Monday, July 8, 2013

World Bank sees end of poverty in 2030 - End of Poverty?

           Poverty is one of the biggest issues for any economy. It is believed that nearly half of the world’s population (i.e. more than 3 billion people) lives on less than $2.50 a day. More than 1.3 billion live in extreme poverty (less than $1.25 a day). The share of population living in extreme poverty was believed to be in developing world. It is believed that between 1990 and 2010, this share has cut to half. This fulfills the first and foremost Millennium Development Goal (MDG1a) five years ahead of schedule. This shows or appears to bring the end of extreme poverty within reach. It is believed that, if this rate of global progress is sustained then, we can eliminate poverty by 2030. (from -The Final Countdown: Prospects for Ending Extreme Poverty by 2030 – The Brookings Institution Report – April 2013)


            The Report also stated that “If consumption growth consistently exceeds baseline projections, the global poverty rate could fall to 3.1 percent by 2030. If instead consumption growth in each country persistently falls short of projections, 9.7 percent of the developing world could remain under the poverty line at the end of the period.”

As a general theory and belief that Growth decreases the poverty was the main theme of the report. Economist recently published (Jun 1st,2013 – Print Edition) that “In 1990-2010 the driving force behind the reduction of worldwide poverty was growth. Over the past decade, developing countries have boosted their GDP about 6% a year—1.5 points more than in 1960-90. This happened despite the worst worldwide economic crisis since the 1930s. The three regions with the largest numbers of poor people all registered strong gains in GDP after the recession: at 8% a year in East Asia; 7% in South Asia; 5% in Africa. As a rough guide, every 1% increase in GDP per head reduces poverty by around 1.7%.”

In recently published UN report it is believed that India’s Poverty will be reduced to half. The Hindu Business line today (i.e. 05.07.2013) quoted that “However, while South Asia has done well in reducing poverty, it hasn't done so well in reducing hunger. While in 1990, 27 per cent of the population in the region was undernourished, by 2010-12, the figure came down to 18 per cent. At about the 13.5 per cent, the target of halving the number of people suffering from hunger is still some distance away.”

Perception:  

All these numbers and data are looking fine and attractive. In fact, its thrilling! whether the reality shows the same picture. The recent UN report said that its not done well in reducing hunger which is the base thing for reducing the poverty. When it will happen? A famous Tamil Poet Subramani Bharatiyaar said "தனி ஒரு மனிதனுக்கு உணவு இல்லையெனில் ஜகத்தினை அழித்திடுவோம்" (Translation: If a individual has not got food we will destroy the world). When we will eradicate poverty?   



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