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Poverty in india
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Poverty indicators and analysis with special reference to India and Andhra Pradesh State

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  1. 1. Dr. N. Sai Bhaskar Reddy, GEO Dr. MCR HRD IAP, Hyderabad
  2. 2. Source:,,contentMDK:21880725~pagePK:141137~piPK:141127~theSiteP K:295584,00.html The developing world is poorer than we thought but no less successful in the fight against poverty - indicates that the number of poor people in the world is higher than previously estimated but the pace of poverty reduction remains the same. - Martin Ravallion and Shaohua Chen Based on this new data, the old international poverty line of $1.08 a day in 1993 Purchasing Power Parity (PPP) prices has been updated to a new international poverty line of $1.25 a day in 2005 PPP prices. the number of poor people living under $1.25 a day has increased from 421 million in 1981 to 456 million in 2005.
  3. 3. Indian poverty • Poverty is widespread in India, with the nation estimated to have a third of the world's poor. According to a 2005 World Bank estimate, 41.6% of the total Indian population falls below the international poverty line of US$ 1.25 a day • A recent report by the Oxford Poverty and Human Development Initiative states that 8 Indian states have more poor than 26 poorest African nations combined which totals to more than 410 million poor in the poorest African countries.
  4. 4. According to a recent Indian government committee constituted to estimate poverty, nearly 38% of India’s population (380 million) is poor. This report is based on new methodology and the figure is 10% higher than the present poverty estimate of 28.5%. Note: The committee was headed by SD Tendulkar has used a different methodology to reach at the current figure. It has taken into consideration indicators for heath, education, sanitation, nutrition and income as per National Sample Survey Organization survey of 2004-05.
  5. 5. Economic growth Per capita Income and Poverty Ratios (1973-74 to 2004-05)
  6. 6. • Andhra Pradesh, Madhya Pradesh, Orissa, West Bengal and Bihar together account for 40% of India’s rural poor. • 16% of India’s population is classified as scheduled caste, and 8% as scheduled tribe. These groups are dominantly poor and rural and face particular socio-cultural barriers to development. – Source: Compiled from various sources including National Census (2001), National Sample Survey, 61st round (2004/05); National Family Health Survey 3 (2005/06); Mahendra Dev and Ravi ‘Poverty and Inequality: All India and States, 1983-2005’. Economic and PoliticalWeekly. (2007). pp 509-521.
  7. 7. URBAN POVERTY PROFILE • As per the Census of India estimates, the urban poverty in Hyderabad is measured at 23% of total population. This level is comparatively high as against Delhi (8%), Kolkata (6%) and Chennai (20%) but slightly better than that of Mumbai (27%). However, as per the data available from urban development/ planning authorities, the number of people living below the poverty line (BPL) is 5.40 lakhs, • Hyderabad is characterized by a very significant presence of the slum population, with a growing number of them. Slum settlements have multiplied over decades and the living conditions of the poor have not improved. Slums are scattered across the city and surrounding municipalities, with high population densities and the number of people inhabiting them estimated to be around two million.
