Revision Notes for Class 9 Social Science

Economics Chapter 3 – Poverty as a Challenge

1. Introduction
• Definition of Poverty: Poverty is a state where individuals lack access to essential
resources required for a basic standard of living. This includes inadequate food,
shelter, and access to healthcare and education.
• Importance of Studying Poverty: Understanding poverty is crucial for designing
effective policies and measures to improve the quality of life for the disadvantaged
and achieve equitable economic development.
2. Poverty as Seen by Social Scientists
• Concept of Poverty: Social scientists view poverty as a multidimensional issue that
affects various aspects of life including economic, social, and psychological factors.
• Income and Non-Income Measures: While income is a critical factor in determining
poverty, social scientists also consider access to services, social exclusion, and living
conditions as part of poverty analysis.
3. Poverty Estimates
• Methods of Estimation: Poverty estimates are derived from surveys and data
collection on income, consumption, and living conditions. Common methods include
income-based measures and consumption-based measures.
• Data Sources: Governments and research organisations conduct surveys such as the
National Sample Survey (NSS) and Household Consumer Expenditure Survey to
gather data for estimating poverty.
4. Global Poverty Scenario
• Current Status: Global poverty has seen significant reductions over the years, but it
remains a major issue in many developing countries.
• Regional Disparities: Poverty levels vary significantly across regions, with sub-
Saharan Africa and South Asia having some of the highest poverty rates.

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 5. The Challenges Ahead
• Addressing Inequality: Reducing disparities between different socio-economic
groups is crucial for effective poverty reduction.
• Ensuring Effective Implementation: Ensuring that anti-poverty measures are
effectively implemented and reach the intended beneficiaries is a significant
challenge.
• Sustainable Development: Balancing economic growth with environmental
sustainability and social equity is necessary to create lasting solutions to poverty.
6. Poverty Line
• To measure poverty, a common method is generally used which is based on income &
consumption levels. If a person is unable to satisfy his/her basic needs then he or she
is considered as poor. Poverty line also varies with time and place. For each country,
the poverty line is considered different.
• Basic amenities like food requirements, clothing, footwear, fuel, education, light &
the medical requirements are determined for measuring poverty. Food items like
cereals, pulses, vegetables, oil, and sugar together provide calories to the body.
Calorie requirement varies with age, sex, and type of work that a person does. In
India, the average calorie requirement is 2400 calories/day in rural areas and 2100
calories/day in urban areas. People living in rural areas are also associated with more
heavy physical work hence the calorie requirement is higher in people living in rural
areas in comparison to urban areas. The National Sample Survey Organisation
(NSSO) is responsible for doing surveys to determine the standard of the poverty line
in the country.
7. Vulnerable Groups in India
• The proportion of people who are below the poverty line is not equal for all the social
groups & economic categories in the country. Some groups are more vulnerable than
others. These are Scheduled Castes and the Scheduled Tribe households. Also, among
the economic groups, agricultural labourers & the urban casual labours are more
vulnerable. In India, out of 100 poor people, 43 of them are of Scheduled Tribes. 34%
of casual urban workers are also below the poverty line. 23% percent of the
Scheduled Castes community are also poor.

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 • Recent studies have shown that except for Scheduled Tribe households the other
groups of Scheduled Castes, rural agricultural labourers, and the urban casual
labourers have seen a decline in poverty since 1990. In poor families, some people
also suffer more than others. In some cases, women, female infants, and elderly
people are denied equal access to resources available to the family.
8. Interstate Disparities in Poverty Levels
• Not every state in the country has the same proportion of poor people. The success
rate of poverty reduction since the early seventies generally varies from state to state.
• The all-India headcount ratio is 21.9% in states like Madhya Pradesh, Uttar Pradesh,
Assam, Bihar & Orissa. This was also lower than the all-India poverty levels in the
year 2011-12. To date, Bihar and Orissa are the two of the poorest states having
poverty ratios of 33.7 and 32.6. However, there has been a good decline of poverty in
the states of Maharashtra, Kerala, Andhra Pradesh, Tamil Nadu, Gujarat & West
Bengal. The states of Haryana and Punjab have also succeeded in poverty reduction
with the help of high agricultural growth. Kerala has focused on human resource
development.
• In West Bengal, land reform measures had been undertaken which helped in poverty
reduction. Andhra Pradesh & Tamil Nadu had distributed food grains amongst the
public which reduced the poverty levels.
9. Causes of Poverty
There are various reasons for the prevalence of widespread poverty in India. Some of these
are:
• Economic exploitation under British colonial rule can be seen as one of the reasons.
The policies of the British government ruined traditional cottage, handicrafts & textile
industries. The low growth rate was also persistent till the 1980s. There were low job
opportunities and incomes accompanied by high population growth. The growth rate
per capita income was also extremely low.
• With the dawn of the Green Revolution in the country, new job opportunities were
created also in the agricultural sector. The problem with this was that it was limited to
some parts of the country. There were industries in the public & private sectors which
provided some jobs but were unable to provide jobs to all the seekers. People who
were unable to find proper jobs started working as construction workers, vendors,

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 domestic servants, rickshaw pullers, etc. These people then could not afford proper
housing and hence started living in slums.
• Another reason for this high poverty rate in the country has been huge income
inequalities. This was because of the unequal distribution of land & resources. In
India, there is also a lack of proper land resources and this has also been a major cause
of poverty.
• Proper implementation of government policies will improve the conditions of
poverty-stricken people.
• Farmers in the country also require money to buy agricultural inputs like fertilisers,
pesticides, seeds, etc. They used to borrow money which they were then unable to
repay because of poverty. When they are unable to repay the loan, they become
victims of indebtedness which is both a cause and effect of poverty.
• Money is then spent in the country by both the poor and the non-poor to fulfil social
and religious obligations and ceremonies. This spent money could be used for
something else in a meaningful manner.
10. Anti-Poverty Measures
Presently, the anti-poverty scheme has two parts to it. First is the promotion of economic
growth and second is targeted anti-poverty programmes. Since 1980 India's economic
growth has been one of the fastest in the world. Economic growth and poverty reduction
are associated with each other. There were some schemes formulated aimed at reducing
poverty. These are-
• The MGNREGA or Rural Employment Act of 2005 - This act provided 100 days
of wage employment to every household in rural areas to ensure their livelihood
security. It proposed that one-third of job vacancies would be reserved for women. It
aimed to manage situations of deforestation, drought, and soil erosion.
• Pradhan Mantri Gramodaya Yojana of 2000 was started to assist states with
services like primary health and education, rural shelter, rural drinking water, and
rural electrification.
• In 1999, the Swarna Jayanti Gram Swarozgar Yojana was also started which
aimed to assist low-income families in coming above the poverty line by organising
them into self- reliant groups by the help of bank credit and government subsidy.

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 • Rural Employment Generation Programme - Launched in 1995 to create self-
employment opportunities in the small towns, and rural areas.
• In 1993, the Prime Minister Rozgar Yojana was launched. This initiative aimed to
create as well as provide employment opportunities in rural areas and small towns.
11. Upcoming Challenges
The poverty rate in India has been declining but it remains a challenge. It is expected that
poverty reduction will make better progress in the upcoming years. Economic growth, free
elementary education, a declining population, and empowered women will help in
reducing poverty levels in the country.

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