The good, bad, and 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.

- Anjuli Bhargava

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.

I remember the sceptic in me coming away thinking that I must return in three years to see how these families fare or whether the Nudge initiative and resolve wavers, as we often encounter with many sincere attempts in the country.

For readers unfamiliar, Nudge is using the graduation approach pioneered by the Bangladesh Rural Advancement Committee (BRAC) and implemented successfully in 50 countries, covering around 14 million households.

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.

To begin with, the worker helps build an identity for the woman and the family. This includes an Aadhaar card and a ration card.

Then, a consumption grant or stipend is offered to the family to ensure that they are not forced to migrate to find some work or the other, which gives the family some breathing space.

Typically, this consumption grant is between ₹6,000-10,000 depending on the number of family members.

Simultaneously, the first livelihood asset is introduced to the family, contextualised for individual countries and regions.