Poverty and Unemployment in India

Poverty and Unemployment in India

Presented by Md Akram Saba(09HS2027)

Types of Poverty
• Absolute Poverty • Relative Poverty

Relative Poverty

• Relative Poverty refers to the Income or Asset Position of one individual,Class or Group of People in comparison with the other individual,Classes or Groups.

Absolute Poverty
• Absolute poverty is associated with a Minimum Level Living or Minimum Consumption Requirements of Food,Clothing,Housing,Health,etc. • All those People who fail to Secure Income or Assats to have access to even these Minimum Consumption Requirements are classified as “Poor”.

Poverty Line
• Poverty Line is drawn on the basis of Expenditure that is necessary to Secure the Minimum Acceptable Living Standard for Work & Efficiency. • Since,Food is the most Basic Requirement,thus,Poverty Line is drawn on the basis of a Minimum Necessay Nutritional Standard expressed in terms of Calories Per Day.

Poverty Line(contd..)
• In India,the Minimum Calories intake of a Person has been put at 2,400 in Rural Area & 2,100 in Urban Areas. • To convert this Calorie intake based on Poverty Line into a Monetary Measure of Poverty,the Cost of Minimum Consumption Requirements of Food providing the minimum calories is calculated at prevailing Price. • Thus,Government defined a person with an Income of Less than Rs.368(Rural) & Rs.559(Urban) per month as living below poverty line. • The Planning Commission's new official poverty line is Rs.32(Urban) &Rs.26(Rural) by accepting the Suresh Tendulkar Committee’s recommendation of calculating poverty,making the Minimum Calories intake of a Person 1,700 calories.

List of the states in increasing order of poverty based on the MPI
MPI rank

States

Population (in millions) 2007

MPI

Proportion of poor

Average intensity

Contribution to overall poverty

Number of MPI poor (in millions)

1 2 3 4 5 6 7 8 9 10 11 12 — 13 14 15 16 17 18 19 20 21

Kerala Goa Punjab Himachal Pradesh Tamil Nadu Uttarakhand Maharashtra Haryana Gujarat Jammu And Kashmir Andhra Pradesh Karnataka India Eastern Indian States West Bengal Orissa Rajasthan Uttar Pradesh Chhattisgarh Madhya Pradesh Jharkhand Bihar

35.0 1.6 27.1 6.7 68.0 9.6 108.7 24.1 57.3 12.2 83.9 58.6 1,164.7 44.2 89.5 40.7 65.4 192.6 23.9 70.0 30.5 95.0

0.065 0.094 0.120 0.131 0.141 0.189 0.193 0.199 0.205 0.209 0.211 0.223 0.296 0.303 0.317 0.345 0.351 0.386 0.387 0.389 0.463 0.499

15.9% 21.7% 26.2% 31.0% 32.4% 40.3% 40.1% 41.6% 41.5% 43.8% 44.7% 46.1% 55.4% 57.6% 58.3% 64.0% 64.2% 69.9% 71.9% 69.5% 77.0% 81.4%

40.9% 43.4% 46.0% 42.3% 43.6% 46.9% 48.1% 47.9% 49.2% 47.7% 47.1% 48.3% 53.5% 52.5% 54.3% 54.0% 54.7% 55.2% 53.9% 56.0% 60.2% 61.3%

0.6% 0.0% 1.0% 0.3% 2.6% 0.5% 6.0% 1.3% 3.4% 0.7% 5.1% 4.2% 4.0% 8.5% 4.3% 7.0% 21.3% 2.9% 8.5% 4.2% 13.5%

5.6 0.4 7.1 2.1 22.0 3.9 43.6 10.0 23.8 5.4 37.5 27.0 645.0 25.5 52.2 26.0 41.9 134.7 17.2 48.6 23.5 77.3

Poverty in India
• There has been no uniform measure of poverty in India. • The Latest National Sample Survey 2004-05 shows that a percentage of people living below Poverty Line has reduced from 26% in 1999-2000 to about 22% in200405. • The Planning Commission of India has accepted the Tendulkar Committee report which says that 37% of people in India live below the poverty line. • The N.C. Saxena Committee report states that 50% of Indians live below the poverty line. • The Arjun Sengupta Report (from National Commission for Enterprises in the Unorganised Sector) states that 77% of Indians live on less than 20 a day.

