Social Welfare Model of Rural Development 1

NJDRS
Social Welfare Model of Rural Development
CDRD
Bharat Prasad Badal, PhD
Lecturer, Central Department of Rural Development
Email for correspondence: bpb@yahoo.com

Abstract
After analyzing the balanced growth unbalanced growth, unlimited supply of laborer,
transformation of traditional agriculture and social choice theories as well as Gandhian model
of rural development, US market model economy, Chinese socialist’s economy, Korean model
of rural development (Saemual Undong), mix welfare model of Sweden, this paper emphasizes
that people’s participation is inevitable to achieve desired development goals. However, all
these doctrines, theories or model have identified active participation of the people in
development process but still those doctrines are silent about how to emancipate and mobilize
people. Here is why, this paper has designed and developed social welfare model of Rural
Development (SWMRD) based on Sen’s social choice theory, Gandhian model of rural
development and doctrine of factors of production of economics. According to the model people
have to make plan of their resources for sustainable economic return and its implementation.
Government has to assure freedom, human right, motivation and protection. Hence, SWMRD
model will be applicable on development studies and useful to development policy makers.
Key words: Development, development model, rural development and social welfare model of
rural development.
Background
Development is people’s dream of better life. To fulfill one’s dream he or she has to work to make
it real. It is not the issue of vision or propaganda of political leaders or simply economic issue.
Development is a process to understand, where you are and where you want to go. Human beings
are different than other biological animal can change the world if he or she is able to mobilize the
available resources with human factors. Napoleon, Hitlar or Mahatma Gandhi they were simple
human being and able to mobilize other human factor to win the battle. Development is also a kind
of battle against poverty and dishonesty among people. Simply honesty is the base of sustainable
development. Therefore, people’s unity over a dream and action to make it real honestly is
development. Government may not be able to reach every nook and corner of people due to its
big bureaucratic systems where as market is reluctant to go rural areas. At this critical situation
we need neighbors, and neighbor’s unity to overcome the situation. It means development
practitioners must be able to make a strong people’s organization with development dream and
plan. So, people will be united for a common goal and achieve that goal with common efforts
for common benefit. Social people will be united socially for social welfare officially. These
official organizations could be Non-Governmental, not for profit, community-based
organizations as civil society.
Non-Governmental Organizations, Civil Society Organizations or Community based
Social Welfare Organizations are partner of development that has direct access to the people,
resources and government, but they are not free from criticisms that they have to prove
accountability and transparency on their every projects and functions (Shrestha, 2009). The state

Nepalese Journal
ISSN: 2392 - 4403ofxDevelopment and Rural
(Print)/© NJDRS: CDRD,Studies,
2017 14 (1&2), 2017
2 B. P. Badal

