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You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
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Hunger / HDI | Poverty and inequality </title>
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<h1 class="cat-box-title">Poverty and inequality</h1>
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<h2 style="font-weight: bold; font-size: 13px;">What's Inside</h2>
<ul class="whatsinside">
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#poverty-and-shared-prosperity-2022-correcting-course-released-in-october-2022">Poverty and Shared Prosperity 2022: Correcting Course (released in October 2022)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#malcolm-adiseshiah-memorial-lecturenbsptitled-39understanding-inequality39-released-in-2022-delivered-by-prof-reetika-khera">Malcolm Adiseshiah Memorial Lecture titled 'Understanding Inequality' (released in 2022) delivered by Prof. Reetika Khera</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#inequality-kills-released-in-january-2022">Inequality Kills (released in January 2022)</a>
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<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#inequality-kills-india-supplement-released-in-january-2022">Inequality Kills -- India Supplement (released in January 2022)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=3#world-inequality-report-2022-released-on-7-december-2021">World Inequality Report 2022 (released on 7 December, 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=3#the-pandemic-stalls-growth-in-the-global-middle-class-pushes-poverty-up-sharply-released-on-march-18th-2021">The Pandemic Stalls Growth in the Global Middle Class, Pushes Poverty Up Sharply (released on March 18th, 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=4#nss-77th-round-report-titled-all-india-debt-and-investment-survey-2019-january-december-2019-released-in-september-2021">NSS 77th Round Report titled All India Debt and Investment Survey 2019, January-December 2019 (released in September 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=5#global-economic-prospects-gep-released-in-january-2021">Global Economic Prospects (GEP) (released in January 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=5#global-multidimensional-poverty-index-2020-released-in-july-2020">Global Multidimensional Poverty Index 2020 (released in July 2020)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=5#global-multidimensional-poverty-index-2019-illuminating-inequalities-released-in-july-2019">Global Multidimensional Poverty Index 2019: Illuminating Inequalities (released in July, 2019)</a>
</li>
</ul>
<div><a href="javascript:void(0)" id="morewhatsinsidelink" onClick="javascript:$('#morewhatsinside').show();$('#morewhatsinsidelink').hide();$('#lesswhatsinsidelink').show();">More</a></div>
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<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=6#wealth-inequality-class-and-caste-in-india-1961-2012">Wealth Inequality, Class and Caste in India 1961-2012</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=7#global-mpi-2018-report">Global MPI 2018 report</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=8#ending-extreme-poverty-sharing-prosperity-progress-and-policies-released-in-october-2015">Ending Extreme Poverty, Sharing Prosperity: Progress and Policies (released in October 2015)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=9#socio-economic-and-caste-census-2011-released-in-july-2015">Socio Economic and Caste Census 2011 (released in July 2015)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=10#household-consumer-expenditure-across-socio-economic-groups-2011-12-published-in-february-2015">Household Consumer Expenditure across Socio-Economic Groups 2011-12 (published in February 2015) </a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=11#addressing-inequality-in-south-asia-published-in-january-2015">Addressing Inequality in South Asia (published in January 2015)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=12#rangarajan-committee-report-on-measurement-of-poverty-2014">Rangarajan Committee Report on Measurement of Poverty 2014</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=13#global-multidimensional-poverty-index-mpi-2014">Global Multidimensional Poverty Index (MPI) 2014</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=14#humanity-divided-confronting-inequality-in-developing-countries-undp-january-2014">Humanity divided: Confronting inequality in Developing Countries, UNDP (January, 2014)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=14#from-poverty-to-empowerment-indiarsquos-imperative-for-jobs-growth-and-effective-basic-services-2014">From poverty to empowerment: India’s imperative for jobs, growth, and effective basic services (2014)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=15#key-indicators-of-urban-slums-in-india-july-2012-to-december-2012">Key Indicators of Urban Slums in India (July 2012 to December 2012)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=15#appraisal-of-bpl-criteria">Appraisal of BPL Criteria</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=15#press-note-on-poverty-estimates-2011-12">Press Note on Poverty Estimates, 