Economics ProjectTopic :- Poverty Presented to :- Presented by :-

POVERTY INTRODUCTION

• India’s economic structure has changed dramatically over last 5-6 decades; among the most dynamic economies recently.

• Benefits of growth not widely spread to various sections in society, reached only marginally to low income groups.

WHAT IS POVERTY

• The world bank describes poverty as : “Poverty is hunger. Poverty

is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time.”

POVERTY LINE Poverty Line is drawn on the basis of Expenditure that is necessary to

Secure the Minimum Acceptable Living Standard for Work & Efficiency.

Since, Food is the most Basic Requirement, thus, Poverty Line is

drawn on the basis of a Minimum Necessary Nutritional Standard

expressed in terms of Calories per Day.

In India, the Minimum Calories intake of a Person has been put at

2,400 in Rural Area & 2,100 in Urban Areas.

To convert this Calorie intake based Poverty Line into a Monetary

Measure of Poverty; the Cost of Minimum Consumption Requirements

of Food providing the minimum calories is calculated at prevailing

Price.

Thus, Government defined a Person with an Income of Less than

Rs.672 (Rural) & Rs.859 (Urban) per month as living below Poverty

Line.

TWO WAYS OF POVERTY Relative Poverty :-

Relative Poverty refers to the Income or Asset Position

of one Class or Group of People in comparison with the

other Classes or Groups, or of one Individual.

The essential point here is that Poverty of One is

Relative to the Richness of the other.

For Example, an Average Middle Class Person is Poor

when compared to the Upper Middle Class Person, who

in turn, may be poorer than the Richer Person and so

on.

Absolute Poverty :- It is associated with a Minimum Level of Living or

Minimum Consumption Requirements of Food,

Clothing, Housing, Health, etc.

All those People who fail to Secure Income or

Assets to have access to even these Minimum

Consumption Requirements are classified as

‘Poor’.

Is relevant for the Less‐Developed Countries.

METHODS OF POVERTY EXPENDITURE METHOD :-

Under this the minimum food requirements for survival is estimated.

The food value is converted into calories.

The caloric value of food is then converted into the money

value i.e. in rupees.

The total equivalent amount is considered as the poverty line.

 INCOME METHOD :-

This method is used by the government while distributing food through PDS at the local level.

Under this a poverty line is fixed by the government.

All the families whose total income is less than the poverty

line fixed by the government are considered as BPL.

CAUSES OF POVERTY

CAUSES OF POVERTY

Rapidly Rising Population

Low Productivity in Agriculture

Low Rate of Economic Development

Price Rise Unemployment

Social Factors

Under Utilized Resources

EFFECTS OF POVERTY Effects of poverty are divided into 3 parts :-

1) Effects on Children2) Effects on Women3) Effects on Education

1.Effects on children:

22,000 children die each day 27-28 % of all children in develping countries are underweight 10.6 million died in 2003

For the 1.9 billion children from the

developing world, there are:

640 million without adequate shelter

400 million with no access to safe water

270 million with no access to health services

2.Effects on Women:

70% of the world's poor represent a staggering population.

Of the 500,000 women who die in childbirth every

year, 99% live in developing countries.

4 million girls and women were sold.

3.Effects on Education:

About 72 million children of primary school age in the

developing world were not in school 57 per cent of them were

girls.

Nearly a billion people were uneducated after entering 21st

century.

121 million out of education worldwide.

Solutions for Reduction of Poverty in India :-Govt. Policy Regarding Reduction of Poverty The Govt, of India took certain measures to reduce poverty,

inequality of income and wealth in its five year plan periods. Followings are some steps taken by the Govt, from time to time.

1. Integrated Rural Development Programme (IRDP)

2. National Rural Employment Programme (NREP)

3. Rural Landless Employment Guarantee Programme (RLEGP)

4. Jawahar Rozgar Yojna

5. Training of Rural Youth for Self-Employment

6. Development of Women and Children

7. Drought Prone Area Programme

8. Desert Development Programme

9. Employment Exchanges

10. Employment Guarantee Scheme

11. Employment Assurance Scheme

12. Jawahar Gram Samridhi Yojana