led development strategy can play positive and efficient role in macro level development of a
country, but state’s effort alone is not sufficient for micro level development of a country. On the
other hand market led development strategy is getting popular, it focuses on the involvement of the
private party in development that is not sufficient either in the accelerating growth or in alleviating
poverty of mass people in rural areas of developing country. But private sector does not go for
social work or non profitable area. The need of present time is “People Centered” development
approach which focuses peoples’ need and problem including voice of backward, marginalized,
underdeveloped and socially excluded people (Shrestha, 2009). Thus macro level development as
devised by Nehruvian sociology that state can do. Market led development seeks profit so hardly
the capitalists or investors go to the poor. Thus, SWOs (Social Welfare Organizations) -led
development approach is the best suitable development strategy.
Balance Growth theory of Rosenstein Rodan and Ragnar Nurkse
The main proposition of balanced growth is that there should be simultaneous as well as
harmonious development of all sectors through investment that can bring about balance in demand
and supply, balance between domestic and international trade, balance among sectors and balance
between socio- economic overheads. Nurkse adds underdeveloped countries are engulfed in
serious vicious circle of poverty so the cases for balanced growth rest on the need for a balance
diet. To cure the underdeveloped economy’s vicious circle there should be huge investment in
every sector. The economy has to expand market. Private sector is an engine of development while
government is driver’s seat of engine (Luintel & Pokhrel, 2011). Many economists have criticized
the theory in different way. The theory is prematurely devised but it has given some burning issues
on development discourses. The most critical aspect is the theory has not spoken a single word of
SWO- Led development approaches. It has not addressed the role of civil society and third sector
of development.
Lewis’ Theory of Unlimited Supply of Labour
This model emphasis that labor is an engine of development as well as real source of
wealth. It has divided the economy in two sectors as subsistence sector and capitalist sector. The
subsistence sector is that part of the economy, which does not use reproducible capital, and
capitalist sector is that part of the economy, which does use the reproducible capital. The farmers,
the casuals, the petty traders, the retainers, the women in the households and the population
growths are the sources of unlimited supply of laborer. The production in expanding capitalist
sector takes place according to principle of profit maximization. The per capita output in
subsistence sector is smaller than capital sector. The expansion of capitalists sector is depended on
subsistence sector. In this school of economic thought, capital and natural resources are highly
scares in relation to population. Lewis had clearly mentioned the role of state, private capitalists,
savings and bank credit (Luintel & Pokhrel, 2011). The statements show that the model is also
highly criticized anyway it has emphasized the role of subsistence sector. Probably the subsistence
sector signifies poor underdeveloped rural section of the economy. However, it has not given any
space for the third sector of development. It has completely ignored the social aspect of human
development. Subsistence sector should be encouraged, motivated and mobilized by the civil
society but the theory has not given any value to the sector.
Unbalanced Growth Theory
Unbalanced growth theory was propounded by Hirschman, Singer, Rostow, Kindleberger,
Streenten with the main theme that the investment should be made in some selected sector rather

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 Social Welfare Model of Rural Development 3
than simultaneously in all sectors of the economy. Prof. Hirschman in his book, “Strategy of
Economic Development” the best strategy of development is the creation of imbalance in the
economy. Since it is observed that disequilibrium constitute a major step for the progress of the
economy as is evidenced by the historical example found in the currently developed countries of
the world. Development is a chain of disequilibria that must keep alive rather than eliminate the
disequilibrium of which profits and losses are symptoms in a competitive market economy. If
economy is to keep moving ahead, the task of development policy is to maintain tensions,
misappropriations and disequilibria. Similarly, Benjamin Higgins says, “deliberate unbalancing of
the economy in according with a pre designed strategy is the best way to achieve the economic
growth”. Thus under the imbalanced growth under developed country has to invest continuously
on same selected leading sectors. The series of investment can be classified in to two parts as a.
convergent series of investment on directly productive area through the investment as capital and
profit maximization, divergent series of investment as social overhead capital that the government
has to invest is selected areas (Luintel & Pokhrel, 2011). Thus, this theory also has not addressed
the social philanthropic movement and social welfare mode of development.
T. Schultz’s Transformation of Traditional Agriculture
According to noble Laureate Ted Schultz (1902- 1989), agriculture sector is an engine of
economic development. The contribution of agriculture to economic development lies in:
providing more food to the rapidly expanding population, providing raw materials to the industrial
sector to import capital goods for the development through the increase of agriculture exports, to
increase rural income, providing productive employment and improving the welfare of the mass
people etc. Farming based on the kinds of factors of production that have been used by farmers for
generation can be called traditional agriculture but it is in the agriculture sector that the better for
long-term economic development. Will be lost or won. However, transformation problem is an
investment problem. Once there are investment opportunities and efficient intensives, farmers will
turn sand into gold. Schultz has also emphasized on investment on human capital that we can
develop human resources by learning from experience on the job training and schooling (Kunwar,
2010). This theory has identified human capital, which is most significant in humanity. It has
stressed on human resource development but it has not devised the social tools. It has not
addressed the human social organization and their significant contribution on development.
Amaratya Sen’s Social Choice Theory
Sen is the first Indian born in 1933 who won the Nobel Prize for economics in 1998 for
“an ethical dimension” to the discussion of vital economic problems by combining tools from
economics and philosophy. The prize recognized his contribution in the field of social choice
theory, welfare economics and economic measurement. His contribution is to make inroads into
the assessment of poverty and the evaluation of inequality making possible better social welfare
comparisons and changing the way governments prevent and combat famines he had addressed the
mean and end of social development is freedom. In democracy information, spread quickly and
public criticism comes more easily, making a quick response by the government to extreme event
essentials. He opines that social choice theory helps as think more clearly about the meaning of
democracy (Kunwar, 2010). The social choice theory advocates the social consequences of the
economy and it assumes that democracy is the solution of the entire economic problem but his

