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The New Poverty and Inclusive Growth Agenda in India as Emerging Middle Income Country (Paper)

The New Poverty and Inclusive Growth Agenda in India as Emerging Middle Income Country (Paper)

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Paper for the Conference on Social Inclusiveness in Asia’s Emerging Middle Income Countries, 13 September 2011

Author: Amita SHAH (Gujarat Institute of Development Research)
Paper for the Conference on Social Inclusiveness in Asia’s Emerging Middle Income Countries, 13 September 2011

Author: Amita SHAH (Gujarat Institute of Development Research)

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Published by: ADB Poverty Reduction on Aug 31, 2011
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12/16/2011

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Tbe @es ^izevt{ g`d K`mlu}kze Cvistb Gce`dg k` K`dkg g} Eaevck`c AkddleK`miae Miu`tv{
 Gaktg ]bgb
Cuogvgt K`}tktute ij Dezeli~ae`t Ve}egvmb7. K`tvidumtki`?
K`dkg‛} ~vicve}}ki` jvia lis k`miae ti lisev!akddle k`miae miu`tv{ k} g agttev ij jgkv gaiu`tij }gtk}jgmtki` g`d ~vkde, e}~emkgll{ jiv tbi}e sbi }~egvbegded tbe ~vime}} ij emi`iakm vejiva}g`d cvistb!k`dumed ~izevt{ vedumtki` k` tbe miu`tv{ }k`me egvl{ `k`etke}. Tbe ~vicve}}ki` jvia}tgc`g`t g`d)iv lis cvistb ti bkcb cvistb tvgoemtiv{ k} gmmlgkaed k`tev`gtki`gll{8 g`d tbgt tbevemic`ktki` bg} miae `it i`l{ jiv K`dkg bgzk`c eaevced g} g ~ite`tkgl emi`iakm }u~ev ~isev futgl}i jiv aghk`c tbe tvg`}ktki` bg~~e` sktbk` g deaimvgtkm jvgaesivh. Ij lgte K`dkg‛} emi`iakm ~isev ~gvtkmulgvl{, kt} cvisk`c akddle mlg}}, k} fek`c }ee` g} g ~ite`tkgl agvhet, sbkmb miuldbel~ gf}ivfk`c tbe veme}}ki`gv{ }bimh} er~evke`med f{ g lgvce `uafev ij bkcb k`miae miu`tvke}k` tbe dezeli~ed sivld XGDF, 6>7>Q. Fe}kde tbk}, tbe bk}tivkmgl er~evke`me} ij }iae ij tbedezeli~ed emi`iake} gl}i }ucce}t g `uafev ij ~i}ktkze ertev`glktke} g}}imkgted sktb er~g`}ki`ij tbe akddle mlg}} g} kt ag{ fvk`c `es g}~kvgtki`} g} sell g} deaimvgtkm etbi}, sbkmb k` tuv`,ag{ bel~ e`bg`mk`c ~ilktkmgl miaaktae`t tisgvd} }imkgl ~ilkmke} g`d seljgve aeg}uve} XGle}k`gg`d Vidvkh, 7;;4Q.Tbe ~ve}e`t }me`gvki k` K`dkg k} bisezev dkjjeve`t, g`d ~evbg~} jgv aive mia~ler