POVERTY REDUCTION STRATEGY TN

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c. Comparing Tamil Nadu Growth with GDP Growth Looking at Tamil Nadu’s performance in terms of growth rate of GSDP (at constant prices) since the late nineties, two features stand out: (a) there was a fall in the growth rate in the early part of this decade, and (b) this fall was more than that of GDP representing average growth performance in the country. In comparative terms, growth rate of Tamil Nadu has been more than the GDP growth in many years but the reverse is also true for several years. In general, there is greater volatility in Tamil Nadu’s growth rate as compared to the GDP growth rate (Chart 2.2) Chart 2.2: Growth Rate of Tamil Nadu GSDP and the Overall GDP Growth of the Economy 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0.000 -2.000 1994- 95 1995- 96 1996- 97 1997- 98 1998- 99 1999- 00 2000- 01 2001- 02 2002- 03 2003- 04 2004- 05 2005- 06 2006- 07 -4.000 <strong>TN</strong>GSDP GDP Given that the share of secondary and tertiary sectors in Tamil Nadu are higher than that in the all-India GDP, and since these are the high growth sectors, 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 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 be targeted to grow at 9.5 to 10.0 percent per annum in the medium term. Given Tamil Nadu’s relatively lower growth of population (see section 2.5), this could translate into higher growth in per capita income of about 1.5 to 2.5 percentages to the average for India. This will require attracting considerable investment from the rest of India and abroad. These trends will lead to a reduction in rural poverty both by reduction of the head count ratio in rural areas and migration of some poor to the urban areas. There will be a significant impact on poverty reduction in Tamil Nadu provided 34
policies are in place to absorb larger and larger people migrating out of agriculture into the fast growing services sector. 2.3 Growth and Poverty Reduction in Indian States: Some Empirical Results Datt (1997, 1999), Datt and Ravallion (1992, 1997, 1998a, 1998b) and Ravallion and Datt (1996a, 1996b, 1999) have analysed the determinants of and factors (including policy instruments) that influence the trends in poverty. Some of their main findings can be summarised as follows: (a) poverty ratio falls by one percent for every one percent increase in net domestic product per capita; and (b) a decomposition of the changes in poverty ratio into a growth component (i.e., growth in mean consumption) and a redistribution component shows that nearly 87 percent of the observed decline in poverty ratio was accounted for by the growth component. The decomposition of growth and income distribution and their impact separately on poverty is discussed later in this Chapter. Further, the sectoral composition of growth is important as rural economic growth contributes far more to poverty reduction than urban economic growth. Also, initial conditions relating to human resources and infrastructural development accounted for a sizeable share of the differences between states in reducing rural poverty. Ravallion and Datt (1999) address specifically the problem of why growth is more pro-poor in some economies than others. They examine the evolution of poverty measures across major Indian states and cross-state differences in the poverty-reduction impact of various sources of growth. They use the diverse experiences of states to shed light on the question whether these differences are due to variations in rates and sectors of growth, or whether there are differences in the actual impact of that growth including the effects of differences in initial state conditions. Their starting point is based largely on modelling aggregate (rural and urban) poverty measures, and relaxing the traditional assumption that the impact of growth on poverty reduction is uniform across states. Ravallion and Datt’s study reveals that non-farm growth is more pro-poor when initial conditions in the states indicate higher female literacy rates, higher initial farm yields, lower infant mortality, and lower urban-rural disparities in consumption levels and landlessness. When these variables are controlled, initial urbanization rates and initial non-farm products are not found to have a significant impact on the non-farm output elasticity of poverty. By using state poverty measures for India over 1960-1994 and allowing for state fixed effects, Ravallion and Datt found that higher farm yields, higher state development spending, higher urban and rural non-farm output and lower inflation 35
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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 and 18: . In terms of share of below povert
Page 19 and 20: of expenditure on public goods like
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: Chart 2.1: Sectoral Growth in Tamil
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
Page 69 and 70: 2.6 Summary In summary the followin
Page 71 and 72: Chapter 3 FISCAL REFORMS FOR POVERT
Page 73 and 74: Bardhan (1996) emphasizes that ofte
Page 75 and 76: atio of government employees to pop
Page 77 and 78: Table 3.2: Tamil Nadu in Inter-stat
Page 79 and 80: Chart 3.4: Own Tax Revenues Relativ
Page 81 and 82: collected by state-owned enterprise
Page 83 and 84: Chart 3.5: Capital Outlay as percen
Page 85 and 86: The Fiscal Policy Strategy Statemen
Page 87 and 88: f. Pension and Salary Expenditures
Page 89 and 90: 10 it is kept at 40 percent to acco
Page 91 and 92: Government of Tamil Nadu has to sub
Page 93 and 94: Chapter 4 COPING WITH SPATIAL IMBAL
Page 95 and 96: In order to focus on the deficient
Page 97 and 98: Chart 4.2 indicates the arrangement
Page 99 and 100: Chart 4.5: Human Development Index:
Page 101 and 102: Table 4.4: Index of Gender Deficien
Page 103 and 104: Districts Table 4.7: Health Facilit
Page 105 and 106: 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
Page 175 and 176:
i. provide financial assistance for
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unemployed or underemployed poor by
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Services Prepare detailed water sup
Page 181 and 182:
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
Page 215 and 216:
Report of the Working Group on Urba
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APPENDIX TABLES Appendix Table 1.1:
Page 219 and 220:
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
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
Page 243 and 244:
Appendix Table 4.5: Health Faciliti
Page 245 and 246:
Sl. No Appendix Table 4.7: Efficien
Page 247 and 248:
Appendix Table 4.9: Employment unde
Page 249 and 250:
Appendix Table 5.1: Major and Mediu
Page 251 and 252:
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
Page 261 and 262:
H = m/n (2) The head count ratio ig
Page 263 and 264:
Annexure 1.3 UNIFORM RECALL PERIOD
Page 265 and 266:
‣ Periyar became Erode; ‣ Tirun
Page 267 and 268:
Women Receiving 3 Or More ANC Visit
Page 269 and 270:
In Sivagangai, as per 2001 census,
Page 271 and 272:
Table 4.3: Block wise Gender Wise G
Page 273 and 274:
Block Table 4.6: Trained Teachers a
Page 275 and 276:
Annexure 5.1 ENVIRONMENTAL CONSEQUE
Page 277 and 278:
Annexure 6.1 NOTES ON SELECTED CENT
Page 279 and 280:
10. Kasturba Gandhi Balika Vidyalay
Page 281:
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POVERTY REDUCTION STRATEGY TN

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