2011-12</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=16#key-indicators-of-household-consumer-expenditure-in-india-68th-round-nss-2011-12">Key Indicators of Household Consumer Expenditure in India: 68th round NSS (2011-12)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=17#the-state-of-the-poor-where-are-the-poor-and-where-are-the-poorest-2013">"The State of the Poor: Where are the Poor and Where are the Poorest?" (2013)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=17#report-of-the-expert-group-to-recommend-the-detailed-methodology-for-identification-of-families-living-below-poverty-line-in-the-urban-areas">Report of the Expert Group to Recommend the Detailed Methodology for Identification of Families Living below Poverty Line in the Urban Areas</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=18#press-note-on-poverty-estimates-2009-10">Press Note on Poverty Estimates, 2009-10</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=19#born-equal-how-reducing-inequality-could-give-our-children-a-better-future-2012">Born Equal: How reducing inequality could give our children a better future (2012)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=20#unctad-2012-report-entitled-policies-for-inclusive-and-balanced-growth">UNCTAD 2012 report entitled Policies for Inclusive and Balanced Growth</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=21#asian-development-outlook-2012-confronting-rising-inequality-in-asia">Asian Development Outlook 2012: Confronting Rising Inequality in Asia</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=22#suresh-tendulkar-committee-report-on-poverty">Suresh Tendulkar Committee Report on poverty</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=22#11th-five-year-plan-of-the-planning-commission">11th Five-Year Plan of the Planning Commission</a>
</li>
</ul>
<div><a style="display:none" href="javascript:void(0)" id="lesswhatsinsidelink" onClick="javascript:$('#morewhatsinside').hide();$('#morewhatsinsidelink').show();$('#lesswhatsinsidelink').hide();">Less</a></div>
</div>
</div>
</div>
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<div>
<br /><br />According to the ADB report entitled: <a name="asian-development-outlook-2012-confronting-rising-inequality-in-asia">Asian Development Outlook 2012: Confronting Rising Inequality in Asia</a>, <a href="http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf" title="http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf">http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf</a>:<br /><br />• Poverty as measured by head count ratio may have dropped in India by 7.3 percentage points from 37.2% in 2004-05 to 29.8% in 2009-10 but the decline could have been much more had the country been more equal. To the dismay of pro market economists, the report tells that had inequality remained unchanged from the 1990s to the 2000s, the poverty headcount rate in India could have been brought down to 29.5% in 2008, instead of the actual 32.7%.<br /><br />• It is a widely held belief that growth ultimately trickles down to the poor living at the bottom, thus reducing poverty. However, the new report finds that rising inequality due to growth has affected poverty reduction.<br /><br />• People’s Republic of China (PRC) and India—the world’s two most populous countries—with annual GDP growth rates of 9.9% and 6.4%, respectively have witnessed rise in inequality from the early 1990s to the late 2000s. During the period of economic reforms, Gini coefficient*—a common measure of inequality—deteriorated from 32.4 in 1990 to 43.4 in 2008 in the PRC and from 32.5 in 1993 to 37 in 2010 in India.<br /><br />• In India, the urban Gini grew from 34.4 in 1993 to 39.3 in 2010, much faster than the contemporaneous growth of the rural Gini, from 28.6 to 30.5. India’s rural inequality is lower and urban inequality is higher than in the PRC and, unlike the PRC but like most developing countries, India’s urban inequality is higher than its rural inequality.<br /><br />• The yawning gap between the rich and the poor in India could be observed from the ratio of the per capita expenditure of the top 20% to that of the bottom 20%. The quintile ratio has increased from 4.8 in 1993 to 5.7 in 2010. In India, the annual mean per capita expenditure growth was only 1.1% for the bottom quintile but 1.9% for the top quintile during 1993-2010. Rising inequality in India has been driven by income redistribution to the top 20%, at a cost to the bottom 80%.<br /><br />• The average annual growth rate of labor productivity was 7.4% during 1990–2007, while average annual real wage growth rate was only 2%. Gains in productivity were not passed on to wages and, consequently, the labor share of India’s organized manufacturing sector declined from 37% in 1990 to 22% in mid 2007 in India.<br /><br />• Wage employment elasticity of growth fell from 0.44 in 1991–2001 to 0.28 in 2001–2011 in PRC and from 0.53 to 0.41 in the case of India thus showing jobless growth.<br /><br />• Income inequality is caused by inequality of opportunity in developing Asia. Inequality of opportunity arises out of unequal access to public services, especially education and health. In some Asian countries including India where the average proportion of out-of-school primary school-age children was about 20% in 1999–2003, children from the poorest quintile were three times as likely as those from the richest quintile to be out of school. Infant mortality rates among the poorest households in some Asian countries were double or treble the rates among the richest households. The chance of a poor infant dying at birth was more than 10 times higher than for an infant born to a rich family in Asia.<br /><br />• Although average Gini coefficient across developing Asian economies (38) was lower than that in Latin American economies (52), most Latin American countries have seen narrowing inequality in the last 2 decades.<br /><br /><em>* Note: A Gini of zero denotes absolute equality, while a value of 1 (or 100 on the percentile scale) means absolute inequality.</em><br /><br /> <br>
