Assessment of the growth experience: Poverty and Unemployment Poverty and unemployment are closely related High poverty

ty has a multiplier effect on quality of life, deprivation, malnutriti on, illiteracy and low human resource development. Poverty Poverty lines o Normative nutritional requirement per person per day at some base point. o This is debated o 2400 cal (rural), 2100 cal (urban) o Nutrient requirement then needs to be translated to monetary terms. Poverty has declined as per NSSO estimates. However, recent committees like the Tendulkar committee have reviewed the method ology of measuring poverty and concluded that poverty levels are much higher tha n those presented through the NSSO estimates. Data on poverty reduction <put> Rural-urban and regional disparity o Even when poverty has declined there has been a marked disparity in its reduction in rural and urban areas as well as across different regions in the c ountry o --- states have poverty ratio below the national average o Significant reduction in Andhra, Gujarat, Haryana, Karnataka, Kerala, Ma harashtra, Punjab and WB o Most poor states of Bihar, MP, Orissa and UP have shown little progress in poverty reduction o Over 54 pc of Indias poor lived in these states in 2004-05 o These states have more poor than 26 sub-Saharan African countries accord ing to the 2010 HDR o North-western states (P, H, HP, J&K) comprise only 2.2 pc of Indias poor. Rural urban disparity is minimal o More than half of Indias urban poor live in the states of Maharashtra, MP , UP and TN o There is no evidence for convergence in the incidence of poverty across the states of India o Coeffcient of variation (CV) of poverty reveals widening inter-state ine qualities in poverty reduction. Between 1993-94 and 2004-2005 CV increased from 36 to 54. Non-income dimensions of poverty o NFHS-3 and District level Household Survey on Reproductive Health 46 pc children under 3 and 49 pc children under 6 malnourished 79 pc children anaemic 59 pc deliveries did not take place in institutional agencies 32 pc have no electricity, 55 no toilet o Multidimensional Poverty Index Economic Growth and Poverty o Necessary for poverty reduction, but not sufficient o This is because Poverty is not only income poverty. There are various other unfreedoms. The MDP I captures this well Enabling role of basic education, good health, land reforms, social security The fruits of economic growth may not be automatically utilised to expand basic social services o Eliminating deprivation is as much a matter of public action as one mere ly of economic growth. o There has been no significant acceleration in the process of poverty red uction during 1980-2005 despite an acceleration in the growth of per capita GDP Since public action is required, schemes such as NREGS and SGSY are important Chronic Poverty o Higher among rural casual labour households than urban casual labour hou seholds

o Varies significantly across social and occupational groups and is highes t for SCs Poverty in India vs other developing countries o China Poverty in China declined from 53 pc in 1981 to 8 pc in 2001. In the same period India reduced poverty by 17 pc India fares badly even on non-income dimensions of poverty like malnutrition, in fant mortality Concerns about equity and disparity remain in China too. India has fared better than China in achieving lower inequality Poverty and Planning/inclusive growth <see poverty notes> Strategy to deal with the problem o Recognize that poor are hetrogenous. So strategies need to be specifical ly designed to deal with chronic poor and other poor o Design safety nets o Strengthen livelihood and make them more productive Obsession with economic growth? <Notes from Sens article> Economic growth helps in advancing living standards and in battling poverty Growth, however, should not be taken to be an end in itself Sustainable economic growth Focus on development The good thing about economic growth is that it generates resources for the gove rnment to spend according to its priorities India-China comparision Parameter India China LE 64.4 73.5 IMR 50 17 U-5 MR 66 19 Literacy 65 94 Mean years of schooling 4.4

7.5

Assessment of the growth experience: Poverty and Unemployment Poverty and unemployment are closely related High poverty has a multiplier effect on quality of life, deprivation, malnutriti on, illiteracy and low human resource development. Poverty Poverty lines o Normative nutritional requirement per person per day at some base point. o This is debated o 2400 cal (rural), 2100 cal (urban) o Nutrient requirement then needs to be translated to monetary terms. Poverty has declined as per NSSO estimates. However, recent committees like the Tendulkar committee have reviewed the method ology of measuring poverty and concluded that poverty levels are much higher tha n those presented through the NSSO estimates. Data on poverty reduction <put> Rural-urban and regional disparity o Even when poverty has declined there has been a marked disparity in its reduction in rural and urban areas as well as across different regions in the c ountry o --- states have poverty ratio below the national average o Significant reduction in Andhra, Gujarat, Haryana, Karnataka, Kerala, Ma harashtra, Punjab and WB o Most poor states of Bihar, MP, Orissa and UP have shown little progress in poverty reduction o Over 54 pc of Indias poor lived in these states in 2004-05 o These states have more poor than 26 sub-Saharan African countries accord

