Syllabus- Poverty: Concepts of Poverty – Income-based Poverty, non-income Poverty capability approach (Human Poverty Index), Measurement of Poverty and trends in Poverty.
Number of questions- Mains: 02, Prelims – 10
Mains Questions of the day-
1.Despite various strategies to alleviate poverty, it continues to be a major problem in India. Mention the major causes for poverty in India.
Introduction:
Define poverty and mention some current statics related to the poverty.
Body:
What are the measures taken to alleviate poverty in India?
Mention the major causes of poverty in India.
Conclusion:
- Overcoming poverty should be seen as a fundamental right of the citizens and should be given its due importance.
- Thus, a more comprehensive and inclusive approach is required to eradicate poverty in India.
Content:
Poverty:
- Poverty is a state or condition in which a person or community lacks the financial resources to meet the minimum standards of living such as health and education, food, clean water and sanitation etc.
- The 2019 Global Multidimensional Poverty Index published by the UN Development Program has estimated that multidimensional poverty in India has fallen by 27.5% between 2005-06 and 2015-16.
- Multidimensional poverty means the estimation of poor not only based on income but also several factors such as poor health, poor working conditions, etc.
- As of 2011, 21.9% of the Indian population belongs below the poverty line.
- The unemployment rate as of 2021 is 7.1%. This is a huge problem for poverty in India.
The following are the main causes of Poverty in India:
- Population Explosion:
- India’s population has steadily increased through the years.
- During the past 45 years, it has risen at a rate of 2.2% per year, which means on average about 17 million people are added to the country’s population each year.
- This also increases the demand for consumption goods tremendously.
- Low Agricultural Productivity:
- A major reason for poverty in the low productivity in the agriculture sector.
- The reason for low productivity is manifold such as:
- fragmented and subdivided land holdings
- lack of capital
- illiteracy about new technologies in farming
- the use of traditional methods of cultivation
- wastage during storage etc.
- Inefficient Resource utilisation:
- There is underemployment and disguised unemployment in the country, particularly in the farming sector.
- This has resulted in low agricultural output and also led to a dip in the standard of living.
- Low Rate of Economic Development:
- Economic development has been low in India especially in the first 40 years of independence before the LPG reforms in 1991.
- Price Rise:
- Price rise has been steady in the country and this has added to the burden the poor.
- Although a few people have benefited from this, the lower income groups have suffered because of it and are not even able to satisfy their basic minimum wants.
- Lack of demand due to rise in prices.
- Unemployment:
- Unemployment is another factor causing poverty in India.
- The ever-increasing population has led to a higher number of job-seekers.
- However, there is not enough expansion in opportunities to match this demand for jobs.
- Lack of Capital formation:
- The shortage of capital and entrepreneurship results in low level of investment and job creation in the economy.
- Social Factors:
- Apart from economic factors, there are also social factors hindering the eradication of poverty in India.
- Some are laws of inheritance, caste system, certain traditions, etc.
- lack of social/ welfare nets for low income individuals.
- Colonial Exploitation:
- The British colonisation and rule over India for about two centuries deindustrialised india by ruining its traditional handicrafts and textile industries.
- Colonial Policies transformed India to a mere raw-material producer for European industries.
- Climatic Factors:
- Most of india’s poor belong to the states of Bihar, UP, MP, Chhattisgarh, odisha, Jharkhand, etc.
- Natural calamities such as frequent floods, disasters, earthquake and cyclone cause heavy damage to agriculture in these states.
- Other factors such as:
- Social, Economic and Political inequality
- Social Exclusion
- Unequal distribution of wealth.
- Lack of infrastructure
Measures to control Poverty-
Control of population– to remove poverty controlling of population is important. It increases per capita income. India started family planning in 1951, however it must be made more aware to the people.
Increase in employment opportunities– employment opportunities must be made for people in rural areas. Employment in small scale and cottage industries must be encouraged.
Reduce economic inequality– in this way more job and education opportunities will be provided to the poor and this would help to remove poverty.
Land reforms– as many land reforms policy are introduced by the government they must be implemented properly as they will help the small farmers to get employment and thereby remove poverty.
Social security measures– like provident fund, pension, free medical and health services, affordable housing etc should be provided to the rural and urban poor. This will improve the living conditions of people.
Balanced regional development– government must allocate more funds to the backward and rural regions.
2.Efforts of the government to alleviate poverty have borne fruit. The percentage of absolute poor in some states is now well below the national average. What is the approach of Government to alleviate poverty?
Introduction:
Mention the statistics related to poverty.
Body:
Mention the approach of the Government to alleviate poverty.
Conclusion:
Write the way forward.
Content:
Poverty:
- Poverty is a state or condition in which a person or community lacks the financial resources to meet the minimum basic standards of living such as health and education, food, clean water and sanitation etc.
- The National Multidimensional Poverty Index (MPI) measures health and nutrition, education and standard of living.
