Poverty – Complete Notes | Parmar SSC Lecture 10

📋 Contents – Kya Kya Padhoge?

1. Poverty kya hai? 2. Types of Poverty 3. Poverty Estimation 4. Pre-Independence 5. Post-Independence 6. Trends & State-wise 7. MPI & HDI 8. HCR, EPI, MVI 9. SDGs 10. MPC & Multiplier 11. SEZ 12. Lorenz & Gini

Poverty – Fundamentals

Poverty Kya Hota Hai?

Definition: Poverty ek aisi condition hai jisme koi individual ke paas basic standard of living ke liye zaruri financial resources aur essentials nahi hote.

Ye sirf paison ki baat nahi — environmental, legal, social, economic, aur political causes bhi hote hain.

🏠 Real Life Example

Ramesh ek kisan hai Bihar me: Uske paas na khana hai din mein ek baar, na saaf paani, na doctor ke paas jaane ke paise, na bachon ki school fees. Ye hai poverty — sirf "paisa nahi hai" nahi, balkia ek complete deprivation ki state hai.

Types of Poverty

① Absolute Poverty (Nirpeksh Garibi) 🍚

Jab log basic necessities se bilkul mahroom hote hain — khana, saaf paani, ghar, kapde, healthcare, education.

💡 Example

Sub-Saharan Africa ke bahut se log jo din me ek waqt ka khana bhi nahi khaa paate — ye hai Absolute Poverty. India mein bhi 1990s tak kaafi log iss category mein the. Ye internationally fixed threshold hai ($2.15/day World Bank ke hisaab se).

② Relative Poverty (Sapekhsh Garibi) ⚖️

Jab kisi ka income ya resources uski society ke average se significantly kam ho. Ye comparative hai.

💡 Example

Delhi mein ek autowala ₹20,000 mahine kamaata hai — khana, ghar sab hai. Lekin uske neighbourhood ke logon ki average income ₹80,000 hai. Compare karke wo relatively garib hai. USA mein bhi relative poverty exist karta hai even though absolute poverty rare hai.

③ Subjective Poverty (Vyaktigat Garibi) 🧠

Personal perception pe based — log feel karte hain ki poor hain, chahe unki actual income thik ho. Society comparison, expectations, psychology sab matter karta hai.

💡 Example

Priya ek software engineer hai ₹70,000/month income ke saath. Lekin uske friends IIT grads hain jo ₹3L kamaate hain. Social media pe unka lifestyle dekhke Priya subjectively poor feel karti hai — even though wo actually poor nahi hai. Ye psychological poverty hai!

😔

Usually Poor

Hamesha poverty line ke neeche. Chronic poverty. Example: Daily wage laborers jo kaam na mile toh bhookhe rehte hain.

🔄

Churning Poor

Poverty line ke upar-neeche aate jaate hain. Example: Seasonal workers — fasal ke time paise hain, baaki time nahi.

🤞

Occasionally Poor

Mostly line ke upar, kabhi kabhi neeche gir jaate hain. Example: Small shopkeeper jiska ek saal mein business fail ho jaata hai.

Poverty Estimation in India

Method: India me poverty measure karte hain kisi ke income ya consumption level dekhke. Agar ye set minimum se kam hai → wo Below Poverty Line (BPL) hai.

Who does it: NITI Aayog ka task force → data NSSO (National Sample Survey Office) se liya jaata hai → MoSPI ke under.

🛒 BPL Ka Matlab Kya?

Agar government ne decide kiya ki ek insaan ko minimum ₹1,000/month chahiye survive karne ke liye — aur Suresh ₹800 mein guzaara karta hai — toh Suresh BPL (Below Poverty Line) hai. Usse government schemes ka fayda milega (ration card, PM Awas Yojana, etc.)

Pre-Independence Estimation

📚 Dadabhai Naoroji – "Poverty and Un-British Rule in India"

India mein poverty line ki sabse pehli estimation Dadabhai Naoroji ne ki.
Estimated: ₹16 to ₹35 per capita per year
India ke National Income ka bhi pehla estimation inhi ne diya.
Used concept of "Prisoner's Menu" — jail me jo basic khana milta hai (flour, rice, dal) — usi ki cost se subsistence calculate kiya.

