WHAT IS POVERTY?

Poverty is the state of one who lacks a certain amount of material possessions or
money. Absolute poverty or destitution refers to the deprivation of basic human
needs, which commonly includes food, water, sanitation, clothing, shelter, health
care and education. Relative poverty is defined contextually as economic
inequality in the location or society in which people live.
For much of history, poverty was considered largely unavoidable as traditional
modes of production were insufficient to give an entire population a comfortable
standard of living. After the industrial revolution, mass production in factories
made wealth increasingly more inexpensive and accessible. f more importance is
the moderni!ation of agriculture, such as fertili!ers, in order to provide enough
yields to feed the population. "he supply of basic needs can be restricted by
constraints on government services such as corruption, illicit capital flight, debt
and loan conditionalities and by the brain drain of health care and educational
professionals. #trategies of increasing income to make basic needs more affordable
typically include welfare, economic freedom, and providing financial services.
Poverty reduction is a ma$or goal and issue for many international organi!ations
such as the %nited &ations and the 'orld (ank. "he 'orld (ank estimated ).*+
billion people were living in absolute poverty in *,,-. f these, about .,, million
people in absolute poverty lived in /ndia and )01 million people in 2hina. /n terms
of percentage of regional populations, sub3#aharan Africa at .04 had the highest
incidence rate of absolute poverty in *,,-. (etween )++, and *,),, about 551
million people moved above the absolute poverty level. #till, extreme poverty is a
global challenge6 it is observed in all parts of the world, including the developed
economies.
WHO ARE POOR?
"he controversy over who in /ndia is 7poor8 enough to receive state support has
been partially laid to rest. A $oint statement by the 9eputy 2hairman of the
Planning 2ommission and the :inister for Rural 9evelopment has declared that
data collected by the #ocio3;conomic 2aste 2ensus <#;22=, *,)) will be the basis
for identifying those deemed eligible for entitlements under various central
government programs.
/ndia8s official poverty estimates based on the Planning 2ommission8s
7methodology8 will not be used to cap the number of households considered
eligible. "he immediate need for this clarification was the controversy over an
affidavit filed by the Planning 2ommission in a case in the #upreme 2ourt. "hat
affidavit was doubly problematic. n the one hand, without qualification, it
declared a particular per person daily expenditure as the level at or below which a
person was 7officially8 poor.
n the other hand, given the context, it implicitly suggested that this figure
provided the benchmark to assess how many of /ndia8s citi!ens qualified as eligible
for state subsidies or support. "he numbers that defined a person as poor appalled
the media and the public> a measly Rs.1* or less in urban areas or Rs.*5 or less in
rural areas in a day.
'hat is not adequately stressed is that even these figures represent a considerable
improvement on what used to be /ndia8s much3discussed poverty line ? computed
by inflating an expenditure level from )+0130. that ensured an adequate calorific
intake. /t was when that original poverty line was being considered as a possible
cap to identify 7beneficiaries8 eligible for government support that officialdom too
realised its gross inadequacy.
'hat followed was an effort by the #uresh "endulkar 2ommittee to revise upwards
the poverty line, applying principles that were arbitrary. "his effort was not without
intent. /t furthered the official agenda of curtailing subsidies, including those on
food. Reducing subsidies required a step3wise process in which the "endulkar
2ommittee estimates played a part.
"he first of these steps was to move from a P9# that offered self3selecting
universal access to one that was targeted at those below the poverty line.
"he second was to identify a set of indicators the prevalence of which could help
identify the (P@ population. And the third was to apply those indicators with a
severity that ensured that only that proportion of the population in individual #tates
that were under the poverty line would qualify for state support. ;xperience
suggests that the consequence of such targeting is that many deserving support are
left out, whereas many not needing it are identified as eligible. %niversal access is
the solution and the additional costs are unlikely to be high. "his, unfortunately, is
the lesson that the current 7retreat8 to the #;22 does not fully take account of.
MEANING OF POVERTY
Poverty is about not having enough money to meet basic needs including food,
clothing and shelter. Aowever, poverty is more, much more than $ust not having
enough money.
"he 'orld (ank rgani!ation describes poverty in this way>
Poverty is hunger. Poverty is 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, living one day at a
time.
Poverty has many faces, changing from place to place and across time, and has
been described in many ways. Most often, poverty is a situation people want to
escape. So poverty is a call to action -- for the poor and the wealthy alike -- a call
to change the world so that many more may have enough to eat, adequate
shelter, access to education and health, protection from violence, and a voice in
what happens in their communities.
/n addition to a lack of money, poverty is about not being able to participate in
recreational activities6 not being able to send children on a day trip with their
schoolmates or to a birthday party6 not being able to pay for medications for an
illness.
"hese are all costs of being poor. "hose people who are barely able to pay for food
and shelter simply can8t consider these other expenses. 'hen people are excluded
within a society, when they are not well educated and when they have a higher
incidence of illness, there are negative consequences for society.
'e all pay the price for poverty. "he increased cost on the health system, the
$ustice system and other systems that provide supports to those living in poverty
has an impact on our economy.
'hile much progress has been made in measuring and analy!ing poverty, the
'orld (ank rgani!ation is doing more work to identify indicators for the other
dimensions of poverty. "his work includes identifying social indicators to track
education, health, access to services, vulnerability, and social exclusion.
"here is no one cause of poverty, and the results of it are different in every case.
