UPSC Essentials | Society and Social Justice — Poverty and associated issues (Part 1)

Relevance of the topic: The International Day for the Eradication of Poverty is celebrated annually on October 17. According to un.org, this year’s theme, ‘Decent Work and Social Protection: Putting dignity in practice for all’ draws on first-hand testimonials showing that those trapped in extreme poverty often work long, grueling hours in dangerous, unregulated conditions but still cannot earn enough income to adequately support themselves and their families. It is an important theme in GS I (Society), GS II, GS III, Prelims and personality test. Aspirants will find it relevant for Essays as well.

Manas: How should we understand the concept of Poverty?

Pranay Aggarwal: The concept of poverty is multifaceted and can be understood as the state of lacking
essential resources and capabilities necessary for a decent standard of living and well-being.

According to the World Bank, poverty is “pronounced deprivation in well-being”. The poor are those who do not have enough income or consumption to put them above some adequate minimum threshold. It is not only about the absence of financial resources but also the deprivation of various dimensions of life. To comprehend poverty fully, we need to consider two critical aspects:

1. Poverty ‘of what’: This aspect refers to the specific deprivations and lacks that individuals or households may experience. It includes insufficiency in income, but also extends to the absence of basic necessities such as food,
shelter, clean water, healthcare, education, and access to social services. Poverty ‘of what’ encompasses the tangible and intangible aspects of well-being that are crucial for a dignified and fulfilling life.

2. Poverty ‘between whom’: This dimension highlights the comparison and relative deprivation among different groups in society. Poverty is not an isolated condition; it’s a social phenomenon that is often measured in relative terms. It involves disparities in access to resources and opportunities between various segments of the population. These segments could be based on factors like income, gender, age, ethnicity, or region. Poverty ‘between whom’ emphasises that poverty is not only an individual predicament but also a societal issue, rooted in social, economic, and political structures.

Understanding poverty as ‘poverty of what’ and ‘poverty between whom’ helps policymakers and researchers address the complexities of poverty and design more effective interventions to alleviate it.

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It highlights the need for not only income redistribution but also equitable access to essential services and opportunities, while considering the relative disparities that exist in society.

Manas: What causes poverty? A past year’s question of the UPSC asked to critically examine whether a growing population is the cause of poverty or poverty is the main
cause of population increase in India. So, if you can explain what is the link between poverty and population growth?

Pranay Aggarwal: The causes of poverty are multifaceted and interrelated, making it a complex and nuanced issue. Poverty can be attributed to a combination of structural, economic, and social factors, and its causes can vary across different regions and time periods:

1. Structural Factors: These include historical inequalities, social discrimination, and political factors. In India, a legacy of colonial rule led to an overall impoverishment of the people and also left a stark divide in access to resources and opportunities. Discrimination based on caste, ethnicity, and gender has perpetuated poverty among marginalised communities.

2. Economic Factors: Economic issues are significant contributors to poverty. Low agricultural productivity, limited access to credit and markets, and unequal distribution of wealth and income can trap individuals and communities in poverty. A lack of industrial and employment opportunities in certain regions exacerbates the issue.

3. Social Factors: Social factors, such as limited access to education and healthcare, can perpetuate poverty. A lack of quality education and healthcare services significantly limits an individual’s potential for economic mobility.

Population Growth and Poverty:

To address the specific question regarding the relationship between population growth and poverty in the context of India, it is important to provide a comprehensive response. While it is true that rapid population growth can strain resources and services, leading to increased poverty in some areas, it’s overly simplistic to argue that population growth is the sole cause of poverty. There are several other factors, as outlined above. Moreover, poverty can also lead to high fertility rates, as families in impoverished conditions may have more children as a form of social security.

It is important to critically examine separately in case of each nation; whether population growth is a cause of poverty or whether poverty is the main driver of population increase. In the context of India; the relationship is bidirectional, and while high population growth strains our national resources, it is often driven by poverty, lack of access to family planning services, and limited education. Clearly, the poorer sections of the society have higher fertility rate and contribute to population growth.

