Economics Ch 8 Poverty in India Question and Answer (9725452059)

Jeegar Bhatt

Economics Chapter 8 Poverty in India Question & Answer

Section B 1. Which type of problem is poverty? Poverty is a manmade problem. 2. Based on unequal distribution of income, the country is divided into which three sections? Based on unequal distribution of income countries can be divided i) Country with greater disparity of income ii) Country with medium disparity of income and iii) Country with low disparity of income. 3. What is Poverty Line? Poverty line means the minimum value of an individual consumption expenditure or income which a person should attain for his/her survival 4. Define Poor in accordance with international standards. According to international standards a person whose daily income is less than 2$ is considered as a poor person 5. Who is called Very Poor according to international standards? According to international standards a person whose daily income is less than 1$ is called as a very poor person 6. What basically does relative and absolute poverty indicate? Relative poverty indicates inequality of income and consumption while absolute poverty indicates degree of the quality of life. 7. What is calorie? The idea of calories derived from the diet and used it to calculate minimum standard of expenditure. 8. What was the magnitude of poverty in India during 1960-80? Between 1960-80, the magnitude of poverty in India was 40% to 60% of the total population. 9. According to 1993-94, what was the minimum standard of monthly per capita expenditure of rural and urban areas? According to 1993-94, per capita expenditure of rural resident was fixed at rupees 228 per month and Rs. 265 per month for urban residents. 10. What is Self-Employment Group? Self-Employment or Self-Help Group is a group of 10-12 members who can distribute the work with each other, learn from each other and encourage each other. 11. What is the standard of subsidy for the unreserved Self-Employment Group in SJGRY? The standard of subsidy for unreserved self-employment Group in SJGRY is 50% of the expenses of the project within the limit of Rs 1.25 lakh. 12. The Sampoorna Gramin Rojgar Yojana (Total Rural Employment Scheme) was introduced for which type of people? The Sampoorna Gramin Rojgar Yojana (Total Rural Employment Scheme) was introduced for agricultural labourers, unskilled labourers, marginal farmers, individuals from scheduled caste and scheduled tribes and handicapped people. 13. In Employment Guarantee Scheme, priority is given to which type of people? In Employment Guarantee Scheme priority is given to parents of those child labourers who are removed from hazardous businesses. 14. Write full name of MDMS. Mid Day Meal Scheme. 15. What is the aim of Social Security Programmes? The aim of Social Security Programmes is to make an effort to improve weak economic condition and low quality of life of children, elders and women and to reduce intensity of poverty indirectly. 16. What is the main objective of the Universal Health Insurance Scheme? The main objective of Universal Health Insurance Scheme is to create a health scheme for poor people living below poverty line. 17. Which scheme has provisions against HIV and AIDS? Universal Health Insurance Scheme has provisions against HIV and AIDS. 18. Write about the purpose of the Ambedkar-Valmiki Residence Scheme. 1

Economics Ch 8 Poverty in India Question and Answer (9725452059)

Jeegar Bhatt

The purpose of Ambedkar- Valmiki Residence Scheme is to provide residence at normal rate to the people of Scheduled Caste and weaker, backward communities in urban area. 19. What are the reasons for criticising the Public Distribution Scheme? Public Distribution Scheme is criticised because of corruption and inefficiency of the distribution system. Section C 1. How can we consider poverty as the Condition of deprivation? Concept of poverty is connected with basic need. A person who can not satisfy his primary need like food grains, cereals, milk, vegetables, cloth etc. are called absolute people. As the concept of poverty is associated with deprivation from the basic needs it is considered as Condition of deprivation. 2. What is relative poverty? Explain while giving examples. Relative Poverty shows the degree of difference in the levels of incomes of different sections in society. In the society, among various groups with different levels of income, if one group is getting less income as compared to other groups, it can be said that it is a relatively poor group. For example, suppose, income of four people are as under: A: Rs. 25,000 B: Rs. 28,500 C: Rs. 36,000 D: Rs. 41000 If the annual income of B is considered than A having less income is considered to be poor, whereas, the other two people are having more income and hence cannot be called as poor. If the income of D is considered, then in comparison to him, all the other people are having less income and hence are poor. 3. What are the standards for measuring minimum standards of poverty measurement? What are the factors affecting them? The idea of calories derived from the diet is suggested by majority of economists for measuring minimum standard of poverty. Factors like age, caste, area of residence, etc. affects measurement of standard of calories. 4. Mention changes in the magnitude of poverty after 1960. According to the research studies carried out between 1960-80, the magnitude of poverty in India was 40% to 60% of the total population. After 1991, the magnitude of poverty in India in 1990 was around 36%. The national sample survey which conducted the study of consumer expenditure for the period July 1999 to June 2000 showed that the poverty level in 1993-94 was 36% and was reduced to 26% in 1999-2000. 5. What is the difference between Self-employment Programmes and Wage Employment Programmes? Self-Employment Programmes Wage-Employment Programmes
No direct employment is provided in selfemployment but training is provided so that the person can get employment in future. From April 1, 1999, two main programmes are in force: 1) Suvarns Jayanti Gram Rojagar Yojana and 2) Suvarna Jayanti Shaheri Rojgar Yojana. It is an indirect way of solving unemployment problem. There is provision for loan and subsidy under selfemployment programmes As the person is given opportunity of self employment he will earn profit as income The income received is uncertain Unemployed person gets employment with wages. For wage-employment there are three programmes: 1) Sampoorna Grameen Rojgar Yojana 2) Jawahar Gram Samruddhi Yojana and 3) Employment guarantee Scheme. It is a direct way of solving unemployment problem. There is no provision for loan and subsidy. As a person gets employment they receive wages as income Employed person gets certain fixed wages.

