ORISSA ORISSA

HUMAN DEVELOPMENT REPORT 2004 HUMAN DEVELOPMENT REPORT 2004

P & C Department

Government of Orissa

29 JULY, 2005

UN Conference Hall, New Delhi

• First Orissa Human Development Report (HDR)

• An independent assessment of human development conditions

• A joint effort of Planning Commission, UNDP, Govt of Orissa, NCDS

• A benchmark against which future attainments shall be judged

• The State Planning & Co-ordination Department aims

• Improved monitoring of outcomes for key HD indicators

• Publication of periodical HDR at state and district levels

• Seeking continued support from Planning Commission and UNDP

ORISSA HUMAN DEVELOPMENT REPORT (2004)

• Human Development Issues Addressed

• Growth, Poverty, Livelihood

• Food Insecurity & Nutritional Status

• Health

• Education

• Gender Issues

• Natural Disasters

• Strategies for Financing HD

• Human Development Measures

• Human Development Index

• Gender related Development Index

• Reproductive Health Index

ORISSA HUMAN DEVELOPMENT REPORT

ECONOMY & GROWTH: CORE STRENGTHS

• Rich Natural Resource Endowment (Aquaculture, Forests, Marine, Metals, Minerals and Water)

• Rich Cultural Heritage – Tribal Heritage

• Excellent base for Textiles, Handloom and Handicrafts

• Excellent Tourism Opportunities - Eco-tourism, Religious

• Rich Potential for Industrialization – Steel, Aluminum

• Presence of Knowledge Industry – Good IT Skill base

ECONOMY & GROWTH : CHALLENGES WE FACE

• Undiversified, Slow Growing Economy (3- 4%)

• Undeveloped and Stagnant Agriculture (<1%)

- Primitive agricultural practices

- Low agricultural productivity

• Slow Growth in Manufacturing and Service Sectors

- Inadequate private investment and technical change

• Poor Infrastructure

- Lack of good roads, rails, ports, and airports

- Undeveloped markets

• Small Economic Base

• Lack of employment opportunities

• Low employable skills

• Frequent natural disaster

•

POVERTY

• Poverty declining at a very slow rate

• Overwhelmingly rural and regional phenomenon (93% of the poor live in rural areas)

• About half of the rural poor are 40% or more below poverty line

• Poverty in Orissa: Some Characteristics

• 4 out 5 poor persons are farmers or agricultural labourers

• Core Poverty groups

• ST (75%), SC (59%)

• Small & marginal farmers (60%), casual wage labourers (75%)

• Social Indicators for the Core Poverty Group are significantly worse

POVERTY

• Interior is poorly connected and has a very high incidence of poverty

• Many of the poor depend on forests for their livelihoods

• The poor are highly vulnerable to natural shocks, and have limited access to public services

• They have limited or no voice in decision making

LIVELIHOOD CONCERNS & RECOMMENDATIONSConcerns

• Recurrent droughts and floods (natural disasters)

• Poor Natural Resource Management

• Lack of marketing linkage for rural non-farm sectors based on very low levels of household, income and consumption

Recommendations

• Labour intensive growth strategy (small scale and cottage industries) (focus on KBK districts)

• Watershed management

• Shift from paddy cultivation to horticulture/fisheries

• Joint Forest Management

• Strengthening of rural credit

• Provision of legal rights for share croppers

• Promotion of non-farm sector employment

FOOD SECURITY AND NUTRITIONAL ISSUES

• Orissa is a food insecure state

• 57% population suffer from Chronic Energy Deficiency (CED)

• 48% women suffer from nutritional deficiency

• 72.3% of children have some degree of anaemia

• The State has taken several bold measures

• A good network of PDS outlets

92% HH access PDS within 2 km of their habitations

• TPDS, Annapurna and Antodaya Schemes

48.58 lakh HH benefit from these initiatives

• Involvement of PRI to manage PDS outlets in tribal areas

Sarpanches, BDOs, Sub-Collectors and Collectors authorized to extend food support to the most needy

