POVERTY AS A CHALLENGE

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Overview

• Poverty, a formidable challenge that has plagued independent India since its inception, is a topic that warrants our attention. In this article, we will delve into the various dimensions of poverty, its manifestations in the social sciences, and its global context. We’ll also explore the concept of the poverty line, dissect the root causes of poverty, and examine the anti-poverty measures implemented by the government. Finally, we will broaden our understanding of poverty by delving into the realm of human poverty. Join us on this insightful journey through the intricate web of poverty in India.

Introduction

• We frequently encounter poverty in various forms, from landless laborers in villages to overcrowded urban slums, daily wage laborers, and even child workers. Beggars with tattered clothing and children in need are a common sight. Shockingly, about one in every five individuals in India, roughly 270 million people as of 2011-12, lives in poverty, making India home to the world’s largest concentration of the impoverished. This sobering reality underscores the urgent need to address this pervasive challenge and improve the lives of millions of our fellow citizens.

Ram Saran’s Case: Urban Poverty

• The primary economic problem is evident in Ram Saran’s life as a daily-wage laborer in Jharkhand. His irregular income averaging around Rs 1,500 per month is insufficient to sustain his family of six, including four children and elderly parents who depend on him. With meager earnings, they struggle to afford an adequate diet, basic clothing, and education for their children. The economic hardship also extends to limited access to healthcare, leaving them vulnerable to health-related challenges. This narrative underscores the pervasive economic struggle faced by families like Ram Saran’s, trapped in a cycle of poverty with limited means to improve their economic prospects.

Lakha Singh Case: Rural Poverty

• Lakha Singh life epitomizes poverty in a small Uttar Pradesh village. Without land ownership, his family relies on uncertain, meager income from sporadic farm jobs, often receiving minimal wages or in-kind payments. Struggling to secure two daily meals, they inhabit a modest hut on the village outskirts, and the women collect fodder and firewood for extra income. Tragically, Lakha’s father succumbed to a lack of healthcare, and now his mother battles the same illness. This narrative poignantly illustrates the enduring poverty faced by Lakha and his family.

Poverty and Its Dimensions

• Poverty includes hunger, inadequate shelter, and lack of access to education and healthcare.
• It leads to a scarcity of stable employment and clean water.
• Economic challenges are a significant part of poverty.
• Mahatma Gandhi emphasized liberating the poorest from human suffering as a key aspect of true independence in India.

Social Exclusion

• Poverty often causes social exclusion, isolating the poor.
• This denies them equality and opportunities.
• Exclusion can cause and result from poverty.
• It deprives individuals of facilities and benefits.
• The Indian caste system exemplifies this.
• It can be more harmful than low income.

Vulnerability to Poverty

• Vulnerability to poverty: Likely for specific communities or individuals.
• Depends on options, education, health, jobs.
• Assessed for risks in disasters, terrorism.
• Considers social, economic ability.
• Greater impact during adverse events.

According to Social Scientists

• Poverty is analysed using diverse indicators.
• Traditionally focused on income and consumption levels.
• Contemporary approach considers social indicators: illiteracy, malnutrition, healthcare access, job opportunities, water, sanitation.
• Increasing emphasis on assessing poverty via social exclusion and vulnerability.

So,What is Poverty?

• The Nobel Prize winner Indian Economist, Amartya Sen defines poverty as a capability deprivation. This means that poverty is not simply a lack of income or resources, but rather a lack of the ability to function as a human being. Sen argues that poverty should be measured by looking at the capabilities that people lack, such as the ability to eat nutritious food, to get an education, to participate in the political process, and to live a healthy and fulfilling life.

Poverty Line

• The poverty line is a specific income or consumption threshold used to determine who is considered poor and who is not. It represents the minimum level of income or consumption required to meet basic needs such as food, shelter, clothing, and healthcare. The poverty line varies from country to country and may change over time to account for economic conditions and societal norms. People with incomes or consumption levels below the poverty line are typically classified as living in poverty, while those above it are not.

Poverty Line in India

• Poverty line in India based on essential needs.
• Includes food, clothing, footwear, fuel, education, and medical requirements.
• Food requirement calculated using calorie needs.
• Average calorie requirement: 2400 calories in rural areas, 2100 in urban areas.
• Rural areas have higher calorie needs due to physical work.
• Poverty line adjusted over time for price increases.
• The poverty line is defined as the minimum income or consumption expenditure required to meet basic needs.
• The poverty line is set differently for rural and urban areas.
• The current poverty line in rural areas is 1,059.42 Indian rupees (62 PPP USD) per month.
• The current poverty line in urban areas is 1,286 Indian rupees (75 PPP USD) per month.
• The poverty line is calculated using a basket of goods and services that are considered essential for basic needs.
• The poverty line is updated periodically to reflect changes in prices and living standards.
• The number of people living below the poverty line in India has declined significantly over the past few decades, but there are still millions of people living in poverty.