To address both poverty and population growth, a comprehensive approach is necessary. This includes investing in education, healthcare, and job creation, ensuring equitable distribution of resources, and providing family planning services. A multi-pronged strategy that targets the root causes of both poverty and high population growth is essential for sustainable development.

Manas: How is poverty linked to inequality and hunger?

Pranay Aggarwal: Poverty and inequality are closely intertwined, and their connection can be understood through the lens of inequality ‘of what’ and ‘between whom’:

1. Inequality ‘of what’: This aspect refers to disparities in the distribution of various resources and opportunities in society. Poverty is often a consequence of inequality of access to certain resources. Poverty relates to the unequal distribution of essential resources such as income, education, healthcare, clean water, and adequate housing. When certain segments of the population have limited access to these resources, it leads to poverty among those individuals or groups. For example, if income and employment opportunities are distributed unequally, it results in economic poverty for some, even if they have the potential to escape poverty with fair access to resources.

2. Inequality ‘between whom’: This dimension focuses on the disparities among different groups within a society. It encompasses various forms of inequality, including economic, social, gender, and racial disparities. When poverty is examined in the context of inequality between social groups, it becomes evident that some groups, such as women, minorities, and marginalized communities like tribals and Dalits, are disproportionately affected by poverty. This type of inequality underscores the idea that poverty is not evenly distributed, and some groups experience more severe poverty than others. As a case in point, consider that five out of six multidimensional poor people in India are from lower tribes or castes, according to a 2021 analysis on global multidimensional poverty by the United Nations Development Programme.

The link between poverty and inequality is a two-way relationship. Poverty is both a cause and a consequence of inequality. For instance, when a particular group faces discrimination in education or employment, it can lead to their economic impoverishment, perpetuating inequality of access to opporunities and resources.

Conversely, when individuals or communities are impoverished, it can further entrench inequalities between social groups, as they may lack the resources and opportunities to escape their disadvantaged status. To address poverty effectively, it is crucial to tackle both dimensions of inequality. Policies and interventions aimed at reducing poverty should be designed to address the root causes of inequality, whether they relate to access to education, employment, healthcare, or social inclusion. Reducing inequality of access and inequality between social groups is an essential step in the fight against poverty, as it promotes a more equitable distribution of resources and opportunities, ultimately benefiting society as a whole.

Poverty and hunger are intimately linked, and this connection can be explained through several key factors:

1. Income and Resource Scarcity: Poverty results in insufficient income to cover basic needs, including food. People living in poverty struggle to afford an adequate and nutritious diet, which can lead to hunger. Limited financial resources can force individuals to prioritise other essential expenses — such as shelter and healthcare — over food.

2. Access to Food: Poverty can limit access to food in multiple ways. Those in poverty may live in areas with limited access to grocery stores or fresh produce, which are referred to as ‘food deserts’. In addition, they may lack reliable transportation to reach food sources. Inadequate infrastructure and distribution systems can further impede access to affordable and nutritious food. The public distribution system tries to address accessibility issues; but bottlenecks remain. For instance, a Lokniti-CSDS survey found that 16 per cent of the urban poor households in Delhi were denied ration due to the lack of identity proof documents.

3. Underemployment and Unemployment: Poverty can result from underemployment or unemployment, which directly affects an individual’s or a family’s ability to afford food. When people do not have stable jobs with
sufficient income, they typically face food insecurity, which is not having reliable access to enough nutritious food.

4. Healthcare and Nutrition: Poverty can lead to poor health outcomes due to the lack of access to quality healthcare. Health issues can further exacerbate hunger, as individuals with medical conditions may require specific diets or treatments, which they cannot afford.

5. Child Hunger: Poverty can have severe consequences for children. Malnutrition due to a lack of food can result in stunted growth, cognitive deficits, and overall poor development. Child hunger perpetuates a cycle of poverty because poorly nourished children are less likely to perform well in school, limiting their future economic prospects.

6. Global Perspective: On a global scale, poverty in developing countries is closely tied to hunger. Unequal distribution of resources, lack of access to education, and economic disparities contribute to food insecurity and hunger. Many impoverished regions struggle to produce or import enough food to meet the needs of their populations.

