India’s stingy definition of poverty _ $12.75 a month for city dwellers _ called little help, Associated Press, May 27, 2011, Washington Post: “Every day, through scorching summers and chilly winters, Himmat pedals his bicycle rickshaw through New Delhi’s crowded streets, earning barely enough to feed his family. But to India’s government he is not poor – not even close. The 5,000 rupees ($110) he earns a month pays for a tiny room with a single light bulb and no running water for his family of four. After buying just enough food to keep his family from starving, there is nothing left for medicine, new clothes for his children or savings. Still, Himmat is way above India’s poverty line. Earlier this month, India’s Planning Commission, which helps sets economic policy, told the Supreme Court that the poverty line for the nation’s cities was 578 rupees ($12.75) per person a month – or 2,312 rupees ($51.38) for Himmat’s family of four. For rural India, it’s even lower at about 450 rupees ($9.93)…”
Tag: India
Poverty Measurement – India
- BPL poverty cap placed at 46%, By K. Balchand, May 19, 2011, The Hindu: “The Below the Poverty Line (BPL) census, approved by the Union Cabinet on Thursday, will be an exercise in identifying households that will fit the bill within the poverty cap of 46 per cent of the rural population of India. The identification of the 46 per cent poverty cap, estimated by the Planning Commission, will be done through a set of automatic exclusion and automatic inclusion criteria, and the remaining households will be classified through seven assigned deprivation indicators. At the same time, State-wise caps based on the S.D. Tendulkar methodology have been allowed for better targeting of those living below the poverty line. The 46 per cent cap is lower than the 50 per cent suggested by the N.C. Saxena Committee. Officials have remained silent on the displeasure of the Supreme Court on placing a cap on the BPL list…”
- India ‘redefines’ poverty for new survey, May 19, 2011, BBC News: “India’s cabinet has approved a proposal for a survey to identify people living below the poverty line, which also redefines what constitutes poverty. It will classify the rural poor into ‘destitutes, manual scavengers and primitive tribal groups’. Urban poor will be defined as those in vulnerable shelters, low-paid jobs and homes headed by women or children. The survey, to be conducted alongside a caste census later this year, will help identify those who need state aid. There are various estimates on the exact number of poor in India…”
Microfinance in India
- Microfinance struggles to restore its reputation, By Erika Kinetz (AP), March 7, 2011, Boston Globe: “Long heralded as a way to lift the downtrodden out of poverty, microfinance is under a cloud. The stories of lives being changed by a $27 microloan and picture perfect scenes of smiling women with colorful handlooms, empowered by affordable credit, have been replaced by headlines about borrowers driven to suicide. At best, microfinance seems to be failing to achieve its most noble goal: poverty alleviation. At worst, some lenders are contributing to a cycle of indebtedness and abuse, just like the loan sharks they sought to replace. Critics say the industry has grown too quickly for its own good, with too much rapaciousness and too little regulation. That has fostered a breakdown in lending discipline, with multiple loans to overextended borrowers, and allowed some unscrupulous players to thrive…”
- India’s poor need help to help themselves, By Sarika Bansal, March 7, 2011, The Guardian: “Until recently, microfinance has been the golden child of international development. Microfinance companies would lend small amounts of money to poor women who would, in the ideal scenario, use them to start small businesses. Their interest rates were typically lower than loan sharks’ but still high enough to make a profit. Around the world, development experts believed microfinance was an ideal way to alleviate poverty, a smart way to ‘do good’ while also ‘doing well’. How times have changed. In the last few months, many people have become newly critical. In November, politicians in the southern Indian state of Andhra Pradesh started making bold claims about how microfinance’s crushing interest rates and strongman tactics were, among other things, leading to suicide among over-indebted borrowers…”