conclusion of rural areas essay

Essay on Development of Rural Areas

Students are often asked to write an essay on Development of Rural Areas in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Development of Rural Areas

Introduction.

Rural areas are essential parts of a country’s landscape, often home to agriculture, forestry, and traditional industries. However, they can lack development compared to urban areas.

Importance of Rural Development

Rural development is vital for a balanced and inclusive growth. It improves living standards and reduces poverty. It also ensures food security by boosting agriculture.

Ways to Develop Rural Areas

Rural areas can be developed through education, healthcare facilities, infrastructure, and technology. Providing quality education and healthcare can improve the quality of life.

In conclusion, rural development is crucial for a country’s overall progress. It brings prosperity and reduces inequalities.

250 Words Essay on Development of Rural Areas

Rural development signifies the actions and initiatives taken to improve the standard of living in non-urban neighborhoods, remote villages, and the countryside. It is pivotal for the balanced and inclusive growth of a nation.

The Need for Rural Development

Rural areas, home to a significant portion of the world’s population, often lag in terms of infrastructure, healthcare, education, and economic opportunities. This urban-rural divide can lead to social inequity, economic disparity, and political instability. Hence, rural development is a pressing necessity.

Strategies for Rural Development

The development of rural areas should be multi-dimensional, encompassing various sectors. Firstly, infrastructure development is crucial. This includes building roads, providing electricity, and improving water supply. Secondly, the agricultural sector should be modernized and diversified to increase productivity and income.

Education and Healthcare

Education and healthcare are two pillars for the development of any society. Rural areas often lack quality educational institutions and healthcare facilities. Investment in these sectors can lead to a healthier and more educated rural populace, thus fostering development.

Economic Opportunities

Creating economic opportunities is another significant aspect of rural development. This can be achieved through promoting small-scale industries, agro-based enterprises, and providing vocational training to the rural workforce.

In conclusion, rural development is a complex, multifaceted process that requires a comprehensive and integrated approach. It is not just about economic growth, but also about enhancing the quality of life for rural inhabitants. Therefore, it is essential for the inclusive and balanced growth of a country.

500 Words Essay on Development of Rural Areas

Rural development is a critical component of comprehensive and inclusive growth of a nation. It involves enhancing the quality of life and economic well-being of people residing in rural areas. Despite the rapid urbanization, a significant portion of the global population still resides in rural regions, making their development an area of prime importance.

Rural areas often lag behind urban centers in terms of infrastructure, healthcare, education, and economic opportunities. This disparity can lead to a host of issues, including poverty, migration, and social unrest. Therefore, rural development is necessary to ensure balanced growth, social equity, and stability.

Key Aspects of Rural Development

Rural development is a holistic process and involves multiple dimensions. It is not solely about economic progress but also encompasses social, cultural, and environmental aspects.

Economic Development

Economic development in rural areas primarily involves the promotion of agriculture and allied activities. It includes modernizing farming techniques, promoting agro-based industries, and ensuring fair prices for agricultural produce. Additionally, diversifying the rural economy through the promotion of non-farm activities like handicrafts, tourism, and services sector can provide alternate income sources and reduce dependence on agriculture.

Social Development

Social development aims at improving the quality of life in rural areas. It involves enhancing education and healthcare facilities, providing clean drinking water and sanitation, and ensuring access to electricity and good quality housing. Empowering women and marginalized sections of society is also a crucial aspect of social development.

Environmental Sustainability

Rural development should also focus on environmental sustainability. It involves promoting sustainable farming practices, conservation of natural resources, and use of renewable energy sources. This not only protects the environment but also ensures the long-term viability of rural economies.

Challenges in Rural Development

Rural development faces several challenges including inadequate infrastructure, lack of quality education and healthcare, and limited access to credit and markets. Additionally, social issues like caste-based discrimination, gender inequality, and lack of awareness about government schemes often hinder rural development.

Rural development is a complex and multidimensional process. It requires coordinated efforts from the government, non-governmental organizations, and the rural community. While significant progress has been made in several areas, much work remains to be done. The aim should be to create self-reliant and sustainable rural communities that can contribute effectively to the overall growth and prosperity of the nation.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

• Essay on Development
• Essay on Determination
• Essay on Destiny

Apart from these, you can look at all the essays by clicking here .

Happy studying!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Regional Development in Rural Areas pp 105–110 Cite as

Conclusion. Rural Development in the 21st Century

• André Torre 3 &
• Frédéric Wallet 3  
• First Online: 15 May 2016

810 Accesses

Part of the book series: SpringerBriefs in Regional Science ((BRIEFSREGION))

The conclusion operates a return on the objective of this work, which was to provide elements of understanding on the dynamics of rural and peri-urban territories, combining regional science and works more explicitly dedicated to rural development and the policy relating thereto. The need to take fully into account the territorial dimension—i.e. a fine knowledge of identity, governance, organizational aspects and local resources, etc.—is emphasized as a central element for understanding the diversity of trajectories and patterns of rural and peri-urban areas, and implement appropriate public policies. But think future patterns of development rural areas also means paying attention to adaptation and resilience processes, energy transition and climate change issues, and new initiatives—often marked by technology and collaborative dimensions—that bloom everywhere on the planet. The development and implementation of experimental, interdisciplinary and participatory research devices is in this context a crucial need.

• Experimentation
• Participatory research
• Public policies
• Regional science
• Rural development
• Territorial dimension

This is a preview of subscription content, log in via an institution .

Buying options

• Available as PDF
• Read on any device
• Instant download
• Own it forever
• Available as EPUB and PDF
• Compact, lightweight edition
• Dispatched in 3 to 5 business days
• Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Frenken, K., Van Oort, F., & Verburg, T. (2007). Related variety, unrelated variety and regional economic growth. Regional Studies, 41 (5), 685–697.