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4 B. P. Badal

theory is not applicable in uneducated poor community. India, a great democracy in south Asia is
herself suffering from underdevelopment. On the other hand, the theory has not contributed in the
third sector of economy although he has emphasized on welfare economics and poverty
measurement that is very positive praise worthy academic contribution.
Gandhian Model
The Gandhian view of development is radically different from western model of development.
It was based on metaphysical idealism with emphasis on the supremacy of ethical values and
moral approaches to the development. It was a plan of political, social and moral reconstruction.
The Gandhian model of rural development is a holistic and people centered. It is rooted in his
convictions and ideology in tenants of truth, non-violence and goodness of human being with six
basic values
 Real India (South Asia) is found not in its cities but in its villages;
 The revival of village is possible by elimination of exploitation of city dwellers is as violence;
 Simple living and high thinking, voluntary reduction of materialistic wants and pursuit of
moral and spiritual principles of life is the way of eternity and other happiness;
 Avoiding mechanization for the dignity of labor so that they can earn bread by their physical
labor;
 Performance to use of indigenous products (Khadi, Charkha, swadeshi maal), services (Sewa,
Dharma, non-violence, truths, humanism) and institution (panchayati swaraj, trusteeship,
organization) are most essential and
 There must be good balance between means and ends (Singh, 2009).
Gandhi himself declared Gandhism is no ism, it is only ideology of stateless democracy
and he was not a political thinker but a religious minded man who respects for manual labor
(Marahatta, 2001). Thus, the model is not systematically developed further more in the opinion of
Gandhi, development based on economics and economics alone is no real development. By
adopting, an economic growth oriented development path and by following western models of
industrialization both under the influence of Jawahalal Nehru, India had abandoned the Gandhian
model long ago (Singh, 2009). In such a way, one of the best models of rural development was
intentionally ignored and abandoned. Thus, this model was not able to enter as a theory in
academia. It is more spiritual than realistic so this model must be developed and modified but the
model has advocated reducing the greed and material wants in economy. It has imagined the
stateless democracy that completely avoids the role of state in socio economic development. For
me, all these theories have not given any substantial space of civil society in economy as
academias have respected the importance of civil society organization in economic development.
Discussions over Development Models versus Civil Society
Rural development is a multifaceted, versatile and multidimensional endeavor. It has
different goals and multiplicity of measuring rods to asses it. When there is high expenditure on
civic amenities and facilities, we have development. If schools, universities, hospitals, drainage,
roads, parks etc are constructed in the villages. Then there is real development that all these things
contribute to the well being and welfare of the rural people (Singh, 2009). Thus rural development
is multi dimensional approach for the well being and welfare of rural people so different country
have adopted different approaches and strategies to meet their goals of rural development. USA