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<h1 class="cat-box-title">Poverty and inequality</h1>
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<h2 style="font-weight: bold; font-size: 13px;">What's Inside</h2>
<ul class="whatsinside">
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#poverty-and-shared-prosperity-2022-correcting-course-released-in-october-2022">Poverty and Shared Prosperity 2022: Correcting Course (released in October 2022)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#malcolm-adiseshiah-memorial-lecturenbsptitled-39understanding-inequality39-released-in-2022-delivered-by-prof-reetika-khera">Malcolm Adiseshiah Memorial Lecture titled 'Understanding Inequality' (released in 2022) delivered by Prof. Reetika Khera</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#inequality-kills-released-in-january-2022">Inequality Kills (released in January 2022)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#inequality-kills-india-supplement-released-in-january-2022">Inequality Kills -- India Supplement (released in January 2022)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=3#world-inequality-report-2022-released-on-7-december-2021">World Inequality Report 2022 (released on 7 December, 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=3#the-pandemic-stalls-growth-in-the-global-middle-class-pushes-poverty-up-sharply-released-on-march-18th-2021">The Pandemic Stalls Growth in the Global Middle Class, Pushes Poverty Up Sharply (released on March 18th, 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=4#nss-77th-round-report-titled-all-india-debt-and-investment-survey-2019-january-december-2019-released-in-september-2021">NSS 77th Round Report titled All India Debt and Investment Survey 2019, January-December 2019 (released in September 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=5#global-economic-prospects-gep-released-in-january-2021">Global Economic Prospects (GEP) (released in January 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=5#global-multidimensional-poverty-index-2020-released-in-july-2020">Global Multidimensional Poverty Index 2020 (released in July 2020)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=5#global-multidimensional-poverty-index-2019-illuminating-inequalities-released-in-july-2019">Global Multidimensional Poverty Index 2019: Illuminating Inequalities (released in July, 2019)</a>
</li>
</ul>
<div><a href="javascript:void(0)" id="morewhatsinsidelink" onClick="javascript:$('#morewhatsinside').show();$('#morewhatsinsidelink').hide();$('#lesswhatsinsidelink').show();">More</a></div>
<ul class="whatsinside" id="morewhatsinside" style="display:none">
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=6#wealth-inequality-class-and-caste-in-india-1961-2012">Wealth Inequality, Class and Caste in India 1961-2012</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=7#global-mpi-2018-report">Global MPI 2018 report</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=8#ending-extreme-poverty-sharing-prosperity-progress-and-policies-released-in-october-2015">Ending Extreme Poverty, Sharing Prosperity: Progress and Policies (released in October 2015)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=9#socio-economic-and-caste-census-2011-released-in-july-2015">Socio Economic and Caste Census 2011 (released in July 2015)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=10#household-consumer-expenditure-across-socio-economic-groups-2011-12-published-in-february-2015">Household Consumer Expenditure across Socio-Economic Groups 2011-12 (published in February 2015) </a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=11#addressing-inequality-in-south-asia-published-in-january-2015">Addressing Inequality in South Asia (published in January 2015)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=12#rangarajan-committee-report-on-measurement-of-poverty-2014">Rangarajan Committee Report on Measurement of Poverty 2014</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=13#global-multidimensional-poverty-index-mpi-2014">Global Multidimensional Poverty Index (MPI) 2014</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=14#humanity-divided-confronting-inequality-in-developing-countries-undp-january-2014">Humanity divided: Confronting inequality in Developing Countries, UNDP (January, 2014)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=14#from-poverty-to-empowerment-indiarsquos-imperative-for-jobs-growth-and-effective-basic-services-2014">From poverty to empowerment: India’s imperative for jobs, growth, and effective basic services (2014)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=15#key-indicators-of-urban-slums-in-india-july-2012-to-december-2012">Key Indicators of Urban Slums in India (July 2012 to December 2012)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=15#appraisal-of-bpl-criteria">Appraisal of BPL Criteria</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=15#press-note-on-poverty-estimates-2011-12">Press Note on Poverty Estimates, 2011-12</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=16#key-indicators-of-household-consumer-expenditure-in-india-68th-round-nss-2011-12">Key Indicators of Household Consumer Expenditure in India: 68th round NSS (2011-12)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=17#the-state-of-the-poor-where-are-the-poor-and-where-are-the-poorest-2013">"The State of the Poor: Where are the Poor and Where are the Poorest?" (2013)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=17#report-of-the-expert-group-to-recommend-the-detailed-methodology-for-identification-of-families-living-below-poverty-line-in-the-urban-areas">Report of the Expert Group to Recommend the Detailed Methodology for Identification of Families Living below Poverty Line in the Urban Areas</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=18#press-note-on-poverty-estimates-2009-10">Press Note on Poverty Estimates, 2009-10</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=19#born-equal-how-reducing-inequality-could-give-our-children-a-better-future-2012">Born Equal: How reducing inequality could give our children a better future (2012)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=20#unctad-2012-report-entitled-policies-for-inclusive-and-balanced-growth">UNCTAD 2012 report entitled Policies for Inclusive and Balanced Growth</a>
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<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=21#asian-development-outlook-2012-confronting-rising-inequality-in-asia">Asian Development Outlook 2012: Confronting Rising Inequality in Asia</a>
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<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=22#suresh-tendulkar-committee-report-on-poverty">Suresh Tendulkar Committee Report on poverty</a>
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<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=22#11th-five-year-plan-of-the-planning-commission">11th Five-Year Plan of the Planning Commission</a>
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<div><a style="display:none" href="javascript:void(0)" id="lesswhatsinsidelink" onClick="javascript:$('#morewhatsinside').hide();$('#morewhatsinsidelink').show();$('#lesswhatsinsidelink').hide();">Less</a></div>
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<br /><br />According to the ADB report entitled: <a name="asian-development-outlook-2012-confronting-rising-inequality-in-asia">Asian Development Outlook 2012: Confronting Rising Inequality in Asia</a>, <a href="http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf" title="http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf">http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf</a>:<br /><br />• Poverty as measured by head count ratio may have dropped in India by 7.3 percentage points from 37.2% in 2004-05 to 29.8% in 2009-10 but the decline could have been much more had the country been more equal. To the dismay of pro market economists, the report tells that had inequality remained unchanged from the 1990s to the 2000s, the poverty headcount rate in India could have been brought down to 29.5% in 2008, instead of the actual 32.7%.<br /><br />• It is a widely held belief that growth ultimately trickles down to the poor living at the bottom, thus reducing poverty. However, the new report finds that rising inequality due to growth has affected poverty reduction.<br /><br />• People’s Republic of China (PRC) and India—the world’s two most populous countries—with annual GDP growth rates of 9.9% and 6.4%, respectively have witnessed rise in inequality from the early 1990s to the late 2000s. During the period of economic reforms, Gini coefficient*—a common measure of inequality—deteriorated from 32.4 in 1990 to 43.4 in 2008 in the PRC and from 32.5 in 1993 to 37 in 2010 in India.<br /><br />• In India, the urban Gini grew from 34.4 in 1993 to 39.3 in 2010, much faster than the contemporaneous growth of the rural Gini, from 28.6 to 30.5. India’s rural inequality is lower and urban inequality is higher than in the PRC and, unlike the PRC but like most developing countries, India’s urban inequality is higher than its rural inequality.<br /><br />• The yawning gap between the rich and the poor in India could be observed from the ratio of the per capita expenditure of the top 20% to that of the bottom 20%. The quintile ratio has increased from 4.8 in 1993 to 5.7 in 2010. In India, the annual mean per capita expenditure growth was only 1.1% for the bottom quintile but 1.9% for the top quintile during 1993-2010. Rising inequality in India has been driven by income redistribution to the top 20%, at a cost to the bottom 80%.<br /><br />• The average annual growth rate of labor productivity was 7.4% during 1990–2007, while average annual real wage growth rate was only 2%. Gains in productivity were not passed on to wages and, consequently, the labor share of India’s organized manufacturing sector declined from 37% in 1990 to 22% in mid 2007 in India.