CBSE Class 9th Economy Notes Chapter 3 Poverty as a Challenge

Learning Objective

  • Introduction
  • Two Typical Cases of Poverty
  • Poverty as Seen by Social Scientists
  • Poverty Line
  • Poverty Estimates
  • Vulnerable Groups
  • Inter-State Disparities
  • Global Poverty Scenario
  • Causes of Poverty
  • Anti-Poverty Measures
  • The Challenges Ahead

Introduction

In our daily life, we see poverty all around us. They could be landless labourers in villages, people living in overcrowded jhuggis in cities, daily wage workers or child workers in dhabas. According to facts, in India, every fourth person is poor.

Two Typical Cases of Poverty

“Poverty means hunger, lack of shelter, clean water, and decent jobs. It’s a major challenge for independent India. True independence will come when our poorest citizens are free from suffering.”

Poverty as Seen by Social Scientists

“Social scientists examine poverty using various indicators. Traditionally, these indicators focused on income and consumption levels. However, today, poverty is also assessed through factors like illiteracy, malnutrition, limited healthcare access, job scarcity, and inadequate sanitation.”

Poverty Line

  • “The poverty line is a way to measure poverty based on income or consumption levels. In India, it’s determined by considering minimum requirements for food, clothing, footwear, fuel, education, and medical needs.
  • These quantities are multiplied by their prices in rupees. For instance, the accepted average calorie requirement is 2400 calories per person per day in rural areas and 2100 calories in urban areas.
  • Based on these calculations, the poverty line for a person in 2011–12 was set at Rs 816 per month for rural areas and Rs 1000 for urban areas. The National Sample Survey Organisation (NSSO) estimates the poverty line periodically through sample surveys.”

Poverty Estimates

“India has witnessed a significant reduction in poverty rates. From around 45% in 1993-94, it declined to 37.2% in 2004–05. By 2011–12, the proportion of people living below the poverty line had further decreased to about 22%.”

Vulnerable Groups

Vulnerable Groups and Poverty:

  • Scheduled Caste and Scheduled Tribe social groups are vulnerable to poverty.
  • Among economic groups, the most vulnerable are rural agricultural labor households and urban casual labor households.
  • A recent study found that except for scheduled tribes, the other three groups (scheduled castes, rural agricultural laborers, and urban casual labor households) experienced a decline in poverty during the 1990s.

Inter-State Disparities

Poverty in Indian States:

  • Bihar and Odisha remain the two poorest states, with poverty ratios of 33.7% and 32.6%, respectively.
  • Urban poverty is high in Odisha, Madhya Pradesh, Bihar, and Uttar Pradesh.
  • Kerala, Maharashtra, Andhra Pradesh, Tamil Nadu, Gujarat, and West Bengal witnessed a decline in poverty.
  • Punjab and Haryana have successfully reduced poverty through high agricultural growth rates.
  • Kerala prioritized human resource development.
  • West Bengal implemented land reform measures to combat poverty.
  • In Andhra Pradesh and Tamil Nadu, public distribution of food grains contributed to improvement.

Global Poverty Scenario

Global Poverty Trends:

China and Southeast Asian countries reduced poverty significantly due to rapid economic growth and investments in human resources.

In Sub-Saharan Africa, poverty declined from 51% (2005) to 41% (2015).

Latin America saw a decrease from 10% (2005) to 4% (2015).

Causes of Poverty

  1. Colonial Legacy: During British rule, India’s economic development remained low due to policies that harmed traditional handicrafts and discouraged industrial growth.
  • The combination of slow growth and population increase led to a very low per capita income growth rate. While the Green Revolution created agricultural job opportunities, they weren’t sufficient to absorb all job seekers.
  • Income Inequality: High poverty rates are linked to significant income disparities. Unequal distribution of land and resources contributes to this issue. Proper policy implementation could have improved the lives of millions of rural poor.
  • Debt Burden: Small farmers borrowed money for agricultural inputs (seeds, fertilizer, pesticides), but poverty prevented them from repaying loans effectively.

Anti-Poverty Measures

Anti-Poverty Measures in India:

  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005: Aims to provide 100 days of wage employment to every rural household, ensuring livelihood security. It also addresses drought, deforestation, and soil erosion. One-third of proposed jobs are reserved for women.
  • Prime Minister Rozgar Yojana (PMRY) (1993): Creates self-employment opportunities for educated unemployed youth in rural areas and small towns.
  • Rural Employment Generation Programme (REGP) (1995): Focuses on self-employment opportunities in rural areas and small towns.
  • Swarnajayanti Gram Swarozgar Yojana (SGSY) (1999): Organizes assisted poor families into self-help groups using a mix of bank credit and government subsidy to lift them above the poverty line.
  • Pradhan Mantri Gramodaya Yojana (PMGY) (2000): Provides additional central assistance to states for basic services like primary health, education, shelter, drinking water, and electrification in rural areas.

The Challenges Ahead

“Poverty in India has decreased, but it remains a significant challenge. To further reduce poverty, we need economic growth, better education, controlled population growth, and empowerment of women and vulnerable sections of society.”

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