UPSC Mains 2025 GS Paper 2 Question Paper
Q. Inequality in the ownership pattern of resources is one of the major causes of poverty. Discuss in the context of ‘paradox of poverty’.
Introduction:
The paradox of poverty refers to the coexistence of abundant resources with persistent poverty, largely due to unequal ownership and access.
- Paradox of Poverty: Meaning
- Regions rich in natural/human resources remain poor
- Growth without equitable distribution
- Also linked to “resource curse”
Examples:
- Mineral-rich states like Jharkhand, Odisha with high poverty
- Tribal regions with forests but low human development
- Inequality in Ownership of Resources
(a) Land Inequality
- Skewed land distribution → landlessness, marginal farmers
- Limits income, credit access
Data:
- Top ~10% hold majority of agricultural land (various NSS estimates)
(b) Capital & Asset Inequality
- Concentration of wealth, capital, technology
- Oxfam: top 1% owns ~40–45% wealth in India
(c) Access to Common Resources
- Forests, water bodies controlled by state/corporates
- Marginalized groups excluded
(d) Human Capital Inequality
- Unequal access to education, health
- Perpetuates intergenerational poverty
- How Inequality Causes Poverty
- Low productivity trap → lack of assets → low income → no investment
- Credit exclusion (no collateral)
- Exploitative labour relations
- Regional disparities (BIMARU vs developed states)
- Evidence / Reports
- World Inequality Lab → rising income & wealth inequality
- NITI Aayog MPI → multidimensional poverty concentrated in resource-rich but unequal regions
- Case Studies / Examples
- Resource curse: mining areas with poor HDI
- Urban paradox: slums near economic hubs
- Agriculture: small farmers vs large landholders income gap
- Government Interventions
(a) Land & Asset Reforms
- Land ceiling laws, tenancy reforms (limited success)
(b) Inclusive Growth Policies
- MGNREGA → wage employment
- PMJDY → financial inclusion
- DBT → targeted subsidies
(c) Human Capital Development
- NEP 2020, Ayushman Bharat
- Challenges
- Poor implementation of land reforms
- Elite capture of resources
- Regional imbalance persists
- Informal sector dominance
- Way Forward
- Ensure equitable asset distribution
- Strengthen land reforms & land records digitization
- Promote inclusive growth & skilling
- Enhance social sector spending
- Empower local governance (Panchayats in resource management)
Conclusion:
Addressing inequality in resource ownership is key to resolving the paradox of poverty, ensuring that resource abundance translates into inclusive and sustainable development.
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