The Role of Non-governmental

organisations in Rural Development

Introduction
India is a land of villages and the Government of India has been implementing
numerous rural development programmes for the upliftment of rural Communities.
Non-government organizations with their advantage of non- rigid, locality specific,
felt needbased, beneficiary oriented and committed nature of service have
established multitude of roles which can effect rural development.

A number of NGOs have been playing a vital role in rural community

development, besides government interventions. Realizing that the government
alone was not able to meet the challenges of the massive enormous tasks in the
process of rural development, the non-profit, voluntary and non-governmental
organizations had to be involved in different phases and activities at the global,
regional and local levels.

Thus, in later phases, both the GOs and NGOs have been actively involved
in transforming the lives of the rural poor. No doubt, NGOs have
been constantly working day-in and day-out to solve various problems concerning
children, women, senior citizens, environment etc.

The NGO sector effectively works towards uplifting the socio-economic status of
the poor. However, for a significant impact in the present era of liberalisation and
globalisation wherein market forces adopt a key role, it becomes essential for the
NGO sector to take a lead in helping poor fight the challenges posed by the
system. NGOs can help the poor by providing access to the system, information
on market opportunities, training facilities, information on sources of credit, etc. in
order to meet the aspirations of rural poor, a unique set of training programmes
are expected to extend for the officials of for better management of the
organization and developmental initiatives.

Non-Government Organizations (NGOs) are playing a very critical role in the

process of managing development initiatives of various kinds at the rural level.
Even the Government of India has recognized the critical role of the NGOs in the
Five - Year Plans, as they have commitment, credibility with the masses and
professional approach to the people's issues unlike the charitable organizations of
earlier days.

Rural India and development

Around 65% of the State's population is living in rural areas. People in rural
areas should have the same quality of life as is enjoyed by people living in sub
urban and urban areas. Further there are cascading effects of poverty,
unemployment, poor and inadequate infrastructure in rural areas on urban centres
causing slums and consequential social and economic tensions manifesting in
economic deprivation and urban poverty.

Hence Rural Development which is concerned with economic growth and social
justice, improvement in the living standard of the rural people by providing
adequate and quality social services and minimum basic needs becomes
essential.

The present strategy of rural development mainly focuses on poverty alleviation,

better livelihood opportunities, provision of basic amenities and infrastructure
facilities through innovative programmes of wage and self-employment.

The above goals will be achieved by various programme support being

implemented creating partnership with communities, non-governmental
organizations, community based organizations, institutions, PRIs and industrial
establishments, while the Department of Rural Development will provide logistic
support both on technical and administrative side for programme implementation.

Other aspects that will ultimately lead to transformation of rural life are also
being emphasized simultaneously. The Government's policy and programmes
have laid emphasis on poverty alleviation, generation of employment and income
opportunities and provision of infrastructure and basic facilities to meet the
needs of rural poor. For realising these objectives, self-employment and wage
employment programmes continued to pervade in one form or other.
Role of NGO in rural development
Non-governmental organization (NGO) is a legally constituted organization created
by natural or legal persons that operates independently from any form of
government. The term originated from the United Nations (UN), and is normally
used to refer to organizations that are not a part of the government and are not
conventional for-profit business.

In the cases in which NGOs are funded totally or partially by governments, the
NGO maintains its non-governmental status by excluding government
representatives from membership in the organization.

Major role seen for NGO’s in rural development:

As economic reform and liberalisation saw the Government vacating several areas
to let private sector entrepreneurship flourish and contribute to the high growth
rate of the economy in recent years, a similar paradigm shift is needed to
transform NGOs from their dependence on aid and grants from within and outside
for transforming the rural scenario in the country.

This is sought to be achieved for the NGOs through engaging them in micro-
finance, microinsurance, and micro-entrepreneurship activities for the overall
development of the rural areas and to promote the welfare of the people of rural India.

India has a long tradition of social service, social reform and voluntary agencies.
NGOs emerged in India soon after Independence when Mahamata Gandhi made a
plea for dissolving the Indian National Congress (the political party which came
into power upon Independence), and transforming it into a Lok Sevak Sangh
(Public Service Organization).

This plea was, however, rejected; nevertheless, it did not halt the formation of
non-governmental organizations in India. Many Gandhi followers established
voluntary agencies to work closely with the governmental programs on social and
economical issues. These agencies organized handicrafts and village industries,
rural development programs, credit cooperatives, educational institutions, etc.

