Chronic poverty

Indian Economy glossary

Also called: Persistent poverty · Topic: Poverty and Inequality: Measurement and Policy · NCERT: Beyond NCERT

Meaning

Chronic poverty means a household stays poor for a long time, often across generations. Researchers call such households the "always poor" or "usually poor". A short burst of growth or a one-time relief package does little for them, because they lack the base to climb out. They need slow, lasting help: asset building (land, livestock, skills), human capital (health and schooling) and long-term social protection such as pensions.

Example

A landless tribal family in a remote, drought-prone district earns little from casual farm work. The children leave school early to work, so the next generation stays poor too. In India, Scheduled Tribes show the highest incidence of multidimensional poverty, followed by Scheduled Castes.

Don't confuse with

  • Transient poverty: households fall below the line for a short time after a shock such as illness or crop failure, then climb back. It needs insurance and safety nets rather than long-term asset building.

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