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NCERT Solutions for Class 9 Economics chapter 3 – Poverty as a Challenge


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Question 1.
Describe how the poverty line is estimated in India.
Answer:
While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirements etc. are determined for subsistence. These physical quantities are multiplied by their prices in rupees.

The present formula for food requirement while estimating the poverty line is based on the desired calorie requirement. Food items such as cereals, pulses, vegetables, milk, oil, sugar etc. together provide these needed calories. The need of calories depends on age and the work done by a person. The accepted average calorie requirement in India is 2,400 calories per person per day in rural areas and 2,100 calories per person per day in urban areas. The calorie requirement of the people in rural areas is higher than that of the people living in urban areas because they do more physical work as compared to urban people. On the basis of the calculations for the year 2011-12, the poverty line for a person was fixed at t 816 per month for the rural areas and ? 1,000 per month for the urban areas.

Question 2.
Do you think that present methodology of poverty estimation is appropriate?
Answer:
No, the present methodology of poverty estimation is not appropriate because it takes into account only the basic needs of food, clothing, fuel etc. But the quality of these basic necessities is the lowest quality available. The amount which is fixed as the poverty line does not include the margin for the constant price fluctuations. The poverty line should include some corrections for inflation and the market fluctuations.

Question 3.
Describe poverty trends in India since 1993.
Answer:
As per the data, there has been a substantial decline in poverty ratios in India from 45 per cent in 1993-94 to 37.2 per cent in 2004-05. There was a further decline to 22 per cent in 2011-12. Although the number of poor people declined from 1973 to 1993, there was a significant reduction in the number of the poor (about 407 million) in 2004-05 and further 270 million in 2011-12 with an average annual decline of 2.2 per cent. It may also be noted that poverty ratios always remained higher in rural areas as compared to urban areas. If the present trend continues, the people below poverty line may come down to less than 20 per cent in the next few years.

Question 4.
Discuss the major reasons for poverty in India.
Answer:
The major reasons for poverty in India are:

  1. Colonial rule. India went through a long phase of low economic development under the British colonial administration. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles.
  2. High growth in population. The rapid growth of population, particularly among the poor, is one of the major reason for Indian poverty. Poor people are illiterate and have a traditional outlook. Hence, they are either ignorant of birth control measures or are not convinced of the need of birth control. Moreover, they consider a male child as an asset, i.e., as a source of income and a source of security in old age.
  3. Low rate of economic development. The actual rate of growth in India has always been below the required level. This has resulted in less job opportunities. This has been accompanied by a high growth rate of population.
  4. Unemployment. Another important factor for the incidence of high poverty in India is the high degree of unemployment and underemployment. The job seekers are increasing at a higher rate than the increase in the employment opportunities.
  5. Unequal distribution. Although national income of India has been increasing since 1951, it was not properly distributed among different sections of the society. A large proportion of increased income has been pocketed by a few rich. They have become richer. A majority of people live below the poverty line.
  6.  Social factors. Various social factors, viz., caste system, joint family system, religious beliefs, law of inheritance etc. have blocked the path of economic development.

Question 5.
Identify the social and economic groups which are most vulnerable to poverty in India.
Answer:
The social groups vulnerable to poverty are:

  1. Scheduled castes households
  2. Scheduled tribes households

The economic groups vulnerable to poverty are:

  1. Rural agricultural labour households
  2. Urban casual labour households

Question 6.
Give an account of inter-state disparities of poverty in India.
Answer:
The proportion of poor is not the same in every state in India. Though there has been a decline in poverty in every state since from the early seventies, the poverty ratio varies from state to state. The states like Madhya Pradesh, Assam, Uttar Pradesh, Bihar and Odisha had above all India poverty level. Bihar and Orissa continue to be the two poorest states with poverty ratios of 33.7% and 32.6%. Both rural and urban poverty are quite high in Odisha, Madhya Pradesh, Bihar and Uttar Pradesh. On the other hand, states like Tamil Nadu, Andhra Pradesh, Gujarat, Maharashtra, Haryana, Kerala, Punjab and West Bengal have shown a significant decline in poverty. Public distribution of food grains, focus on human resource development, high agricultural development and land reform measures are some of the factors responsible for the decline in poverty in these states.

Question 7.
Describe global poverty trends.
Answer:
The proportion of people in developing countries living on less than $1.90 per day has fallen from 35 per cent in 1990 to 10.68 per cent in 2013. There has been a substantial reduction in global poverty. However, the reduction is marked with great regional differences. Due to rapid economic growth and massive investment in human resource development, ppverty has declined substantially in China and Southeast Asian countries.

In South Asian countries (India, Pakistan, Sri Lanka, Nepal, Bangladesh, Bhutan), the decline has also been rapid. In Sub-Saharan Africa, poverty has declined from 54 per cent in 1990 to 41 per cent in 2013. It has also resurfaced in some of the former socialist countries like Russia, where officially it was non-existent earlier. In Latin America, the ratio of poverty has also declined from 16% in 1990 to 5.4% in 2013.

Question 8.
Describe the current government strategy of poverty alleviation.
Answer:
Removal of poverty is one of the major objectives of the Indian developmental strategy. The current government strategy of poverty alleviation is based on two planks:

  1. Promotion of Economic Growth
  2. Targeted Anti-poverty Programmes

Some of the targeted anti-poverty programmes undertaken by the government are:

  1. Prime Minister’s Rozgar Yojana (PMRY). This programme was started in 1993. It aims at creating self-employment opportunities for the educated unemployed youth in rural areas and small towns.
  2. Pradhan Mantri Gramodaya Yojana (PMGY). This programme was launched in 2000. It aims at creating and improving basic services like primary health, primary education, rural shelter, rural drinking water and rural electrification.
  3. Rural Employment Generation Programme (REGP). This programme was launched in 1995. It aims at creating self-employment opportunities in rural areas and urban towns.
  4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This act was passed in September 2005. The act provides 100 days assured employment every year to every rural household in 200 districts. Later, the scheme would be extended to 600 districts. One-third of the proposed jobs have been reserved for women.

Question 9.
Answer the following questions briefly:
(i) What do you understand by human poverty?
(ii) Who are the poorest of the poor?
(iii) What are the main features of the National Rural Employment Guarantee Act 2005?
Answer:

  1. Human poverty is a concept that goes beyond the limited view of poverty as lack of income. It refers to the denial of political, social and economic opportunities to an individual to maintain a “reasonable” standard of living. Illiteracy, lack of job opportunities, lack of access to proper healthcare and sanitation, caste and gender discrimination etc. are all components of human poverty.
  2.  Women, children (especially the girl child) and elder people in a poor family are regarded as the poorest of the poor because they are systematically denied equal access to resources available to the family.
  3. The main features of the National Rural Employment Guarantee Act 2005 are:
    • The Act assures 100 days employment every year to every rural household.
    • One-third of the jobs are reserved for women.
    • It also aimed at sustainable development to address the cause of draught, deforestation and soil erosion.
    • The share of SCs, STs and women are 23 per cent, 17 per cent and 53 per cent respectively.
    • Under this, the average wage has increased from ₹ 65 in 2006-07 to ₹ 132 in 2013-14.
    • The scheme provided employment to 220 crores person days of employment to 4.78 crore households.

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