Welcome to the February 2010 edition of ‘REEDS NEWS’.

Union Budget 2010-11, is presented by Minister of Finance on February 26, 2010 to the Parliament claimed by himself as the ‘Budget belongs to 'Aam Aadmi'. It is commendable to note that considerable increase in allocations have been made in the budget for the social sector that stands at Rs.1,37,674 crores or 37% of the total plan outlay in 2010-11.

For the massive improvements that are needed in this sector, whether the allocation in the current Budget is adequate or not, though debatable, as Mr. Mukherjee himself pointed out that, one of the challenge that is being faced is the weaknesses in systems, structures and institutions at different levels of governance and the bottleneck in public delivery mechanisms, towards achieving planned inclusive development.

Having done by the Government whatever it can, it is the turn of other stake holders to pursue the imparted thrust to achieve the desired objectives within indicated time frames towards making economic growth more inclusive.

The challenges, however, in this regard are significant and substantial. There is a wide gap between the preferred futures and the current realities of India as a developing economy, where 72.2% of 1027 million live in 600,000 villages with poor or no infrastructure and where informal economies define day to day life for most of the population.

Improved access to basic education and skills empowerment are some of the essential steps on the path to becoming successful economy. Given the changing nature of the economy, which is increasingly becoming service oriented, the challenge of reform is not just to increase access but also to change the nature and improve the quality of learning so that they address economy objectives.

But how to do this, when resources are limited, poverty is widespread, informal economies are extensive, public delivery mechanisms are obstructive, is the fundamental challenge! New paradigms, new directions and strategic visions are required to achieve the desired inclusive development. Let us also do some thinking on this!

Ravi K Reddy, March 13, 2010

There have been many developments since last communication on the International Working Conference on Life skills & Livelihood skills - Challenges for Institutional Development, supported and being hosted by REEDS. There is a general appreciation on the concept. It is recognized as timely, comprehensive and ambitious. Website www.skills2010.org hosted in this regard and is growing. Please do visit the same for updates. Many distinguished and talented personalities have consented to be on the Advisory Committee of the event. Yet, there is a long distance to go within the limited time available. We would look forward for your valuable inputs, support and goodwill for making the conference a successful, interesting and productive event.

Some of the Highlights of Indian Union Budget 2010-11 which the Finance Minister considers would make the development more inclusive:

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A common question that needs to be addressed in Development. What comes first? Livelihood training or Literacy Skills? Both proponents have arguments going for them. Lakhs of people are deprived of livelihood and with marginal training, their incomes and quality of living will vastly improve. As economic prosperity goes up, so does the demand for quality goods and services. This demand fuels the need for better production techniques, alignment to technological trends, good manufacturing and agricultural practices etc., All this can be delivered by the present work force with better livelihood training. The unorganized work force in India is one of the largest in the world. These workers are waiting to be trained both to improve their lives and also to meet the demands of the society. This is a gap that needs to be filled urgently.

There is the other argument that literacy skills should receive primary attention from society and improving literacy skills should take precedence over livelihood training. Developing an ethos for improving literacy skills throughout the nation also increases the basic character of the nation that is trained to respect its children and value their time by sending them to schools. This should not be denied at any cost and anything else can wait. Vocational skills as demanded are not complex skills which cannot be learnt after the age of 14, especially can be learnt easily if they are also literate. More often than not, under the garb of training for livelihood skills, children end up doing manual labour.

It should be possible to do both in parallel, each learning from the other. Maybe a strategy of starting on livelihood skills after the age of 12 by which time there is hopefully sufficient exposure to the child on literacy skills will do the trick. This will ensure that the child is not deprived of vital early schooling years.



March 13, 2010