Poverty and Development. Poverty-line and Programmes for eradication of Poverty in India.

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<–2/”>a >The World Bank defines POVERTY in absolute terms. The bank defines extreme poverty as living on less than US$1.90 per day> (PPP), and moderate poverty as less than $3.10 a day. Types of Poverty Absolute poverty measures poverty in relation to the amount of Money necessary to meet basic needs such as food, clothing, and shelter. The concept of absolute poverty is not concerned with broader Quality Of Life issues or with the overall level of inequality in Society.

The concept of absolute poverty is based on absolute norms for living (measured in terms of consumption expenditure) laid down according: to specified minimum standard and all such individuals or groups whose consumption expenditure is found to be below this standard are classified as poor. Under the relative concept of poverty, a family (or an individual) is deemed to be poor if its level of income or consumption expenditure falls below a predetermined level.

Poverty in India is measured as the head-count ratio of the Population living below the official ‘Poverty Line’, which is calculated using the methodology prescribed by the Expert Group on Methodology for Estimation of Poverty appointed by the Planning Commission in order to arrive at a threshold consumption level of both food and non-food items. The methodology uses the Consumer Expenditure Surveys (CES) conducted by the National Sample Survey Office (NSSO) of India once every five years to attain the poverty line; and, hence, poverty figures in India are obtained once every five years. The Planning Commission’s latest poverty line, using methodology suggested by the Tendulkar Committee in 2010, is apparently defined as the spending of Rs. 27.20 per capita per day in rural areas and Rs.33.40 per capita per day in urban areas.

Problems with measurement of poverty in India

  • Multiple indicators, depending on which agency or department is counting are used for identification of the poor
  • Divergence of official estimates of poverty ratio with the actual incidence of poverty
  • No poverty census in urban areas
  • Use of different methodologies for estimation and identification of BPL households
  • Restricting the identification of poor in states to the cap fixed by the Planning Commission
  • Variation in estimates
  • Wrong targeting of beneficiaries of welfare schemes

Non-income dimensions of poverty: Multi-dimensional poverty index

Poverty Alleviation Schemes

 

  • Poverty alleviation programmes can be in form of EMPLOYMENT generation programmes or social assistance programmes so that different dimensions of poverty are addressed.
  • At present there are three centrally sponsored employment programmes in operation
    • MNREGS: Rural, wage employment
    • SGSY: Rural, self-employment
    • SJSRY: Urban, self and wage employment
  • MNREGS
    • 2006
    • Launched in 200 most backward districts in the first phase. At present 619 districts are covered under the NREGS
    • During 2008-09, 4.51 crore households were provided employment under the scheme
  • Swarnajayanti Gram Swarozgar Yojana
    • 1999 after restructuring the Integrated Rural Development Programme (IRDP) and allied programmes, viz., Development of Women and Children in Rural Areas (DWCRA), Training of Rural Youth for Self-Employment (TRYSEM), Supply of improved tool-kits to rural artisans (SITRA), Ganga Kalyan Yojana (GKY) and Million Wells Scheme (MWS)
    • Self-employment programme for rural poor
    • Objective is to bring the assisted swarozgaris above the poverty line by providing them income generating assets through bank credit and government subsidy
    • Centre: State – 75:25; 90:10 for NE states
  • Swarna Jayanti Shahari Rozgar Yojana (SJSRY)
    • It is a unified centrally sponsored scheme launched a fresh in lieu of the erstwhile Urban Poverty alleviation programmes, viz, Nehru Rozgar Yojana (NRY), PM’s Integrated Urban Poverty Eradication Programme (PMIUPEP), and Urban Basic Services for the Poor (UBSP)
    • Revamped in 2009
    • Self-employment + Wage employment
  • The revamped SJSRY has 5 components
    • Urban Self-Employment Programme (USEP)
    • Urban Woman Self-help Programme (UWSP)
    • Skill Training for Employment Promotion amongst urban poor (STEP-UP)
    • Urban Wage Employment Programme (UWEP)
    • Urban Community Development Network

History of poverty alleviation/employment generation programmes

Poverty and  Growth-3/”>Inclusive Growth

  • Direct relationship between aggregate poverty and Average consumption
  • Growth in aggregate income is hence needed for reduction in aggregate poverty

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Poverty is a state or condition in which a person or community lacks the Resources and opportunities necessary for a standard of living considered acceptable or necessary. Poverty is a global issue, and it affects people in all parts of the world. However, poverty is particularly prevalent in developing countries, such as India.

There are many Causes of Poverty. Some of the most common causes of poverty include:

  • Unemployment: When people are unemployed, they do not have a Source Of Income. This can lead to poverty, as people may not be able to afford basic necessities such as food, shelter, and clothing.
  • Low wages: Even when people are employed, they may not be paid a living wage. This means that they may not be able to afford basic necessities, even if they are working full-time.
  • Lack of Education: Education is essential for getting a good job and earning a decent income. People who lack education are more likely to be poor.
  • Lack of healthcare: Healthcare is expensive, and people who cannot afford healthcare may not be able to get the care they need. This can lead to illness and even death.
  • Natural disasters: Natural disasters, such as floods, Earthquakes, and hurricanes, can destroy homes and businesses, leaving people without the means to support themselves.
  • War: War can lead to poverty, as it can destroy Infrastructure-2/”>INFRASTRUCTURE, disrupt economies, and displace people.

