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MINI-PROJECT REPORT
ON
“TO STUDY THE RURAL AND URBAN PROBLEM OF POVERTY IN INDIA”
UNDER
HUMAN RESOURCE MANAGEMENT
SUBMITTED BY:
Mr. SOHAL SHENDE
MBA (2nd SEMESTER)
ROLL NO: 2015AMBA1101051
IN THE PARTIAL FULFILLMENT AND REQUIREMENT FOR THE AWARD OF MBA
RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY (RTMNU)
UNDER THE GUIDANCE OF:
Dr. RAJSHREE ADMANE
DEPARTMENT OF MANAGEMENT STUDIES
G.H. RAISONI COLLEGE OF ENGINEERING
(An Autonomous Institute under UGC Act 1956 & Affiliated to Rashtrasant
Tukdoji Maharaj Nagpur University, Nagpur)
2015-2016
CERTIFICATE
I hereby certify that this project report entitled “TO STUDY RURAL AND URBAN
PROBLEM POVERTY IN INDIA” submitted by Mr. SOHAL SHENDE to the Department
of Management Studies, G.H. Raisoni College of Engineering, Nagpur for the award of Master
Of Business Administration is a bonafide in original research work carried out under my
guidance and supervision. It is a piece of research of a sufficiently high standard to warrant it
submission to the institute of the said degree. No part of this thesis has been submitted for any
degree or diploma, or published in any other form. The assistance and help rendered to the
researchers during the course of the investigation in the form of basic source material and
information have been duly acknowledged.
Prof. Dr. RAJSHREE ADMANE Prof. Dr. KAUSTAV MUKHERJEE
Research guide HOD
Dept. Of Management Studies
ACKNOWLEDGEMENT
“I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere thanks
to all of them.
I am highly indebted to the faculties for their guidance and constant supervision as well as for
providing necessary information regarding the project and also for their support in completing
the project.
I would like to express my gratitude towards my mentors of G.H. Raisoni College Of
Engineering for their kind co-operation and encouragement which helped me in completion of
this project.
I would like to express my special gratitude and thanks to industry persons for giving me such
attention and time.
My thanks and appreciation also goes to my colleagues in developing the project and people who
have willingly helped me out with their abilities.”
Submitted By:
Mr. SOHAL SHENDE
ROLL NO: 2015AMBA1101051
MBA (2nd SEMESTER)
DECLARATION
This project work is a presentation of our original research work. Wherever contributions of
others are involved, every effort is made to indicate this clearly, with due reference to the
literature, and acknowledgement of collaborative research and discussions.
Submitted By:
Mr. SOHAL SHENDE
Roll No: - 2015AMBA1101051
(MBA 2nd Semester)
INDEX
SR No. CONTENTS PAGE NO.
1) Abstract 1
2) Introduction 2
3) Aims & Objectives 4
4) Research
Methodology
6
5) What is Poverty? 10
6) Types of Poverty 17
7) What is Rural &
Urban Poverty?
19
8) Poverty an Urban
Problem
21
9) Statistics 24
10) Economic Reforms 28
11) Facts 31
12) How to end Poverty? 38
13) Conclusions 40
14) Bibliography 42
ABSTRACT
Approximately 896 million people in developing countries live on $1.90 a day or less. Between
1990 and 2008, efforts to impact this issue were successful, and the number of people living in
poverty decreased by nearly half, from 48% to 26%
Poverty, food prices and hunger are inextricably linked. Poverty causes hunger. Not every poor
person is hungry, but almost all hungry people are poor. Millions live with hunger and
malnourishment because they simply cannot afford to buy enough food, cannot afford nutritious
foods or cannot afford the farming supplies they need to grow enough good food of their own.
Hunger can be viewed as a dimension of extreme poverty. It is often called the most severe and
critical manifestation of poverty.
Rural households are the most heavily burdened by the consequences of poverty and hunger. In
addition to causing hunger, poverty limits a rural community’s ability to invest in its own
development. Over 30% of rural girls living in poverty are kept out of school to save money,
opposed to the 15% of urban girls not in school.
CHAPTER 1
INTRODUCTION
INTRODUCTION
Poverty in India is widespread, and a variety of methods have been proposed to measure it. The
official measure of Indian government, before 2005, was based on food security and it was
defined from per capita expenditure for a person to consume enough calories and be able to pay
for associated essentials to survive. Since 2005, Indian government adopted the Tendulkar
methodology which moved away from calorie anchor to a basket of goods and used rural, urban
and regional minimum expenditure per capita necessary to survive.
The World Bank has similarly revised its definition and benchmarks to measure poverty since
1990, with $2.25 per day income on purchasing power parity basis as the definition in use from
2005 to 2013. Some semi-economic and non-economic indices have also been proposed to
measure poverty in India; for example, the Multi-dimensional Poverty Index placed 33% weight
on number of years spent in school and education and 6.25% weight on financial condition of a
person, in order to determine if that person is poor.
CHAPTER 2
AIMS AND OBJECTIVES
AIMS AND OBJECTIVES
 To work with people and communities experiencing poverty to empower them to address
poverty.
 To support the development of policies which promote social justice and combat poverty.
 To raise awareness about poverty and encourage debate about solutions.
 To study and conduct research on social, civic, arts, literature, science, cultural, economic
aspects of the rural communities and promote them.
 To help, devise schemes and projects and help to execute them which will assist the
country towards elimination of poverty and misery.
CHAPTER 3
RESEARCH METHODOLOGY
RESEARCH METHDOLOGY
The process used to collect information and for the purpose of making business decisions. The
methodology include publication research, interviews, surveys and other research techniques,
and could include both present and historical information.
Research is a systematic collection and analysis of information that is ultimately used in evolving
decisions. All the stages in research must be carried out in logical manner it should also ensure
objectivity in every step. Research must not be a mere collection of statistical information. One
must justify the choice methodology of data collection analysis. And research must not be too
preoccupied with techniques, but instead convey the meaning of the results in human resource
term even when some advance sophisticated or advanced tools is used.
Methodology is often used in a narrow sense to refer to methods, technology or tools employed
for the collection data as well as its processing. This is also used sometimes to designate data
collection to arrive at the conclusion. Infects, it describes that what should have been done. It
provides answers to some of the major questions while search like what must be done, how it wil
be employed, how sources of data will be analysed to arrive at the conclusion
This research methodology is based on the secondary data collection method
The secondary data collected by internet, books, magazine. research involves a systematic
process that focuses on being objective and gathering a multitude of information for analysis so
that the researcher can come to a conclusion. This process is used in all research and evaluation
projects, regardless of the research method (scientific method of inquiry, evaluation research, or
action research). The process focuses on testing hunches or id systematic process.
In this process, the study is documented in such a way that another individual can conduct the
same study again. This is referred to as replicating the study. Any research done without
documenting the study so that others can review the process and results is not an investigation
using the scientific research process.
DATA COLLECTION:-
The research is based on the secondary data collection:-
Secondary data
Secondary data provides starting points for research, is readily available and has advantage of
low cost the internet provides different websites which is a very big storage of information
which supports primary data collection. This research is based on secondary data collection.
