Assessing The Quality Of Poverty Reduction Delivery System

Indian Context

Social Expert’s MeetOECD/Korea Policy CentreSeoul, Nov.19 – 20, 2008

Shanta Venkatraman

Overview

Background Initiatives Strategy Decision-Making Transparency Accountability Predictability Participation Capacity-Building Monitoring Summary of Social Protection Programs Overview Of Wage-Employment Schemes

BACKGROUND

Population Caste Distribution

548.2

838.6

1092

0

200

400

600

800

1000

1200

1971

1991

2005

Population (in millions)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

ScheduledCastes

ScheduledTribes

BackwardCastes

General

Poverty Over Time

0

10

20

30

40

50

60

1978

1983

1988

1994

2000

2005

2007*

Rural

Urban

India

Inter-State Variation In Poverty

0

5

10

15

20

25

30

35

40

45

Punjab

Him

achal P

radesh

Haryan

a

Andhra P

radesh

Kerala

Gujarat

Rajasth

an

Tam

ilnad

u

West B

engal

India

Mah

arashtra

Uttar P

radesh

Uttarakh

and

Mad

ya Prad

esh

Bih

ar

Jharkh

and

Orissa

% B

PL

Health and Education Status

*Per 000’ live birth

0

20

40

60

80

100

120

140

160

InfantMortality

Crude BirthRate

CrudeDeath Rate

1970 1990 2005

in Percentage

0

10

20

30

40

50

60

70

80

Literacy rate Females Males

1970 1990 2005

Employment

Labour force (millions) 419

- Organized sector 7-9%

- Un-Organized Sector 91-93%

Unemployment rate 8.28

No. unemployed (millions) 34.74

Major Initiatives In Social Sector

Scheme Objective

Integrated Child Development Scheme (ICDS) – 1975

Improving nutrition and health of pre-school children and pregnant and lactating mothers

Rajiv Gandhi National Drinking Water Mission – 1986

Societal Missions

Mid-Day Meal Scheme – 1995contributing to the nutrition of students in primary, boosting primary ed.

Swarnjayanti Gram Swarozgar Yojana (SGSY) - 1995

Creating SHGs

Swarna Jayanti Shahari Rozgar Yojana (SJSRY) – 1997

The Urban Self-Employment Programme and the Urban Wage Employment

Indira Awaas Yojana - 1999Providing dwelling units, free of cost, to the poor families

Major Initiatives In Social Sector (contd…)

Scheme Objective

Pradhan Mantri Gram Sadak Yojana (PMGSY) – 2000

Road connectivity to remote areas

Sampoorna Grameen Rozgar Yojana (SGRY) – 2001

Additional wage employment and food security, creation of durable infrastructure in the rural areas

National Rural Health Mission – 2005

To provide accessible, affordable &accountable quality health services

Bharat Nirman - 2005-06 Building infrastructure and basic amenities in rural areas

Jawaharlal Nehru National Urban Renewal Mission – 2005-06

Basic Services to the Urban Poor, Housing & Slum Development

National Rural Employment Guarantee Scheme (NREGS) - 2006

Provide 100 days of employment to at least one adult member of the house hold

Government / Public Sector including Corporations

Private (Including NGOs, Rotary Club, Lions Club, Health Insurance Cos. etc.

Center State

Centrally Sponsored Schemes(Center - State share)

Central Scheme

100% funding by Center

State scheme

100% funding by State

Source : Central Ministries / Departments

Reports / PlansSource : State

Annual Plans / Reports

Funding Through Central / State Governments.E.g. ICDS – World Bank funding

Program Implementation

Externally Aided Project

STRATEGY

Targeting: Indicators - Central Government

Income GenerationThrough Employment Guarantee Schemes that entitles them for wages both in cash and kind and empowering BPL population to self sustainable employment by creating assets.(SGRY,SGSY, NFWP,UWEP, NREGS)

Food SecurityThrough ‘Targeted Public distribution Program’ (TPDS)- subsidized food grains covering the deprived, socially oppressed and vulnerable group of population and BPL families(ICDS)

Primary Health Care- Health for all Elementary Education for every child in 6-14 yrs of age

Targeting: Indicators - Central Government (contd.)

