Orissa is more well-known for its poverty than for anything else. Yet it is one of the few states which are extremely rich in terms of mineral deposits. Utilization of these resources in Orissa and rapid industrialization has been one of the main concerns of the political leaders of the state since 1947. It may not be a case for Orissa that the strong peasantry that evolved shaped policies in the government unlike in some other states like Punjab, Uttar Pradesh and so on.

An analysis of the economic situation in the state makes it obvious that the efforts made to reduce poverty were less successful in comparison to those in other states. For example, West Bengal, which had a higher poverty ratio than Orissa in 1973-74, could manage to bring it down to 32.01 per cent by 1999-2000 at a much faster rate of decline. Orissa?s poverty ratio stood at 48.01 per cent in 1999-2000. The rate of decline in the poverty ratio here has been one of the slowest in the country. Today, per capita income in Orissa is only 25 per cent of that in Punjab. Most of the states have performed better than Orissa on this count.

The blame goes to a very low long- term growth rate of 2.98 per cent in the net state domestic product from 1950-51 to 1988-89. The performance is worse in the agricultural sector where the growth rate has been a mere 2.38 per cent during this period. More worrying is the fact that agriculture and animal husbandry grew at a rate less than 2 per cent in the Nineties. The poverty ratio remained constant in the second half of the Nineties and even increased during 1993-94 to 1999-2000 in the southern and northern regions of the state. The figures are widely disparate in different regions of the state. The dominant coastal region has a poverty ratio of 32 per cent against 50 per cent in northern and 87 per cent in southern Orissa. About 75 per cent of Orissa?s poor come from the northern and southern districts.

Inequality in Orissa has many dimensions. There are also multiple deprivations. Against 73 per cent of the scheduled tribes and 52 per cent of scheduled castes, only 33 per cent in the other categories are classified as poor. Tribal groups in southern Orissa ? 92.42 per cent ? are among the poorest. The intensity of poverty in the south can be measu- red from the fact that the squared poverty gap is almost twice as high as that in the coastal and northern region. Since 1983, poverty incidence has declined more rapidly among other groups. The figure was 14 per cent among STs and 20 per cent among SCs compared to 23 per cent for other categories.

Health and education show significant group differences. While 27 per cent of the not-so-deprived groups in the rural coastal areas are illiterate (and 17 per cent in urban areas), 82 per cent of the ST population in the southern areas are illiterate. According to the National Family Health Survey, 2001, 88 per cent of the female tribal population, 73 per cent of the scheduled caste women, 56 per cent of the other backward classes women and 34 per cent of the ?other women? were illiterate. About 37 per cent of the ST women receive no ante-natal check-up, against 15 per cent of women from non-deprived groups. The rates of full immunization are about half of that among children of non-deprived groups.

In Orissa, agriculture, animal husbandry, forestry and fishing provide the main source of livelihood and employment. Given that there has been no improvement in agricultural productivity and there is little availability of non-agricultural employment opportunities, the desired shift of the labour force from agriculture has not taken place.

There has been a consequent decline of the percentage of workers who are self-employed during the period 1987-88 to 1999-2000. There is a corresponding increase in casual employment. The decline in regular employment for all workers in the second half of the Nineties is significant. The marginalization of the labour force and the squeeze on employment opportunities are causing worries.

The tribal groups in Orissa are dependent on the forests for various needs ? food, construction material, fuel, medicine, animal feed and so on. An estimated 20-50 per cent of the annual household income come from forest produce. Small-scale manufacturing of forest-based products like furniture, tools, basket and so on provide an important rural non-farm employment to these poor people. However, the declining access to forest-based food products raises questions about sustainability and equity.

Excessive deforestation as well as degradation are threatening the soil and water base. With erosion of the customary rights of the tribal population and their reduced access to forest resources, the household food security ? in terms of supplementing farm production ? seems to have become endangered. This disequilibrium has had serious repercussions, such as migration, the decline of traditional occupations and artisanship, and the dismantling of local social institutions and culture.

The foremost challenge for Orissa is to create employment. It means promoting livelihood and enhancing the incomes of those already employed. It would require planning and implementation of certain appropriate and innovative strategies to strengthen and sustain livelihood opportunities. The target should be sustaining 5 lakh livelihoods and creating one lakh new livelihoods for the initial two years and 2 lakh new livelihoods every year thereafter.

A livelihood mission could be launched, promoted by the decision-makers from the government and include proper representation from industries, manufacturers, exporters, the banking sector, business schools and other eminent advisors. The mission should develop plans for resource mobilization and investments required for supporting livelihood- related interventions. It could identify areas that require policy reforms to provide an enabling environment for livelihoods. It would be necessary to undertake research and studies for supporting livelihood enhancement strategies and institutional business plans to promote state projects. Undertaking analysis of ongoing programmes and processes to identify gaps and to give greater access to resources and services would be essential.

The mission should develop measurable performance indicators and track down the performance of various government departments. It should support coordination and convergence of related departments of the government, technical service providers and other stakeholders for review and refinement of the livelihood enhancement plan for the state. The mission should coordinate with the planning and finance departments to ensure that the required financial resources are made available for the schemes. Support from various donors and NGOs may also be sought. The sectors involved could be those that have a broader potential and equity base such as agriculture, animal husbandry, fisheries, forestry, industry and mining, handloom and handicraft, housing, tourism and micro-enterprises.

Orissa?s poverty scenario indicates that the growth rate must be accelerated. The investment on human development that is required in Orissa is much higher compared to that of any other state, keeping in view the relative deprivations. Much needs to be done to catch up with the rest of the natijon.