The precise estimate of whether it is two-fifth or one-half of rural people, who are beset with crushing poverty today, is a terribly academic matter. The Poverty Ratio or Head Count Index has not been found to be an acceptable measure of poverty by many economists for the following reasons:.
Firstly, this measure is very simple and it fails to indicate the depth of poverty. The people living below the poverty line may be either very close to it or much further from it. In absolute terms, these two sections are same—being below the poverty line. But, in reality, the depth of the poverty is different. In the 61st round survey of the N. Naturally, there is a wide variation in the depth of poverty in these two states. Hence, the policies for eradication of poverty should be different in these two states.
Secondly, these measures ignore the nature of income inequalities among the poor and it also fails to assess the possible impact of policies of redistribution of income among the poor. Let the minimum required income for subsistence, i. So, for an individual, the income gap, Y p — Y i , measures the shortfall of income of the individual from his income at poverty line.
Now if, in a country, there are n number of individuals and if, of them, K number of individuals are poor, then the total poverty gap is given by the total income shortfall and it is expressed as. So the total poverty gap measures the total amount of income needed to elevate all individuals living below the poverty line at present to reach at least this particular line and, hence, it will cause elimination of poverty. So this measure is useful for the purpose of formulation of policies to eradicate poverty. Let us further assume there are n number of persons in the society and they have a mean income Y where the income at poverty line is Y P and the number of persons below the poverty line is K.
Poverty in India
The Poverty Gap Ratio is the ratio of the average income to elevate all the individuals living below the poverty line to the poverty line divided by the mean income of all individuals in the society. Two different measures of poverty gap ratio in India may be mentioned in this context. The estimate of Gaurav Dutta, based on this measure, shows that the rural poverty gap ratio in India increased from During the same period, the urban poverty decreased from The World Bank has measured the poverty gap ratios at two different international poverty lines with daily incomes of U.
These were estimated at 7. The coefficient of variation of income of the poor CV p has its usual statistical method of measurement. This measure is considered as the best measure of poverty as it has removed all the limitations in the earlier measures of poverty. Gaurav Dutt estimated the squared poverty gap index of India for both the rural and urban people with respect to the pre-Reform and the post Reform periods The Squared Poverty Index of rural people decreased from 7. This measure is additively decomposable and also fulfills the two axioms montonically and transfer axioms proposed by Amartya Sen for a poverty measure to satisfy.
This property of additive decomposability allows disaggregation of total poverty into poverty of sub-groups. Thus, considering the total poverty as a weighted average of sub-group poverty, it can quantify the effect of a change in sub-group poverty to total poverty or the sub-group contribution to total poverty. The Planning Commission conducted a very interesting study of poverty estimates in It pointed out the incidence of poverty among different castes and religious groups in both rural and urban areas of India.
The figures in Table Excepting Sikhs and Jains, it is more or less severely observed among all other groups. It is, however, alarmingly severe among Buddhists The figures in parentheses indicate percentage figures of poverty ratios in rural and urban areas respectively.
In cases of Hindus, these figures are The figures in Table 4 show the magnitude of poverty in different social and religious groups. Following this measure, the Human Poverty Index of India in the year has been measured at This type of measure has a completely different dimension as it shows that poverty is not merely a case of income-deprivation, it is also a case of human deprivation.
A careful review of different causes and estimates of poverty indicates the following facts:.
Since then, a series of employment generating programmes was initiated since the Fourth Five Year Plan and specially during the Fifth Five Year Plan when priority was assigned on eradication of poverty, creation of additional employment opportunities and rural development. It was felt by our planners that these measures would solve the problems of seasonal and disguised unemployment in India to a great extent and generate additional income of the rural poor—and thus alleviate the problem of rural poverty.
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Some special programmes for socio-economic upliftment of the socially weaker sections and also of the urban poor were accordingly adopted. It was also felt that special programmes for development of the drought prone areas was necessary. The programmes for eradication of poverty gradually increased in number since the decade of s till now.
Besides, development agencies, such as SFDA and MFAL were set up to take special care for the development of small farmers, agricultural labourers and marginal farmers. Legislations were passed banning the practices of using bonded labour and child labour. All other programmes are meant for the rural and urban poor as is clearly evident separately from the titles of these schemes. All these schemes aim at creation of additional employment and generation of additional income. The specific schemes aimed for the rural poor are also directed towards different progammes such as construction of roads and bridges, irrigation canals, reclamation of moribund rivers and canals, development of drainage and flood control, creation and development of tanks and wells for irrigation, social forestry, etc.
