Economics Solution Class 9 Chapter 3

3. Poverty as a challenge

Facts that Matter

·         Poverty is a situation where a person fails to attain the minimum basic needs such as food, clothing, housing, health, education, etc.

·         We see poverty all around us. In fact, every fourth person in India is poor. This means, roughly 260 million or 26 crore people in India live in poverty.

·         Issues Related to poverty are landlessness, unemployment, size of families, illiteracy, poor health/malnutrition, child labour and helplessness.

·         Dimensions of Poverty:

§  Poverty means hunger and lack of shelter.

§  It also is a situation in which parents are not able to send their children to school or a situation where sick people cannot afford treatment.

§  Poverty also means lack of clean water and sanitation facilities.

§  It also means lack of regular job at a minimum decent level.

·         One of the biggest challenges of independent India has been to bring millions of its people out of abject poverty.

·         Poverty is looked through indicators such as illiteracy level, lack of general resistance due to malnutrition, lack of access to healthcare, lack of job opportunities, lack of access to safe drinking water, sanitation etc.

·         A common method used to measure poverty is based on the income or consumption levels. A person is considered poor if his or her income or consumption level falls below a given ‘minimum level’ necessary to fulfil basic needs. What is necessary to satisfy basic needs is different at different times and in different countries. Therefore, poverty line may vary with time and place.

·         While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirement, etc. are determined for subsistence.

·         Food requirement of a person is based o the desired calories requirement.

·         The calorie needs vary depending on age, sex and the type of work that a person does.

·         The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas.

·         For the year 2000, the poverty line for a person was fixed at Rs. 328 per month for the rural areas and Rs. 454 for the urban areas.

·         The poverty line is estimated periodically (normally every five years) by conducting sample surveys, which are carried out by the National Sample Survey Organisation (NSSO). There is also the International poverty line which means: minimum availability of equivalent of $1 per person per day.

·         Although the percentage of people living under poverty declined in the earlier two decades i.e. 1973 and 1993, the number of poor remained stable around 320 million for a fairly long period. However, the latest estimates indicate a significant reduction in the number of poor to about 260 million.

·         Social groups which are most vulnerable to poverty are scheduled caste and scheduled tribe household.

·         Among the economic groups, the most vulnerable groups are the rural agricultural labour household and the urban casual labour households.

·         It has been seen that women, children, especially the girl child and old people are poorest of the poor, because they are denied equal access to resources available to the family.

·         We see inter-state disparities of poverty in India. The proportion of poor people is not the same in every state.

·         Recent estimates show that in 20 states and Union Territories, the poverty ratio is less than the national average. On the other hand, poverty is still a serious problem in states like Orissa, Bihar, Assam, Tripura and Uttar Pradesh.

·         So far global poverty trend is related, there has been a substantial reduction in it. However, great regional differences are seen. Poverty declined substantially in China and southeast Asian countries but in the countries of South Asia the decline has not been so rapid.

·         In Sub-Saharan Africa, poverty in fact rose from 41% in 1981 to 46% in 2001. In Latin America, the ratio of poverty remained the same.

·         Poverty in India is widespread due to a variety of reasons – (i) Historical reasons: the policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textile, (ii) Huge income inequalities, (iii) Lack of job opportunities.

·         Removal of poverty has been one of the major objectives of Indian developmental strategy. The government has started several anti-poverty strategies which are based on two planks – (i) Promotion of economic growth and (ii) Targeted anti-poverty programmes.

·         Till early 80s, there were little per capital income growth and not much reduction I poverty but after that India’s economic growth became very fast. This helped in the reduction of poverty.

·         Under targeted anti-poverty programmes, the National Rural Employment Guarantee Act (NREGA), the National Food For Work Programme (NFWP), Rural Employment Generation Programme (REGP) etc. have been launched.

·         Poverty has certainly declined in India. But despite the progress, poverty reduction remains India’s most compelling challenge.

Word that Matter:

·         Poverty: it is a situation where a person fails to attain the minimum human needs such as food, clothing, housing, education and health.

·         Poverty Line: Every country uses an imaginary line that is considered appropriate for its existing level of development and its accepted minimum social norms. This is called the Poverty Line.

