Essay on eradication of poverty from india

The Fight Hunger First initiative was taken up by the government in to improve access of communities to the rights and entitlements accrued to them by the government schemes like employment, child nutrition, primary education and food supplies. This initiative focused on 5 of the most backward states of India i. FHFI seeks to support community and grass-root organizations in activating the Indian authorities to provide minimum social support in the sectors mentioned above.

The Food Security Bill was tabled in the Parliament in and became an act on 12 September making it one of the largest food security schemes across the world. Under the provisions of this law, beneficiaries would get five kg of grains per person per month, including rice at Rs. The bill proposes meal entitlement to specific groups, including pregnant women and lactating mothers, children between six months and 14 years, malnourished kids, people affected by disaster, and those who are destitute, homeless and starving.

This might hinder the progress of food security in the regions. This scheme was launched by the Cabinet in March to provide skill training to 1. It focuses on helping entrants into the labour market catering to X and XII dropouts. Previously in , such steps were seen in Telangana and some other states.

The Union Minister said that those who earn less than Rs 8 lakh a year and have less than 5 acres land ownership will be eligible to avail the quota. Global Programmes Impacting Against Poverty in India Many initiatives are being taken up at the global front as well to help solve the problem of hunger and poverty.


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Some of these are:. This is a global initiative started by World Food Programme WFP that ensues global partnership and aims at reducing the causes and effects of child hunger and undernutrition. It aims to mobilise resources for actions on national levels to build awareness and address the issue on a global scale.

This shows that the need of the hour is focusing on the poverty and its most drastic side effect of hunger. Most countries lack data on poverty and especially child poverty and thus it makes it difficult to make projections for the future.

Poverty in India - Facts, Causes and Effects | My India

After the Global Food Security Act on , the US Government, in partnership with other governments, universities, research institutes, civil societies and private sector built this strategy to focus on challenges like poverty and hunger. Mercy Corps worked closely with private sector partners, other NGOs, academic and research institutions, the faith community and Members of Congress to help pass H.

Skip to main content. However, recent schemes in the past decade to alleviate poverty include: National Rural Livelihood Mission: Ajeevika - This scheme was launched in by the Ministry of Rural Development. Food Security Bill - The Food Security Bill was tabled in the Parliament in and became an act on 12 September making it one of the largest food security schemes across the world. US Government Global Food Security Strategy - After the Global Food Security Act on , the US Government, in partnership with other governments, universities, research institutes, civil societies and private sector built this strategy to focus on challenges like poverty and hunger.

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India's Progress Toward Achieving the Millennium Development Goals

Crypto Currency: A bright future or just a fad? Dr Chelliah made a salient contribution to every major aspect of Indian Public Finance. One important area was the working of fiscal federalism in India. This was meant to provide better incentives to the states for improving their tax effort and managing their expenditures better without apprehending that they will be penalised for better fiscal management which may actually reduce their resource gaps.

Another significant contribution in the field of fiscal transfers, which had roots in Dr Chelliah's thinking, was the replacement of the old tax-by-tax approach of tax-sharing to global sharing of all central taxes with the states. This idea finally led to the recommendation of the Tenth Finance Commission regarding an alternative scheme of devolution, which was finally [Page xxiii] accepted, as a result of which we have moved to a system where all central taxes are shared with the state governments.

This was brought about by the 80th Amendment to the Constitution May , but effective from —97 , which provided that the net proceeds of all union taxes and duties except central sales tax and consignment tax, surcharges on central taxes and duties and earmarked cesses, are distributable between the centre and the states. As enunciated by the Tenth Finance Commission, this change facilitated tax reforms among other benefits.

In two other areas of public finance, namely, the structure of government expenditure and management of public debt, again Dr Chelliah made salient contributions.

Poverty Essay

People talked about deficit financing and considered borrowing as if it was a resource and only that portion of expenditure that could not be financed by budgeted tax and non-tax revenues, or borrowing was a problem as it implied borrowing from the central bank. Dr Chelliah began to emphasise that excessive borrowing whether from domestic or external sources or from the central bank has serious implications for sustainability of debt and the burden of interest payments would either lead to additional borrowing or will alter the structure of expenditure.

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It was only in the early part of the current decade that the concern with fiscal deficit led to the enactment of fiscal responsibility and budget management legislations by the central and most of the state governments. While at NIPFP, Dr Chelliah wrote one of his last papers on the subject of expenditure, arguing for a reorientation of expenditure towards health and education 5 —a theme which was later picked by a number of experts.

One critical aspect of the human condition relates to the environment he lives in. Fiscal policies have a crucial role in the management of environment through incentive-based responses that can be generated through taxation of polluting goods. This was a subject that Dr Chelliah particularly focused on when he had moved to Chennai and he started working with Professor U. Sankar, an eminent econometrician and expert in trade and environment issues, and other colleagues.