Article   Google Scholar  

Torre, A., & Wallet, F. (Eds.). (2014). Regional development and proximity relations . London: Edward Elgard Publishing.

Google Scholar  

van der Ploeg, J. D., Renting, H., Brunori, G., Knicken, K., Mannion, J., Marsden, T., et al. (2000). Rural development: From practices and policies towards theory. Sociologia Ruralis, 40 (4), 391–408.

Download references

Author information

Authors and affiliations.

Paris, France

André Torre & Frédéric Wallet

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to André Torre .

Rights and permissions

Reprints and permissions

Copyright information

© 2016 The Author(s)

About this chapter

Cite this chapter.

Torre, A., Wallet, F. (2016). Conclusion. Rural Development in the 21st Century. In: Regional Development in Rural Areas. SpringerBriefs in Regional Science. Springer, Cham. https://doi.org/10.1007/978-3-319-02372-4_8

Download citation

DOI : https://doi.org/10.1007/978-3-319-02372-4_8

Published : 15 May 2016

Publisher Name : Springer, Cham

Print ISBN : 978-3-319-02371-7

Online ISBN : 978-3-319-02372-4

eBook Packages : Economics and Finance Economics and Finance (R0)

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Publish with us

Policies and ethics

• Find a journal
• Track your research

Urban Versus Rural Areas: Compare and Contrast

Introduction, comparison of life in urban and rural areas, reference list.

There has been series of questions on the quality of having a superior or more favourable living condition or position between the rural and urban existence. However, High social status is the most important cardinal concern in the relation based on similarities and differences between rural versus urban course of human events and activities.

Despite the statement of facts and reasons used to support whichever locality as conducive and a better place to reside. Although, having qualities or abilities that merit recognition in some way there is comparison between the similarity and difference of both the urban and rural existence, and of great significance or value are the aspects of choosing or selecting the most suitable locality, noticeable heterogeneity, the state of being free of physical or psychological disease, illness, or malfunction, and the state of being employed or having a job manipulates both aspects of the comparison and even though, there is a mutual great advantages of living condition in both the rural and urban area, moreover, they both have an apparent same quantity, value, or measured amount of negative aspects.

In general, both the rural and urban areas are similar in status with respect to the relations between people or groups relations but hold opposing views in the issues of choice and multiplicity.

Consequently, the life in urban areas has quite a number of optimistic in addition to the pessimistic issues which provide a particular quality or character of the standard of living.

In spite of this, the life in the urban area creates avenue for diversity and choice compared to that of the rural area, for the fact that in the urban area there is wider choice variety on the standard of living and opportunities to explore from various options open to people.

For example, in the urban area, there is various choice of food which could show the way to general better health because of the assortment in diet.

In addition, the inhabitants of the urban areas benefit from the favourable possibility due to a combination of circumstances of accommodating various cultural or social events because of the diversity of choice compared to their rural counterparts. Consequently, they are more civilized and exposed to different culture and ethnicity within ethnic group.

In spite of this, there are various and wide choice of educational institutions, both in the private and public school district in the urban area compared to the rural area and this tend to or result in the possibility of an enhanced schooling.

Moreover, it is worthwhile noting that there is choice of employment alternative prospect due to the large number of businesses or establishments in the urban areas than the rural areas (Kottak, 2006, p.37). Besides this, the urban dwellers have more improved and equipped health care sectors and there is easy access to them compared to the rural dwellers.

Accordingly, human creativity Shine intensely in the urban areas more than the rural area (Hall, 1998, p.15). For a span of 1000 years, the urban areas have been the place where some particular activity is concentrated and the choice of business-related, technological progress, social relationships involving authority or power and ethnical life, thereby inducing into action by using its charm upon the whole country and areas.

The incontrovertible and advancement in severity characteristic to be considered of urban area compelling recognition by economic expert and historiographers contrast with the negative situation and the effect that it has on people and public health. Partly this evolves from a latent or potential state from the iconic point located with respect to surface features of the urban region on the ground that makes the urban area comprehensible by describing the relevant structure, operation or circumstances of poor health.

Research was conducted in Canada and showed that, “populations in the rural showed poorer health than the others in urban, both in general health gauges (i.e. infant mortality, standardized mortality, life expectancy at birth) and also in factors like motor vehicle accidents, being overweight not withstanding” (Mollenkopf, 2005, p.65). Less dependence on vehicles in urban areas may possibly be the consequence of as well as greater importance on walking. However, there are a several drawbacks to living in urban also.

Determining how urbanization affects poverty is essential and coloured by the reality that about one third of the people living in urban areas reside in slums (Sclar et al, 2005, p.901). These impoverished areas are typified by the poor physical and mental health conditions of their inhabitants and by inadequate services. Although some gains have been made on the public health front in urban areas, the benefits are clearly not universal, with urban slums matching some rural mortality and morbidity rates (Sclar et al, 2005, p.902).

However, as cities make good on their promise of better socioeconomic conditions, they can contribute to a downturn in the epidemic. Today, cities generally account for a much larger share of national economic production and have much greater potential than rural areas for reducing poverty and fulfilling aspirations (UNFPA, 2007)

In addition, the absence of daily stress experienced in cities from peripheral factors is a vital issue ((Mollenkopf, 2005, p.70). In as much as the rural area has minimal number of grocery stores and recreation centres, most people in the rural areas have vast lands which are of immense importance and usage. Urban areas theoretically offer more opportunities to deal with a changing population composition, but these would have to be materialized, in the practice, through better policies on a wide front.

Increases in the proportion of the rural population composed of older people have raised concerns about their wellbeing. On the one hand, rural dwellers in developing countries tend to be more vulnerable than the urban counterpart because of their higher incidence of poverty, greater transportation problems, and lack of access to social services and infrastructure (Montgomery, McGranahan, and Martine, 2008, p.262).

