Poverty Indian Economic Class 12 Notes

1) Poverty

Poverty refers to a condition in which individuals or groups lack the basic necessities of life, including food, clothing, shelter, education, and access to healthcare. People who are unable to meet these basic needs are considered poor.

• Who is considered poor?
  • Poor in Urban Areas: Urban poverty is often characterized by inadequate housing, limited access to sanitation, poor health conditions, and unemployment. The poor in cities often live in slums and informal settlements, where there is overcrowding, a lack of infrastructure, and poor living standards.
  • Poor in Rural Areas: In rural areas, poverty is often linked to landlessness, low agricultural productivity, and limited access to healthcare, education, and markets. Farmers with small landholdings, agricultural laborers, and tribal communities are particularly vulnerable to poverty.

2) Characteristics of the Poor

• Poor Health: The poor are often unable to afford proper healthcare services, leading to untreated illnesses, chronic health conditions, and high mortality rates. Malnutrition, lack of clean water, and sanitation contribute to poor health.
• Hunger, Starvation & Malnutrition: Lack of access to sufficient and nutritious food results in hunger, starvation, and malnutrition. Poor nutrition particularly affects children, leading to stunted growth, weak immunity, and developmental delays.
• Lack of Electricity & Water Facilities: Many poor households lack basic utilities like electricity and clean water. This hampers their ability to improve their living conditions, access education, and engage in productive economic activities.
• Gender Inequality: In poor households, women often have limited access to education, employment, and healthcare. They are often discriminated against in decision-making and have fewer opportunities to escape poverty.
• Bigger Families: Poor families often have larger numbers of children, which puts greater pressure on their limited resources. Larger families exacerbate poverty, as the per capita resources available for each member are smaller.
• Debt Trap: The poor often fall into a cycle of debt due to their inability to save and their reliance on borrowing to meet basic needs. They borrow money at high interest rates, which leads to further financial burdens, keeping them trapped in poverty.

3) Measures of Poverty

• Relative Poverty: This is a measure of poverty based on an individual’s or group’s standard of living about others in society. It highlights inequality, focusing on the disparity in income and access to resources.
  • Importance: Relative poverty helps in understanding social inequality and the relative deprivation of certain groups compared to the average standard of living.
  • Limitation: It does not define a concrete threshold of poverty and may vary across regions and societies, making it difficult to compare poverty levels globally.
• Absolute Poverty: Absolute poverty refers to the condition where people lack the necessities of life, such as food, shelter, and clean water. It is measured by the poverty line, which sets the minimum income required to meet these basic needs.
  • Importance: Absolute poverty provides a clear benchmark for identifying individuals and families in poverty. It helps in the design of targeted poverty alleviation programs.
  • Limitation: Absolute poverty may not account for changes in society’s overall living standards over time. As income levels rise in a country, the poverty line may need to be adjusted.

Environment and Sustainable Development Class 12 Notes

4) Concept of Poverty Line

The poverty line is the threshold below which people are considered to be poor, based on their income or consumption levels. It is typically linked to the minimum amount of calories and other essential needs that a person must consume to survive.

• Minimum Calorie Intake: The poverty line is often calculated based on the minimum number of calories a person needs to consume daily, usually set at 2,400 calories for an average adult.
• Monetary Value of Minimum Calories Intake: The monetary value of the minimum calorie intake is calculated to determine the income level that is required to afford the necessary food.
• Kinds of Poor:
  • Absolutely Poor: People who are unable to meet the basic necessities of life like food, shelter, and clothing.
  • Very Poor: Individuals who live well below the poverty line, face severe deprivation.
  • Poor: Those who are just above the poverty line but still struggle to meet all their needs.

5) Types of Poverty

• Chronic Poor: These individuals remain in poverty over a long period due to factors like ill health, lack of education, and limited access to resources. Their condition persists even during periods of economic growth.
• Transient Poor: These individuals experience poverty temporarily due to sudden setbacks such as unemployment, natural disasters, or economic recessions. They can escape poverty once the situation improves.
• Non-poor: These are individuals who have enough resources and income to meet their needs and maintain a decent standard of living. They are not considered poor.

