Skip to main content

World Bank's full marks to UPA? Poverty rates "sharply reduced" in 2005-12

By Rajiv Shah
A new World Bank study, released ahead of Prime Minister Narendra Modi completing two years in office, has said that the India’s national poverty rates fell much more sharply between 2005 and 2012, when the UPA government ruled the country, compared the decade between 1994 and 2005.
The study, carried out by Ambar Narayan and Rinku Murgai, and circulated as a policy research paper, says that poverty rates “decreased from 45 to 37 percent of the population between 1994 and 2005”, and “fell a further 15 percentage points in the next seven years, with similar patterns seen in both rural and urban areas”.
“This was a three‐fold increase in pace, as the country reduced poverty by 2.2 percentage points per year during 2005‐12, relative to the 0.7 percentage point per year decline between 1994 and 2005”, the World Bank study, titled “Looking Back on Two Decades of Poverty and Well-Being in India”, says.
Even during the period between 2005 and 2012, the study says, there were “two distinct phases: a moderate rate of poverty reduction till 2010 (which was still more than twice the rate of change seen between 1994 and 2005), followed by sharp and unprecedented reduction between 2010 and 2012.”
The study underlines, “Some of this volatility needs to be seen in the context of 2009‐10 being a year of particularly severe droughts, which is likely to have dampened the gains between 2005 and 2010 and conversely, accentuated the apparent progress from 2010 to 2012 as the economy rebounded to its ‘trend’ performance.”
In absolute numbers, the study, while accounting for the rise in population, says that the number of poor people remained “stubbornly high” at over 400 million in the eleven years between 1994 and 2005. However, in the next seven years, 137 million people (roughly 20 million per year) escaped poverty”, with 270 million people living in poverty in 2012.
“Poverty reduction in India was fueled by rising consumption levels, while consumption inequality remained more or less stable since 2005”, the study says, adding, “Consumption inequality measured by the Gini coefficient, after rising appreciably between 1994 and 2005, has remained almost unchanged in both rural and urban areas since then.”
“Consumption growth of the bottom 40% averaged an anemic 0.8 percent per year between 1994 and 2005, and increased four‐fold to 3.3 percent per year between 2005 and 2012, averaging more than 5 percent annually during the last two years of this period”, the study says.
“With upward mobility, the middle class has expanded sharply and is the fastest growing group between 2005 and 2012”, the study says, adding, “The middle class increased from 23 percent to 34 percent of the population.”
Coming to “non‐monetary dimensions of welfare”, the study says, “Between 2005 and 2012, significant improvements occurred in infant and child (under age 5) mortality rates, literacy rate among working adults, and the share of children under age 5 who are not underweight.”
“The decline in illiteracy among adults – from 38 percent in 2005 to 30 percent in 2012 – is matched by a 9 percent increase in the share of adults who have completed secondary education or more during this period”, the study says.
It adds, “This indicates a positive trend of skilling of the Indian labour force as secondary school enrollments and completion have increased over the years. This trend could also have an impact in terms of reducing vulnerability.”
However, it regrets, “Progress in access to piped water, sanitation and reducing stunting among children under age 5 has been much slower.”
---
Download study HERE

Comments

TRENDING

India's chemical industry: The missing piece of Atmanirbhar Bharat

By N.S. Venkataraman*  Rarely a day passes without the Prime Minister or a cabinet minister speaking about the importance of Atmanirbhar Bharat . The Start-up India scheme is a pillar in promoting this vision, and considerable enthusiasm has been reported in promoting start-up projects across the country. While these developments are positive, Atmanirbhar Bharat does not seem to have made significant progress within the Indian chemical industry . This is a matter of high concern that needs urgent and dispassionate analysis.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Remembering a remarkable rebel: Personal recollections of Comrade Himmat Shah

By Rajiv Shah   I first came in contact with Himmat Shah in the second half of the 1970s during one of my routine visits to Ahmedabad , my maternal hometown. I do not recall the exact year, but at that time I was working in Delhi with the CPI -owned People’s Publishing House (PPH) as its assistant editor, editing books and writing occasional articles for small periodicals. Himmatbhai — as I would call him — worked at the People’s Book House (PBH), the CPI’s bookshop on Relief Road in Ahmedabad.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Ahmedabad's Sabarmati riverfront under scrutiny after Subhash Bridge damage

By Rosamma Thomas*  Large cracks have appeared on Subhash Bridge across the Sabarmati in Ahmedabad, close to the Gandhi Ashram . Built in 1973, this bridge, named after Subhash Chandra Bose , connects the eastern and western parts of the city and is located close to major commercial areas. The four-lane bridge has sidewalks for pedestrians, and is vital for access to Ashram Road , Ellis Bridge , Gandhinagar and the Sabarmati Railway Station .

As 2024 draws nearer, threatening signs appear of more destructive wars

By Bharat Dogra  The four years from 2020 to 2023 have been very difficult and high risk years for humanity. In the first two years there was a pandemic and such severe disruption of social and economic life that countless people have not yet recovered from its many-sided adverse impacts. In the next two years there were outbreaks of two very high-risk wars which have worldwide implications including escalation into much wider conflicts. In addition there were highly threatening signs of increasing possibility of other very destructive wars. As the year 2023 appears to be headed for ending on a very grim note, there are apprehensions about what the next year 2024 may bring, and there are several kinds of fears. However to come back to the year 2020 first, the pandemic harmed and threatened a very large number of people. No less harmful was the fear epidemic, the epidemic of increasing mental stress and the cruel disruption of the life and livelihoods particularly among the weaker s...

No action yet on complaint over assault on lawyer during Tirunelveli public hearing

By A Representative   A day after a detailed complaint was filed seeking disciplinary action against ten lawyers in Tirunelveli for allegedly assaulting human rights lawyer Dr. V. Suresh, no action has yet been taken by the Bar Council of Tamil Nadu and Puducherry, according to the People’s Union for Civil Liberties (PUCL).

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...