Regional planning does not work only for regional self sufficiency but for the balanced and

harmonious national development.

Concept of Regional Development

According to the Organisation for Economic Co-operation and Development (OECD),
“Regional Development is a broad term what can be seen as a general effort to enhance
well being and living standards in all region types, from cities to rural areas, and improves
their contribution to national performance and more inclusive, resilient societies.

Regional inequalities or disparities of one kind or another have existed since the beginning
of human history. The region has been a central concept of the development of geography
as a discipline. Accelerating processes of urbanization and industrialisation have generated
increased academic and policy attention in relation to regional development. During the
20th century a large body of research was created to explain patterns of regional
development in the developed and developing world. Much of its literature informed
policy aimed at addressing regional disparities, by increasing growth in lagging region or
managing the development of faster growing regions. The source of regional development
and the appropriate form of public policy remains the subject of debate and contention.
Regional development reflects not merely the outcome of “market forces” but also
complex political, institutional and cultural factors that shaped how economic divisions are
make. For this reason, economists, sociologist, political scientist, historians as well as
geographers are among those who have contributed to the study of regional development.
The effort to understand the regional development is a multidisciplinary {or even
interdisciplinary} enquiry to which geographers make an important contributions among
the key issues in the study of regional development are questions of definitions, including
defining the meaning of “regions” and “development”. Also important are shifting
theoretical and conceptual debates. Recently there has been a strong focus on the role of
institutions, government and governance in shaping pattern of development. Questions of
policy and practice also figures in geographical literature. Finally, despite process of
globalisation, patterns of regional developments remains highly diverse both between and
within countries, suggesting the need of sensitivity to the context of theory, policy and
practice.

The notion of development in the context of regional development refers to a value

positive concept which aims at enhancing the levels of the living of the people and general
condition of human welfare in a region. It is a value positive concept because development
is not only a change but change for better, just as plant develops into a tree and a child
into an adult and there is no reversal of position attained. Economic development is
reflected through growth of output and national income. Thus an important indication of
an economic development is increased in the per capita income. Development is neither
class natural nor it is a uniformly available across the regions. The development process
benefits some classes of a society more than other classes. It helps certain regions to attain
higher levels of development than other regions. This gives rise to social disparities as well
as regional disparities. Such a situation operates because of the behaviour of parameter of
development.

Regional development has been interpreted as intraregional development design to solve

the problems of particular regions. The concept has a multidisciplinary approach. The first
connotation of regional development is economic in which the difference in growth in
terms of volume and structure of production. Income, employment is measured to know
differences in the level of the development. This procedure is employed both for national
as well as sub national areas.

The concept of regional development may further be viewed in connection with plan,
policies and balanced development. The policies of regional development are aimed at
reducing the regional disparities existing in a particular do minimum and to find out the
possible means for developing the region as a whole. Economic planners have viewed
regional development problems from sectoral angles, so that regional has become
synonymous with sectoral planning for a sub national territory with the result that all the
weakness of central planning has been introduced at the regional level keeping in view the
lack of interest in spatial organisation and development.

At the micro level (villages and development block), the aim of regional development is
generally conceived to minimise the disparities in the level of development as observed in
differential access to resources and differences in the economic structure and social
transformation. These differences are generally formed in the industrial structure, access
to infrastructural facilities and to amenities. The purpose of a regional geographer is to
measure differences in the general level of socio-economic development and to find out
differences between small areas and to suggest alternative distribution of facilities and
amenities so that observed differences in access to resource are minimised. Furthermore,
the regional geographer has to find out differences in the pace setting process as
development of technology and modernisation so that these process are strengthen in
areas lagging behind.

Regional Development Scenario in India

Before independence, the Britishers paid attention to the development of only those
regions of their colony, (especially port cities, like Kolkata, Bombay and Madras) which
served their economic interest the most. This is how the historical forces laid the
development of port towns such as Bombay, Kolkata and Madras, these cities in turned
function as the nucleus for further development of Maharashtra, West Bengal and Tamil
Nadu respectively. On the other hand, resource rich regions such as Jharkhand, Orissa and
Madhya Pradesh lack behind. The discriminatory development of some regions during the
British Raj became evident by linking the hinterland with the port towns by the railways.
Before First World War, industrial investment was conned to only two nodes Bombay and
Kolkata. During 1930s, some more centres emerged on the industrial map of the country
such as Ahmadabad, Delhi, Kanpur, Madras, Madurai and Coimbatore; these were engaged
primarily in cotton textile manufacturing. During the 1913-14 the total number of
companies in the provinces of Bengal was 973(35.46%), Bombay was 613(22.3%) and
Madras 427(15.6%). During 1938-39, Bengal increased its share by 6% at the expense of
Bombay and Madras (Awasthi, 1991).

