MANAGING THE EXODUSGrounding Migration in India

MANAGING THE EXODUSGrounding Migration in India

TITLEManaging the Exodus: Grounding Migration in India

AUTHORS &

CONTRIBUTORS Nitin Sukh Senior Manager, Responsible Banking, YES BANK Limited

Rita Soni, Country Head, Responsible Banking, YES BANK Limited

Dr. Debolina Kundu, Associate Professor, National Institute of Urban Affairs

,

COPYRIGHT No part of this publication may be reproduced in any form by photo, photoprint, microfilm

or any other means without the written permission of YES BANK Ltd.

DISCLAIMER The information and opinions contained in this document have been compiled or arrived at

from sources believed to be reliable, but no representation or warranty expressed is made

to their accuracy, completeness or correctness. This document is for information purposes

only. The information contained in this document is published for the assistance of the

recipient but is not to be relied upon as authoritative or taken in substitution for the

exercise of judgment by any recipient. This document is not intended to be a substitute for

professional, technical or legal advice. All opinions expressed in this document are subject

to change without notice

Neither YES BANK Ltd., nor other legal entities in the group to which it belongs, accept any

liability whatsoever for any direct or consequential loss howsoever arising from any use of

this document or its contents or otherwise arising in connection herewith.

CONTACT ADDRESS YES BANK Ltd

Registered and Head Office Northern Regional Office

9th Floor, Nehru Centre, 48, Nyaya Marg, Chanakyapuri,

Dr. Annie Besant Road, Worli, New Delhi 110 021, INDIA

Mumbai - 400 018, INDIA Tel: 91 11 66569000

Tel: 91 22 66699000 Fax : 91 11 41680144

Fax: 91 22 24974088

AMERICAN INDIA FOUNDATION (AIF) NATIONAL INSTITUTE OF URBAN AFFAIRS

India Office Core 4B, India Habitat Centre,

C-17 Green Park Extension Lodhi Road,

New Delhi 110 016 New Delhi 110003, India

Tel: 91 11 46118888 Tel: 91 11 24643284/24617517

Fax: 91 11 46118890 Fax: 91 11 24617513

Girls work with confidence in a school located

directly in their neighborhood of Amagarh, a slum

area of Jaipur. (Bodh Shiksha Samiti, Rajasthan)

Cycle rickshaw drivers show off their passports for

financing their rickshaw. (Centre for Rural

Development, Guwahati, Assam)

Members of SwachhDhara, a worker-owned

enterprise, fulfill a city government contract by

cleaning with dignity. (Nidan, Patna, Bihar)

All report photographs by Prashant Panjiar

Fore

word

Fore

word

Fore

word

India's population is primarily rural, and much of its economic growth is mainly in the cities. The

limited livelihood options in rural areas and the pull of urban development displaces millions of

individuals and families in India, uprooting them from social structures. One of the unfortunate

consequences of the migration is the interruption of the education of children who migrate,

because it often constrains them to remain within the downward spiral of poverty.

This report addresses a paucity of information on the phenomenon of distressed migration, its

specific relation to the rapid urbanization of India and the growth of slums and the informal

economy. It gives a comprehensive look at what government, civil society institutions and the

private sector are currently doing to increase opportunities in rural areas, while mitigating the

worst impacts of migration for those who do move to urban India.

YES BANK and American India Foundation (AIF) are pleased to collaborate on many of the

challenges faced by people at the margins of the economy. As one of the fastest growing

financial institutions in the country, YES BANK is committed towards expanding its knowledge

base by forming strategic partnerships for constant innovation and development of financial

products designed specifically for the upliftment of the urban and rural poor. YES BANK believes

that private sector involvement in Public Private Partnerships (PPPs) can go beyond the realms

of infrastructure project financing. This report identifies tremendous business scope in

development project monitoring, technology integration, microfinance, organic farming, skills

development and training for service sector integration, to name a few areas. The banking

sector's role in the social and economic progression of India will continue to expand as the

economy grows, opening up avenues for greater public, private and civil society cooperation to

proactively address India's development agenda.

AIF has been working on challenges facing communities affected by distress migration since

2003. AIF's signature program, LAMP (Learning and Migration Program) has been successful in

developing models for educating children of migrant workers and has also been influential in

shaping the government policy to ensure that these children remain in school. Similarly, in AIF's

programs in livelihoods and public health, migrant workers have been a significant demographic

focus.

It gives us great pleasure to present the 2009 Knowledge Report: Managing the Exodus,

Grounding Migration in India. This report is a testament to those organizations that are making a

difference at the grassroots level, bridging the gaps in government-led programs nationwide

and catalyzing India's overall development. We sincerely believe that along with our partner,

the National Institute of Urban Affairs (NIUA), we will create a vibrant dialogue around these

issues and be a part of a transformative journey.

RANA KAPOOR SANJAY SINHO

Founder/Managing Director & CEO CEO

YES BANK Ltd. American India Foundation

Fore

word

Conte

nts

Conte

nts

Conte

nts

Preface 5

Chapter 1: Migration in India 7

1.1 Introduction 7

1.2 Types of Migration 7

1.3 Reasons for Distressed Migration 8

Chapter 2: Urbanization & Migration - A bird’s eye view 10

2.1 Urbanization 10

2.2 Growth of Urban Slums 12

2.3 Rise of the Informal Sector 13

2.4 A Way Forward 14

Chapter 3: Grounding Migration - Protection of Migrant Workers 15

3.1 Social & Economic Protection 15

3.2 Social Protection & Security 17

3.3 Economic Protection & Security 21

3.4 Rural Economic Development 28

Chapter 4: Grounding Migration - The Public Private Partnership Way 32

4.1 Public Private Partnerships 32

4.2 Expanding PPPs for Social Development 32

4.3 Infrastructure Development 33

4.4 Ensuring Access and Service Delivery to the Poor 33

Concluding Remarks 35

Conte

nts

Pre

face

Pre

face

Pre

face

Pre

face

India's tremendous economic growth in recent years, as well as its renewed efforts at

development and the broadening of its middle class have rapidly swelled its urban population.

Unfortunately, the impact of globalization and the new prosperity have not reached rural India

in the same magnitude. This success consequently draws the marginalized and rural poor to

urban centers where they hope to participate in India's growth and progress to improve their

livelihood opportunities, access better healthcare and avail of education options. This distressed

urban migration is emerging as one of the key developmental challenges for urban India today.

Migrants are disproportionately disadvantaged in the context of urban poverty, urban slums and 1informal sector employment . Additionally, the current infrastructure in India's tier I & II cities is

already stretched, leaving these cities incapable of supporting the needs of the existing

populations. By 2021, India will have the largest concentration of mega-cities in the world,

with a population exceeding 10 million people. This expansion of the urban population is largely

unplanned and uncontrolled. The marginalized distressed migrants are forced into suboptimal

living conditions where they don't have access to the basic requirements of human existence: a

healthy environment, a sustained livelihood, access to education and healthcare, and

participation in social and civic life.

Figure 1: Making Impossible Choices: The Plight of Distress Migrant Communities

Note: Thicker lines indicate more access while thinner lines indicate less access. Civic and social capital refers to social

webs and civic rights such as voting.

The notion of “grounded migration” is to make these basic requirements available to distressed

migrant communities, an important step on the path to empowerment for this marginalized

group. It also seeks to offer choices to distressed migrant communities in their source village by

helping develop sustainable and secure livelihoods options so that they are not forced to leave

the civic and social capital which has been built over generations.

Programs that uplift and de-marginalize the urban poor through livelihoods assistance and

rebuilding civic/social capital are essential to the economic emancipation of India's urban

migrants. The insecurities facing rural populations must also be alleviated so that they are not

forced to migrate under distress. However, for those migrants who freely choose to migrate,

action must be taken to guarantee their basic rights including economic, social, cultural as well

as civil and political rights.

1Mitra, Arup, and Mayumi Murayama, "Rural to Urban Migration: A District Level Analysis for India", Institute of

Developing Economies, 137 (2008).

Pre

face

Pre

face

Pre

face

Pre

face

Pre

face

Pre

face As Brazilian education theorist Paulo Freire said, 'education is the key tool for empowerment'.

Hence, to help the marginalized retain or regain their political and social capital at either source

or destination, improving the education scenario is the only means of halting a downward spiral.

For example, civil society is bridging the education gap for the children of distressed seasonal

migrants in both rural and urban settings, through a framework that provides educational

security at both source and destination for the children of migrants.

Financially insecure urban migrants often form the core of the marginalized poor in large urban

metropolises. They migrate in hopes of a more secure livelihood, but frequently lose their social

and civic capital. For rural migrants, entry into an urban landscape without the assurances of a

guaranteed livelihood and residence results in the loss of a broader social identity, and the

infringement of their human rights. These poor are marginalized further because of this loss and

are thus left wide open to exploitation.

It is vital to understand and reduce this marginalization and subsequent exploitation of the

urban poor through the development of sustainable livelihood options and providing them

access to financial services with which they can develop roots and eventually get assimilated in

their new milieu, as productive citizens. This report explores the possibility of further expanding

the membership of the Public Private Partnership (PPP) framework to include civil society,

namely non-governmental organizations (NGOs) to create a holistic response to the migration

phenomenon. For example, the private sector can expand access to financial services, the

public sector can promote infrastructure development and welfare programs, while civil society

can focus on ensuring delivery and access to all. This framework will uplift and re-arm distressed

migrant communities with their social and political rights and responsibilities, to ensure that

they have access to services and can make informed choices to guarantee a human existence

and an opportunity to attain their fullest productive potential.

Chapter 1: Migration in India

1.1 Introduction

1.2 Types of Migration

1.2.1 Destinations

India's economic growth in its urban centers has captivated the attention of the world, fuelling the country's

consistent GDP growth per annum, attracting a host of multinational corporations and propelling the rise of

domestic giants. The country's capability to attract and retain the well educated diaspora and domestic

workforce has certainly increased with plenty of jobs to go around. However, current media interest in the

economic growth of urban centers is overshadowing progress being made in rural India. As a result, with the

prospect of greater and more lucrative job opportunities in urban centers, a significant proportion of the rural

population moves to the cities and continue to do so, contributing to the significant jump in city populations and

densities.

Urban poverty and slum growth bring a host of social, civic, environmental and economic challenges to the

forefront where the Central Government and society are forced to take 'reactive' measures to tackle the issues

involved. Upon this migration, the vast majority of low skilled, illiterate and uninformed segments of the migrant

population find themselves unable to assimilate into the organized sector thus forced into working in the informal

sector where a vast majority work below the minimum wage level. Without having a true understanding of their

social, economic and legal rights, many have been marginalized into residing in the sprawling slums that dot

every Indian city's landscape without the blanket of state sponsored social security to provide some comfort.

Migration is defined as the displacement of a person

who leaves their place of birth or of residence for another

place, most often remaining in country. In 2001, 309

million persons were migrants based on place of last

residence, which constitute about 30% of the total

population of the country. This figure indicates an

increase of around 37% from the 1991 census which

recorded 226 million migrants. It is estimated that 98

million people moved within the country between 1991 2& 2001 .

