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Does Agricultural Growth Matter in Poverty Alleviation

Bibliographic Data

ID3884589
AuthorsRaghav Gaiha (0000-0002-2027-6747, World Bank, corresponding author)
Year1995
Volume26
Issue2
Pages285-304
Publication date1995-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueDevelopment and Change (JOURNAL)
Journal identifiersISSN: 0012-155X • E-ISSN: 1467-7660
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1467-7660.1995.tb00553.x
OpenAlexW1976284761
LanguageEN
Citations received13
References cited15

This article uses a panel survey of households in the Indian state of Maharashtra to demonstrate that agricultural growth takes too long to trickle down to the rural poor. Unanticipated inflation, on the other hand, aggravates rural poverty, as does domination of the agricultural growth process by large landholders. This affects the poor through the oligopsonistic influence of the landholders in rural labour markets, dampening employment and wages (as compared with the outcome in a competitive market). In the context of structural adjustment, while the emphasis on allocative efficiency through withdrawal of input subsidies and remunerative prices for output is justified, acceleration in agricultural growth by itself is unlikely to make a dent in rural poverty. Measures designed to accelerate agricultural growth must therefore be supplemented by direct anti-poverty interventions. Consumer price stabilization is particularly important, and would be assisted by an overhaul of the Public Distribution System. Major reforms would include improved flexibility in the scale of the PDS, better targeting through alternative distribution networks when private trade channels are weak or non-existent, and simplification of registration procedures. The oligopsonistic role of large landholders could be curbed through market-mediated land redistribution, scrapping of all tenancy regulations when tenancy markets function efficiently, and through large-scale intervention in rural labour markets along the lines of the Employment Guarantee Scheme

Agriculture · Allocative efficiency · Development economics · Economic growth · Economics · Food security · Labour economics · Leasehold estate · Market economy · Poverty · Public distribution system · Rural poverty · Subsidy · Agricultural risk and resilience · Income, Poverty, and Inequality · Social and Economic Development in India

  • On the Persistence of Poverty in Rural India

    Raghav Gaiha•Canadian Journal of Development…•1998

  • Has India's Economic Growth Become More Pro-Poor In The Wake Of Economic Reforms ?

    Open Access•Gaurav Datt, Martin Ravallion•2009

  • Rural Poverty Alleviation

    Open Access•Rudra P Pradhan•India Quarterly A Journal of…•2006

  • Hunger, undernutrition and poverty in India

    Raghav Gaiha•Contemporary South Asia•1997

  • Policy reforms, institutions and the poor in rural India

    Raghav Gaiha, Vani S Kulkarni et al.•Contemporary South Asia•1999

  • Chronic Poverty in India

    Open Access•Aasha Kapur Mehta, Amita Shah•World Development•2003

  • Calorie and Micronutrient Deprivation and Poverty Nutrition Traps in Rural India

    Open Access•Raghbendra Jha, Raghav Gaiha et al.•World Development•2009

  • Farm productivity and rural poverty in India

    Gaurav Datt, Martin Ravallion•The Journal of Development Studies•1998

  • Food, Prices and Income in India

    Raghav Gaiha•Canadian Journal of Development…•1999

  • The impacts of undernutrition on labor productivity

    Open Access•Emerson Luís Lemos Marinho, João Mário Santos De França et al.•Revista de Economia e Sociologia…•2025

  • Why Have Poor Democracies Not Eliminated Poverty? A Suggestion

    Ashutosh Varshney•Asian Survey•2000

  • National Rural Employment Guarantee Scheme, Poverty and Prices in Rural India

    Open Access•Raghav Gaiha, Vani S Kulkarni et al.•Journal of Asian and African…•2010

  • Mean Consumption, Poverty and Inequality in Rural India in the 60th Round of the National Sample Survey

    Open Access•Raghbendra Jha, Raghav Gaiha et al.•Journal of Asian and African…•2010

  • World Development Report 1990

    World Bank, World Bank Staff•World development report 1990.•1990

  • The Political economy of hunger

    Amartya Sen, Athar Hussain et al.•The Political economy of hunger•1990

  • How dependent are the rural poor on the employment guarantee scheme in India

    Raghav Gaiha•The Journal of Development Studies•1996

  • Production, prices and poverty in rural India

    Ashwani Saith•The Journal of Development Studies•1981

  • Rural poverty and agricultural performance in India

    Montek S Ahluwalia•The Journal of Development Studies•1978

  • Agricultural change and rural poverty

    Open Access•George Allen•Food Policy•1987

  • Land reform as commenced business

    Open Access•Michael Lipton•World Development•1993

  • Poverty, Agricultural Growth and Prices in Rural India - A Critique and an Extension

    Open Access•Raghav Gaiha•Development and Change•1987

  • Does Maharashtra's Employment Guarantee Scheme Guarantee Employment? Effects of the 1988 Wage Increase

    Martin Ravallion, Gaurav Datt et al.•Economic Development and Cultural…•1993

  • Development strategies and the rural poor

    Ashwani Saith•The Journal of Peasant Studies•1990

Unique citing works13
Citations per year0,45
Citation span1997 - 2025 (29)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 12

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