Living in rural areas however has its negative aspects too. Unlike urban areas, residents in the rural areas have no vast opportunities of choosing from different employment opportunities for they are not as many in the rural areas as they are in the urban setting. In other words, if there is any statement to be made, rural living has the best worth of life. There is a better ability of hooking up with people and the landscape. Although, the living standard of both the urban and rural area is comparable because they both entails an elevated level of adoption of the behaviour patterns of the surrounding culture. The inky difference is when it comes to the accessibility of choices and diversity, in particular when fundamental factors (healthcare, education, and employment options) are concerned.

Hall, P . (1998). Cities in Civilization – Culture, Innovation, and Urban Order. London: Weidenfeld & Nicholson.

Kottak, C., P. (2006). Anthropology : the exploration of human diversity. Columbus, OH: McGraw Hill Higher Education.

Mollenkopf, H. (2005). Enhancing mobility in later life. Amsterdam, The Netherland: IOS Press.

Montgomery, M., McGranahan, G., and Martine, G. (2008). The new global frontier: urbanization, poverty and environment in the 21st century. London: IIED.

Scalar, E. D., Garau, P. and Carolini, G. (2005). ‘The 21st century health challenge of slums and cities’ , The Lancet. 365, no 9462. 901-902.

UNFPA (2007). The State of the World’s Population 2007: Unleashing the Potential of Urban Growth. New York, NY: UNFPA.

Cite this paper

• Chicago (N-B)
• Chicago (A-D)

StudyCorgi. (2021, November 28). Urban Versus Rural Areas: Compare and Contrast. https://studycorgi.com/urban-versus-rural-areas-compare-and-contrast/

"Urban Versus Rural Areas: Compare and Contrast." StudyCorgi , 28 Nov. 2021, studycorgi.com/urban-versus-rural-areas-compare-and-contrast/.

StudyCorgi . (2021) 'Urban Versus Rural Areas: Compare and Contrast'. 28 November.

1. StudyCorgi . "Urban Versus Rural Areas: Compare and Contrast." November 28, 2021. https://studycorgi.com/urban-versus-rural-areas-compare-and-contrast/.

Bibliography

StudyCorgi . "Urban Versus Rural Areas: Compare and Contrast." November 28, 2021. https://studycorgi.com/urban-versus-rural-areas-compare-and-contrast/.

StudyCorgi . 2021. "Urban Versus Rural Areas: Compare and Contrast." November 28, 2021. https://studycorgi.com/urban-versus-rural-areas-compare-and-contrast/.

This paper, “Urban Versus Rural Areas: Compare and Contrast”, was written and voluntary submitted to our free essay database by a straight-A student. Please ensure you properly reference the paper if you're using it to write your assignment.

Before publication, the StudyCorgi editorial team proofread and checked the paper to make sure it meets the highest standards in terms of grammar, punctuation, style, fact accuracy, copyright issues, and inclusive language. Last updated: November 8, 2023 .

If you are the author of this paper and no longer wish to have it published on StudyCorgi, request the removal . Please use the “ Donate your paper ” form to submit an essay.

Home — Essay Samples — Science — Agriculture — Rural Development

Rural Development

• Categories: Agriculture Economic Growth

About this sample

Words: 730 |

Published: Sep 20, 2018

Words: 730 | Pages: 2 | 4 min read

Introduction

Works cited.

• Odurukwe, S., Matthews-Njoku, E., & Ejioku-Okereke, N. (2006). Agricultural production and poverty in Nigeria. Journal of Rural Economics and Development, 15(1), 32-45.
• Food and Agriculture Organization (FAO). (1995). Agricultural development and food security in Africa. Retrieved from http://www.fao.org/3/v8330e/v8330e00.htm
• International Fund for Agricultural Development (IFAD). (1993). Rural poverty report. Rome: IFAD.
• United Nations Development Program (UNDP). (n.d.). Gender and agriculture in sub-Saharan Africa. Retrieved from http://www.africa.undp.org/content/rba/en/home/library/women-economic-empowerment/gender-and-agriculture-in-sub-saharan-africa.html
• Damisa, M., & Yohanna, M. (2007). Gender roles in agricultural production: A case study of women farmers in rural Nigeria. Journal of Gender and Rural Development, 2(1), 32-42.
• Abdullahi, R. (n.d.). Rural women and agricultural development in Nigeria. Retrieved from https://www.intechopen.com/chapters/11527
• Afolabi, M. (2008). Women's contribution to food production in rural Nigeria. Journal of Agricultural Extension, 12(1), 50-60.
• Food and Agriculture Organization (FAO). (1995). Women in agriculture: Closing the gender gap for development. Retrieved from http://www.fao.org/3/v9776e/v9776e00.htm
• Ampaire, E. L., & Kansiime, M. K. (2016). Factors influencing women's participation in agricultural production and decision-making in Uganda. Gender, Technology and Development, 20(3), 207-227.
• Mba, S. (2010). The role of women in agricultural production: A case study of rural women in Southeast Nigeria. Journal of Sustainable Development, 3(4), 246-252.

Cite this Essay

Let us write you an essay from scratch

• 450+ experts on 30 subjects ready to help
• Custom essay delivered in as few as 3 hours

Get high-quality help

Dr. Karlyna PhD

Verified writer

• Expert in: Science Economics

+ 120 experts online

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

Related Essays

2 pages / 999 words

2 pages / 937 words

3 pages / 1438 words

2 pages / 1033 words

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

121 writers online

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

Related Essays on Agriculture

Jethro Tull, an English agricultural pioneer of the 18th century, was a significant figure in the agricultural revolution. His groundbreaking inventions revolutionized farming practices and significantly increased agricultural [...]

The ancient civilizations of the Maya and Inca are both fascinating and complex, with rich histories and cultural traditions that continue to capture the imagination of people around the world. From their impressive [...]

