Poverty : Reasons, Impact and Poverty : Reasons, Impact and SolutionsSolutions

Gundeep AroraGundeep AroraTech-ID 53327Tech-ID 53327

Poverty: Not exactly a state of mind

If not, then what exactly is it?Poverty is a state of not having enough money at hand to meet basic amenities like food, shelter, clothing and education.

Results of Poverty on an IndividualPoor or no housing facility in sustainable hygienic conditions MalnutritionIlliteracyPoor medical facilities at disposalUnavailability of drinking water and sanitationUnemployment or job with unsustainable incomeNo representation in society/government

Where do we stand

today ?The World Bank defines poverty as survival on less than $1.25 per day, according to which, as of 2010, 33% i.e. 400 million Indians were below this lineThe 2011 Global Hunger Index (GHI) Report places India amongst the three countries where the GHI between 1996 and 2011 went up from 22.9 to 23.7, while all the other developing nations which were studied were able to bring the number down.

Facts related to poverty10.8 million people were unemployed (as of Jan 2012)According to a 2005 report, 42% of India’s children below the age of three were malnourishedApproximately 1.72 million children die each year before turning one.Even at a $5 a day poverty line 96 percent of Indians are poor53 million of those who have escaped poverty recently are vulnerable to falling back below the line again

Primary Reasons for PovertyUncontrolled Population : With the population growing faster than the increase in availability of resources, the population without the basic amenities has increased tremendously. Today 78 million Indians are homeless

Unemployment : Because of the ineffective government policies (NREGA, PGY, Annapurna etc) corruption at various levels and slow industrial(manufacturing sector) growth coupled with poor infrastructure, the number of unemployed Indians has crossed 10 million. The current market regulations are not favorable for industries.

Illiteracy : Post independence this has been one of the major problems the government has tried to overcome. Even though we have reached the 81% mark, high drop out rates and poor quality of education in Government schools continue to affect the literacy rate in India. Lack of education leads to lesser employment opportunities

Poor Agricultural Growth: The failure of the government to provide adequate infrastructure facilities for irrigation and farming equipments and lack of financing options for poor farmers has deteriorated the condition of the farmers. Low MSPs, brokers in market and poor monsoons have only added to their misery

Inefficiency of Government Policies

Though the government has brought out a number of policies for Though the government has brought out a number of policies for reducing poverty by providing employment for unskilled labor and reducing poverty by providing employment for unskilled labor and providing subsidized food for those under the poverty line, most of these providing subsidized food for those under the poverty line, most of these have not been successfulhave not been successfulFailure of the Failure of the Public Distribution SystemPublic Distribution System to be able to support the poor to be able to support the poor Improper procurement and unsystematic distribution has led to more Improper procurement and unsystematic distribution has led to more crops being wasted than those being given to the poor at subsidized ratescrops being wasted than those being given to the poor at subsidized ratesPoor Storage facilities and mismanagement of resources have added to Poor Storage facilities and mismanagement of resources have added to the miseries of the farmersthe miseries of the farmersCorruption at different levels have not allowed the poor to benefit from Corruption at different levels have not allowed the poor to benefit from the policiesthe policiesBiased Policies and their failure have led to non-inclusive growthBiased Policies and their failure have led to non-inclusive growth High inflation and lesser employment generation have aggravated the High inflation and lesser employment generation have aggravated the problemproblem

The Poverty Map

Some Observations:The states of Orissa, Bihar, Madhya Pradesh, Jharkhand, Chhattisgarh and Uttarakhand contribute to 2/3rd of the Indian poor populationThese are also the states with high population density and low contribution to GDP of India

Poverty Line:Urban : Rs 30Rural : Rs 27

PovertyRural Urban

27% of the Indian population lives in rural areas and below the poverty

line

Primary Causes:Poor agricultural yieldDebt from landlordsSeasonal crops and no other jobsCaste/gender based oppressionFailed monsoons/ infected cropsLarge family size

Primary Causes:Unemployment Low wages and high inflationIlliteracy Low benefits from Govt. policiesCorruption (in form or the other)Large family size

24% of the people in urban cities and metropolitans fall below the

poverty line of Rs 32/ day

Illiteracy and high dropout rateChild Labor and human trafficking Drug Addiction and Malnutrition

Civil Unrest, Increased Crime Rate and SuicideDwelling of Slums and Poor health conditions

IMPACT

Poverty Alleviation : Ideas and SolutionsAgricultural Revolution :

Better infrastructure for irrigation in villages to allow them to achieve good yields even in cases of poor monsoonsConnecting farmers directly to the market through e-kisan and mobile technologyBetter MSPs and removing brokers from the food procurement processSupport centers for farmers to assist them in crop cultivation and fertilizer optionsBetter banking and micro-financing facilities for rural farmers to provide easy loans Promote sustainable and nature friendly ways of crop cultivation and fertilizationPromoting self help groups within villages to fight against poverty in a cooperative mannerPromote NGOs like “Kheti Virasat Mission” etc. to help farmers with organic methods of improving yieldSecondary sources of income like animal cattle and vocational courses for farmers with seasonal crops should be encouraged Improving the Public Distribution System and removing corruption from policies that help farmers

Poverty Alleviation : Ideas and SolutionsEducationIt is the only weak link in the vicious circle of poverty and unemployment. The government has made efforts to provide cheap education to the poor through its schools and also tried to reduce the drop out rate by introducing the Mid-day meal schemeHowever, the quality of education needs to be checked in these schools and better teachers and quality curriculumVocational Centers should collaborate with the schools, so as to ensure that those just out of the school should be able to earn a living for themselvesComprehensive vocational activities and computer courses should be promoted to keep up with the technological advancementsNGOs working in this field need to be promoted and encouraged Flexible financing schemes to promote higher educationEvening education centers and “Aangan vaadis” for the adults and women should be opened in villages to promote learning atmosphere

Poverty Alleviation : Ideas and SolutionsEmployment :

It is surely one of the best ways to help people get rid of the menace of povertyGovernment schemes like NREGA, PMGY etc have made an unsatisfactory effort to provide employment to poor in villagesThe jobs for unskilled labor have been limited due to cases of corrupt practices in infrastructure projects leading to stalling of projects and failure of schemes Vocational Courses presently taught are outdated and not good enough to help poor earn a living The manufacturing sector needs to be revived to help the semi-skilled labor and more service & outsourcing sector jobs should be promoted for skilled labor Enforcing strict labor laws in both organized and unorganized sector

Other Measures : Better health infrastructure through efficient and cheap government funded hospitals, medical clinics and enforcing compulsory public service for doctors Cheap shelter for poor in winters and quality public washrooms to preserve hygiene Stop Child labor and ensure compulsory educationRehab centers for drug addicts and vocational opportunities for the same

CONCLUSION

With the Food Security Bill passed in the Parliament, there is some interim relief for the poor, even though this is seen as a election gimmick. In the long run only education and employment generation are the only ways to check the increasing poverty and economic divide. The poverty line has been a debatable issue with decisions being taken without recent data to support it. Good governance and corruption free policies are things one can only hope for. All a common man can d is raise voice against the injustices done to poor and encourage inclusive development.

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