Xth Plan - Chapter 1

Part-B

1.    Multi-sectoral Issues

      (a) Poverty Reduction

      As regards poverty the first priority would be on the outliers like the tribals who have been denied the benefits of development and even pushed to the margins through the twin process of exploitation and dependence inducing welfarism. The concept of poverty is to be redefined and has to be construed in terms of the level of access to an agreed set of entitlements, which can be progressively enlarged.

      Elimination of poverty requires both macro as well as micro strategies. At the micro level a convergence of programmes, resources and services is called for. This can be achieved only through a demand-led process, which means the poor have to be organized and empowered to participate in the development process through a strategy of self-help. There is need to evolve an anti-poverty sub-plan which could include setting up of micro enterprises for self-employment, enabling people to achieve wage employment through a massive capacity building exercise to enhance the skills and capabilities of the poor, providing wage employment while creating rural infrastructure, targeting basic services to the most needy and providing direct social security to the most vulnerable. In this anti poverty sub-plan the poorest groups like tribals, traditional fishermen and marginalized artisans have to be given special importance. As far as the tribals are concerned the focus should be on empowerment.

      To avoid conflict and unfair competition for anti-poverty funds and schemes, it is necessary to evolve a transparent poverty index primarily related to access to a prescribed set entitlements. Using the index different groups of the poor can be graded and this process supplemented with a participatory poverty assessment, which is already under way in the State. Based on this differential strategies can be worked out according to the characteristics of poverty which affect different groups.

      A five-fold approach to poverty reduction would be necessary. Firstly self-employment opportunities of a permanent nature could be available to the poor both by macro economic strategies aimed at labour intensive growth and micro strategies intended to develop the capabilities of the poor so that they can match the requirements of the formal and semi-formal sectors. Secondly, self-employment through micro enterprises can be promoted through a package consisting of credit, subsidy, skill development, product development and marketing. The mission approach adopted by Kudumbashree may be improved further with better linkages with sister departments and local governments. Thirdly with government and local government support the minimum basic needs infrastructure related to housing, sanitation, water supply, electricity and connectivity have to be provided.

      A different rate of subsidy has to be followed for provision of basic needs infrastructure to individual families, with full subsidy for the lowest decile of the population, 50% subsidy for the next decile and 25% for the third decile. Fourthly the access of the poor to health and educational facilities needs to be mnade easier and an improvement in the quality of these services has to be aimed at. Finally for the most vulnerable groups, a social security system and food security system has to be arranged with higher level of support than at present but with better targeting.

      Within the overall poverty strategy there have to be separate component plans for the Scheduled Castes, Scheduled Tribes and the disabled. In the case of these groups the aim must be to prepare family specific plans for improving quality of life and removing barriers to development. In the case of the Scheduled Castes and the disabled. The prime focus could be on human resource development with the purpose of equipping them to tap the job market. In the case of Scheduled Tribes protecting and upgrading the land resources, value addition to the non-timber forest produce and high quality education support. In remote tribal areas the use of animators from among the tribals to function as bare-foot development and service agents may have to be resorted to. Non-conventional institutional options have to be tried out in the case of education, health, economic development and so on where NGOs with good track record could play a positive role. To make good the loss of land, Joint Forest Management with higher returns to the participating families could be adopted. Preservation of tribal culture and fostering of their traditional knowledge have to be essential ingredients in the empowerment of tribals.

      In conceptualising the plan for reduction of poverty and its implementation the active participation of the stakeholders is absolutely essential and the government has to play a proactive role. In order to identify the opportunities for the poor in the formal and informal economies and to equip them to use the opportunities it may be necessary to use the best expertise available in the country both from the public and private sectors. A close monitoring and a system of concurrent evaluation through third-party agencies would be required, in addition to social audit.

b) Environment

      A broad cross-sectoral approach is suggested to tackle environmental issues. Protection of good quality forests, upgradation of degraded forests and de-emphasizing extractory forestry but encouraging sustainable revenue yielding management and promoting dispersed social forestry through local governments would constitute the elements of forestry development. An integrated view of land, water and biomass translating itself into watershed management with building blocks at the local government level built up to river basin level management plans would be required. For this become a reality there is need for change of attitudes and infusion to technical skills of a multi-disciplinary nature. Departmental boundaries would have to merge and concerted multi-level action required from the irrigation, water supply, agriculture, animal husbandry and fisheries departments with the active support of institutions like Agricultural University, CWRDM and CESS.

