Home / Opinion / Articles / Alleviating urban poverty by rural development

Alleviating urban poverty by rural development

[vc_row][vc_column][vc_column_text]world this weekRural development is one of the essential means in improving socio-economic conditions of the individuals living in isolation and in populated areas. For years now, rural development was understood as “institutional reforms in agriculture and forestry”, where as crucial aspects such as rural poverty and malnutrition was never discussed. With rapidly growing urbanization, this message too faded away, thousands left their homes in rural areas and migrated to urban cities in search for employment. This mass movement drastically affected key sectors such as tourism and handicrafts industries. In an effort to re-stabilize key industries, government began new and innovative programs to bring back lost attraction in rural cities, focussing on viable touring spots to prevent the message of “just farms”. This then instigated interests of many private entities to start new businesses in rural areas using new innovative technological means. Many private entities showed their interests in reinforcing key development factors such as education and entrepreneurship, while many focussed on providing necessary infrastructure. Rural development will flourish by developing local economic opportunities. More interestingly, unlike urban cities, rural areas are quite distinctive from each other. This is precisely the reason as to why global companies and so is the government taking time in creating viable policies for rural development. When we discuss rural development, we are only focussing on socio-economic development of individuals in rural areas. These programs include variety of stakeholders, starting from local government authorities, rural development think tanks, NGOs, national governments and international development organizations. More importantly, local individuals are crucial players and their involvement is absolute necessary for rural development. Rural development is not only limited to developing economies. Interestingly, many developed countries has effective and efficient rural development programs. The main objective of the central government is to promote socio-economic development in rural areas. Through rural development, individuals will be able to avail new schemes which will further increase their lifestyle while providing employment opportunities increasing their participation in decision making process. It is imperative for all communities to take part in sustainable development. Urban poverty and migration Urban poverty is a multifaceted issue. Individuals migrating from rural areas live in extreme poverty. It affects national growth and hampers all the efforts and initiatives taken by the government to control population growth. Urbanization affects sustainable development goal and is critical in alleviating poverty. The economics of city may attract foreign investors but we need entrepreneurs to ensure an overall economic growth. Individuals migrate to cities for better jobs opportunities, extensive available resources, and for will some run from social and religious boundations, however they are soon met with the harsh realities such as unemployment forcing them to live in makeshifts homes or slums. Thus, cities then become overcrowded, congestion increases, unemployment hits them hard, and poor social connectivity, they are forced to do odd jobs while forcing some to crime and violence. Many of such individuals will benefit only from a concrete urban development policy as most of these individuals are low skilled and then struggle to survive every day. Policy makers need to focus on better policies both at regional and at national levels, while giving adequate attention to planning of urban cities. Looking at most of the major cities in developing economies, city management have become a crucial challenge. People migrate to cities because, employment opportunities, better health care services, all of which are centralised. Most of the individuals migrate to earn money. Most of the major entities have focussed their attention in cities. Whether it is trade, tourism, forex management, all the major entities have established their headquarters in cities, but giving opportunities only to the ones with necessary skillset. With economic opportunities a major reason for massive migration, yet economists are unable to link it with growing globalization in China and India. This flight lands because of globalization. In rural areas, people are unable to get direct access to manufactured goods, as their lifestyle is quiet subjective. Farming is quite unproductive as rapidly changing climate makes brings rural farmers into a difficult spot, and in extreme drought, farmers are then forced to take their own life due to heavy financial loans. Cities provide valuable services which rural areas does not. In order to have these services in rural areas, the need for manpower will eventually increase, creating ample of job opportunities. Those in need of series medical care can be then easily moved to cities. Individuals are not given necessary educational opportunities in rural areas which again become a factor for migration. Steps to create migration to rural areas Microcredit Those entrepreneurs and small business owners seeking financial assistance can now fulfil their needs through microfinancing. Today, the discussion on microcredit revolves around controversies. Experts say that they reduce poverty and increases socio-economic status by providing higher income and higher economic opportunities. This substantially decreases malnutrition and improves the level of education for children. Many experts say that microcredit assist in women entrepreneurship. On the contrary, many critics believe that microcredit does not increase incomes, forcing many poor families into debt traps, forcing families to suicide. Critics say that microcredit fails to empower women, and that it has neither improved health care system nor has helped increase the quality of education. While discussing microcredit, one should take all accounts into consideration, especially the financial benefits it provides. Through this initiative, financial assistance can be provided to those with low income opportunities in an effort to release them from the grip of poverty while improving their economic conditions. Those unable to get the necessary assistance, they look for informal groups where they are heavily charged and oppressed by money lenders, microfinancing is an effective alternative. Because of inadequate financial assistance, microcredit enables these individuals to seek help from top financial firms, which will pull them from the grip of