Book No.18 (Sociology)

Book Name Society in India (Ram Ahuja)

What’s Inside the Chapter? (After Subscription)

1. INDIAN ECONOMY: POVERTY AND INFLATION

1.1. Concept of Poverty

1.2. Manifestation of Measurement of Poverty

1.3. Incidence and Magnitude of Poverty in India

2. MARKET ECONOMY AND LIBERALISATION POLICY: ITS SOCIAL CONSEQUENCES

2.1. Policy of Mixed Economy

2.2. Liberalisation Policy. Its Achievements

3. JAJMANI SYSTEM

3.1. The Concept

3.2. Jajmanı Relations

3.3. Functions and Roles

3.4. Norms and Values

3.5. Jajmani System: An Exploitative System

3.6. Changes in Jajmani System

4. ECONOMIC DEVELOPMENT: ITS DETERMINANT’S AND SOCIAL CONSEQUENCES

4.1. What is Economic Development

4.2. Determinants of and Barriers to Economic Development

4.3. Obstacles to Economic Development in India

4.4. Stages in Economic Development

4.5. Does Social Change Precede or Follow Economic Development?

4.6. Sociological Problems of Economic Development

4.7. Economic Development. Planning and Social Change in India

5. ECONOMIC INEQUALITY

5.1. Levels

5.2. Causes

5.3. The Subsidies

Note: The first chapter of every book is free.

Access this chapter with any subscription below:

  • Half Yearly Plan (All Subject)
  • Annual Plan (All Subject)
  • Sociology (Single Subject)
  • CUET PG + Sociology
LANGUAGE

Economic System

Ram Ahuja (Sociology)

Chapter – 5

Picture of Harshit Sharma
Harshit Sharma

Alumnus (BHU)

Follow
Table of Contents

INDIAN ECONOMY: POVERTY AND INFLATION

  • Poverty and inflation are of first rank importance in the Indian economy.
  • In 1993-94, 320 million persons (35.97% of the population) were living below the poverty line: 37.27% in rural areasand 32.36% in urban areas.
  • About 5% of the population is unemployed.
  • 24 paise of every rupee earned by the government goes into paying interest on debt.
  • 107% of India’s GDP is spent by the central and state governments on non-merit subsidies (e.g., water supply, higher education, irrigation, electricity).
  • These figures present a shocking image of poverty, income, and wealth in India.
  • Key debates include:
    • How much of the nation’s wealth and income should be spent on poverty and unemployment alleviation?
    • How can economic development be accelerated?
    • How can economic inequalities be removed?
    • How much should be spent on public services and welfare schemes?
    • Should welfare schemes be a minimal safety-net for the poor or a comprehensive system of security for all?
    • Are social inequalities the result of economic inequalities or differential income distribution?
  • Poverty and inequality are not the same.
  • Example: A person with an income of Rs 15,000 per annum with a wife and child is not as poor as someone earning Rs 25,000 per annum with a family of 5-6 children.
  • Income refers to the flow of economic resources, while wealth is the total stock of economic resources.
    • Examples of income: salary, wages, rent, interest, pension, income from self-employment, dividends from company shares.
    • Examples of wealth: immovable property, gold, shares, bonds.
  • Understanding inequality and poverty requires considering the concepts of poverty, income, wealth, and inequality.

