Situational analysis: Natural resources

Thursday, 1st June 2006

Land is essential for the livelihoods of many of the poorest groups in India, it has enormous economic, social and spiritual significance.

Over the last two centuries, tribal communities have been disproportionately affected by the loss of access to and ownership of land and natural resources including the forests.

Lack of access to land and ownership over land and other natural resources means that the tribal, dalit and other rural poor are deprived of their main sources of livelihood security which is an important factor explaining their high levels of poverty.

The forest represents an important resource for many rural people, but particularly the ST. Traditionally the forest has provided much of the fuel and fodder requirements of communities, many of whom are dependent on the forest resources to meet their livelihood needs.

It is estimated in India that over 100 million people are partially or wholly dependent on forest resources for their livelihood.

Recently, due to Government policies, they have been termed as encroachers of forestland and the Government has been trying to evict them; this has meant that the forest, which was an important livelihood option for many people, is now closed to them, reducing further their livelihood options.

Orissa is primarily an agrarian economy, with up to 80% of the population engaged in agriculture, and contributing nearly 30% to the State Domestic Product (NSDP).

The rural population still predominantly depends on agriculture and allied activities as their main source of income.

Although agriculture is the dominant sector in Orissa, it has been largely neglected over the years.

Over the last two to three decades there has been stagnation in agricultural productivity; although area coverage increased, yield and production of food grains have not increased substantially.

On top of this the allocation for the sector has decreased from 8.56% of total expenditure in 2002/03 to an estimated 6.53% in 2006/07.

Minerals are an important non-renewable natural resource of Orissa. The extraction of mineral resources is both an economic asset for the state as well as a massive development challenge.

As the state pursues its policy of widespread industrialisation, it is likely that this will lead to widespread displacement and resettlement of tribal peoples from the source of their livelihoods, as well as increasing the possibility of deforestation and environmental degradation.

The Government record of providing adequate compensation is woeful and potential benefits in employment opportunities are few.

How this can be managed in a way that ensures the benefits of
industrialisation are felt not only in increased state revenues, but increased opportunities and livelihood security for poor and vulnerable peoples must be addressed.

Concern India country strategy 2006 - 2011: Contents