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Notes

Poverty & Unemployment

Definition/Introduction

Poverty is defined as a state where an individual or group lacks the financial resources to meet basic living standards, including food, clothing, and shelter. Unemployment, on the other hand, refers to the situation where individuals who are capable and willing to work cannot find employment.

Constitutional Provisions

**Article 21 - Protection of Life and Personal Liberty**: This article guarantees the right to live with dignity, which is intrinsically linked to the availability of employment and the alleviation of poverty.

**Directive Principles of State Policy (Part IV)**: These principles direct the State to secure for all citizens adequate means of livelihood (Article 39(a)).

Historical Evolution

**Pre-Independence Era**: Poverty in India was exacerbated by colonial policies which led to economic exploitation and depletion of resources.

**Post-Independence Initiatives**: The Government of India launched various schemes aimed at poverty alleviation and employment generation, such as the Community Development Programme (1952) and Integrated Rural Development Programme (IRDP, 1978).

Classification/Types

1. **Absolute Poverty**: This refers to a condition where an individual cannot meet the basic needs for survival.

2. **Relative Poverty**: This is a condition where an individual has significantly less access to resources compared to others in society.

3. **Structural Unemployment**: Caused by changes in the economy that result in a mismatch between the skills of the workforce and the jobs available.

4. **Cyclical Unemployment**: Occurs during periods of economic downturn when demand for goods and services decreases.

Important Provisions/Features

**Employment Generation Schemes**: Various schemes like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provide a legal guarantee for at least 100 days of unskilled wage employment in a financial year to every rural household.

**Skill Development Initiatives**: Programs like the Skill India Mission aim to equip youth with employable skills.

Landmark Judgments

**People's Union for Civil Liberties v. Union of India (2001)**: The Supreme Court recognized the right to food as an integral part of the right to life under Article 21.

Amendments

**44th Amendment Act (1978)**: The amendment asserted that the right to life includes the right to live with human dignity, directly impacting poverty alleviation policies.

Comparison Tables

| Feature | Poverty | Unemployment |

|---------|---------|--------------|

| Definition | Lack of financial resources | Lack of job opportunities |

| Measurement | Poverty Line | Unemployment Rate |

| Types | Absolute, Relative | Structural, Cyclical |

UPSC Exam Focus

Questions often focus on government schemes for poverty alleviation and their effectiveness.

Understanding of the socio-economic factors contributing to unemployment.

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Key Concepts

Poverty Line - The poverty line in India is defined by the Planning Commission and varies across states due to different consumption patterns.

Unemployment Rate - The unemployment rate is defined as the percentage of the total labor force that is unemployed but actively seeking employment.

Employment Assurance Scheme - Launched in 1999, it aims to provide at least 100 days of guaranteed wage employment in a financial year to every rural household.

Pradhan Mantri MUDRA Yojana - Launched in 2015, this scheme aims to provide loans to small entrepreneurs to promote entrepreneurship.

Multi-dimensional Poverty Index - Developed by the Oxford Poverty and Human Development Initiative, it considers multiple deprivations including education and health.

Jawahar Rozgar Yojana - Aimed at providing wage employment in rural areas, it was launched in 1995.

Atal Pension Yojana - Launched in 2015, it is targeted at unorganized sector workers to provide them with a guaranteed pension.

Financial Inclusion - Refers to making financial services accessible at affordable costs to disadvantaged and low-income segments of society.

Important Facts

•[2019] Poverty line varies across statesOfficial poverty lines are higher in some states due to price level variations.

•[1999] Employment Assurance SchemeGuarantees employment to at least one man and one woman in rural families below the poverty line.

•[2015] Pradhan Mantri MUDRA YojanaAims to bring small entrepreneurs into the formal financial system.

•[2012] Multi-dimensional Poverty IndexCovers deprivation in education, health, and household assets.

•[1995] Jawahar Rozgar Yojana30% of employment generated is reserved for women.

•[2015] Atal Pension YojanaMinimum guaranteed pension scheme mainly targeting unorganized sector workers.