ESTIMATION OF RURAL ESTIMATION OF RURAL POVERTY: A DISCUSSION POVERTY: A DISCUSSION

WITH REFERENCE TO INDIAWITH REFERENCE TO INDIA

Dr. Shankar ChatterjeeAssistant 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)

Poverty in India Poverty in India • Planning Commission of India has defined Planning Commission of India has defined

poverty line based on recommended poverty line based on recommended nutritional requirements of nutritional requirements of 2400 2400 calories/person/ day for rural areascalories/person/ day for rural areas & & 2100 2100 calories/ person/day for urban areascalories/ person/day for urban areas..

• Based on this, income criterion has been Based on this, income criterion has been adopted in India to determine poverty line.adopted in India to determine poverty line. The latest income criterion is based on The latest income criterion is based on 2004-05 data. 2004-05 data.

• All India level minimum income for rural All India level minimum income for rural and urban areas for a person/ month should and urban areas for a person/ month should be Rs. 356.30 and Rs.538.60 respectively. be Rs. 356.30 and Rs.538.60 respectively.

• Time to time different income levels were Time to time different income levels were adopted for determining Below Poverty Line. adopted for determining Below Poverty Line.

Percentage of population below the poverty Percentage of population below the poverty line in Rural India for some states of Indialine in Rural India for some states of India

State 1973-74 1977-78 1983 1987-88 1993-94

Andhra Pradesh 48.44 38.11 26.53 20.92 15.92

Assam 52.67 59.82 42.60 39.35 45.01

Bihar 62.99 63.25 64.37 52.63 58.21

Gujarat 46.35 41.76 29.80 28.67 22.18

Haryana 34.23 27.73 20.56 16.22 28.02

Himachal Pradesh 27.42 33.49 17.00 16.28 30.34

Jammu & Kashmir 45.51 42.86 26.04 25.70 30.34

Karnataka 55.14 48.18 36.33 32.82 29.88

Percentage of population below the poverty Percentage of population below the poverty line in Rural India for some states of India line in Rural India for some states of India

(contd.)(contd.)

State 1973-74 1977-78 1983 1987-88 1993-94

Kerala 59.19 51.48 39.03 29.10 25.76

Madhya Pradesh 65.66 62.52 48.90 41.92 40.54

Maharashtra 57.71 63.97 45.23 40.78 37.93

Orissa 67.28 72.38 67.53 57.64 49.72

Punjab 28.21 16.37 13.20 12.60 11.95

Rajasthan 44.76 35.89 33.50 33.21 26.46

Tamil Nadu 57.43 57.68 53.99 45.80 32.48

Uttar Pradesh 56.53 47.60 46.45 41.10 42.28

West Bengal 73.10 68.34 63.05 48.30 40.80

All India 56.44 53.07 45.65 39.09 37.27

State-Specific Poverty Lines in 2004-05State-Specific Poverty Lines in 2004-05 (Rs. per (Rs. per

capita /month)capita /month)

State/Union Territories Rural Urban

Andhra Pradesh 292.95 542.89

Assam 387.64 378.84

Bihar 354.36 435.00

Chhattisgarh 322.41 560.00

Gujarat 353.93 541.16

Haryana 414.76 504.49

Jammu & Kashmir 391.26 553.77

Jharkhand 366.56 451.24

Karnataka 324.17 599.66

State-Specific Poverty Lines in 2004-05State-Specific Poverty Lines in 2004-05 (Rs. per capita /month) (Rs. per capita /month)

Contd. Contd.

State/Union Territories Rural Urban

Kerala 430.12 559.39

Madhya Pradesh 327.78 570.15

Maharashtra 362.25 665.90

Orissa 325.79 528.49

Punjab 410.38 466.16

Rajasthan 374.57 559.63

Tamil Nadu 351.86 547.42

Uttar Pradesh 365.84 483.26

Uttarakhand 478.02 637.67

West Bengal 382.82 449.32

All-India 356.30 538.60

Present Poverty Concept Present Poverty Concept in Indiain India

• For the first time, Uniform Recall Period (URP) and For the first time, Uniform Recall Period (URP) and Mixed Recall Period (MRP) concepts have been used Mixed Recall Period (MRP) concepts have been used in 2004-05 to determine BPL population in India.in 2004-05 to determine BPL population in India.

• URP consumption = Uniform Recall Period URP consumption = Uniform Recall Period consumption in which the consumer expenditure data consumption in which the consumer expenditure data for all the items are collected from 30-day recall for all the items are collected from 30-day recall period.period.

