View
228
Download
0
Category
Preview:
Citation preview
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 1/65
Poverty in India:
Assessment, Remedies
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 2/65
2
Thanks to
Manoj Panda
Centre for Economic and Social Studies
(CESS),
Hyderabad
Plus others on web for valuable info copied.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 3/65
Coverage
• Introduction
• Concepts of Poverty and Poverty Line
• Measurement of Poverty
• Trends in Poverty over Time• Variations across States and Social
Groups
• Inequality: Concept and Measurement
• Some Policy Issues
3
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 4/65
IntroductionIndia‟s economic structure has changed dramatically
over last 5-6 decades; among the most dynamiceconomies recently.
However, benefits of growth not widely spread to
various sections in society, reached only marginallyto low income groups.
Similar experience exists in other countries too. Can
we guarantee to all at least a minimum level of livingnecessary for physical and social development of aperson in India?
4
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 5/65
5
1 billion of world‟s people are not on theladder of economic progress Extreme poor
Unable to escape from extreme material
deprivation
Trapped by disease, physical isolation,
climate stress, environmental degradation,
extreme poverty
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 6/65
6
Poverty in the States of India
One half of India’s poor is located thethree states of Uttar Pradesh, Bihar, andMadhya Pradesh
Maharashtra, West Bengal and Orissaaccount for 22.5% of poverty
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 7/657
United Nations documents emphasize
“human development,” measured by
• life expectancy,
• adult literacy,
• access to all three levels of education,
and people‟s average income.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 8/658
WHY IS POVERTY HAPPENING IN INDIA?
• India‟s economy is growing but the wealth
distribution is uneven
• 1/4 of the nation's population earns less than the
government-specified $0.40/day
• Unemployment and underemployment
• Over-reliance on agriculture
• High population growth rate
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 9/65
Let us estimate poverty
Poverty estimates are vital input to design, monitor and
implement appropriate anti-poverty policies.
• Analysis of poverty profiles by regions, socio-economic groups
•Determinants - factors affecting poverty
•Relative effects of factors affecting poverty• Allocation of resources to different regions and to variouspoverty reduction programs
Precise estimates of poverty neither easy nor universallyacceptable. Yet, an estimate can act as a broad andreasonable policy guide.
9
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 10/6510
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 11/65
EARLY WORK: Intellectual genesis of poverty very old Adam Smith, Ricardo, Marx: subsistence wage concept
An early empirical work by Dadabhai Naoroji, 1901
Estimated an income level “necessary for the bare wants of ahuman being, to keep him in ordinary good health anddecency”. Estimated cost of food, clothing, hut, oil for lamp,
barber and domestic utensils to arrive at „subsistence perhead‟.
In the absence of income distribution data, Naoroji compared
computed subsistence level with per capita production to drawattention to mass poverty.
Remarkable work that parallels an early work on Britishpoverty by Rowntree, 1901.
11
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 12/6512
Poverty is multi-dimensional, and its components are
correlated, but this complexity can be reduced to a smallnumber of separate components through a statistical
procedure. This procedure identified food quality, clothing,
education and good housing as the most important
indicators.
Calorie intake was not closely correlated with poverty.
However, the quality of food was an extremely powerful
indicator. The connections between poverty and social
exclusion were also complex.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 13/65
Poverty is multidimensional, it is about
• deprivation in income,• illiteracy,• malnutrition, mortality, morbidity,
• access to water and sanitation,• vulnerability to economic shocks.
Income deprivation is linked in many cases to otherforms of deprivation, but do not always movetogether with others.
13
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 14/65
Measurement of Poverty
(Percentage of Poor)
Two basic ingredients in measuring poverty:
(1)Poverty Line: definition of threshold income orconsumption level
(2)Data on size distribution of income orconsumption (collected by a sample surveyrepresentative of the population)
14
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 15/65
Poverty Line (PL): Absolute vs. Relative
Relative PL defined in relative terms with referenceto level of living of another person; or, in relation toan income distribution parameter.Examples: 50% of mean income or median, mean
minus one standard deviation.
Absolute PL refers to a threshold income
(consumption) level defined in absolute terms.Persons below a pre-defined threshold income arecalled poor.
15
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 16/65
Indian Poverty Line
A minimum level of living necessary for physical and
social development of a person.Estimated as: total consumption expenditure level thatmeets energy (calorie) need of an average person.
