POVERTY AS A CHALLENGE

In our daily life we come across many poor people such as land less labourers in villages, people
living in jhuggis, daily wage workers at construction sites, child labourers in dhabas, rickshaw-
pullers, domestic servants, cobblers, beggars, etc. About 30 crore people live in poverty.

Poverty : Usually the levels of income and consumption are used to define poverty. In India,
poverty can be defined as the lack of common things like food, clothing and shelter, safe drinking
water, medical care and education, which determine quality of life.
Poverty has both dimensions economical and social.
Other Indicators of Poverty:
Now poverty is looked through other social indicators like illiteracy level, lack of access to health
care, lack of job opportunities, lack of access to safe drinking water, sanitation, etc. Nowadays, the
concept of social exclusion is becoming very common in the analysis of poverty.
Social exclusion means, generally poor are excluded in the community of better off people.
Vulnerability
Vulnerability describes the greater probability of certain communities or individuals of becoming,
or remaining, poor in the coming years.
The people from backward cast, individuals like widows, physically handicapped are more
vulnerable.
They possess greater risks at the time of natural disasters.
Poverty Line
It is based on the income or consumption level.
A person is considered poor if his or her income or consumption level falls below a given
‘minimum level’ necessary to satisfy basic needs.
Poverty line varies with time place.
For the year 2009-10, the poverty line for a person was fixed at Rs.673 per month for rural area
and Rs. 860 for the urban areas.
The poverty line is estimated periodically by conducting sample surveys by National Sample
Survey Organisation. ( NSSO)
Estimates of Poverty:
The incidence of poverty in India was around 55 per cent in 1973 which declined to 36 per cent in
1993 and further to 26 per cent in 2000.
The poverty in India is reduced percent wise but number wise it is huge.
Social groups which are most vulnerable to poverty are Scheduled Caste and Scheduled Tribe
households.
Inequality of Incomes within a Family:
In poor families, old people, women and female children are denied equal access to family’s
available resources. They are the poorest of the poor.
Inter-State Disparities:
The proportion of poor people is not the same in every state. In 20 states and union territories the
poverty ratio is less than the national average. Orissa and Bihar are the poorest states of India with
poverty ratios of 47 per cent and 43 per cent respectively. Lowest incidence of poverty is found in
Jammu and Kashmir with poverty ratio of just 3.5 per cent.
Global Poverty Scenario:
There has been substantial decline in global poverty. However, it is marked with great regional
differences. Poverty has declined more in China and South-East Asian countries.
World Bank has defined poverty as the people earning less than 1.90 $ per day.
The Millennium Development Goals of the United Nations call for reducing the proportion of
people below poverty line to half the 1990 level by 2015.
Causes of Poverty:
There are a number of causes for the widespread poverty in India.
One historical reason is the low level of economic development under the British colonial
administration.
There are some other reasons.
These are:
1. Rapid growth of population, particularly among the poor is considered a major cause of Indian
poverty.
2. Our agricultural sector has failed to generate much employment opportunities for the farm
labourers. Similarly, our industries could not provide much job for the job seekers.
3. One of the major causes of poverty is the unequal distribution of land and other resources.
Various land reform measures introduced after Independence could not improve the life of
millions of rural poor because of their poor implementation.
4. Social factors:
People in India, including the very poor, spend a lot of money on social occasions like marriages,
festivals, etc. Poor people hardly have any savings; they are, thus forced to borrow. Unable to pay
because of poverty, they became victims of indebtedness.
Joint family system has prevented people from doing hard work.

Steps taken by the Government for Poverty Alleviation

Our government’s strategy to poverty reduction has been twofold. One, promotion of economic
growth and, two, targeted poverty alleviation programmes.
Poverty Alleviation Programmes:
To address the poor, a need for targeted anti-poverty programmes was strongly felt.
Some of them are given below:
1. Prime Minister Rojgar Yojana (PMRY): The aim of this programme (which was started in
1993) was to create self-employment opportunities for educated unemployed youth in rural areas
and small towns.