🧠 Prisoner's Menu Trick

Sochte the: "Ek insaan ko survive karne ke liye at least jail jaisa khana chahiye. Jail mein jo khana milta hai uski cost = minimum poverty line." Kitna brilliant aur practical approach tha!

🏛️ National Planning Committee (1938)

Set up by Subhash Chandra Bose under chairmanship of JL Nehru.
Poverty line estimated: ₹15 to ₹20 per capita per month
Based on minimum standard of living with nutritional requirements included.

🏙️ The Bombay Plan (1944)

Set of proposals by influential business leaders of Bombay for India's development.
Suggested poverty line: ₹75 per capita per year

Post-Independence – Poverty Committees

1971

VM Dandekar & N Rath

Pehla systematic assessment of poverty in India (NSSO data based).
Expenditure-based poverty line.
2250 calories per day — rural aur urban dono ke liye.

🍽️ Example

Unhone socha: "Ek insaan ko din mein minimum 2250 calories chahiye survive karne ke liye. Kitne mein wo calories milti hain — wohi poverty line." Simple aur direct approach!

1979

Alagh Committee (Chairman: YK Alagh)

Rural aur urban ke liye alag alag calorie requirements define kiye.
Rural: 2400 calories → ₹49.09/month
Urban: 2100 calories → ₹56.64/month

🌾 Why Rural = More Calories?

Gaon me log physically zyada kaam karte hain — khet me jotna, bhoj uthana. Isliye rural workers ko zyada calories chahiye (2400 vs 2100 urban). Bahut logical!

1993

Lakdawala Committee

Poverty line defined on basis of household per capita consumption expenditure.
Used CPI-IW (Consumer Price Index – Industrial Workers) and CPI-AL (for Agricultural Labourers).
Suggested: State specific poverty lines banayein (ek size fit all nahi).
Calorie-based calculation continue kiya.

💡 State-Specific Lines Kyun?

Mumbai me ₹1,000 mein sirf ek week ka ration aata hai. Lekin Chhattisgarh ke ek gaon mein ₹1,000 se poora mahina nikal sakta hai. Isliye ek hi poverty line sab jagah apply nahi hoti!

2005 (report 2009)

Tendulkar Committee ⭐ (Most Important)

Set up to address shortcomings of previous methods.
Poverty line based on Purchasing Power Parity = ₹33 per day
Shifted away from calorie-only model — broader approach.
Added private expenditure on health & education.
Replaced URP (Uniform Reference Period) with MRP (Mixed Reference Period):

30 Days Recall

Food aur frequent items ke liye (doodh, sabzi, etc.)

365 Days Recall

Infrequent non-food items ke liye (kapde, footwear, durables)

Poverty Line (2011-12):
🌾 Rural: ₹816 per capita per month
🏙️ Urban: ₹1,000 per capita per month
📊 Overall poverty: 21.9% | Rural: 25.7% | Urban: 13.7%

⚠️ ₹33/Day Controversy

Tendulkar Committee ne ₹33/day urban poverty line set ki. Log bolne lage: "Delhi mein ₹33 mein kya hoga? Ek chai bhi ₹20 ki hai!" Bahut criticism aayi ki ye line bahut neechi hai. Isliye Rangarajan Committee bani.

2012 (report 2014)

Rangarajan Committee

Poverty basket mein 3 components: food items + essential non-food + behaviorally determined non-food items.
Calories ke saath protein aur fat bhi include kiya.
Introduced MMRP (Modified Mixed Reference Period) — weekly, monthly, yearly basis pe compute kiya.

Poverty Line (Recommended):
🌾 Rural: ₹972 per capita per month
🏙️ Urban: ₹1,407 per capita per month

📦 "Behaviorally Determined" Kya Hota Hai?

Kuch cheezein technically zaruri nahi hain par society mein rehne ke liye practically important hain — jaise mobile recharge, school uniform, bus fare. Rangarajan ne kaha: inhe bhi poverty basket mein shamil karo!