poverty. Microcredit prevents “social collateral” damages. Since these individuals have nothing to offer in return for loans, this is collateral social damage. There is an absolute need to form new borrowing groups or reform and restructure the old ones. The standard micro credit loan is possible when the borrowing groups allow relaxation in repayment. Repayment is one major issue that prevents individuals from taking loans. One such active model is, individuals taking loan one at a time, which means that the next individual will not receive the loan as long as it is repaid. This cycle is active only when people pay loan on time. Those who are unable to pay, affects other individuals from taking loans. As these incentives are structured to benefit the lender rather than the borrower, borrowers are then subjected to numerous pressure, threatening and all sorts of violence if they miss their deadline for repayment. Foreign Investment To have an exponential growth, it is important for policy makers to address the need for FDI effectively and immediately. Foreign investment will involve foreign management to actively participate in decision making. This is one of the matured initiatives involving foreign companies to invest and benefit both, their companies and their partnered in India, while ensuring growth and opening opportunities in development sectors. Foreign Direct Investment (FDI) ensures the involvement of foreign organizations and enterprises to take p-art in crucial development of the host country, thus giving numerous economic opportunities to the people, there by expanding their business and inviting other stakeholders to participate and further exponentially increase their business. Foreign direct investment is a massive step ahead than the previous models of shares and bonds. FDI is one way to ensure economic growth and development of the host country as it increases influx of many entities and foreign enterprises which pay the set government taxex, benefitting the government and assisting them in their development model. Nations often invite companies in infrastructure development, however, with FDI, the models can be replicated in many sectors, from rural development to urban and in defence. With influx of companies, there is heavy competition in the market which further increases efficiency in the host nation which further helps in improving governing models. Foreign investment creates an opportunity for Indian companies to work with foreign entities in sectors like skill development, enabling them to use the state of the art technology and access to infinite resources. By creating greater economic opportunities, the local market gets adequate skills with individuals landing with jobs. Undoubtedly, FDI brings greater economic opportunities and effectively works in providing overall growth to the nation, increasing the nation’s access to state of the art technology, and creating economic opportunities for all individuals. Furthermore, FDI integrates the markets of developing economies to the global market and increases the capital in the market, leading to the necessary economic growth required for poverty reduction which then increases the standards of living. Although, many nations have understood the importance of FDI and they have actively began working in reducing the trade barriers. It is now time for FDI to take active role in rural development. Public Private Partnership (PPP) As the name suggests, it involves two of the most important stakeholders in development, the private sector and the government. They are popularly known as the PPP or P3. It is one of the crucial methods of involving private entities and government agencies in development. PPP is more than just a contract between key development agencies and private entities, it is a responsibility shared by the two stakeholders in development. They share their technical, operational and financial expertise in development initiatives. In most of the P3 initiatives, neither the stakeholders have to finance, the entire finance is achieved by taking minimal fees from the people directly as they are benefitting from the project. While, in some of the projects, the government agencies bear the finance while private sector use their key technical expertise and experience to administer the entire project and ensure the completion of it in time. Government agencies invite private entities to assist in key projects in the infrastructure sector, technological sector and sectors with respect to skill and training, here the government then provides one-time subsidy, in an effort to generate interests of private enterprises. In most of the cases, government then give half of the subsidies of the entire revenue model of the project, and eases the private players financially. Rural Tourism In an effort to change the rural lifestyle, policy makers need to create new policies, such as rural tourism. Individuals are very much aware about the rural ecosystem, which then forces them to migrate to urban areas, this however, is new initiative to bring back those leaving rural areas through development and involvement of private entities in crucial projects, which will put a stop to urban migration. As a matter of fact, people living in rural areas are famous for their hospitality and humble nature, which is why, private entities will receive a warm welcome. Agriculture today, is increasingly becoming mechanized, thus decreasing manual labour, however, in rural India, most of the work are still manual, leaving a huge dis connect between technology and farming. This is then increasing economic pressure on farmers, which then forces young population to migrate to urban areas. There is still a section of people interested in returning to their homes in rural areas only on a condition of better economic opportunities and better lifestyle. This concept has never been introduced thus, making it an absolute necessary for developing economies especially India to introduce this initiative. Rural tourism then can become more than just a vacation for people, it will then re-stabilize our agricultural economy. Rural tourism is necessary for developing economies, especially those nations who are experiencing rapid migration of people to urban cities. The generated wealth creates further economic opportunities, brings back the lost confidence of farmers and supports them through various technological means. This is one of key initiatives, policy makers need to address.[/vc_column_text][/vc_column][/vc_row]

About AsiaTimes

Check Also

Financing global Food Security: What Policy Maker needs

[vc_row][vc_column][vc_column_text]With scarce resources rapidly depleting, volatile climate, followed by rapidly growing population, food security has …