<br /><br />• Wage employment elasticity of growth fell from 0.44 in 1991–2001 to 0.28 in 2001–2011 in PRC and from 0.53 to 0.41 in the case of India thus showing jobless growth.<br /><br />• Income inequality is caused by inequality of opportunity in developing Asia. Inequality of opportunity arises out of unequal access to public services, especially education and health. In some Asian countries including India where the average proportion of out-of-school primary school-age children was about 20% in 1999–2003, children from the poorest quintile were three times as likely as those from the richest quintile to be out of school. Infant mortality rates among the poorest households in some Asian countries were double or treble the rates among the richest households. The chance of a poor infant dying at birth was more than 10 times higher than for an infant born to a rich family in Asia.<br /><br />• Although average Gini coefficient across developing Asian economies (38) was lower than that in Latin American economies (52), most Latin American countries have seen narrowing inequality in the last 2 decades.<br /><br /><em>* Note: A Gini of zero denotes absolute equality, while a value of 1 (or 100 on the percentile scale) means absolute inequality.</em><br /><br /> <br>
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<h1 class="cat-box-title">Poverty and inequality</h1>
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<h2 style="font-weight: bold; font-size: 13px;">What's Inside</h2>
<ul class="whatsinside">
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#poverty-and-shared-prosperity-2022-correcting-course-released-in-october-2022">Poverty and Shared Prosperity 2022: Correcting Course (released in October 2022)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#malcolm-adiseshiah-memorial-lecturenbsptitled-39understanding-inequality39-released-in-2022-delivered-by-prof-reetika-khera">Malcolm Adiseshiah Memorial Lecture titled 'Understanding Inequality' (released in 2022) delivered by Prof. Reetika Khera</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#inequality-kills-released-in-january-2022">Inequality Kills (released in January 2022)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=2#inequality-kills-india-supplement-released-in-january-2022">Inequality Kills -- India Supplement (released in January 2022)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=3#world-inequality-report-2022-released-on-7-december-2021">World Inequality Report 2022 (released on 7 December, 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=3#the-pandemic-stalls-growth-in-the-global-middle-class-pushes-poverty-up-sharply-released-on-march-18th-2021">The Pandemic Stalls Growth in the Global Middle Class, Pushes Poverty Up Sharply (released on March 18th, 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=4#nss-77th-round-report-titled-all-india-debt-and-investment-survey-2019-january-december-2019-released-in-september-2021">NSS 77th Round Report titled All India Debt and Investment Survey 2019, January-December 2019 (released in September 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=5#global-economic-prospects-gep-released-in-january-2021">Global Economic Prospects (GEP) (released in January 2021)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=5#global-multidimensional-poverty-index-2020-released-in-july-2020">Global Multidimensional Poverty Index 2020 (released in July 2020)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=5#global-multidimensional-poverty-index-2019-illuminating-inequalities-released-in-july-2019">Global Multidimensional Poverty Index 2019: Illuminating Inequalities (released in July, 2019)</a>
</li>
</ul>
<div><a href="javascript:void(0)" id="morewhatsinsidelink" onClick="javascript:$('#morewhatsinside').show();$('#morewhatsinsidelink').hide();$('#lesswhatsinsidelink').show();">More</a></div>
<ul class="whatsinside" id="morewhatsinside" style="display:none">
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=6#wealth-inequality-class-and-caste-in-india-1961-2012">Wealth Inequality, Class and Caste in India 1961-2012</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=7#global-mpi-2018-report">Global MPI 2018 report</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=8#ending-extreme-poverty-sharing-prosperity-progress-and-policies-released-in-october-2015">Ending Extreme Poverty, Sharing Prosperity: Progress and Policies (released in October 2015)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=9#socio-economic-and-caste-census-2011-released-in-july-2015">Socio Economic and Caste Census 2011 (released in July 2015)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=10#household-consumer-expenditure-across-socio-economic-groups-2011-12-published-in-february-2015">Household Consumer Expenditure across Socio-Economic Groups 2011-12 (published in February 2015) </a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=11#addressing-inequality-in-south-asia-published-in-january-2015">Addressing Inequality in South Asia (published in January 2015)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=12#rangarajan-committee-report-on-measurement-of-poverty-2014">Rangarajan Committee Report on Measurement of Poverty 