      In the case of water resources for bio-mass development large irrigation schemes are no longer relevant. Appropriate micro level water harvesting, water conservation and water management has to be adopted. To start with, probably the old minor irrigation structures have to be rehabilitated through farmer groups and handed over to them. Even in the larger schemes farmer management at the distribution level has to be tried out.

      In the case of drinking water supply community based approaches are required especially in the rural areas both for running the old schemes and for managing the new schemes. Only where small schemes are unviable should larger schemes be attempted. Even in large schemes, unbundling of distribution systems may become necessary.

      For upgradation of the quality of environment solid and liquid waste management, again on a decentralized scale with focus on management, right from the source is required. A total plan for solid and liquid waste management is required where the components at the cutting edge level are prepared and implemented by urban local governments and village Panchayats or groups of village Panchayats. Air pollution is another area, which requires increasing attention.

c) Capacity Building & Work Culture:

In all sectors of activity the promotion of a new work culture has to be stressed for speedy, transparent and honest service to the people. Multiple skills have to be encouraged. Training and retraining will not be viewed as peripheral activities but as essential parts of carrer of each employed person so that he will be able to adjust to changing needs.

A networking of institutions set up by the State government is necessary. In some cases mergers would be advisable. Tie-ups with centres of excellence both in and outside the State would help enhance the quality of training.

d) Use of Information Technology

Kerala has great potential for IT Industry but now accounts only for 2% of the country's turnover. Much remains to be done promotion of IT industry through appropriate policies and provision of infrastructure. IT is to be used for governance to improve public services. A well worked out programme of computerisation of departments is necessary. Computer education has to be urgently started from the upper primary stage. All this can be done with least cost to Government through appropriate policies and programmes. It will be advantageous to undertake the use of IT as a coordinated Mission.

e) Gender Sensitivity

It is necessary to be sensitive to the gender dimensions of development and incorporate them in the Plan through a kind of gender budgeting, which promotes gender sensitive schemes in various sectors in a cross-cutting manner.

f) Social Security

The social assistance (Government schemes for pensions and allowances) and social insurance (Welfare funds) schemes have to be re oriented to make them more effective. Labour market conditioned and gender differences have to be taken into account. Innovative mechanisms have to be formed for enlarging social security including some form of health security, at least to cover those below the poverty line and other low income families.

2. Sectoral Issues

(a) Agriculture and Allied Sectors

In these sectors there is a natural limit to expansion but intensification and quality improvement and optimisation of relative strengths need to be the areas of concentration. The departments of agriculture, animal husbandry and dairy development have to give greater emphasis to extension, transfer of technology, and dairy development have to give greater emphasis to extension, transfer of technology, arrangement of inputs and facilitation of farmer led activities. In order to achieve economies of scale, grouping of farmers on the lines of self-help groups or leasing of adjacent lands to enterprising farmers or groups could prove useful.

These sectors would have to be seen as part of the watershed oriented approach. Bulk of the investment in common infrastructure and in preparation of locality specific action plans should be from local governments co-financing area specific projects and taking up pilots. Rather than spreading resources thin, efforts must be made to concentrate on selected geographical areas with maximum potential for returns.

In the case of agriculture, high value crops including horticulture and organic farming deserve special attention. Development of internal markets through farmer controlled storage systems and outlets could be of special priority.

In the case of fisheries development of inland fisheries needs to be explored. The livelihood issues of traditional fishermen needs to be taken up on a holistic basis skin to the strategy suggested for poverty reduction.

The co-operatives have to route more credit to the primary sector. Co-operatives must be encouraged to be self-supporting and autonomous, assisted by professional management. Legislative changes enabling formation/change of co-operatives on these lines are necessary.

