Poverty As A Challenge

Question 1

What is the significance of the Public Distribution System (PDS) in poverty alleviation?

Answer 1

PDS provides subsidized food grains to poor households, ensuring food security and preventing malnutrition among the most vulnerable populations.

Question 2

What are the vulnerable groups in the economy?

Answer 2

1. The proportion of people below the poverty line is not the same for all social groups and economic categories in India.
2. Social groups most vulnerable to poverty are Scheduled Caste and Scheduled Tribe households.
3. Among economic groups, the most vulnerable are rural agricultural labour households and urban casual labour households.
4. The double disadvantage of being a landless casual wage labour household in the socially disadvantaged groups of Scheduled Caste or Scheduled Tribe highlights the seriousness of the problem.

Question 3

Which organization conducts poverty estimation surveys in India?

Answer 3

National Sample Survey Organisation (NSSO).

Question 4

What is the Prime Minister Rozgar Yojana (PMRY)?

Answer 4

A scheme to create self-employment opportunities for educated youth.

Question 5

What are the expected trends for poverty reduction in the future?

Answer 5

Decline due to economic growth, education, and women’s empowerment.

Question 6

Explain the causes of poverty (10m)

Answer 6

I. Historical Causes:
1. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles.
2. This resulted in less job opportunities and low growth rate of income. This was accompanied by a high growth rate of population.
3. The two combined to make the growth rate of per capita income very low.
4. The failure at both the fronts: promotion of economic growth and population control perpetuated the cycle of poverty.
5. The Green revolution created job opportunities in the agricultural sector, but the effects were limited to some parts of India.
6. The industries, both in the public and the private sector, did provide some jobs.
7. Unable to find proper jobs in cities, many people started working as: rickshaw pullers, vendors, construction workers, domestic servants, etc.
_________

II. Income Inequalities:
1. One of the major reasons for income inequalities is unequal distribution of land and other resources.
2. Major policy initiatives like land reforms which aimed at re-distribution of assets in rural areas have not been implemented properly and effectively by most of the state governments.
_________

III. Social and Cultural:
1. In order to fulfil social obligations and observe religious ceremonies, people in India, including the very poor, spend a lot of money.
2. Small farmers need money to buy agricultural inputs like:
- seeds
- fertilizer
- pesticides, etc.
3. Since poor people hardly have any savings, they borrow. Unable to repay because of poverty, they become victims of indebtedness.

Question 7

What are the key dimensions of poverty?

Answer 7

Poverty is multi-dimensional and includes lack of income, hunger, illiteracy, unemployment, malnutrition, poor health, child labor, and social exclusion.

Question 8

How does unemployment contribute to poverty?

Answer 8

Unemployment leads to lack of income, making it difficult to afford basic needs. It forces individuals into low-paying informal jobs, creating instability and long-term financial insecurity.

Question 9

What does social exclusion mean in the context of poverty?

Answer 9

1. According to this concept, poverty must be seen in terms of the poor having to live only in a poor surrounding with other poor people, excluded from enjoying social equality of better-off people in better surroundings.
2. Social exclusion can be both a cause as well as a consequence of poverty in the usual sense.
3. It is a process through which individuals or groups are excluded from facilities, benefits, and opportunities that others (their “betters”) enjoy.
4. A typical example is the working of the caste system in India, in which people belonging to certain castes are excluded from equal opportunities.
5. Social exclusion thus may lead to, but can cause more damage than, having a very low income.

Question 10

What role does nutrition play in determining the poverty line?

Answer 10

Calorie intake is a major criterion for setting the poverty line in India. The required calorie intake is 2400 kcal per person per day in rural areas and 2100 kcal in urban areas, considering the nature of physical work.

Question 11

How does lack of education contribute to poverty?

Answer 11

Education improves job opportunities and earning potential. Poor families often cannot afford schooling or require children to work. This leads to illiteracy, continuing the cycle of poverty across generations.

Question 12

Why is child labor common among poor families?

Answer 12

Due to lack of financial resources to support education.

Question 13

Poverty Line Estimation is done by :

Answer 13

National Sample Survey Organisation (NSSO)

Question 14

What was the poverty line income for rural areas in 2011-12?

Answer 14

Rs 816 per month per person.

Question 15

What are the accepted calorie requirements in India?

Answer 15

2400 calories per day in rural areas and 2100 calories per day in urban areas.

Question 16

What international poverty line does the World Bank use?

Answer 16

$2.15 per person per day (2011 PPP).

Question 17

Why do different countries have different poverty lines?

Answer 17

Because living costs and development levels vary across countries.

Question 18

What steps can be taken to eradicate poverty completely?