•PL comprises of both food and non-food components of consumption.
•Considers non-food expenditure actually incurred
corresponding to this total expenditure.
•Difficult to consider minimum non-food needs entirely on an objective basis
16
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 17/65
Relationship Between Calorie Intake and
Per Capita Expenditure
0500
1000
1500
2000
2500
3000
3500
0 100 200 300 400 500 600 700 800 900 1000
Per Capita Consumption Expenditure per Month
(Rupees)
P e r C a p i t a C a l o r i e I n t a k e
p e r d a y
17
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 18/65
An Example of Size Distribution of Consumption Expenditure
MPCE %Population
0-150 3.2150-200 4.0
200-250 6.5
250-300 8.6
300-340 10.0 (half of 10% are below poverty line 320)
340-400 11.3
400-450 8.6
450-500 9.2
500-550 9.3
550-650 11.4
650-800 8.9
800-1000 5.0Above 1000 4.0
All classes 100.0
MPCE: Monthly Per Capita Consumption Expenditure
Poverty Line: Rs. 320 per capita per month
HCR= 3.2+4.0+6.5+8.6+5.0 = 27.3% 18
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 19/65
Incidence of poverty Vs. Under-nutrition
Classification of Population by Poverty Line and
Calorie Norm - Rural India, 1977-78
Below
Poverty
Line
Above
Poverty
Line
Total
Below Calorie
Norm 45.32 12.47 57.79
Above Calorie
Norm
12.31 29.21 42.21
Total 57.63 42.37 100.00
Source: Government of India (1993): Report of Expert Group.
19
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 20/65
Official PL in India
Originally estimated for 1973-74: Rs 49 and 56 for
rural and urban areas respectively.Updated using an appropriate price index (CPIALfor rural India, CPIIW for urban).
A monthly per capita consumption expenditure of
Rs. 356 and 539 for rural and urban areasrespectively for 2004-05.
More than a quarter of India‟s population remain
below PL in 2004-05.28.3% Rural 25.7% Urban 27.5% Total
Absolute no.: 302 million in 2004-05
20
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 21/65
Poverty in India: Changes over time
Up to mid-1970s – fluctuations with cycles
Since mid-1970s – continuous fall
Except a few years immediately after start ofreforms (early 1990s)
Controversies around estimates for 1999-2000(under estimates poverty)
20
25
30
35
40
45
50
5560
65
70
1 9 6 0
1 9 6 3
1 9 6 6
1 9 6 9
1 9 7 2
1 9 7 5
1 9 7 8
1 9 8 1
1 9 8 4
1 9 8 7
1 9 9 0
1 9 9 3
1 9 9 6
1 9 9 9
2 0 0 2
2 0 0 5
% p o p u l a t i o n b e l o w P L
Rural HCR
Urban HCR
21
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 22/65
Data Contamination in 1999-2000
7-Day Recall versus 30-Day Recall
NSSO expenditure data collected on 7-day recallperiod basis during 51st-54th rounds 13-18% largerthan that from the 30-day recall period basis.
This difference is reduced to 3 to 4% in the 55th round. Critics attribute this reduction to mix up ofrecall periods by respondents affectingcomparability with previous large-scale surveys.
The 7-day recall period reports more foodexpenditure and very significant fall in poverty.
