NATIONAL
COMMISSION TO REVIEW THE
WORKING
OF THE CONSTITUTION
A
Consultation Paper*
on
SOCIAL
SECURITY AND EMPLOYMENT
September 26, 2001
VIGYAN
BHAWAN ANNEXE, NEW DELHI – 110 011
Email:
<ncrwc@nic.in> Fax No. 011-3022082
|
|
Advisory Panel
on Promoting Literacy; generating employment;
ensuring Social Security; alleviation of poverty
Member-in-charge
Shri K. Parasaran Chairperson
Smt. V. Mohini Giri Members
q
Dr. Abid Hussain q
Dr. N.C. Saxena q
Dr. E.A.S. Sarma Special
Invitees: Shri K.P. Geethakrishnan Dr. K.V. Raman Member-Secretary
Dr. Raghbir Singh |
ACKNOWLEDGEMENT
This
Consultation Paper on ‘Social Security and Employment’ is based on a paper
prepared by Shri K.V. Raman, former Member, Agricultural Scientists Recruitment
Board and former Director, National Academy of Agricultural Research
Management, Hyderabad. Shri Raman
received certain inputs from Shri K.P. Geethakrishnan, Chairman, Expenditure
Reforms Commission, Dr. S. Rajagopalan, Distinguished Fellow, M.S. Swaminathan
Foundation, and Dr. T. Haque of NCAP, New Delhi.
This
Commission places on record its profound appreciation of and gratitude to Dr.
K.V. Raman and all others involved for their contribution.
CONTENTS
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Chapters |
Pages |
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|
I. Social
Security and Constitution |
289 |
|
II. Poverty in the Eyes of the Constitution |
291 |
|
III. Employment in the Eyes of the Constitution |
320 |
|
IV. Livelihood Opportunities |
324 |
|
V. A Strategic Plan for 80 Million Jobs |
333 |
|
VI. A Better Deal for the Very Poor |
345 |
|
VII. Report of “The Task Force of the Planning
Commission on Employment Opportunities” |
353 |
|
|
|
|
Questionnaire |
355 |
|
|
|
|
Models for the Development of
Sustainable Livelihoods |
361 |
|
|
|
|
Annexure |
363 |
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|
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CHAPTER I
SOCIAL SECURITY AND CONSTITUTION
1.1 Introduction and Scope of the Study
The mark of all civilizations is the respect they accord to
human dignity and freedom. Human development is a process of enhancing human
capabilities – to expand choices and opportunities so that each person can lead
a life of respect and value. The three essential capabilities for people are –
(i)
to
lead a long and healthy life (life expectancy at birth);
(ii)
to be
knowledgeable (educational attainment reflected in adult literacy which is
reflected by the combined gross primary, secondary and tertiary enrolment
ratio); and
(iii)
to
have access to resources needed for a decent standard of living (reflected
through GDP per capita. Income enters the HDI as a proxy for a decent standard
of living and as a surrogate for all human choices not reflected in the other
two dimensions.).
1.1.1 Human
development is essential for realizing human rights, and human rights are
essential for full human development. Human Rights and human development share
a common vision and common purpose – to secure the freedom, wellbeing and
dignity of all people everywhere. To secure:
·
Freedom
from discrimination – by gender, race ethnicity, national origin or religion
·
Freedom
from want – to enjoy a decent standard of living
·
Freedom
to develop and realize one’s human potential
·
Freedom
from fear – to threats to personal security, from torture, arbitrary arrest and
other violent acts
·
Freedom
from injustice and violations of the rule of law
·
Freedom
of thought and speech and to participate in decision making and form
associations
·
Freedom
for decent work – without exploitation
1.1.2 A decent standard of living, adequate
nutrition, health care, education, decent work, and protection against
calamities are not just development goals, they are also human rights. Poverty
eradication is only a development goal – it is a central challenge to human
rights. But the realm of human development extends further; they include the
following needed for being creative and productive and for enjoying self-respect,
empowerment and a sense of belonging to a community
·
security
·
sustainability
·
guaranteed
human rights
1.1.3 The term “Social Security” is all
encompassing and has wide connotation. Its dimensions are largely subjective,
though in some cases objective criteria can be defined. It includes:
1.
Alleviation
of Poverty including Elimination of hunger and deprivation
2.
Economic
and Income Security
3.
Food
and Nutritional Security
4.
Social
equity including gender dimensions
5.
Reaching
the unreached
6.
Empowerment
of people at various levels including the individual and community, and
elimination of voicelessness.
1.1.4 The Constitution of India, through the
various articles of Fundamental Rights and Directive Principles of State
Policy, has provided for ‘social security’ both directly and through implied
provisions. Many of these areas are discussed in other Consultation Papers.
This paper will specifically focus on Poverty Alleviation and Access to Food by
providing for Income Security through Employment.
1.2 Right to work as a Fundamental Right
The Commission has proposed a constitutional obligation on
the State to provide to the citizens “Rural Wage Labour” as a means of
livelihood for a minimum of 80 days in a year as a Fundamental Right and has
proposed the introduction of a new article namely, article 21B, in the
Constitution.
1.2.1 Some explanation is necessary why the
Commission proposes to introduce this idea of constitutional guarantee for
Rural Wage Employment. Article 41 (in Part IV relating to Directive Principles
of State Policy) already provides that the State shall, within the limits of
its economic capacity and development, make effective provision for securing
the right to work, to education and to public assistance in case of unemployment,
old age, sickness and disablement, and in other cases of undeserved want. Article 41, though not justiciable is
nevertheless fundamental in the governance of the country. The performance of
the State in discharge of this Constitutional duty has not been commensurate
with the needs of society. Between 1950
to 1973, population below the poverty line remained consistently at 53%. With the explosion of population, the levels
of poverty in terms of numbers reached unacceptable levels. It is only between 1973 and 1988 and
thereafter, in the 1990s that there was a significant reduction in the
percentage of population below the poverty line. That figure at present is estimated at 26%. However, in terms of
numbers, 26% of billion population is significantly higher than the 53% below
the poverty line in the fifties to seventies.
1.2.2 There is
significant potential for employment-generation (and asset building such as
afforestation, desilting of tanks, rain water harvesting, check-dams etc.) in
rural India; though, however, some development-economists are pessimistic of
the potential for employment generation in the agricultural sector. They point out that while employment
generation in the rural sector was 2.04% during 1983-1988, it came down to 0.98%
during 1994-2000. This perception
involves the inevitability of increased rural de-population.
1.2.3 A large and
significant potential still exists for rural employment as a source of
livelihood. The mandate of article 41 has remained unfulfilled is obvious from
the slow pace of reduction of poverty levels. Education, health,
social-security and means of livelihood. These are not to be seen as the
ultimate outcome of development; but are in themselves crucial to the process
of development itself. If even the
minimum expectations of people from a liberal democracy remain unfulfilled, the
very survival of democracy will be imperiled.
1.2.4 Guaranteeing
rural wage labour as a poverty alleviation measure has been achieved with some
degree of success in several States by Employment Guarantee schemes,
particularly in the State of Maharashtra. The choices of delivery systems for
poverty alleviation programmes through employment guarantees are either the
executive sponsored schemes or statutory. The case for making them
constitutional rights through the Bill of Rights is a debatable issue.
1.2.5 Much of the
criticism against including economic rights in the Bill of Rights is centered
around heightened role of the Judiciary which an entrenched justiciable Bill of
Rights implies. Criticism is rooted in
democratic theory that such a thing shifts power from the executive branch to
the judicial branch and away from the elected legislatures and places the power
at the hands of ‘unelected, unaccountable, unrepresentative and elite group’ of
judges.
1.2.6 It is argued
that the adjudicative process on economic rights involves the court in the task
of allocating of society’s resources and infringes principle of separation of
powers, essential to a democracy, giving at the same time the ‘third branch of
government the ultimate power over the purse’.
1.2.7 But these arguments, overlook the emerging importance, in any
liberal formulation of rights, of the recognition of livelihood and individuals
well-being as legitimate concerns of Bill of Rights.
“At the international level,” says an author1 “the official policy position, reflected in
all of the major international human rights instruments , is that the two sets
of rights – civil and political, on the one hand, and economic, social and
cultural, on the other – are indivisible, interdependent and interrelated. But this theoretical consensus evaporates,
or at least shrinks dramatically and with remarkable speed, as soon as we move
to the practical translation of these international standards into bills of
rights”.
“… It
must suffice here to add several elements which respond directly to the
comments cited above. First, we should be clear that we are speaking of minimum
standards of a basic core of rights and not of anything as grandiose or vague
as Beatty’s right to ‘wholesome and cultured living’.3 Access to life-sustaining water, adequate
housing to enable life to go on, a primary education, essential medical
services, and food sufficient to make a right to life meaningful, are hardly so
exotic or beyond the reach of the sort of societies in issue here as to make
minimum guarantees unrealistic.
Secondly, while justiciability is often important, it is by no means the
only way in which a bill of rights might foresee the realization of these
rights. Thirdly, the old distinctions
between costly and cost-free rights or between positive and negative rights,
which underpin so much of these critiques, have by now been shown to be too simplistic
to be hopeful, even in relation to American constitutional law.4
1.2.8 As to the apprehensions of the likely
expansion of the judicial role, it is observed that there are limitations
inherent in the nature of the rights itself.
It is observed :
“Finally, courts have many options open to
them in order to avoid getting too directly involved in budgetary matters. The role of the court would normally be
limited to directing the executive to propose concrete but affordable measures
which would address the problem identified.” (emphasis supplied).
1.2.9 Such a minimal right to a means of
livelihood, through mechanism of Rural Manual wage employment for say 80 days’
in an year as an enforceable right does not seem too unrealistic an ideal. For such an opportunity for work for 80
days in a year needs no further justification.
Indeed the Supreme court has declared the right to livelihood an
emanation of the Right to Life. If the
State had evinced adequate and active concern under article 41, the minimal
expectations of people would have been re-quieted and the need for the present
proposal would have been obviated. But
things are otherwise.
CHAPTER II
POVERTY IN
THE EYES OF THE CONSTITUTION
2. Poverty
and chronic deprivation have long been a tragic aspect of human society. Poverty,
however, is neither natural nor inevitable. In modern economics, large-scale
poverty imposes an enormous economic loss, wasting the talents and energies of
hundreds of millions of man and women, diverted from socially productive
activities that could create wealth for society to the struggle for mere
survival.
2.1
Poverty : its scope and dimensions
Poverty is defined as the inability of an individual to
secure a normative minimum level of living. A normative
minimum was defined for the first time by an official working group as amount
of consumer expenditure of Rs.20 per capita per month at 1960-61 all-India
prices (and Rs.25 for urban areas). The
minimum excluded expenditure on health and education, which are to be provided
by the state as per the Indian Constitution [PPD 1962]. This is the amount considered enough to get
food to meet minimum energy requirements for an active and healthy life and
also minimum, clothing and shelter.
2.1.1 Corresponding
to this all-India norm, Bardhan (1970) used Rs. 15 per capita per month at
all-India rural prices as relevant for the rural sector. Dandekar and Rath, (1971), with reference to
a calorie norm of 2250 calories per capita per day, arrived at the same poverty
line for rural India. Till recently
most of the studies on rural poverty were based on estimates made with
reference to this norm of Rs.15 per capita per month at 1960-61 all-India rural
prices. The Planning Commission Task
Force on ‘Projection of Minimum Needs and Effective consumption Demand’ defined
the poor as “those whose per capita
consumption expenditure lies below the midpoint of the monthly per capita
expenditure class having a daily calorie intake of 2,400 in rural areas and
2,100 in urban areas” [PPD 1981:81].
