Notes of chapter "Poverty as a Challenge"

By: Ms. TRISHU

Introduction:

● Poverty is a significant global challenge affecting millions of people.

● Poverty is not just about the lack of income; it encompasses various dimensions
of deprivation.

Defining Poverty:

● Poverty can be defined as a situation in which an individual or a community lacks

● the financial resources and essential goods and services for a minimum standard
of living.

Measurement of Poverty:

● In India, poverty is commonly measured using the Poverty Line, which is the
minimum income required to meet basic needs.
● The poverty line varies for rural and urban areas and is regularly updated.

Causes of Poverty:

1. Social Factors:
○ Discrimination based on caste, gender, or ethnicity can lead to poverty.
○ Lack of access to quality education and healthcare can perpetuate
poverty.
2. Economic Factors:
○ Unequal distribution of resources and wealth can result in poverty.
 ○ Lack of job opportunities, especially in rural areas, is a significant factor.
3. Unemployment and Underemployment:
○ High levels of unemployment and underemployment contribute to poverty.

Measures to Reduce Poverty:

1. Economic Growth: Encouraging economic growth can help create jobs and
reduce poverty.
2. Social Welfare Programs: Implementing social welfare schemes like the National
Rural Employment Guarantee Act (NREGA) and mid-day meal programs can
alleviate poverty.
3. Education and Healthcare: Improving access to quality education and healthcare
can empower individuals and families to escape poverty.
4. Land Reforms: Implementing land reforms to provide land to landless and
marginalized communities can be effective.

Global Poverty Scenario:

● A large portion of the world's population lives in poverty, particularly in developing

countries.

Challenges in Measuring Poverty:

● Measuring poverty is complex and subject to debate, as it doesn't consider all

aspects of well-being.

Sustainable Development Goals (SDGs):

● Goal 1 of the SDGs aims to end poverty in all its forms by 2030.
Conclusion:

● Poverty is a complex issue with multiple dimensions.

● Combating poverty requires a multi-pronged approach, focusing on economic
growth, social welfare, and equitable development.

QUESTION AND ANSWER

Ques 1. Describe how the poverty line is estimated in India?

Answer:

A person is considered poor if their income or consumption level falls below a given “minimum level”
necessary to fulfil basic needs. This minimum level is called the poverty line. In India, the poverty
line is estimated by multiplying the prices of physical quantities like food, clothing, footwear, fuel,
light, education, etc., in rupees. The numbers involved in determining the poverty line vary for
different years. Also, the poverty line for rural areas is different from that of urban areas because the
work, lifestyle and expenses are different for rural and urban areas.

Question-2

Do you think that the present methodology of poverty estimation is appropriate?

Solution:

● No, the present methodology of poverty estimation is not appropriate because it

takes into account only the basic needs of food, clothing, fuel etc.
 ● But the quality of these basic necessities is the lowest quality available. The
amount which is fixed as the poverty line does not include the margin for the
constant price fluctuations.
● The poverty line should include some corrections for inflation and market
fluctuations.

Ques 4. Discuss the major reasons for poverty in India.

Answer:

The major reasons for poverty in the country are

● The low level of economic development under British colonial rule. The policies of the
colonial government ruined traditional handicrafts and discouraged the development of
industries like

Textiles

● The spread of the Green Revolution created many job opportunities for the people of the
country, yet they were not sufficient in comparison to the number of job seekers.
● The unequal distribution of land and resources is another important factor for poverty in
India.
● In order to fulfil social obligations and religious ceremonies, the poor end up spending a lot,
which results in poverty.
● Inequality in the income of the people is also a major reason for poverty.

Question-5
Identify the social and economic groups which are most vulnerable to poverty in
India.

