Class 12 Economics Project Draft PDF 2
Class 12 Economics Project Draft PDF 2
• What is poverty
• Various form of poverty
• Urban vs rural poverty and statistics
Popularity dynamics india
i. Gdp consumption over time
ii. Livelihood and employment
iii. Poverty estimate
iv. Literacy levels
v. Net attendance
• Effects of poverty on
children
women
education
socity
economy
• Causes of poverty
• Measures to remove poverty
• Objectives of reduction in poverty
• Anti-poverty measures
• Environmental issue
• 3 case studies
. "Addressing Poverty in Rural India: A Case Study of the
National Rural Employment Guarantee Act (NREGA)”
There are various definitions and measures of poverty, but they often fall into two
main categories:
Economic Poverty
Economic poverty refers to the lack of financial resources or income needed to meet
basic human needs such as food, shelter, and clothing. This form of poverty is often
quantified by income levels or economic indicators. It manifests in several ways:
Economic poverty can have ripple effects, impacting access to other resources like
education, healthcare, and social networks.
Social Poverty
Social poverty involves limited or weak social ties and networks, leading to social
isolation and marginalization. This form of poverty is characterized by:
Educational Poverty
Healthcare Poverty
Healthcare poverty can lead to a lower quality of life and hinder one's ability to work
and participate fully in society.
URBAN VS RURAL: Poverty ratio 32.75% in rural
areas against 8.81% in urban: NITI report
“India lives in villages” were the golden words of Mahatma Gandhi many decades
ago. Ironically after almost 50 years the data does not seem to disagree. Today a
majority of the Indian population still live in the villages. Though there is substantial
migration from rural to urban areas in India, still almost 68% of India continues
to live in rural areas.
The socio-economic census data (2011) released very recently said that almost 73% of
the households were in rural areas. On the contrary, India’s vision today is highly
urban centric. Cities are tipped to be the catalysts of growth in the future. One fears
the decay of villages and therefore there is a need to visit the existing ground
realities. This piece looks at various indicators of socio-economic progress in India
from the rural-urban perspective.
The GDP Composition over time
It is noted that the agriculture and allied services contribution to the GDP of the
nation has reduced considerably from 51.88% in 1950 to 13.94% in 2013. The World
Bank data on value added by agriculture (% of GDP) data does not seem to disagree.
From a 42.56 in 1960 it has dropped to a meager 16.95 in 2014. Given that almost
70% of the population lives in rural areas and about 50% of the overall labour force
is still dependant on agriculture, this situation is definitely not sustainable.
Rural Livelihood & Employment
A deeper look at the Socio-Economic Census (2011) data regarding rural livelihood
and employment is scary. The chart below summarises some of the major findings
of the SECC 2011. Almost three fourths of the rural households live with a monthly
income of less than Rs 5000. More than half the rural households do not own land
and more than half of them are casual labour.
Poverty Estimates
The chart below summarises the poverty situation in India. Though poverty has
been reducing over time, the rate of poverty reduction in urban areas has been
higher than rural areas. Also today, nearly 26% of rural India is poor, compared to a
meagre 13.7% in urban areas. The Rangarajan Committee estimates are also
indicative of the fact that rural poverty is higher than urban and stands at
approximately 31% in 2011-12.
Literacy Levels
A look at the literacy levels in India over last 3 decades from the same rural urban
lens gives us more or less similar numbers. Rural literacy rate is much lower than
the urban literacy rate. The point to be noted is the gender disparity in this area,
where the urban female literacy rate is almost higher by 20% than the rural female.
Rural India lags behind Urban India in all the indicators; Infant Mortality
Rate, Percentage of Anemic Population, Various Health Indicators and Access to
Basic Services (as of 2006).
Effects of poverty (2-3 point each): Effects of Poverty on Children
Poverty has significant and often long-lasting effects on children, shaping their health, education,
and overall well-being. Here are some key impacts:
• Nutritional Deficiencies: Children in poverty may suffer from malnutrition due to a lack
of access to sufficient or healthy food. This can lead to stunted growth, developmental
delays, and weakened immune systems.
• Limited Educational Opportunities: Poverty often means reduced access to quality
education. Children may attend under-resourced schools or face barriers to educational
advancement, affecting their future opportunities.
