Page 81 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 7: Poverty: Concept, Cause and Government Policies

Plan. To idea the causes of sluggish growth of agriculture, it approach a high power Commission Notes
under the Chairmanship M S Swaminathan, world renowned agricultural tist. The National
Commission on Farmers suggest following 5-point action Plan :
1. Undertake Soil health enhancement through tegrated measures in improving organic and
macro-and-micro nutrient.
2. Promote water-harvesting, conservatio and suitable use by-empowering panchayats come
‘pani panchayats.’ A sustainable harvesting system should be established in fed areas
lacking assured irrigation.
3. Keeping in view, the decline in profitability farmer’s distress, the Government should
duce the rate of interest on crop loans percent.
4. Bridge the growing gap between scientific how and field-level do-how both in production
and post-harvest phase of farming. This accomplished by training farmers throughout
agency of Krishi Vigyan Kendras (Agriculture Science Centers) in both production and
harvest technologies.
5. The gap between what the rural produce and the urban consumer pays should be rowed
down, as has been done in the case of by Dr. V. Kurien.
Besides, the National Commission on placing the unfinished agenda in land reform first list of
five factors central to the present agrarian states “The first and foremost task of the National on
Farmers should be in the area of land reform with reference to tenancy laws, distribution of
ceiling surplus land, attention to common property and at wasteland resources and consolidation
of holdings.... Giving access to land and homesteads not only reduces poverty but is the best
way to bring dignity in the lives of today’s excluded.” (Quoted by the Approach Paper of the 11 th
five Year Plan, p.29).
3. Increasing the productivity and job quality of the unorganized sector
The NDA government appointed ‘Special Group on Targeting Ten Million Employment
Opportunities’, under the chairmanship of Dr. S P Gupta, the then member of the Planning
Commission which submitted its report in 2002. The Special Group emphasized a shift in the
strategy of development by emphasizing the growth of unorganized sector as the surest method
to reduce employment and poverty.
To quote : “The only answer to this situation is to increase productivity and job quality of the
unorganized sector. It means that all attempts should be made to implement those policies
which will release the basic town constraints and by ensuring a level playing field for this
sector.... In the attempt to increase the labour productivity, more emphasis should be on the
growth of sector rather than for substituting labour by capital. Further, to improve the job
quality and its security, major changes in legislation will be needed regarding basic social security
measures, working conditions, minimum wages and protection of labour interests.”
There is a need to immediately implement the recommendations of the special group so that
reduction the rate of poverty reduction with higher GDP growth is halted and a reverse trend
is generated.
Empowering the poor through provision of housing
There is a need to remove the shortage of permanent houses in the rural as well as urban areas. Not
only that, an effort has to be made to provide the basic amenities of life such as drinking water, toilets
and electricity. The country must launch a massive programme to provide housing and basic civic
amenities.
The situation is much worse in rural areas than in urban areas. Government should subsidize housing
for the poor and weaker sections of the society and recover the cost as part of rent and installments
over a period of 20 years. At present, the amount of ` 30,000 being given for the construction of a
house under Indira Aawas Yojana is too meagre in view of the rising cost of construction to provide
a two roomed house, with a kitchen and toilet. This should be the minimum that is required by a
family. This requires the limit of ` 30,000 to be revised.

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