• MRP consumption = Mixed Recall Period MRP consumption = Mixed Recall Period consumption in which the consumer expenditure data consumption in which the consumer expenditure data for 5 non-food items, viz., clothing, footwear, durable for 5 non-food items, viz., clothing, footwear, durable goods, education and institutional medical expenses goods, education and institutional medical expenses are collected from 365-day recall period and the are collected from 365-day recall period and the consumption data for the remaining items are consumption data for the remaining items are collected from30-day recall period.collected from30-day recall period.

URP DATA FOR SOME Major States of URP DATA FOR SOME Major States of IndiaIndia

States/ Union Territories Rural

  (%) No. of Persons (Million)

Andhra Pradesh 11.2 6.47

Assam 22.3 5.45

Bihar 42.1 33.67

Chhattisgarh 40.8 7.15

Gujarat 19.1 6.34

Haryana 13.6 2.14

Jammu & Kashmir 4.6 0.36

Jharkhand 46.3 10.31

Karnataka 20.8 7.50

Kerala 13.2 3.24

States/ Union Territories

Rural% Number of Population

(Million)

Madhya Pradesh 36.9 17.56

Maharashtra 29.6 17.11

Orissa 46.8 15.17

Punjab 9.1 1.51

Rajasthan 18.7 8.73

Tamil Nadu 22.8 7.65

Uttar Pradesh 33.4 47.30

Uttarakhand 40.8 2.71

West Bengal 28.6 17.32

All-India 28.3 220.93

URP DATA FOR SOME Major States of India URP DATA FOR SOME Major States of India (Contd…(Contd…

MRP Data for Some Major States of MRP Data for Some Major States of IndiaIndia

States/Union Territories 

Rural

(%) No. of Persons (Million)

Andhra Pradesh 7.5 4.32

Assam 17.0 4.14

Bihar 32.9 26.29

Chhattisgarh 31.2 5.47

Gujarat 13.9 4.62

Haryana 9.2 1.45

Jammu & Kashmir 2.7 0.22

Jharkhand 40.2 8.97

Karnataka 12.0 4.33

Kerala 9.6 2.36

Madhya Pradesh 29.8 14.20

Maharashtra 22.2 12.84

MRP data for some states MRP data for some states (Contd..)(Contd..)

States/Union Territories

Rural

(%) No. of Persons (Million)

Orissa 39.8 12.93

Punjab 5.9 0.97

Rajasthan 14.3 6.67

Tamil Nadu 16.9 5.65

Uttar Pradesh 25.3 35.76

Uttarakhand 31.7 2.11

West Bengal 24.2 14.66All-India 21.8 170.30

Employment Generation Programmes in Employment Generation Programmes in Rural IndiaRural India

• Presently in rural India 2 employment Presently in rural India 2 employment programmes are in operation sponsored programmes are in operation sponsored by the Government of India. by the Government of India.

• One is self employment programme for rural One is self employment programme for rural below the poverty line population. Known as below the poverty line population. Known as Swarnajayanti Gram Swarojgar Yojana (SGSY).Swarnajayanti Gram Swarojgar Yojana (SGSY).

• Another is wage employment programme for Another is wage employment programme for rural households which have been implemented rural households which have been implemented under the Act passed in the Parliament in under the Act passed in the Parliament in September 2005. This is known as National September 2005. This is known as National Rural Employment Guarantee Act (NREGA) and Rural Employment Guarantee Act (NREGA) and as a programme known as National Rural as a programme known as National Rural Employment Guarantee Scheme (NREGS).Employment Guarantee Scheme (NREGS).

Salient Features about SGSYSalient Features about SGSY

• Launched in the country from 1Launched in the country from 1stst April 1999. April 1999.• Organizing poor into Self-help Groups (SHGs). Organizing poor into Self-help Groups (SHGs). • After skill development & training , Income After skill development & training , Income

Generating Activities are given through mix of Generating Activities are given through mix of Credit & Subsidy.Credit & Subsidy.

• Emphasis on vulnerable sections: Scheduled Emphasis on vulnerable sections: Scheduled Caste/ Scheduled Tribe (50%), Women(40%), Caste/ Scheduled Tribe (50%), Women(40%), Minorities (15%) & Physically Challenged (3%).Minorities (15%) & Physically Challenged (3%).

• About 3.2 million self-help groups formed since About 3.2 million self-help groups formed since from April 1999 to November 2008 . On an from April 1999 to November 2008 . On an average each self-help group consists of 10 average each self-help group consists of 10 members from 10 different families. Thus members from 10 different families. Thus roughly 32 million families pursuing economic roughly 32 million families pursuing economic activities. activities.

Salient Features about NREGSSalient Features about NREGS

• Under the Act passed in the Parliament in Under the Act passed in the Parliament in September 2005.September 2005.

