Poverty as a challenge
- 1. POVERTY AS A CHALLENGE CLASS IX CBSE: SOCIAL SCIENCE ECONOMICS: CHAPTER – 3 (BY: MRS. USHA JOY)
- 3. POVERTY AS A CHALLENGE INTRODUCTION Every fourth person in India is poor. This means, roughly 270 million (or 27 crore) people in India live in poverty 2011-12. This also means that India has the largest single concentration of the poor in the world. This illustrates the seriousness of the challenge.
- 4. ISSUES RELATED TO POVERTY • Issues related to poverty: • Landlessness • Unemployment • Size of families • Illiteracy • Poor health/malnutrition • Child labour • Helplessness
- 5. RURAL AND URBAN POVERTY • Poverty means hunger and lack of shelter • Parents are not able to send their children to school or a situation where sick people cannot afford treatment. • Lack of clean water and sanitation facilities. • Lack of a regular job at a minimum decent level. • Living with a sense of helplessness. • Mahatama Gandhi always insisted that India would be truly independent only when the poorest of its people become free of human suffering.
- 8. POVERTY AS SEEN BY SOCIAL SCIENTISTS • Usually the indicators used by the social scientists to analyse poverty are the levels of income and consumption. • But now poverty is looked through other social indicators like illiteracy level, lack of general resistance due to malnutrition, lack of access to healthcare, lack of job opportunities, lack of access to safe drinking water, sanitation etc. • Analysis of poverty based on social exclusion and vulnerability is now becoming very common. • Social exclusion: poverty must be seen in terms of the poor having to live only in a poor surrounding with other poor people, excluded from enjoying social equality of better-off people in better surroundings.
- 9. SOCIAL EXCLUSION • Broadly, it is a process through which individuals or groups are excluded from facilities, benefits and opportunities that others (their “betters”) enjoy. A typical example is the working of the caste system in India in which people belonging to certain castes are excluded from equal opportunities.
- 10. VULNERABILITY • Vulnerability to poverty is a measure, which describes the greater probability of certain communities (say, members of a backward caste) or individuals (such as a widow or a physically handicapped person) of becoming, or remaining, poor in the coming years. • Further, it is analysed on the basis of the greater risks these groups face at the time of natural disasters. • In fact, vulnerability describes the greater probability of being more adversely affected than other people when bad time comes for everybody, whether a flood or an earthquake or simply a fall in the availability of jobs
- 11. POVERTY LINE • A common method used to measure poverty is based on the income or consumption levels. • A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfill the basic needs. • Poverty line may vary with time and place. • Each country uses an imaginary line that is considered appropriate for its existing level of development and its accepted minimum social norms is termed as poverty line. • For example, a person not having a car in the United States may be considered poor. In India, owning of a car is still considered a luxury.
- 12. POVERTY LINE IN INDIA • A minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirement, etc., are determined for subsistence. • These physical quantities are multiplied by their prices in rupees. • The present formula for food requirement is based on the desired calorie requirement. • 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas. • The monetary expenditure per capita needed for buying these calorie requirements in terms of food grains, etc., is revised periodically taking into consideration the rise in prices.
- 13. POVERTY LINE IN INDIA • On the basis of these calculations, for the year 2011–12, the poverty line for a person was fixed at Rs 816 per month for rural areas and Rs 1000 for urban areas. • A family of five members living in rural areas and earning less than about Rs 4,080 per month will be below the poverty line. • A family in the urban areas would need a minimum of Rs 5,000 per month. • The poverty line is estimated periodically (normally every five years) by conducting sample surveys. These surveys are carried out by the National Sample Survey Organisation (NSSO). • The World Bank use a uniform standard for the poverty line - $1.90 per person per day (2011, ppp).
- 15. POVERTY ESTIMATES • There is a substantial decline in poverty ratios in India from about 45 per cent in 1993-94 to 37.2 per cent in 2004–05. • The proportion of people below poverty line further came down to about 22 per cent in 2011–12. If the trend continues, people below poverty line may come down to less than 20 per cent in the next few years. • Although the percentage of people living under poverty declined but the number of poor declined from 407 million in 2004–05 to 270 million in 2011–12 with an average annual decline of 2.2 percentage points during 2004–05 to 2011–12.
