What Is Poverty ? What Is Poverty Line ?Two Ways Of Poverty Measurement Of Poverty Poverty Head Count Index Types of poverty Causes Of PovertyEffects Of Poverty Measures to Reduce Poverty Efforts to alleviate poverty Outlook for poverty alleviationGovernment Programmes For PovertyAlleviation
What Is Poverty ?Poverty is about not having enough money tomeet basic needs including food, clothing andshelter. However, poverty is more, much morethan just not having enough money. The world bank describes poverty as: “Poverty is hunger. Poverty is lack of shelter.Poverty is being sick and not being able to see adoctor. Poverty is not having access to schooland not knowing how to read. Poverty is nothaving a job, is fear for the future, living oneday at a time.”
What Is Poverty Line ?•Poverty Line is drawn on the basis ofExpenditure that is necessary to Secure theMinimum Acceptable Living Standard forWork & Efficiency.• Since, Food is the most Basic Requirement,thus, Poverty Line is drawn on the basis ofa Minimum Necessary Nutritional Standardexpressed in terms of Calories Per Day.
In India, the Minimum Calories intake of aPerson has been put at 2,400 in Rural Area &2,100 in Urban Areas.• To convert this Calorie intake based PovertyLine into a Monetary Measure of Poverty, theCost of Minimum Consumption Requirements ofFood providing the minimum calories is calculatedat prevailing Price.• Thus, Government defined a Person with anIncome of Less than Rs.672 (Rural) & Rs.859(Urban) per month as living below Poverty Line.
Two Ways Of Poverty 1)Relative Poverty 2)Absolute Poverty
1) Relative PovertyRelative Poverty refers to the Income or AssetPosition of one Class or Group of People incomparison with the other Classes or Groups, or ofone Individual vis‐a‐vis the Others.• The essential point here is that Poverty of One isRelative to the Richness of the other.• For Example, an Average Middle Class Personis Poor when compared to the Upper Middle ClassPerson, who in turn, may be poorer than the RicherPerson and so on.
Absolute PovertyIt is associated with a Minimum Level ofLiving or Minimum ConsumptionRequirements of Food, Clothing, Housing,Health, etc.• All those People who fail to Secure Incomeor Assets to have access to even these MinimumConsumption Requirements are classified as‘Poor’.• Is relevant for the Less‐DevelopedCountries.
Measurement Of Poverty• EXPENDITURE • INCOME METHOD METHOD• Under this the • This method is used minimum food by the government requirements for while distributing survival is food through PDS at estimated. the local level.• The food value is • Under this a poverty converted into line is fixed by the calories. government.• The caloric value of • All the families food is then whose total income is converted into the less than the poverty money value i.e. in line fixed by the rupees. government are
Poverty Head Count Index
Types of poverty1.Economic Poverty2. Income poverty
Causes Of Poverty• Caste System• Heavy Pressure Of Population• Unemployment• Illiteracy• India’s Economic Policy
Caste SystemAccording to S. M. Michael, Dalits constitute thebulk of poor and unemployed.According to William A. Haviland, casteism iswidespread in rural areas, and continues to segregateDalits. Others, however, have noted the steady riseand empowerment of the Dalits through socialreforms and the implementation of reservations inemployment and benefits.Caste explanations of poverty fail to account for theurban/rural divide. Using the UN definition ofpoverty 65% of rural forward castes are below thepoverty line.
Heavy Pressure Of PopulationThe population in India as at 0:00 hours on1st March 2001 stood at 1,027,015,247persons. With this, India became only the secondcountry in the world after China to cross the onebillion mark. ( India is the 2nd most populated countryin the world).
Indias population rose by 21.34 % between 1991 -2001. The sex ratio (i.e., number of females perthousand males) of population was 933, rising from927 as at the 1991 Census.Persons 1,220,200,000Males 190,075,426Females 172,799,553
Current Population of India in 2012is around1,220,200,000 (1.21billion) people. Currently, Indiais second largest country in the world after China interms of population. By 2030, the population ofIndia will be largest in the world estimated to bearound 1.53 billion. There has been rapid increase inIndian population in the last 60 years. Population ofIndia at the time of Independence was only 350million. So Indian Population has increased morethan three times.Current Population of India in 2012-1,220,200,000 (1.21billion)Population of India in 1947 was - 350million
UnemploymentUnemployment refers to the situation wherethe Persons who are able to Work & Willingto Work, Fail to Secure Work or Activitywhich gives them Income or Means ofLivelihood.Those who are fit to Work but do not want toWork & hence do not actively seek Work arenot included among the Unemployed Persons.
IlliteracyThere is a close connection between illiteracy andpoverty at all levels--global, national, andsubnational; the countries with the lowest levelsof literacy are also the poorest economically.Poverty breeds illiteracy by forcing children todrop out of school to work, and these illiteratepeople are forced to stay on the lowest levels ofthe work force and thus remain in poverty. Thusilliteracy in turn reinforces poverty, and povertyis cyclical in families. Women and girls areespecially vulnerable to the cycle.
India’s Economic PolicyIn 1947, the average annual income in India was$439, compared with $619 for China, $770 forSouth Korea, and $936 for Taiwan. By 1999, thenumbers were $1,818; $3,259; $13,317; and$15,720. (numbers are in 1990 internationalMaddison dollars) In other words, the averageincome in India was not much different from SouthKorea in 1947, but South Korea became a developedcountry by 2000s. At the same time, India was leftas one of the worlds poorer countries.