There are four variations of migration depending on where the destination and source are located.

1) Rural – Urban: Traditional rural-urban migration exists in India as villagers seek to improve opportunities and

lifestyles. This has shown a gradual increase, with its share in total migration rising from 16.5% to 21.1%

between 1971 and 2001.

2) Urban – Urban: There has been slight increase of urban to urban migration from 13.6% to 14.7% over three

decades (1971-2001).

3) Rural – Rural: According to the 2001 census data, rural to rural migration has been the most dominant. In

2001, rural to rural migration (during the last decade) has accounted for 54.7% of total migration within

7

2Study on Internal Migration and regional disparity, 2002.

Migrants as per 2001 Census

30%

70%

Migrant Population Settled Population

Figure 2

India. The share of rural to rural migration, however, has been on the decline, dropping from the level of 62%

in 1971. Females constitute a significantly higher proportion of rural ward migrants mainly on account of

marriage.

4) Urban – Rural: It is not that only rural to urban migration is prevalent. Though unnoticed, the last decade the

urban to rural migration figure stands as 6.2 million people, i.e. approximately 6% of the population that

moved between 1991-2001.

The duration for how long a migrant stays at his/her destination is subject to personal and economic

circumstances and it falls into three broad categories:

1) Temporary/seasonal

2) Semi-permanent

3) Permanent

'Seasonal migration' has long been practiced in the rural areas, particularly among landless laborers and marginal

farmers with limited livelihood options. Often times it begins with male members of the family going out of their

villages to work, returning when the employment is complete due to seasonal and market related reasons.

However with extensive labor brokerage networks which often exploit the migrants especially through unfair

credit terms, families fall into a downward spiral and find more members of the families migrating to make ends

meet. This form of migration is termed as 'distressed' and is required for the survival of the entire family. It is this

migration that requires 'grounding' such that basic needs can be met.

Although the subject of migration is complex, it is vital to understand the triggers in order to effectively address

the phenomenon. According to the Census in 2001, reasons for migration have been classified into seven broad

groups – work/employment, business, education, marriage, moved at birth, moved with family and others.

Migration is influenced both by the pattern of development and social structure.

There are a number of factors that cause populations to shift: from individual motivations, local economic

degradation and the alluring pull of better prospects in the urban centers. Moreover, numerous studies show that

the process of migration is influenced by social, cultural and economic factors and outcomes can be vastly

different for men and women, for different groups and different locations.

3According to the National Commission on Rural Labor, focusing on seasonal migration , uneven development is

the main cause of seasonal migration. Inter-regional disparity, disparity between different socioeconomic classes

and the development policy adopted since independence has accelerated the process of seasonal migration. In

tribal regions, intrusion of outsiders, the pattern of settlement, displacement and deforestation, are significant to

drive the phenomenon of migration.

4Landless poor, often migrate from economically backward regions for survival . Livelihood opportunities, its

dearth in the rural and abundance in the urban areas are therefore responsible for the majority of migration.

Media exposure and growth of the metros is another reason that allures people to move from rural to urban

areas.

1.2.2 Durations

1.2.3 Economics

1.3 Reasons for Distressed Migration

8

3 NSSO Report 1999-2000: Consumption report on rural labor households 4 Study Group on Migrant Labor, 1990.

Marriage accounts for more than half of the migrants. Though this hold true more in the case of females as

women migrating to the husband's place on marriage is a predominant social custom. Education also plays a part

in migration, albeit a small percentage. Natural calamities, terrorism, displacement due to construction etc. have

also been a reason for internal migration and displacement in India.

Migration essentially takes place due to either of the above mentioned factors categorized as the Push (reasons

that cause people to leave their place of residence or origin) or the Pull (reasons that attract people from

different places) factors.

The table below presents a glimpse of the various reasons that were included in the census to gauge the migrant

population across the years:

Source: Census of India 1991 & 2001; National Sample Survey Organization (2001)

Table 1: Reasons of Migration

Employment Employment Work/ Employment In Search of employment

Education Business Business In search of better employment

Family moved Education Education To take up employment / better

employment

Marriage Family moved Marriage Transfer of service / contract

Others Marriage Moved with Birth Studies

Natural calamities Moved with household Proximity to place of work

Others Any other reason Housing problem

Social / Political problem

Acquisition of own house / flat

Health

Marriage

Migration of parent / earning

member

Others

Census 1981 Census 1991 Census 2001 National Sample Survey

9

Chapter 2: Urbanization & Migration-A bird's eye view

2.1 Urbanization

2.1.1 Data Inaccuracy

Urbanization is the physical growth of rural or natural land into urban areas as a result of in-migration where

trickle down effects include the change in density and pressure on administrative services. Urbanization is further

defined by the United Nations as, 'the movement of people from rural to urban areas with population growth

equating to urban migration'. The UN projects that half of the world population will live in urban areas by the end

of 2008.

In India, 73 million people in rural areas have migrated from 1991 – 2001; of which 53 million have moved to

other villages and 20 million to urban areas – a majority of them in search of work. These figures do not include

temporary or seasonal migration. Migration and urbanization are seen as the direct manifestation of the process

of economic development of any country, more so in the era of globalization. Understanding the causes and

consequences of the urbanisation process in terms of the changes in the spatial and temporal distribution of

population and economic activities, along with the success and failures of the interventions by state and other

developmental organizations may be extremely important for any organization, learning from the past

experiences, evaluating the available policy options and exploring areas of strategic intervention for future

equitable development.

A large part of migration and urbanization in

the less developed countries has historically

been linked to stagnation of agriculture and

lack of sectoral diversification within agrarian

economies. This is applicable for India as well.

The growth in agricultural production and

income has been low, unstable and unequal

across regions over the past several decades,

resulting in lack of livelihood opportunities in

the rural areas. Further, a low rate of

infrastructural investment in the period of

structural adjustment – necessary for keeping

budgetary deficits low – has had adverse

effects on agriculture, resulting in out-

migration from several backward rural areas.

Most migrants are absorbed within the urban

informal economy. Designing policy options

which enable rural people to avail of urban amenities without having to shift to a town and strengthening rural-

urban linkages and commutations would also be important measure in addressing the problem of rapid

urbanization.

The data on urban indicators available from the population censuses has suffered from definitional problems over

the years. For example, the census of 1951 had overestimated the urban population due to non-application of

10

1 2001 Census – Government of India.2 Kundu. Et al. (2007) A Strategy Paper on Migration and Urbanisation in the Context of Development Dynamics, Governmental.

Programmes and EvolvingInstitutional Structure in India: A Paper commissioned by United Nations Population Fund (UNFPA).3 American India Foundation (2006) – Locked Homes, Empty Schools.

Number of Statutory Towns and Census Towns,

1981, 1991 and 2001

27582996

3798

1271

16931363

4029

4689

5161

0

1000

2000

3000

4000

5000

6000

1981 1991 2001

Years

Statutory Towns

Census Towns

Total Urban Centres

Figure 3

Source: Population Census of India, 1981, 1991 and 2001, Paper-2,

Rural-Urban Distribution.

uniform criteria by the states in identifying urban centers, therefore resulting in high annual growth rates. Over

the years attempts have been made to standardize the concept of urban centers by laying down clear criteria for

their identification. Due to the earlier lack of clarity on urban center definitions, the NIUA declares the highest

growth of urban population in the 1980's is grossly misrepresented. This lack of clarity on urban center

definitions is clearly understood in the revelation that between 1991 and 2001 the number of census towns in

India declined by 330 (refer to graph above) despite all phenomena linked with urbanization increasing over the

past few decades. From a planning and resource implementation point of view, such discrepancies in data are

worrying.

The incremental urban population during a decade can be decomposed into four categories as follows:

(a) Natural increase,

(b) New towns less declassified towns (outside the agglomerations),

(c) Merging of towns and jurisdictional changes in agglomerations

(d) Rural-urban migration

The NIUA states that the rate of urban population growth over between 1991-2001 stood at 27%,

significantly lower than that of previous decades. This phenomena is derived from the fact that the percentage of

male lifetime migrants fell from 37.5% to 26% in that period and that the 'intercensal' (those shifting residence

during the last decade) migrant population fell from 23.8% to 11.5%. NIUA attributes the decline in rate of rural

to urban migration on the immobility of the rural poor, the growing assertion of regional and language identity

and the diligent implementation of rural master plans.

Even though there has been a significant fall in the rate of migration over the decades, it does not rule out the

fact that rural-urban migration continues to increase and does contribute to the overall growth of urban

populations, therefore creating pressures on urban infrastructure.

The growth rate (annual

exponential) in urban areas

during 1941-51 was extremely

high, 3.5% per annum but that

has been attributed to migration

from East and West Pakistan at

the time of partition of the

country which brought in

massive inflow from across the

border, largely into towns and

cities in India. The growth rate

declined significantly during the

fifties to 2.3%. This may be

attributed to definitional factors

as the Census of 1961 brought in

r i go rous app l i ca t i ons o f

demographic criteria in identifying urban centers. The growth rate would therefore be considered to be an

underestimate. A growth rate of 3.2% during 1961-71 can be taken to reflect the real urban dynamism in the

country since the definitional or other exogenous factors affected the growth rates in the 1960's. An all time

high growth of 3.8% was noted during the seventies. A less rigorous application of criterion relating to non-

2.1.2 Growth of Urban India

11

Source: Population Census of India, 1981, 1991 and 2001,

Paper-2, Rural-Urban Distribution.

Percentage and Growth Rate of Urban Population

in India since 1951

17.29 17.9719.91

23.34

25.7227.78

3.472.34 3.21 3.83 3.09 2.73

0

5

10

15

20

25

30

1941-51 1951-61 1961-71 1971-81 1981-91 1991-2001

Years

% of urban pop to

total popAnnual Exponential

Figure 4

agricultural workforce in identifying urban centers and a more liberal definition of urban agglomeration are

responsible for this growth. The annual growth rate (exponential) of urban population in India has gone down

since then. It came down to 3.1% during 1981-91 and further to 2.7% during the 1990's.

The pattern of urban growth (or urban-rural growth differential) across states during the first four decades since

Independence exhibits a negative relationship with the level of economic development (income or consumption

expenditure in per capita terms, share of industries in state income, agricultural productivity, etc.). Poor states

such as Orissa, Bihar, Rajasthan and Madhya Pradesh that experienced rapid demographic growth in urban areas

were also those that reported low productivity and high unemployment in agrarian sectors as well as heavy

pressure on urban infrastructural facilities, suggesting the presence of push factors behind rural-urban migration.

The slowing down of out-migration from poor to developed states until the early 1990's, meant that the

displaced persons from agrarian system sought absorption into urban centers within the respective state.

