Rural Excellence

8/3/2019 Rural Excellence

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04/28/12 SomeTechnologies LLC 1

Rx for Rural Excellence:Adapting Urban Development

Models for Rural Development

Som Karamchetty

10816 Terrier Court

Columbia, MD 21044, USA

November 2004


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They said

"Can India become a Developed Country?"

"We believe, moreover, that while aggregate indicators are important,

It does not make sense to achieve a 'developed' status without a major and

continuing upliftment of all Indians who exist today and many more millions

will be added in the years to come.

APJ Abdul Kalam, with YS Rajan, "India 2020: A Vision for the New Millennium,"

Penguin Books, 1998.


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and Charged

When discussing, "Towards the Vision, the two Indias, and

While enumerating steps to be taken in "Realizing the Vision,"

Dr. Kalam chargespunyatmas, punyadhikaris, and punyanetas [1] to developa strategic plan and implement it.

[1]punyatmas, punyadhikaris, and punyanetas are Sanskrit words meaning people with

compassionate souls, benevolent administrators, and kind leaders respectively.


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Starting Point

The President's exhortations provide a good starting point for my discussions in this presentation.


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Follow the Lead

After presenting his "myriad impressions of India,

Sam Pitroda [1] presents a "ten-point program.

I will focus my presentation around a number of those points; especially, his point

"5. Fulfillment of basic human needs.

I will use Abraham Maslow's Need Hierarchy [2] as the framework for my discussion.

[1] Sam Pitroda, "Vision, Values & Velocity," SiliconIndia, Newark, CA, 2001.[2] I will use the term Hierarchy or Ladder, short for Maslow's Need Hierarchy or

Maslow's Need Ladder in this presentation.


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The Difference

Western Developed Countries are essentially urban based;

- Urban development is national development.

Most Developing Countries, especially, India and China are rural based;- Urban development is well short of national development- Rural development is almost national development.


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Outline

Current Situation in Rural Areas Causes for Progress of Urban Areas

Actionable Concepts Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusions


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Problem

Rural development is lacking in developing countriesSome defining characteristics of rural communities are: Low incomes Pervasive poverty, hunger, and disease Inadequate housing Illiteracy Primitive technical skills

Marginal crops and poor agricultural inputs Poor infrastructure and facilities 1

Roads

Potable water

Electricity

Sewers

HealthcareSchools Lack of Leadership and Management Skills Inattention to Planning

1 President A.P.J. Kalams PURA scheme addresses these needs on the edges.

http://presidentofindia.nic.in/scripts/sllatest1.jsp?id=217


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Background

Developing Countries live in poverty while Developed Countries live in relative

comfort. Even in Developing Countries, rural communities live in abject poverty, while

the urban middle and upper classes live in relative comfort. World Bank, International Monetary Fund and other developmental and

philanthropic organizations have undertaken some efforts to alleviate the

suffering in the Developing Countries. Globalization efforts have resulted in economic developments in certain urban

centers of the Developing Countries. But, by and large, rural communities in Developing Countries have not been

effected positively by these initiatives.

There is a need to analyze what factors contribute to the economic welfare ofthe Developed countries and Urban communities of the Developing Countries.

Such an analysis may inspire us to develop concepts for rural development. This presentation is an effort in that direction.


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Similarities in the Divides

There is a strong similarity between the divides which separate the

developed and the developing countries on the one hand and the urban

and rural communities in the developing countries on the other.

The divide is along all the Needs on the Maslows Need Ladder:

Developed

Countries

Developing

Countries Developing

CountriesUrban

DevelopingCountries

Rural


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Maslows Need Ladder

Abraham Maslow [1] described human needs.

Physiological

Safety/Security

Social/Affiliation

Esteem/

Recognition

Self-

Actualization

Maslows Need

Ladder

[1] Frank G. Goble, The Third Force: The Psychology of Abraham Maslow, 1970, 2004, Jefferson Center

for Character Education, Published by Maurice Bassett Publishing.

Rural communities in developing

countries have their basic needs

still unsatisfied.


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Outline

Current Situation in Rural Areas

Causes for Progress of Urban Areas Actionable Concepts Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusion


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Attributes of Developed Countries

Spirit of competition and meritocracy Free and democratic enterprises Institutions of higher learning imparting knowledge and education Institutions providing skills and training Science and technology academies Educational and research institutions

Financial and economic systems enhancing wealth and prosperity all round Vibrant industry and manufacturing capability Entertainment and craft centers Art, literary, and cultural centers Sports and athletics infrastructure Parks and recreation facilities Societies, clubs, and organizations Sanitary, medical, and healthcare facilities Strong and disciplined military and police forces Law and order protecting property, person, and institutions Sound infrastructure (roads, water, sewer, communications, and power) Comfortable homes and communities Agricultural infrastructures and inputs leading to bountiful harvests

The following attributes cause the satisfaction of human needs in Developed countries:


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Progress of Urban Areas in Developing

Countries

Spirit of competition and meritocracy Free and democratic enterprises Institutions of higher learning imparting knowledge and education Institutions providing skills and training Science and technology academies Educational and research institutions

Financial and economic systems enhancing wealth and prosperity Vibrant industry and manufacturing capability Entertainment and craft centers Art and cultural centers Sports and athletics infrastructure Parks and recreation facilities Societies, clubs, and organizations Sanitary, medical, and healthcare facilities Strong and disciplined military and police forces Law and order protecting property and person Sound infrastructure (roads, water, sewer, and power) Comfortable homes and communities Agricultural imports

Urban areas in Developing countries are progressing in the same attributes.


