Amita Shah. Gujarat Institute of Development Research Gota, Ahmedabad

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Patterns, Processes of Reproduction and Policy Implications for Poverty in Remote Rural Areas in India: A Case Study of Southern Orissa Amita Shah Gujarat Institute of Development Research Gota, Ahmedabad Paper Presented at the Workshop on Spatial Poverty Traps Cape Town, South Africa March 29, 2007

Objectives: i. (i) To identify areas with high incidence of poverty over a longer period of time and examine the important features associated across states and regions in India. ii. (ii) To discuss how multiple disadvantages drive chronic poverty (severe, long duration, and multidimensional) especially in forest based economies in the country. This is demonstrated through a case study of Orissa by comparing regions (north and south), and also districts within southern region in the state. iii. (iii) To reflect on the policy approaches and draw implications for a more effective policy framework for ameliorating chronic poverty in the regions of spatial poverty traps.

Spatial Concentration Poverty in India: Has it Changed Overtime?

Table 1: Concentration of Poverty among Major States in India 1983 2004-05 States HCR Rank % share HCR Rank % Share Orissa 65.31 1 5.70 47.07 1 6.03 Bihar 62.71 2 14.64 41.53 2 16.53 Madhya Pradesh 49.23 5 8.61 37.21 3 10.79 Maharashtra 43.13 7 9.04 29.95 5 10.36 Uttar Pradesh 46.94 5 17.42 33.25 4 20.93 Tamil Nadu 53.48 4 8.47 28.31 6 6.10 West Bengal 53.60 4 9.77 25.67 7 7.23 All India 44.93 100 28.27 100

Table 2: Top 20 Regions by Levels of Poverty (HCR) Major States in India States 43 rd round 50 th Round 55 th Round Change 1987 1993-94 1999-00 94/94-99/00 1.Orissa 3 3 2-1 2.Madhya Pradesh 6 6 6 NC 3.Maharashtra 3 3 2-1 4.Bihar 3 3 3 NC 5.Andhra Pradesh 1 1 2 +1 6.Assam 1 1 2 +1 7.Tamilnadu 1 1 NC 8.West Bengal 1 +1 9.Uttar Pradesh 1 2 2 NC 10.Karnataka 1 1 0-1 Note:NC=No Change. Source: Based on the estimates prepared by Jha, R. (2003)

Table 3: List of 15 Regions Appearing in the Three NSSO=Rounds Sr. Regions in Descending Order Category of Region No. 1 Orissa-Southern Forest-based 2 Madhya Pradesh-South Central Forest-based 3 Madhya Pradesh-Chhatisgadh Forest-based 4 Orissa-Northern Forest-based 5 Madhya Pradesh-South western Forest-based 6 Maharashtra-Eastern Forest-based 7 Bihar-Southern Forest-based 8 Madhya Pradesh-Central Other 9 Bihar-Central Dry land 10 Uttar Pradesh-Central Other 11 Tamilnadu-Coastal Northern Forest-based 12 Bihar-Northern Other 13 Madhya Pradesh-Vindhya Forest-based 14 Madhya Pradesh-Malwa Platau Other 15 Uttar Pradesh-Eastern Dry land

Table 4: Correlates of Rural Poverty (HCR) Across NSS Regions in India: 1993-94 Variables All Dry Forest Other Poverty OPL Rural(87-88) OPL Rural(93-94) OPL Urban(87-88) 0.331* 0.696** OPL Urban(93-94) 0.462** 0.570* 0.670** Demographic Population Growth Household Size Human Capabilities Female Literacy -0.693** Child Mortality Land Land Productivity -0.274* Rural Wage (Male) -0.289* Waste Land -0.590** Labour Productivity -0.394** -0.510* -0.455+ -0.467* Gross Area Irrigated -0.297* -0.485* Economic Diversification Rural NFW -0.246+ -0.544* Infrastructure Electricity -0.485** -0.558* -0.625** Safe Drinking Water Medical Facilities Post & Telegraph 0.386** 0.601** 0.507*

