The Constitution of India has made provision for the holistic development of the marginalised sections such as SCs, STs, OBCs, minorities and others because of their historical social, educational and economic backwardness. Reservation apart, there are exclusive National Finance Development Corporations for SCs, STs, OBCs and minorities with paid-up capital for economic activities, targeting generation of self-employment among these social groups.
These institutions are the National Scheduled Castes Financial Development Corporation (1989), National Safai Karmachari Financial Development Corporation (1997), National Scheduled Tribe Financial Development Corporation (1989), National Backward Classes Finance Development Corporation (1992) and National Minorities Development and Finance Corporation (1994).
These institutions have been mobilising finance from Government and private sources and are operating through State channelizing agencies to finance various activities such as business, trade, transport, micro finance and most importantly professional job- oriented education at low interest. The Central Government has also made provisions of reservation in public contract, departmental purchase, dealer and distributorship and has set up venture capitals for promoting business among these social groups. The institutions have been operating through State channelising agencies for almost last three decades.
In the context of inclusive development of Odisha, the obvious question is how effectively these institutions are functioning in State of Odisha? Their recent annual reports have projected a very poor performance. Ideally, the State must have to utilise all available Central schemes under these institutions but in reality the State has failed in implementing the schemes for the benefit of the poorer sections. Many States such as Kerala, TN and Nagaland have more channelising agencies and several have exclusive financial agencies for specific social groups but Odisha has no such arrangement.
Unfortunately, Odisha’s routing agencies have been almost ineffective in terms of allocation of matching funds and reaching out to the targeted beneficiaries of the schemes.
The issues are not being discussed in proper forums without a proper review. The State has been losing its due share from the Centre which is affecting the development of the State, especially its marginalized sections.
The State channelizing agencies are almost non-functional without adequate budget, staff and dedicated leadership to carry forward the mission of the institute. The departmental officials going there in deputation with additional responsibility have no role and are functioning most ineffectively without accountability. The performances of the institutions have not been reviewed regularly.
Many of the Central sponsored schemes are not being implemented without any accountability. It has been happening due to lack of political will of ruling parties and bureaucratic apathy and above all, lack of awareness among people and beneficiaries of schemes.
It is time that the State Government must come up with a policy for business to make it inclusive of all social groups. The rights over equal opportunity in matter of public employment also attract the role of Government in ensuring self-employment for all sections of social groups in accessing scope of employment in business sector too.
Business is one of the largest sectors of self -employment of our economy but for many historical reasons and continued discriminatory socio-religious systems, a number of social groups are not able to thrive in the sector.
They were historically denied rights over land, education, capital and access to business. The business sector is the monopoly of a few dominant classes.
Access to credit is an important economic right of every individual without which economic development especially self-employment and entrepreneurial promotion is not possible.
In terms of financial service, Odisha is very poor with less number of bank branches in providing banking service to all. There has been no effort by the State to promote financial literacy and banks are violating Reserve Bank guidelines while dealing with marginalized section borrowers. Bank officials are discriminating against the customers of marginalised communities. The subsidy money provided by the Government through banks is not reaching to the beneficiaries in time.
The lopsided development of past few decades have already resulted in growing penury among the people dependent on primary sector, besides distress migration, unemployment and chronic poverty. The business, mines and industries in the State have created jobless growth and whatever employment opportunity has been created, it is being monopolised by a few privileged sections without having a fair share for the marginalised. The nature of unemployment varies from region to region and also is different among economic classes and social groups of the State because of huge regional, social, caste and gender disparities.
The State Government reported in 2019 in the Assembly that 1, 31,000 Government jobs were lying vacant in the State. The 2011 census on household with salaried jobs says only 0.20 per cent of SC and 0.12 per cent of ST households in the State have salaried jobs in private sector.
The self –employment initiative has emerged as one of major options to counter growing huge unemployments while improving the marginalised sections’ participation in business.
It is expected that the Government of Odisha will provide adequate financial support to upcoming entrepreneurs by taking a proactive role.