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 Social Welfare Model of Rural Development 5
developed based on a free trade capitalist economy that is market economy. Soviet Union and
China developed by diametrically opposed strategy of socialists’ ideology of public ownership of
property. Sweden adopted a third strategy by combining capitalists and socialist element to create
a mixed or welfare economy (Jha & Jha, 2008) . Thus, there are three basic model of economic
development they are Market Model, Socialists’ Model and Mixed or Welfare Model.
Market Model
Adam Smith as a self-regulating economy of civil society advised the market Model. It
has potential for achieving maximum benefits for all members of society. Here development
proceeds without any central direction. It is completely open free market of capitalists’ economy.
It seeks perfect competition market, freedom and democracy only with profit motive. Prof. J.
Patric Gunning from Fen Chai University of Tiwan says, “The market economy is an abstract
image of interaction among purposeful, normal human beings or actors, under a given set of
conditions. To act purposefully means to have wants and to choose to behave in a way that you
believe will satisfy those wants. There are four conditions of the market economy (i. e. a system of
private property right, specialization, the use of money and free enterprise). The marketability of
an item and its acceptance as money depends on people’s expectation that they can exchange this
item for valuable goods in the future. The roles of market economy are as it is a resource supplier,
producer and consumer”.
The French economist J.B. Say in 19th century has propounded the Say’s law of Market.
That says, “Supply creates its own demand” that mass production creates its own supply with the
assumptions as there is no government intervention, the size of market should be capable of
expansion, savings are automatically invested, free flow of income and long run operation (Dewett
& Chand, 1997). Still in the present 21st century people, claim the essence of market economy that
still the capitalists concept of market has not been changed. The liberalization, open economy,
globalization, deregularization, transformation of the state, decentralization, market economy,
market mechanisms, pricing system and privatization are some of the process that have brought
new opportunities but also substantiated risks and burden to rural population (Kunwar, 2010).
Therefore, being immense importance of freedom and democracy the market model of
development is not sufficient itself. Market is also an element of civil society but economists have
to prove it. Market as a place, or as a process the main actors are the people and people’s
organization is civil society. This model is completely incomplete.
Korean Model of Rural Development (Saemual Undong)
Democratic republic South Korea was established in 1948 with presidential system
consisting 16 administrative divisions. The economy is export driven, with production focusing an
electronics, automobiles, ships, machineries, petro chemicals and robotics. During the last 25
years, there has been a dramatic reduction of poverty. In 1971, Korean President Park Chung Hee
introduced a new model of rural community development. Before that, Korea was one of the least
developed countries. It had three years war with north and that had destroyed lives, industrial
facilities and even agricultural production bases. In 1961, GDP per capita was only 81 USD.
Korean economy has changed dramatically since 1962, when the first five-year economic
development plan lunched (Kunwar, 2010). These statements show good plan and programme can
bring the substantial change very soon. Saemual Undong was a new village development program.

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6 B. P. Badal

At the initial stage, the government provided some materials with financial subsidies to the
community people and asked to do something with the subsidy. Government asked the community
people to decide what they want to do and to formulate action plan and implement the action plan
by community people.
Korean rural community as most other Asian countries have to solve community needs by
themselves such as providing primary education facilities, community hall, village roads irrigation
system etc. Saemual Undong in Korea is one of the best practices on rural community
development, which is replicable for community development in developing countries. Saemual
Undong is a community movement to bring spiritual enlightment and betterment of living
conditions of people and community in the ways of self-help and operation among community
people under the government sponsorship. It is based on the social mechanism of autonomy of the
village community, expecting the village people working together in the way of cooperation and
self-help for the betterment of village community. Korean model of rural development Saemual
Undong has the characteristics as follows. It focuses on community development as a whole. It is
operated with community operational mechanism. It takes government-initiating bottom up
approach and integrated approach. It is a nationwide campaign to improve community and
governance system between community people and local government (Kunwar, 2010). One of the
market model economies with a tangible government’s intervention in community development is
democratic republic Korea. Thus, the model proves the government’s assistance in community
development is very essential. Similarly, people’s participation in local governance is most
important. Being a capitalist market oriented economy it has adopted people centered development
approach but it has not given any emphasis on people’ community based organizations although, it
was successful only with the community participation. Thus community based SWO-led
development approach has great significance.
Socialists Model
The Marxist model that Soviet Union, Cuba, North Korea, and China have followed is
state based socialistic model. It is based upon the public ownership of means of production and
centralization of all sectors of the economy. A central authority or government controls market
internally and externally to make all economic decisions. Social welfare is determined by central
planning. This model may be called communist state, Marxist state, Leninist state, Stalinist state,
Maoists state and many more. Humphery says “Socialism is a system of society in which means of
life belongs to community as a whole and are developed and operated by the community with the
aims of promoting general wellbeing”. Hugan says, “Socialism is a political movement of the
working class which aims to abolish exploitation by means of the collective ownership and
democratic management of the basic instrument of production and distribution” Emile says
“Socialism means the organization of workers for the conquest of political power for the purpose
of transforming capitalist property into social property. Indian Leader Jai Prakash Narain says,
“Socialism is a society in which all are workers of a class less society. It is a society in which
human labor is not subjected to exploitation with interest of private property, in which all wealth is
true national or common wealth, in which there are no unearned incomes and no large income
disparities and in which human life and progress are planned and where all live” (Dahal, 2005). In
this way in Marxist economy, economy is the horse and politics is the cart. The horse always pulls