The poverty lines corresponding to these norms were worked out with
reference to the NSS data for the year 1973-74. The poverty line turned out to be Rs.49.09 per capita per month
at 1973-74 prices for rural India. The
Expert Group [PPD 1993] has also recommended this poverty line.
2.1.2 The poverty
line has to be updated to account for changes in prices since the consumer
expenditure data are at current prices.
The updating is generally done using deflators based on market prices. The Expert Group [PPD 1993] has recommended
as price index obtained as a weighted average (to account for the relative
importance of different items of consumption) of subgroup price indices of
consumer price index for agricultural labourers (CPIAL) for rural all-India.
The procedure outlined above involves the implicit assumption that the data set
provides a reliable estimate of the underlying consumer expenditure
distribution and that the institutional and behavioural parameters governing
the choice of poverty line remain the same.
The validity of this assumption is conditional on the fulfillment of the
following:
(i)
The
items consumed by a household are recorded as its own consumption by the
investigator.
(ii)
The
times of consumption are reported correctly by all the households.
(iii)
The
survey methodology remains the same over the years.
(iv)
Each
item of consumption is valued uniformly at market retail prices across
households so that a simple consumption weighted index of market retail prices
would capture the impact of inflation for the household.
(v)
The
transaction costs of obtaining items of consumption are similar (a) across
households at a point of time, and (b) for a given household over a period of
time.
(vi)
Techniques
of production and efficiency with respect to calorie utilization remain the
same. In other words, the minimum
calorie norm remains invariant with respect to the structural developments in
the economy like improvements in methods of production and in medical and
health facilities.
2.1.3 A
comprehensive All India consumer expenditure survey is undertaken roughly every
five years which also forms the basis for estimating the level of poverty with
community. Comparable estimates based
on consistent methodology are data sets are available until 1993-94.
2.1.4 Per capita net national product at 1993-94
prices vary from Rs.3,687 in 1950-57 to Rs.10,204 in 1999-2000 registering an
increase of 277%. Average annual
growth rate of net national product at 93-94
prices has increased from 3.6% to 6.7% in eighth plan. (Please see Table
1 below)
TABLE 1
Five year Plans
|
Year
|
Net National Products |
Net per capita Product |
|
First
plan |
1951-1956 |
3.6 |
1.8 |
|
Second
plan |
1956-1961 |
4.1 |
2.0 |
|
Third
plan |
1961-1966 |
2.5 |
0.2 |
|
Forth
plan |
1969-1974 |
3.3 |
1.0 |
|
Fifth
plan |
1974-1979 |
5.0 |
2.7 |
|
Sixth
plan |
1980-1985 |
5.3 |
3.1 |
|
Seventh
plan |
1985-1990 |
5.9 |
3.7 |
|
Eighth
plan |
1992-1997 |
6.7 |
4.6 |
2.1.5 The estimated
magnitude of poverty remains fairly high until 1970s; the proportion of people
below the poverty time has declined since years 1980. The 55th round
of the household consumer expenditure Survey (July 99-June 2000) indicate
significant decline in poverty to 26% (This estimate may not be strictly
comparable to the earlier estimation because of some changes in the methodology
of data collection).
TABLE 2
Poverty Estimates
|
Year |
Percent |
||
|
All India |
Rural |
Urban |
|
|
1973-1974 |
54.9 |
56.4 |
49.0 |
|
1977-1978 |
51.3 |
53.1 |
45.2 |
|
1983 |
44.5 |
45.7 |
40.6 |
|
1987-1988 |
38.9 |
39.1 |
38.2 |
|
1993-1994 |
36.0 |
37.3 |
32.4 |
|
1999-2000 (300) |
26.1 |
27.1 |
23.6 |
|
75 |
23.1 |
24.0 |
21.6 |
2.1.6 It has long
been believed that economic growth is
the specific remedy for the ills of poverty. Some economists argue that for a
country like India, 7 to 8 per cent rate of growth per year over a period of 15
years can help in solving the problem of poverty. This is the famous ‘trickle
down theory of development’. The
argument is that a good growth rate over a reasonable time frame can have a
trickle down effect, down to the lowest layers of poverty. Our own experience in this country as well
as many others in the world show that this is not necessarily correct as
discussed later on in this paper.
2.1.7 Nobel Prize
laureate Amartya Sen in his interesting article “Hunger and Public Action” (1989) has analyzed the causes of
famines and observed cases in which people starved to death in spite of food
availability - because they had no "entitlement".
"What we can eat
depends on what food we are able to acquire. The mere presence of food in the
economy, or in the market, does not entitle a person to consume it. In each
social structure, given the prevailing legal, political and economic
arrangements, a person can establish command over some alternative commodity
bundles ... [i.e.] this person's entitlements. A person's entitlements depend
on what she owns initially and what she can acquire through exchange. For example,
a wage labourer owns her labour power, and by exchanging that for a wage ...
she acquires some money, which she can exchange for some commodity bundle or
other...."
The above definition of “Poverty” is
based entirely on economic criteria. Income is no doubt a very important factor
in determining poverty but poverty has many other important dimensions.
Probably Dr. Amartya Sen's definition of poverty is the most appropriate and
acceptable one, which is that poverty,
is the deprivation of basic capabilities. Dr. Sen argues that every person
should have the substantive freedom to lead the kind of life he has reasons to
value. Inadequate income is one of the principal reasons for a person’s
capability deprivation. Sen distinguishes the standard income-based poverty
approach from his proposed ‘capability perspective’ because capabilities are
seen as intrinsically important
whereas income is instrumentally significant. In order to eradicate poverty some thing
more than income is necessary and that is the opportunity to develop one's
basic capabilities which include opportunities for education, health care,
sanitation, nutrition, clean drinking water, housing, etc.
2.1.8 Human
Poverty Index Developed by UNDP is based on the following factors:
·
People
not expected to survive 40 years
·
Adult
illiteracy
·
Not
having access to water
·
Not
having access to health services
·
Not
having access to sanitation
·
Proportion
of under weight children
On this score, India
ranks 58th among the developing countries.
2.2
Poverty and the Constitution
“Poverty” as a term has not found a place in any Part of the
Constitution except in the 73rd and 74th amendments
relating to Panchayats and Municipalities.
There were, however, many articles under Fundamental Rights (Justiciable)
and Directive Principles (non-Justiciable) if translated into action properly
should have taken care of the poverty issues we are now debating. Right to life of article 21 of the
Constitution implies many rights such as dignity, health, environment, clean
water, free education and shelter.
Article 47, one of the important Directive Principles, states that
raising the level of nutrition and standard of living and improvement of public
health are primary duties of the State.
Synergy and convergence of the three components of article 47 is crucial
for eliminating poverty as we are defining now.
Article 39 sets out policy principles to be followed by the
state. They include:
(a)
That
the citizen, men, women equally have the rights to adequate means of livelihood.
(b)
That
the ownership and control of the material resources of the community are so
distributed as best to subserve the common good.
(c)
That
the operations of the economic system does not result in the concentration of
wealth and means of production to the common detriment.
(d)
That
there is equal pay for equal work for both men and women.
(e)
That
the health and strength of workers, men and women and the tender of age of
children are not abused and that citizens are not forced by economic necessity
to enter avocations unsuited to their age or strength.
(f)
That
children are given opportunities and facilities to develop in a healthy manner
and in conditions of freedom and dignity and that childhood and youth are
protected against exploitation and against moral and material abandonment.
Though “Poverty” issues are not explicitly discussed in the
Constitution, the directive principles are meant to eliminate “Poverty” in any
form. Raising the level of "nutrition", "standard of
living", and "improvement of public health" are the primary
duties of the State according to Constitutional mandate. All these are inter-related and require
simultaneous attention.
2.2.1 These objectives were sought to be achieved through economic
growth and with some modest distribution objectives along with economic growth
in the five-year Plans. The following Section is a critical
review of the rural
development policies and poverty in India.
2.3
A Critical Review of the Rural Development Policies and
Poverty in India
Alleviation of poverty has been one
of the major concerns of India's planners and policymakers since Independence. Before
Independence, poverty was largely attributed to the exploitation of the Indian
economy by the British, coupled with the feudal mode of agricultural production. Therefore, the people from various social
groups and classes joined the freedom movement with the hope that political
independence would also bring freedom from hunger, malnutrition, illiteracy,
etc. After achieving Independence, the
Government was thus under obligation to overcome poverty by enabling the poor
to participate in democracy and development as equal partners.
2.3.1 Towards this
end, a series of measures have been undertaken. These include land reforms, infrastructure development, technological
change, economic diversification and direct anti-poverty programs like IRDP,
NREP, JRY, EAS, DWCRA, TRYSEM and MNP.
2.3.2 Despite various favourable factors like the
attainment of Independence, abolition of feudalism and achievement of
self-reliance in foodgrains production due to Green Revolution, the problem of
rural poverty remained as acute as ever before. As seen from various surveys, though on a
proportional basis, there has been a reduction in rural poverty, in absolute
numbers, the number of poor people has increased over the years. The
visible decline in the incidence of poverty after 1983-84 then could be largely
attributed to factors not mentioned above, or the cumulative effects of various
factors including those mentioned. A clear understanding of the reasons for the
failure of anti-poverty strategies even after five decades of planned efforts
will enable us to suggest alternative ones to eradicate absolute rural poverty
at least by the year 2020. To begin
with, it would be useful to study the nature and extent of rural poverty in
various regions of the country so that location-specific measures could be
indicated.
2.3.3 An examination of the
regional dimension of the rural poverty would indicate that nearly 48 per cent
of the rural poor live in three States of Bihar, Uttar Pradesh and Madhya
Pradesh, and the percentage of poverty has increased over the years. The
poverty ratio declined more sharply in States like West Bengal, Tamil Nadu,
Orissa, Kerala and Andhra Pradesh. In
the agriculturally developed State of Haryana, the poverty ratio increased
substantially and in Punjab, it declined only marginally. In the States of West
Bengal, Tamil Nadu, Orissa, Kerala and Andhra Pradesh, the rural poverty ratio
declined by 22.2 per cent, 21.5 per cent, 17.8 per cent, 13.2 per cent and 10.6
per cent respectively. It is true that
Punjab continues to have a relatively lower incidence of rural poverty as
compared to West Bengal, Tamil Nadu, Kerala, Andhra Pradesh and Orissa. But there has been virtually no change in
the poverty scene in Punjab while the other states witnessed decline in the
poverty ratio in recent years.
2.3.4 Detailed analysis by economic experts indicates that
agricultural development may be a necessary, but not a sufficient condition for
eradication of rural poverty. In the
States of Punjab and Haryana, the poverty ratio was low at the dawn of
Independence and remains low normally because of relatively higher levels of
agricultural productivity and output growth.
But, there is no significant decline in the poverty ratio in Punjab over
time and there is an upward trend in rural poverty in Haryana in recent years,
which indicates the limitation of the agricultural growth as such to contain
rural poverty. But in West Bengal, the
rapid agricultural growth in recent years, which was induced mainly by, land
reforms, irrigation and credit has helped to reduce rural poverty
substantially. Besides, other factors
like growth of non-farm employment and PDS also contributed to poverty reduction.
