Poverty Line Definition

Posted In World - By NitiN Kumar Jain On Thursday, March 19th, 2009 With 2 Comments

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The World Bank’s definition of the poverty line**, for under developed countries, like India, is US$ 1/day/person or US $365 per year. As per this definition, more than 75% of all Indians are, probably, below the poverty line!

As per the Government of India, poverty line for the urban areas is Rs. 296 per month and for rural areas Rs. 276 per month, i.e. people in India who earn less than Rs. 10 per day. As per GOI, this amount will buy food equivalent to 2200 calories per day, medically enough, to prevent death. At this level of earning, even in a poor country like India, survival on Rs. 10 per day is a nightmare! This actually translates to Rs. 3650 per year or US $ 75 per year.

On what basis have our planners decided this definition of “Poverty Line”? Does it mean that the person will get enough food to stay alive? How and where is he or she supposed to cook it? What about the minimum needs in education, housing, health services, clothing,and other basic necessities? Are we supposed to live on pavements and sleep under trees from birth till death? YOU BE THE JUDGE!

The minimum wages in India, vary from state to state and city to city, and average Rs. 1000 – 1250/month or Rs. 12,000 – 15,000/yr. Or US $ 250 – US $ 300/yr. India’s per capita is US $ 440 per year. (China’s is US $ 990).
If India could provide Roads, Electricity, TV’s and Telephones in every village, it would improve, education, health, family planning, agriculture, animal husbandry, GDP and reduce migration from vllages to cities.

*Cost of employee = salary & wages + all allowances including housing + perks + retirement benefits.

**1 million = 1,000,000 or 10 lacs. 1 lac = 1,00,000. 1 crore = 10 million = 1,00,00,000.

Good one naaa!!!