CUSES OF POVERTY

INTRODUCTION: - Different thinkers have pointed out to different causes of poverty. - According to Henry George, the main cause of poverty is the personal ownership and monopoly of the individual on the land. - According to Karl Marx, the main cause of poverty is the exploitation of the laborers by the capitalists. - According to Malthus, poverty increases because while the food production increases in arithmetical progression population increases in geometrical progression. - Each of the above mentioned views lays emphasis on one particular cause of poverty. - But modern thinkers consider poverty as the result of multiple causes. - As this problem has extended over a long period of time, its

causes come from many sources.

I] Personal causes: - Though one may not believe in fate in

the modern times, no one can deny the importance of personal capacity, efforts and characteristics in the economic status of the person. - The important personal causes of poverty are as follows:

1)Sickness:
- Hunter has written, poverty and sickness form a vicious partnership each helping the other to add the miseries of the most unfortunate of mankind. - Due to sickness, while a man is unable to work and his income decreases, a major portion of his income also spent on the cure of the diseases. -Thus, sickness increases poverty also increases sickness since hard labor in the absence of sufficient nutrition increases many diseases among the laborers.

2) Mental Diseases:
- Mental diseases and defects like insanity, feeble mindedness, epilepsy, etc also add their weight in the causation of poverty. - Due to mental disease a person becomes incapable of doing anything. - This decreases his income and increases poverty. On the other hand, poverty also increases mental disease since it is difficult to maintain the balance of mind in a state of utter poverty. - As Pashley rightly points out, poverty alone directly produces a very large proportion of the whole number o f causes of insanity among the indigent poor.

3)Accidents:
Accidents either make a person entirely incapable of work or considerably reduce his capacity for it if the earning member of a family is involved in some serious accident, the family becomes poor.

4) Illiteracy: Poverty and illiteracy are mutually related. Illiteracy increases poverty since the capacity to earn of an illiterate person is very low. On the other hand, many persons are compelled to remain illiterate because of poverty. Thus poverty and illiteracy together form a vicious circle to
increase the troubles of the poor people.

5) Idleness: - Idleness is also a cause of poverty. - Many persons, in spite of sufficient opportunity to work, do not work because of idleness and hence remain poor. - In hot climates idleness is an important cause of poverty and backwardness. 6) Extravagance: - It is well known that an extravagant (spendthrift, wasteful) person can waste any amount of money in no time. - In fact the cause of poverty is not lower income but excess of expenditure over income. - Some persons are so extravagant that always remain poor in spite of whether they earn. - In India extravagance on festivals and marriages can be easily observed everywhere, with the result that sufficient money is not available for education, sanitation, light, medicine and other necessities of life.

7) Demoralization:
- Demoralization or the lowering of character and moral leads to personal disorganization and finally to poverty. - Drinking, prostitution, gambling and other devil habits reduce to poverty even person of sufficiently high economic status. - They reduce capacity and cause escapism this leading to poverty.

8)Other Personal causes:

- If a man has too many children to bring up, his standard of living is definitely lowered, and he becomes relatively poor. -This is main cause of poverty in India. -Old age, death of the earning member, natural calamities also lead to poverty. -In rural India constant fragmentation of land leading to uneconomic holdings is a serious cause of poverty among the agricultural class. - Abnormalities of personality also cause poverty by creating maladjustment. -Such a person cannot stay in one job at a particular place. -In fact, every defect of personality reduces mans capacity to work and thus leads to poverty.

II] Geographical Causes: The following geographical causes are responsible for increasing poverty. 1) Unfavourable Climate and Weather: - Favorable climate and weather is very much necessary for work as well as for production both agricultural and industrial. - Hence in the extremely hot or cold climates and weathers the amount of work and production is considerable lowered. This increases poverty.

2) Absence of Natural Resources:

- No country can become rich in the absence of sufficient natural resources, e.g., fertile land, sufficient water, mineral and other natural products. -In the absence of natural resources the inhabitants of the deserts, high mountains and extremely hot and extremely cold countries generally remain poor.

3) Natural Calamities: - Natural calamities such as the eruptions of volcanoes, typhoons, floods, earthquakes and lightning cause serious damage to property and agriculture. - In India, the absence of timely rains, excessive or deficient rains cause serious damage to agriculture. - This increases poverty everywhere. - Pets are a major cause of damage to agriculture and immovable property such as books, furniture, Etc.

