POVERTY AS A CHALLENGE

Poverty is about not having enough money to meet basic needs including food, clothing and
shelter. However, poverty is more, much more than just not having enough money.
The World Bank Organization describes poverty in this way: “Poverty is hunger. Poverty is a
lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having
access to school and not knowing how to read. Poverty is not having a job, is fear for the
future, and living one day at a time.

Issues related to Poverty

Characteristics
• lack of shelter.
• It is a situation in which parents are not able to send their children to school.
• A situation where sick people cannot afford treatment.
• Lack of clean water and sanitation facilities.
• Lack of a regular job at a minimum decent level.
• Living with a sense of helplessness.
• Poor people are in a situation in which they are ill-treated at almost every place, in
farms, factories, government offices, hospitals, railway stations etc.
Question: “Nobody would like to live in poverty” – Do you agree? Why?
Social Exclusion: poverty must be seen in terms of the poor having to live only in poor
surroundings with other poor people, excluded from enjoying the social equality of better-
off people in better surroundings.
Vulnerability: Vulnerability to poverty is a measure, that describes the greater probabilityof
certain communities (SC/ST/OBC) or individuals (widow or a physically handicapped person)
of becoming, or remaining, poor in the coming years
Poverty Line: A common method used to measure poverty is based on income or consumption
levels.
Income Method: A person is considered poor if his or her income or consumption level falls
below a given “minimum level” necessary to fulfill the basic needs.
Expenditure Method: The poverty line is estimated based on the desired calorie
requirement. The accepted average calorie requirement in India is 2400 calories per person
per day in rural areas and 2100 calories per person per day in urban areas. Physical quantities
of food requirements are multiplied by their prices in rupees.
On the basis of these calculations, for the year 2011–12, the poverty line for a person was
fixed at Rs 816 per month for rural areas and Rs 1000 for urban areas.
The poverty line is estimated periodically by conducting sample surveys. These surveys are
carried out by the National Sample Survey Organisation (NSSO).
Question: Despite less calorie requirement, the higher amount for urban areas has been
fixed”- Why?

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BPL – Below Poverty Line APL – Above Poverty Line
Vulnerable Groups: The proportion of people below t h e poverty line is not th e same for
all socialgroups and economic categories in India.
Among t h e social groups, which are most vulnerable to poverty are Scheduled
Caste andScheduled Tribe households
Among the economic groups, the most vulnerable groups are the rural agricultural labour
households and the urban casual labour households.
Inter-State Disparities
The success rate of reducing poverty varies from state to state.
All India Head Count Ratio (HCR) was 21.9 percent in 2011-12. States like MP, Assam, UP,
Bihar, and Odisha had above all India poverty levels. (page 36- graph)
There has been a significant decline in poverty in Kerala, Maharashtra, Andhra Pradesh,
Tamil Nadu, Gujarat, and West Bengal.
States like Punjab and Haryana have succeeded in reducing poverty with the help of high
agricultural growth rates.
Kerala has focused more on human resource development.
In West Bengal, land reform measures have helped in reducing poverty.
In Andhra Pradesh and Tamil Nadu, effective public distribution of food grains (PDS)
isresponsible for the improvement.

Poverty Ratio in Selected Indian States, (As per 2011 Census)

Global Poverty Scenario: Extreme economic poverty is people living on less than $1.90
per day (International Poverty Line as defined by the World Bank)
The new sustainable development goals (SDG) of the United Nations (UN) proposes
ending poverty of all types by 2030.
Extended learning: Try to learn more about Sustainable Development Goals 1 to 6