The interdependencies in the development indicators show different development dynamics in the 1990's. The

urban growth exhibits positive correlation with indicators of infrastructural and economic development both in

rural and urban areas, and negative relation with poverty. The states that are experiencing low or no growth in

farm and non-farm productivity, high unemployment, severe malnutrition, etc. are reporting sluggish

urbanization. In contrast, most of the cities and towns in developed states have experienced rapid demographic

growth. Understandably, cities in developed states are not getting their migrants driven by natural, social or

economic calamities but those who have higher levels of skill or economic assets and who find it easier to

establish linkages with the economy of the large cities through socio-cultural channels and avail the 8“opportunity” offered through migration .

A slum is defined by substandard

housing with insecurity of tenure

and the absence of one or more

urban services and infrastructure

such as sewage treatment,

plumbing, clean water, electricity 9or paved roads etc . Urban areas

notified as slums by respective

municipalities, corporations, local

b o d i e s o r d eve l o pmen t

authorities were treated as

'notified slums'. A 'non-notified'

slum is a compact urban area

with a collection of poorly built

tenements, mostly of temporary

nature, crowded together usually

with inadequate sanitary and

2.1.3 Regional Patterns & State Growth Dynamics

2.2 Growth of Urban Slums

12

8 Kundu. Et al. (2007) A Strategy Paper on Migration and Urbanisation in the Context of Development Dynamics, Governmental.

Programmes and Evolving Institutional Structure in India: A Paper commissioned by United Nations Population Fund (UNFPA).9 Davis M. (2006) – Planet of slums, the monster at our door: The global threat of Avain flu and ecology of fear.

Source: Census 2001, Government of India

Figure 5: Percentage of Urban population living in slums by state in 2001

drinking water facilities in unhygienic conditions, if at least 20 households lived in that area. In 1981, nearly 28

million people lived in slums, in 1991 there were 45.7million slum dwellers and as per 2001 Census data, there

are 40.6 million people living in slums. It is suspected that this decline is on account of an underestimation of the

number of people living in the urban slums.

National averages suggested that about 205 households live in each notified slum and 112 in each non-

notified slums.

The total number of slums in urban India are approximately 52,000 with 51% of the slums being notified

slums.

It is estimated that every seventh person living in the urban areas is a slum dweller.

About 65% of slums are built on public land, owned mostly by local bodies, state government etc.

Maharashtra has the highest number of urban slums in the country totaling 173 – 113 notified and 60 non

notified

Newly arrived migrants lack the luxury of living in a notified slum or a 'pucca' (semi permanent) structures unless

they have a well established contact or relative living in one. This particular class of migrants faces the indignity

of living in 'kutcha' (non-permanent) structures which neither fall in the category of notified nor non-notified

slums. Due to their lack of recognition as being residents of recognized slums, these migrants are at the mercy of

the municipal authorities or the private land owners who own the land on which the migrants are squatting.

Corruption and bribery allow these migrants to continue their stay, an unnecessary financial burden to those with

an uncertain future. Rather than the state and its agencies, it is contractors, middlemen, power brokers and

politicians who exercise exclusive jurisdiction over migrants. They exercise authority over their living and working

being able to hire and fire them at will.

Social inadequacies faced by all types of slums:

1) Access to education 2) Policing and crime management

3) Domestic violence and abuse 4) Healthcare clinics

5) Price premium for basic amenities (e.g., food, housing)

Infrastructural inadequacies faced by both non-notified and notified slums:

1) Lack of approach roads 2) Water supply infrastructure

3) Drainage 4) Sewerage

5) Food distribution centers 6) Garbage disposal

The lack of basic infrastructure inevitably leads to the emergence of social issues which includes:

1) Illiteracy – leaving children susceptible to exploitation 2) Domestic violence

3) Alcoholism and drug addiction 4) HIV/STD transmission

5) Malnutrition

India's slums operate as micro-economic hubs where small scale production and consumption takes place on a

daily basis. A vast majority of migrants who come with the intention of finding employment in the urban areas

are faced with the grim reality of a lack of steady paying and dignified jobs in the organized sector, especially if

the migrants are unskilled. Furthermore, being illiterate makes one susceptible to exploitation in the urban

scenario especially with regards to employment or micro enterprise development, falling prey to illegal

contractors and criminal elements.

102.2.1 Select 2002 Statistics

•

•

•

•

•

2.2.2 Inadequacies of Urban Slums

2.3 Rise of the Informal Sector

13

10 2002 NSSO Report – Condition of Urban slums in India.

Caste, kinship bonds, and other kinds of village networks do help rural job seekers to arrange urban based jobs. In

the face of a high natural growth of population, rural to urban migration aggravates the situation of excess

supplies of labor in the urban areas. In the urban informal sector, this tends to reduce the level of earnings and get

manifested in a high incidence of urban poverty. In essence rural poverty is transformed into urban poverty – a

phenomenon described as the urbanization of poverty, thus leaving migrants with little economic choice but to

assimilate into the burgeoning populations of the slums.

The informal sector, by contract, consists of firms which obtain labour at the free market wage where they are

also characterized by ease of entry. The informal sector is not a passive absorber of labor, but rather a dynamic

sector responding successfully to changing demand in the economy and contributing significantly to income and

output growth.

One of the major distinctions between the formal and informal sector is the ability of labor to organize.

The growth of the informal sector and the credit markets, i.e. moneylenders and loan sharks, within it pose a

financial risk to the country as the money flowing through these systems is unaccounted, termed as 'black'

money which makes it virtually impossible for the state to earn taxes from this form of economic activity. The

complete eradication of the informal economy is not a solution to the problem either since that will extinguish

the limited livelihood options available to the bottom of the pyramid migrants.

Informal industries which usually provide employment and business opportunities to bottom of the pyramid 11migrants and workers include .

1) Construction

2) Low-skilled formal manufacturing

3) Civic service – Waste collection and sorting

4) Transport, storage and facilitation communications (courier services)

5) Domestic help, home security and chauffeuring

6) Manufacturing, processing, servicing

In India, though rural-urban migration has been found to be modest in comparison to rural-rural migration, in the

context of urban poverty, urban slums, and informal sector employment a great deal has been talked in reference

to rural-urban population mobility.

To make a sustainable difference in the lives of migrants around India, a two pronged approach which addresses

multiple problems is proposed, at the source of migration (rural areas) and its destination (urban areas). The

insecurities facing rural populations must be alleviated so that they are not forced to migrate under distress.

Forging public private partnerships for the private sector and civil society to work with the Indian government to

address the social, environmental and civic impacts of migration will be a positive move towards grounding

migration, where all stakeholders can jointly work towards creating the social and economic infrastructure

needed to facilitate the movement of migrants without them loosing their social and political identity. Rather

than an ailment, rural to urban migration is a boon to the economy since it brings forth the possibilities of cost

effective and productive manpower to fuel industrial and service sector growth, employment, micro enterprise

generation, cultural and national cohesion. The inclusive growth paradigm paves a way forward for the holistic

growth and development of India.

2.4 A Way Forward

14

11 Bhattacharaya P.C. (1996) – The role of the informal sector in structural transformation: Some Indian evidence, Journal of

International Development, Vol. 8, No.1.

15

Chapter 3: Grounding Migration-Protection

of Migrant Workers

3.1 Social & Economic Protection

The goal of assuring sustainable livelihoods plays an active role in the social and economic protection policy of

India. A comprehensive social and economic protection policy contains 3 broad categories:

1) Promotional measures that aim at improving endowments, exchange entitlements, real incomes and social

consumption

2) Preventative measures that seek to avert deprivation

3) Protective measures to provide relief from deprivation

Although the role of the state in providing social security has been diminishing, it is still the most important

institutional mechanism to deliver social protection. The growing role of the markets in the provision of certain

minimum needs cannot be brushed aside. However, besides the state and the markets there is a third

institutional mechanism that is playing a major role in delivering social protection, civil society – comprising of

individuals, social networks, non-governmental and member based organizations.

Figure 6: Social Protection for workers in the informal economy

BASIC INSECURITIES

FOODSHELTERHEALTHEDUCATIONINCOMELIFE CYCLE

ECONOMIC INSECURITIES

EMPLOYMENTCAPITALDEMANDSKILLLEGAL RECOGNITION

INSTRUMENTS

BASICPDS-FOODINSURANCESCHOLARSHIPPENSION

ECONOMICRURAL WORKS PROG.EMPLOYMENT BENEFITSCREDITORGANIZATIONTRADING CORPORATIONLEGISLATION

CORE NEEDS

BASIC NEEDSFOODSHELTERHEALTHEDUCATION

ECONOMIC NEEDSEMPLOYMENTACCESS TO CAPITALNEW MARKETSLEGAL RECOGNITIONVOICE REPRESENTATION

AGE CASTEGENDERACTIVITY STATUSEDUCATION LEVELINCOME / ASSET DIST.LOCATION

STRUCTURAL

ECONOMIC NATURALLOSS OF JOB DROUGHTDEMAND CROP FAILUREPRICE RISE CYCLONESOCIAL EXP. EARTHQUAKEDEATH

SHOCKS

Insecurities Sources of Insecurities Social Protection

INSTITUTIONAL MECHANISMS

CIVIL SOCIETY / SOCIAL NETWORKSMEMBER-BASED ORGANIZATIONSMARKETSGOVERNMENT

BASIC INSECURITIES

FOODSHELTERHEALTHEDUCATIONINCOMELIFE CYCLE

ECONOMIC INSECURITIES

EMPLOYMENTCAPITALDEMANDSKILLLEGAL RECOGNITION

BASIC INSECURITIES

FOODSHELTERHEALTHEDUCATIONINCOMELIFE CYCLE

ECONOMIC INSECURITIES

EMPLOYMENTCAPITALDEMANDSKILLLEGAL RECOGNITION

INSTRUMENTS

BASICPDS-FOODINSURANCESCHOLARSHIPPENSION

ECONOMICRURAL WORKS PROG.EMPLOYMENT BENEFITSCREDITORGANIZATIONTRADING CORPORATIONLEGISLATION

CORE NEEDS

BASIC NEEDSFOODSHELTERHEALTHEDUCATION

ECONOMIC NEEDSEMPLOYMENTACCESS TO CAPITALNEW MARKETSLEGAL RECOGNITIONVOICE REPRESENTATION

AGE CASTEGENDERACTIVITY STATUSEDUCATION LEVELINCOME / ASSET DIST.LOCATION

STRUCTURAL

ECONOMIC NATURALLOSS OF JOB DROUGHTDEMAND CROP FAILUREPRICE RISE CYCLONESOCIAL EXP. EARTHQUAKEDEATH

SHOCKS

Insecurities Sources of Insecurities Social Protection

INSTITUTIONAL MECHANISMS

CIVIL SOCIETY / SOCIAL NETWORKSMEMBER-BASED ORGANIZATIONSMARKETSGOVERNMENT

Before forging public private partnerships to tackle the issues of migration, urbanization and poverty it is essential

to understand the government's positions and the center's policy provisions aimed at tackling these issues. The

following sub section will look into the programs initiated by the government and how the work of NGOs either

fill in the gaps of these programs or work with the government to ensure efficient delivery and effectiveness in

target areas.

