UPSC MainsECONOMICS-PAPER-II202220 Marks
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Q19.

Critically examine the various poverty alleviation programmes in India since 1970's.

How to Approach

This question requires a critical assessment of India’s poverty alleviation programs since the 1970s. The answer should chronologically examine major programs, analyzing their objectives, implementation strategies, successes, failures, and reasons for those outcomes. A critical perspective necessitates evaluating the programs' impact on poverty reduction, inclusivity, and sustainability. Structure the answer by categorizing programs into phases (e.g., pre-liberalization, post-liberalization), and then analyzing each phase's key initiatives. Include data and examples to support your arguments.

Model Answer

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Introduction

Poverty, a multifaceted deprivation, remains a significant challenge in India despite substantial economic growth. Since the 1970s, India has implemented a series of poverty alleviation programs, reflecting evolving understandings of poverty and development strategies. These programs, ranging from direct income transfers to employment generation schemes and asset creation, aim to address the root causes of poverty and improve the living standards of vulnerable populations. However, the effectiveness of these programs has been a subject of ongoing debate, with concerns regarding leakages, targeting errors, and limited impact on sustainable livelihoods. This answer will critically examine these programs, evaluating their successes, failures, and the underlying reasons for their varying outcomes.

Phase 1: Pre-Liberalization Era (1970s – 1990)

This phase was characterized by a focus on state-led development and centrally planned programs. The dominant ideology emphasized trickle-down economics and direct intervention.

  • Integrated Rural Development Programme (IRDP) (1978): Aimed at providing self-employment opportunities to rural poor through subsidies and training. Criticized for poor implementation, corruption, and lack of monitoring.
  • National Rural Employment Programme (NREP) (1980): Provided wage employment to rural poor, focusing on asset creation. Suffered from low wage rates and limited employment opportunities.
  • Prime Minister’s Rozgar Yojana (PMRY) (1993): Focused on providing self-employment opportunities to educated unemployed youth in urban areas. Faced challenges related to loan recovery and entrepreneurial skills.
  • Mid-Day Meal Scheme (1995): Initially launched in schools to improve enrollment and nutritional levels among children.

Phase 2: Post-Liberalization Era (1990s – 2000s)

This phase witnessed a shift towards market-oriented reforms and a greater emphasis on decentralization and participatory approaches.

  • Employment Assurance Scheme (EAS) (1999): An extension of NREP, providing wage employment in rural areas during lean seasons.
  • Swarnjayanti Gram Swarozgar Yojana (SGSY) (1999): Replaced IRDP, focusing on self-help groups (SHGs) and providing financial assistance to rural poor. SHGs proved more effective in empowering women and improving repayment rates.
  • National Food for Work Programme (NFWP) (2002): Provided food grains in exchange for manual labor, targeting food insecurity and creating rural assets.

Phase 3: Recent Programs (2000s – Present)

This phase is marked by large-scale, rights-based programs and a focus on inclusive growth.

  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) (2005): A landmark legislation guaranteeing 100 days of wage employment to rural households. Considered a significant success in providing employment and increasing rural wages, but faces challenges related to implementation, corruption, and asset quality. (Statistic: As of 2023-24, MGNREGA provided employment to 5.48 crore households – Source: Ministry of Rural Development)
  • National Rural Livelihood Mission (NRLM) – Aajeevika (2011): Aims to eliminate rural poverty through self-help groups and skill development.
  • Pradhan Mantri Jan Dhan Yojana (PMJDY) (2014): Focused on financial inclusion, providing access to banking services to the unbanked population.
  • Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) (2019): Provides income support to small and marginal farmers.

Critical Evaluation & Challenges

Despite the proliferation of poverty alleviation programs, poverty reduction has been uneven. Several factors contribute to this:

  • Targeting Errors: Identifying the truly deserving beneficiaries remains a major challenge.
  • Leakages and Corruption: Funds often diverted due to corruption and inefficient administration.
  • Lack of Convergence: Programs often operate in silos, hindering their synergistic impact.
  • Limited Focus on Skill Development: Many programs lack adequate skill development components, limiting long-term employment prospects.
  • Regional Disparities: Poverty levels vary significantly across states, requiring tailored interventions.
  • Inflation: Rising inflation erodes the real value of benefits provided by these programs.
Program Key Features Successes Failures
MGNREGA Guaranteed wage employment Increased rural wages, employment generation, asset creation Corruption, implementation delays, asset quality
SGSY/NRLM Self-help groups, microfinance Empowerment of women, improved repayment rates Limited reach, dependence on NGOs
IRDP Subsidized self-employment Initial attempt at rural development Poor implementation, corruption, lack of monitoring

Conclusion

India’s journey towards poverty alleviation has been marked by a series of evolving programs, each with its own strengths and weaknesses. While programs like MGNREGA have demonstrated significant impact, persistent challenges related to targeting, implementation, and convergence continue to hinder progress. A more holistic approach, focusing on skill development, infrastructure creation, and addressing regional disparities, is crucial for achieving sustainable and inclusive poverty reduction. Future programs should prioritize strengthening monitoring mechanisms, promoting transparency, and fostering greater participation from local communities.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Poverty Line
The poverty line is the minimum level of income deemed adequate to sustain a basic standard of living in a particular country. In India, it is defined based on consumption expenditure and is determined by the National Sample Survey Office (NSSO).
Trickle-Down Economics
The theory that benefits for the wealthy will eventually trickle down to everyone else in society, stimulating economic growth and improving living standards for all.

Key Statistics

According to the World Bank, India’s poverty rate (percentage of population living below the international poverty line of $2.15 per day) was 10.2% in 2019.

Source: World Bank, 2022

As per the Multidimensional Poverty Index (MPI) 2023, India lifted 13.5 crore people out of poverty between 2015-16 and 2019-21.

Source: NITI Aayog, 2023

Examples

Kerala’s Success Story

Kerala has achieved significant progress in poverty reduction through investments in education, healthcare, and land reforms. Its focus on human development indicators has contributed to a lower poverty rate compared to other Indian states.

Frequently Asked Questions

Why have poverty alleviation programs often failed to achieve their desired outcomes?

Several factors contribute to the failure of these programs, including corruption, leakages, poor targeting, lack of convergence, and inadequate monitoring and evaluation mechanisms. Additionally, structural issues like landlessness and social inequalities exacerbate poverty.

Topics Covered

EconomySocial IssuesPovertySocial WelfareEconomic Development