The polarisation of rural society brought about by the early development exercises, like the green revolution, and the consequent unrest prompted the introduction of several poverty alleviation programmes in an attempt to ward off the dangers inherent in such situations. This paper's empirical examination of one such scheme-the IRDP in Andhra Pradesh identifies characteristics of the programme which prevent it from being effective. A major flaw is its tendency to benefit better off regions as compared to poorer regions thus rendering it self-defeating.