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ESTIMATION OF RURAL POVERTY: A DISCUSSION WITH REFERENCE TO INDIA Dr. Shankar Chatterjee Assistant Professor, National Institute of Rural Development (NIRD),

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Presentation on theme: "ESTIMATION OF RURAL POVERTY: A DISCUSSION WITH REFERENCE TO INDIA Dr. Shankar Chatterjee Assistant Professor, National Institute of Rural Development (NIRD),"— Presentation transcript:

1 ESTIMATION OF RURAL POVERTY: A DISCUSSION WITH REFERENCE TO INDIA Dr. Shankar Chatterjee Assistant Professor, National Institute of Rural Development (NIRD), Rajendranagar, Hyderabad – 500 030, India. E-mails: shankarjagu@gmail.com & shankar_nird@yahoo.com 0091-40-24012328 (Residence) & 00-91-9848060580 (Mobile)

2 Poverty in India Planning Commission of India has defined poverty line based on recommended nutritional requirements of 2400 calories/person/ day for rural areas & 2100 calories/ person/day for urban areas.Planning Commission of India has defined poverty line based on recommended nutritional requirements of 2400 calories/person/ day for rural areas & 2100 calories/ person/day for urban areas. Based on this, income criterion has been adopted in India to determine poverty line. The latest income criterion is based on 2004-05 data.Based on this, income criterion has been adopted in India to determine poverty line. The latest income criterion is based on 2004-05 data. All India level minimum income for rural and urban areas for a person/ month should be Rs. 356.30 and Rs.538.60 respectively. All India level minimum income for rural and urban areas for a person/ month should be Rs. 356.30 and Rs.538.60 respectively. Time to time different income levels were adopted for determining Below Poverty Line.Time to time different income levels were adopted for determining Below Poverty Line.

3 Percentage of population below the poverty line in Rural India for some states of India State1973-741977-7819831987-881993-94 Andhra Pradesh48.4438.1126.5320.9215.92 Assam52.6759.8242.6039.3545.01 Bihar62.9963.2564.3752.6358.21 Gujarat46.3541.7629.8028.6722.18 Haryana34.2327.7320.5616.2228.02 Himachal Pradesh27.4233.4917.0016.2830.34 Jammu & Kashmir45.5142.8626.0425.7030.34 Karnataka55.1448.1836.3332.8229.88

4 Percentage of population below the poverty line in Rural India for some states of India (contd.) State1973-741977-7819831987-881993-94 Kerala59.1951.4839.0329.1025.76 Madhya Pradesh65.6662.5248.9041.9240.54 Maharashtra57.7163.9745.2340.7837.93 Orissa67.2872.3867.5357.6449.72 Punjab28.2116.3713.2012.6011.95 Rajasthan44.7635.8933.5033.2126.46 Tamil Nadu57.4357.6853.9945.8032.48 Uttar Pradesh56.5347.6046.4541.1042.28 West Bengal73.1068.3463.0548.3040.80 All India56.4453.0745.6539.0937.27

5 State-Specific Poverty Lines in 2004-05 (Rs. per capita /month) State/Union TerritoriesRuralUrban Andhra Pradesh292.95542.89 Assam387.64378.84 Bihar354.36435.00 Chhattisgarh322.41560.00 Gujarat353.93541.16 Haryana414.76504.49 Jammu & Kashmir391.26553.77 Jharkhand366.56451.24 Karnataka324.17599.66

6 State-Specific Poverty Lines in 2004-05 (Rs. per capita /month) Contd. State/Union TerritoriesRuralUrban Kerala430.12559.39 Madhya Pradesh327.78570.15 Maharashtra362.25665.90 Orissa325.79528.49 Punjab410.38466.16 Rajasthan374.57559.63 Tamil Nadu351.86547.42 Uttar Pradesh365.84483.26 Uttarakhand478.02637.67 West Bengal382.82449.32 All-India356.30538.60

7 Present Poverty Concept in India For the first time, Uniform Recall Period (URP) and Mixed Recall Period (MRP) concepts have been used in 2004-05 to determine BPL population in India.For the first time, Uniform Recall Period (URP) and Mixed Recall Period (MRP) concepts have been used in 2004-05 to determine BPL population in India. URP consumption = Uniform Recall Period consumption in which the consumer expenditure data for all the items are collected from 30-day recall period. URP consumption = Uniform Recall Period consumption in which the consumer expenditure data for all the items are collected from 30-day recall period. MRP consumption = Mixed Recall Period consumption in which the consumer expenditure data for 5 non-food items, viz., clothing, footwear, durable goods, education and institutional medical expenses are collected from 365-day recall period and the consumption data for the remaining items are collected from30-day recall period.MRP consumption = Mixed Recall Period consumption in which the consumer expenditure data for 5 non-food items, viz., clothing, footwear, durable goods, education and institutional medical expenses are collected from 365-day recall period and the consumption data for the remaining items are collected from30-day recall period.

