1.

Understanding Poverty

● Poverty is often understood as a lack of basic necessities, but it's more than just not
having enough money. It includes deprivation in terms of access to food, clean drinking
water, education, healthcare, and a proper standard of living.
● Multidimensional Nature: Poverty isn't just about income. It also involves social
exclusion, lack of education, poor health, and inadequate access to services, housing,
and security.
● Poverty in India: Poverty in India has different dimensions and affects millions. It is a
significant challenge for policymakers because of the large population, growing
urbanization, and unequal distribution of resources.

2. Types of Poverty

Absolute Poverty

● Absolute poverty means people cannot afford to meet the basic physical requirements of
life—food, water, shelter, and clothing.
● The World Bank uses an international poverty line of $1.90 a day to measure extreme
poverty.
● In India, the poverty line is defined based on a basket of goods, including food, that can
meet basic nutritional needs. If someone’s income is below this level, they are classified
as living in absolute poverty.

Relative Poverty

● Relative poverty refers to people whose income or resources are so low compared to
others in society that they are excluded from participating fully in society.
● It focuses more on inequality and refers to those who live in conditions much worse than
the average population, even though they may have enough to meet basic needs.

3. Poverty Line and Its Measurement

● Measuring Poverty: The poverty line is typically determined by calculating the minimum
income level required for an individual or family to meet essential living needs.
○ Income Level: In India, poverty is primarily measured using income levels,
usually by estimating the minimum expenditure needed to ensure survival.
○ The National Sample Survey Organization (NSSO) is responsible for data
collection related to consumption and income, which helps define the poverty
line.
 ● Consumption Levels: The poverty line is derived from the consumption patterns of
people, determining the cost of essential items such as food, clothing, and basic
services.
● Threshold Levels:
○ For rural areas, the poverty line is based more on food consumption.
○ For urban areas, the poverty line also includes other living costs like shelter,
transport, and health services.
● Challenges: The poverty line often doesn't capture the full complexity of poverty, such
as social exclusion or vulnerability to shocks (like natural disasters or economic
downturns).

4. Poverty in India

Causes of Poverty in India

1. Historical Factors:
○ During British colonial rule, the Indian economy was heavily exploited, and
resources were drained from India.
○ This led to underdevelopment and poor infrastructure, which have continued into
post-independence times.
2. Economic Factors:
○ The unequal distribution of land, resources, and wealth contributes to persistent
poverty.
○ Many people are still dependent on agriculture, which has low returns, and don’t
have access to better-paying jobs in other sectors.
3. Social Factors:
○ Caste System: Discrimination based on caste has left many marginalized
communities, such as Dalits and Adivasis, in poverty.
○ Gender Inequality: Women in rural areas, in particular, have less access to
education, healthcare, and employment opportunities, which contributes to
poverty.
○ Geographical Factors: Poverty is higher in remote, rural areas and regions with
less economic development.

Impact of Poverty

● Health: People in poverty often suffer from malnutrition and diseases due to inadequate
access to healthcare and clean water. Poor health further reduces their capacity to work,
leading to a vicious cycle of poverty.
● Education: Lack of access to education limits job opportunities, leading to low wages
and reinforcing poverty across generations.
● Social Inequality: Poverty can lead to social exclusion, where certain groups are
marginalized and lack access to social, economic, and political power.
5. Global Poverty

● Global Poverty Levels: According to the World Bank, around 10% of the world’s
population lives on less than $1.90 a day.
● Regional Variations: While some countries have made significant strides in reducing
poverty, others, especially in sub-Saharan Africa and parts of South Asia (including
India), still struggle with high poverty rates.
● India’s Poverty: India, while having made significant progress, still has a large
proportion of its population living in poverty, mainly due to inequality, slow growth in
employment opportunities, and limited access to quality services.
● International Cooperation: Reducing global poverty requires collaboration among
governments, international organizations (like the UN), NGOs, and the private sector to
provide better access to education, healthcare, and economic opportunities.

6. Poverty Alleviation Programmes in India

India has initiated several measures to reduce poverty, including:

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

○ Provides 100 days of guaranteed wage employment to rural households, thus
ensuring a source of income and reducing poverty.
● Public Distribution System (PDS):
○ Distributes essential food items (like rice, wheat, sugar) at subsidized rates to the
poor. However, PDS has faced challenges such as inefficiency and leakage of
food grains.
● Pradhan Mantri Awas Yojana (PMAY):
○ Aims to provide affordable housing for the urban and rural poor. It helps people
living in slums or rural areas build their own homes.
● National Food Security Act (NFSA):
○ Ensures food security by providing subsidized food to around two-thirds of India's
population.
● Self-Help Groups (SHGs):
○ Aims at promoting women’s participation in economic activities through small
savings and credit programs. SHGs help empower women economically and
socially.
● Swachh Bharat Abhiyan:
○ Aims to improve sanitation, reduce open defecation, and improve hygiene
conditions for rural and urban poor.
7. Measures to Reduce Poverty

To reduce poverty, India and other countries must focus on:

1. Economic Growth:
○ Promoting economic growth through industrialization, infrastructure development,
and support for sectors like agriculture, manufacturing, and services can help
generate jobs and improve incomes.
2. Education:
○ Ensuring access to education, especially for disadvantaged groups, will help
break the cycle of poverty. Education empowers individuals to get better jobs,
earn higher wages, and improve their standard of living.
3. Health Care:
○ Access to affordable health care helps poor people recover from illness and
diseases without the burden of expensive medical bills. Public health programs
should target the poor to reduce mortality rates.
4. Social Security Programs:
○ Social security programs like pensions, unemployment benefits, and healthcare
insurance help reduce the vulnerability of the poor and provide them with a safety
net.
5. Inclusive Growth:
○ Growth should benefit all sections of society. Reducing inequality ensures that
the poor can access opportunities and improve their quality of life.

8. Conclusion

● Poverty is a Complex Challenge: Reducing poverty is a multi-dimensional challenge

that requires comprehensive and inclusive development strategies.
● Government and Policy Role: Effective policies, programs, and schemes are crucial in
addressing the root causes of poverty and ensuring sustainable economic and social
development.
● Global Cooperation: As poverty is a global issue, cooperation between countries,
international organizations, and NGOs is necessary to tackle it at a global scale.