Povert Allevation Programmes
Povert Allevation Programmes
Povert Allevation Programmes
Rohini Nayyar
Adviser, Rural Development, Planning Commission, New Delhi At the beginning of the new millennium, 260 million people in India did not have incomes to access a consumption basket which defines the poverty line. Of these, 75 per cent were in the rural areas. India is home to 22 per cent of the worlds poor. Such a high incidence of poverty is a matter of concern in view of the fact that poverty eradication has been one of the major objectives of the development planning process. Indeed, poverty is a global issue. Its eradication is considered integral to humanitys quest for sustainable development. Reduction of poverty in India, is,therefore, vital for the attainment of national and international goals. The monitorable targets for the Tenth Five-Year Plan included quantitative targets for reduction in the incidence of poverty, according to which poverty was projected to be reduced by 5 percentage points by the end of the Tenth Plan period, by that time new estimates for poverty would be available. Agricultural wage earners, small and marginal farmers and casual workers engaged in nonagricultural activities, constitute the bulk of the rural poor. Small land holdings and their low productivity are the cause of poverty among households dependent on land-based activities for their livelihood. Poor educational base and lack of other vocational skills also perpetuate poverty. Due to the poor physical and social capital base, a large proportion of the people are forced to seek employment in vocations with extremely low levels of productivity and wages. The creation of employment opportunities for the unskilled workforce has been a major challenge for development planners and administrators. Poverty alleviation has been one of the guiding principles of the planning process in India. Indias anti-poverty strategy for urban and rural areas has three broad strands; promotion of economic growth; human development and targeted programmes to address the multidimensional nature of poverty. The role of 66 economic growth in providing more employment avenues to the population has been clearly recognised. The growth-oriented approach has been reinforced by focusing on specific sectors which provide greater opportunities to the people to participate in the growth process. The various dimensions of poverty relating to health, education and other basic services have been progressively internalised in the planning process. Central and state governments have considerably enhanced allocations for the provision of education, health, sanitation and other facilities which promote capacity-building and well-being of the poor. Investments in agriculture, area development programmes and afforestation provide avenues for employment and income. Special programmes have been taken up for the welfare of scheduled castes (SCs) and scheduled tribes (STs), the disabled and other vulnerable groups. Antipoverty programmes that seek to transfer assets and skills to people for self-employment, coupled with public works programmes that enable people to cope with transient poverty, are the third strand of the larger anti-poverty strategy. The Targetted Public Distribution System (TPDS) protects the poor from the adverse effects of rise in prices and ensures food and nutrition security at affordable prices.
Poverty in India
In India the last decade of the Twentieth century has seen a visible shift in the focus of development planning from the mere expansion of production of goods and services, and the consequent growth of per capita income, to planning for enhancement of human well being. The notion of human well being itself is more broadly conceived to include not only consumption of goods and services in general, but more specifically to ensure that the basic material requirements of all sections of the population, especially those below the poverty line, are met and that they have access to basic services such as health and education. This
approach has resulted in the reduction in poverty along with overall improvement in the quality of life.
Estimates of Poverty
The estimates of incidence of poverty in the country expressed as the percentage of population and the number of poor at the All India level and at the rural and urban levels is given in Table 1. There has been a decline in the poverty ratio since 1973-74. The decline was modest until 1993-94, by about one percentage point annually. However, this reduction was unable to effect a reduction in the number of poor during this period (1973-74 to 1993-94) due to higher rate of population growth. The number of poor during this period remained stable at around 320 million. The decline between 1993-94 and 1999-2000 is, however, sharp about 10% reduction in the poverty ratio along with significant reduction in number of poor. However, there is still high concentration of the poor in the rural areas as 193 million poor live in the rural areas which is about three fourth of the total poor in the country (estimated at 260 million for 1999-2000).
private sector has the lowest. The public sector (belonging exclusively in the organized sector), which was a major employment provider in the past, has recently by heavy shedding of excess labour and has become the lowest potential employment generator. The growth strategy of the Tenth Plan lays emphasis on rapid growth of those sectors which are most likely to create high quality employment opportunities and deals with the policy constraints which discourage growth of employment. Particular attention has been paid to the creation of a policy environment to influence the wide range of economic activities which have a large employment potential. The Tenth Plan identifies many labour intensive sectors like Agriculture and Allied Activities, Food Processing, Rural Non-farm Sector including Khadi and Village Industries, Small and Medium Enterprises and Services sectors including Health, Education, Information Technology & Communication where employment generating growth can be rejuvenated if right kind of sectoral policies are put in place. The long term perspective for employment generation highlights that: A higher overall growth of the economy is necessary to increase the labour demand, necessary for absorption of additions to labour force and for improvement in the quality of existing employment. Pursuing appropriate sectoral policies in individual sectors which are particularly important for employment generation. These sector level policies must be broadly consistent with overall objective of accelerating GDP growth.
