Page 69 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 7: Poverty: Concept, Cause and Government Policies
Pavitar Parkash Singh, Lovely Professional University

Unit 7: Poverty: Concept, Cause and Government Policies Notes

CONTENTS
Objective

Introduction
7.1 Poverty: Concept, Causes and Government Policies
7.2 Economic Reforms and Reduction of Poverty
7.3 Need for Redefining Poverty Line
7.4 Definition of Poverty and Right to Food: Emerging Issues
7.5 International Comparison of Poverty
7.6 Summary
7.7 Key-Words
7.8 Review Questions
7.9 Further Readings

Objectives

After reading this Unit students will be able to:
• Describe the Concept of Poverty.

• Explain the Causes of Poverty.
• Discuss the need for Redefining the Poverty Line.
Introduction

The Indian planning has expanded and diversified the country’s economy considerably. During the
1960s and 1970s, the Gross Domestic Product (GDP) grew at the average annual rate (compound
rate) of 3.2%. In 1980s and 1990s, the economy moved to a higher growth path, that is, to 5.8% and
5.7% per annum, respectively. The first half of the first decade of 21st century more or less maintained
this momentum of growth. It may be noted that the share of the agricultural sector in total GDP has
declined from about 55% to about one fourth and that of the services sector has increased from about
30% to over 50% over the 50 years. This chapter deals with fact as to how much has such economic
expansion and diversification led to the socio-economic well-being of the people of the country. The
impact is easily discernible as about one-fourth of the Indian population of over a billion is poor and
a substantial proportion of labour force remains unemployed. In India, there are gross inequalities in
distribution of income which are considered while discussing the level of economic development in
the country.
7.1 Poverty: Concept, Causes and Government Policies

Poverty can be defined as a social phenomenon in which a section of the society is unable to fulfil
even its basic necessities of life. When a substantial segment of a society is deprived of the minimum
level of living and continues at a bare subsistence level, that society is said to be plagued with mass
poverty. The countries of the third world exhibit invariably the existence of mass poverty, although
pockets of poverty exist even in the developed countries of Europe and America.
Attempts have been made in all societies to define Poverty, but all of them are conditioned by the
vision of minimum or good life obtaining in society. For instance, the concept of poverty in the U.S.A.

LOVELY PROFESSIONAL UNIVERSITY 63