POVERTY

Poverty may be defined as the level of income lower than that needed for meeting the basic requirements of food, clothing, and shelter for a family

Poverty line is an imaginary standard which is drawn on the basis of the minimum desirable nutritional standards. People whose income level is insufficient to achieve this minimum nutritional standard are said to be below the poverty line. The term ‘poor’ is used to describe these people.

Kinds of poverty

-          Mass Poverty – When a majority of the people are deprived of a minimum level of living and are made to continue at a bare subsistence level, the society is said to be plagued with mass poverty

-          Absolute poverty – A person is said to be in absolute poverty, if his income is not sufficient to provide him with the basic requirements / nutritional minimum.

-          Relative poverty – The relative poverty standard is a measure of poverty be comparison of different levels of incomes of different groups or classes in a given community. Relative poverty indicates inequalities of poverty. It arises on account of unequal distribution of wealth, property and incomes, and exists in all societies.

Causes of poverty

-          Overpopulation – Resources and employment opportunities are inadequate to support the rising number of people

-          Underdeveloped economy – 72% of our population live in rural areas where economic development is low. Migration to cites does not help as Industrial development is also slow. Information technology is booming, but it supports / employs only a small number of people.

-          Poor agricultural productivity – Ignorance of improved techniques, small land holdings, use of out dated techniques and inability to purchase modern machinery result in poor agricultural productivity.

-          Illiteracy – A low level of education keeps people untrained and unskilled and they are unable to obtain better paid jobs.

-          Resources – India possesses both natural and human resources in abundance. E.g., water, minerals, labor, etc. but they still remain underutilized and underdeveloped.

-          Colonial rule – British rule shattered the economic structure. Zamindari System, decline of handicrafts, drain of wealth etc. enhanced the already existing poverty.

-          Mode of production – the means of production and income are highly concentrated among a few. The culture of consumerism encourages diversion of resources for the satisfaction of the wants of the rich minority at the cost of the poor majority.

 

Consequences of poverty

-          Abject poverty implies low income and very low standard of living

-          Poverty slows down the rate of economic growth

-          Extreme poverty brings about demoralization of society and increases crime.

-          The per capita income in India is very low, therefore the standard of living of an average Indian is very low

-          Majority of India’s population is underfed. The poor quality of food results in chronic malnutrition and many diseases.

-          Houses of the poor have no proper ventilation, no proper drainage, insufficient drinking water and many live in slums in unhygienic surroundings.

Remedial measures for eradicating Poverty

The World Development Report 2000-2001 proposes a strategy for attacking poverty in three ways:

-          Promoting opportunity – Material opportunities are of great importance to poor people. Overall economic growth will help in generating opportunity. Attention must be paid to build the assets of the poor by expansion of schooling, nutrition programs, mother and child health programs, etc.

-          Empowerment – The potential for economic growth and poverty reduction is influenced by State and social institutions. By decentralization, the government can bring service agencies closer to poor communities and poor people.

-          Enhancing Security – Reducing vulnerability – to economic shocks, natural disasters, ill health and disability – is an essential part of enhancing wellbeing. When poor people are helped to cope with shocks, they are in a better position to take advantage of new market opportunities.