Poverty is indeed a global issue. Its eradication is considered integral to mankind's quest for sustainable development. Over the years the Government has taken various efforts to eradicate poverty. It was felt that the poor require special attention and assistance to help them improve their condition. Poverty alleviation has been one of the underlying principles of the planning process in India. After India attained its independence in 1947, one of its primary areas of concern was poverty alleviation. The Planning Commission was set up in 1950. Five Year Plans were started to develop the country in a systematic manner. A sum of Rs. 2378 crores was allocated in the First Five Year Plan (1951-56) for various developmental projects. The emphasis was on removal of unemployment, raising standard of living and ultimately removal of poverty.
Efforts had been made by various governments during last few decades to eradicate poverty. Following were the main strategies adopted.
1. Food for Work-Programme (1977).
2. To provide work opportunities for the rural people.
It was felt that the problem of employment in rural areas is mainly of seasonal unemployment and under-employment. Hence, the focus should be on:-
(a) Work opportunities during each employment season.
(b) Create durable productive assets e.g., roads, canal and minor irrigation projects.
A large number of people in rural areas were without assets. Even those, who had some, were meager. This segment depends mainly on wage employment as they had no land and no skills by which to earn their livelihood.
These could take any or both of the following forms:-
1. Cash
2. Food grains by utilising surplus stock of food grains.
This was first introduced in 1978-79 to provide assistance to rural poor in the form of subsidy and bank credit for productive employment opportunities.
Every person who has done the work given to him under the scheme shall be entitled to receive wages at wage rate for each day of work.
It aims at providing self employment to the rural poor through acquisition of productive assets or appropriate skills that would generate additional income on a sustained basis to enable them to cross the poverty line.
Assistance is provided in the form of subsidy and bank credit.
Small and marginal farmers, agricultural labourers and rural artisans living below the poverty line.
(a) SC/ST families Rs. 6,000
and physically handicapped
(b) Others
(i) Non-DPAP/non-DDP areas Rs. 4,000
(ii) DPAP or DDP areas Rs. 5,000
DPAP (Drought Prone Area Programme).
DDP (Desert Development Programme)
This scheme aims at mitigating the adverse effects of drought on the production of crops and livestock, besides productivity of land, water and human resources. It strives to enhance restoration of ecological balance. Also, it seeks to improve the economic and social status of the poor and the disadvantaged sections of the rural community.
It is a people's programme with the State assistance. Allocation is to be shared by the Centre and State on 75 : 25 basis. NGOs can approach the District Rural Development Agency for appointment as Project Implementation Agencies.
SC/ST 50%
Women 40%
Physically handicapped 3%
Progress from 1980-96
(a) Families covered 50.99 million
(b) Expenditure Rs. 11434.27 crore
(c) Investment Rs. 28047.65 Crore
(d) Subsidy Rs. 9669.97 Crore
(e) Credit disbursement Rs. 18377.68 Crore
SC/ST 44.75%
Women 27.07%
1. The coverage of women was lower than the target of 40%.
2. It was successful in providing incremental income to poor families.
3. Failed to enable the beneficiaries to cross the poverty line on a sustained basis because of a low per family investment.
4. In real terms, inadequate increase. Effect of inflation.
1. Formulation of a district/block level employment plan.
(a) For skilled/unskilled work
(b) No. of people needing work
(c) Work opportunity
2. Prepare projects for each block.
1. Social forestry.
2. Pasture development.
3. Soil and water conservation.
4. Irrigation and drainage.
5. Sanitation.
6. Village ecology and environment.
1. 10% of resources for exclusive benefit of SC/ST.
2. 10% for social forestry.
50% each between the Centre and State.
1. Work execution by Panchayat Raj institutions.
2. Implementation by District Rural Development Agencies.
Voluntary organisations of repute.
1. Lacked direct focus on target group population.
2. Asset building works suffered from lack of expertise and high grade material.
3. Lack of full utilisation of 10% outlay for SC/ST.
To eradicate poverty, unemployment and under employment among rural landless.
1. Guaranteed employment to at least one member of every landless labourer household for 80 to 100 days.
2. Create durable assets to strengthen rural and economic infrastructure.
3. Highest priority to labour intensive projects in backward areas drawn by the State and approved by the Centre.
4. Wages in form of food grain.
Meant for generation of additional To provide guaranteed employment to at employment for unemployed and least one person of every landless labour employed shared equally by the household upto 100 days a year. It is entirely State and the Centre. financed by the Central Government.
The rural employment programmes NREP and RLEGP were merged into Jawahar Rojgar Yojna. This was introduced during April 1989. The intention was to help at least one member of each poorest family by providing employment for about 50 to 100 days in a year at his own work place or residential area. This scheme was implemented in about 2,20,000 villages all over the country. It is a poverty alleviation scheme, which falls under the category of works programme for creation of supplementary employment opportunities. It was launched on 1st April, 1989 by amalgamating two wage employment programmes viz., NREP and RLGEP. Jawahar Rojgar Yojna includes two sub-schemes viz., Indira Avas Yojna (IAY) which is a housing scheme and the Million Wells Scheme (MWS). In April 1999, this scheme (JRY) was replaced by Jawahar Gram Samridhi Yojna (JGSY).
