Partnership For Development - DFID's Country Plan in India

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Partnership For

Development –
DFID’s Country Plan
In India
State Plan For Orissa, 2004-2008

June 2005 version

DFID-Orissa-Fina-24-5-05.p65 1 7/7/2005, 12:05 PM


State Plan for Orissa,
2004-2008
The Department for International Development (DFID)
is responsible for the UK government’s contribution to the global
campaign to eliminate poverty.
About one-third of the world’s poor live in India, so DFID’s work in
India1 is a crucial part of DFID’s efforts worldwide.
DFID works with the Indian government,
State governments and other development agencies to help achieve
the objectives of India’s 10th Five Year Plan and reach the
internationally agreed Millennium Development Goals (MDGs) by
2015. All DFID support is on
grant terms and is separated from the UK’s
commercial interests.

In 2000, DFID focused its work in India on programmes at


national level and in four States. Orissa, with its high poverty
headcount, its stated determination to improve the
living condition of its people and its willingness
to work with DFID, is one of these focus states.
This Plan sets out objectives for DFID’s work to support poverty
reduction in Orissa in 2004-2008. The Plan was discussed
in a consultation exercise with the Government of
Orissa and others in the State.

1
Described in “Partnership for Development: DFID’s Country Plan for India”: DFID India, 2004

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Context and Challenges

I
ndia has substantially reduced poverty in G Poverty varies significantly according to
the last twenty years, nearly halving the region, social group and gender in Orissa.
number of people below the poverty line. The State’s high proportion of Scheduled
However, the benefits of India’s development Tribe people4 are particularly likely to be
have been uneven. Orissa has become one of among the long-term poor. As in many
India’s poorest States. States, women are disadvantaged, with
low literacy and high maternal mortality.
The challenges facing Orissa are G Indicators relevant to all MDGs show
well known: positive trends in Orissa, but none of them
G India’s Planning Commission has identified is likely to achieve the target proportionate
Orissa as having the highest overall poverty change by 2015.
ratio of any major Indian State, with
around 48% (17 million) of the population Table 1: Orissa rural poverty profile by
living below the Government of India region and selected social group
poverty line. Region* Poverty headcount ratio
G Orissa’s government has acknowledged it
as the most heavily indebted of India’s Coastal 31.7

major States, and has stated that the fiscal Southern 87.1
crisis is incompatible with development.
Northern 49.8
Orissa’s economy is highly dependent on
the agriculture sector, where growth is Social Groups** Poverty headcount ratio
sluggish.
Scheduled Tribe 63.6
G Orissa’s literacy is below the national
average and demonstrates gender and Scheduled Caste 40.5
2
social variations . Infectious diseases
Others 32.9
(acute respiratory infections, diarrhoea,
* for 1999-2000. Source: Arjan de Haan with Amaresh Dubey , Extreme
tuberculosis and malaria) and under- Deprivation in Remote Areas in India: Social exclusion as explanatory
concept ,CPRC Manchester Conference, April 2003
nutrition are serious problems, and Orissa ** for 1993-94. Source: Orissa Development Report, Planning Commission
as reported in Panda (2000)
still has one of the highest infant mortality
rates among Indian States despite Despite its challenges, Orissa has many
3
significant improvements since 1992/93 . advantages, including forests covering almost
G Poverty among marginalised groups in 40% of its land area, a long coastline, valuable
rural areas is a long-term challenge. mineral resources and a unique cultural
Orissa has faced setbacks because it is heritage. The Government of Orissa has
vulnerable to both slow-onset and rapid- published ambitious development targets in
onset natural disasters including droughts, its 10th Plan5 and accompanying White
floods and cyclones. Papers6 . DFID will seek to deepen its

2
All data from 2001 census
3
NFHS data
4
22% of Orissa’s population are Scheduled Tribe compared to all-India level of 8%; 16% of Orissa’s population are Scheduled Castes which equals the
all-India proportion (1991 census)
5
Poverty headcount to be reduced by 5 percentage points during the 10th plan period (2002-7), with further targets until 2015. Other 10th Plan targets
cover employment, schooling, literacy, population, infant and maternal mortality, forest cover, potable water and pollution control
6
White Paper on State Finances 2001, White Paper on Public Enterprise Reform 2002 and Medium Term Fiscal Plan 2000-1 to 2004-5

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understanding of Orissa’s unique context,
including the factors that limit growth and
keep people in poverty despite the State’s
advantages; and is committed to supporting
Orissa in 2005-2008 to build on its
advantages to reach its poverty reduction
goals.

