NCERT Class 9 Economics Chapter 3: Poverty as Challenge Youtube Lecture Handouts

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NCERT Class 9 Economics

Chapter 3: Poverty as Challenge

Facts – “Roti, 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 2012 – 21.9% 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 – Rs. 328/month (rural) & Rs. 454/moth (urban)

  • In 2000, family of 5 income – Rs. 1640/moth (rural) & Rs.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

Image of Population on Less Than $1.25 Per Day In %

Image of Population on Less Than $1.25 Per Day in %

Image of Population on Less Than $1.25 Per Day In %

  • Landlessness

  • Unemployment

  • Size of families

  • Illiteracy

  • Poor health/malnutrition

  • Child labor

  • Helplessness

Poverty in Vulnerable Groups – 2000

Image of Poverty In Vulnerable Groups - 2000

Image of Poverty in Vulnerable Groups - 2000

Image of 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

Image of Percent Poverty Estimates 1993 - 2012

Image of Percent Poverty Estimates 1993 - 2012

Image of Percent Poverty Estimates 1993 - 2012

Image of Poverty Cycle

Image of Poverty Cycle

Image of 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
Image of BPL AS% of Total Population

BPL AS% of Total Population

State

2004-05

2011-12

Worst 5

Chhattisgarh

49.4

39.93

Jharkhand

45.3

36.96

Manipur

37.9

36.89

Arunachal Pradesh

31.4

34.67

Bihar

54.4

33.74

BEST 5

Goa

24.9

5.09

Kerala

19.6

7.05

Himachal Pradesh

22.9

8.06

Punjab

20.9

8.26

Pondicherry

14.2

9.69

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)

Image of People Living on $1/day (1980-2001)

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

Image of 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