Poverty as a Challenge
Chapter 3
Exercises.
1. Describe how the poverty line is estimated in India?
Methodology for Estimating the Poverty Line
Data Collection: The Indian government periodically collects data on household consumption expenditure through the National Sample Survey (NSS). The NSS collects data on a wide range of items, including food, clothing, housing, fuel, education, and healthcare.
Expenditure Thresholds: Based on the NSS data, the government defines a set of expenditure thresholds for different categories of goods and services. These thresholds represent the minimum expenditure required to meet basic needs.
Poverty Line Calculation: The poverty line is calculated by determining the monthly per capita expenditure that falls below the specified thresholds. Individuals or households whose per capita expenditure falls below the poverty line are considered to be poor.
Factors Affecting Poverty Line Estimation
Geographical Variation: The poverty line in India is not uniform across the country. Different states have different poverty lines due to variations in local prices, living standards, and access to basic amenities.
Rural-Urban Disparity: The poverty line is set lower for rural areas compared to urban areas, reflecting the lower cost of living in rural settings.
Price Inflation: The poverty line is adjusted periodically to account for inflation, ensuring that the minimum expenditure levels remain relevant to current living costs.
Debates and Challenges: There is ongoing debate about the methodology and adequacy of the poverty line in India. Some argue that the poverty line is set too low, while others believe it should consider additional factors beyond expenditure, such as access to education, healthcare, and sanitation.
Significance of Poverty Line Estimation
Monitoring Poverty Trends: Estimating the poverty line allows the government to track poverty trends over time and assess the effectiveness of poverty reduction programs.
Targeting Poverty Interventions: Identifying individuals or households below the poverty line helps target poverty alleviation programs and ensure that resources reach those who need them most.
Policy Formulation: Poverty line data informs policy decisions related to social welfare, labor, education, and healthcare, aiming to address the root causes of poverty.
2. Do you think that present methodology of poverty estimation is appropriate?
Strengths of the Present Methodology
Focus on Basic Needs: The expenditure-based approach directly addresses the ability of households to meet basic needs, which is a fundamental aspect of poverty.
Regular Updates: The poverty line is periodically adjusted to account for inflation and changing living standards, ensuring its relevance to current economic conditions.
Regional Variations: The poverty line is differentiated between rural and urban areas, reflecting the varying costs of living in different settings.
Limitations of the Present Methodology
Omission of Non-Monetary Factors: The expenditure-based approach solely considers monetary consumption, overlooking non-monetary factors like access to education, healthcare, and sanitation.
Varied Consumption Patterns: Consumption patterns can vary significantly among households due to cultural, social, and geographic factors, which may not be adequately captured by the poverty line.
Subjectivity in Thresholds: The definition of expenditure thresholds for different categories of goods and services can be subjective and open to debate.
Potential Improvements for the Future
Multidimensional Poverty Index: Incorporating non-monetary factors into the poverty line, such as access to healthcare, sanitation, and education, could provide a more comprehensive assessment of poverty.
Household-Specific Consumption Patterns: Considering variations in household consumption patterns and preferences could refine the poverty line to better reflect the actual needs of different groups.
Participatory Approach: Involving stakeholders from various backgrounds, including policymakers, researchers, and community representatives, in the poverty estimation process could enhance its legitimacy and effectiveness.
In conclusion, while the present methodology of poverty estimation in India provides a valuable framework for measuring and tracking poverty, there is scope for improvement by incorporating non-monetary factors, considering household-specific consumption patterns, and adopting a participatory approach.
3. Describe poverty trends in India since 1973?
Ans. Poverty in India has declined significantly since 1973, with the poverty rate falling from over 55% in 1973 to around 5% in 2021. This remarkable progress is attributed to various factors, including economic growth, improved governance, social welfare programs, and increased access to education and healthcare.
Key Trends in Poverty Reduction
Overall Decline: The poverty rate in India has consistently declined over the past four decades, with a significant drop observed between the 1980s and 2000s.
Rural-Urban Disparity: Poverty remains more prevalent in rural areas compared to urban areas, but the gap has narrowed over time.