Poverty has many negative effects on individuals and society as a whole. Some of the negative effects of poverty include:

  • Hunger: Poverty can lead to hunger, as people may not be able to afford to buy food. Hunger can cause Malnutrition, which can lead to Health problems such as stunted growth, impaired cognitive development, and increased risk of disease.
  • Malnutrition: Malnutrition is a condition that occurs when people do not get enough nutrients in their diet. Malnutrition can cause a variety of health problems, including stunted growth, impaired cognitive development, and increased risk of disease.
  • Disease: Poverty can lead to disease, as people who are poor may not have access to healthcare or healthy food. Diseases such as malaria, tuberculosis, and HIV/AIDS are more common among people who are poor.
  • Illiteracy: Poverty can lead to illiteracy, as children who are poor may not have access to education. Illiteracy can make it difficult for people to get good jobs and earn a decent income.
  • Crime: Poverty can lead to crime, as people who are poor may turn to crime as a way to make money. Crime can have a negative impact on society, as it can lead to violence, property damage, and fear.
  • Violence: Poverty can lead to violence, as people who are poor may be more likely to experience domestic violence, child abuse, and gang violence. Violence can have a negative impact on individuals and society as a whole.

There are many things that can be done to eradicate poverty. Some of the most effective measures to eradicate poverty include:

  • Creating jobs: One of the most effective ways to eradicate poverty is to create jobs. When people have jobs, they have a source of income and can afford to buy basic necessities.
  • Raising wages: Another effective way to eradicate poverty is to raise wages. When people are paid a living wage, they are more likely to be able to afford basic necessities.
  • Providing education: Education is essential for getting a good job and earning a decent income. Providing education to people who are poor can help them to lift themselves out of poverty.
  • Providing healthcare: Healthcare is essential for good health. Providing healthcare to people who are poor can help them to stay healthy and avoid illness.
  • Providing disaster relief: Natural disasters can cause poverty, as they can destroy homes and businesses, leaving people without the means to support themselves. Providing disaster relief can help people to recover from natural disasters and rebuild their lives.
  • Promoting peace: War can lead to poverty, as it can destroy infrastructure, disrupt economies, and displace people. Promoting peace can help to prevent war and reduce poverty.

The future of poverty alleviation in India is uncertain. There are many challenges that need to be addressed in order to eradicate poverty in India. However, there are also many reasons to be optimistic about the future of poverty alleviation in India. The Indian government has made significant progress in reducing poverty in recent years. The government has implemented a number of successful poverty alleviation programmes, such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The MGNREGA is a programme that provides guaranteed employment to rural households. The programme has helped to reduce poverty in rural India by providing employment and income to poor households.

The Indian economy is growing rapidly, and this growth is expected to continue in the future. Economic growth can help to reduce poverty by creating jobs and increasing incomes. The Indian government is also investing in education and healthcare, which can help to reduce poverty by providing people with the skills and resources they need to lift themselves out

What is poverty?
Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a comfortable life.

What is the poverty line?
The poverty line is a level of income below which a person or family is considered to be poor. The poverty line is set by the government and varies depending on the country.

What are the causes of poverty?
There are many causes of poverty, including unemployment, low wages, lack of education, and discrimination.

What are the effects of poverty?
Poverty can have a devastating effect on individuals, families, and communities. Poverty can lead to hunger, homelessness, crime, and poor health.

What are the solutions to poverty?
There are many solutions to poverty, including providing education and job training, creating jobs, and providing social safety nets.

What are the programs for eradication of poverty in India?
The government of India has implemented a number of programs to eradicate poverty, including the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the Pradhan Mantri Jan Dhan Yojana (PMJDY), and the Pradhan Mantri Kaushal Vikas Yojana (PMKVY).

What is the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social security program that guarantees employment to rural households. The program provides 100 days of paid work to every household whose adult members volunteer to do unskilled manual work.

What is the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a Financial Inclusion program that aims to provide financial services to the poor, including bank accounts, overdrafts, and insurance.

What is the Pradhan Mantri Kaushal Vikas Yojana (PMKVY)?
The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a Skill development program that aims to train 10 million people in various skills. The program provides financial assistance to individuals to take up skill training courses.

  1. Which of the following is not a measure of poverty?
    (A) Headcount Ratio
    (B) Poverty Gap ratio
    (C) Poverty severity ratio
    (D) Human Development index

  2. The poverty line in India is defined as the per capita consumption expenditure below which a person is considered poor. In 2011-12, the poverty line for rural areas was Rs. 972 per capita per month and for urban areas it was Rs. 1407 per capita per month.
    (A) True
    (B) False

  3. The following are some of the programmes launched by the Government of India to eradicate poverty:
    (A) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
    (B) Pradhan Mantri Jan Dhan Yojana (PMJDY)
    (C) Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
    (D) All of the above

  4. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social security programme that provides at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
    (A) True
    (B) False

  5. The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion scheme that aims to provide a basic Banking account with overdraft facility, RuPay debit card and accident insurance cover of Rs. 2 lakh to every adult Indian.
    (A) True
    (B) False

  6. The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a skill development scheme that aims to train 500 million people in different skills by 2022.
    (A) True
    (B) False

  7. The following are some of the challenges in eradicating poverty in India:
    (A) High levels of illiteracy and unemployment
    (B) Inadequate infrastructure
    (C) Lack of access to basic services
    (D) All of the above

  8. The following are some of the initiatives taken by the Government of India to address the challenges of poverty:
    (A) Increasing Investment in education and health
    (B) Improving infrastructure
    (C) Expanding access to basic services
    (D) All of the above

  9. The following are some of the achievements of the Government of India in the fight against poverty:
    (A) The poverty rate has declined from 36% in 1993-94 to 21.9% in 2011-12.
    (B) The number of people living below the poverty line has declined from 455 million in 1993-94 to 270 million in 2011-12.
    (C) The Human Development Index (HDI) of India has improved from 0.442 in 1990 to 0.632 in 2015.
    (D) All of the above

  10. The following are some of the areas where the Government of India needs to focus more to eradicate poverty:
    (A) Education
    (B) Health
    (C) Infrastructure
    (D) All of the above

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