The Government of India has launched a gamut of programs aimed at tackling the issues of urban and rural

poverty, livelihood development, and education; therefore those highlighted in this report have been mentioned

Source: Unni et al, 200312

12 Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms,

Volume 34.

DevelopmentSectors

Government Programs and Acts

Descriptions Government Ministry & Department

16

because they are dynamic, evolving and their aims are specific to the subject at hand – creating educational,

healthcare social and economic capital equally in rural and urban India.

Food

Shelter &

Infrastructure

Health

Education

National Rural

Employment

Guarantee Scheme

(NREGS)

Public Distribution

System (PDS)

Anganwadis

State Slum

Development Boards

Jawaharlal Nehru

National Urban

Renewal Mission

(JNNURM)

Public Health Centers

(PHC) and

Government Hospitals

Sarva Shiksha Abhiyan

(SSA)

Swarna Jayanti

Shahari Rozgar Yojana

(SJSRY)

National Rural

Employment

Guarantee Act

A national rationing

mechanism, entitling

households to essential

commodities at subsidized

prices.

The nodal food distribution

centers in rural and urban

India for lactating mothers

and infants.

Provides funding and

upgradation of old housing

stock.

A government led PPP to

address poor infrastructure

and lack of basic services for

the urban poor.

Healthcare facilities open to

socio economic groups

nationwide.

Government flagship program

to achieve the

universalization of primary

education.

A wholesome poverty

alleviation scheme covering

skills development, business

advisory, microfinance, self

help group development and

employment in urban public

works.

Minimum wage and

employment guarantee in for

rural public works.

Ministry of Food and

Consumer Affairs

Ministry of Women and

Child Development

Ministry of Housing

and Urban Poverty

Alleviation

Ministry of Housing

and Urban Poverty

Alleviation

(implemented by

Ministry of Urban

Affairs)

Ministry of Health

Ministry of Human

Resources

Development -

Department of

Education

Ministry of Housing

and Urban Poverty

Alleviation

Ministry of Labor

Social Protection & Security

Economic Protection & Security

Table 2 : List of Government Program & Acts working towards social and economic security for the urban and rural poor

DevelopmentSectors

Government Programs and Acts

Descriptions Government Ministry & Department

17

Minimum Wages

Welfare

Legal and Political

Recognition

Technical &

Vocational Training

Minimum Wages Act

of 1948

Unorganized sector

workers’ Social Security

Scheme - Employees

Provident fund

organization

Multi Purpose National

Identity Card

Ration Cards

Industrial Training

Institutes

Jan Shikshan Sansthan

A government act to fix

minimum wages annually.

Providing old age pension,

personal accident insurance

and medical insurance to the

unorganised worker’s sector.

Mission to universalize

national identity for every

citizen of India.

Critical identity documents

that allow the urban and rural

poor to claim commodities

from PDCs at subsidized

rates.

Vocational and industrial

training for those who have

passed 10th board exams.

Vocational training for

migrants and the urban/rural

poor living in slums.

Ministry of Labor

Ministry of Labor

Ministry of Home

Affairs

Ministry of Food and

Consumer Affairs

Ministry of Labor

Ministry of Human

Resource Development

3.2 Social Protection & Security

3.2.1 Food

The Public Distribution System (PDS) of the Ministry of Food and Consumer Affairs under the Department

of Food and Public Distribution is a rationing mechanism that entitles households to specific quantities of

commodities at subsidized prices. In most parts of the country, PDS is universal and all households, rural and

urban, are entitled to rations. According to the budget 2008-2009, the Indian Central Government sanctioned

Rs. 320,000 million for the Public Distribution System. Overall food security in India is quite high, in spite of

rampant poverty. This is true whether one views food security from the macro country level or micro household 13level. Anganwadis (Ministry of Women and Child Development) are the nodal food distribution centers in

rural and urban India for lactating mothers and infants. There are an estimated 650,000 anganwadi centers

employing 1.8 million mostly-female workers and helpers across the country. They provide outreach services to

poor families in need of immunization, healthy food, clean water, clean toilets and a learning environment for

infants, toddlers and pre-schoolers. They also provide similar services for expectant and nursing mothers.

According to government figures, anganwadis reach about 33 million children and 6 million pregnant or lactating

women.

13Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms,

Volume 34.

Gaps: There is scope for greater integration

between the Ministry of Food and Consumer

Affairs and the Ministry of Women and Child

Development for the effective allocation of grain

and essential food items to anganwadi networks.

Also, the entire distribution system lacks effective

monitoring processes, leaving gaps for

malpractice and wastage. Inclusion of innovative

food processing technologies that minimize food

processing costs and create livelihood options

would also meet the program objectives. Here

private sector involvement in managing and

streamlining food supply chains will prove useful

and help reduce food wastage, thus keeping

essential commodity prices stable.

The State Housing Board and State Slum

Development Boards under the Ministry of

Housing and Urban Poverty alleviation provide

funding and other support for both new housing and the upgrading of the old housing stock among the poor.

Jawaharlal Nehru National Urban Renewal Mission (JNNURM) under the Ministry of Housing and Urban

Poverty Alleviation and the Ministry of Urban Development (implementing agency) was launched in

December 2005, responding to the problems of poor infrastructure and lack of basic services for the urban poor.

The initiative has two specific sub missions:

1) Addressing urban infrastructure and governance

2) Providing basic services for the urban poor

The integrated development to rehabilitate slums

is achieved by providing 'pucca' shelter, water

supply, sewerage, drains and storm water drains,

sol id waste management, community

toilets/baths, street lighting, community halls

and child care centers for the urban poor. The

program also supports projects to build affordable

houses for the urban poor and people living on low

incomes. Approximately Rs. 300 billion has been

sanctioned for the mission spread over the course 14of seven years .

Within three years the mission has achieved the following:

1) One or more projects sanctioned in 54 cities out of 63 mission cities (over 26 states out of 32 states).

3.2.2 Shelter & Infrastructure

Civil society parallel intervention: Master Choa Kok

Sui Foundation – Ek Muthi Anaaj

Ek Mutthi Anaaj appeals to households to make a

contribution of just a handful of rice daily. The grain is

deposited in a bucket placed in the homes of the donors

and after a month's time, the grain thus collected is sent

to the various hostels where the Feeding Program is

being implemented. Through this, EMA seeks

contributions from donors in the form of grain. The

donors are based in various parts of Delhi. Besides

households, educational institutes and establishments

have expressed their enthusiasm to start the initiative in

their respective establishments. The initiative is inspired

and motivated by the age-old values of giving and

helping. The intent is to ask for minimum possible

contributions so that we can do whatever we can, to

minimize the debilitating effect of hunger on children,

who are the most vulnerable.

14 Ministry of Urban Development website, Government of India.

18

Civil society & public partnership - Parivartan

Parivartan is a slum networking project funded by the

World Bank, a collaborative effort between SEWA,

Ahmedabad Municipal Corporation and the slum

dwellers. The program serves as a model for the

Government of Gujarat to develop a state slum policy

with inputs from local NGOs, slum dwellers and

concerned citizens

2) Out of 90 infrastructure projects committed for completion before December 2008, 28 projects reported

satisfactory utilization of funds.

3) Public transport (especially Bus Rapid Transport System) is attracting the private sector due to evolving

revenue models and user change regimes.

The JNNURM mission regularly floats tenders and invites private companies to participate in the development of

city projects. Seeing that the mission is well funded, there is tremendous scope for greater private sector

participation from construction, architecture and infrastructure firms to expedite projects and also invest in the

holistic development of such projects through a stronger PPP model. Furthermore, there are opportunities for

accounting firms acting as third party auditors to ensure the legitimate and ethical utilization of funds allocated

for JNNURM.

15 Cezayirili G. & Basu K. (2008) – Report on Two Years of JNNURM, Asian Development Bank.

Gaps: There is a lack of private sector financial tools to assist low income home owners and slum dwellers for

home ownership or improvement, thus leaving the economically weaker sections no choice but to seek help from

the government. Furthermore, there are efficiency gaps in distributing state funds effectively amongst target

groups for home development, leaving space for corruption to thrive

The Government of India has made a number of attempts to reduce the costs of schooling to promote education

by offering a variety of incentives: non-formal education system in collaboration with NGOs, scholarships, free or

subsidized education for girls, free textbooks, free uniforms, midday meals and dry rations. High rates of poverty

and a poor schooling system/teaching standard have resulted in low literacy rates especially amongst child

laborers. As an innovative and to promote education within this group, the government has started evening

classes for illiterate children from nine to fourteen years of age.

Sarva Shiksha Abhiyan (SSA) is the Government of India's flagship programs for achievement of the

universalization of elementary education (UEE). This was mandated by the 86th amendment to the constitution

of India, making free and compulsory education to children of 6-14 years age group a fundamental right. In the

2008-2009 budget, the Government of India sanctioned Rs. 80,000 crores for the further development of this

program. SSA is open to collaborating with NGOs to deliver quality education to the urban and rural poor.

The following education programs are currently running under the SSA:

Kasturba Gandhi Balika Vidyalays – These

institutions have been set up in the rural and urban

settings to address the issue of equity in the

education of girls belonging to the minority and

marginalized communities. So far 1754

vidyalayas are running nationwide. The

Government of India allocated Rs. 80 crore to set

up and upgrade existing hostels attached to the

schools.

Pahal – Launched in 2007, is an initiative of SSA

Uttrakhand for providing school education to

3.2.3 Education

19

Children of brick kiln workers stay in residential hostels to continue their education

while their parents migrate. (Lokadristi, Nuapada, Orissa)

never enrolled and drop out children in

the age group of 6-14 years who belong

to vulnerable sections of society, e.g. rag

pickers, scavengers, snake charmer,

beggars and orphans living in urban

slums. Pahal has since been expanded to

Jharkhand, Rajasthan and Delhi. The

scheme was conceived in view of the

shortage of government schools within

the range of 1 km of urban slums and

non-acceptance of the Education

Guarantee Scheme and Alternative and

Innovative Education schemes by the

children’s parents. It can be said that the

Pahal program is a valid expansion of the

EGS/AIE programs. The Pahal program is

a more inclusive approach to education

using the PPP model for effective

delivery, by working with Government

recognized private schools in the vicinity

of urban slums. The scheme provides Rs.

3000 per annum, per child in

installments directly to the accredited

schools. The payment of installments is

directly linked to the attendance and

achievement level of the enrolled

children.

Gaps: Despite a significant amount being allocated annually for program

upgrading and maintenance, there is a lack of quality educational infrastructure,

i.e. electricity, desks, computers, textbooks and latrines especially for the female

student. Further, there is a severe lack of quality teachers working in government

schools and there continues to be issues of over crowding and teacher

absenteeism.

