Is India's economic growth leaving the poor behind?
AbstractThere has been much debate about how much India's poor have shared in the economic growth unleashed by economic reforms in the 1990s. The authors argue that India has probably maintained its 1980s rate of poverty reduction in the 1990s. However, there is considerable diversity in performance across states. This holds some important clues for understanding why economic growth has not done more for India's poor. India's economic growth in the 1990s has not been occurring in the states where it would have the most impact on poverty nationally. If not for the sectoral and geographic imbalance of growth, the national rate of growth would have generated a rate of poverty reduction that was double India's historical trend rate. States with relatively low levels of initial rural development and human capital development were not well-suited to reduce poverty in response to economic growth. The study's resultsare consistent with the view that achieving higher aggregate economic growth is only one element of an effective strategy for poverty reduction in India. The sectoral and geographic composition of growth is also important, as is the need to redress existing inequalities in human resource development and between rural and urban areas.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2846.
Date of creation: 31 May 2002
Date of revision:
Economic Conditions and Volatility; Public Health Promotion; Health Monitoring&Evaluation; Environmental Economics&Policies; Services&Transfers to Poor; Achieving Shared Growth; Poverty Assessment; Environmental Economics&Policies; Governance Indicators; Economic Conditions and Volatility;
Other versions of this item:
- Gaurav Datt & Martin Ravallion, 2002. "Is India's Economic Growth Leaving the Poor Behind?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 89-108, Summer.
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