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Class XII
INDIAN ECONOMIC DEVELOPMENT
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
1
poverty
• Poverty is not only a challenge for
India, as more than one-fifth of the
world’s poor live in India alone; but
also for the world, where about 300
million people are not able to meet
their basic needs.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
2
Meaning
• Poverty refers to a state in which an
individual is unable to fulfil even the
basic necessities of life. The
minimum requirements included
food, clothing, housing, education
and health facilities.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
3
Who are poor?
• Starvation and hunger are the key
features of the poorest house-holds. The
poor lack basic literacy and skills and
have very limited economic
opportunities. Poor people also face
unstable employment.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
4
Poor in Urban and Rural areas
• Urban areas - ?
• Rural areas – landless, two days meals,
lack basic literacy and skill and have very
limited economic opportunities.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
5
Characteristics of Poor People
• Hunger and starvation
• Poor health
• Debt trap
• Weak bargaining power
• Lack of facilities of electricity and water
• Gender inequality
• Identification on the basis of occupation
• Migration to urban areas.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
6
Measures of Poverty
• Relative poverty is also interpreted in terms of
inequality of income within the country ..in India,
share of 20 % of low income group of people in the
national income is barely 8.5% while that of 20 % of
high income group of people is 46.2 %
• Absolute poverty in India, persons who spend ₹816
on consumption in rural areas and 1000 in urban
areas per month at 2011-2012 prices are treated as
those below the poverty line (Calorie intake)
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
7
How are poor people identified ?
• In pre independent India , Dadabhai Naoroji was the first to
discuss the concept of a poverty line ..jail cost of living…he
assumed that one-third population consisted of children and
half of them consumed very little while the other half
consumed half of adult diet…three forth of the adult jail cost
living
• in post independence
• 1962 – the planning commission formed study group
• 1979 – task force on projection of Minimum needs and
Effective Consumption Demand
• 1989 and 2005- expert group
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
8
Categorizing poverty
• The chronic poor, transient and non poor
• Poor and non poor
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
9
• Chronic poor- who are always poor
sometimes have a little more money
• Transient poor- regularly move in and out of
poverty
• Non poor – never poor
• Poor – the absolutely poor
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
10
Poverty line
• Monthly Per Capita Expenditure
• Calories in take = 2400 calories for rural
person 2100 calories for urban person
• 2011 -12 =₹ 816 rural area ₹1000 urban area
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
11
• Limitation of poverty
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
12
Poor in India
• Head count ratio
• The official data given by Planning commission
it is estimated on the basis of consumption
expenditure data collected by NSSO
• In 1973-74 more than 320 million people were
BPL that is 55% of total population
• 2011 – 12 come down to 270 million i.e 22 %
of total population
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
13
• 1990s the absolute poor in rural area declined
but urban increased marginally
• The gap between rural and urban areas of
absolute poverty was same in 1999-2000 and
has widened in 2011 – 12
• Odisha, Madhya Pradesh , Bihar and Uttar
Pradesh are still far above the national
poverty level.
• West Bengal and Tamil Nadu reduced
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
14
Causes of poverty
• Impact of British rule in Indian economy-India
started exporting food gains and as a result as
as many as 26 million people died in famines
between 1875 and 1900
• Economic condition of farmers since
independence and sate indebtedness
• High growth rate of poplution
• Widespread of unemployment
• Low level of capital formation
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
15
• Lack of infrastructure
• Inequalities of income and wealth
• Rise in general price level
• Lower level of education
• Social factors
• Political factor
• Improper utilisation of resources
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
16
Measures to remove poverty
• Solving poverty by accelerating the pace of
economic growth
• Solving poverty by reduction in inequalities of
income and wealth
Fiscal measures
Legislative measures
• Solving poverty through popluation control
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
17
Other measures
• Agricultural development
• Control over inflation
• Increasing in generation of employment
opportunities
• Minimum needs programme for the poor
• Regional balanced growth
• Development of industries
• Public distribution system should be
strengthened
• Provision of social security
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
18
Policies and programmes towards
poverty alleviation
• Growth oriented approach
 rapid increase in GDP and per capita income
Rapid industrial development
Populaation control
Benefits of economic growth have not trickled
down
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
19
Specific poverty alleviation
programme
• Rural employment generation programme-
khadi and village industries commission
• Prime minister’s rozgar yojana –VIII plan 7 lakh
micro enterprices – 2003-2005, 3.5 million
people got employment
• Swarna jayanti shahari rozgar yojana – centre
sate ratio 75:25 .in DEC. 1997 urban self
emplyment programme and urban wage
employment programme started
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
20
• Swarnajayanti gram swarozgar yojana –April 1
1999- micro enterprise-SHG- National rural
livelihood mission
• Sampoorna grameen rozgar yojana – Sep 2001
– wage employment – unskilled workers –
shared by centre and state
• Mahatma gandhi national rural emeployment
gurantee act, 2005- NREGS Feb 2006,-National
food for work programme
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
21
Meeting minimum needs of poor
• Through public expenditure on social consumption needs
• Improvement in health and education
• This approach – fifth five year plan
• Three major food and nutritinal status are PDS , Integrated
Child Development Scheme and Mid day meals scheme.
