NCERT Class 9 Economics Chapter 3: Poverty as a challenge Economy Completes Notes Part 3

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Poverty as a Challenge

Poverty Cycle

Percent poor

Percent Poor

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Vicious cycle of poverty

Vicious Cycle of Poverty

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Now poverty acts like a vicious cycle so what happens if a person is poor there would be lack of education and lack of job that would lead to exploitation by the employer which would lead to instability in the economic setup again as a consequence there would be unhygienic surroundings.

There would be malnutrition issues and economics drainage would take place finally the person would again fall into the kind of loan issues and finance issues as a result the poverty would further tend to increase, so it is a kind of vicious circle that goes on and on.

However, if we compare from 1993 to 2012 we can see that the poverty in the rural areas has decreased by nearly 50% from 50% that existed in 93 to nearly 25% in 2011. Similarly there has been a significant drop in urban and the total population that could be seen here so poverty is definitely declining in India.

Poverty – State-Wise (2004-05 to 2011-12)

  • Odisha & Bihar – Sharpest drop

  • Odisha – 57% in 2004-05 to 32.6% in 2011-12

  • Among BIMARU states – Only Rajasthan

  • better than national average

  • Rural – 326 million to 217 million

  • Urban – 81 million to 53 million

    • Punjab & Haryana – by agriculture

    • Kerala in HRD

    • West Bengal – Land reforms

    • Andhra Pradesh & Tamil Nadu – PDS

BPL as percent population

BPL as Percent Population

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Now if you look on to the state wise picture previously Odisha and Bihar were considered to be worst of states in case of the poverty analysis however in the recent decades from 2004 to 2012 we have a study and this shows in Odisha you have the poverty that is decreased from 57% to 32% a 25 point decreased and similar decreased has been seen in Bihar from 54% to 33% so nearly 22% decline in the poverty or the people below poverty line again the best of states are Goa, Kerala, Himachal Pradesh, Punjab and Pondicherry and the worst of the state include the states of Jharkhand, Manipur, Arunachal Pradesh & Bihar.

Again you have the Bimaro states out of which only Rajasthan is doing better than the national average so except all four are below the national average again there has been a decline in the rural poverty from 326 to 217 million and so is the case in urban.

Now there have been different factors in the different states which have led to increase in the standard of living or kind of better income groups, will understand those case by case.

So in case of Panjab and Haryana it was because of the increase in the agriculture so it was better agriculture better employment and getting people out of poverty in Kerala, it was due to increase in the human resource development West Bengal was mainly due to the land reforms that have taken place and Andhra Pradesh and Tamil Nadu it was mainly due to the public distribution system or the availability of basic amenities to each and individual.