Chapter 3 Poverty As A Challenge

Overview

This chapter addresses poverty, a significant challenge in independent India. It explores poverty through real-life examples and social science perspectives, utilizing the concept of the poverty line to analyze poverty trends nationally and globally. The chapter delves into the causes of poverty and the government's anti-poverty measures, concluding by expanding the understanding of poverty to include the concept of human poverty.

Two Typical Cases Of Poverty

The chapter illustrates poverty through two distinct case studies:

• Urban Case (Ram Saran): Ram Saran, a daily-wage laborer in Ranchi, struggles to earn enough to support his family of six. His meager income, supplemented by his wife's part-time work and his elder son's earnings, is insufficient for basic needs like adequate food and clothing. His children do not attend school, and they lack access to healthcare. His family lives in a temporary, crowded shack, and he supports his aging parents.
• Rural Case (Lakha Singh): Lakha Singh, from a village near Meerut, belongs to a landless family that relies on odd jobs for big farmers. Work and income are erratic, often paid in kind. His family of eight frequently faces food scarcity and lives in a dilapidated hut. His mother suffers from tuberculosis, a condition exacerbated by lack of medication. Lakha, like his father, never attended school and started working at a young age. Basic necessities like soap and oil are considered luxuries.

These cases highlight the multifaceted nature of poverty, encompassing hunger, lack of shelter, inability to access education and healthcare, absence of clean water and sanitation, lack of regular employment, and a pervasive sense of helplessness and mistreatment.

Poverty As Seen By Social Scientists

Social scientists view poverty through various indicators, including income and consumption levels. Increasingly, they also consider social indicators such as illiteracy, malnutrition, lack of access to healthcare, limited job opportunities, and inadequate access to clean water and sanitation.

Social Exclusion

This concept views poverty as a process where individuals or groups are excluded from opportunities and facilities enjoyed by others, often due to social hierarchies like the caste system. Social exclusion can be both a cause and a consequence of poverty, potentially causing more damage than low income alone.

Vulnerability

Vulnerability to poverty refers to the likelihood of certain communities or individuals becoming or remaining poor in the future. It is influenced by factors like access to assets, education, health, and job opportunities, as well as their ability to cope with risks such as natural disasters or economic downturns.

Poverty Line

The poverty line is a common tool used to measure poverty, based on minimum income or consumption levels necessary to fulfill basic needs. The definition of these needs varies across time and countries. In India, the poverty line is determined by calculating the desired calorie intake (2400 calories per day in rural areas and 2100 in urban areas), multiplied by the prices of essential food items, clothing, footwear, fuel, light, education, and medical requirements. For 2011-12, the poverty line was set at Rs 816 per month for rural areas and Rs 1000 for urban areas.

Poverty Estimates

Poverty ratios in India have declined significantly from about 45% in 1993-94 to 22% in 2011-12. While the poverty ratio has decreased, the number of poor people also declined from 407 million in 2004-05 to 270 million in 2011-12. However, the pace of poverty reduction varies between rural and urban areas.

Vulnerable Groups

Certain social and economic groups are more vulnerable to poverty. These include Scheduled Caste (SC) and Scheduled Tribe (ST) households, as well as rural agricultural labor households and urban casual labor households. While poverty has declined across most of these groups, Scheduled Tribes still face the highest poverty ratios. Within families, women, elderly people, and female infants may also be denied equal access to resources.

Story Of Sivaraman

Sivaraman, an agricultural laborer from Tamil Nadu, faces significant challenges. He works for only part of the year, and his wife earns less for the same work. His family of eight struggles to afford basic necessities, and he prioritizes providing for his son's education and eventual marriage of his daughters over educating them. His mother is ill, and his sister is a financial burden due to the inability to afford a suitable marriage.

Inter-State Disparities

Poverty levels vary considerably across Indian states. States like Bihar and Odisha have the highest poverty ratios, while states like Kerala, Maharashtra, West Bengal, Gujarat, Tamil Nadu, Punjab, and Haryana have achieved greater success in poverty reduction through various strategies such as human resource development, land reforms, and efficient public distribution systems.

Global Poverty Scenario

Globally, the proportion of people living in extreme poverty (less than $1.90 per day) has fallen significantly, but regional disparities persist. China and Southeast Asian countries have seen rapid poverty reduction due to economic growth and investments in human capital. South Asian countries have also experienced a decline, though at a varying pace. Poverty has, however, resurfaced in some former socialist countries.

Causes Of Poverty

Several factors contribute to poverty in India:

• Historical Factors: British colonial policies led to the decline of traditional industries and discouraged industrial development, resulting in low economic growth and limited job opportunities.
• Population Growth: A high population growth rate, combined with low economic growth, kept per capita income low.
• Lack of Job Opportunities: Despite job creation in agriculture and industry, the opportunities were insufficient, leading many to low-paying, irregular jobs in the informal sector, contributing to urban poverty.
• Income Inequalities: Unequal distribution of land and resources, coupled with ineffective land reforms, perpetuates poverty.
• Socio-cultural Factors: High spending on social obligations and religious ceremonies, and indebtedness due to borrowing for agricultural inputs and other needs, exacerbate poverty.

Anti-Poverty Measures

India's anti-poverty strategy focuses on two main planks:

• Promotion of Economic Growth: Higher growth rates, particularly since the 1980s, have significantly contributed to poverty reduction by widening economic opportunities and enabling investment in human development.
• Targeted Anti-Poverty Programmes: Various schemes aim to directly address poverty, including:
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005: Guarantees 100 days of wage employment to rural households, with provisions for women and disadvantaged groups.
  • Prime Minister Rozgar Yojana (PMRY): Promotes self-employment for educated unemployed youth in rural areas and small towns.
  • Rural Employment Generation Programme (REGP): Aims to create self-employment in rural areas and small towns.
  • Swarnajayanti Gram Swarozgar Yojana (SGSY): Organizes poor families into self-help groups to lift them above the poverty line.
  • Pradhan Mantri Gramodaya Yojana (PMGY): Provides additional assistance for basic services in rural areas.
  • Antyodaya Anna Yojana (AAY): Focuses on the poorest of the poor for food security.

While these programs have had mixed results, issues like poor implementation, lack of proper targeting, and overlapping schemes have hindered their effectiveness. Increased emphasis is now placed on program monitoring.

The Challenges Ahead

Despite progress, poverty remains a major challenge in India, with significant disparities across states and social groups. While economic growth, improved education, declining population growth, and women's empowerment are expected to accelerate poverty reduction, the official definition of poverty only captures a minimal subsistence level. The broader concept of human poverty, which includes access to education, healthcare, job security, self-confidence, and freedom from discrimination, needs to be addressed. Eradicating poverty is an ongoing process, with the ultimate goal of ensuring not just income but also dignity and well-being for all.

Exercises

The exercises in this chapter prompt students to understand poverty estimation methods, analyze poverty trends in India and globally, identify vulnerable groups and reasons for poverty, describe government anti-poverty measures, and differentiate between income poverty and human poverty. They also encourage critical thinking about the effectiveness of various programs and the challenges in eradicating poverty.