8 URP DATA FOR SOME Major States of India States/ Union TerritoriesRural (%)No. of Persons (Million) Andhra Pradesh11.2 6.47 Assam22.3 5.45 Bihar42.1 33.67 Chhattisgarh40.8 7.15 Gujarat19.1 6.34 Haryana13.6 2.14 Jammu & Kashmir4.6 0.36 Jharkhand46.3 10.31 Karnataka20.8 7.50 Kerala13.2 3.24

9 States/ Union Territories Rural % Number of Population (Million) Madhya Pradesh36.917.56 Maharashtra29.617.11 Orissa 46.815.17 Punjab 9.11.51 Rajasthan 18.78.73 Tamil Nadu 22.87.65 Uttar Pradesh 33.447.30 Uttarakhand 40.82.71 West Bengal 28.617.32 All-India 28.3220.93 URP DATA FOR SOME Major States of India (Contd…

10 MRP Data for Some Major States of India States/Union Territories Rural (%)No. of Persons (Million) Andhra Pradesh7.54.32 Assam17.04.14 Bihar32.926.29 Chhattisgarh31.25.47 Gujarat13.94.62 Haryana9.21.45 Jammu & Kashmir2.70.22 Jharkhand40.28.97 Karnataka12.04.33 Kerala9.62.36 Madhya Pradesh29.814.20 Maharashtra22.212.84

11 MRP data for some states (Contd..) States/Union Territories Rural (%) No. of Persons (Million) Orissa39.812.93 Punjab5.90.97 Rajasthan14.36.67 Tamil Nadu16.95.65 Uttar Pradesh25.335.76 Uttarakhand31.72.11 West Bengal24.214.66 All-India21.8170.30

12 Employment Generation Programmes in Rural India Presently in rural India 2 employment programmes are in operation sponsored by the Government of India.Presently in rural India 2 employment programmes are in operation sponsored by the Government of India. One is self employment programme for rural below the poverty line population. Known as Swarnajayanti Gram Swarojgar Yojana (SGSY).One is self employment programme for rural below the poverty line population. Known as Swarnajayanti Gram Swarojgar Yojana (SGSY). Another is wage employment programme for rural households which have been implemented under the Act passed in the Parliament in September 2005. This is known as National Rural Employment Guarantee Act (NREGA) and as a programme known as National Rural Employment Guarantee Scheme (NREGS).Another is wage employment programme for rural households which have been implemented under the Act passed in the Parliament in September 2005. This is known as National Rural Employment Guarantee Act (NREGA) and as a programme known as National Rural Employment Guarantee Scheme (NREGS).

13 Salient Features about SGSY Launched in the country from 1 st April 1999.Launched in the country from 1 st April 1999. Organizing poor into Self-help Groups (SHGs).Organizing poor into Self-help Groups (SHGs). After skill development & training, Income Generating Activities are given through mix of Credit & Subsidy.After skill development & training, Income Generating Activities are given through mix of Credit & Subsidy. Emphasis on vulnerable sections: Scheduled Caste/ Scheduled Tribe (50%), Women(40%), Minorities (15%) & Physically Challenged (3%).Emphasis on vulnerable sections: Scheduled Caste/ Scheduled Tribe (50%), Women(40%), Minorities (15%) & Physically Challenged (3%). About 3.2 million self-help groups formed since from April 1999 to November 2008. On an average each self-help group consists of 10 members from 10 different families. Thus roughly 32 million families pursuing economic activities.About 3.2 million self-help groups formed since from April 1999 to November 2008. On an average each self-help group consists of 10 members from 10 different families. Thus roughly 32 million families pursuing economic activities.

14 Salient Features about NREGS Under the Act passed in the Parliament in September 2005.Under the Act passed in the Parliament in September 2005.  Employment is provided to every rural household’s adult member for 100 days in a financial year. Work be provided within 5 kilometers radius of the village or extra wages of 10% payable.Work be provided within 5 kilometers radius of the village or extra wages of 10% payable. Each employment seeker to be registered at local self- government, after due verification and the household is provided a Job Card.Each employment seeker to be registered at local self- government, after due verification and the household is provided a Job Card. Village level local self-government is the authority for planning, registering, issuing job cards to the beneficiaries, allocating employment and monitoring of works.Village level local self-government is the authority for planning, registering, issuing job cards to the beneficiaries, allocating employment and monitoring of works.