The sources used for secondary data collection are internet and newspapers.
Internet
This research process based on the secondary data collection by using one of source internet.
The internet helps to collect information in easy way.
Newspaper
Newspaper is one of the source of secondary data collectio
Questionnaires as method and income or consumption poverty as concepts probably fitted better
the realities of poor people in urban London and York a century ago, many with cash incomes
from one source of employment, than those of many poor people in developing countries today
with multiple sources of subsistence and livelihood. Income poverty as a concept, and poverty
line measures as a tool, come at a cost. They can dominate thinking and policy. They can be
brutally reductionist. They are limited to flows, not stocks. There is so much they do not capture
– assets, wealth, shelter, clothing, vulnerability, disability, access to education and services,
transport and communications, or the environmental and other effects of where poor people live
– which Booth saw as so significant. Nor do they touch other dimensions of illbeing like
violence, insecurity, discrimination, bad gender and other social relations, or powerlessness.
CHAPTER 4
WHAT IS POVERTY?
WHAT IS POVERTY?
The definition of poverty, according to Encyclopedia Britannica (2008):
“The state of one who lacks a usual or socially acceptable amount of money or material
possessions.
Over 200 years ago, Adam Smith (father of modern economics) saw in poorness not just a
problem of having access to the basic necessities to support one’s life, but also a social handicap.
In this sense poverty is about being able to follow the customs of a given society and country,
because it’s essential to be part of it.
Poverty as a social handicap
In many cases indeed, if you don’t have a suit, a nice shirt or any decent outfit, you’re very
unlikely to be offered a job and your situation will only get worse.
You now understand that giving a universal definition of poverty is quite impossible as it’s an
issue that depends on social norms. Secondly, the question of the definition of poverty refers to
the problem of measuring poverty.
But measuring poverty where ? In what context ? Surely, inner-city poverty is radically different
than rural poverty. And yet you're about to find out that governments often don't make the
difference.
ECONOMIC DEVELOPMENT
A definition of poverty by its solution
If economic development used to be associated with growth, it is now the spearhead of the war
on poverty. Therefore, thinking about what is poverty is nowadays becoming tied to thinking
about economic development’s hurdles.
That’s also the reason why the World Bank is now a self-proclaimed world fighter against
poverty, with its slogan: “Our dream is a world free of poverty”. The UN as well has its own
program aimed at reducing “by half, between 1990 and 2015, the proportion of people whose
income is less than $1 a day”: the Millennium Development Goals. So… let’s observe the
connection between the question "What is poverty?" and the notion of economic development.
Poor capital, labour and infrastructure
The general assumption is that the causes of poverty are rooted in a nation’s weak forces of
production, capital, labour etc. The definition of poverty is then characterized by a general lack
of infrastructure, institution, technology and education.
But these people forget that economic growth alone is not enough. There are plenty of examples
out there of insanely rich countries with insanely high levels of poverty. This is because poverty
also stems from flaws in the redistribution of a country’s wealth.
The 1% vs. the 99%
If the capital owners keep all the revenues to themselves and don’t raise salaries, then nothing
changes except that 1% of the population gets rich as hell. So what matters here is to look at the
mean of growth, to make sure that everyone participates in a country's growth and benefits from
it.
This makes the measurement of poverty an even more central and complex issue: you can’t just
look at a country’s GDP anymore. If a government is serious about improving its measurement
and definition of poverty, it should use a diversity of research tools - quantitative and qualitative
(such as field interviews) - so as to best get what is poverty in its country.
WHAT IS POVERTY: SCIENTIFIC AND POLITICAL
APPROACHES
Cost of life and food
The scientific tradition that sets poverty lines usually focuses on the cost of life and especially on
food. The reason is that the poorest of the poor (i.e. in poor countries) spend on average up to
75% of their budget on food.
Food or Internet
Those needs range from food, indeed, but also clothing, proper shelter (protection from snow or
tropical storms), but also goods that are necessary to one’s participation in social life: radio, TV,
Internet.
In many countries, several social services are now only available online. No computer? no
Internet? Say goodbye to social benefits, higher education and so on. Still you can rightfully
argue that you won’t die out of lack of Internet. Even if more and more people seem to think so.
How much food is enough
The result however is that too many countries keep on setting their national poverty lines along
with the cost of the necessary amount of food needed per day. How do they calculate that? The
international scientific norm is that an adult needs some 2,000 calories a day. But even this line
is somewhat wrong since it totally disregards the importance of a varied nutrition and the
different cost of eating fish, fruits and vegetables in opposition to simple wheat or cereal intake.
The lack of particular vitamins or minerals itself leads to countless diseases regarded as effects
of poverty. But where politics come into play and meddle in the question of what is poverty, is
that if governments were to take into account a diverse nutrition as well as essential goods, their
respective proportions of poor in the population would literally skyrocket, in rich and poor
countries alike.
LIMITS WITH THE POVERTY LINE
Poverty lines are useful to compare poverty from country to country and get a general picture of
the problem at the global level. The problem with poverty statistics and poverty lines is however
that their computing is widely contested by experts, who complain about the same political
manipulations.
The biggest issue with any poverty line such as the $1.25-a-day one is that anybody living with
less than $1.25 a day is indeed considered poor, but those earning $1.30 or $1.45 per day are not
counted as poor. There are millions and millions of them and they are considered safe from
precariousness. In that case, the most accurate poverty line ever would still be an inappropriate
measure to understand what is poverty.
CHAPTER 5
TYPES OF POVERTY
TYPES OF POVERTY
Institutional poverty
This is when the government is unable to get its citizens and private companies to pay their
taxes. This creates a poverty cycle whereby national institutions constantly lack money. Public
servants are then underpaid, the most qualified ones try to get a job elsewhere and the rest do not
have much motivation to do their job either. This is a great incentive to indulge in corruption...
The national and local authorities are in turn unable to maintain in good state or expand basic
infrastructures such as water pipes, as well as provide basic services like education or health
care. Finally the sum of all this makes the government powerless when facing issues of
regulating, promoting, or expanding sectors that would need basic infrastructure investment.
This whole aspect makes the private sector at large turn away from regular, official ways of
doing business. An informal sector often thrives on conditions like this and businesses find their
own way to get things done which means a lot more corruption.
Individual poverty
Non-existent legal employment means more risks and fewer rights for average workers. Usually
they won’t be covered for work-related accidents, no health care or pension plan, no contract, no
protection against any abuse at work: harassment, violence, unpaid overtime or simple
exploitation.
A good deal of individual poverty stems directly from consequences of institutional poverty,
such as the lack of access to the basic services mentioned above.
Lack of education fosters more poverty and impossibility to climb up the social ladder; restricted
access to health care causes diseases to spread wildly across the population. An unintended result
is a dangerous lack of confidence in the government.
In order to survive people have to rely on their wit and catch-as-catch-can skills, which can
definitely reinforce bonds within a community, but on a bigger scale it also nurtures an
environment where everyone tries to take advantage of one another and loses confidence in each
other. This last aspect of impoverishment shows that asking "what is poverty" can be boiled
down to an institutional failure, as most of individual poverty stem from a system's dysfunction.
