Rural Excellence

Rx for Rural Excellence: Adapting Urban Development Models for Rural Development
Som Karamchetty 10816 Terrier Court Columbia, MD 21044, USA November 2004
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They said
"Can India become a Developed Country?"
"We believe, moreover, that while aggregate indicators are important, It does not make sense to achieve a 'developed' status without a major and continuing upliftment of all Indians who exist today and many more millions will be added in the years to come.
APJ Abdul Kalam, with YS Rajan, "India 2020: A Vision for the New Millennium," Penguin Books, 1998.
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and Charged
When discussing, "Towards the Vision, the two Indias, and While enumerating steps to be taken in "Realizing the Vision," Dr. Kalam charges punyatmas, punyadhikaris, and punyanetas [1] to develop a strategic plan and implement it.
punyatmas, punyadhikaris, and punyanetas are Sanskrit words meaning people with compassionate souls, benevolent administrators, and kind leaders respectively.
[1]
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Starting Point
The President's exhortations provide a good starting point for my discussions in this presentation.
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Follow the Lead
After presenting his "myriad impressions of India, Sam Pitroda [1] presents a "ten-point program. I will focus my presentation around a number of those points; especially, his point "5. Fulfillment of basic human needs. I will use Abraham Maslow's Need Hierarchy [2] as the framework for my discussion.
[1] [2]
Sam Pitroda, "Vision, Values & Velocity," SiliconIndia, Newark, CA, 2001. I will use the term Hierarchy or Ladder, short for Maslow's Need Hierarchy or Maslow's Need Ladder in this presentation.
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The Difference
Western Developed Countries are essentially urban based; - Urban development is national development. Most Developing Countries, especially, India and China are rural based; - Urban development is well short of national development - Rural development is almost national development.
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Outline
Current Situation in Rural Areas Causes for Progress of Urban Areas Actionable Concepts Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusions
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Problem
Rural development is lacking in developing countries Some defining characteristics of rural communities are: Low incomes Pervasive poverty, hunger, and disease Inadequate housing Illiteracy Primitive technical skills Marginal crops and poor agricultural inputs Poor infrastructure and facilities 1 Roads Potable water Electricity Sewers Healthcare Schools Lack of Leadership and Management Skills Inattention to Planning
President A.P.J. Kalams PURA scheme addresses these needs on the edges. http://presidentofindia.nic.in/scripts/sllatest1.jsp?id=217
1
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Background
Developing Countries live in poverty while Developed Countries live in relative comfort. Even in Developing Countries, rural communities live in abject poverty, while the urban middle and upper classes live in relative comfort. World Bank, International Monetary Fund and other developmental and philanthropic organizations have undertaken some efforts to alleviate the suffering in the Developing Countries. Globalization efforts have resulted in economic developments in certain urban centers of the Developing Countries. But, by and large, rural communities in Developing Countries have not been effected positively by these initiatives. There is a need to analyze what factors contribute to the economic welfare of the Developed countries and Urban communities of the Developing Countries. Such an analysis may inspire us to develop concepts for rural development. This presentation is an effort in that direction.
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Similarities in the Divides

There is a strong similarity between the divides which separate the developed and the developing countries on the one hand and the urban and rural communities in the developing countries on the other.
Developed Countries Developing Countries Developing Countries Urban
Developing Countries Rural
The divide is along all the Needs on the Maslows Need Ladder:
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Maslows Need Ladder

Abraham Maslow [1] described human needs.
SelfActualization Esteem/ Recognition Social/Affiliation
Maslows Need Ladder
Safety/Security Physiological
Rural communities in developing countries have their basic needs still unsatisfied.
Frank G. Goble, The Third Force: The Psychology of Abraham Maslow, 1970, 2004, Jefferson Center for Character Education, Published by Maurice Bassett Publishing.
[1]
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Outline
Current Situation in Rural Areas Causes for Progress of Urban Areas Actionable Concepts Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusion
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Attributes of Developed Countries

The following attributes cause the satisfaction of human needs in Developed countries:

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Spirit of competition and meritocracy Free and democratic enterprises Institutions of higher learning imparting knowledge and education Institutions providing skills and training Science and technology academies Educational and research institutions Financial and economic systems enhancing wealth and prosperity all round Vibrant industry and manufacturing capability Entertainment and craft centers Art, literary, and cultural centers Sports and athletics infrastructure Parks and recreation facilities Societies, clubs, and organizations Sanitary, medical, and healthcare facilities Strong and disciplined military and police forces Law and order protecting property, person, and institutions Sound infrastructure (roads, water, sewer, communications, and power) Comfortable homes and communities Agricultural infrastructures and inputs leading to bountiful harvests
Progress of Urban Areas in Developing Countries

Urban areas in Developing countries are progressing in the same attributes.

