Poverty Alleviation Measures

Poverty Alleviation Measures: Poverty alleviation has to go hand in hand with a vigorous drive for reforms. A former member of the planning commission suggested the following measures for economic reforms in India.

  1. Distribution of income not only income has to be increased by stimulating policies of economic growth by the government but the distribution of income has also to be given importance in the country. The response must have a positive impact on the poor.
  2. Encouraging private investment of capital in private industries has lagged behind in our country. It can come if there is a belief that profitability will increase over a period of time, adopting liberalization can assume such beliefs.
  3. Raising resources and planning expenditure: Till private investment increases, there has to be a substantial public investment in infrastructure. This requires raising resources and planning expenditure. The letter has to focus on cutting expenditure for reducing non-essential expenditure and raising The revenue can be raised not by increasing taxes but by increasing tax collection.
  4. Containing inflation: Inflation may be contained by increasing production.
  5. Creating independent banking institution: In a market-based system, we must have institutions which are independent. We must, therefore, work for more autonomy of The Reserve Bank. But, the interest rates and the foreign exchange rate should not be entirely deregulated. The fundamental rate should be stable.
  6. Reframing of disinvestment policy: The policy pertaining to this investment in the public sector needs to be framed in such a way that if the unit is encouraging losses, the government must get out. We have to have an exit policy. Then there are units which have to be improved. The government can sell their shares and use the money for improvement. But there are Units which are making huge profits. Selling the shares of such units is quite like selling the assets. It is a bad policy.
Measurements of PovertyCauses of Poverty in India
Social ProblemsRural Poverty
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Indira Awas Yojana

Poverty Alleviation Measures

The economists thus believe that only economic reforms like these can really help in reducing poverty in our country. However, the Leftists feel that a mixed economic system in the country obstructs the elevation of poverty. The absence of a minimum wage policy has increased discontentment among the labourers who today take more interest in strikes than in increasing production. Poverty Alleviation Measures

Poverty Alleviation Measures
Poverty Alleviation Measures

The capitalist think that lack of free licensing policy has hampered industrial growth. The socialist maintained that measure like control over prices of manufacturers commodities, fixing the profit margin of industrialist, action against black money and control over urban poverty will alleviate poverty in the country.

Intellectual believe that change in the tax structure, control over conspecious consumption, reduction in administrative expenses, change in distribution system and added incentives to medium class enterpreneurs will contain poverty.

Broadly speaking the major for elevating power it can be classified into 4 groups:

  1. Those affecting the demand for work
  2. Those affecting training in labour skill
  3. Those affecting the transfer of income
  4. Those affecting change in the existing social system.

All these necessities the following Poverty Alleviation Measures for eradicating poverty or at least reducing it significantly.

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