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Interview

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Interview study book Business Studies for Class 12 | CBSE (NCERT Solved) | Examination | By RK Singla of RK Singla - ISBN: 9789356122079 (asdasda)

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  • December 29, 2023
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E - 3. POVERTY AS A CHALLENGE
INTRODUCTION
India has the largest single concentration of the poor in the world. This illustrates the seriousness of
the challenge. Poverty means hunger and lack of shelter. It is also a situation in which parents are not
able to send their children to school or a situation where sick people cannot afford treatment. Poverty
also means lack of clean water and sanitation facilities. It also means lack of a regular job at a
minimum decent level. Above all it means living with a sense of helplessness. Poor people are in a
situation in which they are ill-treated at almost every place, in farms, factories, government to offices,
hospitals, railway stations etc. Obviously nobody would like to live in poverty.

POVERTY AS SEEN BY SOCIAL SCIENTIST
Usually the indicators used to work out poverty, relate to the levels of income and consumption. But
now poverty is looked through other social indicators like illiteracy level, lack of general resistance
due to malnutrition, lack to access to healthcare, lack of job opportunities, lack of access to safe
drinking water, sanitation etc. Analysis of poverty based on social exclusion and vulnerability is now
becoming very common.
 Social Exclusion: Is a process through which individuals or groups are prevented from using
facilities, benefits and opportunities that the better-off sections of the society enjoy. Social
exclusion can be both a cause and a consequence of poverty.
 Vulnerability: Vulnerability describes the greater probability of being more adversely affected
than other people when bad times comes for everybody, whether a flood or an earthquake or
simply a fall in the availability of jobs.

POVERTY LINE: A common method used to measure poverty i.e. based on the income or
consumption levels. A person is considered poor if his or her income or consumption level falls below
a given minimum level” necessary to fulfil basic needs. Poverty line may vary with time and place.
Each country uses an imaginary line that is considered appropriate for its existing level of
development and its accepted minimum social norms. While determining the poverty line in India, a
minimum level of food requirement, clothing, footwear, fuel and light, educational and medical
requirement etc. are determined for subsistence. These physical quantities are multiplied by their
prices in rupees. The total equivalent amount is considered as poverty line. Daily minimum nutritional
requirement for a person has been fixed at 2400 calories per person/ per day in rural areas and 2400
calories per person per day in urban areas. The monetary expenditure per capita needed for buying
these calorie requirements in terms of food grains etc. is revised periodically taking into consideration
the rise in prices. On the basis of these calculations, for the year 2000, the poverty line for a person
was fixed at Rs. 328 per month in rural areas and Rs.454 per month in urban areas. In this way in the
year2000, a family of five members living in rural areas and earning less than about Rs 1640 per
month will be below the poverty line. A similar family in the urban areas would need a minimum of Rs
2270 per month to meet then basic requirements.
For making comparisons between developing countries, many international organisations like the
World Bank use a uniform standard for the poverty line: minimum availability of the equivalent of $1
per person per day.
Is present methodology of poverty estimation appropriate?
No, the present methodology of poverty estimation is not appropriate. It is only a quantitative
concept. It captures only a limited part of what poverty really means to the people. It is about a
‘minimum’ subsistence level of living rather than a ‘reasonable’ level of living. Many scholars advocate
that we must broaden the concept into human poverty. The other aspects like education, shelter,
health, job, self-confidence equality etc. should also be included while calculating poverty.




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, POVERTY ESTIMATES: There is substantial decline in poverty ratios in India from about 55 per
cent in 1973 to 36 per cent in 1993. The proportion of people below poverty line further came down
to about 26 per cent in 2000. If the trend continues, people below poverty line may come down to less
than 20 per cent in the next few years. The latest estimates indicate a significant reduction in the
number of poor to about 260 million.

VULNERABLE GROUPS: The portion of people below poverty line is also not same for all social
groups and economic categories in India.
 Social groups which are most vulnerable to poverty are scheduled caste and scheduled tribe
households.
 Among the economic groups, the most vulnerable groups are the rural agricultural labour
households and the urban casual labour households.
 Although the average for people below poverty line for all groups in India is 26, 51 out of 100
people belonging to scheduled tribes are notable to meet their basic needs. Similarity, 50 percent
of causal workers in urban areas are below poverty line. About 50 percent of landless agricultural
workers and 43 percent of scheduled castes are also poor.
 The double disadvantage, of being a landless casual wage labour household in the socially
disadvantaged social groups of the scheduled caste or the scheduled tribe population highlights
the seriousness of the problem.
 Some recent studies have shown that except for the scheduled tribe households, all the other three
groups i.e. scheduled castes, rural agricultural labourers and the urban casual labour households
have seen a decline in poverty in the 1990s.
 Women, elderly people and female infants are systematically denied equal access to resources
available to the family: Therefore women, children (especially the girl child) and old people are
poorest of the poor.

INTER-STATE DISPARITIES: There has been significant decline in poverty since independence. In
1960-61 more than 34% population of the country was living below poverty line which has declined
to 26% in 2000-01. Although there has been reduction in poverty, the success rate of reducing
poverty varies from state to state.
 States with poverty ratio more than the national average: Orissa, Bihar, Assam, Tripura and Uttar
Pradesh are the most poverty ridden states of India. The poverty ration in these states is much
higher than the national average. Orissa and Bihar are the poorest states with poverty ratio of 47
and 43 respectively. Most of these states are facing rural as well as urban poverty.
 States with poverty ratio less than the national average: Recent studies shown that in 20 states
and Union Territories, the poverty ratio is less than the national average. There has been a
significant decline in poverty ratio in Kerala, Andhra Pradesh, Tamil Nadu, Gujarat and West
Bengal.
 States with low poverty ratio: States like Punjab, Haryana, Goa, Himachal Pradesh and Jammu
Kashmir have very low percentage of population living below poverty line.

GLOBAL POVETY SCENARIO
 The proportion of people in developing countries living in extreme economic poverty—defined by
the World Bank as living on less than $1 per day-has fallen form 28 per cent in 1990 to 21 per cent
in 2001. Although there has been a substantial reduction in global poverty, it is marked with great
regional differences.
 Poverty declined substantially in China and South-east Asian countries as a result of rapid
economic growth and massive investments in human resource development
 In the countries of South Asia (India, Pakistan, Sri Lanka, Nepal, Bangladesh, Bhutan) the decline
has not been as rapid.
 In Sub Saharan Africa, poverty in fact rosed from 41 per cent in 1981 to 46 per cent in 2001.

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