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Do Anti-poverty Programmes Reach the Rural Poor in India?

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  • Raghav Gaiha

Abstract

This paper argues for a shift of emphasis from larger outlays on two major anti-poverty schemes - the rural public works (RPW) and integrated rural development (IRDP) programmes - to improvements in their design and implementation. Enhanced outlays do not matter much, as they tend to be mistargeted. More specifically, based on National Sample Survey data for 1987-88, neither RPW nor IRDP covered a large segment of the rural poor, while among their beneficiaries the shares of the (relatively) well-off were not negligible. However, the RPW was more effective in excluding the non-poor rather than attracting the poor. There has been a progressive weakening of targeting in both schemes as leakages to the non-poor rose. More of the poor are likely to benefit from RPW if the wage rate is lowered (relative to the agricultural wage), if a combination of piece and time rates is used and if wages in kind are discontinued. On the other hand, in the context of IRDP, there is a need to eliminate the interest subsidy, place greater emphasis on the reduction of transaction costs and to vest rights of land in women. Given the key role of the Village Panchayat in poverty alleviation, it is imperative that it is accountable to the village community. But above all, benefits to the poor from anti-poverty programmes depend ultimately on whether they have the collective strength to affirm their interests.

Suggested Citation

  • Raghav Gaiha, 2000. "Do Anti-poverty Programmes Reach the Rural Poor in India?," Oxford Development Studies, Taylor & Francis Journals, vol. 28(1), pages 71-95.
    • Handle: RePEc:taf:oxdevs:v:28:y:2000:i:1:p:71-95
    DOI: 10.1080/713688307
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    References listed on IDEAS

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    1. Parikh, K. & Srinivasan, T.N., 1989. "Poverty Alleviation Policies In India: Food Consumption Subsidy, Food Production Subsidy And Employment Generation," Papers 591, Yale - Economic Growth Center.
    2. Bina Agarwal, 1997. "''Bargaining'' and Gender Relations: Within and Beyond the Household," Feminist Economics, Taylor & Francis Journals, vol. 3(1), pages 1-51.
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    1. Raghav Gaiha & Katsushi Imai, 2002. "Rural Public Works and Poverty Alleviation--the case of the employment guarantee scheme in Maharashtra," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(2), pages 131-151.
    2. Klonner, Stefan & Oldiges , Christian, 2014. "Safety Net for India's Poor or Waste of Public Funds? Poverty and Welfare in the Wake of the World's Largest Job Guarantee Program," Working Papers 0564, University of Heidelberg, Department of Economics.
    3. Jha, Raghbendra & Bhattacharyya, Sambit & Gaiha, Raghav & Shankar, Shylashri, 2009. ""Capture" of anti-poverty programs: An analysis of the National Rural Employment Guarantee Program in India," Journal of Asian Economics, Elsevier, vol. 20(4), pages 456-464, September.
    4. Raghav Gaiha & Ganesh Thapa & Katsushi Imai & Vani S. Kulkarni, 2007. "Endowments, discrimination and deprivation among ethnic groups," Economics Discussion Paper Series 0722, Economics, The University of Manchester.
    5. Raghbendra Jha, 2001. "The Challenge of Fiscal Reform in India," ASARC Working Papers 2001-11, The Australian National University, Australia South Asia Research Centre.
    6. Kailash Chandra Pradhan & Shrabani Mukherjee, 2018. "Covariate and Idiosyncratic Shocks and Coping Strategies for Poor and Non-poor Rural Households in India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(1), pages 101-127, March.
    7. Raghav Gaiha & Katsushi Imai, 2004. "Vulnerability, shocks and persistence of poverty: estimates for semi-arid rural South India," Oxford Development Studies, Taylor & Francis Journals, vol. 32(2), pages 261-281.
    8. Raghav Gaiha & Vani S. Kulkarni & Manoj K. Pandey & Katsushi S. Imai, 2009. "National Rural Employment Guarantee Scheme, Poverty and Prices in Rural India," ASARC Working Papers 2009-03, The Australian National University, Australia South Asia Research Centre.
    9. Raghav Gaiha, 2004. "Is There a Case for the Employment Guarantee Scheme in India? Some Recent Evidence," ASARC Working Papers 2004-09, The Australian National University, Australia South Asia Research Centre.

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