• PMGY
• Pradhan Mantri Gram Sadak Yojana
• Pradhan Mnatri Gramodaya Yojana (Gramin Awas)
• Pradhan Mantri Gramodaya yojana –Rural drinking water
projects
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
22
Social Security Programmes
• National Old Age Pension Scheme
• National Family Benefit Scheme
• National Maternity Benefit Scheme
• Pradhan Mantri Jan-Dhan Yojana – 2014-
• 1 lakh accident insurance and ₹30000 life
insurance
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
23
Critical evaluation of PAP
• Achievements
Brought down BPL from 37.2%in 2004-05 to
about 28% in 2011-12
Wage rate have increased due to legislative
measures
The three approch reduces poverty level.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
24
• Shortcomings of PAPs
 due to unequal distributionof land and oter
assets the benefits form direct poverty
alleviation programmes have been
appropriated by the non poor
Compared to the magnitude of poverty ,
programme is not sufficient
These programme are depend on government
and banks ----
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
25
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A.,
26

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Poverty

  • 1. Class XII INDIAN ECONOMIC DEVELOPMENT Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 1
  • 2. poverty • Poverty is not only a challenge for India, as more than one-fifth of the world’s poor live in India alone; but also for the world, where about 300 million people are not able to meet their basic needs. Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 2
  • 3. Meaning • Poverty refers to a state in which an individual is unable to fulfil even the basic necessities of life. The minimum requirements included food, clothing, housing, education and health facilities. Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 3
  • 4. Who are poor? • Starvation and hunger are the key features of the poorest house-holds. The poor lack basic literacy and skills and have very limited economic opportunities. Poor people also face unstable employment. Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 4
  • 5. Poor in Urban and Rural areas • Urban areas - ? • Rural areas – landless, two days meals, lack basic literacy and skill and have very limited economic opportunities. Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 5
  • 6. Characteristics of Poor People • Hunger and starvation • Poor health • Debt trap • Weak bargaining power • Lack of facilities of electricity and water • Gender inequality • Identification on the basis of occupation • Migration to urban areas. Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 6
  • 7. Measures of Poverty • Relative poverty is also interpreted in terms of inequality of income within the country ..in India, share of 20 % of low income group of people in the national income is barely 8.5% while that of 20 % of high income group of people is 46.2 % • Absolute poverty in India, persons who spend ₹816 on consumption in rural areas and 1000 in urban areas per month at 2011-2012 prices are treated as those below the poverty line (Calorie intake) Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 7
  • 8. How are poor people identified ? • In pre independent India , Dadabhai Naoroji was the first to discuss the concept of a poverty line ..jail cost of living…he assumed that one-third population consisted of children and half of them consumed very little while the other half consumed half of adult diet…three forth of the adult jail cost living • in post independence • 1962 – the planning commission formed study group • 1979 – task force on projection of Minimum needs and Effective Consumption Demand • 1989 and 2005- expert group Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 8
  • 9. Categorizing poverty • The chronic poor, transient and non poor • Poor and non poor Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 9
  • 10. • Chronic poor- who are always poor sometimes have a little more money • Transient poor- regularly move in and out of poverty • Non poor – never poor • Poor – the absolutely poor Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 10
  • 11. Poverty line • Monthly Per Capita Expenditure • Calories in take = 2400 calories for rural person 2100 calories for urban person • 2011 -12 =₹ 816 rural area ₹1000 urban area Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 11
  • 12. • Limitation of poverty Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 12
