POVERTY

POVERTY
What is Poverty?
Poverty refers to a state in which individual is unable to fulfill even

basic necessity of life. Minimum requirement or basic necessity of life
includes Food, Housing, Clothes, Health and Education.
The Country in which Maximum Population deprive from these

basic necessities from a long period it means country is suffering from
vicious circle of poverty.
According to Article 25 of the Universal Declaration of Human Rights

of United Nations Stated that everyone have right to a standard of
living adequate for the Health and wellbeing of himself and his family.
As per the report of Human Development Index India stands in the

136th position among 186 countries.
POVERT IN THE WORLD

Poverty is wide spread in this world with over 3 billion people living on less than
$2.50 a day. Due to severe hunger and malnutrition, 10.6 million died in 2003
before they reached the age of 5 which means 29,000 children per day. Almost
half the world – over three billion people live on less than $ 2.50 a day and at
least 80% of humanity lives on less than $10 a day.
POVERTY IN THE SOUTH ASIA

South Asia is the developing sub-region with the largest number of poor people.
43 per cent of the world’s 1.4 billion poor people live in South Asian countries.
The absolute number of people living in extreme poverty increased from 548.3
million to 595.6 million between 1981 and 2005.
Poverty is divided in two parts:-
 Poverty in Urban Area

 Poverty in Rural Area
POVERTY IN URBAN AREA:-
In Urban area poor people include Street cooker, Rag pickers, Beggars
etc because they possessed few assets.
Picture of Poverty in Urban Area;-
 As they recite in very Khacha House.

 In Urban maximum poor are found those people who have
been migrated from Rural in Search of livelihood and
Employment.
POVERTY IN RURAL AREA:-
In Rural Area those people are concerned poor who are landless in
Agriculture, Tenants cultivator, with small holding, Landless labour
engaged in variety of Non-Agricultural activities.
The Struggle in rural area is for two time meal per day.
MEASUREMENT OF POVERTY
 Relative Poverty
 Absolute Poverty
1. Relative Poverty
Relative poor is measured in comparison between two people, two
countries, two states etc. For Example:- If India has lower income as
comparison to America it means India is relatively poor from
America.
IMORTANCE
 It helps in Understanding the relative position of different

segments of population.
LIMITATION
It only reflects the relative position of different segments of

population on the basis of Income but it doesn't show either the
persons are getting minimum requirement.
ABSOLUTE POVERTY
Absolute Poverty refers to people who are living Below Poverty
Line. For Example:- According to absolute poverty measure 21.9% of
population is living below poverty line in India.
IMPORTANCE
 The concept of Absolute poverty relevant for the less develop

countries like India where it helps to measure poor people.
LIMITATION
POVERTY LINE
Poverty Line is a cut off on the line of distribution which usually divides
the population into Poor and Non-Poor. The concept of poverty line is
the major extent of poverty in a country.
Following Determines the concept of Poverty line:-
 People having income below poverty line are called Poor and on
the other hand, people having income above the poverty line
are called Non-Poor.
 In India monthly per capital Expenditure (MPCE) method is use
to determine the poverty line.
 As per Planning Commission of India has defined if a person
consumes 2400 calories in Rural Area and 2100 calories in
Urban Area per day are above poverty line.
 As per report of 2011-2012 If a person spends monthly Rs.972
in Rural and Rs.1407 in Urban area per month is above poverty
line.
 As per International standard if a person is earning 2 dollar per
day will not concerned poor, if a person is getting more than 1
dollar and less than 2 dollar is will be consider poor and on the
other hand if a person earns less than 1 dollar than he is very
poor.
POVERTY IN INDIA
India ranked 162 GNI Per Capita with 1410 US Dollars in 2011
and is named as lower middle income country 4 under altas
method and is ranked 156 with under PPP method an GNI Per
Capita of 3590 International Dollars in 2011. Poverty in India is
widespread, with the nation estimated to have a third of the
world's poor. In 2010, the World Bank reported that 32.7% of
the total Indian people falls below the international poverty line
of US$ 1.25 per day while 68.7% live on less than US$ 2 per
day.5 Poverty in India is mainly due to lack of proper
government policies and the exploitation of the financially
weaker section by the richer class. The main outcome of
poverty is hunger. Hunger’s seriousness can be understood
easily from the fact that every year, 5.8 million children die
from hunger related-causes around the world i.e 16,000
children die each day. In 1947, the average annual income in
India was US$ 619, compared with US$ 439 for China. But, by
1999, the average annual income became US$ 1,818 for India;
US$ 3,259 for China;
TREND OF POVERTY IN INDIA
Number of people below poverty line in 1963 there were 321.3 million
people who were below poverty line but in 2004-2005 the number
came down to 238.5 million.
 In 1973-1974 around 81.33% of people were poor recite in