The second stage of growth of NGOs in India was around 1960 when many
individuals noticed that the governmental programs seemed to be inadequate to
deal with the deprived sections of India. These groups formed organizations that
worked on behalf of the poor, the landless, the tribals, the bonded labourers, and
many other social groups that were being discriminated against by the policies of
the state and social structure. These grass roots organizations work at the micro-
level and work with limited resources and lack of coordination.

Since Independence in 1947 until around 1980 there was little effort on the part
of the Indian Government to define the role of a voluntary agency or to recognize
its importance. In 1980, however, with the Sixth Five Year Plan (1980-1985), the
government identified new areas in which NGOs as new actors could participate in
development. These areas included:

1. Optimal utilization and development of renewable source of energy, including

forestry through the formation of renewable energy association at the block level

2. Family welfare, health and nutrition, education and relevant community

programs in the field

3. Health for all programs

4. Water management and soil conservation

5. Social welfare programs for weaker sections

6. Implementation of minimum needs program

7. Disaster preparedness and management (i.e. for floods, cyclones, etc)

8. Promotion of ecology and tribal development, and

9. Environmental protection and education.

Rural Development Schemes and NGO:

The important schemes available from Government of India for Rural Development
are:

 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREG)

 Swarnjayanti Gram Swarozgar Yojna (SGSY)
 Pradhan Mantri Gram Sadak Yojna (PMGSY)
 Indira Awaas Yojana (IAY)
 National Social Assistance Programme (NSAP)
 Department of Land Resouces-DoLR National Land Records Modernization
Programme (NLRMP)
 Integrated Watershed Management Programme (IWMP)
 The Integrated Rural Development Programme (IRDP): The Integrated Rural
Development Programme (IRDP) is a rural development program of the
Government of India launched in Financial Year 1978 and extended
throughout India by 1980. It is a self-employment program intended to raise
the income-generation capacity of target groups among the poor. The target
group consists largely of small and marginal farmers, agricultural labourers
and rural artisans living below the poverty line. The pattern of subsidy is
25 per cent for small farmers, 33-1/3 per cent for marginal farmers,
agricultural labourers and rural artisans and 50 per cent for Scheduled
Castes/Scheduled Tribes families and physically handicapped persons. The
ceiling for subsidy is Rs.6000/- for Scheduled Castes/Scheduled Tribes
families and the physically handicapped;for others, it is Rs.4000/-in non-
DPAP/non-DDP areas and Rs.5000/- in DPAP and DDP areas. Within the
target group, there is an assured coverage of 50 per cent for Scheduled
Castes/Scheduled Tribes, 40 per cent for women and 3 per cent for the
physically handicapped. Priority in assistance is also given to the families
belonging to the assignees of ceiling surplus land, Green Card Holders
covered under the Family Welfare Programme and freed bonded labourers.
RDP is a major self-employment programme for Poverty Alleviation. The
objective of IRDP is to provide suitable income generating assests through
a mix of subsidy and credit to Below poverty Line families with a view to
bring them above the Poverty Line. A family with an annual income of Rs.
20,000/- and below per annum is considered to be below the poverty line
based on the 1998 below Poverty Line Census. The list of individual and
family activities which are eligible for assistance with the unit cost of each is
placed in Annexure. The aim is to raise recipients above the poverty line by
 providing substantial opportunities for self-employment. During the 7th five
year plan, the total expenditure under the program was Rs 33.2 million, and
Rs 53.7 million of term credit was mobilized. Some 13 million new families
participated, bringing total coverage under the program to more than 18
million families. These development programs have played an important role
in increased agricultural production by educating farmers and providing them
with financial and other inputs to increase yields... The objective of IRDP is to
enable identified rural poor families to cross the poverty line by providing
productive assets and inputs to the target groups. The assets which could
be in primary, secondary or tertiary sector are provided through financial
assistance in the form of subsidy by the government and term credit
advanced by financial institutions. The program is implemented in all the
blocks in the country as a centrally sponsored scheme funded on 50:50
basis by the Centre and State. The Scheme is merged with another
Scheme named Swarnajayanti Gram Swarozgar Yojana (SGSY) since
01.04.1999.

The Government runs its large-scale rural development schemes mainly through
the Ministry of Rural Development, National Bank for Agriculture and Rural
Development (NABARD), and Khadi and Village Industries Commission (KVIC).
Besides, some autonomous bodies like District Rural Development Agency (DRDA),
National Institute of Rural Development (NIRD), National Rural Roads Development
Agency (NRRDA) and Council for Advancement of People’s Action and Rural
Technology (CAPART) are also working in tandem with the Government.

