Perspectives

=American and Indian Perspectives= Information on local and national poverty in India and the United States: variables that influence or cause poverty in both countries

The United States:
 * Maddy: think the most important or at least obvious factor is education. Without quality public education there can be no upward mobility from generation to generation and very little ability for lower class citizen to make anything above minimum wage.


 * Jack: It seems to me that in many cases of poverty in the US once one enters poverty it is a vicious cycle that in nearly impossible to break free off, because of the limited resources for both survival and upward mobility provided. I agree with Maddy that education is critical to upward mobility. For a good, stable job that will pay a decent living wage in the US one will probably need a high school degree. Pending any personal hardships and circumstances this at the least can be received through the free local public school. However, a college degree seems to me to be the big next step. This one is trickier as some colleges are seen as better, particularly the smaller private ones with tuition over $30,000 a year, many cannot afford college. There are great programs to help pay for college, but they cannot help completely, nor help that many. But many top institutions offer generous merit based aid, especially to the less fortunate to help ensure a college education is received. I wont even go on to talk about grad school at this point. But before I move on from education, it is also important to note that many public schools, especially inner city schools are failing far too many and not providing a adequate education. Education, as Maddy pointed out, is key. But once one is impoverished the welfare system ca be hard to get out of. The checks are not enough (from what I understand) to live on, especially if one has a family to provide for. And if one starts earning over a certain amount of money that is still far from a living wage they are removed from welfare, but they still cannot support themselves.


 * Tim: I believe that poverty in the U.S. has some of it origins in the oppresive nature of early American culture. Today, African Americans and Native Americans are living in porverty at much higher rates that white Americans. It seems pretty evident that the destruction of Native American culture and the enslavement of blacks even has ramifications years after the abolishment of all our oppresive systems (much like the caste system has played a part in Indian poverty). Because we never gave any reparations to these minority groups, they have had a much more difficult time ascending in our society due to the binding nature of poverty.

India: > As of 2005, 85.7% of the population lives on less than $2.50 a day, down from 92.5% in 1981. 75.6% of the population lives on less than $2 a day, it was down from 86.6%. A 24.3% of the population earned less than $1 (around $0.25 in nominal terms) a day in 2005, down from 42.1% in 1981. 41.6% of its population is living below the new international poverty line of $1.25 per day, down from 59.8% in 1981. The World Bank further estimates that a third of the global poor now reside in India. Income inequality in India is increasing. On the other hand, the Planning Commission of India uses its own criteria and has estimated that 27.5% of the population was living below the poverty line in 2004–2005, down from 51.3% in 1977–1978, and 36% in 1993-1994. The source for this was the 61st round of the National Sample Survey Organization(NSSO) and the criterion used was monthly per capita consumption expenditure below Rs. 356.35 ($8.90) for rural areas and Rs. 538.60 ($13.45) for urban areas. 75% of the poor are in rural areas, most of them are daily wagers, self-employed householders and landless labourers. > > The variables that influence or cause poverty in India are many. Some of the main causes are as follows-: > 1. Caste system- It is a pan-Indian phenomena and has been introduced to India in ancient Indian time. A proportionally large share of poor are of lower castes. In India it is believed that caste is god gifted and no one can change his/her caste. Caste system is a system of exploitation of poor low-ranking groups by more prosperous high-ranking groups. In many parts of India, land is largely held by high-ranking property owners of the dominant castes that economically exploit low-ranking landless labourers and poor artisans, all the while degrading them with their so-called god-given inferior status. Now, as the time is changing, many Indians don’t believe in caste system and don’t follow the caste system. But still this problem is one of the main cause for poverty in India. > 2. During the colonial period, the Indian economy was purposely and severely deindustrialized through colonial privatizations, regulations, tariffs on manufactured or refined Indian goods, taxes, and direct seizures. > 3. India’s economic policy is also to be blamed for the current situation of poverty in India. The policies formed in 1947 (after India’s independence) consisted of- > Extreme bureaucracy and regulation known as License Raj. (This was done to help Indian entrepreneurs to flourish) > Extreme protectionism. > These led to unemployment and underemployment. > Lack of property rights. The right to property is not a fundamental right in India. > There are some other causes of poverty in India like heavy pressure of population, inflationary pressure, lack of infrastructure etc.
 * Prateek: In India the situation of poverty is worse as compared to the United States. The following statistics can just give you an idea of how bad is the situation in India.