Class 9 (Economics) Chapter 3 (Poverty as a challenge)

 

Class 9 (Economics)

Chapter 3 (Poverty as a challenge)

 

Notes

1. Overview of Poverty in India:

• India faces significant poverty issues, with approximately 70% of its population considered poor as of 2011-2012.
• Poverty is characterized by hunger, lack of shelter, inadequate education for children, malnutrition, and limited access to clean water and sanitation.

2. Causes of Poverty:

• Poverty can arise from various factors such as landlessness, illiteracy, unemployment, poor health, malnutrition, child labor, and large family sizes.

3.  Urban Poverty Case:

• Example: Ramsaran, a daily wage laborer in Ranchi, struggles to support his family of six with his earnings, supplemented by his wife's part-time income and his son's earnings from a tea shop.
• Despite multiple sources of income, the family faces challenges accessing education and healthcare due to financial constraints.

4.  Rural Poverty Case:

• Example: Lakha Singh, a landless laborer in a village near Meerut, and his family earn minimal wages working for landowners.
• Despite their hard work, the family struggles to afford two meals a day, often receiving compensation in kind rather than cash.

5.  Metrics for Measuring Poverty:

• Social Exclusion: Poverty often entails living among other impoverished individuals in marginalized communities, leading to limited opportunities and social inequality.
• Vulnerability: Certain groups, such as widows, handicapped individuals, and marginalized communities, are more susceptible to remaining in poverty, especially during natural disasters.
• Other contributing factors include illiteracy, malnutrition, limited access to healthcare, inadequate job opportunities, and lack of basic amenities.

6.  Poverty Line:

• The poverty line is determined based on consumption and income levels, varying across countries and adjusted over time.
• Criteria include food/calorie requirements, fuel, education, etc., with rural areas typically requiring 2400 calories and urban areas 2100 calories.
• According to the National Sample Survey Organisation (NSSO), individuals with family incomes below INR 4080 in rural areas and INR 5000 in urban areas are considered below the poverty line.

7. Regional Disparities:

• Certain marginalized groups, such as Scheduled Castes and Scheduled Tribes, are disproportionately affected by poverty.
• Poverty rates vary among states, with Bihar and Orissa having the highest poverty rates and states like Maharashtra, Kerala, Andhra Pradesh, Tamil Nadu, Gujarat, and West Bengal witnessing declines.

8.  Historical Context and Causes:

• Historical factors, including colonial policies that hindered industrial development and population control efforts, contributed to India's poverty.
• Economic growth is crucial for poverty reduction, providing resources for human capital investment and education, particularly for girls.

9.   Anti-Poverty Measures:

• The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides rural households with 100 days of employment, benefiting millions of households and increasing daily wages.
• Government schemes like Prime Minister Rozgar Yojana (PMRY), Rural Employment Generation Programme, and Swarnajayanti Gram Swarozgar Yojana (SGSY) aim to promote self-employment and lift people out of poverty through credit facilities and support from central banks and self-help groups.

Important Question Answers

Very Short Answer Questions

1.    What is the average daily calorie requirement per person in rural areas of India?

Answer: The average daily calorie requirement per person in rural areas of India is 2400.

2.    When was the National Rural Employment Guarantee Act (NREGA) enacted?

 Answer: The National Rural Employment Guarantee Act (NREGA) was enacted in September 2005.

3.    In which part of the world has poverty remained constant from 1981 to 2001?

 Answer: Poverty has remained constant from 1981 to 2001 in Latin America and the Caribbean Nations.

4.    Who are the target groups for the REGP and AAY anti-poverty programs?

Answer: The target group for the Rural Employment Generation Programme (REGP) is unemployed rural youth, and for the Antyodaya Anna Yojana (AAY), it is rural and urban poor families.

5.    Who are the target populations for the SGSY and NREGA programs?

Answer: The target population for the Swarnajayanti Gram Swarozgar Yojana (SGSY) is rural poor households, and for the National Rural Employment Guarantee Act (NREGA), it is rural households.

6.    Is India recognized for having the largest concentration of poor people globally?

 Answer: Yes, India is estimated to have approximately 260 million people living in poverty as of 1999-2000.

7.    What does "vulnerability to poverty" signify?

Answer: "Vulnerability to poverty" refers to the likelihood of certain communities or individuals becoming or remaining poor in the future.

8.    Which agency conducts periodic sample surveys to estimate the poverty line in India?

Answer: The National Sample Survey Office (NSSO) conducts these surveys.

9.    What was the major anti-poverty program launched in 2000?

 Answer: The Pradhan Mantri Gramodaya Yojana (PMGY) was launched in 2000.

10. In which year was the National Food for Work Programme (NFWP) initiated?

Answer: The National Food for Work Programme (NFWP) was initiated in 2004.