Concept of Poverty

  • Poverty can be defined as either absolute or relative.
  • Absolute poverty is “insufficiency in basic necessities of existence,” meaning the lack of adequate food, clothing, or shelter.
  • The poverty line describes poverty in subsistence terms, i.e., the minimum necessary for maintaining physical health.
  • Henry Bernstein (1992) identified four dimensions of poverty:
    • Lack of livelihood strategies
    • Inaccessibility to resources (money, land, credit)
    • Feeling of insecurity and frustration
    • Inability to maintain social relations due to lack of resources.
  • Three precepts used to define poverty:
    1. The amount of money required to subsist.
    2. Living below a minimum subsistence level and living standard at a given time and place.
    3. The comparative state of well-being of a few and the deprivation of the majority.
  • The first view defines poverty in terms of a minimum income required for subsistence, focusing on physiological needs like survival, safety, and security.
    • Physiological needs include food, nutrition, shelter, and health care.
    • The poverty line is drawn based on the minimal nutritional standards of calorie intake.
    • In India, the poverty line is based on daily per capita calorie intake: 2,400 calories for rural and 2,100 calories for urban areas.
    • In 1993-94, a rural person needed Rs 229 per month and an urban person needed Rs 264 per month to meet basic needs.
    • The concept of minimum subsistence level differs from minimum adequacy level and minimum comfort level.
  • In the United States, in 1963, a family of four earning $2,500 was considered below the minimum subsistence level.
  • In 1993-94, 18.1% of India’s population was below the minimum subsistence level (Rs 264 per month).
  • The poor can be classified into four sub-groups:
    1. Destitutes (spending < Rs 137/month).
    2. Extremely poor (spending < Rs 161/month).
    3. Very poor (spending < Rs 201/month).
    4. Poor (spending < Rs 246/month).
  • The second view maintains that poverty involves the lack of material goods necessary for physical survival, health, and a minimum subsistence level.
    • This includes a minimum amount of food, housing, clothing, and health care.
    • At the 1993-94 price level, a person required Rs 259 per month in rural areas and Rs 294 in urban areas.
  • Gross and Miller (1946) linked poverty to income, assets/material possessions, and the availability of services.
  • However, in the U.S., many families below the poverty line had assets like telephones, TVs, and washing machines.
  • Poverty cannot be solely linked to income or material possessions, as prices and inflation affect poverty.
  • The third view defines poverty as a condition of falling below the minimum standards of subsistence for a society.
    • It emphasizes the absence of enough money to secure life’s necessities.
    • Inequality plays a crucial role in defining poverty, as it measures the difference between those at the bottom and the rest of society.
  • Miller and Roby (1970) considered poverty as inequality, where absolute poverty can be reduced by putting money in the hands of the poor, but inequality persists.
  • Sociologically, poverty is linked to deprivation and the inability to access basic needs such as food, health, housing, education, and recreation.
  • Rein (1968) identified three elements of poverty:
    • Subsistence (resources to maintain health and physical efficiency).
    • Inequality (comparing those at the bottom of income levels with the more privileged).
    • Externality (social consequences of poverty for the rest of society).
  • Social consequences of poverty include living in poor neighborhoods, lack of education, low-paying jobs, and poor health, creating a vicious circle of poverty.
  • Thomas Gladwin (1967) emphasized the importance of inequality or the social concept of poverty.

Manifestation of Measurement of Poverty

  • Malnutrition: Below a limit of 2,100 to 2,400 calories per day.
  • Low consumption expenditure: Below Rs 259 per person per month at 1993-94 price level.
  • Low income: Below Rs 520 per person per month at 1993-94 price level.
  • Chronic illness or poor health.
  • Illiteracy.
  • Unemployment and/or underemployment.
  • Unsanitary housing conditions.
  • Poverty of a society expressed in terms of:
    • Poor resources.
    • Low national income.
    • Low per capita income.
    • High disparity in income distribution.
    • Weak defence.
  • Poverty-linked characteristics of households that increase the risk of being poor:
    • Absence of a full-time wage-earner in the household.
    • Households where men are above 60 years age.
    • Households headed by a female.
    • Households with more than six children of less than 18 years of age.
    • Households whose heads are living on daily wages.
    • Households whose members have less than primary education.
    • Households with members without work experience.
    • Households having members only with part-time employment

Membership Required

You must be a member to access this content.

View Membership Levels

Already a member? Log in here

You cannot copy content of this page

error: Content is protected !!
Scroll to Top