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POVERTY REDUCTION STRATEGY TN

ural areas, rely heavily

ural areas, rely heavily on natural resources - land, and water and agriculture for their livelihood. Therefore, meeting MDGs will depend in large part as to how the State manages its scare water resources and how it develops effective water governance and improved water supply services. Managing and developing water resources, in the context of its heavy demand from agriculture as well as industry and providing drinking water of acceptable quality and adequate quantity are of critical importance for an MDGsbased strategy of poverty reduction in Tamil Nadu. Last Mile Reach Strategies Last mile reach strategies are aimed at catering to those poor who are unable to take full advantage of the general growth processes and fiscal interventions. In order to ensure that they reach minimum acceptable levels of the MDGs, we need specialised programmes, identify the targeted sections of population, allocate suitable funds, and administer the programmes. While there are many central, centrally sponsored, and state schemes for poverty alleviation, health, education, and gender related concerns, there are issues about inefficient fund allocation, overlapping and multiplicity of schemes, bypassing of states, and implementation inefficiencies. In this study a four-tier targeting strategy leading to identification of deficient districts, blocks/urban agglomerations, villages/zones/slums, and finally households/individuals is suggested. It is highlighted that there are considerable efficiency gains by changing the strategy of allocation of funds, which should depend on (a) the share of targeted beneficiary population in the concerned area or segment, and (b) the extent of relative deficiency. Allocations should be with reference to specific goals relating to income deficiency, health, education and gender, rather than on the basis of aggregate and weighted indices. For improving implementation and allocation efficiency, extensive use of information and communication technologies should be made. MDGs-based Poverty Reduction Strategy (PRS) With these considerations in mind, a MDGs-based poverty reduction strategy is spelt out consisting of six steps abbreviated as MASTER. This is detailed below. a. Macro Drivers: Managing macro drivers, particularly growth, and improving its ‘inclusiveness’ by increasing the connectivity of the poor to the growth processes. b. Augmenting Fiscal Space to increase primary expenditures relative to GSDP. c. Structuring government expenditure towards MDGs (increasing the share xii

of expenditure on public goods like law and security and merit goods like health and education, and capital outlay for infrastructure and away from excessively subsidized private goods). d. Targeting of programmes towards specific areas and sections of poor; a four-tier targeting strategy with special focus on urban areas will be effective in Tamil Nadu. e. Efficiency enhancement by exploring scope for design, allocation, and implementation efficiencies. f. Reforming Poverty Reduction Programmes: reforming state schemes and taking maximum advantage of central and centrally sponsored schemes, and developing specialized programmes for the urban poor. This scheme is developed for state level poverty reduction in rural areas (SPRS), district level poverty reduction in rural areas (DPRS-R) and urban poverty reduction at the state and district level (UPRS). A: State Level Poverty Reduction Strategy (SPRS):Overall and Rural Areas M: It is desirable for Tamil Nadu to aim at a growth rate that is at least 0.5 to 1.0 percentage points higher than the National Gross Domestic Product (GDP) growth rate on a sustained basis. If the real GDP growth rate is likely to average at about 9 percent (leaving out the current slowdown phase), the Tamil Nadu GSDP should aim at 9.5 to 10.0 percent per annum in the medium term. Given Tamil Nadu’s relatively lower growth of population, this could translate into growth in per capita incomes of about 1.5 to 2.5 percentages above the average for India. A: It is possible that additional fiscal space for undertaking higher primary expenditures relative to GSDP can be created, comparing the 2007-08 RE and 2014-15 projections. Of this, nearly one percentage point of GSDP can come from the revenue side and about 0.5 percent of GSDP from lower interest payments. It is shown that primary (non-interest) expenditure, considering revenue and capital expenditure together, can grow from 16.5 percent of GSDP in 2007-08 RE to about 19.1 percent in 2014-15. S: In particular, based on a set of assumptions, expenditure on education can be increased from about 2.6 percent of GSDP in 2007-08 RE to close to 5 percent of GSDP by 2014-15. In the case of health (Medical and Public Health and Family Welfare), expenditure can be raised from 0.66 percent of GSDP in 2007-08 to 1.27 percent, implying a near doubling of the share relative to GSDP. Capital expenditure (net of xiii

  • Page 1: MONOGRAPH 6/2010 MDGs-BASED POVERTY
  • Page 5 and 6: MONOGRAPH 6/2010 March 2010 Price:
  • Page 7 and 8: CONTENTS Acknowledgements Contents
  • Page 9 and 10: List of Tables Table 1.1 Millennium
  • Page 11 and 12: Table 5.10 Status of Urban Water Su
  • Page 13 and 14: Appendix 1.12 Maternal Mortality an
  • Page 15 and 16: MDGs-Based Poverty Reduction: Main
  • Page 17: . In terms of share of below povert
  • Page 21 and 22: households or individuals. For each
  • Page 23 and 24: Chapter 1 ISSUES AND INITIAL CONDIT
  • Page 25 and 26: The first three goals relate to era
  • Page 27 and 28: . Poverty in Tamil Nadu: Inter-stat
  • Page 29 and 30: and the urban poverty ratio was sli
  • Page 31 and 32: the total poor accounted for a prog
  • Page 33 and 34: physical development of people. Mor
  • Page 35 and 36: Table 1.11: Millennium Development
  • Page 37 and 38: indicates that Tamil Nadu will achi
  • Page 39 and 40: However, there is a scope for meeti
  • Page 41 and 42: status of malnutrition. The accepte
  • Page 43 and 44: The under-five mortality rate-U5MR
  • Page 45 and 46: (iv) HIV/AIDS, Malaria and Other Di
  • Page 47 and 48: 3. While Tami Nadu has done compara
  • Page 49 and 50: Chapter 2 REDUCING POVERTY: THE MAC
  • Page 51 and 52: est of the economy indicates the ex
  • Page 53 and 54: share of the tertiary sector in Tam
  • Page 55 and 56: Chart 2.1: Sectoral Growth in Tamil
  • Page 57 and 58: policies are in place to absorb lar
  • Page 59 and 60: In the context of interface between
  • Page 61 and 62: Table 2.7: Decomposition of the Hea
  • Page 63 and 64: Dutt are not so relevant for predic
  • Page 65 and 66: The SDE estimates vary across the s
  • Page 67 and 68: Chart 2.3 highlights that agricultu
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    2.6 Summary In summary the followin

