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Unit 3: Planning and Economic Development in the Era of Globalisation

The Union Cabinet in its meeting on 20th January 2004 accorded in principle approval for the Notes
execution of PURA within the existing gross budgetary support for bridging the rural-urban
divide and attaining balanced socio-economic development. The Government envisages
development of over 4,000 rural clusters located in backward areas. A sum of ` 3 crore for each
cluster was offered and therefore, ` 12,000 crore were to be spent on the development of 4,000
PURAs.

Assessment of PURA Model of Rural Development

It will be surprising for you to know that it was Mahatma Gandhi who underlined the exploitation
of rural society by its urban counterpart. Gandhi wrote in Village Swaraj:
“The British have exploited India through its cities. The latter have exploited the villages. The blood of the
villages is the cement with which the edifice of the cities is built. I want the blood that is today inflating the
arteries of the cities to run once again in the blood vessels of villages.”
As a policy statement, Gandhi stated:
“The cities are capable of taking care of themselves. It is the villages we have to turn to.”
Gandhi to develop a harmonious relationship between the cities and villages categorically
mentioned:
“It is only when the cities realize the duty of making an adequate return to the villages for the strength and
sustenance which they derive from them, instead of selfishly exploiting them, that a healthy and moral
relationship between the two will spring up.”
There is definitely no doubt that the planning procedure did make an effort to develop the
villages through community development projects. Irrigation facilities were expanded and
green revolution did provide an opportunity to the rural people to increase their share in
national and per capita income, however still the rural-urban divide carries and there is a
relocation of population from rural to urban areas. Urban population which was 17.3% of the
total in 1951 has increased to 27.8% in 2001. In absolute terms, as against 62 million persons
living in urban areas in 1951, the numbers crowding in them have rose up to 285 million-an
increase by 357 per cent. This has generated problems of congestion and growth of slums.
You must observe that the goal of PURA is to propel economic development without population
transfers. To explain in the words of late Prof. A.M. Khusro:

“Instead of moving human beings where infrastructure exists, it is better to take infrastructure to villages
where human beings live. The PURA concept is the response to the need for creating social and economic
infrastructure which can create a conducive climate for investment by the private sector to invest in rural
areas.”
It is important to note that on the other hand a mere provision of ` 3 crore per cluster as against
the need for ` 100 crore is too meagre. The best way to shelve a proposal is to accept it in
principle and make a modicum of investment towards its implementation. Such a move is
potential to kill the proposal. Actually, there was need for giving a more severe thought to the
proposal and to support it to attain success. But such a thin layer of the investment as intended
by the Cabinet is not going to attain the objectives of PURA.
A more pragmatic method would have been to select almost 600 blocks in the backward areas
and invest at least ` 25 crore per block to provide the needed infrastructure to Block Development
Committee throughout the Tenth Plan, the remaining 35% and 40% should be granted in the
Eleventh and the Twelfth Plan. Those states which promise to provide 20% out of their revenues
should receive 80% grant from the Central Government. This would have needed the Centre to
contribute ` 20 crore and with the present level of support of ` 12,000 crore, the PURA concept
could have made a dent in formulating the backward areas.

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