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NCERT Class 9 Economics Chapter 3: Poverty as a Challenge

NCERT Class 9 Economics

Chapter 3: Poverty as Challenge

Facts – β€œRoti, Kapda Aur Makan”

  • One third of world՚s poor in India
  • 1 in 11 child are working
  • Half of child deaths under 5 are due to malnutrition
  • UNICEF – 46 % of all children below 3 years are too small, 47 % are underweight & 16 % are wasted
  • Poorest pockets - Rajasthan, MP, UP, Bihar, Jharkhand, Orissa, Chhattisgarh and West Bengal
  • In of India՚s Population is BPL (by MDGs)
  • One in every four is poor
  • India as single largest concentration of poor in world
  • Global Wealth Report 2016 by Credit Suisse Research Institute: India is the second most unequal country in world with top 1 % with 60 % total wealth

Definition

  • No one definition - No Car in USA (Poverty) ; Car in India (Luxury)
  • Based on calories – 2400/day (Rural) & 2100/day (Urban) – Rural have more physical work
  • In 2000, by income – β‚Ή 328/month (rural) & β‚Ή 454/moth (urban)
  • In 2000, family of 5 income – β‚Ή 1640/moth (rural) & β‚Ή 2,270/month (urban)
  • These conducted by National Sample Survey Organisation (NSSO)

Definition

  • World Bank: International poverty line as purchasing power parity at $ 1.25 per day
  • 1971 – Dandekar & Rath – based on calories consumption
  • 2001 – Alkire - Multi-dimensional Poverty Index (MPI) - 6.25 % weight to assets owned by a person & 33 % weight on education years spent in school
  • Determined by income level & consumption
  • Now focus on social indicators – like illiteracy
  • Further on social exclusion – where poor is excluded from social equality (it is both cause & consequence)

% Population on Less Than $ 1.25 Per Day

Population

Issues Related to Poverty

  • Landlessness
  • Unemployment
  • Size of families
  • Illiteracy
  • Poor health/malnutrition
  • Child labor
  • Helplessness

Poverty in Vulnerable Groups – 2000

Poverty in Vulnerable Groups - 2000
  • Hunger
  • Lack of Shelter
  • Lack of resource to spend on education
  • Lack of clean water
  • Lack of sanitation
  • Ill-Treated
  • Mahatma Gandhi: India would be truly independent only when the poorest of its people become free of human suffering
  • Vulnerability – greater probability of certain community to remain poor in coming years

Causes of Poverty

  • British Rule
  • Rural economy
  • Income inequality
  • Heavy pressure on population
  • Unemployment and underemployment
  • Lack of industrialization
  • Social factors
  • India՚s economic policy
  • Neo liberal policies and effects
  • Less job opportunities
  • Unequal distribution of assets
  • Lack of land resources

Poverty Cycle

Percent Poverty Estimates 1993 - 2012
Poverty Cycle

Poverty – State-Wise (2004 - 05 to 2011 - 12)

  • Odisha & Bihar – Sharpest drop
  • Odisha – 57 % in 2004 - 05 to 32.6 % in 2011 - 12
  • Among BIMARU states – Only Rajasthan better than national average
  • Rural – 326 million to 217 million
  • Urban – 81 million to 53 million
    • Punjab & Haryana – by agriculture
    • Kerala in HRD
    • West Bengal – Land reforms
    • Andhra Pradesh & Tamil Nadu - PDS
Image of BPL as % of Total Population
BPL AS % of Total Population
State2004 - 052011 - 12
Worst 5
Chhattisgarh49.439.93
Jharkhand45.336.96
Manipur37.936.89
Arunachal Pradesh31.434.67
Bihar54.433.74
BEST 5
Goa24.95.09
Kerala19.67.05
Himachal Pradesh22.98.06
Punjab20.98.26
Pondicherry14.29.69

Poverty – Global Scenario

  • Decrease from 28 % in 1990 to 21 % in 2001
  • in China & SE Asia – Economic growth & investment in HRD
  • In China – 606 million (1991) to 212 (2001)
  • Sub-Saharan Africa - from 41 % in 1981 to 46 % in 2001
  • MDGs - people on les than $ 1 to half from 1990 to 2015

People Living on $ 1/Day (1980 – 2001)

People Living on $ 1/Day (1980 - 2001)

Anti-Poverty Measures

  • Promotion of Economic Growth – Opportunities for investment in human development, better education, better agriculture
  • Targeted Anti-Poverty Programs
  • National Rural Employment Guarantee Act (NREGA) 2005: Provides 100 days assured employment every year to every rural household in 200 districts. Later, extended to 600 districts with 1 ⁄ 3rd women. If no employment in 15 days – get daily unemployment allowance
  • National Food for Work Program (NFWP) , 2004: 150 most backward districts & is for rural poor for wage employment and manual unskilled work. 100 % centrally sponsored scheme and food grain are provided free of cost to the states
  • Prime Minister Rozgar Yozana (PMRY) , 1993: Create self-employment opportunities for educated unemployed youth in rural areas and small towns
  • Rural Employment Generation Program (REGP) , 1995: Create self-employment opportunities in rural areas and small towns with 25 lakh new jobs
  • Swarnajayanti Gram Swarozgar Yojana (SGSY) , 1999: Bring assisted poor families above the poverty line by organizing them into self-help groups through a mix of bank credit and government subsidy.
  • Pradhan Mantri Gramodaya Yozana (PMGY) , 2000: Assistance to states for basic services such as primary health, primary education, rural shelter, rural drinking water and rural electrification.
  • Antyodaya Anna Yozana (AAY)

Challenges Ahead

  • Providing health care
  • Education
  • Job
  • Security for all
  • Gender equality
  • Dignity for Poor

✍ Manishika