22
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 23/65
Comparison of Poverty After Reforms
Uniform Recall Period
1993-94 2004-05
Rural 37.3 28.3
Urban 32.4 25.7
Total 36.0 27.5
Mixed Recall Period
1999-2000 2004-05
Rural 27.1 21.8
Urban 23.6 21.7
Total 26.1 21.8
23
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 24/65
Poverty Head Count Ratio: Major Indian States
24
Poverty By Social Groups: Rural 2004 05
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 25/65
Poverty By Social Groups: Rural 2004-05
States ST SC OBC OTHERSAndhra Pradesh 30.5 15.4 9.5 4.1Assam 14.1 27.7 18.8 25.4
Bihar 53.3 64 37.8 26.6Chhattisgarh 54.7 32.7 33.9 29.2Delhi 0.0 0.0 0.0 10.6Gujarat 34.7 21.8 19.1 4.8Haryana 0.0 26.8 13.9 4.2Himachal Pradesh 14.9 19.6 9.1 6.4Jammu & Kashmir 8.8 5.2 10.0 3.3Jharkhand 54.2 57.9 40.2 37.1Karnataka 23.5 31.8 20.9 13.8Kerala 44.3 21.6 13.7 6.6Madhya Pradesh 58.6 42.8 29.6 13.4Maharashtra 56.6 44.8 23.9 18.9Orissa 75.6 50.2 36.9 23.4
Punjab 30.7 14.6 10.6 2.2Rajasthan 32.6 28.7 13.1 8.2Tamil Nadu 32.1 31.2 19.8 19.1Uttar Pradesh 32.4 44.8 32.9 19.7Uttarakhand 43.2 54.2 44.8 33.5West Bengal 42.4 29.5 18.3 27.5All India 47.2 36.8 26.7 16.1
25
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 26/65
Poverty By Social Groups: Urban 2004-05States ST SC OBC OTHERS
Andhra Pradesh 50 39.9 28.9 20.6
Assam 4.8 8.6 8.6 4.2
Bihar 57.2 67.2 41.4 18.3Chhattisgarh 41.0 52.0 52.7 21.4
Delhi 9.4 35.8 18.3 6.4
Gujarat 21.4 16 22.9 7.0
Haryana 4.6 33.4 22.5 5.9
Himachal Pradesh 2.4 5.6 10.1 2.0
Jammu & Kashmir 0.0 13.7 4.8 7.8Jharkhand 45.1 47.2 19.1 9.2
Karnataka 58.3 50.6 39.1 20.3
Kerala 19.2 32.5 24.3 7.8
Madhya Pradesh 44.7 67.3 55.5 20.8
Maharashtra 40.4 43.2 35.6 26.8
Orissa 61.8 72.6 50.2 28.9Punjab 2.1 16.1 8.4 2.9
Rajasthan 24.1 52.1 35.6 20.7
Tamil Nadu 32.5 40.2 20.9 6.5
Uttar Pradesh 37.4 44.9 36.6 19.2
Uttarakhand 64.4 65.7 46.5 25.5
West Bengal 25.7 28.5 10.4 13.0
All India 33.3 39.9 31.4 16.026
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 27/65
27
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 28/65
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 29/65
Poverty Measures
Head Count Ratio (HCR),
Poverty Gap (PG) and
squared poverty gap (SPG)
29
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 30/65
n
m HCR
Poverty Measures
Head Count Ratio (HCR), Poverty Gap
(PG) and Squared Poverty Gap (SPG)
)(1
1
m
i
i
z
y z
n PG
2
1
1
m
i
i
z y z
nSPG
m= no. of poor population, n = total population,
z= poverty line, yi =income of i-th person 30
Alt ti P t M
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 31/65
Alternative Poverty Measures
Head Count Ratio (HCR): proportion of total
population that falls below poverty threshold
income or expenditure. Based on either national
PL or dollar-a-day PL.
Poverty Gap Index (PGI): unlike HCR, it gives us
a sense of how poor the poor are. It is equivalent
to income gap below PL per head of total
population, and expressed as a percentage of the
poverty line. 31
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 32/65
32
• Squared Poverty Gap index (SPG): Adds the
dimension of inequality among the poor to the
poverty gap index. For a given value of the
PGI, population with greater dispersion of
income among poor indicates a higher value for
the SPG.
• Monotonicity Axiom: Not satisfied by HCR
• Transfer Axiom: Not satisfied by HCR and PGI
Incidence of poverty affected by two factors:
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 33/65
Incidence of poverty affected by two factors:
(1)Growth in average income (2)Distribution.
Poverty reduction fast when average income rises andinequality falls.
Fluctuations in poverty incidence till early 1970sprimarily due to slow per capita income growth.
Incidence of poverty started to fall after mid-1970s when
there was marked acceleration in per capita GDP growthrate to above 3 per cent.
33
Lorenz curve: a curve that represents relationship between
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 34/65
Lorenz curve: a curve that represents relationship betweencumulative proportion of income and cumulative proportion ofpopulation in income distribution by size, beginning with thelowest income group.
If perfect income equality, Lorenz curve coincides with 45-degreeline.
Gini coefficient: a commonly used measure of inequality; ratio of
area between Lorenz curve and 45-degree line, expressed as apercentage of area under 45-degree line.