Regional Variations: Poverty rates vary across different states in India, with some states consistently showing higher poverty levels than others.
Impact of Economic Growth: Economic growth has played a major role in poverty reduction, providing employment opportunities and increasing incomes for many households.
Social Welfare Programs: Government-run social welfare programs, such as the Public Distribution System (PDS) and the National Rural Employment Guarantee Scheme (NREGS), have contributed to poverty alleviation.
Education and Healthcare: Improved access to education and healthcare has empowered individuals and families, enabling them to break out of the poverty cycle.
Gender Gap: The gender gap in poverty has also narrowed, with women experiencing a faster decline in poverty rates compared to men.
Challenges and Future Prospects
Despite the significant progress in poverty reduction, India still faces challenges in fully eradicating poverty. The COVID-19 pandemic has had a disproportionate impact on poor households, and the economic slowdown has affected employment and income generation.
Moving forward, India's efforts to eliminate poverty should focus on:
Sustained Economic Growth: Maintaining economic growth and creating inclusive employment opportunities remain crucial for poverty reduction.
Targeted Interventions: Identifying and targeting the most vulnerable populations and addressing their specific needs is essential for effective poverty alleviation.
Empowerment and Livelihood Support: Empowering individuals through education, skill development, and access to financial services can help them break out of poverty traps.
Social Protection: Expanding social protection programs and providing safety nets for the most vulnerable groups can help mitigate the impact of shocks and crises.
Inclusive Development: Ensuring inclusive development that benefits all sections of society, including marginalized groups, is crucial for sustainable poverty reduction.
By addressing these challenges and continuing to implement effective poverty reduction strategies, India can move closer to its goal of eliminating poverty and achieving a more equitable and prosperous society
4. Discuss the major reasons for poverty in India?
Ans: Poverty in India is a complex and multifaceted issue with deep historical roots. While significant progress has been made in reducing poverty over the past few decades, India still faces numerous challenges in fully eradicating poverty. Several factors contribute to the persistence of poverty in India, including:
1. Rapid Population Growth:
India's population has been growing rapidly for decades, putting a strain on resources and making it difficult to provide adequate employment and basic necessities for everyone. With a population of over 1.4 billion, India is the second most populous country in the world.
2. Low Agricultural Productivity:
Agriculture is the primary source of income for a large portion of India's population, particularly in rural areas. However, agricultural productivity remains low due to factors such as fragmented landholdings, outdated cultivation methods, and lack of access to modern technologies and inputs.
3. Unemployment and Underemployment:
India has a large workforce, but not enough jobs to accommodate everyone. This has led to high rates of unemployment and underemployment, particularly among the youth and marginalized groups. The lack of employment opportunities limits people's ability to earn an income and escape poverty.
4. Unequal Distribution of Income and Wealth:
India has a significant income and wealth gap, with a small percentage of the population controlling a large share of the nation's resources. This inequality contributes to persistent poverty, as the benefits of economic growth often do not reach the most vulnerable groups.
5. Social Exclusion and Discrimination:
Social factors such as caste, gender, and tribal status can contribute to poverty by limiting access to education, employment, and other opportunities. Discrimination based on these factors can perpetuate poverty across generations.
6. Inadequate Access to Education and Healthcare:
Limited access to quality education and healthcare can trap individuals and families in poverty. Education empowers people to acquire skills and knowledge, while healthcare is essential for maintaining good health and productivity.
7. Lack of Infrastructure and Basic Amenities:
Poor infrastructure, such as roads, electricity, and sanitation, can hinder economic development and limit access to essential services. This lack of infrastructure can disproportionately affect rural areas and marginalized communities.
8. Natural Disasters and Climate Change:
Natural disasters such as floods, droughts, and cyclones can have a devastating impact on poor households, wiping out livelihoods and causing economic hardship. Climate change is expected to intensify these extreme weather events, further exacerbating poverty.
9. Corruption and Inefficient Governance:
Corruption and inefficient governance can divert resources away from poverty alleviation programs and hinder the implementation of effective poverty reduction strategies. Lack of transparency and accountability can undermine efforts to address the root causes of poverty.