2.3.5 During 1983-84 to 1993-94, West Bengal
achieved the highest annual growth rate of agricultural output (about 5.4 per
cent), followed by Rajasthan (5.0), Haryana (4.7), Madhya Pradesh (4.7), Tamil Nadu (4.6), Punjab (3.9) and Karnataka
(3.9) respectively. In fact, the growth
rates of agricultural output at relatively higher level of per-capita
agricultural income in Punjab and Haryana should have contributed to poverty
reduction significantly, but they did not.
Conversely, the high growth rate of agricultural output at relatively
lower level of per capita agricultural income in West Bengal could reduce
poverty substantially because the growth process is more broad -based in which
small and marginal farmers and share croppers also participate due to land
reforms and other institutional changes.
But the average real wage rate of farm labour in West Bengal increased
only by 1.5 per cent, and the absolute daily wage rate in both Punjab and
Haryana are higher than that in West Bengal.
In fact, at the high wage rate and with 243 days of average annual
employment, no agricultural labourer in Punjab should be below the poverty
line. But as the NSS data indicates
nearly 61 per cent of agricultural labour households in Punjab and 39 per cent
in Haryana are poor. It certainly
indicates that there are labourers who get less number of days of employment
and also relatively lesser wages in certain areas of these States than the
average wages and employment in the State and that they are poor. However, in most other States, the average
wages are so low that even at full employment level, they will be forced to
stay poor.
2.3.6 Orissa is another interesting case. During 1983-93, the rural poverty ratio
declined by 21.5 per cent. This was the
second highest decline in the poverty ratio in the country. But agricultural output growth was as low as
1.1 per cent and in fact, per capita agricultural income at constant prices
declined. Also the state has not passed through any progressive land
reforms. The poor people's access to
PDS also is negligible. Then what made the poverty ratio to decline? In Orissa
the growth of real agricultural wage rate (4.6 per cent per annum) both the
absolute level and annual growth rate of per capita government expenditure on
IRDP and Rural employment programs were one of the highest in the country. Most other States, which witnessed a modest
decline in poverty, had also, modest growth of agricultural output and wages
and no substantial redistributive land reforms. Further, it could also be seen that in several States including
Blhar, Haryana, Madhya Pradesh, Orissa, Punjab and Uttar Pradesh, the PDS
coverage in rural areas is very low.
Besides, in the States of Blhar, Karnataka, Madhya Pradesh, Orissa,
Punjab and Uttar Pradesh, the non-poor households lifted comparatively more PDS
than the poor households. During 1987-88 to 1993-94, several States including
Andhra Pradesh, Assam, Haryana, Jammu & Kashmir, Kerala, Madhya Pradesh,
Orissa, Rajasthan and Tamil Nadu witnessed a decline in the proportion of rural
workers engaged in the organised manufacturing sector. It is only in West Bengal that there was a
significant rise in the proportion of workers in the organised manufacturing
sector. Undoubtedly, this sector has
relatively higher wage rates, which tend to reduce poverty.
2.3.7 On the basis of the available data, it is
possible to infer that agricultural growth cannot always be relied upon as a
major strategy for poverty alleviation under all situations. What is important is that the growth process
has to be more broad based involving the participation of small and marginal
farmers, tenants and agricultural labourers through various institutional
reforms.
2.3.8 Factors like (i) growth in real wages, (ii)
growth of real employment in the organised non-farm sector, (iii) poor people's
increased access to land (iv) increased access to subsidised food and (v)
increased expenditure on IRDP and employment programs under some situations
help reduce rural poverty. In fact,
there cannot be a single planning strategy for poverty alleviation. It has to be location specific, depending on
the need and objectives situation of each region.
2.4
Anti-Poverty Programs of the Government
The various
programs and schemes, thus evolved impinging on rural poor can be classified as
follows:
|
a) Household oriented programs of income
generation, through assets |
ExIRDP,
TRYSEM, DWCRA, Land Reforms |
|
b) Programs of income transfer through
Employment and infra-structure development |
NREP,
RLE GP, JRY, EAS, MWS, LAY |
|
c) Programs for special areas to counter
endemic poverty caused by hostile agro- climatic condition and degeneration
of the eco- system |
DPAP/DDP, RPDS, Wasteland Development, Micro watershed development (Natural Resource
Management) |
|
d) Programs designed to ensure access to basic
amenities |
MNP,
(BMS Human Development) |
|
e) Welfare Measures to compensate the poor for
their inadequate access to growth. |
Social
Security, PDS |
A more detailed listing
of these programs along with its broad objectives and components as well as the
achievements in brief are given in Appendix I.
2.5
Proliferation of anti-poverty programs
These
strategies and policies adopted two approaches, one focusing on the overall
economic development (through percolation/Trickle Down/ Spread Effect) and
another poverty alleviation (direct intervention). Though these approaches reinforce each other, there was no effort
to integrate them. IRDP continues to be
a program for the improvement of the rural poor without any overall plan or
conception of total development of the villages within a block. In fact, the Sixth Plan had categorically
stated: "IRDP has been conceived essentially as an anti-poverty, poverty
program", and by giving it the name IRDP, the overall development was
considered critical. This, however, did not happen and the integration with
other PAPS was not achieved. In fact, Hanumantha Rao (1992) states that “the
failure to integrate the poverty alleviation objective with the overall
development strategy resulted in the proliferation of poverty alleviation
programs (PAPS) leading to inefficient use of a large chunk of resources on
account of weak linkages with growth, low potential for sustained employment
generation and inefficient impact on social development and protection of
environment.” However, the policy
planners counter the argument on proliferation. Poverty has to be understood in a desegregated nature with a view
to providing opportunities for different groups. The design of the PAPS, therefore, is deliberate. They further caution that any suggestion to
merge the already available schemes could be used as a ploy to reduce the
budgetary resource support under rural development which is far less compared
to other ministries.
2.5.1 It was widely prescribed that public
policies that accelerate economic growth will lead to a 'trickle down' and
'spread' effect benefiting the poor. In
fact, this prescription remained the dominant ideology of development. By the early 1970s an increasing concern
about poverty developed due to ‘apparent failure of the trickle down
strategy’. Despite some impressive
achievement in aggregate terms, the process of economic growth in many
developing countries appeared to bypass the poor. In some cases it even worsened their condition.
2.5.2 Two competing approaches for poverty
alleviation evolved during this period.
First, Redistribution With Growth Approach (RWG) aimed at increasing the
productivity, incomes and output of the low income groups to improve their
welfare. The strategies under RWG
included – (i) Maximising the growth of GNP; (ii) Redirecting investments to
poverty groups; (iii) Redistributing income or consumption to poverty groups
and; (iv) transferring the existing assets to poverty groups. The second approach was most favoured
because as Prof Vyas states, 'It did not disturb the social and political
equilibrium and suited the convenience of all.
Such an approach did not threaten the strategy of development nor the
structural relationship in Society”. The Second approach - the Basic Human
Needs Approach (BHN) involved targeting and addressing the core basic needs of
the poor i.e., food, housing and health.
Unfortunately, the BHN approach gained importance very late. Let us now examine the performance of
certain crucial segments of economy and strategies, which were to contribute to
poverty reduction.
2.5.3 IRDP, which is considered a focal
instrument of change in rural areas has, as various studies revealed, produced
positive but small results. The ability
of IRDP to make a long-term impact has always been limited. Though IRDP has created employment in
agriculture, it has not been able to diversify the rural economy to any
significant extent as the trades/ activities selected by IRDP beneficiaries are
not productive ones, nor are focused on building ‘permanent’ assets. On the other hand, the wage employment
programs, which use the surplus labour in the developmental process, are
considered a sound PAP strategy. JRY is
a tremendous improvement over all the past employment programs. But like the earlier programs, it too
suffered from the isolation from core planning process, poor coordination with
other PAPS at various levels and also meagre resources. As a result neither the short-term nor the
long-term gains have been significant.
Though the positive lessons learnt from the Employment Guarantee Scheme
were sought to be replicated through a nation-wide Employment Assurance Scheme
since 1993, the outcome indicates yawning gaps in achieving the desired results
of reducing the severity of poverty.
Employment generation programs are able to provide only about 10-15 days
employment in a year. At best, these programs seem to be ‘reliefs’
measure rather than a sustainable effort, as funds available to tackle the
problem are meagre.
2.3.4 The adoption of a uniform strategy,
rigidity of the program and standardisation of the operation and procedure have
imposed a severe limitation on the effectiveness of the PAPS. Location-specific schemes and preference to
the marginally poor have higher chances of success. The acutely poor need a
longer duration of assistance.
Self-employment schemes particularly, TRYSEM, have a limited measure of
success in backward areas, as neither the training and skills needed to operate
such programs were available, nor sufficient funds available for providing
motivation to the unemployed youth. Also, in some areas, the number of people
trained for particular vocations were far above the employment and resource
potential of the area. The program was not linked to any manpower needs study. Pravin Visaria of the
Institute of Economic Growth, Delhi, in his study “Unemployment among youth in
India” comments about the TRYSEM program: “TRYSEM is perhaps the largest scheme launched by the
Government of India to address the problem of training the rural youth for
employment. However, relative to the needs for training of rural youth, its
role has been rather modest. Overall, almost 42 per cent of the trained persons
reported themselves to be "incapable" of taking up independent
activity as a self-employed person. However, there were marked inter-state
differences in the percentage of trainees reporting incapability for
self-employment; the percentage was much higher (60 or more) in Kerala, Bihar
and Uttar Pradesh, and much lower in Andhra Pradesh, Assam, Gujarat, Haryana,
Madhya Pradesh, Maharashtra and Orissa. The main reported reason for the
incapacity to take up self-employment was "lack of funds" (reported
by two-thirds), whereas only one-fifth reported "inadequate training"
as the reason. According to a rough
estimate, the number of rural youth aged 15-24 and in the labour force in India
had increased by about 5 to 6 million between April 1, 1992 and April 1, 1997.
In effect, therefore, the TRYSEM trainees during the Eighth Plan period formed
only about 25 to 30 per cent of the net additions to the youth labour force
over the period. Of course, we have focused on the age group 15-24, whereas the
TRYSEM is open to persons up to the age of 35. The difficulties in proper
reporting of ages raise serious problems in sharper targeting; and the
shortcomings in the functioning of TRYSEM need to be eliminated, partly by
involving the technically better-trained persons available in the various
districts or elsewhere as trainers. The Draft Ninth Plan has described the
TRYSEM program as "the weak link in the overall strategy for
self-employment"; and has proposed to make training "an integral
component" of the Intensive Rural Development Program (Planning Commission,
1998).
2.5.5 At the same time it needs to be pointed out
that a study entitled "Public Intervention for Poverty Experience of
Indian State" carried out in nine States across the country suggests that,
if strategies for poverty alleviation are properly planned and implemented,
even without a spectacular growth or a major overhaul of institutions and
structures, poverty can be brought down significantly' (Economic &
Political Weekly, Editorial, October, 1995) These studies revealed as follows:
(i)
Although there is a high degree of conformity in
the approach and content of the poverty alleviation programs, there is a great
variation across the State in the outcome.
ii)
While eradication of poverty has been a
recurrent theme of the Five Year Plan, the proportion of those living below the
poverty line has not declined significantly.
