The good, the bad, and the ugly in poverty alleviation
The graduation approach to poverty alleviation has made some headway but we need more states to jump onto the bandwagon
In April 2022, I joined a group of donors on a trip to the interiors of Jharkhand’s tribal belt to see the early results of a pilot project aimed to lift 1,200 families in the region out of extreme poverty.
Adopting the graduation approach to poverty alleviation, led by the Bengaluru-headquartered Nudge Institute, with the tacit support of the state government, it was a delight to meet the beneficiaries, visit their huts and see how the initiative had improved their chances of leading a better life. I remember the sceptic in me coming away thinking that I must return in three years to see how these families fare or whether the Nudge initiative and resolve wavers, as we often encounter with many sincere attempts in the country.
For readers unfamiliar, Nudge is using the graduation approach pioneered by the Bangladesh Rural Advancement Committee (BRAC) and implemented successfully in 50 countries, covering around 14 million households. Far more complex than simple handouts or schemes that offer cash or rations to the poor, this approach works on four main pillars — social protection, social empowerment, financial inclusion and livelihood promotion and is based on intense hand-holding of the woman of the family by a trained field worker.
To begin with, the worker helps build an identity for the woman and the family. This includes an Aadhaar card and a ration card. Then, a consumption grant or stipend is offered to the family to ensure that they are not forced to migrate to find some work or the other, which gives the family some breathing space. Typically, this consumption grant is between ₹6,000-10,000 depending on the number of family members.
Simultaneously, the first livelihood asset is introduced to the family, contextualised for individual countries and regions. In India, this could be agriculture and farming related, livestock (pigs, chickens and goats are most common; in the huts I visited, I saw pigs and goats being reared) or, in some instances, could be helping the family start a small enterprise which could be a retail outlet or sewing/tailoring (for which machines are provided).
The first asset is usually based on the skills of the lady of the house and what she feels she can best cope with. Training is imparted to family members and then after one asset begins to bear fruit, a second livelihood asset is introduced. This could be some land to begin farming of crops or livestock. The two assets ensure that if the crops they grow fail or the livestock dies, the family does not slip back into the precarious position it began from. The field worker who typically works closely with the family also explains the basics of a balanced diet and nutritional goals to the woman of the house (the importance of red, white and green for instance in a daily diet), all of which contributes towards the family’s greater well-being.
In India too, evidence of the success of this approach has been proved through the JEEVIKA programme in Bihar where since 2018, a total of 1.36 lakh ultra-poor households have been reached. Similar but smaller attempts by organisations like Bandhan and Trickle Up in the past have also proved the efficacy of this approach.
As the Centre and more states have seen the impact of the graduation approach, both are now prioritising it. The ministry of rural development is now working with the state livelihood missions and Nudge in six states — Jharkhand, West Bengal, Rajasthan, Tripura, Assam and Meghalaya to lift 4,000 families in each out of poverty. More recently, the ministry of social justice and empowerment has entered into a partnership with Nudge on a pilot project for 50,000 families in aspirational districts with a concentration of Schedule Castes, Schedule Tribes and Other Backward Classes and is using the funds allocated for Pradhan Mantri Anusuchit Jaati Abhyuday Yojana (PM-AJAY) for it. These are likely to be in Odisha, Karnataka, Rajasthan and another large northern state, which is yet to be finalised.
Prioritising by states also means more are open to committing their own funds to it. Jharkhand has now committed ₹840 crore to two schemes that would help vulnerable tribal women and women working with illicit liquor to help them find alternative sources of income. In all, a total of 125,000 families in the state will be the focus of the effort over the next four to five years. The Meghalaya government — where a pilot was on with 4,000 families — is being extended to 50,000 women (the state has many single unwed mothers) with the government committing ₹350 crore towards it. Following this, the Gujarat government has signed up and committed ₹500 crore to launch a similar programme in its aspirational districts for 50,000 Antyodaya Anna Yojana card holders.
While progress has been heartening, what remains a worry for all those vested in the approach and its dissemination across India is ensuring the programme spreads pan-India and takes the form of a “movement” while maintaining a brisk pace, always a challenge when any government agencies are involved. Small in India is often beautiful but scaling up often makes it less so.
Second, resources are the last thing that should hinder the spread of this mission. If India pays taxes, infrastructure and uplifting the poor are surely the two of the most pressing demands on the exchequer, besides defence and security.
Last but not the least (ugly), the last thing India needs is the quibbling over poverty numbers that erupts from time to time. Isn’t it in everyone’s interest to eradicate this menace? Living in denial or delusion is unlikely to serve anybody’s purpose.
Anjuli Bhargava writes on governance, infrastructure and the social sector. The views expressed are personal