How are Poor People Identified?

Poor People are identified as those who live below the poverty Line

What is Poverty Line?

It is the minimum level of income required to meet basic needs

Example

Poverty line is currently

Rural Areas Rs 816 per person per month

Urban Areas Rs 1000 per person per month

Person earning below this minimum level of income are classified as Poor

Person earning above this minimum level of income are Classified as Non Poor

Poverty Line Calculation

It is the monetary value of Minimum Calories Intake

which is

2,400 calories in rural areas

2,100 calories in urban areas,

along with a minimum of non-food expenditure, is called poverty line or absolute poverty.

As per this formula,

Poverty line was determined according to the

minimum Monthly Per Capita Expenditure which was

Rs 818 per month in Rural Areas

Rs 1000 per month in Urban Areas

Problem with Above Formula of Poverty Line

It only divides people into Poor and Not Poor

It does not differentiate between different types of poor like

(Always Poor, Usually poor, Churning Poor, Occasionally Poor)

It is difficult to determine who amongst the poor need most help

It does not take into account other factors associated with poverty

like accessibility to basic education, health

care, drinking water and sanitation"

It does not take into account Social factors like Illiteracy, ill health, lack of freedom

Some critics argue that Poverty figures are Manipulated

Government deliberately keeps poverty line low so that most people fall above it

Actual number of poor are much higher

Poverty Line During Pre Independence Days

Concept was first discussed by Dada Bhai Naroji

He used the menu for a prisoner to arrive at jail cost of living using appropriate prevaling prices

Now in Jail, Normally adults go and not children

and Children consume less than Adults

So Adjustment was made in Jail cost as follows

He calculated Poverty line as

3/4 of Cost of Living of Person in Jail

NCERT Questions

Question 1

Why calorie - based norm is not adequate to identify the poor?

MCQ Other Books

Question 1

In the following questions, select the correct answers:

MPCE stands for ____.

1. Monthly Per Capita Expenditure
2. Minimum Per Capita Expenditure
3. Maximum Per Capita Expenditure
4. None of these

Question 2

Who introduced the concept of 'Jail cost of Living'?

1. Jawaharlal Nehru
2. Mahatma Gandhi
3. Dadabhai Naroji
4. None of these

Oswaal Questions

Question 1

Estimation of poverty in rural economies is at per day consumption of calories:

1. Less than 2,200
2. Less than 2,100
3. Less than 2,400
4. Less than 2,000

Question 2

Estimation of poverty in urban areas is at the consumption of per day calories of:

1. Less than 2,000
2. Less than 2,100
3. Less than 2,400
4. Less than 2,200 R

Question 3

In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R).

Assertion (A): Calorie-based norm is not an adequate measure to identify the poor.

Reason (R): This method does not differentiate between the very poor and the other poor.

Mark the correct choice:

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.