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WELCOME

PRESENTATION ON ECONOMIC OPPORTUNITIES

FOR THE YOUTH AND YOUNG PEOPLE IN THE DRYLANDS

Presented by E. Venkat Ramanyya

Youth For ActionHyderabad , Andhra Pradesh , India

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StructuralSocio-Political

Economic

Why Youth / Young People Migrates?

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Structural Socio-Political Economic•Policies of delinkingmanufacturing sector to farming closed down (example: Spinning mills, Oil Federations, Agro-products,Leather & tiny industries. Light enlightening or consumer oriented engineering (shoes,spare parts)

•There is no role in decision making processes whether within a family or in any social structure.

•Natural calamities of droughts / floods, tsunami and climate change

•Economic reforms pushed urban growth & incomes of 35% of population

• Poor access to assets and credit

•Shrinkage and degradation of CPRs

• Livelihood / poverty reduction strategies have become the programmes for contractors or experience high corruption (Eg. Infrastructure, water or Employment Guarantee Programmes)

• Absence of emotional anchor (as rural society offers little support of counseling)• Slowly joint family structures are given away so is the land fragmented • Land reforms never been implemented properly • Social strife, conflicts and war.

• Degradation of land and vegetation and water

• Poor capital formation in agriculture sector• Poor infrastructure

Contd..

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Structural Social / Political Economic

Migration

Poverty

Unemployment

Lack of Health care

•The unemployment rate went up between 1993-94 to 2004. Unemployment rate for males increased from 5.6% to 9 % in rural areas, and from 6.7% to 8.1% in urban areas. Similarly, for females increased from 5.6% in 93-94 to 9.3% in 2004 in rural areas and from 10.5% to 11.7% in urban areas. Unemployment raised from 4.5% to 9.9% 2005 est)

•Migration population in Asian Region is 28.48%.

•Migrant population in India is 0.6% of total population

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Who migrates? – Expectations

Capacity to investWho is linked to network

(qualified , unskilled or semi-skilled)

• Better Life• Living standards• Income

Who does not enjoy any alternatives , poor resource base , war / conflict zone (uneducated & unskilled)

• Livelihood• employment• Social / Economic security

Qualified youth / young • Economic & social status• Brain drain

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Development initiatives : Regional instruments and Vision / ActionDomain Legal Instruments Vision / Action

a) Domestic / within country

• some labour laws• no restrictions• social conflicts ( local v/s migrants )

•Millennium Development Goals, especially Goal no:8 which says, Develop a global partnership for development of youth employment. •Chapter 25 of Agenda 21 of Earth Summit noted that young people should actively participate in relevant decision-making processes•Article 12(4) of UNFCCC shall be subject to the authority and guidance of the Conference of the Parties.• Article 12(5) states Emission reductions resulting from each project activity shall be certified by operational entities.• Article 13(2) of UNFCCC- Parties to the Convention that are not parties to this Protocol may participate as observers.

•NREP(National Rural Employment Programme)•PMRY (Prime Minister Rozgar Yojana)•Micro-Credit•LFWM(Linking Farmers With Markets)in China•Integrated Rural Development Program(IRDP) in China•Labor-intensive Public Works(LIPW) in Sub-Saharan Africa•De-Agrariansation and Rural Employment (DARE) research programme at the African Studies Center.

b) Government and Regional initiatives for migration

ECNR Act 1983• Bangladesh , Nepal , Sri lanka• SAFTA , SAARC , Economic Community of Central African States (CEAC) , Common market for Western and Southern Africa (COMESA)• East African Community (EAC)• ECOWAS(Economic Community of Central African states)

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We need to question ourselves?

• Whether the various initiatives both in rural and urban generating enough jobs for uneducated ; semi-skilled and educated youth/young people to curb migration?

• Whether the initiatives at the local level check the growing rural-urban divide?

• Whether the present national or international initiatives will check illegal migration and also social inequality and violence?

• Whether these initiatives are self-sustaining?

Unemployment raised in India from 4.5% to 9.9% during the year 2005-2006.

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Local Action in Dryland Economy(LAIDE)

• Capacity building , training and pilot programs

• Establishment of livelihood banks (on experimental basis)

• Establishment of National / Global Institute of youth

• Implementation of the international instruments such as Carbon Finance

• Establishment of Network of Friends in Youth Livelihoods (NFIYL)

• Implementation of projects like IDEA (Infrastructure Developmentand Employment Assistance) for rural youth.

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Pre-conditions• Skill education and capacity building

* Short-term & long-term training * Unskilled* Skilled* Highly skilled

• Access to micro-credit

• Access to need based technology

• Market linkage (corporate social responsibility) `

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Unskilled :: Knowledge – information and up-gradation of productive skills. Requires hands-on training approach.

Eg: Construction skills in Barbending, Masonry,Construction Carpentry,Plumbering andWiremen trade

• Cost of the training per candidate : Rs.4500

• Candidate Stipend per month is : Rs.1500

• Duration of the training : 3 months at L&T Construction SkillTrg.Institute, Chennai.