After independence, Nehru reminded that the tasks of the country included, “the ending of
poverty, ignorance, disease and inequality of opportunity.” These were the basic
foundations on which India embarked upon its path of development since gaining
independence in 1947. India initiated planning for national economic development with
the establishment of the Planning Commission. The aim of the first five year plan (1951-56)
was to raise the domestic savings for initiating growth and to help the economy resurrect
itself from the colonial rule. The real break with the past in planning came with the
introduction of second five year plan (Nehru Mahalanovies Plan). The industrialization
strategy articulated by Prof. Mahalanovies placed emphasis on the development of heavy
industries and envisaged a dominant role for the public sector in the economy. The
objectives of industrial policy were, a high growth rate, national self-reliance, reduction of
foreign dominance, building up of indigenous capacity, increasing small scale industries,
bringing about balanced regional development, prevention of concentration of economic
power in a few hands, reduction of income inequalities and control of economy by the
state. The strategy underlying the first three plans assumed that once the growth process
gets established, the institutional changes would ensure that benefits of growth trickled
down to the poor. But doubts were raised in the early 1970s about the effectiveness of
“trickled down” approach and its availability to vanish poverty. Further, the growth itself
generated by the planned approach remained too weak to create adequate surplus, which
is a prerequisite for the trickled down mechanism to work. The fifth plan’s (1974-79)
course of action begins by initiating a programme, which envisaged growth with
redistribution. To accelerate the process of production and to align it with contempory
realities, a mild version of liberalisation was started in the mid 1980s. Three important
committees were setup in the early 1980s, the first, Nasima Committee focusing on the
shift from physical controls to fiscal control, second, Sengupta Committee on the public
sector improvement, and, the third was Husain Committee on trade policy. As a result
some progress was made in the process of deregulation during the 1980s. Two kinds of
deliquescing activities took place. Firstly, 32 groups of industries were delicensed without
any investment limit, secondly, in 1988; all industries were exempted from licensing except
for a specified negative list of 26 industries.

The tenth five year plan was setup for the less developer stage, high level of capital
investment, initiative towards the better governance and institutional reforms to make the
targeted investment effective, Rashtriya Sam Vikas Yojana (RSVY) were a few goals that
were formulated to support the development initiatives in various backward states and
regions whereas during the eleventh five year plan, several important programmes and
yojanas were setup for the less developer state like, Pradhanmantri Swarnjayanti Gram
Swarozgar Yojana (PMSGSY), Indira Awas Yojana, National Rural Health Mission (NRHM),
Sarva Sikhiya Abhiyaan etc.

Concept of Regional Disparities

• According to OECD, regional disparities are the differences between economic
performance and welfare between countries or regions. (2002-03)
• Regional disparity means unbalanced spatial structures in some regions or in
different regions.
• Regional disparities are manifested in different conditions of life as well as in
unequal economic and development potential. Contrast between city and rural area
can be also understood as a form of spatial disparity.

An uncheck and uncontrolled process of growth leading to regional disparities, results in

numerous economic, social and cultural problems. These problems take a serious shape
and subsequently become hard to eliminate. The inequalities, lead to incomplete
utilization of resources and to a growth of public costs involved in functioning of its
economy. In regard to developing countries the regional factors underline many of the
pressing economic and socio problems being faced by them. Regional imbalances lead to
underutilisation or even to non-utilisation of economic resources both natural and human
and in that process individuals are discriminated. In countries like Pakistan (East vs. west)
and Indonesia (Java vs. other islands). Regional economic and political problems proved
too critical and in fact resulted in the bifurcation of the Pakistan in 1971.

Aspects of Regional gaps (Need to overcome Regional Disparities)

1. The need for reducing regional gaps has been argued from various angles. The first
argument is in terms of social justice. It is believed that income inequalities can be
reduced by way of reducing regional disparities. The social justice demands that all
citizens are treated alike and given an equal opportunity in life. For this purpose, it
is important to wear it in my mind that an individual should not be made worse off
 one area and better off in another. This is possible only when inter regional
disparities in the levels of development are ignored off.
2. Reduction in regional disparities is crucial even from the point of accelerating the
growth of the economy. There is sought of complementarity between reductions
in regional disparities and accelerated economic growth.
3. It is being increasingly realised that the national income can be increased manifold
only by proper utilisation and organisation of resources available in the relatively
backward regions. It is also understood that the resources at local level are highly
elastic that it can be made use of by proper method of regional planning.

