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Über dieses Buch

The book examines the pattern of non-farm development at the national level and identifies the correlates and determinants of occupational diversification for the major states. It is one of the few studies that unravels the dynamic processes associated with growth and development at the sub-national level; wherein it elucidates changes in rural employment pattern and its implications for urban growth.
The book fills a crucial gap in current research, notably, an understanding of conditions that enable large villages to assume an urban character. By providing micro-level study of census towns to capture the nuances of the dynamic situation in the countryside, the book would offer useful insights and provide reference material on the social and economic impacts of urban growth, thereby satisfying the needs of students, researchers and practitioners of regional economics, rural development, and sustainable urbanization.
The book is the outcome of financial support received under the Research Programme Scheme of the Indian Council of Social Science Research (ICSSR), New Delhi, India.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract
Economic growth is attributed to the accumulation of human and physical capital and increase in productivity. It is also aided by successful agrarian and rural transformation entailing diversification of employment and incomes. Agricultural development, through the production (backward and forward) and consumption linkages fosters development of non-farm sectors, leading to transition from an agriculturally dominant economy to the “modern” sectors, as proposed by Lewis, Kuznets, Mellor etc. Urbanisation also has an impact on rural economic growth, through the development of rural-urban linkages, migration and concentration of non-farm activities. A persistently large rural population and workforce mark the trajectory of growth in India. Yet the agrarian economy is witnessing many changes; the rural sector after the onset of reforms is undergoing rapid structural changes. Given the binding land constraint, and widening gap in incomes from agricultural and non-agricultural sectors, jobs in non-farm sector have to emerge in large numbers. In this context rural occupational diversification noticed by the Census and various NSS rounds assumes significance. There are a number of factors associated with the identification of small towns, notably non-farm employment growth, declining importance of agriculture, definitional issues etc. The focus of policy continues to be on the larger cities and metropolitan centres, in spite of the fact that a large chunk of the urban population remains unrecognised that leads to problems of service provision, resource generation and governance. Rural transformation process is accompanied by changes in lifestyles, social customs, and may have environmental consequences. This indicates need for timely policy interventions for the growth process to be inclusive and sustainable. The first chapter states the problem and develops a conceptual framework based on a detailed literature review, along with the hypotheses, data sources and methodology.
Niti Mehta

Chapter 2. Occupational Diversification and Rural Transformation

Abstract
This chapter deals with the nature of rural transformation and factors underlying growth in the rural non-farm economy based on literary evidence and analysis of secondary data. The main arguments and issues are highlighted for the pre- and post- 2000 decade. It includes a state level analysis of the changes in different facets of the employment situation and sectoral income patterns. The employment situation in Gujarat is seen in the context of the larger state level scenario. The changing nature of the relationship of employment and income indicators with the level of non-farm employment over time is sought to be established by means of a correlation exercise. An OLS regression model is developed to identify the chief determinants of the structural changes in the rural economy. There is evidence of accelerated urban growth having a trickledown effect on the rural economy. Unlike the experience of the last decade, rapid developments in the urban sector are deepening the rural-urban linkages and rural areas are no more isolated or bounded spaces. Econometric analysis indicates that raising labour productivity and correcting labour market imperfections is crucial to structural transformation of the rural economy. Policies and institutional arrangements are required to increase labour productivity, wages in rural areas and employment opportunities in the rural sector.
Niti Mehta

Chapter 3. Changes in the Employment Scenario in Gujarat

Abstract
Urbanisation in a region is associated with changes in the nature of economic activity in rural areas. The movement of workers from rural to urban areas is reflected in the locational shift of economic activities in addition to the changes in scale of operations. The unorganised activities in the non-agricultural economy are likely to show regional contrasts in performance as these are rooted to the locational resource endowments. Such activities are amorphous in nature and subject to rapid changes that occur due to high mobility or morbidity of smaller units and birth of new units. In Gujarat given the fast pace of urbanisation in the recent years it is possible that several industries are experiencing locational shifts and undergoing changes related to their size. The information available from the Economic Census is used to examine the extent and employment in economic sectors and the temporal changes. The activity wise details of employment from the NSSO do not throw light on size of enterprises, extent of hired workers and other techno-economic characteristics with state and sectoral disaggregation. Such information is available from the EC and the follow up Enterprise Surveys. This chapter traces the overall employment scenario in Gujarat, identifies activities that are dominant repositories of the labour spilling out of the agricultural sector, and the sectoral share in incomes and changes therein. The changes in location of activities across space (rural and urban) and size (OAEs, establishments) are examined. Emerging activities in the non-farm sector in Gujarat fuelling the process of rural transformation are identified based on growth and changes in employment share, and location.
Niti Mehta