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Mechanisms Responsible for Progress of

Urban Areas in Developing Countries

Competition through globalization and free markets

Democratization of enterprises Technical and economic cooperation between developed and developing countries Academic cooperation between institutions of higher learning Aid to transfer technology and skills Financial and economic aid

World Bank, International Monetary Fund (IMF), & Grants and cheap loans

Offshore outsourcing Setting up manufacturing industry in developing countries Philanthropic support to combat diseases Preferential trade tariffs and quotas Exchanges of cultural and sports teams Aid for preservation of parks and recreation facilities Aid for infrastructure improvement

Training for security and military forces Assistance in human rights issues Assistance and grants to build infrastructure

(roads, water, sewer, communications, and power) Aid for green revolution


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Key Factors in the Strategy of Developing

Countries

Democratization of institutions Leadership development Formation of cooperative teams Utilization of free market competition and globalization

Entrepreneurship and micro-entrepreneurship Enhancing affordability through indigenous development of skills and knowledge Optimal deployment of financial and natural resources Deployment of best methods for organizing and leading enterprises Development of core competencies Focus on competitive sectors of production International cooperation to gain complementary skills

Employment of competent managers to lead and run enterprises Complementation of law and order structures with technology


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Lessons for Rural Areas in Developing

Countries

Development of and focus on core competencies Enhancing affordability and profitability through

Development of local educated and skilled talents

Formation of cooperative teams to improve productivity Reversing brain drain to urban areas Outsourcing to rural areas Focus on competitive sectors of production Optimal deployment of financial and natural resources Local leadership development

Deployment of technology to gain education, knowledge, and skills Cooperation in developing and deploying management methods

What are the lessons for rural areas in Developing Countries from the identification ofkey factors in the strategy of urban areas in Developing Countries?


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Outline

Current Situation in Rural Areas Causes for Progress of Urban Areas Actionable Concepts Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusion


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Rural areas cannot afford to pay for products and services from Urban areas. Just as Developing countries could not afford the products and services from

Developed countries Lacking emigration barriers, rural people try to migrate to urban areas in search of jobs

leading to urban slums, but no relief to rural people or areas. This is similar to the migration of cheap labor to developed countries Lacking trade barriers, rural products get shipped to urban areas creating shortages

in rural areas. Shipping of raw materials to urban areas deprives rural areas of potential for value added Lacking governmental or organized protection, international aid and subsidized

developmental loans from organizations like the World Bank do not reach rural areas. Urban overheads are too onerous for rural development.

Recap of the Situation with Rural Areas

vis a vis Urban Areas


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In the last couple of decades, several new paradigms have emerged, which helped

Urban Areas in Developing Countries (or New Economies). Globalization Reverse brain-drain Outsourcing Core competencies Strategic partnering (reliance) Market orientation of enterprises Knowledge workers and literacy Return on Information (ROI) Attracting investment Management methods (e.g. BPR, Six Sigma, etc.)

New Development Paradigms

We will examine how to translate these paradigms for application to rural development.


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Compulsory schooling for children Eliminate rural illiteracy, provide better jobs for the next generation of adults

Rural parents should refrain from placing their children in jobs Mothers should not carry infants on their backs while working in the fields

Develop cooperative child minding and educating centers in villages Teach professional skills to youth

Rural people cannot pay for urban products and services Develop their own pool of skills and knowledge Invest in their own people and keep them in villages Investments can be in the form of grants, and loans, and college admissions

in return for rural service Reserve rural college admissions for rural service at rural salaries

Rural professions: civil construction, water supply, sanitation, public health, medical,veterinary, and agriculture

Rural people have to initiate, manage, and man rural enterprises.

Imperatives for Rural Areas (1 of 5)


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Develop micro-entrepreneurs in rural areas Business processes Technical (functional) processes

The business processes are common to thousands of similar businesses across several

(rural) geographic locations in a Developing Country. These processes should be analyzed,

developed, standardized, and adopted in each and every rural enterprise.


National Cooperative Corporation

Local Managers/operators





Franchisor

Franchisees

Capital Business model Technology Manufacturing Training

Micro-Capital Local Ownership Management Skills Labor

Example businesses: Farming Textiles Garments Dairy Food products Leather products Arts, crafts Tourism


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Develop literacy-independent learning aids Educational enterprises require a new model Technology supplemented by rural manpower Affordable to rural people Embrace essential knowledge to climb out of centuries of poverty

Overcome the lack of competent teachers in rural areasCapture knowledge and lessons through

Video, TV, VCR Computer & Communication technologies

Arrange class schedules (annual and daily) and curricula To acquire practical job skills in parallel

To suit their objectives To fulfill needs



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Rural enterprises should be market oriented and not merely creators of relief work. Study the demand for products and services

local

urban global markets Identify areas of work or products that can be competitively sourced to rural areas Identify synergistic value additions to rural products and services



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Apply business practices

Invest in businesses that offer the greatest return (ROI) consistent with risk

Locate businesses in Urban or Rural areas based on ROI.