Employment is provided to every rural household’s Employment is provided to every rural household’s adult member for 100 days in a financial year.adult member for 100 days in a financial year.

• Work be provided within 5 kilometers radius of the Work be provided within 5 kilometers radius of the village or extra wages of 10% payable. village or extra wages of 10% payable.

• Each employment seeker to be registered at local Each employment seeker to be registered at local self-government, after due verification and the self-government, after due verification and the household is provided a Job Card.household is provided a Job Card.

• Village level local self-government is the authority Village level local self-government is the authority for planning, registering, issuing job cards to the for planning, registering, issuing job cards to the beneficiaries, allocating employment and beneficiaries, allocating employment and monitoring of works.monitoring of works.

Participatory Identification of Poorest Participatory Identification of Poorest of the Poor (PIP) in Andhra Pradesh: A of the Poor (PIP) in Andhra Pradesh: A

Qualitative Approach Qualitative Approach • Participatory Identification of Poor is being Participatory Identification of Poor is being

implemented in all the implemented in all the Mandals of Mandals of Andhra PradeshAndhra Pradesh (Mandal is the development unit consists of 15 to 20 (Mandal is the development unit consists of 15 to 20 villages).villages).

• There are 1128 There are 1128 Mandals Mandals in Andhra Pradesh. in Andhra Pradesh.• Under ‘Participatory Identification of Poor’ some Under ‘Participatory Identification of Poor’ some

general indicators are decided at the district and general indicators are decided at the district and MandalMandal level. level.

• In rural areas agricultural land is an important issue, so In rural areas agricultural land is an important issue, so indicators regarding the definition of poorest of the poor indicators regarding the definition of poorest of the poor is decided first based on land holding followed by ‘Well is decided first based on land holding followed by ‘Well being’ of the families.being’ of the families.

• Village to village “Well Being” differs so based on Village to village “Well Being” differs so based on workshop held at District /workshop held at District /Mandal Mandal level, indicators are level, indicators are developed.developed.

PIPPIP

• After deciding of Indiacators training After deciding of Indiacators training imparted to imparted to MandalMandal Resource Persons Resource Persons (MRPs).(MRPs).

• Generally 8-12 MRPs for each Generally 8-12 MRPs for each MandalMandal are are given training. given training.

• The MRPs, after being trained begin the The MRPs, after being trained begin the programme of “identifying the poor programme of “identifying the poor through participatory method” which is through participatory method” which is later on approved by the elected later on approved by the elected representatives of the village.representatives of the village.

PIP: First DayPIP: First Day First DayFirst Day• Rapport building with the villagers Rapport building with the villagers • Organizing an Informal MeetingOrganizing an Informal Meeting

Followed by Followed by Organizing a Community Meeting. Organizing a Community Meeting. • Coming to an agreement with the villagers regarding Coming to an agreement with the villagers regarding

the place and time for the Social Map and then the place and time for the Social Map and then Preparing materials required for the Social Map 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 Map Making the villagers draw the Social Map

• Gathering the information and identifying it in the Gathering the information and identifying it in the

Social MapSocial Map• Sharing the information gathered with the villagersSharing the information gathered with the villagers• Preparing the report (drawing the Social Map on a Preparing the report (drawing the Social Map on a

chart, documentation of the discussions, method and chart, documentation of the discussions, method and other details of things observed)other details of things observed)

PIP: Second DayPIP: Second Day

Second DaySecond Day• Categorization according to the well being Categorization according to the well being

conditionsconditions• Discussion held about the living condition Discussion held about the living condition

of the villageof the village• Explaining of the present exercise Explaining of the present exercise

• Discussion regarding the well being Discussion regarding the well being

conditions of the villagersconditions of the villagers• ClassifyingClassifying of the poor of the poor• Category wise identification of the families Category wise identification of the families

on the Social Mapon the Social Map• DocumentationDocumentation

PIP: Third DayPIP: Third Day

• Third DayThird Day• Organize Organize Gram Sabha (village Gram Sabha (village

assembly)assembly) and get the ratification. and get the ratification.

• Incorporation of corrections and Incorporation of corrections and getting the ratification of the getting the ratification of the Gram Gram Panchayat (Village level Local Panchayat (Village level Local self-self-Government)Government)

• Giving thanks to persons present in Giving thanks to persons present in the meeting. the meeting.