11. What method is used to calculate the poverty line in India?

Answer: The daily income and consumption method are used to estimate the poverty line in India.

12. Is it accurate that Kerala reduced poverty through the distribution of highly subsidized food grains?

Answer: No, Kerala focused on human resource development as a means to reduce poverty.

 

Short Answer Type Questions

1. How does population growth contribute significantly to poverty?

Answer: The rapid growth of population intensifies the depletion rate of resources, leading to increased pressure on available resources. Consequently, a larger populace competes for a limited share of resources, thereby pushing more individuals below the poverty threshold.

2. What accounts for the higher calorie requirements in rural areas compared to urban regions?

 Answer: The elevated calorie needs in rural areas stem from the predominantly physical labor-intensive occupations prevalent in rural settings, in contrast to the less physically demanding work commonly found in urban environments.

3. What are the primary factors contributing to the inefficacy of anti-poverty initiatives in India?

Answer: The principal factors behind the inefficacy of anti-poverty measures in India include inadequate program implementation, overlapping schemes, and the failure to accurately target beneficiaries.

4. Who constitutes the impoverished demographic in India?

Answer: The impoverished demographic in India comprises individuals such as landless laborers in rural areas, inhabitants of overcrowded urban slums, daily wage earners at construction sites, child laborers in roadside eateries, and destitute beggars with scanty clothing.

5. Define the concept of "social exclusion."

Answer: Social exclusion characterizes poverty as not merely an economic plight but also a social phenomenon, whereby individuals or communities are relegated to impoverished environments, excluded from social integration with more affluent counterparts.

6. How does a nation determine its poverty threshold?

Answer: Each country establishes its poverty threshold based on its developmental stage and prevailing social norms. For instance, in the United States, lacking car ownership might denote poverty, whereas in India, car ownership remains a luxury status symbol.

7. How have China and South Eastern Asian countries managed to mitigate poverty?

 Answer: China and South Eastern Asian countries have successfully alleviated poverty through rapid economic growth coupled with substantial investments in human capital development.

8. What historical factors underpin poverty in India?

Answer: Poverty in India is rooted in the low level of economic development fostered during British colonial rule, characterized by policies detrimental to traditional industries and job creation, coupled with a burgeoning population growth.

9. What was the objective of the National Food for Work Programme (NFWP)?

Answer: Launched in 2004 across 150 underprivileged districts, the NFWP aimed to provide wage employment opportunities to impoverished rural residents through manual unskilled work, supported by the provision of free food grains.

10. What does PMRY stand for, and what was its purpose?

Answer: PMRY stands for Prime Minister Rozgar Yojana, inaugurated in 1993 to foster self-employment opportunities for educated unemployed youth in rural and small-town settings.

11. What were the objectives of the Swarnajayanti Gram Swarozgar Yojana (SGSY)?

 Answer: Launched in 1999, SGSY aimed to elevate assisted impoverished families above the poverty line by organizing them into self-help groups, facilitating access to bank credit and government subsidies.

12. What was the essence of the Pradhan Mantri Gramodaya Yojana (PMGY)?

Answer: Introduced in 2000, PMGY aimed to bolster basic services such as primary health, education, rural shelter, drinking water, and electrification through additional central assistance to states.

13. How do income disparities manifest within families?

Answer: Income disparities within families result in unequal suffering, particularly impacting women, children, and the elderly, who are systematically denied equitable access to family resources, rendering them the most impoverished within familial units.

14. Which states have experienced notable reductions in poverty?

 Answer: Kerala, Jammu and Kashmir, Andhra Pradesh, Tamil Nadu, Gujarat, and West Bengal have achieved significant declines in poverty rates, attributed to various factors such as human resource development, land reforms, and public distribution of food grains.

15. How can poverty reduction be enhanced in the future?

Answer: Poverty reduction can be bolstered through robust economic growth, universal access to education, particularly for marginalized communities, and empowering women and economically disadvantaged sections of society.

16. What are the key provisions of the Mahatma Gandhi National Rural Employment Guarantee Act 2005?

Answer: MGNREGA mandates 100 days of assured employment annually for rural households in designated districts, with provisions for women's reservation and an unemployment allowance if employment is not provided within 15 days.

17. List five indicators of poverty.

Answer: Landlessness, unemployment, illiteracy, child labor, and malnutrition are prominent indicators of poverty, highlighting socioeconomic vulnerabilities and deprivation.

 

Long Answer Type questions

1.    What is the poverty status among scheduled caste or scheduled tribe populations?

 Answer: Approximately 50% of casual workers in urban areas fall below the poverty line. Similarly, about 50% of landless agricultural workers and 43% of scheduled caste individuals are considered poor. The dual disadvantage faced by landless casual wage labor households within socially disadvantaged groups like the scheduled caste or scheduled tribe underscores the severity of this issue.