Employment Scenario
The estimated number of unemployed persons for the year 2001-02 i.e. the base year of the Tenth Plan is around 34.85 million person (defined on CDS basis) while the unemployment rate is around 9.21 per cent. Estimates show that the unorganized sector has the highest labour content of output with high employment elasticity whereas the organized
Table 1: Estimates of Incidence of Poverty in India Year All India Number (million) 1973-74 1977-78 1983 1987-88 1993-94 1999-2000 321 329 323 307 320 260 Poverty ratio (%) 54.9 51.3 44.5 38.9 36.0 26.1 Number (million) 261 264 252 232 244 193 Rural Poverty ratio (%) 56.4 53.1 45.7 39.1 37.3 27.1 Number (million) 60 65 71 75 76 67 Urban Poverty ratio (%) 49.0 45.2 40.8 38.2 32.4 23.6
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Implementing focused special programme for creating additional employment and enhancing income generation from existing activities, aimed at helping vulnerable groups that may not be sufficiently benefited by the more general growth promoting policies. Pursuing suitable policies for education and skill development, which would upgrade the quality of labour force and make it capable of supporting a growth process which generates high quality employment. Ensuring that the policy and legal environment governing the labour market encourages labour absorption, especially in organized sector.
more space for the involvement of the poor. But the involvement of the poor depends on the sources of growth and the nature of growth. If the growth is sourced upon those sectors of the economy or those activities, which have a natural tendency to involve the poor in their expansion, such growth helps in poverty eradication. Therefore, it is recognized that it is important to source a large part of economic growth in agriculture, in rural non-agricultural activities and in productive expansion of the informal sector which all have high employment elasticities, as well as in an export strategy based on labour intensive exports. Further it is recognized that high growth of incomes is by itself not enough to improve the quality of life of the poor. Unless all the citizens of the country, and most particularly the poor, have access to certain basic minimum services, their living conditions cannot improve. These minimum services include among other things education, primary health care, safe drinking water and nutritional security. The successive Plans have laid special emphasis on these basic minimum services and all efforts are being made to achieve a minimum level of satisfaction in providing these in partnership with the State Governments. The anti-poverty programmes supplement the growth effort and protect the poor from destitution, sharp fluctuations in employment and incomes and social insecurity. Anti poverty programmes for generation of both self and wage employment are being implemented both in rural and urban areas of the country. From time to time these programmes have been redesigned and restructured in order to enhance their efficacy/impact on the poor and improve their sustainability. In addition there are other programmes, which also target to the poor like provision of subsidized foodgrains. It is also recognized that poverty can effectively be eradicated only when the poor start contributing to the growth by their active involvement in the growth process. Therefore, implementation of the programmes is increasingly based on approaches and methods, which involve the poor themselves in the process of poverty eradication and economic growth, through a process of social 68
mobilization, encouraging participatory approaches and institutions and empowerment of the poor. In this endeavour Panchayati Raj Institutions (PRI), the voluntary organizations and community based Self-Help Groups and User Groups are closely involved.
line by organizing them into Self Help Groups (SHGs) through the process of social mobilization, training and capacity building and provision of income generating assets through a mix of Bank credit and Government subsidy. The list of Below Poverty Line (BPL) households forms the basis for assistance of families under SGSY; safeguards have been provided to vulnerable sections by reserving benefits for Scheduled Castes/Scheduled Tribes, women and disabled persons. Under the programme emphasis is also laid on training, capacity building and provision of rural infrastructure. The reorientation of the self-employment programme to a group lending format is seen as the most valuable way of not only creating livelihood opportunities, but also for social mobilization, especially of women. Womens self-help groups have proved themselves to be very effective in improving standards of accountability of various public agencies and in bringing about substantial social transformation. The social mobilization that has been engendered by the poverty alleviation programmes leads to benefits, which cannot be quantified by standard economic measures.