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State PCS

Mains Practice Questions

  • Q. Analyze the relationship between poverty, unemployment, and inclusive growth, highlighting policy measures to address these challenges. (250 Words)

    20 Mar, 2024 GS Paper 3 Economy

    Approach

    • Start the answer by introducing the Poverty, Unemployment and Inclusive Growth.
    • Illustrate the relationship between poverty, unemployment, and inclusive growth.
    • Mention policy measures to address these challenges.
    • Conclude suitably.

    Introduction

    Poverty is a multidimensional phenomenon, encompassing not just lack of income but also deprivation in terms of education, healthcare, and basic amenities whereas unemployment refers to the situation where individuals who are willing to work are unable to find suitable employment opportunities.

    Body

    Interrelation between Poverty, Unemployment, and Inclusive Growth:

    • Poverty and Unemployment Nexus:
      • High levels of unemployment contribute to poverty by limiting individuals' access to income-generating opportunities.
      • Conversely, poverty can perpetuate unemployment by restricting access to education and skill development, exacerbating the cycle of poverty.

    • Inclusive Growth as a Solution:
      • Inclusive growth serves as a powerful tool for poverty reduction and unemployment alleviation.
      • By creating employment opportunities, particularly in sectors with high labor intensity such as agriculture, manufacturing, and services, inclusive growth enables individuals to escape poverty traps.
    • Social Exclusion and Unemployment:
      • Social exclusion, resulting from factors such as caste, gender, and ethnicity, exacerbates unemployment among marginalized groups.
      • Inclusive growth policies should address these structural barriers by promoting affirmative action, ensuring equal access to education, and eliminating discriminatory practices in the labor market.

    Policies Addressing Poverty, Unemployment, and Promoting Inclusive Growth:

    Social Welfare Programs:

    • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Provides 100 days of guaranteed wage employment in rural areas, reducing poverty and unemployment.
    • National Social Assistance Programme (NSAP): Provides financial assistance to the elderly, widows, and disabled, reducing poverty.
    • Deendayal Antyodaya Yojana - National Rural Livelihood Mission (DAY-NRLM): Aims to reduce poverty by promoting diversified and gainful self-employment and wage employment opportunities.
    • The Prime Minister's Employment Generation Programme (PMEGP): It has facilitated the establishment of micro-enterprises, creating sustainable livelihoods and reducing poverty in various regions.

    Skill Development Initiatives:

    • Skill India Mission: Aims to train over 40 crore people in different skills by 2022, enhancing employability and reducing unemployment.
    • Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Provides skill training to youth across the country, leading to better employment opportunities.
      • Kerala's Kudumbashree initiative has empowered women through skill development and micro-enterprises, significantly reducing poverty and unemployment rates in the state.

    Promoting Inclusive Growth:

    • Financial Inclusion: Initiatives like Jan Dhan Yojana aim to provide financial services to the poor, enabling them to save, invest, and access credit.
    • Infrastructure Development: Improving infrastructure in rural and underdeveloped areas can create jobs and spur economic growth, benefiting the poor.

    Labour Reforms:

    • Labour Code on Wages, 2019: Ensures minimum wages and timely payment of wages, improving the living standards of workers and reducing poverty.
    • Industrial Relations Code, 2020: Aims to simplify labour laws and promote ease of doing business, potentially leading to increased job creation.

    Conclusion

    Poverty, unemployment, and inclusive growth are interlinked challenges that require a comprehensive approach for effective mitigation. Policy measures targeting skill development, social welfare, financial inclusion, and infrastructure development are crucial for addressing these challenges and promoting inclusive growth.

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