Poverty
Poverty in India refers to the condition where individuals lack the financial resources and access to basic necessities like food, shelter, and healthcare, impacting their overall quality of life and opportunities.
Poverty is a condition characterized by the lack of access to basic necessities required for a decent standard of living, including adequate food, shelter, clothing, healthcare, education, and other essential services. It is a state of deprivation that hinders individuals and households from meeting their basic needs and participating fully in society. Poverty can manifest in various forms, including income poverty, multidimensional poverty, absolute poverty, and relative poverty, and it is often associated with economic, social, political, and environmental factors. Poverty is a complex and multidimensional phenomenon that impacts individuals, families, and communities, and addressing it requires comprehensive strategies aimed at promoting social inclusion, economic empowerment, and sustainable development
Dimensions of Poverty
Poverty encompasses various dimensions beyond just the lack of income. Understanding these dimensions provides a more comprehensive view of poverty and helps in formulating effective strategies to address it.
Here are some key dimensions of poverty:
- Income Poverty: This dimension refers to the lack of sufficient income to meet basic needs such as food, shelter, clothing, healthcare, and education. Income poverty is often measured using poverty lines or thresholds set by governments or international organizations.
- Multidimensional Poverty: Poverty is not solely about income; it also includes other aspects such as education, health, housing, sanitation, access to clean water, and social inclusion. Multidimensional poverty indices capture these diverse dimensions to provide a more holistic understanding of poverty.
- Education: Lack of access to quality education and educational opportunities is a significant dimension of poverty. Poverty can lead to low enrollment rates, high dropout rates, and limited access to educational resources, perpetuating cycles of disadvantage across generations.
- Health: Poor health is both a cause and consequence of poverty. Poverty limits access to healthcare services, nutritious food, clean water, sanitation facilities, and preventive measures, leading to higher rates of malnutrition, infectious diseases, maternal and child mortality, and overall poor health outcomes.
- Nutrition: Malnutrition and food insecurity are critical dimensions of poverty, particularly in developing countries. Poverty often results in inadequate access to nutritious food, leading to undernutrition, stunting, wasting, and micronutrient deficiencies, which can have lifelong consequences on physical and cognitive development.
- Housing and Shelter: Inadequate housing conditions, including overcrowding, lack of sanitation facilities, and unsafe living environments, are common manifestations of poverty. Access to safe and affordable housing is essential for ensuring dignity, security, and well-being.
- Employment and Livelihoods: Lack of decent employment opportunities, low wages, informal and precarious work arrangements, and unemployment contribute to poverty. Access to sustainable livelihoods and productive employment is crucial for economic empowerment and poverty reduction.
- Social Exclusion and Discrimination: Poverty is often intertwined with social exclusion, discrimination, and marginalization based on factors such as gender, ethnicity, caste, religion, disability, and geography. Discriminatory practices limit access to resources, opportunities, and social services, exacerbating poverty and inequality.
- Vulnerability to Shocks and Disasters: Poverty increases vulnerability to external shocks such as economic downturns, natural disasters, conflicts, and climate change. Poor households have limited resources to cope with emergencies, leading to heightened risks of further impoverishment and social distress.
- Access to Social Protection: Lack of access to social protection mechanisms such as social insurance, cash transfers, and safety nets exacerbates poverty and vulnerability. Social protection programs play a crucial role in providing income support, healthcare, education, and other essential services to those in need
Linkage between Poverty and Development
The linkage between poverty and development is complex and multidimensional, with poverty often serving as both a cause and a consequence of underdevelopment.
Here’s how poverty and development are interconnected:
- Economic Growth: Poverty and development are closely linked to economic growth. Economic development, characterized by sustained increases in per capita income and improvements in living standards, can contribute to poverty reduction by creating employment opportunities, increasing household incomes, and generating resources for social investments. Conversely, poverty can hinder economic growth by limiting human capital formation, productivity, and entrepreneurship.
- Human Development: Development encompasses improvements in human well-being, including education, health, nutrition, and access to basic services. Poverty undermines human development by limiting access to quality education, healthcare, and other essential services, perpetuating cycles of deprivation and inequality. Conversely, investments in human development contribute to poverty reduction by empowering individuals, enhancing productivity, and improving overall welfare.
