See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/280105505

Measures for Effective Implementation of Poverty Alleviation Schemes in 21st

century

Conference Paper · January 2011

CITATIONS READS

0 3,585

1 author:

Sanjay Aswale
Shri Chhatrapati Shivaji College, Omerga
91 PUBLICATIONS   5 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Green marketing View project

All content following this page was uploaded by Sanjay Aswale on 18 July 2015.

The user has requested enhancement of the downloaded file.

 Author

Dr. Sanjay Aswale

Head and Research Guide - Department of Commerce,

SHRI CHHATRAPATI SHIVAJI COLLEGE OMERGA,

Tal – Omerga Dist- Osmanabad 4136006
Maharashtra, India

Affiliated to
Dr. Babasaheb Ambedkar Marathwada University Aurangabad

Title
Measures for Effective Implementation of Poverty Alleviation
Schemes in 21st century
 ABSTRACT
Measures for Effective Implementation of Poverty Alleviation
Schemes in 21st century
Key words – Domestic Economy, Poverty – Poverty Alleviation Schemes – Impact of
Schemes – Measures and Strategy for 2050

Introduction:
As of July 2008, the world’s population is estimated to be just over 6.684 billion, out of which the Asia and
Pacific region is 3.8 billion i.e. 50 per cent of the world’s population. This region also includes 7 of the 10
countries identified as having the largest number of poor people in the world. So far as India is concerned
population of India was 1027 millions in 2001 and the growth rate is 1.9 percent. The rate of poverty is 19.3 per
cent in 2007. The Number of poor people in India was 49 Million in 2007.Thus till today most of Indian people
who live in the rural area have been suffering from acute poverty from centuries. Mainly because proper and
special attention had not paid to get rid them from the poverty. The World Bank has been suggested the special
schemes might be implemented. The government of India also sponsored 51 poverty alleviation schemes with
budgeted expenditures about Rs. 72000 crores in 2006-07 to rural poor. Various anti poverty employment
generation and house services programes like Pradhan mantra Gram Sadak Yojna (PGSY), Indira Awas Yojna
(IAY), Suwarnjayanti Gram Swarozgar Yojna (SGSY), Drought Prone Area Prrograme (DPAP) etc. have been
in operation for decades in India. Several studies reveals that benefits of such programes fail to reach their
intended beneficiaries.

In this context the objectives have been framed like to analyze the various poverty alleviation schemes in India,
to identify measures for enhancing effective implementation of poverty alleviation schemes and to suggest the
future strategy for poverty alleviation schemes in India The hypothesis of the study are H1 - Anti poverty
programes help to reduce the poverty line and H2 - Anti poverty programes implemented properly The various
poverty alleviation schemes are in operation in India since independence. Out of these schemes 10 Schemes are
randomly selected for the present study. The secondary data required for the study is collected through
published text and statistical records of Government and other agencies. The data were analyzed by using simple
statistical techniques and hypotheses framed are tested.

The measures and future strategy for alleviating poverty find out by analyzing data of the study. The various
programes have been introduced for alleviating poverty in rural areas but yet 26 per cent of people still living
below poverty line. The programe has not touched all aspects of improvement of quality life of people. Lack of
people participation in decision making and actual implementing process is another obstacle of the programes.
There is need of re- structure of the Anti-poverty programes. The government should re-structure the Anti
poverty programes as per the need of rural people. But in the era of 21st century leaving the responsibility to the
government alone will be the biggest mistake. There is need to bring change by participation of people in the
global era.
 Measures for Effective Implementation of Poverty Alleviation
Schemes in 21st century

Key words – Domestic Economy, Poverty – Poverty Alleviation Schemes – Impact of

Schemes – Measures and Strategy for 2050

1 - Introduction:
Since the 1950s the Indian government has made poverty reduction a priority in its development planning.
Policies have focused on improving the poor standard of living by ensuring food security, promoting self-
employment through greater access to assets, increasing wage employment and improving access to basic social
services. Even after more than 50 years of Independence India still has the world's largest number of poor
people in a single country. Of its nearly one billion inhabitants, an estimated 260.3 million are below the poverty
line. More than 75% of poor people reside in villages1.
Does our Domestic economy reach potential in this situation?