The explanation for this must be sought in the political and
administrative environment in which the poverty alleviation programs have been
formulated and implemented.
iii)
Agricultural growth is an important factor in
poverty reduction i.e., Andhra Pradesh and Haryana. The Haryana experience also
suggests that the deliberate policy of income and occupational diversification
is the most effective cure for poverty.
iv)
Increasing the awareness level of the people,
mobilising them in the regions of socio-economic backwardness where
institutional barriers of all type exist social, political, cultural, etc. may
probably be an important instrument to improve the management and thus the
outcome of anti-poverty programs, e.g. Bihar.
v)
Mere formulation of a large number of innovative
schemes and programs for the poor may not provide the sufficient
condition. A strong political
commitment for the poor and to a sustainable and the healthy development of the
State economy is also important, eg: Gujarat.
vi)
Anti-poverty measures can be best being
temporary. These measures should create conditions so that the program could
phased out. This would mean that growth
processes need to be invigorated, eg: Karnataka.
vii)
It is possible to alleviate poverty even when
the rate of economic growth is slow, if the programs are well designed and
implemented along with components of effective social protection schemes (PDS
and others) for the most vulnerable groups eg., Kerala.
viii)
Decentralised planning and adequate resource support can have a positive
impact on poverty as has been shown by the Employment Guarantee Scheme in
Maharashtra.
ix)
In vastly arid zones, emphasis on infrastructure
development especially watershed development and afforestation along with asset
redistribution and employment programs can bring down poverty, eg: Rajasthan.
x)
Land reforms, decentralised decision-making
through genuine and effective local institutions will ensure proper
implementation of the poverty alleviation program and thus a cut down poverty,
eg: West Bengal.
2.5.6 Gaurav Datta and Ravallion (1996) argue
that reducing rural poverty requires both economic growth (farm and non-farm)
and human resource development. They
also point out that agricultural growth, higher per capita non-agricultural
output, high real State development expenditure, low inflation rate, high
female literacy, low infant mortality and irrigation intensity make a positive
contribution towards poverty reduction in rural areas. Public spending in the social sector and
infrastructure development is very important in poverty reduction.
2.6
Land Reforms
Land Reforms, an asset redistributive measure, figured prominently since
Independence for about a decade but seemed to have receded to the background
with the food crises in the 60s and the resultant importance given to food
production. In the mid 80s, however,
the interest in land reform got revived apparently because of increasing
uneasiness among the planners and social scientist that attempts to integrate
growth with poverty alleviation have remained largely ineffective. The experiences and impact of land reforms
varied from region to region. Rao
(1990), classified the regions as following:
(a) Semi-feudal areas (Eg: Blhar), where
barriers of reform inherent in the prevailing structure of society are too
strong to be overcome by the scale and intensity of effort for land reform made
so far. The Blhar experience suggests
that land reforms, to succeed, need to be part of a broader long-term strategy
based on a judicious combination of reform measures with growth policies and
programs providing immediate relief and support to the poor.
(b) Areas with less formidable barriers (Eg:
Karnataka) and relatively stronger thrust to land reforms. The Karnataka experience shows that
agricultural productivity / production, political mobilisation of the poor and
Panchayati Raj are important determinants of success of land reforms.
(c) Areas with a strong political mobilisation
and effective land reforms but with a weak growth performance to complement the
reforms (Eg: Kerala, West Bengal). In
this experience land reforms were successfully but did little to improve the
economic status and viability of the rural poor, particularly the landless.
(d) Green Revolution areas (Eg: Punjab), where
capitalist farming is firmly entrenched and where reforms are needed mainly to
improve wages, work environment, and economic conditions of labourers. Punjab, provides a convincing illustration
of a situation here capitalist farmers
though achieved agricultural prosperity have done so clearly at the cost of the
rural poor and weak by hindering reforms.
2.6.1 In sum, in none of four situations, the
reforms benefited the poor. On the
other hand, in Blhar, the benefits of reforms have been diverted to the rich
farmers. The rural poor may get direct
and proximate benefits of land reforms but not an enduring improvement in their
economic status despite political and social mobilisation.
2.6.2 The achievements under land reforms,
therefore, are marked by a considerable variation between – (a) estimated
surplus and acquired surplus; and, (b) acquired surplus and distributed
surplus. The lands distributed were
found to be marginal, infertile and non-arable. There were dissent and court cases on acquisition procedures and
the compensation paid. The tenancy
laws, by and large, were ineffective and scuttled by the powerful gulags.
Despite these shortcomings, nearly one-fifth of these holdings was a result of
land reform. These holdings, however,
small and marginal, still enabled a modicum of security and social status. Studies by ICRISAT in 1970 and the National
Academy of Administration have confirmed the importance of even modest land
reforms in the livelihood strategies of the poor (World Bank, 1990).
2.6.3 With the advent of economic reforms and
market economy, there arose differing views on continuing the strategy. It has
been contended that the most effective measure to reduce poverty is land
reforms without which other schemes cannot have impact. While one segment
recommends a floor ceiling on the land holding size maintaining the present
upper ceiling, the other advocates steps contrary to land reforms.
2.6.4 Poverty has two dimensions: Income poverty and Human poverty. Unless both are addressed simultaneously, no
significant dent could be made on poverty scene. Social development, therefore acquires a special significance and
merits urgent attention. Social
development and human development have many facets including, social welfare,
health, education, nutrition and a democratic institution to promote peoples'
participation. Our experiences in this
area are slow but not dismal.
2.7
Safety Nets / Food Security
Over the decades of planning,
economic growth with some focus on distribution objective did not have the
designed impact on the poverty reduction significantly. Focused intervention on
these below the poverty line was considered necessary. Many programs were
formulated and implemented. Over the years these programs underwent changes to
make it more effective. These programs can be classified under three major
heads, namely:-
1.
Schemes
generating employment opportunities to those below the poverty line;
2.
Added
asset creation in the poorer households; and
3.
Skills
development and training to improve the earning capacity of the poor.
2.7.1 There are many safety net programs to cover the poor households. They are:-
1.
Public
Distribution System;
2.
Nutrition
Programs - Mid-day meals, ICDS;
3.
Social
Welfare programs;
4.
Special
Programs for women & children in the poor house holds; and
5.
Health
care.
2.7.2 State interventions in foodgrains markets have been in existence
in India for a long time. A Public
Distribution System (PDS) that regulated the movement of foodgrains from the
surplus production States to the deficit ones formed one of the core elements
of the food management system. Over the
years, there have been a number of attempts to modify the coverage and scope of
PDS. While price stability for consumers in urban and food deficit areas were
the focus in the early years, some form of equitable distribution was also
envisaged in the subsequent Plans. The PDS System covered rice, wheat, sugar
and kerosene. From the Seventh Plan, PDS was taken up as a permanent feature of
the strategy to control prices, reduce price fluctuation and achieve an
equitable distribution. The Food
Corporation of India established in 1965 actively started procuring foodgrains
to meet the PDS requirements. Over the
years, the growth rate of procurement exceeded that of production: the share of
procurement rose from about five per cent in 1965 to 19.7 per cent in 2000
(Economic Survey, 2000-2001).
2.7.3 From about 18,000 in 1957, the number of FPS had risen to over
4.61 lakhs. Of these 3.3 lakh were in rural areas. From about eight million tonnes in 1951, the foodgrains
distribution in 2000 stood at 12.1 million tonnes with a peak of 20.8 million
tonnes in 1991. Since 1978, our buffer stock
has remained comfortable and much higher than the PDS requirement. Revamped Public Distribution System (RPDS)
introduced in 1992 to give a special attention to backward remote areas, where
predominately tribal populations live, covered 1750 blocks through 1.02 lakh
FPS. The annual food subsidy rose from
Rs. 2450 crores in 1990-91 to Rs. 9200 crores in 199-2000 and to Rs. 13,000
crores in 2000-01.
2.7.4 PDS attracted much criticism. Singularly sharp was the criticism against
urban regional and class bias arising out of the leaks affecting the food
security for the poor. It was also
found that the rich and the middle classes benefited more from PDS. The Planning Commission’s Tenth Plan
approach paper states that there is a 36 per cent diversion of wheat, 31 per
cent diversion of rice and 23 per cent diversion of sugar from the system at
the National level.
2.7.5 Some of the
problems besides illegal diversion are:
- The
poor do not have cash to buy all the 20 kg at a time and they are not also
permitted to buy in installments.
- Low
quality of foodgrains – a World Bank Report (June 2000) indicate that half
of the stock is at least 2 years old , 30% of the stock below 2 to 4 years
old and some grains are even older.
- Weak
monitoring, lack of transparency and inadequate accountability of
officials implementing the scheme.
- Price charged at the retail level
exceeds the official price by 10 to 14%.
- Poor
also require quality grain lest there should be health problems.
2.7.6 Many economic analysts have felt that PDS
is not a cost effective way of
income transfer to the poor as compared to other nutrition programs or wage
employment programs. The per capita
income transfer to poor from all subsidies (food and non-food) in rural areas
not tangible enough to make the program an ‘attractive one’ for the poor. Available data suggests that many of the
poor States choose to draw a much lower share of PDS than what they are
entitled to eg: Bihar, Uttar Pradesh, Madhya Pradesh (World Bank 1997). It has now been realised that from the
concept of 'universal' coverage 'targeted' coverage is required to eliminate
the class bias and also to contain the ever-increasing food subsidy:
2.7.7 The targeted PDS system follow a two tier subsidized pricing
structure. Families below the poverty
line receive rice and wheat at a much lower price (highly subsidized) whereas
the households above the poverty line is supplied at a price which is much
higher and closer to economic cost. The
identification of this ultra poor is left to the States based on poverty
estimates. In order to make the
targeted public distribution system more focused, the Antyodaya Anna Yojana
was launched in December 2000. This
scheme is to identify 10 million poor families and providing them with 25 kg of
food grains per family per month at a low price of Rs. 2.00 per kg for wheat and
Rs. 3.00 per kg for rice. This scheme requires 30 lakh tons of foodgrains
involving a subsidy of Rs.2315 crores.
The identification of this very poor household for this scheme is best
left to the Gram Sabhas and Panchayats instead of the bureaucratic machinery.
This step was politically unacceptable to some States, while others argue that
the targeted PDS may prove very expensive without a matching social
achievement. The TPDS has come into
operation in 1997 and the States have been given the freedom to modify the
program in the manner they chose fit to suit the local requirements.
2.7.8 Social Security recognises the
responsibility of society to relieve the economic distress faced by the people
on account of contingencies beyond their control. Even the writings of Manu, Sankaracharya, Kautilya and
Yojnavalkya are replete with references to payment of part of wages to a
workman to compensate for loss of earning due to old age, disabilities,
etc. Thus, the system of social and
economic security is very ancient in India.
Unfortunately, in modem India the State has been more concerned with the
organised industrial welfare. Till
recently the rural poor, including rural workers, suffered from 'benign
neglect'.
2.8
Decentralisation
Decentralisation
as a concept was widely accepted and put into practice with the introduction of
the Community Development Projects in 1952.
Under this, a community block comprising about 100 villages covering one
lakh population became the unit of planning for development. The Balwantrai
Mehta Committee (1957) recommended the 'decentralised Administration' to be
under the control of the elected bodies with the block as the basic unit of
decentralisation. Thus Panchayat Raj
Institutions (PR1s) got established throughout the country. The story of Panchayati Raj has been the
story of ups and downs. It seems to have passed through five
important phases: The phase of ascendancy (1957-64), stagnation (1965-69), of
decline (1969-77), the revival 1 980-93) and the phase of consolidation (1 993
onwards).