Government Hospitals and Primary Health Centers (PHCs) run by the Ministry of

Health & Family Welfare are provisions made by the Government of India. 17%

of all households throughout India did not have access to public health facilities –

26% in the rural areas and 7% in the urban areas. In urban areas, 23% of

households do not use the PHCs either because the treatment was not available

or the facility was too far away. However, this can also be attributed to the fact

that the target population's perceptions of their health, illness and casual factors

are largely based on socio-economic, cultural and environmental factors.

3.2.4 Health

Civil society & public partnership – LAMP

AIF's Learning And Migration Program (LAMP) partners in Orissa,

Maharashtra, Gujarat, and recently Andhra Pradesh, directly

educate 30,000 children every year, Concerted advocacy efforts

have moved the government to support and scale up these

models of education. The model promotes: residential hostels for

children of distressed seasonal migrants to continue their

education in their village while their parents migrate; site schools,

where children receive education at the migration destination; and

bridge courses, where children can catch up on courses that were

interrupted by migration. This program has resulted in a significant

increase in the number of migrant children receiving education.

SSA has notified all states to identify and include children whose

education is affected due to migration. The governments of

Gujarat, Maharashtra and Orissa have committed to supporting

and replicating seasonal hostels pioneered by AIF. In the 2008-

09 school year, they are investing $12.5 million to educate

145,000 children affected by migration. Also this year, the Andhra

Pradesh government partnered with AIF and six NGOs in

Hyderabad (and Greater Hyderabad) to provide education to

23,000 children of construction workers. AP-SSA is providing

90% of funds necessary to run this program; AIF covers the

remaining components with the ultimate goal of enrolling these

children into mainstream government schools.

16

Volume 34.

Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms,

20

Schools at migration work sites allow

children to receive an education while their

parents work. (Janarth, Maharashtra)

Although the government of India has introduced rigorous structural

and adjustment programs to sharply reduce their expenditure on

public health services, high user charges raise barriers for many

people with low health status and income constraints. Those who are

fortunate enough to be provided medical benefits from their

employers do have access to medical and health facilities; however

informal sector workers are neither covered by state nor private

medical benefits.

Gaps: The severe deterioration of healthcare being provided by Public

Health Centers and Government hospitals is highly visible, especially

the inability to handle the increase in admissions. Further to this there

is a lack of private sector intervention in providing micro health

insurance at low premiums for those below the poverty line.

17In 1997, Swarna Jayanti Shahari Rozgar Yojana (SJSRY) was launched by the Government of India to

rationalized poverty alleviation scheme, replacing three earlier schemes that were running parallel to each other.

The SJSRY aims to provide gainful employment to the urban poor (living below the poverty line) where

unemployed or under-employed, through the setting up of self-employment ventures or provision of wage

employment. In conjunction with the Urban Local Bodies scheme, Community Development Societies (CDS)

were set up to operate two special schemes:

The Urban Self-Employment Program (USEP) provides assistance to individual urban poor beneficiaries for

setting up gainful self employment ventures. This component involves micro -credit from public sector banks.

The scheme also provides basic business skills training and other skills development as a compulsory step before

disseminating micro-credit to the micro-entrepreneurs.

Development of Women and Children in Urban areas (DWCU) aims at helping groups of urban poor women in

taking up self-employment ventures where groups of at least 10 women are provided a subsidy of Rs. 1.25 lakh

or 50% of the cost of the project (whichever is less). The groups have to set themselves up as thrift and credit

societies, where the society will be eligible for an additional grant of Rs. 25,000 as a revolving fund. The fund is

meant for purchases of raw materials, marketing, infrastructure support, one-time expenses on child care

activity, and payment of insurance premium for self/spouse/child by maintaining savings for different periods of

time.

The Urban Wage Employment Program (UWEP) seeks to provide wage employment to prospective workers

living below the poverty line within the jurisdiction of urban local bodies by for the construction of socially and

3.3 Economic Protection & Security

3.3.1 Capital Security

Civil society parallel intervention:

Self Employed Women's Association

(SEWA)

In 1992 SEWA introduced a unique

integrated insurance plan for its

members where each member pays

Rs. 65 annual premium. The women

are covered for health, maternity

benefits, asset insurance, and life

insurance. In 2000, SEWA reported

that 30,000 women were enrolled in

the plan of which 50% are in urban

areas.

17 Ministry of Housing and Urban Poverty Alleviation website, Government of India.

21

economically useful public assets. Under this scheme the Government of India will pay the prevailing minimum

wage rate directly to the beneficiaries.

Up until 2006-2007, the SJSRY program has received Rs. 1480 crores funding from the Central government:

1) 858,742 people have been given skills development training

2) 155,978 thrift/credit societies have been formed

3) 659,446 people have been assisted to set up individual micro

enterprises

4) 473,404 women have been assisted to set up micro enterprises

5) 588,760 man days (1613 man years) of work have been generated

Gaps: There is urgent need to link microfinance and skills development

modules with private sector companies specializing in the spaces. Further,

SJSRY programs can incorporate stronger business advisory services with

private sector help.

National Rural Employment Guarantee Scheme (NREGS) states that

one adult per house who is willing to do unskilled manual work at the

minimum wage is entitled to 100 days of employment on local public

works within 15 days of applying. If employment is not provided within 15

days, the applicant is entitled to unemployment allowance up to 100

days.

The focus of the scheme shall be on the

following works in their order of priority-

Water conservation and water

harvesting

Drought proofing (including a

forestation and tree plantation

Irrigation canals including micro and

minor irrigation works

Provision of irrigation facility to land

owned by the SCs / STs

Renovation of traditional water

bodies

Land development

Flood control and protection

works including drainage in water

logged areas

Rural connectivity to provide all-

weather access

Any other work notified by Central

or State Government

The scheme ensures that the state is

directly employing the workers. The use

•

•

•

•

•

•

•

•

•

Civil sector & private intervention – Rickshaw Sangh

AIF's Rickshaw Sangh initiative addresses underlying causes of

poverty and promotes micro entrepreneurship among urban

poor and rural migrants. Operational in 3 states – Uttar Pradesh,

Bihar and Assam – the program enhances the quality of life of

rickshaw drivers by enabling them to get loans from banks to buy

their own rickshaws and bringing them under the purview of

formal banking services. For banks in search of new clients,

India's 8 million rickshaw drivers present a $20 million business.

However, on their own, these drivers lacked the credit-

worthiness to get a loan to buy their rickshaw. By standing

guarantor for them, AIF has succeeded in drawing them into the

financial system. For cash-strapped rickshaw drivers, this means

the realization of forgotten dreams and legitimization of their

occupation.And banks such as the Punjab National Bank, AIF’s

lead partner in this initiative, have added a whole new set of

clients. The Rickshaw Sangh was conceptualized by Guwahati-

based NGO, Center for Rural Development (CRD), which was

AIF’s first partner on the project. The Indian Institute of

Technology (IIT), Guwahati designed a new model rickshaw

which is sturdier and lighter with increased luggage and leg

space. AIF now works with CRD and NGO partners in Varanasi,

Allahabad, and Lucknow.

22

As owner of a cycle rickshaw, Kasim Ali proudly

decorates his rickshaw to attract more passengers.

(CRD, Guwahati, Assam)

of private contractors is strictly prohibited and guaranteeing minimum wage to each household. This scheme has

so far provided employment to 34.7 million rural households that fall in the categories of:

Scheduled Caste (30.81%)

Scheduled Tribes (24.06%)

Households headed by women (48.88%)

Others (45.13%)

Gaps: There is urgent need to link microfinance and skills development modules with private sector companies

specializing in these spaces. SJSRY programs can incorporate stronger business advisory services with private

sector, thus ensuring strategic micro enterprise growth. NREGS could include a focus on micro-enterprise

development which will also create opportunities for skilled labor in the private sector.

18The Minimum Wages Act of 1948 of the Ministry of Labor & Employment requires the government to fix

minimum wage rates in respect of employment specified to in the schedule and to review and revise it at

intervals of no more than five years. Unfortunately, even though the act is in place, a vast majority of workers do

not receive the minimum wage. In September 2007, the National Minimum Floor Level Wage was increased to

Rs. 80 per day for all scheduled employments from Rs. 66 in 2004 (Ministry of Labor 2007).

•

•

•

•

3.3.2 Minimum Wages

18Ministry of Labor website, Government of India.19Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms.

Volume 34.

3.3.3 Organizing – Trade Union Development

3.3.4 Welfare Funds

In India, the organization of workers in the informal sector is achieved through three avenues:

1) Radical political movements engage in agrarian class struggles. These are mainly extreme left groups, i.e. the

Naxalite movement, where they have has some success in achieving economic gains for the poor laboring

class.

2) Trade unions of political parties, using a similar approach used by trade unions in the organized sector tend to

organize according to their occupation. We are see excellent trade union formation of unorganized workers

in Kerala under the Communist government.

3) Empowerment groups created by NGOs often organize around micro-credit programs for women, adult

literacy, healthcare services, relief assistance in times of crisis, etc. There are over 2000 NGOs working on 19labor related issues in India.

Gaps: Creating centre led national unions for the informal sectors will provide a sense of security for workers in

the space. The model currently implemented by the state of Kerala can be used as a framework for nationwide

implementation. There is also scope for NGOs to become advocacy and special interest groups providing active

representation services for informal sector unions, also mediating between government and private sector

interactions.

The Ministry of Labor and Employment has set up welfare funds for informal workers in six sectors – mines,

bidis, cine, docks, building and construction. Kerala has set up twenty welfare funds where a similar trend has

been followed in Gujarat, Maharashtra, Karnataka, Punjab and Assam for a specific group of worker. The welfare

23

funds do not have a system of registration, but they do require identity cards to be issued by employers. The

widespread non-implementation of this requirement leads to a large number of workers not receiving the

benefits due to them.

These funds mainly provide medical

care, assistance for education, housing,

water supply and recreation facilities.

However, the coverage under all the

above programs is little more than 10

million out of an estimated 370

million workers in the unorganized

sector.

The Unorganized Sector Workers'

Social Security Scheme was launched

in 2004. The scheme envisaged to

provide three basic necessities to the

workers in the unorganized sector:

1) Old age pension

2) Personal accidental insurance

3) Medical insurance

The scheme is available for the workers

drawing pay/wages/income not more

than Rs. 6,500 per month. To avail

benefits under this scheme, the worker

will make a single contribution of Rs.

50 per month where the worker will be

in the age group of 18-35 years, and

Rs. 100 per month from the workers in

the age group of 36-50 years. The

government's contribution is at

1.16% of the monthly wages of the

workers. The scheme is being

implemented through the Employees

Provident Fund Organization (EPFO).

In 2006-2007 the EPFO had 5.1

million claims where Rs. 12,106.68 21crores was paid out in claims .

20

21

Ministry of Labor website, Government of India.

Employees Provident Fund Organization website, Government of India.

Civil society parallel intervention – SwachhDhara

SwachhDhara (Clean Earth) is a comprehensive worker-owned,

waste management enterprise organized by AIF's partner NGO in

Patna, Nidan. With AIF's support, Nidan initiated SwachhDhara to

create secure livelihoods and a dignified work environment for

thousands of waste workers and sweepers in Patna city.