(b) Health

In the case of health difficult decisions have to be taken on resource allocation - between primary health care and secondary ands tertiary health care; between first generation and second generation health problems; between needs of the younger population and the aging population. It is necessary to identify a basket of medical services that are cost effective and benefit the most. The levels at which these services are provided also have to be identified. Beyond the assured level of services, payment in a graded manner may have to be thought of except in the case of the poor for whom special arrangements are required.

While encouraging the growth of the private sector in providing health services a transparent system of regulation and grading has to be introduced probably through independent professional institutions. The link between various streams of medicine has to be established preferably at the level of the PHC.

Some of the reforms in the sector relate to greater autonomy to the tertiary institutions, development of diagnostic, treatment and referral protocols and introduction of generic drugs to bring down the cost of medicine.

c) Education

In this sector the accent should be on reduction of government expenditure and improving quality at even level. In higher education the available infrastructure has to be optimally used through courses in emerging areas. The 'Sarva Sikha Abhayan' of Government of India is to be properly integrated with local governments plans on education.

Institutions like Polytechnics and ITIs have to move on to modern courses. This calls for retraining of the teachers.

d) Infrastructure

Top priority should be given to rehabilitation and upgradation of existing infrastructure on a planned basis with the State Government and Local Governments adhering to a commonly agreed priority in the infrastructure sector. As far as private sector participation on BOT basis has to be encouraged.

Cost reduction techniques and technologies need be integrated into the government standards related to infrastructure creation. Reforms like transparency providing of technical designs by the contractors, performance contracts and third party quality assurance systems could be thought of.

The development of ports, Labours and inland water-ways has to be given special thrust fully utilizing the possibilities of private sector participation.

e) Power

In the case of power a proper energy mix with due share to hydro power has to be identified with special priority for tapping small hydel power potential. Stand alone projects servicing remote areas could be taken up by local governments with the operation and maintenance being entrusted to the local community.

Power sector reforms should focus on improving efficiency of the Electricity Board in all the three functions of generation, transmission and distribution. Non-conventional energy should continue to be encouraged both to service remote areas and to supplement conventional power in areas where there is scope.

f) Industries

An aggressive promotion of private investment is necessary by making the State investor-friendly. For this to happen, procedural delays have to be avoided and attitudinal changes have to be brought about in the labour force. Unfair practices should be strictly discouraged both on the part of management and labour. Changes in laws may be necessary for this and to eliminate unlawful activities like 'Attimari'.

Kerala enjoys comparative advantage in sectors related to information technology, biotechnology and tourism. The gains of the past have to be consolidated and new methods of facilitation especially in development of infrastructure and creation of qualified manpower, adopted.

The cluster based approach to small scale industries needs to be concretized. The traditional industries like coir, handloom and other village industries need to be re-positioned according to the national and international demand for the products. Upgradation of technology and techniques is critical in the sector.

Top priority should be given to Public sector reforms which should be based on viable revival packages as well as mergers and closures, diversification, expansion sand conversion to joint ventures as may be appropriate. As a general rule, the Consolidated Fund should not be used to bolster loss-making PSUs. Professional management should be introduced in all PSUs during the Tenth Plan.

g) Tourism

High priority should be given this sector. The approach should be to select three or four sites with proven demand and potential and plan to develop each of them in an integrated manner as regards infrastructure and services. Maximum private participation should be encouraged through innovative measures.

3. Local Governments

Local governments are expected to plan and implement programmes covering a third of the State's Plan size. Based on the lessons of the past, the gains have to be consolidated and the failures made good. Some of the important areas which demand attention are -

-  Developing a long range Plan with focus on productive infrastructure rather than    distribution of beneficiary oriented assistance.

- Enhancing the quality of planning through proper techniques and scientific ordering of    priority especially infrastructure creation.

- Focus on renewal and upgradation of assets so that they are out to optimum use.

- Integration of plans across tiers of local governments and between local governments    and State Governments.

- Mobilising people's participation and contributions in kind, cash, including special    involvement by NRKs in specific programmes and improvement institutions.

- Improving efficiency in spending and ensuring greater accountability

- Improving the running of institutions and delivery of services, which have been brought    under the local Governments.

- Reassessing the devolution norms and sectoral priorities.