Causes of the Ultra-Poverty
- Inappropriate use of resources: Particularly in the farming industry, there is underemployment and convert unemployment throughout the nation. Low agricultural output and a decline in living standards are the results of this.
- Low Economic Development Rate: In India, economic growth has been slow, particularly in the first 40 years after independence, prior to the LPG reforms in 1991.
- Price Appreciation: The country’s constant price growth has increased the burden the poor bear. Even though a small number of people have gained from this, lower income groups have suffered as a result and are unable to even meet their bare necessities.
- Population Explosion: Over the years, India’s population has grown steadily. In the previous 45 years, it has increased at a pace of 2.2% annually, which translates to an average annual population increase of 17 million people. Additionally, this significantly raises the demand for consumer products.
- Agriculture with low productivity: The low productivity in the agricultural sector is a significant contributor to poverty. Low productivity might have many causes. It is primarily due to fragmented and subdivided land holdings, a lack of funding, ignorance of modern farming technologies, the use of conventional farming practices, waste during storage, etc.
- Colonial exploitation: India’s historic handicrafts and textile industries were destroyed by the British colonization and domination over the country for approximately two centuries, which led to de-industrialization. India was reduced by colonial policies to a simple producer of raw materials for European businesses.
- Climatic variables: Agriculture in some states suffers significant damage as a result of natural disasters such as cyclones, earthquakes, regular floods, and other disasters and later it becomes the reason for poverty in villages for farmers.
Ultra Poverty in India
The inability to provide for even the most basic needs is known as ultra-poverty. Those who are extremely poor frequently lack education, have few or no assets, and are in terrible physical and mental condition. According to The World Bank Poverty, between 9.1% and 9.4% of the world’s population was predicted to be living in extreme poverty in 2020. The term “Ultra-Poor” refers to people who spend 80% of their income on food but fall short of 80% of their daily calorie requirements. There are numerous notable distinctions between the ultra-poor and the poor. The households in ultra-poverty have little or no assets, especially those of a non-durable kind, have few hopes for a better future, and are socially, economically, and geographically isolated. They are also dependent on the erratic supply of wage labor. They typically have food insecurity and eat fewer than two meals every day. Malnutrition makes illnesses worse, which further depletes resources and necessitates borrowing from predatory lenders. Many of the large-scale government livelihood programs and safety net programs that are aimed at the poor do not reach the most vulnerable and extremely poor people. Additionally, market-based solutions are frequently inaccessible to them. 100 to 150 million households in India are thought to live on less than US$1.90 per day. The COVID-19 pandemic is likely to have increased these households’ vulnerabilities or increased the number of people living in ultra-poverty.