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POVERTY REDUCTION STRATEGY TN

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Chapter 7<br />

SUMMARY AND FORMULATION OF <strong>POVERTY</strong> <strong>REDUCTION</strong> STRATEGIES<br />

This chapter has three parts. The first part provides a summary of the findings of the<br />

earlier chapters. In the light of these findings, the second part highlights the main<br />

challenges and considerations in designing the overall MDGs-based poverty reduction<br />

strategy for Tamil Nadu. The third part, details the poverty reduction strategy (PRS) for<br />

Tamil Nadu both for the state and the district level. The PRS is in three parts: state level<br />

PRS for rural areas (SPRS-R), district level PRS (DPRS-R) for rural areas, and poverty<br />

reduction strategy for urban areas (UPRS).<br />

7.1 Summary of Findings<br />

a. Trends in Poverty Reduction<br />

Trends in poverty reduction in Tamil Nadu over time and in comparison to other states<br />

are summarised as follows:<br />

1. Reduction in rural poverty in Tamil Nadu accelerated after 1983. During the<br />

period from 1983 to 2004-05, rural poverty head count ratio in Tamil Nadu fell by<br />

nearly 30 percentage points whereas the corresponding reduction in the all-India<br />

rural head count ratio was only 17 percentage points.<br />

2. Reduction in urban poverty in Tamil Nadu picked up sharply after 1993-94 but<br />

the fall in the head count ratio during 1993-94 to 2004-05 was much less in<br />

Tamil Nadu compared to the corresponding reduction in the all-India poverty<br />

urban head count ratio.<br />

3. Tamil Nadu has done comparatively better than most other states in reducing the<br />

combined poverty. The overall head count ratio at 22.5 in 2004-05 is nearly 5<br />

percentage points below the all-India figure at 27.5. At the same time, in 2004-<br />

05 several states in India including two southern states viz., Andhra Pradesh and<br />

Kerala had a considerably lower overall poverty head count ratio.<br />

4. The absolute number of urban poor in Tamil Nadu is more in 2004-05 as<br />

compared to 1973-74. There is a discernable trend toward urbanisation of<br />

poverty, measured by the percentage urban poor to total poor, which has<br />

increased over time. In 1973-74 nearly 30 percent of total poor in Tami Nadu<br />

were urban poor. In 2004-05, nearly 47.5 percent of total poor are urban poor in<br />

Tamil Nadu.<br />

5. Despite the progress achieved in reducing income poverty, hunger<br />

poverty/calorie deficiency remains a major problem in Tamil Nadu.<br />

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