Monday, October 21, 2013

Rural Managers: Their role from a development professional's view

[ This post has been taken from 2013 edition of Dhwani, the annual journal of published by RMAX [ Rural Manager's Association of XIMB (Xavier Institute of Management, Bhubaneswar)]. Content has not been tampered but published without prior permission. Please contact blogger in the case of any dispute/offence/copyright issues.]

Author : Mr. Shouvik Mitra, World Bank Consultant

The development sector has seen a sea change over the last four decades starting from the Sarvodaya movement, primarily inspired by the Gandhian philosophy in the early sixties to the professionalization of the sector in the mid eighties where NGOs like PRADAN and MYRADA came into existence to the near corporatization in the first decade of this century. Thus, with the evolving scenario the role o f r u r a l m a n a g e r s h a s c h a n g e d drastically. When Dr. Kurien established IRMA in 1979, the goal was to develop professionals to work for the sector in general and for AMUL/ GCMMF in particular. Today, rural managers are involved in organizations ranging from grassroots level NGOs, secondary support NGOs, donor agencies, private foundations, agri-business entities and social enterprises.

The role of a rural manager, over a period of time, has become more evolved, more sophisticated and more complex. This change in role is due to the change in contexts in which rural managers work. These contexts have opened many new opportunities for rural management as a field to grow. However, the same contexts have given rise to some peculiar challenges for rural managers. Let us take few examples. Most of the NGOs today face certain major organisational constraints, such as, funding and limited outreach. This along with sector specific demands, multi-dimensionality of rural poverty as well as high donor expectations poses a unique set of challenges in the face of rural managers. The Government being the largest player in rural development sector is worried about quality and efficacy. The donors and foundations are facing constraints of dwindling innovativeness, quality partners, timely delivery and measurable impacts. The entrepreneurs are facing capital constraints, government policies and quality human resource. The agenda of inclusiveness is going through a major drift among the corporate agri-business entities while the corporate social responsibility wings are too focused with R&R, establishing brand value and a general lack of understanding of the way forward. Another new concept that has emerged is Producer Collectives. Though their presence is still on a relatively smaller scale, they not only face issues of quality HR, capital constraints, and lack of mission but also suffer from governance issues and member-organization conflicts.

Poverty is complex phenomenon and there is no single silver bullet to wipe it out. And it has become extremely critical to work on several fronts simultaneously to tackle it effectively. It is now rare to find organizations working in a dedicated domain like health, education, empowerment, livelihoods. The recent mantra is overall well being of community and thus the organizations prefer to work across multiple sectors, though many of them continue to have a core competence in one or few of the sectors. This has necessitated knowledge across different domains for professionals working at the grassroots level.

Another challenge for the demographers today is migration, the solution to which is to provide ample employment as well as self employment opportunities in rural India. The need is to tackle this situation by proposing ideas for self-sustaining business models which not only generate revenue for the corporate but also proves beneficial monetarily and socially for people at the base of the pyramid. It is here that rural managers, armed with a combination of business acumen and compassion can contribute the most. Majority of social ventures fail to scale up due to lack of managerial skills. Similar is the case with implementation of a number of government schemes. To justify the claims of 'social inclusion', it is important for the development agencies to broaden their horizons to include a whole range of beneficiaries and not just a minor part of the population. All sections of the society are equally important to achieve the goals inclusion.

A rural manager thus needs to juggle with a number of issues and come up with optimal solutions in whatever organization s/he may be working. S/he is expected to deal with organizational staff, ground level workers, outside/intervening agencies, rural community members, all at the same time.

The question to be asked here is how one can equip oneself to cope with such diverse and demanding situations. Is only a rural management degree itself a sufficient condition to be an effective rural manager? I doubt it. The right kind of attitude is of paramount importance; an attitude to work with rural poor in a manner which is professional, yet tender and at the same time not compromising on the quality of the outcome. What is required is a delicate balance of both head and heart where one is hardnosed about the efficacy of the project and is also concerned about the well being of the community. There is hardly any room for trade-offs. S/he must be able to analyze the situation and visualize the possible solution. It is required from him/her to be willing to unlearn, learn and relearn continuously and over a period of time.

Saturday, October 12, 2013

Why Government Schemes Fail?

All claims of the development by the government appear to be a hoax ...obviously ! Because we always see huge margin of difference between announcement and implementation. Let us redefine government for our own understanding. It is a crucible of interest groups, rather than a black box of noble intentions. So, the responsibility of failure of schemes lie with various stakeholders in the development process.

Growth can never be inorganic and the system needs to learn before they grow. Now replace the system’ with a ‘welfare scheme’. Example: Gradual improvement (IRDP - SGSY - NRLM) is better approach for development. Not all schemes are so much lucky. They are renamed and often termed as 'old wine in new bottle'. Sometimes if any scheme is a completely prone to the corruption, we have hinged for its immense benefit to power holders. Bad schemes is like giving perpetual gifts that has made people into beggars rather than partners. India's government programmes are riddled with corruption and leakage. The main source of corruption arises from the identification of beneficiaries. Identification is not a statistical exercise, but is a major political activity. Nitin Pai has written an article focusing on this issue only - Where are the Poor?.

