Correct Option
The correct option is That the effects of economic growth would trickle down to all sections of society..
Explanation
The Indian government's strategy for poverty reduction has historically been categorized into three approaches: growth-oriented development, specific poverty alleviation programmes, and meeting minimum needs. The growth-oriented approach was the dominant strategy during the initial phase of planning (1950s and early 1960s).
Detailed Analysis
- Basis of the Approach: The growth-oriented approach was based on the expectation that the effects of economic growth-specifically rapid industrialization and the transformation of agriculture-would spread to all sections of society.
- Trickle-Down Theory: This expectation is economically referred to as the "Trickle-Down Theory." It assumes that an increase in the overall Gross Domestic Product (GDP) and per capita income will eventually percolate down to the poorer sections of society, thereby lifting them out of poverty without requiring direct, targeted intervention.
- Contrast with Other Options:
- That specific schemes for the poor would directly lift them above the poverty line.: This refers to the second approach (Poverty Alleviation Programmes), which was introduced in the 1970s after realizing that growth alone was not trickling down effectively.
- That redistribution of land would automatically solve rural poverty.: While land reforms were part of the broader development agenda, the specific premise of the "growth-oriented approach" was centered on GDP expansion rather than asset redistribution.
- That population control measures would increase per capita income.: Population control is a demographic measure to support development but is not the definition of the growth-oriented economic approach to poverty.
Key Takeaway: The growth-oriented approach to poverty reduction relies on the Trickle-Down Effect, assuming that overall economic expansion automatically translates into improved standards of living for the poor.