Poverty varies considerably depending on the situation. Feeling poor in 2anada is
different from living in poverty in Russia or Bimbabwe. "he differences between
rich and poor within the borders of a country can also be great.
9espite the many definitions, one thing is certain6 poverty is a complex societal
issue. &o matter how poverty is defined, it can be agreed that it is an issue that
requires everyone8s attention. /t is important that all members of our society work
together to provide the opportunities for all our members to reach their full
potential. /t helps all of us to help one another.
DEFINITIONS OF POVERTY
Wikipedias definition>
Poverty is the deprivation of common necessities such as food, clothing, shelter
and safe drinking water, all of which determine our quality of life. t may also
include the lack of access to opportunities such as education and employment
which aid the escape from poverty and!or allow one to enjoy the respect of fellow
citi"ens.#
According to Mollie Orsa!sk" who developed the poverty measurements used
by the %.#. government, Cto be poor is to be deprived of those goods and services
and pleasures which others around us take for grantedD.
"he definition agreed by the World S#$$i% o! So&ial De'elop$e!% i!
(ope!a)e! i! *++,-
Poverty is a condition characteri"ed by severe deprivation of basic human
needs, including food, safe drinking water, sanitation facilities, health, shelter,
education and information.
t depends not only on income but also on access to services. t includes a lack of
income and productive resources to ensure sustainable livelihoods$ hunger and
malnutrition$ ill health$ limited or lack of access to education and other basic
services$ increased morbidity and mortality from illness$ homelessness and
inadequate housing$ unsafe environments and social discrimination and
e%clusion. t is also characteri"ed by lack of participation in decision making
and in civil, social and cultural life.
t occurs in all countries& as mass poverty in many developing countries, pockets
of poverty amid wealth in developed countries, loss of livelihoods as a result of
economic recession, sudden poverty as a result of disaster or conflict, the poverty
of low-wage workers, and the utter destitution of people who fall outside family
support systems, social institutions and safety nets.#
"he .N definition>
'(undamentally, poverty is a denial of choices and opportunities, a violation of
human dignity. t means lack of basic capacity to participate effectively in
society. t means not having enough to feed and clothe a family, not having a
school or clinic to go to$ not having the land on which to grow one)s food or a
job to earn one)s living, not having access to credit. t means insecurity,
powerlessness and e%clusion of individuals, households and communities. t
means susceptibility to violence, and it often implies living on marginal or
fragile environments, without access to clean water or sanitation.#
"here8s also the very interesting definition by Da'id Gordo! in his paper,
I!di&a%ors o/ Po'er%" 0 H#!)erD
'Poverty is the absence of any two or more of the following eight basic needs&
(ood& *ody Mass nde% must be above +,.
Safe drinking water& -ater must not come from solely rivers and ponds,
and must be available nearby .less than +/ minutes) walk each way0.
Sanitation facilities& 1oilets or latrines must be accessible in or near the
home.
2ealth& 1reatment must be received for serious illnesses and pregnancy.
Shelter& 2omes must have fewer than four people living in each room.
(loors must not be made of dirt, mud, or clay.
3ducation& 3veryone must attend school or otherwise learn to read.
nformation& 3veryone must have access to newspapers, radios,
televisions, computers, or telephones at home.
4ccess to services such as education, health, legal, social, and financial
.credit0 services.#
And there8s the equally interesting but completely different definition by Pe%er
To1!se!d-
'ndividuals, families and groups in the population can be said to be in poverty
when they lack the resources to obtain the types of diet, participate in the
activities and have the living conditions and amenities which are customary, or
are at least widely encouraged or approved, in the societies to which they belong.
1heir resources are so seriously below those commanded by the average
individual or family that they are, in effect, e%cluded from ordinary living
patterns and activities.#
"here are, of course, many other definitions, but if we stick to these examples and
summari!e them, we can conclude that poverty is the impossibility to meet certain
basic needs or the absence of certain necessities or resources>
education EE
work EE
power EE
representation EE
freedom EE
information EE
trust in the future <absence of fear= EEE
access to opportunities and choices food E
clothing E
shelter E
sanitation E
clean water E
health EE
respect EEE
self3esteem EEE
dignity EEE
inclusion, participation in social and cultural life EEE
/ndependence EEE.
All of these needs and resources are valuable and important in themselves, but /
think we can distinguish them according to certain types. For example, you8re not
necessarily poor if you8re uneducated. / can think of many uneducated rich people.
And all poor people aren8t necessarily without an education. #o / would propose
the following distinction>
Food, clothing, shelter, sanitation and clean water are needs that are directly linked
to poverty. Fou are, by definition, poor if you lack one of these resources <and you
may even die=. / call these first3level3resources <marked with E=.
Aealth, education, work, representation, power, freedom and information, are
resources, the lack of which can <but doesn8t have to= make you poor G poor in the
sense of not having the first types of resources G and the presence of which is
necessary to escape poverty. / call these second3level3resources or supporting
resources <marked with EE=.
Respect, self3esteem, dignity, inclusion, participation, trust in the future and the
absence of fear, and opportunities, are resources which, like health, education etc.,
you may lose when you become poor, but which do not really help you to escape
poverty. / call these third3level3resources or concomitant resources <marked with
EEE=.
H/&9# F PI;R"F
1) I!&o$e po'er%" happens when a household takes in less than one %# dollar
per day. "his means that people will not have enough food or medicine and
they will have poor clothes and houses. /ncome poverty is due to people not
having access to money or other assets. /f people do not have any other
assets like land to grow their own food, then income poverty can result in
stunted growth and early death.
