POVERTY

PRESENTED BY –
TANU SINGH CHAUHAN
PRAGATI SHARMA
VANDANA SINGH
 INTRODUCTION OF
POVERTY

IDENTIFICATION ISSUES
CONTENTS AND MEASUREMENT

UNDER NUTRITION AND

FUNCTIONAL IMPACT OF
POVERTY
MULTIDIMENSIONAL
POVERTY
INDEX ,POVERTY TRAPS.
 POVERTY

•Poverty is a complex and multidimensional phenomenon.

•There is no single definition of poverty that is universally accepted.

Poverty can be defined as a state or condition in which a person or

group lacks the financial resources and essentials for a minimum
standard of living. It encompasses various dimensions, including
lack of income, access to basic necessities, education, healthcare,
and decent living conditions. The concept of poverty is multifaceted,
affected by social, economic, and systemic factors with significant
impacts on individuals and communities.
Dadabhai Naoroji through his book, “Poverty and Unbritish Rule in India” made the earliest estimation of
poverty line (₹16 to ₹35 per capita per year).
Lakdawala Committee (1993): Lakdawala set the poverty line such that anyone who was above it was able to
afford 2100 and 2400 calories in the urban and rural areas respectively including shelter and clothing.

Tendulkar Committee (2009):It concluded that all India poverty line was:
₹446.68 per capita per month in rural areas.
₹578.80 per capita per month in urban areas.

Rangarajan Committee (2012):Accordingly, the energy requirement works out to 2,155 kcal per person per day
in rural areas and 2,090 kcal per person per day in urban areas.
Persons spending below ₹47 a day in cities and ₹32 in villages be considered poor.

The current poverty line is 1,059.42 Indian Rupees (62 PPP USD) per month in rural areas and 1,286 Indian
rupees (75 PPP USD) per month in urban areas. India's nationwide average poverty line differs from each state's
poverty line.

Challenges in Poverty Identification;

•Subjectivity in defining poverty.
•Variations in cost of living.
•Inadequate data collection.
• Lack of consensus on poverty indicators.
Accurate poverty measurement is crucial for several reasons:

1.Policy Formulation: It helps governments and organizations formulate targeted policies and
programs to address poverty by identifying the most affected groups and areas.

2.Resource Allocation: Accurate measurement ensures efficient allocation of resources by

directing aid and resources to areas and populations in greatest need.

3.Monitoring Progress: It allows for the monitoring of progress in poverty reduction efforts,
helping to evaluate the effectiveness of policies and interventions over time.

4.Accountability: Accurate measurement holds governments and organizations accountable for

their poverty reduction efforts, ensuring transparency and effectiveness in their actions.

5.International Comparisons: It enables comparisons of poverty levels across countries and

regions, facilitating international cooperation and the sharing of best practices in poverty reduction.

6.Human Rights: Accurate measurement is essential for monitoring progress towards achieving
the Sustainable Development Goals (SDGs), including the goal of eradicating poverty, and for
ensuring that basic human rights are met for all individuals.
Types of Poverty Measurement;

 Absolute poverty: It refers to when a person or household does not have the minimum amount of
income needed to meet the minimum living requirements needed over an extended period of time. In
other words, they cannot meet their basic needs.

 Relative poverty: It is when households receive 50% less than average household incomes.

APPROACHES TO POVERTY MEASUREMENT;

Multidimensional poverty index (MPI); Considers multiple dimensions of poverty, such as education, health, and
standard of living, to provide a more comprehensive understanding of poverty.

Head-count Ratio ; It is calculated by dividing the number of people below the poverty line by the total population.

Poverty Gap Index; The poverty gap index is calculated by taking the sum of the differences between the poverty line
and the income (or consumption) of each poor person, and then dividing this sum by the total population. This provides an
average shortfall from the poverty line for the entire population.