The transition from a nomadic lifestyle to a sedentary one is a pivotal moment in human history. This shift marked the beginning of agriculture and the rise of civilizations. Theories of the sedentary farmer theory seek to [...]

In conclusion, technology plays a pivotal role in addressing the challenges posed by overpopulation. Advancements in agriculture, medicine, and urban planning have the potential to mitigate the effects of overpopulation and [...]

“Agricultural mechanics are responsible for fixing tractors, combines and other farming implements. Often, mechanics use specialized skills and experience to locate and diagnose the machine’s problem and then generate a [...]

The importance of wastewater treatment cannot be overstated in today's world. As populations grow and urbanization continues, the generation of wastewater has surged, posing serious environmental and public health challenges. [...]

Related Topics

By clicking “Send”, you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

Where do you want us to send this sample?

By clicking “Continue”, you agree to our terms of service and privacy policy.

Be careful. This essay is not unique

This essay was donated by a student and is likely to have been used and submitted before

Download this Sample

Free samples may contain mistakes and not unique parts

Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

Please check your inbox.

We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

Essay on Urbanization for Students and Children

500 words essay on urbanization.

Urbanization refers to the movement of the population from rural areas to urban areas. It is essentially the gradual increase in the proportion of people living in urban areas. Furthermore, urbanization is quite a popular trend in the contemporary world. Moreover, people mostly undertake urbanization due to more work opportunities and a better standard of living. According to the expert prediction, by 2050, 64% of the developing world and 86% of the developed world will be urbanized.

Causes of Urbanization

First of all, political causes play a big role in urbanization. Many people get forced to leave rural areas for urban areas due to political unrest. Therefore, many families go to urban areas in search of food, shelter, and employment .

Another important cause of urbanization is an economic cause. Furthermore, poverty is a widespread phenomenon in rural areas. Moreover, farmers are finding it very hard to earn enough money and make a living. Consequently, rural people move to urban areas in search of better job opportunities.

Education is a strong cause of urbanization. Urban areas offer opportunities for seeking high-quality education. Moreover, urbanization offers opportunities for studying at universities and technical colleges. Such handsome education opportunities attract many young people in rural areas to move to urban areas.

Environmental degradation also plays a part in contributing to urbanization. Deforestation destroys the natural habitat of many farming families. Furthermore, mining and industrial expansion also harm the natural habitat of farming families.

The social cause is another notable reason for urbanization. Many young rural people migrate to urban areas in order to seek a better lifestyle. Moreover, many young people want to escape the conservative culture of rural areas. Most noteworthy, urban areas offer a more easy-going liberal lifestyle. Furthermore, cities have clubs to attract youth.

Get the huge list of more than 500 Essay Topics and Ideas

Benefits of Urbanization

First of all, urban areas are much more efficient in providing resources than rural areas. Important and basic amenities like housing, clean water, and electricity are easily available in urban areas.

People in urban areas find it quite easy to access to various important services. Most noteworthy, these services are high-quality education, expert health care, convenient transportation, entertainment, etc. Furthermore, some or all of the services are unavailable in rural areas.

Urban areas offer better employment opportunities. Furthermore, these employment opportunities are the result of industrialization and commercialization.

Urban areas play a critical role as creators and disseminators of knowledge. This is because of the highly connected urbanized world. Most noteworthy, the geographical proximity of people in urban areas helps in the propagation of ideas.

Urban areas enjoy the benefits of technological development. Furthermore, many types of technologies get implemented in urban areas. Moreover, urban people quickly get in touch with the latest technology. In contrast, many rural individuals remain ignorant of many types of technologies.

To sum it up, urbanization is a process which is on a continuous rise. Furthermore, urbanization ensures the transformation of rural culture into urban culture. Moreover, the government must be vigilant to the rapidly increasing urbanization. A fully urbanized world looks like the ultimate destiny of our world.

FAQs on Urbanization

Q1 State any two causes for urbanization?

A1 Any two causes for urbanization are high-quality education and good job opportunities in urban areas.

Q2 Why urban areas offer better employment opportunities?

A2 Urban areas offer better employment opportunities due to high industrialization and commercialization.

Customize your course in 30 seconds

Which class are you in.

• Travelling Essay
• Picnic Essay
• Our Country Essay
• My Parents Essay
• Essay on Favourite Personality
• Essay on Memorable Day of My Life
• Essay on Knowledge is Power
• Essay on Gurpurab
• Essay on My Favourite Season
• Essay on Types of Sports

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Download the App

Poverty in Rural and Urban Areas Essay

My approach is to identify the latest materials published within the last five years with poverty studies in urban or rural areas. Many researchers investigate the root cause of the gap between urban and rural poverty and various interventions that the government can enact to solve the issue. My main focus is on articles explaining the sources of poverty in rural and urban areas and the key difference between the two. The strategy I have implemented is significant in identifying the materials that fulfill research requirements. The sources I have gathered effectively answer the research questions I am investigating. Poverty manifestation in rural areas has a significant impact on society compared to urban. Most of the urban region poverty threshold is mainly on the outskirts of the town where the lower-income individuals live. I have identified various articles that note the key differences between the two poverty levels. Furthermore, the articles provide the necessary interventions that, when applied, help raise the economy of the rural areas as well as reduce urban poverty.

Bibliography

Chotia, V., & Rao, N. (2017). Investigating the interlinkages between infrastructure development, poverty, and rural-urban income inequality. Studies in Economics and Finance , 34 (4), 466-484. Web.

The research investigated the impact of improving the infrastructure of Brazil, Russia, India, China, and South Africa (BRICS) in the eradication of poverty in Urban and Rural areas. The findings of this research show that in the long run, economic growth and infrastructural development have a significant impact on the reduction of poverty in both the rural and urban sections. The findings of this research are credible and relevant because it incorporates a literature review and an economic model. This research shows that effective policies must be implemented to curb poverty in rural and urban areas without the need for differentiation. I will use this research to oppose the argument of handling urban and rural poverty separately.