"he best way to reduce income poverty is to encourage and support the
development of effective businesses <small, medium and large= which make good
use of our natural resources and talents to create wealth and $obs
2) No! i!&o$e po'er%" happens when people may have a little bit of money
but otherwise the quality of their life is not good. "hey do not have access to
affordable social and physical services <schooling, health care, medicines,
safe water, good sanitation, good transport= and they may not feel safe in
their homes either because they cannot trust the authorities or because they
belong to some particularly vulnerable group
"he best way to reduce non3income poverty it to make sure that people have access
to affordable and good quality social services and infrastructure, that they feel
secure in their homes, that they trust the authorities and, if they are vulnerable, that
there are safety net programmes to protect them
DIMENSIONS OF POVERTY
1. A $a%erial di$e!sio! 2/ood3 &lo%i!) e%&45
2. A ps"&olo)i&al di$e!sio! 2respe&%3 sel/6es%ee$3 %r#s%3 /ear5
3. A poli%i&al di$e!sio! 2po1er3 represe!%a%io!5 a!d
4. A so&ial di$e!sio! 2ed#&a%io!3 eal%3 1ork=.
"he latter * dimensions point to the fact that poverty, while often suffered alone
and in solitude, requires social cooperation if it is to be eliminated.
"he material, political and social dimensions can, to some extent, be measured,
which is necessary if we want to have an idea of the importance of the problem, its
evolution over time, and the effectiveness and success of policy measures aimed to
combat poverty. ne can measure nutrition, housing, income, access to certain
services, standard of living, quality of life etc.
"he psychological dimension is much more difficult to measure, but no less
important. "his dimension also shows us that poverty is not $ust a matter of the
current state one is in, and the resources one has or doesn8t have. /t is also about
vulnerability, about the future, about trust and fear. And it also has a relative side
<obvious from the "ownsend definition given above=, which attaches itself to the
problem of our current level of resources <the absolute side=> poverty means
comparing yourself to others, feeling like a failure, humiliated, shameful etc.
(A.SES OF POVERTY
*4 Rapidl" Risi!) Pop#la%io!- "he population during the last .J years has
increased at the rate of *.*4 per annum. n average )0 million people are added
every year to its population which raises the demand for consumption goods
considerably.
74 8o1 Prod#&%i'i%" i! A)ri&#l%#re- "he level of productivity in agriculture is
low due to subdivided and fragmented holdings, lack of capital, use of traditional
methods of cultivation, illiteracy etc. "his is the main cause of poverty in the
country.
94 .!der .%ili:ed Reso#r&es- "he existence of under employment and disguised
unemployment of human resources and underutili!ation of resources has resulted
in low production in agricultural sector. "his brought a down fall in their standard
of living.
;4 8o1 Ra%e o/ E&o!o$i& De'elop$e!%- "he rate of economic development in
/ndia has been below the required level. "herefore, there persists a gap between
level of availability and requirements of goods and services. "he net result is
poverty.
,4 Pri&e Rise- "he continuous and steep price rise has added to the miseries of
poor. /t has benefited a few people in the society and the persons in lower income
group find it difficult to get their minimum needs.
<4 .!e$plo"$e!%- "he continuously expanding army of unemployed is another
cause of poverty. "he $ob seeker is increasing in number at a higher rate than the
expansion in employment opportunities.
=4 Sor%a)e o/ (api%al a!d A>le E!%repre!e#rsip- 2apital and able
entrepreneurship have important role in accelerating the growth. (ut these are in
short supply making it difficult to increase production significantly.
?4 So&ial Fa&%ors> "he social set up is still backward and is not conducive to faster
development. @aws of inheritance, caste system, traditions and customs are putting
hindrances in the way of faster development and have aggravateK the problem of
poverty.
+4 Poli%i&al Fa&%ors- "he (ritishers started lopsided development in /ndia and
reduced /ndian economy to a colonial state. "hey exploited the natural resources to
suit their interests and weaken the industrial base of /ndian economy.
/n independent /ndia, the development plans have been guided by political
interests. Aence, the planning a failure to tackle the problems of poverty and
unemployment.
@E8OW POVERTY 8INE
(elow Poverty @ine is an economic benchmark and poverty threshold used by the
government of /ndia to indicate economic disadvantage and to identify individuals
and households in need of government assistance and aid. /t is determined using
various parameters which vary from state to state and within states. "he present
criteria are based on a survey conducted in *,,*. Loing into a survey due for a
decade, /ndiaMs central government is undecided on criteria to identify families
below poverty line.
/nternationally, an income of less than N).*J per day per head of purchasing power
parity is defined as extreme poverty. (y this estimate, about .,4 percent of
/ndians are extremely poor. /ncome3based poverty lines consider the bare
minimum income to provide basic food requirements6 it does not account for other
essentials such as health care and education.
TEND.8AAR (OMMITTEE
Poverty is a multi3dimensional concept. fficial statistics in /ndia have always
referred, arguably narrowly, to only income poverty <using the proxy measure of
consumption expenditure from the &## surveys=."he #uresh "endulkar
2ommittee report submitted to the Planning 2ommission is the latest input to the
CLreat /ndian Poverty 9ebateD. 'hile the increase in the number of poor
households, as suggested by the "endulkar 2ommittee, may indeed help expand
the coverage of welfare schemes, it would still fall short of including all the needy
sections from the ambit of such schemes. ne would welcome the newly suggested
methodology for arriving at a strictly technical measure of poverty. Aowever, it is
important to insist that the new estimates are not mechanically linked to the issue
of eligibility to access ma$or welfare schemes.
"he report of the expert group on the estimation of poverty led by Professor #uresh
"endulkar has been submitted to the Planning 2ommission. Apart from issues of
comparability of data across &## rounds, the most important "oR for the
committee was to Creview alternative conceptuali!ations of poverty, and the
associated technical aspects of procedures of measurement and database for
empirical estimationD of poverty in /ndia.