  8. 8. Government departments (AP) • Agriculture and Co-Operation • Animal Husbandry and Fisheries • Backward Classes Welfare • Consumer Affairs Food & Civil Supplies • Energy • Environment, Forests, Science and Technology • FinanceFinance (PMU)Finance (Project Wing) • General Administration • Health, Medical and Family Welfare • Higher Education • Home • Housing • Industries and Commerce • Information Technology and Communications • Infrastructure and Investment • Irrigation • Labour, Employment Training and Factories • Law • Minorities Welfare • Municipal Administration and Urban Development • Panchayat Raj and Rural Development • Planning • Public Enterprises • Rain Shadow Areas Development • Revenue • School Education (SE Wing) • School Education (SSA Wing) • Social Welfare • Transport, Roads and Buildings • Women Development, Child Welfare and Disabled Welfare • Youth Advancement, Tourism and Culture
  10. 10. DISTRIBUTION OF MANDALS TO FEMALE LITERACY RATES (1991-2001) 0 100 200 300 400 500 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100 1991 2001 DISTRIBUTION OF MANDALS TO MALE LITERACY RATES (1991-2001) 0 100 200 300 400 500 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100 1991 2001
  11. 11. Mahabubnagar_91 Mahabubnagar_01 Ananthapur_91 Ananthapur_01 Prakasam_91 Prakasam_01 Warangal_91 Warangal_01 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100 PROGRESS OF LITERACY RATE PERCENTAGE OF MANDALS IN EACH DISTRICT LITERACY RATE WISE 1991 - 2001 FEMALE MALE
  12. 12. PRIMARY ENROLMENT - DROP OUT RATES (1999-00 & 2002-03) 0 20 40 60 80 100 120 140 Boys_Enrol Boys_Dropout Girls_Enrol Girls_Dropout Boys_Enrol Boys_Dropout Girls_Enrol Girls_Dropout 1999-2000 2002-2003
  13. 13. 20 km0 10 DPAP APRLP Mandals 5 Railway 183 20 Other Mandals 50 National highway State highway Number of SHGs per habitation N Number of SHGs per habitation Dec 2001 Spatial distribution of SHGs PIP AND POVERTY DENSITY TO BE MAPPED AND SUPERIMPOSED ON ACUTE POVERTY AREAS ON SIMILAR LINES
  15. 15. The Guiding Principles • State driven and owned • Results oriented – Sets medium and long term goals for Poverty Reduction and eradication, including key outcomes and intermediate indicators • Comprehensive – Multidimensional nature of Poverty to cover areas like rapid economic growth, macro economic stability, structural reforms and social stability-leading to cohesive government policy and to enable poor to share the benefits of growth
  16. 16. Ingredients for the Approach • Need for evidence based policy making : The Stages – Establish Poverty Baseline * – Set Poverty Reduction Targets – Define Pro Poor Development Strategy – Monitor Progress (Annual) – Feedback to Policy – Evaluate Impact (once three years) * Improve timeline, increase reliability, reduce costs, improve dissemination, develop new products e.g.maps, graphics etc.,
  17. 17. Current Situation of A.P., • A.P. has a very Vibrant Poverty Reduction approach and number of programmes have incorporated steps required to implement and monitor, but: • HOW DOES THE BIGGER PICTURE LOOK LIKE? • Do the Missions have a comprehensive agenda and professionals tools for way forward? • If yes,do they have review mechanism for annual plans and mid course correction? • Do they have disaggregated poverty analysis and sub project based approach for extreme poverty? • How externalities are being addressed?
  18. 18. DEVELOP DRAFT ACTIONPLAN • Develop Draft action plan for implementation of PRS in coordination with sectors • Finalize action plan for implementation of PRS based on consultation with key stakeholders,and begin implementation(?) • Identify key Poverty Monitoring Indicators, and mechanisms for their regular updating and monitoring
  19. 19. Monitoring and Review • AP has Mission Based Approach – Literacy – Water – Employment – Poverty – Health& Family welfare?
  20. 20. Missions to facilitate achievement of Goal • Bring in convergence with other departments • Facilitate annual review, M&E, Leading to next plan • How logframe and sectoral plans linked and lead to planning • End of year review to plan for next year and lacunae to be addressed through new inputs like - research, policy,training, process monitoring, new practices,bilateral support etc.