·         Vulnerability: The greater probability of certain communities or individuals of becoming or remaining poor in the coming years.

·         Social Exclusion: It is a process through which individual or groups are excluded from facilities, benefits and opportunities that other people (rich) enjoy.

NCERT in Text Questions solved

Activity page no. 32 . Why do different countries use different poverty lines?

What is necessary to satisfy basic needs is different at different times and in different countries. Therefore, poverty line may vary with time and place. Each country uses an imaginary line that is considered appropriate for its existing level of development and its accepted minimum social norms.

NCERT Textbook Questions solved

1. Describe how the poverty line is estimated in India.

i) While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirement etc. are determined for subsistence.

ii) The present formula for food requirement while estimating the poverty line is based on the desired calorie requirement. The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas.

iii) On the basis of these calculations, for the year 2000, the poverty line for a person was fixed at Rs. 328 per month for the rural areas and Rs. 454 for the urban areas.

iv) It means a person living in rural areas and earning less than Rs. 328 per month will be below the poverty line. In the same way, a person living in urban areas and the earning less than Rs. 454 per month will be below the poverty line.

2. Do you think that present methodology of poverty estimation is appropriate?

i) I don’t think that present methodology of poverty estimation is appropriate. It takes into consideration the levels of income and consumption only.

ii) But in fact poverty should be looked through other social indicators such as illiteracy level, lack of general resistance due to malnutrition, lack of access to health care, lack of job opportunities, lack of access to safe drinking water, sanitation etc.

3. Describe poverty trends in India since 1973.

There is a substantial decline in poverty ratios in India from about 55% in 1973 to 36% in 1993. The proportion of people below poverty line further came down to about 26% in 2000. If the trend continues, people below poverty line further came down to less than 20% in the next few years. The following table will give a clear picture of poverty trends in India since 1973.

Year	Poverty Ratio (%)			Number of Poor (in billions)
	Rural	Urban	Combined	Rural	Urban	Combined
1973-74	56.5	49.0	57.9	261	60	321
1993-94	37.3	32.4	36.0	244	76	320
1999-00	27.1	23.6	26.1	193	67	260

4. Discuss the major reasons for poverty in India.

Major reasons for poverty in India are:

i) The low level of economic development under the British colonial administration. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textile. The low rate of growth persisted until the 1980s. This resulted in less job opportunities and low growth rate of incomes. This was accompanied by a high growth rate of population. The two combined to make the growth rate of per capita income very low.

ii) Lack of job opportunities: Lack of job opportunities compelled many people to work as rickshaw pullers, vendors, construction workers, domestic servants etc. with irregular small incomes, these people could not afford expensive housing. They started living in slums on the outskirts of the cities.

iii) Huge income inequalities: One of the major reasons for this is the unequal distribution of land and other resources. Major policy initiatives like land reforms which aimed at redistribution of assets in rural areas have not been implemented properly by most of the state governments.

iv) Lack of land resources has been one of the major causes of poverty in India.

v) High level of indebtedness among the small farmers is also a major cause of poverty in our country. Since poor farmers hardly have any savings, they borrow. Unable to repay because of poverty, they become victims of indebtedness.

5. Identify the social and economic groups which are most vulnerable to poverty in India.

i) Social groups which are most vulnerable to poverty are scheduled caste and scheduled tribe households.

ii) Among the economic groups, the most vulnerable groups are the rural agricultural labour households and the urban casual labour households.

6. Give an account of interstate disparities of poverty in India.

i) Interstate disparities of poverty can be noticed in India. It means the proportion of poor people is not the same in every state. Recent estimates show that in 20 states and union territories, the poverty ratio is less than the national average.

ii) On the other hand, poverty is still a serious problem in states like Orissa, Bihar, Assam, Tripura and Uttar Pradesh.

iii) In comparison, there has been a significant decline in poverty in Kerala, Jammu and Kashmir, Andhra Pradesh, Tamil Nadu, Gujarat and West Bengal.

