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POVERTY REDUCTION STRATEGY TN

g. The incidence of

g. The incidence of HIV/Aids is disturbing with total number of reported cases more than fifty thousand, which are differentially distributed across districts, with Chennai alone having nearly one-fifth of the total reported cases. h. With growing urbanization, a major problem would be providing safe drinking water in urban areas with high density of population so that water-borne and related diseases could be kept at a minimum. Water scarcity and land degradation are two major constraints that affect agriculture in the state, which possibly impact the poor more than others. In the next Chapter we look at the growth and poverty reduction strategies prosposed by economists and the macro drivers that are specific to Tamil Nadu. 26

Chapter 2 REDUCING POVERTY: THE MACRO ECONOMIC DRIVERS Growth is a strong antidote to poverty just as inflation makes the poor vulnerable. Economic growth not only shifts people above the poverty line but also reduces the intensity of poverty by uplifting the mean income of the poor closer to the poverty line. The magnitudes of growth as well as its distributional dimensions are of importance in the context of poverty reduction. The poverty-reducing impact of growth, however, is context-specific. In particular, high levels of individual income and asset inequalities in a country or region can act as a hindrance in reducing poverty through growth. 2.1 Growth and Poverty Reduction: Some Lessons from the Literature a. Redistribution and Poverty-reducing Effect of Growth Growth reduces poverty when it is supported by suitable policies and when certain preconditions are met. Srinivasan (2001) observes that policies and processes can be identified a priori, some of which would be expected to generate sustained growth and poverty reduction while others would not lead either to growth or poverty reduction. A rate of growth that seems to reduce poverty significantly in one country or region can have very little effect on the poor of another country or region. Some features of growth can even increase the incidence of poverty. Bardhan (1996) highlights the poverty reducing vis-à-vis poverty increasing features of growth, observing: “In situations of severe capital market imperfections, the escape routes from poverty for the unskilled and the assetless may remain blocked, while growth improves the prospects for capital-intensive or skill-intensive projects. The centripetal forces of growth with increasing returns may drain resources away from backward regions reinforcing regional polarisation, as economic geographers have repeatedly shown”. Growth accompanied by equity is generally effective in reducing poverty. There are a number of situations in which equity promotes efficiency, and lack of equity hampers it. For example, rampant poverty breeds crime and ‘extra-legal appropriative activities’ (Grossman, 1992) and political instability, which can have damaging consequences for investment and macro-economic efficiency. There is also a link between nutritional intake and work efficiency in situations of extreme poverty. A more egalitarian distribution of land by reducing malnourishment and improving employability 27

World Comparative Economic And Social Data
Police Stations - Tamil Nadu Police
N u m b e r o f S c h o o l s - DISE
Census 2011 population of Latur district
PDF: 1.0MB - Population Reference Bureau