POVERTY

1. POVERTY AND ANTI-POVERTY POLICIES AND PROGRAMMESS.M. VIJAYANANDSECRETARYMINISTRY OF PANCHAYATI RAJGOVERNMENT OF INDIADecember, 2015

2. POVERTY • Distinguish • Experiencing poverty • Understanding poverty By the poor themselves • Defining poverty By experts • Measuring poverty Bysocial/democratic • Identifying the poor consensus • Targeting programmes/schemes

3. EXPERIENCING POVERTY • Can be proxy only - empathy • Through field immersions • Through intense and repeated participatory processes like Focus Group Discussions, Livelihood Analysis, Wealth Ranking, etc. • Listening to the voices of the poor • Content analysis of narratives of the poor

4. UNDERSTANDING POVERTY • Absolute Poverty • Just subsistence • surviving; keeping body and soul together – not “LIFE” in the normal sense • Even absolute poverty is related to the current living standards • to a moving average • Value-judgement on standards, distance • towards a socially acceptable construct • after debate, discussion

5. UNDERSTANDING POVERTY (contd....) • Relative Poverty • To the median • 60% in Europe • Chronic Poverty • Trapped in poverty • Transient Poverty • Slipping into poverty – about 1/3rd

6. UNDERSTANDING POVERTY (contd…) • Dimensions of poverty [Robert Chambers] • Multi-dimensional • Ratchet effect • Mutually interacting • Web of disadvantages • Capabilities • Low education, skills • Poor information • Livelihoods and Assets • Precarious • Inadequate • Places • Unserviced • Stigmatized, isolated

7. UNDERSTANDING POVERTY (contd…) • Body • Hungry, sick • Gender relations • Unequal • Social relations • Discriminatory • Security • Unprotected • Behaviour • Disregard/abuse by the powerful • Institutions • Disempowering/excluding • Organizations • Weak and disconnected

8. UNDERSTANDING POVERTY(contd…) • Poverty as • Vulnerability • facing uninsurable risks • Uncertainty • Insecurity • susceptibility to violence • Powerlessness • Voicelessness • Marginalization • vis-a-vis society, economy, polity, geography • “Unsanitation” • Capability deprivation • Denial of human rights

9. UNDERSTANDING POVERTY (contd…) • Links with Social Structure/values • Race/Caste • Class • Gender • feminization of poverty • Age • Dependence/unfreedom • Relational/symbolic aspects – “Othering” • Voicelessness, disrespect, stigma • Through “language” images • Insinuating shame, humiliation

10. UNDERSTANDING POVERTY (contd…) • Line between ‘us’ and ‘them’ • Imbued with negative value judgements • Suggesting moral contamination • Seen as economic burden • At best objects of pity and charity • Perceived as undeserving (Eg: of 25% in RTE) • Portrayed as criminal, anti-social • Prejudiced stereotypes

11. UNDERSTANDING POVERTY (contd…) • Psychology of the poor • Lack of confidence, self-belief, self-esteem • Shame, non-participation, inferiority • Resignation to “fate” • Alienation

12. UNDERSTANDING POVERTY (contd…) • ‘Culture’ of poverty • pathologizing poverty & welfare [Oscar Lewis] • a myth increasingly gaining prominence • Aggressiveness/violence • Low self-esteem/avoidance • Intra-family violence • Stress-induced • Emotional instability • Anxiety

13. UNDERSTANDING POVERTY (contd…) • Equality • Equality of opportunity • ‘real’ ‘actual’ • starting position should not affect ability to succeed • Meritocracy could generate winners but losers as well • Equality of outcomes • not starting points but end results • beyond opportunities to attainments • Equity • fair but different treatment to reduce inequality of outcomes

14. UNDERSTANDING POVERTY (contd…) MOST OF THE TIMES INEQUALITY IS MORE HARMFUL THAN EVEN POVERTY [Refer:-“Capital in the 21st Century” – Thomas Piketty “The Spirit Level” – Richard Wilkinson & Kate Pickett]

15. UNDERSTANDING POVERTY(contd…) • Social Justice • Choice of the word “justice” • moral element • rectification of a wrong • principle of merit, deservingness, fairness • right to be equal • Focus on “Social” • not primarily economic • indicating complexities and perversities of social order • social, affecting economic and then political position • towards fraternity – social inclusion

16. UNDERSTANDING POVERTY (contd….) • Social Justice • Problems of SCs • Poor asset base • Low skill levels • Decline of agriculture • Slow mobility • fewer new generation jobs • fewer positive migration • Dependent on declining services from public institutions • Weak political power OR Identity politics not leading to development politics • Limitation of reservations • creamy layer • Severe social stigma

