Economic Impacts

Figure 12.4 shows the economic impact of drought on the people in the three study sites. As can be seen, there is a movement of families from both higher to lower income levels and below poverty line (BPL)9 under the influence of prolonged drought conditions. In other words, people have become poorer in

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Annual household income classes ($)

Drought

Normal

Drought

Normal

Annual household income classes ($)

* Drought Normal

Fig. 12.4. Income distribution of sample households in drought and normal years in (a) Satlasana area, (b) Bhiloda area, and (c) Bhuj area.

Annual household income classes ($)

* Drought Normal

Fig. 12.4. Income distribution of sample households in drought and normal years in (a) Satlasana area, (b) Bhiloda area, and (c) Bhuj area.

Fig. 12.4. Continued

Fig. 12.4. Continued both relative and absolute terms. However, the impacts were not the same in each study area.

Satlasana turned out to be the most vulnerable in spite of people's generally good economic condition. From almost nil during normal years, the number of BPL families during drought swelled to as high as 69%. High drought prone-ness has made Bhuj families to evolve handicrafts and metalwork, often for the international market, which provide significant income and cash flow throughout the year. Although Bhiloda suffered less relatively, in terms of intensity and magnitude, it was significant. In-depth discussion is available in Moench and Dixit (2004).

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