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Poverty - Dynamic and Sustainability Perspectives Implications for Welfare and Policy with Reference to India

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  • Tisdell, Clement A.

Abstract

After outlining some comparative features of poverty in India, this article reviews critically recent literature on the dynamics of poverty. On economic efficiency grounds, it rejects the view that the chronically poor are more deserving than the non-chronic poor of poverty assistance. Mechanisms of households and communities for coping with poverty are discussed. The possibility is raised that where poverty has been persistent that rational methods for coping with it are likely to be well established, and less suffering may occur than for households and communities thrown temporarily into poverty. However, situations can also be envisaged where such rational behaviours deepen the poverty trap and create unfavourable externalities for poverty alleviation. Conflict can arise between programmes to alleviate poverty in poor communities and the sustainability of these communities and their local cultures. Problems posed by this are discussed. Furthermore, the impact of market extension on poor landholders is considered. In contrast to the prevailing view that increased market extension and liberalisation is favourable to poor farmers, it is argued that inescapable market transaction cost makes it difficult for the poor to survive as landholders in a fluid and changing market system. The likelihood of poor landholders joining the landless poor rises, and if they migrate from the countryside to the city they face further adjustment hurdles. Consequently, poor landholders may be poorer after the extension of the market system and only their offspring may reap benefits from market reforms.

Suggested Citation

  • Tisdell, Clement A., 2003. "Poverty - Dynamic and Sustainability Perspectives Implications for Welfare and Policy with Reference to India," Social Economics, Policy and Development Working Papers 106949, University of Queensland, School of Economics.
  • Handle: RePEc:ags:uqsese:106949
    DOI: 10.22004/ag.econ.106949
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    1. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
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    Cited by:

    1. Moepeng, Pelotshweu T. & Tisdell, Clement A., 2008. "The Socio-Economic Situation of Female Heads and Poor Heads of Households in Rural Botswana: A Village Case Study," Social Economics, Policy and Development Working Papers 123544, University of Queensland, School of Economics.
    2. Clement Allan Tisdell & Serge Svizzero, 2015. "The Malthusian Trap and Development in Pre-Industrial Societies: A View Differing from the Standard One," Working Papers hal-02152050, HAL.
    3. Tisdell, Clement A., 2007. "Poverty, Poverty Reforms for Resource-use and Economic Efficiency: Neglected Issues," Economics, Ecology and Environment Working Papers 55100, University of Queensland, School of Economics.
    4. Tisdell, Clement A. & Regmi, Gopal, 2004. "Economic Social and Cultural Influences on the Status and Wellbeing of Indian Rural Wives," Social Economics, Policy and Development Working Papers 106952, University of Queensland, School of Economics.
    5. Mohammad, Hossain & Tisdell, Clement A., 2003. "Major Demographic Changes in Bangladesh and their Socio-economic Correlates: Analysis of Trends," Social Economics, Policy and Development Working Papers 106950, University of Queensland, School of Economics.

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