• Targeted nutritional interventions

• NCAER appreciates the functioning of ICDS

FOOD SECURITY AND NUTRITIONAL ISSUES

• Recommendations

• Community based Management of PDS and grain banks

• Rural employment generation along with food transfer component

• Universalise PDS instead of TDPS

• Design and implement supplementary and emergency feeding programmes for very vulnerable

HEALTH CONDITIONS

• Highest Infant Mortality Rate (91 in 2001 & 87 in 2002)

• Lack of access to safe drinking water; adequate nutrition

• High percentage of low birth weight babies

• Early Marriage of Girls; poor female literacy

• ARI, Diarrhoea, Measles, Malaria

• Excess Morbidity Burden

• Increased cases of Malaria, TB, Gastroenteritis, ARI, Diarrhoea

• Preponderance of infectious and communicable diseases

• Access to Health Care Facilities

• Poor physical and economic access affect the utilization of public health care facilities

• Significant inter-district and gender disparities

• Perceptible improvement in coverage of health institutions

HEALTH CONDITIONS

• Recommendations

• Improved physical access to health care institutions

• Institutional/safe deliveries

• Promoting mother’s education

• Strengthened child immunisation programmes

• Strengthened vector control programmes

• Involving PRIs, NGOs and SHGs in managing healthcare institutions (remote/tribal districts)

• More targetted HIV/AIDS programmes

EDUCATION

• Done comparatively well in education

• Literacy levels increased from 7% (1936) to 63.61% (2001)

• Resource allocation: 6% of GSDP

• Increased Enrolment

• Significant improvement in gender parity index over the years

• Increased gross enrolment ratio among SC(115.1%) and ST (99.7%) in primary education

• Regional, Social and Gender disparities

• Female literacy only 50.97% (vs 75.95% male literacy)

• Wide inter-district variations – rural areas suffer more

• Low literacy among ST – very low female tribal literacy

• Drop out rates still continue to be high – 37% at primary level

GENDER

Concerns

• Sex ratio higher than the national average (972 against 933 national average)

• 0-6 years sex ratio lower than the national average (developed pockets of coastal and central tableland districts)

• Low BMI, Nutritional deficiency (esp. among SC and ST communities)

• Economic reform process –downsizing of public sector – may impact on women – removal of social security benefits, flexi-time and child care

Recommendations

• Land reforms – providing joint ownership to both husband and wife

• Public support for out-of-home child care services

• Simplifying banking procedures – increasing their accessibility to women

• Targetted programs for women losing jobs due to downsizing of public sector

NATURAL DISASTERS

Concerns

• Recurrent natural disasters -droughts (Western and Southern Orissa),

• & cyclones and floods (coastal areas)

• Loss of lives, livelihoods and property

• Serious fiscal imbalances

Recommendations

• Local communities should form the core of disaster preparedness and mitigation programmes

• Explore the feasibility of disaster insurance

• Building of safer houses crucial

HUMAN DEVELOPMENT INDEX (HDI)

• HDI is a composite measure

• Health Index, Education Index and Income Index

• Orissa HDI – 0.404 (11th among 15 major States)

• Kerala (0.638) and Bihar (0.367)

• Wide Inter-district Variations

• 16 districts have lower HDI than State average

• Top Five Districts

Khurda, Jharsuguda, Cuttack, Sundergarh, Deogarh

• Bottom Five Districts

Malklanagiri, Kandhamal, Gajapati, Koraput, Nabarangpur

HDI – INTER-DISTRICT VARIATION

GAINS ACHIEVED DURING 1993-1999

O r i s s a 1 9 9 9 - 0 0 1 9 9 3 - 9 4P o v e r t y h e a d c o u n t ( % ) 4 7 . 2 4 8 . 6I n f a n t m o r t a l i t y r a t e ( p e r ' 0 0 0 l i v e b i r t h s ) 8 1 1 1 2 . 1P r e v a l e n c e o f u n d e r w e i g h t c h i l d r e n ( % ) 5 4 . 4 5 3 . 3A c c e s s t o w a t e r ( % ) 6 5 . 3 5 0 . 9L i t e r a c y r a t e ( % ) 6 3 . 6 4 9 . 1H o u s e h o l d s w i t h n o t o i l e t f a c i l i t y ( % ) 8 6 . 5 8 7 . 8

