Problems of poverty01

ANJANA.P.V.NAIR

PGT ECONOMICS

K.V.PANGODE

CONTENTSPOVERTY

WHO ARE THE POOR?

METHODS OF FIXING POVERTY LINE

VICIOUS CIRCLE OF POVERTY

CAUSES OF POVERTY

POVERTY ERADICATION PROGRAMMES

REVIEW THE IMPORTANT CONCEPTS

TODAY ONE OF THE MAJOR CHALLENGE FACED BY INDIA IS POVERTY AND FOOD SECURITY.IT IS A SOCIAL PROBLEM. SO THAT GOVERNMENT AND THE SOCIAL ACITIVIST HAVE TO PLAY A VITAL ROLE IN THE ERADICATION OF POVERTY FROM THE SOCIETY…

SCENARIES OF POVERTY

POVERTY IS A SITUATION

WHERE PEOPLE FAIL TO

SATISFY THEIR BASIC NEEDS.

WHEN PEOPLE DO NOT GET

ENOUGH TO EAT – HUNGER WHEN MAJORITY OF PEOPLE

DO NOT GET FOOD AND

CONSEQUENTLY A SIZABLE

NUMBER OF PEOPLE DIE -

FAMINE

Features of poor Hunger- do not have two

meals a day. Malnutrition Deprivation- possess few

assets, reside in kutcha hutments ,landless

Exploitation- by the employers Illiteracy- do not have basic

literacy and skills. Powerlessness. Lack of freedom. Lack of representation. Poor quality of life. Heavy indebtedness.

Categories of poor people

Poverty line – It is an imaginary line in which

minimum level of consumption standard is laid down.

Relative poverty – It refers to poverty of people in

comparison to other people, regions of nations.

Absolute poverty – It refers to the total number of

people living below the poverty line.

POVERTYRATIO= NO:OF PEOPLE BELOW THE POVERTYLINE *100

TOTAL POPULATION

Head count ratio= Number of poor as the proportion of people

living below the poverty line.

DIFFERENCE BETWEEN RELATIVE AND ABSOLUTE POVERTY

RELATIVE POVERTY ABSOLUTE POVERTY

It refers to poverty of people relative to other people , region and nations.

When we say India is relatively poor, then it is in comparison with other countries.

Within India, relative poverty is calculated with the help of Lorenz Curve and Ginni Coefficient.

India is relatively one of the poorest countries of the world as its per capita income is less than one dollar per day.

• It refers to total number of people living below the poverty line.

• The concept has relevance for less developed countries and the concept has no relevance for developed countries.

• In India, absolute poverty is calculated with the help of poverty line.

• In India, 25 % of the total population is absolutely poor.

DIFFERENT NORMS / METHODS OF FIXING POVERTY LINE

Jail cost of Living: – Introduced by Dadabhai Naoroji. He used

appropriate prevailing prices to arrive at the cost of consumption of an adult prisoner.

o Task force on projection of Minimum Needs and Effective Consumption Demand:

Established in 1979.• It determined poverty line in terms of minimum

nutritional level of food energy required for subsistence.

• It is expressed in terms of minimum daily intake of calories.

• PEOPLE IN RURAL AREA NEEDS 2400 KG CALAORIES IN TAKE AND 2100 KG CALORIES IN URBAN AREA.

Monthly Per Capita Consumption Expenditure (MPCE):

*Rs 328 per person per month in rural areas .

*Rs 454 per person per month in urban areas.

Poverty ratio and number of poor.

Rural –Urban Break-up of poverty.

Regional variation in Incidence of poverty.

Nature of poverty.

o Rural areas- agricultural labourers, small and marginal

farmers.

• Urban areas- unemployed persons, work at low wages.

NURKSE explains the phenomenon of poverty

in terms of vicious circle of poverty. Vicious circle of poverty is defined as a

situation of self –reinforcing forces in which

there are certain factors that are related in a

circular way and result in continuation of

poverty and underdevelopment.

Panel A- total out-put is lowUnder

development

Low productivit

y

Low real income

Low saving

Low investmen

t

Capital deficiency

VICIOUS CIRCLE OF POVERTY

Panel B- productivity is low

Under development

Low productivity

Low real income

Low saving

Low investment

Capital deficiency

UNEMPOLYMENT

INEQUALITY IN

WEALTH AND INCOME.