• Increased Stress and Trauma: Children in poverty may experience higher levels of stress
due to unstable living conditions, domestic violence, or parental unemployment. This can
impact their mental health and social development.
• Reduced Access to Healthcare: A lack of healthcare access can lead to untreated
illnesses and chronic conditions, affecting children's physical and mental development.
• Higher Rates of Child Labor: In some regions, poverty forces children to work to
support their families, affecting their education and overall well-being.
Women often face unique challenges in poverty, resulting from both economic and gender-
based disparities. Here are some effects of poverty on women:
• Economic Discrimination: Women in poverty may experience unequal pay, limited job
opportunities, and discrimination in the workplace, exacerbating their economic
challenges.
• Limited Access to Education: In many parts of the world, girls in poverty have less
access to education, affecting their future opportunities and perpetuating cycles of
poverty.
• Increased Vulnerability to Violence: Women in poverty are often more vulnerable to
domestic violence and exploitation due to limited resources and support systems.
• Health Risks: Poverty can lead to reduced access to healthcare, affecting women's
reproductive health and overall well-being. This can have long-term consequences for
their health and that of their children.
• Reduced Social and Political Participation: Poverty can limit women's ability to
participate in social and political activities, reducing their influence and voice in society.
Poverty has a direct impact on education, affecting both access to and quality of education. Here
are some ways it manifests:
• Limited School Resources: Schools in impoverished areas often lack basic resources,
including textbooks, technology, and qualified teachers, affecting educational outcomes.
• High Dropout Rates: Poverty can lead to higher dropout rates, as students may need to
work to support their families or face other barriers to continuing education.
• Reduced Access to Higher Education: Students in poverty may face financial barriers to
attending college or vocational training, limiting their career opportunities.
• Educational Disparities: Poverty can create educational disparities based on geography,
race, or gender, perpetuating inequality.
Poverty also has broader economic impacts, influencing the overall health of a country's
economy. Here are some key effects:
• Reduced Economic Growth: High levels of poverty can lead to reduced economic
growth, as a significant portion of the population may lack the resources to invest, spend,
or participate fully in the economy.
• Increased Healthcare Costs: Poverty-related health issues can drive up healthcare costs,
straining public resources and reducing productivity.
• Higher Crime Rates: Poverty can be associated with higher crime rates, leading to
increased costs for law enforcement and a less stable business environment.
• Limited Workforce Participation: Poverty can reduce workforce participation due to
health issues, limited education, or other barriers, impacting productivity and innovation.
• Social Instability: High levels of poverty can contribute to social unrest and political
instability, affecting economic confidence and investment.
Overall, the effects of poverty on children, women, education, and the economy are
interconnected and can create cycles of deprivation that are challenging to break. Addressing
these effects requires comprehensive policies and programs that focus on social welfare,
education, healthcare, gender equality, and economic opportunity.
• Lack of shelter
• Limited access to clean water resources
• Food insecurity
• Physical disabilities
• Lack of access to health care
• Unemployment
• Absence of social services
• Gender discrimination
• Poor infrastructure
• Government corruption
• Environmental circumstances such as natural disasters, droughts, limited
resources or depletion of natural resources
In many rural areas, poverty drives deforestation and land degradation. People living
in poverty rely on forests for fuelwood, fodder, and agricultural land. This leads to
over-extraction of resources, deforestation, and soil erosion. The loss of forest cover
impacts biodiversity, contributes to climate change, and disrupts ecosystems.
Poverty often results in inadequate access to clean water and sanitation. As a result,
many people rely on untreated water sources for drinking, cooking, and cleaning,
leading to water pollution and the spread of waterborne diseases. Improper
sanitation practices, such as open defecation, further contaminate water sources,
impacting both human health and aquatic ecosystems.
Air Pollution
Poverty contributes to air pollution in several ways. In urban areas, people in poverty
often rely on low-cost, high-pollution fuels like kerosene or coal for cooking and
heating, leading to indoor air pollution. In rural areas, traditional biomass burning is
common, which contributes to air pollution and health issues. Additionally,
unregulated industrial activities in poorer areas can emit pollutants into the air,
affecting air quality and public health.