2.8.1 Activities assigned and taken up by PRIs
since the beginning were limited. Their
resource base was weak, elections irregular or the PRIs were superseded as the
political elite at higher levels (MLAS, MPs, etc.) were lukewarm to the idea of
decentralisation. On the positive side,
politically the PRIs initiated a process of democratic seed drilling in the
Indian soil; socio-culturally facilitated the emergence of new local
leadership; and from the development angle, it helped imbibe a development
psyche among the rural people. The
Ashok Mehta Committee (1978) suggested several measures to strengthen the
PRIS. The failure of development
strategies through PAPS and the declining levels of the people’s participation
in the development process has rekindled the interest in the PRIS, which
culminated in the 73rd Amendment to the Indian Constitution giving a
statutory status to the PRIS. Even
though the PRIS have been constituted across the nation, many have not implemented
the programs in letter and spirit. Devolution of financial and administrative
powers to these grassroot institutions of self-governance has largely remained
inadequate. Though reservation for
women and socially weaker sections has been one of the greatest achievements of
the modem PRIS, the social structure and influences still render these groups
ineffective.
2.8.2 Human poverty need to be addressed through
human development, which encompasses, education, health, drinking water,
housing, rural infrastructure, etc. In
the early 1960s along with general provision relating to basic needs, a
well-defined approach called the ‘Minimum Needs Approach Program' (MNP)
was evolved. The Planning Commission,
for the first time, spelt out this approach and formulated a Perspective Plan
1961-75. In the Fifth Plan (1973-75),
the 'Minimum Levels of Living' approach was introduced with two components: (a)
a capital basis for specific target group i.e., the poorest 30 per cent of the
population; and (b) notifying seven public services as the Basic Minimum Needs
(BNP) and specific target were fixed.
Expect for the housing component, 90 per cent of the seven BNPs
provision were addressing the needs of rural areas. Over the years, rural energy, sanitation, PDS were added to the
list of MNP. Considerable improvement
in the socio-economic infrastructure in the rural areas has been achieved and
it has gained momentum since 1980 with the introduction of several employment
generation and other human development programs. However, these approaches and strategies have had only marginal
impact on the poorest sections of society.
This has led to decentralised and participatory approaches to improve
the efficiency and reach of MNPS. In
1979, the seven Basic Minimum services were identified whereby the target was
to cover the entire country by 2000 AD.
While the major responsibility in the regard rests with the Ministry of
Rural Areas and Employment, the Ministry of Health, Welfare, HRD, etc., also
have a role in fulfilling the MNP commitments.
One major flaw still persisting is non-integration and convergence of
the schemes of various ministries at the grassroots level. Awareness building exercises are also found
to be inadequate.
2.9
Environmental Access to Food
Though physical
and economic access to all nutrients is a necessary condition, it is not
sufficient for ensuring orderly physical and mental growth to realise genetic
potential. This requires enabling
environment for securing effective biological utilisation of the nutrients
consumed. At high levels of morbidity,
the body’s physiological or internal entitlement to food and nutrients is
diminished, even in the presence of adequate external entitlement. Water borne diseases, infection and
pollution affect the processing power of the body and the poor under nourished
population suffer most. Nutrient loss
from the body in such an environment is very considerable. Protected water supply, sanitation and
proper waste disposal alone can ensure optimum biological utilization of
nutrients consumed by the population.
2.10
Drinking Water
The responsibility of providing drinking water rests with the States.
Though funds were allocated in the budgets, but in the mid-1960, it was found that these water schemes
were provided only to those villages which had an easy access. The Centre entered the scene in the Fourth Plan with assistance to
States to identify hard core problem areas.
In 1972-93 in yet another effort to accelerate the pace of coverage the
Central Government introduced the Accelerated Rural Water Supply (ARWS) with
100 per cent grant. Water supply
hitherto looked after by the Urban Development Ministry got transferred to the
Rural Development Ministry. Despite the
total coverage reported at the beginning of the Eighth Plan, subsequent
investigation showed that the many people of the previously covered villages
has become ‘no source' villages. This number was quite huge resulting in new
efforts through the Rajiv Gandhi National Drinking Water Mission, which also
addressed problem like quantity, contamination and community
participation. The coverage of rural and urban
population with drinking water facility increased rapidly between 1985 to
1999. Sanitation facility in rural
areas covers only 9.00% of the rural population vide table below.
TABLE
3
Population
covered with drinking water and sanitation facility
Unit/Area
|
1985 |
1990 |
1997 |
1999 |
Drinking Water
|
|
|
|
|
Rural
|
56.3 |
73.9 |
86.74 |
98.0 |
|
Urban |
72.9 |
83.3 |
85.0 |
90.2 |
Sanitation Facility
|
|
|
|
|
Rural
|
0.7 |
2.4 |
6.37 |
9.0 |
|
Urban |
28.4 |
45.9 |
50.00 |
49.3 |
Source: Economic Survey 2000-2001
2.10.1 Despite a massive allocation and effort, the
situation continues to be critical in many villages especially during the
summer owing to indiscriminate water mining.
2.10.2 As stated earlier,
health, housing, sanitation, literacy and education are all linked with poverty
and social security measures to tackle it. However, since these are discussed
in detail in other related papers, these are not covered except mentioning them
as important components, so that their importance does not go unnoticed.
2.10.3 There have been conflicting and varying
opinions on the impact of the Structural Adjustment and Economic Reforms
started in 1991. Some argue that rural poverty has increased which is also reflected
by the increasing Foster Greater - Thorbeacke measures of poverty (FGT). The
poor people have very little purchasing power and hence they are peripheral to
the structured market economy with which so much development thinking and
activity is concerned. The 'Miracle of
the market' paradigm, does not work in their favour. It has been generally realised that economic adjustment could
adversely alter the living standards of the poor in the medium term at least
until the beneficial provision of the new policies materialise. The stabilisation phase is likely to be
accompanied by a decline in economic growth and employment. These might worsen the position of some of
the vulnerable sections of the labour force.
Of particular concern is that fiscal contraction is likely to result in
reduction to outlays on subsides and on budgetary outlays which are intended to
benefit the poor. The financial reforms are feared because they lead to
contraction of credit to the priority sector and PAPS. Significantly though, an
extraordinary range of activities has come up in rural areas, real wage in
agriculture is also increasing probably due to more diversified activities seen
all over the country. The phenomenon
has not been well captured leading to certain apprehensions on the effect of
the New Economy Policy on employment and growth. The fact that the hope for
future employment generation will primarily rest in the rural sector is
discussed later in the Chapter on “Employment”. Indian agriculture has some
inherent strength; comparative advantage of some crops is very high for
India. Horticulture and aquaculture
offer great potential. Globalisation
has also opened up possibilities of agro-processing. But this commercialisation process has lured several small and
large farmers in the dispossession of land and pushed them in to the labour
market.
2.11
Current Status of Poverty Alleviation Programs
On
the positive note, poverty is declining slowly but still remains widespread.
Despite methodological variations, the 55th NSSO Round has brought
out the fact that there has been an appreciable reduction in poverty. Even when incomes do not appear to have
improved, long term wellbeing has been noticed (World Bank, 1997). The female literacy has increased to 54.3
per cent in 2001 as compared to just 9 per cent in 1950-51. Life expectancy has
risen to over 63 years and Infant mortality recorded a significant reduction.
Rural investments including rural roads, irrigation, electrification, health
and education have made inroads against rural poverty. For instance, the area under irrigation has
gone up from 22 million hectares to 78 million hectares in 1996. The Central
Plan Budgetary expenditure on Anti-Poverty Programs (food subsidy employment
programs, IRDP Social Welfare Nutrition Welfare of the Scheduled Castes and the
Scheduled Tribes and Basic Needs) has been steadily rising.
2.12
Areas of Concern
Despite the positive statements of the previous paragraph, our efforts
at reducing poverty are far less effective than our neighbours. The absolute number of people below the
poverty line has been increasing steadily. Though the infant mortality rate has
declined considerably, it is still one of the highest in the world. The life expectancy at birth has doubled but
still remains well below the countries who were worse off than India in 1950
(Eg. China, Sri Lanka). India accounts for a quarter of the maternal
deaths world-wide. Female literacy is
markedly lower than men. About 37 per
cent of population still lack access to safe drinking water. Among 192 countries in the world, India
ranks 128 in terms of the Human Development Index (HDI). Though in the recent years the participation
of Centre in the social sector has been increasing, the share of expenditure by
States is declining indicating a non-serious attitude or excessive dependence
on Centre by States.
2.13
Lessons Learnt
The Department for
International Development (formerly ODA) in Its white paper "Eliminating
World Poverty; A Challenge for the 2Is' Century (1997)”, has very succinctly
put the challenges that face the world which may as well be the mission of
India.
1.
To see a society where everyone can live in
peace and security; have a say in how their community is run; and have access
to those things we so often take for granted like clear water, fresh air and
the chance to earn a living and bringing up healthy, educated children.
2.
To make the government accountable to the
people; protect human rights and create human opportunities for economic
growth.
3.
To ensure that development is sustainable. This means we must meet our needs today and
those of the future generation without sacrificing the resources we need now
(without damaging the environment) and in the future.
4.
To show progress in gender equality and the
empowerment of women by eliminating gender disparity in education and other
areas.
2.13.1 Economic growth reduces poverty. But growth alone does not provide sufficient
conditions for reducing poverty. It is not enough to focus the intervention
on the symptoms of poverty i.e. low income.
The objective is to counter
the marginalisation processes pushing a large number of the brink of
subsistence. Measures to promote
investment both public and private are very crucial. Employment programs, if well designed with sufficient thrust
incorporating a guarantee (unlike the lean season focus as of now) of round-the
year employment to the poor. Emphasis
on improving the rural resources and infrastructure can have a strong, positive
impact on poverty reduction. Wage
employment programs are self-targeting in nature and therefore, are more
effective in reducing poverty.
2.13.2 For empowering the rural poor in their quest
for poverty reduction, a synergy need to e developed between the institutions
and individuals and ensuring that they address issues of direct relevance to
them directly.
Ø A blend of devolution and collective
action for natural resources management
Ø Delivery of financial services to
the poor to enable them to access and secure financial assets
Ø Developing linkages with the NGOs
and the private sector as partners for service delivery
2.13.3 From the lessons that we have learnt in
implementing programs to overcome rural poverty, the following areas may be
identified as those needing priority attention:
·
Landlessness is closely associated with rural
poverty. Land reform measures,
therefore, are still valid in ensuring income gains to poor.
·
Access to education, health and economic
opportunity go hand in hand in reducing poverty, but the investment in these
sectors is far lower to meet the magnitude of the problem. Investments in this sector should increase.
·
Anti-poverty programs, -Including PDS have not
been cost-effective in reducing poverty.
There is an urgent need to
reform the anti-poverty programs.
Merging the plethora of schemes/programs into a well-defined and well
targeted programs is one option.
Wherever the local participation is ensured, the effectiveness of PAPs
is relatively better indicating a large role for the PRIs and NG0s in planning,
executing and monitoring the schemes with a view to reducing leakages and
strengthening the delivery mechanisms.
·
Welfare programs play two different but equally
important roles in eradicating poverty.
First they try to provide at subsidised cost or at no-cost a wide range
of amenities and services which, in a
way, compensate for the inadequate access to the benefits of growth and
redistribution policies. Secondly, they
help the poor to invest in themselves - health, nutrition, education, etc.
·
In
terms of the spatial spread and visibility, these programs have grown
considerably over the years and it is necessary to continually lay emphasis on
these compensatory measures to the poor.
Economic reforms undoubtedly have an adverse impact on the poor in short
and medium run (long run effect still untested) and therefore, social safety
net has to be widened and strengthened.