2014</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=13#global-multidimensional-poverty-index-mpi-2014">Global Multidimensional Poverty Index (MPI) 2014</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=14#humanity-divided-confronting-inequality-in-developing-countries-undp-january-2014">Humanity divided: Confronting inequality in Developing Countries, UNDP (January, 2014)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=14#from-poverty-to-empowerment-indiarsquos-imperative-for-jobs-growth-and-effective-basic-services-2014">From poverty to empowerment: India’s imperative for jobs, growth, and effective basic services (2014)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=15#key-indicators-of-urban-slums-in-india-july-2012-to-december-2012">Key Indicators of Urban Slums in India (July 2012 to December 2012)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=15#appraisal-of-bpl-criteria">Appraisal of BPL Criteria</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=15#press-note-on-poverty-estimates-2011-12">Press Note on Poverty Estimates, 2011-12</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=16#key-indicators-of-household-consumer-expenditure-in-india-68th-round-nss-2011-12">Key Indicators of Household Consumer Expenditure in India: 68th round NSS (2011-12)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=17#the-state-of-the-poor-where-are-the-poor-and-where-are-the-poorest-2013">"The State of the Poor: Where are the Poor and Where are the Poorest?" (2013)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=17#report-of-the-expert-group-to-recommend-the-detailed-methodology-for-identification-of-families-living-below-poverty-line-in-the-urban-areas">Report of the Expert Group to Recommend the Detailed Methodology for Identification of Families Living below Poverty Line in the Urban Areas</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=18#press-note-on-poverty-estimates-2009-10">Press Note on Poverty Estimates, 2009-10</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=19#born-equal-how-reducing-inequality-could-give-our-children-a-better-future-2012">Born Equal: How reducing inequality could give our children a better future (2012)</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=20#unctad-2012-report-entitled-policies-for-inclusive-and-balanced-growth">UNCTAD 2012 report entitled Policies for Inclusive and Balanced Growth</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=21#asian-development-outlook-2012-confronting-rising-inequality-in-asia">Asian Development Outlook 2012: Confronting Rising Inequality in Asia</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=22#suresh-tendulkar-committee-report-on-poverty">Suresh Tendulkar Committee Report on poverty</a>
</li>
<li>
<a href="https://im4change.in/hunger-hdi/poverty-and-inequality-20499.html?pgno=22#11th-five-year-plan-of-the-planning-commission">11th Five-Year Plan of the Planning Commission</a>
</li>
</ul>
<div><a style="display:none" href="javascript:void(0)" id="lesswhatsinsidelink" onClick="javascript:$('#morewhatsinside').hide();$('#morewhatsinsidelink').show();$('#lesswhatsinsidelink').hide();">Less</a></div>
</div>
</div>
</div>
</div>
<div>
<br /><br />According to the ADB report entitled: <a name="asian-development-outlook-2012-confronting-rising-inequality-in-asia">Asian Development Outlook 2012: Confronting Rising Inequality in Asia</a>, <a href="http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf" title="http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf">http://www.adb.org/sites/default/files/pub/2012/ado2012.pdf</a>:<br /><br />• Poverty as measured by head count ratio may have dropped in India by 7.3 percentage points from 37.2% in 2004-05 to 29.8% in 2009-10 but the decline could have been much more had the country been more equal. To the dismay of pro market economists, the report tells that had inequality remained unchanged from the 1990s to the 2000s, the poverty headcount rate in India could have been brought down to 29.5% in 2008, instead of the actual 32.7%.<br /><br />• It is a widely held belief that growth ultimately trickles down to the poor living at the bottom, thus reducing poverty. However, the new report finds that rising inequality due to growth has affected poverty reduction.<br /><br />• People’s Republic of China (PRC) and India—the world’s two most populous countries—with annual GDP growth rates of 9.9% and 6.4%, respectively have witnessed rise in inequality from the early 1990s to the late 2000s. During the period of economic reforms, Gini coefficient*—a common measure of inequality—deteriorated from 32.4 in 1990 to 43.4 in 2008 in the PRC and from 32.5 in 1993 to 37 in 2010 in India.<br /><br />• In India, the urban Gini grew from 34.4 in 1993 to 39.3 in 2010, much faster than the contemporaneous growth of the rural Gini, from 28.6 to 30.5. India’s rural inequality is lower and urban inequality is higher than in the PRC and, unlike the PRC but like most developing countries, India’s urban inequality is higher than its rural inequality.<br /><br />• The yawning gap between the rich and the poor in India could be observed from the ratio of the per capita expenditure of the top 20% to that of the bottom 20%. The quintile ratio has increased from 4.8 in 1993 to 5.7 in 2010. In India, the annual mean per capita expenditure growth was only 1.1% for the bottom quintile but 1.9% for the top quintile during 1993-2010. Rising inequality in India has been driven by income redistribution to the top 20%, at a cost to the bottom 80%.