Housing For the homeless- economically weaker section of population and socially deprived families. (IAY, VAMBAY)

Micro FinanceFor the urban poor and the rural masses especially women(SJSRY)

Child Protection Support for education, growth monitoring of infants, immunization, nutrition supplement. (scholarship, hostels, uniforms,stationary, shelter, mid-day meal program)

Targeting: Indicators - State Government

Central Government is the Apex body initiating all the major poverty alleviation programs. The implementation of these programs at a De-centralized level is done by the state govt. with centers’ guidance. However, monitoring and supervision continues to be the center’s responsibility

Majority of the CG programs are on cost sharing basis with the state. State complements these depending on the need of the local population. Nevertheless, these programs are often politically influenced

Targeting: Vulnerable Population Other Than BPL

Disabled/handicapped Orphans/street children / beggars/ Scavengers/homeless/beggars Elderly Socially oppressed Destitute

Benefits may be in cash, kind, tangible and non-tangible assets (tools, medical facility, informal education, skill training, shelter, food etc.)

DECISION-MAKING

Decision Making At Local Level

On paper a standardized manual exist for every program and depending on the suitability of the local conditions in the given local context they are modified.  

Stages/process of selection of the beneficiaries varies between programs depending on the eligibility criteria

Further, programs related to central government are supplemented by the state government to cater to the needs of the local population

Nevertheless, much of these are politically influenced. Program priorities change depending on the need of the hour.

High Priority

Food Security Public Distribution System

Primary EducationSarva Siksha Abhiyan, Spl. Prog. for girls

Secondary EducationScheme for Universalized of Access to Secondary Education

General HealthNational Rural Health Mission 2005. Thrust on public health programs

Cash Benefit for minimum standard of livingWage employment schemes

Micro CreditSHG’s, skill training

Temporary EmploymentWage employment schemes

Medium Priority

Nutrition Nutrition supplement through ICDS, Mid day meal programs in schools. Since 70’s & 80’s

Safe WaterRajiv Gandhi National Drinking Water Mission - 1986

Physical InfrastructureRoad connectivity, marketing, electricity, water, sanitation

Job Training for UnemployedITI’s

Decision-Making

Collect orate office is the final authority to initiate a scheme The Block officer/Zila parishad/ panchayat/gram sabha who are the

local officials in the rural often have the authority to decide The gestation period for application and entitlement vary from

program to program and place to place Beneficiary entitlements are reviewed annually and frequency of

payment depends on the duration of the programs The Below Poverty Line families are identified from the live

registers [records land holding, occupation, birth, death) maintained by the Patwari for every village. The families identified as poor are issued ‘Ration card’ of different colours [depending on the family income]. This card entitles them to buy food grains, kerosene, sugar etc.from the local fair price shops

This serves as ID card for identifying the poor families for many of the other programs

Benefit Disbursement

The component of benefit in kind under any scheme is delivered in person through the agency identified for implementation.

In the case of wage employment schemes, the cash too is delivered in person.

The same is not be true of micro-credit and self-employment schemes. These are often operated formally through banks or organized village co-operatives.

Extent Of BPL Population Benefiting

Under the food security program almost all the BPL families receive some level of support either in cash or kind. However this may often fall short of the quota allotted

Transparency

Since 2005 the citizens of India are provided access to ‘Right to information Act’ that entitles citizen to access data/information

Source of Access: web sites, authorized desk in every Ministry Relevant information is available in documented form

Accountability Issues

Performance Evaluations for most of the implemented programs are carried out.

Agencies may vary from program to program The public officials are rewarded as the case may be. Committees may be in place to address complaints relating to

unfair action/incompetence of authorities.

Predictability

Laws are in place for different programs. Adhering to the laws are the responsibility of the respective government/ministries

Beneficiary entitlement for every program is spelt out clearly. This varies from program to program.

