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POVERTY REDUCTION STRATEGY TN

targeting strategy:

targeting strategy: First, District Level (separately for urban and rural poverty reduction), second, from District to Blocks (Taluks) in the case of rural programmes and from District to urban agglomerations (cities/towns) for urban programmes. At the third level, targeting is form blocks to villages (rural areas) and from cities/town to slums and nonslum areas of zones/wards for urban areas. At the fourth level, in respect of selected schemes, households or individuals constitute the last unit of targeting. Geographic targeting, as already discussed, tends to be cost effective and efficient in achieving the desired results. It is also the most straightforward to administer. e. Enhancing Efficiency The next step is the strategy for fund allocation according to the targeting strategy and associated priorities. Efficiency can be thought of in terms of (a) design efficiency, (b) allocation efficiency, and (c) implementation efficiency. There is considerable scope for improving outcomes by using the same amount of funds by enhancing efficiency in all these three respects. However, in respect of the MDGs, where there are considerable spatial variations across districts and within districts, maximum and immediate gains are expected through improving allocation efficiency. In this study, it is argued that allocation efficiency can be easily obtained whereas implementation efficiency can be improved over a longer period of time. A three-tier targeting strategy is suggested for this purpose. There is also scope for improving the design of state level poverty reduction programmes or introducing new programmes. For a variety of centrally sponsored schemes, funds are allocated among states on the basis of poverty levels based on NSS data and other related considerations as reviewed in Chapter 6. While some funds are administered directly to the local bodies, societies, etc by the concerned central ministries, in other cases, funding is channeled through the state governments. In all cases, where central and centrally sponsored schemes are administered through the state governments, allocation of funds among districts should be aligned to the relevant index of relative deficiency. In addition, for all the state schemes, this strategy should be followed. For fund allocation, some adjustment may be needed in the index of deficiency (discussed in Chapter 4) because as long as the index varies between zero and some upper limit, the highest placed unit (district or block) would not receive any funding. For this purpose, the following methodology is suggested: Let a redefined index of relative deficiency for any MDG related indicator be given by: 170

R i =(I a +I max -I i )/(I a +I max -I min ) Here ‘I’ refers to an indicator, and subscript ‘i’ refers to a particular district or block, I max and I min are the highest and lowest values for the concerned indicator, and ‘a’ average for all districts/blocks. Then the suggested scheme for allocation of funds is given by S i = N i . R i /ΣN i R i . Here, S i is the share of the ‘i’th district or block, N i is the size of the population of potential or targeted beneficiaries in the ‘i’ th district or blocks, and R i is the revised index of relative deficiency. This formulation ensures that the district or block which has the highest value in terms of the concerned indicator also gets a positive share (S max = (I a )/(I a +I max -I min ) and all other districts or blocks with a higher relative deficiency, get a higher share. It may be noted that I a is a choice variable and the number I a can be replaced by another positive number. Once this is done, all other shares are automatically determined. The larger the range of the concerned indicator, the lower will be the share of the district with the highest value of the relevant indicator. Efficiency gains will be obtained even if the fund allocations are not fully aligned to the index of relative efficiency but it is ensured that there is a high degree of correlation between relative deficiency and share of funds after the size differences in the population of potential beneficiaries are taken into account. Appendix Table 7.1 gives illustrative calculations for selected indicators of relative deficiency covering per capita district domestic product, literacy rate, gross enrollment ratio, and life expectancy the Tamil Nadu districts. In addition, there are potential efficiency gains through modifications in the design of schemes and improving technical efficiency of the institutions involved in the delivery of services like schools and health centres. Illustrations using data envelope analysis for the health centres discussed in Chapter 6 indicate that it is possible to identify those educational institutions and hospitals where there is clear scope of increasing efficiency in the delivery of services. As far as design of programmes is concerned, as discussed in Chapters 4 and 6, some of flagship programs and indicators developed by the central government like National Rural Employment Guarantee Scheme (NREGS) and BPL enumeration, there are considerable design and implementation 171

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PDF: 1.0MB - Population Reference Bureau