Economic reforms and rural poverty
- 2002
- 1676-685.
- 27 April
With the launching of structural reforms by the government in mid-1991, rural poverty rose sharply in 1992. In 1991-92, there was also rainfall deficiency. So, was the rise in poverty on account of bad weather conditions, or due to economic reforms? The analysis in this paper reveals that rainfall deficiency by itself would not have led to the sharp rise in poverty. Government policy - not necessarily the fiscal contraction of 1991-92, was important. For the reversal in the trend of rural poverty in 1993-94 fiscal expenditure was important. However, even all these factors together leave a large part of poverty changes unexplained. - Reproduced.