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Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
1
POVERTY
introduction
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
2
 Poverty is a widespread social evil in underdeveloped
countries, particularly in Asia and Africa. There is no
standard definition of poverty for all the countries.
Being a relative concept, the meaning of poverty
differ
Who are the poor
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
3
 Rural areas – landless laborers, the small and
marginal farmers, the agricultural and casual
laborers, the rural artisans , the tribal and disabled
person
 Urban areas – casual workers, migrants from rural
areas in search o employment, daily wage workers
working at construction sites, domestic servants,
street cobblers etc.,
Meaning of Poverty
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
4
 Poverty may be defined as a situation in which a person
is unable to secure even his basic requirements
 There are three broad group of poverty
Chronic poor : people who are always poor and the people
who are usually poor but sometimes may have income
higher than the poverty line
Transient poor : they are moving in and out of poverty and
occasionally poor, these people normally have income
higher than the poverty line but due to bad phase in life,
sometimes, they remain poor
Non poor : this category belong to those people who are
never poor
Measures of poverty
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
5
 Relative poverty : it refers to poverty in comparison
to other people, regions or nations. The class or
group of people belonging to lower income group is
treated as poor in comparison to the group of people
having higher income or standard of living .
 Absolute poverty :it refers to the total number of
people living below the poverty line.
Poverty line
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
6
 Minimum daily calorie intake – poverty line is thus,
defined on the basis of recommended nutritional
requirement of 2400 calories per person per day for
rural areas and 2100 calories for urban areas.
 The monetary expenditure needed for meeting these
calorie requirement – according to Tendulkar
committee report, people who spend less than ₹27.20
a day (or ₹816 in a month) in rural areas and ₹33.33 a day
(or ₹1000 in a month) in urban areas will be considered
below poverty line
Poverty line
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
7
poor Absolutely poor
Very poor
poor
Poverty line
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
8
Nonpoor Middle class
Upper middle
class
The rich
Poverty line
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
9
 Moreover , it does not consider social factors that are
responsible for poverty line like illiteracy, low access
to resource like health care , education , etc., for this
we must attempt to know how large the shortfall of
income of the poor is from the poverty line.
Measurement of poverty
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
10
 In pre – independent India – Dada Bhai Naoroji
gave the concept of poverty – Jail cost of living – the
jail cost of living was regarded as the cost of
consumption by an adult prisoner and of its
estimating Naoroji used the menu for a prisoner at
appropriate prevailing prices, by dividing the
country's population into two parts, he estimated
poverty on the basis of jail cost of living as follows
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
11
 It is assumed that one-third of country's population
consisted of children, out of this population, half of
the consumed very little while the other half
consumed half of the adult diet
 Two-third of country’s population consisted of
adults and they consume full diet
 On this basis the average poverty line came out to be
three-fourth of the jail cost of living
Measurement of poverty
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
12
 In post independent India –
In 1962 the planning commission formed a study
group
Alagh committee -1977
Lakdawala committee – 1989
Tendulkar committee – 2005
 Planning commission at present to estimate poverty
is based on the recommendations of the expert from
under the chairmanship of prof.suresh D. Tendulkar
Estimates of poverty in India
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
13
 The planning commission has been estimating of
poverty using the methodology of the expert group.
The National Sample Survey Organization (NSSO) ,
the latest available data are for the 68 the round
covering the period 1993-94 to 2011-12 .
Percentage and number of poor estimated from
expert group methodology
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
Poverty
ratio(%)
Number
of poor
(Million)
year Rural urban total rural urban total
1993-94 50.1 31.8 45.3 328.6 74.5 403.7
2004-05 41.8 25.7 37.2 326.3 80.8 407.1
2009-10 33.8 20.9 29.8 278.2 76.5 354.7
2011-12 25.7 13.7 21.9 216.7 53.1 268.9
When the number of poor people is estimated as the proportion of people below
the poverty line, it is called as HEAD COUNT RATIO.