- 16. VULNERABLE GROUPS • Social groups - Scheduled Caste and Scheduled Tribe households. • Economic groups - the rural agricultural labour households and the urban casual labour households. • Although the average for people below poverty line for all groups in India is 22 • 43 out of 100 people belonging to Scheduled Tribes, • 29 per cent Scheduled Castes • 34 per cent of casual workers in urban areas are below poverty line. • 34 per cent of casual labour farm (in rural areas)
- 18. POOREST OF THE POOR • Apart from these social groups, there is also inequality of incomes within a family. • In poor families all suffer, but some suffer more than others. • In some cases women, elderly people and female infants are denied equal access to resources available to the family.
- 19. INTER-STATE DISPARITIES • The proportion of poor people is not the same in every state. • Recent estimates show while the all India Head Count Ratio (HCR) was 21.9 per cent in 2011-12 states like Madhya Pradesh, Assam, Uttar Pardesh, Bihar and Odisha had above all India poverty level. • Bihar and Odisha continue to be the two poorest states with poverty ratios of 33.7 and 32.6 per cent respectively. • Along with rural poverty, urban poverty is also high in Odisha, Madhya Pradesh, Bihar and Uttar Pradesh.
- 20. INTER-STATE DISPARITIES • There has been a significant decline in poverty in Kerala, Maharashtra, Andhra Pradesh, Tamil Nadu, Gujarat and West Bengal. • States like Punjab and Haryana have traditionally succeeded in reducing poverty with the help of high agricultural growth rates. • Kerala has focused more on human resource development. • In West Bengal, land reform measures have helped in reducing poverty. • In Andhra Pradesh and Tamil Nadu public distribution of food grains could have been responsible for the improvement.
- 22. GLOBAL POVERTY SCENARIO • As per the World Bank a person who earns less than $1.90 per day is considered as poor. • It has fallen from 36 per cent in 1990 to 10 per cent in 2015. • Although there has been a substantial reduction in global poverty, it is marked with great regional differences. • Poverty declined substantially in China and Southeast Asian countries as a result of rapid economic growth and massive investments in human resource development. • Number of poors in China has come down from 88.3 per cent in 1981 to 14.7 per cent in 2008 to 0.7 per cent in 2015
- 24. GLOBAL POVERTY SCENARIO • In the countries of South Asia (India, Pakistan, Sri Lanka, Nepal, Bangladesh, Bhutan) the decline has also been rapid 34 per cent in 2005 to 16.2 per cent in 2013. • In Sub-Saharan Africa, poverty in fact declined from 51 per cent in 2005 to 41 per cent in 2015 • In Latin America, the ratio of poverty has also declined from 10 per cent in 2005 to 4 per cent in 2015 • Poverty has also resurfaced in some of the former socialist countries like Russia, where officially it was non-existent earlier. • The new sustainable development goals of the United Nations (UN) proposes ending poverty of all types by 2030
- 25. CAUSES OF POVERTY • One historical reason is the low level of economic development under the British colonial administration. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles. • This resulted in less job opportunities and low growth rate of incomes. This was accompanied by a high growth rate of population. • The failure at both the fronts: promotion of economic growth and population control perpetuated the cycle of poverty.
- 26. CAUSES OF POVERTY • With the spread of irrigation and the Green revolution, many job opportunities were created in the agriculture sector. But these were not enough to absorb all the job seekers. They started living in slums on the outskirts of the cities and the problems of poverty. • Another feature of high poverty rates has been the huge income inequalities. One of the major reasons for this is the unequal distribution of land and other resources. Despite many policies, we have not been able to tackle the issue in a meaningful manner.
- 27. CAUSES OF POVERTY • Many other socio-cultural and economic factors also are responsible for poverty. In order to fulfil social obligations and observe religious ceremonies, people in India, including the very poor, spend a lot of money. • Small farmers need money to buy agricultural inputs like seeds, fertilizer, pesticides etc. Since poor people hardly have any savings, they borrow. Unable to repay because of poverty, they become victims of indebtedness.
