Poverty as a Challenge Class 9 Economics Notes

In the Class 9 SST chapter Poverty as a Challenge, poverty is described as one of the most important issues India has faced after the country gained independence from British rule. It further explores the idea of poverty beyond its traditional definition of lack of funds.

It compiles economic deprivation together with denial of essential services such as food, clean water, healthcare, education, and shelter. As per 2011-12 data, about 22% of India’s population (roughly 270 million people) lived below the poverty line.

Poverty is further considered a social phenomenon, and social scientists explore the issue of poverty in relation to factors such as the lack of education (illiteracy), lack of nourishment (malnutrition), unemployment, and the lack of access to sanitized water.

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Poverty as a Challenge Class 9 - Introduction & Overview

This chapter has a lot to offer in understanding multidimensional aspects of poverty, its causes, patterns and trends in India and the world, and government efforts to curtail the same. It builds on the thought of poverty, moving beyond the income levels to the more complex concept of ‘human poverty’.

Introduction to Poverty

Poverty, the lack of basic needs and a good life, has been one of the major challenges of independent India. It is the inability to access resources to meet the basic necessities of life. 

Poverty means lack of food, shelter, clean drinking water, sanitation, and employment. Most importantly, it leads to a feeling of helplessness.

Definitions of Poverty Types

Poverty is categorized mainly in two types–absolute poverty and relative poverty.

• Absolute Poverty: This is the lowest and most severe type of poverty, where a person is unable to meet the most basic needs of life, such as food, shelter, and clothing. It can be measured with the poverty line.
• Relative Poverty: This is the inability of a person to meet the basic needs fully in a defined society where one is able to afford the most basic needs. It is measured with the help of Gini Coefficient and Lorenz Curve. Factors such as unemployment, laziness, poor health, and discrimination in the job market tend to cause this.

Poverty as Seen by Social Scientists

Social scientists have traditionally used the level of income and consumption to define poverty. They have emphasised the following social aspects of poverty as well: 

• Illiteracy level
• Lack of general resistance due to malnutrition
• Lack of access to healthcare
• Lack of job opportunities
• Lack of access to safe drinking water and sanitation

Poverty Line - Definition & Criteria

The poverty line is used to measure poverty in terms of income or level of consumption. A person is deemed to be poor if the income or consumption falls below a certain level which is necessary for basic needs. 

The poverty line changes according to regions and time. Each nation establishes a line based on its level of development and accepted social norms.

In India, the poverty line is based on the following criteria:

• A minimum level of dietary consumption, apparel, education, and health care requirements is required. These needs are multiplied by their prices in rupees.
• Meeting calorie consumption is fundamental in these calculations. The accepted average calorie requirement is 2400 calories per person per day in rural areas and 2100 calories in urban areas. 
• With these assumptions, in 2011-12 the poverty line was set to 816 rupees a month in rural and 1000 in urban areas. In the year 2000, it was 328 and 454 for rural and urban, respectively. 
• Estimations of the poverty line are done every five years through sample surveys done by the National Sample Survey Organisation (NSSO). The first official poverty lines in rural and urban areas were introduced in 1979 by the Y. K. Alagh Committee.

Poverty Trends in India (1993-94 to 2011-12)

The poverty ratio has considerably decreased in India, from approximately 45 percent in 1993-94 to 37.2 percent in 2004-05. Further decreased to around 22 percent in 2011-12.

Although the proportion of the population living below the poverty line has decreased for over two decades, the number of poor declined from 407 million in 2004-05 to 270 million in 2011-12.

Vulnerable Groups & Inter-State Disparities

India's most at risk social groups for poverty are Scheduled Castes (SCs) and Scheduled Tribes (STs). Rural agricultural labor households and urban casual labor households are the most at risk from economic groups.

The term "double disadvantage" describes the situation of being socially disadvantaged (SCs or STs) and economically vulnerable (a landless casual wage laborer).

All groups except for Scheduled Tribes (SCs, rural agricultural laborers, and urban casual labor households) experienced declining poverty rates in the 1990s. Women and girls, along with elderly men, are often considered as the most vulnerable within these groups.

Inter-State Disparities

The distribution of poverty affects different states in India in unique ways.

Bihar and Odisha remained the two poorest states in the country, with poverty ratios of 33.7% and 32.6% respectively. Urban poverty is also a concern in Odisha, Madhya Pradesh, Bihar, and Uttar Pradesh. 

The list of states which have seen a decline in poverty includes more southern states like Kerala, Maharashtra, Andhra Pradesh, Tamil Nadu, and also Gujarat and West Bengal. 

