IGNOUMATIC

Definition of Poverty:

Poverty is generally understood as the condition in which an individual or community lacks the financial resources and essentials for a minimum standard of living. It is a multidimensional phenomenon encompassing lack of income, access to basic services such as education and healthcare, social discrimination, and vulnerability to economic shocks.

According to the World Bank, poverty is defined as:

“Pronounced deprivation in well-being, comprising many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity.”

Poverty can be broadly categorized into two types:

• Absolute Poverty – Defined by a fixed threshold (e.g., earning less than $1.90/day as per World Bank estimates).
• Relative Poverty – Defined in relation to the average income or standard of living in a given society.

In India, poverty has been measured using various criteria including the Tendulkar and Rangarajan Committees’ methodologies, which consider both consumption expenditure and access to education, health, and nutrition.

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Characteristics of Poverty:

1. Lack of Income and Assets:
   Individuals in poverty often have little or no income-generating assets such as land, property, or capital. This severely restricts their economic opportunities.
2. Poor Health and Malnutrition:
   People living in poverty typically lack access to nutritious food and healthcare, leading to chronic illness, stunting, and higher mortality rates.
3. Low Educational Attainment:
   Children from poor households often drop out of school due to economic pressure, leading to a cycle of limited skills and lower employability.
4. Inadequate Housing and Sanitation:
   Slums, overcrowded settlements, and lack of clean drinking water are common indicators of poverty-stricken areas.
5. Social Exclusion and Vulnerability:
   Marginalized communities (such as Dalits, Adivasis, women, and religious minorities) are often excluded from economic and social processes, further deepening poverty.
6. High Dependence on Informal Economy:
   The poor often work in unregulated, insecure jobs with no social security or labor rights.

Vocabulary Tip:Vulnerability (noun) refers to being open to harm, damage, or economic risk. In poverty discourse, it often means being susceptible to sudden shocks like job loss or illness