S.K.

SCHOOL OF
BUSINESS MANAGEMENT
Name:- Binal P. Thakkar
Semester:- 1
Subject:- economics
Topic:- poverty
Roll no:- 01

Guided by: Dr.C.P.Thakor

POVERTY: DEFINITION

• Poverty is a condition where people’s basic

needs for food, clothing, and shelter are not
being met.
WHAT IS POVERTY?

• Poverty is hunger.
• Poverty is lack of shelter.
• Poverty is being sick and not being able to see a doctor.
• Poverty is not having access to school and not knowing how to read.
• Poverty is not having a job, is fear for the future, living one day at a time.
• Poverty is losing a child to illness brought about by unclean water.
• Poverty is powerlessness, lack of representation and freedom.
TYPES OF POVERTY:-

• Poverty is generally of two types:

1. Absolute poverty and
2. Relative poverty
 ABSOLUTE POVERTY

1. The absence of enough resources (such as money ) to secure basic life

necessities.
2. A condition characterized by severe deprivation of basic human needs,
including adequate food, safe drinking water, sanitation facilities, health,
shelter, education, information, & access to services.
3. Synonym for extreme poverty.
RELATIVE POVERTY:-

 Definition
 Inequality between groups.
 Proportion of household earning in incomes <1/2 the mean/median income.
 Measured; income disparity ratio of income groups ethnic, urban & rural.
 In this system, if everyone’s real income in an economy increases, but the income in
distribution stays the same, then the rate of relative poverty will also stay the same.
 Example; households with an accumulated income <50% of the median income are
living in poverty.
WORLD POVERTY CONDITIONS:-

 Effects on children:-
• According to UNICEF, 22000 children die each day due to poverty.
• Around 27-28% of all children in developing countries are estimated to be underweight or stunted.
• For the 1.9 billion children from the developing world, there are:
 640 million without adequate shelter(1in 3)
 400 million with no access to safe water(1 in 5)
 270 million with no access to health services(1 in 7)
• Worldwide,
 10.6 million died in 2003 before they reached the age of 5 ( same as children population in France, Germany,
Greece and Italy)
Effects on women
• Women make up half of the world’s population and yet represent a
staggering 70% of the world’s poor.
• Of the 500000 women who die in childbirth every year. 99% live in
developing countries. In other words, in developing countries, a girl or a
women dies every minute in giving birth.
• 4 million girls and women a year are sold into prostitution.
Improper sanitation
• Of the around six billion people in the world, at least 1.2 billion do not have
access to safe drinking water
• More than 2.4 billion people do not have proper sanitation facilities, and
more than 2,2 million people die each year from diseases caused by polluted
water and filthy sanitation conditions.
Effects on education
• Based on enrolment data, about 72 million children of primary
school age in the developing world were not in school in 2005; 57
per cent of them were girls. And these are regarded as optimistic
numbers.
• Nearly a billion people entered the 21st century unable to read a
book or sign their names.
• 121 million out of education worldwide.
POVERTY IN INDIA:-

• India is a developing nation. Although its economy is growing, poverty is still a major challenge.
However, poverty is on the decline in india. It has around 84 million people living in extreme
poverty which makes up 6% of its total population as of may 2021.
• However, the COVID-19 pandemic was expected to drive an additional people into extreme
poverty, depending on the severity of the economic contraction. Poverty, defined as living on less
than $90 a day, affected between 9.1% and 9.4% of the world’s population in 2020, according to the
biennial poverty and shared prosperity report. This would represent a regression to the to the rate of
9.2% in 2017.
• Had the pandemic not disrupted the global economy, this rate was expected to drop to 7.9% in
2020.
RURAL POVERTY:-
• About two thirds of india’s more than 1 billion people live in rural areas, and almost 170
million of them are poor.
• Although many rural people are migrating to cities, 3 out of 4 of india’s poor people live in
the vast rural parts of the country.
• Poverty is deepest among scheduled casts and tribes in the country’s rural areas. India’s
poorest people include 50% of members of scheduled tribes and 40% of people in
scheduled castes.
• On the map of poverty in rural india, the poorest areas lie in parts of rajasthan, Madhya
Pradesh, uttar Pradesh, bihar, Jharkhand, Chhattisgarh, orissa and west Bengal.
• In these areas shortage of water and recurrent droughts impede the transformation of
agriculture that the green revolution has achieved elsewhere.
URBAN POVERTY:-

• As per the latest NSSO survey reports there are over 80 million poor people living in cities and
towns of india. The slum population is also increasing and as per TCPO estimates 2001; over
61.80 million people were living in slums.
• The bulk of the urban poor are living in extremely deprived conditions with insufficient
physical amenities like:
• Low-cost water supply,
• Improper sanitation,
• Bad sewerage and drainage system,
• Very less social services relating to health care, nutrition, pre-school and non-formal education.
• with over 575 million people, india will have
41% of its population living in cities and towns
by 2030 of its nearly 1 billion inhabitants, an
estimated 260.3 million are below the poverty
line, of which 193.2 million are in the rural areas
and 67.1 million are in urban areas.
• The poverty level is below 10% in states like
delhi, goa, and Punjab etc whereas it is below
50% in bihar (43) and orissa(47). It is between
30-40% in northeastern states of assam, tripura.,
and mehgalaya and in southern states of
tamilnadu and uttarpradesh.
CONCLUSION:-

• Though india shows a high economic growth, it is shameful that there is still large scale
poverty in india.
• India has the world’s largest number of poor people living in a single country.
• Poverty in india can be defined as a situation when a certain section of people are unable
to fulfill their basic needs.
• Hunger, malnutrition and susceptibility of poor to natural disasters make them take up
anti national and anti social activities.
• It is the duty of the governments in particular and all citizens in general to try their best to
alleviate poverty to establish hamony and peace in the societies and in the world.