●
Solution:
Social groups, which are most vulnerable to poverty, are scheduled caste
and scheduled tribe households.
● Similarly, among the economic groups, the most vulnerable groups are the
rural agricultural labour households and urban casual labour households.
Question-7
Describe global poverty trends.
Solution:
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 from 28 percent
in 1990 to 21 percent 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
Southeast Asian countries as a result of rapid economic growth and massive
investments in human resource development. The number of poor people in
China has come down from 606 million in 1981 to 212 million in 2001.
● In the countries of South Asia (India, Pakistan, Sri Lanka, Nepal, Bangladesh,
Bhutan) the decline has not been as rapid. Despite the decline in the percentage
of the poor, the number of poor has declined marginally from 475 million in 1981
to 428 million in 2001.
● Because of different poverty line definition, poverty in India is also shown higher
than the national estimates.
● In Sub-Saharan Africa, poverty in fact rose from 41 percent in 1981 to 46 percent
in 2001
● Poverty has also resurfaced in some of the former socialist countries like Russia,
where officially it was nonexistent earlier. The proportion of people living under
poverty in different countries is defined by the international poverty line (means
population below $1 a day).

ques 8. Describe current government strategy of poverty alleviation?

● Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): This

program provides rural households with a legal guarantee of 100 days of wage
employment per year, helping to create income opportunities for the rural poor.
● Pradhan Mantri Awaas Yojana (PMAY): This scheme aimed to provide housing
for all by 2022, with a focus on affordable housing for economically weaker
sections and low-income groups.
● Pradhan Mantri Jan Dhan Yojana (PMJDY): This financial inclusion program
aimed to provide access to banking and financial services to all households,
particularly those in underserved areas.
 ● National Rural Livelihood Mission (NRLM): NRLM focused on promoting
self-employment and organizing rural poor into self-help groups for skill
development and income generation.
● Direct Benefit Transfer (DBT): The government expanded the use of DBT to
transfer subsidies and benefits directly to beneficiaries' bank accounts, reducing
leakages and ensuring that benefits reach the intended recipients.
● National Food Security Act (NFSA): This act aimed to provide subsidized food
grains to a large portion of India's population, ensuring food security for those in
need.

9. Answer the following questions briefly.

(i) What do you understand by human poverty?

Answer:Human poverty is a term that means that poverty is not just limited to the economic status
of the people but rather spreads in various other sectors, which include lack of education, negligence
of the health care system, discrimination and disparity. Abolishing poverty should not be the only aim
of the authorities, but abolishing human poverty must be the aim.

(ii) Who are the poorest of the poor?

Answer:

Women, female infants and the elderly are considered the poorest of the poor. This is because, in a
poor household, these people suffer the most and are deprived of the maximum necessities in life.

(iii) What are the main features of the National Rural Employment Guarantee Act 2005?

Answer:

The main features of the National Rural Employment Act 2005 are as follows:
 1. To provide 100 days of wage employment to every household to ensure livelihood security in
rural areas.
2. Sustainable development to address the cause of drought, deforestation and soil erosion.
3. One-third of the proposed jobs under this scheme have been reserved for women.

WORKSHEET 1:

1.What is the primary method for measuring poverty in India?

a) Income-based

b) Education level

c) Healthcare access

d) Occupation

2. The poverty line in India is determined based on:

a) A fixed amount of money

b) Regional variations in income and consumption

c) A person's age

d) Number of dependents

3. Which of the following is NOT a cause of poverty in India?

a) Unemployment

b) Lack of education

C) Increasing life expectancy

d) Social inequalities

4.Rural poverty in India is often linked to:

a) Industrial growth

b) Landlessness and land reforms

c) High levels of education

d) Access to healthcare

5. What is the most significant social

consequence of poverty?

a) Increase in life expectancy

b) Improved access to education

c) Social unrest and crime

d) Strong community bonds

WORKSHEET 2.

Worksheet: Poverty as a Challenge

Name: ________________________ Class: ___________ Date: ___________

Instructions:

Answer the following questions based on your knowledge of the chapter "Poverty as a
Challenge."

1. Define poverty. What are the different ways in which poverty is measured?
2. Explain the concept of the poverty line. How is it determined in India?
3. What are the main reasons for poverty in India? Provide at least three reasons
and briefly explain each.
4. Give an example of a state in India that has made significant progress in
reducing poverty. What factors contributed to its success?