SwachhDhara collects and segregates waste from individual

households, restaurants and institutions. Organic waste is used in

a vermi-compost unit and waste paper is recycled in a paper-

manufacturing unit, both of which are self-sustaining enterprises

through their revenues. Additionally, SwachhDhara receives

contracts from the Patna municipality to manage waste in various

parts of the city.

Labor organization and minimum wage guarantee:

Members attain livelihood security from contracts and guaranteed

minimum wages. They have fixed hours with scheduled breaks,

receive uniforms and safety training equipment, creating a better

dignified work environment. Further, 1,500 of the city's

wasteworkers are organized into 125 self-help groups enabling

access to small business loans.

Pride in their work:

By issuing identity cards, uniforms (caps, masks, gloves, and

boots), cycle-operated waste collection vans, a regular salary and

social security, Nidan's intervention ensures the dignity of

sanitation workers is maintained. As legitimate competitors in the

mainstream economy, SwachhDhara members can negotiate

with the government for their rights and entitlements. Uniforms

and identity cards, in particular, change the perception

SwachhDhara members have of themselves and the public's

perception of waste workers. As SwachhDhara's relationship with

the communities it services formalizes, its members commonly

report a reduction in the vulnerability associated with their

profession and an increase in respect showed toward them. These

efforts provide visibility to wastepickers, ensuring their presence in

public consciousness while paving the way for access to other

entitlements.

Gaps: By collaborating with the private

sector, EPFO offices can scale up their

visibility nationwide by increasing their

offices and staff numbers.

24

3.3.5 Legal & Political Recognition

The Multipurpose National Identity Card (MNIC) was

launched in 2002 by the Ministry of Home Affairs and

is still in the pilot phase across 13 states in specific

districts amongst 2 million people. MNIC's mission is to

create a national identity for every Indian citizen with

the objective of increasing national security, managing

citizen identity and facilitating e-governance. Although

the project is still a long way away from complete

integration into the system, it displays positive steps

being taken by the government to address the issue of

uniform national identity using technology.

Although Ration Cards have been an important part of the Public Distribution System (PDS) in India, they also

act as crucial identity documents. Application for the ration card can be obtained from circle offices where the

head of the family is attested by a municipal councilor and proof of residence is required. For newly arrived

migrants or those living in urban slums who cannot provide any proof of residence, an office will conduct on spot

inquiries by recording the statements of two independent witnesses in the neighborhood. It usually takes 15

days for the preparation and dissemination of ration cards. When applying for additional documents like the

domicile certificates, or to be included in the electoral roles, it is essential to have a ration card to prove one's

identity. Hence the importance of attaining the ration card not only allows migrants, the urban and rural poor to

purchase essential commodities at subsidized prices, but also paves the way for them to be included in the

political processes of the country.

This form of legal recognition and

identity is also vital for entrepreneurs and

workers in the informal sector. This is to

avoid the reality of exploitation by local

officials and criminals who charge legal

and illegal fees where in return they offer

some breathing space for the vulnerable

to continue their trade. Hence, once

legal status is achieved, migrants can be

led in the right direction for them to

understand their legal rights obligations

to attain all local government clearances

Gaps: The stronger enforcement of law

can work towards ensuring every citizen

of India must have identification. The

MNIC project can be scaled up

substantially by contracting ID card

production to a private partner. Urban

Local bodies together with civil society

22Ministry of Home Affairs website, Government of India.23Bharat Express, Government of India Information portal, website.

25

Civil society & public partnership – Nidan Legal Clinic

Nidan initiated a Legal Clinic in Patna to provide services to

informal workers, women and children. Users pay a nominal

registration fee for assistance with livelihood and personal

issues. The clinic furnishes information regarding the rights of

informal workers, assists in intervention and mediation, attains

support from the police and court, and organizes collective

pressure. Workers organized by Nidan report a decrease in police

abuse, nonpayment of wages and bribe payments. They further

report an increased awareness in their legal rights and greater

willingness to act upon these through collective strength. In

2006, Nidan mobilized migrant street vendors in Delhi to

protest, lobby with public representatives, and to participate in

the legal proceedings of the Supreme Court. The effort

resulted in the Municipal Corporation of Delhi inviting license

applications from Delhi street vendors in September and

October 2007.

Safai Mitra (friends of hygiene) sweep the streets of Patna in full uniform, as

members of SwachhDhara, a wasteworker-owned enterprise. (Nidan, Patna, Bihar)

and the private sector can scale up urban slum mapping to ensure all habitants are accounted for and provided

with ration cards.

3.3.6 Technical and Vocational Training

•

•

Mainstreaming and assimilating the migrant workforce into the organized sector requires a phenomenal

investment of time, capital and knowledge to ensure effectiveness of the various vocational training and

apprenticeship programs running simultaneously.

The Government of India is currently running the Industrial Technical Institutions (ITIs) under the Ministry of

Labor and the Jan Shikshan Sansthans under the National Literacy Mission of the Ministry of Human Resource

Development. Both the programs have a unique operational structure based on partnerships with the private

sector and civil society thus enabling effective teaching methods and ensured absorption of the trained

workforce into the private sector.

Those who have passed the 10th standard or 8th standard, i.e. 10th boards are eligible to apply for courses at the

ITIs. Private sector association with the ITIs goes only as far as providing placement opportunities to ITI

graduates, The ITCs (Industrial Training Centers) which are privately run and publicly monitored are more efficient

in delivering curriculum and excellent industry tie ups to provide employment and placement options for ITI 24graduates. Upon successful completion of the industrial courses, graduates from the ITIs and ITCs are presented

with National Trade Certificates issued by the National Council for Vocational Training. In total there are 5114 25ITIs,1896 are government run and 3218 are private. They are widely spread in urban and rural India where

approximately 20% of the Indian workforce received formal education from the ITIs.

However, the entry eligibility marginalizes the vast majority of the migrant population that has not studied until

the 10th standard. There needs to be provisions made for the less educated sections of society. Furthermore, the

ILO highlights in its detailed assessment on ITIs that several changes are necessary in the structure of the

institutions where greater provision has to be made for accepting workers who have learnt their trade through

informal apprenticeships. Also, the ILO raises the specific issue of high drop out rates because some students are

unable to complete the entire course due to personal reasons and limited learning capabilities. Some of the

suggestions include:

Introducing smaller, dynamic modules which can be easily completed where the student receives a

certificate of merit upon completion of each module.

Introducing short courses for educated school leavers (8th

Grade and above) in non-industrial trades that correspond

to the fast growing sectors such as commerce, insurance,

personal care, agriculture-related, forestry and paper,

tourism, IT enabled services, and paramedical

professionals.

Jan Shikshan Sansthan (Institute of People's Education IPE)

is a vocational training program is aimed particularly at

migrants and deprived communities who normally live in the

24Ministry of Labor and Employment website, Government of India.252003 – ILO Report: Industrial Training Institutes of India, the efficiency study report, Government of India.

26

Kiran Vaghela became the first of his family to access salaried

employment at this studio through a vocational training program.

(Saath, Ahmedabad, Gujarat)

subhuman conditions of the slums, on

pavements, settlement colonies, labor

colonies etc. Many are first generation

migrants exposed to the grim and

stark realities of complex urban life

and the industrial milieu. JSS, formerly

known and launched as the Shramik

Vidyapeeths in 1967, emerged as an

institute for conducting skill up

gradation in the areas of programs of

non-formal, adult and continuing

education. It provides an academic

and technical resource support to Zilla

Saksharata Samitis in both urban and

rural areas. The methodology focuses

on theory, practicals and field work

experience. The JSS program falls

under the umbrella of the National

Literacy Mission, a government

taskforce that aims to impart

functional literacy to non-literates in

the 15-35 age group. The NLM is

being enlarged to provide a non

formal education program, ensuring

that the benefits of TLCs are made

available to out of school children as 26well.

The JSS curriculum is structured into

short course modules, ranging from

3-6 months depending on the

complexity of the subject being

taught. Students can attend as many

courses as they want and attain

c o m p l e t i o n c e r t i f i c a te s a s

qualifications from the program. The

JSS is working towards getting the

certificates accredited from the NCVT. NGOs like the Smile foundation actively participate in marketing the

program to the immediate locality and also help in operationally managing the program jointly with the Ministry

of HRD and a nucleus of professional staff. There is still scope to develop courses that cater to rag pickers as it has

been noticed that garbage collection and sorting is a rapidly growing industry in the unorganized sector. Also,

teaming up with institutes focused on entrepreneurial development to impart vital business skills that will allow a

vocationally qualified person from the JSS to start and operate a business successfully. This is determined to be

the true path towards poverty alleviation.

Civil society, public and private partnership: CAP Foundation

In 2004, AIF invested in a market-led vocational training

program for disadvantaged urban youth developed by Dr.

Reddy's Foundation in Hyderabad in partnership with the

Andhra Pradesh government and the UK Department for

International Development. The program was designed to

prepare them for employment in high-growth local industries

that faced shortages of skilled workers. The program trained

over 20,000 youth in nine cities of Andhra Pradesh and had a

job placement rate in excess of 90 percent.

In 2006, AIF partnered with the CAP Foundation to provide

necessary technical assistance for Saath, an Ahmedabad-

based NGO, to adapt the model. With guidance from AIF, local

industries and the Ahmedabad Municipal Corporation, three-

month training modules were designed in areas such as

customer relations and sales, information technology enabled

services, BPO, hospitality, bedside patient assistance, and

electronic repair. Corporations like Big Bazaar, Westside, Café

Coffee Day, and ICICI Bank Ltd as well as numerous call centers

and hospitals began to recruit Saath trainees. Over 4,600

young people trained under the project are now gainfully

employed. The government of Gujarat saw the immense

potential of this project and through the Gujarat Urban

Development Mission matched AIF's investment 3:1. With this

influx, Saath is on track to train and employ 25,000 urban

youth in 8 cities of Gujarat by 2010 in partnership with local

organizations. Over the past year, AIF has expanded the

program into Jharkhand, Chattisgarh and Tamil Nadu with more

states in the pipeline and a target of 100,000 youth job placed

by 2010.

26Ministry of Human Resource Development website, Department of Education, National Literacy Mission.

27

Gaps: Private sector intervention consisting of contributions to skills dissemination, active recruitment and

continued business skills advisory to micro entrepreneurs will create more holistic and results oriented vocational

training. Integrating ITIs, ICTs and JSSs into one unified institution with divisions focusing on the various

demographics will enable efficient monitoring and combined evolution of the programs.

Along with highlighting government programs aimed at alleviating social and economic ills in urban and rural

India, it is vitally important to highlight the sunrise sectors of rural India in order to attract private interest.

Generating livelihoods through business development in rural India is pivotal to grounding migration at the

source.