If perfect equality, Gini coefficient takes value 0If perfect inequality, equals 1.Internationally, Gini coeff. normallyranges between 0.25 & 0.7
)(1
1
m
i
iii QC QC P L
34
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 35/65
From Household income/expenditure Survey
Compute data on each household’s income/expenditure
Rank the families from lowest income to highest income.
% of Pop.(Pi)
% of Inc. Cumulative% of Pop.
Cummulative% of Income
(QCi)
10 3.3 10 3.5
10 5.3 20 8.6
20 13.3 40 21.9
20 17.0 60 38.9
20 22.7 80 61.6
10 14.6 90 76.2
10 23.8 100 100
35
Lorenz Curve
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 36/65
Lorenz Curve
Cumulative % of Population
Cumulative
% of Income
X=Area of the hatched region
Gini coefficient = [X/50]100 36
A A l G th R t R l GDP
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 37/65
Average Annual Growth Rates: Real GDP
1951-2 to
1980-81
1981-82
to 1990-91
1991-92
to 1999-2000
2000-01
to 2006-07
2002-03 to
2006-07(Tenth Plan
Period)
Agriculture 2.6 3.8 3.0 2.5 2.2
Industry 5.3 7.0 5.7 7.8 9.1
Service 4.6 6.7 7.9 8.5 9.4
GDP (total) 3.6 5.6 5.8 6.9 7.6
Per Capita GDP 1.4 3.4 3.6 5.2 6.0
Neglect of agriculture after economic reforms even as
overall economic growth accelerated
37
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 38/65
Average Annual Growth Rate in Per Capita GSDP
Arranged by 1993-94 Per Capita GSDP
0
2000
4000
6000
8000
10000
12000
14000
16000
P u n j a b
M a
h a r a s h t r a
H a r y a n a
G u j a r a t
T a m i l N a d u
H i m a c h a l P r a d e s h
K e r a l a
K
a r n a t a k a
A n d h r a
P r a d e s h
J a m m u a n d
K a s h m i r
W e s t B e n g a l
M a d h y a
P r a d e s h
R
a j a s t h a n
A s s a m
U t t a r P r a d e s h
O r i s s a
B i h a r
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Per capita Income 1993-94 Growth Rate 1993-2004
38
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 39/65
Coefficient of Variation in Per Capita GSDPamong 16 Major States
0.3100
0.3200
0.3300
0.3400
0.3500
0.3600
0.3700
0.3800
0.3900
0.4000
1993-
94
1994-
95
1995-
96
1996-
97
1997-
98
1998-
99
1999-
00
2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
39
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 40/65
Factors affecting Poverty
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 41/65
Factors affecting Poverty
Poverty depends on per capita household incomewhich in turn affected by employment, wage rate,
land productivity, industrialisation, expansion ofservice sector and other general growth anddistribution factors
Special role of
•per capita agricultural income•Employment and real wage rate
•Inflation rate and relative food prices•Government expenditurePer capita development expenditureSocial sector expenditure
41
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 42/65
Indian growth process since 1950s more or less distributionneutral till 1980s.
Importance of a critical minimum steady growth in per capita
income for poverty reduction.Inequality increased in recent years after reforms.
Income elasticity of poverty has fallen.
A given growth will be associated with more limited gains forthe poor
Higher growth might more than compensate the adverseeffect if fall in elasticity is small.
Reasons for weak participation of poor: limited access toeducation, land, credit; low agrl growth, underdevelopedinfrastructure such as irrigation, roads, electricity in poorerstates
42
i i i
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 43/65
Demographic Dividend
• AS fertility drops, ratio of workers to non-
workers rises.• Provides an window of opportunity provided
potential workers acquire skills and findproductive employment
• About a fourth of poverty reduction could beattributed to demographic factors in India
• Right economic policies critical, otherwise thescenario could turn out to be demographic
liability• Dividend for 2-3 decades only since proportion
of older population would eventually increaseincreasing dependency ratio again
43
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 44/65
Long term scenario for Poverty
• Long term growth prospects fairly optimistic: India likely to
continue among the fasted growing economies, BRIC todominate world economy
• India might surpass Japan and Germany in terms of totalsize of the economy, yet its per capita income would be
less than world average for a long time• Poverty could be reduced faster provided inequality is
under control, labour intensive activities must grow,removal of rigidities in land and labour market critical for
reallocation of resources• Government can afford to devote more resources for
poverty removal programmes: wage employment(NREGA) or self employment type (SJSY).
