Poverty, as a multifaceted concept, encompasses various aspects. In this context, poverty refers to a living standard that is significantly low, hindering the physical, psychological, and social growth of an individual's personality.
The concept of poverty has been a persistent issue throughout human history. Initially, people relied on nature to provide for their basic needs such as food, clothing, and shelter, resulting in widespread poverty. Over time, advancements in technology and social organization enabled humans to produce and consume goods, leading to an unequal distribution of resources. This has led to a division between the rich and the poor, with the former enjoying economic prosperity, political power, and social superiority, while the latter experiences poverty and marginalization.
Poverty is a multifaceted social issue that encompasses economic, political, social, and cultural aspects. The primary focus is on economic poverty, which is exacerbated by political, social, and cultural factors. There are two main approaches to understanding poverty: the nutritional approach and the relative deprivation approach.
- The Nutritional approach is primarily used in developing countries, where poverty is measured based on minimum food requirements. This approach calculates poverty in terms of adequate calorie consumption (usually around 2250 calories) necessary for maintaining a person's working capacity. Those who cannot meet this minimum requirement due to low income are considered below the poverty line. This measure of absolute poverty is based on a predetermined standard or norm.
- The Relative Deprivation approach is more prevalent in developed countries, where the primary concern is not the minimum food requirement but rather the relative deprivation of a class or section of the population compared to the privileged ones. This approach emphasizes social inequalities, focusing on the exclusion of certain groups from average living patterns, activities, and participation in social life due to a lack of resources such as wealth, income, education, and political power.
- The nutritional approach to poverty is limited in scope, as it does not consider essential non-food requirements for human living, such as clothing, housing, education, and healthcare facilities. A more comprehensive definition of poverty should encompass these aspects, as they are crucial for an average human life in a civilized society.
To examine the issue of poverty in India, both rural and urban poverty must be considered from a historical perspective. By understanding the different approaches to poverty and their implications, policymakers can develop effective strategies to combat this persistent social issue and create a more equitable society.
Historical Dimension
The historical dimension of poverty in India can be analyzed through three major periods:
Ancient, Medieval, and Colonial.- In the Ancient period, poverty was a general problem for the people, as evidenced by prayers in the Rigveda to drive away poverty and famine. However, as society developed and became divided by the varna system, a class-based social order emerged, leading to a shift from general poverty to socially-generated poverty. The privileged class enjoyed a prosperous life by appropriating surplus produced by the working class, while the common people, including peasants, artisans, laborers, servants, and slaves, lived in poverty and suffered from multiple deprivations.
- During the Medieval period, both Muslim and Hindu rulers perpetuated the socially-generated poverty of the masses. The ruling class lived a luxurious life, while the working class continued to live in misery. Foreign travelers observed that the land was overpopulated and that the poor were very miserable, while the nobles lived in opulence. Famines and droughts during this period led to extreme destitution and even instances of cannibalism.
- The Colonial period under British rule further exacerbated India's poverty problem. Indian economy was subordinated to British interests, leading to a massive drain of wealth out of India. Peasants were exploited and oppressed by zamindars, money-lenders, and the state under the new land revenue system. Rural artisans and urban craftsmen suffered from the decline of industries, and many towns and cities became desolate. The growth of modern machine-based capitalist industries also led to the exploitation of workers by capitalists.
- Frequent famines during this period, with millions of deaths, highlight the extent of poverty and starvation in India. Many British officials acknowledged the grim situation of India's poverty, with Charles Elliot stating that half the agricultural population never had a full meal, and William Hunter observing that forty million Indians habitually lived on insufficient food.
In summary, the historical dimension of poverty in India reveals a deep-rooted issue that has persisted through various periods of Indian history. From a general state of poverty in ancient times to socially-generated poverty in later periods, the problem has been exacerbated by the exploitative nature of the ruling classes and colonial powers. Understanding this historical context is essential for addressing poverty in India today and finding effective solutions to uplift the masses.
Question for Poverty & Deprivation - 1
Try yourself:Which of the following committees recommended a shift away from calorie consumption-based poverty estimation in India?
Explanation
The Tendulkar Committee, formed in 2009, recommended moving away from calorie consumption-based poverty estimation and suggested using a uniform poverty line basket (PLB) across rural and urban India. The committee also proposed changes in the price adjustment procedure and the incorporation of private expenditure on health and education while estimating poverty.
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Poverty in Contemporary India
In India, poverty continues to be a significant issue despite the progress made since its independence. Poverty can be observed in both rural and urban areas, with the majority of the poor residing in rural regions. In rural areas, the poor consist of small landholders, agricultural laborers, and artisans, often belonging to scheduled castes, scheduled tribes, and other backward castes. In urban settings, the poor engage in low-paying jobs in the unorganized sector or self-employed activities such as rickshaw-pulling, shoe-repairing, and small-scale vending. The living conditions for both rural and urban poor are dismal, with poor access to assets, low income, and meager wages.
