CBSE Class 11 Economics Indian Economic Development Revision Notes Chapter 4

CBSE Class 11 Indian Economic Development Revision Notes Chapter 4 – Poverty

This chapter addresses the issues of poverty and Indian economic development in general. It discusses the various ways to measure poverty with an introduction, who the poor are, what poverty is, how they are identified, categorising poverty, the poverty line, statistics of poverty in India, the causes of poverty, policies and programmes toward poverty alleviation, poverty alleviation programmes – a critical assessment, and conclusion.

Revision notes will help students remember key concepts for topics such as these. Therefore, students need to have accurate and reliable materials. At Extramarks, subject matter experts write the notes with equal weightage given to each topic. These notes adhere to the updated CBSE syllabus and guidelines.  

Access Class 11 Economics Chapter 4: Poverty

Introduction

The inability to meet bare minimum needs for food, clothing, shelter, healthcare and education is known as poverty.

Who are the poor? 

The characteristics of the poor are: 

• Inadequate Nutrition: For the poor, starvation and hunger are common phenomena. They are unable to meet their bare minimum dietary needs. Malnutrition is another significant characteristic of the poor.
• Lack of Basic Literacy and Skills: The opportunities available to the poor are extremely limited due to illiteracy.
• Lack of Access to Essential Services: These include basic healthcare facilities, power, and clean water. Lack of prenatal care for poor women results in serious disease and disability for the mother and the unborn child. Due to illness, they become physically weak, which further lowers their prospects.
• Unemployment: They deal with a precarious job market. The rural poor either work as landless labourers engaged in non-agricultural activities or as agricultural labourers with very small landholdings. The urban poor either work in a variety of informal jobs or are self-employed, peddling various goods by the side of the road.
• Chronic indebtedness: It is a result of the poor borrowing money from predatory lenders who charge them unreasonably high-interest rates to survive.

Absolute Poverty

The situation is when a family cannot meet its basic needs, such as housing, food, water, and medical care because the household income is below a certain threshold.

If the country experiences economic growth, it has no direct impact on those who live below the poverty line in this type of poverty. Absolute poverty analyses a household based on a predetermined income level that varies depending on the economic situation of each country.

Relative Poverty

Relative poverty occurs when household incomes are 50 percent below the national average and when there is some money on hand but not enough to cover anything beyond the bare necessities. The country’s economic development will determine how much poverty there will be.

Categorising Poverty

• Chronic Poor – Chronically impoverished people are those who experience poverty regularly. People who work for a contract, sometimes known as casual labourers, and those who do not own land are two instances of the chronically impoverished.
• Transient poor – Those who move in and out of poverty regularly, such as seasonal workers, and the occasionally poor are those who are usually not poor but occasionally face a rough patch.
• Non-poor – People who have never experienced poverty.

Poverty line

The term “poverty line” refers to a point at which residents of a region are classified as either poor or not. Absolute poverty is measured using the poverty line.

• The recommended daily calorie intake in India is 2,400 calories for rural areas and 2,100 calories for urban areas.
• The poverty line can also be determined based on per capita spending. In rural areas, the minimum monthly consumption expenditure per person is Rs. 816, and in urban areas, it is Rs. 1000.

The poverty line, however, does not account for a number of additional factors, including illiteracy, poor health, a lack of access to necessities and resources, and a lack of civil and political freedom.

The Number of Poor in India

The Head Count Ratio counts the proportion of people who fall below the poverty line to determine how many people are poor.

India’s Poverty Trends

• More than 320 million people were living in poverty from 1973–1974; this represents a proportion of 55 percent of the population. In 2011–12, the total number fell by 270 million, and the proportional decrease was 22 percent.
• Rural areas saw a decrease in the overall population of the poor, while urban areas saw an increase. Both saw a decline in the poverty ratio.

State-level Poverty Trends

• The percentage of the poor decreased from 55 to 22 percent between 1973 and 2012.
• There was a sizable portion of the poor in the six states of Tamil Nadu, Uttar Pradesh, Bihar, Madhya Pradesh, West Bengal, and Orissa. Between 1973 and 2012, this significantly decreased.
• Odisha, Madhya Pradesh, Bihar, and Uttar Pradesh are four states that are poorer than the average state.

What Causes Poverty?

1.Political, economic, and social inequality:

The British occupation of India significantly exacerbated poverty. Our natural resources were looted, heavy taxes were levied, and cheap goods were imported from India.

2 Social exclusion:

Due to years of social exclusion, minorities like the Scheduled Castes and Scheduled Tribes cannot take advantage of economic opportunities because they lack the necessary knowledge and skills.

3. Financial debt:

When crops fail due to natural disasters, farmers frequently cannot repay loans they had taken for domestic and agricultural needs.

4. Joblessness:

In India, underemployment and long-term unemployment are common occurrences. Unemployment is a reflection of poverty.