Addressing these complex and interrelated factors requires a multifaceted approach that encompasses economic development, social inclusion, good governance, and sustainable development strategies. By investing in education, healthcare, infrastructure, and social protection programs, India can continue to make progress in eradicating poverty and building a more equitable and prosperous society.
5. Identify the social and economic groups which are most vulnerable to poverty in India.
1. Scheduled Castes (SCs): SCs, also known as Dalits, are the most marginalized group in India, facing discrimination and exclusion based on their caste status. They have historically been denied access to education, employment, and other basic rights, leading to high poverty rates.
2. Scheduled Tribes (STs): STs are indigenous groups with distinct cultures and traditions, often residing in remote and inaccessible areas. They face challenges of social isolation, lack of access to resources, and limited opportunities for economic development.
3. Rural Agricultural Laborers: A significant portion of India's rural population relies on agricultural labor for their livelihood. However, low wages, seasonal employment, and vulnerability to natural disasters make them highly susceptible to poverty.
4. Urban Casual Laborers: Urban casual laborers, who engage in temporary and unskilled work in urban areas, face similar challenges of low wages, irregular employment, and lack of social security. They are particularly vulnerable to economic shocks and downturns.
5. Women: Women in India face gender-based discrimination in education, employment, and access to resources. They are often unpaid for their domestic work and have limited control over household finances, making them more vulnerable to poverty.
6. Children: Children from poor families often lack access to quality education and healthcare, hindering their future prospects and perpetuating the cycle of poverty. Child labor is also prevalent in certain sectors, further exacerbating their vulnerability.
7. Elderly: Older adults, particularly those without family support or adequate pensions, are at risk of poverty due to limited income-earning opportunities and high healthcare expenses.
8. Persons with Disabilities: People with disabilities face discrimination in education, employment, and public services, making it difficult for them to earn a living and escape poverty.
Addressing the poverty of these marginalized groups requires a comprehensive approach that tackles both the root causes of their vulnerability and provides targeted interventions to improve their access to education, employment, healthcare, and social protection.
6. Give an account of interstate disparities of poverty in India.
7. Describe global poverty trends.
Progress in Poverty Reduction
Extreme poverty, defined as living on less than $1.90 (PPP) per day, has declined substantially since 1990. In 1990, 1.9 billion people, representing 36% of the global population, lived in extreme poverty. By 2015, that number had fallen to 736 million, or 10% of the global population. This remarkable progress is attributed to factors such as economic growth, improved governance, social welfare programs, and increased access to education and healthcare.
Regional Variations in Poverty
Despite the overall decline in global poverty, there are significant regional disparities. Sub-Saharan Africa remains the region with the highest poverty rate, with 46% of the population living on less than $1.90 per day. South Asia is another region with a high poverty rate, with 16% of the population living below the poverty line. In contrast, East Asia and the Pacific have the lowest poverty rate, with only 2.3% of the population living in extreme poverty.
Impact of COVID-19 and Ongoing Crises
The COVID-19 pandemic has had a disproportionate impact on the world's poorest, reversing years of progress in poverty reduction. The World Bank estimates that the pandemic pushed an additional 70 to 90 million people into extreme poverty in 2020. The pandemic caused widespread job losses, disruptions to supply chains, and increased food prices, all of which exacerbated existing poverty conditions.
Ongoing conflicts and crises, such as the war in Ukraine and the Syrian civil war, have also contributed to a rise in poverty. These conflicts have displaced millions of people, disrupted economies, and created widespread food insecurity.
Challenges in Measuring Poverty
Measuring poverty is a complex task, and there is no single definition that is universally accepted. The World Bank's $1.90 per day poverty line is based on the cost of a minimum food basket in low-income countries. However, this line is not without its critics, who argue that it does not adequately capture the non-monetary factors that contribute to poverty, such as access to education, healthcare, and sanitation.
Future Prospects for Poverty Reduction
The global community has set ambitious goals for poverty reduction, including the Sustainable Development Goal of ending extreme poverty by 2030. However, achieving these goals will require concerted efforts to address the challenges posed by COVID-19, ongoing conflicts, and climate change.
