Hseb Notes - Economics XI - Poverty


Meaning of Poverty:

            Poverty is one of the problems of economic development. The main objective of economic development is poverty alleviation. Poverty is a situation where people are deprived of basic needs, basic rights and basic opportunities for their livelihood. In other words, poverty is the condition of having insufficient income to meet basic needs such as fooding, clothing, housing, clean drinking water and health services. According to World Bank, “Poverty is the inability to attain minimal standard of living.

Types of Poverty:

            Poverty can be classified into two groups: 
  1. Absolute Poverty:

The situation in which individuals are unable to attain the basic needs of life such as food, cloth, shelter, safe drinking water, health facilities, primary education, etc. is called absolute poverty. In other words, absolute poverty means inadequate income to sustain life.

  1. Relative Poverty:

The situation in which a person has enough income to sustain life but which is lower compared to rest of the community is called relative poverty. In other words, relative poverty is the condition of having less income that others within a society or a country.

Characteristics of Poor: Rural and urban


The characteristics of poor are as follows:

Low level of income:

Low level of income is the main features of rural as well as urban poor. Due to low level of income poor people are illiterate, malnourished and unhealthy.

Occupation:

The rural poor are engaged in agriculture occupation and urban poor are engaged in different activities as a labour.

 Lack of assets:

There is lack of assets with poor both in rural as well as urban. In rural areas, they have small size of unproductive land without irrigation facilities. Due to this, they have low level of income.

Education:

Majority of poor both in rural and urban areas are illiterate. More than 70% of the total poor population are illiterate.

Housing condition:

The housing condition of majority of Nepalese poor is very bad. Due to large family size there is always overcrowding in household. All family members have to live in a small and hut with limited space and without electricity and other facilities.

Status of poor in society:

There is low status of poor in a society. They have less access to publicly provided goods and services. They have no role in politics.

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