15 Participatory Identification of Poorest of the Poor (PIP) in Andhra Pradesh: A Qualitative Approach Participatory Identification of Poor is being implemented in all the Mandals of Andhra Pradesh (Mandal is the development unit consists of 15 to 20 villages).Participatory Identification of Poor is being implemented in all the Mandals of Andhra Pradesh (Mandal is the development unit consists of 15 to 20 villages). There are 1128 Mandals in Andhra Pradesh.There are 1128 Mandals in Andhra Pradesh. Under ‘Participatory Identification of Poor’ some general indicators are decided at the district and Mandal level. Under ‘Participatory Identification of Poor’ some general indicators are decided at the district and Mandal level. In rural areas agricultural land is an important issue, so indicators regarding the definition of poorest of the poor is decided first based on land holding followed by ‘Well being’ of the families.In rural areas agricultural land is an important issue, so indicators regarding the definition of poorest of the poor is decided first based on land holding followed by ‘Well being’ of the families. Village to village “Well Being” differs so based on workshop held at District /Mandal level, indicators are developed. Village to village “Well Being” differs so based on workshop held at District /Mandal level, indicators are developed.

16 PIP After deciding of Indiacators training imparted to Mandal Resource Persons (MRPs).After deciding of Indiacators training imparted to Mandal Resource Persons (MRPs). Generally 8-12 MRPs for each Mandal are given training.Generally 8-12 MRPs for each Mandal are given training. The MRPs, after being trained begin the programme of “identifying the poor through participatory method” which is later on approved by the elected representatives of the village.The MRPs, after being trained begin the programme of “identifying the poor through participatory method” which is later on approved by the elected representatives of the village.

17 PIP: First Day First Day Rapport building with the villagersRapport building with the villagers Organizing an Informal Meeting Followed by Organizing a Community Meeting.Organizing an Informal Meeting Followed by Organizing a Community Meeting. Coming to an agreement with the villagers regarding the place and time for the Social Map and then Preparing materials required for the Social MapComing to an agreement with the villagers regarding the place and time for the Social Map and then Preparing materials required for the Social Map Transact Walk with all sections of personsTransact Walk with all sections of persons Making the villagers draw the Social MapMaking the villagers draw the Social Map Gathering the information and identifying it in the Social MapGathering the information and identifying it in the Social Map Sharing the information gathered with the villagersSharing the information gathered with the villagers Preparing the report (drawing the Social Map on a chart, documentation of the discussions, method and other details of things observed)Preparing the report (drawing the Social Map on a chart, documentation of the discussions, method and other details of things observed)

18 PIP: Second Day Second Day Second Day Categorization according to the well being conditionsCategorization according to the well being conditions Discussion held about the living condition of the villageDiscussion held about the living condition of the village Explaining of the present exerciseExplaining of the present exercise Discussion regarding the well being conditions of the villagersDiscussion regarding the well being conditions of the villagers Classifying of the poorClassifying of the poor Category wise identification of the families on the Social MapCategory wise identification of the families on the Social Map DocumentationDocumentation

19 PIP: Third Day Third DayThird Day Organize Gram Sabha (village assembly) and get the ratification.Organize Gram Sabha (village assembly) and get the ratification. Incorporation of corrections and getting the ratification of the Gram Panchayat (Village level Local self-Government)Incorporation of corrections and getting the ratification of the Gram Panchayat (Village level Local self-Government) Giving thanks to persons present in the meeting.Giving thanks to persons present in the meeting.

20 A case from Balijaguda village, Hayatnagar Mandal of Ranga Reddy district, Andhra Pradesh Study carried out in January, 2003 under the guidance of Society for Elimination of Rural Poverty (SERP). Entire process was carried out by the villagers.Study carried out in January, 2003 under the guidance of Society for Elimination of Rural Poverty (SERP). Entire process was carried out by the villagers. Poorest of the poor 26 familiesPoorest of the poor 26 families (Indicators) (Indicators) Small HutSmall Hut 2 or 3 children, no one going to school2 or 3 children, no one going to school No Agricultural landNo Agricultural land Daily wage earners- Work – Earn - EatDaily wage earners- Work – Earn - Eat No sheep or goat or cow or buffaloNo sheep or goat or cow or buffalo Serious illness approach to Government HospitalsSerious illness approach to Government Hospitals No approach to BankNo approach to Bank

