Economic Factors
Poverty in India is influenced by economic factors. High levels of unemployment contribute to reduced income and increased poverty rates. Low income levels, characterised by insufficient wages and income inequality, exacerbate poverty. Inflation erodes purchasing power, pushing more individuals into poverty. Limited access to credit restricts investment in education and business, further entrenching poverty.
Social Factors
Social factors play important role in perpetuating poverty in India. The caste system creates discrimination that limits access to resources and opportunities for certain groups. Gender inequality restricts women’s access to education and employment, increasing poverty rates among female-headed households. Low levels of education and literacy hinder job opportunities and economic mobility. Social exclusion of marginalized groups, such as Scheduled Castes and Scheduled Tribes, reinforces systemic barriers to economic advancement.
Political Factors
Political factors contribute to poverty dynamics. Corruption leads to misallocation of resources and funds, exacerbating poverty. Ineffective governance hampers the implementation of policies aimed at poverty alleviation. Political unrest and instability disrupt economic activities and displace populations, further complicating poverty issues.
Environmental Factors
Environmental challenges impact poverty in India. Natural disasters, such as floods and droughts, can destroy livelihoods and infrastructure. Climate change affects agriculture and water supply, impacting food security. Overexploitation of natural resources leads to scarcity, which can exacerbate poverty.
Health-Related Factors
Health-related issues are closely linked to poverty. Illness and disability reduce productivity and increase medical expenses, leading to poverty. Lack of access to healthcare services exacerbates health problems and economic vulnerability. Malnutrition affects physical and cognitive development, limiting future economic opportunities for individuals.
Cultural Factors
Cultural attitudes and practices can influence poverty levels. Cultural perceptions about work and success may affect economic participation. Family structures, particularly single-parent households, may face higher poverty rates due to limited income sources. Certain cultural practices may restrict economic opportunities for specific groups.
Global Factors
Global factors also contribute to poverty in India. Globalisation can create opportunities but may also lead to job losses in traditional sectors. Unfavourable trade policies can disadvantage local industries and farmers. High levels of national debt can limit government spending on social programs aimed at poverty alleviation.
Nature of Poverty
Poverty manifests in various forms. Absolute poverty is defined as living on less than $1.90 a day, according to World Bank standards. Relative poverty considers an individual’s economic status in relation to others in society. Multidimensional poverty includes factors such as education, health, and living standards, not just income. Chronic poverty persists over time, often across generations, while transient poverty is temporary, resulting from economic shocks or personal circumstances.
Indicators of Poverty
Several indicators are used to measure poverty levels. Income levels provide a basic measurement through income thresholds. The Human Development Index (HDI) combines indicators of life expectancy, education, and per capita income. The poverty line serves as a benchmark to assess poverty levels, while consumption expenditure analysis gauges spending patterns among the poor.
Poverty Measurement Tools
Various tools are employed to measure poverty. The poverty headcount ratio indicates the percentage of the population living below the poverty line. The poverty gap index measures the intensity of poverty by considering how far the poor are from the poverty line. The Multidimensional Poverty Index (MPI) assesses poverty through various deprivations in health, education, and living standards.
Issues Related to Poverty
Several issues are associated with poverty in India. Homelessness is directly linked to poverty, with portion of the poor being landless and homeless. Unemployment results from a lack of skills necessary for the job market. Families tend to have larger sizes among the poor, leading to inadequate education and nutrition for children. Illiteracy limits opportunities, while poor health and malnutrition hinder economic advancement. Child labour is prevalent, denying education and affecting health. Social and economic inequalities lead to exclusion from mainstream society, while helplessness forces individuals to accept any available work, perpetuating the cycle of poverty.
Poverty Trap
The concept of the poverty trap illustrates how poverty perpetuates itself. Individuals lacking resources for quality education and skills face poor physical health, reducing productivity and income. This cycle makes it challenging for individuals to escape poverty, creating a self-reinforcing pattern that is difficult to break.
Questions for UPSC:
- Critically analyse the role of the caste system and gender inequality in perpetuating poverty in India, providing suitable examples.
- Estimate the impact of ineffective governance and corruption on poverty alleviation efforts in India. How can these issues be addressed?
- Point out the environmental challenges that contribute to poverty in India. Discuss the need for sustainable development practices to mitigate these challenges.
- What is the Multidimensional Poverty Index (MPI)? How does it differ from traditional income-based poverty measurements in capturing the complexities of poverty?
Answer Hints:
1. Critically analyse the role of the caste system and gender inequality in perpetuating poverty in India, providing suitable examples.
- The caste system restricts access to education and employment opportunities for marginalized groups.
- Gender inequality limits women’s participation in the workforce, contributing to economic dependency.
- Social stigma and discrimination hinder access to resources and social mobility.
- Examples include Dalit women facing double discrimination and lower wages compared to men.
- Government initiatives like reservations and skill development programs aim to address these issues.
2. Estimate the impact of ineffective governance and corruption on poverty alleviation efforts in India. How can these issues be addressed?
- Ineffective governance leads to misallocation of resources, undermining poverty alleviation programs.
- Corruption diverts funds meant for welfare schemes, reducing their effectiveness.
- Accountability and transparency are essential to restore public trust in governance.
- Implementing technology-driven solutions can improve monitoring and reduce corruption.
- Strengthening institutions and civil society participation can enhance governance quality.
3. Point out the environmental challenges that contribute to poverty in India. Discuss the need for sustainable development practices to mitigate these challenges.
- Environmental degradation, such as deforestation and pollution, disproportionately affects the poor.
- Climate change impacts agriculture, leading to food insecurity and increased poverty levels.
- Water scarcity and poor sanitation exacerbate health issues, hindering economic productivity.
- Sustainable development practices can enhance resource management and community resilience.
- Investing in renewable energy and conservation can create jobs and promote economic growth.
4. What is the Multidimensional Poverty Index (MPI)? How does it differ from traditional income-based poverty measurements in capturing the complexities of poverty?
- The MPI measures poverty through multiple deprivations, including education, health, and living standards.
- Unlike income-based measures, MPI captures the broader spectrum of poverty beyond just financial means.
- It provides a more accurate representation of poverty by considering various socio-economic factors.
- MPI allows for targeted interventions by identifying specific areas of deprivation in communities.
- Countries can use MPI data to formulate comprehensive policies addressing the root causes of poverty.
