POVERTY AS A CHALLENGE - Q&A
1. Describe how the poverty line is estimated in India.In India, the poverty line is estimated by measuring the minimum level of income or consumption required to satisfy basic human needs.
Explanation:
The estimation involves two main criteria:
1. Calorie Requirement: It is based on the minimum food requirement. The accepted average is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas (urban requirement is lower because physical labor is generally less).
2. Monetary Expenditure: The cost of these food items (grains, pulses, oil, etc.) plus other essential non-food items (clothing, footwear, fuel, light, education, and medical needs) is calculated in Rupees.
This monetary value is revised periodically to account for inflation. For example, in 2011-12, the poverty line was fixed at Rs 816 per month for rural areas and Rs 1000 per month for urban areas.
2. Do you think that present methodology of poverty estimation is appropriate?
No, the present methodology is not fully appropriate because it only measures "minimum subsistence" rather than a "reasonable level of living".
Explanation:
- Limited Scope: The current method focuses primarily on food and a few essential items. It ignores other important social indicators like access to healthcare, clean drinking water, sanitation, and education.
- Multidimensional Poverty: Poverty is not just about lack of money. It also involves a lack of political voice, social exclusion, and vulnerability to diseases. Many economists suggest moving towards "Human Poverty," which considers whether a person has job security, self-confidence, and freedom from caste discrimination, not just enough food to stay alive.
3. Describe poverty trends in India since 1973.
There has been a substantial decline in poverty ratios in India since 1973.
Explanation:
- Decline in Ratio: The percentage of people living below the poverty line fell from about 55% in 1973 to 36% in 1993 and further down to about 22% in 2011-12.
- Decline in Numbers: Although the percentage of poor people declined steadily, the number of poor people remained high (around 320 million) for a long time due to population growth. However, recent estimates show a significant decline in the number of poor to about 270 million in 2011-12.
- NITI Aayog Data: According to the Multidimensional Poverty Index (MPI), poverty has fallen from roughly 55% in 2005-06 to about 15% in 2019-21.
4. Discuss the major reasons for poverty in India.
The major reasons for poverty in India are historical, economic, and social.
Explanation:
1. British Colonial Rule: The policies of the colonial government ruined traditional handicrafts and discouraged development in industries like textiles, leading to low economic growth.
2. High Population Growth: A high birth rate combined with low economic growth resulted in a low per capita income.
3. Lack of Job Opportunities: The Green Revolution was limited to certain areas, and the industrial sector could not absorb all job seekers, leading to high unemployment.
4. Income Inequality: Unequal distribution of land and other resources is a major cause. Land reform measures have not been fully effective.
5. Socio-Cultural Factors: Huge expenditure on social obligations (marriages, festivals) often forces poor people into debt.
5. Identify the social and economic groups which are most vulnerable to poverty in India.
Certain social and economic groups are more vulnerable to poverty than others.
Social Groups:
- Scheduled Tribes (ST): They are the most vulnerable, with a very high percentage living below the poverty line.
- Scheduled Castes (SC): They also face significant disadvantages and higher poverty rates.
Economic Groups:
- Rural Agricultural Labourers: Landless farm workers face seasonal unemployment and low wages.
- Urban Casual Labourers: Workers in construction or daily wage jobs in cities face job insecurity.
Note: Within these groups, women, elderly people, and female children are often the "poorest of the poor" as they are denied equal access to resources.
6. Give an account of interstate disparities of poverty in India.
Poverty is not evenly distributed across the country; there are significant differences between states.
Explanation:
- Poorest States: States like Bihar and Odisha continue to be the two poorest states with poverty ratios of 33.7% and 32.6% respectively.
- Successful States: States like Punjab and Haryana have reduced poverty through high agricultural growth.
- Other Factors:
- Kerala has focused on human resource development (education/health).
- West Bengal has reduced poverty through effective land reform measures.
- Andhra Pradesh and Tamil Nadu have reduced poverty through the public distribution of food grains.
7. Describe global poverty trends.
Global poverty has declined substantially, but with great regional differences.
Explanation:
- China and Southeast Asia: Poverty fell rapidly due to massive economic growth and investment in human resources. In China, the number of poor fell from 88.3% in 1981 to less than 1% in 2018.
- South Asia (India, Pakistan, etc.): The decline has been steady but slower than in China.
- Sub-Saharan Africa: Poverty declined slowly, from 51% in 2005 to 40.2% in 2018.
- Latin America: The poverty ratio has remained relatively unchanged.
- Socialist Countries: Poverty has resurfaced in countries like Russia, where it was earlier non-existent.
8. Describe current government strategy of poverty alleviation.
The current government strategy relies on two distinct planks: (1) Promotion of Economic Growth and (2) Targeted Anti-Poverty Programmes.
Explanation:
1. Promotion of Economic Growth: Higher economic growth is expected to trickle down to the poor by creating opportunities and resources for human development (education, health).
2. Targeted Anti-Poverty Programmes: Since growth alone was not enough, the government launched specific schemes to help the poor directly. Examples include:
- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): Guarantees 100 days of wage employment to every rural household.
- PMRY (Prime Minister Rozgar Yojana): Aims to create self-employment opportunities for educated unemployed youth.
- SGSY (Swarnajayanti Gram Swarozgar Yojana): Organizes poor families into Self Help Groups (SHGs) to provide bank credit.
- PMGY (Pradhan Mantri Gramodaya Yojana): Provides central assistance for basic services like primary health, education, and shelter.
9. Answer the following questions briefly:
(i) What do you understand by human poverty?
Human poverty is a broader concept than just lack of income. It refers to the denial of political, social, and economic opportunities to an individual. It includes lack of education, healthcare, shelter, job security, and dignity.
(ii) Who are the poorest of the poor?
Within poor families, women, elderly people, and female infants are considered the "poorest of the poor." This is because they are often denied equal access to the resources available to the family.
(iii) What are the main features of the National Rural Employment Guarantee Act 2005?
The main features of MGNREGA 2005 are:
1. Guaranteed Employment: It provides 100 days of assured wage employment every year to every rural household.
2. Women's Reservation: One-third of the proposed jobs are reserved for women.
3. Unemployment Allowance: If the government fails to provide employment within 15 days of application, the applicant is entitled to a daily unemployment allowance.