SCALlNG UP POVERTY REDUCTION - PowerPoint PPT Presentation

1 / 15

About This Presentation

Title:

SCALlNG UP POVERTY REDUCTION

Description:

Title: SCALE OF POVERTY REDUCTION INDIA COUNTRY STUDY Author: pcuser Last modified by: nic Created Date: 2/11/2004 7:09:37 AM Document presentation format – PowerPoint PPT presentation

Number of Views:116

Avg rating:3.0/5.0

Slides: 16

Provided by: pcus100

Category:

more less

Transcript and Presenter's Notes

Title: SCALlNG UP POVERTY REDUCTION

1
SCALlNG UP POVERTY REDUCTION

INDIA COUNTRY STUDY
Dr. Rohini Nayyar
Adviser,
Planning Commission,
Government of India
February 13, 2004

2
TRENDS IN AGGREGATE AND RURAL POVERTY IN INDIA

Year Rural Combined (Rural
Urban)
------------------------------------------------
----------------------------------------------
No. of Persons age No. of Persons age
(in million)
(in million)
------------------------------------------------
---------------------------------------------
1973-74 261.3 56.44
321.3 54.88
1977-78 264.2 53.07 328.9 51.32
1983 252.0 45.65 322.9 44.98
1987-88 231.9 39.09 307.0 38.86
1993-94 244.0 37.27 320.4 35.97
1999-2000 193.2 27.09 260.3 26.10
--------------------------------------------------
--------------------------------------------------
-------------------
Source Planning Commission

3
REDUCTION IN POVERTY Is it Real?

The official estimates of poverty questioned by
many.
Problems of comparability between 1993-94 and
1999-2000 survey data.
7/30 day recall period, 365 day recall period for
consumer durables may have led to higher
expenditure estimates.
Evidence from thin samples between 1993-94 and
1999-2000 indicates very little change in poverty
estimates.
Deaton Dreze and Tendulkar Sundaram indicate
poverty reduction between 7-8.2 points as
against over 10 reduction shown by the official
estimates.
Sen and Himangshu show poverty decline only by
4-4.5 points.

4
OTHER CO-RELATES OF POVERTY

The other co-relates of poverty indicate that
poverty would have decline at a lower rate than
projected by the official estimates.
The employment elasticity of growth declined to
0.16 in 1990s as compared to 0.52 in the 1980s.
The decline in employment elasticity of
agriculture was more pronounced from 0.70 in the
period 1983 to 1993-94 to 0.10 during 1993-94 to
1999-2000.
Growth in non-farm employment in the backward
regions of the country more in the nature of
refuge employment.
Deceleration in the rural income growth rates
during the 1990s.
Higher rise in food prices in the post reform
period.
Deterioration in fiscal position of States,
reduction in resource transfer from Centre to the
States.

5
ECONOMIC GROWTH AND POVERTY REDUCTION

Economic growth is necessary for poverty
reduction. But the link between the two is not
automatic.
The growth rates in the 1980s and in the post
reform period broadly similar at 5.6-6 per
annum.
Deceleration in growth rate after 1997.
Many States which have grown faster in the post
reform period do not show rapid reduction in
poverty.
Some of the States which did not grow very fast
show higher reduction in poverty indicating
impact of other factors on incidence of poverty.
Even in high growth States which have done well
in reducing poverty, regions and communities get
left out in the growth process.
Scheduled Castes/Scheduled Tribes in high growth
states witnessed little reduction in poverty.
The links between agricultural growth and poverty
reduction much more pronounced.
High positive co-relation between physical
infrastructure and reduction in poverty.

6
DECENTRALISATION AND POVERTY REDUCTION

Peoples participation in planning and
delivery of development programmes
institutionalised in the wake of challenges of
liberalisation and globalisation. The urge of
emerging middle classes for political
representation was accommodated through
Panchayati Raj Institutions (PRIs).
Constitutional status provided to PRIs, regular
elections, reservations for women and
marginalised sections, independent finance and
election commissions, separate functional domain.
Notable successes in empowering panchayats in
Kerala, Madhya Pradesh and West Bengal.
Involvement of village community in programme
implementation.
Social audit institutionalised leading to
transparency and accountability.

