Poverty & Unemployment (Part – I)

Key Findings

• Across 112 countries and 6.3 billion people, 1.1 billion people (18.3 percent) live in acute multidimensional poverty.
• Poor people live in rural areas: 962 million (83.7 percent) live in rural areas.
  ∗Around 70.7 percent of all poor people live in rural areas of Sub-Saharan
• Africa (463 million) and South Asia (350 million).
• The five countries with the largest number of people living in poverty are India (234 million), Pakistan (93 million), Ethiopia (86 million), Nigeria (74 million) and the Democratic Republic of the Congo (66 million).
  ∗Together, these five countries account for nearly half (48.1 percent) of the              1.1 billion poor people.
• Approximately 584 million people under 18 are living in extreme poverty, making up 27.9% of all children globally, compared to 13.5% of adults.
• Poverty in conflicted regions: The report noted that 2023 witnessed more conflicts than at any time since World War II causing displacement of over 117 million people.
• Nearly 40% of the 1.1 billion people live in poverty, approximately 455 million, are situated in countries experiencing conflict.

India's performance on various indicators

• India's life expectancy at birth has slightly improved from 67.2 years in 2021 to 67.7 years in 2022.
• There is an overall increase (5.88%) in expected years of schooling (EYS) from 11.9 years to 12.6 years, leading to an improvement of 18 places.
• Gross National Income (GNI) per capita also improved from $6,542 to $6,951.

Observations made by Human Development Index

• The report shows that the two-decade trend of steadily reducing inequalities between wealthy and poor nations is now in reverse.
• The failure of collective action to advance action on climate change, digitalisation or poverty and inequality not only hinders human development but also worsens polarisation and further erodes
  trust in people and institutions worldwide.
• Nine in 10 people worldwide endorse democracy, but over half of the respondents expressed support for leaders who may undermine it, for instance, by bypassing fundamental rules of the democratic process.
• Political polarisation in countries is also responsible for protectionist or inward-turning policy approaches.

• By comparing income distributions, one can calculate metrics like the Gini coefficient, which quantifies the level of income inequality.
• Analyzing income distribution changes can help evaluate the impact of government policies aimed at reducing inequality.
• This type of comparison can reveal how economic growth affects different income groups and whether it leads to greater or lesser inequality.
• It can show whether wealth is becoming more concentrated in the hands of a few, which can have significant social and economic consequences.

Poverty is a multidimensional phenomenon that reflects the inability of individuals to access essential resources for a basic standard of living.

It encompasses lack of income, education, healthcare, and opportunities for economic and social mobility. Despite significant efforts at global, national, and regional levels, poverty remains a pressing issue, affecting billions worldwide.

Poverty can be broadly classified into two categories:

• Absolute Poverty: It is defined as a condition where individuals cannot meet the minimum requirements for basic necessities such as food, shelter, and clothing.
• Relative Poverty: It reflects economic inequality, where individuals are poor in comparison to others in their society.

There are Several reasons for poverty as:

• Economic Factors : Low income and unemployment limit access to resources and opportunities. Lack of industrialization and technological advancement hinders economic growth.
• Social Inequalities : Discrimination based on caste, gender, and ethnicity perpetuates poverty among marginalized groups. Limited access to quality education exacerbates inter generational poverty.
• Health Challenges : Poor health and lack of access to affordable healthcare prevent individuals from working productively. High medical expenses push families into poverty.
• Geographic and Environmental Factors : Natural disasters, droughts, and resource depletion disproportionately affect poor regions.∗Urban-rural disparities result in unequal access to infrastructure and              opportunities.
• Governance and Policy Gaps: Corruption, inefficient policies, and inadequate social security systems fail to address poverty effectively. Insufficient investment in infrastructure and public services perpetuates poverty cycles.

The scheme primarily targets individuals from Scheduled Castes (SCs) and Scheduled Tribes (STs) who meet specific income and landholding criteria. Banks can provide loans up to 15,000/- for various income-generating activities. The interest rate is fixed at 4% per annum, which is significantly lower than typical lending rates.
Eligibility:

• Income: Family income should not exceed 18,000 per annum in rural areas and 24,000 per annum in urban or semi-urban areas.
• Landholding: Landholding should not exceed one acre of irrigated land or 2.5 acres of unirrigated land. However, members of SC/ST communities are exempt from this landholding restriction, provided they meet the other eligibility criteria.

Self-help Groups (SHGs) are informal associations of people who come together to find ways to improve their living conditions. They are generally self-governed and peer-controlled. People of similar economic and social backgrounds associate generally with the help of any NGO or government agency and try to resolve their issues, and improve their living conditions.

Functions of Self Help Groups

• They try to build the functional capacity of poor and marginalised sections of society in the domain of employment and income-generating activities.
• They offer collateral-free loans to sections of people that generally find it hard to get loans from banks.
• They also resolve conflicts via mutual discussions and collective leadership.
• They are an important source of microfinance services to the poor.
• They act as a go-through for formal banking services to reach the poor, especially in rural areas.
• They also encourage the habit of saving among the poor.

Established in 1929, this medal commemorates the civic and humanitarian achievements of engineers. It is conferred upon an engineer whose professional achievements and personal endeavors have advanced the well-being of humankind.

The Hoover Medal is administered by a board representing five engineering organizations: The American Society of Mechanical Engineers, the American Society of Civil Engineers, the American Institute of Chemical Engineers, the American Institute of Mining, Metallurgical and Petroleum Engineers and the Institute of Electrical and Electronics Engineers.

He has given the idea of Self-Help Groups (SHGs) and microfinance as an effective tool for poverty alleviation. Md. Yunus changed the lives of millions of Bangladeshis by creating the concept of micro loans. To ensure repayment, the Grameen Bank started a system of SHGs called solidarity groups'. These small informal groups apply together for loans and its members act as co-guarantors of repayment and support one another's effort at economic self-advancement.