Question

Mr. Y from a city in India visits a rural area and finds five people working in a small agricultural farm. More than two people are not required to work in the farm and removing the other three will not affect production. How can one solve this problem of underemployment in rural areas? Explain.

Answer 1

If more men are working than required, it is called disguised unemployment. In this case, the other three who are not required should take up different jobs that would increase the total family income. For example, they can be employed in projects like building dams, canals or roads in the village.

1. The government can invest money in transportation and storage of crops or make better rural roads so that mini-trucks can reach everywhere.
2. Promotion of industries like setting up a dal mill and opening cold storage could allow farmers to store their products like potatoes and onions and sell them when the price is good.
3. In villages near forest areas, they can start honey collection centres where farmers can come and sell wild honey. It is also possible to set up industries that process vegetables and agricultural produce like potatoes, sweet potatoes, rice, wheat, tomatoes and fruits, which can be sold in outside markets and thus generate employment.
4. The government can plan to give loans at lower interest rates to people in rural areas to start something new, thereby solving underemployment problems.