6. What are the limitations in the Self-Employment Programmes implemented by the government? Following are the limitations in the Self-Employment Programmes implemented by the government: The aid allocated in these programmes has not reached the poor. Some assistance were so inadequate that they cannot effectively create self employment. Assistance extended for productive purpose was used for unproductive purposes like marriages. 7. Write about Jawahar Gram Samrudhi Yojana. 2

Economics Ch 8 Poverty in India Question and Answer (9725452059)

Jeegar Bhatt

Jawahar Gram Samrudhi Yojana was started on 1st April, 1999 to undertake creation of durable assets that can strengthen rural infrastructure by village people. Such work will provide gainful employment to village poor. In this scheme priority is given to disabled persons and people from schedule caste and schedule tribe and handicapped person living below poverty line. The 30% of employment opportunities are reserved for women labourers. The gram panchayat sabha has been authorised to sanction Rs. 50,000 for various programs under this scheme. 8. What is the objective of the Employment Guarantee Scheme? What are the tasks undertaken under this scheme? The objective of the Employment Guarantee Scheme is to create permanent collective assets which can provide permanent employment. This includes minor irrigation, recharging the sub soil water supply, deepening of village tanks (talav) etc. 9. Explain the following terms: a. Relative poverty Relative Poverty shows the degree of difference in the levels of incomes of different sections in society. In the society, among various groups with different levels of income, if one group is getting less income as compared to other groups, it can be said that it is a relatively poor group. b. Buffer stock To maintain stability of price of grains and to fight against the circumstances like famine, heavy rains etc. stock of grains is to be kept, it is called buffer stock. Section D 1. Explain through examples relative inequality. Relative Poverty or inequality shows the degree of difference in the levels of incomes of different sections in society. In the society, among various groups with different levels of income, if one group is getting less income as compared to other groups, it can be said that it is a relatively poor group. For example, suppose, income of four people are as under: A: Rs. 25,000 B: Rs. 28,500 C: Rs. 36,000 D: Rs. 41000 If the annual income of B is considered than A having less income is considered to be poor, whereas, the other two people are having more income and hence cannot be called as poor. If the income of D is considered, then in comparison to him, all the other people are having less income and hence are poor. 2. How is absolute poverty defined? Explain in detail. The people in the economy who are incapable of even satisfying their primary necessities like food grains, cereals, milk, vegetables, clothes etc. are called absolute poor people. This concept puts a minimum value of an individual consumption expenditure or income which a person should attain for his/her survival. This is called a Poverty line. A measure of minimum income level is fixed for countries of the world for international comparison. Accordingly a person whose daily income is less than 2$ is considered as a poor person and whose daily income is less than 1$ is called as a very poor person (this minimum income standard is formulated in accordance to the purchasing power parity theory). For countries like India the concept of absolute poverty is more relevant and useful than that of the relative poverty because relative poverty indicates inequality of income and consumption whereas absolute poverty presents degree of the quality of life. Majority of economists have emphasised on the idea of calories derived from the diet and used it to calculate minimum standard of expenditure. At 1993-94 prices per capita expenditure of rural resident was fixed at rupees 228 per month and Rs. 265 per month for urban residents. In the absolute poverty, if this standard is low, the poverty is low and if they are high, the poverty is high. 3. Write three points of difference between relative poverty and absolute poverty. Relative poverty Absolute poverty
When the group of society is poorer than the other, it is relative poverty. We compare income for knowing relative poverty. in relative poverty, one group of society is compared To sustain human existence minimum standard of income and expenditure has been fixed. If a person cannot afford it, he is absolute poor. In absolute poverty, there is not comparison with

Economics Ch 8 Poverty in India Question and Answer (9725452059) with the other. The concept of relative poverty is more relevant in developed countries. It indicates the disparity of income and expenditure. The concept is based on comparative income.