Causes of Poverty
• • • • Rapidly growing Population is a major cause of Low Per Capita Income & Poverty in India. Large Scale Unemployment causes lowering of the Levels of Living of People. Inequalities in Income & Assets Distribution cause Additional Income from Development to be cornered by a few Rich People. Infaltion has reduced Purchasing Power of Money.This has reduced Real Income & thus people can buy less and consume less with giving income.This has added to Poverty. Sociological reasons like social inequality and discrimination too have contributed to Underdevelopment & Poverty in India. Agrarian form of Economy Other major causes are illiteracy, ignorance, caste based politics, urban rural divide etc.

• • •

Measures to Reduce Poverty
• Agriculture & other Rural Vocations should be rapidly developed so as to Eradicate Rural Poverty. • Village and Small Industries should be developed to create greater Employment both in Rural & Urban Areas. • Programmes should be implemented that directly target the poor & help them increase their Income & Consumption.

Measures to Reduce Poverty
•     Income Inequalities should be reduced by: Labour Legislation should ensure better Wages. Goods consumed by the Poor must be Subsidised. Goods required by the Poor should not be Taxed. Free Health Care & Education should be provided to the Poor.  Persons belonging to Poor Families must be provided Employment. • Rapid Growth of Population must be controlled & Population Growth Rate must be brought down through Family Planning,Education,Incentives,etc.

Government Programmes For Poverty Alleviation
• Pradhan Mantri Gram Sadak Yojana(PMGSY)  Launched in December,2000 to provide Road Connectivity through way of an all weather roads to all the eligible unconnected habitations in the Rural Areas by the end of Tenth Plan. • Indira Awas Yojana (IAY) Major Scheme for construction of Houses to be given to the Poor, Free of Cost.

Government Programmes For Poverty Alleviation
• Swaranjayanti Gram Swarozgar Yojana(SGSY) – Launched in 2001. – Aims at • i. Providing Wage Employment in Rural Areas • ii. Food Security • iii.Creation of Durable Community, Social & Economic Assets. • Employment Assurance Scheme (EAS) & Jawahar Gram Sammridhi Yojana (JGSY) were merged since April, 2002.

Government Programmes For Poverty Alleviation
• National Food For Work Programme  Launched in November,2004 in 150 backward Districts of the Country with the objective of providing more Opportunities of Wage Employment & ensuring certain Minimum Nutritional Levels for Rural Poor. • Valmiki Ambedkar Awas Yojana (VAMBAY)  Launched in 2001 to facilitate the construction and upgradation of Dwelling Units for the Slum Dwellers & Provides a Healthy & Enabling Urban Environment through Community Toilets.

Government Programmes For Poverty Alleviation
• The Swaran Jayanti Shahkari Rozgar Yojana (SJSRY)  Came into operation from December,1997 submerging the three earlier Urban Poverty Alleviation Programmes viz.,Nehru Rozgar Yojana(NRY),Urban Basic Services Programmes (UBSB) &Prime Minister Integrated Urban Poverty Eradication Programme(PMIUPEP).  Seeks to provide Employment to the Urban Unemployed or Under Employed Poor by encouraging and setting up of Self-employment Ventures or Provisions of Wage Employment.

Unemployment
• Unemployment refers to the situation where the Persons who are able to Work & Willing to Work,Fail to Secure Work or Activity which gives them Income or Means of Livelihood. • Those who are fit to Work but do not want to Work & hence do not actively seek Work are not included among the unemployed people.

Types of Unemployment
• • • • • • • • • Voluntary Unemployment Frictional Unemployment Casual Unemployment Seasonal Unemployment Structural Unemployment Technological Unemployment Cyclical Unemployment Chronic Unemployment Disguised Unemployment.

Causes of Unemployment in India
• • • • • • • Slow Pace of Development High Growth Rate of Population Slow Growth Rate of Industry Inappropriate Technology Slow Growth Rate of Agriculture Defective Education System Large Scale Rural-Urban Migration

Measurement of Unemployment
Usual Principal Status Basis(UPS) Current Weekly Status Basis (CWS)
• Estimates the number of Persons who may be said to be Chronically Unemployed.

• According to this, a Person is said to be unemployed for the week even if he is employed only for a day during that week.

Current Daily Status Basis (CDS)

• Any person who works for one hour or more during the day is considered to be employed for a half day.As such,CDS is aggregate of all unemployment days of all persons.