Objectives of DFID’s programme in


Orissa, 2004-2008
funds for work towards the MDGs and 10th
Plan goals.
Objective 1:
Poverty reduction through
accountable governance and Given the need to plan effectively to
effective use of resources address the causes of poverty and measure
the impact of actions taken, we will continue
The Government of Orissa set itself a to support the work of the Government of
th
poverty reduction target of 5% during the 10 Orissa’s inter-departmental Poverty Task Force
plan period. But it has acknowledged that (PTF). Effective communication with the
without decisive action to promote public about Government’s poverty reduction
accountable government and address the plans, and stronger poverty monitoring
causes of Orissa’s fiscal crisis, resources will systems, are essential if Orissa’s poverty
not be freed up to reduce poverty. DFID will reduction targets are to be met.
support the Government of Orissa to free
those resources and invest them effectively Objective 2:
for poverty reduction. A coordinated approach to human
development so as to improve
health and education outcomes,
“If the policies and strategies so far followed continue to
be pursued unchanged, all the resources generated would
especially for the poor
be used up in debt servicing and unproductive
expenditure, with little or no money left to take up any DFID supports the Government of Orissa’s
developmental work worth the name”. intention to improve health outcomes and
Government of Orissa White Paper on
reduce disparities according to region, gender
State Finances (2001)
and vulnerable social group, as set out in its
Health Sector Policy and Strategic Framework.
Central to this work is the Orissa Socio- Once preparation of this strategy is complete,
Economic Development Programme, DFID can offer financial support to help
supported by the World Bank. DFID will
work closely with this programme, providing
advice and technical assistance in priority
areas such as public sector reform, public
financial management and improved service
delivery. There is also a case for financial
support from DFID to enable the State
Government to access Government of India

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implement it. This financial support is not
linked to specific elements within the health
sector, and could therefore help improve
health services for all. However, in monitoring
the impact of this approach DFID would
focus on outcomes for the poorest. Effective
coordination with National Rural Health
Mission programmes (NRHM), with other
organisations in the health sector, and with
other sectors which affect health outcomes
(such as water and sanitation, nutrition and and forestry management, agriculture and
food security) will be important. non-farm activities, strengthened land
administration, and empowerment of
Scheduled Caste and Scheduled Tribe
communities. DFID-assisted projects
(Western Orissa Rural Livelihoods Project,
Orissa Tribal Empowerment and Livelihoods
Programme) will continue to work on these
issues in deprived districts throughout the
period 2005-2008. These projects also aim to
generate valuable ideas for policy-makers at
DFID strongly supports India’s State level.
commitment to universal elementary
education and will continue to fund the Continued stagnation in Orissa’s economic
District Primary Education Programme (DPEP) growth rate could threaten all development
in Orissa until 2008, when Sarva Shiksha work in Orissa. We support the Government’s
Abhiyan (SSA) will take over in the current commitment to “equity-oriented growth” -
DPEP districts. DFID is already contributing to both to accelerate economic growth, and to
SSA at the India national level. In Orissa, ensure that it offers opportunities to all.
DFID also assists the reconstruction of Building on our current work supporting the
primary schools destroyed by the 1999 Government’s
super-cyclone. Industrial Policy
Resolution 2001,
Objective 3: there is potential
Improved and sustainable rural for additional DFID
livelihoods and economic growth assistance to help
opportunities for the poor boost economic
growth, focusing
Orissa is the least urbanised of DFID’s
on sectors which
focus States, with 85% of the population
offer most
living in rural areas. DFID supports efforts to
opportunities to
reduce Orissa’s rural poverty and promote
the poor.
better livelihood opportunities for the poor,
for example through improved watershed

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Priority themes throughout all Communications: Consultation with poor
objectives people on development policies, and ensuring
Inequality: A key challenge for policymakers they have access to information, has the
is to ensure that Orissa’s development path potential to help build strong constituencies for
prioritises opportunities for disadvantaged reform. We will continue to support
communication between Government and
other key stakeholders in Orissa on tackling
poverty reduction together. DFID’s Civil
Society and Poverty Programme will help
empower civil society organisations, through
capacity building and strengthening the
demand for accountable governance.