Answer 18

1. Sustainable economic growth with job creation.
2. Universal access to quality education and healthcare.
3. Strengthening social security schemes.
4. Reducing income inequalities through land reforms and fair wages.
5. Empowering women and marginalized groups.

Question 19

What is the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?

Answer 19

(i) Aims to provide 100 days of wage employment to every household.
(ii) One-third of jobs have been reserved for women.
(iii) Aims at sustainable development to address the cause of drought, deforestation, and soil erosion.

Question 20

How does urban poverty differ from rural poverty?

Answer 20

Urban poverty involves slum living and informal labor, while rural poverty is tied to landlessness and seasonal work.

Question 21

What are the two broad strategies for poverty alleviation?

Answer 21

Economic growth promotion and targeted anti-poverty programs.

Question 22

What is the main factor responsible for the reduction of poverty in each Indian State?

Answer 22

(i) Punjab / Haryana - high agricultural growth rates
(ii) Kerala - human resource development.
(iii) West Bengal - land reform measures
(iv) Tamil Nadu / Andhra Pradesh - PDS of food grains

Question 23

Which Indian states had the highest poverty ratios in 2011-12?

Answer 23

Bihar and Odisha.

Question 24

How do interstate disparities affect poverty in India?

Answer 24

Some states like Punjab and Kerala have low poverty due to agricultural and human development initiatives, whereas states like Bihar and Odisha have high poverty due to lack of industrialization and education.

Question 25

Which countries have seen the greatest reduction in poverty?

Answer 25

China and Southeast Asian nations.

Question 26

What role do self-help groups (SHGs) play in poverty reduction?

Answer 26

Self-help groups (SHGs) empower poor individuals, especially women, by providing small loans, financial training, and support for starting small businesses.

Question 27

How many people in India lived in poverty in 2011-12?

Answer 27

Approximately 270 million (27 crore) people.

Question 28

Why is human poverty a broader concept than economic poverty?

Answer 28

Human poverty includes not only lack of income but also deprivation in health, education, gender equality, and social respect. It considers whether people have access to basic services, dignity, and opportunities to improve their lives.

Question 29

What challenges exist in the implementation of poverty alleviation programs?

Answer 29

- **Lack of proper implementation** and **right targeting**. - **Overlapping of schemes**, leading to inefficiency. - Benefits **do not fully reach** the deserving poor. - Recent emphasis on **proper monitoring** of all **poverty alleviation programmes**.

Question 30

What is the poverty line?

Answer 30

An income level below which a person is considered poor.

Question 31

What impact does poor health have on poverty?

Answer 31

Illness reduces the ability to work and increases medical expenses.

Question 32

What is the Swarnajayanti Gram Swarozgar Yojana (SGSY)?

Answer 32

A scheme to organize poor families into self-help groups.

Question 33

How is the poverty line determined in India? (5 m)

Answer 33

1. While determining the **poverty line** in India, a **minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirement**, etc., are determined for **subsistence**. 2. These **physical quantities** are multiplied by their **prices in rupees**. 3. The present formula for **food requirement** while estimating the **poverty line** is based on the **desired calorie requirement**. 4. The **calorie needs** vary depending on **age, sex,** and the **type of work** that a person does. 5. The accepted **average calorie requirement** in India is **2400 calories** per person per day in **rural areas** and **2100 calories** per person per day in **urban areas**.

Question 34

How can financial inclusion help in poverty reduction?

Answer 34

Access to banking services, credit, and insurance helps poor individuals save money, invest in businesses, and protect against financial shocks, reducing vulnerability to poverty.

Question 35

What is the main topic of the chapter?

Answer 35

Poverty as a challenge in India and globally.

Question 36

What impact does inflation have on poverty?

Answer 36

Rising prices reduce the purchasing power of the poor, making basic necessities unaffordable. Inflation can worsen poverty if wages do not rise at the same rate as living costs.

Question 37

What is the United Nations' Sustainable Development Goal related to poverty?

Answer 37

Ending poverty in all forms by 2030.

Question 38

What role does population growth play in poverty?

Answer 38

It reduces per capita income and increases dependency.

Question 39

What is social exclusion? Explain why.

Answer 39

1. **Definition**: **Social exclusion** refers to individuals or groups being **denied facilities, benefits, and opportunities** available to others. 2. **Poverty and social exclusion**: **Poverty** is linked to the **poor living in poor surroundings** and being **excluded from social equality**. 3. **Cause and consequence**: **Social exclusion** is both a **cause and a consequence of poverty**. 4. **Exclusion from benefits**: It means certain groups **do not get access to facilities, benefits, and opportunities** that others enjoy. 5. **Typical Example - caste system**: In **India**, the **caste system excludes certain castes** from **equal opportunities**. 6. **Worse than low income**: **Social exclusion** can cause **greater harm** than just having a **low income**.

