Saturday, October 15, 2011

Poverty, double entendre

We always measure certain things, by fixing certain variables. The depth of the ocean, the time taken for the sun’s rays to fall on the earth, etc. What is the total height of the sky from the earth? How many stars are there in the sky? Various mathematical formulas, theories made by scientists, economists are broadly used with mathematical precision and inferences arrived at. How will you measure Poverty? By a measurement scale? The incidence of poverty? There is also a difference between ‘Below Poverty Line and above Poverty line’. A line distinguishes them. If you get 35 marks, you pass, but if you get 34, you fail. What is the difference between Pass and Failure? Poverty is measured in terms of spending of Money. What is money? Money is what money does. That means, if you get something which has a price, you have to pay money having equal value. Money is measured by the value it fetches. The World Bank defines extreme poverty as living on less than US $ 1.25 (Purchasing Power parity) per day. Another report placed ‘moderate poverty less than $ 2 and not more than $ 5 per day’. India’s all powerful Planning Commission which plans for the development of the Country and ear-marks segment wise budgets for Plan schemes, appointed Suresh Tendulkar Commission to redefine Poverty using socio-economic parameters so that a methodology could be devised to assist these people by providing with Food Security. This Commission came out with a Report depicting 40% of India’s population as coming within the clear definition of Poverty. It further found that 3 out of 10 in urban area and 4 out of ten in the rural area were BPL. In order to arrive at the figure, they had worked out a mathematical formula which was based on the spending level. This spending level was used as a measurement to calculate BPL and APL. In one case which was currently on before the Hon’ble Supreme Court of India, the Court asked government to distinguish BPL and APL in clear terms. The Plg Comm. Filed an affidavit in which it categorically stated that if a person spends Rs 32/- per day per person, he was Below the Poverty Line and if he spent Rs33/- he came under APL category. This was considered as a fax paus. Pandemonium greeted this, and in desperation, Government said that it did not subscribe to this arithmetic. The Plg Comm also distanced itself against the numerical it had provided saying that they calculated poverty on the basis of Tendulkar Report. Further, they clarified that Central government scheme did not confine itself to BPL, APL, but had universal applications. The storm in the Tea Cup has not subsided. Poverty is the scale as to one who lacks a certain amount of material possession or money. Absolute Poverty or destitution refers to being unable to afford basic human needs. There is unequal distribution of wealth and welfare. Lacking a usual or socially acceptable level of resources or income as compared with others within society/country is termed as Poverty level. Low incomes and inability to acquire the basic goods and services necessary for survival and dignity is the hall mark of a huge population in a developing country. Life expectancy, decrease in child mortality rate, proportion of per capita food available, disproportionate usage against supply shrinkage causes higher incidence of poverty levels. Poverty line need to find the total cost of all essential resources than an average human adult consumption in a Year. It must be need based, record minimum expenditure needs necessary for survival and dignity. The Poverty threshold or Poverty line is the minimum level of income deemed necessary to achieve an adequate standard. People in different circumstances- with different household size or demographic compositions or living in different places- naturally have different levels of economic welfare at the same level of income. They have different needs. A Poverty line should reflect these differences. There are a number of formulas to arrive at the Poverty line, poverty cycle, and Relative poverty. Poverty statistics is used to measure inequality rather than material deprivation or hardship.

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