Implementing the programme


DFID’s programme will be implemented in
partnership with the Governments of India and
regions and groups. DFID has reviewed all its Orissa and with other partners in Orissa. We
work in Orissa to assess the role we can play in use mechanisms including technical assistance;
tackling inequality and social exclusion, and financial aid to sectors such as health;
will continue to monitor this projects; research; and
throughout 2005-08. transfer of financial
resources via
Disaster risk partner
reduction: organisations.
Orissa is DFID world-
vulnerable wide is under
to natural pressure to
disasters reach its
including objectives
flood, more
drought and efficiently, so
cyclone, we will focus
and the our efforts in
Government’s Orissa on a few high-
response has rightly value interventions,
moved from relief to long- carefully chosen in consultation
term emphasis on disaster risk with partners. DFID is unlikely to start
reduction. Vulnerability to disaster will be work in sectors which are not aligned with the
considered in the design of all DFID work in objectives above, or where others are better
Orissa. In case of a major rapid-onset placed than we are to lead.
disaster, DFID would be guided by the
Government of India on the need for Rigorous performance monitoring of DFID’s
provision of emergency relief. work will continue. Individual initiatives within

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Over the period 2004-08 DFID intends to
strengthen its partnership with Orissa,
drawing on the rising India funding allocation
above. The exact scale and profile of
expenditure in Orissa will depend on progress
towards the State’s development goals and
DFID’s programme objectives, and on the
mechanisms which DFID is able to use to

our programme will be subject to specific support the State’s progress.

monitoring and review arrangements, while the


overall impact of our programme will be subject The major risks to the DFID programme

to a regular formal review with Government and would be a deepening of the fiscal crisis, or a

with other partners in the State. weakening of the Government of Orissa’s


determination to address the crisis and invest

In India, DFID works with UN freed resources to tackle poverty. Continued

organisations, the multilateral development stagnation in Orissa’s economic growth rate,

banks, other bilateral agencies, civil society lack of capacity to

organisations, NGOs and the private sector. In implement the

Orissa, DFID works with these partners to State’s ambitious

share information and coordinate approaches development

so as to maximise impact, especially in key programme, or

areas such as health or livelihoods. We can failure of actions to

also transfer financial resources via partner improve the

organisations in areas where they are better transparency and

placed than DFID to lead. accountability of


public services would
also threaten the
Resources
achievement of
7
DFID’s expenditure in Orissa was as follows : Government’s - and
DFID’s - aims.
2001-02 2002-03 2003-04 2004-05
Finally, in the context
£22m £49m £12m £20.48m of Orissa a key risk is

Rs. 165 cr Rs. 368 cr Rs. 96 cr Rs. 163 cr of external shocks,


such as natural disaster on the scale of the
1999 super-cyclone.
DFID’s financial forecast for India over
the next few years is as follows8 :
DFID provides support to mitigate some of
2005-06 2006-07 2007-08
these risks within its programme in Orissa.
£280m £285m £300m Assessment of these risks would also be a key
factor in deciding the future shape and scale
Rs. 2240 cr Rs. 2280 cr Rs. 2400 cr
of the DFID programme in Orissa.

7
At average conversion rates at the time
8
Forecast figures at December 2004

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DFID’s Programme in Orissa 2005

Objective 1
Orissa Public Sector Reform Project (II)
Orissa Public Enterprise Reform Programme (Phase II)
Orissa Civil Society and Poverty Programme

Objective 2
District Primary Education Project and Sarva Shiksha Abhiyan, Orissa
Reconstruction of Primary Schools
Support to Orissa’s Health Sector Plan

Objective 3
Western Orissa Rural Livelihoods Project
Orissa Tribal Empowerment and Livelihoods Programme
Support to the Government of Orissa’s Industrial Policy Resolution 2001
Support for Strengthening of Land Administration in Orissa

Designed and produced by: Silverline Communications

Department of International Development (DFID)


British High Commission
B-28, Tara Crescent, Qutub Institutional Area, New Delhi-110016
Ph: 91-11-26529123
Email: silverlinecom2003@yahoo.com

Fax: 91-11-26529296
Website: www.dfidindia.org

DFID India-Orissa
17, Forest Park, Bhubaneswar-751009, Orissa.
Ph: 91-674-2533359 91-674-2530512
Fax: 91-674-2530228

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