Poverty, of course, is a multi3dimensional concept. Aowever, official statistics in
/ndia have always referred, arguably narrowly, to only income poverty <using the
proxy measure of consumption expenditure from the &## surveys=. /n /ndia, we
have been using a calorie3based procedure to fix the poverty line as the minimum
level of expenditure that would enable a person to purchase a specified food
basket. A task force of the Planning 2ommission in )+0+ defined the poverty line
as that per capita expenditure at which the average per capita per day calorie intake
was *.,, calories in rural areas and *),, calories in urban areas. "his task force
used age3sex3activity specific calorie allowances recommended by a &utrition
;xpert Lroup in )+5- to estimate the average daily per capita calorie requirements
for rural and urban areas. ;stimates of average expenditure incurred by that
population in each #tate that consumed these quantities of calories as per the )+013
0. survey of &## were fixed as poverty lines.

(ased on the observed consumer behaviour in )+0130., it was estimated by the
task force that an expenditure of Rs .+.,+ per capita per month was associated with
a calorie intake of *.,, per capita per day in rural areas and Rs J5.5. per capita
per month with a calorie intake of *),, per day in urban areas. "hese poverty lines
were updated for future years by simply accounting for the changes in consumer
price indices. As such, the all3/ndia poverty lines updated for *,,.3,J were Rs
1J5.1, in rural areas and Rs J1-.5, in urban areas, all per capita per month. "he
shares of population below these poverty lines <the head count ratios6 A2R= were
estimated to be *-.0 per cent in rural areas and *J.+ per cent in urban areas.