Committee / Person	Year	Key Feature	Rural Line	Urban Line
Dadabhai Naoroji	Pre-1947	Earliest estimate; Prisoner's Menu	₹16–35/year
NPC (Nehru)	1938	Nutrition-based minimum living	₹15–20/month
Bombay Plan	1944	Business leaders' proposal	₹75/year
Dandekar & Rath	1971	First systematic, NSSO-based, 2250 cal	—
Alagh Committee	1979	Rural 2400 cal, Urban 2100 cal	₹49.09/mo	₹56.64/mo
Lakdawala Committee	1993	CPI-IW & CPI-AL; state-specific lines	—
Tendulkar Committee ⭐	2005/2009	PPP basis; health & education added; MRP	₹816/mo	₹1,000/mo
Rangarajan Committee	2012/2014	Protein+fat+behavioural; MMRP	₹972/mo	₹1,407/mo

Trends in Poverty Reduction & State-wise Data

407M

Poor in 2004-05 (37.2% BPL)

270M

Poor in 2011-12

0.74%

Yearly decline 1993–2005

2.4%

Yearly decline 2005–2012

📈 Poverty Reduction Accelerated!

2004-2012 me poverty decline ki speed 3x ho gayi (0.74% → 2.4% per year). Is period me MNREGA (2005), Right to Food, PM Gram Sadak Yojana jaise programs launch hue the — inhi ka asar tha!

🔴 Highest Poverty States (2011-12)

1
Chhattisgarh – 39.9%
2
Jharkhand – 37%
3
Bihar – 33.7%

🟢 Lowest Poverty States (2011-12)

1
Goa – 5.09%
2
Kerala – 7.1%

🤔 Kerala Itna Accha Kyun?

Kerala mein literacy, healthcare, women empowerment — sab indicators top pe hain. High remittances (Gulf countries se). Strong social safety net. Isliye despite low industrial growth, poverty bhi low hai. "Kerala Model of Development" globally famous hai!

MPI – Multidimensional Poverty Index & HDI

Global MPI – Kya Hai?

Introduced 2010 by UNDP + OPHI (Oxford Poverty & Human Development Initiative).
Uses 10 indicators across 3 dimensions: Health, Education, Standard of Living.

🏥 Health (2 indicators)

Nutrition
Child Mortality

📚 Education (2 indicators)

Years in schooling
School attendance

🏠 Standard of Living (6)

Cooking fuel, Sanitation
Drinking water, Electricity
Housing, Assets

💡 MPI vs Income Poverty

Ek gaon mein sab log ₹2,000/month kamate hain (above income poverty line). Lekin unke ghar mein na bijli hai, na toilet, na clean water. Income ke hisaab se poor nahi — lekin MPI ke hisaab se definitely multidimensionally poor hain! MPI zyada comprehensive hai.

National MPI (India) – NITI Aayog

Launched November 2021 by NITI Aayog.
Uses 12 indicators (vs 10 in global MPI).
Data source: NFHS (National Family Health Survey)
Multidimensional poverty declined since 2005-06.
24.82 crore people escaped multidimensional poverty in last 9 years.
Uttar Pradesh: Largest number lifted out of poverty (absolute numbers).

Highest MPI (Most Poor)

🔴 Bihar

Lowest MPI (Least Poor)

🟢 Kerala

Human Development Index (HDI)

Created in 1990 by Mahbub ul Haq (Pakistani Economist) + Amartya Sen (Indian Economist).
Amartya Sen: First Indian economist to win Nobel Prize in Economics (1998).

💊 Health

Indicator: Life expectancy at birth

📖 Knowledge

Indicators: Expected years + Mean years of schooling

💰 Standard of Living

Indicator: GNI per capita (PPP $)

🌟 HDI Why Important?

Pehle countries ki progress sirf GDP se napta tha. Mahbub ul Haq aur Amartya Sen ne kaha: "GDP se sirf income pata chalti hai — logon ki life quality nahi!" Isliye HDI banaya — ek holistic measure jo health + education + income sab dekhta hai. Ab UNDP har saal Human Development Report publish karta hai.

HCR, EPI & MVI

📊 Head Count Ratio (HCR)

Also known as: Poverty Headcount Index

Population ka wo percentage jo BPL mein jeeta hai.

Formula

HCR = (No. of Multidimensionally Poor People) ÷ (Total Population)

Example: Agar 100 mein se 22 log BPL hain → HCR = 22%

🧮 Simple Example

Ek village mein 500 log hain. 110 BPL hain. HCR = 110/500 = 22%. Matlab us village mein har 5 mein se 1 se zyada garib hai.