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Spirit of competition and meritocracy Free and democratic enterprises Institutions of higher learning imparting knowledge and education Institutions providing skills and training Science and technology academies Educational and research institutions Financial and economic systems enhancing wealth and prosperity Vibrant industry and manufacturing capability Entertainment and craft centers Art and cultural centers Sports and athletics infrastructure Parks and recreation facilities Societies, clubs, and organizations Sanitary, medical, and healthcare facilities Strong and disciplined military and police forces Law and order protecting property and person Sound infrastructure (roads, water, sewer, and power) Comfortable homes and communities Agricultural imports
Mechanisms Responsible for Progress of Urban Areas in Developing Countries

Competition through globalization and free markets Democratization of enterprises Technical and economic cooperation between developed and developing countries Academic cooperation between institutions of higher learning Aid to transfer technology and skills Financial and economic aid World Bank, International Monetary Fund (IMF), & Grants and cheap loans Offshore outsourcing Setting up manufacturing industry in developing countries Philanthropic support to combat diseases Preferential trade tariffs and quotas Exchanges of cultural and sports teams Aid for preservation of parks and recreation facilities Aid for infrastructure improvement Training for security and military forces Assistance in human rights issues Assistance and grants to build infrastructure (roads, water, sewer, communications, and power) Aid for green revolution
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Key Factors in the Strategy of Developing Countries
Democratization of institutions Leadership development Formation of cooperative teams Utilization of free market competition and globalization Entrepreneurship and micro-entrepreneurship Enhancing affordability through indigenous development of skills and knowledge Optimal deployment of financial and natural resources Deployment of best methods for organizing and leading enterprises Development of core competencies Focus on competitive sectors of production International cooperation to gain complementary skills Employment of competent managers to lead and run enterprises Complementation of law and order structures with technology
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Lessons for Rural Areas in Developing Countries

What are the lessons for rural areas in Developing Countries from the identification of key factors in the strategy of urban areas in Developing Countries? Development of and focus on core competencies Enhancing affordability and profitability through Development of local educated and skilled talents Formation of cooperative teams to improve productivity Reversing brain drain to urban areas Outsourcing to rural areas Focus on competitive sectors of production Optimal deployment of financial and natural resources Local leadership development Deployment of technology to gain education, knowledge, and skills Cooperation in developing and deploying management methods
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Outline
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Recap of the Situation with Rural Areas vis a vis Urban Areas
Rural areas cannot afford to pay for products and services from Urban areas. Just as Developing countries could not afford the products and services from Developed countries Lacking emigration barriers, rural people try to migrate to urban areas in search of jobs leading to urban slums, but no relief to rural people or areas. This is similar to the migration of cheap labor to developed countries Lacking trade barriers, rural products get shipped to urban areas creating shortages in rural areas. Shipping of raw materials to urban areas deprives rural areas of potential for value added Lacking governmental or organized protection, international aid and subsidized developmental loans from organizations like the World Bank do not reach rural areas. Urban overheads are too onerous for rural development.
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New Development Paradigms

In the last couple of decades, several new paradigms have emerged, which helped Urban Areas in Developing Countries (or New Economies). Globalization Reverse brain-drain Outsourcing Core competencies Strategic partnering (reliance) Market orientation of enterprises Knowledge workers and literacy Return on Information (ROI) Attracting investment Management methods (e.g. BPR, Six Sigma, etc.)
We will examine how to translate these paradigms for application to rural development.
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Imperatives for Rural Areas (1 of 5)