Promote investment opportunities with World Bank

Governments Private banks Private investors Social investors

Combine (cooperate and franchise) resources and requirements To attain critical mass and economies of scale Attract the attention of the big lenders, suppliers, and customers



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Outline

Current Situation in Rural Areas Causes for Progress of Urban Areas Actionable Concepts

Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusion


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Markets for Rural Businesses

In general, three types of markets exist for Rural enterprises: Rural needs Urban needs International needs

Examples: Rural banks Water works Schools

Medical facilities Logistics Administrative services

Examples: Plant supplies

Processed foods Crafts Components (industrial)

Examples: Processed foods Arts Crafts Tourist services


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Rural Value Added Products and Services

Example 1

Supply Processed foods to urban customers Outsource food processing from urban food establishments

Direct labor Byproduct for animal feed Waste processing into compost

Benefits Cost savings Prevention of rural worker migration to urban slums Reduction of urban municipal wastes


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Rural Nurseries for Urban RenewalRural businesses can develop plants and concrete pots and deliver them to Urban customers.

Rural businesses may have contracts with highways departments to plant and maintain roadside

tree pots, which will serve as barriers and also beautify the highways.

Rural Value Added Products and Services

Example 2


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Rural Nurseries for Urban Beautification

A Rural business may develop potted plants for urban buildings and dwellings. Plants in pots are

renewed and delivered to urban locations seasonally or periodically.

Value Added Products and Services

Example 3


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Other Vocations Tailoring clothes

Laundering & dry cleaning Equipment repair shops Sports & athletics Arts & Crafts Small businesses

Value Added Products and Services


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Outline

Current Situation in Rural Areas Causes for Progress of Urban Areas Actionable Concepts

Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusion


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Identify the needs Develop marketable businesses Invest Lead

The Strategy


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Types of Businesses for the Rural Market

Physiological

Safety/Security

Social/Affiliation

Esteem/

Recognition

Self-

ActualizationMaslows Need

Ladder

Agriculture

Water

Housing

Education

Athletics

Entertainment

Folk artsFolk music

Social clubs

Franchise businesses

Fine arts

Literature

SanitationSafety

Security

Healthcare


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Needs & Strategy

Physiological Needs

Rural communities have to develop People Skills & knowledge Technologies Education

Economies of scale Cost competitiveness (production) Leadership & management


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Security and Safety Needs

Rural communities have to develop People Skills & knowledge Technologies Education Economies of scale

Cost competitiveness (production) Leadership & management

Needs & Strategy


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Social/Affiliation Needs



Needs & Strategy


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Esteem Needs



Needs & Strategy


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Self Actualization Needs



Needs & Strategy


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RuralNeeds, Businesses, & Markets

Physiological

Safety/Security

Social/Affiliation

Esteem/

Recognition

Self-

Actualization

Maslows Need

Ladder

Agriculture

Water

Housing

Education

Athletics

Entertainment

Folk artsFolk music

Social clubs

Franchise businesses

Fine artsLiterature

SanitationSafety

Security

Healthcare


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Outline


Actionable Concepts Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusion


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The divide between the Developed and Developing Countries Geographic & Political

The divide between the urban and rural people in a Developing Country Economics Knowledge & skills Leadership & management

The Means or Divides

Those are the means for development.


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Finance for Rural Development

Societies need funds to

Apply technologies at every level

Equip people with

Education

Skills

Training

Provide material and energy resources


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Loans and Give Backs to Students Makes for a Self-sustaining System.

Recycling Funds

Grants

Loans

Repaid Loans

Taxes

Philanthropy

Education/

TrainingInvestmentGive back


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Advanced Technologies for Rural

Development

Agriculture Food processing Water & sanitation Home building

Healthcare Engineering Education Communications Computers Information

TV, VCR, audio, and Video On-Line Instructional technology (for training in skills) Web for knowledge transfer On-line business process management

For 700 Million People in Rural areas

Schools

Colleges

Vocational training

Skill development

Apprenticeships


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Leadership for Rural Development

Political Administrative Legal Business

Ethics Imagineering Visioneering

Companies

Branches

Cooperatives

FranchisesSole proprietors


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Outline


Actionable Concepts Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusion


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Implementation

Undertake a 40 to 50 year plan

Champion the plan Market the plan Obtain commitments Recycle resources Get the tipping point 1 effect

1 Malcolm Gladwell, The Tipping Point, Little, Brown, and Company, Boston, 1999.

Entrepreneurship &

Franchising

Maslows Hierarchical

Revolutions

Technology for

Knowledge Education


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Outline


Actionable Concepts Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusions


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Conclusions

Great upside to the strategy

Economic development and human needs are in sync Commitment and sacrifice are necessary Rural Excellence is a highly possible vision Leadership and technology are the keys Global peace and harmony are the results


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The End

Rural Excellence

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