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