- Inequality: Poverty and development are closely intertwined with inequality. High levels of inequality, whether in income, wealth, or access to opportunities, can perpetuate poverty by limiting social mobility, exacerbating social exclusion, and concentrating resources in the hands of a privileged few. Addressing inequality through inclusive development policies and redistributive measures is essential for promoting equitable growth and poverty reduction.
- Social Capital: Development is not just about economic growth; it also involves building social capital, including trust, social cohesion, and collective action. Poverty erodes social capital by weakening social networks, undermining community resilience, and fostering social tensions. Development efforts that strengthen social capital can enhance the effectiveness of poverty reduction strategies by promoting cooperation, solidarity, and mutual support.
- Environmental Sustainability: Development must be environmentally sustainable to ensure the well-being of current and future generations. Poverty often leads to environmental degradation as poor households rely on natural resources for their livelihoods and lack access to clean energy alternatives. Sustainable development strategies that integrate poverty alleviation with environmental conservation are essential for addressing poverty while safeguarding the planet’s resources.
- Access to Opportunities: Development entails expanding access to opportunities for all individuals, regardless of their socioeconomic background. Poverty restricts access to education, healthcare, employment, and political participation, perpetuating social exclusion and limiting upward mobility. Development efforts that prioritize inclusive growth and create enabling environments for equitable opportunities are essential for breaking the cycle of poverty.
- Globalization and Trade: Globalization can both exacerbate and alleviate poverty, depending on how it is managed. While globalization can create opportunities for economic integration, trade, and investment, it can also lead to job displacement, income inequality, and marginalization, particularly for vulnerable groups. Development policies that harness the benefits of globalization while mitigating its adverse effects are critical for inclusive and sustainable development
Poverty Alleviation Strategy Since Independence
Five Year Plans
India’s Five-Year Plans have been pivotal in shaping the country’s development trajectory since independence and have included various poverty alleviation strategies
| Five-Year Plan | Poverty Alleviation Strategy |
|---|---|
| First (1951-1956) | Community Development Program (CDP) aimed at rural development through community participation, self-help, and cooperatives. |
| Second (1956-1961) | Emphasis on agriculture and industry development to boost economic growth and employment generation. Green Revolution initiated during this period to increase food production and alleviate hunger and poverty. |
| Third (1961-1966) | Expansion of irrigation facilities, rural electrification, and agricultural credit to support agricultural development and rural livelihoods. Introduction of poverty alleviation programs like Drought Prone Area Program (DPAP). |
| Fourth (1969-1974) | Focus on promoting employment-intensive industries, rural development, and poverty alleviation through programs like Small Farmers Development Agency (SFDA), Marginal Farmers and Agricultural Laborers Development Agency (MFAL), and Command Area Development Program (CADP). |
| Fifth (1974-1979) | “Garibi Hatao” (Eradicate Poverty) campaign launched by Prime Minister Indira Gandhi with a focus on land reforms, employment generation, and redistribution of resources to reduce poverty and inequality. |
| Sixth (1980-1985) | Strengthening of poverty alleviation programs like Integrated Rural Development Program (IRDP), National Rural Employment Program (NREP), and Rural Landless Employment Guarantee Program (RLEGP). |
| Seventh (1985-1990) | Emphasis on targeted anti-poverty programs, including the Jawahar Rozgar Yojana (JRY), aimed at providing wage employment to the rural poor. |
| Eighth (1992-1997) | Economic liberalization and structural reforms aimed at promoting economic growth, investment, and employment generation to alleviate poverty. |
| Ninth (1997-2002) | Focus on human development, poverty reduction, and rural infrastructure development through initiatives like Pradhan Mantri Gram Sadak Yojana (PMGSY) and Swarnajayanti Gram Swarozgar Yojana (SGSY). |
| Tenth (2002-2007) | Emphasis on inclusive growth, employment generation, and social sector development. Introduction of flagship programs like National Rural Employment Guarantee Scheme (NREGS, later transformed into MGNREGA). |
| Eleventh (2007-2012) | Consolidation and expansion of social welfare programs, including MGNREGA, National Rural Livelihood Mission (NRLM), and National Food Security Act (NFSA) aimed at providing food and income security to the poor. |
| Twelfth (2012-2017) | Continued focus on inclusive growth, poverty reduction, and social sector development through programs like Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Awas Yojana (PMAY), and Deen Dayal Antyodaya Yojana (DAY). |
| Thirteenth (2017-2022) | Prioritization of poverty eradication, sustainable development, and social justice through initiatives like Ayushman Bharat, PM Kisan Yojana, and the National Urban Livelihoods Mission (NULM). |
The major Poverty Alleviation Programmes in India since Independence
Since gaining independence in 1947, India has implemented various poverty alleviation strategies to address the widespread poverty prevalent in the country. These strategies have evolved over time in response to changing socio-economic conditions and policy priorities. Here’s an overview of some key poverty alleviation initiatives undertaken since independence:
- Five-Year Plans: India’s Five-Year Plans, initiated in 1951, laid the foundation for economic development and poverty reduction. These plans focused on agrarian reforms, industrialization, infrastructure development, and social welfare programs to promote inclusive growth.
