Class 9 Social Science Notes Chapter 3 (Poverty as a challenge) – Economics Book

Alright class, let's focus on a very crucial chapter for your understanding of the Indian economy and for your exams: Chapter 3, 'Poverty as a Challenge'. This is a topic that frequently appears in government exams, so pay close attention to the details.

Chapter 3: Poverty as a Challenge - Detailed Notes

1. Introduction: What is Poverty?

• Poverty is a situation where a person lacks the essential resources to meet basic minimum needs like food, clothing, shelter, education, and healthcare.
• In independent India, tackling poverty has been a primary objective.
• Poverty involves hunger, lack of shelter, lack of clean water and sanitation, lack of regular employment at a minimum decent level, and a sense of helplessness. Poor people are often ill-treated and excluded from mainstream society.

2. Poverty as Seen by Social Scientists:

Social scientists view poverty through various indicators, not just income/consumption levels:

• Social Exclusion: Poor people are often excluded from enjoying social equality and participation in the facilities, benefits, and opportunities that others enjoy. The caste system in India is a prime example where certain groups were historically excluded.
• Vulnerability: This describes the greater probability of certain communities (e.g., backward castes, widows) or individuals (e.g., physically handicapped) facing adverse situations (like natural disasters, job loss) and their limited ability to cope. Vulnerability highlights the risks faced by different groups.

3. The Poverty Line:

• Concept: It's a method used to measure poverty based on income or consumption levels. A person is considered poor if their income or consumption falls below a given "minimum level" necessary to fulfill basic needs.
• Determination in India:
  • Based on the minimum calorie requirement needed for subsistence. The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas. (Note: Rural requirement is higher due to more physical labour).
  • These calorie needs are then converted into monetary value (rupees) using current prices for food grains, etc. This monetary value represents the poverty line.
  • The poverty line is estimated periodically (typically every five years) by conducting sample surveys carried out by the National Sample Survey Organisation (NSSO), now known as the National Statistical Office (NSO).
• Variations: The poverty line can vary with time (due to price changes) and place (different states/countries have different standards).
• World Bank Definition: Uses a uniform standard, currently around $2.15 per person per day (Purchasing Power Parity - PPP) for extreme poverty.

4. Poverty Estimates in India:

• Trends: There has been a substantial decline in poverty ratios in India.
  • From about 45% in 1993-94 to 37.2% in 2004-05.
  • Further declined to 21.9% in 2011-12. (These are key figures to remember).
  • Although the percentage has declined, the absolute number of poor people remained significant for a long time due to population growth, but it has also shown a decline in recent estimates.
• Inter-State Disparities: Poverty levels vary significantly across states.
  • States like Bihar and Odisha have historically been among the poorest.
  • States like Kerala, Himachal Pradesh, Punjab, and Haryana have seen significant reductions in poverty due to factors like human resource development (Kerala), agricultural growth (Punjab, Haryana), and public distribution system effectiveness.
• Vulnerable Groups: Certain social and economic groups are more vulnerable to poverty:
  • Social Groups: Scheduled Castes (SCs) and Scheduled Tribes (STs) have higher poverty rates than the national average.
  • Economic Groups: Rural agricultural labour households and urban casual labour households are the most vulnerable economic groups.
  • Intra-household Poverty: Within poor families, women, elderly people, and female infants often suffer more, being denied equal access to limited resources. They are sometimes called the 'poorest of the poor'.

5. Causes of Poverty in India:

• Historical Reason: The British colonial administration systematically destroyed traditional industries (like textiles) and discouraged economic development, leading to low growth and fewer job opportunities. Their land policies also created vulnerabilities.
• Low Economic Growth: Post-independence growth rates were low until the 1980s, which limited the expansion of opportunities.
• High Population Growth: Rapid population growth increased the number of dependents and put pressure on resources, making the per capita income growth very low.
• Unemployment & Underemployment: Lack of job opportunities, especially disguised unemployment in agriculture and casual labour in urban areas, keeps people poor.
• Unequal Distribution of Land and Resources: Despite land reforms, implementation was poor in most parts of India. Unequal land ownership is a major cause of rural poverty.
• Huge Income Inequalities: Unequal distribution of wealth and income means the benefits of growth don't reach everyone equally.
• Social Factors: Social obligations (like ceremonies) and religious customs often force poor families into debt. The caste system also restricts opportunities for certain groups.

6. Anti-Poverty Strategy:

India's anti-poverty strategy broadly consists of two main approaches:

• (i) Promotion of Economic Growth:

  • The idea is that overall economic growth (increase in GDP) creates more resources and opportunities (jobs, income) that can 'trickle down' to the poor.
  • Growth provides the government with resources to invest in human development (education, health).
  • Experience shows growth alone is insufficient; targeted measures are needed.

