Review of Literature for Poverty Measurements

1668 WordsNov 17, 20137 Pages
Literature Review From the time of independence, India has been suffering from acute poverty, most of it is chronic in nature. If we look at the percentage of people below the poverty line, we do notice a sharp fall, but the absolute number remains increasing at a high rate. The situation keeps aggravating despite of several poverty alleviation programs that are implemented every year. The main reason for such failure, apart from the implementation issues, would be the measurement and numbers on which these programs are based. Appropriate measurement is central to analyzing and understanding poverty and its alleviation. Joshi P.D. (1997) identifies the methods and indices used for measuring the magnitude and extent of poverty are not…show more content…
(Ghosh J, 2010) The qualitative measures of poverty and wellbeing are also widely criticized by researchers who follow positive research paradigm on the ground that the relation between participatory exercises and the project or plans to alleviate poverty is often remote. Also there are factors like heterogeneity, ambiguity in responses, truthfulness etc. Hayati D. Et al., ( 2004) however recognizes that there is yet another group of researchers who think that both qualitative and quantitative approaches can be used simultaneously to answer a research question. For example, Poverty Measurement Index (PMI) is one such index. The PMI explicitly accommodates the multidimensionality of poverty. In the PMI construction process, poverty is viewed as a multidimensional and complex socio-economic state that relates to many aspects of household living. Bailey J. makes out that in adopting such an approach, it is necessary to extend the net so as to cover wider dimensions of well-being using non-conventional indicators of psychosocial and mental health, and environmental, relational and subjective components. In addition to this there should be an appropriate use of econometric and mathematical tools in order to quantify the variables. Tiwari M, (2008) argues that some researchers emphasizes on the qualitative and holistic approach to measure poverty.A more holistic understanding of poverty and wellbeing will have important
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