Pollution has serious implications for sustainability of growth, but an important consideration was its asymmetric effects on the poor who are the most exposed to pollution and have the least capacity to cope with the health hazards that result from it. Dr Chelliah had become more reflective, more reminiscent in the later years at MSE.


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Irrationality of the tax system or the deficiencies in the management of government finances was only a reflection of a more widespread malaise of the society. The society at large needed to be reformed. One of Dr Chelliah's lifelong concerns was the eradication of India's poverty.

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Every policy reform that he was contemplating had to be finally considered in his mind in terms of its impact on India's poverty. Among various eminent economists of the time grappling with this issue, two features of Dr Chelliah's approach to the subject made his thinking quite distinctive and appealing.

One, he thought about poverty always in terms of a spatial dimension. Second, he was [Page xxv] willing to trade-off a little of growth to make a major impact on poverty reduction. It was from the mids that his concern became far more focused on poverty eradication. Probably it was the realisation that while the growth rate had picked up by the mids and was averaging above 7 per cent per annum p.

He also saw that while the southern and western states were doing well, participating better in the growth process and had more effective policies put in place for education, it was the central, northern and eastern regions that were missing out both in growth performance and poverty reduction. Directing investment in these regions may involve sacrificing a little of efficiency and aggregate growth of the Indian economy, but unless the sprawling regions of Uttar Pradesh, Madhya Pradesh, Bihar and Orissa were brought on board, the impact of growth on poverty was going to be always limited.

His first published work on poverty was a volume co-edited with Dr R.

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Sudarshan under the title of Income Poverty and Beyond. During many one-to-one sessions of discussions with Dr Chelliah, he elaborated, while writing his latest essay on poverty eradication that is the main essay of the present volume, exactly what was needed to usher India to the status of a modern economy. Among various words used in the literature on poverty like poverty amelioration or poverty reduction, Dr Chelliah preferred the strongest word, that is eradication of poverty altogether. It also therefore becomes the most demanding task. To achieve this end, Dr Chelliah used to speak of four pillars of modernisation of India.

Dr Chelliah considered India's continuing poverty as a policy failure that was organically linked to the working of the democracy where, for short-term populism, policies that were necessary but benefitted only after a period were being ignored. Politicians remained focused on short-term gains and indulge in [Page xxvi] competitive populism. This, he argued, led to preference by the leaders for policies which, with a focus on short-term benefits, could not lead to eradication of poverty that required a long-term strategy and perspective. The major proposition that Dr Chelliah puts forward is that for the right policies to emerge from the political process, the electorate has to undergo a process of modernisation.

This modernisation was particularly needed in the regions of the low growth states LGS. In the advanced states, in his view, a degree of social and political transformation of the electorate has already taken place. There are four modernisations that Dr Chelliah speaks of.


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The first is the achievement of universal education which lays the foundation for building up an enlightened electorate and for raising a qualified workforce. The second modernisation relates to the development of a scientific outlook, which leads an individual to seek to understand natural events in the universe on the basis of reasoning, observations and propositions verifiable through experiments. Such an outlook will get rid of superstitious and unverified beliefs and enable a society to achieve technical progress leading to manifold rise in productivity.

The third modernisation relates to political transformation involving the realisation that human relations should be governed by laws passed by a just government and based on ethical principles upholding the equality of all individuals, individual freedom within the bounds of law and a socially accepted need for protecting the weak and the helpless.

The fourth aspect of modernisation relates to ethical transformation or the evolution of a social conscience. In Dr Chelliah's view, it is only when the society evolves, income grows, knowledge spreads, the masses and women acquire strength and a realisation grows that civilised behaviour includes socially beneficial conduct and adherence to the principles of justice and equality. Being himself a teacher for long years in his career, Dr Chelliah had wanted to set up a teaching and research institution.

He recognised that regular departments of economics in the universities had fallen way behind the pace with which developments were taking place in economics. They were also short of research funds and adequate facilities for processing data and information. Universities in the South were also no exception to this trend. Dr Chelliah began to actively think about setting an institution that could excel in both teaching and research and he wanted it to be established in the South so that a major gap could be filled up.

As always, he meticulously thought about it consulting economists, academicians and industrialists. He had also consulted Dr Manmohan Singh who must have encouraged him.

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The Government of India gave a capital grant of Rs 3 crore as seed money and the Government of Tamil Nadu gave about three acres of land. This combination facilitated the setting up of Madras School of Economics in Chennai, which was established as a registered society for the cause of furtherance of education in India focused on economics. Krishna and Dr Kaushik Basu.

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