POVERTY

WHAT YOU NEED TO KNOW ABOUT

ABYSS OF DECEPTIONS
ANGAD MAKKER
XII-E
Poverty can be defined as a condition in which a
person or community lacks the financial resources and
essential amenities for a minimum standard of living.

Poverty affects not only the individuals and

communities directly experiencing it but also has
broader implications for economic growth and social
cohesion.
CAUSES OF POVERTY
Lack of good jobs/job growth
This is the first reason a lot of people think about. When you don’t have a good job, you aren’t getting a
good income. In many countries, traditional jobs like farming are disappearing.

Lack of good education

The second root cause of poverty is a lack of education. Poverty is a cycle and without education,
people aren’t able to better their situations. According to UNESCO, over 170 million people could be
free of extreme poverty if they only had basic reading skills.
Warfare/conflict
Conflict has a huge impact on poverty. In times of war, everything stops. Productivity suffers as well
as a country’s GDP. It’s very difficult to get things going again as foreign businesses and countries
won’t want to invest.
Weather/climate change
According to the World Bank, climate change has the power to impoverish 100 million people in the
next decade or so. We know climate change causes drought, floods, and severe storms, and that can
take down successful countries while pulling poor ones down even further. Recovering is extremely
difficult.

Social injustice
Whether it’s gender discrimination, racism, or other forms of social injustice, poverty follows. People
who are victims of social injustice struggle with getting a good education, the right job opportunities,
and access to resources that can lift them out of poverty.

Lack of food and water

Without access to basic essentials like food and water, it’s impossible to get out of poverty’s cycle.
Everything a person does will be about getting food and water.

High costs
The last root of poverty is simple: stuff costs too much. Even the basics can be too expensive
LESS THAN
$1.90 A DAY
Extreme poverty is classified by the World Bank
Group as individuals who live on less than $1.90 a
day. In 2017, that equated to around 689 million
people all over the world.
IMPACTS OF POVERTY
On society
Increases crime rates and social unrest: Poverty can lead to higher crime rates and social unrest as
people may resort to illegal activities to make a living.
Increases social inequality: Poverty creates a wide gap between the rich and poor, leading to social
inequality and discrimination.
Reduces social cohesion: Poverty can lead to a breakdown in social cohesion and create tensions
between different groups of people.

On health
Malnutrition and hunger: Poverty often leads to malnutrition and hunger due to lack of access to
nutritious food.
Increased risk of disease: Poor living conditions and lack of access to healthcare increases the risk
of diseases such as tuberculosis, malaria, and diarrhea.
On Women and Other Vulnerable Sections
Higher rates of domestic violence: Poverty is associated with higher rates of domestic violence
against women.
Lack of access to healthcare: Women living in poverty may not have access to reproductive
healthcare, leading to higher rates of maternal mortality and morbidity.
Limited economic opportunities: Women and other vulnerable sections may face limited economic
opportunities due to discrimination and lack of access to resources.

On Education
Low literacy rates: Poverty often leads to low literacy rates as children may not have access to
education due to financial constraints.
Lack of basic amenities: Children living in poverty may lack access to basic amenities such as clean
water, sanitation, and electricity, which can hinder their ability to learn.
Reduced opportunities: Children living in poverty may not have access to the same opportunities
as those from wealthier backgrounds, limiting their potential for future success.
THE WORLD BANK GROUP

The World Bank Group has made it a mission to

end extreme poverty globally by 2030. Along
with the UN and Member States, they have been
tackling this mission, as well as their mission of
boosting shared prosperity.
"Children who do not
reach their full potential
cannot contribute fully to
social, political and
economic growth."
UNICEF
TYPES OF POVERTY
Absolute Poverty:
Absolute poverty refers to the most severe form of poverty, where individuals or families struggle
to meet their basic needs for survival, including food, shelter, and clothing.
This type of poverty is often defined by an income threshold, such as living on less than $1.90 per
day, as established by the World Bank.

Relative Poverty:
Relative poverty is characterized by a lack of resources compared to the average standard of living
within a particular society or community.
Individuals experiencing relative poverty may have access to basic necessities but still face
significant disadvantages in comparison to their more affluent peers.
Rural Poverty:
Rural poverty occurs in agricultural or remote areas, where access to essential services such as
education, healthcare, and infrastructure is limited.
Factors contributing to rural poverty include landlessness, low agricultural productivity, lack of
market access, and inadequate government support.

Urban Poverty:
Urban poverty is prevalent in cities and urban areas, where populations often face overcrowded
living conditions, limited employment opportunities, and inadequate access to basic services.
Challenges such as informal employment, homelessness, and high living costs contribute to urban
poverty.

Generational Poverty:
Generational poverty refers to a cycle of poverty that persists across multiple generations within a
family or community.
Children born into impoverished households often face limited opportunities for education,
employment, and upward mobility, perpetuating the cycle of disadvantage.
POVERTY RATES:
PROGRESS &
SETBACKS
For over 25 years the global poverty rate was
in steady decline. In 2017, global poverty
rates were at a new low of 9.2% down from
10.1% in 2015. However, the 2020 pandemic is
expected to be a large setback in ending
extreme poverty around the world.
HALF OF
689M
of those living in extreme poverty are
children. Children with disabilities,
children born to large families, and those
living in rural areas are more likely to be
poor than those in different
circumstances.
 70%
Of the poor worldwide aged 15 and above
have no schooling or have reached only
basic education. This often has lifelong
consequences and perpetuates the cycle
of poverty that spans multiple generations.
GLOBAL PERSPECTIVE
Magnitude of Poverty:
Despite significant progress in poverty reduction over the past few decades, poverty remains a
widespread and pressing global challenge.
While the overall number of people living in extreme poverty has declined, significant disparities
persist across regions and countries.