Cosby, A. G., McDoom-Echebiri, M. M., James, W., Khandekar, H., Brown, W., & Hanna, H. L. (2018). Growth and persistence of place-based mortality in the United States: The rural mortality penalty. American Journal of Public Health, 1 , 1-8. Web.

The research is significant as its shows the effect of location in determining the mortality rate of individuals in the United States of America. Cosby et al. shows that rural poverty is a significant factor in increased mortality rates compared to urban areas. This research is relevant as it has incorporated time-series data from 1970 to 2016. The finding supports the argument that rural poverty has a significant impact on society. I will use their argument to support the view that policymakers and the government must consider ending rural poverty because of its outcomes in increasing mortality in society. They have a similar view to McAreavey and Brown (2019) as they both highlight impact of rural poverty.

McAreavey, R., & Brown, D. (2019). Comparative analysis of rural poverty and inequality in the UK and the US. Palgrave Communications , 5 (1), 1-13. Web.

The research study analyses and compare rural poverty between UK and US. The social welfare programs deliver less than their counterparts in the urban area, hence promoting their poverty levels. Furthermore, social exclusion because of low income is also a significant factor in poverty levels in the US rural areas. The research is relevant as it uses a literature review to collect necessary data relating to rural poverty from 1978 to 2017. The findings are relevant and useful in portraying how rural poverty emanates in the United States. I will use this research to explain the argument of rural poverty not being given maximum attention despite having a critical impact on the community.

These groups are excluded from various social activities and education, making them vulnerable to poverty. Furthermore, the decline in state funding has made education expensive, promoting poverty in rural areas.

Megbowon, E. (2018). Multidimensional poverty analysis of urban and rural households in South Africa. Studia Universitatis Babeș-Bolyai Oeconomica , 63 (1), 3-19. Web.

The research paper investigates the multidimensional poverty status of the rural and urban sections of the Eastern Cape Province in South Africa. The researcher treats poverty in both rural and urban as the same. The research shows that the living standards in rural and urban are the key driver of multidimensional poverty. The research is significant because it shows that rural and urban poverty should be given the same attention. The research article is credible and relevant as it uses primary data to provide a critical evaluation of their findings with a large sample of 3033 households. The findings of this research support my argument that poverty should be addressed as a single entity and not as subcategories. It also reinforces the argument of similar interventions are useful in curbing poverty.

Mellor, J. W., & Malik, S. J. (2017). The impact of growth in small commercial farm productivity on rural poverty reduction. World Development, 91 , 1–10. Web.

The research finding shows that expansion of the income and increased growth of agricultural production in the low and middle-income countries has a significant impact on reducing poverty levels. The source is valid as it uses literature review methodology to collect research materials from 1972. The research findings are relevant as they incorporated peer-reviewed articles that focus on the impact of improving agriculture and income on poverty levels. The finding of this research is significant as it portrays the importance of developing rural areas as a way of curbing poverty. I will use the argument in this research to support the idea of rural poverty being dangerous to society. The findings are similar to that of Cosby et al. (2018) and McAreavey and Brown (2019).

Nolan, L., Waldfogel, J., & Wimer, C. (2017). Long-term trends in rural and urban poverty: new insights using a historical supplemental poverty measure. The ANNALS of the American Academy of Political and Social Science , 672 (1), 123-142. Web.

Nolan et al. researched poverty levels between rural and urban areas in the United States of America from 1970 to 2014 using time series analysis. The research shows that poverty levels in rural and urban areas should be given similar attention since poverty in rural areas of the United States has significantly reduced over the past two decades. The research is useful as it shows that similar interventions will help curb poverty levels in the urban areas of the US. I will incorporate this research on the opposing side where poverty should be treated equally. The argument of Nolan et al. is similar to Megbowon’s (2018) argument. This article will help strengthen the view poverty should be addressed as a single unit.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2023, March 5). Poverty in Rural and Urban Areas. https://ivypanda.com/essays/poverty-in-rural-and-urban-areas/

"Poverty in Rural and Urban Areas." IvyPanda , 5 Mar. 2023, ivypanda.com/essays/poverty-in-rural-and-urban-areas/.

IvyPanda . (2023) 'Poverty in Rural and Urban Areas'. 5 March.

IvyPanda . 2023. "Poverty in Rural and Urban Areas." March 5, 2023. https://ivypanda.com/essays/poverty-in-rural-and-urban-areas/.

1. IvyPanda . "Poverty in Rural and Urban Areas." March 5, 2023. https://ivypanda.com/essays/poverty-in-rural-and-urban-areas/.

IvyPanda . "Poverty in Rural and Urban Areas." March 5, 2023. https://ivypanda.com/essays/poverty-in-rural-and-urban-areas/.

• "Numbers 2: The Chaos" by Rachel Ward
• National Museum of the Marine Corps
• Global, Imperial, and Divided City in Mirzoeff’s “How to See the World”
• How Social Programs and Policies Impact the Family
• The Gangs in the US Community
• Wealth and Educational Inequality in the U.S.
• Analysis of Theodore Dalrymple’s “What Is Poverty?”
• Bullying on the Rise: Should Federal Government Enact Federal-Bullying Laws?
• "Sub-Prime as a Black Catastrophe" by Melvin Oliver
• "The Language of Healthcare Reform" by Larry Levitt
• Response to Swift’s “A Modest Proposal”
• Resource Availability for Low-Income Families in New York
• Poverty: Subsidizing Programs
• Urbanization and Technological Development in Third-World Countries
• The Problem of Poverty in Chad

Essay on Regional Rural Banks (RRBs) of India

In this essay we will discuss about Regional Rural Banks (RRBs) of India. After reading this essay you will learn about: 1. Introduction to Regional Rural Banks of India 2. Progress of Regional Rural Banks in India 3. Evaluation 4. Functional Superiority 5. Unsatisfactory Performance 6. Restructuring 7. Recapitalisation 8. Suggestions 9. Reforms 10. Consolidation 11. Amalgamation.