🚢 Export Preparedness Index (EPI)

Publisher: NITI Aayog
Structure: 4 Pillars — Policy (20%), Business Ecosystem (40%), Export Ecosystem (20%), Export Performance (20%)
Measures states' readiness to export goods.

🌍 Multidimensional Vulnerability Index (MVI)

Publisher: UNGA (United Nations General Assembly)
Measures structural vulnerability and lack of resilience across 3 dimensions:
Economic Environmental Social
Focus: Specially for Small Island Developing States (SIDS) aur vulnerable nations.

🌏 MVI ka Use

Bangladesh floods se vulnerable hai. Maldives sea level rise se. Aise deshon ki vulnerability naapne ke liye MVI banaya gaya. India jaisa bada desh kam vulnerable — chota island nation zyada.

Sustainable Development Goals (SDGs)

SDGs se pehle: MDGs (Millennium Development Goals) — target 2015.

2015 mein United Nations ne New York mein SDGs adopt kiye.

Effective from: 1 January 2016 | Target Year: 2030 | 17 Goals, 169 Targets

🚫 No Poverty

🌾 Zero Hunger

💊 Good Health

📖 Quality Education

♀️ Gender Equality

💧 Clean Water

⚡ Clean Energy

💼 Decent Work

🏗️ Industry & Innovation

⚖️ Reduced Inequality

🏙️ Sustainable Cities

♻️ Responsible Consumption

🌍 Climate Action

🐟 Life Below Water

🌳 Life on Land

🕊️ Peace & Justice

🤝 Partnerships

🌟 SDG #1 – No Poverty

SDG ka Goal #1 hai "No Poverty by 2030." India ke liye yeh bahut important hai. PM Modi ne kaha India SDG goals achieve karne mein world leader banega. PM Garib Kalyan Anna Yojana, PM Awas Yojana, Ujjwala Yojana — ye sab SDGs se linked hain!

MPC – Marginal Propensity to Consume & Multiplier

MPC Kya Hota Hai?

Definition: Jab kisi ki income badhti hai toh usme se jo additional income ka consumption pe kharch hota hai — uska proportion MPC hai.

Formula

MPC = ΔC / ΔY

ΔC = Change in Consumption | ΔY = Change in Income | MPC value: 0 to 1

Example: Income ₹10,000 badhi → Spending ₹1,000 badha → MPC = 1000/10000 = 0.1
Matlab: Har extra ₹1 mein se sirf 10 paise kharch kiye, 90 paise bachaye.

👨‍💼 Real Life MPC Example

Ramu (poor labourer): ₹1,000 bonus mila → poore ₹1,000 kharch kar diye! MPC = 1.0 (near to 1)
Shyam (rich businessman): ₹1,00,000 bonus mila → sirf ₹10,000 kharch kiye, baaki invest kiya. MPC = 0.1

Conclusion: Garib logon ka MPC zyada hota hai (unhe survive karne ke liye sab kharchna padta hai). Isliye poor logon ko paisa dena economy mein zyada circulation laata hai!

Autonomous Expenditure & Multiplier

Autonomous Expenditure: Wo spending jo income level ke chahe kuch bhi ho — hoti rehti hai (income pe dependent nahi).
Example: Government infrastructure spending — recession mein bhi hogi.

        C = A + cY

        A = Autonomous (income-independent) consumption

        cY = Income-dependent consumption

        c = MPC  |  Y = Income level

        Savings = 1 − c

        Multiplier = 1 / (1 − c)

📐 Multiplier Example

Agar MPC = 0.8, toh Multiplier = 1/(1-0.8) = 1/0.2 = 5
Matlab: Government ₹100 crore invest kare roads pe → economy mein ₹500 crore ka effect hoga! (Logon ko wages mile → wo kharchein → dukan wale kamayein → wo kharchein...) Yahi hai multiplier effect ka jadoo!

Special Economic Zones (SEZ)

SEZ ke 4 Goals:

① Exports promote karna | ② Foreign investment attract karna | ③ Employment generate karna | ④ Foreign exchange earn karna

📅 Key Dates

SEZ Policy Announced: 2000
SEZ Act Enacted: 2005
Asia's first Export Processing Zone (EPZ): Kandla, Gujarat (1965)

🏭 SEZ Kya Hota Hai?

