Paper

Innovative Approaches to Poverty Reduction: Experiences in India and Indonesia

Have innovative approaches to poverty reduction successfully demonstrated their impact?
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This paper presents a study on 'Innovative Approaches to Poverty Reduction' that had the following operating principles:

  • Multi-dimensional integrated approaches;
  • Interventions across sectors and areas;
  • Integration of flows from multiple stakeholders;
  • Building the holding capacity of the poor;
  • Cutting across the rural - urban barrier.

The paper presents:

Study objectives:

  • To highlight the Indian and Indonesian perspectives of poverty and approaches to poverty reduction.

Methodology:

  • Literature survey, examination of secondary data, interactions with poverty officials and field visits.

Scope:

  • Analysis of major poverty issues and programs, implemented by various tiers in the system of governance and other stakeholders in society;
  • Identification of innovative approaches to poverty alleviation in India and Indonesia;
  • Analysis of their impact.

The paper presents the following findings of the study:

  • There were major operational constraints to poverty reduction interventions in both countries such as:
    • Low awareness of the principle of pro-poor development;
    • Focus on numerical coverage and not on sustainable impact;
    • Negligible coordination of input flows.
  • However, the encouraging signs were:
    • A shift to the 'ground-upwards' empowerment approach;
    • Trust building among local communities and governments;
    • Development of new and situation-specific norms and standards;
    • Shift towards a decentralized approach.

The study concludes that the experiences of innovative practices in India and Indonesia have established the desirability of developing an integrated approach to effectively address the multi-dimensional scenario of poverty.