Falling into Poverty

A survey of 12 villages in Rajasthan found that a number of households had climbed out of poverty in the past 25 years. Simultaneously, however, a large number of previously non-poor households had also fallen into poverty, resulting in a rather small net improvement in the poverty situation in this area. Since the reasons for people overcoming poverty are quite distinct from the reasons why they succumb to it, different policy instruments are required to promote escape from poverty and to prevent decline into it, in this region and in other parts of the country.