<br /><br />• The average annual growth rate of labor productivity was 7.4% during 1990–2007, while average annual real wage growth rate was only 2%. Gains in productivity were not passed on to wages and, consequently, the labor share of India’s organized manufacturing sector declined from 37% in 1990 to 22% in mid 2007 in India.<br /><br />• Wage employment elasticity of growth fell from 0.44 in 1991–2001 to 0.28 in 2001–2011 in PRC and from 0.53 to 0.41 in the case of India thus showing jobless growth.<br /><br />• Income inequality is caused by inequality of opportunity in developing Asia. Inequality of opportunity arises out of unequal access to public services, especially education and health. In some Asian countries including India where the average proportion of out-of-school primary school-age children was about 20% in 1999–2003, children from the poorest quintile were three times as likely as those from the richest quintile to be out of school. Infant mortality rates among the poorest households in some Asian countries were double or treble the rates among the richest households. The chance of a poor infant dying at birth was more than 10 times higher than for an infant born to a rich family in Asia.<br /><br />• Although average Gini coefficient across developing Asian economies (38) was lower than that in Latin American economies (52), most Latin American countries have seen narrowing inequality in the last 2 decades.<br /><br /><em>* Note: A Gini of zero denotes absolute equality, while a value of 1 (or 100 on the percentile scale) means absolute inequality.</em><br /><br /> <br>
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• Poverty as measured by head count ratio may have dropped in India by 7.3 percentage points from 37.2% in 2004-05 to 29.8% in 2009-10 but the decline could have been much more had the country been more equal. To the dismay of pro market economists, the report tells that had inequality remained unchanged from the 1990s to the 2000s, the poverty headcount rate in India could have been brought down to 29.5% in 2008, instead of the actual 32.7%.
• It is a widely held belief that growth ultimately trickles down to the poor living at the bottom, thus reducing poverty. However, the new report finds that rising inequality due to growth has affected poverty reduction.
• People’s Republic of China (PRC) and India—the world’s two most populous countries—with annual GDP growth rates of 9.9% and 6.4%, respectively have witnessed rise in inequality from the early 1990s to the late 2000s. During the period of economic reforms, Gini coefficient*—a common measure of inequality—deteriorated from 32.4 in 1990 to 43.4 in 2008 in the PRC and from 32.5 in 1993 to 37 in 2010 in India.
• In India, the urban Gini grew from 34.4 in 1993 to 39.3 in 2010, much faster than the contemporaneous growth of the rural Gini, from 28.6 to 30.5. India’s rural inequality is lower and urban inequality is higher than in the PRC and, unlike the PRC but like most developing countries, India’s urban inequality is higher than its rural inequality.
• The yawning gap between the rich and the poor in India could be observed from the ratio of the per capita expenditure of the top 20% to that of the bottom 20%. The quintile ratio has increased from 4.8 in 1993 to 5.7 in 2010. In India, the annual mean per capita expenditure growth was only 1.1% for the bottom quintile but 1.9% for the top quintile during 1993-2010. Rising inequality in India has been driven by income redistribution to the top 20%, at a cost to the bottom 80%.
• The average annual growth rate of labor productivity was 7.4% during 1990–2007, while average annual real wage growth rate was only 2%. Gains in productivity were not passed on to wages and, consequently, the labor share of India’s organized manufacturing sector declined from 37% in 1990 to 22% in mid 2007 in India.
• Wage employment elasticity of growth fell from 0.44 in 1991–2001 to 0.28 in 2001–2011 in PRC and from 0.53 to 0.41 in the case of India thus showing jobless growth.
• Income inequality is caused by inequality of opportunity in developing Asia. Inequality of opportunity arises out of unequal access to public services, especially education and health. In some Asian countries including India where the average proportion of out-of-school primary school-age children was about 20% in 1999–2003, children from the poorest quintile were three times as likely as those from the richest quintile to be out of school. Infant mortality rates among the poorest households in some Asian countries were double or treble the rates among the richest households. The chance of a poor infant dying at birth was more than 10 times higher than for an infant born to a rich family in Asia.
• Although average Gini coefficient across developing Asian economies (38) was lower than that in Latin American economies (52), most Latin American countries have seen narrowing inequality in the last 2 decades.
* Note: A Gini of zero denotes absolute equality, while a value of 1 (or 100 on the percentile scale) means absolute inequality.
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