III]

Economic Causes:

Main economic causes of poverty are as follows:

1) Agricultural Causes:
Absence of sufficient manure, improved tools, implements and machines, means of irrigation and cattle highbred; deceases, absence of sufficient means to protect the fields from pests and animals; superstitions, exploitation of farmers by the landlords and constant fragmentation of land are some important agricultural causes which increases poverty among people of

the agricultural class.

2) Unequal distribution:
Even if production is sufficient, millions of farmers and laborers remain poor in the country where distribution of wealth is unequal. In the capitalist system, the rich go on becoming richer and poor poorer. Wasteful methods of production are also
responsible for poverty.

3) Economic depression:
Economic depression cause decrease in trade and commerce, lockout of mills and factories and unemployment of millions of laborers and small traders. Thus it is a serious cause of poverty. Low wages and lack of insurance against emergencies

also produce poverty.

4) Inadequate (insufficient) development:

Inadequate development has been described as the cause of poverty in India because the planning between 1951and 1991 has been so defective that the rate of growth has only been 3.5%. Indian economy had stagnated over a period of nearly five decades before Independence. The trend of growth rate between 1900-01 and 1945-46 was only 1.2% for national income, about 0.3% for agricultural production and 2.0% for industrial production. With the growth of population, these growth rates were hardly sufficient to provide a bare minimum existence to the people of India. However in spite of completing many five year plans so far, the growth rate of industrial production of electricity, of transport, of increasing employment opportunities and of developing human resources has been much below the
target.

5) Inflationary pressures:
Inflationary pressures have also increased poverty. With 1960-61 as the base, the index of wholesale prices jumped from Rs.165.4 to Rs.281.7 by 1973-74, an increase of 70% in five year period. The index registered an increase of 6.2% in 1989-90 as against 4.6% in 1988-89. The annual rate of inflation currently (1991) is running at 7.2%. The value of a rupee has come down to 8.28 paise from 1960-61 to 1990-91.

6)Lack of capital:
Lack of capital too prevents industrial growth. The value of Indias exports in relation to imports increased from Rs. (-)328 crore in 1961-62 to Rs.(-) 1,222 crore in 1975-76, Rs. (-) 5,813 crore in 1980-81 and Rs. (-) 7,517 crore in 1986-87. The value of imports increased from Rs. 996.3 crore in 1961-62 to Rs. 5,265.2 crore in 1983-84 and Rs. 20,083.5 crore in 1986-87. This value of foreign trade in 25 years indicates the limited capital invested in industry.

7) Lack of skills:
Human capital deficiencies or lack of skills and abilities in workers prevents them from finding good employment and thereby increasing their income. Achieving skills and abilities depends more on the availability and accessibility of opportunities than on genetic endowment or natural ability. Since the poor belong to a social environment where they fail to get the required opportunities, they remain unskilled which in turn affects the industrial growth.

8) Unemployment: High rate of unemployment in the country too leads to the drop in demand of labor. If no new projects are undertaken in the near future, there will be large scale unemployment not only among engineers, overseers and other technicians but also among the cultivators, industrial workers, graduates and post graduates.

IV] Social Causes: Social causes of poverty are as follows:

1)Faulty educational system: An important social cause of poverty is faulty educational system. It is because of this that in India thousands of educated persons are unemployed and leading a life of poverty. A grave defect in Indian system of education is lack of sufficient opportunities for technical education. Another defect is the high cost of education and absence of sufficient scholarships.

2) Faulty and Insufficient housing: In India due to faulty and insufficient housing, millions of people are forced to live in dirty and unhealthy slums. This reduces their capacity to work by increasing diseases and frustrations.

Hence it leads to poverty.

3) Absence of training in Home Science:

Mismanagement of household is a serious cause of poverty everywhere. This is because of lack of sufficient training to women in Home science. Without such training many middle class families remain poor.

4) Evil customs and traditions:

Evil customs and traditions in society are an important social cause of poverty. In India, for example, the system of dowry compels many families to remain poor in spite of all the efforts of their men folk to earn.

5) Insufficient provision of medical aid: Insufficient provision of medical aid causes delayed curse, prolonged diseases, permanent displacements and untimely deaths. All these increase poverty.

