SSB Notes PDF

Population, Poverty &
Unemployment
General Economics
Population
• Population refers to Total number of People
residing in a Place.
• Growth in Population is considered to be
favourable in certain Countries like Australia
because:
– It provides Work Force to Produce.
– It provides Markets for the Products Produced.
– It may Promote Innovative Ideas.
– It may Promote Division of Labour & Specialization.
General Economics:Population,Poverty&
2
Unemployment
Population
• Growth in Population is not desirable for
Countries like India because:
– There may not be adequate Jobs to absorb all
additional People.
– They put pressure on Means of Subsistence.
– They put pressure on Social Overheads (hospitals,
roads, schools, etc.)
– They may result in Increased Consumption &
reduced Savings & hence slow down Capital
Formation.
– They may Increase Dependency.
3
Unemployment
Demographic Trends in India
• Size of Population
• Rate of Growth
• Birth Rate & Death Rate
• Density of Population
• Sex Ratio
• Life-Expectancy at Birth
• Literacy Ratio
4
Unemployment
The Size of Population is determined in
terms of Number of Person.
The Population has rose from 23.84
crores in 1901 to 102.27 crores in 2001.
Now, it is 111 crores (2005-06).
India’s Population ranks 2nd in the
World after China.
Unemployment
5
India has about 2.4% of the World’s
area & Less than 1.2% of the World’s
Income but accommodates about
16.7% of the World’s Population.
Every Sixth person in the World is an
Indian.
6
Unemployment
• Rate of Growth
→Year 1921 is known as “Year of Great
Divide’ for India’s Population.
Decade Growth Rate per decade (Per cent) per annum
1901-1911 05.74 00.56
1911-1921 (-) 00.31 (-) 00.03
1921-1931 11.00 01.04
1941-1951 13.31 01.25
1951-1961 21.64 01.96
1971-1981 24.66 02.14
1981-1991 23.86 02.14
1991-2001 21.34
Unemployment 01.93 7
• Birth Rate & Death Rate
Birth Rate refers to number of Birth per
thousand of Population.
Death Rate refers to number of Deaths per
thousand of Population.
Birth Rate has declined from 39.9 in 1951
to 25.4 in 2001 & 23.8 in 2005.
Death Rate has declined from 27.4 in 1951
to 8.4 in 2001 & 7.6 in 2005.
Unemployment
8
 Density of Population refers to the
number of Persons per square
kilometer.
It has increased from 117 in 1951 to
274 in 1991 & 324 in 2001.
Density of Population is not same for
all the States.
Unemployment
9
 Kerala, West Bengal, Bihar & U.P. have
Density higher than the Average
Density.
Andhra Pradesh, Himachal Pradesh,
Gujarat, Madhya Pradesh, Maharashtra,
Rajasthan, Orissa, etc. have lower
Density than the Average Density.
10
Unemployment
West Bengal is the most densely
populated State in the country with 904
persons living per sq. km. followed by
Bihar with 880.
Industrially Well Developed Areas have
Higher Density.
11
Unemployment
• Sex Ratio
Sex Ratio refers to the number of
Females per 1000 males.
Sex Ratio has increased from 927 in
1991 to 933 in 2001.
Kerala has the favourable Sex Ratio of
945 in 2001 which has decreased from
976 in 1991 & 984 in 1971.
Unemployment
12
• Life-Expectancy at Birth
Life Expectancy refers to the Mean
Expectation of Life at Birth.
If Death rate is High/Death occurs at an
early age, Life Expectancy will be Low &
Vice-Versa.
Life Expectancy has increased from 32.1
years in 1951 to 59.3 in 1991 & 63.8 in
2001. Unemployment
13
• Literacy Ratio
• Literacy Ratio refers to numbers of
Literates as a Percentage of Total
Population.
• Literacy Rate has increased from 16.7
persons in 1951 to 43.6 in 1981 &
65.38 in 2001.
14
Unemployment
• Literacy Ratio
Census Year Literate Males Females
Persons
1951 16.7 25.0 7.9
1961 24.0 34.4 13.0
1971 29.5 39.4 18.7
1981 43.6 56.4 29.75
1991 52.21 64.1 39.3
2001 65.38 75.85
54.16
15
Unemployment
• Literacy Ratio
• Literacy is higher among Urban
Population than Rural Population.
• Literacy Rates are different among the
States. Kerala has the highest Literacy
Rate of 90% followed by Goa with 82%,
77% in Maharashtra & Himachal
Pradesh, 73% in Tamil Nadu, etc.
16
Unemployment
Causes of Rapid Growth of
Population
Population generally Increases because of:
1. High Birth Rate.
2. Relatively Lower Death Rate.
3. Immigration is more than Emigration.
In India, Population has mainly
increased because of High Birth Rate &
Relatively Low Death Rate.
17
Unemployment
Causes of High Birth Rate
• Pre-dominance of Agrarian Economy.