A number of other developmental schemes were launched between 1999 and 2004. These included Swarnajayanti Gram Swarojgar Yojna (SGSY) in 1999, Pradhan Mantri Gram Sadak Yojna (PMGSY) and Pradhan Mantri Gramodaya Yojna (PMGY) in 2000; Sampoorna Grameen Rojgar Yojna (SGRY) and Valmiki Ambedkar Awas Yojna (VAMBAY) in 2001; and National Food for Work Programme (NFWP) in 2004.
This scheme launched in April, 1999 is a holistic programme covering all aspects of self-employment. It covers organization of the poor into self-help groups, their training, arrangements for credit and technology besides infrastructure and marketing. The underlying aim is to provide sustainable income to the rural poor. It is expected to succeed in setting up a large number of micro enterprises in the rural areas. These would be based on the potential of the locals. In a time frame of three years every family covered by the SGSY will be able to move across the poverty line. Its strategy is to run it as a credit-cum-subsidy scheme. Efforts would be made to involve women in each self-help-group.
This scheme came into force in September, 2001 by merging it in the ongoing schemes of Jawahar Gram Samridhi Yojna (JGSY) and Employment Assurance Scheme (EAS). This scheme is open to all rural poor who are in need of wage employment and are prepared to do unskilled manual work in and around the rural habitat. The scheme is to be operated through Panchayat Raj institutions. The expenses are to be shared between the Centre and the States in the ratio of 75 : 25.
SGRY has the objective to ensure food security, gainful employment and in the process strengthen rural infrastructure. It is a Centrally sponsored Scheme (CSS) and is being implemented with a total outlay of Rs. 10,000 crores. Under the scheme, 50 lakh tonnes of food grains amounting to about Rs. 5000 crores is being provided every year, free of cost, to the State Governments and Union Territory administrations. Every worker seeking employment under the SGRY will be provided minimum five kilograms of food grains (in kind) per man day as part of wages.
The balance of wages will be paid in cash so that the beneficiaries are assured of the notified minimum wages.
Indira Awas Yojna (IAY) was launched in May, 1985 as a sub-scheme of RLEGP and continued as a sub-scheme of Jawahar Rojgar Yojna. It is the flagship rural housing scheme. IAY aims at helping rural people below the poverty line belonging to SCs/STs, freed bonded labourers and also non-SC/ST categories in construction of dwelling units, by a grant of Rs. 20,000 per unit is indicated. It also provides for upgradation of existing katcha houses by providing grant in aid. The allotment of house is done in the name of the female member of the household or in the joint names of husband and wife. Its benefits have also been extended to ex-servicemen, widows or next-of-kin of defence personnel and para-military forces killed in action irrespective of income criteria subject to the condition that they reside in rural areas and meet other eligibility criteria laid down.
Public Distribution System (PDS) facilitates the supply of food grains to the poor at a subsidized price. It distributes subsidized food and non-food items to India's poor. A network of Fair Price Shops (FPS) have been established in several States across the country. In terms of both coverage and public expenditure, it is considered to be the most important security network.
The National Rural Employment Guarantee Act, 2005 (NREGA) was notified on 7 September, 2005. This legislation deals with a plan which also knows as National Rural Employment Guarantee Scheme (NREGS).
The scheme provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household. The benefit accrues to them, if they are willing to do public work related unskilled manual work at the statutory minimum wage of Rs. 100 per day.
To improve the purchasing power of the rural people by way of primarily semi or unskilled work provided to people living in rural India. Such an arrangement distributes work to all persons whether or not they are below the poverty line.
Ministry of Rural Development, Government of India.
This is left to the State Governments.
MGNREGA aims at enhancing the livelihood security of people in rural areas by guaranteeing 100 days of wage employment in a financial year to a rural household whose adult member volunteer to do unskilled manual work.
1. Payment of wage 1. Cost of unemployment allowance
2. Three-fourth of material cost 2. One-fourth of material cost
3. Percentage of administrative cost 3. Administrative cost of State Council.
1. Adult members of a rural household willing to do unskilled manual work to apply for registration.
2. Verification by gram Panchayat and issue of a job card within 15 days.
3. Employment to be given within 15 days.
Otherwise their daily unemployment allowance to be given as per the Act.
4. Work to be given within 5 km radius of the village.
5. Equal wages to both men and women.
6. Wages to be paid according to piece rate or daily rate.
Any area in a State except those areas covered by any urban local body or a Cantonment Board established or constituted under any law for the time being in force.
1. Commenced on 2 February, 2006
2. Eventually covered all 593 districts by 1 April, 2008
3. Outlay rose from Rs. 110 billion in 2006-07 to Rs. 391 billion in 2009-10; a 140% increase.
4. As of 30 June, 2010, a total of 1.79 crore families in the country have been provided employment under MGNREGA.
Members of a family related to each other by blood, marriage or adoption and normally residing together and sharing meals or holding a common ration card.