6) Joint family, caste system and religious beliefs:

Among social factors may be included the joint family system, the caste system and the religious beliefs which have been an impediment in the development of industrial growth. The joint family system discourages young persons to go out and strive for new ventures. Due to minimum security provided by the family, people become lethargic and develop the stay-home habit. The caste system was a hindrance to the development of new industries and it discouraged some persons to leave their traditional occupation lest they may be outcasted. Some of the religious beliefs such as Karma theory and the concept of Maya also discouraged certain Hindus to work hard although these beliefs were mostly confined to ignorant and illiterate people. Some believed that as we could not change our fate, there was no use of much effort and the results were preordained. Similarly the concept of Maya led some of the persons to belief that this world was illusionary and there was no use in acquiring much wealth.

7) Adult illiteracy: Adult illiteracy is also one of the social causes of poverty. In India adult illiteracy rate was as high as 44.3% in 1998. This was much higher than the adult illiteracy rate of 27.6 for all developing countries. Considering adult illiteracy rate in India for men and women separately it is observed that in 1998 female adult illiteracy rate was67.1% as against male adult illiteracy rate of 43.5%.

V] Political Causes:
Political causes of poverty are as follows 1) Wars and threats of war:

War is a destroyer of life. War devastates prospering lands and rich countries. It leads to loss of property and manpower. It upsets the balance of society by disrupting the moral standard and socio-economic system. War gives a serious blow to trade and commerce both national and international. Epidemics spread after was thus adding to the misery of the people. The wars and threats of war also force the state to spend huge amounts of money on defense instead of development. Constant threats from some neighboring countries force the Indian government to spend about 15% to25% of its total national income

on defense.

2. Defective political system: Indian political system is very often condemned as corrupt, inefficient and defective. Unhealthy competition among the political parties for power has many a times damaged our national interests. Our political leaders lack nationalistic fervour and will power to face the challenges that are confronting the nation.

VI]

Demographic causes:

demographic (It is the statistical study of all populations) causes of poverty are as follows

1) Population growth:

Population growth is the most important factor in poverty. Today population problem has become one of the most fundamental of all human problems. Population problem is inter-related with the other problems of society. It affects the individuals life, national life and international life. As a result of high birth rate and declining death rate, India is facing population explosion. It is a big problem for us to feed millions of people. If the population exceeds the available resources, then poverty occurs. The imbalance between population and resource is a cause of poverty.

2) Age structure:
There is relationship between poverty and age structure of the countrys population too. The life expectancy in India has increased from 32 years in 1941 to 54 years in 1981 and 60 years in 1991 because of which the number of old people in these 40 years has increased greatly. Though attaining the age of 55, 58 or 60years does not make a person incapable of work but after retirement it is not easy to gain employment. A person has, therefore, to depend on his children for economic support unless he gets pension/provident fund. Thus, the poverty of the old people is forced and involuntary.

3) Health:
Poverty is related to health also. If a person is healthy, he is not only able to earn but he spends less on his sickness. If large number of people in country suffer from chronic malnutrition or live in an unsanitary environment they suffer from many diseases which make them incapable of working and earning.

4) Family size:
Poverty is correlated to increase in family size as well. The larger the family size, lower the per capita income and lower the standard of living.

5) The educational level:

Lastly, the educational level of the people in the country also contributes to poverty. In India 52.1% people are educated in 1991 whereas in 1981, the literacy rate in our country was 36.2%. In absolute terms, the number of illiterates was 40.33 crore in 1981. Of the literate persons, the number of graduates and post graduates or holders of technical degree/diploma is very small. No wonder that the income of large number of people is found low.

CONCLUSION
B.N. Ganguly has given the following cause of
poverty in India: foreign rule and exploitation of a class society, over-population, lack of capital, high illiteracy, lack of ambition and economic motivation, poor health and lack of stamina in hot climate, lack of committed and honest administrators, outmoded (out dated) social system with lack of social and economic mobility, and exploitative land system that keeps the cultivators in a state of utter stagnation. The above mentioned causes do not exhaust all the causes of poverty in India. In fact they differ from man to man and state to state. But the above mentioned are the important causes of poverty everywhere. Eradication of poverty requires removal of all these causes. This requires efforts from the government as well as from people.