A case from A case from Balijaguda Balijaguda village, village, Hayatnagar MandalHayatnagar Mandal of of Ranga ReddyRanga Reddy

district , Andhra Pradeshdistrict , Andhra Pradesh • Study carried out in January, 2003 under the Study carried out in January, 2003 under the guidance of Society for Elimination of Rural Poverty guidance of Society for Elimination of Rural Poverty (SERP). Entire process was carried out by the (SERP). Entire process was carried out by the villagers. 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

2 cases from 2 cases from KalvaKalva village, village,Orvakal Orvakal MandalMandal, , KurnoolKurnool district, Andhra district, Andhra PradeshPradesh

Case-1 Case-1 Mohammad BeeMohammad Bee • Mohammad Bee illiterate, a very poor woman up Mohammad Bee illiterate, a very poor woman up

to 1994. Married at 13 years & mother at 18 to 1994. Married at 13 years & mother at 18 years. years.

• Husband was daily labourerHusband was daily labourer• As assets, a hut, a small cot , 4 cooking items & As assets, a hut, a small cot , 4 cooking items &

2 2 saris (Indian women wear) saris (Indian women wear) • Joined with her husband for working as laborer to Joined with her husband for working as laborer to

get 2 square meals a dayget 2 square meals a day • Blessed with 3 male children. Admitted in Blessed with 3 male children. Admitted in

school not for education but for 2 pairs of dresses school not for education but for 2 pairs of dresses which were provided at free of cost. Moment which were provided at free of cost. Moment dresses were provided, children were withdrawn dresses were provided, children were withdrawn from the school and asked to earn. from the school and asked to earn.

Case of Mohammad Bee (Contd.)Case of Mohammad Bee (Contd.)• ChandChand self-help group formed in the village self-help group formed in the village in in

1995. Bee joined. 1995. Bee joined. Identified poorest of the poor & Identified poorest of the poor & got loan within 6 months. Loan amount was Rs. got loan within 6 months. Loan amount was Rs. 1000 @2% rate of interest/month earned Rs 5000.1000 @2% rate of interest/month earned Rs 5000.

• After repaying of loan, took another loan; process After repaying of loan, took another loan; process continued for 24 times ;borrowing & repaying. continued for 24 times ;borrowing & repaying.

• Repaid Rs. 0.6 million amount of loan taken time Repaid Rs. 0.6 million amount of loan taken time to time and taken fresh loan of Rs. 0.4 million, to time and taken fresh loan of Rs. 0.4 million, repaying regularly. Now having a concrete house repaying regularly. Now having a concrete house & 11 acres of agricultural land including 6.5 acres & 11 acres of agricultural land including 6.5 acres of mango garden. of mango garden.

• Husband no longer working as a labourer. Husband no longer working as a labourer. • Mohammad Bee attends self-help group meetings, Mohammad Bee attends self-help group meetings,

watches television and no village functions are watches television and no village functions are held without her. A case of “Zero to Hero”held without her. A case of “Zero to Hero”

Case 2: RamakkaCase 2: Ramakka

• Ramakka a very poor woman of marginalize social Ramakka a very poor woman of marginalize social group, before joining Menaka Gandhi self-help group, before joining Menaka Gandhi self-help group in 1995.group in 1995.

• Never gone school. Eating 2 square meals a day Never gone school. Eating 2 square meals a day difficult. difficult.

• Out of 5 children, 4 children died due to lack of Out of 5 children, 4 children died due to lack of care and poverty. Later her husband also died. care and poverty. Later her husband also died.

• After joining the self-help group, she was After joining the self-help group, she was sanctioned Rs. 5000 for undertaking business, sanctioned Rs. 5000 for undertaking business, started selling of eggs.started selling of eggs.

• Daily earning was Rs. 25. Repaid loan & got Daily earning was Rs. 25. Repaid loan & got another dose of loan for sheep rearing. Process another dose of loan for sheep rearing. Process continued for 14 times.continued for 14 times.

• Now she owns 5 acres of agricultural land and Now she owns 5 acres of agricultural land and 1.5 acres of mango garden, which are looked 1.5 acres of mango garden, which are looked after by her married son.after by her married son. Another case of ‘Zero to Another case of ‘Zero to Hero’Hero’

4 cases from 4 cases from NannoorNannoor village, village, Orvakal MandalOrvakal Mandal, , KurnoolKurnool district, Andhra Pradesh where quality of life has been district, Andhra Pradesh where quality of life has been

improved. improved. Name Before joining self-help

group (1999)After joining self-help group(April 2009)

Chi. Shajaha Widow with a daughter; Husband died of TB; No property; Illiterate; Beedi-making ( a type of local cigarette) ;

House constructed; beedi making; Grocery shop;

Rahamath Bee Husband blind; No house; No property;

Grocery shop; Bangle selling; Sweet selling by Husband;

Ch. Noorjaha Widow at 23 years age with two children; No property; Beedi making; Government sanctioned house;

Husband Building Contractor ; Beedi making

Pedda Shajaha No land; Husband was working as mason; Self- beedi making; two children;

Self- beedi making; Husband Building Contractor ;