Part - I

Introduction

Defining Rural Development

Development, construed in its broadest sense, represents the entire gamut of change by which an entire social system moves away from a condition of life widely perceived as 'unsatisfactory' and towards a situation or condition of life regarded as materially and spiritually better (Katar Singh).
In more concrete terms, any activity that
      (i) leads to provision of life-sustenance means, viz., food, clothing, shelter, basic literacy, primary health care and security of life and property;
      (ii) restores or bestows upon the self-respect, dignity and honor of those deprived of it, and
      (iii) facilitates freedom from servitude to nature, ideologies (social, economic, political) institutions and dogmatic beliefs
is called development.

Drawing from the above, rural development can be defined as a process that leads to sustainable improvement in quality of life of rural people, especially the poor.

Financing Rural Development

Of the host of ingredients that are necessary to implement the process of development, finance is one of the most critical. Traditionally it is seen that the sole source of finance has been agencies and individuals who were NOT the beneficiaries of the development programme and initiatives. These traditional sources were domestic and foreign; institutional and non-institutional (individuals like money lenders, Non-Resident Indians, friends etc); and governmental and non-governmental.

However, guided by past experience, and the perpetual quest to achieve efficacy in development interventions, innovative ways of financing rural development have evolved. These sources of financing are referred to as financing from below wherein the direct beneficiaries themselves provide, partially or fully, the funds required for development.

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* Contributed by -
Reena Narula,
2nd Year - PGDRM,
Institute of Rural Management, Anand.