Foster-Greer- Thorbecke Indices; Provides a broader view by considering inequality among the poor and not just
their head-count.
FOSTER GREER THORBECKE INDICES;

The Foster–Greer–Thorbecke (FGT) indices are a set of poverty metrics commonly used in development economics to
measure poverty and income inequality. The most widely used index from this family is the FGT2 index, which gives higher
weight to the poverty of the poorest individuals. This makes it a comprehensive measure of both poverty and income
inequality.
The FGT indices were introduced in a 1984 paper by economists Erik Thorbecke, Joel Greer, and James Foster. These
indices are derived by substituting different values of the parameter α into the FGT formula:
 POVERTY UNDER NUTRITION;

• Undernutrition refers to a lack of adequate nutrition, resulting in insufficient intake of calories,

vitamins, and minerals necessary for good health.
• Undernutrition can lead to stunted growth, weakened immune system, and increased susceptibility
to diseases.
• Factors contributing to undernutrition include poverty, food insecurity, and limited access to
nutritious foods.

How Poverty Contributes to Undernutrition?

•Poverty limits access to an adequate and nutritious diet due to:
• Limited financial resources to purchase food
• Lack of access to markets selling nutritious foods
• Limited knowledge about nutrition and healthy eating practices
•Poverty often leads to food insecurity, where individuals and families do not have reliable access to
sufficient, affordable, and nutritious food.
•Poverty can also lead to inadequate access to clean water, sanitation, and healthcare, further
exacerbating undernutrition.
Impacts of Undernutrition;

•Undernutrition can lead to:

• Stunted growth and development in children
• Weak immune system, leading to increased susceptibility to infections and diseases
• Cognitive impairments and learning difficulties
•Long-term undernutrition can have lasting effects on health and well-being, affecting individuals'
ability to work and earn a living, thus perpetuating the cycle of poverty.

Strategies to Improve Nutrition Among the Poor;

Food Security Programs

Micronutrient Supplementation
Healthcare and Maternal Nutrition
On 1 April 2016, the United Nations (UN) General Assembly proclaimed 2016–2025 the United
Nations Decade of Action on Nutrition. The Decade is an unprecedented opportunity for
addressing all forms of malnutrition. It sets a concrete timeline for implementation of the
commitments made at the Second International Conference on Nutrition (ICN2) to meet a set of
global nutrition targets and diet-related NCD targets by 2025, as well as relevant targets in
the Agenda for Sustainable Development by 2030 – in particular, Sustainable Development Goal
(SDG) 2 (end hunger, achieve food security and improved nutrition and promote sustainable
agriculture) and SDG 3 (ensure healthy lives and promote wellbeing for all at all ages).
Functional Impact of Poverty in India;
• A high rate of infant death.

• Malnutrition - Not even a bowl of rice a day is sufficient.

• Child Labor - There isn't enough time for children to play

and study.

• Lack of education.

• Marriage of a child.

• Poor Purchasing Power.

• Addiction and Criminal activities to meet basic needs.

 MULTIDIMENSIONAL POVERTY INDEX
The Global Multidimensional Poverty Index (MPI) 2023 has been released by the United Nations Development
Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).
•The MPI measures “interlinked deprivations in health, education and standard of living that directly affect a
person’s life and wellbeing”.
The global Multidimensional Poverty Index (MPI) is an international measure of acute multidimensional poverty
covering over 100 developing countries. It complements traditional monetary poverty measures by capturing the
acute deprivations in health, education, and living standards that a person faces simultaneously.
The MPI assesses poverty at the individual level. If a person is deprived in a third or more of ten (weighted)
indicators, the global MPI identifies them as ‘MPI poor’. The extent – or intensity – of their poverty is also measured
through the percentage of deprivations they are experiencing.
The global MPI shows who is poor and how they are poor and can be used to create a comprehensive picture of
people living in poverty. It permits comparisons both across countries and world regions, and within countries by
ethnic group, urban/rural area, subnational region, and age group, as well as other key household and community
characteristics. For each group and for countries as a whole, the composition of MPI by each of the 10 indicators
shows how people are poor.
The global MPI was developed by OPHI with the UN Development Programme (UNDP) for inclusion in UNDP’s
flagship Human Development Report in 2010. It has been published annually by OPHI and in the HDRs ever since.
Global Multidimensional Poverty Index: dimensions and indicators of
poverty;
•Outlook for India:
•Poverty in India: India still has more than 230 million people who are poor.
•The UNDP defines, “Vulnerability — the share of people who are not poor but have deprivations in 20 -
33.3% of all weighted indicators — can be much higher.
•India has some 18.7% population under this category.
•India’s Progress in Poverty Reduction: India is among 25 countries, including Cambodia, China, Congo,
Honduras, Indonesia, Morocco, Serbia, and Vietnam, that successfully halved their global MPI values within 15
years.
•Some 415 million Indians escaped poverty between 2005-06 and 2019-21.
•The incidence of poverty in India declined significantly, from 55.1% in 2005/2006 to 16.4% in 2019/2021.
•In 2005/2006, approximately 645 million people in India experienced multidimensional poverty, a number
that decreased to about 370 million in 2015/2016 and further to 230 million in 2019/2021.
•Improvement in Deprivation Indicators: India progressed significantly in all the three deprivation indicators:
Health, Education, Standard of living.
•Decline in poverty has been equal as well, cutting across regions and socio-economic groups.
•The poorest states and groups, including children and people in disadvantaged caste groups, had the
fastest absolute progress.
•The percentage of people who were multidimensionally poor and deprived of nutrition decreased from 44.3%
in 2005/2006 to 11.8% in 2019/2021, and child mortality fell from 4.5% to 1.5%.
“Multidimensional poverty in India was found to decline from 29.17% in 2013-14 to
11.28% in 2022-23 with about 24.82 crore people escaping poverty during this period. At
the States’ level, Uttar Pradesh topped the list with 5.94 crore people escaping poverty
followed by Bihar at 3.77 crore and Madhya Pradesh at 2.30 crore.”

