{"id":4604,"date":"2022-10-07T00:00:00","date_gmt":"2022-10-07T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/07-10-2022\/poverty-and-shared-prosperity-report-2022\/"},"modified":"2022-10-07T00:00:00","modified_gmt":"2022-10-07T00:00:00","slug":"poverty-and-shared-prosperity-report-2022","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/07-10-2022\/poverty-and-shared-prosperity-report-2022","title":{"rendered":"Poverty and Shared Prosperity Report 2022"},"content":{"rendered":"<p><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>In News<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Recently, the <\/span><span style=\"font-size:12pt\"><strong>World Bank<\/strong><\/span><span style=\"font-size:12pt\"> has released the report titled Poverty and Shared Prosperity 2022: Correcting Course.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Major Highlights of the report<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Poverty<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The world is unlikely to meet the goal of ending extreme poverty by 2030.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">70 million people were plunged into poverty in 2020, the largest one-year increase since global poverty monitoring began in 1990.\u00a0<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">An estimated 719 million people subsisted on less than $2.15 a day by the end of 2020.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">COVID pandemic and the war in Ukraine<\/span><\/li>\n<\/ul>\n<p style=\"text-align:center\"><span style=\"font-size:12pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong><img decoding=\"async\" alt=\"C:UsersWELCOMEDesktopWB-Poverty-759.jpg\" src=\"https:\/\/lh5.googleusercontent.com\/cfbZIZRjz_YFzFarolDwx3O8PLyEK_QepH7XVN3B6TgNKo0KkGnvQuhq5jvUxBgmumwMPJ4vuehO_JcIbe-9ltY7cTzf2KVVqVurASFG7gDocUh-EUK5uSH35Gf7bTcz9f3hY7wNBo_Q4JTL9piYMx4pEuBNr3A34X6xrx_c2xEzXQ-RFbm9BOMtzw\" style=\"height:372.0; width:510.0\" \/><\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The global poverty reduction has been slowing down since 2015 but the Covid pandemic and the war in Ukraine have completely reversed the outcomes.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Inequalities<\/span><\/li>\n<\/ul>\n<p style=\"text-align:center\"><span style=\"font-size:12pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong><img decoding=\"async\" alt=\"C:UsersWELCOMEDesktopWB-Inequality-759.jpg\" src=\"https:\/\/lh4.googleusercontent.com\/2NqpI7PA5IxrcsezRMvqP6f4_8RcoX44ESuiXPTJpZ_MvyxQ3_4AmnRr1hnShVNvC3fUeo0z9zSblCr5ZCbg4UKSpjVsfMwGqaUJLheaHr9aV1nROIME9-O_aO2UEX1j6eBUMUbUDSlsetQ2mwlIVjDtt3blJGljxXNeeo4YnziIIqdlkGbYxw7VjQ\" style=\"height:348.0; width:453.0\" \/><\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">They too <\/span><span style=\"font-size:12pt\"><strong>have risen.<\/strong><\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The poorest people bore the steepest costs of the pandemic: income losses averaged 4 per cent for the poorest 40 per cent, double the losses of the wealthiest 20 percent of the income distribution.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Global inequality rose for the first time in decades.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Global median income<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">It declined by 4 per cent in 2020, the first decline since measurements of median income began in 1990.<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The median divides the income distribution into two equal parts: one-half of the cases falling below the median income and one-half above the median.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">India\u2019s poverty levels<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Poverty has gone up in India too.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Previous estimates suggested a poverty headcount rate at the US$1.90 poverty line of 10.4 percent in 2017.<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The latest estimate based on <\/span><span style=\"font-size:12pt\"><strong>Sinha Roy and van der Weide (2022)<\/strong><\/span><span style=\"font-size:12pt\"> shows that poverty at the US$1.90 poverty line was 13.6 percent in 2017.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Major challenges as cited by the report<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\"><strong>The report uses data from the Centre for Monitoring Indian Economy (CMIE), because there are no official estimates of poverty available since 2011<\/strong><\/span><span style=\"font-size:12pt\">.<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The most recent survey data released by the National Sample Survey Office of India used to measure poverty is the 2011\/12 National Sample Survey (NSS).\u00a0<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The government decided not to release the 2017\/18 NSS round because of concerns about data quality.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Biggest poor population<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Lack of data could not have left India out of the poverty estimates simply because India is one of the countries with the biggest poor population.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Poverty and Shared Prosperity 2020<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Because of India\u2019s size, the lack of recent survey data for the country significantly affects the measurement of global poverty, as was evident in Poverty and Shared Prosperity 2020.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Way forward<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Fiscal policy<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Considering the initial country conditions in terms of fiscal space it does offer opportunities for policy makers in developing economies to step up the fight against poverty and inequality.<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The average poverty rate in developing economies would have been 2.4 percentage points higher without a fiscal response.