Recent studies indicate that, except for scheduled tribe households, the other three groups – scheduled caste, rural agricultural labor, and urban casual labor – have experienced a decline in poverty.

2.    What is the global poverty scenario?

Answer: Although global poverty has substantially decreased, it varies significantly across regions. (i) Poverty has notably decreased in China and Southeast Asian nations due to rapid economic growth and significant investments in human resource development. (ii) In South Asian countries, the reduction in poverty has been less rapid. Despite a decline in the percentage of poor, the absolute number of impoverished individuals decreased from 475 million in 1981 to 428 million in 2001. (iii) Sub-Saharan Africa witnessed an increase in poverty from 41% in 1981 to 46% in 2001. (iv) Latin America's poverty ratio remained unchanged. (v) Poverty has reemerged in some former socialist countries like Russia.

3.    What are the main causes of poverty?

Answer: The main causes of widespread poverty include: (i) Low economic development during British colonial rule, which undermined traditional handicrafts and discouraged industrial growth. (ii) High population growth rates, leading to low per capita income growth. (iii) Limited spread of benefits from irrigation and the Green Revolution, mainly benefiting specific regions. (iv) The proliferation of informal sector jobs, such as rickshaw pulling and domestic work, offering irregular and low incomes, particularly in urban areas.

4.    State the various Poverty Alleviation Programs introduced by the government to remove poverty.

Answer: Various Poverty Alleviation Programs introduced by the government include:

(i) Prime Minister Rozgar Yojana (PMRY): Facilitates self-employment opportunities for unemployed youth in rural areas and small towns.

(ii) Rural Employment Generation Programme (REGP): Creates self-employment opportunities in rural areas and small towns.

(iii) Swamajayanti Gram Swarozgar Yojana (SGSY): Aims to lift assisted poor families above the poverty line by organizing them into self-help groups.

 (iv) Pradhan Mantri Gramodaya Yojana (PMGY): Provides additional central assistance to states for basic services like primary health and education, rural shelter, drinking water, and electrification.

5.    Which groups are most vulnerable to poverty?

Answer: Vulnerable social groups include Scheduled Castes and Scheduled Tribes, while economically, rural agricultural labor households and urban casual laborers face heightened vulnerability. About 51 out of 100 people from Scheduled Tribes and 50% of urban casual workers fall below the poverty line.

6.    Explain colonial rule and income inequalities as causes of poverty.

Answer: Colonial rule significantly hindered economic development, eroding traditional industries and discouraging new ones. Income inequalities, exacerbated by limited land availability for rural laborers, forced them into low-wage jobs, perpetuating poverty.

7.    State the most responsible factor for the significant decline in poverty in the States of Kerala, West Bengal, and Tamil Nadu.

Answer: Haryana, Kerala, and West Bengal achieved poverty reduction through: (i) Haryana: High agricultural growth rates facilitated by the Green Revolution. (ii) Kerala: Investment in human resource development, resulting in high literacy rates. (iii) West Bengal: Land reform measures aimed at reducing poverty.

8.    Describe one factor each for the success of Haryana, Kerala, and West Bengal in reducing poverty.

Answer: Poverty reduction in these states can be attributed to factors such as: (i) Haryana's agricultural growth rates, driven by the Green Revolution. (ii) Kerala's emphasis on human resource development, reflected in high literacy rates. (iii) West Bengal's implementation of land reforms to address poverty.

9.    How far is it correct to say that social exclusion can be both a cause as well as a consequence of poverty? Explain.

Answer: Social exclusion, besides its direct impact on income, can lead to additional hardships, making poverty more challenging to escape. For instance, caste-based discrimination in India deprives certain groups of opportunities, exacerbating their poverty. Conversely, poverty often leads to exclusion from essential services and opportunities, perpetuating the cycle of deprivation.

10. Explain any four important causes of poverty in India.

Answer: Key causes of poverty in India include: (i) Slow economic growth and inadequate job creation, particularly in the industrial sector. (ii) Urban migration, leading to a surplus workforce and increased urban poverty. (iii) Unequal distribution of land, contributing to rural poverty. (iv) Persistent informal sector employment, offering irregular incomes and limited social protections.

11. Describe the global poverty scenario as studied by the World Bank.

Answer: The World Bank's analysis emphasizes the role of economic growth in poverty reduction. India experienced rapid economic growth in the 1980s, leading to a decline in poverty rates. This growth created opportunities for investment in human development, such as education, which further contributed to poverty alleviation efforts.

12. How can poverty be reduced in the future in India? Suggest any four points.

Answer: To combat poverty effectively, India can focus on: (i) Accelerating economic growth through targeted policies and investments. (ii) Expanding access to quality education and healthcare to empower marginalized communities. (iii) Implementing land reforms to ensure equitable distribution and access to resources. (iv) Strengthening social safety nets and employment generation programs to provide support to vulnerable populations.