POVERTY: World Bank report on poverty, including India’s

Source: POVERTY: World Bank report on poverty, including India’s

The World Bank has released a new report on poverty. From the press release:

New data show 1.4 billion live on less than $1.25 a day, but progress against poverty remains strong

WASHINGTON, DC, August 26, 2008 – The World Bank said improved economic estimates showed there were more poor people around the world than previously thought while also revealing big successes in the fight to overcome extreme poverty.

The new estimates, which reflect improvements in internationally comparable price data, offer a much more accurate picture of the cost of living in developing countries and set a new poverty line of US$1.25 a day. They are based on the results of the 2005 International Comparison Program (ICP), released earlier this year.

In a new paper, “The developing world is poorer than we thought but no less successful in the fight against poverty,” Martin Ravallion and Shaohua Chen revise estimates of poverty since 1981, finding that 1.4 billion people (one in four) in the developing world were living below US$1.25 a day in 2005, down from 1.9 billion (one in two) in 1981.

India is poorer than we thought by international standards, but no less successful against poverty

Read the full report here. Post your comments below.

The WB site has a section on India. Excerpts from Revised Poverty Estimates: What does this mean for India?

Is India getting poorer?

No, not all. India has made steady progress against poverty. A look at the 25-year period between 1981 and 2005 shows that India has moved from having 60 percent of its people living on less than $ 1.25 a day to 42 percent. The number of people living below a dollar a day (2005 prices) has also come down from 42 percent to 24 percent over the same period. Both measures show that India has maintained even progress against poverty since the 1980s, with the poverty rate declining at a little under one percentage point per year.

But, although India has had significant success in reducing the number of the poorest of its poor – those living on less than a dollar a day ??? there are still a huge number of people living just above this line of deprivation. This is most evident when we study absolute numbers. The number of people living below a dollar a day is down from 296 million in 1981 to 267 million people in 2005. However, the number of poor below $1.25 a day has increased from 421 million in 1981 to 456 million in 2005. This the biggest challenge facing India today.

A Times of India report highlights these statistics:

India is home to roughly one-third of all poor people in the world. It also
has a higher proportion of its population living on less than $2 per day than even
sub-Saharan Africa.

That is the sobering news coming out of the World Bank’s latest estimates on global
poverty. The fine print of the estimates also shows that the rate of decline of
poverty in India was faster between 1981 and 1990 than between 1990 and 2005. This is
likely to give fresh ammunition to those who maintain that economic reforms, which
started in 1991, have failed to reduce poverty at a faster rate.

Meanwhile, there was some confusion in the coverage of this report. Compare these two headlines. One is from IANS via CNN-IBN. The other is from Business Standard via Rediff.com – click on the stories below to go to the respective sites…

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4 Comments

Filed under Development, IFIs, Poverty

4 responses to “POVERTY: World Bank report on poverty, including India’s

  1. asma

    here is a poem for all us development wallahs…

    The Development Set
    By Ross Coggins

    Excuse me, friends, I must catch my jet-
    I’m off to join the Development Set;
    My bags are packed, and I’ve had all my shots,
    I have travelers’ checks, and pi;;s for the trots

    The Development Set is bright and noble,
    Our thoughts are deep and our vision global;
    Although we move with the better classes,
    Our thoughts are always with the masses.

    In Sheraton hotels in scattered nations,
    We damn multinational corporations;
    Injustice seems so easy to protest,
    In such seething hotbeds of social rest.

    We discuss malnutrition over steaks
    And plan hunger talks during coffee breaks.
    Whether Asian floods or African drought,
    We face each issue with an open mouth.

    We bring in consultants whose circumlocution
    Raises difficulties for every solution-
    Thus guaranteeing continued good eating
    By showing the need for another meeting.

    The language of the Development Set
    Stretches the English alphabet;
    We use swell eords like ‘epigenetic’,
    ‘Micro’, ‘Macro’. and ‘logarithmetic’.

    Development Set homes are extremely chic,
    Full of carvings, curios and draped with batik.
    Eye-level photographs subtly assure
    That your host is at home with the rich and the poor.

    Enough of these verses — on with the mission!
    Our task is as broad as the human condition!
    Just parry to God the biblical promise is true:
    The poor ye shall always have with you.

    From Graham Hancock’s book “Lords of Poverty”

  2. Poverty in India has been a reality of the unequal distribution of wealth in a caste-ridden society not taken care of by politicians and administrators in a so-called democracy which by all standard has turned to be a plutocracy under the dictation of the Indian capitalists and higher middle-class people who adumbrate all about India,s progress in different fields of human resource development but selectively neglect the peasants, laboureres and the downtrodden lot in the country.

  3. pradeep

    we are crossed 62 years of ours independence.Every year Central & State Government projecting Crores rupees of budget for checked poverty are we really success in this mission.i think we shold think how our country,our peoples will be comes out from the cottage of poverty.

  4. arun tripathi

    i need data on bpl family income critaria fixed by government of inda

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