2 - Statement of Problem:
What needs to be done to reach potential?
The answer is reduction of poverty. The government of India has sponsored various income generations,
employment creation and house services poverty alleviation schemes to poor. Till today most of Indian people
who live in the rural area have been suffering from acute poverty from centuries. Mainly because proper and
special attention had not paid to get rid them from the poverty.

3 – Significance of the Study:

The reduction of poverty in India is very important for becoming the super power in the world. The philosophy
underlying the poverty alleviation schemes is to tackle the rural poverty by endowing the poor with productive
assets and training for raising their skills so that they are assured of a regular stream of employment and income
in raising themselves above the poverty line. This paper discusses various poverty alleviation schemes and
2
focuses measures of poverty alleviation schemes in 21 st century And also study whether there is need of
restructure the poverty alleviation schemes for effective implementation and development of our country in
2050 as a world’s Number one economy.

4 – Review:
Several studies reveals that benefits of poverty alleviation schemes fail to reach their intended beneficiaries.

5 - Objectives of the Study:

In this context the following objectives have been framed
 1 To analyze the various poverty alleviation schemes in India
2 To identify measures for enhancing effective implementation of poverty alleviation schemes
3 To suggest the future strategy for poverty alleviation schemes in India for 2050

6 - Hypotheses of the Study:

The Following hypothesis framed in this study
H1 - Anti poverty programes help to reduce the poverty line in India.
H2 - Anti poverty programes implemented properly

7 -Methodology of the study:

The various poverty alleviation schemes are in operation in India since independence. Out of these schemes 10
Schemes are randomly selected for the present study. The statistical technique of least squares is used to fit a
straight line trend and estimate the projected trend value for the year 2012, 2030 and 2050. The trend values are
calculated by using the following equations
1) x = t – 1998 or x – 2001
2) Computed the straight line trend
3) The normal equation for estimating a and b we use
y = na + b x and xy = a x+b x2

8 - Poverty:
Poverty is a condition in which person fails to maintain their standard of living. Poverty defines on basis of the
money required to buy food worth 2100 calories in urban areas and 2400 calories in rural areas.(Since 1972). It
is a situation people want to escape.

Have we made considerable progress in 50 years?

No because in 1999-2000 only 27% of our rural population cannot afford 2400 Kcal?” According to NSSO 55th
round data the rural poverty line of Rs.327 in 1999-2000 corresponds not to 2400 Kcal but to 1868 Kcal. Thus
in 1999-2000, 75% of our rural population cannot afford 2400 Kcal. It is clearly seen from the following graph
that planning commission defined poverty ratio 27 percent, whereas NSS 55th Round report defined poverty
ratio is 74. 95 per cent in 1999-00. It can be concluded that there is 75 percent of the people are below poverty
line in India inspite of 26 per cent poverty ratio issued by government report. According to the National Sample
Survey results, people living Below Poverty Line (BPL) have come down came down from 36 per cent in 1993-
1994 (50th Round, NSSO)4 to 26 per cent in 1999-2000 (55th Round, NSSO)5.
 Poverty Ratio- Planning Commission v/s NSS

74.95

Ratio ( Percentage )
27

Planning
1 Commission Ratio NSS
2 Ratio

Graph – 8.1 – Poverty Ratio in India

9 - The Poverty alleviation schemes

The poverty alleviation schemes of the government evaluate the contribution of these programmes towards
reducing poverty in the country. The poverty alleviation schemes analyzed such as---

9.1 The Self-employment programmes

This programe was started in 1970. It includes Integrated Rural Development Programme for the purpose of
alleviate poverty ratio. Under this programe subsidized credit provides to purchase income generating assets to
Below Poverty Line households like the group of small and marginalized farmers, agricultural laborers, and
rural artisans, the physically handicapped, scheduled castes and scheduled tribes. This programme has
significantly increased the income of 57 per cent of assisted families. In the 1980s, this scheme was extended to
schedule castes and tribes, women and rural artisans 6. IRDP suffered from certain shortfalls. Considering the
shortfalls of the IRDP, the government replaced this programme with Swarnjayanti Gram Swarozgar Yojana
(SGSY) in 1999 focusing on groups to lend money and develop micro-enterprises. From the graph 9.1.1, it is
evident that the trends of expenditure remained unchanged. But the projected trend in expenditure is increasing
trends in the year 2015, 2030 and in 2050. It can be concluded that there is need to increase the expenditure
under IRDP/SGSY programes.