Rajiv Gandhi’s famous and oft-quoted statement that out of every Rs 1 spent on development only 15 paisa reaches the poor. Monitoring and Evaluation is often the weakest part of the chain of the schemes. Officials are getting salary for what they are supposed to serving the people. They get away clean either with not doing anything at all or doing with bribes. This is the most damaging aspect of the government jobs. Even harsh reviews and suspension does not mean anything to them.

Unused knowledge is a buried treasure. Government officials at block levels have brilliant expertise but they rarely display an ounce of integrity. The block level officials and extension workers are inadequately available and most of the posts were vacant. So, the staff is always overburdened by additional charges. None of govt official will talk openly of their exasperation with the stiff deadlines. But off the record, most are forthcoming. And, their feedback is rarely taken serious. There is also lack of specialization at the top level of bureaucracy. Same officer can look sports affairs with equal expertise as livelihood ! Such is the way of functioning government. This system has began to change positively from the last 10-15 years with the incoming flux of new officers. 

The reformers calling for heads of government servants and public representatives are not free from all blame. I will not give detail here in the corrupt practices of NGO sector but will take a dig on activist mode workers. Most of the activist are either committed right Swadeshi or a leftist social workers . They are staunch and passionate persons who are anti-globalization, anti- market and assumed that all decisions however big or small had to be taken in GramSabhas and will turn up invariably the right ones. Hence, not all feasible solutions are put on table and negotiation becomes ideological battleground.

Poor can not be served poorly; Government must stop thinking that PRI as low-cost and voluntary. People’s Participation for Empowerment and Good Governance may sound like a jargon in the reading but it is not. It is a simple process of taking voice of an important stakeholder i.e. public. There will be corruption in the early years, but surely spread of awareness will happen in upcoming years.

The hunger and poverty that one sees all around must be tackled with better designed scheme. Structural transformations at the top to allow local actors to participate with their potential is required. We must focus on convergence of existing schemes of the government rather than launching new schemes. Only then, we can roll back redundant schemes and put in their what is required. Even we got a new scheme. "The Implementation Part" is key to measure any success of intervention rather than allocation of fund. I will leave readers with quote by Pratap Bhanu Mehta, president, Centre for Policy Research, Delhi in his article "The contractor state": The government of India is a government of contractors, by contractors, for contractors.

Monday, September 30, 2013

Market Failure and Primary Producers

There are two factors that affect the lives of farmers - Lack of financial planning and Information Asymmetry. Let us roughly cash flow of the marginal farmer (as owner or tenant or share cropper who cultivates agricultural land up to 2.5 acres) that will fall into low-income households. The cash out flow of the household is throughout the year and peak-out during festive season, marriage or birth) and bad patches (accident/death) in the family. The farmer gets cash inflow with sales of produce only. Hence, the borrowings of the farmer limits the growth option for the household.

Let us take an excerpt from the paper - Why Don‘t We See Poverty Convergence? by Martin Ravallion  - "Banerjee and Duflo (2003) provide a simple but insightful growth model with borrowing constraints. Someone who starts her productive life with sufficient wealth is able to invest her unconstrained optimal amount, equating the (declining) marginal product of her capital with the interest rate. But the 'wealth poor' for whom the borrowing constraint is binding, are unable to do so. Banerjee and Duflo show that higher inequality in such an economy implies lower growth. However, they do not observe that their model also implies that higher current wealth poverty for a given mean wealth also implies lower growth.."

There is failure of state even in few cases as farmer sold paddy at 900 Rs. to the middleman against the minimum support price of 1250 Rs. This was bought in my notice during a meeting with SHG woman at Khaprakhol block of Balangir District. Hence, the information asymmetry is a definite factor for the problems of primary producers. Let us take the case of Cotton producers at Balangir. Most of the farmers avail credit, fertilizer and seeds from the middlemen. Hence, they are forced to sell their produce to the middlemen. They mostly sell at the price negotiated upon irrespective of the price prevalent in the market. In almost all cases the negotiated price for future output is 10 to 30% lower than the market prices.

Since the cash inflow with the farmers happens only in time of sale post harvesting season. Hence, it is very hard for farmer to negotiate with the creditors, middlemen and even local traders in terms of price of the produce. Farmer is forced to sell the producer soon after the harvest. This phenomenon is called Distress Sell. The lack of holding capacity reveals failure of credit mechanism of government. Through better connected network and information, the middlemen are always able to better estimation of price of the commodity. This price distortion has been brought lower due to reach of mobile phone connectivity. This can be countered by providing loans to hold sale of harvest for few weeks/months and installation of the mini warehouse facility at the GP level.

