Transformation of Rural Economy During Last Decade and Its Impact on Rural Women in Un-Organized Sector
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TRANSFORMATION OF RURAL ECONOMY DURING LAST DECADE AND ITS IMPACT ON RURAL WOMEN IN UN-ORGANIZED SECTOR FINAL REPORT DECEMBER - 2006 SPONSORED BY GOVERNMENT OF INDIA PLANNING COMMISSION, (SER DIVISION) YOJANA BHAVAN, NEW DELHI PREPARED BY MARATHWADA INSTITUTE FOR TRAINING RESEARCH, EDUCATION & EMPLOYMENT [MAITREE] 291, "PUSHPAK", SAMARTHNAGAR, AURANGABAD. [MS] PHONE NO. 0240-2343215/2335411 1 TRANSFORMATION OF RURAL ECONOMY DURING LAST DECADE AND ITS IMPACT ON RURAL WOMEN IN UN-ORGANIZED SECTOR CHAPTER SCHEME Sr. Chapter Scheme Page No. No. 1. EXECUTIVE SUMMARY 01-06 Chapter – I : Objectives, Scope and Methodology 1. 07-22 of Study Chapter - II : Socio–Economic Background of 2. Selected under developed Districts / 23-59 Area Chapter – III : Socio-Economic Background of the 3. 61-100 Selected Developed Districts /Area . Chapter - IV : Impact of Transformation Rural 4. Economy on Women working in Un- 101-186 organized Sector 5. Chapter - V : Conclusions & Recommendations 187-192 6. List of Tables 7. List of Figures 8. Annexure –A i. Village Level Schedule ii. Entrepreneur/Establishment Level Schedule iii. Labour Schedule iv. Employer Schedule 2 TRANSFORMATION OF RURAL ECONOMY DURING LAST DECADE AND ITS IMPACT ON RURAL WOMEN IN UN-ORGANIZED SECTOR EXECUTIVE SUMMARY 1. This research study deals with the impact of transformation on rural women workers and entrepreneurs in rural areas of Maharashtra State. The study refers to the decade 1994-95- 2004-05 and is divided into 5 Chapters. 2. The major objectives and hypotheses of the study are : impact of transformation on rural women workers and entrepreneurs in un-organized sector; migration, skill development, level of income and standard of living, women empowerment, etc. 3. The following methodology is followed: Two backward and two developed districts from out of 35 districts in the state have been selected to make a comparative analysis. From each of the 4 districts, 2 blocks each (i.e. 8 blocks) were selected. Again from each block 10 villages (or total 80 villages) were selected. Finally, from each village 10 women workers/entrepreneurs, were selected or 80 X 10 = 800 total sample. 4. Second chapter deals with the socio-economic background of the 4 selected districts, i.e. geographical area, population, sex- ratio, urban/rural population, economic structure, classification of workers, land utilization, infrastructure facilities like road, irrigation facilities, electricity, communication, industrial 3 development, Human Development Index, etc. The selected backward district are: Beed and Ratnagiri while the developed districts are Nagpur and Kolhapur. 5. The third chapter discusses the socio-economic backgrounds of the selected developed districts of the study, i.e. Nagpur and Kolhapur. All the socio-economic aspects of the district economy are discussed in this chapter. 6. The fourth chapter deals with the impact of transformation of rural economy on women workers and entrepreneurs in unorganized sector of the district economy. The coverage of the sample is as follows. a. Beed and Ratnagiri (backward districts): i) 256 women entrepreneurs ii) 144 labourers or women workers. b. Nagpur and Kolhapur (developed districts) i) 244 women entrepreneurs. ii) 156 women workers. In this way a total sample of 800, which included both women entrepreneurs (500) and women workers (300). This chapter also discusses, the structure of population of the sample Gram Panchayat, working and non-working population level of education, skill development, caste-structure, pattern of land holding, housing facilities, nature of employment, level of income before and after transformation. 7. Major Conclusions: The main objective of this study is to measure the impact of transformation, on the level of incomes of both women workers, as well as women entrepreneurs belonging to underdeveloped 4 and developed districts under study: i.e. between 1994-95 and 2004-05. i. It was found that, the median annual income of the sample women workers before the transformation in under-developed district, was Rs.15789, which increased, Rs.23556, after the decade, showing a rise of 49.2% over the reference period. ii. Similarly, the annual median income of the sample women workers in developed districts, before transformation was Rs.15, 889 which increased to 26286, after the decade showing a rise of 65.4% over the reference period. iii. However, the percentage rise in incomes of women workers in developed districts was relating higher than the percentage rise of income of women workers in under- developed districts. iv. Another important impact of transformation was found on the percentage of sample workers families crossing the poverty line during the decade. It was observed that, 31.3% of the sample women workers, in under-developed districts, could cross the poverty line of Rs.24, 000/- p.a., during the decade. However, the proportion of women workers crossing the poverty line in developed districts is little higher than the proportion of workmen workers, crossing the poverty line in under-developed districts. 