POVERTY AS CHALLENGE

1) Discuss the major reasons for poverty in India.

The major reasons for poverty in India were:
a) Colonial rule: India went through a long phase of low economic development under the British colonial administration. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles.
b) High growth in Population: The rapid growth of population, particularly among the poor, is one of the major reason for Indian poverty. Poor people are illiterate and have a traditional outlook. Hence, they are either ignorant of birth control measures are not convinced of the need of birth control. Moreover they consider a male child as an asset i.e., as a source of income and a source of security.
c) Unemployment: Another important factor for the incidence of high poverty in India is the high degree of unemployment and underemployment. The Job seekers are increasing at a higher rate than the increase in the employment opportunities
d) Low rate of economic development: The actual rate of growth in India has always been below the required level. It has been around 4% since 1951

2) Give an account of Inter-State disparities of poverty in India.

The proportion of poor is not eh same in every state in India. Though there has been a decline in poverty in every since from the early seventies, the poverty ratio varies from state to state. Among these, Chhattisgarh & Bihar continue to be the two poorest states. Both rural & urban poverty are quite high in these states. On the other hand, Tamilnadu, AP, Gujarat, J&K, Kerala, Punjab & West Bengal have shown a significant decline of poverty.

3) Describe global poverty trends

The proportion of people in developing countries living on less than 1.25 per day has fallen from 43% in 1990 to 22% in 2008 due to rapid economic growth and massive investment in human resource development, poverty has declined substantially in China and South East Asia Countries.

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

The main features of the National Rural Employment Guarantee Act, 2005 are:
a) The act assures 100 days of employment
b) Initially covering 200 districts then covering 600 districts
c) One-third jobs reserved for women
d) The share of SC’s & ST’s and women was 23%, 17% & 53%
e) Under this the wages has increased from 132/- in 2006-07 to 265/- in 2013-14

5) Explain the two method to estimate poverty line.

The 2 methods used to estimate poverty line are
a) Income method: If this method, the poverty line is estimated with the help of minimum income required. In this year 2011-2012 the poverty line for a person was fixed at Rs.2816/- per month for the rural areas.
b) Consumption method: In this method, the average calorie requirement of a person is multiplied to the current prices.

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