Factors Affecting Poverty Dynamics: A Conceptual Study

Abstract

Abstract The poverty rate in India is still very high despite considerable economic reforms over the past 20 years and a rapid decline in that rate. Even if the accomplishments have received much praise, it is crucial to comprehend the dynamics of poverty by recognising those who entered and emerged from it. The literature on multidimensional poverty dynamics is not as well established as that on poverty entry and leave, despite the wealth of available empirical research on both topics. This chapter uses the multidimensional measure of issues related to health, education and infrastructure; social barriers to advancement; a lack of resources and a lack of competence to make decisions for the benefit of the household to investigate the dynamics of poverty and its underlying causes. This chapter distinguishes between chronic and sporadic poverty, and emphasizes the need to focus on the unique factors that determine each type. It is stated that when one individual has lived in poverty for a longer period of time, it is morally required to help. Furthermore, the causes of chronic and temporary poverty may differ, requiring policymakers to treat them as separate categories when developing policies. The theoretical work cited in this chapter laid the groundwork for a model of poverty dynamics, which could prove useful in elucidating the root causes of and pathways out of poverty for policymakers. The conceptual studies on poverty raise a number of concerns, most notably how poverty is quantified and defined; its origins, dynamics and causes; and where and how it is distributed geographically.