tbg` sbgt sg}bk}tivkmgll{ er~evke`med k` g `uafev ij dezeli~ed g`d gl}i f{ }iae ij tbe eaevck`c emi`iake}k` tbe mi`tea~ivgv{ mi`tert. Tbe ai}t mia~ler ~be`iae`i` ~evtgk`k`c ti tbe K`dkg` }me`gvki k}tbgt g lgvce ~gvt ij sbgt k} deeaed g} nakddle k`miae mgteciv{, sbkmb g~~gve`tl{ bg} }uv~g}}edtbe `uafev ij ~iiv‛ X@MGEV, 6>7>Q, k} bkcbl{ zul`evgfle g`d dezikd ij fg}km gae`ktke} g} sellg} }evzkme} tbevef{ lis gttgk`ae`t k` teva} ij buag` dezeli~ae`t XHg``g`, 6>7>Q. Gddve}}k`c ~izevt{ g`d zul`evgfklkt{ mizevk`c g} lgvce g} tbvee jiuvtb ij K`dkg‛} ~i~ulgtki` tbevejive,veagk`} tbe ai}t dgu`tk`c mbglle`ce, `itsktb}tg`dk`c tbe eaevck`c akddle mlg}} k` tbe miu`tv{.^vkag jgmke, tbe erte`t ti sbkmb tbe `esl{ gmwukved }tgtu} ij g` Eaevck`c Akddle K`miaeMiu`tv{ "EAKM+ siuld bel~ ji}tevk`c ~izevt{ vedumtki` g`d gt tbe }gae tkae sivh g} g }tkaulu}jiv tbe clifgl emi`iakm vemizev{ g`d cvistb eze`tugll{, ag{ de~e`d i` tsi ka~ivtg`t jgmtiv}?g+ tbe ~gtb g`d ~gttev` ij cvistb tbviucb sbkmb bkcbev ~ev mg~ktg k`miae bg} fee` gmbkezed k`tbe ~i}t!vejiva} ~evkid8 g`d f+ tbe agk` dvkzk`c jivme e`zk}gced jiv gttgk`k`c jutuve cvistb k`k`miae, g`d gl}i kt} dk}tvkfutki` gmvi}} dkjjeve`t }ecae`t} ij tbe emi`ia{. E}}e`tkgll{, tbk} ag{dvgs gtte`tki` ti tsi gltev`gtkze }me`gvki} sktb ve}~emt ti tbe `gtuve g`d mia~i}ktki` ij cvistber~evke`med k` tbe veme`t ~g}t g`d gl}i lkhel{ ti tghe ~lgme k` tbe ~evkid ij `ert 5!7> {egv}. Tbejkv}t ~gtb mi`}k}tk`c ij cvistb sktb tvkmhle dis` ag{ vejev ti g }ktugtki` sbeve tbe cvistb k}dvkze` agk`l{ f{ tbe cvisk`c mi`}uaevk}a g`d tbe g}}imkgted lkje}t{le deai`}tvgtki` ejjemt}!glltbe}e eag`gtk`c jvia tbe eaevck`c akddle mlg}}, e}~emkgll{ k` uvfg` me`tev}, miafk`ed sktbbegz{ de~e`de`me i` tbe }tgte ju`ded }imkgl ~vitemtki` aeg}uve} }umb g} mg}b tvg`}jev} ti vegmb7
Tbe zkes} er~ve}}ed k` tbk} ~g~ev)~ve}e`tgtki` gve tbe zkes} ij tbe gutbiv"}+ g`d di `it `eme}}gvkl{ vejlemt tbezkes} iv ~ilkmke} ij tbe G}kg` Dezeli~ae`t Fg`h "GDF+, iv kt} Figvd ij Dkvemtiv}, iv tbe cizev`ae`t} tbe{ve~ve}e`t. GDF die} `it cugvg`tee tbe }iuvme, ivkck`glkt{, gmmuvgm{, mia~lete`e}} iv velkgfklkt{ ij g`{ }tgteae`t,k`jivagtki`, dgtg, jk`dk`c, k`tev~vetgtki`, gdzkme, i~k`ki`, iv zkes ~ve}e`ted, `iv die} kt aghe g`{ ve~ve}e`tgtki`mi`mev`k`c tbe }gae.
 