2. Rural Employment Generation Programme (REGP): REGP was launched in 1995 to create
self-employment opportunities in rural areas.
3. Swarna Jayanti Gram Swarojgar Yojana (SGSY): SGSY was started in 1999. The
programme aims at bringing the assisted poor families above the poverty line.
4. Pradhan Mantri Gramodaya Yojana (PMGY) was launched in 2000.
5. Antyodaya Anna Yojana (AAY) for ‘the poorest of poor’s and elders.
6. National Food for Work Programme (NFWP) was launched in 2004.
7. National Rural Employment Guarantee Act (NREGA) was passed in September 2005. The
Act provides 100-days assured employment every year to every rural household in 200 districts.
The Challenges Ahead:
Though poverty has declined in India, poverty reduction remains India’s most compelling
challenge. We will have to do something special to fight against wide regional disparities. We
must broaden the definition of poverty from ‘a minimum subsistence level of living to a
reasonable level of living’. Bigger challenges before us are: providing health care, education and
job security for all the achieving gender equality.

Question 1.Describe how the poverty line is estimated in India?

Answer:
In India poverty line is measured or calculated considering the following factors required for
subsistence:
1. Minimum level of food requirement,
2. Clothing
3. Footwear
4. Fuel and Light
5. Education and
6. Medical requirement etc.
These physical quantities are multiplied by their prices. The present formula for food requirement
is based on the desired calorie requirement. On the basis of these calculations in 1999 – 2000, the
poverty line in the rural areas was fixed Rs.328 per capita per month and in urban areas, it was
Rs.454. People earning more than this amount were considered above the poverty line and earning
less than this amount were considered as living below the poverty line.
Question 2. Do you think that present methodology of poverty estimation is appropriate?
Answer:
he present methodology of poverty estimation does not look appropriate. It only takes one factor in
view and that is the economic factor. Moreover it considers about a “minimum” subsistence level
of living rather than a “reasonable” level of living.
Poverty has many dimensions. It is no longer confined to economic factors alone. With
development, the definitions of what constitutes poverty also changes. Its concept has broadened
to human poverty. A few persons may have been able to feed themselves but if they are without
education, without shelter, without health-care, without job security, without self-confidence,
without social equality, they are considered poor. If poverty is to be removed in real sense and the
people are to be brought above the poverty line, not only that we need to increase their income but
also, we have to provide the people with education, shelter, health-care, job-security, respect,
dignity all.
Question 3.Describe poverty trends in India since 1973?
Answer:
As per the data, there is a substantial decline in poverty ratio in India from 55 percent in 1973 to
36 percent in 1993. There was further decline from 36 percent in 1993 to 26 percent in 2000.
Although the number of poor people remained stable (about 320 million) in the earlier two
decades (1973 to 1993), there was significant reduction in the number of the poor to about 260
million till 2000.It may also be noted that poverty ratio always remained higher in rural areas
compared to urban areas. If the present trend continues, the people below poverty line may come
down to less than 20 percent in the next few years.
Question 4. Discuss the major reasons for poverty in India?
Answer : The major reasons for poverty in India are:
→ Colonial Rule: India went through a long phase of low economic development under the British
colonial administration. The policies of the colonial government ruined traditional handicrafts and
discouraged development of industries like textiles.
→ High growth in Population: The rapid growth of population, particularly among the poor, is
considered one of the major causes behind Indian poverty. Poor people are illiterate and have
traditional outlook. Hence, they are either ignorant of birth control measures or not convinced of
the need of birth control. Moreover, they consider male childas an asset, that is, as a source of
income and a source of security during old age.
→Low Rate of Economic Development : The actual rate of growth in India has always been below
the required level. It has been around 4 per cent since 1951. This has resulted in less job
opportunities. This was accompanied by a high growth rate of population.