44
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 45/65
45
The main goal of economic development is improving the
economic well being of a community through efforts thatentail job creation, job retention, tax base enhancements
and quality of life. As there is no single definition for
economic development, the re is no single strategy, policyor program for achieving successful economic
development. Communities differ in their geographic and
political strengths and weaknesses. Each community
therefore, will have a unique set of challenges for
economic development.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 46/65
46
Innovation is the only sustainable source of regional
prosperity.
Talent is the key asset in fostering innovations (its about
human capital).
Building a cultural environment that supports entrepreneurialactivity is critical.
To build an innovation region requires more collaboration
than ever.Culturally vital communities will be accessible, affordable,
applauded, diverse, distinctive, and dynamic.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 47/65
47
Economic development encompasses three major
areas:
• Policies that government undertakes to meet
broad economic objectives including inflation
control, high employment and sustainable growth.
• Policies and programs to provide services
including building highways, managing parks and
providing medical access to the disadvantaged.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 48/65
48
• Policies and programs explicitly directed at
improving the business climate through
specific efforts, business finance, marketing,
neighborhood development, businessretention and expansion, technology transfer,
real estate development and others.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 49/65
49
Economic growth is poverty reducing only if it „enables the
poor to actively participate in and significantly benefit from
economic activity‟.
Job creation by industrial expansion is clearly the wayforward along with redistributive policies to solve
poverty problems. While fostering industrialization India
could pursue strategic import substitution and leveragethe large domestic market that has now developed in
several modern sectors.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 50/65
50
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 51/65
51
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 52/65
52
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 53/65
53
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 54/65
54
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 55/65
55
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 56/65
56
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 57/65
57
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 58/65
How BIHAR alleviates povertyThe low levels of nutrition in the state_were related to high levels of poverty.
The implementation of programmes
such as ICDS had improved in therecent past.
There was low levels of literacy,
especially female literacy in the state.
58
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 59/65
59
There has been mass recruitment of teaching
staff, now it was imperative to transfer the focus
on the quality of education provided.
One-third of the total housing deficit in thecountry occurred in the state of Bihar, and 75
per cent of the housing in the state constituted
kuccha housing.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 60/65
60
Nature of urban and rural poverty is very different; the
former has to do with consumption, whereas the latter has
to do with the lack of facilities, and therefore, it may be
argued that the definition of urban poverty needs to be
distinguished from that of rural poverty.
Three fundamental problems in poverty alleviation in
Bihar — the lack of universal access to health and
education, the poor quality of delivery, and the prevalence
of plenty of leakages.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 61/65
61
Two important direct poverty alleviation
programmes— the Mahatma Gandhi National RuralEmployment Guarantee Scheme (MNREGS) and
the Public Distribution Scheme (PDS). The
MNREGS had not reached its full potential in the
state, though targeting has improved. The PDS had
improved after the introduction of food coupons butissues pertaining to godowns, and food
procurement remained.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 62/65
62
The strengthening of institutions to improve delivery
mechanisms were to be identified and institution and
capacity building were the major challenges facing
Bihar.
In a country like India, it was not easy to substitute the
various government programmes by cash transfers.
Hence, in many programmes, we needed to move touniversalisation, for instance schooling, in the context of
right to education.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 63/65
63
Migration had increased during the last few
decades. An exercise may be undertaken to
register migrants who leave the state for work. At
the same time, it was suggested to undertake skilldevelopment and capacity building programmes for
migrant workers, to enhance their employability
and enable them to get better work opportunities in
Bihar and other parts of the country.
.
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 64/65
64
The six „Is‟, namely
institutions,incentives,
infrastructure,
investment,
income transfers and
innovative thinkingpresent a useful framework for formulating conditions
for poverty reduction in India
8/12/2019 Poverty and Prosperous India
http://slidepdf.com/reader/full/poverty-and-prosperous-india 65/65
It was noted that serious problems occur from estimation
to identification of the poor. The Tendulkar committee
provided an estimate of the percentage of the poor, while
for the targeted programme intervention, we needed to
identify the poor. In terms of targeting the areas where
the proportion of poor was very high, the real problem
was not related to the estimation of poor, but with their
identification.
Recommended