17. UNDERSTANDING POVERTY(contd….) • Social Justice • Problems of STs • Ruthless direct exploitation • Slow transition – anthropological sense • Not acclimatized to capitalism • Loss of commons/dispossession • displacement • Destruction of traditional strengths • ALIENATION • Poor political consciousness • Weak leadership • Differential levels of development • Different understanding of Justice and Rights • Mismatch between two distinct sets of understanding and systems • Extremism • Vicious cycle

18. UNDERSTANDING POVERTY(contd….) • Social Justice • Approach to SC/ST Development • Positive discrimination • From ‘WELFARE’ to ‘DEVELOPMENT’ • From basic minimum needs to economic and human development • From ‘SOCIAL RIGHTS’ to ‘DEVELOPMENT RIGHTS’ • Beyond targets • Sub-plan approach • Specificities – not homogeneous

19. UNDERSTANDING POVERTY(contd…) • Summing up • Don’t reduce poverty to abstract concepts and mere numbers • The poor are as human with as much potential as any other group • Understand poverty with the “heart”, feel poverty with the “mind” – harmonize using the soul

20. DEFINITIONS • “Persons having per capita income of Rs.27[32]* per day in rural areas and Rs.33[47]* per day in urban areas enabling them to have a calorie intake of 2400 in rural areas and 2100 in urban areas along with some other basics like fuel, clothing, etc. (Planning Commission) [*Proposed by Rangarajan Committee] • “Lacking resources to obtain the types of diet, participate in the activities and have the living conditions and amenities which are customary or at least widely encouraged or approved, in the societies to which they belong – excluded from ordinary living patterns, customs and activities.” (Townsend 1979)

21. DEFINITIONS (contd.....) • Poverty is not a certain small amount of goods, nor is it a relation between means and ends; above all it is a relation between people. Poverty is a social status. ……… It has grown as an invidious distinction between classes.... (Marshall Sahlins in Stone Age Economics) • “Deprivation of ability to live as a free and dignified human being with the full potential to achieve one’s desired goals.” (AmartyaSen)

22. DISCOURSES ON POVERTY • Monetary discourse • Started in end 19th Century • Charles Booth (1887) in East London • Seebohm Rowntree (1899) in York • First to break the myth of poverty as moral punishment of nature • Shortfall from a certain level of resources measurable in monetary terms • “Objectivity” of economists • Compulsion to count and measure • Penchant for inter-temporal and inter-spatial comparisons

23. DISCOURSES ON POVERTY(contd...) • Capability discourse • Sen’s concept of “capabilities” and “functionings” • Capabilities • Real, substantive freedoms/abilities to achieve the life one has reason to value • Choosing from different kinds of life possible • Alternative combinations of functionings a person can achieve • Notions of freedom and real opportunities regarding life • What is effectively possible • Basic capabilities • Education, health, nutrition, shelter Poverty as deprivation of basic capabilities

24. DISCOURSES ON POVERTY(contd...) • Functionings • Beings, doings • Achievements – what a person manages to do or be • Use a person makes of different “commodities” at his command • Realized attainments • Could be simple like “nourished”, “literate” or complex like “public action” • Special features of the capability discourse • Focus on human aspects • respecting people’s ability to pursue the ends they value • Focus on what people are able to do or be • as opposed to what they have or how they feel • not as means of living but as actual opportunities

25. DISCOURSES ON POVERTY(contd...) • Multi-dimensional perspective • Stress on diversity of needs and priorities • Brings to the fore constraints restricting human lives • Focus on what is intrinsically important – not on what is instrumentally important like income • Moral considerations and ethical and normative principles • justice • Links individual, family, community and the state • Goes beyond poverty and deprivation to well-being CONTRIBUTED TO THE HUMAN DEVELOPMENT APPROACH • Process of enlarging choices

26. DISCOURSES ON POVERTY(contd...) • Social exclusion discourse • Mainly in European discourse on poverty • Emphasizes the relational aspects of poverty • Can be active or passive process by the agency by self of others • Result of social and cultural injustices generated by inequalities of gender, race, sexuality, ethnicity, caste, age, disability

27. DISCOURSES ON POVERTY(contd...) • Denotes • falling out of welfare net • not participating in collective social life • denied opportunities to enjoy leisure • lack of voice in decision making • discrimination • unenforced rights • losing out in the specialization requirements of the economy • poor access to public services • In aggressive individualistic meritocracy glorifying competition, povertydenotesfailure • Risk of two-tier society • alienation breeds antipathy

28. MEASURING POVERTY • National Planning Committee 1939 • Rs.15 to 20 per capita per month • Planning Commission Working Group 1962 • Recommended Rs.20 per capita per month in terms of 1960-61 prices for rural area and Rs.25 per capita per month in urban areas. • Excluded expenditure on health and education – assumed to be free • Task Force 1979 (under Dr. Y.K. Alagh) • Poverty line linked to calorie intake • Rs.49.09 per capita per month in rural areas and Rs.56.64 per month in urban areas at 1973-74 prices.