ORISSA’S GAINS COMPARED TO ALL-INDIA

C h a n g e b e t w e e n 1 9 9 3 - 9 4 a n d 1 9 9 9 - 0 0 O r i s s a I n d i aP o v e r t y h e a d c o u n t ( % ) - 1 . 4 - 9 . 9I n f a n t m o r t a l i t y r a t e ( p e r ' 0 0 0 l i v e b i r t h s ) - 3 1 . 1 - 1 0 . 9P r e v a l e n c e o f u n d e r w e i g h t c h i l d r e n ( % ) 1 . 1 - 6 . 4A c c e s s t o w a t e r ( % ) 1 4 . 4 9 . 7L i t e r a c y r a t e ( % ) 1 4 . 5 1 3 . 2H o u s e h o l d s w i t h n o t o i l e t f a c i l i t y ( % ) - 1 . 3 - 5 . 7

• GDI is a composite measure- Health Index, Education Index and Income Index - Captures the gender dimensions of human development

• Orissa GDI – 0.546

• Wide Inter-district Variations

• 20 districts have GDI values less than State average • Best Five Districts

Jharsuguda, Sundergarh, Deogarh, Angul, Khurda, • Bottom Five Districts

Malkanagiri, Kandhamal, Jajpur, Gajapati, Koraput,

GENDER DEVELOPMENT INDEX (GDI)

GDI – INTER-DISTRICT VARIATION

• RHI captures impact of six indicators

• Risks of early pregnancies; pregnancy complications

• Lack of trained Dhais; 3rd or higher order babies

• Reproductive tract infections, contraceptive side effects

• Orissa RHI – 0.549

• Wide Inter-district Variations

• 13 districts have RHI values less than State average

• Best Five Districts

Jharsuguda, Jagatsinghpur, Sundargarh, Keonjhar, Cuttack

• Bottom Five Districts

Kandhamal, Bhadrak, Balangir, Nabarangpur, Nuapada

REPRODUCTIVE HEALTH INDEX (RHI)

RHI – INTER-DISTRICT VARIATION

HUMAN DEVELOPMENT: CHALLENGES

• Specific and target-oriented expenditure programmes

• Human Expenditure Ratio to increase from 4.43% to 5%

• Restructure expenditure in favour of social sectors: elementary education, primary and secondary health services, nutrition, rural water supply and sanitation

• Improve access of ST, SC and Women to quality education, public health and better nutrition

• Reduce regional and gender disparities

• Need for broad-based labour intensive economic growth

• Mobilisation of higher resources

• Diversify livelihood options of the poor and ST

• Focus on higher agricultural growth, institutional credit and non-farm employment and income opportunities

• Sustainable Management of forests and other NR

A DEVELOPMENT PERSPECTIVE FOR ORISSA- POVERTY TASK FORCE

Key Development Goals

• Well-diversified, Fast Growing Economy

• Reduce Poverty Ratio from 47.20% to 15%

• Reduce Infant Mortality Rate from 87 to less than 41

• Universal Literacy, High Quality Employable Skills

• Orissa - Net Exporter to rest of India & the World• Free from Regional, Caste and Gender Disparities• A Leading State in Human Development

• A Transparent and Responsive Government

OLD DEVELOPMENT PARADIGM

• Low private investment and narrow base of economic growth

• Government expansion seen as main source of employment growth

• Public resources pre-empted by interest payments, pension and salaries of government employees

• Stagnation and decline in public investment in both quantity and quality

• Growth in inefficient subsidies such as grants to colleges and high schools with poor or zero output

• Exploitation of minerals and forest wealth degradation of environment & displacement of tribals

• Top down public administration with information hidden from the public eye

NEW PARADIGM

• On a path of fiscal improvement since 2001

• Revenue Deficit reduced from 40% to less than 15% of Revenue Receipts

• Salary bill reduced from 150% to 80% of own revenues

• Orissa is the NUMBER ONE state in terms of revenue collection from the newly introduced VAT

• Orissa is NUMBER ONE in terms of private investment projects under implementation (source: CMIE)

• Government of Orissa is committed:

