Introduction:

In this chapter, we’re going to discuss a major problem in India: poverty. Poverty means not having enough money for a good life. We’ll look at real-life examples and how experts in social sciences study it. India has a lot of poor people, around 270 million in 2011-12, which is about one in every five people. This makes India the country with the most poor people in the world. We’ll talk about why people are poor, what the government is doing to help, and how we can think about poverty beyond just not having enough money.

View from Social Scientists:

• Social scientists use various indicators to examine poverty.
• Income, consumption levels, and social indicators like education, healthcare, clean water, and job opportunities are considered.
• Social exclusion and vulnerability are critical aspects, as poverty is both a cause and consequence.

Two common aspects of Poverty:

Social Exclusion:

• Poverty is not just about income; it’s also about living in poor surroundings with other impoverished people.
• Social exclusion deprives the poor of social equality with better-off individuals in better environments.

Vulnerability:

• Vulnerability means certain communities or individuals have a greater chance of remaining poor due to limited options and risks.
• Risks include natural disasters and economic downturns, with some groups more adversely affected.
• Vulnerability depends on social and economic resilience.

Defining the Poverty Line:

• The poverty line is the minimum income or consumption level required to meet basic needs.
• It varies by country and time based on societal norms and development levels.
• In India, it’s determined by caloric requirements for food.

Calorie-Based Poverty Line:

• Caloric needs depend on age, gender, and the type of work. Rural areas require more calories due to physical labor.
• In 2011-12, the rural poverty line was about Rs 816/month, and the urban line was Rs 1000/month for one person.
• A rural family of five earning less than Rs 4,080/month is below the poverty line.
• An urban family with a similar income needs at least Rs 5,000/month for basic needs.

Progress in Reducing Poverty:

India has made remarkable strides in lessening poverty. In 1993-94, the poverty rate was a staggering 45%, but by 2011-12, it significantly dropped to 22%.

The number of people grappling with poverty has followed a positive trajectory, decreasing from 407 million in 2004-05 to 270 million in 2011-12. This reflects an average annual decline of 2.2%.

Vulnerable Groups:

• Poverty isn’t uniform in society; it varies significantly.
• Scheduled Castes and Scheduled Tribes are highly vulnerable to poverty; these groups face notable risks.
• Vulnerability to poverty is also substantial among rural agricultural labor households and urban casual labor households.
• Particularly noteworthy is that about 43% of Scheduled Tribes and 34% of urban casual workers fall below the poverty line.
• The challenge intensifies when individuals from socially disadvantaged groups engage in landless, casual wage labor.

Inequality Within Families:

• Poverty affects all family members, but some suffer more than others, especially women, the elderly, and female infants.

State-Level Variations:

• Poverty reduction success varies from state to state.
• States like Madhya Pradesh, Assam, Uttar Pradesh, Bihar, and Odisha have poverty levels above the national average.
• Bihar and Odisha continue to have high poverty ratios.
• States like Kerala, Maharashtra, Andhra Pradesh, Tamil Nadu, Gujarat, and West Bengal have seen significant reductions in poverty.
• Some states have reduced poverty through agricultural growth, human resource development, land reform, and public distribution of food grains.

Global Poverty Trends:

• World Bank’s extreme poverty threshold: living on less than $1.90 per day.
• In 1990, 36% lived in such poverty; by 2015, it reduced to 10%, yet disparities persist.

China & Southeast Asia:

• Rapid growth and human resource investments reduced poverty.
• China went from 88.3% in 1981 to just 0.6% in 2019.
• South Asian countries (India, Pakistan, etc.) dropped from 34% in 2005 to 15.2% in 2014.
• Number of poor in India declined: 510.4 million (2005) to 274.5 million (2013).

Sub-Saharan Africa & Latin America:

• Poverty in Sub-Saharan Africa fell from 51% (2005) to 40.2% (2018).
• Latin America saw a decrease from 10% (2005) to 4% (2018).

Former Socialist Nations:

• Poverty re-emerged in some ex-socialist countries like Russia.

Causes of Poverty:

1. Historical Factors: Low economic development during British colonial rule.
2. Impact of British Policies: Damage to traditional handicrafts and discouragement of industrial development.
3. Economic Growth and Population: Low growth rate of incomes combined with high population growth.
4. Limited Agriculture Benefits: The Green Revolution’s effects were limited to some regions.
5. Income Inequality: Linked to unequal land and resource distribution.
6. Socio-Cultural Factors: Excessive spending on social obligations and religious ceremonies contributing to indebtedness.

Anti-Poverty Measures:

1. Promotion of Economic Growth: India’s anti-poverty strategy based on fostering economic growth.
2. Impact of Economic Growth: Higher economic growth rates linked to poverty reduction.
3. Challenges for the Poor: The poor might not directly benefit from opportunities, especially in agriculture.
4. Targeted Programs: Initiatives like MGNREGA, PMRY, REGP, SGSY, and AAY aim to create self-employment and support basic services.
5. Implementation Challenges: Issues like scheme overlap and improper targeting affect program effectiveness.

Challenges Ahead:

1. Persistent Poverty: Despite progress, poverty reduction remains India’s most significant challenge.
2. Regional Disparities: Wide variations in poverty between rural and urban areas and among states.
3. Vulnerable Groups: Certain social and economic segments are more susceptible to poverty.
4. Future Progress: Expected poverty reduction in the next decade due to higher economic growth, improved education, declining population growth, and empowerment of women and economically weaker sections.
5. Broadening the Concept: The official definition of poverty focuses on subsistence rather than a reasonable standard of living.
6. Human Poverty: Advocates argue for a broader concept encompassing factors like education, shelter, health care, job security, self-confidence, and freedom from discrimination.
7. Changing Targets: Eradicating poverty is an evolving goal. As income needs are met, larger challenges like healthcare, education, gender equality, and dignity for the poor emerge.