  21. 21.  Reduce extreme poverty by half by 2015  Halve proportion of people suffering from hunger by 2015  Universal primary education by 2015  Promote Gender Equality and empower Women  Reduce under 5 mortality by 2/3rd in 2015  Reduce maternal mortality ratio by 3/4th by 2015  Half by 2015 and begin to reverse the spread of HIV / AIDS  Half and begin to reverse malaria and other diseases  Integrate priniciple of sustainability development and reverse the loss of environmental resource  Halve the proportion of people without access to safe drinking water by 2015  A significant improvement in lives of at least X million slum dwellers
  22. 22. Poverty Alleviation Programmes • Income enhancement programmes – self employment and wage employment (SHGs, NREGA, etc) • Programmes providing food and nutritional security (PDS, ICDS) • Minimum services – housing, sanitation, health, education and income maintenance (pension, maternity, etc) • Natural resource management and livelihoods
  23. 23. • Accelerated Irrigation Benefit Programme (AIBP) • Jawaharlal Nehru National Urban Renewal Mission (JnNURM) • National Social Assistance Scheme (NSAS) or National Social Assistance Programme (NSAP) • National Programme for Adolescent Girls (NPAG) • Thrift savings plan (TSP) • Rashtriya Krishi Vikas Yojana (RKVY) • Backward Regions Grant Fund rogramme (BRGF) • National E- Governance Action Plan (NEGAP) • Additional Central Assistance (ACA)
  24. 24. The Concept of Rural Devt. • Has changed in the past three decades • Until 70’s RD was synonymous with agri. devt. • 80’s – ‘a strategy designed to improve the eco. and soc. life of a specific group of people – the rural poor’ World Bank – Concerns were deepening rural poverty – Changing concept of devt. – Emergence of diversified rural economy – Non-income dimensions of poverty recognised • Today – Inclusive RD. • Goes beyond growth , income and output • Quality of life – health, edn, nutrition, living conditions • Reduction in gender equalities
  25. 25. Challenges in Rural Development • 71% of India’s popn. is rural • 29% of rural popn. (>200 million people) is below the national poverty line. • Rural poverty declined at 0.73% per year over the period 1993-2005, down from 0.81% in 1983-94. • 46% of rural children under five, 40% of adult women and 38% of adult men are underweight (compared to 33%, 25% and 26% for urban). • 59% are small and marginal farmers and landless labourers who depend on agriculture.
  26. 26. Agriculture • India ‘s population is 1.21 billion in 2011. 67% are rural. Majority are in agriculture. • Importance of agriculture in Indian economy. Although it contributes only 15% of GDP, the share of workers is about 55%. • Marginal and small farmers dominate • Major crops are rice, wheat, maize, coarse cereals, groundnut, cotton, sugarcane, fruits and vegetables • 60% of cultivated area is rainfed as only 40% of area is under irrigation. • Rural poverty is 41%in 2004-05. • Agriculture is a ‘State Subject’. In other words, the policies of provinces are also important
  27. 27. Community Development Programme •Gandhian notion of CD – Rural upliftment and reconstruction – 19 Point programme – Khadi & Village, Industries, Sanitation, Health care, Economic equity, Communal Harmony, Education, Women Empowerment CD assumed high propriety after independence – 1952 GOI launched 55 CD projects each covering 300 villages / popn.of 30,000 – 1953 National Extension Service project – similar objective, to cover larger areas – Began as a comprehensive development effort to rebuild rural life and livelihood.
  28. 28. Panchayti Raj Institutions • 1957 Balwant Rai Mehta Commitee appointed to suggest measures to remove obstacles from CDP • Three tier system of local Govt. – – Gram Panchayat (Village level), – Panchayat Samiti (Block level), – Zilla Parishad (District level) • The three-tier system aimed to link Govt. and elected representative. • To decenterlise decision making • To shift decision making closer to people and encourage their participation • To place Bureaucracy under people’s control
  29. 29. • PRIs only partially able to meet these expections • Elite capture of PRIs • Welfare of weaker sections ignored • Mid 60s • Focus shifted to agriculture production • Technological orientation to agriculture • Central Govt. brings special Program's bypassing PRIs – SFDA (Small Farmers Devt Agency),
  30. 30. – IAAP (Intensive Agricultural Programmes) – IADP (Intensive Agricultural District Programme) – TDA (Tribal Development Agency) – MFAL (Marginal, Small Farmers and Agricultural Labourers Development Agency ) – Command Area Development, – Drought Prone Area and Hill Area • All these were financed and operated directly by the Central Govt. • Agri initiative of late 60s increase food production • Benefits reaped by rich, non-poor farmers in irrigated areas. • Small and Marginal Farmers trailed • Productivity increase from the Green Revolution in 1970s- 80s, however, did reduce rural poverty
  31. 31. Integrated Rural Devt. Programme • IRDP introduced in 1979 for rural poor and weaker sections of society • Earlier Programmes relied on delivery systems which supressed self-reliance • Shift from community devt. to schematised planning
  32. 32. • Linkage between infrastructure and employment scheme drawn • Programme design has credit based self- employment activity and not as subsidy distribution exercise • Decentralization of programme implementation through DRDA and Block Authority • Sub schemes – – Devt. Of women and children (DWCRA), – Traning of Rural Youth for Self -employment (TRYSEM), – National Rural Employment Programme (NREP), – Jawahar Rojar Yojana (JRY)