CHAPTER 6
WHAT IS RURAL AND URBAN POVERTY?
WHAT IS RURAL AND URBAN POVERTY?
RURAL POVERTY:
In rural India a large chunk of people live in deep poverty and most of them are victims of
inadequate nutrition. The rural poor devote, on average, something like 80% of their expenditure
on food items. The absolute magnitude of the poor has been increasing by substantial amounts
and will continue to increase in both rural and urban Indian
URBAN POVERTY:
In urban areas, while the very poor show a percentage going to food almost identical to that of
their rural counterparts, the overall average is less at about 75% partly because as one moves
away from the very poor in the urban situation , the claim of rent upon resources is relatively
high. The most striking aspect of the consumption patterns of the poor both rural and urban is
for present purposes the extremely high proportion of their expenditure given on food.
CHAPTER 7
POVERTY AN URBAN PROBLEM
WHAT IS POVERTY? AN URBAN PROBLEM?
Urbanization is generally viewed as an essential factor in reducing poverty and mostly
developing an economy. All over the world cities are growing and more and more people live in
urban areas. Economic theories argue that this shift in world populations will, as a consequence,
help develop rural areas.
Incompetence and lack of city planning
While this might be true, another problem is also occurring: the growth of urban poverty, in
many cases for the plain reason that city planners have not been planning, not well enough at
least. And in most cases not enough accommodation was built for the few millions trying to live
in town, and no one either managed to create enough jobs for everybody.
However, if in some cases there have been economic opportunities for the newcomers, the
stacking up of people in slums is a geographical catastrophe in itself and an extremely effective
way to spread diseases and crime.
BELOW THE INDIAN POVERTY LINE
7
A "corrupt" poverty line
The poverty in India is measured by a poverty line that is probably one of the most disputed and
incessantly attacked measure in the world. What’s more, the World Bank’s controversial poverty
line has its origins in the Indian model! It is simply what some call a “starvation line”, a line that
accounts for the feeling of satiety: measured in calories.
CHAPTER 8
STATISTICS
Poverty in India - Statistics
 50% of Indians don’t have proper shelter.
 70% don’t have access to decent toilets (which inspires a multitude of bacteria to host
their own disease party).
 35% of households don’t have a nearby water source.
 85% of villages don’t have a secondary school (how can this be the same government
claiming 9% annual growth?).
 Over 40% of these same villages don’t have proper roads connecting them.
18%
25%
13%
30%
14%
Sales
PROPER SHELTER DECENT TOILETS WATER SOURCE SECONDARY SCHOOL PROPER ROADS
The forgotten poor
There’s also the problem of huge segments of the population that are not included in the official
poverty count, namely the Dalits (the untouchables), women and minority ethnic tribes.
They’re groups that are marginalized in the society and it’s more convenient for politicians to
announce massive reductions in poverty by simply not including them in a census. It is easier to
pretend they do not exist at all. However, it is obviously difficult to change the way an entire
country and its society functions.
AGRICULTURE, HUNGER AND RURAL POVERTY
Developing agriculture - A priority
Since there are so many people working in agriculture and living in rural areas, the agricultural
sector has an unrivaled priority in policies aimed at poverty in India.
And because there is a simple and straightforward link between rural poverty and agricultural
productivity, the end goal is to raise the productivity per person in order to alleviate poverty. As
a consequence policies should focus on spurring investment and technological progress.
Obstacles to reforming agriculture
Okay, that’s the conventional wisdom in approaching rural poverty and in theory there was really
no problem viewing it in this way. But India faced new complications with this strategy. Firstly,
this kind of reasoning implies many things: to increase productivity, India needed re-distributive
land reforms from its traditional system, then subsidies were needed to cater to poor farmers’
needs for new inputs (better seeds, fertilizers, pesticides, machinery…) and here again the results
of the policy were limited.
Worst of all, after the 1991 economic reforms, subsidies actually went down because of the
government’s fiscal deficit. And rural poverty subsequently went up, also due to other social
safety nets disappearing concurrently. Secondly, the reforms were thwarted by the persistence of
the social structure in rural India. Marginalization and exploitation for instance have become part
of the system, which resisted land reform and logic of entrepreneurship.
Alleviating poverty in India: a few successes
On the bright side, when anti-poverty programs did work, they’ve had a great influence on the
social structure and helped people move up the social ladder. The problem is mostly that reforms
have been conservative and incomplete while something more direct and “beefy” was needed.
Consistent poverty reduction in India has failed, especially in largely agricultural states such as
Madhya Pradesh and Uttar Pradesh, because investments in rural literacy, education, technology
and infrastructure were insubstantial. This explains the structure of the Indian economy: as
agriculture evolves, it frees labor for manufacturing and commercial industries, but since this
hasn’t happened the country has focused on the services sector instead, which employs far fewer
people. And thus rural poverty in India has subsisted up until today while at the same time the
services sector accounts for most of the country's GDP.
CHAPTER 9
ECONOMIC REFORMS
ECONOMIC REFORMS AND CAUSES OF POVERTY
Limited reforms: what a waste
Of the post-independence reforms that has achieved the most in terms of reducing poverty in
India, land reforms get the winning prize. By suppressing intermediaries, simplifying and
standardizing the system of tenancy, production relations were made more efficient and rural
wages went up.
But if they had actually redistributed the land - as opposed to preserving the nearly- feudal
system plus incentives and subsidies for big land owners - they could have really eradicated one
of the causes of poverty in India.
Globalization's effects on poverty in India
1991 was the year that India embraced globalization and started, like many countries, its market
liberalization coupled with privatization and deregulation while ensuring macroeconomic
stability. Where China has been one of the few countries that has successfully managed their
transition to the global market, the picture is more mixed with India, with lots of ups and downs.
Weak democracy and economic opening
The Indian society is so diverse that the rapid and unequal growth has brought overwhelming
inequalities which in a democratic country are rather dangerous. Truth be told: it’s dangerous
anywhere. But people have more opportunities to voice their concerns in a democracy, and
reaching a consensus on a long-term goal can prove an impossible mission.
Tensions between social groups make it impossible to negotiate, make concessions and solve
problems. That’s why in most cases reforms in rural areas have been mostly half-measures and
limited short-term solutions that have hardly made a dent in poverty reduction in India.
On the other hand, reforms at the macro level encouraging the development of new sectors and
exchanges with the world have been successful and benefited mostly urban populations and the
corporate sector. Many surveys confirm that the population is convinced that the reforms have
benefited mostly the rich while the rest still lack access to basic services.
CHAPTER 10
FACTS
FACTS ABOUT POVERTY IN INDIA
1) India is estimated to have one-third of the world’s poor.
2) In 2012, 37 percent of India’s 1.21 billion people fell below the international poverty line,
which is $1.25 a day, according to the Indian Planning Commission.
3) According to 2010 World Bank data, India’s labor participation rate (for those individuals
over the age of 15) totaled 55.6 percent; however, the percent of wage and salaried workers of
those employed only equaled about 18.1 percent.
