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Poverty 190802091531 PDF
Poverty 190802091531 PDF
Meaning
• Poverty is one of the most widespread socio-economic problems of
India.
• It is, indeed, a common problem which is being faced with most of the
underdeveloped and the developing countries of the world.
• It is not only socio-economic but even emotional, cultural and political
in nature.
• The developments that have been taking place in this land for the past
seven decades have not been able to wipe our poverty.
• Poverty has been the root course of many of the problems.
Meaning
• Poverty is a situation that gives rise to a feeling of a discrepancy
between what one “has” and what one “should have”.
• Berstein Henry has identified the following dimensions of poverty:
• Lack of livelihood strategies
• Inaccessibility to resources (money, land, credit)
• Feeling of insecurity and frustrations
• Inability to maintain and develop social relations with others as a
consequence of lack of resources
• Poverty exists when one is not able to get sufficient food and other
necessities of life.
Definition
• Gillian and Gillin – “A condition in which a person either because of inadequate
income or unwise expenditures, does not maintain a scale of living high enough
to provide for his mental and physical efficiency and to enable him and his natural
dependents to function usually according to the standards of a society of which
he is a member”.
• Adam Smith – “Man is considered as rich or poor according to the degree in
which he can afford to enjoy the necessaries, the conveniences and the
amusements of life”.
• Goddard – “Poverty is the insufficient supply of those things, which are requisite
for an individual to maintain himself and those dependent upon him in health
and vigour”.
Types of Poverty
• Absolute Poverty:
• Individual is not able to maintain a minimum decent standard of living to
maintain himself and his family.
• Absolute poverty is often known as “subsistence poverty” since it is based on
assessments of minimum subsistence requirements such as food, clothing,
shelter, health requirements etc.
• Relative Poverty:
• Developed the idea of relative stands, that is standards which are relative to
particular time and place.
• A person may be relatively poor among the persons of his own group who are
relatively rich.
Poverty line
• Poverty is perceived in terms of “poverty line” which is determined by
the prevailing standards of what is needed for health, efficiency,
nurturing of children, social participation, and the maintenance of
self-respect.
• In practice, however, the poverty line is drawn on the basis of a barest
minimum desirable nutritional standard of colorize intake.
• In India, the poverty line is drawn on the basis of a per capita (adult)
daily intake of 2,400 calories for the rural and 2,100 calories for the
urban areas.
• New poverty line: Rs 32 for rural India, Rs 47 for urban India
Poverty Line
• The expert committee set up by the Planning Commission last year under C
Rangarajan, former chairperson of Prime Minister's Economic Advisory Council,
has redefined the poverty line.
• According to the report of the committee, the new poverty line should be Rs 32
in rural areas and Rs 47 in urban areas (2011-12).
• The earlier poverty line figure was Rs 27 for rural India and Rs 33 for Urban India
(2004-05).
• Biological factors
• Over population, occurrences of famine decreased, decrease in death rate
and increase in birth rate.
Rural poverty
• According to the 2011 census of India, 68.84% of Indians (around
833.1 million people) live in 640,867 different villages.
• The incidence of poverty is much higher in village.
• Agriculture is a source of livelihood for 70% of the population but
agriculture accounts for less than 20% of the national income.
• One of the reasons for this is the unequal distribution of land.
• Thus, any agenda for fighting poverty must address itself to the rural
sector.
Rural poverty
• Poverty can be measured by the poor’s access to piped water,
electricity, kutcha and pucca houses, and the public distribution
system, etc.
• A staggering 55% of the rural population of the country still live in
kutcha houses.
• Further, in most backward states (like West Bengal, Bihar, Orissa,
Uttar Pradesh, and Madhya Pradesh), 15 to 19% rural homes have
electricity, 9 to 11% have pipe water and 11 to 16% have access to
public distribution system.
Causes of rural poverty
• Inadequate and ineffective implementation of anti-poverty programmes.
• Low percentage of population engaged in non-agricultural pursuits.
• Non-availability of irrigational facilities and erratic rainfall in several stages.
• Low agricultural productivity resulting form dependence on traditional
methods of cultivation and inadequate knowledge of modern skills.
