Class 9 Economics Chapter 3: Poverty as
a Challenge
Introduction
Poverty is one of the most significant challenges faced by independent India. This
chapter explores the concept of poverty, its causes, and its implications on society. It
also discusses how poverty is viewed in social sciences and the measures taken to
alleviate it.
The Poverty Line
The poverty line is a common method used to measure poverty. A person is considered
poor if their income or consumption level falls below a certain minimum level required
to fulfill basic needs. These basic needs include food, clothing, footwear, fuel, light,
education, and medical care.
In India, the poverty line is estimated based on the monetary value of a minimum
calorie intake. The calorie requirement is higher in rural areas (2400 calories per
person per day) compared to urban areas (2100 calories per person per day) due to
higher physical work in rural areas. The poverty line is updated periodically to account
for inflation and changes in the cost of living.
Poverty Estimation Methodology
The present methodology of poverty estimation in India primarily considers economic
status. However, many argue that this approach is not entirely appropriate because it
focuses only on a minimum subsistence level rather than a reasonable standard of
living. Poverty is a broader concept that includes lack of education, healthcare, job
security, and dignity.
To accurately assess and combat poverty, these non-economic factors should also be
considered. The definition of poverty has evolved with development, and a holistic
approach is needed to address its various dimensions.
Poverty Trends in India
India has seen a significant decline in poverty since 1973. The poverty ratio, which was
around 45% in 1993-94, decreased to about 22% in 2011-12. Despite this reduction, the
absolute number of poor people remains high. This indicates that while a smaller
percentage of the population is poor, the sheer size of India's population means
millions still live below the poverty line.
Major Reasons for Poverty in India
Several factors contribute to poverty in India:
1. Colonial Rule: The policies of the British colonial government ruined traditional
handicrafts and discouraged the development of industries, leading to a low
level of economic development.
2. Population Growth: A high growth rate of population, without a proportional
increase in job opportunities, exacerbates poverty.
3. Unequal Distribution of Resources: Unequal distribution of land and other
resources is a significant factor.
4. Social and Religious Factors: Poor people often spend a considerable amount
on social obligations and religious ceremonies, leading to indebtedness.
5. Unemployment: Lack of sufficient job opportunities, despite initiatives like the
Green Revolution, contributes to poverty.
6. Inflation: Rising prices of essential goods make it difficult for the poor to meet
their basic needs.
Vulnerable Groups
Certain social and economic groups are more vulnerable to poverty in India:
Social Groups: Scheduled Castes (SCs) and Scheduled Tribes (STs) households.
Economic Groups: Rural agricultural labor households and urban casual labor
households.
Within these groups, women, female infants, and the elderly are often the poorest of
the poor, as they suffer the most from deprivation within poor households.
Interstate Disparities of Poverty
Poverty levels vary significantly across different states in India. States like Odisha,
Bihar, and Madhya Pradesh have a higher percentage of their population living below
the poverty line. In contrast, states such as Jammu and Kashmir, Punjab, and
Himachal Pradesh have been more successful in reducing poverty. These disparities
are due to various factors, including differences in economic growth, agricultural
development, and implementation of poverty alleviation programs.
Global Poverty Trends
Globally, there has been a substantial reduction in poverty. Countries like China and
other South-East Asian nations have seen a significant decline in poverty due to rapid
economic growth and massive investments in human resource development.
However, regional disparities persist. In Latin America, the poverty ratio has remained
largely unchanged, while in sub-Saharan Africa, poverty has shown an upward trend.
Some former socialist countries, like Russia, have also experienced the re-emergence
of poverty.
Anti-Poverty Measures
The Indian government's anti-poverty strategy is based on two main approaches:
1. Promotion of Economic Growth: Higher economic growth helps in reducing
poverty by creating more opportunities and increasing income levels.
2. Targeted Anti-Poverty Programmes: Various schemes have been launched to
directly help the poor. Some notable examples include:
Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) 2005: Aims to provide 100 days of wage employment in a
financial year to every rural household whose adult members volunteer to
do unskilled manual work.
Pradhan Mantri Gramodaya Yojana (PMGY): Focuses on basic services like
primary health, primary education, rural shelter, rural drinking water, and
rural roads.
Prime Minister Rozgar Yojana (PMRY): Aims to create self-employment
opportunities for educated unemployed youth in rural areas and small
towns.
Swarnajayanti Gram Swarozgar Yojana (SGSY): Focuses on promoting
micro-enterprises and self-help groups among the rural poor.
