Poverty Definition:
- Historically, poverty was defined by calorie consumption, later updated through National Sample Survey Office (NSSO) data.
- Over time, discrepancies between NSSO and National Accounts led to concerns about data accuracy.
- Methodological shifts, like the introduction of multiple recall periods, have complicated comparisons.
Relevance : GS 2 (Social Issues)
Debate on Poverty Decline:
- P.C. Mohanan: Questions the drastic decline in poverty based on the varying poverty lines and data inconsistencies.
- N.R. Bhanumurthy: Acknowledges a decline but attributes it to high GDP growth, government welfare programs, and improved public delivery systems, suggesting further decline in poverty.
Concerns with HCES Data:
- Issues with recall periods (e.g., 7 days for food, 30 days for others) affect data consistency.
- NSSO’s new methodology (multi-sitting household visits) improves data accuracy but presents challenges when compared with older poverty lines.
- The need for a new, universally agreed poverty line based on current methodologies is emphasized.
Rural vs Urban Poverty:
- PCM: Rural-urban consumption gap is narrowing, with rural areas improving and urban consumption diversifying.
- NRB: Calls for clearer definitions of rural and urban areas to refine poverty estimation.
Upward Revision of Poverty Line:
- PCM: Cites a study estimating 25% poverty using Rangarajan’s methodology, but doubts a straightforward update to the poverty line.
- NRB: Disagrees with the 25% figure, citing international data like UNDP’s estimate of 12.9% poverty in India in 2019.
- Emphasizes the need for a consistent methodology for poverty line estimation.
Multidimensional Poverty Index Criticisms:
- UNDP’s methodology is global, leaving countries to tailor it. India’s multidimensional poverty index has 12 indicators, including bank accounts and maternal health, which is seen as a positive by NRB.
- PCM: Critiques the index for its static nature, where once a household achieves basic services, it remains classified as non-deprived, potentially underestimating ongoing vulnerabilities.
Conclusion:
- Both experts agree that while poverty has reduced, the methodologies for measuring it are inconsistent, and there is a need for clearer definitions and better data to ensure more accurate poverty assessments.