Table 5: Poverty among regions in Orissa (Head Count Ratio in percent terms) Year NSS-Regions Coastal Southern Northern Orissa State Rural 1983 1987-88 1993-94 1999-2000 57.97 48.37 45.33 29.30 80.76 82.98 68.84 86.16 75.22 61.01 45.82 50.98 68.43 58.62 49.80 48.13 Urban 1983 1987-88 1993-94 1999-2000 46.15 42.11 47.24 41.65 45.48 52.93 41.94 43.97 54.35 39.90 32.54 45.81 49.66 42.58 40.68 43.51 Combined 1983 1987-88 1993-94 1999-2000 56.47 47.67 45.57 31.51 72.28 58.16 43.92 50.10 72.28 58.16 43.92 50.10 66.24 56.75 48.64 47.37 Notes: (i) Compiled from Haan and Dubey (2003: 6) (ii) NSS-Regions consist of undivided districts as follows:

Table 6: Head Count Ratio by Regions and Social Groups (Rural): 1999-2000 Regions Social Groups ST SC Other All Coastal 66.63 42.18 24.32 31.74 Southern 92.42 88.90 77.65 87.05 Northern 61.69 57.22 34.67 49.81 All (Orissa) 73.08 52.30 33.29 48.04 Note: Based on estimates by Haan and Dubey (2003)

Remoteness and Logjam of Constraints in Koraput Among Top 3 Districts Koraput A Statistical Profile Incidence of poverty Percentage share in total rural poor in Orissa Percentage share in total geographical area Percentage of degraded forest to total area Rural illiteracy Frequency of droughts Percentage of tribal population Relative Development Index

Table : Poverty Among Sample Households in 4 Villages in Koraput Villages MPCE (Rs.) All Severe Poor Medium Poor Moderate Poor Non-Poor Balel % (n) 22.5 (9) 55.0 (22) 15.0 (6) 7.5 (3) 100.0 (40) Sindhiguda % (n) 50.0 (20) 27.5 (11) 15.0 (6) 7.5 (3) 100.0 (40) Sub-total (I) % (n) 36.2 (39) 41.3 (33) 15.0 (12) 7.5 (6) 100.0 (80) Hanumal % (n) 41.0 (16) 43.6 (17) 10.3 (4) 5.1 (2) 100.0 (39) Kamel % (n) 10.0 (4) 47.5 (19) 20.0 (8) 22.5 (9) 100.0 (40) Sub-total (II) % (n) 25.3 (20) 45.6 (36) 15.2 (12) 13.9 (11) 100.0 (79) All % (n) 30.8 (49) 43.4 (69) 15.1 (24) 10.7 (17) 100.0 (159)

Table: Coping Strategies During Shocks S.No. Coping Strategies Balel Sindhig uda 01 Exploitation of Forest Resource 02 Reduced Consumption of Rice 03 Reduction in consumption 04 Borrowing from money lender Hanu mal Kamel Total 0.0 15.7 7.5 6.3 29.6 3.1 20.1 9.4 5.7 38.4 7.5 9.4 5.0 8.2 30.2 3.1 9.4 2.5 6.3 21.4 05 Credit from shops 3.8 0.0 1.6 8.2 16.3 06 Borrowing from relatives 0.0 0.0 0.0 2.5 2.5

Table : Changes in Level of Living Overt Time Changing Life Pattern Balel Sindhiguda Hanumal Kamel Total Consume better quality food 11.3 19.5 23.9 20.1 74.8 Wear better cloth 9.4 15.1 22.6 19.5 66.7 Access motor vehicle facility 15.1 2.5 6.9 15.7 40.3 Improvement in Housing 10.7 3.8 6.3 16.4 37.1 Decrease in death rate 10.1 0.0 0.6 13.2 23.9 Access to medicine from Govt. hospital 6.9 20.8 13.2 15.1 56.0 Exposure to know outside world 8.8 3.1 2.5 11.9 26.4 Use chemical fertilizer 6.3 1.9 3.1 13.8 25.2 Turning forest to Ag. Land 0.0 21.4 5.7 13.2 40.3 Increased livestock population 3.1 2.5 2.5 8.2 16.4 Decrease in superstitious belief 0.0 0.0 3.1 5.7 8.8 Increase in temperature 1.3 0.0 0.0 9.4 10.7 Decrease in wild life 0.0 0.0 3.1 0.0 3.1 Increase in violence 4.4 1.3 3.1 11.3 20.1 Reduction in liquor consumption 0.0 1.3 0.0 4.4 5.7 Education for children 5.0 0.0 0.0 8.2 13.2

A Plethora of Developmental Schemes/ Programmes

Need for Convergence and Integration Towards New Approach for bringing Conservation as an Integral Part of Development in Forest-Based Economies

Resource-Transfer by Way of Compensation for Conservation of Forest and Environment

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