4) According to the World Health Organization, it is estimated that 98,000 people in India die
from diarrhea each year. The lack of adequate sanitation, nutrition and safe water has significant
negative health impacts.
5) Families can’t grow enough crops to feed themselves each year due to the lack of new
farming techniques, difficult weather conditions, poor storage conditions, misuse of insecticides
and lack of water.
6) A third of the world’s malnourished children live in India according to UNICEF, where “46
percent of all children below the age of three are too small for their age, 47 percent are
underweight and at least 16 percent are wasted.”
7) India has the highest rate of child marriage in the world, where one in three girls become
child brides. Many girls are married off at an early age, become servants or even prostitutes just
to survive.
8) The poorest parts of India are Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand,
Orissa, Chhattisgarh and West Bengal.
9) According to the World Bank, in 2009 an estimated 2.4 million were living with HIV/AIDS,
with children (less than 15-years-old) accounting for 3.5 percent and 83 percent making up the
age group 15-49 years. Around 39 percent of those infected were women.
10) Men are more than twice as likely as women to hold salaried jobs in the large and medium-
sized towns that are increasingly important centers of economic life in the Indian countryside. As
such, in 2013 women only earned 62 percent of a men’s salary for equal work.
GLOBAL POVERTY FACTS
 Every day, poverty kills more than 50,000 innocent people - 18 million every year.
Source: World Health Organization (2004 report, most recent available, current deaths may be far higher due to global economic setbacks and
the rising cost of food)
 These statistics account for one third of all human deaths. More people die as a result of
extreme poverty than of any other cause.
Source: WHO 2008
 1.37 billion people live on less than $1.25 a day, and 2.56 billion live on less than $2 a
day. Moreover, 5.05 billion people (more than 80 percent of the world's population) live
on less than $10 a day.
Source: World Bank 2005
 Because of the global economic slowdown and rising food prices, FAO projects 100
million more people will suffer from poverty and chronic hunger by the end of 2009 - an
11% increase from 2008.
Source: World Food Program 2009
 Extreme poverty is increasingly concentrated in fragile states and territories, defined as
those with very weak institutions and poor policies. These areas are home to 9 percent of
the population living in developing countries, but nearly 27 percent of the extreme poor.
These places are often sources of war, terrorism and refugee crises.
Source: World Bank, Global Monitoring Report 2007
HUNGER AND POVERTY
 8 million people die from lack of food and nutrition every year - about 24,000 deaths
each day.
Source: FAO Hunger Report 2008
 Every year, 5.8 million children die from hunger related-causes. Every day, that’s 16,000
young lives lost.
Source: FAO Hunger Report 2008
 For the first time in history, over 1.02 billion people do not have enough to eat. That’s
one sixth of humanity - more than the population of the United States, Canada and the
European Union combined.
Source: FAO Hunger Report 2008
 There are around one billion hungry people in the world: 642 million live in Asia and the
Pacific, 265 million in Sub-Saharan Africa, 53 million in Latin America and the
Caribbean, 42 in the Near East and North Africa. Fifteen million people in developed
countries go hungry, around 1.5 percent of the total.
Source: FAO 2010
 The number of undernourished people in the world increased by 75 million in 2007 and
40 million in 2008, largely due to higher food prices.
Source: FAO 2008
INEQUALITY AND POVERTY
 The GDP (Gross Domestic Product, total of everyone's income) in the poorest 48 nations
is less than the combined wealth of the world's three richest people.
Source: Global Issues Website
 20% of the population in developed nations consumes 86% of the world's goods.
Source: Global Issues Website
 Recent studies find that prices paid by the poor in developing countries are much higher
than previous thought. They cannot buy as much food with $1 as they can in a country
like United States. This shows that they're even poorer than reported in earlier studies.
Source: World Bank 2009
 The poorest 40% of the world’s population accounts for 5% of the global income. The
richest 20% of world’s population accounts for three-quarters of world income.
Source: Global Issues Website
 The average yearly income of the richest 20% of people in the world is about 50 times
greater than the yearly income of the poorest 20% of people.
Source: Human Development Report 2005
CHILDREN AND POVERTY
 Of the 2.2 billion children in the world, 600 million
are victims of extreme poverty.
Source: UNICEF 2008
 Each year, over 10 million children in developing
countries die before the age of five. More than half of
these deaths are attributed to malnutrition, which
claims a child's life every 5 seconds.
Sources: World Development Indicators 2007, The United Nations' World Food
Program
 Under nutrition contributes to 53 percent of the 9.7 million* deaths of children under five
each year in developing countries
 Every year more than 10 million children die of hunger and preventable diseases - that’s
over 30,000 per day, or one every 3 seconds.
Source: Global Poverty Facts
 Approximately 146 million children in developing countries, about 1 out of 4, are
underweight.
Source: The United Nations' World Food Program
 An estimated 250 million preschool children are vitamin A deficient. An estimated
250,000 to 500,000 vitamin A-deficient children become blind every year. Half of them
die within 12 months of losing their sight. This is easily corrected with an inexpensive
vitamin supplement.
Source: World Health Organization
EDUCATION AND POVERTY
 Over the last decade, the average primary completion rate (completing a full course of
primary schooling) has risen from 62 percent to 72 percent.
Source: World Bank, World Development Indicators 2007
 Still, more than 115 million children are out of school - and some 62 million of them are
girls.
Source: United Nations Development Programme (UNDP), The 2006 Human Development Report
 Less than 1 percent of what the world spends each year on weapons could put every child
in school.
Source: UNICEF
CHAPTER 11
HOW TO END POVERTY?
HOW TO END POVERTY?
 To help the poor create their own businesses so that they may develop their own incomes.
 To create jobs that would allow those in poverty to increase their incomes through wages
or salaries.
 Selling products to those living in poverty would help them earn or save money.
 Increase in per capita food production.
 Increase in production of essential items.
 To tackle the problem of income disparity.
 To tackle the problem of black money.
 Massive investment in public sector.
CHAPTER 12
CONCLUSIONS
CONCLUSIONS
Hunger in India
India, with a population of over 1.2 billion, has seen tremendous growth in the past two decades.
Gross Domestic Product has increased 4.5 times and per capita consumption has increased 3
times. Similarly, food grain production has increased almost 2 times. However, despite
phenomenal industrial and economic growth, while India produces sufficient food to feed its
population, it is unable to provide access to food to a large number of people, especially women
and children.
State of Hunger in India
Hunger in India is a complex issue. It is widespread and the causes are different across various
regions. According to latest FAO estimates in ‘The State of Food Insecurity in the World, 2015”
report, 194.6 million people are undernourished in India. By this measure India is home to a
quarter of the undernourished population in the world. Also 51% of women between 15 to 59
years of age are anaemic and 44% of children under 5 are underweight. Malnourished children
have a higher risk of death from common childhood illnesses such as diarrhea, pneumonia, and
malaria. The Global Hunger Index 2014 ranks India at 55 out of 76 countries on the basis of
three leading indicators -- prevalence of underweight children under 5 years, under 5 child
mortality rate, and the proportion of undernourished in the population.