·
Management
of inflation will be a critical factor in poverty alleviation.
·
The agricultural sector cannot bear the burden
of ever-growing population. Therefore,
diversification of the rural economy through entrepreneurship development and strengthening of credit and marketing
institutions would be essential.
·
A
properly designed watershed development program through effective participation
of the people including the landless poor, can help alleviate poverty in
rainfed areas.
2.13.4 As Fawzi H. Al-Sultan,
President of IFAD, in the Conference on Hunger and Poverty, 1995 stated
“What we
need now is to move from a system in which the poor participate in officially-led
development programs towards one in which governments and external donors
support people-initiated development. – the entitlement of the poor, allowing
them to have greater control over their lives and futures”
2.13.5 Science has opened up vast opportunities
for achieving a sustainable food security.
Scientific strategies and priorities must be rooted in the principles of
ecology and employment generation if they are to serve the cause of public
good. We need more science, and
technology, both in the public and private sectors, related to the agriculture
for proving Neo-Malthusian predictions of widespread food and drinking water
insecurity, wrong. Only then we can
convert the 2Ist century into a Millennium of Hope. Eventually all future development
approaches which keep poverty reduction as their core objective must recognise
the significance of investing in human capital. Only such an effort could create the foundation for a greater
participation of the poor in the over-all developmental process.
2.13.6
International Experiences: One of the most
significant poverty reduction success stories by planned interventions comes
from China. In this program, the Government of China had taken several critical
measures to attack poverty like setting up goals, strengthening state
institutions, providing additional funds and effectively utilising them, and
mobilising the resources. The 8 -7
Poverty Reduction Programme (8 for 80 million people and 7 for seven years of
the Plan) is a targeted intervention that strengthened state institutions,
organised relevant training programs with a practical and income enhancing
orientation and advances in new technologies, augmenting the provision of
credit and farm inputs and facioitating labour mobility from endemically poor
areas. The emphasis was on expanding the income generating activities among
disadvantaged groups by strengthening crop, forestry and livestock production,
developing transport and communication services, and in general, raising
scientific knowledge, education, literacy, health and physical fitness.
2.14
Towards Hunger Free India
The Prime
Minister released the Food Security Atlas of Rural India on April 24, 2001.
While identifying areas of high food insecurity in the country, provides
information on the availability, access and absorption of food and is thus a
holistic approach to the problems of hunger and malnutrition. (“Towards Hunger
Free India” – A Joint publication of the Planning Commission, MS Swaminathan
Research Foundation and UN World Food Program). Success in eliminating endemic
and transient hunger will ultimately depend upon our success in ending both
unsustainable lifestyles and unacceptable poverty. The Prime Minister
emphasized the fact that
“the responsibility of mitigating the hunger of the poorest
of our brethren cannot be that of the Government alone. It requires the
cooperative efforts of the Central and State Governments, local self-government
bodies, non-governmental organizations, international organizations and above
all, our citizens.”
A
Ten-point Agenda for Action was adopted at the Closing Session of the
Consultation, broad features of which are given in the succeeding
sub-paragraphs.
(i)
Identification of the vulnerable
individuals:
The first
step is to identify families and individuals suffering from endemic hunger and
malnutrition. This is best done by the Gram
Sabha. Usually, such families/individuals tend to have limited or no access
to productive assets like land, cattle, fishponds and education. They often live
by daily unskilled wage work. The methodology of the Food Insecurity Atlas of
Rural India is a tool that can help in identifying the hotspots of hunger.
(ii)
Information Empowerment:
Families/individuals
identified as vulnerable to endemic hunger can be given Household Entitlement Cards which give information on all
Government projects (both Central and State Government) relating to poverty and
hunger elimination, to which they are entitled. The various government projects
should be dis-aggregated by gender, age, class and caste and precise
information provided on methods of accessing the benefits to which people are
entitled. Land ownership records should be periodically updated and made
available to all concerned. Such steps
will enable all eligible persons to derive benefit from their entitlements, for
which provisions exist in the budget of the Central and State Governments. Also the Panchayats / local bodies should be
empowered legally, administratively and financially to assume the
responsibilities assigned to them under the Eleventh Schedule to the
Constitution.
(iv)
Eliminating Protein Calorie
Malnutrition and Energy Deprivation:
Existing
projects like the targeted Public Distribution System and nutrition programs
(eg. Integrated Child Development Services, Mid Day Meals and Antyodaya Anna
Yojana) will have to be mobilised to ensure that they reach those who have so
far been bypassed by such schemes. The
PDS should include the distribution of nutritious cereals like jowar, bajra, ragi and millets
because they have a low cost and high calorie / protein / micronutrient
advantage. Knowledge on childcare and
healthcare practices as well as support services should be targeted to pregnant
and nursing mothers, so as to ensure effective protein-calorie nutrition of
young children. ICDS should encourage
increased involvement of women in the management of feeding programs. Greater
attention is needed to appropriate supplementary nutrition for children in the
0-2 age group, the most critical period in terms of brain and body growth, and
also the most neglected in ICDS, and the group with the highest established
levels of malnutrition. This will
ensure better health and nutrition of both the infants and mothers. Reaching the
unreached and giving operational content to Gandhiji’s concept of Antyodaya are
major challenges.
Food
assistance agencies should accord priority to cost-efficiency and
program-effectiveness. The large surplus food reserves available with
Government provide unique and uncommon opportunities for establishing a
national grid of Community Grain Banks.
Such Banks administrated by local self-help groups could become the
vehicle for administering food for work, Antyodaya
Anna Yojana, targeted public distribution system and all such schemes
designed to assist the vulnerable sections of the population.
(v)
Eliminating Hidden Hunger caused by
Micronutrient Deficiencies:
A
multi-pronged strategy consisting of direct interventions like the
fortification of food, the administration of oral doses of vitamin A, iron and
iodine fortified salt, as well as the promotion of the cultivation of
vegetables and trees like amla in the
small areas surrounding huts/homes (home garden), can be introduced in every
village. ‘India-mix’ which is fortified with essential vitamins and distributed
through ICDS centres in selected states should be extended to all States and
Union Territories. The highest priority should go to the elimination of hidden
hunger as soon as possible since this is an easily achievable task. The programs
can be designed on a campaign mode as in the case of vaccination for important
diseases.
(vi)
Safe Drinking Water and
Environmental Hygiene:
Environmental
hygiene can be improved through co-operation among local communities. Every
village and town should have a plan for the treatment and recycling of solid
and liquid wastes. Waste recycling could also become a remunerative enterprise
and self-help groups can be trained to take up such environment enhancing
enterprises. Clean drinking water is necessary to ensure the efficient
biological absorption and digestion of food in the body. In addition, the
consumption of boiled water should be encouraged and facilitated. This one step
could help in reducing infant and child mortality rates significantly.
(vii)
Enhancing Purchasing Power through
Sustainable Livelihoods:
There is
need for synergy among the farm and non-farm employment programs in different
agro-climatic zones. Efforts should
include the corporate and business sectors in contract farming and buy back
arrangements of the farm products. This
will increase employment opportunities in the rural areas. Productivity
enhancement and market development need priority attention. Livestock and
agro-forestry are important to livelihood security in semi-arid and arid areas.
Appropriate infrastructure for perishable commodities including livestock and
poultry products as well as fruits, vegetables and flowers should be developed
as soon as possible. The Rural Infrastructure Development Fund needs to be
harnessed for this purpose. Every individual should be able to earn his/her
daily bread through economically and ecologically viable means of
self-employment. To this end, the organization of an innovative National Program for Sustainable Livelihood
Security with provisions for both skilled and unskilled work and for
value-added on-farm and non-farm employment should be considered for inclusion
in the Tenth Five Year Plan. Assistance under such a program can take the form
of food, cash and infrastructure.
(viii)
Special Attention to Women and
Children:
While all
the above programs should accord equal attention to men, women and children,
special steps are essential to attend to the needs of pregnant and nursing
mothers and pre-school children. There are several national and state schemes
intended to help adolescent girls, pregnant and nursing women. They can be
listed in the Household Entitlement Cards, to ensure that the coverage of such
projects includes the excluded. Education, social mobilisation and regulation
are essential for overall empowerment of women including prevention of female
foeticide and infanticide. The highest
priority in Panchayat level monitoring should go to both the incidence of Low
Birth Weight (LBW) children and the male-female sex ratio. The serious
consequences of LBW in relation to brain development and subsequent health
should become widely known. Sex ratio
is an important indicator of the status of women in the society. Women’s roles as nutritional caretakers as
well as their work outside the house have to be equally acknowledged. Their educational level, nutritional status
and control over food resources and assets are all determinants of household
food security. Thus strengthening
opportunities and options for women and making them key players is the first
step to alleviate hunger.
(ix)
Strengthening Food Based Safety
Nets:
There is
an immediate need to strengthen food based safety nets in a manner that food
assistance plays an important role in ensuring minimum nutritional intake for
the most undernourished people. ICDS and the Mid Day meal program are very
relevant examples. The focus of food
assistance should shift from merely appeasing hunger in the short term towards
enabling development of human faculties. Programs such as FFW (Food for Work)
should use food consumption to encourage investment and leave behind a lasting
asset, which will continue to help the community, household or individual into
the future. With respect to natural
resource management and disaster mitigation, FFW can be used to promote
sustainable livelihoods for the food insecure. This requires action by
concerned Ministries, Government and Non-Government Organizations, in a variety
of sectors, integrated under a coherent policy framework for food assistance.
Action with respect to geographic and gender targeting as well as to age and
social status together with refocusing on specific nutritional gaps, will lead
to greater and more speedy impact. Drawing from the best experience available
there is an urgent need to develop more effective mechanisms for the delivery
of food assistance programs.
(x)
Linking Disaster Mitigation with
Development:
Both at
the national and global level there is an immediate need to link disaster
mitigation with development. Without disaster preparedness, development itself
is at risk. Increased attention is
needed to find ways of mitigating the effects of natural disasters so that a
single calamity does not push some people over the edge. An example of a mitigation
activity is local level grain and water banks, which provide assistance at both
the community and household level. Food Assistance is a powerful tool in
tackling hunger at times of natural disasters: the challenge is to ensure that
distributions are in accord with the demands of development, while at the same
time safe-guarding the most vulnerable sections of society.
Where
appropriate, additional food assistance should be targeted to disaster-prone
areas that are home to many food insecure people. It should strengthen the
ability of these households to cope better with short term shocks. Food
assistance should combine with other investments under the umbrella of a broad
food security strategy.
(xi)
Greater Market Access to Farm
products:
Industrialized
countries must provide greater market access to the farm products of developing
countries. If trade and not aid is to become the pathway for poverty reduction,
trade should become not only free but also fair. At the same time, greater attention and investment will be needed
to strengthen our efforts in the areas of ecotechnology, post-harvest
technology, sanitary and phyto-sanitary measures and adherence to FAO Codex Alimentarius standards. Emphasis on food quantity and safety is
vital not only for attracting and retaining global markets, but even more
importantly to protect the health of the poor.
In addition, restrictions on farmers selling their products anywhere in
the country should be removed. If
foreign farmers could enjoy the privilege of removal of quantitative
restrictions on exports to India, Indian farmers should enjoy the same
privilege not only abroad but also within the country.
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Mosher
T Arthur: Thinking about Rural Development, Agricultural Development Council
INC, New York, 1976.
