Poverty is a significant issue in India, with complex factors contributing to its persistence. Addressing poverty requires understanding its types, causes, and the methods used to measure and combat it.
1. Types of Poverty
a. Absolute Poverty:
- Definition: A condition where individuals or families are unable to meet basic needs for survival, such as food, shelter, and clothing.
- Measurement: Often assessed using poverty lines that define the minimum income required to sustain a basic standard of living.
b. Relative Poverty:
- Definition: A condition where individuals or families have significantly less income or resources compared to others in society, leading to social exclusion and inequality.
- Measurement: Measured by comparing income levels against a standard or median income in the community or country.
c. Multi-Dimensional Poverty:
- Definition: A broader measure that includes various factors beyond income, such as education, health, and living standards.
- Measurement: Assessed using indices like the Multi-Dimensional Poverty Index (MPI), which considers multiple deprivations.
2. Causes of Poverty
a. Economic Causes:
- Unemployment: Lack of job opportunities and income sources.
- Underemployment: Jobs that do not provide sufficient income or stability.
- Economic Inequality: Unequal distribution of wealth and resources.
b. Social Causes:
- Education: Lack of access to quality education and skill development.
- Health: Poor health services and high medical costs.
- Social Discrimination: Marginalization based on caste, gender, or ethnicity.
c. Structural Causes:
- Economic Policies: Ineffective or exclusionary economic policies.
- Agricultural Dependence: Heavy reliance on agriculture with low productivity.
- Infrastructure: Poor infrastructure and lack of access to basic services.
d. Political Causes:
- Corruption: Mismanagement of resources and funds intended for poverty alleviation.
- Political Instability: Impact of political unrest on economic development.
3. Vicious Circle of Poverty
- Definition: A self-perpetuating cycle where poverty leads to conditions that prevent individuals from escaping poverty, thereby maintaining or worsening their situation.
- Cycle:
- Low Income: Leads to insufficient resources for education, health, and investment.
- Poor Health and Education: Results in reduced productivity and earning potential.
- Lack of Investment: Prevents economic growth and job creation.
- Continued Poverty: Reinforces low income and deprivation.
4. Poverty Lines in India: Estimations and Committees
a. Poverty Line:
- Definition: A threshold used to determine the minimum level of income necessary to sustain basic needs.
- Methods: Various methods have been used to estimate poverty lines in India, including consumption-based measures and income-based measures.
b. Key Committees:
- Dandekar-Rath Committee (1971): Estimated poverty based on income levels required to meet basic needs.
- Suresh Tendulkar Committee (2009): Revised the poverty line based on consumption expenditure, accounting for inflation and changing consumption patterns.
- Rangarajan Committee (2014): Proposed a new method for poverty estimation, including a higher poverty line and a broader range of indicators.
5. Poverty in India: Trickle Down Approach, Inclusive Growth, and Multi-Dimensional Poverty Index
a. Trickle Down Approach:
- Definition: An economic theory suggesting that benefits provided to the wealthy or businesses will eventually "trickle down" to the poorer segments of society through job creation and economic growth.
- Criticism: Often criticized for failing to address the needs of the poor directly and for resulting in increased inequality.
b. Inclusive Growth:
- Definition: Economic growth that is broad-based and benefits all sections of society, including the poor and marginalized.
- Focus: Emphasizes equitable distribution of resources, access to education, healthcare, and employment opportunities.
c. Multi-Dimensional Poverty Index (MPI):
- Definition: An index that measures poverty based on multiple deprivations, including education, health, and living standards.
- Components: Includes indicators such as child mortality, access to clean drinking water, and years of schooling.
- Purpose: Provides a more comprehensive understanding of poverty beyond income-based measures.
6. Addressing Poverty in India/Poverty Eradication Schemes
a. Poverty Eradication Schemes:
- Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Provides guaranteed employment to rural households and aims to create durable assets.
- Pradhan Mantri Awas Yojana (PMAY): Aims to provide affordable housing to the urban poor.
- National Rural Health Mission (NRHM): Focuses on improving healthcare infrastructure and services in rural areas.
- Integrated Child Development Services (ICDS): Provides nutrition, education, and healthcare services to children and pregnant women.
- National Social Assistance Programme (NSAP): Provides social security benefits to the elderly, widows, and disabled individuals.
b. Additional Measures:
- Skill Development Programs: Enhance employability through vocational training and education.
- Microfinance and Self-Employment Schemes: Provide financial support for small businesses and self-employment.
- Direct Benefit Transfers (DBT): Cash transfers to improve targeting and efficiency of welfare programs.
Summary Table
|
Aspect
|
Details
|
|
Types of Poverty
|
Absolute, Relative, Multi-Dimensional
|
|
Causes of Poverty
|
Economic, Social, Structural, Political
|
|
Vicious Circle of Poverty
|
Low income leads to poor health and education, maintaining poverty
|
|
Poverty Lines: Estimations and Committees
|
Dandekar-Rath, Tendulkar, Rangarajan committees
|
|
Trickle Down Approach
|
Benefits to the wealthy expected to benefit all, criticized for increasing inequality
|
|
Inclusive Growth
|
Growth that benefits all sections of society, reduces inequality
|
|
Multi-Dimensional Poverty Index (MPI)
|
Measures poverty based on multiple deprivations, provides a comprehensive view
|
|
Poverty Eradication Schemes
|
MGNREGA, PMAY, NRHM, ICDS, NSAP, skill development, microfinance, DBT
|