Chapter 4. Structural Changes and Implications for Urbanization

Abstract
In order to establish the linkages between non-farm employment growth, urban growth and the changing settlement morphology at the state level, urbanisation process in Gujarat is examined in detail in the fourth chapter. Structural transformation embodies rising rural incomes and growing demand for non-farm services that play a role in bringing about the growth of RNFS. Scholars also argue that structural transformation is a consequence of urban spill over to rural non-farm ‘self-employment’ activities. Small towns are defined as ‘first-tier markets and service providers for rural enterprises and development’ and originate as villages that due to agglomeration economies develop over time as urban centres by virtue of their functions and services. Economic development and urbanization are thus related. This chapter deals with the nature of urbanization process in India with particular reference to Gujarat. With the help of secondary data for the towns of Gujarat, it explores the relationship between the emergence of census towns and the pre-existing metropolitan areas. The constituents of urban growth in Gujarat are decomposed in order to unravel the contribution of census towns and in-situ urbanisation. An attempt is made at identifying the factors that determine the emergence of small/census towns in Gujarat, keeping the district as the enumeration unit. The magnitude of the future development challenge faced due to unrecognized urbanization is ascertained by looking at the status of large villages that are on the threshold of being defined as urban. By relaxing the definition of an urban centre, the challenges of urban growth process are discussed. The last section provides a summary of discussion and highlights issues critical for policy support.
Niti Mehta

Chapter 5. Changing Socio-Economic Profile of Urbanised Villages (Census Towns) in Gujarat

Abstract
The results of the field exploration (15 census towns selected as case studies) unravelling changes taking place in the rural/urban economic structure, migration/commuting trends, social and environmental impacts of urbanisation are elaborated in this chapter. The stress areas particularly where negative externalities are emerging are identified. Cognizance was made of the agro-ecological conditions while selecting the case studies, besides the locational aspects (proximity to cities, spatially diffused location, along an industrial corridor, a transportation route, tribal belt, or agriculturally developed hinterland). The chapter provides a descriptive view of the status of infrastructure development and amenities, economic base and employment, details of agriculture, etc. in the case studies. The nature of linkages with the surrounding regions and the nearby larger urban centres are explored, besides the role of government programmes in the development of the town. The governance mechanism, constraints and the willingness of the residents to become a statutory urban centre are probed. The narrative brought forth underlying features of the rural transformation and urbanisation in the state, that also have relevance to the country at large. In Gujarat role of large scale industrial enterprises in the economic transition of villages is dominant. Government schemes like MNREGA have played a limited role in either the creation of productive assets or in generating rural employment. The census towns nearly everywhere are facing haphazard growth and inadequate amenities. Clearly the variegated latent factors responsible for the emergence of census towns in Gujarat are not dormant and are increasingly becoming dynamic in explaining the towns’ growth and change in character. The residents are apprehensive about negative fallouts of a changed statutory status notably, rise in corruption, increasing insensitivity of the municipal machinery to local issues and enhancement of social evils. Towns with a substantial revenue base did not desire a statutory status for fear of losing out on resources.
Niti Mehta

Chapter 6. Census Towns in Gujarat: Economic, Social and Environmental Effects of Rural Transformation

Abstract
The Census of India presents a rich data source regarding demography, workforce and amenities for the towns. However, primary survey was conducted of randomly selected households along with focus group discussions in the selected census towns to ascertain the social impacts of urbanism and changes in lifestyles and consumption patterns. In the sixth chapter the data gathered was tabulated to draw general inferences and identify peculiarities, if any. Tabulation highlighted the general features of the case studies, including the changes in economic activities and nature of dominant non-farm activity. Examination of the commuting and migration patterns established linkages of the town, and highlighted the economic and employment constraints. The impact of urbanism on changing lifestyles, consumption expenditure (food, non-food, education and health) and social impacts were quite revealing. Lastly, using information collected from field explorations and discussion with residents, the negative externalities of the urbanisation and rural transformation process on environment were ascertained. The concluding section sought to identify the stress areas of the transformation process in the case studies, as a prelude to making suggestions for policy.
Niti Mehta

Chapter 7. Conclusion and Policy Suggestions

Abstract
The last chapter highlights the findings of the analysis of secondary data and field explorations in the following sections: employment patterns and sectoral growth, structural changes and urban growth, impacts of rural transformation process and the need for policy support. Suggestions are made for an inclusive and sustainable rural transformation.
Niti Mehta

Backmatter

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