3. Poverty, economic condition in which
people lack sufficient income to obtain
certain minimal levels of health services,
food, housing, clothing, and education
generally recognized as necessary to
ensure an adequate standard of living.
What is considered adequate, however,
depends on the average standard of
living in a particular society.
INTRODUCTION
4. Relative poverty is that experienced by those
whose income falls considerably below the
average for their particular society. Absolute
poverty is that experienced by those who do
not have enough food to remain healthy.
However, estimating poverty on an income
basis may not measure essential elements
that also contribute to a healthy life. People
without access to education or health
services should be considered poor even if
they have adequate food.
5. VictorianWorkhouse
Workhouses, institutions
that provided basic
sustenance for the very
poor, infirm, and aged, are
most commonly associated
withVictorian Britain.
Conditions were deliberately
bleak to deter people from
turning to them for help.
6. Individuals who have a lower-than-average
ability to earn income, for whatever reason,
are likely to be poor. Historically, this group
has included the elderly, people with
disabilities, single mothers, and members of
some minorities. In theWest today, a
significantly large group in the poverty-
stricken population consists of single mothers
and their children; these families account for
about one-third of all poor people.
Causes for Poverty
7. Not only do women who work outside the
home generally earn less than men, but a
single mother often has a difficult time
caring for children, running a household,
and earning an adequate income. Other
groups disproportionately represented
below the poverty threshold are people
with disabilities and their dependants, very
large families, and families in which the
principal wage earner is either
unemployed or works for low wages.
8. Lack of educational opportunity is another cause of
poverty. In the developed world, a larger percentage
of blacks than whites are poor today, in part because
of a heritage of inferior education, meaning reduced
employment opportunities later.
Much of the world's poverty is due to a low level of
economic development. China and India are
examples of heavily populated, developing nations
where, despite substantial recent industrialization,
poverty is rampant. Even in economically developed
countries, widespread unemployment can create
poverty.
9. The Great Depression impoverished millions of
Americans and Europeans in the 1930s. Less
severe economic contractions, called
recessions, cause smaller increases in the
poverty rate.
A report by the United Nations Environment
Programme (UNEP), known as GEO-2000,
identified excessive consumption of energy,
raw materials, and other resources inWestern
and some East Asian nations as one of the main
causes of the continued poverty of the majority
of world population.
10. Extreme poverty in many parts of the world
forces residents of those areas to exploit natural
resources in an unsustainable manner. Both
factors have considerable economic and
environmental implications.
11. The wealth of Saudi
Arabia, based on the vast
oil reserves discovered
there, contrasts
conspicuously with the
poverty found elsewhere
in the Arab world, as
shown in this photograph
of a poor neighbourhood.
Poverty in the ArabWorld
12. Tens of thousands of poor people throughout
the world die every year from starvation and
malnutrition. Infant mortality rates are
higher and life expectancy lower among the
poor. Poverty is closely associated with
crime. Most of the poor are not criminals,
and many criminals are not poor, but people
from environments dominated by poverty
are more likely to commit crimes and to be
punished.
Effects of Poverty
13. Other social problems, such as mental illness
and alcoholism, are common among the poor,
in part because they are causes as well as
effects of poverty, and often because there is
little medical provision for dealing effectively
with them. Finally, poverty tends to breed
poverty; in some cases, the handicap of poverty
is passed from one generation to another,
possibly as a result of the family being caught
in a poverty trap—a situation in which a
relatively small
14. increase in income will take the family over the
threshold for entitlement to benefits, thereby
creating a net loss. One possibly consequence
of this is that members of the household may
be discouraged from seeking employment,
losing the opportunities for social advancement
that such employment might afford them.
15. Street Children
Street children of
Bucharest, Romania. Of
growing concern is the
increase in child
prostitution in all urban
centres where poverty
exists.
16. Poverty has been viewed as a measure of social
class and sex inequality in industrial societies, with
women and lower-class households experiencing
the greater level of poverty. Similarly, poverty has
been regarded as an indicator of inequitable
economic dealings between the developed and the
developing nations, with the poverty of the
developing world being linked to the accumulation
of wealth in the developed world—the so-called
north-south divide.