Trends in Expenditure Incurred Under IRDP/SGSY

Trends ( Y0 = a + bx )

2500
2187
2000
1691
1500
1269
1000 869 870 871 873 897 873 848 823 798
500
0
957

1008

1077

1132

1110

1162

960

1116

555

Projected

Projected

Projected

1994 1995 1996 1997 1998 1999 2000 2001 2002 2015 2030 2050

Source : Ministry of Rural Development Note : 2001-02 - SGSY - upto January, 2002

Graph – 9.1.1 – Trends in Expenditure under Poverty Alleviation Programes – IRDP and SGSY
 Trends in Families Swarojgaries in Lakhs

Trends ( Y0 = a + bx )

160
140 136
120
100 90
80
60
40 31
20 26 23 21 19 18 21 23 28
16
0

6
Lakhs)

25

22

21

19

17

17

10

Projected

Projected

Projected
( In

1994 1995 1996 1997 1998 1999 2000 2001 2002 2015 2030 2050

Source : Ministry of Rural Development Note : 2001-02 - SGSY - upto January, 2002
Graph –9.1.2 –Trends in Families Swarojgaries under Poverty Alleviation Programes–IRDP and SGSY
From the above graph 9.1.2 it is concluded that the trends in number of swarojgaries is unchanged up to 2002,
but it will increase in the year 2015, 2030 and 2050.

9.2 - Wage employment programmes:

The purpose of these programmes is to provide a livelihood during the lean agricultural season as well as during
drought and floods. It includes National Rural Employment Programme and Rural Landless Employment
Guarantee Programmes. These two programmes were later merged in 1989 into more well known Jawahar
Rozgar Yojana. In April 1999, due to lack of performance of JRY programme it revised and re-launched and
was named as Jawahar Gram Samridhi Yojana. In terms of wage employment, The JRY produced 1.03 billions
of man-days of labour in 1993-1994, the JGSY produced just 270 millions man-days each year. The following
graphs 9.21 and 9.2.2 indicate the trends in expenditure and employment in man days. From these two graphs it
is clearly seen that the trends in expenditure and employment in man days are changing in same direction
slowly.

Trends in Expenditures undr JRY/JGSY

Trends ( Y0 = a + bx )

25000 23725
20000
15000 15643
10000 8773
5000 3520 3924 4328
1499 1903 2307 2711 3116
0 1095
3879

4268

4467

2164

2440

2525

2032

1929

699

Projected

Projected

Projected

1994 1995 1996 1997 1998 1999 2000 2001 2002 2015 2030 2050

Source : Ministry of Rural Development Note : 2001-02 - JGSY - upto October, 2001

Graph – 9.2.1 – Trends in Expenditure under Poverty Alleviation Programes – JRY and JGSY
 Trends in Emloyment man Days in Lakhs

Trends ( Y0 = a + bx )

70000 66617
60000
50000
40000 42990
30000
20000 22908
10000 7550 8732 9913
0 462 1644 2825 4006 5188 6369
Days In

9517

8958

4006

3956

3766

2683

2683

861
10258

Projected

Projected

Projected
( Man

1994 1995 1996 1997 1998 1999 2000 2001 2002 2015 2030 2050

Source : Ministry of Rural Development Note : 2001-02 - JGSY - upto October, 2001

Graph – 9.2.2 – Trends in Employment in Man days under Poverty Alleviation Programes – JRY and JGSY

9 . 3 - The Employment Assurance Scheme (EAS)

This programe was launched on October 2, 1993 for the drought prone, desert, tribal and hill area blocks in the
country to provide employment during lean season.. The Food for Work Programme was started as part of EAS
in 8 drought prone States then all these programmes were merged into Sampoorna Gramin Rozgar Yojana in
2001.

