CBSE Class 9 Social Science Poverty As a Challenge Notes Set A

CAUSES OF POVERTY

There were a number of causes for the widespread poverty in India. One historical reason is the low level of economic development under the British colonial administration. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles. The low rate of growth persisted until the 1980s. This resulted in less job opportunities and low growth rate of incomes. This was accompanied by a high growth rate of population. The two combined to make the growth rate of per capita income very low. The failure at both the fronts: promotion of economic growth and population control perpetuated the cycle of poverty.

The industries, both in the public and the private sector, did provide some jobs. But these were not enough to absorb all the job seekers. Unable to find proper jobs in cities, many people started working as rickshaw pullers, vendors, construction workers, domestic servants etc. With irregular small incomes, these people could not afford expensive housing. They started living in slums on the outskirts of the cities and the problems of poverty, largely a rural phenomenon also became the feature of the urban sector.

One of the major reasons for high Income inequalities is the unequal distribution of land and other resources. Despite many policies, we have not been able to tackle the issue in a meaningful manner. Major policy initiatives like land reforms which aimed at redistribution of assets in rural areas have not been implemented properly and effectively by most of the state governments. Since lack of land resources has been one of the major causes of poverty in India, proper implementation of policy could have improved the life of millions of rural poor.

Many other socio-cultural and economic factors also are responsible for poverty. In order to fulfil social obligations and observe religious ceremonies, people in India, including the very poor, spend a lot of money. Small farmers need money to buy agricultural inputs like seeds, fertilizer, pesticides etc. Since poor people hardly have any savings, they borrow. Unable to repay because of poverty, they become victims of indebtedness. So the high level of indebtedness is both the cause and effect of poverty.

ANTI POVERTY MEASURES

The current anti-poverty strategy of the government is based broadly on two points: (1) Promotion of economic growth (2) Targeted anti-poverty programmes.

1. Promotion of Economic Growth:

(i) Since the eighties, India’s economic growth has been one of the fastest in the world. The growth rate jumped from the average of about 3.5 per cent a year in the 1970s to about 6 per cent during the 1980s and 1990s. The higher growth rates have helped significantly in the reduction of poverty. It is becoming clear that there is a strong link between economic growth and poverty reduction.

(ii) Economic growth widens opportunities and provides the resources needed to invest in human development. This also encourages people to send their children, including the girl child, to schools in the hope of getting better economic returns from investing in education.

2. Targeted Anti-Poverty Programmes:

National Rural Employment Guarantee Scheme (NREGA) 2005:

(i) It was passed in September 2005. This Act provides for 100 days assured employment every year to every rural household in 200 districts. Later the scheme will be extended to 600 districts.

(ii) One-third of the proposed jobs will be reserved for women.

(iii) The Central Government will establish National Employment Guarantee Funds.

(iv)State governments will establish State Employment Guarantee Funds for implementation of the scheme.

(v) Under the programme if an applicant is not provided employment within fifteen days, she/he will be entitled to a daily unemployment allowance.

National Food for Work Programme (NFWP):

(i) It was launched in 2004 in 150 most backward districts of the country.

(ii) The programme is open to all rural poor who are in need of wage employment and desire to do manual unskilled work.

(iii) It is implemented as a 100 percent centrally sponsored shceme and food grains are provided free of cost to the states.

Prime Minister Rozgar Yozana (PMRY):

(i) It is another scheme which was started in 1993.

(ii) The aim of the programme is to create self-employment opportunities for educated unemployment youth in rural areas and small towns.

(iii) They are helped in setting up small business and industries.

Rural Employment Generation Programme (REGP): It was launched in 1995. The aim of the programme is to create self-employment opportunities in rural areas and small towns. A target for creating 25 lakh new jobs has been set for the programme under the Tenth Five Year Plan.

Swarnjayanti Gram Swarojgar Yojana (SGSY): It was launched in 1999. The programme aims at bringing the assisted poor families above the poverty line by organizing them into self help groups through a mix of bank credit and government subsidy.

Pradhan Mantri Gramodaya Yozana (PMGY):

(i) It was launched in 2000.

(ii) Additional central assitance is given to states for basic services such as primary health, primary education, rural shelter, rural drinking water and rural electrification.