• Job guaranteed

Trainees at the Larsen and Toubro's construction skill training institute in Chennai

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Agricultural implements and Motor winding

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Economics / month (in Rs)

Income : 47,000

Less Recurring costs : 24,300

Gross profit : 22,700

Less Repayment of Micro-credit EMI : 2,687

(Principal + Interest)

Net Profit per month : 20,013

As there are 5 members in a group, each

Member will carry a net profit : 4,002 / month

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Value added products (Raagi/Mango Jelly)

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Agro-processing products (Raagi/Mango Jelly)

• Cluster of 15 young people for 1 group

Investment : Rs.25000• Details of Micro-credit

: Rs.25000 • Net profit: Rs.1200 x 12 =

Rs.14400/per member/per annum

RAAGI

• Cluster of 15 young people for 1 group

Investment :Rs.75000+15000 = Rs.90000

• Details of Micro-credit Rs.90000

• Annual Income : Rs.40000

MANGO JELLY

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Organic Farming

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Organic FarmingCrops involved : Only vegetablesCluster of 30 farmers in 6 groupsAn amount of Rs.25,000 per group has been given as micro credit towards input costEach group undertakes in an area of 2.0 ha of vegetables (commonly grown are Tomato, Ladies finger and Brinjal)• Cost of cultivation per ha : Rs.13,300• Total cost of cultivation for 2 ha : Rs.26,600• Yield per ha : 700 quintals• Price per quintal : Rs.600• Gross Income : Rs.42,000• Less loan principal : Rs.25,000• Less interest on micro-credit : Rs.938• Net benefit per ha : Rs.16,062• Net benefits to group will be : Rs.32,124• Net benefits to group of 5 members : Rs.6,425

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Seed Production (5ha)

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Seed Production (5 ha)• A group of 5 trained young farmers have undertaken

Groundnut seed production activity on 5ha of land

• They have been given Micro-credit of Rs.50,000

• Cost of cultivation per ha : Rs.10,800

• Total cost of cultivation of 5 ha:Rs.10,800 x 5 = Rs.54,000

Contd..

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• Yield & Returns – for 5 haSeed yield (Kg) : 4000 kgsPrice of seed sales : Rs.35/kgGross returns on seed : Rs.1,40,000.00Less investment : Rs. 54,000.00 Net profit : Rs. 86,000.00Less repayment of Micro creditinclusive of interest @ 15% : Rs. 55,775.00

Net income : Rs.30,225.00/cycle

Seed production (Contd..)

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•Jatropha cultivation can generate an income of Rs.25,000 (520.83 US$ per ha in a year:)

•Fixation of upto 10 tonnes / ha /year of CO2 will benefit international carbon trade

•Production of 1 tonne / ha / year of high protein seed cake (60% crude protein) can be potentially used for animal and fish feeds, and organic matter could be used as organic fertilizer particularly in remote areas.

Jatropha Curcas

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Semi-skilledTraining in

Basic Skills, Construction of Small Leather goods, Handbags, Luggage,

Pattern Making & Design. Cut edge & Turned EdgeWork will be included as well as Hand & Machine Sewing.identifying new approaches and business potential and relevant skills

Cost of Training per candidate is Rs.3000 Duration : 2 months at Central Leather Research Institute (CLRI), Chennai.

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Rural Internet KioskSRI SAI TRUPTHI RURAL KIOSK CENTRE

AN INITIATIVE OF YOUTH FOR ACTION (YFA)KANIMETTA (VILLAGE)

MEHABOOB NAGAR DISTRICTANDHRAPRADESH, INDIA

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Rural Internet Kiosk• Information technology and data management• Training of young people in the period of 30-90 days for

certificate course: a) Basics of Computers and its usesb) Awareness of Internet and its uses

• 6 to 9 months course for specialization(Advanced concepts of computers and its uses such as MS-WORD, MS-EXCEL, MS-ACCESS, MS-POWERPOINT)

• Each kiosk was given Rs.40,000 as Micro credit• Each kiosk is managed by 5-8 young people. They mobilize

job works from Banks, weather information to farmers, running courses for youth, internet and entertainment for children and local users through local language films

• Income per annum : Rs.84,000 / kiosk

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Tailoring and Fashion Designing

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Tailoring and Fashion Designing

• Investment is about Rs.50,000 (raw materials, machines and skilled wages)

• Women cooperative approach

• Each co-operative will have 10 young women

• Providing of Micro-credit Rs.50,000 per co-operative

• Income per annum : Rs.14,400 / member

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Highly skilled Professional as well as

Technical advanced long-term courses, which can guarantee the job.

Eg: NIIT Training forprocuring employment in BPOs/ Information Technology

Cost of Training per candidate is : Rs.4000 Duration of the training : 2 months

Job guaranteed

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Agri-Business Management• Develop adequate conceptual base in

different subject areas of relevance

• Acquire sufficient operating skills in using modern management tools and techniques in different functional areas

• Develop application skills of management techniques appropriate in the unique context of agribusiness.

• Orientation on location specific crop production technologies of broad based agriculture and specific package of practices related to field problems.

• To impart the knowledge about the laws governing regulation of Agricultural Inputs

• To make them effective source of farm information at village level

• Cost of the training per candidate is Rs.27,000

• Duration of the Programme is 1 year at MANAGE, Hyderabad.

Agribusiness management encompasses many aspects of the economy: agricultural producers, businesses that provide supplies and services to the producers (including cooperatives), businesses that add value to agricultural products, and those that facilitate the marketing of agricultural products to an ever-growing marketplace.

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Infrastructure Development and Employment Assistance (IDEA) for rural youth and young of the semi-skilled

and educated

• Investment per youth will be around Rs.7500 for a population of at least 1 lakh.

• Quality Roads• Transportation• Light engineering /• Information Technology • Agro-processing,• Education, health care, water supply ,

electricity, communications, housing and entertainment.

• It would create non-farm jobs including jobs in related service sector

Location• Near to the highways within 5 kms radius• Rural hinterlands• Access to market• Access to technical institutions

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Partnership Processes at the national level

• Corporate sectors like Microsoft, IBM can provide work as well as employment.

• Consumer oriented light engineering products• Agro processing (Ragi-malt, mango jelly)• Rural kiosks• Plantations (Jatropha / Pongamia)• Private-private, public-private people’s

cooperation for carbon credits and carbon finance

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Thank You !