Vishal Goyal‘Poverty – The lack of basic necessities and

resources’ TECH52254IIT Kanpur

What is poverty ?• Poverty is a condition in which a person finds him unable to maintain a living

standard adequate for his physical and mental efficiency. According to Adam Smith, “Man is rich or poor according to the degree in which he can afford to enjoy the necessaries, the conveniences and the amusements of human life.”

Poverty is looked through other social indicators like- • 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, etc.

Poverty in India • After the 90s , India has made rapid strides in diverse fields and has

reached the moon .India is standing on the threshold of being an economic superpower. But the harsh realities below this growth are that many of Indians cannot afford a proper meal everyday.• The so called ’Economic Boom’ has not reached the Common Man.

There are only islands of prosperity amidst gigantic oceans of poverty.• What is the use of growth if it is not inclusive and just takes a few

people forward whereas the rest are left to fend for themselves. India ranks a poor 128 out of 177 countries in the latest rankings released by the United Nations Development Programme’s Human Development Index (HDI).

• Poverty in India is widespread, with the nation estimated to have a third of the world’s poor. In 2011, World Bank stated, 32.7% (39,56,70,000) of the total Indian people fall below the international poverty line of US$ 1.25per day (PPP) while 68.7% live on less than US$ 2 per day .• Considering the size of India, poverty differs greatly from one state to another. The states

of Bihar and Uttar Pradesh each has more than 100 million people living below the poverty line while the states like Kerala, Goa are relatively prosperous.

A corrupt ‘Poverty Line’ • The poverty in India is measured by a poverty line that is probably

one of the most disputed and incessantly attacked measure in the world. Several of the states do not recognize the poverty line set by the government .• India's central government is undecided on criteria to identify

families below poverty line. Many ministers in the past have come under huge fire due to their impractical remarks on poverty.• The Planning Commission in March,2012 set poverty line to Rs 28.65

per capita daily consumption in cities and Rs 22.42 in rural areas . Many social activists have mocked this demarcation calling it a ‘starvation line’ as it takes into account only the minimum calories necessary for survival but not the other necessities like clean water , education , health and sanitation facilities .

Effects of Poverty• Malnutrition- According to the World Bank estimates, of about 49 percent of

the world's underweight children, 34 percent of them live in India .India has one of the highest infant mortality rates in the world . The 2011 Global Hunger Index (GHI) Report ranked India 15th, amongst leading countries with most aggravating hunger situation. Due to increasing inflation , the poor cant arrange for minerals and other nutrients rich foods , resulting in deficiency diseases and thus , high child mortality rates.

• Education- For an emerging and developing country like India, development of underprivileged children through holds the key to the progress of the nation itself. Less than half of India's children between the age 6 and 14 go to school . A little over one-third of all children who enroll in grade one reach grade eight. They are forced to leave their education midway to work and support their families . Thus, they remain illiterate and unaware of schemes available for their welfare .

• Poor Shelter facilities -One in six urban Indians lives in slum housing that is cramped, poorly ventilated, unclean and "unfit for human habitation", according to the country's first complete census of its vast slum population. The deteriorating situation can be made clear by an example of Mumbai ,where 40% of the population lives in slums but occupies only 6% of Mumbai’s land. Such dwellings are devoid of basic amenities like clean potable water , sanitation facilities and electricity .Due to lack of poor sanitation facilities and unhygienic conditions, people usually fall prey to communicable diseases.

• Slavery – A large number of Indian people including children work under slavery in unhygienic conditions . India has the dubious distinction of being home to half the number of modern day slaves in the world. The first Global Slavery Index has estimated that 13.3 to 14.7 million people live like slaves in the country. Though the law forbids employing children under 14 , but the need to satiate hunger forces them to work in dangerous condition . Children and women are sold as sex-slaves where they are abused and humiliated .

• Increase in Crime - Poverty is a root cause of crime, and without solving the poverty issue it may not be possible to solve the violent crime issues plaguing India . Poverty is associated with low income and high unemployment and so it causes social distress. Impoverished persons are more likely to be engaged in underground economy, use drugs and alcohol, which, in turn are highly associated with violent crimes, domestic violence, and high crime rates. One of the effects of poverty on children’s development is to lead them to build an antisocial behavior that acts as a psychological protection against their hostile environment. Discrimination and social exclusion often push them to more aggressiveness and less self-control and nuance in reaction to stressful events. Having often been taken advantage of in their early childhood, they rarely come to a constructive way to deal with conflicts.

Causes of Poverty • Population Explosion - India is the second most populated country and with population

growth of 2.2%, it is likely to overtake China by 2025. Over 20 million people are added to its population each year increasing the demands for consumption goods and basic amenities like food , clothing and shelter. The short supply of commodities results in increase in their prices.

