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Question

Inequality in the ownership pattern of resources is one of the major causes of poverty. Discuss in the context of 'paradox of poverty'.

This question was previously asked in
UPSC CSE 2025 (Prelims) CSAT Official Paper (25-May-2025)

The 'paradox of poverty' refers to the baffling situation where a country possesses abundant natural and human resources, yet a large portion of its population lives in extreme poverty. India, rich in minerals, fertile land, and a vast workforce, is a classic example. At the heart of this paradox lies the profound inequality in the ownership and control of these very resources.

Poverty is not merely a lack of income; it is a denial of access. When a small elite controls a disproportionate share of a nation's resources, the majority are left disempowered and impoverished. This manifests in several ways:

  1. Land Inequality: In rural India, a major cause of poverty is the skewed ownership of agricultural land. A large number of landless laborers and marginal farmers are denied security and a fair share of produce, trapping them in a cycle of debt.
  2. Access to Capital: The concentration of financial resources means small entrepreneurs and farmers struggle to get credit. Without capital, they cannot invest or innovate, thus remaining in a low-income trap.
  3. Natural Resource Exploitation: Regions rich in minerals, like Jharkhand and Odisha, often have the poorest populations. The benefits of resource extraction are frequently siphoned off by corporations, while local communities face displacement and loss of livelihood without adequate compensation.
  4. Human Resources: Inequality in access to quality education and healthcare perpetuates poverty across generations, ensuring the nation's human resource remains under-utilized.

Therefore, the paradox is not that India is poor, but that its wealth is not shared. Tackling poverty requires not just economic growth, but a fundamental restructuring of resource ownership to ensure inclusive development.

Answered By:

Sakshi Negi

Sakshi Negi is a Delhi-based journalist and content specialist with expertise in educational content and digital media, focusing particularly on government exam preparation and career guidance. With a degree in Journalism and Mass Communication from NRAI School of Mass Communication and her background as a Kendriya Vidyalaya alumna, she brings unique insights into the Indian education system and government sector opportunities.

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