- Community Development Program (CDP): Launched in 1952, the CDP aimed to promote rural development through community participation, self-help, and cooperative efforts. It focused on improving agriculture, rural infrastructure, education, and healthcare services.
- Green Revolution: In the 1960s and 1970s, the Green Revolution introduced high-yielding varieties of seeds, modern agricultural practices, and irrigation technologies to increase food production and alleviate hunger and poverty in rural areas.
- Integrated Rural Development Program (IRDP): Initiated in 1978, IRDP aimed to provide income-generating assets and employment opportunities to the rural poor through self-employment schemes, subsidies, and credit facilities.
- National Rural Employment Program (NREP) and Rural Landless Employment Guarantee Program (RLEGP): These programs, launched in the 1980s, aimed to provide wage employment to rural households, especially landless laborers, during the agricultural offseasons.
- Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Enacted in 2005, MGNREGA guarantees 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. It aims to enhance livelihood security and create durable rural assets.
- National Food Security Act (NFSA): Enacted in 2013, NFSA aims to provide food and nutritional security by ensuring access to subsidized food grains to eligible households through the Public Distribution System (PDS), maternity benefits, and nutritional support to pregnant women and lactating mothers.
- Pradhan Mantri Awas Yojana (PMAY): Launched in 2015, PMAY aims to provide affordable housing to all urban and rural households by 2022, with a focus on economically weaker sections, low-income groups, and slum dwellers.
- Pradhan Mantri Jan Dhan Yojana (PMJDY): Launched in 2014, PMJDY aims to promote financial inclusion by providing access to banking services, including savings accounts, remittance facilities, credit, insurance, and pension schemes, to all households.
- Deen Dayal Antyodaya Yojana (DAY): Launched in 2014, DAY aims to uplift the poorest of the poor by providing sustainable livelihood opportunities, skill development, social assistance, and access to basic services such as healthcare, education, and housing
Programmes for Poverty Alleviation
There have been numerous programs and initiatives implemented by the Government of India for poverty alleviation across various sectors.
Here are some key programs aimed at addressing poverty:
- Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Guarantees 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. It aims to enhance livelihood security and create durable rural assets.
- Pradhan Mantri Awas Yojana (PMAY): Aims to provide affordable housing to all urban and rural households by 2022, with a focus on economically weaker sections, low-income groups, and slum dwellers.
- National Rural Livelihoods Mission (NRLM): Aims to reduce poverty by promoting self-employment and entrepreneurship opportunities for rural households through skill development, capacity building, access to credit, and market linkages.
- National Food Security Act (NFSA): Aims to provide food and nutritional security by ensuring access to subsidized food grains to eligible households through the Public Distribution System (PDS), maternity benefits, and nutritional support to pregnant women and lactating mothers.
- Pradhan Mantri Jan Dhan Yojana (PMJDY): Aims to promote financial inclusion by providing access to banking services, including savings accounts, remittance facilities, credit, insurance, and pension schemes, to all households.
- Deen Dayal Antyodaya Yojana (DAY): Aims to uplift the poorest of the poor by providing sustainable livelihood opportunities, skill development, social assistance, and access to basic services such as healthcare, education, and housing.
- National Health Mission (NHM): Aims to improve access to quality healthcare services, especially for vulnerable populations, through initiatives like Janani Suraksha Yojana (JSY), Rashtriya Swasthya Bima Yojana (RSBY), and Ayushman Bharat.
- Integrated Child Development Services (ICDS): Aims to provide holistic early childhood care and development services to children under six years of age, pregnant women, and lactating mothers, including supplementary nutrition, immunization, health check-ups, and pre-school education.
- Swachh Bharat Mission (SBM): Aims to achieve universal sanitation coverage and eliminate open defecation by promoting toilet construction, behavior change, and solid waste management practices.