• Slow Process of Urbanization.
• High Incidence of Poverty.
• Early Marriage of Women.
• Universal Marriage of Women.
• Role of Religion
• Joint Family System
• Illiteracy, Ignorance & Belief in Fate.
Limited Spread of Family Planning.
• Unemployment
18
Causes of Decline in Death Rate
• Control of Epidemics like Plague, Small Pox,
Malaria, etc.
• Control of Famines.
• Improved Medical Facilities.
• Spread of Maternity Homes.
• Impact of Social Reforms.
• Impact of Economic Development (Improved
Standard of Living, Improved Hygiene &
Sanitation, etc.)
Unemployment
19
Theory of Demographic
Transition
• Theory of Demographic Transition explains the
Effect of Economic Development on the Size &
Growth Rate of Population of a Country.
• According to this Theory, Every Country passes
through 3 Stages:
– First Stage : Slow Uneven Growth
• Both Birth Rate & Death Rate are High.
– Second Stage: Population Explosion
• Birth Rate is High & Death Rate Falls.
– Third Stage: Low Rate of Population Growth
• Both Birth RateGeneral
& Death Rate are Low.
Economics:Population,Poverty&
20
Unemployment
Effect of Population Growth on
Indian Economic Development
• India is passing through the Stage of Population
Explosion which is a Transitory Phase according to
the Theory of Demographic Transition.
• Analysis of Effect of Population Growth on Indian
Economic Development:
i. Growth of National Income
ii. Food Supply
iii. Unproductive Consumers
iv. Problem of Unemployment
v. Capital Formation
vi. Ecological Degradation
Unemployment
21
Measures to Solve Population
Problem
• Spread of Education
• Increase in Female Wage Employment
• Provision of Old Age Pension & Social Security
• Reduction in Infant Mortality
• Raising the Marriage Age
• Family Planning
• Urbanization
• Removing Economic Reasons for Preferring Large
Families
• Introducing Incentives for People with Small
Families General Economics:Population,Poverty&
22
Unemployment
Poverty
23
Unemployment
Poverty
Relative Absolute
Poverty Poverty
24
Unemployment
Relative Poverty
• Relative Poverty refers to the Income or Asset
Position of one Class or Group of People in
comparison with the other Classes or Groups,
or of one Individual vis-a-vis the Others.
• The essential point here is that Poverty of One
is Relative to the Richness of the other.
• For Example, an Average Middle Class Person is
Poor when compared to the Upper Middle
Class Person, who in turn, may be poorer than
the Richer Person and so on.
Unemployment
25
Absolute Poverty
• It is associated with a Minimum Level of
Living or Minimum Consumption
Requirements of Food, Clothing, Housing,
Health, etc.
• All those People who fail to Secure Income
or Assets to have access to even these
Minimum Consumption Requirements are
classified as ‘Poor’.
• Is relevant for the Less-Developed Countries.
26
Unemployment
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 Necessary Nutritional
Standard expressed in terms of Calories
Per Day. General Economics:Population,Poverty&
27
Unemployment
Poverty Line
• 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 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.
28
Unemployment
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% in 2004-05.
• The Tenth Plan had set a target of Reduction
in Poverty Ratio to 19.3% by 2007 and 11%
by 2012. The targets for Rural and Urban
Poverty in 2007 were 21.1% and 15.1%
respectively.
29
Unemployment
Causes of Poverty
• Under developed Nature of the Indian
Economy.
• Inequalities in Income & Assets Distribution
cause Additional Income from Development
to be cornered by a few Rich People.
• 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
30
Unemployment
Causes of Poverty
• Inflation 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.
• Rural Character of India’s Economy has also
its bearing on Rural Poverty.
• Sociological reasons too have contributed
to Underdevelopment & Poverty in India.
31
Unemployment
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.
32
Unemployment
Measures to Reduce Poverty
• Income Inequalities should be reduced:
– Labour Legislation should ensure better Wages.
– Goods consumed by the Poor should not be Taxed.
– Goods required by the Poor must be Subsidised.
– 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 brought down through
Family Planning, Education, Incentives, etc.
