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Bibek Debroy: Call it disparity, not rural-urban divide
Well-known economist Bibek Debroy shares his views on rural and urban issues in an exclusive interview with merinews.
 
Thu, Nov 30, 2006 00:00:00 IST
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BIBEK DEBROY, A ready Indian beckoner of economy, shares his views on urban and rural issues in this interview with merinews. Debroy, who served as a director of Rajiv Gandhi Institute for Contemporary Studies and then as secretary-general at the PHD Chamber of Commerce, is a Trinity alumnus. Excerpts from the interview:
 
Why is it that the rural-urban divide in India continues despite a high growth rate (the urban regular wage earner earns Rs 194 a day while the rural wage earner earns Rs 134 a day, according to 2004-05 figures)? It’s also found that the wage gap is more pronounced among graduates?
I disagree that terms urban, rural or urban-rural divide exist. There is no such thing as urban-rural divide. Seven per cent of Delhi is rural. The so-called divide or gap can hinge on various other factors like education, gender, etc, but not what you call urban-rural divide. Yes, there are various disparities at various levels in India based on geography.   
 
According to the economic census, released early this year, rural India is way ahead of its urban counterpart in terms of employment growth in enterprises. Even then people are moving to the already overflowing cities. What does the trend show?
I would remind you that it is not about rural or urban. The issue is that employment growth has not taken place in a lot of parts of India since 1990. It is because employment means agriculture in villages. And as such there have been no agricultural reforms here. So the lesser we say about the employment growth in these parts of India the better it is. There are no alternative job opportunities in these places. As far as people running away to overflowing cities is concerned, these are the places where they get all the benefits, all the subsidies and infrastructure so why wouldn’t they.
 
What solutions do you see for the increasing disparity in educational attainment by urban-rural location divide in India?
See this is what I am trying to explain. Disparity in education is one of the means to bring out the divide in the country. But not urban Vs rural. I can definitely say that a huge section of populace in various areas of West Bengal, Orissa, Bihar and eastern parts of Uttar Pradesh remains uneducated. The penetration of literacy propaganda is just not there. 
 
What are the reasons for minimal and ineffective public investment made in rural areas?
The government has undergone fiscal crunch and so have the state governments. This resulted in very less investment in these places. I would call them marginalized. The disparity in terms of road, transport, telecommunications, and lack of non-farm based employment leads to negligible public or private investment in these villages or small towns. Whatever public expenditure has happened is on larger farmers and on agriculturists.     
 
What all reforms are needed in our development-oriented policies and actions?
I have a long list. Increase in public investment, decentralisation, free land markets, free insurances, removing unnecessary controls on markets, these are some of the needed reforms. Agrarian reforms have happened since so many years. It’s high time.
 
What is PURA or Providing Urban Amenities to Rural Areas?
PURA was a government initiative towards the enlistment of the marginalized demography. Bharat Nirman, a four-year business plan for providing basic infrastructure in rural areas, has overtaken it.
 
India has a rural population of 742 million while it has 285 million urban citizens, which is not even half of the rural strength. Yet it is commonly noticed that majority of economic reforms are urban-centric?
What is urban-centric? I disagree with this. But definitely the reforms don’t seem to curb geographical depravation and perfectly suit areas where consumption growth is already high. The reforms have happened in some geographical parts of India, but not all.

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