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 Social Welfare Model of Rural Development 7
the cart back. The theory says the economy first but in practice politics forms the government and
government governs the economy. Lenin says Imperialism is the highest stage of Capitalism.
Leninism is Marxism in the epoch of imperialism and the proletariat revolution. All these words
some time make serious confusions.
Chinese Model of Development (Reforms of Deng Xiau Ping)
After the dissolution of USSR, Peoples’ Republic China is representing the second pole
of socialists’ polity. As being, a communist state Chinese development is also influenced by the
historical, political, and cultural context in which its economic development has occurred. The
political events, in leading up to china’s decision in 1978 to begin to its economic reforms and the
way in which Deng Xiao Ping crafted its new development path. The subsequent extension of
Deng’s development policies by more recent leader of the Chinese communist party has significant
roles. Indicators of Chinese economic progress including its increasing economic openness since
1978 are given and its emerging economic issues and concerns are highlighted (Tisdell, 2009).
Thus, Deng Xiau Ping was the charismatic bold leader who determined the new economic policy
and now china is the second largest economy. Since 1978, China has experienced extra ordinary
institutional change that has proven to be effective in promoting its economic growth and is
advancing its international status. It has achieved institutional change in a steady systematic and
stayed manner. This is as altered its economic system substantially but its political system has
hardly altered. It remains a one party state, which relies heavily on guidance of the leadership of
the communist party for its direction. Institutional economic developments of a nation require
simultaneous actions on political social and economic settings. Since 1978, the government of
China has played very active role in its institutional reforms. Thus, political events have influenced
the development of china since last 30 years. The purpose of china’s reform was said to be develop
socialism with Chinese characteristics. Because of these reforms, china’s economy has changed
from an economy in which market force played virtually no role in organizing economic activity
but one in which these forces play a major role. (Tisdell, 2009). Thus, china has injected liberal
market economy in the name of Chinese characteristics in its polity.
As closed communist country china, do not have any special policies to enter modern
NGOs. China provides an excellent example of how a rural development strategy focusing on rural
industrialization can bring about significant, and mostly positive, change not only in the lives of
rural people but also in the structure of the rural economy. China’s rural enterprises, widely known
as township and Village Enterprises (TVEs) have remarkably contributed to economic growth,
rural development and institutional transformation. The Chinese experience is an important area of
investigation largely because the huge participation in rural industrialization by rural people
resulted in a diversified industrialization over a quarter century. This makes the features of
industrialization in China quite successful and different from those of other countries. All such
organizations are NGOs, civil society, or peoples’ association they had played a significant role in
rural development but they are ignored.