At the grass root level, it is common that beneficiaries’ eligibility are manipulated to suit the purpose, especially in rural areas

Any unplanned benefit may not be seen on paper lest it might be exposed to questioning by the authorities

Among the Targeted programs,only ICDS prog. receives some foreign aid.

Participation

The program requirement normally demands community participation at local level, but until recently this was the monopoly of the local/village leaders/influential persons.

The National Rural Employment Generation Scheme (NREGS), initiated in in phases, beginning in 2006, is believed to involve the local villagers in implementation. As a result minimum wages are protected. This has helped to reduce migration for work. Wages are streamlined through the local banks.

Capacity Building

Training / orientation programs are organized for all programs to ensure the delivery of programs in an effective manner as the need may be. These are usually carried out at a de-centralized level

Training program are carried out by the senior govt. officials and content depends on the program

The central government officials generally train the local government staff/ NGO’s for the implementation of the programs. Sometimes the senior local government officials are trained as trainers at a centralized place by the apex body to maintain uniformity

Frequency of training depends on the need

Capacity Building (contd.)

Since this forms part of their duty, if a person is unable to attend a training program for some reason, substitutes are in place to take care. If without notice a trainee absentees oneself strict penalties are imposed

Since the civil servants are recruited at different levels in the govt. depts. through service commissions and have met the eligibility requirement at the time of recruitment for different levels, qualify for training automatically

Monitoring

Various government ministries and departments monitors the poverty reduction programs

Planning commission, Government of India authenticates the poverty estimates in India.

Outcome Indicators Of Poverty Monitoring

Head Counts Poverty Gap Severity Of Poverty School Enrolment Food Security Minimum Food Consumption Water And Sanitation Duration Of Employment Repayment Of Micro-Credit

General Health and RCH Income Earnings Consumer Expenditure

Tools For Monitoring

Household Survey by the National Sample Survey Organization (NSSO)

State Census Administrative Data from Local agencies such as co-operative

banks

Largest S.P. Programs by Expenditure

57

12

10

7 50

10

20

30

40

50

60

in %

All Civil ServicePension Schemes

Targeted PublicDistribution System

Sampoorns GrameenRozgar Yojana

Swarnajayanti GramSwarozgar Yojana

Indra Awaas Yojana

Largest S.P. Programs by Beneficiaries

239

86

72

39

29

0

50

100

150

200

250

300

in millions

Targeted PublicDistribution System

State FundedEducational Program

Medical Benefitincluding sickness &Maternity

Integrated ChilddevelopmentServices

Public sector HealthInsurance

Social Protection Impact Indicator

Per capita Poverty Line Income (Annual) (INR)

4903

S.P. Expenditure Per capita (Annual) (INR) 1667

Per capita S.P. Expenditure as % of poverty line Income

34%

S.P. Expenditure as % of GDP 4%

Social Sector Expenditure as % of GDP 16.42%

WAGE EMPLOYMENT SCHEMES

Shortcomings Of Wage Employment Schemes

More than half the beneficiaries are not from the needy group Bureaucracy dominated planning with little participation of

community Work to women less than stipulated norm of 30% Only 16-29 days employment provided to household Assets created not durable Corruption: reports of false muster rolls; contractors persisted;

payment often less than prescribed wages

About NREG Act - NREGS

NREG Act introduced a right–based framework It introduced legal guarantee of work, as opposed to a

government program which could be withdrawn by a government at will

Time bound action to fulfill guarantee of work within 15days of demand for work

Incentive structure for performance Disincentive for non-performance Demand based resource availability Accountability of public delivery system through social audits

Performance Of NREGS

Wage rates are better than agricultural occupations in rural India On an average 43days of employment are provided Generated 1437 million person days in only 330 districts, highest

so far compared other wage employment schemes 10-11% of all households completed 100 days of work compared

to 2-3 % in earlier programs

Suggested improvements in NREGS

Administrative cost to be increased Technical, professional and management level support to be

appointed at district and sub-district level. Grievance cell to address the issues such as non-payment of

wages, non-distribution of job cards, non-maintenance of muster rolls etc.

Thank You