The recent survey by planning commission shows that, in 2004-2005, 27.5% of the population of India are living under the poverty line, which is which is significant development considering to the number of 36% in 1993-1994. According to the numbers, one out of every four persons is poor. How did they come to this conclusion? What exactly is Poverty line? What's the basis for the calculation? Let’s try digging into the details.
The Poverty threshold, or Poverty line, is the minimum level of income deemed necessary to achieve an adequate standard of living, which includes food, shelter, clothes, education, medical, vacation and savings. The definition of the poverty line by National Sample Survey organization (NSSO) is quiet different, in fact unbelievable (or should I say disbelievable). The official estimates of the poverty line are based on calorie norm of 2400 per capita per day for rural areas and 2100 per capita per day for urban areas. The poverty line is decided on the basis of the amount of food consumed by a person every day (per Capita per Diem), I mean just on the basis of food.
In the '70s, when our governments first began using this definition, the monthly cost of the "basket of food" required to supply the stated nutritional levels was calculated to be Rs 62 in rural areas, and Rs 71 in urban areas. With inflation, those numbers rose to Rs 328 and Rs 454 respectively, by the year 2000. Considering the inflation, in 2004, if you lived in an Indian city and you earned more than Rs 540 a month, you were considered above the poverty level. Remember again that, this figure is the estimated cost of that basket of food on which you spend all your money. We are not talking here about the money required to spend on shelter, clothing, transport and other amenities. So what we are saying is that if your total earnings amounted to more than Rs 540 a month, you were not considered poor. /*We are saying that if you earned, let's say, Rs 600 a month, out of which you paid Rs 540 for food, you were not considered poor. */ And it is by this calculation that we estimate that 26 per cent of India is below the poverty line; that we are pleased that that number has declined from 36 to 26.
But World Bank's definition of poverty line, for underdeveloped countries like India, is US$ 1 per day, per person in other words, $365/year/person, which is more than double the poverty line defined by Government of India.
My concern is not about the amount or the numbers. The disheartening thing is the fact that the Govt of India is hiding the numbers to fit the country in the developing curve. Unfortunately, the truth is far behind the projection or presentation. We are jumbling the numbers to hide our poverty, our scarcity, our deficiency. What are we going to fetch with this false impression of development? Why is the government forcing the people to live in delusional growth? I believe the very definition of poverty line by Govt of India should be changed to a meaningful one. The definition should take into account, all the expenses of adequate living requirements rather than just a basket of food which can sustain mere survival but not a decent livelihood. The rich future of India can be achieved only when we acknowledge and understand our poverty level and strive to get out of the cobweb of dearth.
(For more info, http://www.indiatogether.org/2006/mar/ddz-povline.htm)
The Poverty threshold, or Poverty line, is the minimum level of income deemed necessary to achieve an adequate standard of living, which includes food, shelter, clothes, education, medical, vacation and savings. The definition of the poverty line by National Sample Survey organization (NSSO) is quiet different, in fact unbelievable (or should I say disbelievable). The official estimates of the poverty line are based on calorie norm of 2400 per capita per day for rural areas and 2100 per capita per day for urban areas. The poverty line is decided on the basis of the amount of food consumed by a person every day (per Capita per Diem), I mean just on the basis of food.
In the '70s, when our governments first began using this definition, the monthly cost of the "basket of food" required to supply the stated nutritional levels was calculated to be Rs 62 in rural areas, and Rs 71 in urban areas. With inflation, those numbers rose to Rs 328 and Rs 454 respectively, by the year 2000. Considering the inflation, in 2004, if you lived in an Indian city and you earned more than Rs 540 a month, you were considered above the poverty level. Remember again that, this figure is the estimated cost of that basket of food on which you spend all your money. We are not talking here about the money required to spend on shelter, clothing, transport and other amenities. So what we are saying is that if your total earnings amounted to more than Rs 540 a month, you were not considered poor. /*We are saying that if you earned, let's say, Rs 600 a month, out of which you paid Rs 540 for food, you were not considered poor. */ And it is by this calculation that we estimate that 26 per cent of India is below the poverty line; that we are pleased that that number has declined from 36 to 26.
But World Bank's definition of poverty line, for underdeveloped countries like India, is US$ 1 per day, per person in other words, $365/year/person, which is more than double the poverty line defined by Government of India.
My concern is not about the amount or the numbers. The disheartening thing is the fact that the Govt of India is hiding the numbers to fit the country in the developing curve. Unfortunately, the truth is far behind the projection or presentation. We are jumbling the numbers to hide our poverty, our scarcity, our deficiency. What are we going to fetch with this false impression of development? Why is the government forcing the people to live in delusional growth? I believe the very definition of poverty line by Govt of India should be changed to a meaningful one. The definition should take into account, all the expenses of adequate living requirements rather than just a basket of food which can sustain mere survival but not a decent livelihood. The rich future of India can be achieved only when we acknowledge and understand our poverty level and strive to get out of the cobweb of dearth.
(For more info, http://www.indiatogether.org/2006/mar/ddz-povline.htm)
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