28 June, 2024
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Poverty Meaning:
Poverty may be defined as the inability to secure the minimum consumption requirement for life health and efficiency. Poverty in India has been defined as the situation in which an individual unable to earn income sufficient to buy minimum means of subsistence. In other words poverty means fail to meet their basic minimum requirements of life. There are many causes of poverty are underdevelopment, population etc.
Causes for poverty are.
- Under development: It is because of under development of Indian economy the level of her national income and per capita income are low. under development is due to lack of industrialization because there are no investment as there are no savings due to low income of the people. Hence many people are forced to depend on agriculture where they get meager income which is not sufficient to meet desire necessaries.
- Rapid growth of population: Overpopulation is another important cause of the prevailing poverty in the country when the national income is divided among too many people; the per capita income is born to be low. Just to keep the per capita income at the old level 10% of national income must be invested. This shows how difficult it is the level of National income in a country of rapidly growing population.
- Low agricultural productivity: Carrying on cultivation by primitive techniques, small sizes of holdings, insufficient irrigation, and failure of the use of modern agriculture inputs keep agriculture productivity in India at a very low level, the result is low income to the tillers.
- Operation land system: Tenancy system prevails over an extensive area of our agriculture. The tenants are badly exploited by the landlords and they are left with meager income after paying the rents to the landlords.
- Unemployment and under employment: The existence of huge unemployment and under employment leads to dependency. The income earner of the family has the share his income with the unemployed for their survival. Thus unemployment is an important cause of poverty in the country.
- Inequality: Inequality in the distribution of national income has also been a major cause of mass poverty in India when a large chunk of national income is pocketed by the top 5% to 10% of the population the majority of the population are left with left income which are insufficient to meet the needs of minimum consumption.
- Political instability and Corruption: Corruption in government and institutions can divert resources away from public services and development projects, exacerbating poverty. on the other hand Inefficient or ineffective government policies and institutions can fail to address the needs of the poor and hinder economic development. conflict and political instability like War, civil unrest, and political instability can disrupt economies, displace populations, and destroy infrastructure, leading to poverty.
- Globalization and Trade Policies: While globalization can create opportunities, it can also lead to job losses and economic dislocation for certain groups. More over Unfair trade practices and protectionist policies can harm developing economies and limit their growth potential.
Conclusion: Poverty exists in every country in the world. Even in the most developed countries in the world, a small section of people living in poverty.
also read: explain the effects of inflation on distribution.
Tags: BA.LLBCAUSES OF POVERTY DETERMINANTS OF POVERTY FACTORS RESPONSIBLE FOR POVERTY REASONS FOR POVERTY
Category: ECONOMICS4, UNIT-1