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    Chapter 3 FISCAL REFORMS FOR POVERT

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    Bardhan (1996) emphasizes that ofte

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    atio of government employees to pop

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    Table 3.2: Tamil Nadu in Inter-stat

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    Chart 3.4: Own Tax Revenues Relativ

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    collected by state-owned enterprise

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    Chart 3.5: Capital Outlay as percen

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    The Fiscal Policy Strategy Statemen

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    f. Pension and Salary Expenditures

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    10 it is kept at 40 percent to acco

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    Government of Tamil Nadu has to sub

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    Chapter 4 COPING WITH SPATIAL IMBAL

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    In order to focus on the deficient

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    Chart 4.2 indicates the arrangement

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    Chart 4.5: Human Development Index:

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    Table 4.4: Index of Gender Deficien

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    Districts Table 4.7: Health Facilit

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    Regarding access costs in availing

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    4.6 Incidence of Poverty: District

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    district followed by Villupuram and

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    household willing to do public work

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    Districts Table 4.13: Implementatio

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    Table 4.14: Share of BPL Population

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    Table 4.16: Block -wise Gross Acces

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    Table 4.18: Block-wise IMR in Thiru

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    8. For provision of safe drinking w

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    Chapter 5 WATER, LAND AND AGRICULTU

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    5.2 Water: Key Issues in Tamil Nadu

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    Table 5.3: Sources of Water Supply

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    funding under the Water Resources C

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    In 2006-7, 65.83 percent of habitat

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    the major cause for poor maintenanc

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    about 30 litre per capita per day (

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    2006-07). However, total area under

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    nearly 3.5 times as high as the pri

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    5.4 Agriculture: Key Issues Agricul

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    Table 5.19: Productivity (Yield) of

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    Only rice and sugarcane received ir

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    iv. There are severe water quality

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    Chapter 6 LAST MILE REACH STRATEGIE

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    targeting as a device to improve ef

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    eneficiaries and of delivering prog

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    In the nighbourhood of the poverty

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    inefficiencies. Some of the major c

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    Tamil Nadu is close to achieving un

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    programmes. It is the only Self Emp

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    districts in Tamil Nadu. Namadhu Gr

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    6.5 Reaching Households and Individ

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    proposition more insurable, a group

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    line to post-office saving banks or

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    each the urban poor who live in slu

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    Eleventh Plan (2007) observes: “O

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    i. provide financial assistance for

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    unemployed or underemployed poor by

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    Services Prepare detailed water sup

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    Chapter 7 SUMMARY AND FORMULATION O

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    positive and relatively high. The b

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    3. In terms of composition of BPL p

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    holdings are smaller than 4 hectare

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    There are considerable inter-distri

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    Table 7.1: Adjustment during 2007-0

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    R i =(I a +I max -I i )/(I a +I max

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    line to post-office saving banks or

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    d. Targeting As far as rural areas

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    7.6 Urban Poverty Reduction Strateg

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    Fund, GoTN has created Tamil Nadu I

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    Some initiative by Government of Ta

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    • Addressing urban poverty allevi

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    land. There is need to develop a sc

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    REFERENCES Agarwal, S.P. (2005),

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    Deaton, Angus and Alessandro Tarozz

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    Himmelfarb, G. (1984), The Idea of

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    Report of the Working Group on Urba

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    APPENDIX TABLES Appendix Table 1.1:

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    Appendix Table 1.1 (contd.): Millen

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    Appendix Table 1.2 (a): Poverty Lin

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    Appendix Table 1.3: Poverty Gap Est

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    Appendix Table 1.5: Head Count Rati

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    Appendix Table 1.6 (contd.): Progre

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    Appendix Table 1.8: Women’s Malnu

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    Appendix Table 1.10: Child Mortalit

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    Appendix Table 1.11 (contd.): State

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    Appendix Table1.12 (contd.): Matern

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    Appendix Table 2.3: Decomposition o

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    and Publicity Relief from Natural C

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    Appendix Table 4.3: Demography Rela

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    Appendix Table 4.5: Health Faciliti

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    Sl. No Appendix Table 4.7: Efficien

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    Appendix Table 4.9: Employment unde

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    Appendix Table 5.1: Major and Mediu

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    Appendix Table 7.1: Indices for Dis

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    ANNEXURES 231

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    Monotonicity Sensitivity Axiom Mono

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    component of the poverty line is th

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    Fuchs (1969), while advocating the

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    H = m/n (2) The head count ratio ig

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    Annexure 1.3 UNIFORM RECALL PERIOD

  • Page 265 and 266:

    ‣ Periyar became Erode; ‣ Tirun

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    Women Receiving 3 Or More ANC Visit

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    In Sivagangai, as per 2001 census,

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    Table 4.3: Block wise Gender Wise G

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    Block Table 4.6: Trained Teachers a

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    Annexure 5.1 ENVIRONMENTAL CONSEQUE

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    Annexure 6.1 NOTES ON SELECTED CENT

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    10. Kasturba Gandhi Balika Vidyalay

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    MSE Working Papers Recent Issues *

World Comparative Economic And Social Data
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