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8 B. P. Badal

The Mixed Welfare Model

Welfare state stands against the police state of western capitalists’ free world. Dr. Mark
Abraham says, “A welfare state is a community where state’s power is deliberately used to modify
the normal play of economic forces so as to obtain a more equal distribution of income for every
citizen”. Nehru says, “The fundamentals of a welfare state are equal opportunities for all and
raising the standard of living”. Hobman says, “A welfare state is a compromise between
communism and uncontrolled individualism” (Dahal, 2005). Thus, welfare model is mixed hybrid
model designed in between the market and state model ideology. Almost all the countries have
some degree of mixed model of development either capitalists or communists. Probably after the
downfall of USSR, this model got the space on capitalists’ western countries. The model specifies
the role of market and state to determine the economy.
Among these three models, it has not fixed the social philanthropic roles. None of these
theories or model has included the role of civil society in their contribution. The successful cases
are also become successful only with the immense support of grassroots people in different forms
and associations. People’s organizations like, community forestry program of Nepal, Amual Diary
Cooperatives of India, education for nomadic tribes- Van Gujjars in New journey of India,
Grameen bank of Bangladesh, Aga khan rural support of Pakistan, Saving and credit cooperative
Movement (SANASA) of Sri Lanka, Farmers organization Gal Oya of Sri Lanka etc., are
successful program based on people’s NGO led development approach (Kunwar, 2010). All these
programs prove that I/NGOs are absolute, concrete partner of rural development.
The Model
A model is coherent scientific arrangement and analysis of facts of a system. Normally
system identification of a phenomenon is model building. From the lack of social factors within
the specified development model, I am simply identifying a system in between state and market.
Equation
RD = D of (LR) (Rural Development is Development of Local Resources)
= D of (NR+ HR+OR) {LR = Natural + Human + Other (Resources)}
Where RD = Rural Development, D= development, LR = Local Resources, NR= Natural
Resources, HR= Human Resources, and OR = Other Resources
Assumptions
a. Rural Development is the development of local resources.
b. Local Resources are mix of Natural Resources, Human Resources and Other Resources
c. There are only three active actors in economy as state, market and civil society.
d. State assures freedom, protection and motivation to all stakeholders as a macro level.
e. Market seeks profit and that can take social responsibility through civil society organizations.
f. NGOs or Civil Society Organizations are people’s formal, not for profit, autonomous,
democratic, non-religious (secular but spiritual), non-political, right base, open, charitable,
meets to unmeet organization for social welfare and development in between state and market.
g. Civil societies are micro level people’s organization that they can reach every household to
listen, feel and develop the people.

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 Social Welfare Model of Rural Development 9
Figure1. Social Welfare Model of Rural Development (RD)

(Developed and Designed by Author).

The associated legendary works of Gandhi, Sen and various Classical Economists has been
associated as follows:
h. Social choice theory of Amaratya Kumar Sen
i. Gandhian Model of Rural Development
j. Doctrine of factors of production of Economics
Justifications
k. According as the social choice theory of Amaratya Sen the end and the mean of development
is Freedom. Therefore, either after or before development freedom is always necessary. At the
beginning, people need freedom and right to local resources. Right to local resources means
development of local resources for the betterment of people. Thus
Rural Development (RD) = D of LR (Development of Local Resources)
Therefore RD = D of (NR, HR, OR) ………………………… (i)
l. From the Gandhian Perspective core value of Rural Development is fulfillment and
achievement of Basic needs, self-respect and freedom of village.
Therefore, Rural Development is development on Basic needs, self-respect and freedom.
Therefore Rural Development (RD) = Development of Village
RD= D of (Village)
RD = D of (Village Resources)
RD = D of (Local Resources)
RD = Dof (NR, HR, )………………………….(ii)
m. From the principle of Factors of Production of economics, factors of productions are land,
Labor, Capital and organization.
Rural Development is development of rural factors of productions
Rural Development = D of (Land Labor, Capital, Organization)
Where, Land = Natural Resource (NR)
Labor = Human Resource (HR)
Capital and organizations = Other Resources (OR)
Therefore RD= Dof (NR, HR, R)……………………(iii)

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10 B. P. Badal

From (i), (ii) and (iii)