• Non-availability of electricity for agricultural as well as industrial use in most
of the villages.
• Spending a large percentage of annual earnings on social ceremonies like
marriage, death feast, etc., and people being unwilling to break the
expensive customs.
Causes of rural poverty
• Poor quality of livestock.
• Imperfect and exploited credit market.
• Lack of link roads, communication facilities and markets.
• Low level of education. The general literacy level in the rural areas in the
country is low while for females it is very low.
• Absence of dynamic community leadership.
• Failure to seek women’s cooperation in developmental activities and
associating them with planned programmes.
• Inter-caste conflicts and rivalries.
Some effective strategies for alleviating rural
poverty
• Strengthening credit disbursing agencies.
• Providing cheap power supply for agricultural and industrial use.
• Activating cooperative societies for selling products of household
industries.
• Making allocations in poverty alleviation programmes (PAPs) flexible
and sanctioning special allocations to districts/blocks/villages showing
good results.
• Integrating varied PAPs in 1 or 2 schemes and making the availability
of benefits easier.
Some effective strategies for alleviating rural
poverty
• Developing resources by focusing on education, health and skill
programmes.
• Creating social awareness to arrest increasing debt growth among the
poor.
• Improving animal husbandry and developing dairy and poultry
farming.
• Activating panchayats to focus on adult education programme, road
construction and maintaining tree plantations.
• Activating more NGOs in role-play like digging of tanks, training youth,
imparting skills to women, creating social awareness among, etc.
Poverty Alleviation
Programme
Poverty elevation programmes
• After independence, the central and state government have adopted
the following important measures to reduce poverty:
• Five year plans
• Nationalisation
• 20-point programme
• Stage poverty alleviation programmes like IRDP, JRZ, TRYSEM, etc.
The Five Year Plans
• The planning commission set up in 1950 has been formulating Five
year Plans for India’s development taking an overall view of the needs
and resources of the country.
• The First plan was launched in April 1951 and the Third plan ended in
March 1966.
• After this, there were three one year plans from April, 1966 to March
1969.
• The Fourth Plan started in April 1969 and the Twelfth Plan ended in
March 2017.
Frist Five Year Plan (1951-56)
• The total planned budget of Rs.2069 crore (2378 crore later) was allocated
to seven broad areas:
• irrigation and energy (27.2%),
• Agriculture and community development (17.4%),
• Transport and communications (24%),
• Industry (8.4%),
• Social services (16.6%),
• Rehabilitation of landless formers (4.1%),
• and for other sectors and services (2.5%).
• The target growth rate was 2.1% annual gross domestic product (GDP)
growth; the achieved growth rate was 3.6% the net domestic product went
up by 15%.
Second Five Year Plan (1956-61)
• The Second Plan was particularly in the development of the public
sector and "rapid Industrialisation".
• The total amount allocated under the Second Five-Year Plan in India
was Rs.48 billion.
• This amount was allocated among various sectors:
• power and irrigation,
• social services,
• communications and transport, and
• miscellaneous.
• The plan attempted to determine the optimal allocation of
investment between productive sectors in order to maximise long-run
economic growth.
Third Five Year Plan (1961-66)
• The Third Five-year Plan, stressed agriculture and improvement in the
production of wheat, but the brief Sino-Indian War of 1962 exposed
weaknesses in the economy and shifted the focus towards the defence
industry and the Indian Army.
• In 1965–1966, India fought a War with Pakistan.
• There was also a severe drought in 1965.
• The war led to inflation and the priority was shifted to price
stabilisation.
• The construction of dams continued.
• Many cement and fertilizer plants were also built.
Conti..
• Many primary schools were started in rural areas.
• In an effort to bring democracy to the grass-root level, Panchayat
elections were started and the states were given more development
responsibilities.
• State electricity boards, state secondary education boards and state
road transport corporations were formed and local road building
became a state responsibility.
• The target growth rate was 5.6%, but the actual growth rate was
2.4%.
Fourth Five Year Plan (1969-1974)
• At this time Indira Gandhi was the Prime Minister. The Indira Gandhi
government nationalised 14 major Indian banks and the Green
Revolution in India advanced agriculture.