• Essay on the Amalgamation of Regional Rural Banks

Essay # 1. Introduction to Regional Rural Banks of India:

Rural banking institutions are playing a very important role for all-round development of rural areas of the country. In order to support the rural banking sector in recent years, Regional Rural Banks have been set up all over the country with the objective of meeting the credit needs of the most under privileged sections of the society.

These Regional Rural Banks (RRBs) have been receiving a high degree of importance and attention in the rural credit system.

ADVERTISEMENTS:

Considering the gross absence of banking facilities in the rural areas of the country, the Reserve Bank of India in consultation with the Central Government, State Governments and some major nationalized sponsored banks had set up some Regional Rural Banks in the late 1970s with a view to elevate the economic status of the rural poor as well as to inculcate a habit of saving among the rural masses.

As per the recommendations of the Working Group on Rural Banks, the regional rural banks were established in 1975 for supplementing the commercial banks and co-operatives in supplying rural credit. The main objective of regional rural banks in India is to advance credit and other facilities, especially to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs in order to develop agriculture, trade, commerce, industry and other usual productive activities in different rural areas of the country.

At the initial stage, five regional rural banks were established on October 2, 1975 at Gorakhpur and Moradabad in Uttar Pradesh, Jaipur in Rajasthan, Bhiwani in Haryana and Malda in West Bengal under the sponsorship of State Bank of India, the Syndicate Bank, United Commercial Bank, Punjab National Bank and United Bank of India respectively.

All these five RRBs have an authorised capital of Rs 1 crore and paid-up capital of Rs 25 lakh. The share capital of RRB is subscribed in the following manner—as the Central Government—50 per cent, the State Government concerned—15 per cent and the sponsoring commercial bank—35 per cent.

The regional rural banks are maintaining its special charter it their of operation is very much limited to a definite region, grant direct loan to rural people at concessional rates and receive subsidies and concessions from the Reserve Bank and the sponsoring bank.

The concessions granted by the Reserve Bank of India are:

(a) Allowing RRBs to maintain cash reserve ratio at 3 per cent and statutory liquidity ratio at 25 per cent; and

(b) Providing refinance facilities to RRBs through NABARD.

Essay # 2. Progress of Regional Rural Banks in India :

In the mean time, the regional rural banks have extended their network throughout the country to a considerable extent. Initially, there were 196 regional rural banks operating in 28 states with nearly 14,700 branches. Till June 1996, these RRBs have been lending annually nearly Rs 1500 crore to the rural people and more than 90 per cent of the loan has been advanced to weaker sections.

As on September, 1990, the RRBs had advanced jointly to the tune of Rs 3,560 crore in the form of short-term crop loans, term loans for agricultural activities, for rural artisans, cottage and village industries, retail trade, self-employment projects and consumption loans etc.

Among all the states, Uttar Pradesh is the state where larger number of RRB branches has already been opened. Recently, after amalgamation, the number of RRBs has been reduced to 92.

During the last 30 years, RRBs have been participating actively in various programmes designed for providing credit assistance to identified beneficiaries included under the new 20 Point Programme, IRDP and other programmes designed for scheduled castes and tribes. RRBs are also advancing loans to weaker sections and physically handicapped persons under differential rate of industrial (DIR) schemes.

At the end of June 2014, there were 92 amalgamated RRBs, covering 518 districts of the country with a network of 18,291 branches. Out of all these branches of RRBs, 4,042 are the rural branches as on June 30, 2014 which constitute about 21.4 per cent of the total branches of RRBs.

The loans and advances stood at Rs 7,852.7 crore as at the end of September 1996. Again, Rs 15,423 crore were mobilised as deposits by RRBs at the end of September 1996. Consequent upon the permission of the Reserve Bank of India to determine their own lending rate with effect from 26 August 1996, most of the RRBs have been charging interest rates on their loans varying between 13.5 to 19.5 per cent per annum.

In recent years, under the softer interest regime, interest rates on loans advanced by RRBs have also declined considerably. Again, total amount of credit advanced to the agriculture by the RRBs increased considerably from Rs 6,069.79 crore in 2002-03 to Rs 43,968 crore in 2010-11.

As on March 31, 2002 total outstanding deposits of RRBs stood at Rs 44,327.81 crore and total outstanding advances stood at Rs 18,586.97 crore. Out of the 196 RRBs, 170 RRBs are making profit in recent years after introducing measures under banking reforms. Chalapathi Rao Committee on Regional Rural Banks has also recommended privatisation of profit making RRBs in a phased manner.

In order to make Financial Inclusion Plan of the government effective and to expand the penetration of banking network in unbanked and under-banked rural areas, regional rural banks (RRBs) also worked out its branch expansion plan for 2011-12 and 2012-13 with 10 per cent increase over the previous year.

Accordingly, RRBs could open 913 branches in 2011-12 against its target of opening 1247 branches. This figure compares favorably with that of opening of 521 branches in 2010-11 and 299 branches in 2009-10. For 2012-13, a target of opening 1845 new branches has also been set.

Essay # 3. Evaluation of Regional Rural Banks :

Regional Rural Banks have made commendable progress in advancing various types of loan to the weaker and under privileged section of the rural society. As per our recent RBI report, “The RRBs have fared well in achieving the objective of providing access to weaker sections of the society to institutional credit but the recovery position on the whole is not satisfactory.”

The working of RRBs was evaluated by the Narasimham Committee on the Financial System. Although RRBs were set up in order to provide a low cost alternative to the operation of commercial bank branches, particularly in the rural areas but the functioning of RRBs was not up to the mark.

