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CBSE Class 11 » CBSE Class 11 Study Materials » Economics » Causes of poverty
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Causes of poverty

Poverty is based on how much money a person earns and establishes poverty rates for communities and countries based on income inequality and financially drawn poverty lines.

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Poverty is a complicated issue. There are numerous aspects to it, as well as numerous causes. The most commonly used definition of poverty focuses on economic deprivation. This definition of poverty measures poverty based on how much money a person earns and establishes poverty rates for communities and countries based on income inequality and financially drawn poverty lines.

Poverty becomes relative in this way. In the United States, the poverty line for a family of four is slightly more than $26,000 per year. That amount of money is more than 36 times what a family of four living in absolute poverty in a low-income country is forced to survive on each year.

Many families in the world’s poorest countries struggle to meet their basic needs on less than $1.90 per day. This type of extreme poverty affects nearly 10% of the world’s population.

What is Definition poverty?

The most widely held and understood definition of absolute poverty is defined in economic terms — earning less than $1.90 per day. According to this standard, anyone who lacks sufficient financial resources falls below the poverty line and is unable to meet a basic standard of living. However, being poor is more complicated than simply not having enough money or having a low income.

For decades, the World Bank has studied and measured the global poverty level — its causes and effects on poor people — in order to define it. The world’s understanding of extreme poverty has evolved in the same way that the definition of food security has. The most comprehensive definition of poverty now extends beyond the amount of money a person or family earns. It broadens the traditional economic definition of poverty to encompass all aspects of poverty.

Main Causes of Poverty

  1. Inequality

“Inequality” is a simple, but sometimes deceptive, phrase used to describe the systematic hurdles that prevent some groups of people from having a voice or representation in their communities. To overcome poverty, all groups must be included in decision-making, especially when it comes to having a say in the things that determine your standing in society. Some of these may be evident, while in others, they may be subtle.

  1. Lack of adequate industrialisation

India is a backward state in terms of industrialisation. Industry employs 3% of the entire working population. As a result, industrial backwardness is a key source of poverty.

  1. Rapid Population Increase

Rapid population growth since 1951 is another key element contributing to India’s persistent poverty. India’s population has grown from 36 crores in 1951 to 102.7 crores in 2001, implying that 66 crores individuals have been added to the Indian population in the roughly 50 years since independence.

  1. Inefficient use of Natural Resources:

India is rich in natural resources such as iron, coal, manganese, and mica. It has rivers that run all year and can create hydroelectric power as much as needed. But due to improper planning there is no use of resources in a profitable way.

  1. CHANGE IN CLIMATE

Climate change causes hunger, whether via a lack of water (drought) or an abundance of water (flooding), and its consequences contribute to the poverty cycle in a variety of ways, including disproportionately hurting women, producing refugees, and even influencing violence. Climate change, according to one World Bank estimate, has the potential to force more than 100 million people into poverty over the next decade.

  1. Inadequate Infrastructure: Transportation and communication systems have not been effectively established. Road transportation is insufficient, and the railway is far worse. Agricultural marketing is ineffective due to a lack of efficient development of road and rail transportation. Industries do not receive timely power and raw supplies, and completed items are not efficiently marketed.

Hunger definition

Hunger is a physically unpleasant or painful sensation caused by insufficient dietary energy consumption. It becomes chronic when a person does not consume enough calories (dietary energy) on a consistent basis to live a normal, active, and healthy life. For decades, the FAO has used the Prevalence of Undernourishment indicator to estimate the global extent of hunger; thus, “hunger” may also be referred to as “undernourishment.”

Burning issues hunger and poverty in India

With a population of over 1.3 billion people, India has seen tremendous growth in the last two decades. GDP has increased 4.5 times, while per capita consumption has increased three times. Similarly, food grain production has nearly doubled. Despite phenomenal industrial and economic growth, and despite producing enough food to feed its population, India is unable to provide food to a large number of people, particularly women and children.

In the recently released Global Hunger Index (GHI), India has slipped to 101st place out of 116 countries, trailing its South Asian neighbours. The government has slammed the report’s methodology as “unscientific.”

With a population of over 1.3 billion people, India has seen tremendous growth in the last two decades. GDP has increased 4.5 times, while per capita consumption has increased three times. Similarly, food grain production has nearly doubled. Despite phenomenal industrial and economic growth, and despite producing enough food to feed its population, India is unable to provide food to a large number of people, particularly women and children.

National child hunger facts 

One in every six children in America does not know where they will get their next meal.

  • In the United States, nearly 13 million children are hungry.
  • Five out of every six children who rely on free or reduced-price school meals do not receive free meals during the summer.
  • There are only 87 breakfast sites and 36 summer food programmes for every 100 school lunch programmes.

Conclusion 

Poverty is based on how much money a person earns and establishes poverty rates for communities and countries based on income inequality and financially drawn poverty lines. This definition of poverty measures poverty based on how much money a person earns and establishes poverty rates for communities and countries based on income inequality and financially drawn poverty lines. For decades, the World Bank has studied and measured the global poverty level, its causes and effects on poor people in order to define it. What are the underlying causes of hunger and poverty? Some of the fundamental causes of hunger are societal in nature, such as: Poverty occurs when people lack the resources to meet their basic needs, such as food, water, and shelter.

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What is economic planning, and what are its primary goals?

Ans : The primary goal of planning is to exert control over an economy’s private sector. Cont...Read full

What are the 5 stages of economic development?

Ans : Unlike the phases of economic growth, which were described by economist Walt Rostow in 1960 a...Read full

What are the three economic phases?

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What exactly is a recession cycle?

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Ans : The primary goal of planning is to exert control over an economy’s private sector. Controls are applied over restricted economic resources. Economic planning refers to the sensible arrangement of a country’s economic resources for a certain aim.

Ans : Unlike the phases of economic growth, which were described by economist Walt Rostow in 1960 as five essential stages: traditional society, preconditions for take-off, take-off, drive to maturity, and era of high mass consumption, the stages of economic development have no precise meaning.

Ans : Economic cycles are divided into four separate stages: growth, peak, contraction, and trough. An expansion is defined by increased employment, economic growth, and price pressure.

Ans : A recession is a type of vicious cycle, with cascading decreases in output, employment, income, and sales that feed back into another drop in output, swiftly spreading from industry to industry and region to region.

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