- 28. ANTI-POVERTY MEASURES • The current anti-poverty strategy of the government is based broadly on two planks • (1) promotion of economic growth • (2) targeted anti-poverty programmes.
- 29. PROMOTION OF ECONOMIC GROWTH • Official poverty estimates which were about 45 per cent in the early 1950s remained the same even in the early eighties. • The growth rate jumped from the average of about 3.5 per cent a year in the 1970s to about 6 per cent during the 1980s and 1990s. • The higher growth rates have helped significantly in the reduction of poverty. • Therefore, it is becoming clear that there is a strong link between economic growth and poverty reduction. • Economic growth widens opportunities and provides the resources needed to invest in human development.
- 30. PROMOTION OF ECONOMIC GROWTH • This also encourages people to send their children, including the girl child, to schools in the hope of getting better economic returns from investing in education. • However, the poor may not be able to take direct advantage from the opportunities created by economic growth. • Moreover, growth in the agriculture sector is much below expectations. This has a direct bearing on poverty as a large number of poor people live in villages and are dependent on agriculture.
- 31. TARGETED ANTI-POVERTY PROGRAMMES • 1. Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA): Passed in 2005 • Aims to provide 100 days of wage employment to every household. • It also aimed at sustainable development to address the cause of draught, deforestation and soil erosion. • One-third of the proposed jobs have been reserved for women. • The scheme provided employment to 220 crores person days of employment to 4.78 crore households. The share of SC, ST, Women person days in the scheme are 23 per cent, 17 per cent and 53 per cent respectively.
- 32. TARGETED ANTI-POVERTY PROGRAMMES • Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA): • The average wage has increased from 65 in 2006–07 to 132 in 2013–14. • Recently, in March 2018, the wage rate for unskilled manual workers has been revised, state wise, the range of wage rate for different states and union territories lies in between ` 281 per day (for the workers in Haryana) to ` 168 per day (for the workers of Bihar and Jharkhand).
- 34. TARGETED ANTI-POVERTY PROGRAMMES • 2. Prime Minister Rozgar Yozana (PMRY): • Started in 1993. The aim of the programme is to create self-employment opportunities for educated unemployed youth in rural areas and small towns. • They are helped in setting up small business and industries. • Rural Employment Generation Programme (REGP) was launched in 1995. The aim of the programme is to create self-employment opportunities in rural areas and small towns. A target for creating 25 lakh new jobs has been set for the programme under the Tenth Five Year plan.
- 36. TARGETED ANTI-POVERTY PROGRAMMES • Swarnajayanti Gram Swarozgar Yojana (SGSY) was launched in 1999. • The programme aims at bringing the assisted poor families above the poverty line by organising them into self help groups through a mix of bank credit and government subsidy. • Pradhan Mantri Gramodaya Yozana (PMGY) launched in 2000, additional central assistance is given to states for basic services such as primary health, primary education, rural shelter, rural drinking water and rural electrification. • Antyodaya Anna Yozana (AAY): launched in 2000.
- 37. TARGETED ANTI-POVERTY PROGRAMMES • DEMERITS: • One of the major reasons for less effectiveness is the lack of proper implementation and right targeting. • There has been a lot of overlapping of schemes. • Despite good intentions, the benefits of these schemes are not fully reached to the deserving poor. • Therefore, the major emphasis in recent years is on proper monitoring of all the poverty alleviation programmes.
- 38. THE CHALLENGES AHEAD • Poverty reduction is expected to make better progress in the next ten to fifteen years. This would be possible mainly due to higher economic growth, increasing stress on universal free elementary education, declining population growth, increasing empowerment of the women and the economically weaker sections of society • Eradication of poverty is always a moving target. Hopefully we will be able to provide the minimum “necessary” in terms of only income to all people by the end of the next decade. But the target will move on for many of the bigger challenges that still remain: providing health care, education and job security for all, and achieving gender equality and dignity for the poor. These will be even bigger tasks.