RD = D of (NR, HR, OR)
Analysis
The dimensions of Civil Societies in Rural Development of Nepal, as great Indian leader
Mahatma Gandhi had said that India was to be found not in few cities but in seven hundred
thousand villages (Deshmukh, 2012). Similarly, Nepal is to be found in four thousand villages of
Rural Nepal. Rural Nepal is out of complete access of central government or election less
paralyzed local government and private sectors have not any interest to invest in development due
to the lack of profitability. In rural Nepal there is neither government nor private sectors are in
effective operation. Development activities should derive through government mechanism with
downward accountability. It proves that first sector of development agent government and second
sector agent of development private sector both are malfunctioning. Therefore, there is only one
sector of development agent for development of Nepal is I/NGOs and I/NGO led development
strategy is only solution to develop the rural Nepal in present situation (Shrestha, 2009).
Development from top to bottom does not suit the need of people so the idea of Robert Chamber
that the bottom up model instead of top down model is appreciable. In the context of Nepal at
present transitional crisis, neither government nor private sector can lunch any development
programs thus the study focuses as the assumptions that I/NGOs are the milestone of development
as third sector.
After the independence-war of India, Gandhi and Neharu separated in their ideology.
Gandhi was advocating “Gandhian Model of Rural Development” in India but Neharu be
completely influenced by western economic philosophy and power of foreign relation. The first
Indian Prime Minister Pandit Jewaharlal Neharu, had introduced the western model of capitalistic
state led development because of the colonial hangover, weak foreign relation, disputes with
Mahatma Gandhi and proud of administrative power that led twenty years. The direction hold by
Neharu was completely imported and exotic influence to sell the dream of development to the poor
south Asian people on the perspective of state led capitalistic model of development. Indian
National Congress accepted the Neharuvian ideology and the same concept was imported in Nepal
because Leaders of Nepali Congress Party were influenced, trained and guided by Indian national
congress party. They have also fought on “Bharat Chhodo”- leave India movement. “Neharuvian
Socialism” or some similar ideological focus may now be made the scapegoat for the failings of
the government led effort in development in several countries (Panday, 1999). The most important
fact is that just Trueman spoke it became principle where as Gandhi’s ideology was in shadow.
Shadowing Gandhi in Indian subcontinent was shadowing the ethics and morality or humanity
from economics. Since the inception of democracy in 1950, various models of rural development
have been experimented with the assistance of donors and our efforts. The first planned rural
development project in Nepal was Tribhuvan Village Development Programme 1952. USAID and
later Indian Aid Mission assisted or supported the program (Sharma, 2004). Therefore, to
strengthen and stabilize the relation with India and donor agencies Nepalese leaders had accepted
the strategies as driven by the donors.
Conclusion
Different countries had adopted different models of rural development. USA developed
based on a free trade capitalist economy that is market economy. Soviet Union and China
developed by diametrically opposed strategy of socialists’ ideology of public ownership of

Nepalese Journal of Development and Rural Studies, 14 (1&2), 2017

 Social Welfare Model of Rural Development 11
property. Sweden adopted a third strategy by combining capitalists and socialists’ element to
generate mixed or welfare economy. Korean Model of Rural Development program (Saemual
Undong) was a new village development program that government provided some materials and
financial subsidies to do something the people utilized that on best way so Korea is a developed
country. Similarly, Chinese leader Deng Xiao Ping had lunched new economic policy so the
communist China is an economic hub now within last 30 Years. China’s rural enterprises, widely
known as Township and Village Enterprises (TVEs) have remarkably contributed to the economic
growth, rural development and institutional transformation. Whether in capitalistic, socialistic or
mixed economy people’s participation is must. Theoretically, balanced growth theory of Rodan
and Ragner, Lewis’ theory of unlimited supply of laborer, unbalanced growth theory of
Hirschman, Singer, Rostow etc., Ted Schultz’s transformation of traditional agriculture have
completely ignored social philanthropic model of rural development. Hence, this review paper
concludes that ignoring the transformative role of civil society is the most amazing facts for rural
development. In this context, SWMRD will be a pioneering development model of 21st century.
The central part of this model is people and their associations for their betterment. The main theme
of the study is pure social philanthropic social welfare organization of general people in civil
society in full strengths can develop their society according as their pre-determined goals. State,
Market and other third sector development partners must be able to unite, motivate, dream and
implement accordingly to the general people of the society. Thus, this model can be included in
developmental curricula of Tribhuvan University.
References
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