POVERTY REDUCTION EFFORTS IN INDIA A Short Presentation By Rajeev K Mital

INDIA (Bharat ) 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 millions

I. AGGREGATE POVERTY MEASURES

I(2). AGGREGATE POVERTY MEASURES Millennium Development Goal – Target of 50 % reduction of poverty estimates between 1990 and With the recent trends of decline in poverty estimates India is well poised to achieve MDG target HCR of 23.9% by 2015

III. KEY INTERVENTIONS  Rights based approach:  Information Employment  Education 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

IV. Full Picture: Population and Poverty

V. Dynamic nature of poverty Anirudh Krishna’s framework Reasons for Descent into poverty Reasons for Escaping Poverty Poor health and health related expensesDiversification of income Marriage/dowry/ household related expensesPrivate sector employment Funeral-related expensesPublic sector employment High interest private debtGovt assistance/NGOs

VI. Government Programs and Poverty Dynamics Government Programs Prevent Entry Enable Escape Only Ameliorate Employment and self-employment Rural Employment Guarantee x Micro Credits and SHGs x Nutrition and education Targeted Public Distribution System x Integrated Child Development Scheme x Midday meals x Education program x Health and health insurance National Rural Health Mission (new ) x Health Insurance (new) x Infrastructure and basic services Rural Connectivity Roads x Housing Total Sanitation Campaign x Accelerated Rural Water Supply x Programs for specific groups Integrated Child Protection Scheme x National Old Age Pension Scheme 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. 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 sub- national 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

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