Don’t miss the latest developments in business and finance.

Death, sickness in family pushes poor into poverty: WB study

Image
Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 9:33 PM IST

A large number of poor slip into the vicious trap of poverty because of death and sickness in the family, says a World Bank survey.

Besides, death and sickness, families fall into the state of poverty because of expenses incurred during marriages, the survey which is based on the data collected from over 30,000 people in 300 villages in four states pointed out.

"Death and health shocks (34 per cent) followed by social shocks including family divisions and expenses towards marriages of children (27 per cent) explain a majority of descents into poverty," the survey said.

Households falling into poverty reveal consistent pattern of distress sale of assets and borrowings, it said, adding "living on margins, one episode of illness is sufficient to push poor women and men into a downward spiral of debt and poverty."

While death and health related shocks were major reasons for people falling into poverty in Assam, family divisions and marriage expenses were mainly responsible for people slipping into the state of poverty in UP.

The survey also revealed that social shocks were responsible of majority of people descending into poverty in West Bengal. The survey, which gives an account of people's experience between 1995 and 2005, further said though poors took initiatives to move out of poverty, they were unable to do so because of difference in nature of their economic activities and the way their efforts interacted with the local market.

However, despite difficulties, 77 per cent of households feel that their children would be better off in the future, the study said.

More From This Section

Stressing that a well-functioning local democratic structures like rural panchayats are vital in moving people out of poverty, the study revealed that 26.6 per cent of households believe that jobs would be the primary trigger for moving out of the poverty.

Though 19.8 per cent of those surveyed believed that agriculture would help them in getting out of the poor condition, a large portion of youths showed low preference for agriculture as future career.

They instead opted for business and government jobs.

In UP, according to the study, 41 per cent wanted to start a new business while 37 per cent of youth showed inclination towards government jobs.

Also Read

First Published: Jun 10 2009 | 4:25 PM IST

Next Story