POVERTY IN INDIA

INTRODUCTION

      Poverty is a serious problem country has been  suffering from the beginning of the present country especially in third world countries.

      It aggravated with the increase in population and growing inequality in income distribution.

The concept of poverty

      There is no a common definition for Poverty.

      It broadly said that poverty is a situation where a section of  the society, having no fault of their own, is denied of  even basic necessities of life.

      Or it is associated with socially perceived deprivation with respect to basic human needs.

      The term poverty is multi-dimensional (It consist both economic and social factors)

TYPES OF POVERTY

1. Absolute  Poverty
• It is those who do not have specific minimum level of income needed to satisfy the basic physical needs of food, clothing and shelter in order to have continued survival.
• It further divided into Chronic poverty & Temporary poverty.
• Relative Poverty
• It is the extreme from of inequality in standard of living and degree of protection against insecurity or those whose income below the mean income are called relatively poor.

Measurements of poverty

1. Poverty Line
2. Head Count Ratio
3. Poverty Gap Method
4. Income Gap Ratio
5. Sen Index of Poverty
6. Human Poverty Index( HPI)
7. Multi-dimensional Poverty Index (MPI)
8. Global Hunger Index (GHI)

Extend of poverty in india

      The calculation of poverty measures requires two components, they are distribution of house hold expenditure and poverty line.

Estimates of Poverty
YEAR	Poverty Ratio(%)			No. of Poor(million)
	Rural	Urban	all India	Rural	Urban	all India
1973-74	56.4	49	54.9	261	60	321
1977-78	53.1	45.2	51.3	264	65	329
1987-88	39.1	38.2	38.9	231.9	75.2	307.9
1993-94	37.3	32.4	36	244	76.3	320.3
1999-2000	27.1	23.6	26.1	193.2	67.1	260.3
2004-05	41.8	25.7	37.2	326.3	80.8	407.1
2009-10	33.8	20.9	29.8	278.2	76.5	354.7
2011-12	25.7	13.7	21.9	216.5	52.8	269.3
Source : Economic Survey 2012-13

Debates on the recent trends in poverty

(Conceptual issues)

      The design of the National Statistical Survey (NSS), Consume Expenditure Survey (CES) made a departure from the existing practice.

      The official estimates based on survey data with a reference period of 30 days for all items was continued till the 55^th round. During 55^th round the consumption expenditure on food items on a 7 day reference period.

      Various surveys confirmed that the estimation is weak.

      Another problem is the non-comparability of poverty figures for the 1990’s based on this sample with large sample survey.

      Divergence between the NSSO and National Accounts statistics (NAS) consumption expenditure data. If the consumption expenditure of the country as a whole of 41%. Thus the NSS survey are capturing about 20% to 30%less than the NAS.

      The procedure followed by the planning commission to tally the NSS consumer expenditure data with NSS estimates of aggregated consumption has been widely criticized.

POVERTY ALLEVIATION PROGRAMMES

      There are so many programs implemented by state and central govt. to eliminate the poverty. There are separate eradication programs for both rural area & urban area.

Rural poverty eradication programs

a)      Swarnajayanthi Gram Swarozgar Yojana (SGSY)

      It is launched by the union ministry of rural development in1999. It aims to provide self employment to the poor as to bring them above the poverty line.

      The purpose of this program is to establish a large no. of micro enterprises in the rural areas by organizing the poor into Self-Help Groups(SHG) through a mix of bank credit and governmental subsidy.

      SGSY now restructured as the National Rural Livelihood Mission (NRLM) has been renamed ‘Aajeevika’ and implemented in mission mode across he country since 2011.

b)      Sampoorna Grameen Rozgar Yojana (SGRY)

               

      The Employment Assurance Scheme (EAS) & The Jawahar Gram Samridhi Yojana (SJSY) were merged into the SGRY in 2001.

      It aims at providing additional wage employment and to ensure good security so as to improve the nutritional levels of the poor.

      This program is a centrally sponsored scheme on cost sharing basis between the Centre & State in the ratio of 75:25.

      It implemented through the Panjayath raj institutions.

      Indira Awaas Yojana (IAY)

                      It launched in 1999-2000.

      The objective of IAY is to help construction of dwelling units by members of SC/ST, free bonded labourers and also non SC/ST rural poor below poverty line.

      The beneficiaries of the scheme are selected by Grama sabhas.

      Under the plan the allocation the house is done in the name of the female member of the benefited family or in the joint names of husband and wife.

      At present IAY is one of the six components of the Bharat Nirman Programme.

      It is the flagship programme for rural housing.

d)      Mahathma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

               

      After the notification of the National Rural Employment Guarantee Act 2005, a new scheme named National Rural Employment Guarantee Scheme (NREGS), it later changes as MGNREGS in 2009.

      It seeks to enhance the livelihood security of the households in rural areas.

