Questions and Answers
What was the daily per capita expenditure for urban areas as stated by the Rangarajan committee for poverty estimation?
Which of the following was identified as a limitation of the Rangarajan committee's measure of poverty?
What percentage of people living below the poverty line in rural areas was reported in 2011-12?
Which consumption components were part of the SECC's methodology for estimating the BPL population?
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In the context of the Rangarajan committee, what does the overall poverty rate of 29.5 Percent signify?
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Which committee was the first to propose an official poverty line based on calorie intake?
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Which poverty estimate method was adopted during the period of 2004-2005?
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What was the estimated percentage of poverty in India according to the Tendulkar Committee's methodology?
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Which committee recognized the differing caloric needs between rural and urban populations?
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What key aspects did the Lakdawala Committee include in its estimation that were previously overlooked?
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Which committee's methodology was reported to have significant methodological errors, particularly claiming that the poverty line was double compared to previous estimates?
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Which poverty estimate is attributed to B.S. Minha from 1956?
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How much did the Tendulkar Committee set as the reference limit for consumer spending in rural areas?
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What methodology was adopted by the NSSO for estimating poverty from 1999-2000 onwards?
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Which historical figure is noted for making early poverty line estimations in India?
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What salary estimation did the National Planning Committee, headed by Nehru, propose for the poverty line in 1938?
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What is one of the primary components measured under the Mixed Reference Period (MRP) methodology?
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What poverty estimation did the Bombay Plan proponents suggest in 1944?
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Which factor is NOT considered a cause of poverty as stated?
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The original poverty line estimation in ₹16 to ₹35 per capita per year was made by which author?
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Which component of poverty does the lack of skill development primarily affect?
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Study Notes
Causes of Poverty
- High population growth rate contributes to increased poverty levels.
- Illiteracy and the caste system, along with bonded labor, hinder economic mobility.
- Significant urban-rural divide affects access to resources and opportunities.
- Unemployment and underemployment exacerbate financial instability.
- Limited reach of poverty alleviation programs fails to address the needs of those in poverty.
- Lack of skill development restricts employment opportunities and economic growth.
- Disparities in income distribution and asset ownership perpetuate poverty cycles.
Methods of Estimating Absolute Poverty
- Uniform Resource Period (URP): Used until 1993-94, based on consumption expenditure recalled over 30 days.
- Mixed Reference Period (MRP): Implemented from 1999-2000, this method examines consumption of low-frequency items over the past year and other items over the previous 30 days.
Historical Poverty Estimates in India
- Dadabhai Naoroji estimated the poverty line between ₹16 to ₹35 per capita per year, termed a subsistence-based poverty line.
- National Planning Committee (1938): Proposed a poverty line of ₹15 to ₹20 per capita per month, not officially recognized.
- The Bombay Plan (1944) suggested a poverty line of ₹75 per capita per year.
- B. S. Minha (1956) reported a poverty estimate of 65%.
- M. S. Ahluwalia (1960) estimated poverty at 39%, PD Ojha (1960) at 44%, and P. K. Bardhan (1968) at 54%, using varied methodologies.
- Dandekar and Neelkanth (1971): Established a calorie intake of 2,250 calories per capita daily, estimating rural poverty at 40% and urban at 50%.
Key Committees on Poverty Measurement
- YK Alagh Committee (1977-1979): First to set an official poverty line using calorie intake; 2,100 calories for urban and 2,400 for rural residents, accounting for different physical labor demands.
- Lakdawala Committee (1989-1993): Expanded on Alagh's methods by including health and education in poverty measurement, but showed higher poverty estimates than previous methods due to methodological errors.
- Tendulkar Committee (2004-2005): Shifted focus from calorie-based estimates to nutritional outcomes, incorporating expenditure on essentials. Established Rs 27 for rural and Rs 33 for urban areas, estimating 37.2% of the population as poor based on 2004-2005 data.
- Rangarajan Committee (2011-2012): Used monthly consumption expenditure for poverty calculation with Rs 33 (rural) and Rs 47 (urban) daily per capita thresholds, resulting in a 29.5% overall poverty rate.
Limitations and Considerations
- Rangarajan's measure may not align with specific welfare programs and may not differentiate between hunger and poverty.
- The concept of poverty signifies a minimum living standard, which is often inadequate for a comfortable lifestyle.
Socio-Economic Caste Census Methodology
- The SECC employs a three-step process: Automatic Exclusion, Automatic Inclusion, and a neither category.
- Components measured include food, education, clothing, conveyance, rent, and behavior-related expenditures.
- Findings from the 2011-12 census indicated 30.95% of rural and 26.4% of urban populations living below the poverty line.
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Description
Test your knowledge on the various causes of poverty, including factors such as population growth, illiteracy, and income disparities. This quiz covers critical social issues and the effectiveness of poverty alleviation programs. Understand the complexities behind poverty in society.