• (ii) Targeted Anti-Poverty Programmes:

  • These are specific schemes designed to directly benefit the poor. Key examples mentioned in the chapter include:
    • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005: Aims to provide 100 days of guaranteed wage employment in every financial year to every rural household whose adult members volunteer to do unskilled manual work. It focuses on sustainable development works (drought-proofing, irrigation etc.) and includes provisions for unemployment allowance if work is not provided. One-third of proposed jobs are reserved for women.
    • Prime Minister Rozgar Yozana (PMRY) (Launched 1993): Aimed at creating self-employment opportunities for educated unemployed youth in rural areas and small towns.
    • Rural Employment Generation Programme (REGP) (Launched 1995): Aimed to create self-employment opportunities in rural areas and small towns through setting up small enterprises.
    • Swarnajayanti Gram Swarozgar Yojana (SGSY) (Launched 1999): Aimed at bringing assisted poor families above the poverty line by organizing them into Self Help Groups (SHGs) through a mix of bank credit and government subsidy. (Note: This has largely been restructured into the National Rural Livelihoods Mission - NRLM).
    • Pradhan Mantri Gramodaya Yojana (PMGY) (Launched 2000): Provided additional central assistance to states for basic services such as primary health, primary education, rural shelter, rural drinking water, and rural electrification.
    • Antyodaya Anna Yojana (AAY): Focuses on providing highly subsidized food grains to the 'poorest of the poor' families identified among the Below Poverty Line (BPL) population.

• Challenges with Programmes: Despite good intentions, these programs face issues like improper implementation, overlapping schemes, lack of proper targeting, and leakages (corruption).

7. The Challenges Ahead:

• While India has made progress, poverty reduction remains a significant challenge.
• The focus needs to shift from just minimum subsistence to providing reasonable levels of living, including healthcare, education, job security, gender equality, and dignity for the poor.
• The concept of poverty needs to be broadened to encompass human poverty, considering factors beyond just economic deprivation.

Multiple Choice Questions (MCQs):

1. What is the accepted average daily calorie requirement for determining the poverty line in rural areas of India?
   a) 2100 calories
   b) 2400 calories
   c) 2000 calories
   d) 2500 calories

2. Which organization is responsible for periodically estimating poverty lines in India through sample surveys?
   a) Reserve Bank of India (RBI)
   b) NITI Aayog
   c) National Statistical Office (NSO / formerly NSSO)
   d) Ministry of Finance

3. According to social scientists, 'Social Exclusion' refers to:
   a) Lack of income to buy basic goods.
   b) Living in poor physical surroundings.
   c) Being prevented from accessing benefits, opportunities, and facilities enjoyed by others.
   d) High probability of remaining poor in the future.

4. Which of the following groups are generally considered the most vulnerable to poverty in India?
   a) Urban traders and rural farmers
   b) Scheduled Castes and Urban casual labour households
   c) Rural agricultural labour households and Scheduled Tribes
   d) Government employees and industrial workers

5. The poverty ratio in India declined from about 45% in 1993-94 to approximately what percentage in 2011-12?
   a) 37.2%
   b) 29.5%
   c) 21.9%
   d) 15.0%

6. Which historical factor is considered a major cause of widespread poverty in India?
   a) Introduction of railways
   b) Policies of the British colonial administration
   c) Green Revolution
   d) Formation of states

7. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 aims to provide:
   a) Guaranteed self-employment opportunities
   b) 100 days of guaranteed wage employment in a financial year to rural households
   c) Free food grains to all rural households
   d) Financial assistance for setting up small industries

8. Which anti-poverty program specifically targeted creating self-employment for educated unemployed youth in rural areas and small towns?
   a) MGNREGA
   b) Antyodaya Anna Yojana (AAY)
   c) Pradhan Mantri Gramodaya Yojana (PMGY)
   d) Prime Minister Rozgar Yozana (PMRY)

9. The concept of 'Vulnerability' in the context of poverty describes:
   a) The lack of basic necessities like food and shelter.
   b) The unequal distribution of income within a country.
   c) The greater probability of certain communities or individuals facing adverse situations and being unable to cope.
   d) The historical reasons for poverty in a nation.

10. India's anti-poverty strategy primarily relies on:
    a) Only promoting rapid economic growth
    b) Only implementing targeted anti-poverty programmes
    c) A combination of promoting economic growth and targeted anti-poverty programmes
    d) Relying solely on international aid

Answer Key for MCQs:

1. b) 2400 calories
2. c) National Statistical Office (NSO / formerly NSSO)
3. c) Being prevented from accessing benefits, opportunities, and facilities enjoyed by others.
4. c) Rural agricultural labour households and Scheduled Tribes
5. c) 21.9%
6. b) Policies of the British colonial administration
7. b) 100 days of guaranteed wage employment in a financial year to rural households
8. d) Prime Minister Rozgar Yozana (PMRY)
9. c) The greater probability of certain communities or individuals facing adverse situations and being unable to cope.
10. c) A combination of promoting economic growth and targeted anti-poverty programmes

Make sure you revise these points thoroughly. Understanding the concepts, key figures, causes, and government initiatives is vital for your exams. Good luck!