Poverty as Resources ||Economics|| Chapter 3 Notes
(iii) Concept of Poverty line.
(iv) Causes of poverty
(v) Anti-poverty measures taken by the government
(vi) Official concept of poverty into human poverty
- Poverty is described not just as a lack of income but also as a lack of basic necessities like clean water, sanitation, and healthcare.
- The poor could be landless labourers in villages or people living in overcrowded jhuggis in urban areas.
- Every 4th person in India is poor. India has the largest single concentration of the poor in the world.
Urban Case: Ram Saran
- Occupation: Daily wage laborer in a flour mill near Ranchi, Jharkhand.
- Income: Earns around ₹1500 per month when employed.
- Family: Supports a family of six and sends money to his elderly parents.
- Living Conditions: Lives in a one-room rented house on the outskirts of the city.
- Challenges: His children are undernourished, have very few clothes or footwear, and no access to healthcare. None of his four children can attend school.
Rural Case: Lakha Singh
- Occupation: Landless laborer in a village near Meerut, Uttar Pradesh.
- Income: Earns ₹50 per day by doing odd jobs for farmers, sometimes receiving food grains instead of cash.
- Family: Lives with a family of eight in a kuchha hut at the edge of the village.
- Challenges: The family has no access to healthcare, cannot afford new clothes or even basic necessities like soap or oil. Lakha Singh is illiterate.
Social Indicators: Social scientists use indicators such as illiteracy levels, lack of access to healthcare, lack of job opportunities, and lack of access to safe drinking water and sanitation to understand poverty.
Social Exclusion: This concept refers to the poor being excluded from the community and society. It highlights how poverty must be seen in terms of the poor living only among other poor people, which limits their opportunities and access to resources.
Vulnerability: Vulnerability describes the greater risk of certain groups (like members of backward castes or individuals such as widows or physically handicapped persons) being more adversely affected by poverty. It measures the likelihood of these groups falling into deeper poverty due to external shocks like natural disasters or economic downturns.
Poverty Line: The poverty line is a method used to measure poverty based on income or consumption levels. It varies according to time and place. In India, the poverty line is determined by the minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirements.
Calorie Requirement: The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas. These calorie requirements are used to estimate the poverty line.
Trends in Poverty: The chapter discusses the trends in poverty in India over time. It highlights that while the percentage of people living below the poverty line has decreased, the absolute number of poor people remains high due to population growth.
Global Comparisons: The chapter also compares poverty in India with global trends, showing that India has a significant proportion of the world’s poor.
Vulnerable Groups: Certain groups, such as scheduled castes and tribes, casual laborers in urban areas, and rural agricultural laborers, are more vulnerable to poverty.
Global Trends: The chapter highlights that poverty is a global issue, affecting many countries around the world. It mentions that while some countries have made significant progress in reducing poverty, others still struggle with high poverty rates.
Regional Differences: There are significant regional differences in poverty levels. For example, countries in Sub-Saharan Africa and South Asia have higher poverty rates compared to other regions.
Success Stories: The chapter also discusses success stories where countries have managed to significantly reduce poverty through rapid economic growth and investments in human resource development. China and Southeast Asian countries are often cited as examples.
International Efforts: Various international organizations, such as the World Bank and the United Nations, are working towards reducing global poverty. Initiatives like the Sustainable Development Goals (SDGs) aim to eradicate extreme poverty by 2030.
Lack of Education:
- Poor access to quality education limits job opportunities.
- Illiteracy and lack of skills hinder employment prospects.
Unemployment:
- High levels of unemployment reduce income and increase poverty.
- Economic downturns can lead to job losses.
Economic Inequality:
- Unequal distribution of wealth results in a large gap between the rich and the poor.
- Marginalized communities often experience systemic barriers that perpetuate poverty.
Population Growth:
- Rapid population growth can strain resources and services.
- Increased competition for limited jobs and resources can exacerbate poverty.
Rural Economic Issues:
- Dependence on agriculture, which is often seasonal and vulnerable to climate change.
- Lack of infrastructure in rural areas limits access to markets and opportunities.
Health Issues:
- Poor health reduces productivity and leads to high medical expenses.
- Malnutrition can affect physical and cognitive development, especially in children.
Political Factors:
- Political instability, corruption, and lack of governance can hinder economic development.
- Ineffective policies may fail to address poverty.
Social Factors:
- Discrimination based on caste, gender, or religion can limit opportunities.
- Social exclusion may perpetuate poverty cycles.
Natural Disasters:
- Natural calamities like floods, droughts, and earthquakes can devastate livelihoods.
- Recovery from such disasters can be slow and difficult.
Global Factors:
- Global economic conditions, such as recessions, can affect local economies.
- Trade policies and market access can impact developing countries.
1. Definition of Poverty
- Poverty is a condition where individuals lack the financial resources to meet basic needs such as food, clothing, and shelter.
- It can be classified into two types:
- Absolute Poverty: A situation where individuals cannot meet the minimum requirements for survival.
- Relative Poverty: A situation where individuals are poorer than the majority of the population.
2. Poverty Line
- The poverty line is an economic measure that defines the minimum level of income deemed adequate in a particular country.
- For example, in India, the poverty line is determined based on calorie intake and other basic needs.
3. Government Initiatives
The Indian government has launched various schemes and programs to address poverty:
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
- Provides at least 100 days of wage employment in a financial year to every rural household.
Public Distribution System (PDS):
- Aims to provide subsidized food and essential commodities to the poor.
Integrated Rural Development Program (IRDP):
- Focuses on providing assets and skills to the rural poor for self-sufficiency.
National Food Security Act:
- Ensures access to adequate food at affordable prices for people in need.
Self-Employed Women’s Association (SEWA):
- Supports women workers in the informal sector to organize, gain rights, and secure their livelihoods.
4. Role of Education
- Education is a critical component in the fight against poverty.
- Programs aimed at improving literacy and vocational training can empower individuals to secure better jobs.
5. Health Care Access
- Improving access to healthcare services ensures that illnesses do not impoverish families further.
6. Microfinance and Self-Help Groups (SHGs)
- Microfinance programs provide small loans to the poor, enabling them to start self-employment ventures.
- SHGs encourage savings and provide credit to members, helping them to improve their economic situation.
7. Skill Development Programs
- Initiatives are taken to enhance vocational skills, making the workforce more employable.
8. Urban Development Programs
- Schemes like the Pradhan Mantri Awas Yojana aim to provide housing and infrastructure in urban areas.