Distribution
17. The United Nations Millennium Summit in
September 2000 looked at issues of
poverty distribution worldwide and set
targets for 2015 that included reducing by
half the number of people living on less
than US$1 a day, providing safe drinking
water for 50 per cent of people deprived of
such access, primary education for all
children, and reversing the spread of
diseases such as malaria and AIDS.
18. The poorest nations in the world are in:
South Asia (Bangladesh, India and
Pakistan); sub-Saharan and North Africa;
the Middle East; Latin America and the
Caribbean; and East Asia (China).
For 2020 a significant improvement in the
circumstances of slum inhabitants and a
greater access to modern technologies for
poorer nations was also envisaged.
21. India has a mixed economy in which both the
central and state governments pay a leading role—
as regulators, planners, and through ownership of
public enterprises. Large-scale government
involvement in the economy began in the 1950s as
a reflection of nationalism and of the socialism of
the first post-independence government led by
Jawaharlal Nehru—and with the aim of speeding up
economic development and growth to meet the
needs of India’s rapidly growing population.The
first of India’s five-year economic plans was
launched in 1951.
Indian Economy
22. During the decades that followed the state took
over certain key sectors and invested heavily in
others, while the private sector was subject to
wide-ranging controls.Tariff, and other, barriers
were erected to protect domestic industries, and
various agrarian reform programmes were
initiated.
. Economic growth, except during times of severe
drought such as 1979 and 1987, was steady; it
averaged 3.6 per cent a year in real terms (that is,
after taking into account population growth)
between 1965 and 1980, and more than 5 per cent
a year during the 1980s.
23. Inflation and the national debt were
generally kept low. Agricultural output
rose significantly and the spectre of mass
famine was eliminated.The basis of a
modern industrial state was laid. However,
growth levels were still too low to have
more than a marginal impact on the
income of the majority of Indians. In 2004
India’s gross national product (GNP) was
about US$673,205 million, giving an
income per head of just US$620.
24. In addition, more than 60 per cent of under-five
were malnourished, while access to clean water
and sanitation was still available only to a
minority of the population.In 1991 P.V.
Narasimha Rao became prime minister and
instituted a significant change in economic
policy. Many of the controls over the private
sector have been abolished and the state
monopoly in certain areas, such as air transport,
was loosened.The economy generally was
opened up by the reduction of tariff controls and
by the encouragement of foreign investment.
25. These changes were partly brought about by the
need to sustain higher growth rates. However,
the government also needed to cut public
spending and to reduce inflation, debt
repayments, and the balance of payments
deficit—which had all risen sharply as a result of
problems created by the GulfWar and by
government borrowing in the late 1980s. In 1991
and 1992 real economic growth dropped to 1.1
per cent; by 1996 it was above 6.5 per cent.
Changes at national level have also been
reflected at state level
26. Changes at national level have also been reflected at
state level.The states have significant control over
internal policy and interpret national policy in
different ways. Some, likeWest Bengal, have far
greater government control of the economy than
average; others, like Maharashtra, have traditionally
been more market-oriented. Since 1991, however,
almost all the states have opened their doors to
foreign investment, reduced controls over the private
sector, and allowed some privatization of state
companies. Some states have been more successful
in this regard. Five major states, which together
constitute one third of India’s population—Andhra
Pradesh, Gujarat, Karnataka, Maharashtra, andTamil.
27. Nadu—have secured two thirds of private
investment proposals since 1991 and 60 per cent
of commercial bank credit In contrast, seven
states, which together constitute 55 per cent of
the population, have secured only 30 per cent of
private investment proposals during the same
period.These are the states of Assam, Bihar,
Madhya Pradesh, Orissa, Rajasthan, Uttar
Pradesh, andWest Bengal.This disparity may
lead to instability in the future. In 2004 some
3.46 million tourists visited India, and spent an
estimated US$1,713 million.