Key Priorities for Future Poverty Reduction Efforts
Supporting inclusive economic growth: Creating jobs and opportunities for the poor is essential for sustainable poverty reduction.
Investing in human capital: Education, healthcare, and skills training can help people to break out of the cycle of poverty.
Strengthening social protection: Social safety nets can help to protect the most vulnerable from the impacts of shocks and crises.
Promoting good governance: Effective and transparent governance is essential for ensuring that resources are used effectively and that policies are implemented fairly.
Addressing climate change: Climate change is a major threat to poverty reduction efforts, and it is essential to build resilience in vulnerable communities.
By addressing these challenges and prioritizing inclusive and sustainable development, the global community can continue to make progress in reducing poverty and building a more equitable world.
8. Describe current government strategy of poverty alleviation?
.Promoting economic growth: The government believes that the best way to alleviate poverty is to create jobs and opportunities for people to earn a living. This involves investing in infrastructure, education, and skills training.
.Targeted anti-poverty programs: The government also runs a number of targeted anti-poverty programs, such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which provides 100 days of guaranteed employment per year to rural households.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)Opens in a new window theinquisitivecircle.wordpress.com
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
The MGNREGA is one of the largest poverty alleviation programs in the world, and it has been credited with helping to reduce poverty in rural India. However, the program has also been criticized for its high cost and administrative inefficiency.
Other targeted anti-poverty programs include the Pradhan Mantri Gramodaya Yojana (PMGY), which provides basic services such as rural electrification, rural drinking water, rural shelter, primary education, and health services to rural households; and the Pradhan Mantri Rozgar Yojana (PMRY), which provides loans to small businesses in rural areas.
The government has also taken steps to improve the targeting of its poverty alleviation programs. For example, it has introduced a new system of identifying poor households, and it is using technology to improve the delivery of benefits.
In addition to the two main pillars of the government's strategy, there are a number of other initiatives that are being taken to alleviate poverty in India. These include:
.Promoting financial inclusion: The government is working to increase access to financial services for poor households. This includes providing microloans and other forms of credit, as well as developing new financial products that are tailored to the needs of the poor.
.Empowering women: The government recognizes that women play a key role in the fight against poverty. It is therefore working to empower women through education, skills training, and access to credit.
.Improving nutrition: The government is also working to improve nutrition levels in India. This includes promoting breastfeeding, providing food supplements to pregnant women and children, and educating people about the importance of a healthy diet.
These are just a few of the many initiatives that are being taken to alleviate poverty in India. The government is committed to reducing poverty and improving the lives of all Indians.
9. Answer the following questions briefly
(i) What do you understand by human poverty?
Multidimensional Aspects of Human Poverty
1. Income Poverty: The inability to afford basic necessities such as food, clothing, and shelter falls under income poverty. This can lead to malnutrition, inadequate living conditions, and limited access to essential goods and services.
2. Educational Deprivation: Lack of access to quality education perpetuates poverty by limiting employment opportunities and hindering personal development. Education provides individuals with the skills and knowledge necessary to break the cycle of poverty.
3. Health Deprivation: Poor health conditions can significantly impact earning potential and overall well-being. Lack of access to healthcare, inadequate nutrition, and exposure to hazardous environments contribute to health deprivations that reinforce poverty.
4. Nutritional Deprivation: Malnutrition, particularly in children, leads to stunted growth, impaired cognitive development, and increased susceptibility to diseases, hindering their future potential and perpetuating the cycle of poverty.
Addressing Human Poverty
Tackling human poverty requires a comprehensive approach that addresses its multidimensional aspects. Effective strategies include:
1. Economic Empowerment: Promoting economic growth, providing employment opportunities, and ensuring fair wages are essential for lifting people out of income poverty.
2. Quality Education: Investing in quality education for all, particularly girls, provides individuals with the skills and knowledge necessary to break the cycle of poverty.
3. Universal Healthcare: Ensuring access to affordable and quality healthcare is crucial for improving health outcomes and reducing the burden of poverty related to health issues.