1) Poverty ratio (in percentage)
2) Total number of poor people
Main trends and dimensions of poverty in India
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
15
 Number and percentage of poor in India
 Rural –urban poverty scenario – rural < urban
 Inter state comparison- nearly 32.6 per cent of
population of Odisha, 31.6 per cent of population of
Bihar , 29.4 per cent of population of UP and 31.6
per cent of population of MP is estimated to be living
below poverty line.
Punjab, Himachal Pradesh less than 10 per cent
Chhattisgarh, Jharkhand and Arunachal Pradesh
nearly 30 to 40 per cent of population living below
poverty line
Causes of poverty in India
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
16
 Economic factors
1. Under utilization of natural resources
2. Outdated technology and lack of capital
3. Widespread unemployment
4. Backwardness in agriculture
5. Inflationary pressures
6. Inequalities of income
7. Vicious circle of poverty
8. Lack of infrastructure
Causes of poverty in India
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
17
 Non – economic factor
1. Rapid rise in population
2. Social factors
Measures for removal of poverty
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
18
 Population control
 Redistribution of income
 High rate of growth
 Development of agriculture and cottage and small
scale industries
 Social participation
Three approaches to alleviate poverty
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
19
 Trickle down approach – this approach is based on
the expectation that the positive effects of economic
growth will be trickled down or benefit all sections of
the society including the poor people
 Poverty alleviation programmed – this approach
aimed at the creation of income assists and
employment generation opportunities
 Provision of basic amenities – this approach aimed
at providing the basic amenities
Special anti poverty programmes by government
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
20
 Mahatma Gandhi National Rural Employment
Guarantee Act –MGNREGA
 Swarnajayanti Gram Swarozgar Yojana –SGSY
 Pradhan Mantri Gram Sadak Yojana –PMGSY
 Indira Awas Yojana –IAY
 Bharat Nirman
 Swarna Jayanti Shahari Rozgar Yojana –SJSRY
 National Social Assistance Programme -NSAP
Reasons for shortfall
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
21
 Pro rich bias
 Neglect of remote areas
 Manipulation mismatch of priorities.
Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
22

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ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
 

Poverty

  • 2. introduction Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 2  Poverty is a widespread social evil in underdeveloped countries, particularly in Asia and Africa. There is no standard definition of poverty for all the countries. Being a relative concept, the meaning of poverty differ
  • 3. Who are the poor Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 3  Rural areas – landless laborers, the small and marginal farmers, the agricultural and casual laborers, the rural artisans , the tribal and disabled person  Urban areas – casual workers, migrants from rural areas in search o employment, daily wage workers working at construction sites, domestic servants, street cobblers etc.,
  • 4. Meaning of Poverty Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 4  Poverty may be defined as a situation in which a person is unable to secure even his basic requirements  There are three broad group of poverty Chronic poor : people who are always poor and the people who are usually poor but sometimes may have income higher than the poverty line Transient poor : they are moving in and out of poverty and occasionally poor, these people normally have income higher than the poverty line but due to bad phase in life, sometimes, they remain poor Non poor : this category belong to those people who are never poor
  • 5. Measures of poverty Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 5  Relative poverty : it refers to poverty in comparison to other people, regions or nations. The class or group of people belonging to lower income group is treated as poor in comparison to the group of people having higher income or standard of living .  Absolute poverty :it refers to the total number of people living below the poverty line.
  • 6. Poverty line Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 6  Minimum daily calorie intake – poverty line is thus, defined on the basis of recommended nutritional requirement of 2400 calories per person per day for rural areas and 2100 calories for urban areas.  The monetary expenditure needed for meeting these calorie requirement – according to Tendulkar committee report, people who spend less than ₹27.20 a day (or ₹816 in a month) in rural areas and ₹33.33 a day (or ₹1000 in a month) in urban areas will be considered below poverty line
  • 7. Poverty line Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 7 poor Absolutely poor Very poor poor
  • 8. Poverty line Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 8 Nonpoor Middle class Upper middle class The rich
  • 9. Poverty line Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 9  Moreover , it does not consider social factors that are responsible for poverty line like illiteracy, low access to resource like health care , education , etc., for this we must attempt to know how large the shortfall of income of the poor is from the poverty line.