21 2 cases from Kalva village,Orvakal Mandal, Kurnool district, Andhra Pradesh Case-1 Mohammad Bee Mohammad Bee illiterate, a very poor woman up to 1994. Married at 13 years & mother at 18 years.Mohammad Bee illiterate, a very poor woman up to 1994. Married at 13 years & mother at 18 years. Husband was daily labourerHusband was daily labourer As assets, a hut, a small cot, 4 cooking items & 2 saris (Indian women wear)As assets, a hut, a small cot, 4 cooking items & 2 saris (Indian women wear) Joined with her husband for working as laborer to get 2 square meals a dayJoined with her husband for working as laborer to get 2 square meals a day Blessed with 3 male children. Admitted in school not for education but for 2 pairs of dresses which were provided at free of cost. Moment dresses were provided, children were withdrawn from the school and asked to earn. Blessed with 3 male children. Admitted in school not for education but for 2 pairs of dresses which were provided at free of cost. Moment dresses were provided, children were withdrawn from the school and asked to earn.

22 Case of Mohammad Bee (Contd.) Chand self-help group formed in the village in 1995. Bee joined. Identified poorest of the poor & got loan within 6 months. Loan amount was Rs. 1000 @2% rate of interest/month earned Rs 5000.Chand self-help group formed in the village in 1995. Bee joined. Identified poorest of the poor & got loan within 6 months. Loan amount was Rs. 1000 @2% rate of interest/month earned Rs 5000. After repaying of loan, took another loan; process continued for 24 times ;borrowing & repaying.After repaying of loan, took another loan; process continued for 24 times ;borrowing & repaying. Repaid Rs. 0.6 million amount of loan taken time to time and taken fresh loan of Rs. 0.4 million, repaying regularly. Now having a concrete house & 11 acres of agricultural land including 6.5 acres of mango garden. Repaid Rs. 0.6 million amount of loan taken time to time and taken fresh loan of Rs. 0.4 million, repaying regularly. Now having a concrete house & 11 acres of agricultural land including 6.5 acres of mango garden. Husband no longer working as a labourer.Husband no longer working as a labourer. Mohammad Bee attends self-help group meetings, watches television and no village functions are held without her. A case of “Zero to Hero”Mohammad Bee attends self-help group meetings, watches television and no village functions are held without her. A case of “Zero to Hero”

23 Case 2: Ramakka Ramakka a very poor woman of marginalize social group, before joining Menaka Gandhi self-help group in 1995.Ramakka a very poor woman of marginalize social group, before joining Menaka Gandhi self-help group in 1995. Never gone school. Eating 2 square meals a day difficult.Never gone school. Eating 2 square meals a day difficult. Out of 5 children, 4 children died due to lack of care and poverty. Later her husband also died.Out of 5 children, 4 children died due to lack of care and poverty. Later her husband also died. After joining the self-help group, she was sanctioned Rs. 5000 for undertaking business, started selling of eggs.After joining the self-help group, she was sanctioned Rs. 5000 for undertaking business, started selling of eggs. Daily earning was Rs. 25. Repaid loan & got another dose of loan for sheep rearing. Process continued for 14 times.Daily earning was Rs. 25. Repaid loan & got another dose of loan for sheep rearing. Process continued for 14 times. Now she owns 5 acres of agricultural land and 1.5 acres of mango garden, which are looked after by her married son. Another case of ‘Zero to Hero’ Now she owns 5 acres of agricultural land and 1.5 acres of mango garden, which are looked after by her married son. Another case of ‘Zero to Hero’

24 4 cases from Nannoor village, Orvakal Mandal, Kurnool district, Andhra Pradesh where quality of life has been improved. NameBefore joining self-help group (1999) After joining self-help group (April 2009) Chi. ShajahaWidow with a daughter; Husband died of TB; No property; Illiterate; Beedi-making ( a type of local cigarette) ; House constructed; beedi making; Grocery shop; Rahamath BeeHusband blind; No house; No property; Grocery shop; Bangle selling; Sweet selling by Husband; Ch. NoorjahaWidow at 23 years age with two children; No property; Beedi making; Government sanctioned house; Husband Building Contractor ; Beedi making Pedda ShajahaNo land; Husband was working as mason; Self- beedi making; two children; Self- beedi making; Husband Building Contractor ;

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