The Committee mentioned three basic problems of RRBs:

(a) RRBs have a low earning capacity due to so many restrictions placed on the business undertaken by these banks;

(b) With the recent award of a tribunal the wages and salary scales of RRBs would be similar to that of commercial banks and thus the very idea of low cost alternative to the operation of commercial bank has been nullified; and

(c) The very area of operations of RRBs is also being utilised by the sponsoring banks by running their own rural branches leading to certain anomalies like duplication of services and expenditures on control and administration.

Thus the Narasimham Committee is of the opinion that the viability of RRBs should be improved without sacrificing the basic objective. The Government should also try to evolve a rural banking structure and base of RRBs with adequate financial strength and management and organisational skills of the commercial banks.

But there are some inherent factors which are very much responsible for this non-viable nature of RRBs. These include:

(i) RRBs can set up its branches mostly in unbalanced and under-banked areas;

(ii) The lending operations of RRBs are very much confined to target group composed of small borrowers of rural and semi-urban areas; and

(iii) The rate of interest charged by RRBs on their loan are comparatively lower.

The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAF1CARD) has also indicated the same above mentioned reasons responsible for growing non-viability of RRBs.

Essay # 4. Functional Superiority of Regional Rural Banks :

Regional Rural Banks have also established functional superiority over other commercial banks of the country. This superiority of RRBs has been brought out by the share of deposits contributed by these branch offices of RRBs in different states. The share of deposits of these branches of RRBs in December, 1991 in a state like Uttar Pradesh was 25.7 per cent in comparison to that of only 12.4 per cent for other Scheduled Commercial Banks.

This achievement is noteworthy if we consider that the number of branches of RRBs (1,193) was even lower than that of other scheduled commercial banks (1,361). Moreover, the share of deposits of RRBs in Haryana was also higher than other scheduled commercial banks which had comparatively double the number of branches.

Another important matter that has also been noticed is that most of the branches of RRBs are opened in unbanked centres and thus the deposits mobilised by them are fresh deposits and are not diverted from the deposits per branch of RRBs established before 1980 is uniformly higher in almost all the states of the country. In respect of credit operations, RRBs were successful in identifying the target groups and also in meeting their credit requirements.

Essay # 5. Unsatisfactory Performance of Regional Rural Banks :

The Regional Rural Banks (RRBs) have been experiencing an unsatisfactory performance since last few years. Therefore, the RRBs have now become a serious problem for the Indian Banking sector. They are now far from fulfilling purpose for which they were set up some two decades ago.

These RRBs have been incurring heavy losses year after year. In 1990-91, the RRBs incurred a total loss of Rs 92.87 crore, followed by Rs 258.66 crore during 1991-92. In 1993-94, 173 out of the country’s 196 RRBs incurred losses to the tune of Rs 310 crore.

As per the latest data available with the National Bank for Agriculture and Rural Development (NABARD), the total accumulated losses of all Regional Rural Banks, operating in the country are estimated at Rs 2,176 crore as on 31st March, 1996.

It is, therefore, not surprising that these banks, established for the purpose of providing an impetus to rural growth have dismally failed to boost agro-based rural economy. One of the major contributory factors responsible for the mounting losses suffered by the RRBs has been very high overheads; in which a sizeable component is salaries. Employees of RRBs earlier received lower scales of salaries compared to their counterparts in the scheduled nationalized banks.

However, in 1990, with implementation of the National Industrial Tribunal (NIT) Award in case of the employees of the RRBs, the structure of their emoluments was brought at par with that of the staff of the scheduled commercial banks.

The NIT award has enhanced the salary-allowance bill of RRBs by 35 per cent during the last three years, apart from increase in its other concomitant expenditure. Moreover, it also placed on the banks shoulder an arrear burden of Rs 225 crore.

While the annual wage liability of the RRBs has increased substantially, their income was declining rapidly on account of inadequate loan recoveries and scanty profits. Only 23 of the 196 RRBs were making a profit and the rest were all running losses. The aggregate level of loss at the end of March 1994 was Rs 906 crore.

Over the last three years, the credit-deposit ratio of RRBs had also declined from 85.6 in 1989-90 to as low as 68.7 in 1991-92. Further, the increasing number of defaulters has hampered the recycling of cash. In 1992, the loan over dues stood at Rs 1,314 crore.

Due to the constant efforts, at recapitalizing RRBs, at the end of March, 2000, 158 RRBs are posting operating profits. Out of these, 48 RRBs have been able to wipe out their accumulated losses. In view of the importance of RRBs in rural financing, the government has decided to continue with this programme of strengthening the RRBs in the coming years.

Essay # 6. Restructuring of Regional Rural Banks :

The present situation is forcing the bank to initiate corrective measures to put them back in stream. The government of India has undertaken restructuring of the RRBs. Towards that end their issue capital has been raised from Rs 25 lakh to Rs one crore in the case of 140 banks and Rs 50 lakh in the remaining cases. A provision of Rs 5 crore for the purpose was made by the government during 1993-94.

The issue capital of the RRBs is shared by the Central Government, all the state governments and various sponsoring banks. At the end of March, 1992 the total credit support extended to the banks amounted to Rs 4090.86 crore. As on the same date the banks had mobilised Rs 5868 crore from 345 lakh accounts.During. 1991-92, the RRBs disbursed only Rs 1,107 crore among 23 lakh rural people drawn from the weaker sections of the society.

To revitalize the banks a sum of Rs 402 crore was released in 1991-92 by the state owned National Bank for Agriculture and Rural Development (NABARD). The weak condition of RRBs has been reflected from the fact that many have completely wiped out their equity and reserves and in some, the losses are even eating into deposits.

This is an unsustainable situation and long term structural measures are necessary if these banks are to be rehabilitated.

Attributing high establishment and operational cost, low level of business and restricted area of operation as the main causes for the loss, the RBI had initiated certain measures to enable RRBs to diversify their operations.

