Lecture VIII

A brief introduction to
URBAN POVERTY

Naim Keruwala

The poverty in India is measured by a poverty line that

is probably one of the most disputed and incessantly
attacked measure in the world. It is simply what some
call a starvation line, a line that accounts for the
feeling of satiety: measured in calories.

Timeline
1979 The Poverty line benchmark
for
urban India established by
Task
force on projections of
minimum
needs and effective
consumption
demand Based on
household
consumption
expenditure.

1993 Expert group on estimation of

proportion and number of poor
carried out a thorough review of
the assumptions and methods
that
had been used by the Task
force
and suggested further
refinements

2009 Tendulkar report,

recommended a number of reforms
in methods and data sources that
have had the effect of increasing
estimates or rural poverty while
leaving (on aggregate) the level of
urban poverty almost unchanged
+

Money required for stipulated minimum calorie

intake by individuals + Spending on; Education +
Health + Electricity + Clothing + Footwear

2011 Shukla states that the intensity of

urban deprivation is captured not by the
mostly expenditure of the poor or their
consumption; but by the lack of basic
amenities, such as:
Deplorable shelter conditions
Constant battle with police & municipal
authorities
Lack of sanitation & health services
Denial of basic services

e: http://www.poverties.org/images/map-poverty-in-india-state-1.jpg

What is Poverty?
According to Encyclopedia Britannica (2008):
The state of one who lacks a usual
orsocially acceptable amount of money
or material possessions. [] Whatever
definition one uses, authorities and
laypersons alike commonly assume that the
effects of poverty are harmful to both
individuals and society.

Poverty according to Adam Smith

Over 200 years ago, Adam
Smith saw in poorness not just
a problem of having access to
the basic necessities to
support ones life, but also a
social handicap. In this sense
poverty's about being able to
follow the customs of a given
society and country, because
its essential to be part of it.

Essential elements of
understanding Poverty

Povert
y
Social
Exclusion

Marginalizati
on

Social Exclusion
Housing
Vulnerabili
ty

Economic
Vulnerabili
ty

Social
Vulnerabili
ty

Personal
Vulnerabili
ty

Marginalized Groups
Dalits
Women
Minorities
Children
Disabled
Sex Workers
Transgenders
Widows

The 1% vs. the 99% ?

Poverty cannot be characterized
merely by a general lack of
infrastructure, institution, technology
and education. Poverty also stems
from flaws in the redistribution of a
countrys wealth

The 1% vs. the 99% ?

If the capital owners keep all the
revenues to themselves and dont
raise salaries, then nothing changes
except that 1% of the population
gets rich as hell. So what matters
here is to look at the mean of growth,
to make sure that everyone
participates in a country's growth
and benefits from it

So, Whats Next?

Access to markets and education for
everyone
Investing in India's infrastructures and
nascent sectors
Creating an equitable society

Five Pronged Strategy

Strengthening
of service
delivery

Housing &
Basic
Services

Social
Security

Livelihood
Enhancement

Urban
Poverty
Alleviation

Participation /
Empowerment