Wealthy people with privileged connection are able to acquire more wealth simply by bribing government officials to maximize their profits from such schemes while the poor remain in a state of neglect for not being able to assert such connections. Individual – individual lack of efforts also contribute towards generating poverty.
Causes of Poverty in India Factors contributing to the persistent problem of poverty in the country are many and they need to be identified in order to be addressed properly. The growth of population in the country has so far exceeded the growth in economy and the gross result is that the poverty figures have remained more or less consistent.
In rural areas, size of the families is bigger and that translates into lowering the per capita income values and ultimately lowering of standard of living.
On the other hand, lack of education and illiteracy prevent individuals from getting better paying jobs and they get stuck at jobs offering minimum wages.
Improvement of quality of life gets hindered and the cycle once again comes into action. Outdated Social Customs – Social customs like the caste system cause segregation and marginalization of certain sections of the society. Verghese put forth the problem in a very lucid language, “Caste system acted as a springboard for class exploitation with the result that the counterpart of the poverty of the many is the opulence of the few. Lack of skilled labour – lack of adequate vocational training makes the huge labour force available in India largely unskilled, which is unsuitable for offering maximum economic value.
As a direct consequence of inflation, effective price of food, clothing items as well as real estate rises.
The salaries and wages do not rise as much in keeping up with the inflated prices of commodities leading to effective decrease of the per capita income. Faulty economic liberalization – the LPG (Liberalization-Privatization-Globalization) attempts initiated by the Indian Government in 1991 were directed towards making the economy more suited to international market-trends to invite foreign investments. Social – The various social issues plaguing the country that contributes towards poverty are:- a.Effect on Health – one of the most devastating effects that poverty has is on the overall health of the nation.The most prominent health issue stemming from poverty is malnutrition.Effects of Poverty The resounding effect of poverty echoes through various layers of an India citizen’s life.If we try to have a systematic look at them, we should proceed under the three following heads:- 1.Upper and middle income groups see a faster increase in earnings than lower income groups.Also assets like land, cattle as well as realty are distributed disproportionately among the population with certain people owning majority shares than other sectors of the society and their profits from these assets are also unequally distributed.Poverty also staves people off from accessing much needed social tools of well-being like education and health requirements.The direct consequences stemming from this problem are hunger, malnutrition and susceptibility to diseases which have been identified as major problems across the world.It impacts individuals in a socio-psychological way with them not being able to afford simple recreational activities and getting progressively marginalized in the society.The term poverty is interconnected with the notion of the poverty line/ threshold that may be defined as the minimum figure of income that is required in a particular country for maintaining the socially acceptable quality of life in terms of nutritional, clothing and sheltering needs.