Regional Disparities:
Poverty is not evenly distributed geographically, with certain regions experiencing higher poverty
rates than others.
Sub-Saharan Africa and South Asia are regions with particularly high concentrations of poverty.
These areas face challenges such as conflict, political instability, environmental degradation, and
limited access to resources and opportunities.
In contrast, regions such as East Asia and the Pacific have made significant strides in poverty
reduction, largely driven by rapid economic growth and development.
Impact of COVID-19 Pandemic:
The COVID-19 pandemic has exacerbated poverty and inequality worldwide, disproportionately
affecting vulnerable populations and exacerbating existing social and economic disparities.
Lockdown measures, economic disruptions, and loss of livelihoods have pushed millions of people
into poverty, reversing years of progress in poverty reduction.
The pandemic has highlighted the importance of social protection systems, healthcare
infrastructure, and inclusive economic policies in mitigating the impacts of crises on the most
vulnerable.

Global Efforts
The international community has made
commitments to address poverty through
initiatives such as the United Nations' Sustainable
Development Goals (SDGs), particularly Goal 1,
which aims to end poverty in all its forms by 2030.
FIGHTING POVERTY
Economic Interventions:
Job Creation Programs: Implementing initiatives that stimulate economic growth and create
employment opportunities, particularly for vulnerable populations such as youth and women.
Microfinance: Providing access to financial services, including small loans and savings accounts, to
empower individuals to start or expand small businesses and generate income.
Support for Small Enterprises: Offering training, mentorship, and access to markets to enhance the
productivity and sustainability of small and medium-sized enterprises (SMEs).
Social Interventions:
Education: Investing in quality education for all, including early childhood education, vocational
training, and adult literacy programs, to equip individuals with skills and knowledge necessary for
economic participation.
Social Protection Programs: Establishing safety nets such as cash transfer programs, food
assistance, and pensions to protect vulnerable populations from economic shocks and poverty
traps.
Political and Governance Interventions:
Policy Reforms: Implementing inclusive and equitable policies that promote economic growth,
reduce inequality, and address structural barriers to development.
Good Governance: Strengthening institutions, combating corruption, and ensuring transparency
and accountability in public financial management to create an enabling environment for
sustainable development.
International Cooperation: Fostering partnerships and collaboration among governments, civil
society organizations, and international agencies to mobilize resources, share best practices, and
support poverty reduction efforts globally.

Sustainable Development Goals (SDGs):

Alignment with SDGs: Aligning poverty reduction
efforts with the United Nations Sustainable
Development Goals (SDGs), particularly Goal 1 (No
Poverty) and Goal 10 (Reduced Inequalities), to
achieve measurable progress in poverty alleviation
by 2030.
POVERTY IN
INDIA
India has made progress in reducing poverty over
the years, but it still has a large population living
below the poverty line. As of recent data, around
20% of the population lives below the poverty line,
which is defined by income levels that are
considered inadequate to meet basic needs.
Social Inequality
There are significant disparities in income distribution, access to resources, and opportunities
between different social groups in India. Marginalized communities such as Scheduled Castes,
Scheduled Tribes, and Other Backward Classes often face higher levels of poverty due to historical
disadvantages and discrimination.

Government Initiatives:
The Indian government has implemented various poverty alleviation programs over the years,
such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which
guarantees rural households 100 days of wage employment per year. Other programs include
subsidized food distribution through the Public Distribution System (PDS) and housing schemes
like Pradhan Mantri Awas Yojana (PMAY).

COVID-19 Impact:
The COVID-19 pandemic exacerbated poverty levels in India due to economic disruptions, loss of
livelihoods, and increased health expenditures.
NO
POVERTY
Eradicating extreme poverty for all people
everywhere by 2030 is a pivotal goal of the 2030
Agenda for Sustainable Development. Extreme
poverty, defined as surviving on less than $2.15 per
person per day at 2017 purchasing power parity, has
witnessed remarkable declines over recent
decades.
By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its
dimensions according to national definitions
Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030
achieve substantial coverage of the poor and the vulnerable
By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to
economic resources, as well as access to basic services, ownership and control over land and other forms of
property, inheritance, natural resources, appropriate new technology and financial services, including
microfinance
By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and
vulnerability to climate-related extreme events and other economic, social and environmental shocks and
disasters
Ensure significant mobilization of resources from a variety of sources, including through enhanced development
cooperation, in order to provide adequate and predictable means for developing countries, in particular least
developed countries, to implement programmes and policies to end poverty in all its dimensions
Create sound policy frameworks at the national, regional and international levels, based on pro-poor and
gender-sensitive development strategies, to support accelerated investment in poverty eradication actions
 WHY IS SOCIAL PROTECTION SO IMPORTANT?
Strong social protection systems are essential for mitigating the effects and preventing many people
from falling into poverty. The COVID-19 pandemic had both immediate and long-term economic
consequences for people across the globe – and despite the expansion of social protection during
the COVID-19 crisis, 55 per cent of the world’s population – about 4 billion people – are entirely
unprotected.
In response to the cost-of-living crisis, 105 countries and territories announced almost 350 social
protection measures between February 2022 and February 2023. Yet 80 per cent of these were
short-term in nature, and to achieve the Goals, countries will need to implement nationally
appropriate universal and sustainble social protection systems for all.
SOURCES
“Ending Child Poverty.” UNICEF Europe and Central Asia, 8 Oct.
2020, www.unicef.org/eca/what-we-do/ending-child-poverty.

“Overview.” World Bank,

www.worldbank.org/en/topic/poverty/overview.

“World Bank Group and The 2030 Agenda.” World Bank,

www.worldbank.org/en/programs/sdgs-2030-agenda.

“ABYSS OF DECEPTIONS”