Meaning and Causes of Poverty

Introduction

Poverty is a condition in which an individual fails to earn enough income to buy basic necessities i.e. food, clothing, shelter. Poverty is the biggest challenge in India.

The standard of living of poor is low. They do not have access to electricity, sanitation, proper shelter etc. They are deprived of various privileges; they have ill health and are physically weak, etc. The categories of poor are chronic poor, transient poor and non-poor. Chronic poor is further divided into always poor and usually poor. Similarly transient poor is further divided into churning poor and occasionally poor:

The term poverty is used in two ways: absolute poverty and relative poverty. Absolute poverty refers to the total number of people living below the poverty line. This concept has more relevance for less developed countries. Relative poverty refers to poverty of people in comparison to other people. This measure is use to compare the poverty among countries, regions etc.

Poverty line indicates the minimum level of income which is just sufficient to buy the basic minimum quantity of food required. It is cut off line which differentiates poor from non-poor. There are three approaches to determine the poverty line in India. They are: Jail cost of living, the second approach is based on the recommendation of task force on projection of Minimum Needs and Effective Consumption, third method of measuring poverty is Monthly Per Capita Consumption Expenditure (MPCE).

Vicious circle of poverty implies a circular constellation of forces tending to act and react upon one another in such a way as to keep a poor country in a state of poverty. The nature and extent of poverty in India can be featured as: downward trend, lingering problem, interstate variations, etc.

The main causes of poverty in India are: rapid growth of population, migration, unemployment and underemployment, low productivity in agriculture, etc.

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  • Q1

    People falling in the category of churning poor are

    Marks:1
    Answer:

    seasonal workers.

    Explanation:
    Churning poor are those poor who regularly move in and out of poverty. Seasonal workers and small farmers are examples of churning poor.
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  • Q2

    In urban areas poverty line has been defined on the basis of the minimum nutritional requirements of _____________

    Marks:1
    Answer:

    2100 calories per day.

    Explanation:

    2100 Calories for the urban population is a lower estimation criterion for defining poverty line if compared to that of 2400 calories in rural areas.This difference exists because the nature of work for rural and urban population demands different level of physical labour.

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  • Q3

    The main cause for overflowing of rural poor in urban areas is

    Marks:1
    Answer:

    employment.

    Explanation:
    The growing number of rural population and limited land resources for farming activities create huge unemployment in the village areas. Thus, the landless agricultural labourers migrate in urban areas in search of employment opportunities.
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  • Q4

    A steep rise in the price of food grains and other essential products is caused by

    Marks:1
    Answer:

    growing inflation.

    Explanation:
    Inflation in an economy causes lower relative value for its currency, leading to price rise in domestic market.
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  • Q5

    In rural areas poverty line has been defined on the basis of the minimum nutritional requirements of

    Marks:1
    Answer:

    2400 calories

    Explanation:

    Poverty line has been defined on the basis of the minimum nutritional requirements of 2100 calories for the urban population as compared to 2400 calories in rural population. This difference exists because the nature of work for rural and urban population demands different level of physical labour.

    View Answer