In line with the government’s focused strategy for improving the viability of the Regional Rural Banks in the country as many as 136 RRBs have been provided financial support to the tune of Rs 573 crore for their comprehensive revamping. By according priority to revival of viable RRBs instead of tackling the problem in a generalized manner, it is expected to bring down considerably the losses of RRBs and make them stand on their own feet.

The RRBs have been advised to prepare bank specific development action plans to enable them to adopt a systematic approach for their turn around. Besides, the RRBs have been permitted by the RBI to deploy a part of their surplus non-statutory liquidity Ratio fund in the credit portfolio of their sponsor banks.

The RBI has fully deregulated the interest rates that can be charged to the ultimate borrowers by the RRBs. Now there is even a move to merge all the 92 RRBs to form a National Rural Bank of India, for which NABARD would contribute 76 per cent of the equity.

Essay # 7. Recapitalisation of Regional Rural Banks to Improve their CRAR :

RRBs have been playing an important role in credit delivery in rural areas. In order to bring the capital to risk-weighted assets ratio (CRAR) or RRBs up to at least 9 per cent, Dr. K.C. Chakraborty Committee inter alia recommended recapitalization support to the extent of Rs 2,200 crore to 40 RRBs in 21 states.

In pursuant to the recommendation of the committee, recapitalization amount is to be shared by the stakeholders in proportion to their shareholding in RRBs, i.e., 50 per cent by central government, 15 per cent by concerned state government, and 35, per cent by the concerned sponsor banks.

Accordingly, the central government share works out to Rs 1,100 crore. The recapitalisation process, which started in 2010-11 was to be completed by 2011-12. Although the central government released about Rs 468.9 crore during 2010-11 and 2011-12 to 21 RRBs, but the process to recapitalisation could not be completed in 2011-12 as all the related state governments could not release their share towards recapitalisation.

Therefore, the recapitalisation scheme has been extended up to March 2014. In the mean time, the budget for 2012-13 has made provision for Rs 200 crore for this purpose and the same was released in time. Thus till 31st December 2012, a total sum of Rs 668.9 crore had been released by the government to 27 RRBs for its recapitalisation.

Essay # 8. Suggestions to Raise the Degree of Viability of Regional Rural Banks :

In order to raise the degree of viability of regional rural banks, some suggestions may be advanced in the following manner:

1. As suggested by CRAFICARD, the areas of operation of a RRB branch never offer sufficient potential for business and thus to attain viability this branches may cover the neighbouring districts. But the chances of extending this area of operation are very remote due to the introduction of the programme of Service Area Approach.

2. Within the service area, the RRBs must be allowed to finance the project of non-target groups after meeting the credit needs of target groups. Although CRAFICARD and Kelkar Committee did not favour the idea of RRBs financing non-target groups but recommended to lend to those public bodies established for the benefit and welfare of weaker sections.

3. In order to increase the resource base, the RRBs may be permitted to open their branches in the semi-urban and urban areas having larger business potential. Such branches will help the RRBs to mobilise the much needed resources required to meet rural obligations.

4. In order to diversify their deposit base, RRBs may be permitted to tap NRI deposits in those areas when they have such potential.

5. District administration should help the RRBs to recover the overdue loan amounts as the present recovery percentage remains as low as 23 per cent.

Essay # 9. Reforms of Regional Rural Banks :

In line with the reform of the banking system, Expert Groups were constituted to examine the major issue concerning managerial and financial restructuring of Regional Rural Banks (RRBs) to devise future course of action in their further reorganization, and to study the role which could be assigned to self-help groups and NGOs in improving the rural credit delivery system.

To ensure that the restructuring of RRBs is sustained and durable, prudential norms were introduced, in 1996 along the lines of those for commercial banks. RRBs will be required to adopt new income recognition norms and exposure limits for borrowers. Provisioning norms were introduced from the year 1996-97.

Essay # 10. Consolidation of Regional Rural Banks :

The Government has taken the initiative of consolidating Regional Rural Banks (RRBs) sponsored by the same bank within a state. This would widen the sphere and area of banks’ operation and strengthen their functioning with a view to increase the flow of credit in the rural areas.

In terms of Section 23 of the Regional Rural Banks Act, 1976, the sponsor bank NABARD and the State Governments concerned have already given their concurrence for the proposed amalgamation of 14 RRBs.

Thus the process of merger in 196 RRBs, spread over 14,496 branches in 518 districts in India has quietly begun. A host of PSBs have taken a decision to merge some of their RRBs on a state-wise basis. The Government took systematic merger plan of RRBs on state-wise basis and one RRB started to function in each state province on 31st August, 2005 and as a result, the number of Regional Rural Banks (RRBs) had reduced to 92 from 196 due to amalgamation of RRBs sponsored by the same bank in a state.

The number of loss making RRBs reduced to 15 in 2006-07 from 22 in 2005-06. Of these seven have registered profit during the first half of 2007-08 and the remaining four posted profit by the end of 2007-08. The performance of RRBs has improved considerably as the percentage of their gross NPAs and net NPAs has reduced.

The net Worth of RRBs as a whole increased to Rs 4,545.86 crore as on March 31, 2007 from Rs 3,466.25 crore as on March 31, 2005.

Essay # 11. Amalgamation of Regional Rural Banks :

In order to improve the condition of RRBs and also to minimise overhead expenses and also to optimize the use of technology in RRBs, the government has initiated amalgamation of geographically contiguous RRBs in a State.

As a result of this step, the capital base and area of operation of amalgamated RRBs will be enhanced in order to serve their area better with absorption of technology and improved management. Till 1 January 2013, 22 RRBs had already been amalgamated into 9 RRBs.

Related Articles:

• Essay on the Problem of Rural Indebtedness in India
• Difference between Central Bank and Commercial Bank
• 5 Major Sources of Rural Credit in India
• National Bank for Agricultural and Rural Development (NABARD)