Transcript POVERTY REDUCTION EFFORTS IN INDIA

POVERTY REDUCTION EFFORTS
IN INDIA
A Short Presentation
By Rajeev K Mital
INDIA (Bharat)
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Independence in 1947
Democratic Republic- Elections every 5 years
Federal Setup with 28 Provinces
Population 1.2 billion
Lots of Diversity – language, culture, religion
Ranks third in terms of GDP (PPP)
Absolute number of poor 300-360 millions
I. AGGREGATE POVERTY MEASURES
Percentage of beople below poverty lines
Changes in Percentage of People Below poverty lines in last
thirty five years
70
60
50
1973, 63.3
1973, 54.9
1983, 54.2
1983, 44.5
40
1993, 45.3
1993, 36
30
2004, 37.2
2004, 27.5
20
2009, 29.8
2009, 18.8
10
0
1973
1983
1993
2004
2009
I(2). AGGREGATE POVERTY MEASURES
• Millennium Development Goal
– Target of 50 % reduction of poverty estimates
between 1990 and 2015.
• With the recent trends of decline in poverty
estimates India is well poised to achieve MDG
target HCR of 23.9% by 2015
II. HDI Index- India
0.7
0.6
0.5
0.4
HDI Index
0.3
0.2
0.1
0
1980 1985 1990 1995 2000 2005 2010
III. KEY INTERVENTIONS
 Rights based approach:
 Information
 Education
Employment
Food
 New generation of Welfare programs programs
 Workfare programs
Microcredits and Self Help Groups.
 Rural Infrastructure:
Rural Road Connectivity
 Delivery Mechanism
Local self Government (Panchayati Raj)
NGOs
60
55
54.7
51.2
IV. Full Picture: Population and Poverty
19.3
10
1999-00
4
2.6
1993-94
2.7
20
16.7
15.5
21.8
30
26
40
30.7
50
0
Extremely Poor
and Poor Group
( below PL)
Marginal and
Vulnerable
Group ( Above
PL but below
2*PL)
Middle Income
High Income
Group (
Group (Above 4
Between 2 and
B17times PL)
4 times PL)
2004-05
V. Dynamic nature of poverty
• Anirudh Krishna’s framework
Reasons for
Descent into poverty
Poor health and health related
expenses
Reasons for Escaping
Poverty
Diversification of income
Marriage/dowry/ household
related expenses
Private sector employment
Funeral-related expenses
Public sector employment
High interest private debt
Govt assistance/NGOs
VI. Government Programs and Poverty Dynamics
Government Programs
Prevent Enable
Entry
Escape
Only
Ameliorate
Employment and self-employment
Rural Employment Guarantee
Micro Credits and SHGs
Nutrition and education
Targeted Public Distribution System
Integrated Child Development Scheme
Midday meals
Education program
Health and health insurance
National Rural Health Mission (new )
Health Insurance (new)
Infrastructure and basic services
Rural Connectivity Roads
Housing
Total Sanitation Campaign
Accelerated Rural Water Supply
Programs for specific groups
Integrated Child Protection Scheme
National Old Age Pension Scheme
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x
x
x
x
x
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x
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x
VII. Chronic Poverty
• Ref :Hulme, Barett
– Threshold effects lead to multiple equilibria and
poverty traps
• Ref: Mehta & Shah : In context of India
– Agricultural Laborers and Construction workers
– Less Favored areas- Forest based economies and hill
areas
– Sociology- Scheduled Castes and Scheduled Tribes,
Muslim Segments
– Geography -5 states /provinces ( UP, Bihar, Orissa,
Madhya Pradesh, Maharashtra)
VIII. INFERENCES
• Health Initiatives including Health Insurance – strategic in
combating poverty.
• Microcredit programs have led to substantial diversification of
income sources.
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However a large number of interventions aim to ameliorate
persistent poverty and these programs may assist the poor in
very gradually improving their capacity to earn better
• Self-employment, education, infrastructure development,
seek to enable escape from poverty, although impacts of
education-related schemes on the intergenerational
transmission of poverty will occur only in the long run.
VIII(2). INFERENCES
• The distinction between chronic (persistent ) and
transient poverty is not fully imbibed in the Indian
context and poverty alleviation schemes need to
address both chronic poverty and the dynamics of
poverty.
• Uniform national policy may not be the best time. The
various factors and forces associated with poverty and
appropriate response could be better dealt at subnational and local government levels.
• Sound Rural Credit and Insurance Systems are very
critical for making dents into chronic poverty.
IX. Emerging Programs/ Initiatives
•Rural Health Insurance:
•Started in 2007 ,Health insurance coverage for Below Poverty
Line (BPL) families.
•Objective :to provide protection to BPL households from
financial liabilities arising out of health shocks that involve
hospitalization.
•Beneficiaries entitled to
hospitalization coverage up
to Rs. 30,000/- ($ 600)
while Central and
State Government pays the
premium to the insurer
IX(2). Emerging Programs/ Initiatives
Mass/Community
Marriages
• Many couples tie the knot
under the same roof at the
same time.
• They help parents spread the
cost.
• State Governments are
increasingly incentivizing such
endeavors
Thank You