Jeegar Bhatt

other groups The concept of absolute poverty is more relevant in underdeveloped countries. It indicates the quality of life. The concept is based on minimum calories and expenditure.

4. What are the main observations after studying about poverty in India? Following observations can be made after studying poverty in India: 1) According to the calculation of Planning Commission of India in 1996-97, the 29.2% population of India lived below poverty line. By 2001-02, it was expected that it would be brought down to 18%. In fact from July 1999 to June 2000 National Sample Survey was made for consumer cost. Accordingly to this survey, the proportion of poverty which was 36% in 1993-94 has gone down to 26% in 1999-2000. 2) In 1999-2000, the population of India was 99.70 crores out of which 26 crores were absolute poor. 3) In India, the proportion of poverty is higher than in China, Korea, Malaysia etc. 4) In India, in all the surveys, the poverty in rural areas is more in percentage than urban poverty. 5) From 1973-74 to 1999-2000 rural poverty reduced from 56.4% to 27.1%. 6) From 1973-74 to 1999-2000 urban poverty decreased from49.0% to 23.6% 7) Among the different states, different proportions of poverty is found. According to the survey of 1999-2000, the maximum poverty was in Orissa, Bihar and Madhya Pradesh etc. while JammuKashmir, Punjab, Hariyana, Gujarat etc. have less number of people under poverty line. 5. Write short note on Suvarna Jayanti Rojgar Yojana. This scheme has been started from April 1999 by merging the above mentioned six programmes. Families which are living below the poverty line in rural areas are target groups of these Suvarna Jayanti Gram Rojgar Yojana. The objective here is to enlarge self employment by sharing labour with one another through the self help groups of 10 to 12 members who can distribute work with each other, learn from each other and encourage each other. Here, they try to increase their ability for employment by training persons, planning and constructing infrastructure, providing bank loans and subsidies and market support. In self-employment opportunities are reserved, 50% for schedule tribes; 40% for women and 3% for handicapped. In these schemes 30% of project cost within the limit of Rs. 7500 and if a person is from schedule caste, schedule tribe and handicapped is provided 50% of the expenses of total project as subsidy within the limit of Rs. 10,000. The amount of subsidy for the self help group is 50% of the expenses of the project within the limit of Rs. 1.25 lakh. These schemes are implemented by the district village development agency and district panchayat. 6. Write short note on Sampoorna Gramin Rojgar Yojana. This scheme was implemented from 25th September, 2004. The aim of this scheme is to provide food security with wages to the people in rural areas. The agricultural labourers, unskilled labourers, marginal farmers as well as individuals from scheduled caste and scheduled tribes and also handicapped people are to be provided employment opportunities under this scheme. By then simple digging tools, spades, baskets, which can be used with their hands in the rural areas. Under this skill. For a days wage a labourer is given 5kgs. of food-grains. The development of traditional sources of water, afforestation which constitutes famine prevention work, construction of classroom for primary schools, health centres, vetinary centres and their repairing provides work to people in the rural areas. Under this scheme, the minimum wage is paid to male and female worker for the similar work and they are not discriminated on the basis of gender. The central and the state governments shoulder every year, in the ratio of 75: 25, approximately, 10,000 crores. 7. Explain Food Security (Public Distribution System) The government has provided food security to the poor families through the public distribution scheme (PDS), integrated child development scheme (ICDS) and mid day meal scheme. In 1951, the per capita availability of food grain was 394.9 gms per head which reached to 414.1 gm per head in 2001. Inspite of this, due to poor purchasing power many people suffered from malnutrition and hunger. The government has built up buffer stock of food-grains to meet crisis situation. As a consequence, it has become easier to provide food-grains to poor at a fair price. By the end of March 2003 the government had a buffer stock of 361.93 lakh tones. The government runs nearly 4 lakh fair 4

Economics Ch 8 Poverty in India Question and Answer (9725452059)

Jeegar Bhatt

price shops in the country. Over and above, the buffer stock is used to provide food-grains to poor under various schemes such as Antoyodaya, total rural employment scheme and total work program.