7. Describe the global poverty trends.

i) Although there has been substantial reduction in global poverty, it is marked with great regional differences. Poverty declined substantially in China and Southeast Asian countries as a result of rapid economic growth and investments in human resource development. Number of the poor in China has come down from 606 million in 1981 to 212 million in 2001.

ii) In the countries of South Asia-India, Pakistan, Sri Lanka, Nepal, Bangladesh, Bhutan the decline has not been as rapid.

iii) In sub-Saharan Africa, poverty in fact rose from 41% in 1981 to 46% in 2001.

iv) In Latin America, the ratio of poverty remained the same. Poverty has also resurfaced in some of the former socialist countries like Russia.

8. Describe current government strategy of poverty alleviation.

The current government strategy of poverty alleviation is based on two planks:

i) Promotion of economic growth.

ii) Targeted anti-poverty programmes.

i) Promotion of economic growth: Till the early 80s, there were little per capital income growth and not much reduction in poverty. Since the 80s, India’s economic growth has been one of the fastest in the world. The growth rate jumped from the average of about 3.5% a year in the 1970s to about 6% during the 1980s and 199s. The higher growth rates have helped significantly in the reduction of poverty by widening opportunities.

ii) Targeted anti-poverty programmes: The government has started several anti-poverty schemes. Some of them are worth mentioning:

National Rural Employment Guarantee Act (NREGA) 2005- The Act provides 100 days assured employment every year to every rural household in 200 districts.

·         National Food for work programme (NFWP)- this scheme was launched in 2004 in 150 most backward districts of the country. The programme is open to all rural poor who are in need of wage employment and desire to do manual unskilled work.

·         Prime Minister Rozgar Yozana (PMRY) 1993- The aim of the programme is to create self-employment opportunities for educated unemployed youth in rural areas and small towns.

·         Rural Employment Generation Programme (REGP) 1995- The aim of this scheme is the same as Prime Minister Rozgar Yozana.

·         Swarnajayanti Gram Swarozgar Yozana (SGSY) 1999.

·         Pradhan Mantri Gramodaya Yozana (SGSY) 2000.

·         Antyodaya Anna Yozana (AAY).

9. Answer the following questions briefly:

i) What do you understand by human poverty?

Human poverty is a concept that goes beyond the limited view of poverty due to lack of income. It refers to the denial of political, social and economic opportunities to an individual to maintain a reasonable standard of living Illiteracy, lack of job opportunities, lack of access to proper healthcare and sanitation, caste and gender discrimination etc. are all components of human poverty.

ii) Who are the poorest of the poor?

Women, children (especially the girl child) and old people are the poorest of the poor.

iii) What are the main features of the National Rural Employment Guarantee Act 2005?

The main features of National Rural Employment Guarantee Act 2005 are:

·         The Act provides 100 days assured employment every years to every rural household in 200 districts.

·         One third of the proposed jobs would be reserved for women.

·         Under the programme if an applicant is not provided employment within fifteen days he/she will be entitled to a daily unemployment allowance.

More Questions Solved

I. Multiple Choice Questions:

Choose the correct option:

1. What is the full form of NSSO?

a) National Sample Survey Organisation

b) Natural Sample Survey Organisation

c) National Sample Sustain Organisation

d) Neutral Sample Survey Organisation

2. How many people in India live in poverty?

a) 260 million             b) 200 million        c) 150 million            d) 100 million

3. What is the most difficult challenge faced by independent India?

a) Malnutrition           b) Child labour                       

c) Unemployment       d) Poverty

4. Which are the most vulnerable social and economic groups to poverty in India?

a) Scheduled castes and scheduled tribes  b) Young people

c) Some upper caste people                           d) None of the above

5. Who are the poorest of the poor?

a) Women                   b) Elderly people        

c) Female infants        d) All the above

6. Which are the two poorest states in India?

a) Orissa and Bihar                b) Haryana and Punjab

c) Maharashtra and Punjab    d) Bihar and Uttar Pradesh

7. When was the National Food for work Programme launched?

a) 2000            b) 2002            c) 2004                        d) 2006

8. In rural areas in India the accepted average calories requirement per person per day is …………….

a) 2400 calories          b) 2100 calories

c) 2200 calories          d) 2500 calories

9. Which States have traditionally succeeded in reducing poverty with the help of high agricultural growth rates?

a) Kerala and West Bengal                 b) Punjab and Tamil Nadu

c) Punjab and Haryana                     d) Andhra Pradesh and Tamil Nadu

10. What helped West Bengal in reducing poverty?

a) Human resource development       b) Public distribution of food grains

c) Population control                          d) Land reform measures

II. Very Short Answer Type Questions:

1. What is the most difficult challenge faced by independent India?

Poverty is the most difficult challenge faced by independent India.

