Poverty as a Challenge Summary Easy Explanation

Class 9 (Economics) Chapter 3: Poverty as a Challenge Summary

1. Introduction

• Around 270 million people in India were poor in 2011–12—about one in every five persons.
• Poverty is widespread: seen in both rural areas (landless labourers) and urban areas (slum dwellers, daily wage earners, beggars).
• India has the largest concentration of poor in the world.

2. Two Real-Life Cases

Urban Case – Ram Saran (Ranchi, Jharkhand)

• Daily wage labourer earning ₹1,500/month (when employed).
• Lives in poor housing; family lacks food, clothing, education, and healthcare.
• Children do not attend school; undernourishment is common.

Rural Case – Lakha Singh (Village near Meerut, Uttar Pradesh)

• No land; irregular low-paying farm jobs.
• Family can’t manage two meals daily.
• No education or healthcare due to poverty.

Dimensions of Poverty (Highlighted by both cases):

• Hunger, malnutrition, no shelter or healthcare
• Lack of education and clean water
• No steady income or job
• Deep sense of helplessness and exclusion

3. Understanding Poverty: Social Perspective

• Earlier: Focus on income and consumption levels.
• Now includes: Illiteracy, malnutrition, joblessness, lack of healthcare, sanitation, and safe drinking water.

Social Exclusion:

• Poor people are excluded from opportunities (e.g., caste-based discrimination).

Vulnerability:

• Certain groups (e.g., widows, disabled, backward castes) are more likely to fall into poverty.
• Vulnerability is about how risk and exposure can make one poor in the future.

4. Poverty Line

• A person is considered poor if their income or consumption is below a minimum level.
• Poverty line changes with time, place, and country.
• In India:
  • 2400 calories/day in rural areas; 2100 calories/day in urban areas.
  • 2011–12 threshold:
    • Rural: ₹816/month
    • Urban: ₹1000/month
• Surveys conducted by NSSO every 5 years.
• International comparison uses $1.90/day (PPP, 2011).

5. Poverty Trends in India

Year	Poverty Ratio (Overall)	Number of Poor (millions)
1993–94	45%	404 million
2004–05	37%	407 million
2011–12	22%	270 million

• Although the poverty ratio dropped, the number of poor remained high for some years.

6. Vulnerable Groups in India

• Highest poverty among:
  • Scheduled Tribes (43%)
  • Urban casual labourers (34%)
  • Rural agricultural labourers (34%)
  • Scheduled Castes (29%)
• Intra-family inequality: Women, elderly, and girls often suffer more.

7. Story of Sivaraman (Tamil Nadu)

• Works part-time with his wife; irregular income.
• Daughters do not attend school.
• Struggles with health issues and gender inequality in his household.

8. Inter-State Disparities

• High poverty states: Bihar (33.7%), Odisha (32.6%), Assam, Uttar Pradesh.
• Low poverty states: Kerala, Punjab, Haryana, Andhra Pradesh.

Reasons for success in some states:

• High agricultural growth (Punjab, Haryana)
• Land reforms (West Bengal)
• Human development (Kerala)
• Public food distribution (Andhra Pradesh, Tamil Nadu)

9. Global Poverty Scenario

• Global poverty (living on less than $2.15/day):
  • Fell from 16.3% (2010) to 9.05% (2019)
• China: Decline from 2.1% (2014) to 0.1% (2020)
• South Asia: 12.8% (2017) to 10.9% (2021); India: 11.9% (2021)
• Sub-Saharan Africa: Remains the poorest region.
• Latin America and Russia: Slight rise or reappearance of poverty.
• UN’s goal: End poverty by 2030

10. Causes of Poverty in India

• Historical: Exploitation under British rule.
• Slow economic growth, rapid population growth.
• Unequal land distribution, ineffective land reforms.
• Lack of jobs, especially in urban areas.
• Social expenses (ceremonies, rituals) leading to indebtedness.

11. Anti-Poverty Measures

Two-fold strategy:

1. Promoting Economic Growth
2. Targeted Government Schemes

Major Programmes:

• MGNREGA (2005): 100 days wage employment; aimed at women’s participation and rural development.
• PMRY (1993): Self-employment for educated youth.
• REGP (1995): Rural employment creation.
• SGSY (1999): SHGs and bank credit for poor families.
• PMGY (2000): Basic services like health, education, drinking water.
• AAY: Subsidized food to the poorest.

Challenges:

• Poor implementation
• Overlapping schemes
• Targeting errors and leakages

12. The Challenges Ahead

• Although poverty has declined, disparities remain.
• Special focus needed on:
  • Elementary education
  • Health and nutrition
  • Women’s empowerment
  • Job creation in rural areas
• Shift focus from “income poverty” to “human poverty”:
  • Education, health, housing, job security, dignity, and equality.