Professional Documents
Culture Documents
Amita Shah
Gujarat Institute of Development Research, Ahmedabad
Presented at
Workshop on Social Inclusiveness in Asias Middle Income Countries (MICs) Jakarta
Indias
progression
to
MIC-
The Complexity rests in the fact that a large part of the middle income people (that surpassed the number of poor) is highly vulnerable and devoid of even basic amenities
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Objectives:
1. Identifying the opportunities and challenges with special reference to the changing labour market conditions, migration and urbanization, environmental implications and social policies,. 2. Assessing Indias role as a development aid agency and impact on the recipient countries in Asia
Table 1: Poor, Middle Income and the Non-Poor in India: Changes Over Time All India Per capita Expenditure 1993-94 per day ($) 2004-05 Urban 1993-94 2004-05 Rural 1993-94 2004-05
1. Growth
2. Special Programmes
Natural Resource Management (NRM) Water and Sanitation Immunization and Nutrition (ICDS) Housing Commutation and Migration Skill Training Self-Employment and Micro Credit
3. Social Security/Protection; Rights Based Approach (RBA); Public-Private Partnership (PPP); and Deepening of Democracy
National Rural Employment Guaranty Act (NREGA) Public Distribution System (PDS) Un-organized Workers Tribal Area Development and Forest Rights Act Resettlement and Rehabilitation (R & R)
8
10
(% per annum)
Towns
2.57
2.22
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Table 5: Migration Rates by Categories, 1983 to 2007-08 Rural Male Female Person Male Urban Female Person
Informality in Urban Economy Circulatory Migration Partly Rural-Partly Urban Premature Mechanization in Agriculture Elite Capture in Urban Space
Economy
Growth in NSDP: 2000-10 (Rank) Sectoral Share (2009-10) Primary Secondary Tertiary in GSDP 14.2 38.6 47.2 13.12 (1) 10.22 (1)
Sr. No.
6 7
Human Development
Rural Poverty ((Rank) Hunger Index (Rank) Nutritional Deficiency Underweight Children Infant Mortality Rate 39.1 (11) 24.69 (13) 23.3 (11) 44.7 (13) 6.1 (8) 36.3 (9)
3.
Growth in NSDP from Agriculture (2008-09) (Rank) Per Capita SDP from Agri. (Rank) % Area under (2008-09) Irrigation
Chronic Calorie Deficiency (CED) among Women Anemia among Ever Married Women (Rank) Literacy Rate (Rank)
4. 5
9 10
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opportunities
need
to
be
carefully
calibrated by appropriate institutional mechanisms so as to make that work in favour of the poor workers and migrants.
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Involvement of citizenry and civil society organizations as part of the PPP models for service delivery
Strengthening local governance through innovative institutions and empowerment of the poor.
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India as Donor
By mid 2010 India became the fifth largest donor to Afghanistan and its aid to Africa has grown at a compound annual growth rate of 22 per cent over the past 10 years. India has chosen a rather different approach and routes for
Indias Approach
At the outset, India has chosen a rather different approach and routes for leveraging the aid programmes unlike several other emerging donor countries like China and Brazil. In the process the country has deviated from the standard definition adopted by the Development Assistance Committee (DAC). At present, Indias aid programme consists of three different features: a) grants and preferential bilateral loans to Governments; b) contributions to International Organisations and Financial Institutions; and c) subsidies for preferential bilateral loan provided by Indias EXIM Bank. In what follows we present the flow of funds through different routes over a 18 period of 7 years
Key Findings
1. Poverty has halved during three decades since the 1970s; the pace slowed down since the mid-nineties. 2. With emergence of the middle class, the high growth has accentuated inequity across states, communities, R-U locations.
3. Poverty reducing migration has remained confined mainly to big cities; smaller cities and towns and also migration slowed down and/or stagnated in the last decade. Recent emergence of a number of new small towns opens up fresh avenues. 4. The high growth trajectory led to a skewed pattern of employment ; a few jobs with very high salaries and earnings in large cities, combined with a large segment of informal workers in urban and rural areas. Overall widening of the gap between those included (or moved up) in the process of growth and those excluded from that.
5. The migration-urbanization combine is poised with certain peculiarities, which make it imperative to build further upon the existing rural-urban linkages. Key Findings contd...
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6. A large number of anti-poverty programmes/policies have been undertaken over a long period of time. Broadly these could be grouped into three: growth and percolation mechanisms; special schemes; and rights based programmes. There are indeed some good lessons to learn though, several of the policy initiatives are rather too new to be made amenable to a critical assessment.
7. It is difficult to clearly identify the policies that may work for the poor and for those in the lower end of the middle class. Broadly speaking one may argue that the rights based approach for social protection (entailing employment, food distribution and nutritional support; and housing), and provisioning of basic amenities like drinking water, electricity, roads and transport facilities, cater to the poor (< 2$ day). Whereas the programmes that help promoting agricultural productivity through high value chain, providing social security to informal sector workers, and above all skill training for educated youth may cater mainly to the lower middle class.
Key Findings Contd...
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8. The case of high growth in Gujarat suggested need for appropriate institutional mechanisms to make the growth induced opportunities work in favour of the poor workers and migrants.
9. India has chosen a rather different approach and routes for leveraging the aid programmes unlike several other emerging donor countries like China and Brazil. It is pertinent that deviating from the larger mechanisms, may keep open an alternative avenue for promoting global development and aid to promote indigenous growth by strengthening the local resources including manpower.
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