The magnitude of poverty in India is often estimated in terms of the nutritional criterion, which considers the minimum food intake required to maintain a person's working capacity. However, this does not take into account non-food essentials such as clothing, housing, education, and healthcare, which are crucial for a minimum standard of living. Moreover, the socio-economic inequalities prevalent in India make it difficult for the majority of the population to fulfill their basic needs.
Several factors explain the extent of rural and urban poverty in India, including unequal distribution of wealth, per capita expenditure on consumption, the pattern of asset possession, illiteracy and health, and regional differences in poverty patterns.
- Unequal Distribution of Wealth: Estimates show that economic power is concentrated among the top earners in both rural and urban areas, with a wide gap between the income of the top and bottom levels of the population. This suggests that the benefits of economic development have been largely appropriated by the rich.
- Per Capita Expenditure on Consumption: Despite an increase in average per capita real consumer expenditure, the bottom earners in both urban and rural areas have experienced a decline in real consumption expenditure over the years. This indicates that the standard of living for these groups has either stagnated or deteriorated.
- Pattern of Asset Possession: The structure of landownership in rural areas reveals a highly unequal distribution of assets. Land reform measures have not significantly altered this concentration. Similarly, in urban areas, a large section of the population possesses few or no assets, living in slums and makeshift housing.
- Illiteracy and Health: Poor access to education and healthcare facilities is a major issue for the impoverished population in both rural and urban areas. High illiteracy rates and inadequate health services contribute to the perpetuation of poverty.
- Regional Differences in Poverty Patterns: The incidence of poverty varies across states and between rural and urban areas, with some regions experiencing higher levels of poverty than others.
History of poverty estimation in India
The history of poverty estimation in India can be divided into pre-independence and post-independence periods.
1. Pre-independence poverty estimates: One of the earliest estimations of poverty in India was done by Dadabhai Naoroji in his book, ‘Poverty and the Un-British Rule in India’. He proposed a poverty line based on the cost of a subsistence diet. In 1938, the National Planning Committee estimated a poverty line ranging from Rs 15 to Rs 20 per capita per month. In 1944, the authors of the ‘Bombay Plan’ suggested a poverty line of Rs 75 per capita per year.
2. Post-independence poverty estimates: In 1962, the Planning Commission constituted a working group to estimate poverty at a national level. They formulated separate poverty lines for rural and urban areas – of Rs 20 and Rs 25 per capita per year, respectively. Dandekar and Rath made the first systematic assessment of poverty in India in 1971, based on National Sample Survey data from 1960-61. They argued that the poverty line must be derived from the expenditure that was adequate to provide 2250 calories per day in both rural and urban areas.
Several committees have been constituted over the years to revise and improve poverty estimation methodologies:
- Alagh Committee (1979): Constructed a poverty line for rural and urban areas based on nutritional requirements and related consumption expenditure.
- Lakdawala Committee (1993): Suggested calculating consumption expenditure based on calorie consumption and constructing state-specific poverty lines, which should be updated using the Consumer Price Index of Industrial Workers (CPI-IW) in urban areas and Consumer Price Index of Agricultural Labour (CPI-AL) in rural areas.
- Tendulkar Committee (2009): Recommended a shift away from calorie consumption-based poverty estimation, a uniform poverty line basket (PLB) across rural and urban India, a change in the price adjustment procedure, and the incorporation of private expenditure on health and education while estimating poverty.
- Rangarajan Committee (2012-14): Recommended that the poverty line should be based on certain normative levels of adequate nourishment, clothing, house rent, conveyance, and education, and a behaviorally determined level of other non-food expenses. The committee estimated that 30.9% of the rural population and 26.4% of the urban population were below the poverty line in 2011-12, with an all-India ratio of 29.5%.
These various committees and their recommendations have played a crucial role in shaping the understanding of poverty in India and formulating policies and programs to address it. For UPSC exam preparation, it is important to be familiar with the methodologies and findings of these committees and their implications for poverty alleviation efforts in the country.
Poverty Alleviation
Post-independence, the Indian government has implemented several poverty alleviation programs to uplift the socio-economic status of the underprivileged population. Here is a list of some significant initiatives:
- Abolition of bonded labor: The government has legally eradicated the practice of bonded labor, ensuring the protection of workers' rights and fair wages.
- Wealth distribution: By amending laws, the government has aimed to prevent the centralization of wealth and promote economic equality.
- Antyodaya plan: This scheme focuses on providing assistance to the poorest of the poor through targeted development and welfare programs.
- Small Farmers Development Programme (SFDP): This initiative aims to enhance agricultural productivity and income of small farmers by providing them with financial support and technical guidance.
- Drought Area Development Programme (DADP): This program addresses the adverse effects of drought on agricultural production by implementing drought-resistant measures and providing assistance to affected farmers.
- Twenty Point Programme: This comprehensive initiative focuses on poverty alleviation, employment generation, and overall socio-economic development.
- Food for Work Programme: This scheme provides food as a form of payment for work done, ensuring food security and employment opportunities for the poor.