29. MEASURING POVERTY(contd…) • Expert Group 1993 (headed by Dr. D.T. Lakdawala) • Disaggregated State specific poverty lines – both for rural and urban areas • Accepted in 1997 and methodology continued till January, 2011 • Expert Group (headed by Dr. S.D. Tendulkar) • Recommended moving away from a purely calorie-based norms • Accounted for adequate private expenditure on nutrition, health and education

30. MEASURING POVERTY(contd…) • Rangarajan Committee • Introduced new Poverty Line Basket (PLB) • FOOD RuralUrban • Calorie requirement 2155 K cal. 2090 K cal. • Protein 48 gm. 50 gm. • Fats 28 gm. 26 gm. • In conjunction with public provision of full nutrition support for children of the age group 0 to 6 and universal public provision of a range of goods and services like sanitation, drainage, drinking water and primary health care. • NON-FOOD • In addition to education and clothing, rent, mobility, etc. taken into account

31. IDENTIFYING THE POOR • Done by State Governments based on instructions of the Ministry of Rural Development • VI Plan and VII Plan • Done locally as part of IRDP identifying families having annual income of less than Rs.4800. • VIII Plan (1992) • Formal survey done and families classified into income range • Below Rs.4000 • Rs.4000 – 6000 • Rs.6000 – 8500 • Rs.8500 – 11000

32. IDENTIFYING THE POOR (contd….) • IX Plan (1997) • Introduction of exclusion criteria like pucca house, consumer goods, etc. • Use of expenditure to determine people Below Poverty Line • X Plan (2002) • Use of 13 socio-economic parameters each having four scores. • Sates give the ceiling of BPL families equivalent to State poverty percentage as determined by the Planning Commission plus 10%. • XI Plan • N.C. Saxena Committee (2009) • Introduced concept of automatic inclusion • Socio-Economic Caste Census

33. TARGETTING PROGRAMMES • Gradual shift from BPL • except in the case of National Social Assistance Programme (NSAP) and IndiraAawasYojana (IAY) • Universal and demand based in respect of MGNREGS • Participatory identification for NRLM • Largely inclusive for food security • 75% in rural areas • 50% in urban areas • Moving towards objective criteria for universal coverage • Related to condition of house and condition of toilet in respect of Total Housing and SBA.

34. POST-INDEPENDENCE • Community Development Phase • Grow More Food Enquiry Committee by Shri V.T. Krishnamachari • Agriculture alone will not work • need for wider focus on village economy • need for local democratic leadership • need for well-managed extension services EVOLUTION OF POLICY ON POVERTY ALLEVIATION

35. Drawing on lessons from the earlier experience - particularly Etawah and Nilokheri • Piloted in 165 blocks in 1952 with US support • Concept of block as a rational, neutral, development geography • About 250 sq.kms having a population of 60000 to 70000 EVOLUTION OF POLICY ON POVERTY ALLEVIATION(contd…)

36. In the initial years, the focus was on mobilizing the community for local level development particularly on infrastructure and agriculture • heavy stress on people’s contribution • New developmental bureaucracy focusing on extension • S.K. Dey identified the missing spark plug • people’s movement without people’s representatives EVOLUTION OF POLICY ON POVERTY ALLEVIATION (contd…)

37. Improvements during Second Five Year Plan • Importance given to Panchayati Raj • Participatory planning initiative • Block Development Committee (BDC) • District Development Committee (DDC) EVOLUTION OF POLICY ON POVERTY ALLEVIATION(contd…)

38. 1960s • Changes during Third Five Year Plan • Negative consequences of two wars and droughts • All attention shifted to food production through technology inputs • Departmentalization began and Block became weaker EVOLUTION OF POLICY ON POVERTY ALLEVIATION (contd…)

39. EVOLUTION OF POLICY ON POVERTY ALLEVIATION (contd…) • 1970s • Direct attack on poverty • Initial focus on small and marginal farmers and agricultural labour and schemes in the primary sector • Special approach for SCs/STs • ICDS - 1975 • Attempt to de-bureaucratize and professionalize planning and implementation systems Antyodaya TSP - 1975 SCP – 1979-80 SFDA/DRDA ↓ ↓ 1975 1980

