India & her striking (unequal) poverty
While recently going thru an article in Mint, I realised that Extreme poverty (EP) as defined by UN( in 2015) is living on less than $1.9 a day,measured in 2011 PPP & according to World Poverty Clock - 8% of world (600 mn) lives in EP, the global hot spots being India & mostly African countries contributing half of that. Last quarter-century, percentage of world's EP has reduced from 36% to 10% with decline in last decade due to a substantial degree from India. An avg. GDP growth rate of 7%+ for last 26 years has made a dramatic impact on EP in India from 22% (265 mn) in 2011 census to expected 4% (50 mn) in 2019 & below 40 mn in 2021.
What is worrisome notwithstanding the impressive nature of EP eradication efforts is the rising income inequality with richest 1% Indians holding 58% wealth & richest 10% over 80%. While India will soon be no longer a poor country in the way it was last 70 years, many issues related to very low-income households will remain. Crossing a minimum income or consumption threshold doesn't imply that lack of education or healthcare will not force households back into poverty as also any less focus on reducing infant mortality, maternal health, inconsistency between geographies & states. India definitely has become better in targeted distribution of wealth & resources (Ujjwala yojna, Ayushman bharat, support to farmers via bank accounts opened as part of Jan Dhan) & these skills have to be perfected to reduce leakage & improve direct help to marginal farmers & large sections of underprivileged society. The govt of day has to disproportionately focus its energies to fix areas like primary education, public healthcare, national & local security and infrastructure development & maintenance while moving away from running businesses (where private sector can play the game better ). An enabling regulator to fix what ails competent businesses & entrepreneurship for ease of doing business alongside protecting gullible customers from unscrupulous 'crony capitalists' is what will best serve more equanimous distribution of wealth from existing unhealthy middle-aged man with big head & fat belly ( richest & lower middle class respectively) to wise old man with humble head, broad chest & appropriate middle.
#randomusing
Courtesy: N Ramachandran, Mint