1. Financial - The budget has risen sharply three times from 0.3% of the GDP.
Funding was expected to be met by improved tax administration and reforms. However, the tax GDP ratio has been falling. The programme is likely to cost 5% of the GDP.
2. Likely Take-Over of Gains by Wealthier Segment - The completed product (water conservation, land development, afforestation, improved irrigation new roads etc.) may be taken over by the wealthier section of the society.
3. Corruption at the Local Level - Due to this, specific sections of the society continue to remain excluded.
1. Denial of job card or wages.
2. Frauds.
Right to Basic Needs and Welfare
1. Major components:
(a) Training of Rural Youth for Self Employment (TRYSEM), Supply of Improved Toolkit to Rural Artisans (SITRA), Development of Women and Children in Rural Areas (DWCRA) and Ganga Kalyan Yojna (GKY).
2. Shift from an individual beneficiary approach to a group and/or cluster approach.
3. Continuous line of credit rather than one-time loan.
4. Package Approach
(a) Access to credit
(b) Training
(c) Upgradation of technology
(d) Delivery of essential inputs
(e) Marketing tie-ups.
5. Rationalise. It was felt that undermentioned JRY and Employment Assurance (EAS) schemes should be reviewed and reshaped. EAS was launched in October, 1993 covering 1,778 drought prone desert, tribal and hill area blocks. Later it was extended to all the blocks in 1997-98. The scheme was meant to provide employment in the form of manual work in the lean agricultural season.
The main focus has been to strive for
1. Rural development
2. Employment opportunities
1. Water conservation and harvesting
2. Afforestation
3. Rural connectivity
4. Flood control and protection
5. Construction and repair of embankment
6. Digging of new tanks and ponds
7. Percolation tanks
8. Land levelling
9. Tree plantation.
The State Initiatives towards Right to Basic Needs and Welfare.
It is a plan introduced for slum dwellers. The scheme launched in June, 2011 is meant to provide affordable housing through partnership. The scheme envisages interest subsidy for urban housing. Thus, assignment of property rights for slum dwellers would be feasible. Under the first phase of the scheme, slum development projects would be initiated in 250 cities and then across the country by the end of 12th Five Year Plan. In the first year (2011-12) the government has allocated about 400 million dollars to the scheme. The plan is to encourage the private sector also to join the developmental process. It is expected to make cities free of slums. However, slums located on lakes, storm water drains and road sides will be removed.
73rd Amendment Act, 1992
What was sought to be done by the 73rd Amendment was that Constitutional status to the local self-government was conferred to the District Panchayats, Taluka Panchayats and Village Panchayats. This amendment was brought into force on 24 April, 1993 to give effect to one of the Directive Principles of the State Policy, namely, article 40 of the Constitution.
Article 243 provides for the people's participation in the process of planning, decision making, implementation and delivery system.
Gram Panchayats (GP) and Gram Sabhas (GS) are required to identify, approve, allocate, supervise, monitor and be accountable for the operation of rural programmes.
The significance of the PRI lies in the fact that a State Legislature cannot do away with these democratic bodies at the local level nor claim their normal tenure be curtailed otherwise than in accordance with law nor can the State Government delay elections of these bodies.
The one-third reservation for women in all PRIs is indeed a progressive, even revolutionary step. It could in the long run bring about a grass-roots transformation especially in the rural areas.
1. The functions and powers of PRIs have been left to the discretion of State Governments.
2. These are not yet clearly specified and defined.
A review by the World Bank has found large inter-State differences in spending and outcome in anti-poverty schemes. Even though the poorest States are allotted the highest proportions of Central Funds, they have the lowest administrative capacity to spend the funds effectively.
The World Bank review in 2011 of eleven Centrally sponsored social security schemes has confirmed vast leakages and structural inefficiencies in delivery mechanisms. Only 40% of the targeted poor benefit from the schemes. A fresh approach to poverty alleviation is the need of the hour.
There have been non-governmental initiatives too towards poverty alleviation. For example, OXFAM, an international confederation of 15 human rights organizations fighting poverty and injustice, has launched a new campaign in June-2011 for a hunger free world. It has raised its concern at the flaws in food grain distribution and marketing system. It calls for a need to transform the way food is grown and shared. It is keen to replicate the Green Revolution in the rest of the country particularly in Uttar Pradesh and Bihar.
Self Help Groups (SHG) movement can be a handy instrument for poverty alleviation programmes like the SGSY. The SHG concept has been catching the imagination of the rural poor gradually, but definitely. SHG involvement encourages and develops thrift and credit activities among the rural poor. It helps the poor to be self reliant to face emergency situations and to free themselves from the likely exploitation by the vested interests. Social mobilization is an integral part of SHG movement. It improves collective bargaining power of the poor. The progress of the SHG initiatives have been noteworthy, particularly in the south and among women.
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