Poverty: Types & Challenges|UPSC Notes

Poverty is a global issue affecting millions of people across countries and continents. It is a state where people lack the necessities like food, shelter, and access to education or healthcare. In many countries, including India, poverty continues to impact lives despite several efforts to combat it. For many, living in poverty means battling hardships every day. It impacts not just economic aspects but also emotional well-being. By examining What is poverty?, its causes, types, and solutions, we can gain better insight into why it persists and how it can be reduced.

• Poverty limits access to essential resources such as food, clean water, and education.
• Lack of employment opportunities worsens the situation for those living in poverty.
• Poverty in India has deep-rooted causes and affects multiple sectors.
• People Below Poverty Line struggle to meet even the most basic daily needs.

GS Paper	GS Ppare III
Topics for UPSC Prelims	Inflation, GDP, National Income, Fiscal Policy
Topics for UPSC Mains	Inclusive growth, Government budgeting, Food Security

What is Poverty?

It refers to a condition where individuals cannot meet the minimum standard of living. It is not just about lacking money but also missing access to essential services like healthcare, education, and housing. The United Nations defines poverty’s as the denial of choices and opportunities for a sustainable and fulfilling life.

There are many different ways to measure poverty’s. It includes income-based measures and non-monetary factors such as access to education, healthcare, and employment opportunities. People living in extreme poverty’s earn less than $1.90 a day, according to the World Bank.

Causes of Poverty

There are several reasons behind Poverty, ranging from economic and social factors to individual circumstances. These factors combined create a vicious cycle of poverty where the lack of resources leads to further deprivation. Some of the primary Causes of Poverty include:

Lack of education

Education is essential for securing better job opportunities. Without proper education and skill development, individuals find it difficult to break out of poverty, limiting their ability to earn a decent living and support their families. This lack of education perpetuates the cycle of poverty across generations, especially in marginalized communities.

Unemployment and underemployment

High unemployment rates or jobs that don’t provide adequate income worsen poverty. Many people, especially in rural areas, struggle to find stable work, while others remain underemployed with limited wages. This leads to financial insecurity, making it harder for them to afford basic necessities and improve their living conditions.

Economic inequality

The growing gap between the rich and the poor creates a significant divide in society. Wealth remains concentrated among a few, while a large section of the population struggles to meet their daily needs. This inequality restricts social mobility and access to opportunities, pushing many individuals deeper into poverty.

Social discrimination

Factors like caste, gender, religion, and ethnicity play a significant role in marginalizing certain groups. These marginalized individuals face limited access to education, healthcare, and employment opportunities. Social discrimination often traps them in a cycle of poverty, making it harder to escape despite efforts at progress.

Environmental disasters

Natural disasters like floods, droughts, and earthquakes can devastate communities, especially in poor regions. These events destroy homes, crops, and livelihoods, pushing already vulnerable populations further into poverty. Recovery is often slow, and many people struggle to rebuild their lives due to lack of resources and government assistance.

Poor governance

Corruption, ineffective policies, and mismanagement of resources can hinder poverty alleviation efforts. When governments fail to provide essential services or ensure social protection, it leaves the poor more vulnerable. Inadequate implementation of poverty reduction programs contributes to the persistence of poverty in many regions.

Types of Poverty

Poverty can be classified into different types based on how it impacts people’s lives. Types of poverty refer to different ways poverty impacts people’s lives. It can be classified into various forms, such as absolute, relative, situational, and chronic poverty. Each type highlights distinct challenges and requires different solutions to address effectively. The main Types of Poverty include:

Absolute Poverty

This is the most extreme form where individuals cannot meet their basic needs such as food, water, shelter, and clothing. People in absolute poverty struggle for survival and are deprived of essential resources necessary for a minimum standard of living. This type of poverty is commonly seen in underdeveloped or developing countries with widespread economic hardships.

Relative Poverty

In this type, people are considered poor compared to others in their society. It occurs when individuals earn less than the average income in a given country or community. While they may have access to basic needs, they cannot afford the same lifestyle, opportunities, or privileges as others, creating social and economic inequality.

Situational Poverty

This form of poverty arises due to sudden events or crises like natural disasters, loss of a job, or serious illness. It is often temporary, as people fall into it because of external circumstances rather than long-term deprivation. With proper support and recovery, they may escape it and regain their financial stability.

Chronic Poverty

This occurs when people are trapped in it for extended periods, often across generations. Those experiencing chronic it is face long-term deprivation and have limited opportunities to escape their situation. Factors like lack of education, healthcare, or social support contribute to their continued struggle. Breaking free from chronic poverty’s requires significant intervention and sustained support.

Poverty in India

Poverty in India has been a long-standing issue that impacts millions. India has one of the largest populations of people living in poverty’s, with various causes contributing to the situation. Despite economic growth, the wealth distribution is uneven, leaving a large section of the population underprivileged.

India measures Below Poverty’S Line based on income and consumption levels, with those earning less than a defined threshold considered poor. However, poverty’S in rural areas is more prevalent, driven by factors such as lack of education, healthcare, and employment opportunities.

Poverty Estimation in India

India has adopted several methods to estimate Poverty, including income surveys and expenditure assessments. The Planning Commission of India has played a crucial role in determining the BPL status. 

