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Eastern Region (ER) lags rest of India on some social indicators<br />

like:<br />

• Poverty ratio (highest in Bihar)<br />

• Infant fertility (highest in Orissa)<br />

• Overall literacy (lowest in Bihar) and female<br />

literacy (lowest in Orissa and Bihar)<br />

• Poverty incidence varies within the Eastern Region.<br />

Given the strong linkage between output growth (particularly<br />

agricultural growth) and reduction in poverty, accelerated<br />

agricultural growth is critical, to reduce poverty in the eastern<br />

region (ER) States.<br />

1.8 For the rural poor, strengthened rural infrastructures -<br />

particularly connections to major roads and highways - would<br />

facilitate the development of small enterprises, agro-based<br />

activities, and markets, and increase off-farm and non-farm<br />

employment opportunities. Evidences show that "kickstart" rural<br />

nonfarm employment tend to be a function of access by rural<br />

households to land, livestock, migration, cash crops, credit, and<br />

labor-intensive off-farm work opportunities in the agro-climatic<br />

zone (FAO, 1998) 10 and (Thomas Reardon, et al 1998) 11 . R.B.Singh,<br />

10 FAO (1998): "State of Food and Agriculture 1998", Food & Agriculture Organisation, Rome, 1998<br />

11 Thomas Reardon, J. Edward Taylor, Kostas Stamoulis, Peter Lanjouw & Arsenio Balisacan (1998): “Effects of<br />

Nonfarm Employment on Rural Income Inequality in Developing Countries: <strong>An</strong> Investment Perspective”, FAO<br />

Regional Office for Latin America and the Caribbean, 1998<br />

9

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