ing to the 2010 HDR o North-western states (P, H, HP, J&K) comprise only 2.2 pc of Indias poor. Rural urban disparity is minimal o More than half of Indias urban poor live in the states of Maharashtra, MP , UP and TN o There is no evidence for convergence in the incidence of poverty across the states of India o Coeffcient of variation (CV) of poverty reveals widening inter-state ine qualities in poverty reduction. Between 1993-94 and 2004-2005 CV increased from 36 to 54. Non-income dimensions of poverty o NFHS-3 and District level Household Survey on Reproductive Health 46 pc children under 3 and 49 pc children under 6 malnourished 79 pc children anaemic 59 pc deliveries did not take place in institutional agencies 32 pc have no electricity, 55 no toilet o Multidimensional Poverty Index Economic Growth and Poverty o Necessary for poverty reduction, but not sufficient o This is because Poverty is not only income poverty. There are various other unfreedoms. The MDP I captures this well Enabling role of basic education, good health, land reforms, social security The fruits of economic growth may not be automatically utilised to expand basic social services o Eliminating deprivation is as much a matter of public action as one mere ly of economic growth. o There has been no significant acceleration in the process of poverty red uction during 1980-2005 despite an acceleration in the growth of per capita GDP Since public action is required, schemes such as NREGS and SGSY are important Chronic Poverty o Higher among rural casual labour households than urban casual labour hou seholds o Varies significantly across social and occupational groups and is highes t for SCs Poverty in India vs other developing countries o China Poverty in China declined from 53 pc in 1981 to 8 pc in 2001. In the same period India reduced poverty by 17 pc India fares badly even on non-income dimensions of poverty like malnutrition, in fant mortality Concerns about equity and disparity remain in China too. India has fared better than China in achieving lower inequality Poverty and Planning/inclusive growth <see poverty notes> Strategy to deal with the problem o Recognize that poor are hetrogenous. So strategies need to be specifical ly designed to deal with chronic poor and other poor o Design safety nets o Strengthen livelihood and make them more productive Obsession with economic growth? <Notes from Sens article> Economic growth helps in advancing living standards and in battling poverty Growth, however, should not be taken to be an end in itself Sustainable economic growth Focus on development The good thing about economic growth is that it generates resources for the gove rnment to spend according to its priorities India-China comparision Parameter India China

LE 64.4 73.5 IMR 50 17 U-5 MR 66 19 Literacy 65 94 Mean years of schooling 4.4

7.5

Assessment of the growth experience: Poverty and Unemployment Poverty and unemployment are closely related High poverty has a multiplier effect on quality of life, deprivation, malnutriti on, illiteracy and low human resource development. Poverty Poverty lines o Normative nutritional requirement per person per day at some base point. o This is debated o 2400 cal (rural), 2100 cal (urban) o Nutrient requirement then needs to be translated to monetary terms. Poverty has declined as per NSSO estimates. However, recent committees like the Tendulkar committee have reviewed the method ology of measuring poverty and concluded that poverty levels are much higher tha n those presented through the NSSO estimates. Data on poverty reduction <put> Rural-urban and regional disparity o Even when poverty has declined there has been a marked disparity in its reduction in rural and urban areas as well as across different regions in the c ountry o --- states have poverty ratio below the national average o Significant reduction in Andhra, Gujarat, Haryana, Karnataka, Kerala, Ma harashtra, Punjab and WB o Most poor states of Bihar, MP, Orissa and UP have shown little progress in poverty reduction o Over 54 pc of Indias poor lived in these states in 2004-05 o These states have more poor than 26 sub-Saharan African countries accord ing to the 2010 HDR o North-western states (P, H, HP, J&K) comprise only 2.2 pc of Indias poor. Rural urban disparity is minimal o More than half of Indias urban poor live in the states of Maharashtra, MP , UP and TN o There is no evidence for convergence in the incidence of poverty across the states of India o Coeffcient of variation (CV) of poverty reveals widening inter-state ine qualities in poverty reduction. Between 1993-94 and 2004-2005 CV increased from 36 to 54. Non-income dimensions of poverty o NFHS-3 and District level Household Survey on Reproductive Health 46 pc children under 3 and 49 pc children under 6 malnourished 79 pc children anaemic 59 pc deliveries did not take place in institutional agencies 32 pc have no electricity, 55 no toilet o Multidimensional Poverty Index Economic Growth and Poverty o Necessary for poverty reduction, but not sufficient o This is because Poverty is not only income poverty. There are various other unfreedoms. The MDP I captures this well Enabling role of basic education, good health, land reforms, social security The fruits of economic growth may not be automatically utilised to expand basic social services o Eliminating deprivation is as much a matter of public action as one mere ly of economic growth.