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Vyas,
V.S.Bhargava Pradeep; Public Intervention for Poverty Alleviation – An
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Singh
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Mathur
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John Hopkin Press (1985), FF59-75.
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Prasad
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Subba
Rao K., Regional Variation in Impact of Anti-poverty Programme, A Review of
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Ravallion M.(1996); Why have some Indian State Done better than others at
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APPENDIX-1
Chronology of Events in Rural Development
( See para 2.4 )
|
Year &
Programmes |
Major Objectives & Components of the Program |
Achievements & experiences in brief |
|
1.Early Years (a)
Community
Development Programme (CDP): and National Extension Service 1952. |
Rejuvenate economic & social
life in rural areas through infrastructure building at local level and
investment in human resource development through the provision of education
and health. The programme was implemented
in well defined geographical area i.e., Community Development (CD) Block. |
During the pilot phase, remarkable
results were obtained in a number of CD blocks. When the programme was expended to cover the entire country the
weakness of the socio-economic system came to the surface. The programme was not supported by
appropriate technology and institutional reforms. Its impact on poverty alleviation was not conspicuous in any
part country. |
|
(b)
Land
Reforms 1956-66 |
Redistribution of land through
land ceiling , tenancy reforms abolition of Zamindari allocation of surplus
land to landless poor or marginal farmers. |
The initial pace of reforms was
slow as this as this was a state subject. Distribution of surplus land was far below expectation.
Distributed lands were marginal and unproductive. Position of small tenants
did not change much. Land reforms was as good as a forgotten strategy since
1970s. |
|
II. Poverty Alleviation
Progr- ammes A)
Area
Development 1960-71 (1)
Intensive
Agriculture Development Programme (IADP) (2)
Intensive
Agriculture Area Development Programme (IAADP) (3)
High
Yielding Varieties Programme(HYV) |
Deficit in foodgrains in the late
50s led to the Grow more food campaign.
Increasing agricultural production
and productivity through introduction of High yielding varieties and increase
in irrigation. |
Green Revolution was a major
achievement. But successes were
confined to irrigated areas and better-off farmers. Regional imbalances and
disparity was glaring.
|
|
(4)
Command
Area Development Programme (CADA)1974 |
Faster & Optimum utilisation
of irrigation potential created Farm
Development with emphasis on Weaker section. |
Initiated in 1974 the programme
expanded to cover 47 irrigation projects administered by 36 Command in Area
Development Authorities in 12 States by 1984
Cover 102 district. All irrigation projects in India have CADA. |
|
(5)
Hill
Area Development Schemes (HADS), 1972 |
Socio-economic development of Hill
Areas in harmony with ecological development. Promoting basic life support
systems with sustainable use of resources.
|
Hill area were classified as
special areas (all North Eastern State, J&K and Himachal Pradesh and
general areas (Tamil Nadu, West Bengal, Maharashtra, Kerala, Goa, Karnataka,
Uttar Pradesh). |
|
(6)
Drought
- Prone Area Programme (DPAP) 1973-74 |
Creation of durable assets that
would contribute towards reducing severity of drought, wage employment etc. |
The programme is being implemented
in 947 blocks of 155 districts in 13 states covering 746 lakh hectares as on March 97. Since
inception about Rs. 1992 crores have been spent under DPAP. |
|
(7)
Desert
Development Prog-amme(DDP) 1978 |
Arresting environmental
degradation and improving environment and productivity in Hot and Cold
(J& K, HP) deserts. |
By March 1997, DDP was being
implemented in 227 blocks of 36 districts in seven states. DDP has covered
457 lakh hectares since inception till March 97 about Rs. 620 crores have
been spent under DDP. |
|
(8)
National
Watershed Deve-lopment Project for Rainfed Areas (NWDPRA) 1990. |
To generate successful models in
all the community Development blocks where less than 30% arable area in under
irrigation to bring the benefits of Green Revolution to dry regions. |
A cent per cent Centrally
sponsored programme under the Ministry of Agriculture Required level of Public
participation was lacking. 2554 model projects in as many blocks across 25
states Uts covering an area of 45.84 lakh hectares at a cost of 1.24 crores
have been achieved by 1996. |
|
(9)
National
Wastelands Deve-lopment Board(NWDB) and Integrated Wastelands encompassing
Wastelands. |
Development of non-forest
wastelands. Development of micro-Watershed encompassing Wastelands. |
Established at the initiatives of
the late Prime Minster, Rajiv Gandhi. Later merged in the Ministry of Rural
Areas and Employment. By the end of March 1997, an estimated Rs. 216 Crores
have been spent covering 2.84 lakh
hectares. |
|
B. Target Group Development 1970-71. 1.
Small
Farmers Development Agencies (SFDA) 2.
Marginal
Farmers and Agricultural Laboured Development Agencies (MFALDA). |
Direct attack on poverty,
improving productivity and assess to productive resources and services to
poorer sections of community in selected backwards areas. These schemes were
fully funded by the Central Government. |
Initially 46 SFDAs and 41 MPALDAs
were started. In 1979 both the agencies were merged into SFDA and were in
operation in 198 districts through 168 SFDAs. Between 1971 and 1977, around 6.5
million rural households with a budgetary outlay of Rs.134.31 crores and
credit support to the tune of Rs. 243 crores were covered. In 1979 this was
merged into IRDP. |
|
C. Self-Employment 1. Intregated Rural Development Programme
1979 (Self Employment Programme) |
An integrated approach for both
agriculture and other development targeting the poor. This programme imbibed
the objectives of SPDAs also. Subsidy and credit were provided to poor
households to take up self employment and income augmenting activities. The
cost of the programme was to be shared equally between centre and state.
National target of assisting 600 families per block annually was laid out. |
Initiated as a pilot project in
selected blocks, it was expended to cover the whole country in 1980. During
the Sixth Plan the programme covered 15.13 million families with Rs. 1,500
crores and a similar number in the Seventh Plan was covered. Rs. 1,186 crores
for Central assistance was allocated in the seventh Plan. By the end of March
97, over 50 million families with 50,000 crores have been covered since inception. |
|
2.
Development of Women & Children in Rural Areas (DWCRA)- 1983 |
To provide income generating
skills and activities to poor women in rural areas. Social and economic
empowerment leading to improve d areas to health, education etc. |
Started as a pilot schemes in 50
districts in 1983, it is now implemented all over the country. As on January,
1997, 1.88 lakh groups with 29.54 members have been assisted to the tune of
Rs. 220.43 crores. This is one of the fairly successful scheme. |
|
3. Training of Rural Youth in Self Employment
(TRYSEM) 1979. |
Providing technical and
entrepreneurial skills to youth from the poor families to enable them to take up self employment. |
Started as a centrally-sponsored
programme on 15 August, 1979. As on December 96, 37.09 lakh youth have been trained but a very large number of
them could not settle in the trades in which they were trained. Lack of
credit facilities and demand for trade are some of the reasons. |
|
4. Took Kits
Programme (1992) |
To improve the quality of work of
rural artisan and thereby their income earning opportunities. |
Started as a pilot schemes, it now
stands extended to the whole country; 4.7 lakh tool kit as a cost of Rs. 84.0
crores have been provided. |
|
C. Wage Employment 1. Rural Man Power Programme (RMP) (1960-69) |
First major wage employment
programme aimed at providing 100 days of employment for at least 2.5 million
persons at the end of the Third Plan in areas prone to pronounced employment. |
Resource constrains curtailed the
programme only to 20% of the outlays of Rs. 150 crores. The programme ended in 1960-69 generating 137 million
man-days of employment. |
|
2. Crash
Schemes for Rural Employment –1971 (CSRE) |
To provide employment to at least
1,000 persons in each of 350 districts every year through labour intensive
work and creation of durable assets. |
Started with Rs. 50 crores annual
outlay in 1971, created employment to the tune of 360 millions man-days. The
scheme marked considerable lack of planning an assets created were mostly
non-durable in nature. |
|
3. Pilot
Intensive Rural Employment Programme (PIREP) 1972. |
To provide additional employment
for unskilled labour by creation of assets which have multiplier effect on
employment generation through skill upgradation. |
Implemented along with CSPST,
Initiated as a pilot project in 15 CD Blocks ended 1975-76 creating 18.16
million man days of employment. |
|
4.
Drought-Prone Area Prog-ramme (DPAP) an Desert Development Programme. |
Mitigating the severity of
scarcity condition by organising labour-intensive and production-oriented works to generate
employment in rural areas. |
The RWP of 1971 was converted in
DPAP and later redesigned to be an area development programme. |
|
5. Feed For
Work(FWP)-(1977) |
To generate additional gainful
employment to unemployed in rural areas with a view to improving their
incomes and nutrition. Creation of durable community assets by utilising the
surplus foodgrains. |
The programme could not make much
headway due to some constrains inherent in the schemes itself. During
1977-79, a total employment of 979.32
million days for generated. |
|
6.
National Rural Employment Programme(NREP) -1980 |
The FWP was redesignated to be
NREP and the objectives of the extensive employment programme were continued.
NREP became part of the sixth Plan since 1981 and implemented as a certainly
sponsored programme on 50:50 cost sharing basis. |
During the Sixth Plan Rs. 1,873
crores were spent on the scheme creating 1775.2 million man-days of
employment. In the Seventh Plan Rs. 2,940 crores was spent to create 1477.5
million man-days. |
|
7. Rural
Landless Employment Guarantee Programme (RLEGP) 1983 |
To provide 100 man-days of
employment in a year to at least one person in each landless household during
the lean season. To be implemented alongside NREP covering the whole country |
During the Seventh Plan, Rs. 2,412
crores were spent under this scheme creating 1,154.4 million man-days of
employment. But both NREP and RLEGP could not provide the hundred days. |
|
8. Jawahar Rozgar Yojana (JRY) 1989 |
Merging the objectives of both
NREP and RLEGP, the scheme to be implemented as a centrally sponsored scheme
on 80:20 (Centre : State) cost sharing basis covering the entire country. |
Since inception till 1966-97
(December)., nearly Rs.240 billions were spend under the scheme creating 6.4
billion man-days employment. |
|
9.
Intensive JRY-IJRY Indira Awas Yojana (LAY) Million Wells Scheme (MWS)
Innovative JRY. |
All part of JRY but aimed
employment generation through special efforts in some backward areas (JRY)
housing for SC/ST (LAY) and irrigation facilities for SC/ST (MWS). |
Since 1996, all these components
have become independent schemes, while IJRY was merged with Employment
Assurance Scheme. By November, 1996, 1.05 million wells at a cost of Rs.
3,671 crores have been constructed under MWS. By the 1996, about 30 lakh
houses have been constructed. |
|
10.Employment
Assurance Scheme (EAS) 1993 |
To cater to employment in most
difficult areas * to provide 100 days of
employment for 2 members for each
poor households through creation productive community assets. |
Started in 1.752 backward blocks
in 257 districts with Rs. 600 crores. It has since been expended gradually
and now covers the whole country. As on February, 1997, Rs. 4,110 crores have
been spend under the programme generating 853 million man-days of employment. |
|
11.
Member of Parliament Local Area Development Scheme (MPLADS) |
The objectives are same as JRY.
But MPs can decide the allocation of work as per their assessment. |
Part of JRY and EAS funds and some
additional budgetary allocation formed the resources of this scheme Rs. 790
crores per annum is the allocation for this scheme. |
|
D. SPECIAL GROUPS
(SC/ST) 1. Special Component
Plan (SCP) 1979-80 & Special Component Assistance (SCA). |
Development of Welfare of SC by
ensuring enhancement of flow of finds for SCs, through individual/family
assistance and also improvement in social sector basic amenities. |
From Rs. 361.16 crores (7.7%) of
total plan outlay under SCP in VI Plan, the allocation increased to Rs.