An assessment of the Role of NGO’s in Rural Development:

The NGOs have taking active participation in rural development. The rural poor
and socially depressed classes are mainly depending upon the operations of
NGOs. No particular job is particularly meant for the NGOs. Thus, there is a huge
competition among the NGOs to extend the services for the benefit of the poor.
At the same time we should not forget the mushrooming of the NGOs for their
welfare.
The following are the important activities should take up for the development of
the poor.

1. Agricultural related programs: Numerous activities can be undertaken under

agriculture sector. The jobs/projects like distributing planting materials, cattle,
poultry, minor irrigation, free medical care for cattle’s, safe drinking water for
animals etc.

2. Health programmes for human and non-human beings: The works like pit
drainage, housing, creation of smokeless environment, good drinking water for
animals and human beings, regular health checkup camps etc. will improve the
health conditions of the human and non human beings.

3. Community development programs: The community development programs like

adoption of villages for development, moral support during flood and famine
period, supply of food and drinking water during flood, common well, training
programs for the rural youths, housing projects, repair and renovation of houses
etc will satisfy the basic necessities. The important program like training
programs for the rural poor will hold the youths from rural exodus. Even this type
of training programs may also be extended for the rural women, so that we can
expect self sustenance among this community.

4. Human Resource Development programs: The personality development programs,

skill development programs, educational programs, integrated development projects
etc will enable the rural poor to earn bread and butter.

5. Trade and industrial promotion: The important problem in the present context is
availability of the market for the products of rural enterprises. Therefore, an NGO
has a direct link with the government for marketing of the goods. Apart from this,
NGO can also go for training the rural youths in fabrication works, wood works,
beedi rolling, agarbathi manufacturing, printing press etc.

6. Government support: The government (central, state or local) support at all level
is inevitable for rural development. NGOs alone cannot do miracles over night.
Therefore, the government should watch and ward the working of NGOs at phase
wise manner. Thus, the fund or whatever may be directly should move to
beneficiaries. The NGOs should accountable for the funds.
 observations on NGO’s:
1. A few NGOs have been operating without proper direction, organizational
development, good management practices and specific mission.

2. It is also observed from the existing literature that, some NGOs are very lack
in the areas like decision-making for right kind of developmental intervention,
managing socio-economic change and attaining sustainability,

3. There is a direct correlation between the donor funding and the continuation
of the projects undertaken by NGOs in rural areas.

Policy implications:
The following suggestions and policy implications have been made for the further
improvement in their working of NGOs.

1. A short term training programme for strengthening the managerial capabilities

of NGOs will go a long way in improving their performance and effectiveness
significantly.

2. The overdependence of NGOs on funding agencies and the syndrome of

dependency should be reduced by involving the government directly in funding
activities.

3. Donor agencies should also take active initiation in selecting the funding
projects and even selecting of NGOs too.

4. The donor agencies should go for surveying the viable projects for NGOs and
the needs of the people.

5. NGO should also accept the truth that, the funding agencies are no longer
available for the projects which are not viable.

6. Proper monitoring the activities of the NGOs and the enterprises run under
the umbrella is the need of the hour. Therefore, the NGOs should also accountable
for the funds on the one hand and the beneficiaries on the other.
 Conclusion:
Rural India continues to suffer from lack of employment and self-employment
opportunities owing to its narrow economic base. In the recent past, considerable
success has been achieved in developing rural poor through entrepreneurship
development approach which focuses on selectively utilizing local talent,
appropriately developing them through training intervention and linking them with
relevant business opportunities. EDI implemented Rural Entrepreneurship
Development (RED) Approach, in collaboration with NGOs by training their
development workers. One of the major hurdles faced in the process is non-
availability of required and timely financial support to trained entrepreneurs. It
was, therefore, felt that the desired success rate could not be achieved in REDPs
despite best possible training inputs, because of non-availability of funds from banks to
trainees.

References:

1. Indu Bhaskar and Geethakutty, (2001)“Role of Non-Governmental Organisations

in rural development: A case study”, Journal of Tropical Agriculture, 39, pp.52-54.

2. Government of India website, www.ministryofruraldevelopment.gov.in

3. Jain (2006) “Rural development schemes:An overview,” The Chartered

Accountant”, pp.1197-1201.