7
DECENTRALISATION AND POVERTY REDUCTION

Problems in many States especially in the Central
and Eastern parts of the country.
Continuing struggle between the political
leadership at the State level and between the
panchayati raj functionaries for control on
economic resources.
Panchayats viewed as agencies of Govt. and not as
peoples organisation.
Panchayats more concerned with construction
projects, no vision of long term livelihoods for
the people.
In many States political empowerment has yet to
lead to economic betterment.
Panchayats more effective where people are
politically aware and educated.

8
DECENTRALISATION AND POVERTY REDUCTION

Role for other civil society organisations in
the development process.
Influenced policies at Central and State levels,
generated awareness, helped in capacity building,
active in development work and service delivery.
Major role for NGOs in programmes for population
stabilization, health programmes, provision of
education under Sarva Siksha Abhiyan, control of
land degradation.
Self-Help Groups and users associations promoted
by the Government. Programmes implemented
through SHGs.
Greater accountability and transparency in the
functioning of PRIs and the other Government
Departments.

9
LESSONS FROM INDIA..1

Agricultural growth is the key to reduction in
poverty.
Investment in irrigation facilities to increase
crop productivity. Regionally differentiated
strategy.Ground water exploitation in high
rainfall areas of Eastern India.
Focus on water harvesting, water conservation and
improvement in land capability through watershed
development in dry regions of the country.
Investment in agricultural research and extension
for crop diversification. Provision of marketing
linkages and promotion of primary processing in
rural areas for employment generation.
Tenancy reform to create a land market in the
rural areas to facilitate access to land by the
rural poor.
Promotion of rural non-farm employment through
upgrading the technological base of rural
enterprises and by providing a package of
facilities including training, credit and market
linkages.

10
LESSONS FROM INDIA..2

Physical Infrastructure
Increased focus on creation of a rural road
network to link villages.
Rural electrification.
Rural drinking water supply and sanitation.
Provision of housing and shelter to the rural
poor.
Social Infrastructure
Investment in health and education and
improvement in quality of these services.
A shift in approach to service delivery through
community participation and community
contribution.

11
LESSONS FROM INDIA..3

A food for work programme to meet the
nutritional needs of the transient poor.
Self-employment through development of micro
enterprises financed by a mix of credit and
subsidy.
Availability of food at affordable prices.
Strengthening the targeted Public Distribution
System.
Special programmes for the aged, vulnerable and
the socially excluded.
Mid-day meals in schools and coverage of
pre-school children and lactating mothers.
Social Security Scheme.
Programmes for removal of regional imbalances.

12
LESSONS FROM INDIA..4

Good governance has been highlighted as a most
crucial factor for achievement of poverty
reduction and improvement in the social
indicators in the Tenth Five Year Plan.
To improve accountability and transparency in the
delivery system, strengthen Panchayats
by providing them clearly defined
functions
financial resources and
administrative support.
Strengthen the Gram Sabha to oversee and enforce
effective implementation of development
programmes by institutionalising social audit.

13
LESSONS FROM INDIA..5

Create an enabling environment for
Non-Governmental Organisations to play a greater
role in strengthening communities capabilities.
Strengthen the spirit of cooperation and
self-help by integrating SHGs in the development
programmes as attempted under programmes like
SGSY, RMK, NABARD.
Greater role for community organisations in
ensuring preservation of land and environment
through mechanisms such as joint forest
management, watershed associations, etc.
Innovative approaches to service delivery through
peoples participation and contribution.

14
UPSCALING LIMITATIONS

There is no unique solution for poverty
reduction. Even within a macro-economic
environment conducive to growth, specific
micro-interventions are required based on natural
resource endowments and the prevailing
socio-political cultural milieu. The case study
of India shows that strategies, policies and
programmes that have been successfully
implemented in one State/Region have not been
replicated in others. Even in reforming states
with high economic growth, pockets of
backwardness and poverty persist. Therefore,
there are limitations to replication of
successful interventions that originate in a
specific country, which should be kept in mind.