Definition and Concept of Poverty

Poverty refers to a condition in which individuals or communities lack the financial resources and essentials for a minimum standard of living. It is typically measured by income levels, consumption patterns, and access to basic services.

The World Bank defines extreme poverty as living on less than $2.15 per day (as of 2022). In India, poverty is often identified through poverty lines, such as those suggested by the Tendulkar Committee, which consider the cost of basic necessities.

Poverty encompasses not just material deprivation but also lack of access to education, healthcare, safe drinking water, sanitation, and opportunities for socioeconomic mobility.

Example: In India, poverty was measured in terms of calorie consumption during the 1960s-70s. Urban poverty lines were based on 2,100 calories per day, while rural areas used 2,400 calories per day.

Evolution of the Concept: From Income-Based to Multidimensional Poverty

1.Traditional Income-Based Measures

Earlier, poverty was assessed using income thresholds or per capita consumption expenditure. Committees like the Planning Commission focused on income-based poverty. For instance, the Tendulkar Committee (2009) set urban and rural poverty lines at ₹33 and ₹27 per day, respectively.