Case study
Introduction
The interplay between gender, poverty, and food security is a critical area of study, particularly in
regions like Palamu district of Jharkhand, India. Palamu, characterized by its socio-economic
challenges and agrarian distress, offers a unique perspective on how gender disparities influence
poverty and food security. This case study delves into the gender-specific aspects of these issues,
aiming to understand the unique challenges faced by women and how they impact the broader
community's well-being.
Strengths(Any 2)
1. Agricultural Potential:
o The region has fertile soil and a suitable climate for various crops, which can support
food security if properly utilized.
o Traditional knowledge among women regarding local crop cultivation and food
preservation techniques.
2. Community Support Networks:
o Strong community bonds can facilitate collective farming and shared resources,
enhancing food security.
o Women’s self-help groups (SHGs) play a crucial role in economic activities and
support networks.
3. Government Programs:
o Presence of government schemes like the Public Distribution System (PDS),
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and other
welfare programs aimed at reducing poverty and improving food security.
4. Cultural Knowledge:
o Traditional dietary practices that emphasize nutritional diversity, which can be
leveraged to improve food security.
Weaknesses(Any 2)
1. Gender Inequality:
o Persistent gender disparities in education, health, and economic opportunities,
limiting women’s ability to contribute effectively to household food security and
income.
o Unequal land ownership and lack of access to resources for women.
2. Economic Vulnerability:
o High levels of poverty with limited income sources, particularly for women.
o Seasonal migration of men for work, leaving women with increased burdens and
limited support.
3. Infrastructure Deficiencies:
o Inadequate infrastructure such as roads, markets, storage facilities, and healthcare,
affecting overall food security and poverty alleviation efforts.
o Poor access to clean water and sanitation, disproportionately affecting women and
children.
4. Limited Education and Training:
o Low literacy rates and lack of vocational training, especially among women, reducing
their ability to secure better-paying jobs and improve agricultural productivity.
Opportunities(Any 2)
1. Empowerment Programs:
o Initiatives aimed at empowering women through education, vocational training, and
entrepreneurship can significantly improve household income and food security.
o Expanding microfinance and SHGs to include more women, offering financial stability
and business opportunities.
2. Agricultural Innovation:
o Introduction of modern farming techniques, high-yield crops, and better irrigation
practices can increase productivity and food availability.
o Promotion of organic farming and local food systems can open new markets and
improve sustainability.
3. Policy Support:
o Leveraging government policies focused on gender equality, rural development, and
food security can bring targeted support to vulnerable groups.
o Advocacy for women’s land rights and improved access to agricultural inputs and
services.
4. Market Access:
o Development of local and regional markets to provide better opportunities for
women to sell their produce and products.
o Enhancing digital literacy to enable women to access information and markets
through mobile technology.
Threats(Any 2)
1. Climate Change:
o Increasing frequency of droughts, floods, and other climate-related events
threatening agricultural productivity and food security.
o Degradation of natural resources like soil and water, impacting long-term
sustainability.
2. Socio-economic Barriers:
o Deep-rooted patriarchal norms and practices that restrict women’s participation in
economic and social activities.
o High levels of illiteracy and lack of awareness about rights and opportunities.
3. Political Instability:
o Changes in political leadership or policies that may deprioritize women’s issues and
rural development.
o Corruption and inefficiencies in the implementation of welfare schemes.
4. Health Challenges:
o High prevalence of malnutrition, particularly among women and children,
undermining productivity and overall well-being.
o Lack of access to quality healthcare services, exacerbating the impact of poverty and
food insecurity.
Addressing the gender dimensions of poverty and food security in Palamu District requires a
multifaceted approach, leveraging strengths and opportunities while mitigating weaknesses
and threats through targeted policies, community engagement, and sustainable development
practices.
Case Studies
This section presents the select case studies of the respondents (tribal and female-
headed households) and their living condition in Manatu block of Palamu.
In Kusmatand village (Manatu block), there is no food available for the whole year, due
to which many households fall in the health trap. Presented in the following are few
cases of acute deprivation which also reflect a deep sense of helplessness vis-à-vis
access, availability and affordability of food.
Case : Basanti Kunwar, a 30-year-old widow from Kharwar tribe, lives in Kusmatand Tola.
