Poverty in India Overview

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Questions and Answers

What does the Multidimensional Poverty Index (MPI) primarily measure?

Overlapping deprivations across specific dimensions (correct)

Household assets

Economic growth rates

Income levels only

Which of the following years had data reported by the Lakdawala Committee for both rural and urban populations?

2011-12

1993-94 (correct)

2004-05

2009-10

In the context of MPI, what indicator carries the highest weight?

Education attainment (correct)

Sanitation facilities

Electricity access

Child mortality

Which Committee's report does not provide any data for rural populations in 2009-10?

Lakdawala Committee Signup and view all the answers

Which dimension is NOT part of the MPI's assessment?

Housing quality Signup and view all the answers

What implication does the MPI have regarding poverty comprehension?

It identifies both the incidence and severity of poverty. Signup and view all the answers

What percentage of weights does electricity access contribute to the MPI?

1/18 Signup and view all the answers

In which year did the Tendulkar Committee report the highest urban poverty rate?

2004-05 Signup and view all the answers

What percentage of India's population was identified as multidimensionally poor in the year 2015-16?

25.01% Signup and view all the answers

Which state in India had the highest proportion of multidimensionally poor people in 2015-16?

Bihar Signup and view all the answers

Which of the following Union Territories had the lowest proportion of poverty in 2015-16?

Puducherry Signup and view all the answers

What is one of the key significances of the National MPI mentioned in the findings?

It serves as an important public policy tool. Signup and view all the answers

Which two Union Territories are identified as having higher poverty than Chandigarh in 2015-16?

Dadra and Nagar Haveli and Jammu & Kashmir Signup and view all the answers

What does the term 'absolute poverty' specifically refer to?

A condition where basic human needs are not met. Signup and view all the answers

Which committee recommended a per capita daily requirement of 2400 calories for adults in rural areas?

Y.K Alagh Committee Signup and view all the answers

What was the poverty line set by the First Planning Commission Working Group in 1962 for rural areas?

Rs 20 per month Signup and view all the answers

What daily per capita expenditure did the Tendulkar Committee set for urban areas?

Rs 33 Signup and view all the answers

According to the World Bank, what is the current threshold for absolute poverty per day?

$1.90 Signup and view all the answers

What methodology was primarily used for poverty estimation in India as listed in the content provided?

Consumption expenditure Signup and view all the answers

Which of the following is NOT a characteristic of extreme poverty as defined by the United Nations?

Adequate access to safe drinking water. Signup and view all the answers

What is the primary focus of relative poverty?

Income inequality within a society. Signup and view all the answers

How did the Rangarajan Committee's poverty line for rural areas compare to that of the Tendulkar Committee?

Higher than Rs 32 Signup and view all the answers

What is the root meaning of the term 'poverty' derived from Latin?

Giving birth to nothing. Signup and view all the answers

Which committee disaggregated the national level poverty line into state-specific lines while maintaining the previous definitions?

Lakdawala Committee Signup and view all the answers

What percentage of the population did the Tendulkar Committee estimate to be below the poverty line in 2011-12?

22% Signup and view all the answers

Which organization is responsible for setting the international poverty line?

World Bank Signup and view all the answers

Which organization currently carries out poverty estimation in India?

NITI Aayog Signup and view all the answers

What can primarily contribute to child deaths in absolute poverty scenarios?

Lack of preventive healthcare measures. Signup and view all the answers

How does the definition of poverty evolve according to the various sources mentioned?

It reflects both resources and choices affecting living conditions. Signup and view all the answers

What is the primary purpose of the National Multidimensional Poverty Index (MPI) in India?

To provide a customized measure for India's poverty levels Signup and view all the answers

Which report shows a consistent downward trend in multidimensional poverty in India?

Global Multidimensional Poverty Index Signup and view all the answers

What was India's MPI score according to the DHS publication for the year 2021?

0.123 Signup and view all the answers

Which SDG is related to the dimension of Health in the context of the MPI?

SDG 2 – Zero Hunger Signup and view all the answers

Which Sustainable Development Goal is associated with the 'Living Standards' dimension in the multidimensional poverty assessment?