  33. 33. • By Mid 80s – there are improvements in meeting the minimum needs of poor . • Progress in Elementary education, Health, Water supply, Roads • Still around 1993-94, was 32% of population was poor • In SC & ST this was higher by 17-22% • Small land holding , Landlessness, Illiteracy were key factors
  34. 34. Decentralized Planning For Rural Devt. • Based on Sivaraman Committee report, Planning Comn. urged states in 1987 to consider Block as unit of Planning • At Dist. level District Planning and Development council / District planning Board – has elected and nominated reps headed by a minister or district collector or a non official • It planned, coordinated, monitored, reviewed, and finalized plan at block level
  35. 35. • However people’s participation were still limited • Gap between Bureaucracy and people Panchayati Raj Reforms – 73rd amendment in 1992 • Empowered PRIs to participate in devt. and decentralized planning • Dependency of villagers on Govt. officials and machinery reduced
  36. 36. • 29 items of Devt. Transferred to PRIs – – Agriculture – Forestry and Envt. – Industry infrastructure, – Minimum needs – Social welfare – Poverty alleviation – Maint. of community assets • More than 34 lakh elected reps of Panchayats • Broadest rep. base in any country in world • Reservation for weaker section & women • Gram sabha – Forum for discussion and annual planning • Self help groups 9th five year plan(1997-2002)
  37. 37. Between 1990 and present Phase • Liberal economic policies and reforms introduced in the early 1990s • Driven by rapid growth in the manufacturing and service sectors • Growth rate in agriculture has declined since 1997 and remains low. • The share of agriculture in GDP has declined from 43% in 1970 to 22% in 2004. • Public investment in irrigation has fallen
  38. 38. Thrust areas • Economy growing at around 8% • Paradigm policy shift in rural development - rural poor treated as resource, an integral part of the devt. strategy, and not as a burden • Objectives are to – Bridging the rural-urban divide. – Guaranteeing wage employment and ensuring food security – Making rural people the arbiters of their own destiny and to provide for their economic uplift by self employment – Creating rural infrastructure for better economic opportunities and growth – Ensuring dignified living – shelter,water, clean envt. – Restoring lost or depleted productivity of the land for better livelihood opportunities Approved outlay 1st 2 yrs of 11th Plan (2007- 2012) Rs 36560 crores and 42400 crores
  39. 39. Bharat Nirman • Under Bharat Nirman, developmental works are undertaken in the areas of irrigation, road, rural housing, rural water supply, rural electrification and rural telecommunication connectivity. • Three of the goals of Bharat Nirman fall within the mandate of the Min. of Rural Development: – rural connectivity – rural housing – rural water supply • Specific targets so that there is accountability in the progress of this initiative. • Bharat Nirman an effort to unlock rural India's growth potential and key for ushering a new era • 'National Common Minimum Programme' (NCMP)
  40. 40. Key Programmes • 'National Rural Employment Guarantee Act'2005 (NREGA) • Act guarantees 100 days of employment in a financial year to every household • a social safety net for the vulnerable groups and an opportunity to combine growth with equity • Structured towards harnessing the rural work-force, not as recipients of doles, but as productive partners in our economic process • assets created result in sustained employment for the area for future growth employment and self-sufficiency • Operationalised from 2nd February, 2006 in 200 selected districts, extended to 130 more districts in 2007-08. • The remaining districts (around 275) of the country under the ambit of NREGA from 1st of April, 2008
  41. 41. Sampoorna Grameen Rozgar Yojana (SGRY) • launched on 25th September 2001 • objectives of providing additional wage employment ensuring food security while creating durable community, social & economic infrastructure and assets in the rural areas • SGRY along with National Food for Work Programme (NFFWP) have been subsumed in the NREGA districts
  42. 42. Swarnjayanti Gram Swarozgar Yojana (SGSY): • Self employment programme for the rural poor. • The assisted families (Swarozgaris) may be individuals or groups (Self-Help Groups). • Emphasis is on the group approach • To bring the assisted poor families above the poverty line by providing them income generating assets through a mix of bank credits and government subsidy • Organization of poor into Self-Help Groups and taking care of training, credit, technology infrastructure and marketing • Implemented by the District Rural Development Agencies (DRDAs) with the active participation of PRI’s the Banks, the line Departments, and NGO’s
  43. 43. Pradhan Mantri Gram Sadak Yojana (PMGSY) • Launched December, 2000 • 100% centrally sponsored scheme to provide connectivity to unconnected habitations • Road connectivity to all habitations with a population of thousand (500 in case of hilly or tribal areas) with all weather roads by 2009 • Will lead to rural employment opportunities, better access to regulated and fair market, better access to health, education and other public services • Bridge the rural-urban divide and pave the path of economic growth.
