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Poverty, Unemployment & its types, Employment Generation Programs

Poverty & Unemployment

 Poverty

  • Poverty defined in respect of development of societies and especially per capita income of people.
  • The under developed societies, very low per capita income and income inequality are the common causes of poverty.
  • Poverty is classified into 2 types:
    1. When the highest income group has large share in income as compared to the lowest income group is called Relative Poverty.
    2. When a large section of population fails to reach a certain minimum consumption standard is called Absolute Poverty.

In India poverty is defined on the basis of inability to get the minimum specified calorie levels, which are 2400 for rural areas and 2100 calories for urban areas.

  • 27 crore population of India live below poverty line. As per Tendulkar Committee's methodology for 2012-13 percentage of people living below poverty line in the country has been estimated at 21.9 %.

Unemployment

  • Unemployment can be defined as a situation when able and willing people are not getting jobs as per their own capabilities.
  • It is a common problem in all the developed or under-developed countries, but the types are different.

Types of Unemployment

Structural Unemployment

  • When the productive capacity of a country is inadequate to create a sufficient number of jobs then such type of unemployment occurs.
  • Rapid population growth is a major cause.
  • Indian unemployment is basically related to this category of unemployment.
  •  This type of unemployment is of long run nature.

Under Employment

  • It is a kind of unemployment where productivity of a person is less than what he is capable of.
  • For example when an engineer is working as a clerk he is under-employed.

Open-Unemployment

  • When able and willing persons have no work to do then such type of unemployment occurs.
  • For example the migration of the people from rural to urban areas in search of job without verifying the availability of job opportunities is very often in India which results in such kind of unemployment.

Disguised Unemployment

  • When a person does not contribute anything in the production process or other words the marginal productivity of that person becomes zero then such type of unemployment occurs.

Frictional Unemployment

  • During the change of market condition (Change in Demand and Supply Condition) such type of unemployment arises.
  • This type of unemployment is temporary.

Cyclical Unemployment

  • This type of unemployment is caused by the downtrend in economic cycles of a country.
  • It is also a temporary phenomenon.

Seasonal Unemployment

  • When a person has less work as compared to the previous season then they are rendered jobless and this type of unemployment occurs.
  • It is also temporary. For example in the period between past harvest and next sowing, agricultural labors are unemployed.

Important Anti-Poverty and Employment generation Programs

Antyodaya Yojana

  • It was initially implemented in Rajasthan in 1979.
  • Later it was extended in other states like Uttar Pradesh, Bihar and Himachal Pradesh.
  • It was a scheme to provide the people of the rural areas with small and cottage industries to develop their standard of living.

Jawahar Rojgar Yojana

  • It was implemented in 1989-90.
  • National Rural Employment Program (NREP) and Rural Landless Employment Guarantee Program (RLEGP) were merged into JRY.
  • Its main objective was to provide 50 to 100 days of wage employment to BPL families.

Nehru Rojgar Yojana

  • It was started in 1989.
  • It was implemented by urban development minister.
  • Actually it was a scheme to develop the standard of living of urban people.

Annapurna Yojana

  • It was implemented in 1999.
  • Its main objective was to provide 10kg food grains to those senior citizens who do not get pension.
  • Latter the pension holder senior citizens also got these benefits.

Swaranjayanti Gram Swarozgar Yojana (SGSY)

  • It was implemented in April 1999.
  •  Its main objective was to fix the weakness of earlier self-employment programs.
  • It has replaced the following programs:
  1. Integrated Rural Development Program (IRDP)
  2. Training Rural Youth for Self-Employment (TRYSEM)
  3. Ganga Kalyan Yojana (GKY)
  4. Million Wells Scheme (MWS)
  5. Supply of Improved Tool-kits to rural Artisans (SITRA)

Pradhan Mantri Gramodaya Yojana (PMGY)

  • It was implemented in 2000-2001.
  • Its main objective was to develop the village level problems like primary health, primary education, housing, rural roads, drinking water and nutrition which together focused on overall objective of  improving the standard of living of people residing in rural areas.

Pradhan Mantri Gram Sadak Yojana (PMGSY)

  • It was implemented on Dec 25, 2000.
  • Its main objective was to provide the road connectivity to all rural habitations with a population of more than 1000 persons by the year 2003 and those with a population of more than 500 persons by the year 2007.

Pradhan Mantri Gramodaya Yojana (Gramin Awas)

  • It was implemented on April 1, 2000.
  • This scheme was based on the pattern of Indira Awas Yojana.
  • Its main objective was to improve the quality of life of rural habitants.

Bharat Nirman Yojana

  • It was implemented on December 16, 2005 by the Union Government.
  • It was implemented for fixed 4 years and total expenditure was Rs. 174000crore.
  • Their major targets were

Irrigation

The plan aims to provide an additional one crore hectare of irrigational land by the year 2012

Roads

The plans suggests to construct all weather roads by the year 2012 in order to connect all the villages of India having a minimum populaion of 1000 ( 500 in case of hilly or tribal areas).

Housing

The main objective is to provide housing facilities to the rural areas of India. According to the plan the government of India will construct 60 lac houses for the rural areas by 2009. The scheme under this is named as Indira Awaas Yojana and is governed by the Ministry of Rural Development. It is mainly sponsored by the central government.

Water Supply

It aims at providing safe drinking water to all the under developed areas in India by 2012.

Electrification

To supply electricity to all remaining 1,25,000 villages and to provide electricity connections to 2.3 crore houses.

Rural Communication

The plan also includes covering 40% of the rural area with telecommunication facilities by the year 2014 and providing broadband coverage to all the 2.5 lakh Panchayats by the year 2012.

Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)

  • Its main objective was to provide enhanced livelihood security to households in rural areas of the country by providing at least 100 days of guaranteed wage employment in financial year to every household whose adult members volunteer to do unskilled manual work.
  • In that scheme 1/3rd of women participation was mandatory.
  • In first phase it was enforced in 200 districts.
  • It was implemented from 2nd February 2006 and then extended to additional 130 districts in the financial year 2007-2008.
  • The remaining districts of rural areas were also brought under the Act from April 1, 2008.