Following the principles of decentralised development, the rural Panchayats are implementing these schemes. The labourers employed in such schemes receive daily wage during the period of such employment and such wages are mostly paid in cash and, in few cases, these are. Separate allocations of fund have been made for all these different schemes. Moreover, in the way of poverty alleviation, these schemes have helped the development of different types of infrastructure needed for future development of rural areas.
It is being implemented from February 2, in identified districts with a view to providing days of guaranteed unskilled wage employment to each rural household opting for it. Under this scheme, up to December, , Inequality is also a major cause behind poverty and, hence, different State Governments implemented measures of land reforms though these were largely inadequate excepting in two States of West Bengal and Kerala. So, large landholdings with capitalistic farming in Punjab, Haryana and western region of Uttar Pradesh continued to coexist with widespread feudal form of tenancy farming in all the States of India though in the states of West Bengal and Kerala, its scale is diminishing.
Hence, measures adopted for reducing inequality in the distribution of agricultural landholdings practically failed. But the measures towards economic reforms rising on the wheels of privatisation, liberalisation and globalisation regenerated the growth of monopoly business, contraction of economic security and social safety nets of the common people and practically thwarted the drives towards reduction of economic inequalities and eradication of poverty in India.
The contraction of the activities of the Public Sector, a process of gradual withdrawal of the government from different areas of its intervention, continuous reduction in the expenditure of the government in cases of different developmental and employment generating schemes along with reduction in the payment of subsidies, etc. Hence, quite naturally, such a process appeared as a severe hindrance towards eradication of poverty and inequalities in India.
The root cause behind mass poverty in India lies in its typical underdeveloped economic structure characterised by the existence of economic dualism such as the coexistence of semi-feudal and semi-capitalistic socio-economic structure along with that of the vicious circle of poverty from both demand and supply sides.
So, the measures for removal of poverty and inequality should be coupled together. These will destroy the malaise in the economic structure—the skewed distribution of the ownership of income-yielding assets. The institutional maladies are needed to be rectified to eradicate poverty completely in the long run.
The programmes for poverty eradication neglected i the provisions for family welfare, social security, special care for the physically and socially handicapped, etc. The different programmes for rural development and generation of employment have actually created temporary scope of employment during a very small part of the year. It has also been alleged that rampant corruption over the use of such funds by the members of Panchayats and other powerful sections of the rural society as well as political and social discriminations related to the employment of the rural poor have occurred in different states.
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There has also occurred corruption with respect to the identification of the poor and the issue of BPL ration cards among them for securing food at much low and subsidised prices. A study by Rajkrishna, Gumatse and others on behalf of the Planning Commission in Maharashtra and similar other studies in different regions of other states have confirmed this fact. Pranab Bardhan, C. Kurien, Kamala Suri, S. Gangadharan, Gautam Mathur and others have pointed out the following causes behind failure of programmes for eradicator of poverty:.
But we may still expect for adoption of such appropriate measures for eradicating poverty so that social justice which has been delayed should not be denied. The WTO agreement on agriculture provides a framework for the long-term reform of agricultural sector over the years to come with the objective of introducing increased market orientation in agricultural trade.
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Get your homework done. Preview and download the paper long before the deadline. Students trust us. Online Homework Help at Its Best Online academic help is a solution many students use to save their time, their place, and their grades. Some children in our neighborhood may look weak and highly malnourished because they do not get sufficient and nutritious food. They may not even be having enough clothes to wear.
In our country larger section of people are deprived of these basic necessities. During about 26 crore people in India are reported to be poverty ridden. In using income approach the government found lakh families living below poverty line. Poverty line is drawn on the basis of minimum desirable nutritional standards of calorie intake. Poverty line is a line of measurement to judge the intensity of poverty prevailing among different classes of the people. In , The problem of poverty is grim in India.
Poverty and Developmental Issues
In Orissa, extreme poverty has forced parents to sell their children for money. Poverty leads to many ills in the society. Illiteracy, child labour, crime, corruption and prostitution are some of them. Poverty is the cumulative effect of many factors operating in the Indian society.
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One of the main causes of poverty in our country is the continuous population growth. All the progress made by us is neutralized by the alarming rise of population.