poverty
• Poverty may be defined as the state of not having
enough money to afford the basic needs to live
such as food, clothing, and shelter" or it can be
put in other way like the state of having some to
no money, and few or no material possessions.
With both of these definitions, poverty can be
described in many different ways. Some attempts
to reduce it to numbers, while others argue that a
more ambiguous definition must be used. Today,
most economists and social workers use two
ways in defining poverty, "absolute poverty" and
"relative poverty".
Two types of poverty
ABSOLUTE POVERTY
RELATIVE POVERTY
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• When defining poverty in a
relative state, "people are in
poverty when they fall behind, by
more than a certain degree, from
the average income and life style
enjoyed by the rest of the society
in which one lives". People living
in "relative poverty" are placed in
poverty because the income in
which they live under is below a
certain income threshold. There
are people and families living in
poverty in relative terms, but may
have all the basic necessities to
live a healthy lifestyle.
Absolute poverty" is defined by
Encarta online dictionary, as the
measure of the number of people
living below a certain income
threshold or the number of
households unable to afford certain
basic goods and services. In India,
absolute poverty is used with an
official poverty line set in Rupees
and representing the
monthly/annually income required
to allow a family of a given size to
purchase the range of goods and
services that are seen as
constituting the minimum
acceptable way of life in India
CAUSES OF POVERTY
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UNEMPLOYMENT
INFLATION
POOR MANAGEMENT OF RESOURCES
GOVERNMENT POLICY
UNDER EDUCATION
DEBT
CORRUPTION
EXTREME WEATHER
EPIDEMIC DESIESE
AUTOMATION TECHNOLOGICAL DEVLOPMENT
OVER POPPULATION
POVERTY IN INDIA
• Two-thirds of people in India live in poverty: 68.8% of the
Indian population lives on less than $2 a day. Over 30%
even have less than $1.25 per day available - they are
considered extremely poor. This makes the Indian
subcontinent one of the poorest countries in the
world; women and children, the weakest members of Indian
society, suffer most. The highly contrasted country has
enjoyed growth rates of up to 10% over many years and is
one of the largest economies in the world, with a gross
domestic product (GDP) of 1,644 billion US dollars. But only
a small percentage of the Indian population has benefited
from this impressive economic boom so far, as the majority
of people in India are still living in abject poverty.
Below poverty line
• The poverty line was originally fixed in terms of income food
requirements in 1978. It was stipulated that the calorie
standard for a typical individual in rural areas was 2400 calorie
and was 2100 calorie in urban areas. Then the cost of the
grains (about 650 gms) that fulfill this nor ative standard was
calculated.
• This cost was the poverty line. In 1978, it was Rs. 61.80 per
person per month for rural areas and Rs. 71.30 for urban
areas. Since then the Planning Commission calculates the
poverty line every year adjusting for inflation.
• The Planning Commission on September 20, 2011 told the
Supreme Court that the BPL population in the country is 40.74
crore and the poverty line for the urban and rural areas could
be provisionally placed at Rs. 965 per capita per month
(around Rs. 32 per day) and Rs.781 per capita per month
(around Rs. 26 per day) respectively.
Below poverty line (contd.)
• Planning Commission on March 19, 2012 further
reduced the poverty line to Rs. 28.65 per capita daily
consumption in cities and Rs. 22.42 in rural areas,
scaling down India's poverty ratio to 29.8% in 2009-10.
An individual above a monthly consumption of Rs.
859.6 (Rs. 10,315/annum) in urban and Rs. 672.8
(Rs.8073.6/annum) in rural areas is not considered
poor as per the controversial formula (Fisher index)
• Further, poverty in rural areas declined at a faster pace
than in urban cities between 2004-05 and 2009-10.
VARIOUS COMMITTES FORMED
• Two committees under the chairmanship of
Prof. Suresh D. Tendulkar and Dr. N.C. Saxena
have submitted their reports on methodology
for estimation of poverty and methodology for
conducting BPL census in rural areas,
respectively. Further, an expert Group under
the chairmanship of Prof. S.R. Hasim has been
set up to recommend methodology for
identification of BPL families in urban areas.
VARIOUS COMMITTES FORMED
• TENDULKAR COMMITTEE REPORT
• RANGARAJAN COMMITTEE REPORT
TENDULKAR COMMITTEE REPORT
• The Planning Commission constituted an Expert Group
in December 2005 under the chairmanship of Professor
Suresh D. Tendulkar to review the methodology for
estimation of poverty. The Expert Group submitted its
report in December 2009.