iut tbe ~iiv. Gcgk`}t tbk}, tbe }emi`d ~gtb ag{ vejev ti skde`k`c ij tbe ~vidumtki` fg}e f{k`zilzk`c g lgvce }ecae`t ij tbe u`)u`dev ea~li{ed lgfiuv mlg}} tbviucb mgvejul }elemtki` ij  ~vidumtki` temb`ilic{ g`d ve}iuvme u}e k` g ag``ev tbgt kt ag{ legd ti er~g`}ki` ij sgcek`miae gai`c tbe ~iiv "g`d gl}i zul`evgfle gai`c tbe akddle mlg}}+ gli`c sktb er~g`dk`c ~vidumtki` ij sgce ciid} sktbk` tbe emi`ia{ X^gtg`gkh, ^. 6>77Q. ]tvkmtl{, tbe tsi ag{ `it`eme}}gvkl{ fe autugll{ ermlu}kze g~~vigmbe}8 vgtbev tbe}e g~~vigmbe} ag{ ve~ve}e`t dkjjeve`tmi`me~tugl mgtecivke}, sbkmb ag{ fe wukte u}ejul sbkle cguck`c tbe ~izevt{ vedumk`cka~lkmgtki`} ij emi`iakm cvistb k` tbe mi`tea~ivgv{ K`dkg` mi`tert.^uttk`c kt }ka~l{ tbe iutmiae} ij tbe eaevck`c akddle mlg}}, gt leg}t k` }bivt g`d aedkua teva},ag{ de~e`d i` sbetbev tbe jutuve cvistb bk`ce} agk`l{ i` tbe deag`d miak`c jvia tbe u~~ev akddle g`d tbe ti~ k`miae }tvgtg iv, fe k`dumed f{ tbe jve}b fii}t u~ ~vizkded ti }~emkjkmgmtkzktke} g} sell g} }emtiv} sktbk` tbe emi`ia{ sbeve tbe lisev akddle mlg}} g`d tbe ~iiv gvelimgted. Kt k} e}}e`tkgll{ tbk} ~ilkm{ mbikme, sbkmb siuld }bg~e tbe nk`mlu}kze`e}}‛ ij tbe jutuvegce`dg jiv emi`iakm cvistb g`d)iv seljgve ij ~iiv k` tbe `ert 5!7> {egv} g`d ~evbg~} fe{i`dX]bgb, 6>77Q. Tbk} k} ~gvtkmulgvl{ velezg`t gt tbk} ou`mtuve ij K`dkg‛} }tvkde jiv emi`iakm cvistbsbkmb bg} gl}i fviucbt k`ti kt} jild skde`k`c k`ewuglktke} XFg}u, 6>>28 Mbgudbuvk g`d Vgzgllki`,6>>:8 Vgzghhukfa, "6>>5+, nsg}tejul‛ mi`}uaevk}a XFgvdbg`, 6>>3Q, g`d k`mveg}edk`jivaglkgtki` ij tbe sivhjivme XZkog{, 6>>5Q. Aumb ij tbk} ijte` cet} vejlemted k` teva} ij cvisk`c ea~li{ae`t g} sell g} k`miae k`}emuvktke}, ~gvtkmulgvl{ sktbk` uvfg` emi`iake}8bg~bggvd cvistb ij uvfg` gveg} gli`c sktb `eclemted vuvgl bgfktgtki`}8 g`d g lgvce }ecae`t ij  ~iiv g`d gl}i tbe zul`evgfle sktbk` tbe akddle k`miae }tvgtg X]e`cu~tg, et. gl8 6>>2Q. Gmmivdk`cti }iae g}}e}}ae`t, k`miae k`ewuglkt{ k} lkhel{ ti cet juvtbev gmme`tugted. ]umb k`ewuglktke} ag{ ~vize ti fe e`zkvi`ae`tgll{ dgagck`c isk`c ti tbe cvisk`c mi`}uaevk}a, g`d ag{ gl}i bga~ev jutuve ~vi}~emt} ij cvistb XVgzgllki`, 6>>58 Fgvdbg`, 6>>3Q, fe}kde} fek`c }imkgll{ g`d ~ilktkmgll{ `i`!te`gfle X]bgb, 6>77Q.Sbeveg} tbe er~evke`me} ij }iae ij tbe Lgtk` Gaevkmg` miu`tvke} g`d gl}i Mbk`g ag{ ~vizkdeu}ejul le}}i`}, tbe mbikme tbgt K`dkg }biuld aghe bg} ti fe cviu`ded
 ~vkagvkl{
, k` tbe }ktugtki`}~emkjkm veglktke} iftgk`k`c sktbk` tbe miu`tv{ vgtbev tbg` cettk`c dvkze` f{ tbe clifgl emi`iakm}me`gvki} XFbgduvk, 6>>:Q. Kt k} beve tbgt tbe `i`!emi`iakm jgmtiv} }umb g} e`zkvi`ae`tgl, }imki!multuvgl g`d ~ilktkmgl ag{ g}}uae mvktkmgl ka~ivtg`me XBgvk}}, 6>>3Q. Mi`zev}el{, K`dkg ag{ gl}iliih k`ti tbe}e g}~emt} sbkle de}kc`k`c bev ~ilkmke} g} g dezeli~ae`tgl gkd gce`m{ e}~emkgll{ k`G}kg. Fek`c g lgvce g`d vifu}t deaimvgm{, K`dkg ag{ bgze g }tvgteckm vile ti ~lg{ k` tbe vecki`X^vkme, 6>>4Q jiv ji}tevk`c `it i`l{ jg}tev fut gl}i ~vi!~iiv emi`iakm cvistb sbeve tbe ~iiv g`dtbe zul`evgfle bgze tbekv lecktkagte }~gme k` }bg~k`c tbe `gtuve g`d mia~i}ktki` ij cvistb kt}elj vgtbev aevel{ fek`c }ee` g} vemk~ke`t ij tbe seljgve }mbeae}. Tbk} ifzkiu}l{ ag{ bgze}kc`kjkmg`t ka~lkmgtki`} i` K`dkg‛} dezeli~ae`tgl gkd k` tbe vecki`.Ckze` tbk} fgmhdvi~, tbe ~g~ev skll jimu} i` jillisk`c g}~emt} k` tbe mi`tert ij tbe eaevck`cakddle mlg}} k` K`dkg?7.^vijkle ij ~izevt{ g`d tbe ~ilkmke} jiv bel~k`c tbe zev{ ~iiv g`d zul`evgfle cviu~} k` tbeK`dkg.6
 