4. Nutritional Interventions: Addressing malnutrition through targeted programs, such as supplying fortified foods and promoting breastfeeding, can significantly improve child development and break the cycle of poverty.
Eradicating human poverty requires a concerted effort from governments, international organizations, civil society, and individuals. By addressing the multidimensional aspects of poverty and implementing comprehensive strategies, we can create a world where everyone has the opportunity to live a dignified and fulfilling life.
(ii) Who are the poorest of the poor?
Characteristics of the Poorest of the Poor
1. Chronic Income Deprivation: They consistently fall below the poverty line, unable to afford basic necessities and struggling to meet their daily needs.
2. Limited Access to Education: They lack access to quality education, hindering their ability to develop skills, secure employment, and improve their economic situation.
3. Severe Health Deprivations: They face poor health conditions due to inadequate nutrition, lack of access to healthcare, and exposure to hazardous environments.
4. Inadequate Housing and Sanitation: They live in unsafe and unsanitary conditions, with limited access to clean water and proper sanitation facilities.
5. Social Exclusion and Discrimination: They face marginalization and discrimination based on their socioeconomic status, gender, ethnicity, or other factors, limiting their opportunities and perpetuating poverty.
Examples of the Poorest of the Poor
1. Street Children: Children living on the streets have no access to education, healthcare, or social support, making them among the most vulnerable and deprived individuals.
2. Refugees and Internally Displaced Persons: Forced to flee their homes due to conflict or persecution, these individuals often lack access to basic services, employment opportunities, and legal protections.
3. People with Disabilities: Individuals with disabilities often face discrimination and limited access to education, employment, and healthcare, making them more susceptible to poverty.
Addressing the Plight of the Poorest of the Poor
1. Targeted Poverty Reduction Programs: Implementing targeted programs to address the specific needs of the poorest, such as providing food assistance, education support, and healthcare interventions.
2. Empowerment and Social Inclusion: Promoting social inclusion and empowering the poorest through education, skills training, and access to credit, enabling them to participate more fully in society and improve their livelihoods.
3. Inclusive Development Policies: Pursuing inclusive development policies that focus on the poorest and most marginalized groups, ensuring that they benefit from economic growth and social progress.
4. Strengthening Social Protection Systems: Expanding and strengthening social protection systems to provide safety nets and support for the poorest, especially during times of crisis.
(iii) What are the main features of the National Rural Employment Guarantee Act 2005?
The main features of the NREGA are as follows:
1. Legal Guarantee: The NREGA provides a legal guarantee of 100 days of wage employment in a financial year to every adult member of a rural household who demands work and is willing to do unskilled manual work. This is a significant departure from previous employment schemes, which were based on voluntary participation and were not legally enforceable.
2. Demand-Driven: The NREGA is a demand-driven scheme, meaning that individuals are entitled to work if they demand it. This is in contrast to previous employment schemes, which were often supply-driven and did not always meet the demand for work.
3. Unskilled Manual Work: The NREGA provides employment in unskilled manual work, which is suitable for a large majority of the rural population. This makes the scheme more inclusive than previous employment schemes, which often required specific skills or qualifications.
4. Minimum Wage: The NREGA guarantees a minimum wage to all workers. The minimum wage is revised from time to time and is linked to the cost of living.
5. Transparency and Accountability: The NREGA is designed to be transparent and accountable. The scheme is subject to social audits and independent monitoring.
6. Empowerment of Women: The NREGA specifically provides for the empowerment of women. At least one-third of the jobs created under the scheme must be reserved for women.
7. Diversification of Livelihoods: The NREGA has led to a diversification of livelihoods in rural areas. Many households that were previously solely dependent on agriculture are now able to supplement their income with work under the NREGA.
8. Food Security: The NREGA has helped to improve food security in rural areas. The scheme provides a steady income to households, which allows them to purchase food more easily.
The NREGA is a complex and ambitious scheme, and there are some challenges associated with its implementation. However, the scheme has been a significant success in reducing poverty, promoting social inclusion, and improving food security in rural India.
