Friday, October 17, 2008

Alleviation of Poverty



Alleviation of Poverty 

The recent renewal of interest globally in poverty alleviation can be attributed to two related factors, 1) Millennium Development goals [MDG] outlining a global agenda for reducing poverty by 2015, was the decision taken by the United Nations Millennium summit. Rich countries renewed their pledge to increase their development assistance to 0.7% of their GDP [Gross Domestic Product] so as to achieve the MDG target 2. Global growth has been stimulated and sustained public spending for poverty alleviation has received a new impetus in many countries

.Anti-poverty programmes will work only if they lead to sustainable livelihood and end dependence on doles. This requires stronger people’s institutions, appropriate technology, skill development, leveraging markets and adequate public investment. 

 Direct cash transfer is the buzzing word on the development circuit, putting together the current annual allocation for centrally sponsored schemes with food, fertilizer and fuel subsidies, rural housing. The issue is not primarily of directness or otherwise of transfer of cash. It is much more about the effective utilization of the cash which needs both developmental inputs like market technologies, skills, material and political ones. 

 As for the PDS [Public Distribution System], it is not clear how much cash transfer will allow the poor to buy grain from the open market at a time of steep inflation. Millions of rural Indians who have suffered unprecedented distress whether in the form of hunger or farmers suicide despite thousands of crores being spent in the name of rural development each year, due to the poor quality of  implementation of the programme. This persists, because unlike Indian corporate our rural poor do not have a voice in pushing for reforms that matter to them.

 We need to build strong system of transparency and accountability into anti-poverty programme. Funds, functions, functionaries are all important, but more than that a reformed accountable performing system. Only then the sustainable livelihood can be generated and an end visualized to both poverty and anti-poverty programs.