My Views

Fall in Poverty levels

Posted in Economy, Reality Check, Reports by dullar on March 23, 2007

Two related stories in yesterday’s Mint regarding the issues of poverty and rural economy gave a new addition to the perspective of falling poverty levels and the reasons behind. These are- A new rural economy and ” Poverty at record low” ( i cudnt find the link for this on the website, though read in the paper yesterday).
The revealations are:
1) Substaintial fall in poverty levels( down to 21.8% in 2004-2005 from 26.1% in 1999-2000), thanx to the 2nd generation reforms.
2) Change in the consumption pattern all across the board, including rural india.
3) Fall in rural unemployment is greater than the fall in urban unemployment. It may be due to increasing diversification of agriculture, increase in enterprises(both service and industrial) in the rural areas, greater migration og unemployed youth from rural areas to urban areas in searc of employment thereby increasing the unemployment rate in latter.
4) New Urban enterprises grew at a lower rate than the rural enterprises.(former-3.71%, latter- 5.53%). Former may be due to the fact that in the urban areas starting an enterprise requires adequate skill level, approvals from government, and plethora of other issues. In rural areas, enterprises grew may be coz of increasing intervention by government, subsidies given for the equipments and various schemes of bank loans, SHG initiatives.
5) Increasing diversification and investments in non-farm activites at village levels. Youth are left to their own initiatives given that agriculture cannot absorb increasing population burden and consequent employment demands.


127 out of 177

Posted in Reports by dullar on December 5, 2006

The verdict is 127 out of 177, says UNDP report 2006. People who track the HDI for India year after year knows well that what that means, how are we progressing, and how static the rank for India is. HDI takes into account three factors, it is “composite measure of three dimensions of human development: Living a long
and healthy life (measured by life expectancy), being educated (measured by adult literacy
and enrolment at the primary, secondary and tertiary level), and having a decent standard of
living (measured by purchasing power parity, PPP, income)”. So besides the last indicator we can club the first two indicaors under social sector. That means we have been doing well in this area just next to some African countries. Is it not pathetic? Further though with reofrms are going on from last one and half decade and we have achieved a stable GDP growth rate of 7-8 percent but still there is much to be done to distribute this growing booty among the poorer sections of society. So are we allowing some top sections of people to suck and accumulate wealth and thus drifting apart the economic fabric of society. Definately not. India is growing rich, thanx to the process called globalization. One of the consequences of globalization is privatization and progressive lifting of government controls in most of the industrial spheres. But social sectors like promary education, health, old age security, sanitation, drinking water etc still needs goverment patronizing and spending. Agriculture has been a much neglected area during the reform period and its consequences are there in front of us in form of grwoing rural unemployment, youth frustration and farmers suicides.
We are still far away from the time when ecomomy pushes the growth momentum to the lower rungs of the people, when social sector may not be ahead but progresses in line with the economic sector. Till then India shining only means a thin silver lining on a otherwise dark cloud.

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