Poverty is not merely the absence of income but also deprivation of health, education, nutrition, housing, sanitation and access to basic opportunities. Hence, sustainable poverty reduction requires strengthening people’s capabilities and agency.
Multidimensional Nature of Poverty
- Health deprivation: Poor households often face inadequate healthcare, malnutrition and high out-of-pocket expenditure.
Example: NFHS findings on malnutrition highlight the persistence of nutritional deprivation despite improvements in incomes. - Educational deprivation: Limited access to quality education and skills restricts intergenerational mobility.
Example: Learning gaps can reduce the ability of children from disadvantaged households to benefit from economic opportunities. - Housing and basic services: Inadequate housing, sanitation, drinking water and electricity directly affect living standards.
Example: The Jal Jeevan Mission and Swachh Bharat Mission address important non-income dimensions of deprivation. - Employment vulnerability: Informal and insecure employment can leave households vulnerable to economic shocks despite being above an income-poverty threshold.
- Social exclusion: Caste, gender, disability, tribal status and geographical isolation can restrict access to opportunities and public services.
Need for Capability Enhancement
- Human capital: Investments in education, healthcare and nutrition expand people’s productive capabilities.
Example: Poshan Abhiyaan seeks to address nutritional deficiencies among vulnerable groups. - Economic opportunities: Skill development, entrepreneurship and productive employment can provide sustainable pathways out of poverty.
Example: DAY-NRLM promotes livelihoods through women’s self-help groups. - Social protection: Income support and basic services protect vulnerable households from shocks.
Example: MGNREGA provides a legal employment guarantee to rural households. - Financial inclusion: Access to bank accounts, credit and insurance strengthens economic resilience.
Example: PM Jan Dhan Yojana has expanded access to formal banking services. - Women’s empowerment: Enhancing women’s education, property rights, skills and labour-force participation strengthens household capabilities.
Example: Self-help-group networks provide women with collective access to credit and livelihoods.
Policy Shift Required
- Convergent delivery: Health, education, nutrition, housing and livelihoods should be addressed together.
- Outcome orientation: Policy should measure improvements in capabilities rather than merely expenditure or scheme coverage.
- Targeted interventions: Particularly vulnerable groups and regions require differentiated interventions.
- Quality public services: Universal access must be complemented by improvements in service quality.
- Shock resilience: Social protection should protect households against health, employment and climate-related shocks.
Thus, poverty reduction must move beyond income supplementation towards expanding capabilities, opportunities and resilience, enabling individuals to participate meaningfully in economic and social life.
Legacy Editor Changed status to publish