Miscellaneous Reasons

♤ Frequent destruction of wealth due to natural disasters in some regions like floods etc.

♤ Corruption in implementing poverty alleviation schemes

1.6. Policies and Programmes Aimed At Poverty Alleviation

The Indian Constitution and five year plans state social justice as the primary objective of the developmental strategies of the government.

The government’s approach to poverty reduction is of three dimensions. The first one is growth oriented approach. It is based on the expectation that the effects of economic growth — rapid increase in gross domestic product and per capita income — would spread to all sections of society and will trickle down to the poor sections also. This was the major focus of planning in the 1950s and early 1960s. However, this approach could not produce desired outcome. Economists state that the benefits of economic growth have not trickled down to the poor.

The second approach is based on the creation of additional assets by means of work generation. This approach has been initiated from the Third Five Year Plan (1961-66) and progressively enlarged since then. One of the noted programmes initiated in the 1970s was Food for Work.

Examples of self-employment programmes are

♤ Rural Employment Generation Programme (REGP)

♤ Prime Minister’s Rozgar Yojana (PMRY)

♤ Swarna Jayanti Shahari Rozgar Yojana (SJSRY)

These programs aim at providing financial help to create self-employment opportunities for unemployed. Additionally, SJSRY also aims at creating wage employment.

♤ Swarnajayanti Gram Swarozgar Yojana (SGSY) - Earlier, under self-employment programmes, financial assistance was given to families or individuals. Since the 1990s, this approach has

been changed. Now those who wish to benefit from these programmes are encouraged to form self-help groups (SHGs). Initially they are encouraged to save some money and lend among themselves as small loans. Later, through banks, the government provides partial financial assistance to SHGs which then decide whom the loan is to be given to for self- employment activities. This has now been restructured as Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM). A similar programme called Deendayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM) has also been in place for urban poor.

♤ Mahatma Gandhi National Rural Employment Guarantee Act- This has been termed as the biggest scheme for poverty alleviation. In August 2005, the Parliament passed this Act to provide guaranteed wage employment to every rural household whose adult volunteer is to do unskilled manual work for a minimum of 100 days in a year.

♤ PM Kisan NIdhi Scheme- As it uses direct income support (DIS), it marks the beginning of a new policy direction. It can reach about 86 per cent of farm families compared to loan waivers that can benefit a maximum of 30 per cent of the peasantry and higher MSP policy which can benefit a maximum of 10-15 per cent of peasantry.

The third approach to addressing poverty is to provide minimum basic amenities to the people. This has been sought to achieve through provision of food grains at subsidised rates, education, health, water supply and sanitation. Programmes under this approach are expected to supplement the consumption of the poor, create employment opportunities and bring about improvements in health and education. One can trace this approach from the Fifth Five Year Plan- “even with expanded employment opportunities, the poor will not be able to buy for themselves all the essential goods and services. They have to be supplemented up to at least certain minimum standards by social consumption and investment in the form of essential food grains, education, health, nutrition, drinking water, housing, communications and electricity.”

Three major programmes that aim at improving the food and nutritional status of the poor are Public Distribution System, Integrated Child Development Scheme and Midday Meal Scheme. Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Gramodaya Yojana, Valmiki Ambedkar Awas Yojana, Pradhan Mantri Awas Yojana are also attempts in developing infrastructure and housing conditions.

The government also has a variety of other social security programmes to help a few specific groups. National Social Assistance Programme is one such programme initiated by the central government. Under this programme, elderly people who do not have anyone to take care of them are given pension to sustain themselves. Poor women who are destitute and widows are also covered under this scheme. The government has also introduced a few schemes to provide health insurance to poor people. From 2014, a scheme called Pradhan Mantri Jan-Dhan Yojana is available in which are encouraged to open bank accounts. Besides promoting savings habit, this scheme intends to transfer all the benefits of government schemes and subsidies to account holders directly. Each bank account holder is also entitled to Rs. 1 lakh accident insurance and Rs. 30,000 life insurance cover.

1.7. Poverty Alleviation Programmes- A Critical Assessment

Identifying the multidimensional nature of poverty, various schemes are being implemented to address various facets of poverty. These schemes have given some good results as can be seen from following figures-

♤ The number of poor facing multidimensional poverty in India has nearly halved from 54.7% in 2005-06 to 27.5% in 2015-16.

♤ The ratio of poverty in India as per Tendulkar Committee stood at 21.9 % in 2011-12.

♤ The percentage of absolute poor in some states is well below the national average.

♤ There is improvement in terms of per capita income and average standard of living

♤ Housing has been provided to a sizeable population under various housing schemes.

However, despite various strategies to alleviate poverty, hunger, malnourishment, illiteracy and lack of basic amenities continue to be a common feature in many parts of India. Though the poverty alleviation programs have evolved progressively since independence but no radical change is observed in their character. None resulted in any radical change in the ownership of assets, process of production and improvement of basic amenities to the needy.