- Bihar, Jharkhand and Uttar Pradesh have emerged as the poorest states in India, according to Niti Aayog’s first Multidimensional Poverty Index (MPI) report.
- Kerala, Goa, Sikkim, Tamil Nadu and Punjab have registered the lowest poverty across India and are at the bottom of the index.
- Bihar has the highest number of malnourished people followed by Jharkhand, Madhya Pradesh, Uttar Pradesh and Chhattisgarh.
- Bihar is also placed at the bottom for maternal health, deprived years of schooling, school attendance and percentage of population deprived of cooking fuel and electricity.
The following were the government’s approach towards alleviate poverty:
The Indian Constitution states social justice as the primary objective of the developmental strategies of the Government.
The government’s approach to poverty reduction was of three dimensions.
- The first one is growth-oriented approach:
- It is based on the expectation that the effects of economic growth, rapid increase in gross domestic product and per capita income would spread to all sections of society and will trickle down to the poor sections also.
- This was the major focus of planning in the 1950s and early 1960s.
- It was felt that rapid industrial development and transformation of agriculture through green revolution in select regions would benefit the underdeveloped regions and the more backward sections of the community.
- The overall growth and growth of agriculture and industry have not been impressive.
- Population growth has resulted in a very low growth in per capita incomes.
- The gap between poor and rich has actually widened.
- The Green Revolution increase the disparities regionally and between large and small farmers.
- There was unwillingness and inability to redistribute land.
- Economists state that the benefits of economic growth have not trickled down to the poor.
- While looking for alternatives, incomes and employment for the poor could be raised through the creation of additional assets and by means of work generation.
- This could be achieved through specific poverty alleviation programmes.
- This second approach has been initiated from the Third Five Year Plan (1961-66) and progressively enlarged since then.
- The program was initiated in 1970s was Food for Work.
- Most poverty alleviation programmes implemented prior to 2015 were based on the perspective of the Five Year Plans.
- Expanding self-employment programmes and wage employment programmes are being considered as the major ways of addressing poverty.
- Example of self-employment programmes, Prime Minister’s Rozgar Yojana (PMRY) and Swarna Jayanti Shahari Rozgar Yojana (SJSRY).
- This kind of programme was aimed at creating self-employment opportunities in urban areas.
- The Khadi and Village Industries Commission was implementing it.
- Under this programme, one could get financial assistance in the form of bank loans to set up small industries.
- The educated unemployed from low-income families in rural and urban areas could get financial help to set up any kind of enterprise that generates employment under PMRY.
- Some programmes were aim at creating employment opportunities both self-employment and wage employment in urban areas.
- Earlier, under self-employment programmes financial assistance was given to families or individuals.
- Since the 1990s, this approach has been changed.
- Now those who wish to benefit from these programme were encouraged to form self-help groups.
- Initially they are encouraged to save some money and lend among themselves as small loans.
- Later, through banks, the government provides partial financial assistance to SHGs which then decide whom the loan is to be given to for self-employment activities.
- A similar programme has also been in place for urban poor.
- The government has a variety of programmes to generate wage employment for the poor unskilled people living in rural areas.
- The Parliament passed a new Act to provide guaranteed wage employment to every rural household whose adult volunteer is to do unskilled manual work for a minimum of 100 days in a year.
- This is known as Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).
- Under this Act all those among the poor who are ready to work at the minimum wage can report for work in areas.
- Nearly five crore households get employment opportunities under this law.
- The third approach to addressing poverty is to provide minimum basic amenities to the people.
- India envisage that through public expenditure on social consumption needs people’s living standard could be improved such as provision of food grains at subsidised rates, education, health, water supply and sanitation.
- Programmes under this approach are expected to supplement the consumption of the poor, create employment opportunities and bringing improvements in health and education.
- Trace this approach from the Fifth Five Year Plan, “even with expanded employment opportunities, the poor will not be able to buy for themselves all the essential goods and services.
- Three major programmes that aim at improving the food and nutritional status of the poor are Public Distribution System, Poshan Abhiyan and Midday Meal Scheme.
- Pradhan Mantri Gram Sadak Yojana and Valmiki Ambedkar Awas Yojana are also attempts in developing infrastructure and housing conditions.
- The government also has a variety of other social security programmes to help a few specific groups.
- National Social Assistance Programme is one such programme initiated by the central government.
- Under this programme, elderly people who do not have anyone to take care of them are given pension to sustain themselves.
- Poor women who are destitute and widows are also covered under this scheme.
- The government has also introduced a few schemes to provide health insurance to poor people.
- From 2014, a scheme called Pradhan Mantri Jan-Dhan Yojana is available in which people in India are encouraged to open bank accounts.
- Besides promoting savings habit, this scheme intends to transfer all the benefits of government schemes and subsidies to account holders directly.
- Each bank account holder is also entitled to Rs. 1- 2 lakh accidental insurance cover.
Way forward-
- The government must provide transparency and accountability to various organizations that are responsible for the implementation of the Welfare Schemes.
- Infrastructure development and skills development must be made a top priority.