• Low Agricultural Productivity – About 2-3rd of the country’s population lives in villages. Most of the rural population are dependent on agriculture to make their livelihood. But the farmers still employ obsolete methods of farming and are also over-dependent on monsoons for the success of their crops . Change in patterns of rainfall causes crop failure thus ruining the farmers and increasing the debt on them . The huge wave of farm suicides in Indian rural population from 1997 to 2007 totalled close to 200,000, according to official statistics.

• Political Factors –Before Independence ,the Britishers reduced Indian economy to a colonial state. They exploited the natural resources to suit their interests and weaken the industrial base of Indian economy .But even in independent India, the development plans have been guided by political and social interests. Many elaborate licenses, regulations requirements cause a lot of welfare and employment-opportunities to cease ,thus preventing the population to benefit from them. As of

Causes of Poverty2006, the government spends less than 0.2% of GDP on agriculture and less than 3% of GDP on education. Corruption in various welfare schemes like MNREGA, Mid-day meal also adversely affects the poor .• Poor Health Services –The Indian Government spends less than 1% of the annual budget

on health services . This should be made aleast 2%. Many middle class families come under burden of heavy debt because of costly privte heath services while the Government Hospitals are either not good nor are available in every city or village.

• Land inequality and distribution –All the developed countries have shown at some point a pattern of very well-distributed land ownership (at least within the rural population), where up to 70 to 80% of the population would own the land (rather than 5% for example).From then on, economic development happened on the basis of more equal societies. But owning land also has a huge impact on agricultural productivity as people are generally willing to invest only in land they own and exploit for themselves. This increase in agricultural productivity then means more growth and less poverty at the same time.After that, people start nurturing their physical and human capital, their kids can afford school, and the household gains higher social status, thus reducing social inequalities and problems of access to resources.

Poverty AlleviationRoti, Kapda aur Makaan is just a distant dream for many of the poor people in our country while MacDonalds and KFCs are flooding the nation. The people of India, who are below the poverty line, should not be left to struggle for their daily survival. The booming Indian economy should include them as well.If India is to progress to be a superpower, it will have to showcase inclusive growth.

• Unemployment leads to financial crisis and reduces the overall purchasing capacity of a nation. This in turn results in poverty followed by increasing burden of debt. In rural India, even during the period of good harvest, the Indian farmers are not employed for the entire year. Thus ,I would suggest that the Government should set up cottage industries in villages like bees rearing,making candles , handloom to provide employment to the poor. While in cities , poor people should be involved in infrastructure improving projects to provide them employment for their livelihood.

Poverty Alleviation• Rise in prices over time or inflation also affects the poor. Hoarders

and black marketers should be punished and strict actions should be taken against them. The Government shold aim to remove the middlemen between the farmers and the local markets, so that poor people can get edible products at nominal process. The Government should promote use of indigenous items over imported ones. This would reduce inflation on one hand while also increasing employment opportunities in the country itself.• For the deteriorating education system , I would suggest that the

Government should open new state schools while also improving the quality of the existing ones. Children should be taught elementary skills and vocational skills so that they can make use of them in the future. Schemes like Mid-day meal should continue with proper efficiency so that more number of students are attracted to schools.

Poverty Alleviation• Housing programmes or awaas yojnas should be run by the

Government to shift the people living in the slums below the poverty line to small houses at nominal rates .Similarly, katccha houses in villages should be replaced with pakka ones with proper sanitation facilities. This would help in preventing the spread of diseases.• The government should become more accountable and carry out the

reform policies without corruption . Many policies and reforms are carried out by the Government like MNREGA,NRHM but significant changes are not visible due to rampant corruption .There should be no irregularities in the Public Distribution System for the poor so that the poor can have easy access to the subsidized ration. BPL cards should not be made available to the people above the poverty line .

Poverty Alleviation• Poor households should be encouraged and motivated to form

groups which are the principal institutional mechanism for organizing and pursuing community development activities in the village. These households would then begin to understand the value of association or organization and routine interaction and the power they can have through asserting themselves as citizens and members of the society. The groups should be encouraged to engage in income-generating activities using their own resources and capabilities.• The Government should increase the investment in the health sector.

A physically strong population is an asset to the nation. Clinics shoul be opened in each big village and doctors should be motivated to serve the poor villagers as well . . Awareness-raising in several areas, such as immunization, sanitation should be pursued.

A lot has been done, a lot is left to accomplish Legislation alone cannot empower people. People need to be motivated to help their poor countrymen. Poverty is a social evil that will have to be defeated. The people of India, who are below the poverty line, should not be left to struggle for their daily survival. The booming Indian economy should include them as well. After all, development is not just moving ahead but also ensuring that no one is left behind.

Thank you..