40. EVOLUTION OF POLICY ON POVERTY ALLEVIATION (contd…) • 1980s • Focus on self-employment under IRDP • Beginnings of the group approach under DWCRA • Extension of wage employment programme • NREP, RLEGP • Beginnings of provision of Basic Minimum Needs • Housing • Sanitation • Water Supply [started in 1970s] • Roads

41. EVOLUTION OF POLICY ON POVERTY ALLEVIATION(contd…) • 1990s • 73rd Amendment – but not followed up • SHG – first by NGOs and then by NABARD • Social security schemes initiated - NSAP • Post-2000 • New generation schemes launched – PMGSY, MGNREGS, NRLM (including Skills) Towards a more comprehensive approach with accent on planning from below

42. SUMMARY OF ANTI-POVERTY STRATEGIES FOLLOWED SPECIFIC STRATEGIES • Self-employment • Initially credit linked to subsidy and activity-oriented – for individuals • Gradual shift to group economic activity – mid 80s • Further shift to group formation and savings – late 90s • Paradigm shift to organization of the poor and comprehensive concept of livelihoods – 2010 onwards • Unskilled wage-employment • From allocation-based to rights-based • From selected districts to universal coverage

43. SUMMARY OF ANTI-POVERTY STRATEGIES FOLLOWED (contd…) • Skilled jobs • Skilling and placing in the formal sector • New generation jobs • Basic minimum needs • Moving towards convergence • Minimalist social security • NSAP • Basic insurance schemes • Token attempt at technology transfer – CAPART • Small effort to promote public action – CAPART

44. SUMMARY OF ANTI-POVERTY STRATEGIES FOLLOWED (contd…) • All the strategies have strong equity and social justice component • 60% houses and toilets for SC/ST • 50% of self-employment to SC/ST • 15% of housing and self-employment to minority 3% of individual schemes for people with disabilities • RIGHTS-BASED APPROACH TO DEVELOPMENT • Right to Information • Right to Work • Right to Education • Forest Rights • Right to Food

45. SUMMARY OF ANTI-POVERTY STRATEGIES FOLLOWED (contd…) ALLIED STRATEGIES • Human Development • Nutrition • Health • Education • Minor interventions in Natural Resources Management

46. NEW GENERATION ANTI-POVERTY SCHEMES(….contd) NRLM • Represents a paradigm shift in poverty reduction policy • Need to unlearn, de-school, de-construct • Not old wine in new bottles • Focus on empowerment of the poor to enable them to demand, negotiate and access rights and entitlements • Critical for realizing rights-based development • Programme designed based on evidence in different socio-economic conditions • Kerala, Andhra Pradesh, Tamil Nadu, Bihar

47. NEW GENERATION ANTI-POVERTY SCHEMES[NRLM] (….contd) • Focus on livelihoods – a much broader concept than poverty • Livelihoods denotes • Means of gaining a living • Performing activities • Using resources – tangible and intangible • Combining in several forms • In a sustainable manner • “Coping” with “risk” i.e. likelihood of occurrence of external shocks and stresses and “vulnerability” i.e. degree of exposure to risk and uncertainty • “adaptation”, “improvement”, “diversification” and “transformation” in due course

48. NEW GENERATION ANTI-POVERTY SCHEMES[NRLM] (….contd) • Definition of Chambers & Conway (1990) • “a livelihood comprises the capabilities, assets (stores, resources, claims and access) and activities required for a means of living: a livelihood is sustainable which can cope with and recover from stress and shocks, maintain or enhance its capabilities and assets, and provide sustainable livelihoods at the local and global levels and in the long and short term.” • People draw from a range of resources to manage or compose their livelihoods • Poor people are managers of complex “asset” portfolios • Role of different types of “assets”

49. NEW GENERATION ANTI-POVERTY SCHEMES[NRLM] (….contd) • Features of the Livelihoods Approach • Holistic appreciation of the different dimensions of poverty • beyond income and employment • Inter-sectoral • Dynamic understanding of complex local realities • deeply related to the context • diversity of approaches • Building more on abilities than on resources • Starting with strengths and not on needs • Focus on people • at different stages of the life-cycle

50. NEW GENERATION ANTI-POVERTY SCHEMES[NRLM] (….contd) • Recognizes importance of social, political, economic and environmental contexts • In mediating access to assets • Gradualistic but organic • Multi-level • Family • Community • Area • State • Nation • Focus on • Promotion – Livelihoods, Skills • Protection – Social Services • Provision – Basic Needs