On the other hand, it is estimated that nearly 40 percent of the fruits and vegetables, and 20
percent of the food grains that are produced are lost due to inefficient supply chain management
and do not reach the consumer markets.
CHAPTER 13
BIBLIOGRAPHY
BIBLIOGRAPHY
1) INDIA FOODBANKING NETWORK
2) HOW TO END GLOBAL POVERTY? : THE BORGEN PROJECT
3) WIKIPEDIA
4) http://www.importantindia.com/783/poverty-in-india/

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Poverty project

  • 1. MINI-PROJECT REPORT ON “TO STUDY THE RURAL AND URBAN PROBLEM OF POVERTY IN INDIA” UNDER HUMAN RESOURCE MANAGEMENT SUBMITTED BY: Mr. SOHAL SHENDE MBA (2nd SEMESTER) ROLL NO: 2015AMBA1101051 IN THE PARTIAL FULFILLMENT AND REQUIREMENT FOR THE AWARD OF MBA RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY (RTMNU) UNDER THE GUIDANCE OF: Dr. RAJSHREE ADMANE DEPARTMENT OF MANAGEMENT STUDIES G.H. RAISONI COLLEGE OF ENGINEERING (An Autonomous Institute under UGC Act 1956 & Affiliated to Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur) 2015-2016
  • 2. CERTIFICATE I hereby certify that this project report entitled “TO STUDY RURAL AND URBAN PROBLEM POVERTY IN INDIA” submitted by Mr. SOHAL SHENDE to the Department of Management Studies, G.H. Raisoni College of Engineering, Nagpur for the award of Master Of Business Administration is a bonafide in original research work carried out under my guidance and supervision. It is a piece of research of a sufficiently high standard to warrant it submission to the institute of the said degree. No part of this thesis has been submitted for any degree or diploma, or published in any other form. The assistance and help rendered to the researchers during the course of the investigation in the form of basic source material and information have been duly acknowledged. Prof. Dr. RAJSHREE ADMANE Prof. Dr. KAUSTAV MUKHERJEE Research guide HOD Dept. Of Management Studies
  • 3. ACKNOWLEDGEMENT “I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to the faculties for their guidance and constant supervision as well as for providing necessary information regarding the project and also for their support in completing the project. I would like to express my gratitude towards my mentors of G.H. Raisoni College Of Engineering for their kind co-operation and encouragement which helped me in completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciation also goes to my colleagues in developing the project and people who have willingly helped me out with their abilities.” Submitted By: Mr. SOHAL SHENDE ROLL NO: 2015AMBA1101051 MBA (2nd SEMESTER)
  • 4. DECLARATION This project work is a presentation of our original research work. Wherever contributions of others are involved, every effort is made to indicate this clearly, with due reference to the literature, and acknowledgement of collaborative research and discussions. Submitted By: Mr. SOHAL SHENDE Roll No: - 2015AMBA1101051 (MBA 2nd Semester)
  • 5. INDEX SR No. CONTENTS PAGE NO. 1) Abstract 1 2) Introduction 2 3) Aims & Objectives 4 4) Research Methodology 6 5) What is Poverty? 10 6) Types of Poverty 17 7) What is Rural & Urban Poverty? 19 8) Poverty an Urban Problem 21 9) Statistics 24 10) Economic Reforms 28 11) Facts 31 12) How to end Poverty? 38 13) Conclusions 40 14) Bibliography 42
  • 6. ABSTRACT Approximately 896 million people in developing countries live on $1.90 a day or less. Between 1990 and 2008, efforts to impact this issue were successful, and the number of people living in poverty decreased by nearly half, from 48% to 26% Poverty, food prices and hunger are inextricably linked. Poverty causes hunger. Not every poor person is hungry, but almost all hungry people are poor. Millions live with hunger and malnourishment because they simply cannot afford to buy enough food, cannot afford nutritious foods or cannot afford the farming supplies they need to grow enough good food of their own. Hunger can be viewed as a dimension of extreme poverty. It is often called the most severe and critical manifestation of poverty. Rural households are the most heavily burdened by the consequences of poverty and hunger. In addition to causing hunger, poverty limits a rural community’s ability to invest in its own development. Over 30% of rural girls living in poverty are kept out of school to save money, opposed to the 15% of urban girls not in school.
  • 8. INTRODUCTION Poverty in India is widespread, and a variety of methods have been proposed to measure it. The official measure of Indian government, before 2005, was based on food security and it was defined from per capita expenditure for a person to consume enough calories and be able to pay for associated essentials to survive. Since 2005, Indian government adopted the Tendulkar methodology which moved away from calorie anchor to a basket of goods and used rural, urban and regional minimum expenditure per capita necessary to survive. The World Bank has similarly revised its definition and benchmarks to measure poverty since 1990, with $2.25 per day income on purchasing power parity basis as the definition in use from 2005 to 2013. Some semi-economic and non-economic indices have also been proposed to measure poverty in India; for example, the Multi-dimensional Poverty Index placed 33% weight on number of years spent in school and education and 6.25% weight on financial condition of a person, in order to determine if that person is poor.
  • 9. CHAPTER 2 AIMS AND OBJECTIVES
  • 10. AIMS AND OBJECTIVES  To work with people and communities experiencing poverty to empower them to address poverty.  To support the development of policies which promote social justice and combat poverty.  To raise awareness about poverty and encourage debate about solutions.  To study and conduct research on social, civic, arts, literature, science, cultural, economic aspects of the rural communities and promote them.  To help, devise schemes and projects and help to execute them which will assist the country towards elimination of poverty and misery.
  • 12. RESEARCH METHDOLOGY The process used to collect information and for the purpose of making business decisions. The methodology include publication research, interviews, surveys and other research techniques, and could include both present and historical information. Research is a systematic collection and analysis of information that is ultimately used in evolving decisions. All the stages in research must be carried out in logical manner it should also ensure objectivity in every step. Research must not be a mere collection of statistical information. One must justify the choice methodology of data collection analysis. And research must not be too preoccupied with techniques, but instead convey the meaning of the results in human resource term even when some advance sophisticated or advanced tools is used. Methodology is often used in a narrow sense to refer to methods, technology or tools employed for the collection data as well as its processing. This is also used sometimes to designate data collection to arrive at the conclusion. Infects, it describes that what should have been done. It provides answers to some of the major questions while search like what must be done, how it wil be employed, how sources of data will be analysed to arrive at the conclusion This research methodology is based on the secondary data collection method The secondary data collected by internet, books, magazine. research involves a systematic process that focuses on being objective and gathering a multitude of information for analysis so that the researcher can come to a conclusion. This process is used in all research and evaluation projects, regardless of the research method (scientific method of inquiry, evaluation research, or action research). The process focuses on testing hunches or id systematic process. In this process, the study is documented in such a way that another individual can conduct the same study again. This is referred to as replicating the study. Any research done without documenting the study so that others can review the process and results is not an investigation using the scientific research process.