• In addition, the situation in East Pakistan (now Bangladesh) was
becoming dire as the Indio-Pakistan War of 1971 and Bangladesh
Liberation War took funds earmarked for industrial development.
• India also performed the Smiling Buddha Underground nuclear test
(Pokhran-1) in Rajasthan on May 18, 1974, partially in response to the
United States deployment of the Seventh Fleet in the Bay of Bengal.
• The target growth rate was 5.6%, but the actual growth rate was
3.3%.
Fifth Five Year Plan (1974-78)
• The Fifth Five-Year Plan laid stress on employment, poverty alleviation
(Garibi Hatao), and justice.
• The plan also focused on self-reliance in agricultural production and
defence.
• The 20-point programme was launched in 1975. It was followed from
1974 to 1979.
• The Minimum Needs Programme (MNP) was introduced in the first
year of the Fifth Five Year Plan (1974–78).
• In 1978 the newly elected Morarji Desai government rejected the plan.
• The target growth rate was 4.4% and the actual growth rate was 4.8%.
The Rolling Plan (1978-80)
• The Janata Party government rejected the Fifth Five-Year Plan and
introduced a new Sixth Five-Year Plan (1978–1980).
• This plan was again rejected by the Indian National Congress government in
1980 and a new Sixth Plan was made.
• The Rolling Plan consisted of three kinds of plans that were proposed.
• The First Plan was for the present year which comprised the annual budget.
• The Second was a plan for a fixed number of years, which may be 3, 4 or 5
years. Plan number two kept changing as per the requirements of the Indian
Economy.
Conti…
• The Third Plan was a perspective plan for long terms i.e. for 10, 15 or
20 years.
• Hence there was no fixation of dates for the commencement and
termination of the plan in the rolling plans.
• The main disadvantage of this plan was that if the targets were
revised each year, it became difficult to achieve the targets laid down
in the five-year period and it turned out to be a complex plan.
• Also, the frequent revisions resulted in the lack of stability in the
economy.
Sixth Five Year Plan (1980-85)
• The Sixth Five-Year Plan marked the beginning of economic liberalisation.
• Price controls were eliminated and ration shops were closed. This led to an
increase in food prices and an increase in the cost of living. This was the
end of Nehruvian Socialism.
• The National Bank of Agriculture and Rural Development (NABARD) was
established for development of rural areas on 12 July 1982 by
recommendation of the Shivaraman Committee.
• Family planning was also expanded in order to prevent over population.
• The Sixth Five-Year Plan was a great success to the Indian economy. The
target growth rate was 5.2% and the actual growth rate was 5.4%
Seventh Five Year Plan (1985-90)
• The Seventh Five-Year Plan was led by the Congress Party with Rajiv
Gandhi as the prime minister.
• The plan laid stress on improving the productivity level of industries
by upgrading of technology.
• The main objectives of the Seventh Five-Year Plan were
• to establish growth in areas of increasing economic productivity,
• production of food grains, and
• generating employment through "Social Justice".
• The target growth rate was 5.0% and the actual growth rate was
6.01%. and the growth rate of per capita income was 3.7%.
The Annual Plan (1990-1992)
• The Eighth Plan could not take off in 1990 due to the fast changing
political situation at the centre and the years 1990–91 and 1991–92
were treated as Annual Plans.
• The Eighth Plan was finally formulated for the period 1992–1997.
Eighth Five Year Plan (1992-97)
• P.V. Narasimha Rao was the ninth Prime Minister of the Republic of India and head of
Congress Party, and led one of the most important administrations in India's modern
history, overseeing a major economic transformation and several incidents affecting
national security.
• At that time Dr. Manmohan Singh (later Prime Minister of India) launched India's free
market reforms that brought the nearly bankrupt nation back from the edge.
• It was the beginning of liberalization, privatisation and globalization (LPG) in India.
• India became a member of the World Trade Organisation on 1 January 1995.