2. Who are the poorest of the poor?

Women, elderly people and female infants are the poorest of the poor.

3. Give a typical example of poverty based on social exclusion.

The working of the caste system in India in which people belonging to certain castes are excluded from equal opportunities.

4. Mention any two indicators of poverty.

i) Level of income

ii) Level of Consumption

5. Why calories requirement in areas higher than urban areas?

It is because people living in rural areas engage themselves in more physical work than the people living in urban areas.

6. What is NSSO? What function does it perform?

NSSO stands for National Sample Survey Organisation. The poverty line is estimated periodically by conducting sample surveys. These surveys are carried out by the National Sample Survey Organisation.

7. Which are the two poverty-ridden states of India?

Bihar and Orissa are the two poverty-ridden states of India.

8. Which are the most vulnerable groups to poverty among the economic categories in India?

Among the economic categories the most vulnerable groups are the rural agricultural labour households and the urban casual labour households.

9. When is a person considered as poor?

A person is considered as poor if his/her income or consumption level falls below a given minimum level necessary to fulfil basic needs.

10. Which social groups, according to some recent studies, have seen a decline in poverty in the 1990s?

The scheduled castes, rural agricultural labourers and the urban casual labour households have seen a decline in poverty in the 1990s.

11. Name the states of India where there has been a significant decline in poverty.

Kerala, Jammu and Kashmir, Andhra Pradesh, Tamil Nadu, Gujarat and West Bengal.

12. States like Punjab and Haryana have traditionally succeeded in reducing poverty. How did they make it possible?

These states have reduced poverty with the help of high agricultural growth rates.

13. How have Andhra Pradesh and Tamil Nadu reduced poverty?

These states have reduced poverty with the help of public distribution of food grains.

14. How is poverty defined by World Bank?

All those persons living on less than 1$ per day are considered to be extremely poor.

15. What led to the substantial decline in poverty in China and Southeast Asian countries?

As a result of rapid economic growth and massive investments in human resource development poverty has been deceived substantially in these countries.

16. What is the international Poverty Line?

The International Poverty Line means population below 1$ a day.

17. What is the historical reason behind the widespread poverty in India?

It is the low level of economic development under the British colonial administration. The policies of colonial government ruined traditional handicrafts and discouraged development of industries like textiles.

18. What perpetuated the cycle of poverty in India?

The failure at the two fronts i.e. promotion of economic growth and population control perpetuated the cycle of poverty in the country.

19. Mention one major reason behind huge income inequalities.

It is the unequal distribution of land and other resources.

20. What is both the cause and effect of poverty?

The high level of indebtedness is both the cause and effect of poverty.

21. The current anti-poverty strategy of the government is based broadly on two planks. Mention them.

i) Promotion of economic growth.

ii) Targeted anti-poverty programmes.

22. Name any two countries which have high percentage of population living below poverty.

Nigeria and Bangladesh.

23. Which period in India has been characterised by higher economic growth?

The period between the 1970s and 1990s has been characterised by higher economic growth in India.

24. How can you ay that there is a strong link between economic growth and poverty reduction? Give one point.

Economic growth widens opportunities and provides the resources needed to invest in human development.

25. What is NREGA? When was it passed?

NREGA which stands for National Rural Employment Guarantee Act, was passed in September 2003. The Act provides 100 days assured employment every year to every rural household in 200 districts.

26. What is the National food for Work Programme (NFWP)?

The National Food for Work Programme was launched in 2004 in 150 most backward districts of India. The programme is open to all poor who are in need of wage employment and desire to do manual unskilled work.

