Poverty Line Definitions and Calculations

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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?

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?

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?

Rs 1000 per month Signup and view all the answers

How is the food requirement calculated when estimating the poverty line?

Based on calorie needs multiplied by food prices Signup and view all the answers

Why is the monetary expenditure required higher for urban areas compared to rural areas?

Prices of essential products are generally higher in urban centers Signup and view all the answers

How frequently is the poverty line estimated?

Every five years Signup and view all the answers

What additional needs are considered while determining the poverty line in India?

Food, clothing, fuel, and medical requirements Signup and view all the answers

What was the percentage of people below the poverty line in India in 2011-12?

22% Signup and view all the answers

Which social group in India is reported to be the most vulnerable to poverty?

Scheduled Castes and Scheduled Tribes Signup and view all the answers

What was the average annual decline in the number of poor from 2004-05 to 2011-12 in India?

2.2 percentage points Signup and view all the answers

Why did the number of poor in India remain approximately 407 million between 1993-94 and 2004-05 despite the decline in poverty ratio?

The population increased significantly. Signup and view all the answers

As per the content, which of the following groups had the highest percentage below the poverty line?

Scheduled Tribes Signup and view all the answers

What was the poverty ratio in rural areas of India in 1993-94?

50% Signup and view all the answers

Which organizations commonly use a uniform standard of $1.90 per person per day for poverty lines?

International organizations like the World Bank Signup and view all the answers

What trend is suggested for people below the poverty line in India for the upcoming years?

It may decline to less than 20%. Signup and view all the answers

Signup and view all the answers

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.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the definitions and variations of poverty lines across different countries and times. This quiz delves into the criteria for calculating poverty lines in India, including the necessary food and non-food requirements for urban and rural populations. Test your understanding of how poverty is measured and the impact of social norms on these definitions.