FE Editorial : KBK puzzle

The Finacial Express, May 18, 2010
The Prime Minister’s reported decision to order a revaluation of the KBK assistance plan, which tried to put in place policies and programmes to remove the barriers to growth in the poorest districts of Orissa, and assess the impact of this package on the ground before committing new resources, is timely. This programme was launched more than a decade and a half ago and focused on drought-proofing and providing livelihood support, connectivity, health and education as per the local priorities. Its success and failures offer valuable lessons to the UPA government that remains committed to spending on the social sector and rural development. The KBK region refers to the three districts of Kalahandi, Bolangir and Koraput—which were later split up into 8 districts in the highland region of the state comprising 80 blocks, 1,171 gram panchayats and 12,104 villages—and accounts for 30.6% of the geographical area of the state and one-fifth of the population. The long-term action plan, first drawn up for the seven-year period from 1995-96 to 2001-02 and launched by the Prime Minister, by pooling available resources and integrating them scientifically, was later replaced by a revised long-term action plan by pooling the funds and activities of both central and state governments, together spending Rs 6,252 crore between 1998-99 to 2006-07.


A 2007 study shows that the execution of the action plan has led to the construction of 440-seated residential hostels for SC and ST girls, 330 anganwadi centre buildings, 47 veterinary hospitals, 74 livestock aid centres, 14,000 wells, 111 reservoirs and 12 warehouses. Further, 266 line roads have been improved and 407 culverts and 44 bridges have been constructed. To improve farm productivity, 314 watershed projects were taken up, 50,415 acres of land treated, and 23 agro service centres and 58 additional agriculture sale centres set up. In the social sector, the benefits include annual pre-matriculation scholarships to 16,000 girl students, emergency feeding programmes for 2 lakh infirm persons, special nutrition programmes for 9.42 lakh children and the introduction of 90 mobile health units. Despite these gains, the KBK region obviously continues to lag behind the rest of the state in literacy, enrolment rates, agriculture productivity and the social attainments of the SC and ST population. So much more clearly needs to be done. But it is always a good idea to do a thorough evaluation of money spent and outcomes before the government commits more funds to this deprived region....