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WHAT IS POVERTY
Meaning of Poverty Poverty is a multidimensional concept and it has been defined in many ways: Deprivation in income, illiteracy, malnutrition, mortality, morbidity, access to fresh water and sanitation, vulnerability to economic shocks, less or no assets, etc. Poverty is inability to get the minimum consumption requirements in terms of food, clothing, housing, education and health. Income deprivation is linked in many cases to other forms of deprivation, but do not always move together with others.
Absolute poverty Condition where household income is insufficient to afford basic necessities of life. (food, shelter, clothing) Relative poverty When households receive 50% less income than average median incomes. Criteria not changed by economic growth Criteria will change with economic growth
Headcount Ratio The most common standard indicator is the incidence of poverty (also called Poverty rate or headcount rate). This describes the percentage of the population whose per capita incomes are below the poverty line, that is, the population that cannot afford to buy a basic basket of items. In many instances, a different poverty line-a much more austere one that generally only includes food items-is applied to derive the extreme poverty rate.
Gini Coefficient e Ration of Area above and below Lorenz curvee e Gini coefficient: A/B 0= Complete equality; All have same income #1-Complete inequality 100% Cumulative share of people from lowest to highest incomes
. Sen index, sometimes referred to , is related to poverty gap index (PGI).It is calculated as follows: Where H is the headcount ratio and Gz is the income Gini coefficient of only the people below the poverty line.
Poverty gap index Poverty gap index is a measure of the intensity of poverty. It is defined as the average poverty gap in the population as a proportion of the poverty line * The poverty gap index is an improvement over the poverty measure headcount ratio which simply counts all the people below a poverty line, in a given population, and considers them equally poor. Poverty gap index estimates the depth of poverty by considering how far, on the average, the poor are from that poverty line
Differences in terms of Expenditure per day Sureshtendulkar Committee Rangarajan committee 2009 Year Rural Expenditure 27/day Urban Expenditure 33/day Total no. of poor ppl269 llion % Poverty (2009-10) Rural (33.8%), Urban 2013 32/day 47/day 363 million Rural (39.6%), Urban (35.1% (20.9%- Total (29.8%) ) Total (38.2%) % Poverty (2010-11) Rural (25.7%), Urban (13.7%- Rural (30.9%). Urban (26.4% > Total (21.9%) ) Total (20.5%)
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