POVERTY AS A CHALLENGE 9 (NCERT) NOTES

 POVERTY AS A CHALLENGE 9 (NCERT) NOTES

In this chapter:

• Focus on the challenge of poverty in independent India.
• Discuss poverty’s multi-dimensional nature.
• Examine poverty trends in India and globally.
• Introduce the concept of the poverty line.
• Causes of Poverty
• Identify factors contributing to poverty.
• Government Anti-Poverty Measures

Q: Give examples of poor people whom you come across in daily life. Q: Illustrate the seriousness of poverty in India?

Introduction to Poverty in India  

Daily Poverty Encounters:  

• Landless laborers, 
• overcrowded urban slum dwellers, 
• construction site laborers, 
• child workers, and 
• beggars.

Prevalence of Poverty

• Approximately one in every five individuals in India is considered poor.
• This translates to around 270 million (or 27 crore) people living in poverty as of 2011-12.

India's World Image

• Country with the highest concentration of poverty globally.

Two Typical Cases of Poverty

• Study the above cases of poverty and discuss the following issues related to poverty:
• Landlessness
• Unemployment
• Size of families
• Illiteracy
• Poor health/malnutrition
• Child labour
• Helplessness

Question:  Poverty encompasses a range of hardships, from basic needs to a sense of helplessness, making it a crucial challenge for India's progress. Explain

Poverty Dimensions:

Not Fulfilling Basic Needs

• Poverty entails hunger and inadequate shelter.
• It prevents parents from: 
• sending their children to school and 
• denies access to healthcare.

Lack of Essentials:

• Poverty means a scarcity of clean water and sanitation facilities.
• It results in a lack of stable employment at a decent level.

Helplessness:

• Facing mistreatment in various places, including farms, factories, government offices, hospitals, and railway stations.

National Challenge:

• Independent India's significant challenge has been lifting millions out of extreme poverty.
• Mahatma Gandhi believed true independence would only come when the poorest were uplifted.

Q: Explain poverty as seen by the social scientists. Or Q: What are the indicators used by social scientists to understand poverty ?

Poverty as seen by social scientists

Traditional Indicators

• Historically, poverty was assessed through income and consumption levels.

Broader Indicators

• Social indicators like illiteracy, malnutrition, limited healthcare, job opportunities, access to clean water, and sanitation.

New Indicators:

• social exclusion and vulnerability.

   

Short: Social scientists have expanded their assessment of poverty, incorporating a wider range of indicators that encompass not only income but also education, health, and social inclusion, making their analyses more comprehensive and relevant.

Q: How far is it correct to say that social exclusion can be both a cause as well as a consequence of poverty ? Explain.

Social Exclusion:

Understanding Social Exclusion

• Views poverty as not only a lack of income but also a condition where the poor live among other impoverished individuals, 
• Excluded from the social benefits and opportunities enjoyed by the better-off.

Dual Role

• Social exclusion can both cause and result from traditional poverty.

   

Exclusion Process

• Individuals or groups are denied access to facilities, benefits, and opportunities available to more privileged members of society.

Caste System Example

• In India, the caste system is an example of social exclusion, where certain castes are denied equal opportunities, resulting in inequality.

Impact

• due to low income, 
• individuals and groups are deprived - essential social rights and opportunities.

Short: Social exclusion highlights that poverty isn't solely about income; it's about being marginalized from social equality and opportunities, which can have severe consequences beyond financial hardship.

Q: What do you mean by vulnerability in poverty?

Definition

• Vulnerability to poverty measures the likelihood of certain communities (e.g., backward castes) or individuals (e.g., widows or physically handicapped persons) becoming or staying poor in the future.

Vulnerability depends on:

• Assets, education, health, and job opportunities for different communities.

   

Vulnerability= Higher risk

• During natural disasters (e.g., earthquakes, tsunamis), terrorism, etc., and their capacity to cope with these challenges.

Short: In essence, vulnerability to poverty reflects the increased likelihood of certain communities or individuals facing hardships in times of adversity, taking into account their resources and risks.

Q: What do you mean by the poverty line in India. Q: How do we define poverty through requirements of basic Needs. Q: Why do different countries use different poverty lines? Q: What do you think would be the “minimum necessary level” in your locality?

Poverty Line (imaginary line)

Measuring Poverty by

• Income or Consumption levels

Defining Poverty by Basic Needs:

• Someone is considered poor if their income or consumption falls below a set minimum level required to meet basic needs.

Variability in Basic Needs:

• What constitutes basic needs varies across different countries and over time.

Adjusting the Poverty Line:

• Each country sets its own poverty line, according to its level of development and societal norms.

Example of Regional Differences:

• Not owning a car in the United States = poverty, 
• In India, car ownership = luxury.

Q: Describe how the poverty line is estimated in India.  Or Q: Explain the two methods to estimate poverty line. Q: Why do different countries use different poverty lines? Q: What do you think would be the “minimum necessary level” in your locality?

Expenditure Method (Consumption Method):

Determining India's Poverty Line:

• Calculate minimum requirements for food, clothing, footwear, fuel, light, education, and medical needs.

Food Requirement Calculation:

• Based on desired calorie intake 
• Food items, such as cereals, pulses, vegetable, milk, oil, sugar, etc., 
• Caloric needs depend on factors like age, gender, and occupation.
• In India, the average calorie requirement is around: 
• 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas.

• Rural areas have higher calorie requirements due to more physical work.

Adjusting for Inflation:

• Calorie needs, like food grains, are regularly updated to account for rising prices.

Income Method:

The total minimum food requirement is first measured in calories.

The calories are then converted into money value, i.e., in rupees.

Setting the Poverty Line in India (2011-12):

Poverty line in India was: 

• Rs 816 for rural areas and 
• Rs 1000 for urban areas.
• Urban areas had a higher poverty line due to the higher cost of essential goods.

Activity:

Calculate Poverty line for:

• Family of five in rural areas and Urban areas.

Periodic Estimation:

• Updated every five years, 
• Through sample surveys conducted by the National Sample Survey Organisation (NSSO) in India.

International Standard:

• International organizations like the World Bank use a uniform standard for the poverty line, 
• Minimum of $1.90 per person per day (2011)

, purchasing power parity) for comparisons between developing countries.

Describe the poverty trends in India since 1993. Or Analyse the given table and comment on the poverty trends in India. Study Table 3.1 and answer the following questions: • Even if poverty ratio declined between 1993–94 and 2004–05, why did the number of poor remain at about 407 million? Hint: Because the total population of the country increased during the same period Are the dynamics of poverty reduction the same in rural and urban India?

(i) It is clear from the above data that poverty ratio is decreasing both in urban as well as rural areas.

(ii) In the year, 1993-94 rural poverty was 50 per cent. This has come down to 26 per cent. 

(iii) The urban poverty was 32 per cent in 1993-94 but now it has decreased to 14 per cent. 

(iv) In 1993-94, 329 million people were living below poverty line in rural areas. The figure has come down to 217 million.

(v) In 1993-94, about 75 million people were living below the poverty line in urban areas, but in 2004-05, it has risen to 81 million.

Q: Identify the social and economic groups which are most vulnerable to poverty in India. [CBSE March 2012,15] Q: Mention social and economic groups who are more vulnerable to poverty in India. Q: Explain any two reasons for poverty in such communities. [CBSE 2011,12] Or Q: Which groups are most vulnerable to poverty ? Explain. Q: Describe the effect of poverty on the members of the social groups.

Vulnerable Groups

(i) Social groups: 

Scheduled caste and Scheduled tribe households.

Backward class people, elderly people, women, children, physically and mentally challenged people.

(ii) Economic groups: 

Rural agricultural labour households and the urban casual labour households.

Reasons of poverty in such communities :

(i) Caste System:

In India, caste system has many ill-effects. In this system, people from such communities are excluded from equal opportunities and facilities that others enjoy.

(ii) Illiteracy 

They are mostly illiterate. When they migrate to the towns, they work in factories, at the shops etc. The factory owners and shopkeepers exploit them.

(iii) landlessness

They (SCs, STs) are usually landless. They work as labourers in the field. They are not paid enough.

(iv) Denied Equitable Resources:

Inequality of incomes within a family makes elderly people, women, children etc. suffer.

They are denied equal access to resources available to the family.

Inter-State Disparities

Q: Give an account of the interstate disparities in poverty in India. [CBSE March 2013]

States with poverty ratio more than the national average : Odisha, Bihar, Assam, Tripura and Uttar Pradesh are the most poverty ridden states of India. 