She stays with her old father. Her father Rajkumar Singh reported that he had spent
around ₹30,000 for the treatment of his son-in-law, but he was not able to recover from
this chronic disease. He regretted that his daughter was in the early 30s who was
neither educated nor able to earn enough to meet their basic needs. She had two sons,
one was of 4 years, and the other a 4-month newly-born baby, and one daughter aged
three. He and his wife got ₹800 as old-age pension. For his daughter’s treatment, he
mortgaged 1.5 acre land, and the rest was taand (barren land). This village, he said was
a Bukhmaria Tola (starving hamlet). Her father said he was too old and not able to work.
He said his situation was the worst because he could not help his daughter in this
situation; therefore, the daughter had to work to fulfil children’s basic needs. This was
to say that his family was in health-trapped poverty. This case reveals that female-
headed households are more vulnerable to food insecurity than male-headed
households.
It is a case of multiple vulnerabilities, as she is not only a poor tribal woman but also a
widow. Also her father is an old person, therefore with family support. And despite such
acute vulnerability, the state-run food security mechanism is not reaching her.
Introduction
The COVID-19 pandemic has had a profound impact on global economies, with
developing countries like India experiencing significant disruptions. The pandemic
exacerbated existing inequalities and led to an increase in poverty across various
socio-economic groups. This case study examines how COVID-19 affected poverty
estimates in India, focusing on disparities across caste, class, and religion.
Objectives
1. Assess the overall impact of COVID-19 on poverty in India.
2. Analyze how the pandemic affected different socio-economic groups,
particularly across caste, class, and religion.
3. Identify the underlying factors contributing to the disparities in poverty
impacts.
4. Provide policy recommendations to address the increased inequalities.
Impact of COVID-19 on Poverty Estimates in India
Table 1 presents our estimates of headcount ratios and an absolute number of poor
based on the two assumed scenarios of contraction in per capita consumption
separately for rural and urban areas. The table shows that the total number of people
living below the poverty line would expand by 150 to 199 million, reaching to an
absolute number of 508 to 556 million due to the COVID-19 crises. Our estimates
suggest that a 5% and a 10% level of contraction in consumption in the rural area would
lead to an additional influx of 115 and 152 (population in million) respectively into
poverty. This means a 15.38 and 20.35% increase in poverty incidence at the 5 and 10%
consumption shock respectively. In pre-COVID times, around 35% (265 million people)
of the rural population were poor. However, this number is expected to rise to roughly
381 to 418 million for the FY2021–2022. For Urban India, under the same levels of
contractions, there is an expectant 36 to 47 million additional people to fall under
poverty, with the total headcount ratio reaching 39.08% to 42.4%. The contractions
would lead to an increase in urban poverty incidence by 10.96% and 14.2%. At all India
level, around 150–199 additional million people will become poor due to COVID-19
crises, while those already are poor will be pushed deeper into poverty.
Table 1. Estimates of Poverty at 5% and 10% Contraction in Consumption for Rural and
Rural Urban Al
Methodology
1. Data Collection
• Primary Data: Conduct surveys in urban and rural areas to gather data on income,
employment, education, health, and access to social services before and after the
pandemic.
• Secondary Data: Utilize data from government sources such as the National Sample
Survey Office (NSSO), Periodic Labour Force Survey (PLFS), and reports from various
NGOs and international organizations.
• .
2. Qualitative Analysis
• Conduct focus group discussions and in-depth interviews with representatives from
various socio-economic groups to gain qualitative insights into the pandemic's
impact.
Strengths
1. Government Response:
o Quick rollout of relief packages, including free food grains under the Pradhan Mantri
Garib Kalyan Anna Yojana (PMGKAY).
o Expansion of social protection schemes, such as direct cash transfers and increased
funding for MGNREGA.
2. Community Resilience:
o Strong informal networks and community solidarity helped mitigate some impacts of
the pandemic, particularly in rural areas.
o Non-governmental organizations (NGOs) and civil society groups played a critical role
in providing relief and support.
Weaknesses
1. Pre-existing Inequalities:
o Deep-rooted caste and class disparities exacerbated by the pandemic, with
marginalized communities experiencing higher rates of job loss and food insecurity.
o Discrimination and social exclusion faced by lower castes and minority religions,
limiting access to relief measures and healthcare.
