percentage increase in attendance of children in high
schools
Percentage increase in attendance of children in
colleges
Percentage increase in middle school pass out children
taking admission in high school
Percentage increase in high school pass out children
taking admission in colleges
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4.98
6.58
6.06
10.64
15.91
Impact on Social Aspects
 There has been considerable increase in the number of
visits by the health workers and Village Level Worker
(VLW) to the villages after the construction of the roads.
 Also, there is improvement in Government
Programs/Services due to the construction of road under
PMGSY. Example - increase in the health camps.
 There has been an increase in the number of agricultural
demonstrations in the post road period.
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Impact on Transport Facilities & Accessibility
 All the villages (18) located in the 3 districts are able to be commuted
throughout the year after the construction of the roads.
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Impact on Communication
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Suggestions
 Implement the road construction activities through the
NGOs, R & D Department being the nodal agency which
will ensure employment opportunity to the local people.
 No provision of funds for the maintenance of the roads
constructed under PMGSY and in order to ensure their
maintenance, to make budgetary provision & place funds
either with the Zila Parishad or with the Panchayats for
maintenance of PMGSY roads.
 Wrong selection of roads.
 These are still early days of PMGSY roads, since only very
small numbers of such roads have been completed and
those which are completed are only recently constructed.
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Rapid Framework Model
Political Context
 The key policy actors are bureaucrats, planning commission
members- reputed persons in the society.
 There is certainly a demand for research and new ideas among
policymakers because the old ideas have run out of steam. We
need fresh new ideas to breathe new life into it.
 Source of resistance is because of the weak linkage between the
stakeholders & policymakers
 Policy making is a long term process involving people all walks
of life including all stakeholders
 Perhaps it provides immense opportunity to toy with new ideas
and launch it on pilot basis before full fledge launch
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Rapid Framework Model
Evidence
 The current theory is also as a result of remarkable difference between
announcement, disbursal of funds and execution of the schemes.
 All the rural development schemes were very promising. They could
have brought sea changes in the rural landscapes but unfortunately it
did not happen as planned.
 The five year plans were mostly focused on short term approach and
focused on poverty elimination through income enhancement through
temporary measures.
 Several schemes launched by the government resulted in the remarkable
progress of the areas in isolated instances.
 A combination of Top-down and Bottom up approach should be
followed to satisfy the policy makers.
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Rapid Framework Model
Links
 Key stakeholders: Farmers, landless labourers, people below
poverty line, artisans, policy makers, central & state government,
administrative mechanism, institutions, planning commission etc.
 Links & networks: Right to Information Act, Delivery
mechanism through official channels, farmers association,
government schemes, institutional mechanisms, state & district
administration.
 Influence of Intermediaries: Yes, they all are influential in their
own ways. The rural people are beneficiary to these schemes.
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Rapid Framework Model
External Influences
 International actors: World Bank, International Monetary Funds,
Asian Development Banks, Ford Foundation, External Donor
agencies, Grants from the develop world.
 These international actors have great influence on the policy making
process and very often they modify these policies to suit them.
 Aid Priorities: Poverty elimination, improvement in infrastructure
facilities, education, rural water supply & sanitation, health, hygiene
& family welfare etc.
 Research Priority: The focus has been shifting in this case from the
philanthropic activity to rights based approach. They loans are
generally disbursed in the areas which produces sustainable
livelihood opportunity and with repayment capacity within a
specified period of time.
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Conclusions
 FYP is a grand plan to achieve faster growth & overall
development of the people.
 It involves best brain and expertise involving all the key
stakeholders related to the given field.
 The entire planning process- conceptualization,
allocation of funds and implementation of the schemes
involve great deal of expertise, dedication and
innovation to make it fool proof to reach the maximum
target beneficiary in order to achieve the defined
objective.
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Conclusions
 The FYP has contributed to the overall development of
the society and in the same way rural development
planning has touched the lives of millions of people
living in rural areas.
 Despite all criticism about the FYP, we found that there
is nothing wrong with the planning process, but there
are some issues with the implementation of these plans.
 Perhaps FYP is an unique initiative of its own kind in
the world in order to achieve the desired goals by the
government of India.
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Ajai Kumar Tiwari
Dhirendra Pratap Singh
Nishi Kalpana Pandey
Pankaj Sharma
Rohit Upendra Arya
Subhodip Ganguli
Sweta Sharma
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