Page 83 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 7: Poverty: Concept, Cause and Government Policies

there is a considerable degree of unemployment and under-employment among rural labourers. Notes
It has been established that incidence of unemployment is the highest among casual labourers
• The planning Commission has accepted the Lakdawala Expert Group estimates for poverty
with minor modifications. There is very marginal difference between the estimates of the
Planning Commission and the Expert Group.
• Dr. Gaurav Datt has identified stagnation in rural growth as the basic cause of slowdown in
poverty reduction. This naturally puts a question mark on the very nature of the reform process
in terms of rural welfare.
• As noted above different figures are being presented by the Government about poverty. Therefore
it is difficult to understand that how many people in India are poor.
• This requires a two-pronged strategy - (i) The expansion of sectors which promise higher labour
absorption and (ii) Empowering the poor with education, skill formation and health so that
they can enter sectors which require higher competence and provide better remuneration which
enable the poor to cross the poverty line, the following strategy can solve the problem of poverty.
• As a consequence of sustained growth in expenditure on education, there has been a remarkable
growth in educational institutions at all levels - Primary, secondary and tertiary. The country
was able to achieve a Gross Enrolment Ratio of 96% at the primary level, though the drop-out
rate for class I to VIII was 51 percent which is quite high.
• In view of the increasing use of computers and Information Technology in all walks of life, the
demand for skilled labour is on the increase. Since this requires access to higher education and
vocational training, only those who can afford costly education and vocational training, are
able to benefit from the expanding opportunities of employment.
7.7 Key-Words

1. Diversification : The act of introducing variety (especially in investments or in the variety of
goods and services offered);
2. Poverty line : The estimated minimum level of income needed to secure the necessities of life.

7.8 Review Questions

1. What is the concept of poverty?
2. Discuss the causes of poverty.
3. Why do we need to redefine the poverty line? Explain.
4. How will you empower the poor through provision of housing?
Answers: Self-Assessment

1. (i)(a) (ii)(a) (iii)(d) (iv)(b)
7.9 Further Readings

1. The Indian Economy; S.K. Ray; Prentic, Hall of India Private Limited
New Delhi - 110001.
2. Indian Economy; Gaurav Datt and Aswani Mahajan; S. Chand and Company
LTD. Ram Nagar, New Delhi-110055.

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