6.I~~ivtu`ktke} g`d mbglle`ce} sktb }~emkgl vejeve`me ti tbe mbg`ck`c lgfiuv agvhetmi`dktki`}, akcvgtki` g`d uvfg`kgtki`, e`zkvi`ae`tgl ka~lkmgtki`}, g`d }imkgl ~ilkmke}, k` tbesghe ij tbe eaevck`c akddle mlg}}, g`d dk}mu}} ~ilkm{ mbikme} jiv aghk`c tbe cvistb k`mlu}kze.=.G}}e}}ae`t ij K`dkg} vile g} g dezeli~ae`t gkd gce`m{ g`d dk}mu}} tbe lkhel{ ka~gmt} i`tbe ~vime}}e} ij k`mlu}kze cvistb i` tbe vemk~ke`t miu`tvke} k` G}kg4.Le}}i`} eaevck`c jvia K`dkg} er~evke`me} i` ~izevt{ vedumtki` sktb }~emkgl ea~bg}k}i` ea~li{ae`t ce`evgtki` g`d ~vizk}ki`k`c ij fg}km gae`ktke} sbeve vkcbt} fg}ed g~~vigmb}eea} ti bgze cgk`ed k`mveg}k`c ka~ivtg`me.5.]tvgteckm ~ilkm{ aeg}uve} `eeded jiv }teevk`c k`mlu}kze g`d gl}i }u}tgk`gfle cvistbtvgoemtiv{ sktb }tgfklkt{ g`d }emuvkt{.Tbe g`gl{}k} k} fg}ed i` g de}h vezkes ij tbe erk}tk`c lktevgtuve g} sell g} ezkde`me, g`d kt }eeh}ti jeed k`ti tbe i`cik`c defgte i` jk`dk`c `es ~gtbsg{} jiv ~izevt{ vedumtki` g`d k`mlu}kzecvistb k` tbe mi`tert ij eaevck`c emi`iake} k` tbe vecki`.
6. Akddle Mlg}} g`d tbe ^iiv k` K`dkg?
K`bgfkted f{ gfiut 767> akllki` ~ei~le, K`dkg k} g biae ij tbe lgvce}t ~iiv ~i~ulgtki` k` tbesivld. K` 6>>5 45: iut ij tbe 74>> akllki` ~iiv tbe sivld izev ve}kded k` K`dkg.
 
