<–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.
Unemployment is a phenomenon that occurs when a person who is actively searching for EMPLOYMENT is unable to find work.
- Structural Unemployment focuses on the structural problems within an economy and inefficiencies in labor markets. Structural unemployment occurs when a labor market is not able to provide jobs for everyone who is seeking employment.
- Frictional Unemployment is when workers leave their old jobs but haven’t yet found new ones. Most of the time workers leave voluntarily, either because they need to move, or they’ve saved up enough money to allow them to look for a better job.Frictional unemployment is short-term and a natural part of the job search process.
- Cyclical unemployment is a type of unemployment that occurs when there is not enough Aggregate Demand in the economy to provide jobs for everyone who wants to work. In an economy, demand for most goods falls, less production is needed, and less workers are needed.
- Disguised Unemployment exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero. It is unemployment that does not affect aggregate output.
Human Poverty Index (HPI)
The Human Poverty Index (HPI) was first introduced into the Human Development Report by the United Nations Development Programme (UNDP) in 1997 in an attempt to bring together in a composite index the different features of deprivation in the quality of life to arrive at an aggregate judgement on the extent of poverty in a community.
There are two indices; the HPI – 1, which measures poverty in developing countries, and the HPI-2, which measures poverty in OCED developed economies.
Calculation of HPI-1 for Developing countries:-The following three dimensions are taken into account:
- deprivation of longevity, measured as a Percentage of the individuals with a life expectancy lower than 40 years (P1).
- deprivation of knowledge, expressed as a percentage of illiterate adults (P2).
- deprivation of decent living standards (P3). This last indicator is made up by the simple Average of three basic variables:
- the percentage of the population without access to drinking water (P31),
- the percentage of population without access to health Services (P32) and lastly,
- the percentage of underweight children aged less than five (P33).
The indicator P3, referred to the living standard, is then obtained as an average of the three indicators, in this way:
[(P31 + P32 + P33) / 3
The global index HPI-1 is obtained by combining these three dimensions into one single measure giving a greater weight to the most disadvantaged situation.
The formula is:
HPI-1 = [(P13 + P23 + P33 ) / 3]1/3
While HPI-2 is calculated as follows:-
Multi Dimensional Indian poverty index
Poverty is a multi-dimensional issue and various experts/committees and institutions estimate poverty based on different perceptions/definitions. However, Planning Commission is the nodal agency in the Government of India to estimate poverty in the country. TheMultidimensional Poverty Index (MPI) was developed in 2010 by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme. and uses different factors to determine poverty beyond income-based lists. It replaced the previous Human Poverty Index.
Various dimentions of MPI are:-
| Dimension | Indicators |
|---|---|
| Health |
|
| Education |
|
| Living Standards |
|
Life expectancy at birth: Number of years a newborn infant could expect to live if prevailing patterns of age-specific mortality rates at the time of birth stay the same throughout the infant’s life.
Expected years of schooling: Number of years of schooling that a child of school entrance age can expect to receive if prevailing patterns of age-specific enrolment rates persist throughout the child’s life.
Mean years of schooling: Average number of years of education received by people ages 25 and older, converted from education attainment levels using official durations of each level.
Gross NATIONAL INCOME (GNI) per capita: Aggregate income of an economy generated by its production and its ownership of factors of production, less the incomes paid for the use of factors of production owned by the rest of the world, converted to international dollars using PPP rates, divided by midyear population.,
Poverty is a state of deprivation or lack of Resources. It is often defined as the lack of basic human needs, such as food, water, shelter, and clothing. Poverty can be caused by a number of factors, including unemployment, low wages, lack of education, and discrimination. Poverty can have a number of negative consequences, including poor health, crime, and social unrest. Poverty is a global issue, affecting people in all parts of the world. There are a number of things that can be done to address poverty, including providing access to education and employment opportunities, investing in social programs, and promoting Economic Development.
Poverty is a complex issue with no easy solutions. There is no one-size-fits-all approach to addressing poverty. The best way to address poverty will vary depending on the specific circumstances of each country or region. It is important to remember that poverty is not just a problem for the poor. Poverty affects everyone in society, and it is in everyone’s interest to find solutions to this problem.
One of the most important things that can be done to address poverty is to provide access to education and employment opportunities. Education can help people develop the skills they need to get good jobs, and employment can provide people with the income they need to meet their basic needs. Investing in social programs, such as healthcare and childcare, can also help to reduce poverty. These programs can help to ensure that everyone has access to the essential services they need to live a healthy and productive life.