  44. 44. Indira Awas Yojana (IAY) • Since 1985-86 to help build or upgrade homes to householdsbelow the poverty line • Ceiling on construction assistance under the IAY currently is Rs. 25,000/- per unit for the plain areas and Rs.27,500/- for the hilly terrains/difficult areas • To impart transparency to the selection process of beneficiaries, a 'permanent waitlist' is being prepared under IAY. • 60 lakh houses are to be constructed in a period of 4 year from 2005-06 • Against this overall target, 15.52 lakh were built in 2005-06 and 14.98 lakh homes in 2006-07
  45. 45. National Social Assistance Programme (NSAP) • To provide public assistance to its citizens in case of unemployment, old age, sickness and disablement within the limit of the economic capacity of the State • Launched for fulfillment of this obligation in 1995-96. – National Old Age Pension Scheme (NOAPS) • -Rs.200 per month from1st April 2006, – National Family Benefit Scheme (NFBS) – National Maternity Benefit Scheme (NMBS). – (IGNOAPS) launched on 19.11.2007 • citizens above the age of 65 years and living below the poverty line • Annapurna Scheme for providing free good grains to the elderly
  46. 46. Accelerated Rural Water Supply Programme ARWSP • Central government supplements States’ efforts for providing safe drinking water and sanitation by providing financial and technical assistance under two centrally sponsored programmes – 'Accelerated Rural Water Supply' (ARWSP) – 'Central Rural Sanitation Programme' (CRSP). – By 2009, 55,067 uncovered, 3.31 lakh slipped back and 2.17 lakh quality affected habitations are to be addressed – approximately 6 lakhs habitations where water supply is a problem to be covered
  47. 47. 'Total Sanitation Campaign' (TSC) • 'Central Rural Sanitation Programme‘ (CRSP) launched in 1986 aims at improving the quality of life of the rural poor and to provide privacy and dignity to women in rural areas. • In 1999, 'Total Sanitation Campaign' (TSC) under restructured CRSP was launched to promote sanitation in rural areas. • Follows participatory demand-responsive approach, educating the rural households about the benefits of proper sanitation and hygiene
  48. 48. Selected Institutions National Institute of Rural Development (NIRD) More than 50 years of existence is an apex body for undertaking. • Training • Research • Action research • Consultancy functions
  49. 49. Council for Advancement of People’s Action and Rural Technology (CAPART) Founded in 1986 For improving the quality of life in the rural areas, particularly the poor and socially disadvantaged . People below the poverty line, scheduled castes and tribes, bonded labour, women and people with disabilities are priority focus groups for CAPART. The major goals of CAPART are: To support voluntary organisations in implementing projects for sustainable development in rural areas. • To act as a national nodal point for development and promotion of appropriate rural technologies. • To promote and support voluntary action and people's participation for rural development, through capacity-building for voluntary organisations and rural communities.
  50. 50. • To act as a data bank and clearing house for information on the voluntary sector, rural technologies and rural development. • Facilitating community action for development. • Building awareness on critical development issues. • Building and strengthening village-level people and organisations. • Promoting the development and dissemination of appropriate rural technologies. • Strengthening the capacities of voluntary organisations in rural areas. • Creating employment opportunities and economic self- reliance. • Creation of community assets and fulfilment of basic needs. • Conservation and regeneration of the environment and natural resources. • Enabling women, persons with disabilities and other disadvantaged groups to participate in development
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Poverty indicators and analysis with special reference to India and Andhra Pradesh State


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