  • 13. DATA COLLECTION:- The research is based on the secondary data collection:- Secondary data Secondary data provides starting points for research, is readily available and has advantage of low cost the internet provides different websites which is a very big storage of information which supports primary data collection. This research is based on secondary data collection.
  • 14. The sources used for secondary data collection are internet and newspapers. Internet This research process based on the secondary data collection by using one of source internet. The internet helps to collect information in easy way. Newspaper Newspaper is one of the source of secondary data collectio Questionnaires as method and income or consumption poverty as concepts probably fitted better the realities of poor people in urban London and York a century ago, many with cash incomes from one source of employment, than those of many poor people in developing countries today with multiple sources of subsistence and livelihood. Income poverty as a concept, and poverty line measures as a tool, come at a cost. They can dominate thinking and policy. They can be brutally reductionist. They are limited to flows, not stocks. There is so much they do not capture – assets, wealth, shelter, clothing, vulnerability, disability, access to education and services, transport and communications, or the environmental and other effects of where poor people live – which Booth saw as so significant. Nor do they touch other dimensions of illbeing like violence, insecurity, discrimination, bad gender and other social relations, or powerlessness.
  • 15. CHAPTER 4 WHAT IS POVERTY?
  • 16. WHAT IS POVERTY? The definition of poverty, according to Encyclopedia Britannica (2008): “The state of one who lacks a usual or socially acceptable amount of money or material possessions. Over 200 years ago, Adam Smith (father of modern economics) saw in poorness not just a problem of having access to the basic necessities to support one’s life, but also a social handicap. In this sense poverty is about being able to follow the customs of a given society and country, because it’s essential to be part of it. Poverty as a social handicap In many cases indeed, if you don’t have a suit, a nice shirt or any decent outfit, you’re very unlikely to be offered a job and your situation will only get worse. You now understand that giving a universal definition of poverty is quite impossible as it’s an issue that depends on social norms. Secondly, the question of the definition of poverty refers to the problem of measuring poverty. But measuring poverty where ? In what context ? Surely, inner-city poverty is radically different than rural poverty. And yet you're about to find out that governments often don't make the difference.
  • 17. ECONOMIC DEVELOPMENT A definition of poverty by its solution If economic development used to be associated with growth, it is now the spearhead of the war on poverty. Therefore, thinking about what is poverty is nowadays becoming tied to thinking about economic development’s hurdles. That’s also the reason why the World Bank is now a self-proclaimed world fighter against poverty, with its slogan: “Our dream is a world free of poverty”. The UN as well has its own program aimed at reducing “by half, between 1990 and 2015, the proportion of people whose income is less than $1 a day”: the Millennium Development Goals. So… let’s observe the connection between the question "What is poverty?" and the notion of economic development.
  • 18. Poor capital, labour and infrastructure The general assumption is that the causes of poverty are rooted in a nation’s weak forces of production, capital, labour etc. The definition of poverty is then characterized by a general lack of infrastructure, institution, technology and education. But these people forget that economic growth alone is not enough. There are plenty of examples out there of insanely rich countries with insanely high levels of poverty. This is because poverty also stems from flaws in the redistribution of a country’s wealth. The 1% vs. the 99% If the capital owners keep all the revenues to themselves and don’t raise salaries, then nothing changes except that 1% of the population gets rich as hell. So what matters here is to look at the mean of growth, to make sure that everyone participates in a country's growth and benefits from it. This makes the measurement of poverty an even more central and complex issue: you can’t just look at a country’s GDP anymore. If a government is serious about improving its measurement and definition of poverty, it should use a diversity of research tools - quantitative and qualitative (such as field interviews) - so as to best get what is poverty in its country.
  • 19. WHAT IS POVERTY: SCIENTIFIC AND POLITICAL APPROACHES Cost of life and food The scientific tradition that sets poverty lines usually focuses on the cost of life and especially on food. The reason is that the poorest of the poor (i.e. in poor countries) spend on average up to 75% of their budget on food. Food or Internet Those needs range from food, indeed, but also clothing, proper shelter (protection from snow or tropical storms), but also goods that are necessary to one’s participation in social life: radio, TV, Internet. In many countries, several social services are now only available online. No computer? no Internet? Say goodbye to social benefits, higher education and so on. Still you can rightfully argue that you won’t die out of lack of Internet. Even if more and more people seem to think so.
  • 20. How much food is enough The result however is that too many countries keep on setting their national poverty lines along with the cost of the necessary amount of food needed per day. How do they calculate that? The international scientific norm is that an adult needs some 2,000 calories a day. But even this line is somewhat wrong since it totally disregards the importance of a varied nutrition and the different cost of eating fish, fruits and vegetables in opposition to simple wheat or cereal intake. The lack of particular vitamins or minerals itself leads to countless diseases regarded as effects of poverty. But where politics come into play and meddle in the question of what is poverty, is that if governments were to take into account a diverse nutrition as well as essential goods, their respective proportions of poor in the population would literally skyrocket, in rich and poor countries alike. LIMITS WITH THE POVERTY LINE Poverty lines are useful to compare poverty from country to country and get a general picture of the problem at the global level. The problem with poverty statistics and poverty lines is however that their computing is widely contested by experts, who complain about the same political manipulations. The biggest issue with any poverty line such as the $1.25-a-day one is that anybody living with less than $1.25 a day is indeed considered poor, but those earning $1.30 or $1.45 per day are not counted as poor. There are millions and millions of them and they are considered safe from precariousness. In that case, the most accurate poverty line ever would still be an inappropriate measure to understand what is poverty.
  • 22. TYPES OF POVERTY Institutional poverty This is when the government is unable to get its citizens and private companies to pay their taxes. This creates a poverty cycle whereby national institutions constantly lack money. Public servants are then underpaid, the most qualified ones try to get a job elsewhere and the rest do not have much motivation to do their job either. This is a great incentive to indulge in corruption... The national and local authorities are in turn unable to maintain in good state or expand basic infrastructures such as water pipes, as well as provide basic services like education or health care. Finally the sum of all this makes the government powerless when facing issues of regulating, promoting, or expanding sectors that would need basic infrastructure investment. This whole aspect makes the private sector at large turn away from regular, official ways of doing business. An informal sector often thrives on conditions like this and businesses find their own way to get things done which means a lot more corruption. Individual poverty Non-existent legal employment means more risks and fewer rights for average workers. Usually they won’t be covered for work-related accidents, no health care or pension plan, no contract, no protection against any abuse at work: harassment, violence, unpaid overtime or simple exploitation. A good deal of individual poverty stems directly from consequences of institutional poverty, such as the lack of access to the basic services mentioned above. Lack of education fosters more poverty and impossibility to climb up the social ladder; restricted access to health care causes diseases to spread wildly across the population. An unintended result
  • 23. is a dangerous lack of confidence in the government. In order to survive people have to rely on their wit and catch-as-catch-can skills, which can definitely reinforce bonds within a community, but on a bigger scale it also nurtures an environment where everyone tries to take advantage of one another and loses confidence in each other. This last aspect of impoverishment shows that asking "what is poverty" can be boiled down to an institutional failure, as most of individual poverty stem from a system's dysfunction.
