QUESTION NO 19

QUESTION :: POVERTY REDUCTION STRATEGY ? COMMENT

POVERTY REDUCTION

In order to be able to understand poverty reduction, first have to understand what poverty really is.

INTRODUCTION

While defining poverty, usually two approaches can be followed:

1. One that sees poverty as an umbrella term-At the UN’s World Summit on Social Development, the ‘Copenhagen

Declaration’ described poverty as “…a condition characterized by severe deprivation of basic human needs, including

food, safe drinking water, sanitation facilities, health, shelter, education and information.”

2. One that sees poverty in terms of the amount of income people have access to.

Further one must mention that how poverty is calculated at the world level and in India:

a. The common international poverty line has declared roughly few years back $1 a day . In 2008, the World Bank

came out with a revised figure of $1.25 at 2005 purchasing-power parity (PPP).

B. In India we use of Below poverty line to make an estimate of the whole poverty. The Planning Commission of

India has accepted the Tendulkar Committee report which says that 37% of people in India live below the poverty

line.

Below Poverty Line is an economic benchmark and poverty threshold used by the government of India to indicate

economic disadvantage and to identify individuals and households in need of government assistance and aid. It is

determined using various parameters which vary from state to state and within states. ( Reference from the

internet)

HOW IS IT CAUSED?

Many reasons but broadly classify them into 4

· poor health

· poor education

· poor financial inclusion

· poor international efforts

HOW TO REDUCE IT?

HEALTH :is a major factor. On account of poor health, the earning head of poor families are unable to work and fend

for the family. similarly children are susceptible to various diseases and consequently can't get regular

education. In many countries of the world many more diseases are found which are the utmost reason for poverty

for example:- malaria : it kills million people a year and takes a huge toll on economic productivity and forcing

families into poverty.

The same thing happens with other diseases and ailments-from tuberculosis to hunger.

When it comes to HIV/AIDS , 95% cases are from developing world.

There is no doubt that health and poverty are inextricably linked; and both have an affect on each other.

I am mentioning few program s carried out by the government to check diseases in India here. Another very

interesting point is the newly launched Janani Suraksha Yojana to better maternal and infant's health.

Also insert that the government in India is running various PDS outlets and schemes to provide food at very low

prices to the poor people. Eg- Antyodya Yojana.

IMPROVING education:

Is very important because this will empower poor people to seek better employment opportunities.

Government's efforts like sarva siksha abhiyaan, opening navodyas etc. are commendable.

Also education has a strong gender bias in poor sections of society so schemes like giving prefernce to girl child

(eg- Haryana ) is very important.

IMPROVING FINANCIAL INCLUSION:

The poor often lack any sort of access to the financial system in the country. A host of measures are being adopted

for removing this. Introduction of micro credit and microfinance is very important. An amazing success story is the

launching of Grameen Bank in Bangladesh which has worked wonders.

IMPROVING government's efforts:

Lots is desirable in this regard. right from making sure that the money reaches to the most poor to weeding out

corruption to revising the limited definition of poverty to innovating new schemes and implementing old ones with

better finesse, lots can be done.

INTERNATIONAL efforts:

Official development assistance(some part of the money lent to poor countries by developed countries is given as

grant), debt relief(cancelling altogether the whole debt) and efforts of the IMF and WB are important in this case.

All these efforts must main at removing and meeting the targets pledged to the poor countries.

ROLE OF NGO'S:

The various non governmental organizations and even individuals for that matter can contribute for reducing

poverty. Eg- Bill Gates and Melinda Gates

Role of Anna hazare in uplifting his village Ralegan Sidhi in this regard.

Miscellaneous: on a very personal level you Can talk about trying to check the growing tide of consumerism among

the people today. Aim should be to motivate them to save and invest so that economy booms and more money is

generated .Because of higher consumerism the rich is getting richer and the poor is becoming poorer .

Conclusion:

A number of program’s and ways are already existing to reduce poverty. All that needs to be done is to think of

ways to make them more effective and evolve better plans simultaneously. Indirect measures such as coming up with

concept of Aadhar cards, a good lokpal etc. which will make these schemes more effective is the need of the hour.

SUBMITTED TO

Respected gurdeepak singh sir

submitted by

Gagandeep

MBA - a sec