Compulsory schooling for children Eliminate rural illiteracy, provide better jobs for the next generation of adults Rural parents should refrain from placing their children in jobs Mothers should not carry infants on their backs while working in the fields Develop cooperative child minding and educating centers in villages Teach professional skills to youth Rural people cannot pay for urban products and services Develop their own pool of skills and knowledge Invest in their own people and keep them in villages Investments can be in the form of grants, and loans, and college admissions in return for rural service Reserve rural college admissions for rural service at rural salaries Rural professions: civil construction, water supply, sanitation, public health, medical, veterinary, and agriculture Rural people have to initiate, manage, and man rural enterprises.
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Develop micro-entrepreneurs in rural areas Business processes Technical (functional) processes The business processes are common to thousands of similar businesses across several (rural) geographic locations in a Developing Country. These processes should be analyzed, developed, standardized, and adopted in each and every rural enterprise.
National Cooperative Corporation Franchisor
Local Managers/operators Local Managers/operators Local Managers/operators Local Managers/operators Local Managers/operators Capital Business model Technology Manufacturing Training
Franchisees
Micro-Capital Local Ownership Management Skills Labor
Example businesses: Farming Textiles Garments Dairy Food products Leather products Arts, crafts Tourism
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Develop literacy-independent learning aids Educational enterprises require a new model Technology supplemented by rural manpower Affordable to rural people Embrace essential knowledge to climb out of centuries of poverty Overcome the lack of competent teachers in rural areas Capture knowledge and lessons through Video, TV, VCR Computer & Communication technologies Arrange class schedules (annual and daily) and curricula To acquire practical job skills in parallel To suit their objectives To fulfill needs
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Rural enterprises should be market oriented and not merely creators of relief work. Study the demand for products and services local urban global markets Identify areas of work or products that can be competitively sourced to rural areas Identify synergistic value additions to rural products and services
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Apply business practices Invest in businesses that offer the greatest return (ROI) consistent with risk Locate businesses in Urban or Rural areas based on ROI. Promote investment opportunities with World Bank Governments Private banks Private investors Social investors Combine (cooperate and franchise) resources and requirements To attain critical mass and economies of scale Attract the attention of the big lenders, suppliers, and customers
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Outline
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Markets for Rural Businesses

In general, three types of markets exist for Rural enterprises: Rural needs Urban needs International needs
Examples: Rural banks Water works Schools Medical facilities Logistics Administrative services
Examples: Processed foods Arts Crafts Tourist services

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Examples: Plant supplies Processed foods Crafts Components (industrial)
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Rural Value Added Products and Services Example 1
Supply Processed foods to urban customers Outsource food processing from urban food establishments Direct labor Byproduct for animal feed Waste processing into compost Benefits Cost savings Prevention of rural worker migration to urban slums Reduction of urban municipal wastes
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Rural Value Added Products and Services Example 2

Rural Nurseries for Urban Renewal
Rural businesses can develop plants and concrete pots and deliver them to Urban customers. Rural businesses may have contracts with highways departments to plant and maintain roadside tree pots, which will serve as barriers and also beautify the highways.
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Value Added Products and Services Example 3

Rural Nurseries for Urban Beautification A Rural business may develop potted plants for urban buildings and dwellings. Plants in pots are renewed and delivered to urban locations seasonally or periodically.
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Value Added Products and Services
Other Vocations Tailoring clothes Laundering & dry cleaning Equipment repair shops Sports & athletics Arts & Crafts Small businesses
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Outline
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The Strategy
Identify the needs Develop marketable businesses Invest Lead
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Types of Businesses for the Rural Market
SelfMaslows Need Actualization Ladder
Fine arts Literature
Esteem/ Recognition
Folk arts Folk music Social clubs Franchise businesses Education Athletics Entertainment Sanitation Safety Security Healthcare Agriculture Water Housing SomeTechnologies LLC 34
Social/Affiliation
Safety/Security
Physiological
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Needs & Strategy
Rural communities have to develop People Skills & knowledge Technologies Education Economies of scale Cost competitiveness (production) Leadership & management
Physiological Needs
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Needs & Strategy

Security and Safety Needs
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Needs & Strategy
Rural communities have to develop People Skills & knowledge Technologies Education Economies of scale Cost competitiveness (production) Leadership & management Social/Affiliation Needs
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Needs & Strategy
Esteem Needs
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Needs & Strategy
Self Actualization Needs
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Rural Needs, Businesses, & Markets