• Punjab and Haryana reduced poverty through high agricultural growth rates. 
• Kerala concentrated on human capital enhancement. 
• West Bengal adopted land reform policies. 
• The strategic public distribution of food grains in Andhra Pradesh and Tamil Nadu also contributed to their growth. 

Global Poverty Scenario

Although global poverty has reduced, regional differences are significant.

The Southeast Asian and China countries had a massive decline in poverty, due to rapid economic growth and extensive human capital investment. China managed to decrease its poverty population from 606 million in 1981 to 212 million in 2001. 

Sub-Saharan Africa has seen an increase in poverty from 41% in 1981 to 46% in 2000/2001. Although from 2015 onwards, there has been a notable decrease from 51% in 2005 to 40.2% in 2018.

The United Nations called for the Millennium Development Goals, which include reducing the number of people living on less than a dollar a day to half of 1990 figures by 2015.

Causes of Poverty in India

Here are some reasons why poverty prevails in India according to the Class 9 NCERT textbook.

• Low level of economic development under British colonial administration: During the colonial era, the British policies destroyed traditional handicrafts and discouraged industrial development. This led to a scarcity of jobs, low income growth, and a lack of economic opportunities.
• High growth rate of population: This factor, combined with low economic growth, made the growth rate of per capita income very low, increasing the burden on resources and lowering the poverty line.
• Income inequalities and unequal distribution of resources: A shortage of land resources, with proper implementation of land reforms, has been ineffective in many states and has also greatly contributed to the problem.
• Lack of job opportunities: Due to the lack of adequate employment opportunities, many people found themselves stuck in low-paying, unregulated jobs in a slum-like urban environment. While irrigation and the Green Revolution created some jobs in agriculture, it wasn't nearly enough to employ the growing number of seekers.

Government Anti-Poverty Measures

The following are the current anti-poverty strategies.

Promotion of economic growth: Since the 1980s India has seen faster growth, which has significantly enabled poverty reduction, showing a strong link between economic growth and a reduction in poverty. 

Targeted anti-poverty programs: A number of schemes have been created directly or indirectly to fight poverty. Some of the key programmes include:

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005: Aims to provide 100 days of wage employment to every household in rural areas to ensure livelihood security. One-third of jobs are reserved for women. It also aims at sustainable development to address issues like drought and deforestation. State and Central Employment Guarantee Funds are established.
• Prime Minister Rozgar Yojana (PMRY), 1993: Aims to create self-employment for educated unemployed youth in rural areas and small towns by providing them with the opportunity to start small businesses and industries.
• Rural Employment Generation Programme (REGP), 1995: Aims to achieve self-employment in rural areas and small towns with the provision of 25 lakh jobs under the Tenth Five-Year Plan. 
• Swarnajayanti Gram Swarozgar Yojana (SGSY), 1999: Aims to support poor families to rise above the poverty line by integrating them into self-help groups (SHGs) and providing a combination of bank credit and government subsidy. 
• Pradhan Mantri Gramodaya Yojana (PMGY), 2000: Gives additional central financial assistance to states for providing primary health services, education, rural housing, drinking water, and rural electrification. 
• Public Distribution System (PDS): A major poverty alleviation and food management programme which distributes food grains, allocates, issues ration cards, identifies BPL families, and manages food scarcity. Released again as the Targeted Public Distribution System (TPDS) in 1997, focusing on serving those below the poverty line.

Limitations of Poverty Alleviation Programmes

Improper identification and targeting: Programs may fail to estimate and accurately identify the number of poor families or to exclude overqualified beneficiaries.

• Overlapping schemes: Different but similar schemes put in place by the same government can confuse the poor and the relevant authority and affect the efficient and effective delivery of benefits.
• Overpopulation: A higher population puts a burden on the limited resources available; hence, the effectiveness of the programme reduces.
• Corruption: Corruption at various implementation levels is a significant challenge.

Conclusion - Poverty as Human Poverty

Poverty in India has declined but remains a major challenge. Moving forward, the focus must be not only on income poverty but also on human poverty-ensuring access to education, healthcare, dignity, and equal opportunities for all.

FAQs

Q1. What is the poverty line? 

Ans. The poverty line is determined by measuring income and consumption levels. It is the amount of income, consumption expenditure, and basic needs of food, clothing, fuel and light, and educational and medical spending that is required per capita. 

Q2. How is the poverty line estimated in India? 

Ans. India sets its poverty line by estimating the physical amounts of the minimum needs (food, clothing, fuel, education, medical needs) with current prevailing rates in rupees. The food consumption is rationed to 2400 calories per person per day in rural settings and 2100 calories for urban residents. In 2011-12, the poverty line for rural areas was set to ₹816 and ₹1000 for urban areas. Although these estimates are static, they tend to be revised on a periodic basis (usually within a five year period) based on sample surveys conducted by the NSSO.