Part – B

Answer the following questions in one or two sentences

Question 21.
Define Rural Economy.
Answer:
Rural economy refers to villages. Rural economics deals with the application of economic principles in understanding and developing rural areas.

Question 22.
What do you mean by Rural Development?
Answer:
According to the world bank, “Rural development is a strategy designed to improve the economic and social life of a specific group of people rural poor”

Question 26.
Define Cottage Industry.
Answer:
Cottage industries are generally associated with agriculture and provide both part time and full time jobs in rural areas.

Question 27.
What do you mean by Micro Finance?
Answer:
Micro finance is a financial service that offers loans, savings and insurance to entrepreneurs and small business owners.

Question 28.
State any two causes of housing problem in rural areas.
Answer:

  1. Rapid adaptation of nuclear families.
  2. Problems in provision of proper water supply, good sanitation, proper disposal of sewage.

Question 29.
Define Rural Electrification.
Answer:
Rural electrification refers to providing electrical power to rural areas.

Part – C
Answer the following questions in one Paragraph

Question 31.
State the importance of Rural Development.
Answer:
Importance of Rural Development:

  1. India cannot be developed by retaining rural as backward
  2. As the rural economy supports the urban sector, the backwardness of the rural sector would be a major impediment to the overall progress of the economy.
  3. Improvements in education, health and sanitation in villages can help avoid many urban problems.
  4. To provide gainful employment and improve food production.
  5. The evils of brain drain and rural urban migration can be reduced.
  6. For the better utilization of resources.
  7. To minimize the gap between rural and urban areas.

Question 33.
Enumerate the remedial measures to Rural Poverty.
Answer:
Creation of employment opportunities would support elimination of poverty. The poverty eradication schemes implemented in India are

  1. 20 point programme.
  2. Integrated Rural Development Programme (IRDP)
  3. Training Rural Youths for Self Employment (TRYSEM)
  4. Food for Work Programme (FWP)
  5. National Rural Employment Programme (NREP)
  6. RLEGP, JRY and MGN REGS

Question 35.
Write a note on Regional Rural Banks.
Answer:
Regional rural banks came into existence in 1975. RRBs are recommended with a view to develop rural economy by providing credit and other facilities to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs.

RRBs are set up by the joint efforts of the centre and state governments and commercial banks. At present there are 64 RRBs in India. RRBs confine their lending’s only to the weaker sections and their lending rates are at par with the prevailing rate of cooperative societies.

Question 36.
Mention the features of SHGs.
Answer:

  1. SHG is an economically homogeneous group formed through a process of self selection based upon the affinity of its members.
  2. Most SHGs are women’s groups with membership ranging between 10 and 20.
  3. SHGs have well-defined rules and by laws, hold regular, meetings and maintain records and savings and credit discipline.
  4. SHGs are self-managed institutions characterized by participatory and collective decision making.

Question 37.
List out the objectives of MUDRA Bank.
Answer:

  1. Regulate the lender and the borrower of micro finance and bring stability to the micro finance system.
  2. Extend finance and credit support to micro finance institutions.
  3. Register all MFIs and introduce a system of performance rating and accreditation for the past time.
  4. Offer a credit guarantee scheme for providing guarantees to loans being offered to micro businesses.
  5. Introduce appropriate technologies to assist in the process of efficient lending, borrowing and monitoring of distributed capital.
Part – D
Answer the following questions in about a page

Question 39.
Discuss the problems of Rural Economy.
Answer:
The problems of rural economy are.
1. People related problems : The problem consists of illiteracy, lack of technical know how, low level of confidence, dependence on sentiments and beliefs etc.

2. Agriculture related problems : This include lack of awareness, knowledge, skill and attitude, unavailability of inputs, poor marketing facility, insufficient extension of staff and services, small size of land holding, absence of infrastructure, primitive technology, reduced public investment and absence of role for farmers in fixing the prices for their own products.

3. Infrastructural related problems : Poor infrastructure facilities like water, electricity, transport, educational institutions communication, health, employment are found in rural areas.

4. Economics related problems : Inability to adopt high cost technology, high cost of inputs, under privileged rural industries, low income, indebtedness and existence of inequality in land holdings and assets.

5. Leadership related problems : Leadership among the hands of inactive and incompetent people, self-interest of leaders, biased political will, less bargaining power and negotiation skills and dominance of political leaders.

6. Administrative problems : Political interference, lack of motivation and interest, low wages in villages, improper utilization of budget and absence of monitoring and implementation of rural development programme.

Question 40.
Analyse the causes for Rural Indebtedness.
Answer:

1. Poverty of farmers : The vicious circle of poverty fore es the farmers to borrow for consumption, cultivation and celebrations. Thus, poverty’ debt and high rates of interest hold the farmer in the grip of money lenders.

2. Failure of monsoon : Frequent failure of monsoon is a curse to the farmers and they have to suffer due to the failure of nature. Therefore, farmers find it difficult to identify good years to repay their debts.

3. Litigation : Due to land disputes litigation in the court compels them to borrow heavily. Being uneducated and ignorant they are caught in the litigation process and dry away their savings and resources.

4. Money lenders and high rate of interest: The rate of interest charged by the local money lenders is very high and the compounding of interest leads to perpetuate indebtedness of the farmer.