RAPID GROWTH OF

POPULATION.

INCREASES IN PRICES.

ILLITARACY.

ILLNESSESS.

Social factors.

LACK OF FRESH WATER.

LOW NUTRITION

PREDOMINANCE OF

AGRICULTURE.

INDEBTEDNESS OF THE

FARMER.

UNDER DEVELOPED

NATURE OF THE

ECONOMY.

Capital deficiency.

LOW INCOMELOW

PURCHASING

LOW CONSUMPTIO

N

LOW NUTRITION

ILLNESSES

LOW CAPACITY TO WORK

LESS OPPURTUNITY

FOR EDUCATION

The rate of economic growth should be raised.

Various beneficiary–oriented programmes need

to be strengthened: Training programmes should

be taken up to improve the skills of potential

workers.

To provide minimum basic amenities: Provide

basic amenities such as water supply,

sanitation,nutrition etc.

Jawahar Gram Samridhi Yojana ( JGSY):

• Introduced in April 1999 by restructuring the

Jawahar Rozgar Yojana.

• Ratio of 75:25 between center and states.

• Implemented by Gram Panchayats in creation of

durable productive community assets.

• Secondary objective is generation of wage

employment for rural unemployed poor.

SWARNAJAYANTHI GRAM SWAROZGAR YOJANA (SGSY)

Launched in April 1,1999 Aims is to promoting micro- enterprises and helping the

rural poor into Self Help Groups (SHG). Scheme is being implemented as a Centrally Sponsored

Scheme on a cost sharing ratio of 75:25 between center and state.

EMPLOYMENT ASSURANCE SCHEME(EAS)o Started on October 2nd 1993.o Aim is to operate PDS among 1,778 identified backward

Panchayat Samities of 257 districts situated in drought prone areas, desert areas , tribal areas and hilly areas.

o It was restructured in 1999-2000 to make a single wage employment programme and implemented as a centrally sponsored scheme on a cost sharing ratio of 75:25.

SAMPOORNA GRAMIN ROZGAR YOJANA(SGRY)

Launched in sep. 2001 Aim is to provide wage employment in rural areas

along with food security and creation of duration community , social and economic assets.

Implemented on a cost sharing ratio of 75:25 between the centre and state

In August 2005, National Rural Employment Guarantee Act was passed.

NATIONAL SOCIAL ASSISTANCE PROGRAMME(NSAP)o Introduced in 15 August 1995o 100% centrally sponsored scheme for social

assistance to poor household affected by old age, death of primary bread earner and maternity care.

PRADHAN MANTRI GRAMODAYA YOJANA(PMGY)

Introduced in 200-01 Objective of focussing on village level development

in five critical areas its health primary education, drinking water, housing and rural roads.

Pradhan mantri gram sadak yojana(PMGSY) PRADHAN MANTRI GRAMODAYA YOJANA(Gramin

Awaas) PRADHAN MANTRI GRAMODAYA YOJANA- Rural

drinking water project.

SWARNA JAYANTI SHAHARI ROZGAR YOJANE(SJSRY)

Introduced in 1997 Urban self employment programme ande the

Urban wage employment ate two special schemes

75:25 INDIRA AWAAS YOJANA (IAY)o Major scheme for construction of houses to

be given to the poor, free of cost.o The target group for housing are households

below poverty line living in rural areas.

GENERATES EMPLOYMENT

CREATES ASSETS LIKE IRRIGATION

FACILITIES

GENERATES INCOME

MORE EMPLOYMENT

MORE INCOME

DEVELOPMENT OF RURAL ECONOMY

ALL ARE NOT GETTING THE BENEFITS EQUALLY.

EVEN THOSE WHO ARE NOT POOR ALSO GET THE

BENEFITS.

INSUFFICIENT ALLOCATION OF FUND FOR THE

SCHEMES.

CORRUPTION AND INEFFICIENT IMPLEMENTATION

NEGLECT IF LOCAL CONDITIONS.

Inadequate financial limits Lack of interest Poor targeting Lack of accountability

POVERTY

HUNGER

FAMINE

POVERTY LINE

POVERTY RATIO

NREGS