Trends in Expenditure under EAS

Trends ( Y0 = a + bx )

7000
6000 5994
5000
4000 4358
3000 2722
2000 1904 1986 2068
1000 1414 1495 1577 1659 1740 1822
0
184

1236

1721

2160

2905

2882

2183

1861

531

Projected

Projected

Projected

1994 1995 1996 1997 1998 1999 2000 2001 2002 2015 2030 2050

Source : Ministry of Rural Development Note : 2001-02 - EAS - upto September, 2001,
Graph – 9.3.1 – Trends in Expenditure under Poverty Alleviation Programes – EAS

From the graphs 9.3.1, and 9.3.2 it is evident that the trend in expenditure and swarojgaries in lakhs days under
EAS are fluctuated. There is need of restructure of the expenditure under this scheme.
 Trends in Family Swarojgaries in Lakhs under EAS

Trends ( Y0 = a + bx )

5000
4605
4000 3917
3000 3227
2679 2714 2748 2783 2817 2851 2886 2920 2955
2000
1000
0
Lakhs)

495

666
2730

3465

4030

4718

4279

2786

2184

Projected

Projected

Projected
( In

1994 1995 1996 1997 1998 1999 2000 2001 2002 2015 2030 2050

Source : Ministry of Rural Development Note : 2001-02 - EAS - upto September, 2001,
Graph – 9.3.2 – Trends in Families Swarojgaries under Poverty Alleviation Programes – EAS

9.4- The Food Security Programmes.

In the post-economic reform era, the PDS became a very significant poverty alleviation programme of the
government. The central government initiated a new PDS programme in June 1997, and called it Targeted
Public Distribution system or TPDS.

9.5 - Social Security Programmes:

The central government has launched the National Social Assistance Programme includes National Old Age
Pension Scheme, Annapurna in April 2000 and National Family Benefit Scheme

9.6 - Urban Poverty Alleviation Programme:

Nehru Rozgar Yojana in urban areas includes Urban Micro Enterprises to provide training to learn new skills to
start micro-enterprises to poor. Between 1990 and 1994, the government had made financial provision to start
621,000 micro enterprises but only 149,000 were trained in various trades to start micro-enterprises. Out of
those trained, how many were able to start micro-enterprises was not known. The second scheme is the Scheme
of Urban Wage Employment and the third is the Scheme of Housing and Shelter Upgradation. The programme
addresses the issue of low immunization coverage and poor utilization of antenatal care among the urban poor.
It is claimed, “Dramatic improvements have been seen in health and education indicators” 7

9.7 - Drought Prone Areas Programe

The aim of this programme is to promote overall economic development and improving the socio-economic
conditions of the resource poor and disadvantaged sections inhabiting the programme areas.
The following graph shows the trends in area treated in lakh hectares for sanction projects of 24363 under
DPAP to treated 121.82 lakh hectares of Drought Prone Area. It is seen from the graphs the trends in area
treated for sanction projects are fluctuating right from 1994 to projected year 2050.
 Trends in Area Treated in Lakh Hectares under DPAP

Trends ( Y0 = a + bx )

25
20 20
15 15
10 10
7 7 7 7 8
5 5 5 5 6 6 6
0 6

8
Hectares)

Projected
( In Lakh

Projected

Projected
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2015 2030 2050

Source : Ministry of Rural Development Note : 2001-02 - EAS - upto September, 2001,
Graph – 9.7.1 – Trends in area treated in lakh hectares under DPAP

9. 8 - Food for Work Programme

The Food for Work programme is a component of the EAS in eight notified drought-affected states. The
programme aims at augmenting food security through wage employment. Food grains are supplied to states free
of cost. However, lifting of food grains for the scheme from Food Corporation of India (FCI) godowns has been
slow. Against an allocation of 35.31 lakh tonnes of foodgrains, only 21.26 lakh tonnes were lifted by the target
states up to January 2002.

9. 9 - Housing Programe:
This programe is started in 19985-86. The Indira Awas Yojna is the core programe for providing free housing to
BPL families in rural areas and targets SC/STs households and freed bounded labourers. It was first merged
with the JRY in 1989 and then it became separate housing scheme in 1996. The funds were provided for this
scheme in Ninth Plan is higher than Eighth Plan. Inspite of this during the period 1997-98 to 2001-02, the target
of 109.53 lakh new houses only 45 lakhs houses constructed.