• The major objectives included,
• controlling population growth, poverty reduction, employment generation, strengthening the
infrastructure, institutional building, tourism management, human resource development,
involvement of Panchayat Raj, Nagar Palikas, NGOs, decentralisation and people's participation.
• The target growth rate was 5.6% and the actual growth rate was 6.8%.
Ninth Five Year Plan (1997-02)
• The Ninth Five-Year Plan came after 50 years of Indian Independence.
Atal Bihari Vajpayee was the Prime Minister of India during the Ninth
Five-Year Plan.
• The Ninth Five-Year Plan tried primarily to use the latent and
unexplored economic potential of the country to promote economic
and social growth.
• It offered strong support to the social spheres of the country in an
effort to achieve the complete elimination of poverty.
• The satisfactory implementation of the Eighth Five-Year Plan also
ensured the states' ability to proceed on the path of faster
development.
Conti..
• The Ninth Five-Year Plan also saw joint efforts from the public and the
private sectors in ensuring economic development of the country.
• In addition, the Ninth Five-Year Plan saw contributions towards
development from the general public as well as governmental
agencies in both the rural and urban areas of the country.
• New implementation measures in the form of Special Action Plans
(SAPs) were evolved during the Ninth Five-Year Plan to fulfil targets
within the stipulated time with adequate resources.
• The SAPs covered the areas of social infrastructure, agriculture,
information technology and Water policy.
Tenth Five Year Plan (2002-07)
• The main objectives of the Tenth Five-Year Plan:
• Attain 8% GDP growth per year.
• Reduction of Poverty rate by 5% by 2007.
• Providing gainful and high-quality employment at least to the addition to the labour force.
• Reduction in gender gaps in literacy and wage rates by at least 50% by 2007.
• 20-point program was introduced.
• Target growth: 8.1% – growth achieved: 7.7%.
• The Tenth Plan was expected to follow a regional approach rather than sectoral approach to bring
down regional inequalities.
• Expenditure of ₹43,825 crore (US$6.1 billion) for tenth five years.
• Out of total plan outlay, ₹921,291 crore (US$130 billion) (57.9%) was for central
government and ₹691,009 crore (US$96 billion) (42.1%) was for states and union
territories.
Eleventh Five Year Plan (2007-12)
• It was in the period of Manmohan Singh as a prime minister.
• It aimed to increase the enrolment in higher education of 18-23 years of age group by 2011-12.
• It focused on distant education, convergence of formal, non-formal, distant and IT education
institutions.
• Rapid and inclusive growth (poverty reduction).
• Emphasis on social sector and delivery of service therein.
• Empowerment through education and skill development.
• Reduction of gender inequality.
• Environmental sustainability.
• To increase the growth rate in agriculture, industry and services to 4%, 10% and 9% respectively.
• Reduce total fertility rate to 2.1.
• Provide clean drinking water for all by 2009.
• Increase agriculture growth to 4%.
Twelfth Five Year Plan (2012-17)
• The Twelfth Five-Year Plan of the Government of India has been decided to
achieve a growth rate of 8.2% but the National Development Council (NDC)
on 27 December 2012 approved a growth rate of 8% for the Twelfth Five-
Year Plan.
• The objectives of the Twelfth Five-Year Plan were:
• To create 50 million new work opportunities in the non farm sector.
• To remove gender and social gap in school enrolment.
• To enhance access to higher education.
• To reduce malnutrition among children aged 0-3 years.
• To provide electricity to all villages.
• To ensure that 50% of the rural population have accesses to proper drinking water.
• To increase green cover by 1 million hectare every year.
• To provide access to banking services to 90% of households.
Conti..
• There is no 13th Five Year plan for India.
• Five Year Plan implemented by Nehru Govt for bringing a social and
economic development in country put to end by Modi Led Govt with the
introduction of Niti Aayog (National Institution for Transforming India )
which replaced Planning Commission.
• The new plan which is a vision document is accompanied by shorter sub-
plans – a seven-year strategy for 2017-24, and a three-year 'Action Agenda'
from 2017-18 to 2019-20. No less than 300 specific action points covering a
wide range of sectors have been drawn up as part of the 15-year vision.