India had started out in the 1950s with:•High growth rates•Openness to trade and investment•A promotional state•Social expenditure awareness•Macro stabilityBut ended the 1980s with:•Low growth rates (Hindu rate of growth)•Closure to trade and investment•A license-obsessed, restrictive state (License Raj)•Inability to sustain social expenditures•Macro instability, indeed crisis.
Effects on Children•According to UNICEF, 22,000children die each day due to poverty. •Around 27-28 % of all children indeveloping countries are estimated to beunderweight or stunted.•10.6 million died in 2003before they reached the age of5 (same as children populationin France, Germany, Greeceand Italy)
For the 1.9 billion children fromthe developing world, there are: 640 million without adequate shelter (1 in 3) 400 million with no access to safe water (1 in 5) 270 million with no access to health services (1 in 7)
Effects on Women•Women make up half of the worldspopulation and yet represent astaggering 70% of the worlds poor.•Of the 500,000 women who die inchildbirth every year, 99% live indeveloping countries. In other words, indeveloping countries, a girl or a womandies every minute in giving birth. •4 million girls and women a year aresold into prostitution.
Effects on Education•Based on enrollment data, about 72million children of primary school age inthe developing world were not in school57 per cent of them were girls. And theseare regarded as optimistic numbers.•Nearly a billion people entered the 21stcentury unable to read a book or signtheir names.•121 million out of educationworldwide.
Measures to Reduce Poverty•Agriculture & other Rural Vocations should berapidly developed so as to Eradicate Rural Poverty.• Village and Small Industries should be developedto create greater Employment both in Rural &Urban Areas.• Programmes should be implemented that directlytarget the Poor & help them increase their Income &Consumption.
•Income Inequalities should be reduced:Labour Legislation should ensure better Wages.Goods consumed by the Poor should not be Taxed.Goods required by the Poor must be Subsidized.Free Health Care & Education should be providedto the Poor.Persons belonging to Poor Families must beprovided Employment.•Rapid Growth of Population must be controlled &Population Growth Rate brought down throughFamily Planning, Education, Incentives, etc.
Efforts to alleviate povertySince the early 1950s, govt has initiated,sustained, and refined various planningschemes to help the poor attain selfsufficiency in food production. Probably themost important initiative has been the supplyof basic commodities, particularly food atcontrolled prices, available throughout thecountry as poor spend about 80 percent oftheir income on food.
Outlook for poverty alleviationEradication of poverty in India is generallyonly considered to be a long-term goal.Poverty alleviation is expected to makebetter progress in the next 50 years than inthe past, as a trickle-down effect of thegrowing middle class. Increasing stress oneducation, reservation of seats ingovernment jobs and the increasingempowerment of women and theeconomically weaker sections of society, arealso expected to contribute to the alleviationof poverty.
It is incorrect to say that all poverty reductionprogrammes have failed. The growth of themiddle class (which was virtually non-existentwhen India became a free nation in August1947) indicates that economic prosperity hasindeed been very impressive in India, but thedistribution of wealth is not at all even.
Government Programmes For Poverty Alleviation•Pradhan Mantri Gramoday Yojana (PMGY)•Indira Awas Yojana (IAY)•Swaranjayanti Gram Swarozgar Yojana(SGSY)•Employment Assurance Scheme (EAS)•Jawahar Gram Sammridhi Yojana (JGSY)•National Food For Work Programme•Valmiki Ambedkar Awas Yojana (VAMBAY)The Swaran Jayanti Shahkari Rozgar Yojana(SJSRY)
Government Programmes For Poverty Alleviation•Pradhan Mantri Gramoday Yojana(PMGY)Launched in December, 2000 to provide RoadConnectivity through good all weather roads to allthe eligible unconnected habitations in the RuralAreas by the end of Tenth Plan.• Indira Awas Yojana (IAY)Major Scheme for construction of Houses to begiven to the Poor, Free of Cost.
•Swaranjayanti Gram Swarozgar Yojana(SGSY)Launched in 2001.Aims ati. Providing Wage Employment in Rural Areasii. Food Securityiii. Creation of Durable Community, Social &Economic Assets.Employment Assurance Scheme (EAS) & JawaharGram Sammridhi Yojana (JGSY) were merged sinceApril, 2002.
•National Food For Work Programme Launched in November, 2004 in 150 backwardDistricts of the Country with the objective ofproviding more Opportunities of Wage Employment& ensuring certain Minimum Nutritional Levels forRural Poor.• Valmiki Ambedkar Awas Yojana (VAMBAY)Launched in 2001 to facilitate the constructionand upgradation of Dwelling Units for the SlumDwellers & Provides a Healthy & Enabling UrbanEnvironment through Community Toilets.
The Swaran Jayanti Shahkari Rozgar Yojana(SJSRY) Came into operation from December, 1997submerging the three earlier Urban PovertyAlleviation Programmes viz., Nehru Rozgar Yojana(NRY), Urban Basic Services Programmes (UBSB) &Prime Minister Integrated Urban PovertyEradication Programme(PMIUPEP).Seeks to provide Employment to the UrbanUnemployed or Under Employed Poor by encouragingthe setting up of Self‐employment Ventures orProvisions of Wage Employment.
What can we do? In our own small way, let us not waste resources, the fruit of hard earned tax payer’s money,which might better be used to eradicate the misery of others. Let us show that we care and realizethe dream of seeing a poverty free India.