Fine arts Literature
Maslows Need Ladder
SelfActualization
Esteem/ Recognition
Folk arts Folk music Social clubs Franchise businesses Education Athletics Entertainment Sanitation Safety Security Healthcare Agriculture Water Housing SomeTechnologies LLC 40
Social/Affiliation
Safety/Security
Physiological
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Outline
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The Means or Divides
The divide between the Developed and Developing Countries Geographic & Political The divide between the urban and rural people in a Developing Country Economics Knowledge & skills Leadership & management
Those are the means for development.
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Finance for Rural Development

Societies need funds to Apply technologies at every level Equip people with Education Skills Training Provide material and energy resources
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Recycling Funds
Taxes Grants Loans
Investment
Education/ Training
Repaid Loans Philanthropy
Give back
Loans and Give Backs to Students Makes for a Self-sustaining System.
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Advanced Technologies for Rural Development
Agriculture For 700 Million People in Rural areas Food processing Water & sanitation Schools Home building Colleges Healthcare Engineering Vocational training Education Skill development Communications Computers Apprenticeships Information TV, VCR, audio, and Video On-Line Instructional technology (for training in skills) Web for knowledge transfer On-line business process management
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Leadership for Rural Development
Political Administrative Legal Business Ethics Imagineering Visioneering
Companies Branches Cooperatives Franchises Sole proprietors
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Outline
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Implementation
Maslows Hierarchical Revolutions
Undertake a 40 to 50 year plan Champion the plan Market the plan Obtain commitments Recycle resources Get the tipping point 1 effect
Entrepreneurship & Franchising
Technology for Knowledge Education
Malcolm Gladwell, The Tipping Point, Little, Brown, and Company, Boston, 1999.
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Outline
Current Situation in Rural Areas Causes for Progress of Urban Areas Actionable Concepts Markets for Rural Businesses Strategy for Progress: Needs Strategy for Progress: Means Strategy for Progress: Implementation Conclusions
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Conclusions
Great upside to the strategy Economic development and human needs are in sync Commitment and sacrifice are necessary Rural Excellence is a highly possible vision Leadership and technology are the keys Global peace and harmony are the results
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The End
Rural Excellence
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Rural Excellence

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Rx for Rural Excellence: Adapting Urban Development Models for Rural Development

"Can India become a Developed Country?"

Follow the Lead

Similarities in the Divides

Developed Countries Developing Countries Developing Countries Urban

Developing Countries Rural

Maslows Need Ladder

SelfActualization Esteem/ Recognition Social/Affiliation

Maslows Need Ladder

Attributes of Developed Countries

Progress of Urban Areas in Developing Countries

Mechanisms Responsible for Progress of Urban Areas in Developing Countries

Key Factors in the Strategy of Developing Countries

Lessons for Rural Areas in Developing Countries

New Development Paradigms

Imperatives for Rural Areas (1 of 5)

Imperatives for Rural Areas (2 of 5)

Imperatives for Rural Areas (3 of 5)

Imperatives for Rural Areas (4 of 5)

Imperatives for Rural Areas (5 of 5)

Markets for Rural Businesses

Examples: Processed foods Arts Crafts Tourist services

Examples: Plant supplies Processed foods Crafts Components (industrial)

Rural Value Added Products and Services Example 1

Rural Value Added Products and Services Example 2

Value Added Products and Services Example 3

Value Added Products and Services

Identify the needs Develop marketable businesses Invest Lead

Types of Businesses for the Rural Market

SelfMaslows Need Actualization Ladder

Fine arts Literature

Needs & Strategy

Needs & Strategy

Security and Safety Needs

Needs & Strategy

Needs & Strategy

Needs & Strategy

Self Actualization Needs

Rural Needs, Businesses, & Markets

Maslows Need Ladder

The Means or Divides

Those are the means for development.

Finance for Rural Development

Loans and Give Backs to Students Makes for a Self-sustaining System.

Advanced Technologies for Rural Development

Leadership for Rural Development

Political Administrative Legal Business Ethics Imagineering Visioneering

Companies Branches Cooperatives Franchises Sole proprietors

Maslows Hierarchical Revolutions

Entrepreneurship & Franchising

Technology for Knowledge Education

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