o There has been no significant acceleration in the process of poverty red uction during 1980-2005 despite an acceleration in the growth of per capita GDP Since public action is required, schemes such as NREGS and SGSY are important Chronic Poverty o Higher among rural casual labour households than urban casual labour hou seholds o Varies significantly across social and occupational groups and is highes t for SCs Poverty in India vs other developing countries o China Poverty in China declined from 53 pc in 1981 to 8 pc in 2001. In the same period India reduced poverty by 17 pc India fares badly even on non-income dimensions of poverty like malnutrition, in fant mortality Concerns about equity and disparity remain in China too. India has fared better than China in achieving lower inequality Poverty and Planning/inclusive growth <see poverty notes> Strategy to deal with the problem o Recognize that poor are hetrogenous. So strategies need to be specifical ly designed to deal with chronic poor and other poor o Design safety nets o Strengthen livelihood and make them more productive Obsession with economic growth? <Notes from Sens article> Economic growth helps in advancing living standards and in battling poverty Growth, however, should not be taken to be an end in itself Sustainable economic growth Focus on development The good thing about economic growth is that it generates resources for the gove rnment to spend according to its priorities India-China comparision Parameter India China LE 64.4 73.5 IMR 50 17 U-5 MR 66 19 Literacy 65 94 Mean years of schooling 4.4

7.5

Assessment of the growth experience: Poverty and Unemployment Poverty and unemployment are closely related High poverty has a multiplier effect on quality of life, deprivation, malnutriti on, illiteracy and low human resource development. Poverty Poverty lines o Normative nutritional requirement per person per day at some base point. o This is debated o 2400 cal (rural), 2100 cal (urban) o Nutrient requirement then needs to be translated to monetary terms. Poverty has declined as per NSSO estimates. However, recent committees like the Tendulkar committee have reviewed the method ology of measuring poverty and concluded that poverty levels are much higher tha n those presented through the NSSO estimates. Data on poverty reduction <put> Rural-urban and regional disparity o Even when poverty has declined there has been a marked disparity in its reduction in rural and urban areas as well as across different regions in the c ountry o --- states have poverty ratio below the national average

o Significant reduction in Andhra, Gujarat, Haryana, Karnataka, Kerala, Ma harashtra, Punjab and WB o Most poor states of Bihar, MP, Orissa and UP have shown little progress in poverty reduction o Over 54 pc of Indias poor lived in these states in 2004-05 o These states have more poor than 26 sub-Saharan African countries accord ing to the 2010 HDR o North-western states (P, H, HP, J&K) comprise only 2.2 pc of Indias poor. Rural urban disparity is minimal o More than half of Indias urban poor live in the states of Maharashtra, MP , UP and TN o There is no evidence for convergence in the incidence of poverty across the states of India o Coeffcient of variation (CV) of poverty reveals widening inter-state ine qualities in poverty reduction. Between 1993-94 and 2004-2005 CV increased from 36 to 54. Non-income dimensions of poverty o NFHS-3 and District level Household Survey on Reproductive Health 46 pc children under 3 and 49 pc children under 6 malnourished 79 pc children anaemic 59 pc deliveries did not take place in institutional agencies 32 pc have no electricity, 55 no toilet o Multidimensional Poverty Index Economic Growth and Poverty o Necessary for poverty reduction, but not sufficient o This is because Poverty is not only income poverty. There are various other unfreedoms. The MDP I captures this well Enabling role of basic education, good health, land reforms, social security The fruits of economic growth may not be automatically utilised to expand basic social services o Eliminating deprivation is as much a matter of public action as one mere ly of economic growth. o There has been no significant acceleration in the process of poverty red uction during 1980-2005 despite an acceleration in the growth of per capita GDP Since public action is required, schemes such as NREGS and SGSY are important Chronic Poverty o Higher among rural casual labour households than urban casual labour hou seholds o Varies significantly across social and occupational groups and is highes t for SCs Poverty in India vs other developing countries o China Poverty in China declined from 53 pc in 1981 to 8 pc in 2001. In the same period India reduced poverty by 17 pc India fares badly even on non-income dimensions of poverty like malnutrition, in fant mortality Concerns about equity and disparity remain in China too. India has fared better than China in achieving lower inequality Poverty and Planning/inclusive growth <see poverty notes> Strategy to deal with the problem o Recognize that poor are hetrogenous. So strategies need to be specifical ly designed to deal with chronic poor and other poor o Design safety nets o Strengthen livelihood and make them more productive Obsession with economic growth? <Notes from Sens article> Economic growth helps in advancing living standards and in battling poverty Growth, however, should not be taken to be an end in itself Sustainable economic growth

