The Hindu Business Line : How can we ensure the trickle-down?

Though rapid economic growth has created jobs for many in the country, the majority of people in India are still dependent on agriculture for their livelihood. Non-percolation of the earmarked funds to the poor people is not a new phenomenon.

Poor farmers get caught up in the debt due to low or no yield from their lands and they even commit suicide as the schemes meant to alleviate their sufferings don’t benefit them in time. Added to this, genetically modified crops have sapped the fertility of the agricultural lands. Villagers need access to proper healthcare, education and vocational training. The villages, in turn, need such infrastructure as good roads, drinking water, transport facilities, banks, phone connectivity, etc. The following measures could be considered by the Government for upliftment of the common man.

a) Rural sector funds should be channelled through panchayats, headed by women; (b) People in rural areas should be assured of free primary education up to the age of 14 years; (c) Subsidies can be routed through Panchayats, as the existing system has proved ineffective; (d) Remedies prescribed by agricultural experts should be implemented to restore the fertility of the soil; (e) National Rural Employment Guarantee Schemes should be implemented in all the villages; (f) Schools, hospitals, colleges, professional and technical institutions should be constructed at least for a cluster of villages; (g) Adequate funds must be made available for all the major schemes; and, (h) Priority should be given for girls’ education. If all these measures are implemented seriously, the urban rural divide will narrow significantly, paving way for development of villages.

*T.S. Sundareswaran,

New Delhi

This question has been nagging economists and policy-makers ever since we adopted the planning model in the 1950s. The ‘trickle-down’ theory is now known as ‘economic empowerment.’

Experts have been stressing the concept of ‘inclusive growth’ in all their plans and policies. During the last 10 years, economic growth has been hovering between 7 per cent and 9 per cent, which is considered excellent by any standards.

No doubt, the government’s policies combined with private sector participation have contributed to this growth. But still, impressive growth has not been enough to remove poverty. Unfortunately, the benefits of higher economic growth have not reached the poor people.

While the economy has been growing, so have urban and rural poverty. It is estimated that only 50 per cent of the funds are utilised for people’s projects. Several projects remain incomplete due to lack of funds or delayed execution. We need strong political will and commitment from bureaucrats to ensure that the earmarked funds reach the targeted people.

K.V. Rao, Bangalore

Due to corrupt practices of the politicians and bureaucrats, the schemes meant for poor people are not reaching them. Poor people also, in turn, are not aware about the schemes to which they are entitled.

To ensure effective implementation of the public distribution system, the Government must provide cards, clearly mentioning various items to which the holders are entitled. This would go a long way in preventing theft and pilferage by corrupt officials.

V. Ramasamy, Noida

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