This paper analyzes irrigation-poverty linkages, and determines how and to what extent irrigation contributes to poverty alleviation, and whether there are any spatial patterns in poverty in irrigation systems. It also identifies conditions under which irrigation has greater anti-poverty impacts. The analysis is based on primary data collected during the 2000-2001 agricultural year, from four selected irrigation systems and rainfed areas in Java. The results indicate that irrigation has significant poverty reducing impacts. Poverty varies across irrigation systems and across locations within the systems. In general, crop productivity is relatively higher and poverty is lower in middle parts of the systems compared to head and tail parts. Further, locational differences in poverty are more pronounced in larger systems where locational inequities in water distribution and productivity differences are also high. Crop productivity, the size of landholdings and location of households are important determinants of poverty, in addition to demographic factors such as family size. The smaller the systems with well managed infrastructure, relatively equitable water distribution and diversified cropping patterns supported with market infrastructure, the greater the poverty reducing impacts of irrigation. Overall, the study findings suggest that improving the performance of irrigation systems by enhancing land and water productivity, diversifying cropping patterns and improving water distribution across locations would help reduce poverty in presently low productivity-high poverty parts of the systems.

To effectively implement the proposed United Nations development agenda beyond 2015, Governments will need to focus on reducing inequality in their national planning strategies. In order to provide an evidence base for such planning in the Sri Lankan context, a systematic and comprehensive analysis on regional inequality is required. The present study begins to undertake this type of analysis using summary sigma convergence statistics, such as the coefficient of variation, the Gini coefficient and mean deviation scores. Regional gross domestic product (GDP) per capita data for the period 1996 to 2011 reveal that inequality with respect to this welfare indicator is considerable. Analysis of trends, over this 16-year period, indicates that while some beta convergence has occurred since 2000, this convergence (both conditional and unconditional) is not statistically significant. Indeed, the results suggest that based on current trends, it will take 15 years to halve the current inequality and about 30 years to achieve a regionally balanced economy. In this context, well-planned regionally inclusive development strategies are needed in order for Sri Lanka to move forward, especially since the current levels of regional disparity are argued by some to have contributed to the civil unrest and conflict that led to a reduction in national economic development over the three decades to 2009.

This study combines a livelihoods approach with a regression approach to quantify the effectiveness of irrigation infrastructure investment on improving people's livelihood strategies. Using a unique dataset based on households in southern Sri Lanka, and a natural experimental setting, we estimate from a two stage income regression model to show that irrigation access has a positive effect on income through livelihood choices. We also show through qualitative approaches that factors not linked to irrigation infrastructure may contribute to changes in livelihood portfolios. In addition, we highlight factors that result in certain households being unable to move out of poverty despite access to the improved irrigation infrastructure.

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List of Tables and Figures iv Acknowledgement vi Study Background 1 Part 1-Poverty and Irrigation in India 1.1 Introduction 3 1.2 Historical and Contextual Frame 4 a. Rural poverty in India 7 b. Water and land resources of India 18 1.3 Poverty Alleviation Initiatives in India-An Overview 26 1.4 Impact of Irrigation on Poverty-Review of Evidence 30 1.5 Performance of Irrigation Project-An Overview 42 1.6 Institutional Reforms in Irrigation-An Overview 49 1.7 Summing Up 57 Part 2-Institutional Arrangements for Irrigation Management in India 2.1 Introduction 65 2.2 National-level Institutions for Irrigation Management 66 2.3 State-level Institutions for Irrigation Management 78 2.4 Local-level Formal and Informal Institutions for Water Supply and Distribution 106 2.5 Irrigation Financing: Water Charges and Cost Recovery Part 3-Poverty in Irrigation Systems-An Analysis for Strategic Interventions 'U' shape as the economy grows, some scholars claimed that the poor hardly gained from the 'green revolution', while many others found evidence of the "trickle down" phenomenon. Evidence on the distributional changes accompanying growth is mixed, but historical evidence for a number of countries shows only gradual change over fairly long periods. In India, the income gini coefficient remained almost constant from 1951 through 1992, with a mean of 32.6 and standard deviation of 2.0 (Li et al. 1998). The sectoral composition of growth also makes a difference for poverty reduction. Ravallion and Datt (1996) provide evidence for India that faster agricultural growth is strongly and unconditionally associated with both urban and rural poverty reduction. Lipton and Longhurst (1989) cite the example of Indian Punjab to illustrate the dramatic transformations that have occurred with the widespread adoption of green revolution technologies. They opine that modern varieties do reach small farmers, reduce risk, raise employment and restrain food prices. Yet, the benefit in terms of poverty reduction appears to be modest. They observe that the poor are increasingly land-poor and dependent on wage labor. They argue that the benefits to the poor as consumers, (low food prices) are captured largely by their employers, who can pay lower wages. The green revolution phase was signified by desperate attempts to make a breakthrough in domestic food production. With the spread of high-yielding varieties, agricultural production showed a dramatic upward trend from 24 million tons in 1950 to 31 million tons in 1966, 43 million tons in 1972 and further 54 million tons in 1979. The gross irrigated area increased from 33 m ha in 1967 to 52 m ha in 1984 and over the same period, fertilizer consumption increased from 7 kg / ha to 45 kg / ha. Rural poverty in India declined from 56.44 percent in 1973-74 to 53.07 percent in 1977-78. In the 70's, strategies for poverty eradication were part of a larger belief in the importance of 'growth with redistribution'. The production cum technology approach was supplemented by several interventions by the governmen...