plus one economics notes

HSSLIVE Plus One Economics Chapter 4: Poverty Notes

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Poverty in India has been a persistent challenge despite decades of economic growth, reflecting deep structural inequalities. The measurement of poverty has evolved from calorie-based approaches to multidimensional perspectives that consider education, health, and living standards. While absolute poverty has declined significantly since the 1970s, rural areas continue to experience higher poverty rates than urban regions, with considerable interstate variations. Government initiatives to address poverty include targeted programs like the National Rural Employment Guarantee Act (MGNREGA), Public Distribution System (PDS), and various social security schemes, though their implementation effectiveness varies across states.

Chapter 4: Poverty

Poverty is one of the most persistent challenges facing India since independence. It represents not just a lack of income but multidimensional deprivation including inadequate access to food, shelter, education, healthcare, and basic amenities.

Concept of Poverty:

  • Absolute poverty: Inability to meet basic minimum needs
  • Relative poverty: Economic status compared to others in society
  • Social exclusion: Denial of equal opportunities
  • Vulnerability: Exposure to risks and inability to cope with shocks

Measurement of Poverty in India:

  • Poverty Line Approach: Based on minimum consumption expenditure required to meet basic needs
  • Calorie-based approach: 2,400 calories per person per day in rural areas and 2,100 calories in urban areas
  • Expert committees (Alagh, Lakdawala, Tendulkar, Rangarajan) have redefined poverty lines over time
  • Multidimensional Poverty Index (MPI): Considers education, health, and standard of living

Trends in Poverty:

  • Decline in poverty ratios from about 55% in 1973-74 to around 22% in 2011-12 (as per Tendulkar methodology)
  • Absolute number of poor declined from about 320 million to 270 million during the same period
  • Rural poverty higher than urban poverty
  • Wide interstate variations with higher poverty in states like Bihar, Jharkhand, Odisha, and Uttar Pradesh
  • Recent estimates suggest further reduction in poverty rates

Causes of Poverty:

  • Historical factors: Colonial exploitation and uneven development
  • Low agricultural productivity and rural indebtedness
  • Unequal distribution of land and assets
  • Population growth exceeding economic growth
  • Unemployment and underemployment
  • Ineffective implementation of anti-poverty programs
  • Social factors: caste system, gender discrimination
  • Natural disasters and environmental degradation

Anti-Poverty Programs:

  1. Self-Employment Programs:
    • Swarnajayanti Gram Swarozgar Yojana (SGSY)
    • National Rural Livelihood Mission (NRLM)
    • Prime Minister’s Employment Generation Programme (PMEGP)
  2. Wage Employment Programs:
    • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
    • Provides legal guarantee of 100 days of employment to rural households
  3. Food Security Programs:
    • Public Distribution System (PDS)
    • Antyodaya Anna Yojana (AAY)
    • National Food Security Act, 2013
  4. Social Security Programs:
    • National Social Assistance Programme (NSAP)
    • Pradhan Mantri Jan Dhan Yojana
    • Ayushman Bharat (health insurance)
  5. Minimum Needs Programs:
    • Pradhan Mantri Awas Yojana (housing)
    • Swachh Bharat Mission (sanitation)
    • Jal Jeevan Mission (drinking water)

Critical Evaluation of Anti-Poverty Programs:

  • Leakages and corruption in implementation
  • Poor targeting and identification of beneficiaries
  • Lack of coordination among various programs
  • Inadequate funding and delayed disbursement
  • Bureaucratic inefficiencies and high administrative costs
  • Limited community participation

Way Forward:

  • Economic growth with focus on labor-intensive sectors
  • Land reforms and asset redistribution
  • Enhancing agricultural productivity and rural infrastructure
  • Strengthening social protection systems
  • Improving quality of education and healthcare
  • Empowering women and marginalized groups
  • Leveraging technology for better targeting and transparency
  • Convergence of various anti-poverty programs
  • Participatory planning and implementation

Poverty reduction remains central to India’s development agenda. While significant progress has been made over the decades, the challenge of eliminating extreme poverty and reducing inequality requires sustained effort, innovative approaches, and effective governance.

Complete Chapter-wise Hsslive Plus One Economics Notes

Our HSSLive Plus One Economics Notes cover all chapters with key focus areas to help you organize your study effectively:

Economics: Indian Economic Development

Economics: Statistics for Economics

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