India’s Success: Declining Poverty Rates in India

• Significant decline in poverty rates in India:
• – 45% in 1993-94
• – 37.2% in 2004–05
• – Approximately 22% in 2011–12
• – Ongoing trend suggests further reduction, possibly below 20%.
• – Number of poor decreased from 407 million in 2004–05 to 270 million in 2011–12.
• – Average annual decline of 2.2 percentage points from 2004–05 to 2011–12.
• – Earlier decades (1973–1993) also saw a decrease in poverty rates.

Poverty in India: A Multifaceted Problem

• Social Groups and Vulnerability 
• Not all communities in India share the same fate when it comes to poverty. Scheduled Caste and Scheduled Tribe households stand out as the most vulnerable groups.
• These communities face a double disadvantage, compounded by their social and economic circumstances.

Economic Struggles

• Poverty extends beyond social groups; it also plagues various economic categories.
• Shockingly, 43 out of 100 people belonging to Scheduled Tribes cannot meet their basic needs, reflecting the severity of the issue.
• Rural agricultural labor households and urban casual labor households are among the most vulnerable.
• Urban areas are not exempt, with 34% of casual workers living below the poverty line.

Inequality Within Families

• Poverty doesn’t affect all family members equally. In impoverished families, some individuals suffer more than others.
• Women, the elderly, and female infants often face unequal access to available resources within the family unit.

Sivaraman’s Struggle

• Originally an Arunthathiyar, or cobbler by caste, Sivaraman now works as an agricultural laborer, earning Rs 160 per day. However, this opportunity lasts only five to six months annually. During the off-season, he takes on odd jobs within the town. Sivaraman’s family consists of eight members, including his 65-year-old widowed mother, who requires daily assistance. There’s also his 25-year-old unmarried sister and four children, ranging from 1 to 16 years old. Notably, none of his daughters attend school due to financial constraints. Providing for books and education is currently beyond their means. Sivaraman faces a dilemma regarding his daughters’ education. While he aspires to send his son to school when the time is right, the financial burden of arranging marriages for his daughters looms in the future. This dual challenge forces him to prioritize marriage over education. Within the family, there are challenges. His unmarried sister doesn’t get along with his wife, Sasikala, adding tension to their household. Sasikala herself faces difficulties in finding work and is paid less than Sivaraman for similar tasks. Despite the hardships, Sivaraman’s family strives to meet their basic needs. Arranging two meals a day can be challenging, but they manage. Occasionally, Sivaraman treats his son to milk, a small luxury within their means.

What Can Be Learnt from Sivaraman’s Story?

• Sivaraman’s poverty mirrors the struggles of many impoverished individuals in India.
• Seasonal employment and limited income are common challenges.
• Difficult choices, like prioritizing marriage over education, resonate with other families in similar situations.
• His story reflects the broader issue of poverty in India, emphasizing the need for comprehensive poverty alleviation measures.
• Sivaraman’s resilience represents the determination of countless Indians to overcome economic adversity and build a better future.

Inter-State Disparities

• India’s poverty levels differ significantly from state to state.
• Some states, like Madhya Pradesh, Assam, Uttar Pradesh, Bihar, and Odisha, continue to grapple with higher poverty rates.
• Bihar and Odisha stand out as the poorest states, with poverty ratios exceeding 30%.
• Urban poverty is a significant concern in Odisha, Madhya Pradesh, Bihar, and Uttar Pradesh.
• In contrast, states like Kerala, Maharashtra, Andhra Pradesh, Tamil Nadu, Gujarat, and West Bengal have witnessed substantial declines in poverty.
• Punjab and Haryana success in poverty reduction is attributed to high agricultural growth rates.
• Kerala’s focus on human resource development has played a pivotal role in reducing poverty.
• West Bengal’s land reform initiatives have contributed to poverty reduction.
• Andhra Pradesh and Tamil Nadu’s efficient public distribution of food grains has significantly benefited impoverished populations.
• Tailored economic policies are essential to address these disparities and achieve equitable economic growth across all states.

Global Scenario

• Global extreme poverty, defined as living on less than $1.90 per day, has significantly decreased from 36% in 1990 to 10% in 2015.
• However, this reduction is not uniform, with substantial regional variations.
• China and Southeast Asian nations have seen remarkable poverty reduction due to rapid economic growth and investments in human development.
• In China, the percentage of poor people decreased from 88.3% in 1981 to 0.6% in 2019.
• South Asian countries like India, Pakistan, Sri Lanka, Nepal, Bangladesh, and Bhutan have also witnessed a rapid decline in poverty, from 34% in 2005 to 15.2% in 2014.
• Sub-Saharan Africa saw a decrease in poverty from 51% in 2005 to 40.2% in 2018. 
• Latin America’s poverty ratio declined from 10% in 2005 to 4% in 2018.
• Some former socialist countries, like Russia, have experienced a resurgence of poverty that was previously considered non-existent.
• The global poverty scenario underscores the need for region-specific strategies to address poverty effectively.