Poverty trap
•A poverty trap refers to an economic system in which it is difficult to escape poverty.
•A poverty trap is not merely the absence of economic means. It is created due to a mix of
factors, such as access to education and healthcare, working together to keep an individual
or family in poverty.
Types of Poverty Traps
Poverty traps can vary in their underlying causes and characteristics, but they all share the common feature of perpetuating
poverty or making it difficult for individuals or communities to escape poverty. Here is an overview of the various types of
poverty traps.
Economic Poverty Traps
Economic poverty traps are characterized by low income and limited economic opportunities. People in these traps may
face challenges such as unemployment or underemployment, low wages, and lack of access to credit or financial services.
This makes it difficult for them to save, invest, or escape poverty because they are often living hand-to-mouth, struggling
to meet their basic needs.
Geographic Poverty Traps
Geographic poverty traps occur in areas that are geographically isolated or marginalized. These regions may lack essential
infrastructure like roads, electricity, and clean water, making it hard for residents to access education, healthcare, and job
opportunities. Limited connectivity to markets and resources can further perpetuate poverty in these areas.
Health Poverty Traps
Health-related poverty traps are linked to poor health and inadequate healthcare access. Individuals in these traps often
face chronic illnesses, lack of preventive care, or insufficient treatment options. Medical expenses can drain their limited
resources, and ill health can limit their ability to work and earn a stable income.
Educational Poverty Traps
Educational poverty traps stem from inadequate access to quality education. High dropout rates, lack of schools, and
limited educational opportunities hinder individuals' ability to acquire skills and knowledge necessary for better
employment prospects. Without education, they may remain trapped in low-paying, low-skilled jobs.
Social Poverty Traps
Social factors such as discrimination, social exclusion, or limited social support networks can create social poverty
traps. These factors may restrict individuals' access to resources, opportunities, and social mobility. Discrimination
based on factors like race, gender, or ethnicity can perpetuate inequality and poverty, and social factors can
perpetuate other types of poverty traps listed within this section.
Generational Poverty Traps
Generational poverty traps occur when poverty is passed down from one generation to the next within families.
Children born into impoverished households may face limited access to quality education, healthcare, and proper
nutrition. These individuals may also face barriers or limitations based on debts or financial limitations passed down
from generation to generation.
Institutional Poverty Traps
Institutional poverty traps are related to weak governance, corruption, and ineffective institutions. Inadequate rule of
law, lack of property rights protection, and rampant corruption can stifle economic growth, discourage
entrepreneurship, and hinder access to essential services like healthcare and education. These institutional
weaknesses can keep individuals and communities in poverty.
REFERENCE;

https://unacademy.com/content/upsc/study-material/polity/the-m
easurements-of-poverty/
https://www.investopedia.com/terms/p/poverty.asp
Michael P. Todaro
Https://www.investopedia.com/terms/p/poverty-trap.asp
https://ophi.org.uk/multidimensional-poverty-index/
https://hdr.undp.org/content/2023-global-multidimensional-pove
rty-index-mpi#/indicies/MPI
THANKYOU