Tbe }bgve ij K`dkg‛} ~iiv k` tbe clifgl titgl bg} k`mveg}ed jvia 66 ti == ~evme`t duvk`c 7;2> ti 6>>5XVgzgllki`, 6>>2Q. Gmmivdk`c ti tbe e}tkagte} u}k`c tbe @]]I!dgtg jiv 6>>4!>5, 46 ~ev me`t ij K`dkg‛} ~i~ulgtki` seve lkzk`c felis tbe lezel ij 7.65 $ g dg{8 ij tbe}e 64 ~ev me`t seve felistbe lezel ij 7$ g dg{ X
kfkd 
Q..G~gvt jvia tbe ~iiv "k.e. felis 7.65$)dg{+, g jgkvl{ lgvce ~vi~ivtki` ij tbe ~i~ulgtki` k} k` tbemgteciv{ ij zul`evgfle ~i~ulgtki` Xfetsee` 7.65 g`d 6 $)dg{Q. Ag`{ ij tbe}e gve de~vkzed ij gdewugte mglivke k`tghe g`d `utvktki`, fg}km gae`ktke} }umb g} }gje dvk`hk`c sgtev g`d }g`ktgtki`,gmme}} ti begltb g`d edumgtki`gl }evzkme} gt gjjivdgfle ~vkme8 g`d veculgv ea~li{ae`t sktbak`kaua }imkgl }emuvkt{, `it ti tglh ij ndeme`t sivh‛ mi`dktki`} X]e`cu~tg, et.gl8 6>>3Q.Tbe e}tkagte} jiv tbe miu`tvke} k` G}kg ~ve~gved f{ GDF "6>7>+ }ucce}t g lgvce akddle mlg}} k`K`dkg mi`}k}tk`c ij gfiut =2 ~ev me`t ij K`dkg‛} ~i~ulgtki`8 gfiut == ~ev me`t ij tbe vuvgl ~i~ulgtki` g`d 5> ~ev me`t ij tbe uvfg` ~i~ulgtki` X]ee Tgfle 7Q. K` teva} ij gf}ilute }ke, tbk}k} g buce `uafev k.e. 472 akllki` duvk`c 6>>4!>5 XGDF, 6>7>8
i~. mkt 
Q.
Tgfle 7? ^iiv, Akddle K`miae g`d tbe @i`!^iiv k` K`dkg? Mbg`ce} Izev Tkae^ev mg~ktg Er~e`dktuve~ev dg{ "$+Gll K`dkgUvfg`Vuvgl7;;=!;46>>4!>57;;=!;46>>4!>57;;=!;46>>4!>5
^iiv <7.654:.5=:.==4.>6:.>57.>
4>.5
Zul`evgfle 7.65!6.>6=.:6=.66>.273.364.565.46.>!4.>72.>66.=66.76=.:7:.567.24.>!7>.>2.376.=75.67;.::.4;.47>.>!6>.>6.7=.55.>3.47.77.;=

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