2. Healthcare System:
o Overburdened and under-resourced healthcare infrastructure, particularly in rural
and marginalized areas.
o Disparities in access to healthcare based on socio-economic status, caste, and
religion.
Opportunities
1. Policy Reforms:
o Opportunity to implement and strengthen inclusive social protection policies that
address the needs of marginalized communities.
o Reforms in labor laws and social security systems to cover informal sector workers
more effectively.
2. Health System Strengthening:
o Investment in healthcare infrastructure and services, particularly in underserved
areas, to improve resilience against future health crises.
o Expansion of telemedicine and digital health services to reach remote and
marginalized populations.
Threats
1. Worsening Inequality:
o Risk of deepening socio-economic disparities if recovery measures are not inclusive
and equitable.
o Increased stigmatization and discrimination against marginalized communities in the
wake of the pandemic.
2. Economic Instability:
o Prolonged economic slowdown leading to sustained high unemployment rates and
poverty, especially among vulnerable groups.
o Inflation and rising cost of living further straining low-income households.
This concise SWOT analysis highlights the major strengths, weaknesses, opportunities, and
threats related to the impact of COVID-19 on poverty estimates across caste, class, and
religion in India.
Conclusion
Our estimates have shown that an additional influx of 150–199 million people into
poverty due to the ongoing COVID-19 crisis at 5% to 10% of assumed contractions in per
capita consumption expenditure. The analysis further suggests that the rural–urban
divide is prominent and the impact is spread unevenly across both sectors. Projecting
the proposed contractions on the two sectors reveals that the urban sector will have a
lesser impact on the poverty estimates. This is attributed to a better socio-economic
profile of the urban population as compared to the rural population. The estimates
show that in the second scenario of a 10% contraction in GDP, nearly four-fifth of SC/ST
fall into poverty compared to half of the people from the other groups. Similar results
are estimated for the religious minorities, with Islam at the maximum potential of
fallout, followed by Hindus, Christians and others. Amongst the household type, casual
labour households in the urban sector are the most impacted group, followed by self-
employed and regular salaried. Additionally, the low-income states bear the highest
incidence of poverty, followed by the middle-income states due to the crises. The
marked income inequity in the low-income states will increase in post COVID-19
contractions. In the high-income states, the brunt of COVID-19 is seen in rural areas due
to a large number of the rural population living near the poverty line and majorly
because the area lacks employment and livelihood opportunities.
Introduction:
Background:
Findings:
Economic Impact:
Social Impact:
Challenges:
Policy Implications:
Strengths
1. Guaranteed Employment:
o Provides a legal guarantee of 100 days of wage employment to every rural
household, ensuring a basic level of income security.
o Helps reduce poverty by providing a steady source of income during lean
agricultural periods.
2. Infrastructure Development:
o Focus on creating durable assets such as roads, irrigation facilities, and water
conservation structures, contributing to long-term rural development.
o Enhances agricultural productivity and access to markets, benefiting the wider
rural economy.
Weaknesses
1. Implementation Challenges:
o Delays in wage payments and irregularities in job allocations undermine the
program’s effectiveness.
o Issues with the transparency and accountability of local governance, leading to
corruption and mismanagement.
2. Limited Scope:
o The scheme’s reach and effectiveness are sometimes limited by inadequate
awareness among beneficiaries.
o Insufficient emphasis on skill development and capacity building, restricting
workers to low-skilled labor.
Opportunities
1. Skill Development:
o Integrating vocational training and skill development programs within
NREGA can enhance the employability of rural workers beyond manual labor.
o Providing additional livelihood options and empowering workers to move
towards more skilled and higher-paying jobs.
2. Digital Integration:
o Utilizing technology for better management and monitoring of the program,
ensuring timely payments and reducing corruption.
o Enhancing transparency through digital records and direct benefit transfers to
beneficiaries’ bank accounts.
Threats
1. Political Interference:
o Local political dynamics can influence the allocation of work and resources,
potentially leading to favoritism and exclusion of the most needy.
o Shifts in political priorities at the national
Conclusion:
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