POVERTY REDUCTION STRATEGY TN

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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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MONOGRAPH 6/2010 MDGs-BASED POVERTY
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MONOGRAPH 6/2010 March 2010 Price:
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CONTENTS Acknowledgements Contents
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List of Tables Table 1.1 Millennium
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Table 5.10 Status of Urban Water Su
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Appendix 1.12 Maternal Mortality an
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MDGs-Based Poverty Reduction: Main
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. In terms of share of below povert
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of expenditure on public goods like
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households or individuals. For each
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Chapter 1 ISSUES AND INITIAL CONDIT
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The first three goals relate to era
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. Poverty in Tamil Nadu: Inter-stat
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and the urban poverty ratio was sli
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the total poor accounted for a prog
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physical development of people. Mor
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Table 1.11: Millennium Development
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indicates that Tamil Nadu will achi
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However, there is a scope for meeti
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status of malnutrition. The accepte
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The under-five mortality rate-U5MR
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(iv) HIV/AIDS, Malaria and Other Di
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3. While Tami Nadu has done compara
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Chapter 2 REDUCING POVERTY: THE MAC
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est of the economy indicates the ex
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share of the tertiary sector in Tam
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Chart 2.1: Sectoral Growth in Tamil
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policies are in place to absorb lar
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In the context of interface between
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Table 2.7: Decomposition of the Hea
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Dutt are not so relevant for predic
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The SDE estimates vary across the s
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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
Page 141 and 142: 5.4 Agriculture: Key Issues Agricul
Page 143 and 144: Table 5.19: Productivity (Yield) of
Page 145 and 146: Only rice and sugarcane received ir
Page 147 and 148: iv. There are severe water quality
Page 149 and 150: Chapter 6 LAST MILE REACH STRATEGIE
Page 151 and 152: targeting as a device to improve ef
Page 153 and 154: eneficiaries and of delivering prog
Page 155 and 156: In the nighbourhood of the poverty
Page 157 and 158: inefficiencies. Some of the major c
Page 159 and 160: Tamil Nadu is close to achieving un
Page 161 and 162: programmes. It is the only Self Emp
Page 163 and 164: districts in Tamil Nadu. Namadhu Gr
Page 165 and 166: 6.5 Reaching Households and Individ
Page 167 and 168: proposition more insurable, a group
Page 169 and 170: line to post-office saving banks or
Page 171 and 172: each the urban poor who live in slu
Page 173 and 174: Eleventh Plan (2007) observes: “O
Page 175 and 176: i. provide financial assistance for
Page 177 and 178: unemployed or underemployed poor by
Page 179 and 180: Services Prepare detailed water sup
Page 181 and 182: Chapter 7 SUMMARY AND FORMULATION O
Page 183 and 184: positive and relatively high. The b
Page 185 and 186: 3. In terms of composition of BPL p
Page 187 and 188: holdings are smaller than 4 hectare
Page 189 and 190: There are considerable inter-distri
Page 191: Table 7.1: Adjustment during 2007-0
Page 195 and 196: line to post-office saving banks or
Page 197 and 198: d. Targeting As far as rural areas
Page 199 and 200: 7.6 Urban Poverty Reduction Strateg
Page 201 and 202: Fund, GoTN has created Tamil Nadu I
Page 203 and 204: Some initiative by Government of Ta
Page 205 and 206: • Addressing urban poverty allevi
Page 207 and 208: land. There is need to develop a sc
Page 209 and 210: REFERENCES Agarwal, S.P. (2005),
Page 211 and 212: Deaton, Angus and Alessandro Tarozz
Page 213 and 214: Himmelfarb, G. (1984), The Idea of
Page 215 and 216: Report of the Working Group on Urba
Page 217 and 218: APPENDIX TABLES Appendix Table 1.1:
Page 219 and 220: Appendix Table 1.1 (contd.): Millen
Page 221 and 222: Appendix Table 1.2 (a): Poverty Lin
Page 223 and 224: Appendix Table 1.3: Poverty Gap Est
Page 225 and 226: Appendix Table 1.5: Head Count Rati
Page 227 and 228: Appendix Table 1.6 (contd.): Progre
Page 229 and 230: Appendix Table 1.8: Women’s Malnu
Page 231 and 232: Appendix Table 1.10: Child Mortalit
Page 233 and 234: Appendix Table 1.11 (contd.): State
Page 235 and 236: Appendix Table1.12 (contd.): Matern
Page 237 and 238: Appendix Table 2.3: Decomposition o
Page 239 and 240: and Publicity Relief from Natural C
Page 241 and 242: 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
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‣ 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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POVERTY REDUCTION STRATEGY TN

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