33
Unemployment
Government Programmes For
Poverty Alleviation
• Pradhan Mantri Gram Sadak Yojana
(PMGSY)
– Launched in December, 2000 to provide Road
Connectivity through good 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.
34
Unemployment
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.
35
Unemployment
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.
36
Unemployment
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 the setting up of Self-employment
Ventures or Provisions of Wage Employment.
37
Unemployment
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 Persons.
Unemployment
38
Types of Unemployment
• Voluntary Unemployment.
• Frictional Unemployment.
• Casual Unemployment.
• Seasonal Unemployment.
• Structural Unemployment.
• Technological Unemployment.
• Cyclical Unemployment.
• Chronic Unemployment.
• Disguised Unemployment.
39
Unemployment
• Voluntary Unemployment.
– People who are unwilling to Work at the
Prevailing Wage Rate & People who get a
continuous flow of Income from their
Property or other Sources & need not to
Work, such people are Voluntarily
Unemployed.
– Voluntarily Unemployment is a National
Waste of Human Energy, but it is not a
Serious Economic Problem.
Unemployment
40
• Frictional Unemployment.
– A temporary phenomenon which results from
Workers which are temporarily out of Work
while changing Jobs or are suspended due to
Strikes or Lockouts.
– Frictional Unemployment is due to difficulties in
getting Workers & Vacancies together.
– For example, Big Industries Units & Polluting
Industries have been moved out of the large
towns and cities like Delhi.
41
Unemployment
• Casual Unemployment.
–In Industries, such as Construction,
Catering or Agriculture, where Workers
are Employed on a day to day basis,
there are chances of Casual
Unemployment occurring due to
Short-term Contracts, which are
terminable any time.
42
Unemployment
• Seasonal Unemployment.
– Industries & Occupations such as
Agriculture, the catering trade in Holiday
Resorts, where Production Activities are
seasonal in nature offer Employment only
for a certain Period of Time in a Year.
People engaged in such type of Work or
Activities may remain Unemployed
during the Off-Season which is termed as
Seasonal Unemployment.
43
Unemployment
• Structural Unemployment.
– Unemployment which arises due to change in the
Pattern of Demand leading to Changes in the Structure
of Production in the Economy is termed as Structural
Unemployment.
– Example use of Synthetic Rubber is bound to reduce
Demand for Natural Rubber & lead to Unemployment
in Rubber Plantation.
– The only way to remove such Unemployment is to
retrain the Unemployed in new Vocations so that they
learn new Technologies & are thus absorbed in the
expanding Economic Sectors.Unemployment
44
• Technological Unemployment.
–Due to Introduction of New Machinery,
improvement in methods of
Production, Labour-Saving devices,
etc.., some Workers tend to be
replaced by Machines. Their
unemployment is termed as
Technological Unemployment.
45
Unemployment
• Cyclical Unemployment.
– Associated with the Cyclical Fluctuations in
Economic Activity, especially in the Recessionary
Depressionary Phases of Trade Cycle.
– Mostly found in Capitalist Countries like the USA
and Western European Nations, etc.
– The Solution for Cyclical Unemployment lies in
measures for increasing Total Expenditure in
Economy, thereby pushing up the level of
Effective demand.
46
Unemployment
• Chronic Unemployment.
– When Employment tends to be a Long-term
feature of a Country, it is called Chronic
Unemployment.
– Underdeveloped Countries suffer from
Chronic Unemployment on account of the
Vicious Circle of Poverty, Lack of Developed
Resources & their under utilization, High
Population Growth, Low Capital Formation,
etc. General Economics:Population,Poverty&
Unemployment
47
• Disguised Unemployment.
– Refers to a position where People may be Working
& apparently Employed, yet their Contribution to
Output may be Zero. Hence, they seem to be
employed, but technically they are Unemployed
because their Marginal Productivity is Zero.
– Common feature of Underdeveloped Economies
especially in their Rural Sectors.
– In short, Overcrowding in an Occupation leads to
Disguised Unemployment.
48
Unemployment
Types of Unemployment in India
Unemployment in
India
Rural Urban Unemployment