9.10 - Land Reforms:

The Ninth Plan had laid strong emphasis on agrarian restructuring to make agriculture more efficient leading to
increased output and employment. At the end of Eighth Plan 74.9 Lakh acres was declared as ceiling surplus
and 52.13 lakh acres was distributed among 5.5 million beneficiaries

10 - Impact of Poverty Alleviation Schemes:

Table – 10.1 shows the impact of poverty alleviation schemes in India. The percentage of India's population
below the poverty has fluctuated since 1973. But there was not much change in the incidence of poverty during
the first two decades after independence. Hence the number of poor increased. But the next two decades
witnessed significant decline in poverty. The poverty reduction target set by the planning commission was 19.3
per cent in 2007.8
 Table – 10 .1
Poverty Ratio during 1983-2008
Year Number of Rural Poor Poverty Ratio (%)
( Million)
1973-74 321 54.9
1983-84 323 44.5
1993-94 320 36.0
1999-00 260 26.1
2006-07 220 19.3
Source – Poverty Projection 2007, Tenth Five year Plan, Vol. - I Planning Commission, India

11 -Measures for Effective Implementation:

The following measures for effective implementation of poverty alleviation schemes may adopt for 2050
1. The poverty alleviation schemes may be accountable and transparent.
2. Need of Active Participation of people, NGO’s and other social organizations.
3. The index of budget expenditure and other facilities should reviewed
4. Seventy-five percent rural poverty demands major restructuring in land ownership and land use pattern.
So there is need of restructure the poverty alleviation schemes as per their demand.
5. 40.9% of the rural households are landless. The poverty alleviation schemes should consider how to
increase the number of rural households having land
6. The growth rate of agricultural employment decreased during the last two decades. How to increase the
agricultural employment through poverty alleviation schemes are the best measures.
7. 55% urban poverty results from a crisis in Indian industry. The schemes should insists on problem
solving of industrial crisis
8. Though the central government has made provision for giving training and subsidies, it is not known as
to how many of them have actually benefited.
9. According to NCER survey 2010, the rural population of 45 per cent will migrate to urban in 2050. So
there is need to prohibit this migration from rural to urban.

12 – Strategy of Poverty Alleviation Schemes:

On the basis of the above measures there is need to make strategy of poverty alleviation schemes for effective
implementation in 2050.
 Scheme
Formulation
Monitoring Scheme Design
&
Evaluation

Strategy
Use of ICT Fund
Allocation

Implementation Fund
Distribution

Chart – 12.1 – Strategy of Poverty Alleviation schemes in 2050

12.1 Scheme Formulation:

The policy of poverty alleviation schemes formulate on the basis of needs and aspiration of people of the
various region of the country. It helps to generating employment opportunities, assets generations and to
increase the income of the particular region of the country.

12. 2 - Scheme Design:

The poverty alleviation schemes may design on the basis of specific programes or requirements. The
decentralization and localization are important to make the poverty alleviation programme efficient and relevant
for the poor. Apart from decentralization and community involvement, participation of the poor in the
programme that affects their welfare, is important.

12.3 - Fund Allocation:

Fund allocation is important part of any schemes or programes. Poverty alleviation schemes funds should be
allotted on the basis of population and geographical region.

12.4 -Fund Disbursement:

Proper Distribution of fund is the success of any programe or schemes. There may be transparency and smooth
coordination between funding agency or department and actual beneficiaries’ poverty alleviation schemes.

12.5 -Implementation:
The implementation of poverty alleviation schemes depends on the implementing department or its authorities.
Successful implementations of poverty alleviation schemes require an appropriate policy framework, adequate
funds, and an effective delivery mechanism.

12.6 - Use of ICT:

A more planned poverty alleviation approach with a clear cut vision of zero percent poverty ratios in 2050 and
ultimate goal of success of these schemes is the need of hour. Effective and transparent implementation may be
possible by using Information Communication Technology (ICT). Thus use of information and communication
technology would be promoted.