• While acknowledging the multidimensional nature of
poverty, the Expert Group recommended moving away
from anchoring poverty lines to the calorie intake norm
to adopting MRP based estimates of consumption
expenditure as the basis for future poverty lines and
MRP equivalent of the urban poverty line basket (PLB)
corresponding to 25.7% urban headcount ratio as the
new reference PLB for rural areas.
TENDULKAR COMMITTEE REPORT
• On the basis of the above methodology, the all-India rural poverty
headcount ratio for 2004-05 was estimated at 41.8 per cent, urban
at 25.7 per cent, and all-India at 37.2 per cent. It may, however, be
mentioned that the Tendulkar Committee’s estimates are not
strictly comparable to the official poverty estimates because of
different methodologies.
• As has been indicated in the Mid Term Appraisal of the Eleventh
Five Year Plan, the revised poverty lines for 2004-05 as
recommended by the Tendulkar Committee have, been accepted by
the Planning Commission. The Tendulkar Committee has specifically
pointed out that the upward revision in the percentage of rural
poverty in 2004-05, resulting from the application of a new rural
poverty line should not be interpreted as implying that the extent
of poverty has increased over time
RANGRAJAN COMMITTEE
• On 23rd May 2012, the Planning Commission constituted
an expert group headed by noted economist C. Rangarajan
to review the Tendulkar Committee methodology for
estimating poverty. “Government has decided to set up an
expert technical group chaired by Chairman of Prime
Minister’s Economy Advisory Council C. Rangarajan to
revisit the methodology for estimation of the poverty and
identification of the poor.
• In June 2014, the findings of the Rangarajan panel report
on poverty estimates states that three out of 10 people in
India are poor. The report has hiked the poverty limit to Rs
47 per day in cities, stating that people spending below that
would be considered poor. The Tendulkar committee report
had fixed the poverty line at Rs 33 per day for urban areas.
RANGRAJAN COMMITTEE
• The Rangarajan report also states that those
spending less than Rs 32 per day in rural areas
would be considered poor. The Tendulkar
committee had pegged the poverty line at Rs
27 a day for rural India.
VARIOUS POVERTY
ERADICATION SCHEMES
LAUNCHED BY GOVERMENT
ICDS
• Launched on 2nd October 1975, today, ICDS
Scheme represents one of the world’s largest
and most unique programmes for early
childhood development. ICDS is the foremost
symbol of India’s commitment to her children
– India’s response to the challenge of
providing pre-school education on one hand
and breaking the vicious cycle of malnutrition,
morbidity, reduced learning capacity and
mortality, on the other.
ICDS
The Integrated Child Development Services (ICDS) Scheme have
following objectives:
• to improve the nutritional and health status of children in the agegroup 0-6 years;
• to lay the foundation for proper psychological, physical and social
development of the child;
• to reduce the incidence of mortality, morbidity, malnutrition and
school dropout;
• to achieve effective co-ordination of policy and implementation
amongst the various departments to promote child development;
and
• to enhance the capability of the mother to look after the normal
health and nutritional needs of the child through proper nutrition
and health education.
National Social Assistance
Programme
• The National Social Assistance Programme (NSAP)
which came into effect from 15th August, 1995
represents a significant step towards the
fulfillment of the Directive Principles in Article 41
of the Constitution. The programme introduced a
National Policy for Social Assistance for the poor
and aims at ensuring minimum national standard
for social assistance in addition to the benefits
that states are currently providing or might
provide in future
National Social Assistance
Programme
• Indira Gandhi National Old Age Pension
Scheme
• Indira Gandhi National Widow Pension
Scheme
• Indira Gandhi National Disability Pension
Scheme
• National Family Benefit Scheme
• Annapurna
SARVA SIKSHA ABHIYAN
• SSA is Government of India's flagship programme
for achievement of Universalization of
Elementary Education (UEE) in a time bound
manner, as mandated by 86th Amendment to the
Constitution of India making free and compulsory
Education to the Children of 6-14 Years age
group, a Fundamental Right.
• SSA is being implemented in partnership with
State Governments to cover the entire country
and address the needs of 192 million children in
1.1 million habitations.
THANK YOU