• The three-year agenda is further divided into seven parts, with a number of
specific action points for each part to boost economic growth.
The NITI Aayog
• From 1947 to 2017, the Indian economy was premised on the
concept of planning.
• This was carried through the Five-Year Plans, developed, executed,
and monitored by the Planning Commission (1951-2014) and the NITI
Aayog (2015-2017).
• With the prime minister as the ex-officio chairman, the commission
has a nominated deputy chairman, who holds the rank of a cabinet
Minister.
• Montek Singh Ahluwalia is the last deputy chairman of the
commission (resigned on 26 May 2014).
Conti..
• The Twelfth Plan completed its term in March 2017.
• Revised versions of the formula have been used since then to
determine the allocation of central assistance for state plans.
• The new government led by Narendra Modi, elected in 2014, has
announced the dissolution of the Planning Commission, and its
replacement by a think tank called the NITI Aayog (an acronym for
National Institution for Transforming India).
Aims of the Five Year Plans
• Overall economic growth in terms of generating productive assets and skills as well
as income for the poor.
• Needed resources and the capabilities for running programmes.
• Demand for goods and services produced by the poorer household enterprises
significantly in response to the overall increase in incomes in the country so that
the visibility of household enterprises depends critically on the sustained increase
in national income.
• To ensure the pattern of overall economic growth itself to generate adequate
income for poorer sections through its greater impact on employment and on the
development of the less developed regions.
• Social transformation involving structural changes, educational development,
growth in awareness and change in outlook, motivation and attitudes, providing
health for the people.
Nationalisation
• The policy of nationalisation was adopted in 1969 when 14 banks was
nationalised.
• This was followed by the nationalisation of coal mines in 1972 and the
government’s taking over the control of a big private iron and steel
company and a wholesale business in foodgrains.
• The nationalisation aimed at granting credit to weaker sections.
• It is true that the credit share of agriculture, small-scale industry,
professionals and transport operators has risen sharply from 14% in
1969 to nearly 33% in 1980 and 46% in 1995, and the banks have
helped modernize the village economy.
20-Point Programme
• Indira Gandhi propounded this programmes in July, 1975 for reducing
poverty and economic exploitation, and for the upliftment of the
weaker sections of the society.
• The five important goals of this programme were:
• Controlling inflation
• Giving incentive to production
• Welfare of the rural population
• Lending help to the urban middle classes
• Controlling economic and social crimes
The programmes included in the 20-Point Programme were:
1. Increase in irrigational facilities
2. Increase in production programmes for rural employment
3. Distribution of surplus land
4. Minimum wages to landless labourers
5. Rehabilitation of bonded labour
6. Development of Scheduled Castes and Scheduled Tribes
7. Growth of housing facilities
8. Increasing power production
9. Family planning
10. Tree plantations
11. Extension of primary health facilities
12. Programmes for the welfare of women and children
13. Increase in primary education
14. Strengthening of the distribution system
15. Simplification of industrial policies
16. Control of black money
17. Betterment of the dirking water facilities
18. Developing internal resources, etc.,
• The programme was discontinued with the change of government when the Janatha Party
became the ruling at the Centre.
Socio-Economic Programmes (1958)
• To provide work and wages to the economically backward, physically
handicapped and socially maladjusted families.
• It proved financial assistance to voluntary bodies that want to
organise income-generating activities.
• Voluntary bodes will give grants and loans up to Rs.20,000/- to 3 lakhs
for setting up production units of small industries, dairies, animal
husbandry projects, self-employment units like vegetable vending,
supply of sewing machines, assistance to handlooms, etc.,
Drought Prone Area Programme (DPAP – 1972-73)
• The midterm appraisal of the fourth plan, the rural works
programmes was re-designated as the ‘Drought Prone Area
Programme’.
• In this orientation is towards area development.
• Criteria to select the area is: Low extend of irrigated areas, low level
of rainfall, erratic distribution of rainfall, and high periodicity of
drought, etc. it is entrusted to the DRDA.