Reduction of regional disparities is essential from the point of maintaining national

integration, political stability and unity also. If neglected and uncheck, these disparities are
capable of assuming serious dimensions and threatening the very existence of a nation.

Factors leading to Regional Disparities

1. Historical factors: - the existing regional disparities in the underdeveloped countries

can largely be due to historical factors and maybe attributed to either the initial
advantages enjoyed by some regions or to the ill conceived public investment
programmes effective under colonial rule. The regions which attracted the
attention of various rulers and administrators grew at a faster rate, thus becoming
developed regions. The development of metropolitan regions like Bombay, Kolkata,
Madras and Delhi can largely be attributed to the historical factors.
2. Non-uniform distribution of natural resources: - some regions are advanced with
rich natural resources like water, fertile soil, forest, minerals etc. Because of the
natural advantages, with a little effort the area can be developed at a fast rate.
Prosperity of Punjab can largely be attributed to this factor. Of course, human
efforts along with natural bounty are a prerequisite. Punjab state is in an
advantageous position with respect to both the factors.
3. Man-made factor: - the social, political and economic factors are responsible for
causing regional gaps to emerge. Even if a region is rich in natural resources, due to
lack of conscious efforts at development, region languishes and without an initial
impetus towards economic growth they continue to stagnate. Lack of
entrepreneurship, lack of efforts at acquiring skills and lack of motivation leads to
the regional disparities, as some regions continued to remain backward due to lack
of human efforts. In addition, socio-economic factors which are also man-made are
responsible for the interregional disparities.
4. Political preference to a region
5. Lack of public awareness
It is a well known fact that the regions which are already developed attract more activities
on account of the obvious advantages and natural attraction, which the activities will
receive by virtue of their location in developed areas. This leads to unequal growth. Once
the unequal rate of growth develops, they will tend to perpetuate themselves to the
economies of concentration. Thus even though regions get developed initially due the
natural advantages or historical regions, the regions will keep on growing because of the
advantage of concentration.

Minimising of disparities does not mean a straight transfer of the fruits of prosperity from
resource rich areas to a resource poor area or from a developed to a backward region.
Such transfers can only be temporary, and the producing area will continue to produce and
consuming areas will continue to consume with no chance of even exchange. This will
rather widen the disparities in the long run.

Similarly, reduction of regional disparity does not mean establishing manufacturing or

other activities in those area where is there is no adequate resource base. If it is done, the
goals of economic efficiency are necessary and essential for the progress of the country.

In fact, apparently there is a conflict between the goals of growth on one hand and social
justice on the other hands. Reduction in disparities requires a balance between the two
goals. Regional disparities can be brought down in the real sense, when all regions are
encouraged to exploit their own development potential and formulate development plans
suitable to their needs, potentials and aspirations.

Regional Disparities in India

India has had a glorious past. Our cultural heritage is comparable to that of China or Egypt.
We had great kings and kingdoms. Half of the major world’s religion had their origin in
India. We had produced great thinkers and philosophers who contributed to several
branches of knowledge.

But most of the history before 1500A.D. is in oral traditions. Indians, by and large, were not
good at record keeping. This is especially true about hard facts and data relating to various
aspects of life.

India during Akbar’s time was considered as prosperous a country as the best in the world.
Though mainly agrarian, India was a leading manufacturing nation at least at par with per
industrial Europe. She lost her relative advantage only after Europe achieved a revolution
in technology.

Economy was village based though under Muslim rule for over 500 years, society
continued to be organised in Hindu traditions. Caste system was intact. The social disparity
often added another dimension to economic exploitation while the Jajmani system
ensured social security; the caste system ensured social immobility.

However, flexibility of the Jajmani system ensures that the artisans working under it were
not completely cut off from the market. They were free to sell outside the village the
surplus goods left after the fulfilment of community obligations. The traditional economic
system based on agriculture and small scale industry was not disrupted either by the
activity of native capital or by the penetrating of the foreign merchant capital.

There is historical evidence to indicate that there were food surplus and deficient regions
as trade in food grains between regions took place. This contradicts resulted that a
uniform pattern of self sufficiency for the entire sub-continent existed. For e.g., rice was
being purchased from Konkan coast to be transported through sea to Kerala. Similarly,
Bengal rice was sent up to Ganges to Agra by Patna, to Koromandal and around the Cape
to Kerala and the various port towns of the west coast. The best mangoes in Delhi’s
Mughal court came from Bengal, Golkanda and Goa. Salt to Bengal was imported from
Rajputana.

