Planning Models for Poverty Alleviation

An attempt has been made in this paper to highlight first the plan strategies so far adopted and the models constructed for poverty alleviation in India. As is known, no significant results could be achieved so far in India in poverty alleviation. It is also feared that the current liberalization may not by itself offer the necessary improvements in poverty alleviation with a reasonable speed in the next, say, two decades or so. In view of this background, the paper then emphasizes that there is an urgent need to work out more effective strategies and offers a combination of strategies for India. One of the most important components of the strategies suggested here relates to the basic needs approach to development as originally proposed by ILO (ILO, 1976, 1977), and the model for this as worked out by Herrera Amilcar O. et al (IDRC, Canada, 1976). A few relevant models already constructed in India, such as, those by Sinha R et al (1979), Dhar & Rao (1983a & 1983b), and, Dhar, Rao & Goel (1991a, 1991b & 1993) have been briefly discussed here. It is further suggested here that planning for poverty alleviation and liberalization for industrialization should be used in combination to get the best results for poverty alleviation as well to strengthen liberalization efforts. Two alternative projections, one as Alternative I showing only liberalization without any planning and the other as Alternative II with liberalization with planning have been worked out here. Projections have been provided for the rate of growth of per capita income and its distribution during the next two decades, 1995-2005 & 2005-2015. Following the assumptions of this approach, Alternative II indicates better results both in income growth as well as its distribution. The paper has also provided a framework of a micro level planning and implementation design for effective planning for poverty alleviation. The above approach is, no doubt, feasible from the point of view of availability of all physical and financial resources; however, the paper is silent about its political feasibility. Things do not remain static all the time, and there may be political compulsions in future to adopt strong measures for poverty alleviation as suggested in this paper.