The good, the bad, and the ugly in poverty alleviation

In April 2022, I joined a group of donors on a trip to the interiors of Jharkhand’s tribal belt to see the early results of a pilot project aimed to lift 1,200 families in the region out of extreme poverty. Adopting the graduation approach to poverty alleviation, led by the Bengaluru-headquartered Nudge Institute, with the tacit support of the state government, it was a delight to meet the beneficiaries, visit their huts and see how the initiative had improved their chances of leading a better life. Far more complex than simple handouts or schemes that offer cash or rations to the poor, this approach works on four main pillars — social protection, social empowerment, financial inclusion and livelihood promotion and is based on intense hand-holding of the woman of the family by a trained field worker. The ministry of rural development is now working with the state livelihood missions and Nudge in six states — Jharkhand, West Bengal, Rajasthan, Tripura, Assam and Meghalaya to lift 4,000 families in each out of poverty. More recently, the ministry of social justice and empowerment has entered into a partnership with Nudge on a pilot project for 50,000 families in aspirational districts with a concentration of Schedule Castes, Schedule Tribes and Other Backward Classes and is using the funds allocated for Pradhan Mantri Anusuchit Jaati Abhyuday Yojana for it.