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Poverty (General (Lorenz Curve (Used for Gini Coefficient calculation…
Poverty
General
Lorenz Curve
Measure of Income Inequality
Used for
Gini Coefficient
calculation
By area bn perfect equality line and Lorenz curve
Less G.C less inequality
Neglects
Inequality on basis of opportunity
Gender inequality
Social inequality
Curve bn Cumulative population and cumulative income
Poverty Gap
Per capita resources needed to take entire BPL popl on the Poverty line
Head Count Ratio (HCR)
(#BPL HH's * 100) / (#Total HH's)
Poverty Line
Avg consumption expenditure needed by an HH for basic min requirement
Silent on Depth of Poverty
Tendulkar Committee, 2005
Report- 2009
Recommendations-
All accepted
Uniform Consumption basket for Rural and Urban India
Calorie + Non-food expenditure based PL
Inflation adjustment using Fischer's Price Index(FPI)
Rangarajan Committee, 2012
Report- 2014
Recommendations-
Not accepted till now
Calorie+ Proteins + Fats + Non Food(Elaborate) based PL
Separate Consumption basket for rural and urban areas
Inflation adjustment using Fischer's Price Index(FPI)
Poverty estimation in India: 3 steps
Data Collection
Inflation Adjustment
Defn of Poverty Line
Amartya Sen
Poverty is deprivation of opportunity
Data
HCR in 2011-2012
Tendulkar: 22%
Rangarajan: 29.5%
MPI-2018
Multidimensional Poverty Index
Scale 0 to 1(worst)
By:
UNDP and OPHI (Oxford Poverty and Human Development Initiative)
Across 3 sectors, 10 indicators- health(2), education(2) and standard of living(6)
Data
India:
1) Poverty rate 55%(2005-2006) to
28%
(2015-2016).
2) India has largest number of people living in MDP in the world- around
364 million
people -
156 million
being children.
3)
Poor nutrition
the largest contributor, then education
4) Bihar, Jharkhand, UP, MP the poorest
World:
1) Among South Asia Maldives only better performer than India.
2) 83% of the poor in South Asia and Africa
Lacking in 3 indicators means Multi-dimensionally poor
Challenges in Poverty estimation
Under-reporting of consumption exp by many HH's
HH's getting subsidies and calculating them is difficult