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Government spending<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">It proved far more beneficial to poverty reduction in the wealthiest countries, which generally managed to fully offset Covid-19\u2019s impact on poverty through fiscal policy and other emergency support measures.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Resources<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Developing economies had fewer resources and therefore spent less and achieved less.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Upper-middle-income economies offset just 50 per cent of the poverty impact.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Low- and lower-middle income economies offset barely a quarter of the impact.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div style=\"margin-left:13px\">\n<table cellspacing=\"0\" style=\"border-collapse:collapse; border:none; width:596px\">\n<tbody>\n<tr>\n<td style=\"border-bottom:1px solid #000000; border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; vertical-align:top; width:596px\">\n<p><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>What is Poverty?<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">It is a multidimensional concept. It can be defined as a\u00a0<\/span><span style=\"font-size:12pt\"><strong>condition in which an individual or household<\/strong><\/span><span style=\"font-size:12pt\">\u00a0<\/span><span style=\"font-size:12pt\"><strong>lacks the financial resource<\/strong><\/span><span style=\"font-size:12pt\">s to afford a basic minimum standard of living.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Economists and policymakers estimate \u201cabsolute\u201d poverty as the shortfall in c<\/span><span style=\"font-size:12pt\"><strong>onsumption expenditure<\/strong><\/span><span style=\"font-size:12pt\">\u00a0from a threshold called the\u00a0<\/span><span style=\"font-size:12pt\"><strong>\u201cpoverty line\u201d.\u00a0<\/strong><\/span><\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Committees in India so far on poverty estimation<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The working group of 1962<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">V N Dandekar and N Rath in 1971<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Y K Alagh in 1979<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">\u00a0D T Lakdawala in 1993<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">\u00a0Suresh Tendulkar in 2009<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">\u00a0C Rangarajan in 2014.\u00a0<\/span>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The government did not take a call on the report of the Rangarajan Committee; therefore, poverty is measured using the\u00a0<\/span><span style=\"font-size:12pt\"><strong>Tendulkar poverty line<\/strong><\/span><span style=\"font-size:12pt\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Government\u2019s initiatives in this context<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Deendayal Antyodaya Yojana \u2013 National Rural Livelihoods Mission (DAY-NRLM)<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">\u00a0Deen Dayal Upadhyay \u2013 Gramin Kaushalya Yojana (DDU-GKY)<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Pradhan Mantri Awaas Yojana \u2013 Gramin (PMAY-G)<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Pradhan Mantri Gram Sadak Yojana (PMGSY)<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Shyama Prasad Mukherjee National RuRBAN Mission (SPMRM) and National Social Assistance Programme (NSAP), and programmes of Department of Land Resources, viz., Watershed Development Component of Pradhan Mantri Krishi Sinchai Yojana (WDC-PMKSY).<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Pradhan Mantri Jan Dhan Yojana<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Schemes for Financial Assistance:<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Pradhan Mantri Kisan Samman Nidhi<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Pradhan Mantri Jan Dhan Yojana<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Integrated Rural Development Programme (IRDP)<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><span style=\"font-size:12pt\"><span style=\"font-family:\"Book Antiqua\",serif\">Source: <\/span><\/span><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/world-bank-pverty-report-india-inequality-8193048\/\" style=\"text-decoration-line:none\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size:12pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><span style=\"color:#1155cc\">IE<\/span><\/span><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News Recently, the World Bank has released the report titled Poverty and Shared Prosperity 2022: Correcting Course. Major Highlights of the report Poverty The world is unlikely to meet the goal of ending extreme poverty by 2030. 70 million people were plunged into poverty in 2020, the largest one-year increase since global poverty monitoring [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4605,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[31,30,26,46],"class_list":["post-4604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-government-policies-interventions","tag-gs-2","tag-gs-3","tag-indian-economy-related-issues"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/5713899Screenshot_20221007-123332_Android System.jpg","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/4604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=4604"}],"version-history":[{"count":0,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/4604\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/4605"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=4604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=4604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=4604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}