• Objectives of DPAP are:
• Reducing the severity of the impact of drought
• Stabilizing the income of the people particularly the weaker sections of
society
• Restoration of ecological balance
National Rural Employment Programme
st
(NREP – 1 April, 1977)
• The NREP was planned for creating additional employment
opportunities in the rural areas with the help of surplus woodgrains.
• Initially this programme was called Food for Work Programme (FWP).
• Under this scheme, millions of man-days of employment were
created every year by utilizing lakhs of tonnes of food grains.
• The works undertaken were flood protection, maintenance of existing
roads, construction of new link roads improvement of irrigation
facilities, construction of Panchayat ghars, school buildings, medical
and health centres and improvement of sanitation conditions in the
rural areas.
Training of Rural Youth of Self-Employment
th
(TRYSEM – 15 Aug, 1979)
• The equip the rural youth in 18-35 years of age group, who are below the poverty
line with necessary skills and technology to enable them to seek self
employment.
• Wage employment: special provisions in the scheme are:
• 50% of the trained youths should be from scheduled castes and scheduled tribes.
• 40% of youth trained should be women.
• In case of widows, 5 years upper age limit will be relaxed, 3% for physically handicapped.
• Training will be conducted in: Polytechnics, Krishi Vigyan Kendras, Nehru Yuvak Kendras,
Khadi and Village industries boards, state institute of rural development, extension training
centre, etc.
• Duration of training is flexible
• Every TRYSEM trainee is potential IRDP beneficiary
• Trainees will receive stipends during their training
• Tool kits at free of cost is supplied
Integrated Rural Development Programme
nd
(IRDP – 2 Oct, 1980)
• Its objectives is to enable selected families to cross the poverty line by
taking up self-employment ventures in a variety of activities like
agriculture, horticulture and animal husbandry in the primary sector;
weaving and handicrafts in the secondary sector; and service and business
activities in the tertiary sector.
• The aim of the IRDP is to see that a minimum stipulated number of families
are enabled to cross the poverty line within a given investment and in a
given time-frame.
• The IRDP was launched by the Centre in 20 selected districts, but from Oct,
1982 it was extended to all the districts in the country.
• The ministry of rural development, Government of India is responsible for
the release of central share of funds, policy formulation, overall guidance,
monitoring and evaluation of the programme.
Employment Guarantee Scheme (EGS 1981)
• To generate employment among villagers and create assets in the
rural areas.
• Villages are selected from dry and drought prone areas where the
agriculture labourers are without any job due to failure in rainfall.
Development of Women and Children in Rural
Areas (DWCRA – 1982-83)
• It is sub-scheme of IRDP. As a pilot in 1982 it has started in 50 districts, later
in 1994-95 extended to all districts of the country.
• Objectives of DWCRA are:
• To improve the living conditions, socio and economic status of women and children.
• Provision of opportunities for self-employment and access to basic social services
• To provide income generating skills and activities for poor women
• To encourage the habit of thrift and credit among women to make them self-reliant
• To create employment opportunities for rural women, who are below poverty line.
• To improve the access of rural women to health, education, safe drinking water,
sanitation and nutrition.
• To enhance production among rural poor.
Employment and Income Generating Training Cum
Employment Cum Production Units (1982-83)
• Trains the people in trades, electronics, printing, binding, watch
manufacturing, handlooms, computer programming etc., for the
weaker section of the society and provide them employment on a
sustained basis.
• It is carried out through public sector undertaking / corporations /
voluntary organisations.
• Norwegian agency for international development will assist the
activities like stipend for trainees Rs. 250/- per month, cost of
equipment, salary of instructors, rent of the building.
Self Employment to Educated Unemployment
Youth (SEEUY, 1983-84)
• Objective
• To provide opportunities of employment and income through creating
productive assets to educated unemployed youth
• To encourage educated unemployed youth to undertake self-employment
ventures in industry, service, business by providing package of financial
assistance.
• Target group
• Youth who studies matriculation and above
• 18-35 years of age
• Family annual income should not be more than Rs.15,000
• Women and technically trained persons are given due consideration.
Self Employment Programme for Urban Poor
(SEPUP, 1986)
https://www.ges2017.org/govt-of-india-support-for-entrepreneurs/
Thank you