Per capita income, once regarded as the best index of the welfare of a society, has long since been dethroned from this status. People have argued persuasively that it is a measure that ignores not only income distribution but also the quality of life. Alternative approaches have been designed to explore these nuances of measurement and alternative indices constructed. Amartya Sen has developed a ‘capabilities approach’ to the question of...

Latin America, the poster child of bad economic policy in the 1980s and early 1990s, is leading the way in one rapidly evolving area of social development: conditional cash transfer (CCT) programmes. These schemes provide cash payments to poor households that meet certain behavioural requirements, generally related to children’s healthcare and education. The idea here is to support minimal levels of consumption through income transfers, while encouraging long-term human development. The...

India and China Two largest populated countries of the world and next door neighbors; though greatly different in their cultures, lifestyles and most important pace of growth. Maintaining an edge over India in the manufacturing sector and urban infrastructure development, China is also not lagging behind in the rural development sector. China feeds 21% of the world population with only 9% of the world arable land. The 2nd largest populated country has to...

The conclusions of the United Nations summit on the world's progress towards the Millennium Development Goals (MDGs) present a gloomy picture. Some goals such as universal primary education, reducing child mortality, and improving maternal health are unlikely to be reached by the 2015 deadline. The world may be on track to meet the target of halving the number of people living under $1 a day, but the numbers suffering from...

Considerable sections of the urban population may face serious food insecurity even while the urban economy grows. There is a need for urgent action on this front. Over the two decades of rapid growth of the Indian economy, the urban economy is generally perceived as having done very well. However, high urban economic growth need not by itself imply improved living standards for all urban residents. In particular, the recent and...