5 8. Another important objective of this study was to assess the impact of transformation on rural women entrepreneurs in the selected under-developed and developed districts. i. It was found that the entrepreneurs had selected only 5% of the total economic activities belonging to the secondary and territory sectors were 49% and 46% respectively. ii. The economic activities under primary sector included dairies, goat rearing, while under secondary sector included carpentry, broom making, chilli grinding, pottery, etc. The territory sector included grocery shops, beauty parlors, STD Booths, tea-stalls, laundry, pan shops, etc. iii. The rate of return: On investment was quite satisfactory in all economic activities. It ranged between a minimum of 13.7% in power looms to a maximum of 219.7% in tailoring, in secondary sector. In territory sector rate of return was 48% in grocery shop and a maximum of 123% in fruit/vegetable shops. iv. Impact on level of income: was observed to be satisfactory in both under-developed as well as in developed districts. For example, in under-developed districts, the average annual income of the women entrepreneurs, before transformation was Rs.12245, which increased to Rs.24870, at the end of the decade, indicating a rise of 97%. Similarly, in developed districts, the average income of entrepreneurs, before and after the transformation, was observed to be Rs.23669 and Rs.36615, respectively showing a rise of 183% over the decade. Hence, the performance of the women entrepreneurs in developed 6 districts was much better than the performance of women entrepreneurs in under-developed districts. v. Crossing the Poverty Line: Another major finding of this study refers to the issue of crossing the poverty line. In under-developed districts, the sample included 161 BPL families in 1994-95, out of a total no. of 256 sample families. That means, 31.3% of the total could cross the poverty line, at the end of the decade. Similarly, in developed districts out of a total no. of 244 sample entrepreneurs, 92 entrepreneurs could cross the poverty line (or 37.7%). vi. Investment of surplus funds: The surplus funds generated by the entrepreneurs in various economic activities have been invested by them, in construction or repairs to their houses; purchase or improvements to agricultural lands, more investment in existing business and purchase of domestic durable goods. vii. Improvement in standard of living: Has been observed in both under-developed and developed blocks. In 1994-95, many of them were not using T.V. Sets, Telephones and gas-stoves. But, after the transformation, many of the sample families have been using durable good like bicycles, mopeds, radio-sets, T.V. sets, fans, telephones, etc. This change in the standard of living of the sample families was quite significant. Social Security cover: It covered three major areas: 7 1) Insurance against risk of fire and theft was made only by 10.9% of entrepreneurs in under-developed blocks and by 8.6% in developed blocks. 2) Social Security benefits: relating the maternity benefits were enjoyed by 2.7% of total women entrepreneurs in both developed as well as under-developed blocks. Other social security benefits were completely absent. Hence, it was concluded that social security coverage of the sample beneficiaries was very poor, and needs to be improved. Opinion of NGOs and Employees engaged in Rural Areas: During the survey relating to impact of transformation on rural economy, especially on empowering women in rural areas. For this purpose we have covered 100 NGOs and employees to know their opinions. The results are as follows: i) The quality of leadership is also improving among women and their skill development is growing. ii) Their capacity of making decision on judgment and self confidence is note-worthy. iii) The Self Help Groups were forth coming in large numbers and generating income thro9ugh various economic activities. Un-organized labour and social security: Finally, this study also examines the problem of social security at All India Level, in the light of the recommendations made by the “National Commission for Enterprises in Unorganized Sector (NCEUS) 2005”. All aspects of this scheme is discussed a detail. 8 CHAPTER – 1 OBJECTIVES, SCOPE AND METHODOLOGY OF THE STUDY 1. INTRODUCTION: I. Economic Reforms: India’s reform programme began in the middle of a macroeconomic crisis that erupted in early 1991.* This led to what is known as the New Economic Policy [NEP] announced by the Govt. of India in July 1991, which was also followed by the announcement of the New Industrial Policy, which included the abolition of the location policy. During the last decade the Govt. of India have initiated as well as implemented a number of economic and financial reforms in various sectors of the Indian Economy. These reforms are mostly related to the process of Liberalization, Privatization and Globalization of the Indian Economy.