"hese estimates of poverty threw up a number of controversies. First, the &##
estimates of poverty were arrived at using poverty lines that were extremely low in
levels. An amount of Rs 1J5.1, per month per person amounted to $ust Rs )).+,
per day in rural areas, which was at best a destitute income. "he fact that about
one3fourth of /ndia8s population did not incur even this level of expenditure was in
itself a revealing point.

#econdly, the levels of poverty and deprivation reported from independent surveys,
including village surveys, were far higher than the &## estimates of poverty.
"hirdly, the &## estimates were at great variance with estimates of nutritional
outcomes that other surveys like the &ational Family Aealth #urvey <&FA#=
provided. For instance, according to the &FA#31 in *,,J3,5, the share of
underweight children <under 1 years= in rural /ndia was .. per cent and the share of
stunted children in rural /ndia was .) per cent. Among women in the age group of
)J to .+ years, J- per cent were anemic and 1+ per cent had below normal body
mass index <(:/=.
Fourthly, there were ma$or methodological issues involved in the use of consumer
price indices, continuously re3weighted keeping the )+0130. consumption basket
unchanged, to update the poverty lines over time. "he consumption basket of rural
and urban persons had changed significantly after )+0130.. ne striking absurdity
that resulted was that in some #tates, urban poverty rates were estimated to be
higher than the rural poverty rates.

"he "endulkar committee has reviewed the present methodology for measuring
poverty and has suggested ma$or changes for the future. "hese changes may be
crudely summari!ed as follows>

*5 Liven the poor correlation between calorie consumption levels and nutritional
outcomes, the calorie3norm for estimating the poverty line should be abandoned.
/nstead, the committee has suggested a new method.
75 "his new method involves the consideration of the present all3/ndia urban
poverty line as the basis for every other poverty line. "his consideration is $ustified
on the basis of two independent validating reasons>
"he population that corresponded in *,,.3,J to the poverty line expenditure
in urban areas consumed )005 calories per capita per day, which was close
to the calorie norm of )-,, calories per capita per day suggested for /ndia by
the Food and Agriculture rgani!ation <FA=.
"he actual levels of per capita expenditure in urban areas in *,,.3,J were
also sufficient to meet a defined Cnormative level of expenditure on
education and health servicesD.
95 "he all3/ndia urban poverty line has to be consistently estimated based on the
mixed reference period method <using a combined 15J days and 1, days recall=
rather than the present uniform reference period method <using a uniform 1, day
recall=.

;5 'ith the present all3/ndia urban poverty line as the basis, the 2ommittee has
recommended the identification of its parity levels at the #tate3level for rural and
urban areas separately. "hus, applying purchasing power parity <PPP=, separate
rural and urban poverty lines are to be estimated for each #tate at which the levels
of consumption in the urban areas can be sustained.

,5 /t is thus postulated that the new poverty lines, fortuitously, meet not $ust food
expenditure requirements, but also those of education and health that are important
basic needs.