12.7 - Monitoring and Evaluation:

There is need to place the special emphasis on monitoring and evaluation of poverty alleviation schemes. A
comprehensive multi level, multi tool, system of monitoring and evaluation may adopt. Poverty alleviation
schemes need to be revamped and re-focus. Social audit of poverty alleviation schemes by the gram sabha
would be made mandatory.

Hypotheses Testing:
After analyzing the various poverty alleviation schemes in this paper we found that
1) The IRDP programe has significantly increased the income of 57 per cent of assisted families.
2) The table 10.1 reveals that the success of poverty alleviation schemes is reflected in the decline in
poverty ratio from 54.9 in 1973-74 to 36 per cent in 1993-94
So the first hypotheses “Anti poverty programes help to reduce the poverty line in India” is proved

After analyzing the various poverty alleviation schemes in this paper we found that
1) Under Social Security Programmes 8.71 million eligible elderly were identified, but the scheme could
reach out to only 5 million beneficiaries.
2) Under NOAPS 10 kilograms of food grains given per month free of cost. But only Rs. 174.4 million
were utilized out of the allocated fund of Rs. 990.5 million.
3) The government provided financial assistance under Urban Micro Enterprises to start 621,000 micro
enterprises but only 149,000 were trained in various trades to start micro-enterprises. Out of those
trained, how many were able to start micro-enterprises was not known.
4) Food grains under food for work programes lifted 21.26 lakh tones against allocation of 35.31 lakh
tones food grains in Jan 2002.
5) The target of 109.53lakhs construction of new houses under IAY only 45 lakhs houses constructed
during 1998-2002.
6) Under Land reform schemes 74.9 lakh acres area declared as ceiling surplus and only 52.13 lakh acres
was distributed among 5.5 millions beneficiaries.
Thus the second hypotheses “Anti poverty programes implemented properly” is not proved

To Conclude:
The measures and future strategy for alleviating poverty find out by analyzing data of the study. The various
programes have been introduced for alleviating poverty in rural areas but yet Millions people still living below
poverty line. The programe has not touched all aspects of improvement of quality life of people. Lack of people
participation in decision making and actual implementing process is another obstacle of the programes. The
government should re-structure the Anti poverty programes as per the need of rural people. But in the era of 21 st
 century leaving the responsibility to the government alone will be the biggest mistake. There is need to bring
change by participation of people in the global era.
At last it can be said that effective implementation of poverty alleviation schemes help to reach potential

Scope of Further Study:

Poverty alleviation has a special importance due to its economic development dimension of the country. Poverty
alleviation will achieve the all round development. But it is necessary to study the each poverty alleviation
schemes at micro level. The data available is based on various surveys and records. Lack of actual information
is a major difficulty and problem in this approach of the study. There is wide scope to study the poverty
alleviation schemes and economic development of India. It can be dine through research projects, M. Phil, Ph. D
etc.

References:
1 Government of India (1995) -Consumer expenditure, NSS 50th round New Delhi
2 Government of India. (2001) -Consumer Expenditure, Employment & Unemployment
and Non-agricultural Enterprises in the Informal Sector in India NSS 55th
round (July’1999-June’2000).New Delhi
3 Kumar PV.(2007) -India’s GDP expanded at fastest pace in 18 years: Annual GDP up 9.4%,
but growth could moderate this year .Market Watch 2007; May
4 Poverty alleviation in rural India (2007) – Strategy and programmes, Available from http/planning
commission.nic.in/plans/2010
5. Monthly Public Opinion (2010) – Monthly journal Vol- LV No. 8 May 2010 P-14
6 National Sample Survey Organisation (2001); New Delhi:.
7 - Rajendran M, Mehts D, Pattanaik P K (2007), - Poverty alleviation through community participation-
Available from : http://www.unesco.org accessed on January 16, 2010
8 Rajendran M, Mehts D, Pattanaik P K (2007),- Poverty alleviation through community participation-
Urban basic services for the poor UBSP India. Available from
http://www.unesco.org/ most/asia12.htm,accessed on January 16, 2010.
9 Srinivasulu Bayineni, (2006) .- "Poverty Alleviation Programs In India: A Study," The IUP Journal of
Managerial Economics, IUP Publications, vol.(3), P- 79-89,

View publication stats