Unemployment Unemployment Among the Youth
Chronic Among Industrial

Unemployment Workers
Seasonal Among Urban Educated

Unemployment People
Disguised Technological
Unemployment General Economics:Population,Poverty&
Unemployment
49
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.
50
Unemployment
Measurement of Unemployment
Usual Principal • Estimates the number of Persons who
Status may be said to be Chronically
Unemployed.
Basis(UPS)
Current • According to this, a Person is said to be

Weekly Status unemployed for the week even if he is
employed only for a day during that week.
Basis (CWS)
Current Daily • Any person who works for one hour or more
during the day is considered to be employed
Status Basis for a half day. As such, CDS is aggregate of all
(CDS) unemployment days of all persons.
51
Unemployment
Extent of Unemployment In India
UPS CWS CDS
1977-78 4.23 4.48 8.18
1983 2.88 4.51 8.28
1993-94 2.62 3.63 6.03
1999-2000 2.78 4.41 7.32
2004 2.14 5.12 9.09
52
Unemployment
Q1
What is India’s Rank in World
Population?
a) First.
b)Second.
c) Third.
d)Fourth.
53
Unemployment
Q2
The Annual Addition to India’s
Population is almost equal to the
Total Population of
a) Bangladesh.
b)Australia.
c) Japan.
d)China. General Economics:Population,Poverty&
Unemployment
54
Q3
In which State the Sex Ratio is more
favourable Women?
a) Andhra Pradesh.
b)Uttar Pradesh.
c) Kerala.
d)Karnataka.
55
Unemployment
Q4
Which year is known as Year of
Great Divide for India’s
Population?
a) 1991.
b)2001.
c) 1981.
d)1921. General Economics:Population,Poverty&
Unemployment
56
Q5
In which State/Union Territory is
the Literacy Rate Highest?
a) Delhi.
b)Chandigarh.
c) Karnataka.
d)Kerala.
57
Unemployment
Q6
India’s passing through _______
stage of Demographic Transition.
a) Fourth.
b)Third.
c) First.
d)Second.
58
Unemployment
Q7
In the Theory of Demographic
Transition, in the last stage,
a) Birth Rate Rises, Death Rate Rises
b)Birth Rate Rises, Death Rate Falls
c) Birth Rate Falls, Death Rate Rises
d)Birth Rate Falls, Death Rate Falls
59
Unemployment
Q8
Which of the following statements is
correct?
a) India’s Population is Second Largest in the
World.
b) India is still passing through First Stage of
Demographic Transition.
c) More people in a Country always mean
more Economic trouble for the Country.
d) None of the Above.
Unemployment
60
Q9
India’s Present Population is
a) Between 50-60 crore.
b)Between 60-70 crore.
c) Between 70-80 crore.
d)Above 100 crore.