27. Mention two major reasons for less effectiveness of the anti-poverty programmes?

i) The lack of proper implementation.

ii) Right targeting.

28. How would be poverty reduction possible in India in the coming years?

Poverty reduction would be possible in India through higher economic growth, increasing stress on universal free elementary education, declining population growth, increasing empowerment of the women and economically weaker sections of society.

III. Short Answer Type Questions:

1. What are the dimensions of poverty?

There are several dimensions of poverty:

i) Poverty means hunger and lack of shelters.

ii) It is a situation in which parents are not able to send their children to schools.

iii) It is a situation where sick people cannot afford treatment.

iv) Poverty also means lack of clean water and sanitation facilities.

v) It also means lack of regular job at a minimum decent level.

vi) It also means living with a sense of helplessness.

2. Describe how you will identify poverty on the basis of social exclusion and vulnerability.

Identification of poverty on the basis of social exclusion:

According to this concept, poverty must be seen in terms of the poor having to live only in a poor surrounding with other poor people, excluded from enjoying social quality to better-off people in better surrounding. Broadly, it is a process through which individuals or groups are excluded from facilities, benefits and opportunities that others enjoy.

Identification of poverty on the basis of vulnerability:

Vulnerability to poverty is a measure which describes the greater probability of certain communities such as members of a backward caste or individuals such as a widow or physically handicapped person of becoming or remaining poor in the coming years.

3. There has been a significant decline in poverty in some states of India such as Kerala, Jammu and Kashmir, Andhra Pradesh, Tamil Nadu etc. How has this become possible?

i) Kerala has focused more on human resource development.

ii) In West Bengal, land reform measures have helped in reducing poverty.

iii) In Andhra Pradesh and Tamil Nadu public distribution of food grains could have been responsible for reducing poverty.

iv) States like Punjab and Haryana have traditionally succeeded in reducing poverty with the help of high agricultural growth rates.

4. How ids the high level of indebtedness both the cause and effect of poverty?

i) Small farmers are many in numbers. They need money to buy agricultural inputs like seeds, fertilisers, pesticides etc.

ii) Since they are poor people, they hardly have any savings. In such circumstances they are bound to borrow money from moneylenders at a high rate of interest.

iii) Unable to pay because of poverty, they become victims of indebtedness.

iv) So, it is right to say that the high level of indebtedness is both the cause and effect of poverty.

5. Describe the objectives of the following anti-poverty programmes:

i) Swarnajayanti Gram Swarozgar Yozana (SGSY): This programme was launched in 1999. The programme aims at bringing the assisted poor families above the poverty line by organising them into self-help groups through a mix of bank credit and government subsidy.

ii) Pradhan Mantri Gramodaya Yozana (PMGY): This programme was launched in the year 2000. Under it, additional central assistance is given to states for basic services such as primary health, primary education, rural shelter, rural drinking water and rural electrification.

6. How is economic growth associated with poverty reduction?

Or

There is a strong link between economic growth and poverty reduction. Explain.

i) Till the early eighties, India’s economic growth was very slow. Afterwards the growth rate jumped from the average of about 3.5 per cent a year in the 1970s to about 6 per cent during the 1980s and 1990s.

ii) The higher growth rates have helped significantly in the reduction of poverty, making it clear that there is a strong link between economic growth and poverty reduction.

iii) Economic growth widens opportunities and provides the resources needed to invent in human development.

iv) This also encourages people to send their children, including the girl child, to schools in the hope of getting better economic returns from investing in education.

7. What are the major reasons for less effectiveness of the anti-poverty measures?

Major reasons are given below:

i) Lack of proper implementation and right targeting.

ii) There has been a lot of overlapping of schemes. Despite good intentions, the benefits of these schemes are not fully reached to the deserving poor.

iii) Improper monitoring of the poverty alleviation programmes.

8. There is a strong link between economic growth and poverty reduction. Explain.

i) The higher growth rates have helped significantly in the reduction of poverty. In the eighties, India’s economic growth was one of the fastest in the world. The growth rate rose from the average of about 3.5 per cent a year in the 1970s to about to 6 per cent during the 1980s and 1990s.

ii) The higher growth rates have helped significantly in the reduction of poverty. Therefore, it is becoming clear that there is a strong link between economic growth and poverty reduction.

iii) Economic growth widens opportunities and provides the resources needed to invest in human development. This also encourages people to send their children, including girls to schools in the hope of getting better economic returns from investing in education.

