SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt

The Meaning of Sufficiency Economy
International Conference
281
massive public works programme) to give them the needed additional incomes to
reach the minimum. Around the same time a number of others discussed estimates of
inequalities in income distribution, incidence of and trends in poverty, conceptual
and measurement problems involved, and strategies for tackling poverty.
This research highlighted significant differences in estimates of mean incomes
and consumption, inequality indices and poverty incidence obtained from different
sources. There was a major controversy over whether or not poverty incidence had
declined during the 1960s. This stimulated serious investigation into theoretical
aspects of concepts and measurements, the merits and weaknesses of different
sources of relevant data, the interrelation between growth, distribution of assets and
income, employment and poverty; and different strategies for rapid reduction of
poverty. All these themes continue to figure prominently in the ever growing
literature on this subject both nationally and internationally. The discussions have of
course become more detailed, technically more refined and wider in scope.
By the early 1970s, development economists, both within the country and
abroad as well as in international agencies, had veered round to the view that overall
growth, while necessary, would not by itself be able to take care of the needs of the
poor. The pace of growth is unlikely to be uniform across regions; all segments of
the economy and sections of the population are not integrated into the wider
economy; and large sections are not equipped (for a variety of reasons) to take
advantage of the opportunities arising from growth. Therefore programmes for
‘direct tike the World Bank.
This perception did not long remain a matter of academic interest. In India, the
set back to the economy during the late 1960s, (slow growth, back in investment,
inflation), heightened apprehensions of increased inequalities, growing
unemployment and worsening of poverty. It Happened to coincide with the struggle
for political power in the Congress Party. ‘Radical’ measures, (like bank
nationalization abolition of privy purses) ostensibly meant to contain the rich, were
tried but they were limited in scope and did not mean much to the poor. In this
juncture, Indira Gandhi sought to broaden her political base by adopting the ‘Garibi
Hatao’ slogan and launching a number of poverty alleviation schemes.
Apart from a Minimum Needs Programme, a number of other initiatives -
notably special schemes for small and marginal farmers (later replaced by Integrated
Rural Development, IRDP for short), rural employment schemes, mid-day meals for
school children, and subsidized public distribution of food and other essential
commodities - were launched. Some were new; others essentially were refurbished
versions of older schemes. That they did not remain slogans, but were backed by
substantial financial allocations made them politically credible. That it struck a
positive chord among the people is evident from the resounding electoral success of
Congress Party under Indira Gandhi’s leadership.
For the first time, assurance of basic minimum needs found an explicit and
prominent place in the Fifth Plan. The concept included not only an assurance of