→Unemployment : Another important factor that can be held responsible for the incidence of high
poverty in India is the high degree of unemployment and underemployment. The job seekers are
increasing at a higher rate than the increase in the employment opportunities.
→ Unequal Distribution: Although national income of India has been increasing since 1951, it was
not properly distributed among different sections of the society. A large proportion of increased
income has been pocketed by a few rich. They become richer. Consequently, the majority of
people have to live below the poverty line.
→Social Factors : Various social factors, viz., caste system, joint family system, religious faiths,
law of inheritance, etc., have blocked the path of economic development.
Question 5. Identify the social and economic groups which are most vulnerable to poverty in
India.
Answer : Social Groups Vulnerable to Poverty :
→ Scheduled caste households
→ Scheduled tribe households
Economic Groups Vulnerable to Poverty :
→ Rural agricultural labour households
→ Urban casual labour households
Question 6. Give an account of interstate disparities of poverty in India.
Answer : The proportion of poor is not the same in every state. Though there has been a decline in
poverty in every state from the early seventies, the success rate of reducing poverty has varied
from state to state. In 20 states and union territories, the poverty ratio is less than the national
average of 26. In others, the poverty ratios are higher than the national average. Among these,
Orrisa and Bihar continue to be the two poorest states with poverty ratios of 47 and 43 per cent
respectively. Both rural and urban poverty are quite high in these states. On the other hand, states
like Tamil Nadu, Andhra Pradesh, Gujarat, Kerala, Punjab and Jammu and Kashmir and West
Bengal have shown a significant decline in poverty. Public distribution of food grains, focus on
human resource development, high agricultural development and land reform measures are some
of the factors responsible for the decline in poverty in these states.
Question 7. Describe global poverty trends.
Answer : The proportion of people in developing countries living on less than $1 per day has
fallen from 28 per cent in 1990 to 21 per cent in 2001. There has been a substantial reduction in
global poverty since the nineteen eighties. However, the reduction in poverty is marked with great
regional differences. Due to rapid economic growth and massive investment in human resource
development, poverty declined substantially in China and Southeast Asian countries.
On the other hand, in South Asian countries (India, Pakistan, Sri Lanka, Nepal, Bangladesh,
Bhutan), the decline has not been as rapid. While the ratio of poverty in Latin America has
remained the same, in sub-Saharan Africa, poverty has risen from 41 per cent in 1981 to 46 per
cent in 2001. According to the world development report of 2001, countries like Nigeria,
Bangladesh and India still have a large percentage of people living under poverty.
Poverty has also resurfaced in some of the former socialist countries like Russia, where officially it
was non-existent earlier.
Question 8. Describe current government strategy of poverty alleviation?
Answer: Removal of poverty has one of the major objectives of Indian developmental strategy.
The current government strategy of poverty alleviation is based on two planks:
(1) Promotion of Economic Growth
(2) Targeted Anti-poverty Programmes
Some of the anti-poverty programmes undertaken by government at present are discussed below:
→ Prime Minister’s Rozgar Yojana (PMRY):Started in 1993, this programme aims to create self-
employment opportunities for educated unemployed youth in rural areas and small towns.
→ Pradhan Mantri Gramodaya Yojana (PMGY): Launched in 2000, this aims to create and
improve basic services like primary health, primary education, rural shelter, rural drinking water
and rural electrification.
→ National Food for Work programme (NFWP): Launched in 2004 in 150 most backward
districts of the country, this programme is open to all rural poor who are in need of wage
employment and desired to do manual unskilled work.
→ National Rural Employment Guarantee Act (NREGA):This act was passed in September 2005.
The act provides 100 days assured employment every year to every rural household in 200
districts. Later, the scheme will be extended to 600 districts and also one third to the proposed jobs
would be reserved for women.
Question 9. Answer the following questions briefly
(i) What do you understand by human poverty?
Answer : i)Human poverty is a concept that goes beyond the limited view of poverty as lack of
income. It refers to the denial of political, social and economic opportunities to an individual to
maintain a “reasonable” standard of living. Illiteracy, lack of job opportunities, lack of access to
proper healthcare and sanitation, caste and gender discrimination, etc., are all components of
human poverty.