Question 40

Explain what is vulnerability to poverty?

Answer 40

1. **Definition**: **Vulnerability to poverty** refers to the **greater probability of certain communities or individuals becoming or remaining poor** in the future. - **Example**: **Handicapped, widows, and backward classes**. 2. **Factors influencing vulnerability**: It depends on **assets, education, health, and job opportunities** available to these groups for **alternative living**. 3. **Risks faced**: **Vulnerability increases** due to greater **risks** during events like **natural disasters, terrorism, or economic crises**. 4. **Impact during hardships**: **Vulnerable groups** are **more adversely affected** than others during **difficult times**, such as **floods, earthquakes, or job shortages**.

Question 41

Explain the Global Poverty Scenario. (5m)

Answer 41

1. China and Southeast Asian countries saw a substantial decline in poverty due to rapid economic growth and massive investments in human resource development. 2. In South Asia (India, Pakistan, Sri Lanka, Nepal, Bangladesh, Bhutan, Afghanistan, and Maldives), the decline in poverty has also been rapid. 3. In Sub-Saharan Africa, poverty declined. 4. In Latin America and the Caribbean, the poverty ratio has increased. 5. Poverty has also resurfaced in some of the former socialist countries like Russia, where officially it was non-existent earlier.

Question 42

What are some common indicators of poverty?

Answer 42

Hunger, lack of shelter, illiteracy, unemployment, poor health, malnutrition, and child labor.

Question 43

How does the poverty line vary across countries?

Answer 43

The poverty line differs from country to country based on cost of living, development level, and economic conditions. For example, what is considered poverty in the U.S. (not owning a car) might be a luxury in India.

Question 44

What is the Rural Employment Generation Programme (REGP)?

Answer 44

A program launched in 1995 to create self-employment in rural areas.

Question 45

What is the Pradhan Mantri Gramodaya Yojana (PMGY)?

Answer 45

* Aims to create self-employment opportunities for educated unemployed youth in rural areas and small towns. * Helps individuals in setting up small businesses and industries.

Question 46

What are some issues faced by poor urban workers?

Answer 46

Urban workers, like rickshaw pullers, construction laborers, and domestic helpers, often work in informal jobs with no job security, low wages, and poor working conditions. Many live in overcrowded slums with inadequate sanitation and healthcare.

Question 47

What are the **Anti-Poverty Measures** mentioned, and their aims?

Answer 47

1. **Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005** - Aims to provide **100 days of wage employment** to every household to ensure **livelihood security** in **rural areas**. - Focuses on **sustainable development** to address **drought**, **deforestation**, and **soil erosion**. - **One-third** of the proposed jobs are **reserved for women**. 2. **Prime Minister Rozgar Yozana (PMRY), 1993** - Aims to create **self-employment opportunities** for **educated unemployed youth** in **rural areas** and **small towns**. - Helps individuals in **setting up small businesses and industries**. 3. **Rural Employment Generation Programme (REGP), 1995** - Aims to create **self-employment opportunities** in **rural areas** and **small towns**. - **Target** of **creating 25 lakh new jobs** under the **Tenth Five-Year Plan**. 4. **Swarnajayanti Gram Swarozgar Yojana (SGSY), 1999** - Aims at **lifting poor families above the poverty line** by organizing them into **Self Help Groups (SHGs)**. - Provides a mix of **bank credit** and **government subsidy**. 5. **Pradhan Mantri Gramodaya Yozana (PMGY), 2000** - Provides **additional central assistance** to states for **basic services**, including: - **Primary health** - **Primary education** - **Rural shelter** - **Rural drinking water** - **Rural electrification** 6. **Antyodaya Anna Yozana (AAY)** - Aimed at providing **subsidized food** to the **poorest of the poor**.

Question 48

Who are the poorest of the poor?

Answer 48

1. There is also **inequality of incomes** within a **family**. 2. In **poor families**, all **suffer**, but some **suffer more** than others. 3. In some cases, **women, elderly people,** and **female infants** are denied **equal access to resources** available to the family.

Question 49

World Bank uses a uniform standard for the poverty line minimum available at the equivalent of _______?

Answer 49

$ 2.15 per person per day

Question 50

Why did the number of poor remain high despite a decline in the poverty ratio?

Answer 50

Due to population growth.

Question 51

What is the Antyodaya Anna Yojana (AAY)?

Answer 51

A scheme providing subsidized food grains to the poorest families.

Question 52

What role does education play in poverty alleviation?

Answer 52

It improves job prospects and economic mobility.