Poverty refers to a state of economic deprivation where individuals or communities lack sufficient resources to meet basic living standards. It includes inability to access essential goods and services like food, clean water, shelter, education and healthcare. Poverty can be measured in absolute terms (minimum income needed) or relative terms (comparison to others in society). It often leads to social exclusion and limited opportunities. Poverty alleviation remains a major challenge for governments worldwide.
Unemployment occurs when people who are actively seeking work are unable to find employment. It represents underutilization of human resources in an economy. Unemployment can be structural, frictional, cyclical or seasonal in nature. High unemployment indicates economic inefficiency and causes social problems. Governments use various policies like job creation programs to reduce unemployment rates.
Population density measures the number of people living per unit area, typically per square kilometer. It helps understand population distribution across geographical regions. High density areas face challenges like resource scarcity and pollution, while low density areas may have underdevelopment issues. Density patterns influence urban planning and resource allocation. India has high population density compared to global averages.
Sex ratio indicates the number of females per 1000 males in a population. It's a crucial demographic indicator reflecting gender balance in society. Declining sex ratios often indicate gender discrimination and female foeticide. Kerala has India's highest sex ratio while some northern states show alarming declines. Improving sex ratio requires social awareness and strict implementation of laws.
The poverty line is the minimum income threshold required to meet basic needs like food, shelter and clothing. In India, it's determined based on calorie consumption and expenditure surveys. Currently, the poverty line is approximately ₹1,286 per month per person in rural areas and ₹2,309 in urban areas. These thresholds vary by state and are periodically revised. The Tendulkar Committee methodology is widely used for poverty estimation in India.
Disguised unemployment occurs when more people are employed in a job than actually needed. Their removal wouldn't affect total output. This is common in agricultural and family-run businesses in developing countries. Though people appear employed, their marginal productivity is zero. It represents underemployment rather than complete unemployment and indicates inefficient resource use in the economy.
Inflation is the sustained increase in the general price level of goods and services over time. It reduces the purchasing power of money as each currency unit buys fewer goods. Moderate inflation is normal in growing economies but high inflation harms economic stability. Central banks use monetary policy tools to control inflation. Measuring inflation involves tracking price indices like CPI and WPI.
The Brundtland Commission, formally known as the World Commission on Environment and Development, defined sustainable development in 1987. Chaired by Gro Harlem Brundtland of Norway, the commission published "Our Common Future" report. It defined sustainable development as "development that meets present needs without compromising future generations." This definition emphasized balancing economic growth with environmental protection. The report laid foundation for global sustainable development initiatives.
Poverty is a multifaceted concept representing severe deprivation of basic human needs and capabilities. Absolute poverty refers to a condition where individuals lack fundamental necessities for survival, including food, clean water, sanitation, health care and shelter. It's measured against a fixed standard that doesn't change over time.
Relative poverty, in contrast, is defined in relation to the economic standards of a particular society. It considers social inclusion and the ability to participate fully in society. A person can be relatively poor even if their basic needs are met, if they cannot afford what's considered normal in their community.
Both forms of poverty have serious consequences including poor health, limited education access, social exclusion and reduced life opportunities. Governments use various poverty alleviation programs, social security measures and employment schemes to address both absolute and relative poverty. Understanding these concepts helps in designing targeted interventions for different poverty situations.
The poverty line represents the minimum level of income deemed adequate to meet basic needs in a specific society. It serves as an official threshold to identify population segments living in poverty. In India, the poverty line is determined through comprehensive surveys considering calorie requirements, consumption patterns and price indices.
The current poverty line estimates are approximately ₹1,286 per person per month in rural areas and ₹2,309 in urban areas. This differential recognizes higher living costs in urban settings. The methodology has evolved through various expert committees including Tendulkar and Rangarajan Committees.
These thresholds vary across states considering regional disparities in prices and consumption patterns. Poverty line calculation involves complex statistical methods including household consumption expenditure surveys. While useful for policy planning, poverty lines have limitations as they may not fully capture multidimensional aspects of poverty. Regular revisions ensure they remain relevant to changing economic conditions.
Disguised unemployment, also called hidden unemployment, occurs when more people are engaged in work than actually required. In such situations, removing some workers wouldn't reduce total output, indicating zero marginal productivity of labor. This phenomenon is particularly common in agricultural sectors of developing countries and family-run enterprises.
A classic example is a family farm where five people work but the same output could be achieved by three workers. The extra two workers are disguisedly unemployed. Similarly, in urban areas, family shops often have more helpers than needed. This represents underemployment rather than complete joblessness.
Disguised unemployment indicates inefficient resource allocation and low productivity in the economy. It's problematic because resources that could be used elsewhere remain unutilized. Addressing this requires creating alternative employment opportunities, skill development and promoting labor-intensive industries. Economic development typically reduces disguised unemployment as workers move to more productive sectors.
Inflation is the sustained increase in the general price level of goods and services in an economy over time. It erodes purchasing power as each currency unit buys fewer goods and services. While moderate inflation is normal in growing economies, high or hyperinflation can destabilize economies.
The primary causes of inflation include demand-pull factors, where aggregate demand exceeds supply, leading to price rises. Cost-push inflation occurs when production costs increase, forcing businesses to raise prices. Built-in inflation results from adaptive expectations where workers demand higher wages, creating a wage-price spiral.
Other factors include monetary inflation from excessive money supply growth, fiscal policies, exchange rate fluctuations and supply shocks. External factors like global commodity prices also influence domestic inflation. Central banks use monetary policy tools like interest rates and reserve requirements to control inflation. Understanding inflation causes helps in formulating appropriate economic policies to maintain price stability while supporting growth.
The Brundtland Commission, officially known as the World Commission on Environment and Development, introduced the widely accepted definition of sustainable development in its 1987 report "Our Common Future." Chaired by Gro Harlem Brundtland, then Prime Minister of Norway, the commission was established by the United Nations in 1983.
The report defined sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." This definition emphasized two key concepts: the concept of 'needs,' particularly essential needs of the world's poor, and the idea of limitations imposed by technology and social organization on the environment's ability to meet present and future needs.
The Brundtland Commission's work highlighted the interdependence of environmental protection and economic development. It argued that poverty reduction and environmental conservation must be addressed together. The report laid the groundwork for the 1992 Earth Summit in Rio de Janeiro and subsequent global environmental agreements. This definition remains fundamental to understanding and implementing sustainable development policies worldwide, balancing economic growth, social inclusion and environmental protection.