• Poverty Estimation in India has traditionally relied on income and consumption surveys. The Planning Commission developed the BPL criteria based on income thresholds. It categorized households as poor if their earnings fell below a specific amount needed to meet minimum daily needs like food, clothing, and shelter. This method has been criticized for being overly simplistic and narrow.
• In recent years, Poverty’s Estimation in India has evolved to include a multidimensional approach. Organizations like NITI Aayog now use broader indicators like education, healthcare, sanitation, and housing. This method better captures the various aspects of poverty’s, recognizing that income alone cannot measure the deprivation faced by households in terms of essential services and opportunities.
• The Tendulkar Committee in 2009 introduced a revised poverty’s line to address earlier shortcomings. This estimation considered the cost of living and inflation, improving the accuracy of it figures. It helped highlight the real extent of poverty’s in India, emphasizing the need for targeted welfare policies to uplift the most vulnerable sections of society.
• The Rangarajan Committee in 2014 further refined poverty’s’s measurement by using a broader set of criteria. It included aspects like nutrition, education, and healthcare access, providing a more comprehensive understanding of poverty. According to this approach, it estimates showed a higher percentage of the population living under poor conditions compared to previous methods, urging deeper interventions.

Poverty Alleviation Programs in India

Over the years, India has launched several programs aimed at reducing Poverty. These programs have made significant strides in reducing it, but there is still a long way to go. Some of the key Poverty Alleviation Programs in India include:

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Provides at least 100 days of wage employment to rural households, enhancing livelihood security. The program aims to create durable assets like roads, ponds, and canals while empowering rural workers. It also promotes social inclusion by giving priority to women, Scheduled Castes, and Scheduled Tribes in employment allocation.

Pradhan Mantri Awas Yojana (PMAY)

Aims to provide affordable housing for all urban and rural poor by 2022. The scheme offers financial assistance to construct or upgrade homes, ensuring basic amenities. It targets economically weaker sections and low-income groups, addressing the housing deficit and improving the standard of living for millions of Indians.

National Food Security Act (NFSA)

Guarantees subsidized food grains to around 75% of India’s rural population and 50% of the urban population. The act ensures food security through the Public Distribution System (PDS), providing essential items like wheat, rice, and coarse grains at affordable rates to eligible households, thus combating hunger and malnutrition across the country.

Swachh Bharat Mission (SBM)

A nationwide campaign aimed at improving sanitation and hygiene across India, especially in rural areas. The mission focuses on building toilets, promoting cleanliness, and eliminating open defecation. It enhances public health and living standards, contributing to the fight against it by reducing health-related expenditures and improving environmental conditions.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

A financial inclusion initiative that ensures access to banking services for every household in India. The scheme promotes savings, provides credit, insurance, and pension services. It also aims to empower the poor by giving them access to formal financial systems, reducing dependency on informal money lenders, and promoting economic inclusion.

Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)

Aims to improve the employability of rural youth through skill development and training programs. The scheme focuses on providing job opportunities in various sectors, particularly targeting the poor and marginalized. It seeks to break the cycle of by empowering young individuals with marketable skills, improving their income potential.

Challenges in Combating Poverty

While there have been successes in reducing Poverty’s, challenges remain. The lack of adequate infrastructure, education, and healthcare continue to hinder poverty’s alleviation efforts. Moreover, social inequality and discrimination often push marginalized communities deeper into it.

• Lack of Education: Poor access to education limits opportunities for better jobs, trapping individuals and future generations in the cycle of it.
• Unemployment and Underemployment: Lack of stable, well-paying jobs forces people into low-wage work, preventing them from escaping it.
• Social Inequality: Discrimination based on caste, gender, and religion creates barriers to resources, deepening poverty’s for marginalized groups.
• Poor Infrastructure: Inadequate roads, healthcare, and clean water access hinder economic growth and quality of life for the poor.
• Environmental Degradation: Natural disasters and climate change destroy livelihoods, pushing vulnerable communities further into it.
• Inefficient Governance: Corruption and mismanagement reduce the effectiveness of poverty’s alleviation programs, limiting their reach to the needy.

Conclusion

In conclusion, poverty remains a serious problem affecting millions of lives globally. It limits access to basic needs like food, shelter, and education. The causes of poverty’s are complex and require targeted solutions. In India, despite growth, many people still live Below Poverty Line. Programs have helped, but more needs to be done. Combating poverty’s demands coordinated efforts, better policies, and strong infrastructure. Addressing inequality, improving education, and creating job opportunities are essential. Tackling poverty’s is possible with continued focus and commitment from all sectors.

Poverty UPSC Notes

1. Poverty is a multifaceted issue involving economic, social, and political dimensions that impact an individual’s access to resources and opportunities. 2. Absolute poverty refers to a condition where individuals lack basic necessities for survival, while relative poverty is measured against the economic standards of a society. 3. The poverty line is a threshold used to determine the minimum income required to maintain a basic standard of living. 4. Poverty can be influenced by factors such as unemployment, lack of education, and poor health, which limit an individual’s earning potential. 5. Economic growth alone is not sufficient to reduce poverty; targeted social policies and programs are essential for addressing disparities. 6. Poverty alleviation strategies often include measures like social safety nets, access to quality education, and health care services. 7. In developing countries, poverty is exacerbated by issues such as inadequate infrastructure, political instability, and limited access to markets. 8. Monitoring poverty levels and outcomes requires reliable data and indicators to assess the effectiveness of poverty reduction efforts and policies.

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