9. What are the two planks on which the anti poverty strategy of the government is based?

The two planks on which the anti-poverty strategy of the government is based:

i) Promotion of economic growth: The higher growth rates have helped significantly in the reduction of poverty. In the eighties, India’s economic growth was one of the fastest in the world. The growth rate rose from the average of about 3.5 per cent year in the 1970s to 6 per cent during the 1980s and 1990s. therefore, it is becoming clear that there is a strong link between economic growth and poverty reduction.

ii) Targeted anti-poverty programmes: The government formulated several anti-poverty schemes to eradicate poverty such as National Rural Employment Guarantee Act (NREGA) 2005, Prime Minister Rozgar Yojana (PMRY), Rural Employment Generation Programme, Swarnajayanti Gram Swarozgar Yojana (SGSY), Pradhan Mantri Gramodaya Yojana (PMGY), Antyodaya Anna Yojana (AAY), National Food for Work Programme.

10. Mention any two aims of the following anti-poverty schemes started by the government.

i) National Food for Work Programme (NFWP)

i) It was launched in 2004 in 150 most backward districts of the country.

ii) It was started for the poor who were in need of wage employment and had desire to do manual unskilled work.

iii) Food grains are provided free of cost to the states.

ii) Prime Minister Rozgar Yozana (PMRY)

i) It was started in 1993.

ii) The aim of the programme is to create self-employment opportunities for educated unemployed youth in rural areas and small towns.

iii) It also helped in setting up small businesses and industries.

iii) Rural Employment Generation Programme (REGP)

i) It was launched in 1995.

ii) The aim of the programme is to create self-employment opportunities in rural areas and small towns.

iii) A target for creating 25 lakh new jobs has been set for the programme under the Tenth Five Year plan.

IV. Long Answer Type Questions:

1. There is plenty of food in the world for everyone then why do so many people still die of hunger?

i) Poverty means hunger and lack of shelter. It also situation where a person fails to attain the basic facilities like medical facilities, educational facilities and basic civic amenities.

ii) Around 25,000 people die every day of hunger or hunger related causes, according to the United Nation and most of them are children. Though there is plenty of food in the world for everyone but due to lack of money to buy, people are malnourished, they become weaker and often sick.

iii) This makes them increasingly less able to work, which then makes them even poorer and hungrier. This downward spiral often continues until death for them and their families.

iv) Several programmes have been started to solve this problem in India. ‘Food for work’ programme- where the adults are paid with food to build schools, digs wells, and makes roads and so on. This both nourishes them and builds infrastructure to end the poverty.

v) ‘Food for education’ programme- where the children are provided with food when they attend school. Their education will help them to escape from hunger and global poverty.

V. Value Based Questions:

1. What according to you can be done to reduce poverty in India?

No doubt, poverty has declined in India, but despite the progress, poverty reduction is still India’s most compelling challenge. Wide disparities in poverty can be seen between rural and urban areas and among different states.

For reducing poverty in India, the following measures can be taken:

i) Stress should be given on universal free elementary education. One should keep it in mind that spread of education can reduce poverty to a great extent. Hence, every educated person must try to spread education among illiterate people.

ii) It is very important to control growing population of our country. Unless population growth is declined, it is difficult to bring any desired results in reducing poverty.

iii) Employment of the women and the economically weaker sections of society is very important. Their upliftment would definitely reduce poverty.

2. What are the main features of the Pradhan Mantri Rozgar Yozana and the Pradhan Mantri Gramodaya Yozana?

The Pradhan Mantri Rozgar Yozana aims at creating self-employment opportunities for educated unemployment youth in rural areas and small towns. They are helped in setting up small business and industries.

Under the Pradhan Mantri Gramodaya Yozana, additional central assistance is given to states for basic services such as primary health, primary education, rural shelter, rural drinking water and rural electrification.