5. Unfair wealth distribution:

Since declaring independence, the government has made an effort to redistribute resources by taking land from people who have it in large amounts and giving it to people who don’t. However, this had little chance of success because the underprivileged lacked the resources or know-how to effectively utilise the land.

6. Insufficient infrastructure:

Energy, transportation, and communication infrastructure as well as social infrastructures like housing, health care, and education, were both largely lacking.

7. Population pressure:

The population has been rapidly expanding because the death rate has been dropping. Because of the increasing population pressure, there are more dependents, which indicates higher poverty.

Policies and Programmes towards Poverty Alleviation

The government used a multifaceted strategy to fight poverty.

• Acceleration of economic growth – It was predicted that the rapid spread of a rising GDP and per capita income would end poverty in all spheres of society. The Green Revolution was expected to have a positive impact on the underdeveloped and underdeveloped regions through rapid industrialisation and agricultural transformation.
• Employment generation – By creating jobs, the poor’s income could be increased. Through initiatives to reduce poverty, the government sought to accomplish this.
• Basic amenities: Through programmes like the Public Distribution System, Poshan Abhiyan, and Midday Meal Scheme, the government sought to provide basic amenities to citizens.

Poverty Alleviation Programmes

1.Prime Minister’s Rozgar Yojana

• This programme aims to give educated unemployed people in urban areas the opportunity to work for themselves.
• This initiative makes it easier for educated unemployed individuals to obtain financial support to start any business.

2. Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)

• This programme offers employment to anyone willing to work for the minimum wage for at least 100 days.
• Job seekers are urged to show up in the rural areas where the programme is being introduced.
• Under this scheme, employment was provided to approximately 5 crore people.

3. Swarna Jayanti Shahari Rozgar Yojana (SJSRY)

• This program aims to help urban underemployed or unemployed people find self-employment or wage work.
• It consists of the Urban Wage Employment Program (UWEP) and the Urban Self-Employment Programme (USEP)

4. Pradhan Mantri Jandhan Yojana

• This programme, introduced in 2014, encouraged people in India to open bank accounts. It promotes saving practices and enables the government to deposit all of the benefits of programmes and subsidies directly into citizens’ bank accounts.
• It is the goal of initiatives like the Pradhan Mantri Gram Sadak Yojana and the Valmiki Ambedkar Awas Yojana to improve housing and infrastructure in India.

Critical Assessment of Poverty Alleviation Programmes

Important Observation: Some states have lower absolute poverty rates than the nation as a whole.

Shortcomings:

• Due to the unequal distribution of land and other assets, many of the advantages of direct programmes to reduce poverty were enjoyed by non-poor people.
• Officials from the government and banks played a significant part in these programmes. They were either unmotivated, underqualified, dishonest, or susceptible to pressure from the ruling class in the area.
• Local institutions did not provide adequate support for the implementation of these programmes.
• People barely above the poverty line were not taken into account by policies.
• Poor people’s inactive participation is due to accessibility issues in rural villages’ interiors.

Poverty Chapter Economics Class 11 Notes 

Given that this chapter is purely conceptual understanding, the chapter’s various subtopics are crucial. Extramarks provides Notes for Class 11 Indian Economic Development Chapter 4 Poverty that are written in a straightforward manner. 

Written by subject matter experts, these notes make studying easier. Any student looking to clarify their concepts would benefit from these notes.

Class 11 Economics Notes Chapter 4

Extramarks Revision Notes will enhance exam preparations with crisp and key points. This will boost their confidence and help them write competent answers in the final examinations.

• Class 11 Indian Economics Chapter 4 Notes: Poverty

The definition of poverty and the two metrics used to calculate it are covered in this section. The two approaches are relative poverty and absolute poverty. These subjects are covered in depth.

• Class 11 Indian Economics Chapter 4 Notes: Poverty Line

The definition of the poverty line follows in this chapter. The poverty line’s five characteristics are appropriately explained and elaborated upon.

• Class 11 Indian Economics Chapter 4 Notes: Causes of Poverty

There are five ways to comprehend the reasons behind poverty. These are fully and in-depth explained.

• Class 11 Economics Chapter 4 Notes: Ways to Remove Poverty

Five specific strategies are described in great detail. These strategies to combat poverty include population control, income inequality reduction, and acceleration of growth.

• Class 11 Indian Economics Chapter 4 Notes: Government Measures to Remove Poverty

Many reforms were implemented by the Indian government, some of which were programmes designed to help people living in poverty. These schemes’ specifics are presented in a complex manner.

• Class 11 Indian Economics Chapter 4 Notes: Measuring the Number of Poor

It covers the poverty line and headcount ratio.

• Class 11 Indian Economics Chapter 4 Notes: Characteristics of the Poor

This chapter discusses the five traits listed for poor people. These traits include starvation, malnutrition, and hunger. Additionally, it discusses examples of these traits and a few economic opportunities.