(ii) Who are the poorest of the poor?
Answer : (ii) Women, children (especially the girl child) and elder people in a poor family are
regarded as the poorest of the poor because they are systematically denied equal access to
resources available to the family.
(iii) What are the main features of the National Rural Employment Guarantee Act 2005?
Answer : (iii) Main features of the National Rural Employment Guarantee Act 2005:
→ The Act assures 100 days employment every year to every household.
→ Initially covering 200 districts, the Act would be extended later on to cover 600 districts.
→ One-third of the jobs are reserved for women.

Q1. Why is poverty said to be a multi-dimensional problem?

Poverty is considered multi-dimensional because it is not just about a lack of income but also
involves lack of access to education, healthcare, clean water, sanitation, and poor living
conditions.
Q2. Why do children in poor families prefer to work at an early age instead of going to
school?
Children in poor families often work early to contribute to the family's income, as they cannot
afford to miss the opportunity to earn money, even if it means missing out on education.
Q3. Why are children in poor families generally undernourished?
Children in poor families are often undernourished because their families cannot afford a balanced
diet that provides essential nutrients.
Q4. What do you mean by social exclusion?
Social exclusion refers to the process in which individuals or groups are systematically blocked
from rights, opportunities, and resources that are normally available to members of society and
that are essential to social integration.
Q5. What do you mean by vulnerability?
Vulnerability is the state of being exposed to the possibility of being harmed, either physically or
emotionally, often due to factors like poverty, lack of education, or social exclusion.
Q8. What is the poverty line definition given by the World Bank?
The World Bank defines the poverty line as living on less than $ 1.90 per day for extreme
poverty.
Q9. What is the headcount ratio?
The headcount ratio is the proportion of a population that lives below the poverty line in India 21.9
per heads.
Q10. What do you understand by human poverty?
 Human poverty refers to the lack of basic human capabilities, including access to education,
healthcare, clean water, sanitation, and adequate living standards, beyond just low income.
Q11. Who are the poorest of the poor?
The poorest of the poor are those individuals or groups that suffer the most from poverty,
including women, children, and the elderly and socially disadvantaged groups.
3-Mark Questions
Q1. How is poverty seen by social scientists? Explain.
Social scientists see poverty as a condition where individuals lack the basic necessities to live a
decent life. It includes not only low income but also the lack of access to resources, employment
opportunities, education, healthcare, and the inability to participate in society.
Q2. Why is social exclusion said to be both a cause and effect of poverty?
Social exclusion is a cause of poverty because individuals who are excluded do not have access to
the same opportunities and resources as others. It is also an effect because people who are poor are
often excluded from social, economic, and political activities.
Q3. Define poverty line in terms of calorie intake. Why do people in rural areas have higher
calorie requirements than those in urban areas? The poverty line is based on calorie intake:
2,400 calories per day for rural areas and 2,100 calories per day for urban areas. Rural areas
require higher calorie intake due to the physical labor involved in activities like farming and
manual work.
Q5. Why is the poverty line definition different in different countries and places?
The poverty line varies due to differences in the cost of living, income levels, consumption
patterns, and the availability of goods and services in different countries and regions.
Q6. Describe how the poverty line is estimated in India.
In India, the poverty line is estimated using income or consumption expenditure. It is based on the
minimum income required to meet basic calorie needs, as well as essential expenses on health,
education, and shelter.
Q7. What is the minimum monthly per person income as per the poverty line in rural and
urban areas in India? Why is the income level in urban areas higher than in rural areas for
the poverty line?
The minimum monthly per person income as per the poverty line is higher in urban areas than in
rural areas due to the higher cost of living, including housing, transportation, and other expenses in
cities.
Q8. Differentiate between "Minimum Subsistence Level of Living" and a "Reasonable Level
of Living."
