Jayanta Das
New Delhi
There is consensus on the fact that rural
development has to be a concerted effort from the government and corporates. While
traditionally industrial houses have come together to work for social causes, there has
been a lack of sustained interest in rural development among corporates. There has also
been islands of rural development spread out over the subcontinent. As a result, we saw a
handful of villages being doled out funds and projects, while the remaining reeled under
poverty.
Typically corporate social welfare
initiatives depended on cash surplus with companies. When the corporate coffers are
overflowing, business enterprises are happy to spend some money. When the cash registers
stop ringing, companies are quick to jam the brakes on any largesse. Harvard Business
Review, in a recent article, said corporate philanthropy just for the sake of charity
would not sustain. It has to be backed by a self-sustaining model that should meet the
capital requirements of rural development. ITC's role in nurturing sustainable rural
partnerships is interesting in this count. The company's rural development projects have
demonstrated that it is possible to harmonise, and even synergise the creation of
shareholder value with a significant social contribution.
One of the most extensive projects in the
company's model has been the e-choupal initiative. Under the initiative, ITC has set up
Internet kiosks in villages. From these kiosks farmers can easily access crop-specific
vernacular websites that ITC has created, garner knowledge relevant to their operations,
and access required services. It is stated that that the project reaches out to 1.2
million farmers in four states, Karnataka, Andhra Pradesh, M.P. and U.P., and covers soya,
wheat, coffee and shrimp.
The next step is to integrate its other
critical rural development activities in the areas of social and farm forestry, Integrated
watershed development, women's empowerment and primary education, with the e-choupal
movement to create an exponentially cascading effect right through the country's rural
economy and society. ITC plans to set up 1,000 supplementary learning centres, and provide
50,000 students with books and uniforms.
Two important conditions for rural
development has been greater empowerment of women and the provision of micro credit.
Women's empowerment schemes, launched by ITC, involve micro credit and skills training to
generate alternative employment opportunities for women.
Working in tandem with NGOs, ITC has
created 400 micro credit groups since 2001. The members of these micro credit groups make
monthly contributions to a savings fund, which in turn can extend loans to members. So far
1,700 women entrepreneurs have evolved as a result of this powerful grassroots programme.
There is no inherent contradiction between
improving competitive context and making a sincere commitment to bettering society.
Corporates should strategise such activity hinging on a model that would also prove
beneficial to both the receiver and the giver. For piecemeal development projects that
lack integration are more a waste of resources. Rural development has to be freshly
perceived as a value-addition process for both the giver and the receiver to make it
actually meaningful.