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Causes of Poverty:
What are the causes of the widespread poverty in India?
Historical reason: The policies of the colonial government ruined traditional handicrafts
and discouraged the development of industries like textiles. The low rate of growth resulted
infewer job opportunities and a low growth rate of income.
High growth rate of population: Low growth rate of income and high growth rate of
population resulted in low per capita. The failure of the promotion of economic growth
andpopulation control perpetuated the cycle of poverty.
Unemployment: Unable to find proper jobs in cities, many people started working as
rickshaw pullers, vendors, construction workers, domestic servants, etc. With irregular
small incomes, these people could not afford housing. They started living in slums on the
outskirts of the cities and the problems of poverty, largely a rural phenomenon, also
became a feature of the urban sector.
Huge income inequalities: One of the major reasons for poverty is the unequal distribution
of land and other resources.
Lack of land resources: Lack of land resources has been one of the major causes of
poverty in India. Major policy initiatives like land reforms which aimed at the
redistribution ofassets have not been implemented properly.
Socio-cultural and economic factors: In order to fulfill social obligations and observe
religious ceremonies, people in India, including the very poor, spend a lot of money. Small
farmers need money to buy agricultural inputs like seeds, fertilizer, pesticides, etc.
Anti-Poverty Measures The current anti-poverty strategy is based on two planks.
(1) promotion of economic growth (2) Targeted anti-poverty programs.
(1) Promotion of economic growth: There is a strong link between economic growth and
poverty reduction over a period of thirty years lasting up to the early eighties; there was
little per capita income growth and not much reduction in poverty. Official poverty
estimates, which were about 45 percent in the early 1950s, remained the same even in the
early eighties. Since the eighties, India’s economic growth has been one of the fastest in
the world. The growth rate jumped from an 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.
(2) Targeted anti-poverty programmes
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): The
NationalRural Employment Guarantee Act (NREGA) was passed in September 2005. The
Act provides 100 days of assured employment every year to every rural household. One-
third of the proposed jobs would be reserved for women. Under the programme if an
applicant is not provided employment, she or he will be entitled to a daily unemployment
allowance.
MGNREGS is the new name of NREGA.

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Prime Minister Rozgar Yozana (PMRY): It was started in 1993. The aim of the programme
is to create self-employment opportunities for educated unemployed youth in rural areas
and small towns. They are helped in setting up small businesses and industries.
Rural Employment Generation Programme (REGP): It was launched in 1995. The aim of the
programme is to create self-employment opportunities in rural areas and small towns. A
target for creating 25 lakh new jobs has been set for the programme under the Tenth
Five Year plan.
Swarnajayanti Gram Swarozgar Yojana (SGSY): SGSY was launched in 1999. The
programme aims at bringing the assisted poor families above the poverty line by organizing
them into self-help groups through a mix of bank credit and government subsidy.
Pradhan Mantri Gramodaya Yozana (PMGY): PMGY was launched in 2000, additional
central assistance is given to states for basic services such as primary health, primary
education,rural shelter, rural drinking water, and rural electrification.
Limitations of Poverty Alleviation Programme.
What are the major reasons for the low effectiveness of the Poverty Alleviation
Programme?
*Lack of proper implementation and right targeting.
*Moreover, there have been a lot of overlapping schemes.
*The benefits of these schemes are not fully reached to the deserving poor.
*Failed in proper monitoring of all the poverty alleviation programmes.
LESSON REVISIT

1. “The high level of indebtedness is both the cause and effect of poverty”- Explain.
2. What are the twin planks of anti-poverty measures of the government?
3. How is economic growth linked with poverty reduction in India?
4. Discuss the major reasons for poverty in India.
5. State various poverty alleviation programmes introduced by the government.
6. How were policies of the colonial government responsible for poverty in India?
7. What is NREGA? What is the new name of the scheme? List the features of the
programme.
8. Point out the limitations of the Poverty Alleviation Programme.
9. The poverty line for a person was fixed at Rs 816 per month for rural areas and Rs
1000 for urban areas. Categorize the following families as APL & BPL
Family Members Category Family Income
A Head + wife + 2 Children Urban 5000
B Head + wife + 4 Children Urban 5900
C Head + wife + 2 Children Rural 4500
D Head + wife + 2 Children Rural 3200
E Head + wife + 5 Children Urban 5500