 Minimum Subsistence Level of Living: Refers to the bare minimum income required to meet
basic needs like food, shelter, and clothing.
 Reasonable Level of Living: Includes not just basic needs but also a decent standard of living
with access to education, healthcare, and other amenities.
Q9. Ramavtaar is living in a village with a family of 6 members, and Shyam Lal is living in a
city with a family of 5 members. What will be the minimum income requirement for both to
be living above the poverty line?
The minimum income requirement for both families depends on the official poverty line set by the
government, which considers per capita income in rural and urban areas. In urban area ₹ 1000 per
person and rural area ₹ 816 minimum income to be required
Q11. Identify the social and economic groups most vulnerable to poverty in India.
The most vulnerable groups include Scheduled Castes (SC), Scheduled Tribes (ST), agricultural
laborers, and casual workers in urban areas.
Q12. Explain why the proportion of people below the poverty line is not the same for all
social groups and economic categories in India.
Different social and economic groups have varying levels of access to resources, opportunities,
and education, which affects their income levels and their ability to move out of poverty.
Q13. "In poor families, all suffer, but some suffer more than others." Explain.
Within poor families, women, children, the elderly, and disabled members often suffer more due to
unequal distribution of resources, lack of opportunities, and greater vulnerability to health issues.
Q14. Explain the main reasons behind the decline in poverty in states like Kerala,
Maharashtra, Andhra Pradesh, Tamil Nadu, Gujarat, and West Bengal.
The decline in poverty in these states is due to better economic growth, higher agricultural
productivity, effective implementation of poverty alleviation programs, and higher levels of
literacy and health facilities.
Q15. Describe interstate disparities of poverty in India.
Interstate disparities exist because some states have better economic development,
industrialization, agricultural productivity, education, and implementation of welfare schemes
compared to others.
Q16. Why has "promotion of economic growth" been used by the Government of India for
removing poverty?
Economic growth leads to more job opportunities, higher income levels, improved living
standards, and increased government revenues, which can be used to fund poverty alleviation
programs.
Q17. Explain the main features of the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA).
MGNREGA guarantees 100 days of wage employment in a financial year to rural households,
focuses on the creation of durable assets, and aims to improve the livelihood security of people in
rural areas.
Q18. Explain the main features of the Prime Minister Rozgar Yojana (PMRY).
PMRY aims to provide self-employment opportunities to educated unemployed youth by offering
financial assistance to set up small businesses or industries.
Q19. Explain the main features of the Prime Minister Gramodaya Yojana (PMGY).
PMGY focuses on improving the quality of life in rural areas by providing basic amenities such as
healthcare, education, clean drinking water, and rural infrastructure development.
Q20. Why have various schemes followed by the Government to remove poverty been
ineffective?
The inefficiency of poverty alleviation schemes can be attributed to poor implementation, lack of
proper targeting, corruption, inadequate funding, and lack of awareness among beneficiaries.
Q1. Explain the major dimensions or features of poor people.
Poor people often lack access to adequate food, clean water, proper housing, healthcare, education,
and employment opportunities. They suffer from social exclusion, discrimination, vulnerability to
economic shocks, and a lack of participation in decision-making processes.
Q2. Discuss the major reasons for poverty in India.
Major reasons for poverty in India include unemployment, low economic growth, population
growth, unequal distribution of resources, lack of access to education and healthcare, social
inequality, and ineffective implementation of poverty alleviation programs.
Q3. Explain the different action plans followed by the Government of India to remove
poverty.
The Government of India has implemented various schemes like MGNREGA, PMRY, National
Food Security Act, and other social welfare programs aimed at providing employment, improving
healthcare, ensuring food security, and promoting economic growth to reduce poverty.
Q4. Describe the current government strategy of poverty alleviation.
The current strategy focuses on economic growth, targeted poverty alleviation programs, social
inclusion, providing basic services, improving education and healthcare, and empowering
vulnerable groups through skill development and self-employment opportunities.