Sponsor Area

Poverty

Question
CBSEENEC11009079

What are the defects of the mechanism used by our government to identify poor?

Solution

These are defect as under:

1. The mechanism used by the government does not differentiate between the very poor and the other poor.

2. This mechanism takes into account expenditure on food and a few selects items only as proxy for income. Economists question its basis.

3. This mechanism does not identify who among the poor need help the most.