CHAPTER-4

POVERTY

1. Answer the following questions in a sentence each:  1 mark

1.  Define poverty.

 Poverty is a situation where people are unable to get food, clothing, housing, health facilities and education.

2.  Write the important features of poorest households.

The poorest households do not have huts and square meals a day. They suffer from starvation, illiteracy and skills.

3.  What makes the poor physically weak?

Malnutrition and poor health make the poor physically weak.

4.  What is poverty line?

Poverty line refers to the line that separates people into poor and non-poor.

In other words it refers to the level of income that makes it possible for a person to pay for basic food, clothing and shelter.  The planning commission of India estimated poverty line in terms of nutrition.   2400 calories has been set for a rural person and 2100 calories for a person living in urban area per day.

5.  What is Head count ratio?

The number of poor estimated as the proportion of people below the poverty line is known as head count ratio.

                                             The number of people living below poverty line

 Head count ratio   =        ----------------------------------------------------------------  

                                               Total population

6.  Expand MGNREGP.

Mahatma Gandhi National Rural employment Guarantee Programme.

7.  What programmes has the government adopted to help the elderly people and poor and destitute women?

National Social assistance programme by the central government gives pension to elderly people, Destitute women and widows.(Sandhya Suraksha Yojana in Karnataka)

II. Answer the following questions in four sentences each:  2 marks.

1.  What are the Types of Poverty?

 There are two kinds of poverty. They are:

1. Absolute Poverty:  refers to a situation where the consumption expenditure of an individual is insufficient to maintain a minimum acceptable level of living (Minimum cereals, pulses, milk etc.) as per the national standard.

2. Relative poverty: The section of people who have the lowest income in a country is said to be relatively poor.

2.  How are poor Categorized?

Poor people can be categorized into

1.  Chronic Poor:  are those people who are poor for a long duration.  Ex.  Casual workers and unemployed people.

2. Transient Poor: includes

a)  Churning poor who frequently move in and out of poverty.  Ex.  Small farmers and seasonal workers.

b)  Occasional poor:  are those people who are above poverty line but sometimes turn poor due to bad luck.

3. Never poor:  are those people who are non poor.

3.  Describe the vicious circle of poverty.

According to Prof. Nurkse. “It implies circular constellation of forces tending to act and react one another in such a way as to keep a poor country in a state of poverty.   Low productivity results in low income.  Low income results in Low savings. Low savings results in low investment.  Low investment results in capital deficiency. Capital deficiency results in Low productivity.
Prof. Nurkse cited an example of a poor man.  A poor man does not get enough food which makes him weak. As a result of weakness his efficiency reduces as a consequence he gets low income and thus becomes poor.”

4.  Do you think the growth oriented approach is successful in reducing poverty?

During the initial plan periods the government felt that rapid industrialization, green revolution, increased GDP and Percapita income would reduce poverty.  But this attempt did not succeeded due to rapid growth of population and lack of proper implementation of land reforms. It just increased the gap between the rich and poor.

Answer the following in 15 sentences on each: 5 marks

1.  Explain the Causes of Poverty

Poverty is a situation where people are unable to get food, clothing, housing, health facilities and education.

The Major causes of poverty are:

1. British Exploitation:  Our vast natural resources were plundered by the Britisher’s besides destroying our cottage and small scale industries.

2. Economic inequalities:  In India, few people are extremely rich and wealthy while major section of the people is poor.

3. Low resource Base:  A Large section of rural poor have small piece of land or no land.  The income from their land is insufficient. In urban areas, petty vendors, casual labourers have very low resource base which leads to poverty.

4. Unemployment:  The high degree of Unemployment and underemployment prevents the people to get their basic necessaries.

5. Rapid growth of population:  is responsible for excess supply of labour and unemployment.  Further it results in low percapita income.

6. Inflationary pressure:  Rise in the prices of essential commodities further aggravates the problem of poverty.

7. Vicious circle of poverty:  refers to a situation where low percapita income results in low savings, low capital formation, low investment, low productivity and low income. 

8. Social factors:  include Illiteracy, narrow outlook of the people, ignorance superstious beliefs, etc

2.  Explain the Policies and Programmes towards Poverty Alleviation

The government’s approach to poverty has three dimensions:

1. Growth oriented approach:  During the initial plan periods the government felt that rapid industrialization, green revolution, increased GDP and Percapita income would reduce poverty.  But this attempt did not succeeded due to rapid growth of population and lack of proper implementation of land reforms. It just increased the gap between the rich and poor.

2. Income and employment generation approach: This approach was started during the third five year plan and continued till date with specific poverty alleviation and wage employment programmes.

a) Self employment programmes:  include Swarnajayanthi Grama Swarozgar Yojana-It is implemented through Self help groups providing financial assistance for self employment.

b) Swarna Jayanthi Shahari Rozgar Yojana and Pradhanana Manthri Rozgar yojana provide financial assistance through banks to set up small industries.

c) Wage employment programmes:  include

i) National food for work programme

ii) Sampoorna Grameena Rozgar yojana

iii) Mahatma Gandhi National Rural employment Guarantee programme( provides guaranteed wage employment to every adult person unskilled manual work for 100 days in a year).

3. Providing minimum basic needs to the people: This approach tackles poverty by providing minimum basic amenities to the people.

The major programmes include:

I.  Public Distribution System, Integrated Child Development Scheme and Mid-day meals aimed to improve the food and nutritional status of the poor.

II. Pradhana Manthri Gram Sadak Yojana and Pradhana  Manthri Gramodaya Yojana aimed to provide basic infrastructure in rural areas.

III. Indira Awas Yojana, Valmiki Ambedkar Awas Yojana and Basava Vasathi Yojana in Karnataka to provide shelter to the poor.

IV. Social security Measures:  National Social assistance programme by the central government gives pension to elderly people, Destitute women and widows.(Sandhya Suraksha Yojana in Karnataka)

V. Aam Aadmi Bima Yojana provides insurance to the head of the family of landless rural people.

Yashaswini Yojana provides health insurance to rural poor in Karnataka.

Bhagya Lakshmi Yojana provides financial support to the female child born in a poor family

3.  Critically examine the Poverty Alleviation programmes.

Since Independence, Poverty Alleviation programmes have had limited success in bringing changes in ownership of assets and improvement of basic amenities to the poor people.  The following reasons are stated by Some Scholars.

1.  Inequality in the distribution of land and other assets.

2. Non poor are receiving the benefits instead of Poor people.

3. Insufficient resources

4. Ill motivated, inadequately trained and corruption prone Government and bank officials in charge of implementing these programmes.

5. Lack of participation by the poor and local level institutions.