  • 24. CHAPTER 6 WHAT IS RURAL AND URBAN POVERTY?
  • 25. WHAT IS RURAL AND URBAN POVERTY? RURAL POVERTY: In rural India a large chunk of people live in deep poverty and most of them are victims of inadequate nutrition. The rural poor devote, on average, something like 80% of their expenditure on food items. The absolute magnitude of the poor has been increasing by substantial amounts and will continue to increase in both rural and urban Indian URBAN POVERTY: In urban areas, while the very poor show a percentage going to food almost identical to that of their rural counterparts, the overall average is less at about 75% partly because as one moves away from the very poor in the urban situation , the claim of rent upon resources is relatively high. The most striking aspect of the consumption patterns of the poor both rural and urban is for present purposes the extremely high proportion of their expenditure given on food.
  • 26. CHAPTER 7 POVERTY AN URBAN PROBLEM
  • 27. WHAT IS POVERTY? AN URBAN PROBLEM? Urbanization is generally viewed as an essential factor in reducing poverty and mostly developing an economy. All over the world cities are growing and more and more people live in urban areas. Economic theories argue that this shift in world populations will, as a consequence, help develop rural areas. Incompetence and lack of city planning While this might be true, another problem is also occurring: the growth of urban poverty, in many cases for the plain reason that city planners have not been planning, not well enough at least. And in most cases not enough accommodation was built for the few millions trying to live in town, and no one either managed to create enough jobs for everybody. However, if in some cases there have been economic opportunities for the newcomers, the stacking up of people in slums is a geographical catastrophe in itself and an extremely effective way to spread diseases and crime.
  • 28. BELOW THE INDIAN POVERTY LINE 7 A "corrupt" poverty line The poverty in India is measured by a poverty line that is probably one of the most disputed and incessantly attacked measure in the world. What’s more, the World Bank’s controversial poverty line has its origins in the Indian model! It is simply what some call a “starvation line”, a line that accounts for the feeling of satiety: measured in calories.
  • 30. Poverty in India - Statistics  50% of Indians don’t have proper shelter.  70% don’t have access to decent toilets (which inspires a multitude of bacteria to host their own disease party).  35% of households don’t have a nearby water source.  85% of villages don’t have a secondary school (how can this be the same government claiming 9% annual growth?).  Over 40% of these same villages don’t have proper roads connecting them. 18% 25% 13% 30% 14% Sales PROPER SHELTER DECENT TOILETS WATER SOURCE SECONDARY SCHOOL PROPER ROADS
  • 31. The forgotten poor There’s also the problem of huge segments of the population that are not included in the official poverty count, namely the Dalits (the untouchables), women and minority ethnic tribes. They’re groups that are marginalized in the society and it’s more convenient for politicians to announce massive reductions in poverty by simply not including them in a census. It is easier to pretend they do not exist at all. However, it is obviously difficult to change the way an entire country and its society functions. AGRICULTURE, HUNGER AND RURAL POVERTY Developing agriculture - A priority Since there are so many people working in agriculture and living in rural areas, the agricultural sector has an unrivaled priority in policies aimed at poverty in India. And because there is a simple and straightforward link between rural poverty and agricultural productivity, the end goal is to raise the productivity per person in order to alleviate poverty. As a consequence policies should focus on spurring investment and technological progress. Obstacles to reforming agriculture Okay, that’s the conventional wisdom in approaching rural poverty and in theory there was really no problem viewing it in this way. But India faced new complications with this strategy. Firstly, this kind of reasoning implies many things: to increase productivity, India needed re-distributive land reforms from its traditional system, then subsidies were needed to cater to poor farmers’ needs for new inputs (better seeds, fertilizers, pesticides, machinery…) and here again the results of the policy were limited.
  • 32. Worst of all, after the 1991 economic reforms, subsidies actually went down because of the government’s fiscal deficit. And rural poverty subsequently went up, also due to other social safety nets disappearing concurrently. Secondly, the reforms were thwarted by the persistence of the social structure in rural India. Marginalization and exploitation for instance have become part of the system, which resisted land reform and logic of entrepreneurship. Alleviating poverty in India: a few successes On the bright side, when anti-poverty programs did work, they’ve had a great influence on the social structure and helped people move up the social ladder. The problem is mostly that reforms have been conservative and incomplete while something more direct and “beefy” was needed. Consistent poverty reduction in India has failed, especially in largely agricultural states such as Madhya Pradesh and Uttar Pradesh, because investments in rural literacy, education, technology and infrastructure were insubstantial. This explains the structure of the Indian economy: as agriculture evolves, it frees labor for manufacturing and commercial industries, but since this hasn’t happened the country has focused on the services sector instead, which employs far fewer people. And thus rural poverty in India has subsisted up until today while at the same time the services sector accounts for most of the country's GDP.
  • 34. ECONOMIC REFORMS AND CAUSES OF POVERTY Limited reforms: what a waste Of the post-independence reforms that has achieved the most in terms of reducing poverty in India, land reforms get the winning prize. By suppressing intermediaries, simplifying and standardizing the system of tenancy, production relations were made more efficient and rural wages went up. But if they had actually redistributed the land - as opposed to preserving the nearly- feudal system plus incentives and subsidies for big land owners - they could have really eradicated one of the causes of poverty in India.
  • 35. Globalization's effects on poverty in India 1991 was the year that India embraced globalization and started, like many countries, its market liberalization coupled with privatization and deregulation while ensuring macroeconomic stability. Where China has been one of the few countries that has successfully managed their transition to the global market, the picture is more mixed with India, with lots of ups and downs. Weak democracy and economic opening The Indian society is so diverse that the rapid and unequal growth has brought overwhelming inequalities which in a democratic country are rather dangerous. Truth be told: it’s dangerous anywhere. But people have more opportunities to voice their concerns in a democracy, and reaching a consensus on a long-term goal can prove an impossible mission. Tensions between social groups make it impossible to negotiate, make concessions and solve problems. That’s why in most cases reforms in rural areas have been mostly half-measures and limited short-term solutions that have hardly made a dent in poverty reduction in India. On the other hand, reforms at the macro level encouraging the development of new sectors and exchanges with the world have been successful and benefited mostly urban populations and the corporate sector. Many surveys confirm that the population is convinced that the reforms have benefited mostly the rich while the rest still lack access to basic services.