The poverty ratio in these states is much higher than the national average. 

Odisha and Bihar are the poorest states with poverty ratio of 47 and 43 respectively. 

Most of these states are facing rural as well as urban poverty.

States with poverty ratio less than the national average : Recent studies show that in 20 states and union territories, the poverty ratio is less than the national average. 

There has been a significant decline in poverty ratio in: 

Kerala (develop human resource development), 

Andhra Pradesh and Tamil Nadu (public distribution of food grains)

and West Bengal (land reform measures).

States with low poverty ratio: 

States like Punjab, Haryana (high agricultural growth rates)

Goa, Himachal Pradesh and Jammu Kashmir have very low percentage of population living below the poverty line.

Global Poverty Scenario

Q: Describe global poverty trends. Or Q: Describe the Global Poverty Scenario as studied by the World Bank. [CBSE March 2012,14)

Fall in global poverty : 

• The World Bank defines poverty as living on less than $1.90 per day. 
• There has been a substantial reduction in global poverty. 
• It has fallen from 36 per cent in 1990 to 10 per cent in 2015.

Regional variations: 

• Though the global poverty is reducing, there are vast regional variations. 
• Poverty has declined substantially in China and Southeast Asian countries due to rapid economic growth and massive investments in human resource development. 
• But the rate of reduction of poverty in South Asian countries is very low.

China: 88.3% (1981) to 0.6% in (2019)

Poverty in South Asia: 

India, Pakistan, Sri Lanka, Nepal, Bangladesh, Bhutan

In the countries of South Asia the decline has also been rapid i.e. 34% in 2005 to 15.2% in 2014. 

Poverty in Sub-Sahara Africa: 

The poverty in the Sub-Sahara has declined from 51 per cent in 2005 to 40.2 per cent in 2018.

Poverty in Latin America : 

10 per cent in 2005 to 4 per cent in 2018

Poverty in Russia: 

The poverty has resurfaced in some of the former socialist countries like Russia, where officially, it was non-existent earlier.

United Nations (UN) Sustainable Goals:

The new sustainable development goals of the United Nations (UN) proposes ending poverty of all types by 2030.

Poverty Comparison: 

The following table shows the poverty situation in some of the countries of the world

Study the Graph 3.4 and do the following: • Identify the areas of the world, where poverty ratios have declined. • Identify the area of the globe which has the largest concentration of the poor.

Causes of Widespread Poverty in India:

British Colonial Administration:

1. Low economic development under British rule
2. Ruining of Handicraft Industries: Policies that harmed traditional handicrafts and hindered textile industries.
3. Low Growth Rate: Sustained low economic growth until 1980s leading to fewer job opportunities and low incomes.
4. High population growth, resulting in very low per capita income growth.
5. Cycle of poverty: Failure in promoting economic growth and population control led to a persistent poverty cycle.

2. Over Dependence on Agriculture: Green revolution and irrigation created jobs in agriculture, but impact was limited.

3. Lack of Industrialisation: Insufficient job opportunities in both public and private sectors.

4. Emergence of Informal Sector: Many turned to informal jobs like rickshaw pulling, vending, and construction work.

5. Urbanization of Poverty:

• Many settled in urban slums due to job challenges.
• Poverty, primarily rural, became a prevalent issue in urban areas too.

6. Income Inequality and Unequal Land Distribution:

1. Income Inequality: High poverty rates are linked to significant income disparities.

2. Unequal Land Distribution: Major cause of inequality due to land and resource imbalance.

3. Ineffective Policies:

• Numerous attempts to address this issue but limited success.
• Land reforms aimed at rural asset redistribution are often poorly implemented.

   

4. Missed Opportunity: Properly executed land policies could have uplifted millions of rural poor.

7. Socio-Cultural and Economic Factors:

1. Socio-Cultural Expenses: Spending on social obligations and religious ceremonies is common, even among the poor.

   

2. Agricultural Expenses: 

• Small farmers require funds for seeds, fertilizers, and pesticides.
• Lack of savings forces them into borrowing.

3. Debt Trap:

• High indebtedness results from borrowing.
• Poverty prevents repayment, creating a cycle of debt and poverty.

Anti-Poverty Measures

Various measures or steps taken by the government to remove poverty are known as anti-poverty measures.