• To enhance transparency and accountability of public administration

• To reduce corruption, and

• To improve the quality of public spending and delivery of services

REFORM AGENDA OF THE GOVT OF ORISSA

• Economic Growth Enhancing Reform simplify rules & regulation for clearing private investment proposals with adequate safeguards, identify potential growth engines and remove binding constraints in key sub-sectors

• Power sector reform electric connectivity e-connectivity technology and market information from urban to rural areas

• Fiscal and admin reform quantity and quality of public investment improve operation of economic infrastructure and basic social services

• Health & Education reforms Reallocate public expenditure towards priority outcomes + Reorganize departments + Improve service delivery

• Empowerment of poor and tribal people Establish farmer groups and women’s self-help groups to enable the poor to benefit from growing market opportunities

BUILDING BLOCKS FOR INCLUSIVE DEVELOPMENT

• Improved connectivity -- road, electric power, electronic connectivity, modern ports

• Easy market access so that farmers receive competitive prices for crops

• Easy entry for private investment with effective social & environmental safeguards

• Literate and skilled human resources

• Effective food security through enhanced productivity of agriculture and strengthened PDS with local oversight

• Effective targeting of wage employment and self-employment programs aligned with seasonality of demand

• District level planning convergence of services

INCLUSIVE DEVELOPMENT …

• Empowered rural communities with active self-help groups voice to the voiceless

• Devolution to local bodies power to the powerless

• Consultative process of decision making

• Transparency of programs and accountability of service providers

RE-THINKING GROWTH

• Build on Orissa’s natural advantages

• Diversify agriculture and non-farm activities

• Identify potential growth engines – horticulture, mineral-based manufacturing, tourism and traditional hand skills, fisheries, forests, and IT

• Base policies and decisions on objective analysis, not on anecdotal impression

• Improve overall climate for private investment – Single Window, R&R Policy, Credit arrangements, Land & Water, etc.

• Win public support for private investment – negotiate for social investment from private entrepreneurs, advertise ‘win-win’ cases, allocate share of mining revenue to social development in mineral rich districts

ENHANCE RETURNS TO FARMERS

• Increase density of agricultural markets improve price realization by farmers in Orissa through access to markets and to price information

• Amend Agricultural Marketing Act to permit private investment alongside public investment in marketing yards and storage facilities

• Establish framework for contract farming encourage agro-processing and value addition

• Encourage sustainable and comprehensive water management through Pani Panchayats Water harvesting and re-cycling Measures to combat droughts and control floods

FISHERIES & FORESTS

• Both salt water and inland fisheries have potential

• Need to avoid adverse effects on natural environment

• Need for a policy framework and transparent guidelines

• Sustainable harnessing of, and value addition to, biomass resources bamboo, medicinal plants and other species

• Maintain ecological stability and sustainability of land-based production systems higher growth possible from forests and fisheries resources

RE-THINKING APPROACH TO TAP THE STATE’S MINERAL WEALTH

• How to give back what is taken from the tribal districts?

• Sensitive R&R Policy

• Public investment in technical training to enhance employment prospects in the interior districts

TOURISM HAS A GREAT POTENTIAL

• Enormous tourism resources

• Natural (tigers, elephants, Chilika, Simlipal)

• Cultural (sculpture, dance, handicrafts)

• Religious (Hindu, Buddhist, Jain)

• Need for high quality infrastructure

• Airports, roads, hotels

FUTURE PROSPECTS

• Large-scale private investments expected to boost job creation and urbanization over the next 15 years

• Revenue Deficit will be eliminated by 2008-09 and the Government of Orissa will become creditworthy, borrowing only for investments

• Mineral based industry + Tourism, Handlooms, Handicrafts, Fisheries, Horticulture and forests Accelerated growth in wage employment and self-employment

• Rapid economic Growth + Decline in Inequality Rapid decline in Poverty and more employment opportunities

• Improved health and education Food, health and social security Education as a means of empowerment, value addition and knowledge creation Improved quality of life

CONVERGENCE OF EFFORTS, IDEAS & INVESTMENT

• Transforming Orissa requires:

• Convergence of efforts, ideas and investment • Concerted action by all stakeholders

• State Govt., Central Govt., External Donors, Private Sector, Non Resident Oriyas, NGOs and the poor people themselves

THANK YOU