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NCERT Class 9 Economics

Chapter 3: Poverty as Challenge

Facts – Roti, Kapda aur Makan

• O e third of world’s poor i I dia
• 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 – .9% of I dia’s Populatio is BPL y 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

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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)

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% population on less than $1.25 per day

Issues related to Poverty

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

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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

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Causes of Poverty
• British Rule
• Rural economy
• Income inequality
• Heavy pressure on population
• Unemployment and underemployment
• Lack of industrialization
• Social factors
• I dia’s e o o i poli y
• Neo liberal policies and effects
• Less job opportunities
• Unequal distribution of assets
• Lack of land resources

Poverty Cycle

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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

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

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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 foodgrain are provided free of
cost to the states

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• 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

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