Rural development must measure not just what people earn but also how they live
By Dr Sonal Mobar Roy
With more than 63.64 per cent of the population living in villages, India continues to be a conundrum. Villages represent history, culture and tenacity, yet poverty has its darkest traces there. The persistence of poverty in rural areas despite more than 70 years of development strategies begs the crucial question of whether our initiatives are tackling the underlying causes of inequality or just the surface.
Economists approach the issue from a growth-centric perspective, emphasising fiscal policies and GDP data, even if sociologists call for structural change that ends inequalities and builds stronger communities. But is either perspective enough?
Economists’ Approach
Economists contend that quantifiable results like GDP growth, infrastructure development and job guarantees are the most effective ways to combat poverty. Programmes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and Pradhan Mantri Gram Sadak Yojana (PMGSY) illustrate this viewpoint. The MGNREGS has provided over 2.11 billion person-days of employment annually, while the PMGSY has connected more than 90 per cent of eligible habitations, facilitating market access and reducing economic isolation.
Yet, numbers can lead to a blurry picture. While India’s GDP growth, projected at 6.4% for FY2024-25, reflects a positive macroeconomic trend, it does not fully account for rural-specific challenges such as stagnating agricultural incomes and unequal access to resources. This underscores the need for policies that address the distinct dynamics of rural economies to ensure inclusive growth.
Recent wage increases under the MGNREGS — ranging from Rs 234 in Nagaland to Rs 374 in Haryana — mask the underlying issue of delayed payments and inadequate inflation adjustments. While the data indicates progress, the long-term success of these schemes depends on addressing systemic challenges to ensure they deliver sustained and transformative outcomes.
Sociologist’s Approach
Recent wage increases under MGNREGS — ranging from Rs 234 in Nagaland to Rs 374 in Haryana — mask the underlying issue of delayed payments and inadequate inflation adjustments
Sociologists argue that growth alone cannot eradicate poverty unless it addresses entrenched hierarchies and inequities. Empowerment, they contend, is the cornerstone of meaningful development. Programmes like the Deen Dayal Antyodaya Yojana-NRLM (DAY-NRLM) have shown promise by building social capital through self-help groups (SHGs) and women’s collectives. For example, SHGs under DAY-NRLM have encouraged long-term resilience by enlisting almost 10 crore women in economic activity.
Data from the National Family Health Survey (NFHS-5) shows glaring inequalities, such as the alarmingly high rate of child malnutrition and the 57% anaemia rate among mothers. These health indicators highlight underlying issues that need longer-term, more concentrated intervention. Sociologists contend that in order to solve such ingrained issues, initiatives like the Poshan Abhiyaan need to incorporate local and cultural knowledge. However, obstacles like inconsistent supply chains and deficiencies in frontline worker training can prevent these well-meaning initiatives from reaching their full potential.
Bridging the Divide
The intricacy of rural poverty cannot be adequately conveyed by statistics or stories alone. A combination of these strategies will shape the future. One example is the MGNREGS. In addition to paying wages, it prioritises building communal assets like plantations and water conservation buildings, which helps reduce poverty (SDG 1) and promote climate resilience (SDG 13). However, its potential is diminished by lack of convergence with complementing initiatives, delays in wage disbursement and gaps in planning.
Reports from around the world support this necessity for integration. While WHO data emphasises tackling social determinants of health to break poverty cycles, the World Development Report 2023 emphasises the crucial importance of human capital in sustainable growth. These insights underline the need for rural policies that blend economic incentives with sociological empowerment.
Policy Innovation
To make a big difference, rural development programmes need to transcend traditional silos. Initiatives for skill development like the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) must align with local employment vacancies to prevent skill mismatches. The Pradhan Mantri Awas Yojana-Gramin (PMAY-G) housing scheme should include participatory planning to take climatic and cultural peculiarities into consideration.
There is still unrealised potential in technology. While real-time dashboards can help with issues like delayed wage payments in MGNREGS, geospatial technologies and AI-based analytics can improve programme monitoring. Spatial mapping and planning can have crucial development impact. But technology cannot replace community service. Policies must prioritise participatory governance to ensure that development is inclusive and reflects local objectives.
The Path Forward
The debate between economists and sociologists isn’t about opposition — it’s about balance. Sociologists supply the breadth of contextual knowledge while economists provide the accuracy of quantifiable objectives. Together, they may develop plans to improve rural India’s social, structural and economic conditions. There is a lot in the queue. India’s rural areas are more than just a constituency; they form the foundation of the nation’s future. There has never been a greater need for coordinated, creative and inclusive solutions as governments struggle with poverty and inequality.
On a lighter note, a sociologist and an economist enter a village. The economist asks the sociologist, “What’s the biggest challenge in rural development?” The sociologist replies, “It’s not just about improving income — it’s about improving dignity.” The economist, confused, asks, “Dignity? How do we measure that?” The sociologist smiles, “You can’t — it’s priceless.” Rural development must measure not just what people earn but also how they live, and that’s a tea worth brewing.
(The author is Assistant Professor, Centre for Wage Employment and Livelihoods, National Institute of Rural Development and Panchayati Raj, Hyderabad. Views are personal)