- National Social Assistance Program (NSAP): Provides financial assistance to the elderly, widows, and persons with disabilities living below the poverty line through schemes like Indira Gandhi National Old Age Pension Scheme (IGNOAPS), Indira Gandhi National Widow Pension Scheme (IGNWPS), and Indira Gandhi National Disability Pension Scheme (IGNDPS)
Rangarajan Committee
The Rangarajan Committee, officially known as the Expert Group to Review the Methodology for Measurement of Poverty, was formed in 2012 by the Government of India to revise the methodology used to estimate poverty and update poverty lines in the country. The committee was chaired by Dr. C. Rangarajan, an eminent economist and former Governor of the Reserve Bank of India. The recommendations of the Rangarajan Committee aimed to provide a more accurate and comprehensive understanding of poverty in India.
Some of the key recommendations of the committee include:
- The committee recommended revising the poverty lines based on more recent consumption patterns, price indices, and nutritional requirements. It proposed separate poverty lines for rural and urban areas to account for differences in living standards and cost of living
- The committee emphasized the need to capture the multidimensional aspects of poverty beyond just income, including education, health, housing, and access to basic services, in the measurement framework
- The committee suggested updating the consumption basket used to estimate poverty to reflect changing consumption patterns and preferences of households, particularly in urban areas
- The committee proposed revising the methodology used to estimate poverty by incorporating more recent data sources, improving survey methods, and addressing data limitations to enhance the accuracy and reliability of poverty estimates
- The committee recommended accounting for regional variations in living standards, cost of living, and socio-economic conditions while estimating poverty to ensure that poverty lines are more reflective of local realities
- The committee highlighted the importance of strengthening social security measures and safety nets to provide financial support and assistance to vulnerable populations, including the elderly, widows, and persons with disabilities
- The committee stressed the need for improving data collection, analysis, and reporting mechanisms to monitor poverty trends, assess the effectiveness of poverty alleviation programs, and inform policy decisions
Concept of Inequality
Inequality refers to disparities in the distribution of resources, opportunities, and outcomes among individuals or groups within a society. It encompasses various dimensions, including income, wealth, education, health, employment, and social status.
Here are key aspects of the concept of inequality:
- Income Inequality: This dimension of inequality refers to differences in the distribution of income among individuals or households. It is typically measured using metrics such as the Gini coefficient or income quintiles, reflecting the extent to which income is concentrated among different segments of the population.
- Wealth Inequality: Wealth inequality refers to differences in the distribution of assets, property, and net worth among individuals or households. It takes into account not only current income but also accumulated assets such as savings, investments, property, and inheritance, which contribute to disparities in economic well-being.
- Educational Inequality: Educational inequality refers to disparities in access to and quality of education among different socio-economic groups. It encompasses differences in enrollment rates, completion rates, educational attainment levels, and access to educational resources and opportunities, which can perpetuate intergenerational cycles of advantage or disadvantage.
- Health Inequality: Health inequality refers to disparities in health outcomes, access to healthcare services, and health-related resources among population groups. It encompasses differences in life expectancy, disease prevalence, mortality rates, and access to preventive care, diagnostic services, and treatment options, which can be influenced by socio-economic factors such as income, education, and environment.
- Employment Inequality: Employment inequality refers to differences in access to employment opportunities, working conditions, wages, and benefits among individuals or groups. It encompasses disparities in unemployment rates, underemployment, informal employment, wage gaps based on gender, race, or ethnicity, and unequal access to formal employment benefits such as social security and pension schemes.
- Social Inequality: Social inequality refers to disparities in social status, prestige, power, and influence among individuals or groups within a society. It encompasses differences in access to political participation, decision-making processes, social networks, and cultural capital, which can shape opportunities for advancement and social mobility.
- Intersecting Inequalities: Inequality is often intersectional, meaning that individuals may experience multiple forms of disadvantage simultaneously based on their overlapping identities and social positions. For example, gender inequality may intersect with class inequality, caste discrimination, or racial disparities, leading to compounded disadvantages for marginalized groups.
- Causes and Consequences: Inequality can be caused by various factors, including historical legacies, structural barriers, discrimination, unequal access to resources and opportunities, and socio-economic policies. It can have far-reaching consequences for individuals, families, communities, and societies, contributing to social unrest, political instability, reduced economic growth, and hindered development.
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