Mention the two planks on which the current anti-poverty strategy of the government is based. Why were the poverty alleviation programmes not successful in most parts of India? [CBSE March 2011] Or "Removal of poverty has been one of the major objectives of Indian development strategy." In the light of this statement explain two planks of Indian government's anti-poverty strategy.

The two planks on which the current anti-poverty strategy of the government based are :

(i) Promotion of economic growth (Indirect Approach)

• In the three decades until the early 1980s, India saw little income growth and poverty reduction, with poverty rates remaining around 45%. 

• However, since the 1980s, India’s rapid economic growth, from 3.5% in the 1970s to 6% in the 1980s and 1990s, has greatly reduced poverty.

• It was assumed that the development of industry and agriculture would create employment opportunities and income, which would lead to rapid economic development.

(ii) Targeted anti-poverty programmes.

• The National Rural Employment Guarantee Act (REGA) 2005: 
• Passed in September 2005.
• The act provides 100 days assured employment to every rural household in 200 districts.
• The scheme has been extended to more than 600 districts. 
• One-third of the proposed jobs would be reserved for women.
• The central government has also established National Employment Guarantee Funds.
• Similarly, state governments have established State Employment Guarantee Funds for implementation of the scheme.
• Under the programme, if an applicant is not provided employment within fifteen days, he/she will be entitled to a daily unemployment allowance.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) Sep 2005:

1. Aim:

   - Provides 100 days of wage employment to every rural household. (started 200 districts now 600+)

   - Ensures livelihood security and addresses issues like drought, deforestation, and soil erosion.

2. Gender Inclusivity:

   - Reserves one-third of jobs for women.

3. Impact:

   - Provided employment for 220 crore person-days to 4.78 crore households.

   - Share of SC, ST, and women person-days: 23%, 17%, and 53% respectively.

4. Wage Increase:

   - Average wage increased from 65 in 2006–07 to 132 in 2013–14.

5. Recent Update (March 2018):

   - Revised wage rates for unskilled manual workers, varying state-wise.

   - Wage rates range from ₹281 per day (Haryana) to ₹168 per day (Bihar and Jharkhand).

Prime Minister Rozgar Yojana (PMRY):

1. Purpose:

   - Started in 1993.

   - Aims to provide self-employment opportunities for educated unemployed youth in rural and small-town areas.

2. Implementation:

   - Assists in establishing small businesses and industries to promote self-employment.

Rural Employment Generation Programme (REGP):

1. Launch Year:

   - Started in 1995.

2. Purpose:

   - Aims to generate self-employment opportunities in rural areas and small towns.

3. Target:

   - Set a goal to create 25 lakh new jobs during the Tenth Five Year Plan.

Swarnajayanti Gram Swarozgar Yojana (SGSY):

1. Launch Year:

   - Started in 1999.

2. Purpose:

   - Aims to lift assisted poor families above the poverty line.

   - Achieved by organizing them into self-help groups.

   - Combines bank credit with government subsidies.

Pradhan Mantri Gramodaya Yojana (PMGY):

1. Launch Year:

   - Launched in 2000.

2. Purpose:

   - Provides additional central assistance to states.

   - Focused on basic services like primary health, education, rural shelter, drinking water, and electrification in rural areas.

Antyodaya Anna Yozana (AAY): (next chapter)

Why are anti-poverty measures not successful?

The poverty alleviation programmes were not successful in most parts of India because :

• Lack of proper implementation and right targeting.
• Lot of overlapping schemes.
• Benefits of the schemes did not reach the deserving poor.
• Loopholes in monitoring of the schemes
• Banks often fail to meet government-mandated credit targets in some government schemes.

Q: "Poverty reduction is expected to mark better progress in the next ten to fifteen years." Justify the statement. [CBSE 2014] Or How can poverty be reduced in future in India? Suggest any four points.

Possibility of higher economic growth : Significant reduction in poverty would be possible mainly due to higher economic growth that is increasing decade after decade.

Promoting elementary education: Our government has laid stress on universal free elementary education.

Declining population growth : According to census of 2011, there is a declining trend in population growth in our country. 

Empowerment of women: Recent studies show that there has been a significant increase in the empowerment of women in our country.

Empowerment of weaker sections : There has been a significant change in status of socially and economically weaker sections of society.