Promoting economic development is another important way to address poverty. Economic development can create jobs and opportunities, which can help people lift themselves out of poverty. It can also help to improve Infrastructure-2/”>INFRASTRUCTURE and services, which can make it easier for people to live and work.
Poverty is a complex issue, but there are a number of things that can be done to address it. By providing access to education and employment opportunities, investing in social programs, and promoting economic development, we can help to reduce poverty and create a more just and equitable world.
Here are some additional information about poverty:
- According to the World Bank, 736 million people live in extreme poverty, which means they live on less than $1.90 per day.
- The number of people living in extreme poverty has declined by more than half since 1990, but progress has slowed in recent years.
- Poverty is most prevalent in sub-Saharan Africa, where 413 million people live in extreme poverty.
- There are a number of factors that contribute to poverty, including lack of education, unemployment, and discrimination.
- Poverty can have a number of negative consequences, including poor health, crime, and social unrest.
- There are a number of things that can be done to address poverty, including providing access to education and employment opportunities, investing in social programs, and promoting economic development.
Here are some frequently asked questions about poverty and their short answers:
What is poverty?
Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.What are the Causes of Poverty?
Poverty can be caused by a number of factors, including unemployment, low wages, lack of education, and discrimination.What are the effects of poverty?
Poverty can have a number of negative effects on individuals and communities, including poor health, crime, and social isolation.What are the solutions to poverty?
There is no one-size-fits-all solution to poverty, but some effective strategies include providing job training and education, investing in social programs, and raising the minimum wage.What is the role of government in addressing poverty?
The government can play a number of roles in addressing poverty, including providing social safety nets, investing in education and job training, and enforcing anti-discrimination laws.What is the role of individuals in addressing poverty?
Individuals can play a number of roles in addressing poverty, including volunteering their time, donating to Charities, and advocating for policies that help the poor.What is the future of poverty?
The future of poverty is uncertain, but there are a number of factors that could lead to a reduction in poverty, including economic Growth, technological innovation, and Social Change.What are some common misconceptions about poverty?
Some common misconceptions about poverty include the belief that the poor are lazy, the belief that poverty is caused by individual failings, and the belief that there is nothing that can be done to solve poverty.What are some resources for Learning more about poverty?
There are a number of resources available for learning more about poverty, including books, articles, websites, and documentaries.How can I get involved in the fight against poverty?
There are a number of ways to get involved in the fight against poverty, including volunteering, donating to charities, and advocating for policies that help the poor.
Question 1
Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a comfortable living.
Which of the following is not a cause of poverty?
(A) Unemployment
(B) Low wages
(C) Lack of education
(D) Natural disasters
Answer
(D) Natural disasters are not a cause of poverty. They can, however, exacerbate poverty by destroying homes and livelihoods.
Question 2
Poverty has a number of negative consequences, including:
(A) Hunger
(B) Disease
(C) Crime
(D) All of the above
Answer
(D) Poverty can lead to hunger, disease, crime, and other social problems.
Question 3
There are a number of things that can be done to address poverty, including:
(A) Providing access to education and employment opportunities
(B) Investing in infrastructure and social services
(C) Providing social safety nets
(D) All of the above
Answer
(D) All of these things can help to address poverty.
Question 4
The Millennium Development Goals (MDGs) were a set of eight international development goals that were set by the United Nations in 2000. One of the MDGs was to halve the proportion of people living in extreme poverty by 2015.
Did the MDGs succeed in halving the proportion of people living in extreme poverty?
(A) Yes
(B) No
(C) It is difficult to say
Answer
(B) The MDGs did not succeed in halving the proportion of people living in extreme poverty. In fact, the number of people living in extreme poverty increased between 1990 and 2015.
Question 5
The Sustainable Development Goals (SDGs) are a set of 17 international development goals that were set by the United Nations in 2015. One of the SDGs is to eradicate extreme poverty by 2030.
Do you think the SDGs will be successful in eradicating extreme poverty?
(A) Yes
(B) No
(C) It is difficult to say
Answer
(C) It is difficult to say whether the SDGs will be successful in eradicating extreme poverty. However, the SDGs are a step in the right direction, and they provide a framework for countries to work together to address poverty.