Poverty definition: When a person is unable to get the minimum necessities of life this situation is known as poverty. Poverty means that the income level from employment is so low or no employment that basic human needs are not met. Poverty-stricken people can go without proper housing, clean water, healthy food, and medical attention.

Progress has been made in measuring and analyzing poverty, the World Bank Organisation is working to identify other indicators and dimensions of poverty. This includes identifying social indicators to track education, health, access to services, social exclusion, and vulnerability.

What is Poverty?

Poverty is defined as a state or circumstance in which an individual or a group lacks financial means and necessities for a basic level of living. It can also be defined as a situation in which one’s earnings from work are insufficient to meet fundamental human requirements.

Poverty, according to the World Bank, is a severe lack of well-being that has various aspects. Low earnings and the inability to obtain the essential commodities and services required for a dignified existence are examples. Poverty examples also includes poor health and education, a lack of access to safe drinking water and sanitation, a lack of physical security, a lack of voice, and a lack of capacity and chance to improve one’s life. In 2011, 21.9% of India’s population was living below the national poverty threshold. 

Check-out: Poverty in India

Understanding Poverty

Poverty is both an individual as well as a broader social problem. On the individual level, ends are not met which can lead to physical and mental issues. At the societal level, high poverty can damper to overall economic growth and be associated with problems like unemployment, crime, urban decay, lack of education, and detrimental health.

Important points related to poverty are:

• The two main dimensions of Poverty are Hunger and lack of shelter.
• Poverty is a condition where one is barely having basic necessities of life. When parents are not able to send their children to school or a situation where individuals or families can’t afford medical facilities
• Lack of clean water and sanitation facilities is also one of the conditions of poverty.
• Lack of regular job to earn or live a regular life with basic necessities of life.

Check-out: Causes for Widespread Poverty in India

Poverty as a phenomenon is as old as human existence, its significance has evolved over time. Under the traditional mode of economic production, widespread poverty had been accepted as inevitable. This meant, the total output of goods and services, even if equally divided, would still be insufficient for the entire population to lead a comfortable life. However, this was proved wrong by industrialization, as industrialized nations have outputs sufficient to raise the entire population to a comfortable level.

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Aspects of Poverty

Certain important aspects of poverty are as given below:

Global Poverty

Increased level of production has led to reduction in the cost of goods, making them more affordable, while certain advancements in agriculture has increase crop yield in case of developed countries, which has led to reduction in poverty in certain developed countries.

International poverty line refers to the monetary line under which each individual is considered to be living in poverty.

It is estimated that 40 percent of the population of the world lives in poverty, with United States being highest among developed nations.

Poverty and Children

Poverty affects children tremendously. Childrens who grow up in poverty suffers from health issues and increase chances of low birth weight, leading to physical as well mental disabilities. Children suffering from poverty tend to miss schools, lack healthcare facilities and nourishment.

Check-out: Population and Poverty

Types of Poverty

There are two major kinds of Poverty, that are:

1. Cyclic Poverty

It refers to poverty that can be widespread throughout the population, but its occurrence is of limited duration. In non-industrialized countries, the inability to meet basic needs rests mainly on temporary food shortages caused by natural phenomena. Prices can be hiked because of scarcities of food, which brought misery.

2. Collective Poverty

Collective poverty involves relative permanent insufficiency of means for secure basic needs. Both generalized and concentrated collective poverty can be transmitted from one generation to the next. Collective poverty usually is related to Economic inequality.

3. Concentrated Collective Poverty

In many developed industrial countries, particular demographic groups are more vulnerable to long-term poverty. Their chief economic traits include unemployment, underemployment, unskilled occupation, and job instability.

Check-out: Economic Inequality

Causes of Poverty

India’s population has been continuously increasing throughout the years. It has increased at a pace of 2.2 percent per year for the past 45 years, implying that around 17 million people are added to the country’s population each year. This has a significant impact on the demand for consumer products. The following important reasons are mostly responsible for poverty:

Low Agricultural Productivity

The agriculture sector’s low productivity is a key source of poverty. Low productivity can be caused by a variety of factors. 

It is mostly due to fragmented and subdivided landholdings, a lack of cash, ignorance about modern farming technology, the use of conventional farming practices, loss during storage, and other factors. 

Inadequate Utilization of resources

The country suffers from underemployment and hidden unemployment, notably in the agricultural sector. Low agricultural productivity and a drop in living standards have ensued as a result of this.

Economic Development at a Slow Rate

India’s Economic inequality has been slow, particularly in the first 40 years of independence before the LPG reforms in 1991.

Check-out: Role of Government in Reducing Poverty

Continuous Price hike

The country’s price increases have been consistent, adding to the burden carried by the poor. Although a few people have profited, the lower-income groups have suffered as a result, and are unable to meet even their most basic needs. 

• Unemployment: It is another element that contributes to poverty in India. As the world’s population grows, so does the number of people looking for work. However, the increase in possibilities is insufficient to meet the demand for work.
• Social Issues: In addition to Economic inequality, social factors obstruct India’s poverty eradication efforts. The laws of inheritance, the caste system, and certain customs, to name a few, are all obstacles in this respect.

Read: Poverty Alleviation Programmes in India

How to reduce Poverty?

Poverty can be reduced with the following steps:

1. Shelters for construction of homes for most needed ones.
2. Educating farmers for production of more foods.
3. Access to free and clean drinking water.
4. Building schools for educating the disadvantaged groups.

Which Countries have Highest Poverty Rates?

The highest poverty rates can be found in countries like South Sudan, Madagascar, Malawi and Niger. According to the World Bank PovcalNet database, below are the countries with the highest poverty rates: