CBSE Class IX Social Studies ECONOMICS Poverty as a challenge
POVERTY AS A CHALLENGE
Introduction To Poverty
Poverty is the lack of basic human needs, Nutrition, health care education, clothing
and shelter, because of the inability to afford them.This is also referred to as absolute.
Poverty or destitution. Relative poverty is the condition of having fewer resources or
Less income than others within a society or country or world wide averages ($1 per
Person per day). About 1.7 billion people live in absolute poverty; before the industrial
Revolution, poverty had mostly been the norm.
• Poverty reduction has historically been a result of economic growth as increased
Levels of production, such as modern industrial technology, made more wealth
Available for those who were otherwise too poor to afford them. Also, investments in
Modernizing agriculture and increasing yields is considered the core of the antipoverty
Effort, given three-quarters of the world's poor are rural farmers.
Today, continued economic development is constrained by the lack of economic
Freedoms. Economic liberalization includes extending property rights, especially to
Land, to the poor, and making financial services, notably savings, accessible, inefficient
Institutions, corruption and political instability can also discourage investment.
Aid and Government in health, support education and infrastructure helps growth by
Increasing human and physical capital.
Some main reasons for the poverty are :-
1. British era
The mughal era ended at about 1760. Jawaharlal Nehru claimed "A significant fact which stands
out is that Those parts of India which have been longest under british rule are the poorest today."
The Indian economy was Purposely and severely de-industrialized, especially in the areas of
textiles and metal-working, Through colonial Privatizations, regulations, tariffs on manufactured
or refined Indian goods, taxes, and direct seizures.
2. Neo-liberal policies and their effects
Other points of view hold that the economic reforms initiated in the early 1990s are responsible
for the collapse Of rural economies and the agrarian crisis currently underway. As journalist and
the rural affairs editor for the Hindu, P sainath describes in his reports on the rural economy
in India, the level of inequality has risen to Extraordinary levels, when at the same time, hunger
in India has reached its highest level in decades. He also Points out that rural economies across
india have collapsed, or on the verge of collapse due to the neo-Liberal policies of the
government of india since the 1990s. The human cost of the "liberalisation" has been very High.
Neo-liberal policies and their effects.
Unemployment occurs when a person is without a job and has actively looked for work within the
past two Weeks. The prevalence of unemployment is usually measured using the unemployment
rate, which is defined as The percentage of those in the labor force who are unemployed. The
unemployment rate is used in economic Studies and indices including the united state’s
conference board's index of leading indicators a macroeconomic measure of the state of the
Why is poverty?
1. PROMOTION OF ECONOMIC GROWTH
The growth rate jumped from the average of about 3.5 percent a year in the 1970s to
about 6 percent during the 1980s and 1990s. The higher growth rates have helped
significantly in the reduction of poverty. Economic growth widens opportunities and
provides the resources needed to Invest in human development. This also encourages
people to send their children, including girl child, to schools in the hope of getting
better economic returns from investing in education.
2. TARGETED ANTI-POVERTY PROGRAMMES AND SCHEMES
1. Swarnajayanti Gram Swarozgar Yojana (SGSY)
2. Started on April 1, 1999. It has replaced the following programs.
3. Integrated Rural Development Programme (IRDP) : Started in 1978 - 79.
4. Development of Women and Children in Rural Areas (DWCRA) : Started in 1978 –79
5. Ganga Kalyan Yojana (GKY) : Started in 1997.
6. Million Wells Scheme (MWS) : Started in 1989.
Poverty is the lack of basic human needs, nutrition, health care education,
clothing and shelter, because of the inability to afford them. This is also
referred to as absolute poverty or destitution. People getting less than $1 per
person per day are also considered as people below poveerty line. It is a
challenge because of its causes which are (corruption etc. ) are increasing day
by day and there is not much development in the poverty related issues. If this
would continue the poverty would become a more and more difficult challenge.
India is a developing country and steps are being taken to reduce poverty but
these efforts are not sufficient, the people of India, government all should make
joint efforts to reduce poverty as much as they can. Some efforts which can be
taken to reduce poverty are introduction of more and more Schemes to help the
poor, increasing job opportunity is also a solution.