No Poverty Signup and view all the answers

Based on the Global MPI 2021, where does India rank among the 109 countries assessed?

66th Signup and view all the answers

What indicator would you NOT find within the National MPI’s dimensions?

Mobile phone ownership Signup and view all the answers

Which of the following is NOT one of the three dimensions of the National MPI?

Employment Signup and view all the answers

Study Notes

Understanding Poverty

Poverty derives from the Latin word ‘pauper’, meaning poor; it signifies unproductiveness and lack of resources.
Defined by Encyclopedia Encarta as "the condition of having insufficient resources or income."
The UN Human Development Report describes poverty as a complex phenomenon tied to inadequacy of resources and deprivation of choices essential for decent living.
Extreme poverty is characterized by severe deprivation of basic needs, including food, water, sanitation, health, shelter, education, and information.

International Poverty Line

The World Bank sets the international poverty line, updated to 1.90perday(2015)from1.90 per day (2015) from 1.90perday(2015)from1.25 (2008).
Individuals earning less than $1.90 per day are classified as absolute poor, lacking usual societal material possessions.

Types of Poverty

Absolute Poverty: Refers to the lack of resources necessary to meet the minimum living standards like food, water, and shelter. It is prevalent in developing countries and often results in high preventable child mortality.
Relative Poverty: Relates to individuals' earnings and resources in comparison to others in the same society, measuring income inequality.

Historical Estimation in India

Planning Commission (1962): Introduced the first poverty lines of Rs 20 for rural and Rs 25 for urban areas.
Y.K. Alagh Committee (1979): Recommended poverty lines based on nutritional requirements—2400 calories for rural and 2100 for urban.
Lakdawala Committee (1993): Retained previous definitions and refined poverty lines by states.
Tendulkar Committee (2005): Established Rs. 27 and Rs. 33 daily spending as poverty lines, finding about 22% of the population was below the poverty line.
Rangarajan Committee (2012): Set Rs 32 for rural and Rs 47 for urban poverty lines, estimating 29.5% of the population below the poverty line.

Current Poverty Estimation

NITI Aayog now conducts poverty estimations, shifting from the Planning Commission's responsibility.
Estimation relies on consumption expenditure rather than income levels.

Global Multidimensional Poverty Index (MPI)

Developed by Oxford OPHI and UNDP in 2010, measuring overlapping deprivations across three dimensions: Education, Health, and Standard of Living.
It assesses not only incidence but also intensity of poverty, using ten indicators for evaluation.

Indicators of Multidimensional Poverty

Education: No household member completed one year of schooling; lack of school attendance for children.
Health: High child mortality rate and nutrition inadequacies.
Living Standards: No electricity, sanitation facilities, access to safe drinking water, inadequate cooking fuel, and asset ownership.

Scenario of Multidimensional Poverty in India

India's Global MPI rank in 2021 was 66 out of 109 countries, reflecting a downward trend in poverty levels.
Notable MPI data from various years shows a gradual decrease in multidimensional poverty indicators.

National Multidimensional Poverty Index (MPI)

The first National MPI was published by NITI Aayog, tailored for India's context while aligned with global standards.
Focuses on three dimensions—health, education, and living standards—using 12 indicators for comprehensive assessment.
As of 2015-16, approximately 25% of the Indian population was considered multidimensionally poor, with significant variations across states and union territories.

Key Findings from National MPI

Bihar had the highest proportion of multidimensionally poor people; Kerala reported the lowest.
Among Union Territories, Dadra and Nagar Haveli had the highest poverty rate, while Puducherry had the lowest at 1.72%.

Significance of National MPI

Acts as a crucial public policy tool for monitoring and addressing multidimensional poverty, guiding evidence-based interventions.
Provides insights into the effectiveness of sectoral interventions against poverty.
Captures simultaneous deprivations affecting households, enabling comprehensive analysis of poverty at national, state, and district levels.

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Description

This quiz explores the definition and origins of poverty, particularly in the context of India. Delve into historical perspectives and contemporary issues surrounding poverty, gaining insights into its impact on society. Understand the economic and social dimensions of this critical topic.