Innovative Approaches to Poverty Reduction: Experiences in India and Indonesia

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.