In the past 25 years an average farm's profitability has steadily declined and per capita farm and non-farm ratios

have worsened. A government study concedes that deceleration in agricultural growth from 3.2% between

1980 and 1996-1997 to 1.5% subsequently, has adversely affected the landless, the marginal, the middle and 27the big farmers alike. The integration of

newer farming techniques, i.e. organic

farming and drip irrigation that boost

farm productivity will increase yield and

eventually profitability for farmers.

'Organic' in organic agriculture is a

labeling term that denotes products that

have been produced in accordance with

certain standards during food produc-

tion, handling, processing and marketing

stages, and is certified by a duly

constituted certification body or

authority. The organic label is therefore a

process claim rather than product claim,

where it simply means that the products

follow the defined standard of

production and handling.

Ecological services rendered by organic

farming include soil forming and

conditioning, soil stabilization, waste

recycling, carbon sequestration, nutrient

cycling, predation, pollination and

habitats.

A number of studies have shown that under drought conditions, crops in organic agriculture systems produce

significantly higher yields than comparable conventional agricultural crops – often out fielding conventional crops 28by 7-90% depending on regions in India. A survey of 208 projects in developing tropical countries, in which

3.4 Rural Economic Development

3.4.1 Organic Farming

2711th Five Year Plan - Planning Commission approach paper.28Ramesh P., Singh M. Subba Rao A. (2005) – Organic farming, its relevance in the Indian Context.

Private & civil partnership intervention: Zameen Organic

Zameen Organic Pvt. Limited is a platform for providing

companies and farmers with direct access to each others

resources. Its purpose is to create opportunities for producers

and workers who have been economically disadvantaged or

marginalized because of the conventional trading system. Close

collaboration between farmers and companies makes the

supply chain more transparent and facilitates initiatives for

bringing the consumer in touch with the producer. Zameen

Organic is the processing and trading company owned by farmer

organizations, which empowers farmers to have effective

control on overall fair trade organic cotton supply chain.

Zameen Organic is extensively working in Adilabad (Andhra

Pradesh) and Vidharbha (Maharashtra). It has organized farmers

into Self Help Groups (SHGs) and has provided them extensive

training and handholding for organic cotton cultivation. It has

developed an efficient supply chain management system that

feeds demand information directly to an established network of

6500 farmers.

28

contemporary organic practices were introduced, showed average yield increases of 5-10% in irrigated crops

and 50-100% in rain fed crops. Furthermore, due to the lower input costs and higher mark up price of organic

products in the markets, there is tremendous scope for farmers to earn higher profit margins.

3.4.2 SEZ Development – Opportunities Lost and Found

•

•

•

•

•

•

•

The idea of Special Economic Zones in India has been met with great enthusiasm and criticism alike amongst all

stakeholders involved. Agitations in several places have stalled infrastructural and industrial growth in those

regions since locals and residents have not been convinced by the corporations that their livelihood options will

be uplifted through SEZ or industrial influxes.

It is essential to understand what land means to a farmer:

Land is an asset that provides him food and a livelihood

It enables him/her to utilize the major skill that he/she possesses – working on the land29It can be passed on to the next generation hence providing security for many generations

A huge cash payment for farm land is too simplistic a solution for SEZ development. Cash relief for land in reality

exacerbates the situation where the male member of the family spends the money on consumer durables like

televisions, cars and alcohol, where the cash quickly disappears as fast as it came.

Hence, rather than looking at a 'cash for land' solution, holistic approaches which directly address the concerns of

the farmer are essential, where forging efficient PPPs (including civil society) models for intervention will be

required:

Instead of selling the land, rather lease it to the company or SEZ. This way the land still remains in the

farmers' ownership where a regular income in the form of lease rent can be obtained.

Giving the farmers a share in the business through safe and secure instruments, i.e. debentures. Although this

option will not provide long term livelihoods, it does allow the farmer to directly benefit from company

profits.

Should one of the above two options be initiated, they should be followed up with value added financial

advisory services. This will help the farmer make the right decisions in terms of what to do with the money

he/she receives.

The above options can only be realized if skills development through vocational training is vigorously

incorporated into any package being offered to farmers. Furthermore, corporate contribution in developing

the local infrastructure of the areas surrounding the SEZ displays the social commitment of the corporation 30towards the local community .

Therefore, rural development through special economic zone development can include local authorities, village

bodies and non governmental organizations to better understand the intricacies and modalities of the locality

and establishing good working relationships.

There is tremendous scope for current vocational training programs spearheaded by the government, i.e. Jan

Shikshan Sansthan or ITIs, or led by NGOs to work directly with corporations and the Ministry of Rural

29Venkateswaran S. (2007) June 2 – Industrial displacement, Looking Beyond Cash Compensation, Economic & Political weekly.30Venkateswaran S. (2007) June 2 – Industrial displacement, Looking Beyond Cash Compensation, Economic & Political weekly.

29

3.4.3 Emerging Social Enterprises

3.4.4 Rural BPOs, Service Sector Opportunities and Building Capabilities

In order to create affordable substitutes

to the lack of infrastructure in rural India,

new enterprises and companies are

adopting a for-profit approach to create

products that directly address social and

environmental issues. Such businesses

have been termed 'social businesses', a

term coined by Nobel Peace Prize winner

Mohammed Yunus of the Grameen Bank.

d.light energy is a company that

produces solar lanterns and markets its

products in rural India or to anyone who

is affected by sporadic electricity supply.

Till date the urban and rural poor rely on

kerosene lamps as a poor and unreliable

source of light that emits smoke and

creates an unhealthy home environment. Also, it is estimated that those living below the poverty line spend

approximately a third of their income on procuring kerosene for electricity and cooking purposes. The lanterns

can be used by micro-entrepreneurs and families alike, allowing them to continue with their economic activities

and chores unabated.

The VitaGoat is a low-cost food processing system relying on pedal power to make soymilk to be consumed by

those suffering from malnutrition. The system is currently being manufactured by Malnutrition Matters, a

Canadian NGO specialized in the space of affordable food processing, creating machines that provide the next

critical step in the industrialization of agriculture. The VitaGoat addresses two critical development agendas,

combating malnutrition and generating livelihood options where a self help group or a dedicated individual can

operate the machine and sell the milk for a marginal profit to more well off customers.

During the late 1990's and early 21st century India's, major cities became global hubs for information

technology software development and more critically business process outsourcing, (BPOs) i.e. front end

Development to ensure SEZ develop-

ment includes vocational training and

livelihoods enhancement mechanisms.

Furthermore, there are boundless

opportunities for private financial

institutions to get involved in mediating

and structuring equity instruments

whilst providing financial advisory

services for the farmers.

Civil society intervention: Sadhana Samudaya Kalloori

Over the years, the small farmers in south Tamil Nadu have sold

their agricultural lands to bigger farmers or agri-based companies

and migrated away from villages, due to financial problems. This

has left the land owners to face acute shortage of skilled labor in

various segments. To capitalize on this potential Covenant Center

for Development and Nanban, NGOs from Madurai have started

Sadhana Samudaya Kalloori (SSK). Here the 10th and 12th pass

students from economically backward families can go through

courses that can later fetch them jobs in their own villages or

they can independently set up a small scale industry.

Making the local community self reliant is the main focus of

these programs. In the same vein CCD has started a course in

Rameshwaram too. Here they train local fishermen in diesel

mechanics so that they can attend to repairs of their boats'

engines when needed. The fishermen otherwise have to spend a

lot of money and time to get these motors repaired as the

closest mechanic is in Madurai which is over 170 km away. In the

meanwhile, the fishermen lose out on their earnings because

they cannot go fishing for so many days. Apart from a one-year

ITI course (10 to 12 per batch, Rs.1200-1600) in diesel

mechanics, CCD also conducts short term courses over the

weekends (6-10 per batch, Rs.650) for the local fishermen to

help them maintain their motors and do small repair jobs 31themselves .

31Ravi P. (2007) – Catalyzing rural jobs through targeted training, India Together-News in proportion, 13th August.

30

telephone sales, customer service, collection, data management along with whole host of back office work. The

access to India's low cost and well educated young workforce ensured cost efficiency for global companies.

Providing employment opportunities to India's urban youth and increasing their purchasing power inadvertently

propelled consumerism and transformed the Indian economic landscape. However, this economic development

has only been realized in the urban centers. Regardless, here we emphasize that the opening up of the service

sector in urban India unlocked the concept that an increase in economic activity and business opportunity

backed by proactive government policy has the potential to attract investment and workforce in order to

perpetuate and accelerate economic growth.

Food processing, agri-business and manufacturing have traditionally been the industries that have been

attributed to generating employment in the hinterlands. However, the service sector, i.e. business process

outsourcing and retail have till now stayed away mainly due to the assumption that low literacy levels and the

lack of a proficient English speaking populace would be a barrier to entry, since these are the minimum criteria

and pre-requisites outlined by global companies to ensure consistency and service quality standards. With the

growth of the Indian domestic market, the need to service domestic customers and businesses is on the rise.

Keeping in mind that Hindi and other regional languages are more widely spoken amongst the domestic

audience, rural BPO units are springing up fast where they can provide a cheap outsourcing option to companies

based in metropolitan cities.

Rural BPOs do not have to be proficient

in their use of the English language or

they can perform a variety of tasks which

do not require direct communication

with clients in the urban areas. Some of

the services include: forms data capture,

document processing, e-mail response

processing, expense processing, native

language help desk and financial book

keeping. Hence, there are tremendous

opportunities for relatively qualified rural

workforce to work in the growing Indian

service sector without having to migrate

to metropolitan cities.

Although the concept of rural BPOs is

still relatively new and will take some

time to be mainstreamed, the thought

of generating service sector employ-

ment in rural India is ideal and makes

good business sense as well from a cost

efficiency perspective. By creating the

means for purchasing power expansion in rural India one can expect a general rise in consumption similar to that

witnessed in urban India during the 1990's, hence the need to expand other industries, i.e. rural retail,

telecommunications, manufacturing etc. where one hopes that not only will migration from the rural hinterlands

slow down, but an interesting trend of urban to rural migration may develop, a trend being realized in China

where rural SEZ development is fuelling the reverse migration of people from urban to rural regions.

Private Sector Intervention - Drishtee Rural BOP

Drishtee is an organization focused on empowering

communities by supporting rural entrepreneurship. The

organization began establishing rural technology kiosks and

enhancing computer literacy in the hinterlands. Sensing the

business potential of its kiosks, Drishtee launched a pilot rural

BPO in Saurath, a small village in the Madhubani district of

Bihar, where they hired candidates, particularly women, from

the surrounding villages. Now the organization is now planning

to leverage and integrate its wide network of over 4,200

technology kiosks across the country to provide BPO services

from geographically distributed centers. Each center will be

owned and operated by a local entrepreneur as part of the

Drishtee franchise and it is estimated that 2 million people’s

lives will be directly impacted by the move. Drishtee has been

trusted by several reputable organizations like the Acumen

Fund, Microsoft and IFC (International Finance Corporation)

where it has been felicitated with several major accolades like

the World Economic Forum’s ‘Tech Pioneer Award’ in 2007.

