Podcast
Questions and Answers
What is the primary determinant of whether a person is considered poor?
What is the primary determinant of whether a person is considered poor?
- Owning assets like a car
- Income or consumption level below a minimum threshold (correct)
- Living in a rural area
- Lack of educational qualification
Why does the poverty line vary between countries?
Why does the poverty line vary between countries?
- Social norms and levels of development differ (correct)
- Variances in government assistance programs
- Different countries have various currency values
- Population density impacts poverty lines
What calorie requirement is accepted on average for rural areas in India?
What calorie requirement is accepted on average for rural areas in India?
- 2100 calories per person per day
- 2400 calories per person per day (correct)
- 1800 calories per person per day
- 3000 calories per person per day
What was the poverty line fixed at for urban areas in 2011-12?
What was the poverty line fixed at for urban areas in 2011-12?
How is the food requirement calculated when estimating the poverty line?
How is the food requirement calculated when estimating the poverty line?
Why is the monetary expenditure required higher for urban areas compared to rural areas?
Why is the monetary expenditure required higher for urban areas compared to rural areas?
How frequently is the poverty line estimated?
How frequently is the poverty line estimated?
What additional needs are considered while determining the poverty line in India?
What additional needs are considered while determining the poverty line in India?
What was the percentage of people below the poverty line in India in 2011-12?
What was the percentage of people below the poverty line in India in 2011-12?
Which social group in India is reported to be the most vulnerable to poverty?
Which social group in India is reported to be the most vulnerable to poverty?
What was the average annual decline in the number of poor from 2004-05 to 2011-12 in India?
What was the average annual decline in the number of poor from 2004-05 to 2011-12 in India?
Why did the number of poor in India remain approximately 407 million between 1993-94 and 2004-05 despite the decline in poverty ratio?
Why did the number of poor in India remain approximately 407 million between 1993-94 and 2004-05 despite the decline in poverty ratio?
As per the content, which of the following groups had the highest percentage below the poverty line?
As per the content, which of the following groups had the highest percentage below the poverty line?
What was the poverty ratio in rural areas of India in 1993-94?
What was the poverty ratio in rural areas of India in 1993-94?
Which organizations commonly use a uniform standard of $1.90 per person per day for poverty lines?
Which organizations commonly use a uniform standard of $1.90 per person per day for poverty lines?
What trend is suggested for people below the poverty line in India for the upcoming years?
What trend is suggested for people below the poverty line in India for the upcoming years?
Flashcards
Poverty Line
Poverty Line
The minimum income or consumption level needed to meet basic needs like food, clothing, and shelter. It varies based on time, location, and social norms.
Calorie Requirement
Calorie Requirement
The amount of calories a person needs daily to maintain their health. Varies based on factors like age, sex, and activity level.
Monetary Expenditure Calculation
Monetary Expenditure Calculation
A method used to determine the poverty line in India. It considers essential items like food, clothing, fuel, and healthcare, and multiplies them by their prices.
Food Requirement Formula
Food Requirement Formula
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Periodic Poverty Line Adjustment
Periodic Poverty Line Adjustment
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Urban vs. Rural Poverty Line
Urban vs. Rural Poverty Line
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Example Poverty Line in Rural India
Example Poverty Line in Rural India
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Example Poverty Line in Urban India
Example Poverty Line in Urban India
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Why Do Poverty Lines Differ?
Why Do Poverty Lines Differ?
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Poverty Ratio vs. Number of Poor
Poverty Ratio vs. Number of Poor
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Rural vs. Urban Poverty Reduction
Rural vs. Urban Poverty Reduction
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Vulnerable Groups to Poverty
Vulnerable Groups to Poverty
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Unequal Poverty Distribution
Unequal Poverty Distribution
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Poverty Reduction in India
Poverty Reduction in India
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World Bank Poverty Standard
World Bank Poverty Standard
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Study Notes
Poverty Line Definitions and Variations
- Poverty is defined as an income or consumption level below a minimum needed for basic needs.
- This minimum varies across time and countries.
- Countries use a specific poverty line based on their developmental level and social norms.
- For example, lacking a car might indicate poverty in the US, but not in India, where car ownership is considered a luxury.
Calculating Poverty Lines in India
- Criteria like food, clothing, footwear, fuel, education, and medical needs are considered.
- These necessities are multiplied by their prices in rupees.
- The calorie requirement is the basis of the food calculation.
- Rural areas require 2400 calories per person per day, while urban areas require 2100 due to differing activity levels.
- Food items like grains, pulses, vegetables, milk, and oil provide needed calories.
- The monetary expenditure for these quantities is adjusted for price changes.
- In 2011–12, the poverty line was ₹816 per month in rural areas and ₹1000 in urban areas. This difference is due to higher prices in urban regions.
Poverty Line Determination and Updates
- The poverty line is estimated periodically (generally every 5 years) through sample surveys conducted by the National Sample Survey Organization (NSSO).
- The World Bank uses a $1.90 per person per day standard for international poverty comparisons.
Poverty in India: Trends and Challenges
- Poverty declined from 45% in 1993–94 to 22% in 2011–12.
- The number of poor decreased from 407 million in 2004–05 to 270 million in 2011–12.
- Despite a decrease in the poverty ratio between 1993–94 and 2004–05, the actual number of poor remained high.
Poverty and Vulnerable Groups
- Poverty rates are unevenly distributed across social and economic groups.
- Scheduled Castes and Scheduled Tribes have a higher proportion of poverty.
- Rural agricultural laborers and urban casual laborers are also more vulnerable to poverty.
- In 2011–12, 43% of Scheduled Tribes, 34% of urban casual workers, 34% of rural casual farm laborers, and 29% of Scheduled Castes fell below the poverty line.
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