Question-1
Describe how the poverty line is estimated in India.
Solution: A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfil the basic needs. This minimum level is called the poverty line. In India, the poverty line is estimated by multiplying the prices of physical quantities like food, clothing, footwear, fuel, light, education, etc. in rupees. The numbers involved in determining the poverty line vary for different years. Also, the poverty line for rural areas is different from that of the urban areas because the work, lifestyle and expenses are different for rural and urban areas.
Question-2
Do you think that the present methodology of poverty estimation is appropriate?
Solution:
No, the present methodology of poverty estimation is not appropriate because it takes into account only the basic needs of food, clothing, fuel etc. But the quality of these basic necessities is the lowest quality available. The amount which is fixed as the poverty line does not include the margin for the constant price fluctuations. The poverty line should include some corrections for inflation and market fluctuations.
Question-3
Describe poverty trends in India since 1973.
Solution:
As per the data, there has been a substantial decline in poverty ratios in India from 45 percent in 1993-94 to 37.2 percent in 2004-05. There was a further decline to 22 percent in 2011-12. Although the number of poor people declined from 1973 to 1993, there was a significant reduction in the number of the poor (about 407 million) in 2004-05 and a further 270 million in 2011-12 with an average annual decline of 2.2 percent. It may also be noted that poverty ratios always remained higher in rural areas as compared to urban areas. If the present trend continues, the people below the poverty line may come down to less than 20 percent in the next few years.
Question-4
Discuss the major reasons for poverty in India.
Solution: The major reasons for poverty in the country are:
- The low level of economic development under British colonial rule. The policies of the colonial government ruined traditional handicrafts and discouraged the development of industries like textiles.
- The spread of the Green Revolution created many job opportunities for the people of the country, yet they were not sufficient in comparison to the number of job seekers.
- Unequal distribution of land and resources is another important factor for poverty in India.
- In order to fulfil social obligations and religious ceremonies the poor end up spending a lot which results in poverty.
- Inequality in the income of the people is also a major reason for poverty.
Question-5
Identify the social and economic groups which are most vulnerable to poverty in India.
Solution:
The social groups which are most vulnerable to poverty in India are:
- Scheduled Caste Households
- Scheduled Tribe Households
The economic groups which are most vulnerable to poverty in India are:
- Rural Agricultural Labour Households
- Urban Casual Labour Households
Answer:
Question-6 Give an account of interstate disparities of poverty in India. Solution: Poverty in India differs for different states. The success rate of reducing poverty varies from state to state, causing inter-state disparities in poverty level. Orissa, Bihar and Madhya Pradesh are the three poorest states in India with their people living below the poverty line being 47, 42 and 37 per cent, respectively. Jammu and Kashmir, Punjab and Himachal Pradesh are the three better-off states in India as far as poverty is concerned. There are various factors that are responsible for these interstate disparities of poverty in India.
Question-7
Describe global poverty trends.
Solution: The success rate of reducing poverty varies from state to state, causing inter-state disparities in poverty level. Orissa, Bihar and Madhya Pradesh are the three poorest states in India with their people living below the poverty line being 47, 42 and 37 per cent, respectively. Jammu and Kashmir, Punjab and Himachal Pradesh are the three better-off states in India as far as poverty is concerned. There has been a substantial reduction in global poverty. Poverty declined in China and South-East Asian countries as a result of rapid economic growth and huge investments in the development of human resources. In Latin America, the ratio of poverty remained almost the same. In sub-Saharan Africa, poverty saw an upward trend rather than a downward trend. It rose from 41% in 1981 to 46% in 2001. Poverty has surfaced itself in some of the former socialist countries like Russia, where formerly it was non-existent.
Question-8
Describe the current government strategy of poverty alleviation.
Solution:
The current anti-poverty strategy of the government is based broadly on two planks
- promotion of economic growth
- targeted anti-poverty programs.
Awareness is being spread across the nation specifying the importance of education, which has resulted in the increase of literacy level. Various schemes like Mahatma Gandhi National Rural Employment Guarantee Act, 2005, Swarnajayanti Gram Swarozgar Yojana (SGSY), Pradhan Mantri Gramodaya Yojana (PMGY) and Prime Minister Rozgar Yojana (PMRY) have been introduced by the government with an aim to abolish poverty from the country.
Question-9 Answer the following questions briefly.
(i) What do you understand by human poverty?
Solution:
Human poverty is a term that means that poverty in India is not just limited to the economic status of the people but rather spreads in various other sectors, which include lack of education, negligence of health care system, discrimination and disparity. Abolishing poverty from the country should not be the only aim of the authorities but to abolish human poverty must be the aim.
(ii) Who are the poorest of the poor?
Solution:
Women, female infants and elderly are considered to the poorest of the poor. This is because in a poor household, these people suffer the most and are deprived of the maximum necessities in life.
(iii) What are the main features of the National Rural Employment Guarantee Act 2005?
Solution:
The main features of the National Rural Employment Act 2005 are as follows:
- To provide 100 days of wage employment to every household to ensure livelihood security in rural areas
- Sustainable development to address the cause of drought, deforestation and soil erosion
- One-third of the proposed jobs under this scheme have been reserved for women