31

32

Chapter 4: Grounding Migration - The Public

Private Partnership Way

4.1 Public Private Partnerships

4.2 Expanding PPPs for Social Development

A vast majority of migrants and those living below the poverty line are unaware of their constitutional right to

claim social support as citizens of India. The specific government programs and interventions by civil society

highlighted have been established to ground migrations. However these initiatives have not been amalgamated

and unified into one wholesome package; governed by a singular government task force or department which

can be easily accessed by the migrants and those living below the poverty line.

The amalgamation of all government programs aimed at mainstreaming workers into the formal economy and

migrant families will facilitate easier access to legitimate and subsidized shelter, food and other amenities that are

urgently needed. Programs run by different ministries of state and departments often clash, causing overlap and

the underutilization of public funds allocated for their intended purposes.

The PPP model has emerged as the preferred partnership model in India for the development of vital

infrastructure needed for the continual development of the Indian economy. Although the government is still the

main investor in this sector, constrained public finances and the scale of investments require a greater role for the

private sector. New techniques to share risks and gain access to capital market financing are becoming

increasingly important and the ongoing economic reforms have created substantial opportunities for private

investment in infrastructure. Under public private partnerships, the government role remains paramount but it

gets redefined as one of facilitator and enabler, while the private partner plays the role of financier, builder and

the operator of the service or facility (for a specified amount of time). The PPP model aims to combine the skills,

expertise and experience of both the public and private sectors to deliver higher standard of services to

customers or citizens.

In the case of grounding migration, the PPP model needs to expand beyond a synergy between the government

and the private sector. In this case, it is absolutely essential for specialized non governmental organizations and

educational institutions to be brought into the picture to provide critical insights and grassroots knowledge into

government and private sector social development initiatives. Unlike infrastructure development, the

opportunity for the private sector to recover its investments from social development in the PPP format may not

be a quick return on investment, yet there are specific revenue streams that can be developed for greater private

sector participation.

In the specific case of social development, financial institutions and mainstream banks emerge as likely

candidates from the private sector to get involved in terms of financing and mobilizing resources for design,

construction and auditing of development projects. NGOs and not for profits that are already well entrenched in

rural and urban communities can act efficiently as development project managers to ensure the correct

implementation of public/private funds and resources whilst gathering related data, thus providing tangible

insights into the effectiveness of the programs.

33

4.3 Infrastructure Development

32Future investment in urban infrastructure has been estimated at $500 billion in the next five years . That is over

Rs. 25,00,000 crore or about Rs. 5,00,000 crore per annum.

Table 3: Projected investment in infrastructure

Sectors X Plan XI Plan

US $ billion Share (%) US $ billion Share (%)

Electricity (incl. NCE) 72.96 33.49 166.63 32.35

Roads and bridges 36.22 16.63 78.54 15.25

Telecommunications 25.84 11.86 64.61 12.54

Railways (incl. MRTS) 29.91 13.73 65.45 12.71

Irrigation (incl. watershed) 27.88 12.80 64.34 12.49

Water supply and sanitation 16.20 7.44 35.93 6.98

Ports 3.52 1.61 22.00 4.27

Airports 1.69 0.78 7.74 1.50

Storage 1.20 0.55 5.59 1.09

Gas 2.43 1.11 4.21 0.82

Total US $ billion 217.85 515.04

Rs. Crores 871,445 2,575,000

Source: The Planning Commission

While the investment in irrigation may be regarded as directed exclusively at rural infrastructure, there is no

distinction made for other infrastructure investments in terms of urban and rural, or across metros and other

towns of various sizes.

India has approximately 7 lakh villages. Assuming a nominal estimate of Rs 1 crore per village for physical

infrastructure such as roads, sanitation, healthcare and school (not apparently covered in the table above), we

approximate Rs 7 lakh crore per annum for very basic no frills infrastructure development. The neglect of even

this investment in infrastructure in our villages over six decades of independence forms some of the root causes

of migration.

The establishment of highly visible and well publicized state sponsored social services centers located within

reasonable range of urban slums and rural villages will address several distress migrant grounding issues, the

government to collect vital population statistics in real time, therefore supplementing data collected by the

4.4 Ensuring Access and Service Delivery to the Poor

32PM's opening remark at the Business Community Reception in Oman, November 9, 2008.

National Sample Survey and the National census to allow for better contingency and infrastructure planning for

continued increases in migration flow from rural to urban areas.

The formation of a specialized government led joint taskforce that deals directly and specifically with the social

and economic issues related to migration can evolve from the all the government and civil society programs

highlighted in this report. This taskforce can reach out to the

affected masses by educating them on their fundamental rights

and create access channels to the numerous welfare schemes and

policies diligently put forth by the government. It is essential in

this case for a Public, Private and Civil Society partnership to

strongly emerge where each player will have specific roles to

ensure the efficient delivery of social and economic security

knowledge to migrant populations and facilitate their transition

from the informal to the organized economy. There is significant

scope in further developing the Community Development

Societies as laid out under the SJSRY program into focal points for

urban slum and rural communities where they can access

information on all the mentioned government and NGO led

programs that aim to lessen the detrimental affects of distressed

displacement and migration.

Defining roles for the Public, Private and Civil Society partnership

for developing CDSs:

Private Sector:

1) Develop financial tools and products, i.e. micro credit and

micro-enterprise advisory to accelerate and mainstream growth into the organized economy.

2) Technologically enhance the CDS network and other government programs with intranet development, on

line job portals, etc.

3) Contributing in the dissemination of knowledge required for effective industrial and vocational training.

Public Sector:

1) Spearhead the formation of the autonomous and specialized migration and slum development taskforce.

2) Allocate public land, funds, and human resources to establish national CDS networks.

3) Strengthen and integrate all the mentioned social programs into one wholesome urban and rural poverty

alleviation package to ensure efficient delivery of services to the target population.

Civil Society:

1) Conduct grassroots and ground level operations of the CDS networks in order to develop working

relationships with slum representatives and residents.

2) Educate the target population of their fundamental rights and claims to identity and social and economic

security.

3) Conduct impact studies and provide consistent feedback to the Public and Private sectors to ensure correct

allocation of funds and resources.

332008, Hindustan Times 6th January – Agents of Change.

34

Civil society intervention – One man

army

Developing modules and handbooks for

migrants outlining their rights to social

security and access to government

programs are being developed by

ded i ca ted NGOs . V i s hwana th

Vishwakarma, a teacher by profession

has developed his own syllabus

comprising 11 chapters which take

children and adults through a journey to

make them aware of the nation, their

rights, dignity of labor and self

betterment. Vishwakarma has formed an

NGO by the name of Vishwa Kala Manch

in 'order to scale up and organize his 33mission’.

Concluding Remarks

•

•

•

•

There are a range of government led programs and institutions aimed at improving employment and livelihood

options for the urban and rural poor of India. However, the vast majority of these programs are tailored

specifically to the agricultural and food processing sectors, vastly ignoring the prospects in building provisions and

rural capacity for participation in the burgeoning service and retail sector. Furthermore, the integration of the

rural workforce into technical and skilled roles in the manufacturing industries through making programs like the

Jan Shikshan Sansthan more accessible and comprehensive will build the required capacity to provide more

livelihood options to the rural poor, giving them choices before migrating to the urban centers.

Our two pronged approach to grounding migration focus on the following elements:

Provision of basic education

Capacity building through vocational training

Private sector led micro-finance and business advisory for entrepreneurship

Access to welfare and social support

Strengthening the existing CDSs under the SJSRY schemes with public, private and civil society partnerships can

facilitate the parallel implementation in both urban and rural India. With the CDSs operating as the nodal points

and local education centers for the rural and urban poor, all matters relating to livelihoods, education, training and

access to government services will be easily accessed. Should rural populations decide to migrate to urban

centers for alternative livelihoods opportunity, they can consult their rural CDSs to attain information on urban

life. Upon reaching the urban destination, getting registered with the urban CDS will facilitate linkages to

“grounding” services.

A technologically integrated national CDS network will enable the government to track migration and local

population movement in real time, providing up to date population data, therefore enabling the government to

effectively plan urban social and economic infrastructure to accommodate the influx of migrants. Furthermore,

in real time the CDSs can list employment opportunities in their local areas which can be shared over the CDS

network/intranet, presenting up to date information to the target audience. This system has the potential to

replace the inaccurate word of mouth process currently relied upon by rural-urban migrants. Lastly and most

importantly, the integrated national CDS network will allow the efficient and safe transfer of social service

benefits, i.e. ration card registration and recommendations, therefore easing the administrative burden migrants

face upon entering the urban landscape.

Our country's greatest resource has always been its people. Effective stakeholder partnering to invest time,

resources and knowledge into India's education and human capital development will only lead to higher

productivity, micro entrepreneurship and livelihoods generation, paving the path towards effective poverty

alleviation and subsequently sustainable GDP growth. Understanding and planning for migration is a pivotal step

forward in this direction, ensuring the equitable development of urban and rural India.

35

National Institute of Urban Affairs (NIUA) is a premier institute for research, training and information

dissemination in urban development and management. Established in 1976, as an autonomous

body under the Societies Registration Act, the Institute enjoys the support and commitment of the

Ministry of Urban Development, Government of India, State Governments, urban and regional

development authorities and other agencies concerned with urban issues.

YES BANK Ltd., India’s new age private sector Bank, is the outcome of the professional commitment

of top management team, to establish a high quality, customer centric, service driven, private Indian

Bank catering to the “Future Industries of India”.

YES BANK Ltd. has adopted international best practices, the highest standards of service quality and

operational excellence, and offers comprehensive banking and financial solutions to all its valued

customers. A key strength and differentiating feature of YES BANK Ltd. is its knowledge driven

approach to banking and an unprecedented customer experience for its retail and wealth

management clients. YES BANK Ltd. has a vision to champion ‘Responsible Banking’ in India where

the concepts of Corporate Social Responsibility and Sustainability are embedded in the DNA of the

organization and integrated in its Business Focus.

YES BANK Ltd. is steadily building corporate and institutional banking, financial markets, investment

banking, corporate finance, business (SME) and transactional banking, retail banking and wealth

management business lines across the country. The Bank’s constant endeavour is to provide a

delightful banking experience expressed with simplicity, empathy and totality.

About NIUA

About YES BANK

The mission of the American India Foundation (AIF) is to accelerate social and economic change in

India. By mobilizing people and resources in the United States, AIF has invested in over 100 Indian

non-governmental organizations since its inception in 2001. AIF awards grants to education,

livelihood and public health projects in India. AIF also administers two programs: (1) Digital

Equalizer, which bridges the "digital divide" by providing computers, Internet access and training in

under-resourced schools, and (2) Service Corps, which builds the capacity of Indian NGOs by

placing qualified young American pro-fessionals for ten-month fellowship assignments. President

William J. Clinton serves as Honorary Chair of AIF.

Mapped below are select programs directly or indirectly addressing the challenges around migration.

About AIF