(Sample Material) IAS PRE GS Online Coaching : Economic & Social Development - Poverty and Inequality Concepts, Data Policy and Analysis

Subject: Economic & Social Development
Topic: Poverty and Inequality Concepts, Data Policy and Analysis

Ques. 1 : Write a short notes on Poverty.

Ans. Poverty is deprivation of basic needs that determine the quality of life-food clothing, shelter, safe drinking water etc. It also includes the deprivation of opportunities to health, education, skills, employment etc. Many different factors have been cited to explain why poverty occurs. No single explanation has gained universal acceptance. The factors responsible for poverty include:

• Historical factors, for example imperialism and colonialism.

• Overpopulation.

• Growth is not fast enough to eradicate poverty.

• Models of growth may be unsuitable for poverty alleviation. For example, capital-intense growth in a labour surplus country.

• Poverty itself, preventing investment and development etc.

• Widespread reliance on traditional methods of agriculture. About 60% of the population depends on agriculture whereas the contribution of agriculture to the GDP is 20%.While services and industry have grown at double digit figures, agriculture growth rate has dropped from 4.8% to 2%.

• Geographic factors, for example lack of fertile land and access to natural resources.

• Anti-poverty schemes not being effective due to institutional and other inadequacies

• War, including civil-war, genocide.

• Lack of education and skills.

• gender discrimination

• Matthew effect— the phenomenon, widely observed across advanced welfare states, that the middle classes tend to be the main beneficiaries of social benefits and services, even if these are primarily targeted at the poor. Matthew effect refers to those already having an asset base benefiting from it while those without it continue to be denied the same.

Types of Poverty

Human Poverty is the lack of essential human capabilities literacy and nutrition.

Income Poverty: The lack of sufficient income to meet minimum consumption needs. The World Bank defines extreme poverty as living on less than one US$ per day, and moderate Poverty as less than $2 a day.