Chanakya IAS Academy Blog


Relevance and use of the article in UPSC prelims and mains examination: Dear aspirants, this article address the big issue which is directly related to paper II and III. this article analysis that how economic issues directly affect the society. One side it emphasis on rural development report : 2016 keypoints its asia pacific region report and main elements shown in this report. And on other hand it focuses on transformation of indian agriculture and its role in poverty eradication. please read the article thoroughly.

  • Last month United Nations has defined poverty eradication as the planet's top-most target. It also set its eradication as the main agenda for 17 sustainable development Goals adopted by the UN last September.
  • Whole World, including India, endorsed it. The strategies to achieve this goal have been left open to countries. These countries can use their best to achieve these goals.

Poverty definition and related aspects :

  • According to WHO:Poverty is associated with the undermining of a range of key human attributes, including health. The poor are exposed to greater personal and environmental health risks, are less well nourished, have less information and are less able to access health care; they thus have a higher risk of illness and disability. Conversely, illness can reduce household savings, lower learning ability, reduce productivity, and lead to a diminished quality of life, thereby perpetuating or even increasing poverty.
  • Poverty is often defined in absolute terms of low income – less than US$2 a day, for example. But in reality, the consequences of poverty exist on a relative scale. The poorest of the poor, around the world, have the worst health. Within countries, the evidence shows that in general the lower an individual’s socioeconomic position the worse their health. There is a social gradient in health that runs from top to bottom of the socioeconomic spectrum. This is a global phenomenon, seen in low, middle and high income countries.

About Rural Development Report (RDR) 2016:

  • The 2016 Rural Development Report focuses on inclusive rural transformation as a central element of the global efforts to eliminate poverty and hunger, and build inclusive and sustainable societies for all.
  • It analyses global, regional and national pathways of rural transformation, and suggests four categories into which most countries and regions fall, each with distinct objectives for rural development strategies to promote inclusive rural transformation: to adapt, to amplify, to accelerate, and a combination of them.
  • The report presents policy and programme implications in various regions and thematic areas of intervention, based on both rigorous analysis and IFAD’s 40 years of experience investing in rural people and enabling inclusive and sustainable transformation of rural areas.
  • The report is among the more comprehensive documents that try to understand the role of rural transformation in eradicating poverty and securing food and nutritional security within the context of economy-wide structural transformation in several countries.
  • International Fund for Agricultural Development is timely and a good instrument to look into it. And hence its Asia and Pacific Region (APR) release will be in India on October 17. It is based on an empirical analysis of 60 countries drawn from various regions.
  • Nine are from the APR. Comprising Bangladesh, Cambodia, China, India, Indonesia, Lao People’s Democratic Republic, Pakistan, Philippines and Vietnam, the region is the most populous and has the largest number of poor on this planet. There are 16 countries from Latin America and the Caribbean; seven from the Near East, North Africa, Europe and Central Asia; 15 from East and Southern Africa; and 13 from West and Central Africa.

RDR 2016’s takeaways:

  • conceptual framework of development. Almost all the 60 countries are undergoing some sort of structural transformation — some are moving fast, many are moving at a moderate pace and some are going very slow. The transformation is reflected in rising productivities in agriculture and the urban economy as well as in the changing character of the economy — the preponderance of agriculture making way for the dominance of industry and services, greater integration with global trade and investments and growing urbanisation.
  • Rural areas cannot remain insulated from this economy-wide change. They are also transformed with rising agricultural productivity, increasing commercialisation and marketable surpluses, diversification to high-value agriculture and off-farm employment through the development of agri-value chains.
  • Rural transformation on its own may not be effective in reducing poverty unless it is inclusive. This challenge is at the heart of the report. Agricultural development is a key element of such inclusiveness since a majority of the working force in most countries at low to moderate levels of rural transformation is still engaged in agriculture.

Bright side for India :

  • Agriculture still engages half of its workforce, and about 85 per cent of its farms are small and marginal (less than two hectares)? Compared to China and Vietnam, which have experienced fast structural and rural transformation,
  • India’s slow transformation. Is the reason that poverty reduction in India was at a much slower pace during 1988-2014, compared to China and Vietnam. The RDR 2016 tells us that India’s poverty reduction was slow during 1988-2005, but during 2005-12, it accelerated almost three times faster than during the earlier period.

What Worked for India during this period for reducing poverty?

  • Relative price scenario changed significantly in favour of agriculture in the wake of rising global prices.
  • This boosted private investments in agriculture by more than 50 per cent. The net surplus of agri-trade touched $25 billion in 2013-14;
  • Real farm wages rose by seven per cent per annum. All these led to an unprecedented fall in poverty.
  • A good price incentive can thus trigger investments in agriculture, leading to productivity gains, increases in real farm wages and fall in poverty.

Conclusion :

  • To make the rural transformation more inclusive, India will have to focus on raising productivity in agriculture through higher R&D (seeds) and irrigation and build value chains for high value agri-products like livestock and horticulture,
  • India can create large off-farm rural employment and augment incomes of farmers and others living in rural areas. This would require large investments both by the private and public sector. If India can do all this efficiently and through a participatory mode, it can certainly hope to eliminate not only poverty but also malnutrition by 2030.

Practice question For prelims:


Consider the following statements:

  • Rural Development Report (RDR) 2016 is published by UNO.
  • Report focuses on inclusive rural transformation as a central element of the global efforts to eliminate poverty and hunger, and build inclusive and sustainable societies for all.

Which of the following statement is correct:

  • Only 1
  • Only 1 and 2
  • Only 2
  • All of the above are correct.

Question For Mains :

“In comparison to other countries agriculture more than half of the work force of country.” in the lights of this statement Do you think that according to Rural Development Report (RDR) 2016 transformation and poverty eradiction in India can be dealed with Infusin of techonology in Agriculture. Comment :

(200 words)

Suggested answer:

  • Define poverty according to various fourams
  • Situation of poverty in india
  • Rural Development Report (RDR) 2016
  • Analyse according to indian conditions.
  • conclude.


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