Domestic trade was facilitated by a fairly developed road network. Sher Shah Suri during
his short regime laid the foundation of highway system in India. He alone had built seventy
hundred Sarais for the convenience of travellers, mainly traders on the highways.

Dadabhai Naraoji was the first one to make an attempt to estimate national and per capita
income in India. He placed per capita income of India at rate 30 in 1870 compare to that of
England of rate 450. However, since necessities in India cost only 1/3rd as compare to that
of England at that time, the real difference in terms of purchasing power parity was not 15
times but only 5 times.

Government’s economic policies during the colonial period were more to protect the
interest of the British economy rather than advancing the welfare of Indians. The primary
concern of the government was law and order, tax collection and defence. As for
development government adopted the Laissz-Faire attitude. Of course, railways, irrigation
system, road network and modern education system were developed during this period.
Railways and road network were more to facilitate movements of goods and defence
personnel and to facilitate better administrative control. Irrigation canal system was
mainly to five repetitive droughts and famines and to boost land revenue. Education, to
begin with, was developed mainly to train low ranking functionaries for the colonial
administration.

The last two decades has seen the introduction-expansion of several anti poverty
programmes and public intervention in favour of the poor including public distribution of
the subsidised food grains. The reduction in poverty in the recent period is attributed to
anti poverty programmes by their protagonists and to accelerate economic growth by
market friendly experts.

Disparities in economic and social development across the regions and intra regional
disparities among different segments of the society have been the major planks for
adopting planning process in India since independence. Apart from the massive
investments in backward regions, various public policies directed at encouraging private
investments in such regions have been pursued during the first three decades of the
planned development. While efforts to reduce regional disparities are not lagging,
achievements were not often appropriate with these efforts. Considerable level of regional
disparities remained at the end of the 70’s. The accelerated economic growth since the
early 80’s appears to have aggravated regional disparities. The seriousness of the emerging
acute regional imbalances has not yet received the public attention it deserves.

Most of the studies on intercountry and inter regional differences in levels of living and
income are done within the practical framework of Neo- classical growth models.
Geographically, the forward group of states fall in the western and southern parts of the
country and are contiguous except for Punjab and Haryana which are separated by
Rajasthan from rest of the states in this group. The group of backward states are in the
eastern and northern parts of the country and are geographically contiguous. Another
notable geographical feature is that while 6 out of 8 states, except Haryana and Punjab, in
the first group have vast sea coast, only 2 out of 7 in the second group i.e. Orissa and West
Bengal are littoral states. While the forward group of states accounts for about 40.4% of
the national population, the backward group accounts for as much as 51.5% of the
population of the country According to 2011 census. In terms of natural resources
including mineral wealth, water resources and quality of soil, the later has definite edge
over the former.

A limitation of inter regional analysis using states as units is the fact that this may not be
able to capture the significant intra state disparities in economic and social development
which exist today. The largest state in both the groups has regions within themselves,
which are vastly different in terms of various indicators of development. There are
identifiable distinct groups, at different stages of development, in several states.

Balanced regional development

Introduction

Each and every developed and developing nations have their own problems of regional
development. Some parts of the country are highly developed and some parts are severely
affected by lack of resources and facilities. Some regions are quite rich in natural resources
but they are poor because they are unable to utilise their existing resources. Similarly
some regions are lacking in natural resources even then they are ensuring their
development through technological development. So there is a need for stability in the
development process of the country by adopting the process of balanced regional
development of the country.

Balanced development of different parts of the country, extensions of the benefits of

economic progress to the less developed regions and wide spread diffusion of industry are
among the major aims of planned development. Expansion of the economy and more
rapid growth increase progressively the capacity to achieve a better balance between
national and regional development. In striving for such a balance, certain inherit difficulties
have to be deal, especially in the early phases of economic development. In the interest of
development in itself, the maximum increase in national income should be achieved and
sources obtained for further investment. The process is the cumulative one, each state
determining the shape of the next. In some fields, as in industry, intensive and localised
development may be inevitable. In other areas, also efforts are required to provide for
more dispersed advantages in sectors like agriculture, small industries, power,
communications and social services. Sufficient investment is also needed in economic and
social overheads to create numerous promising centres for growth. Once a minimum in
terms of national income and growth in different sectors is reached, it become possible to
provide in many directions for a large scale of development in the less developed regions.

Nature of Balanced Regional development:-

Balanced regional development does not means equal development of the regions in the
state, it simply implies the fullest realisation of a region potential so that the benefits of
overall economic growth are shared by the inhabitants of the region.