      It aims to providing at least 100 day guaranteed wage employment in every financial year to every households whole adult members are willing to do unskilled manual work.

The Salient Features of MGNREGS

1. Right based frame work it is for adult members of the rural household willing to do unskilled manual work.
2. Time bound guarantee 15 days for provision of employment, else unemployment allowance.
3. Guaranteed employment up to 100 days of guaranteed wages employment in a financial year per household.
4. Labour intensive work 60:40 wage and material ration for permissible works.
5. Decentralized planning grama sabhas to recommend works. At least 50% of the works by Gram Panjayath for execution.
6. Women empowement (1/3)
7. Funding

90% by central govt. & 10% by state govt.

      The Gram Panjayath is the single most important implementation agency for executing works.

      During 2012-13(Apr-Jan) about 4.39 crore households have been provided employment of 156.01 crore,  of which 82.58 crore (53%) were availed by women, 34.56 crore(22%) by SCs & 21.90 crore (16%)by STs.

               

      At present it focus on providing maximum days of employment, formation of labour banks of workers, creating inter-sectoral convergence, taking up large works of major revers, and natural resource management etc..

e)            Kudumbashree Programmes     

      Kerala is seeking to achieve a break in participatory poverty reduction through Kudumbashree.

      The state poverty eradication mission implements this programme under the leadership of the local governments.

      The programme organizes the poor women below poverty line with a focus on self-help groups (Neighborhood groups-NHG) & demand led convergence of available services & resources.

      This programme includes (a) Micro finance (b) Community based organization (c) Linkage banking,(d) Lease-bad farming & (e) strengthening of Bala sabha, Ashraya etc..

URBAN poverty eradication programs

a)      Swarna Jayanthi Shahari Rozgar Yojana (SJSRY)

          It is launched in 1997.

      It provide gainful employment to the urban employed and urban employed poor by setting up self employment ventures and taking up wage employment in public works.

      It included urban women self help program, urban wage employment program, urban community development network etc.

      This program is being re-casted as National Urban Livelihood Mission in 2013-14.

b)            Integrated Housing and Slum Development Progamme (IHSDP)

      It launched during 2006-07 by combining two earlier schemes Valmiki Ambedkar Awas Yojana (VAMBAY) & National Slum Development Programme (NSDP).

      It aims at the holistic development of slums in urban areas.

      The components for assistance under the scheme include slum improvement or up gradation, relocation of projects including up gradation houses and infrastructural facilities.

c)            Prime Minister’s Integrated Urban Poverty Eradication Programme (PMIUPEP)

      It was launched in 1995.

      The objective of PMIUPEP was to attack the several root causes of urban poverty simultaneously, and it also aims at social sector goals, community empowerment convergence through sustainable support system etc.

Major Ongoing Programs for Poverty Alleviation & Employment Generation  

1. Prathana Mantri Gramodaya Yojana (PMGY)
2. National Rural Livelihood Mission (NRLM)
3. Sampoorna Gramin Rijgar Yojana (SGRY)
4. Rural Housing Schemes
• Indira Awas Yojana (IAY)
• Credit Cum Subsidy Schemes (CCSS)
• Samagra Awas Yojana (SAY)
• Prime Minister’s Rojgar Yojana (PMRY)
• Pradhan Mantri Gram Sadak Yojana(PMGSY)
• Drought Prone Area Program (DPAP)
• Desert Development Program (DDP)
5. Integrated Wasteland Development Program (IWDP)
6. Antyodaya Anna Yojana (AAY)
7. Swarna jayanti Shahari Rozgar Yojana (SJSRY)
8. Valmiki  Ambedkar Awas Yojana (VAMBAY)
9. MNREGP
10. Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
11. Ntional Urban Livelihood Mission (NUML)
12. National Social Assistance Programmes
• Indira Gandhi National Old Age Pension Schemes
• Indira Gandhi National Widow Pension Schemes
• Indira Gandhi National Disability Pension schemes
• National Family Benefit Scheme

17. Integrated Watershed Management Program

Criticism of Poverty Alleviation Programmes

1. Allocation of funds and determinants of targets were made without considering the size of population.
2. Selection of schemes not done in a rational manner.
3. It failed to recognize  the crucial importance of increased flow of social inputs through social security, family welfare etc.
4. This programs neglected the disabled, sick and socially handicapped persons.
5. This programs ignored the consequences of the earning activities of the poor people in terms of occupational health hazards and adverse ecological factors.

Conclusion

      In India, the extent of poverty is diminishing by the years.

      It is through the eradication programs of poverty.

      There are so many contradictions in calculating the poverty.

      Anyway, to achieve success in the poverty eradication programs along with the economic reforms introduced in the country, alternative strategies for empowering the people to help themselves are to be designed.

References

•       Indian Economy and its growing dimensions – P.K. Dhar

•       Pratiyogita Darpan – Indian Economy - Magazine