The market failure is typically attributed to information asymmetries—that lenders are poorly informed about borrowers. But we will go more in the topic of distress sell. Let us see State Wholesale Prices for Onion in Orissa (Rs/ Quintal) [Source - http://agmarknet.nic.in/]


MonthsWholesale Prices (Rs/ Quintal)
April,2013 1500.81
May,20131607.41
June, 2013 1826.3
July, 20132556.19
August, 20134954.79
September, 20134056.14

What we see is the clear evident of the rise of price of Onion to 150-300% soon after harvest season of April and May. So, the actual producers are not getting benefit of the high prices of onion due to distress sell while traders are making money out of the misery of customers. While we talk about food inflation greatly, it has nothing to do with supply demand constraints in India. Its simply linked to hoarding and profiteering. I don't have concrete evidence for this fact, hence will not raise this issue.

Looking from the perspective of the neo -liberal, local traders are managing risk. But, through current practices, we are making agriculture unsustainable and economically nonviable for a small farmer. There are folk idioms like "Des bigade maarwadi, sadak bigade bael-gaadi" prevelant in the rural India. Local traders (often Maarwaris) whatever their motives, have done much to built the market in our country. What we need is inclusion of small farmers as players in the market. It is only by forming networks and communities built on solidarity that marginal farmers can make a difference. The main objective is get the remunerative price for primary cultivators and distress sale should be checked. That will be explored in the future posts through topic like Producer Groups

Wednesday, September 25, 2013

Government Schemes and Development Programmes

Livelihoods Initiative at CMF has complied a list of government schemes that focus on livelihoods promotion, broken down by state that is updated by latest August 2013. I am updating here name of schemes implemented in Odisha.

Social Security
  • Antyodaya Anna Yojana (AAY)
  • Annapurna Scheme
  • Anganwadi Karyakartri Bima Yojana
  • Emergency Feeding Programme
  • State Old Age Pension (SOAP) Scheme
  • National Social Assistance Programme for Social Security Pensions
  • National Old Age Pension Scheme
  • National Family Benefit Scheme
  • Balika Samriddhi Yojana (BSY)
  • Jana Seva Divas - Streamlining of the process of Pension Payment
  • Programme for Care of Older Persons
  • Day care Centre
  • Prevention of Alcoholism and Substance (Drugs) Abuse.
  • Scheme for Welfare of Orphan and Destitute Children
  • Orissa Disability Pension (ODP) Scheme

Welfare
  • Rehabilitation of distressed women
  • Balika Samridhi Yojana
  • State commission for Women
  • MVSN
  • An Integrated programme for Street Children
  • Training & Rehabilitation of Persons with Disability
  • National Programme for Rehabilitation of Persons with Disabilities (NPRPD)
  • "Preservation and Promotion of Tribal Dialects, Culture & Livelihood"
  • Special Programmes for KBK(Kalahandi-Bolangir-Koraput) Districts
  • Multi Sector Development Programme(MSDP)
  • Multi Sector Development Programme(MSDP)
  • Backward Region Grant Fund (BRGF)
  • Gopabandhu Grameen Yojana

Health
  • Janani Express
  • The Integrated Child Development Services (ICDS)
  • Scheme of Awards to Angawadi Worker
  • Kishori Shakti Yojana
  • National Nutrition Mission
  • RevisedNational Tuberculosis Control Programme (RNTCP)
  • National Leprosy Elimination Programme (NLEP)
  • Iodine Deficiency Disorder Control Programme (IDDCP)
  • National Vector Borne Disease Control Programme (NVBDCP)
  • National Programme for Control of Blindness (NPCB)
  • Integrated Disease Surveillance Programme (IDSP)
  • Immunisation Programme
  • Reproductive Child Health
  • National Rural Health Mission (NRHM)
  • Infant Mortality Rate Mission
  • Navajyoti

Livelihoods Promotion
  • UDISHA - The National ICDS Training Programme
  • Women's Empowerment Programme - Mission Shakti
  • Swayamsiddha
  • Support to Training and Employment Programme for Women (STEP)
  • Women's Economic Programme (WEP) - Swablamban (NORAD)
  • Swadhar
  • Supply of Special Aids & Appliances
  • Training Centres for Teachers for Students with Disability:
  • "Orissa Tribal Empowerment and Livelihoods Programme (OTELP) (EAP)"
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
  • National Rural Livelihoods Mission (NRLM)

Education
  • Midday Meal Scheme
  • Special Schools for children with disability:
  • Construction of 1000 new Girls Hostels

Thursday, September 12, 2013

Analyze This !

I saw two vans simply parked around in block office compound at Balangir district. I don't know which department/agency own the vehicles. Both are marked with the sign of UNICEF. And they are rusting like a junk. Our tax money and foreigners aid money, earned though hard work, in this case are hardly put at work. These vehicles are mere extension of wastage of public goods by our government.

Vehicle at Muribahal Block Office
Vehicle at Titlagarh Block Office,

The most reliable way to save an asset at government workplace? Make sure it is used.

End Notes :
*Photographs are taken by personal phone camera in July 2013.
**No offence to the local governance ! :)