Why it is argued that development model should be demand-driven? Discuss.

At the launch of Sansad Adarsh Gram Yojana, our Prime Minister had stated that Development Models need to be changed from being supply driven to demand driven.
There are some reasons as to why a demand driven approach must be preferred over the supply driven. The reasons are as under-

• It consists of popular participation.
• A multi-stakeholder model can be recognised through the demand-driven programmes as well as community participation alongwith contributions from the government, NGOs and the private sector.
• Demand-driven programmes tend to be context-specific and flexible.
• There is a decentralised component of resource allocation and distribution in a demand driven approach.
• Substantial participation and co-determination from local actors and civil society organisations.
• Alignment and coordination with political authorities and governance structures at a local scale.
• There is a set of ‘checks and balances’ in order to ensure local transparency and allow community constituencies to hold developmental programmes accountable. This brings about ‘bottom-up accountability’.
• Being a demand driven approach, the programme will always be able to cater to the needs and tastes of the people.

Topics: GS-III: Economic Growth Development