- Minimum Needs Programme (MNP): This program focuses on fulfilling the basic needs of the underprivileged population, including education, health, housing, and sanitation.
- Integrated Rural Development Programme (IRDP): This initiative aims at empowering the rural poor by providing them with financial assistance for self-employment and skill development.
- National Rural Employment Programme (NREP): This scheme focuses on providing employment opportunities to the rural population through various public works projects.
- Rural Labour Employment Guarantee Programme (RLEGP): This program guarantees a minimum number of days of employment to rural laborers, ensuring financial stability and livelihood opportunities.
- TRYSEM Scheme: This initiative aims to provide training and skill development to rural youth to enhance their employability and income-generating capacities.
- Jawahar Rojgar Yojna (JRY): This program focuses on generating employment opportunities for the rural poor through infrastructure development and public works projects.
- Swarna Jayanti Gram Swarozgar Yojna: This scheme aims to promote self-employment and entrepreneurship among the rural poor by providing financial assistance and skill development opportunities.
- National Social Assistance Programme (NSAP): This initiative provides financial assistance to the elderly, widows, and disabled persons to ensure social security and well-being.
- Rural Housing Programme: This program focuses on providing affordable housing facilities to the rural poor, improving their living conditions.
- Indira Awas Yojana: This scheme aims to provide financial assistance for the construction and upgradation of houses for the rural poor.
- Pradhan Mantri Rojgar Yojna: This initiative focuses on providing employment opportunities to the unemployed youth through skill development and entrepreneurship programs.
- Nehru Rozgar Yojna (NRY): This program aims to generate employment opportunities for the urban poor through skill development and self-employment initiatives.
- Self-Employment Programme for the Urban Poor (SEPUP): This scheme provides financial assistance and skill development opportunities to the urban poor for self-employment and income generation.
- Prime Minister’s Integrated Urban Poverty Eradication Programme (PMIUPEP): This comprehensive initiative aims to alleviate urban poverty by providing employment opportunities, skill development, and basic amenities to the urban poor.
Question for Poverty & Deprivation - 1
Try yourself:Which of the following poverty alleviation programs in India focuses specifically on providing assistance to the poorest of the poor through targeted development and welfare programs?
Explanation
The Antyodaya plan is aimed at providing assistance to the poorest of the poor through targeted development and welfare programs. The initiative focuses on ensuring that the most vulnerable sections of society receive adequate support and resources to uplift their socio-economic status.
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Conclusion
Poverty has been a persistent issue throughout India's history, with various dimensions and factors contributing to its prevalence. Over time, the understanding of poverty has evolved, leading to several estimation methodologies and committees to measure and address the issue. The Indian government has implemented numerous poverty alleviation programs focused on wealth distribution, employment generation, skill development, and providing basic amenities to uplift the socio-economic status of the underprivileged population. Understanding the historical context, contemporary challenges, and poverty alleviation efforts is essential for creating effective strategies to combat poverty and build a more equitable society in India.
Frequently Asked Questions (FAQs) of Poverty & Deprivation
What are the two main approaches to understanding poverty?
The two main approaches to understanding poverty are the Nutritional approach and the Relative Deprivation approach. The Nutritional approach focuses on minimum food requirements, while the Relative Deprivation approach emphasizes social inequalities and exclusion from average living patterns due to a lack of resources.
How has the historical dimension of poverty in India changed over time?
From a general state of poverty in ancient times, India's poverty problem shifted to socially-generated poverty in later periods. This issue was exacerbated by the exploitative nature of the ruling classes and colonial powers, leading to a deep-rooted problem that persists today.
What are some factors that explain the extent of rural and urban poverty in India?
Some factors explaining the extent of rural and urban poverty in India include unequal distribution of wealth, per capita expenditure on consumption, the pattern of asset possession, illiteracy and health, and regional differences in poverty patterns.
What is the history of poverty estimation in India?
The history of poverty estimation in India can be divided into pre-independence and post-independence periods. Various committees have been constituted over the years to revise and improve poverty estimation methodologies, such as the Alagh Committee, Lakdawala Committee, Tendulkar Committee, and Rangarajan Committee.
What are some significant poverty alleviation programs implemented by the Indian government?
Some significant poverty alleviation programs implemented in India include the Abolition of bonded labor, Wealth distribution, Antyodaya plan, Small Farmers Development Programme, Drought Area Development Programme, Twenty Point Programme, Food for Work Programme, Minimum Needs Programme, Integrated Rural Development Programme, National Rural Employment Programme, Rural Labour Employment Guarantee Programme, TRYSEM Scheme, Jawahar Rojgar Yojna, Swarna Jayanti Gram Swarozgar Yojna, National Social Assistance Programme, Rural Housing Programme, Indira Awas Yojana, Pradhan Mantri Rojgar Yojna, Nehru Rozgar Yojna, Self-Employment Programme for the Urban Poor, and Prime Minister’s Integrated Urban Poverty Eradication Programme.