- More government expenditure in health, nutrition, and education.
- The problem of the inability to determine the poverty line must be resolved to help the target population.
- Direct income transfers to the needy is an immediate solution. Universal Basic Income should also be considered.
- Investment in Agriculture by the government is necessary to decrease rural poverty.
- Subsidies address only short-term issues.
- Also, there is a need to develop technologies, with the help of which farmers can practice all-weather agriculture.
- Employment-oriented growth: Create jobs in modern sectors and promote labour-intensive industries.
- Reduce corruption for efficient service delivery.
Prelims Questions of the day:
1.Which of the following represents the main aim of Antyodaya Programme?
- Elimination of Urban Poverty
- Improving the standards of scheduled castes
- Uplifting minorities
- Helping the poorest among poor
Answer: D
Explanation:
- The Government implemented ‘Deen Dayal Antyodaya Yojana’ for the uplift of urban and rural poor through enhancement of livelihood opportunities through skill development and other means.
- This scheme has been launched on 25th September 2014.
2.Which of the following commission stated the use of energy requirements (calorie) as a measure of poverty in India?
- Amartya Sen
- Dandekar and Rath
- Planning Commission
- T. N. Srinivasan
Answer: B
Explanation:
- VM Dandekar and N Rath (1971), made the first systematic assessment of poverty in the country, based on data provided by National Sample Survey (NSS).
- Unlike previous scholars who had considered subsistence living or basic minimum needs criteria as the measure of poverty line, VM Dandekar and N Rath were of the view that poverty line must be derived from the expenditure that was adequate to provide 2250 calories per day in both rural and urban areas.
- Expenditure based Poverty line estimation, generated a debate on minimum calorie consumption norms.
3. Which of the following represents the Relative poverty?
- a person falls behind others
- a person is unable to obtain the necessaries for life
- a person is below poverty line
- a person is poorer than another in the developed World
Answer: A
Explanation:
Relative Poverty:
- It is defined from the social perspective that is living standard compared to the economic standards of population living in surroundings.
- Hence it is a measure of income inequality
4.In which of the following year green revolution was initiated in India?
- 1950
- 1970
- 1960
- 1990
Answer: C
Explanation:
The Green Revolution in India was initiated in the 1960s by introducing high-yielding varieties of rice and wheat to increase food production in order to alleviate hunger and poverty.
5. If a person is ready to work at the prevailing wage rate in the market, but he is unable to find the work, then what type of unemployment would it be called?
- Voluntary unemployment
- Involuntary unemployment
- Seasonal unemployment
- None of the above
Answer: B
Explanation:
Involuntary unemployment is a type of unemployment in which the person wishes to work but he/she does not get the job because the country’s economy lacks in providing opportunity.
6. Which type of unemployment has the marginal productivity of the workers as zero?
- Disguised Unemployment
- Involuntary unemployment
- Seasonal unemployment
- Structural Unemployment
Answer: A
Explanation:
- Disguised Unemployment is the type of a phenomenon wherein more people are employed than actually needed.
- This is why the marginal productivity of the workers is zero here.
7. What type of unemployment is found in developed countries?
- Involuntary unemployment
- Voluntary unemployment
- Structural unemployment
- Disguised Unemployment
Answer: B
Explanation:
- Jobs to the people in the developed country is easily available but they are not ready to work on the prevailing wage rate.
- So, they are voluntarily unemployed.
8.Which of the following organisation is responsible for making the official data on poverty to public?
- National development council
- National Statics Office
- NITI Aayog
- Zonal Council
Answer: C
Explanation:
The official data on poverty is made available to the public by the NITI Aayog. It is estimated on the basis of consumption expenditure data collected by the National Statics Office (NSO).
9. Over the years, which of the following measures were taken by the government to reduce poverty in India?
- Growth oriented development
- Specific poverty alleviation programmes.
- Meeting the minimum needs of the poor
- All the above
Answer: D
Explanation:
All the above approached were followed in India.
As per India Public Policy Report (IPPR) 2014, overcoming poverty in India requires a context specific multi-pronged strategy that includes: a basic needs approach, a human rights entitlement approach, a natural resource management approach and a focus on inclusive economic growth.
10. Which of the following agency is responsible for publishing of National Mutli-Dimensional Poverty index?
- NITI Aayog
- RBI
- UNDP
- World Bank
Answer: A
Explanation:
- NITI Aayog has released the National Multidimensional Poverty Index (MPI).
- Earlier, Global Multidimensional Poverty Index 2021 was released by the United Nations Development Programme (UNDP) and the Oxford Poverty & Human Development Initiative (OPHI).
- The MPI seeks to measure poverty across its multiple dimensions and in effect complements existing poverty statistics based on per capita consumption expenditure.
- National MPI has three equally weighted dimensions – health, education, and standard of living.
- These three dimensions are represented by 12 indicators such as nutrition, school attendance, years of schooling, drinking water, sanitation, housing, bank accounts among others.