A short note on Village Development Board

The Village Development Board (VDB) is a unique scheme of decentralization of planning and development from the grass root level. Since its inception at Ketsapomi village in Phek district of Nagaland in 1976 and its subsequent success, it has gone on to be implemented in all the recognized villages of Nagaland under section 12(12) of the Nagaland Village and Area council Act 1978 and VDB Model Rules act 1980.

The Village Development Board is a mechanism for decentralization of planning and development at the grass root level at its best. It includes all the permanent residents of the village as its members functioning under a management committee with a secretary. Besides women are to constitute 25% of the total of the management committee. This is a novel scheme of development as the locals understand their needs better and can effectively articulate and implement developmental activities better.

The government is implementing several welfare measures for alleviating poverty and to bring about socio-economic change in the lives of the rural poor. And also with a view to ensure grass root level participation of the people in the governance, decentralized institutions have come to play crucial roles. In this aspect the role of Village Development Boards needs special attention. Projects for construction of agri link roads, approach roads, irrigational canals, rain water harvesting etc has come to be implemented for creating infrastructure facilities of the rural areas to bring about progress and development. The primary responsibility for drawing up developmental projects and to prioritize areas for development based on local knowledge falls on the Village Development Boards therefore that makes them a very important institution of the rural villages.

Majority of the rural areas do not have adequate banking infrastructure even though credit mechanism plays an important role in fostering economic development and progress. In fostering economic development capital formation plays a decisive role as it is the catalyst for entrepreneurial activities. Lack of organized credit mechanism and its control lands the poor at the mercy of unscrupulous and opportunistic money lenders. Therefore it is very important that an effective credit control mechanism is set in place in areas without banking facilities. Towards this end the VDB’s can fill the vacuum as effective financial intermediaries with modalities for accountability and resource mobilization. This will also ensure control of the credit mechanism to the grass root level and effective flow and availability of credit to rural poor.

                 It is in these aspects that the role and importance of the Village Development Boards needs to be assessed and analyzed. It is a novel scheme for decentralization and can become an effective tool for change and all round development equally. Thus it is very important that a proper scrutiny of its role is made and loopholes of its functioning’s done so that they become instrument of change as intended. Lack of people's participation and even awareness of the welfare schemes of the government are major hurdles in it becoming real agents of development. Also the limited role in the light of the final authority resting on the government for approval of any developmental projects has come in the way for VDB's exercising as autonomous bodies. They have to act within the funds and schemes as sanctioned by the government.

Facts you should know

-Each Naga village was an independent unit.
-The Naga territory was never united, even the Britishers did not integrate the Naga areas into a single administrative unit.
-Naga polity began and ended in the village.
-Aside from the present state of Nagaland in India Nagas inhibit western Myanmar, parts of Manipur, Arunachal Pradesh, and Assam.
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Market Economy and Rural Develpoment

Market is the key mechanism in determining the success of any commercial venture. But the mere presence of a market will not necessarily ensure to the producers a demanding market if the consumers are poor and cannot meet the asking price. Supply naturally rely on demands and demand comes from the consumers. So long as there are consumers, there will be demand and with demand comes supply. That is how markets operates.
Now the issue to be dealt here is on the kind of a market in operation. Market may be thriving but a producer may not get consumers for his product/products. This is because the consumers are unable to pay the asking price for the product/products though the demand is there. In such a market counterfeit goods at cheaper rates will flood the market.  These goods meet their demand at their purchasing capability. Inability to afford never diminishes the need and black marketeers bank on this aspect of the market and thrive at the cost of genuine products in the market. A serious analysis of this trend will show that it is in the poor and impoverished places that such activities thrives on the demand of poor consumers.
It has been observed that Companies and marketing analyst focus on the large market base in the rural areas. But these teeming customers are poor and cannot afford the goods and services available in the market. Therefore they become prey to black market operatives with their counterfeit goods at a much cheaper rate. Thus not only the companies suffers but it also breeds anti-socials and gives them control of the market.
The onus of responsibility for development of rural areas does not only falls on the shoulders of the government and the poor themselves but is the responsibility of all recognised institutions in a given society.
The companies also with their concept of corporate responsibility invest in creating a huge market base by committing and shouldering the responsibility of rural development but without interfering in the established structure of the rural institutions. Companies needs to understand that a vast market with poor and impoverished customers will do their business no good. Rural areas are potentially a vast market base with the largest consumers but poor consumers are no good customers.
The best option for all is in building up the economy of the rural poor and raise their purchasing power capacity. Rural areas needs to be made producers of agro-based and organic products for the urban consumers (a market mechanism needs to be evolved which cannot be shouldered by the poor). This will convert this teeming poor customers to richer customers. Thus the economic development of the rural areas is not only the basic foundation of a nations growth and development but it is also a boon and an opportunity for individuals and companies to thrive too.
AARON KIKON