  • 13. Poor in India • Head count ratio • The official data given by Planning commission it is estimated on the basis of consumption expenditure data collected by NSSO • In 1973-74 more than 320 million people were BPL that is 55% of total population • 2011 – 12 come down to 270 million i.e 22 % of total population Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 13
  • 14. • 1990s the absolute poor in rural area declined but urban increased marginally • The gap between rural and urban areas of absolute poverty was same in 1999-2000 and has widened in 2011 – 12 • Odisha, Madhya Pradesh , Bihar and Uttar Pradesh are still far above the national poverty level. • West Bengal and Tamil Nadu reduced Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 14
  • 15. Causes of poverty • Impact of British rule in Indian economy-India started exporting food gains and as a result as as many as 26 million people died in famines between 1875 and 1900 • Economic condition of farmers since independence and sate indebtedness • High growth rate of poplution • Widespread of unemployment • Low level of capital formation Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 15
  • 16. • Lack of infrastructure • Inequalities of income and wealth • Rise in general price level • Lower level of education • Social factors • Political factor • Improper utilisation of resources Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 16
  • 17. Measures to remove poverty • Solving poverty by accelerating the pace of economic growth • Solving poverty by reduction in inequalities of income and wealth Fiscal measures Legislative measures • Solving poverty through popluation control Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 17
  • 18. Other measures • Agricultural development • Control over inflation • Increasing in generation of employment opportunities • Minimum needs programme for the poor • Regional balanced growth • Development of industries • Public distribution system should be strengthened • Provision of social security Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 18
  • 19. Policies and programmes towards poverty alleviation • Growth oriented approach  rapid increase in GDP and per capita income Rapid industrial development Populaation control Benefits of economic growth have not trickled down Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 19
  • 20. Specific poverty alleviation programme • Rural employment generation programme- khadi and village industries commission • Prime minister’s rozgar yojana –VIII plan 7 lakh micro enterprices – 2003-2005, 3.5 million people got employment • Swarna jayanti shahari rozgar yojana – centre sate ratio 75:25 .in DEC. 1997 urban self emplyment programme and urban wage employment programme started Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 20
  • 21. • Swarnajayanti gram swarozgar yojana –April 1 1999- micro enterprise-SHG- National rural livelihood mission • Sampoorna grameen rozgar yojana – Sep 2001 – wage employment – unskilled workers – shared by centre and state • Mahatma gandhi national rural emeployment gurantee act, 2005- NREGS Feb 2006,-National food for work programme Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 21
  • 22. Meeting minimum needs of poor • Through public expenditure on social consumption needs • Improvement in health and education • This approach – fifth five year plan • Three major food and nutritinal status are PDS , Integrated Child Development Scheme and Mid day meals scheme. • PMGY • Pradhan Mantri Gram Sadak Yojana • Pradhan Mnatri Gramodaya Yojana (Gramin Awas) • Pradhan Mantri Gramodaya yojana –Rural drinking water projects Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 22
  • 23. Social Security Programmes • National Old Age Pension Scheme • National Family Benefit Scheme • National Maternity Benefit Scheme • Pradhan Mantri Jan-Dhan Yojana – 2014- • 1 lakh accident insurance and ₹30000 life insurance Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 23
  • 24. Critical evaluation of PAP • Achievements Brought down BPL from 37.2%in 2004-05 to about 28% in 2011-12 Wage rate have increased due to legislative measures The three approch reduces poverty level. Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 24
  • 25. • Shortcomings of PAPs  due to unequal distributionof land and oter assets the benefits form direct poverty alleviation programmes have been appropriated by the non poor Compared to the magnitude of poverty , programme is not sufficient These programme are depend on government and banks ---- Madan Kumar M.A.,M.A.,B.Ed.,M.Phil.,M.B.A., 25