  • 10. Measurement of poverty Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 10  In pre – independent India – Dada Bhai Naoroji gave the concept of poverty – Jail cost of living – the jail cost of living was regarded as the cost of consumption by an adult prisoner and of its estimating Naoroji used the menu for a prisoner at appropriate prevailing prices, by dividing the country's population into two parts, he estimated poverty on the basis of jail cost of living as follows
  • 11. Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 11  It is assumed that one-third of country's population consisted of children, out of this population, half of the consumed very little while the other half consumed half of the adult diet  Two-third of country’s population consisted of adults and they consume full diet  On this basis the average poverty line came out to be three-fourth of the jail cost of living
  • 12. Measurement of poverty Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 12  In post independent India – In 1962 the planning commission formed a study group Alagh committee -1977 Lakdawala committee – 1989 Tendulkar committee – 2005  Planning commission at present to estimate poverty is based on the recommendations of the expert from under the chairmanship of prof.suresh D. Tendulkar
  • 13. Estimates of poverty in India Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 13  The planning commission has been estimating of poverty using the methodology of the expert group. The National Sample Survey Organization (NSSO) , the latest available data are for the 68 the round covering the period 1993-94 to 2011-12 .
  • 14. Percentage and number of poor estimated from expert group methodology Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., Poverty ratio(%) Number of poor (Million) year Rural urban total rural urban total 1993-94 50.1 31.8 45.3 328.6 74.5 403.7 2004-05 41.8 25.7 37.2 326.3 80.8 407.1 2009-10 33.8 20.9 29.8 278.2 76.5 354.7 2011-12 25.7 13.7 21.9 216.7 53.1 268.9 When the number of poor people is estimated as the proportion of people below the poverty line, it is called as HEAD COUNT RATIO. 1) Poverty ratio (in percentage) 2) Total number of poor people
  • 15. Main trends and dimensions of poverty in India Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 15  Number and percentage of poor in India  Rural –urban poverty scenario – rural < urban  Inter state comparison- nearly 32.6 per cent of population of Odisha, 31.6 per cent of population of Bihar , 29.4 per cent of population of UP and 31.6 per cent of population of MP is estimated to be living below poverty line. Punjab, Himachal Pradesh less than 10 per cent Chhattisgarh, Jharkhand and Arunachal Pradesh nearly 30 to 40 per cent of population living below poverty line
  • 16. Causes of poverty in India Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 16  Economic factors 1. Under utilization of natural resources 2. Outdated technology and lack of capital 3. Widespread unemployment 4. Backwardness in agriculture 5. Inflationary pressures 6. Inequalities of income 7. Vicious circle of poverty 8. Lack of infrastructure
  • 17. Causes of poverty in India Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 17  Non – economic factor 1. Rapid rise in population 2. Social factors
  • 18. Measures for removal of poverty Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 18  Population control  Redistribution of income  High rate of growth  Development of agriculture and cottage and small scale industries  Social participation
  • 19. Three approaches to alleviate poverty Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 19  Trickle down approach – this approach is based on the expectation that the positive effects of economic growth will be trickled down or benefit all sections of the society including the poor people  Poverty alleviation programmed – this approach aimed at the creation of income assists and employment generation opportunities  Provision of basic amenities – this approach aimed at providing the basic amenities
  • 20. Special anti poverty programmes by government Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 20  Mahatma Gandhi National Rural Employment Guarantee Act –MGNREGA  Swarnajayanti Gram Swarozgar Yojana –SGSY  Pradhan Mantri Gram Sadak Yojana –PMGSY  Indira Awas Yojana –IAY  Bharat Nirman  Swarna Jayanti Shahari Rozgar Yojana –SJSRY  National Social Assistance Programme -NSAP
  • 21. Reasons for shortfall Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 21  Pro rich bias  Neglect of remote areas  Manipulation mismatch of priorities.