Why is poverty a challenge?
Vulnerability to poverty is the extent to which a community, person, society ,
country etc. can be affected by the impact of the poverty. Women’s, less paid
workers, beggars, people living in less developed area, people living in slums,
farmers (to a little extent), farm labourers Schedule Cast People, Schedule
Tribe People are most vulnerable to poverty.
To decrease poverty government is introducing many schemes to decrease
poverty some are given below :-
1. Swarna Jayanti Gram Swarojgar Yojna (April, 1999)
2. Jawahar Gram Samriddhi Yojna (launched on 1st April, 1999)
3. Indira Aawas Yojna (in effect from 1st April, 1999.)
Rural poverty refers to poverty found
in rural areas, but more important, to
factors of rural society, rural
economy and rural political systems
that give rise to the poverty found
there. A widely shared assumption
is that rural poverty in the modern era
operates on somewhat different
dynamics than class-based urban
poverty, although social science
analyses since the 'rediscovery ' of
poverty in the 1960s have often tended
to conflate the two. Marxism, unlike
other contemporary theories of
poverty ,tends to write off the rural
problem without further examination.
Urban poverty is not just a collection
of characteristics, it is also a dynamic
condition of vulnerability or susceptibility
to risks. In order to provide a richer
understanding of urban poverty, this site
presents these two analytical frameworks
(i) A dynamic framework of poverty
(vulnerability and asset ownership) and
(ii) the multiple characteristics of poverty
and its cumulative impacts. Urbanization
contributes to sustained economic growth
which is critical to poverty reduction. The
economies of scale and agglomeration in
cities attract investors and entrepreneurs
which is good for overall economic
Types Of Poverty
We can fight poverty very easily, to fight poverty people and the
government has to make joint efforts. The government should try to
introduce more and more schemes and job opportunity for the youths of
the country and the people should try to help the government as much as
they can. The government should/can try to reduce it by trying to
remove/solve/find a solution to its causes. Some schemes already
introduced by government are given below :-
1. District Rural Development Agency Administration(introduced from 1st
2. Basic Minimum Services (1997 )
3. Community Development (1980-81)
How To Fight Poverty
Below Poverty Line is an economic benchmark and poverty threshold used by
the government of India to indicate economic disadvantage and to identify
individuals and households in need of government assistance and aid. It is People
getting less than $1 per person per dayare considered as below poverty line.
The poverty line was originally fixed in terms of income/food requirements in
1978. It was stipulated that the calorie standard for a typical individual in rural
areas was 2400 calorie and was 2100 calorie in urban areas. Then the cost of the
grains (about 650 grams) that fulfill this normative standard was calculated. This
cost was the poverty line. In 1978, it was Rs. 61.80 per person per month for rural
areas and Rs. 71.30 for urban areas. Since then the Planning Commission calculates
the poverty line every year adjusting for inflation. The poverty line in recent years is
as follows - (Rs. per month per head) Example of mis-use of BPL Schemes
If you have a pucca house a two-wheeler, a fan… you are ineligible. The pucca house
could have been in your family for generations and is not necessarily a reflection of
your present situation. There was a government scheme once in which girls were
given cycles to ensure they went to schools. Because the girls had a cycle they were
not counted as BPL. The opposite of BPL is APL (above poverty line)
Poverty line (BPL)
Year India rural India urban
2000–2001 328 454
2005–2006 368 560
Poverty is the lack of basic human needs, such as clean water, nutrition, health
care education, clothing and shelter, because of the inability to afford them. This is
also referred to as absolute poverty or destitution. It is a challenge because of its
causes which are (corruption etc. ) are increasing day by day and there is not much
development in the poverty related issues. Vulnerability to poverty is the extent to
which a community, person, society ,country etc. can be affected by the impact of
the poverty. We can fight poverty very easily, to fight poverty people and the
government has to make joint efforts. Below Poverty Line is an economic
benchmark and poverty threshold used by the government of India to indicate
economic disadvantage and to identify individuals and households .