Discuss urbanization of poverty with reference to urban and rural poverty.

Urbanization of poverty encompasses both absolute poverty (exemplified by slums) and relative poverty (such as engineers earning ₹11 per month while living paycheck to paycheck).

Differences between Urban and Rural Poverty:

Urban Poverty:

i) Industries and service sector based poverty

ii) Coupled with pollution and poor environment

iii) Rising cost eating rising income fixed drag

Rural Poverty:

i) Around agrarian economy

ii) Does not generally suffer from pollution

iii) Income is still low

Urban Context:

Ways to Rectify Urban Poverty:

Control costs:

i) Rent control to manage housing expenses

ii) Reduced loans - personal and credit card interest rates

iii) Basic services [water] provided for free

iv) Index-inflation-based pay to ensure wages keep pace with inflation

Increase income:

i) Direct benefit transfer schemes

ii) Insurance coverage programs