Rural Area which declined to 71.40% in 2004-2005.
 5 States like U.P, West Bengal, Orissa, M.P account for about
70% of poor people.
SOURCE:- ECONOMIC SURVEY OF GOVT OF INDIA 2013-2014
HEAD COUNT ESTIMATES OF POVERTY
TREND IN POVERTY IN INDIA (IN LAKHS)
YEAR RURAL URBAN INDIA

2004-2005 3258.1 814.1 4072.2
2009-2010 2782.1 764.7 3546.8
2011-2012 2166.6 531.2 2697.8
CAUSES OF POVERTY
1. Population Explosion:- Rapid growth of population is a responsible
for the problem of poverty in a country. when there is a increase in
population there is adverse effect in two way:-
 The Existing Supply over demanded and being over

demanding rise in prices.
 On the other hand, distribution of national income get
effected.
2. Low level of Economic development:- Indian Economy is relatively

backward in agriculture and industrial sector. This is the biggest cause
of slow growth rate o Indian economy.
 High illiteracy rate:- The weaker Section of the economy is

engaged to low paid jobs due to lack of knowledge.
REASON
 In India infrastructure in Education has not update.
 Lack of Skill Development programes are not build.
3. High level indebtness:- The most of the population of weaker

Society depends upon borrowing money to meet their basic needs.
The major cause of indebtness is migration. Due to migration people

move from rural to city to find out jobs. There is an adverse effect such
as rise in price, availability of high labour make in fall of income.
4. Inflation:- The continuous rise in prices specially on essential quality

which very much adversely effect on the purchasing power of low
income earners.
GOVERNMENT APPROACH TO REMOVE POVERTY:-
 GROWTH ORIENTED APPROACH

 POVERTY ELEMENT PROGRAM
 MINIMUM NEED PROGRAM
This Approach was initiated from first five year plan. This approach is
based on expectations.
If economy grows there would be increase in GDP and Per Capita
Income and effect of this would spread in all sections of the society.
It was felt rapid industrial development and transformation of

agriculture through green revolution in selected Regions would
beneficial to under develop regions.
 Poverty will reduce with growth of economy only if jobless

growth is avoided.
 Jobless Growth occur only when GDP growth is a
technology driver
 The Government must ensure that production is a labour
incentive rather than capital incentive.
MEASURES SHOULD FOLLOW BY GOVERNMENT IN GROWTH

ORIENTATION APPROACH:-
 FISCAT
 LEGISLATIVE
Fiscal:- The government should focus on progressive tax

because it charge higher income people. The collection of Tax
will be distributed among poor in form of subsidies on goods
like coarse grain, coarse clothes.
ALLEVIATION PROGRAMMES
1. National Rural Livelihood Mission:-(NRLM) is
a poverty alleviation project implemented by Ministry of
Rural Development, Government of India. This scheme is
focused on promoting self-employment and organization of
rural poor. The basic idea behind this programme is to
organize the poor into SHG (Self Help Groups) groups and
make them capable for self-employment.
2. Swarnajayanti Gram Swarojgar Yojana (SGSY) In 1999 it
is reconstruct as Integrated Rural Development
Programme(IRDP), Ministry of Rural Development (MoRD)
launched Swarnajayanti Gram Swarojgar Yojana (SGSY) to
focus on promoting self-employment among rural poor.
SGSY is now remodeled to form NRLM thereby plugging the
shortfalls of SGSY programme.

POVERTY

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POVERTY

Poverty refers to a state in which individual is unable to fulfill even

The Country in which Maximum Population deprive from these

According to Article 25 of the Universal Declaration of Human Rights

As per the report of Human Development Index India stands in the

POVERT IN THE WORLD

POVERTY IN THE SOUTH ASIA

 Poverty in Urban Area

POVERTY IN URBAN AREA:-

Picture of Poverty in Urban Area;-

 As they recite in very Khacha House.

POVERTY IN RURAL AREA:-

 It helps in Understanding the relative position of different

It only reflects the relative position of different segments of

 The concept of Absolute poverty relevant for the less develop

Following Determines the concept of Poverty line:-

 In 1973-1974 around 81.33% of people were poor recite in

SOURCE:- ECONOMIC SURVEY OF GOVT OF INDIA 2013-2014

HEAD COUNT ESTIMATES OF POVERTY

TREND IN POVERTY IN INDIA (IN LAKHS)

YEAR RURAL URBAN INDIA

 The Existing Supply over demanded and being over

2. Low level of Economic development:- Indian Economy is relatively

 High illiteracy rate:- The weaker Section of the economy is

3. High level indebtness:- The most of the population of weaker

The major cause of indebtness is migration. Due to migration people

4. Inflation:- The continuous rise in prices specially on essential quality

 GROWTH ORIENTED APPROACH

It was felt rapid industrial development and transformation of

 Poverty will reduce with growth of economy only if jobless

MEASURES SHOULD FOLLOW BY GOVERNMENT IN GROWTH

Fiscal:- The government should focus on progressive tax

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