CHAPTER 3 Poverty as a Challenge

Q1. Describe how the poverty line is estimated in India?

Ans: In India, the poverty line is estimated based on the income or consumption needed to meet basic needs like food, clothing, and shelter. Food requirements are calculated in calories, with rural areas needing 2400 calories per person per day and urban areas 2100 calories. The cost to meet these needs is determined and adjusted for inflation.

For 2011-12, the poverty line was set at:

• Rs 816 per person per month in rural areas
• Rs 1000 per person per month in urban areas

The poverty line is reviewed every five years through surveys by the National Sample Survey Organisation (NSSO).

Q2. Do you think that present methodology of poverty estimation is appropriate?

Ans: The current methodology for estimating poverty primarily focuses on minimum subsistence levels rather than a reasonable standard of living. A person is deemed poor if their income or consumption falls below a certain threshold necessary to meet basic needs.

While it is crucial to address minimum income levels, the government should also consider broader aspects of human poverty, including:

• Access to food
• Illiteracy
• Lack of job opportunities
• Inadequate healthcare and sanitation
• Discrimination based on caste and gender

Q3. Describe poverty trends in India since 1973?

Ans: Overall decline in poverty: Since 1973, India has experienced a significant reduction in poverty levels:

• From about 55% in 1973 to 36% in 1993. Further reduced to around 26% in 2000.
• All states have seen a decline in poverty since the early 1970s, but the rate of reduction varies. Currently, twenty states and union territories have poverty ratios below the national average of 26%.
• Odisha and Bihar remain the poorest states, with poverty ratios of 47% and 43% respectively.
• States like Kerala, Gujarat, Punjab, and Jammu and Kashmir have shown notable reductions in poverty rates.

Q4. Discuss the major reasons for poverty in India?

Ans: Major reasons for poverty in India:

• Colonial Rule: India went through a long phase of low economic development under the British colonial administration. The policies of the colonial government ruined traditional handicrafts and discouraged the development of industries like textiles.
• Low economic growth and high population growth: The Indian administration’s failure on the two fronts − promotion of economic growth and population control perpetuated the cycle of poverty.
• Rural Poverty: The effects of agricultural and rural development were limited to only certain parts of the country. The presence of huge income inequalities is a major reason for the high poverty rates in rural areas.
• Urban Poverty: The jobs created by the industrial sector haven’t been enough for everyone looking for work. Because they can’t find good jobs in cities, many people end up working as rickshaw pullers, vendors, construction workers, or domestic servants. 

Q5. Identify the social and economic groups which are most vulnerable to poverty in India.

Ans: The social groups most vulnerable to poverty in India include:

• Scheduled Castes households
• Scheduled Tribes households

The economic groups at risk are:

• Rural agricultural labour households
• Urban casual labour households

Q6. Give an account of interstate disparities of poverty in India.

Ans: The proportion of poor people varies significantly across Indian states. Key points include:

• The average Head Count Ratio (HCR) in India was 21.9% in 2011-12.
• States like Bihar and Odisha are among the poorest, with poverty ratios of 33.7% and 32.6%, respectively.
• In contrast, states such as Kerala, Maharashtra, and Tamil Nadu have seen significant reductions in poverty.
• These states have achieved this through a combination of agricultural growth and human capital development.
• States like Punjab and Haryana have also successfully reduced poverty, primarily through high agricultural growth rates.

Q7. Describe global poverty trends.

Ans The success rate of reducing poverty varies significantly across different regions, leading to disparities in poverty levels. In India:

• Odisha, Bihar, and Madhya Pradesh are the three poorest states, with poverty rates of 47%, 42%, and 37% respectively.
• Conversely, Jammu and Kashmir, Punjab, and Himachal Pradesh are among the states with the lowest poverty levels.

Globally, there has been a notable decline in poverty:

• China and South-East Asia, rapid economic growth and significant investments in human resources have led to a reduction in poverty.
• In Latin America, the poverty rate has remained relatively stable.
• In sub-Saharan Africa, however, poverty has increased, rising from 41% in 1981 to 46% in 2001.
• Poverty has also emerged in some former socialist countries, such as Russia, where it was previously negligible.

Q8. Describe the current government strategy of poverty alleviation.

MNREGAAns: The removal of poverty is a key goal of India’s development strategy. Some notable targeted anti-poverty programmes include:

• Prime Minister’s Rozgar Yojana (PMRY): Launched in 1993, this programme aims to create self-employment opportunities for educated unemployed youth in rural areas and small towns.
• Pradhan Mantri Gramodaya Yojana (PMGY): Initiated in 2000, it focuses on improving basic services such as primary health, education, rural housing, drinking water, and electrification.
• Rural Employment Generation Programme (REGP): Started in 1995, this programme aims to create self-employment opportunities in rural and urban areas.
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Enacted in September 2005, it guarantees 100 days of employment per year to every rural household in 200 districts, with plans to expand to 600 districts. One-third of the jobs are reserved for women.

Q9. Answer the following questions briefly

(i) What do you understand by human poverty?

(ii) Who are the poorest of the poor?

(iii) What are the main features of the National Rural Employment Guarantee Act 2005?

Ans: (i) Human poverty extends beyond mere lack of income. It encompasses the denial of essential political, social, and economic opportunities necessary for a decent standard of living. 

• Illiteracy
• Lack of job opportunities
• Inadequate access to healthcare and sanitation
• Caste and gender discrimination

(ii) The poorest of the poor are primarily:

• Women
• Female infants
• Older individuals

(iii) Main features of the National Rural Employment Guarantee Act 2005 include:

• Guarantees 100 days of employment per year for every household
• Initially covered 200 districts, later expanded to 600
• One-third of jobs reserved for women