 Focus on development The good thing about economic growth is that it generates resources for the gove rnment to spend according to its priorities India-China comparision Parameter India China LE 64.4 73.5 IMR 50 17 U-5 MR 66 19 Literacy 65 94 Mean years of schooling 4.4

7.5

Assessment of the growth experience: Poverty and Unemployment Poverty and unemployment are closely related High poverty has a multiplier effect on quality of life, deprivation, malnutriti on, illiteracy and low human resource development. Poverty Poverty lines o Normative nutritional requirement per person per day at some base point. o This is debated o 2400 cal (rural), 2100 cal (urban) o Nutrient requirement then needs to be translated to monetary terms. Poverty has declined as per NSSO estimates. However, recent committees like the Tendulkar committee have reviewed the method ology of measuring poverty and concluded that poverty levels are much higher tha n those presented through the NSSO estimates. Data on poverty reduction <put> Rural-urban and regional disparity o Even when poverty has declined there has been a marked disparity in its reduction in rural and urban areas as well as across different regions in the c ountry o --- states have poverty ratio below the national average o Significant reduction in Andhra, Gujarat, Haryana, Karnataka, Kerala, Ma harashtra, Punjab and WB o Most poor states of Bihar, MP, Orissa and UP have shown little progress in poverty reduction o Over 54 pc of Indias poor lived in these states in 2004-05 o These states have more poor than 26 sub-Saharan African countries accord ing to the 2010 HDR o North-western states (P, H, HP, J&K) comprise only 2.2 pc of Indias poor. Rural urban disparity is minimal o More than half of Indias urban poor live in the states of Maharashtra, MP , UP and TN o There is no evidence for convergence in the incidence of poverty across the states of India o Coeffcient of variation (CV) of poverty reveals widening inter-state ine qualities in poverty reduction. Between 1993-94 and 2004-2005 CV increased from 36 to 54. Non-income dimensions of poverty o NFHS-3 and District level Household Survey on Reproductive Health 46 pc children under 3 and 49 pc children under 6 malnourished 79 pc children anaemic 59 pc deliveries did not take place in institutional agencies 32 pc have no electricity, 55 no toilet o Multidimensional Poverty Index Economic Growth and Poverty o Necessary for poverty reduction, but not sufficient o This is because Poverty is not only income poverty. There are various other unfreedoms. The MDP

I captures this well Enabling role of basic education, good health, land reforms, social security The fruits of economic growth may not be automatically utilised to expand basic social services o Eliminating deprivation is as much a matter of public action as one mere ly of economic growth. o There has been no significant acceleration in the process of poverty red uction during 1980-2005 despite an acceleration in the growth of per capita GDP Since public action is required, schemes such as NREGS and SGSY are important Chronic Poverty o Higher among rural casual labour households than urban casual labour hou seholds o Varies significantly across social and occupational groups and is highes t for SCs Poverty in India vs other developing countries o China Poverty in China declined from 53 pc in 1981 to 8 pc in 2001. In the same period India reduced poverty by 17 pc India fares badly even on non-income dimensions of poverty like malnutrition, in fant mortality Concerns about equity and disparity remain in China too. India has fared better than China in achieving lower inequality Poverty and Planning/inclusive growth <see poverty notes> Strategy to deal with the problem o Recognize that poor are hetrogenous. So strategies need to be specifical ly designed to deal with chronic poor and other poor o Design safety nets o Strengthen livelihood and make them more productive Obsession with economic growth? <Notes from Sens article> Economic growth helps in advancing living standards and in battling poverty Growth, however, should not be taken to be an end in itself Sustainable economic growth Focus on development The good thing about economic growth is that it generates resources for the gove rnment to spend according to its priorities India-China comparision Parameter India China LE 64.4 73.5 IMR 50 17 U-5 MR 66 19 Literacy 65 94 Mean years of schooling 4.4

7.5