Unemployment
61
Q 10
India accommodates nearly ____
per cent of World’s Population.
a) 10
b)50
c) 17
d)45
62
Unemployment
Q 11
Over the Years, Birth Rate in India
has ______ & Death Rate has ____
a) Fallen, Fallen.
b)Risen, Fallen.
c) Risen, Risen.
d)Fallen, Risen.
63
Unemployment
Q 12
The Birth Rate in India is High
because of
a) Predominance of Agriculture.
b)Slow Urbanization.
c) High Incidence of Poverty.
d)All of the Above.
64
Unemployment
Q 13
Which of the following statements is correct?
a) Gini Coefficients are often used for
measuring Poverty in Relative Sense.
b) When Poverty is related to the Distribution
of Income or Consumption Expenditure, it is
Absolute Poverty.
c) In India, we mainly use the Concept of
Relative Poverty for measuring Poverty.
65
Unemployment
Q 14
Identify the Incorrect Statement.
a) The Problems of Poverty &
Unemployment are Inter-related.
b) The Problem of Poverty has been solved
in India.
c) Growing Population has also contributed
to the Problem of Poverty in India.
66
Unemployment
Q 15
SJSRY stands for
a) Swaran Jayanti Shahari Rozgar
Yojana.
b) Shahari Jeewan Sudhar Rashtriya
Yojana.
c) Sampoorna Jeewan Shahari Rozgar
Yojana.
67
Unemployment
Q 16
EAS stands for
a) Easy Assistance Scheme.
b)Endless Assistance Scheme.
c) Employment Assurance Scheme.
d)Employment Assessment Scheme.
68
Unemployment
Q 17
A situation of Employment in which a Person is
apparently Employed but his contribution to
the Production is almost Nil is called
_________ Unemployment.
a) Structural.
b) Chronic.
c) Disguised.
d) Cyclical.
69
Unemployment
Q 18
_________ Unemployment may result when
some Workers are Temporarily out of Work
while Changing Job.
a) Cyclical.
b) Voluntary.
c) Frictional.
d) Seasonal.
70
Unemployment
Q 19
According to _______ measure, a person is said
to be Employed for the week even if he is
Employed only for a Day during the Week.
a) Usual Status.
b) Current Weekly Status.
c) Current Daily Status.
d) Current Yearly Status.

71
Unemployment
Q 20
________ measures estimates the number of
persons who may be said to be Chronically
Unemployed.
a) Usual Status.
b) Current Weekly Status.
c) Current Daily Status.
d) Current Yearly Status.

72
Unemployment
Q 21
When due to Introduction of New Machinery,
some Workers tend to be replaced by
Machines, their Unemployment is termed as
a) Structural.
b) Technological.
c) Mechanical.
d) Seasonal.
73
Unemployment
Q 22
Every ______ person in World is an
India.
a) Second.
b)Third.
c) Sixth.
d)Tenth.
74
Unemployment
Q 23
__________ measures generally gives the
Lowest Estimate of Unemployment especially
for Poor Economy.
a) Usual Status.
b) CWS.
c) CDS.
d) CMS.
75
Unemployment
Q 24
Most of the Unemployment in
India is ________
a) Voluntary.
b)Structural.
c) Frictional.
d)Technical.
76
Unemployment
Q 25
According to the Planning Commission, a
Person is said to be below Poverty Line, if
he is Earning Less Than ____Per Capita Per
Month for Urban Areas & Less Than ___
Per Capita Per Month for Rural Areas.
a) Rs. 2000; Rs. 3,000
b) Rs. 500; Rs. 1,000
c) Rs. 240; Rs. 200
d) Rs. 559; Rs. 368
Unemployment
77
Q 26
Work Force refers to that part of:
a) Labour Force which is Employed.
b)Population which is Unemployed.
c) Population which is Forced to
Work.
d)Labour Force which is
Unemployed.
Unemployment
78
Q 27
According to the 61st NSSO Survey (July 2004
– June 2005):
a) The Unemployment Rates went down
between 1993-94 to 2004.
b) The Unemployment Rates went up
between 1993-94 to 2004.
c) The Unemployment Rates remained same
between 1993-94 to 2004.
Unemployment
79
Q 28
According to the 61st NSSO Survey (July 2004 – June
2005):
a) Unemployment Rates on the Basis of Current Daily
Status were same as those on the basis of Usual
Status.
b) Unemployment Rates on the Basis of Current Daily
Status were higher than those in the basis of Usual
Status.
c) Unemployment Rates on the Basis of Current Daily
Status were lower than those in the basis of Usual
Status.
80
d) None of the Above. Unemployment
THE END
Population, Poverty &

Unemployment

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Population, Poverty &

Rural Urban Unemployment

Chronic Among Industrial

Seasonal Among Urban Educated

Current • According to this, a Person is said to be

b)Between 60-70 crore.

c) Between 70-80 crore.

d)Above 100 crore.

b) Current Weekly Status.

c) Current Daily Status.

d) Current Yearly Status.

b) Current Weekly Status.

c) Current Daily Status.

d) Current Yearly Status.

Population, Poverty &

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