Causes of Poverty

• Historical factors, including British colonial rule, hindered India’s economic development, particularly in handicrafts and textiles.
• This led to limited job opportunities and slow income growth, aggravated by a rapidly growing population.
• Despite the Green revolution and industrialization, unemployment remained a challenge.
• Income inequality persists due to unequal resource distribution and inadequate land reforms.
• Cultural and economic factors, like spending on social obligations and borrowing for agricultural inputs, contribute to poverty.
• These issues make poverty a complex challenge in both rural and urban India.

Ways to deal with Poverty?

• Promote Economic Growth: Continued emphasis on economic growth is essential, as it widens opportunities and provides resources for investment in human development.
• Invest in Human Development: Economic growth should be accompanied by investments in education and healthcare to empower individuals and increase their earning potential.
• Targeted Anti-Poverty Programs: Implement and enhance targeted anti-poverty programs to directly address poverty-related challenges.
• Agricultural Sector Development: Focus on improving the agricultural sector to benefit the large rural population dependent on agriculture for their livelihoods.
• Women Empowerment: Empower women by providing equal opportunities and addressing gender disparities in education and employment.

Government Schemes Aimed at Poverty Alleviation

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Provides 100 days of wage employment to rural households, with a focus on livelihood security and sustainable development.
• Prime Minister Rozgar Yojana (PMRY): Aims to create self-employment opportunities for educated unemployed youth in rural areas and small towns.
• Rural Employment Generation Programme (REGP): Focuses on creating self-employment opportunities in rural areas and small towns, with a target of generating new jobs.
• Swarnajayanti Gram Swarozgar Yojana (SGSY): Aims to lift assisted poor families above the poverty line through self-help groups, utilizing bank credit and government subsidies.
• Pradhan Mantri Gramodaya Yojana (PMGY): Provides additional central assistance Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Provides 100 days of wage employment to rural households, with a focus on livelihood security and sustainable development.
• Prime Minister Rozgar Yojana (PMRY): Aims to create self-employment opportunities for educated unemployed youth in rural areas and small towns.
• Rural Employment Generation Programme (REGP): Focuses on creating self-employment opportunities in rural areas and small towns, with a target of generating new jobs.
• Swarnajayanti Gram Swarozgar Yojana (SGSY): Aims to lift assisted poor families above the poverty line through self-help groups, utilizing bank credit and government subsidies.
• Pradhan Mantri Gramodaya Yojana (PMGY): Provides additional central assistance Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Provides 100 days of wage employment to rural households, with a focus on livelihood security and sustainable development.
• Prime Minister Rozgar Yojana (PMRY): Aims to create self-employment opportunities for educated unemployed youth in rural areas and small towns.
• Rural Employment Generation Programme (REGP): Focuses on creating self-employment opportunities in rural areas and small towns, with a target of generating new jobs.
• Swarnajayanti Gram Swarozgar Yojana (SGSY): Aims to lift assisted poor families above the poverty line through self-help groups, utilizing bank credit and government subsidies.
• Pradhan Mantri Gramodaya Yojana (PMGY): Provides additional central assistance to states for essential services such as health, education, shelter, drinking water, and electrification in rural areas.
• Antyodaya Anna Yojana (AAY): Aims to provide highly subsidized food to the poorest families in India.

What are the Challenges?

• Ongoing Challenge: Despite progress, poverty reduction remains one of India’s most significant challenges.
• Regional Disparities: Wide disparities in poverty levels are evident between rural and urban areas as well as among different states.
• Vulnerable Groups: Certain social and economic groups are more susceptible to poverty, highlighting the need for targeted interventions.
• Future Progress: Poverty reduction is expected to improve in the coming years, driven by factors such as higher economic growth, emphasis on universal elementary education, declining population growth, and empowerment of women and economically disadvantaged sections of society.
• Limited Definition: The official definition of poverty focuses on a minimum subsistence level of living rather than a more comprehensive standard of living.
• Human Poverty: Scholars advocate for a broader concept of poverty that includes factors like education, shelter, healthcare, job security, self-confidence, and freedom from discrimination.
• Moving Target: As development progresses, the definition of poverty evolves, making poverty eradication an ongoing challenge.
• Future Challenges: Achieving goals such as providing healthcare, education, job security, gender equality, and dignity for the poor are the next major challenges in the fight against poverty.