Top bureaucrats recently gathered at the Prime Minister’s Office to discuss ways to bridge the urban-rural divide, prevent migration to cities and counter the absolute poverty rate. There were two parts to the talks: one, start a search for sound policy frameworks at the national and regional level; and two, accelerate investment in poverty-eradication programmes.
The absolute poverty rate in rural India is 26%, almost twice that in urban India. Data from the Central Statistics Office of India discussed at the meeting said the most-urbanised states are richer and grow faster while poverty rate is often much greater in rural areas.
A key proposal that emerged during the talks is that the government would task five-six social sector ministries to work out a policy focusing on urbanisation — making core public services available to the people alongside building a governance system that protects the poor and those vulnerable to drought and flood.
The government has accordingly asked the concerned ministries to put their proposals on paper for discussion in the Union cabinet. The effort is to produce something concrete before the next general election.
An area the government should focus on by 2020 is increasing investment — with greater international cooperation — in rural infrastructure, technology development and livestock gene banks to increase productivity.
Besides, if the government is realistic about providing people greater access to drinking water, sanitation, electricity, education and health care, more funds would be required.
Providing access to essential health services and safe/affordable medicines would be a major challenge. There would have to be an increase in healthcare financing as well as recruitment and retention of healthcare workers, especially in far-flung villages.
The meeting had flagged the draft confidential report of the Organisation for Economic Co-operation and Development, highlighting that at 3.8 per cent of GDP, public spending on education is low given the very high school-age population ratio.
Also, India spends only four per cent of GDP on health care, less than half of the amount spent by Brazil and South Africa. The plan is to increase spending by 1-2.5 per cent of GDP by 2020.
Another tough challenge would be to increase the access of small-scale, medium and other enterprises to financial services. The proportion of credit flow to small units would also have to be enhanced.
There have been several brainstorming sessions in recent months and a flurry of activity. But the need of the hour is to ensure that implementation on the ground keeps pace with it.