%sing the above method, the new poverty lines for *,,.3,J have been re3estimated
by the committee as Rs ..5.5- for rural areas and Rs J0-.-, for urban areas <per
capita per month=. %sing these poverty lines, the A2Rs in *,,.3,J were estimated
as .).- per cent in rural areas and *J.0 per cent in urban areas. "hese new
estimates are an upward revision in rural areas from *-.0 per cent as per the old
method, and a slight downward revision in urban areas from *J.+ per cent as per
the old method. "he upward revision in the rural areas is due to the use of the PPP
method, which has reduced the urban3rural price differentials implicit in the
present method of estimation.

"he upward revision of rural poverty by the committee is indeed a welcome step,
as this would help #tates to expand their (P@ coverage in the public distribution
system <P9#= using grains from the central quota itself. /t is also welcome that
non3food expenditures like those on education and health have not $ust been
included <in fact, there was an allowance in the earlier method too=, but also that
provisions have been made to update them across time. Aowever, these steps solve
only a part of the problem, as the system of targeting in welfare schemes like the
P9# is likely to remain in place and large sections of poor people above the new
poverty line would remain outside targeted welfare provisions.

"ake an example> the new poverty line for rural areas has been revised from Rs
1J5.1, per capita per month to Rs ..5.5- per capita per month. /n daily terms, this
means an increase from Rs )* to Rs )J per capita. "his is $ust a meager upward
revision. For urban areas too, the increase is meager6 the revision of poverty line is
from Rs J1-.5, per capita per month <Rs )- per day= to Rs J0-.- per capita per
month <Rs)+ per day=. /n other words, the new poverty line continues to be
extremely low in levels and keep a large section of the population outside the
definition of the CpoorD.

Ouxtapose this with the fact that 00 per cent of the population lived at less than Rs
)5 per day with respect to expenditure in *,,.3,J. /n *,,.3,J, the average :P2;
of those households with expenditure less than double the poverty line <i.e., of the
00 per cent6 the Cpoor and vulnerableD, as classified by the &2;%# report= was
only Rs .-5, or Rs )5 per day. /f the average expenditure stands at Rs )5 per day,
there is likely to be a si!eable section of the population above the newly suggested
poverty line of Rs )J per day in rural areas and Rs )+ per day in urban areas. /n a
targeted welfare provision, these sections of the population would remain to be
excluded.

Another central question is whether abandoning the calorie norm is a wise step or
not. /t is true that calorie intakes were poorly correlated with nutritional outcomes
<as in the famous case of Herala=. Aowever, abandoning the calorie norm
altogether and taking solace from the fact that calorie intakes appear to be adequate
at the new poverty lines is an overstretched and arbitrary proposition. /t is unclear
whether there is any basis, theoretical or empirical, for this relationship to hold at
all the years to come.

"he "endulkar 2ommittee report is the latest input to the CLreat /ndian Poverty
9ebateD. "he reason for the rising contestation around poverty data in the recent
years is the use of A2Rs to arbitrarily fix the number of households eligible for
many important welfare benefits, such as the P9#. /n this method, the questions of
estimation of the number of poor and the identification of the poor remained
separate processes, and were thus open to bi!arre policy outcomes. /t is for the
absence of a reliable method of combining estimation and identification that
political and social movements have been demanding universali!ation of welfare
provisions like the P9#. "he "endulkar 2ommittee report itself is evidence to the
fact that levels of poverty are extremely sensitive to even minor changes in the
poverty line.

