Poverty in the developing world

I have two concerns on which I am trying to carry out research and study during my stay at Yale, both of which do have an identifiable connection. The first relates to understanding the nature of rural poverty in developing countries and its nexus with natural resources and the environment. The second deals with policies and institutional frameworks that would promote innovation and rapid technological change to alleviate poverty. Unfortunately, a number of government programs as well as those implemented by development assistance organizations have largely tried to create direct employment opportunities for the poor by channeling funds into public works programs. These, in several cases, have no doubt provided the poor with immediate employment opportunities and, therefore, a stream of regular income, but essentially limited to the duration of a specific program only. These interventions have generally not created the conditions whereby the societies involved have developed capacity that gives them an outlet from or a clear choice for escaping from the spiral of perpetual poverty. Perhaps, the inadequacy of past programs and the limitations found in most experiences in the past stems from a lack of understanding of poverty itself. Recent work by Amartya Sen and others has clearly established that poverty is not merely income related, but basically rests within the confines of a system that does not allow choices and opportunities to the poor. Hence, by definition, if poverty has to be alleviated it would require a society to develop its capabilities, with external help if necessary, and for creating conditions under which they function such that choices are available to them, which they can exercise for their own betterment. An important factor that results in binding poverty in many rural areas of the developing world is the poor state of the environment and natural resources. While rapid population increase is often regarded as a factor in the degradation and destruction of natural resources in a particular area, in actual fact this is not always the case, because even in regions with high population density people have succeeded in managing and conserving their natural resources effectively. In contrast, in many places where almost irreversible damage has occurred in the stock of natural resources, it is not necessarily due to high population density, but factors such as poor definition or absence of property rights, weak institutions to uphold these rights, lack of knowledge, inadequate community participation and the absence of technological solutions for managing the problem. A case in point is slash and burn agriculture practised by communities, that do not necessarily impose any pressure through over-population, but over-exploit common lands, characterized by ill-defined property rights. The breakdown of institutions and stakeholder involvement lies at the root of problems associated with the degradation of natural resources. The figure shown below provides a schematic diagram of linkages between poverty and several physical as well as socio?economic variables. Figure 1 Schematic diagram of linkages between poverty and other variables While the quantitative magnitude of effects produced by each of the linked variables on poverty would vary from place to place and situation to situation, the important issue to understand is the manner in which all these factors interact between themselves and with variables determining poverty. An understanding of the inter-relationship between these and poverty is crucial for the determination of intervention strategies that could bring about a reversal in the continuing drift in several societies. In my research, specifically, I am trying to arrive at an understanding of poverty in rural areas particularly through factors connected with the environment and the good health of natural resources. Unfortunately, there is very little empirical work that has been done on these issues which might provide an aggregate picture or a path to the generalization of theories that might apply effectively to most rural areas in the developing world. There are a number of very location specific case studies and experiences of a narrative form that are available, from which some generalizations will need to be derived and a framework for analysis developed that would be relevant to the majority of rural areas afflicted with poverty. The second element of research that I am carrying out essentially deals with a subject that I think has begun to hold promise in recent times, because of the advancement of science and technology in several fields. It was not too long ago that the concept of appropriate technology and "small is beautiful" was upheld as a solution for developing countries, where serious constraints and inadequacies were seen to come in the way of transfer of technologies basically developed and used in the countries of the north. This situation has changed considerably for a variety of reasons. Firstly, several technologies are emerging today where economies of scale and largeness of application are no longer a prerequisite for their use on an extensive scale. The example of telephones has probably been overdone in recent literature, but is certainly a relevant subject to put forward. Today it is not necessary to look for economies of scale, since telephone wires and infrastructure of the conventional type are certainly not required for providing a single telephone connection in a rural area, because of the advent of cellular phone technology. Likewise, the recent advance in the production of energy from renewable sources has radically altered the options available for energy supply in a large part of rural areas not only in developing countries but in developed countries as well. Technological change is bringing down costs per unit of energy consumed at an impressive rate in the case of wind generated power, solar photovoltaic cells, gasification of biomass providing heat for small scale industry or power generation using micro-turbines and several other options. There is a clear case for public sector support for research and development in some of these areas. Similarly, potential applications of biotechnology would make it possible to improve yields of several food crops and to increase disease resistance without the use of chemicals and pesticides, which in any case are beyond the buying capacity of poor farmers. Hence, a range of technological developments have created new opportunities for rural societies. All of these would enlarge the opportunity set for rural populations, which would enable them to exercise choices in a range of occupations and activities that would increase their overall economic welfare. In my research I am not only identifying today?s technological developments and those in the future that may provide unique opportunities for their use on a decentralized basis, but I am also trying to study institutions and governance structures by which these possibilities can be tapped on a large scale as quickly as possible. Governments certainly have a role in such programs, but it is also clear that any government at best should be a facilitator and no more. The involvement of civil society and the creation of knowledge would be essential prerequisites for the success of programs that rely on technological change and technology upgradation in fields that are critical to the development of rural areas. My research is basically focussing on these sets of issues, because I believe that strengthening of institutional structures and governance at a decentralized level required would be critical to the success of technology dissemination and usage for making a difference in solving the widespread problem of poverty in this world. I would also try to develop a board policy framework that would provide an enabling set of conditions to make this possible.