To address the link between poverty and hunger, it’s essential to implement strategies that not only alleviate poverty but also focus on improving food security.

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These strategies include social safety nets, employment opportunities, access to education and healthcare, and policies that promote sustainable agriculture and food distribution. Reducing poverty and hunger is a crucial goal for both national and international development, as it contributes to improved overall well-being and human development.

Manas: How do we measure poverty and inequality?

Pranay Aggarwal: Measuring poverty and inequality involves using various indicators and methodologies to assess the distribution of income, resources, and well-being among a population. Let’s understand  some common methods for measuring poverty and inequality:

Measuring Poverty:

1. Income-Based Approaches: Income is a widely used indicator for measuring poverty. The most common measure is the poverty line, which represents the income level below which individuals or households are considered to be in poverty. Poverty lines can be absolute (a fixed income threshold) or relative (based on a percentage of the median income). In India, the official poverty line for 2011-12 was set at per capita daily consumption expenditure of Rs 32 and Rs 26 for urban and rural areas respectively, which was criticised as too low. In contrast, the World Bank sets the international poverty line much higher, at USD 2.15 per person per day.

2. Human Development Index (HDI): Developed by the United Nations, the HDI incorporates life expectancy, education, and per capita income. It offers a more holistic view of well-being and development.

3. Multidimensional Poverty Index (MPI): This is one of the most popular poverty measurement indices nowadays. The MPI was developed by UNDP and Oxford Poverty and Human Development Initiative in 2010 following increased criticism of monetary and consumption based poverty measures, and seeking to capture the deprivations in non-monetary factors that contribute towards well-being. This approach considers multiple dimensions of poverty, including income, health, education, and living standards. The MPI assesses deprivations across various indicators and provides a comprehensive view of poverty. National MPI was developed for India by NITI Aayog in 2021 and comprises of three equally weighted dimensions – Health, Education, and Standard of living. These three dimensions are represented by 12 indicators namely nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing,
assets, and bank accounts. As per NITI Aayog’s 2023 report, 14.96 per cent Indians were multidimensionally poor in 2019-2021.

Measuring Inequality:

1. Gini Coefficient: The Gini coefficient is a commonly used measure of income inequality. It ranges from 0 (perfect equality) to 1 (perfect inequality). A higher Gini coefficient indicates greater income inequality.

2. Lorenz Curve: The Lorenz curve is a graphical representation of income distribution. It helps visualise how income is distributed across different population groups.

3. Theil Index: This index considers both within-group and between-group inequality. It provides a more nuanced understanding of the sources of inequality in a given population.

4. Palma Ratio: The Palma ratio is a measure of income inequality that focuses on the income share of the richest 10 per cent compared to the poorest 40 per cent of the population. It helps highlight the disparities between the rich and the poor.

Measuring poverty and inequality is essential for policymakers and researchers to identify disparities and assess the effectiveness of poverty reduction programs. Different measures can provide complementary insights, and the choice of method often depends on the specific context and objectives. Combining various measures allows for a more comprehensive understanding of the challenges related to poverty and inequality and informs targeted policy interventions.

In the upcoming parts on poverty we shall focus on questions such as:

What is the pain of poverty that the poor feel?

What have been the anti-poverty strategies that India has applied so far?

Who are ‘urban’ and ‘rural’ poor?

Some case studies and success stories.

and many more points to ponder…

Previous topics on Society and Social Justice:

UPSC Essentials: Society & Social Justice | Population and associated issues (Part 1)

UPSC Essentials: Society & Social Justice | Population and associated issues (Part 2)

UPSC Essentials| Society & Social Justice — Urbanisation and associated issues (Part 1)

UPSC Essentials | Society & Social Justice : Urbanisation and associated issues (Part 2)

UPSC Essentials | Society & Social Justice : Urbanisation and associated issues (Part 3)

UPSC Essentials | Society & Social Justice : Literacy and associated issues (Part 1)

UPSC Essentials | Society & Social Justice : Literacy and associated issues (Part 2)

UPSC Essentials | Society & Social Justice : Literacy and associated issues (Part 3)

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