India Successfully Eradicates Extreme Poverty: Report
Introduction
According to a commentary published by economists Surjit Bhalla and Karan Bhasin in The Brookings Institution, India has successfully eradicated extreme poverty. This achievement is based on the recently disclosed consumption expenditure data for the year 2022-23, which reveals a notable annual growth of 2.9% in real per capita consumption since 2011-12.
Growth Rates
- Rural areas experienced a significantly higher growth rate of 3.1% compared to urban areas at 2.6%.
Reduction in Inequality
The commentary highlights an unprecedented decline in both urban and rural inequality. The Gini coefficient, which measures income distribution inequality, reflects substantial reductions. In urban areas, the Gini coefficient decreased from 36.7 to 31.9, while in rural areas, it decreased from 28.7 to 27.0.
Combination of Economic Growth and Reduction in Inequality
The economists assert that the combination of robust economic growth and substantial reduction in inequality has effectively eliminated poverty in India.
Decline in Headcount Poverty Ratio (HCR)
The Headcount Poverty Ratio (HCR) has significantly decreased from 12.2% in 2011-12 to 2% in 2022-23, equivalent to an annual decrease of 0.93 percentage points. Rural poverty now stands at 2.5%, while urban poverty has diminished to 1%.
Consideration of Government-Supplied Benefits
The commentary acknowledges that these estimates do not consider government-supplied free food (wheat and rice) to approximately two-thirds of the population, along with the utilization of public health and education services.
Rapid Pace of Poverty Reduction
The authors underline the remarkable pace of poverty reduction, noting that a similar decline in the past took 30 years, whereas the current achievement occurred over just 11 years.
Reassessing the Poverty Line
With extreme poverty nearly eradicated, the economists propose that India should now reassess its poverty line. This provides an opportunity to redefine social protection programs and argue for a higher poverty line to better identify intended beneficiaries and offer increased support to those genuinely in need.
Conclusion
The commentary concludes by affirming that official data confirms India’s elimination of extreme poverty, which is a significant milestone with positive implications for global poverty rates.
(With inputs from agencies)
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day | Headcount Poverty Ratio (HCR) |
| SDG 10: Reduced Inequalities | 10.1 By 2030, progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average | Gini coefficient |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
The SDGs addressed in the article are SDG 1: No Poverty and SDG 10: Reduced Inequalities.
2. What specific targets under those SDGs can be identified based on the article’s content?
The specific targets identified based on the article’s content are:
– Target 1.1: Eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day.
– Target 10.1: Progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
The article mentions two indicators that can be used to measure progress towards the identified targets:
– Headcount Poverty Ratio (HCR): The decline in the HCR from 12.2% in 2011-12 to 2% in 2022-23 indicates progress in eradicating extreme poverty.
– Gini coefficient: The reduction in the Gini coefficient from 36.7 to 31.9 in urban areas and from 28.7 to 27.0 in rural areas reflects a decline in inequality.
The table below summarizes the findings:
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day | Headcount Poverty Ratio (HCR) |
| SDG 10: Reduced Inequalities | 10.1 By 2030, progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average | Gini coefficient |
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Source: wionews.com
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