Extreme poverty is a critical issue affecting millions worldwide. According to the World Bank, extreme poverty is defined as living on less than $2.15 per day when adjusted for purchasing power parity (PPP). In India, the government sets this threshold lower, recognizing individuals with an income below $1.25 per day as living in extreme poverty, following the United Nations’ Sustainable Development Goals (SDGs) established in 2015.
The Multidimensional Poverty Approach goes beyond just income to assess the various deprivations faced by individuals. This includes critical factors like health, education, and living standards. For example, access to clean water, quality education, and basic healthcare services are vital components of this approach.
The Consumption-Based Poverty Method evaluates the quantity of goods and services consumed by individuals or households. It typically involves calculating a basket of essential items to determine if individuals can afford basic needs.
The Income-Based Poverty Method focuses on the monetary income of individuals or households. While straightforward, it may not accurately reflect living conditions due to income fluctuations and informal economic activities.
The overarching goal is to eradicate extreme poverty by 2030. However, several challenges persist, including accurately measuring poverty levels due to varied socio-economic conditions, updating poverty lines in response to inflation and economic shifts, and ensuring that assessments capture the multi-dimensional aspects of poverty.
By employing a combination of these methods, India can more effectively identify and tackle poverty, ensuring that strategies are targeted and comprehensive to enhance the livelihoods of its population.
Q1. What is the definition of extreme poverty in India?
Answer: In India, extreme poverty is defined as living on less than $1.25 per day, according to the government's standards aligned with the UN’s Sustainable Development Goals.
Q2. What is the Multidimensional Poverty Index (MPI)?
Answer: The MPI is a tool developed by NITI Aayog to assess poverty beyond income, considering various deprivations in health, education, and living standards.
Q3. How does the consumption-based poverty method work?
Answer: This method measures poverty by evaluating the goods and services consumed by households, determining if they can afford essential items.
Q4. What are some challenges in measuring poverty?
Answer: Challenges include the need for accurate measurements due to diverse socio-economic conditions, updating poverty lines for inflation, and capturing the multi-dimensional nature of poverty.
Q5. What is the goal for poverty eradication in India?
Answer: The primary goal is to eradicate extreme poverty by 2030, focusing on comprehensive strategies to improve living standards for all.
Question 1: What is the extreme poverty line defined by the World Bank?
A) $1.25 per day
B) $2.15 per day
C) $3.00 per day
D) $4.00 per day
Correct Answer: B
Question 2: Who developed the Multidimensional Poverty Index in India?
A) Ministry of Health
B) NITI Aayog
C) UNDP
D) Oxford University
Correct Answer: B
Question 3: What does the consumption-based poverty method measure?
A) Income levels
B) Goods and services consumed
C) Educational attainment
D) Health outcomes
Correct Answer: B
Question 4: What is one of the main challenges in measuring poverty?
A) Lack of interest
B) Socio-economic diversity
C) Government policies
D) Inflation rates
Correct Answer: B
Question 5: By what year does India aim to eradicate extreme poverty?
A) 2025
B) 2030
C) 2040
D) 2022
Correct Answer: B
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