5,518.30 crores in 1995-96 (11.8%). About 1.38 families were assisted
economically by March, 96. |
|
2. Scheduled Caste
Development Corporation (SCDS), ’80; National SC & ST Finance &
Development Corporation (NSFDC), 1989. |
To provide a link between SC/ST
poor and financial institutions. To provide financial assistance to
concessional rates for income generating activities both in farm and non-farm
requirements. |
State and District level agencies
have been established. By the end of December, ’96 NSFDC
has assisted 2.13 lakh beneficiaries to the tune of Rs. 314.2 crores. |
|
3. National
Commission for SCs & STs (1992) |
To study safeguards, rights,
socio-economic development. |
Submitted its first annual report
after the period ending December, 1993. |
|
4.
Tribal Sub-Plan (TSP) & Special Component Assistance (SCA) |
Accelerating the pace of
socio-economic development of STs and protecting them from exploitation. |
In operation in 18 states and Uts.
In the Seventh Plan Rs. 7,077 crores was allocated under TSP. From Rs. 1992
crores in 1991, it has risen to Rs. 3,867 crores in 1996. |
|
a)
Integrated
Area Development Approach(ITDP) |
Earmarking funds for TSP. One of the strategies of TSP. ITDPs are
implemented in blocks, where 50% population is tribal. |
194 ITDPs have been established.
Separate Agencies ITDP have been set up to implement the programme. |
|
b)
Modified
Area Development Approach (MADA) |
MADA will come into force in a
group of villages having a population of 10000 or more where 50% are tribals. |
252 MADA pockets have been formed.
79 clusters with 5000 population have also been formed. |
|
c)
Primitive Tribal Groups (PGTs) |
Development of Pre-Agricultural
level technology groups of tribals through micro projects. |
75 PTGs in 15 states and Uts
having been identified. |
|
III. Social Welfare Measures 1.
Public Distribution System (PDS), 1950 |
Regulate the movement of
food-grains from surplus states to deficit areas. |
PDS has become a permanent scheme
since the Seventh Plan. PDS role from mere 80 million tonnes in 1951 to 15.3
million tonnes in 1995 with a peak at 20.8 million tonnes in 1991. Till about
1991, distribution was higher than procurement. There were 4.33 lakh FPS in
1995 of which 3.3 lakhs were in Rural Areas. The annual cost of subsidy rose
to Rs.5250 crores in 96 from Rs. 117 crores in 1993.
|
|
2.
Revamped Public Distribution System (RPDS), 1992 |
Backward and remote areas which
are predominantly tribal are to be focused for special minimum under PDS. |
RPDS covered 1750 blocks through
1.02 lakh FPS. |
|
3.
Targeted Public Distributed System (TPDS), 1997 |
To ensure that poor and needy get
the maximum benefit of PDS |
The universal coverage was to be
replaced with targeted coverage through differential pricing. Many states
were opposed to it. However, Some beginning has been more by the end of 1977. |
|
B. Social Security National Social Assistance Programme (NSAP), 1995 a)
National
Old Age Pension (NOAPs) b)
National
Family Benefit Scheme (NFBs) c)
National
Maternity Benefit Scheme (IMNBS) |
To fulfil the Directive principle
in article 41 and 42 of Constitution to provide social Assistance to poor
families. |
A total of 42.4 lakh people
benefited from these scheme of which 13.9 lakh under NMBS, 9.2 lakh under
NFBs and 27.6 lakh under NOAPs. The scheme is yet to pick up. |
|
Rural Water
Supply/Sanitation 1. Rural
Water Supply Schemes(RWS), 1954; Public Health Engineering Deptt.,
PHED |
Initiate planned supply of water
Create an institutional mechanism to tackle the problem of sanitation and
drinking water. |
Since Independence this was under
status First initiative by Centre. By mid sixties, only those easily
accessible villages were covered |
|
2.
Accelerated Rural Water Supply Programme (ASRWSP), 1992 |
Provide adequate drinking water to
all habitations. Provide financial support to State for coverage of problem
Villages. |
Coverage was reported to be 94.4
per cent. |
|
3. Drinking Water Decade (1981-90) |
Provide realistic standard of
quality and quantity of water to rural and urban areas |
|
|
4. Drinking Water Deptt. Shifted from Urban
Development to Rural Development Ministry (1985) |
|
Installation and commissioning of
2.6 million handpumps. |
|
5. Rajiv Gandhi National Water Mission
(RGNDW), 1986 |
Accelerate the process of drinking
water to rural population. ·
Mini-mission
in 55 districts ·
Sub-Mission
to eradicate guinea warm, iron fluorosis etc. |
Failure to develop appropriate
operation and maintenance system. |
|
6. Habitation Survey on Status of Drinking
water (1991-94) |
To identify problem villages,
uncovered villages. |
Creation of HRD cells in states to
implement and oversee the programme to achieve target by 2000. |
|
Sanitation Programme in Health Sector, 1984 |
To convert dry latrines into cost
effective sanitary latrines To propagate hygienic and health
practices and privacy to women to provide sanitary Monte. |
Rural sanitation cells
establ-ished in states. Progress is very slow. Inadequate space and
non-availability of water kept most of the latrines unused. |
|
Rural Health Rural Health Service (RHS), 1952 Primary Health Centre (PHC), 1952 Multi-purpose Health Worker (MPHW), 1974 Alma at a Declaration (1978) National Health Policy (1983) Community Health Centres (CHC) |
·
PHCs
formed part of RHS and established in CD Blocks. ·
Access
to medical care. ·
Family
welfare. ·
To
provide a package of services at doorstep. ·
Affordable,
accessible, appropriate health service to all. ·
Health
for all by 2000 AD. ·
To
provide specialised medicare for every one lakh population. |
Started in 1111952, PHCs increase
in number and scope of work over the period and grown to 21854 by 1996 from a
more 725 at the end of First Plan. Minimum Programme of Rural Health
Care was implemented. Multi specialty staff were posted
in June, 1996 2424 CHCs were functioning. |
|
Sub-Centres
(SC) |
TO provide clinic-based service to
villages in its vicinity for a population of 5000-8000. |
One SC to serve the areas of MPWS.
132730 Sub-Centres were functioning by June, 1996. |
|
Housing National Housing Policy (1953) |
·
Institutional
base for housing ·
Long-term
interest free loans ·
Provide
information on low cost housing. |
State Government to imple-ment the
programmes. |
|
Village Housing Scheme (1957) |
·
Housing
loans with subsidies ·
Research
on low-cost housing ·
Rural
sites distribution |
Progress was slow, but in Fifth
Plan major fillip was given to housing scheme. Lakh families got house site and
about 16 lakh houses were built. The trend continued in Fifth Plan. |
|
Indira Awas Yojana (IAY), 1985 |
Supply house free of cost to SC/ST
and other poor. |
Structural progress was made and
allocation increased. |
|
National Housing Bank, 1988 Rural Housing & IAY Merged (1996) |
Housing Loans Housing Finance through public
sector institutions |
Despite an increase in the housing
stock the estimated gat is 29.8 million by 2001. |
APPENDIX II
Welfare and Poverty Alleviation
Schemes in Tamil Nadu
(See para 2.7.9)
|
Sl. No: |
Name of the Scheme / Program |
Welfare-oriented Programs
|
|
|
|
Free supply of books to widow’s children |
|
|
Scholarship to physically handicapped students |
|
|
Elementary education |
|
|
Middle school education |
|
|
District Primary education programme |
|
|
Marriage Assistance |
|
|
Widow’s daughter marriage |
|
|
Intercaste marriage |
|
|
Widow remarriage |
|
|
Orphan marriage |
|
|
Working women’s hostel |
|
|
Marriage assistance scheme |
|
|
Maintenance grant to severely disabled persons |
|
|
High school and Higher Secondary school |
|
|
Family welfare |
|
|
Accident relief scheme |
|
|
Supply of drinking water in rural habitations |
|
|
Hut insurance scheme |
|
|
National control of blindness |
|
|
AIDS awareness programmes |
|
|
District TB and leprosy programmes |
|
|
Drinking water maintenance prog5ramme in Panchayat Union |
|
|
Central Government village sanitation scheme |
|
|
Dr. Jayalalithaa Girl Protection Scheme |
|
|
20 Point program |
Safety Net Schemes
|
|
Noon-meal scheme for preschool children |
|
|
Health and Nutrient scheme |
|
|
Scheme for pregnant and lactating mothers |
|
|
Mother and child health care |
|
|
Dr. Muthulakshmi Reddy Ninaivu Maghaperu Udavi thittam |
|
|
Person security scheme |
|
|
Distress Relief Scheme |
|
|
Oil age pensioner’s noon-meal programme |
|
|
Old Age Pension (Normal) |
|
|
Physically handicapped persons |
|
|
Destitute widow pensions |
|
|
Deserted destitute window pension |
|
|
Destitute agricultural labour pension |
|
|
Tamil Nadu integrated nutrition project |
|
|
Mid-day Meal Scheme |
|
|
Integrated Child Development Service Scheme |
|
|
Public Distribution System |
|
|
Targeted Public Distribution System |
Asset Creation
Programs
|
1.
|
Integrated Rural Development Programme (IRDP) |
|
2.
|
Assistance for purchase of sheep and goats to SC families
and tribal people |
|
3.
|
Agricultural land allotment |
|
4.
|
Purchase of cattle |
|
5.
|
Purchase of milch animals |
|
6.
|
National bio-gas scheme |
|
7.
|
Central assistance for installation of gobar gas plant |
|
8.
|
Integrated Rural Development Programme |
|
9.
|
Goat/Sheep rearing programme |
|
10.
|
Scheme for supply of milch animals |
Employment-Oriented
Programs
|
1.
|
Training of rural youth for self-employment (TRYSEM) |
|
2.
|
Development of women and children in rural areas (DWCRA) |
|
3.
|
Drought Prone Area Programme (DPAP) |
|
4.
|
Jawajar Velai Vaippu Thittam
(JVVT) |
|
5. |
Programme for assured employment (PAS) |
|
6.
|
Prime Minister’s Rozgar Yojana (PMRY) |
|
7.
|
Tailoring work centers |
|
8.
|
Free supply of sewing machines |
|
9.
|
Vocational graining for girls |
|
10.
|
Co-operative societies for women |
|
11.
|
Stationary and printing society |
|
12.
|
Physically handicapped |
|
13.
|
Self employment assistance to physically handicapped |
|
14.
|
Rectification of tanks for fisheries development |
|
15.
|
Formation of ponds in own lands for fish production |
|
16.
|
Special animal husbandry development programme |
|
17.
|
Integrated Horticulture Development Programme |
|
18.
|
Integrated Horticulture Development Programme for
Adi-Dravidas |
|
19.
|
Self employment |
|
20.
|
Self employment training Scheme |
|
21.
|
Small scale industrial loan Scheme |
|
22.
|
Assistance for starting individual industries |
|
23.
|
Supply of barbering tools, iron boxes, quarrying tools |
|
24.
|
Subsidy for mobile ironing carts and modernising saloons |
|
25.
|
Training for Youth and Self employment scheme |
|
26.
|
Seed loan for starting self industries |
|
27.
|
Prime Ministers’ Self employment scheme |