Chapter 1 (T-1, Poverty) [14/06/25] Flashcards
(24 cards)
Definition of Poverty, according to the World Bank.
Poverty is a pronounced deprivation on various aspects of well-being, state where an individual, household, society does not have access to basic necessities of a dignified life.
Absolute Poverty?
When an individual is facing pronounced deprivation on various aspect of well-being.
Relative Poverty
Comparitive Deprivation on aspects of well-being.
Head-count ratio or Poverty Ratio?
Number of people in the total population below poverty line.
What is Poverty line basket?
Poverty-line basket is the basis of poverty line, it consists of the goods&services which is necessary to live a life of basic dignity. It is an normative basket.
Survey for assessing poverty?
NSSO conducts HCES, Usually every 5 years.
Pre-Independence Poverty lines efforts?
- It were independent efforts
- Ability to procure food formed its basis.
A] Dadabhai Naoroji - Poverty & UnBritish Rule
B] National Planning Committee
C] Bombay Plan
Important Post-Independence Expert’s committee to recommed Poverty Line.
1] Dandekar&Rath (1971)
2] YK Alagh (1979)
3] Lakdawala (1993)
4] Tendulakar (2009)
5] Rangarajan Committee(2012)
Dandekar & Rath(1971)
1] Recommended Energy Calories
2] 2250 Calories per/d
YK Alagh’s recommendations
Segregation of poverty lines in Rural and Urban.
Lakdawala(1993)
- State specific PL
- Increased non-food component.
- Yearly Updation of PL, using relevant Inflation Index.
Tendulakar Poverty Line(2009)
- Its our National Poverty Line.
- Included expenses on Healthcare&Education, drinking water and sanitation.
- Shift from calorie-based norm to mixed reference norm (calorie + expenditure on health, education, etc.)
4.Uniform Poverty Line Basket across rural and urban areas (unlike previous differential baskets)
New poverty estimates:
Rural: ₹27.2/day
Urban: ₹33.3/day (2009–10)
NSSO or NSO
NSSO was established in 1950, in 2019 it was replaced by NSO (NSSO+CSO).
First six SDG’s.
1–6: Basic Human Needs
“No Zero Good Quality Gender Clean”
= No Poverty, Zero Hunger, Good Health, Quality Education, Gender Equality, Clean Water
List International Poverty Line’s.
1] WB Poverty Line.
2] Multi-Dimentional PL by UNDP.
Basis of WB’s Poverty Line? It’s division.
GNI per capita or Gross National Income per person.
High Income Country - $11
Middle Income Country - $6 & $3.2
Low Income Country - $1.8
(at 2011 prices).
LIC poverty line is AKA?
Extreme Poverty Line.
What is PPP?
DONT COMPLICATE **
It is simply a mechanism used to convert foreign currency value into domestic currency value.
Eg - If Burger price in india is 150 and $5 in US, then the
(PPP is $1 = 30 Rupees)
Basis of traditionl PL and its drawback.
Minimum Consumption Expenditure.
Measures only the ability and not the actual accessiblity.
What is MPI.
- Multidimensional Poverty Index is an attempt to measure poverty based on direct observation about the accessiblity on various aspects of well-being.
- It was constructed by Oxford Poverty and Human Development Initiative(OPHI), proposed to UNDP.
- It measures poverty on 3 dimentions - Health, Education and Standard of living and 10 indicators.
- If a household fails on 3 or more of the indicater then it is considered as MD Poor.
India’s progress on poverty reduction:
Tendulkar PL (Pre & Post 1990’s)
1951 –> 55-60%
1993 –> 45%
.33 % point per year.
2012 –> 22%
2024 –> below 5%
India’s Progress on Poverty Reduction:
WB’s World Develoment Report 2015.
- India is overestimating Poverty
- HCR 14%
India’s progress on poverty reduction:
Global MPI Report
NFHS-3, 2005 –> 54%
Nfhs-4, 2015 –> 27%
NFHS-5, 2021 –> 13%
When was the World Bank formed and its initial purpose?
WB was formed in 1944 at Bretton Woods Conference, for rebuilding the war-torn Europe&Japan.