Thus the regional balance implies uniform distribution pattern of the planned investment
among different regions of a country alternatively, regional balance demands distribution
of investment in such a way so that the regional rates of growth equally in different parts
of the country be equally attained, eliminating the regional disparities prevailing in the
country.

Thus to attain regional balance, it is quite important that the backward region should try
to attain higher rates of growth than that of developed areas. Balance regional
development does not indicate attainment of self sufficiency of level of industrialization or
uniform economic pattern for each state rather it simply indicates widespread diffusion of
industry in backward areas.

The balanced regional development is broadly guided by the people in backward areas
which can be attained simply through its development of agriculture, industry,
infrastructure, trade and commerce. According to Mumford, "It is a problem of increasing
habitability, a problem of social and economic renewal." Thus by the term regional
development, we mean economic development of all regions simultaneously, arising their
per capita income & living standards by using their natural and human resources fully.

Need for Balanced Regional development:-

1. To accelerate the development of economy: Balanced Regional development is

required to ensure accelerated pace of the development. It also facilitates the
development of every region based on the availability of natural resources in that
particular are. Maximum utilization of man power available in that area can also be
ensuring for the development.
2. To develop the economy smoothly: It facilitates hassle free development of the
economy if all areas are equally developed then there is possibility of mutual
cooperation in these areas. In case of regional imbalances, lower level of income of
backward areas will succeed in diluting the growth achieved by the developed
areas. It will affect the goods and services being produced in the developed areas.
Secondly, with the help of balanced regional development barriers affecting
transport and supply of goods etc can also be removed.
3. To develop and conserve resources: The major objective of regional development is
to ensure maximum utilisation of available local resources. Process of regional
development also could control on the destructive use of resources. Establishment
of different industrial units makes possible for the better utilisation & conservation
of natural & human resources available at local level.
4. To promote large employment opportunities: Availability of region disparities in
under developed economy encourages income employment & production at low
level. Establishment of industries in different areas & development of infrastructure
facilities in backward areas create more employment opportunities. It also improves
per capita production & income.
5. To maintain political stability: Balanced regional development is also required to
maintain political stability if regional disparities exist in some areas and increase in
income in other areas. Then it may become a danger point for the nation as a
whole. Backward areas demand separation from the mainstream to fulfil their
dream of development.
6. To defend the country: Regional development is quite important from the point to
save the country from foreign aggression. If all areas are equally developed &
industries are quite dispersed then air attack can be faced without any hurdles. If
some regions have been developed & industries are concentrated in some areas the
external aggression can put the economy in problem. Thus, balanced regional
development is necessary from the view point of national defence and its safety.
 7. To control social evils:- with the help of balanced regional development
concentration of industries in big towns & cities can be easily controlled and it also
helps in removing social evils in these areas. Industrial concentration encourages
different types of pollution and thus, adversely affects the health and efficiency of
people living in that particular area. Cost of living also increases which ultimately
improves poverty & public unrest. Balanced regional development is necessary to
control all that social evils.

Suggestions for removing Regional disparities:-

1. Reviews of the problems:- Neutral evaluation is necessary for the problem of

regional disparities. The central government or state government both are required
to use any equal measurement to identify the level of regional disparity.
2. Arrangement of adequate capital: The central should sanction adequate funds to
the state govt. for the development of backward areas. A central govt. should take
its own initiative for the development of big projects in the identified area.
However, funding and other facilities are to be supplemented by the central
government to the state govt...
3. Special development Programme: separate development programme for each area
should be prepared on the basis of techno economic survey of the area. These
development programmes should integrate the project like use of technology in
agriculture, water conservation, food control, transport and telecommunications
etc. Social and institutional reforms should also be included in these programmes.
4. Establishment of industrial estates:Industrial estates should be developed to
remove regional disparities. New Industrial Infrastructure policy should be
formulated to enable the small towns to have big industrial estates. It will facilitate
the removal of regional disparities. At the initial stage, govt. Should provide all
support for the development of industrial estates.
5. Arrangement of integrated programmes: Integrated development programme
should be prepared for the development of village and small industries in backward
areas. All infrastructural facilities like Power, water supply, transport,
communication training institutes and finance etc are to be arranged by the state
govt.
6. Development of growing points: establishment of growing points is the best
incentives for industrial development in backward areas. This type of policy assures
the establishment of urban dwelling will encourage migration of labour from
neighbouring village to the cities for livelihood. It will reduce manufacturing or
construction costs and increases the inflow of income earned from cities for the
funding of rural development. It will also ensure new thoughts & new product
techniques for the development of rural areas.