dynamics of poverty reduction same in rural and urban india??explain.
what is the extent of [poverty in india?
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The dynamics of poverty reduction are different in the rural and urban India. It is because, the rural poor and urban poor have to face different issues of poverty.
Example Landlessness is major issue of poverty in rural areas but in urban areas unemployment is the major issue.
The size of family is main determinant of poverty in rural areas, where it has large family size. But in urban areas, the family size is usually small. Child labour is mostly the phenomena of urban area and not that of rural area.
Therefore, due to differences in the issues related to poverty, the dynamics of poverty reduction is also different.
The poverty line in India is usually associated with a calorie threshold. This calorie threshold approach suffers from many problems. An alternative revealed preference-based approach has been provided by Jensen and Miller. In the JM approach, the staple calorie share reveals whether a household is calorie deprived. We use this approach to estimate the extent of poverty in India. Though our poverty estimates are very close to the Tendulkar Committee estimates for the urban sector, for the rural sector our estimates are considerably lower. We also fi nd by our method a remarkable rise in urban poverty between 2004-05 and 2007-08.
Example Landlessness is major issue of poverty in rural areas but in urban areas unemployment is the major issue.
The size of family is main determinant of poverty in rural areas, where it has large family size. But in urban areas, the family size is usually small. Child labour is mostly the phenomena of urban area and not that of rural area.
Therefore, due to differences in the issues related to poverty, the dynamics of poverty reduction is also different.
The poverty line in India is usually associated with a calorie threshold. This calorie threshold approach suffers from many problems. An alternative revealed preference-based approach has been provided by Jensen and Miller. In the JM approach, the staple calorie share reveals whether a household is calorie deprived. We use this approach to estimate the extent of poverty in India. Though our poverty estimates are very close to the Tendulkar Committee estimates for the urban sector, for the rural sector our estimates are considerably lower. We also fi nd by our method a remarkable rise in urban poverty between 2004-05 and 2007-08.
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Answer:
No, the dynamics of poverty reduction are not the same in rural and urban areas because the conditions in both the areas are completely different. Urban area poverty has decreased due to expansion of the service sector, increased industrialisation and consequent increase of jobs.
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