  • 37. FACTS ABOUT POVERTY IN INDIA 1) India is estimated to have one-third of the world’s poor. 2) In 2012, 37 percent of India’s 1.21 billion people fell below the international poverty line, which is $1.25 a day, according to the Indian Planning Commission. 3) According to 2010 World Bank data, India’s labor participation rate (for those individuals over the age of 15) totaled 55.6 percent; however, the percent of wage and salaried workers of those employed only equaled about 18.1 percent. 4) According to the World Health Organization, it is estimated that 98,000 people in India die from diarrhea each year. The lack of adequate sanitation, nutrition and safe water has significant negative health impacts. 5) Families can’t grow enough crops to feed themselves each year due to the lack of new farming techniques, difficult weather conditions, poor storage conditions, misuse of insecticides and lack of water. 6) A third of the world’s malnourished children live in India according to UNICEF, where “46 percent of all children below the age of three are too small for their age, 47 percent are underweight and at least 16 percent are wasted.” 7) India has the highest rate of child marriage in the world, where one in three girls become child brides. Many girls are married off at an early age, become servants or even prostitutes just to survive. 8) The poorest parts of India are Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, Orissa, Chhattisgarh and West Bengal. 9) According to the World Bank, in 2009 an estimated 2.4 million were living with HIV/AIDS, with children (less than 15-years-old) accounting for 3.5 percent and 83 percent making up the age group 15-49 years. Around 39 percent of those infected were women.
  • 38. 10) Men are more than twice as likely as women to hold salaried jobs in the large and medium- sized towns that are increasingly important centers of economic life in the Indian countryside. As such, in 2013 women only earned 62 percent of a men’s salary for equal work. GLOBAL POVERTY FACTS  Every day, poverty kills more than 50,000 innocent people - 18 million every year. Source: World Health Organization (2004 report, most recent available, current deaths may be far higher due to global economic setbacks and the rising cost of food)  These statistics account for one third of all human deaths. More people die as a result of extreme poverty than of any other cause. Source: WHO 2008  1.37 billion people live on less than $1.25 a day, and 2.56 billion live on less than $2 a day. Moreover, 5.05 billion people (more than 80 percent of the world's population) live on less than $10 a day. Source: World Bank 2005  Because of the global economic slowdown and rising food prices, FAO projects 100 million more people will suffer from poverty and chronic hunger by the end of 2009 - an 11% increase from 2008. Source: World Food Program 2009  Extreme poverty is increasingly concentrated in fragile states and territories, defined as those with very weak institutions and poor policies. These areas are home to 9 percent of the population living in developing countries, but nearly 27 percent of the extreme poor. These places are often sources of war, terrorism and refugee crises. Source: World Bank, Global Monitoring Report 2007
  • 39. HUNGER AND POVERTY  8 million people die from lack of food and nutrition every year - about 24,000 deaths each day. Source: FAO Hunger Report 2008  Every year, 5.8 million children die from hunger related-causes. Every day, that’s 16,000 young lives lost. Source: FAO Hunger Report 2008  For the first time in history, over 1.02 billion people do not have enough to eat. That’s one sixth of humanity - more than the population of the United States, Canada and the European Union combined. Source: FAO Hunger Report 2008  There are around one billion hungry people in the world: 642 million live in Asia and the Pacific, 265 million in Sub-Saharan Africa, 53 million in Latin America and the Caribbean, 42 in the Near East and North Africa. Fifteen million people in developed countries go hungry, around 1.5 percent of the total. Source: FAO 2010  The number of undernourished people in the world increased by 75 million in 2007 and 40 million in 2008, largely due to higher food prices. Source: FAO 2008
  • 40. INEQUALITY AND POVERTY  The GDP (Gross Domestic Product, total of everyone's income) in the poorest 48 nations is less than the combined wealth of the world's three richest people. Source: Global Issues Website  20% of the population in developed nations consumes 86% of the world's goods. Source: Global Issues Website  Recent studies find that prices paid by the poor in developing countries are much higher than previous thought. They cannot buy as much food with $1 as they can in a country like United States. This shows that they're even poorer than reported in earlier studies. Source: World Bank 2009  The poorest 40% of the world’s population accounts for 5% of the global income. The richest 20% of world’s population accounts for three-quarters of world income. Source: Global Issues Website  The average yearly income of the richest 20% of people in the world is about 50 times greater than the yearly income of the poorest 20% of people. Source: Human Development Report 2005
  • 41. CHILDREN AND POVERTY  Of the 2.2 billion children in the world, 600 million are victims of extreme poverty. Source: UNICEF 2008  Each year, over 10 million children in developing countries die before the age of five. More than half of these deaths are attributed to malnutrition, which claims a child's life every 5 seconds. Sources: World Development Indicators 2007, The United Nations' World Food Program  Under nutrition contributes to 53 percent of the 9.7 million* deaths of children under five each year in developing countries  Every year more than 10 million children die of hunger and preventable diseases - that’s over 30,000 per day, or one every 3 seconds. Source: Global Poverty Facts  Approximately 146 million children in developing countries, about 1 out of 4, are underweight. Source: The United Nations' World Food Program  An estimated 250 million preschool children are vitamin A deficient. An estimated 250,000 to 500,000 vitamin A-deficient children become blind every year. Half of them die within 12 months of losing their sight. This is easily corrected with an inexpensive vitamin supplement. Source: World Health Organization
  • 42. EDUCATION AND POVERTY  Over the last decade, the average primary completion rate (completing a full course of primary schooling) has risen from 62 percent to 72 percent. Source: World Bank, World Development Indicators 2007  Still, more than 115 million children are out of school - and some 62 million of them are girls. Source: United Nations Development Programme (UNDP), The 2006 Human Development Report  Less than 1 percent of what the world spends each year on weapons could put every child in school. Source: UNICEF
  • 43. CHAPTER 11 HOW TO END POVERTY?
  • 44. HOW TO END POVERTY?  To help the poor create their own businesses so that they may develop their own incomes.  To create jobs that would allow those in poverty to increase their incomes through wages or salaries.  Selling products to those living in poverty would help them earn or save money.  Increase in per capita food production.  Increase in production of essential items.  To tackle the problem of income disparity.  To tackle the problem of black money.  Massive investment in public sector.
  • 46. CONCLUSIONS Hunger in India India, with a population of over 1.2 billion, has seen tremendous growth in the past two decades. Gross Domestic Product has increased 4.5 times and per capita consumption has increased 3 times. Similarly, food grain production has increased almost 2 times. However, despite phenomenal industrial and economic growth, while India produces sufficient food to feed its population, it is unable to provide access to food to a large number of people, especially women and children. State of Hunger in India Hunger in India is a complex issue. It is widespread and the causes are different across various regions. According to latest FAO estimates in ‘The State of Food Insecurity in the World, 2015” report, 194.6 million people are undernourished in India. By this measure India is home to a quarter of the undernourished population in the world. Also 51% of women between 15 to 59 years of age are anaemic and 44% of children under 5 are underweight. Malnourished children have a higher risk of death from common childhood illnesses such as diarrhea, pneumonia, and malaria. The Global Hunger Index 2014 ranks India at 55 out of 76 countries on the basis of three leading indicators -- prevalence of underweight children under 5 years, under 5 child mortality rate, and the proportion of undernourished in the population. On the other hand, it is estimated that nearly 40 percent of the fruits and vegetables, and 20 percent of the food grains that are produced are lost due to inefficient supply chain management and do not reach the consumer markets.
  • 48. BIBLIOGRAPHY 1) INDIA FOODBANKING NETWORK 2) HOW TO END GLOBAL POVERTY? : THE BORGEN PROJECT 3) WIKIPEDIA 4) http://www.importantindia.com/783/poverty-in-india/