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Promoting Human Development in India: Costs of Inequality


  • M. H. Suryanarayana

    () (International Poverty Centre)

  • Ankush Agrawal

    () (Indian Institute of Technology Delhi)


Policy emphasis in Indian economic development planning has always been on ?economic growth with income redistribution?. Such a strategy seeks to exploit the potential of development programmes for poverty reduction and welfare gains by reducing the costs due to inequality in income distribution. The state of Kerala provides an empirical example to show how it is possible to achieve both growth and improved income distribution by human development, which is also acknowledged by the Government of India. The three critical dimensions of human development identified by the UNDP are (i) a long and healthy life; (ii) knowledge; and (iii) a decent standard of living as measured by per capita income. There is ample scope for achieving economic growth, human development and poverty reduction by reducing the extent of inequality in all these three dimensions of human development. Therefore, this study seeks to quantify the loss in human development due to inequalities in these three dimensions across states in India. This is done using the methodology to estimate a new index called the Inequality-adjusted Human Development Index (IHDI) proposed by the UNDP in its Human Development Report for 2010 entitled The Real Wealth of Nations: Pathways to Human Development. (?)

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  • M. H. Suryanarayana & Ankush Agrawal, 2013. "Promoting Human Development in India: Costs of Inequality," Working Papers 109, International Policy Centre for Inclusive Growth.
  • Handle: RePEc:ipc:wpaper:109

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    References listed on IDEAS

    1. Sen, Amartya, 1998. "Mortality as an Indicator of Economic Success and Failure," Economic Journal, Royal Economic Society, vol. 108(446), pages 1-25, January.
    2. Milorad Kovacevic, 2010. "Measurement of Inequality In Human Development - A Review," Human Development Research Papers (2009 to present) HDRP-2010-35, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
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