6) Causes of Poverty

• Inequalities of Income: A highly unequal distribution of income leads to poverty, as a small portion of the population controls most of the wealth, leaving the majority in poverty.
• High Illiteracy Rate: Low levels of education restrict individuals’ access to better job opportunities, perpetuating poverty. Illiteracy hinders social mobility and economic development.
• Population Explosion: A rapidly growing population increases the demand for resources, reducing per capita availability and increasing competition for jobs, food, and housing.
• High Level of Unemployment: High unemployment means a large portion of the population does not have access to income, leading to poverty.
• Inflation: Rising prices increase the cost of living, making it difficult for the poor to afford basic necessities. Inflation erodes their purchasing power, worsening their poverty.
• Low Level of Economic Development: In countries with low economic growth, there are fewer opportunities for individuals to improve their living standards, which leads to widespread poverty.

7) Measures to Remove Poverty

• Combating Poverty through GDP Growth: Economic growth increases employment opportunities, raises income levels, and improves access to resources, thereby reducing poverty.
• Combating Poverty by Improving Distribution of Income:
  • Fiscal Measures: Progressive taxation, subsidies, welfare programs, and social transfers help redistribute wealth and support the poor.
  • Legislative Measures: Laws that protect workers’ rights, ensure fair wages, and promote social justice can help reduce income inequality and poverty.
  • Combating Poverty through Population Control: Measures to control population growth, such as family planning programs, can reduce pressure on resources and help alleviate poverty.
  • Other Measures Enhancing Quality of Life of Poor: Ensuring access to basic services like healthcare, education, and sanitation can improve the quality of life for the poor, breaking the cycle of poverty.

8) Eradication of Unemployment

Eradicating unemployment involves creating job opportunities, enhancing skills, and improving economic conditions. Employment generation is crucial to reducing poverty, as it provides people with the income needed to improve their living standards.

9) Special Focus on Backward Regions

Backward regions, which lag in economic development and face higher levels of poverty, require special attention. The government can focus on infrastructure development, education, and healthcare to reduce regional disparities.

10) Labour Intensive Technique of Production

Using labor-intensive techniques, rather than capital-intensive methods, can create more employment opportunities for the poor. This approach can be particularly effective in developing countries with high levels of unemployment.

11) Provisions for Minimum Needs of the Poor

The government can provide basic needs such as food, healthcare, education, and housing to improve the standard of living of the poor. Minimum needs programs aim to ensure that everyone has access to these essential services.

12) Measures Adopted by the Government to Remove Poverty (Poverty Alleviation Programs)

• SGSY (Swarna Jayanti Gram Swarozgar Yojna): Aimed at providing self-employment opportunities for the rural poor, this scheme focuses on developing micro-enterprises.
• NRLM (National Rural Livelihood Mission): Aims to alleviate rural poverty through sustainable livelihood opportunities, improving income-generating activities for the rural poor.
• SGRY (Sampoorna Gramin Rozgar Yojna): Focuses on providing employment to rural households by creating infrastructure and providing wage employment.
• PGY (Pradhanmantri Gramodya Yojna): Focuses on improving rural infrastructure, education, healthcare, and access to basic amenities.
• JPRGY (Jaya Prakash Rozgar Guaranteed Yojna): Provides employment in rural areas through the creation of productive assets.
• SJSRY (Swarna Jayanti Shahri Rozgar Yojna): Focuses on providing employment and self-employment opportunities in urban areas.
• PMRY (Prime Minister Rozgar Yojna): Provides employment opportunities through self-employment schemes, mainly for educated unemployed youth.
• Minimum Needs Programme: Focuses on meeting the basic needs of the poor, including access to food, clean water, and basic healthcare.
• Development of Small & Cottage Industries: Promotes small-scale industries to generate employment and income in rural and urban areas.
• MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): Guarantees 100 days of wage employment to rural households.
• Twenty Point Programme: Aimed at improving living standards through a comprehensive set of measures focused on education, health, and poverty alleviation.
• MUDRA Bank (Micro Units Development Refinance Agency Bank): Provides financing to small and micro businesses to promote entrepreneurship and job creation.

These measures, along with continued economic growth and social welfare policies, aim to reduce poverty and improve the living conditions of the poor in India.

This was all about Poverty Indian Economics Class 12 Notes. If you have any doubts, you can either join my telegram channel or ask your doubts in the comments section.