'hile the increase in the number of poor households, as suggested by the
"endulkar 2ommittee, may indeed help expand the coverage of welfare schemes, it
would still fall short of including all the needy sections from the ambit of such
schemes. ne would welcome the newly suggested methodology for arriving at a
strictly technical measure of poverty. Aowever, it is important to insist that the new
estimates are not mechanically linked to the issue of eligibility to access ma$or
welfare schemes. /n a country with such mass poverty as /ndia, universali!ation
remains the most efficient tool for ensuring livelihood security.
HOW @P8 FIG.RES ARE (A8(.8ATED IN INDIA
"he Planning 2ommission of /ndia recently adopted the "endulkar 2ommitteeMs
methodology for poverty estimate that includes spends on education and health
besides food, taking the number of the poor to a whopping 10.* per cent from *0.J
per cent estimated earlier in *,,..
"his means that /ndia now has ),, million more people living below the poverty
line than in *,,..
"he Planning 2ommission, which was asked by the ;mpowered Lroup of
:inisters on Food to give its estimate of below the poverty line families for
implementing the proposed food security law, is likely to submit its report to Prime
:inister :anmohan #ingh soon, sources said.
A Plan panel meeting chaired by deputy chairman :ontek #ingh Ahluwalia
adopted the #uresh "endulkar 2ommittee report which had suggested inclusion of
expenditure on health and education besides food to compute poverty.
&ational estimates of the percentage of the population falling below the poverty
line are based on surveys of sub3groups, with the results weighted by the number
of people in each group.
9efinitions of poverty vary considerably among nations. For example, rich nations
generally employ more generous standards of poverty than poor nations.
'hat does poverty in /ndia actually meanP /t is difficult for those living in an
industriali!ed country to truly appreciate the level of poverty in our country.
/n the 'est, even those living in poverty can live in well3constructed dwellings,
with heating, clean running water, indoor toilet facilities, access to health care, and
even a vehicle. (ut such luxuries are a distant dream for /ndiaMs poor.
"he earlier definition of /ndiaMs poverty was based on calorie intake, according to
which only *0.J per cent of people were living below the poverty line as on :arch
), *,,. and the number of (P@ families were about 5.J crore <5J million=.
As per the methodology suggested by the "endulkar report, the number would
swell to 10.* per cent of the total population and the number of (P@ families to
about -.) crore <-) million=.
"he new poverty estimate which would reflect the impact of high growth recorded
during the decade would be available in *,)).
"he computation of the number of (P@ families at the this stage assumes
significance in view of the governmentMs decision to enact the food security law
under which *J kg of food grain at Rs 1 per kg would be provided every month to
a (P@ family.
"he ;Lo: on food, which had cleared the draft of the Food #ecurity (ill last
month, was reportedly asked by %nited Progressive Alliance chairperson #onia
Landhi to have a re3look at the proposal and consider the possibility of raising the
highly subsidi!ed monthly food grain allocation to 1J kg from *J kg and
increasing the number of beneficiaries.
2urrently, a ration card holder is entitled to 1J kg of food grain every month.
"he burden on the central exchequer for implementing the food security law would
depend on the number of (P@ households and the quantity of subsidised food grain
to be given to them.
Ahluwalia had said that food subsidy would rise if there was any increase in the
number of (P@ families. Food subsidy stood at about Rs 0*,,,, crore <Rs 0*,
billion= in last fiscal.
HOW POVERTY (AN @E REMOVED
*4 "he full equality between men and women in public as well as private areas of
life, a worldwide minimum wage of N*, per day and the end of child labor under
the age of )5 with the creation of a subsidy for scholarship.
74 "he guarantee of shelter, healthcare, education, food and drinking water as basic
human rights that must be provided free to all.
9. A total redistribution of idle lands to landless farmers and the imposition of a
J,4 cap on arable land devoted to products for export per country, with the
creation of a worldwide subsidy for organic agriculture.
;4 An end to private monopoly ownership over natural resources, with a minimum
of J)4 local communal ownership in corporations, which control such resources
as well as the termination of intellectual property rights on pharmaceutical drugs.
,4 "he cancellation of third world debt with no reciprocal obligations attached and
the payment of compensation to "hird 'orld countries for historical as well as
ecological debt.
<4 An obligation of total transparency for any corporation with more than ),,
employees and a )4 tax on all benefits distributed to shareholders of corporations
to create unemployment funds.
=4 "he termination of tax havens around the world as well as free flow of capital in
developing countries.
?4 "he cancellation of taxes on labor and basic consumption, the creation of a *4
worldwide tax on property ownership <expect basic habitation for the poor= and the
implementation of a global ,.J4 flat tax on all financial transactions with a total
prohibition of speculation on food products.
+4 An equal voting for developing countries in international organi!ations such as
/:F, 'orld (ank, '", and the termination of veto right for the permanent
members of the %& #ecurity 2ounsel.
*B. A commitment by industriali!ed countries to decrease carbon emission by J,4
over a ten3year period as well as reducing by *J4 each developed country *,)+s
consumption of natural resources.