Chapter 3: Poverty as a Challenge

Answer: In India, the poverty line is estimated on the basis of income or consumption level. A person is considered poor if his or her income or consumption level falls below the minimum level needed to satisfy basic needs.

While estimating the poverty line, minimum requirements of food, clothing, footwear, fuel, light, education, medical care and other basic needs are considered. These physical quantities are then multiplied by their prices in rupees.

The calorie requirement is also considered while estimating poverty. The accepted average calorie requirement is higher in rural areas because people there do more physical work. It is fixed at 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas. The poverty line differs for rural and urban areas because prices and living conditions are different.

Answer: The present methodology of poverty estimation is not fully appropriate because it mainly focuses on income or consumption level. Poverty is a wider concept and cannot be measured only by minimum food and basic consumption requirements.

A person may be able to get minimum food but may still lack education, shelter, health care, clean drinking water, sanitation, job security and dignity. Poverty also includes social exclusion, vulnerability, lack of self-confidence and discrimination. Therefore, poverty estimation should include wider human development indicators, not only income and calorie consumption.

Answer: Poverty in India has declined since 1973, but the number of poor people has remained high for a long period.

The percentage of people living below the poverty line declined from about 45 per cent in 1993–94 to 37.2 per cent in 2004–05 and further to about 22 per cent in 2011–12. This shows that the poverty ratio has fallen over time.

However, the decline in the number of poor people was slower in the earlier decades. Even when the percentage of poor declined, the absolute number of poor remained very high because of India’s large population. Rural poverty has generally remained higher than urban poverty. The decline became sharper after economic growth and anti-poverty programmes expanded.

Answer: The major reasons for poverty in India are:

(i) Low economic development under British rule: Colonial policies ruined traditional handicrafts and discouraged industrial growth. This created unemployment and low income.
(ii) Low growth rate after Independence: Until the 1980s, the rate of economic growth was low. This resulted in fewer job opportunities and low income growth.
(iii) High population growth: Rapid population growth reduced the gains of economic development and kept per capita income low.
(iv) Unequal distribution of land and resources: Land and other productive resources are unequally distributed. Many rural people remain landless or own very small plots.
(v) Unemployment and underemployment: Lack of regular employment keeps many people poor, especially agricultural labourers and casual workers.
(vi) Social factors: Poor people often spend a lot on social obligations and religious ceremonies by borrowing money, which pushes them into debt and poverty.

Answer:
These groups are vulnerable because they often lack land, regular employment, education, assets and social security.

Answer: Poverty is not equally distributed across all states of India. Some states have been more successful in reducing poverty, while others continue to have a high poverty ratio.

States such as Bihar, Odisha, Madhya Pradesh, Uttar Pradesh and Assam have had higher poverty levels. On the other hand, states such as Punjab, Haryana, Kerala, Himachal Pradesh and Jammu and Kashmir have shown better success in reducing poverty.

The reasons for inter-state disparities include differences in agricultural growth, land reforms, literacy levels, public distribution system, employment opportunities, social welfare programmes and overall economic development. Kerala has reduced poverty through human resource development, while Punjab and Haryana benefited from agricultural growth.

Answer: Global poverty has declined, but the decline has not been uniform across all regions of the world.

The proportion of people in developing countries living in extreme poverty has fallen over time. Poverty declined substantially in China and Southeast Asian countries because of rapid economic growth and investment in human resource development.

In South Asian countries, including India, Pakistan, Bangladesh, Nepal, Sri Lanka and Bhutan, the decline has been slower. In Sub-Saharan Africa, poverty increased in some periods. In Latin America, the poverty ratio remained almost the same for a long time. Poverty also resurfaced in some former socialist countries such as Russia, where it was officially non-existent earlier.

Thus, while global poverty has declined overall, there are major regional differences.

Answer: The current government strategy of poverty alleviation is based broadly on two main planks:

(i) Promotion of economic growth: Economic growth creates more jobs, increases income and improves the standard of living. Since the 1980s, higher growth has helped reduce poverty in India.

(ii) Targeted anti-poverty programmes: The government has launched various schemes to directly help poor people through employment, self-employment, basic services and social security.

Important anti-poverty programmes include:
(a) Mahatma Gandhi National Rural Employment Guarantee Act, 2005
(b) Prime Minister Rozgar Yojana
(c) Rural Employment Generation Programme
(d) Swarnajayanti Gram Swarozgar Yojana
(e) Pradhan Mantri Gramodaya Yojana

These programmes aim to provide employment, create assets, improve basic services and help poor families become self-reliant.

Answer: Human poverty means poverty seen in a broader sense than only lack of income. It includes lack of education, shelter, health care, job security, self-confidence and dignity. A person may be able to get food but may still be poor if he or she is denied education, healthcare, equal treatment and opportunities. Human poverty also includes social exclusion, caste discrimination, gender discrimination and child labour.

Answer: Women, children, especially the girl child, and elderly people in poor families are considered the poorest of the poor. They are often denied equal access to food, education, healthcare and other resources available to the family. Because of social inequality and family-level discrimination, they suffer more than others even within poor households.

Answer: The main features of the National Rural Employment Guarantee Act, 2005 are:

(i) It provides 100 days of assured wage employment every year to every rural household whose adult members are willing to do unskilled manual work.
(ii) One-third of the proposed jobs are reserved for women.
(iii) It aims to create sustainable assets and address causes of drought, deforestation and soil erosion.
(iv) It helps improve livelihood security in rural areas.
(v) If the government fails to provide employment within the specified time, it has to give unemployment allowance to the applicants.