Ek specially designated area jahan different rules apply hote hain — tax benefits, customs duty waiver, easier regulations. Example: Noida SEZ mein garment factories ko export pe custom duty nahi lagta. Companies yahan aa ke produce karti hain, duniya mein bechti hain. Win-win!

⚠️ Challenge 1: MAT

Minimum Alternate Tax — SEZ developers pe bhi lagaaya gaya, unka attraction kam hua.

💸 Impact

Companies bolne lagi: "Pehle tax-free tha, ab MAT bhi lag raha hai — toh SEZ mein kyun aayein?"

⚠️ Challenge 2: Sunset Clause

Tax holidays (Section 10AA) sirf un units ko jo before April 1, 2020 shuru hue. Baad wali units ko direct tax benefit nahi.

🌅 Sunset Clause Kya?

Jaise "sun set ho gaya" — ek time baad benefits khatam ho jaate hain. 2020 ke baad SEZ setup karne wali companies ko tax holiday nahi mila.

National Infrastructure Pipeline (NIP)

Government initiative for world-class infrastructure + quality of life improvement.
Duration: 2020–2025 (5-year plan)
Total Investment: ₹111 Lakh Crore (₹111 Trillion!)
Funding: Centre 39% + States 39% + Private 22%
Top sectors: Energy (₹25L Cr), Roads (₹20L Cr), Irrigation/Rural (₹16L Cr)

🏗️ NIP ka Poverty Connection

Acchi roads → goods easily milein → prices kam → garibon ko faida. Bijli → industries → jobs. Clean water projects → health improve. Infrastructure development = Direct poverty reduction ka tool!

Inequality Measurement – Lorenz Curve & Gini Coefficient

Lorenz Curve 📈

Ek graphical representation hai income inequality ya wealth distribution ka.
Line of Equality (45° diagonal): Perfect equality — har insaan ki equal income.
Lorenz Curve is line ke neeche hoti hai.
Curve jitni zyada line se dur hogi — inequality utni zyada hogi.

Gini Coefficient 🔢

Lorenz Curve se derived — inequality ko ek number deta hai.

Formula

Gini = A / (A + B)

A = Area between Line of Equality and Lorenz Curve | B = Area below Lorenz Curve

Gini = 0 ✅

Perfect Equality — har insaan ki same income. Theoretical ideal. Koi bhi country achieve nahi karti.

Gini = 1 ❌

Perfect Inequality — ek insaan ke paas sab kuch, baaki sab ke paas kuch nahi. Extreme case.

🌍 Real Life Gini Coefficients

🇳🇴 Norway: ~0.25 (bahut equal) — strong social welfare
🇮🇳 India: ~0.35 (moderate inequality)
🇧🇷 Brazil: ~0.53 (bahut unequal) — historic inequality
🇿🇦 South Africa: ~0.63 (world's most unequal!) — apartheid ka asar

Gini jitna zyada → inequality utni zyada → garib aur garib, amir aur amir!

⚡ Quick Revision – Exam ke liye Key Points

📊 Poverty Types

Absolute = basic needs nahi
Relative = society se kam
Subjective = feel karna

👴 Pre-Independence

Naoroji → Prisoner's Menu
NPC 1938 → Nehru (by Bose)
Bombay Plan 1944 → ₹75/yr

🏛️ Key Committees

Dandekar-Rath 1971 → 2250 cal
Alagh 1979 → R:2400 U:2100 cal
Tendulkar ⭐ → ₹33/day PPP
Rangarajan → ₹972/₹1407

📈 Trends

2004-05: 407M poor (37.2%)
2011-12: 270M poor
Highest: Chhattisgarh 39.9%
Lowest: Goa 5.09%

🌐 MPI & HDI

MPI 2010 → UNDP + OPHI
3 dim: Health, Edu, Std of Living
HDI 1990 → Mahbub + Amartya Sen
Bihar = Highest MPI, Kerala = Lowest

🏭 SEZ & NIP

SEZ Policy: 2000, Act: 2005
Asia's 1st EPZ: Kandla 1965
NIP: 2020-25, ₹111 Lakh Cr

📐 MPC & Multiplier

MPC = ΔC/ΔY (range: 0–1)
Poor ka MPC zyada hota hai
Multiplier = 1/(1–c)

📊 Gini & SDG

Gini 0 = perfect equality
Gini 1 = perfect inequality
SDGs: 2015, 17 Goals, 169 Targets
Target: 2030