The Hindu : National : `Poverty reduction not achieved to the desired extent'

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Sunday, May 15, 2005

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National

`Poverty reduction not achieved to the desired extent'

Special Correspondent

"The benefits of growth have trickled down differently among different sections and classes of people."

Growth process must be more inclusive and benefit the poor as well

Planning Commission Deputy Chairman Montek Singh Ahluwalia

NEW DELHI: Planning Commission Deputy Chairman Montek Singh Ahluwalia on Saturday regretted that poverty reduction was not achieved to the desired extent during the years of planned development.

Pointing out that the growth process should have been more inclusive, he said, "growth has not been even among all sections. The benefits of growth have trickled down differently among different sections and classes of people." It was this problem of uneven trickle down effect that led to a world of extreme disparity — some being very rich while others wallowed in absolute poverty and deprivation.

Growth could be promoted in such a manner that it benefited the poor and other vulnerable sections. For that to happen, poverty had to be viewed in a broader context, not just as poverty based on low income but one which took acute deprivation in consideration.

While poverty continued to persist in today's world of rising expectations, fuelled by growth in education, better health opportunities and general awareness, the economic growth process could be made more inclusive by imparting a greater thrust to agriculture. For this, the growth rate of the farm sector had to leapfrog from 1.5 to four per cent.

Dr. Singh was releasing a book, "Pro-poor growth and governance in South Asia" here. It has been jointly edited by Poona Wignaraja, chairman, South Asian Perspectives Network Association, Colombo, and Susil Sirivardana, co-chairperson, Participatory Institute of Development Alternatives, Colombo.

The book contains six case studies from India, Pakistan, Sri Lanka, Nepal and Bangladesh. They show how new social movements and organisations of the poor are converging with efforts to decentralise and share power at the local level.

Dr. Wignaraja suggested a growth strategy in which the poor also participated directly as subjects in the development process. A critical element was social mobilisation in which organisations representing the poor worked in partnership with a revamped state and a socially responsible private sector.

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