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Poverty

Pathways to Prosperity: An e-Symposium

Hanan Jacoby's picture

 

Blog #8: In building and agri boom, rural wage lift

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments. 

Real wages have risen across India in the past two decades, but the increase was especially marked among rural unskilled workers. Three drivers – falling rural female labor force participation, a construction boom, and favorable agricultural terms of trade -- help explain why unskilled rural workers fared better than their urban counterparts or workers with more education. Going forward, in light of lower agricultural prices and slower growth in the construction sector, some of the factors that contributed to the increase in relative wages for unskilled labor during this period may not be sustained over time. 

Pathways to Prosperity: An e-Symposium

Carlos Felipe Balcazar's picture


Blog #7: Jobs, not transfers, the big poverty buster


India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments. 


The significant shift from farm work to non-farm sources of income accelerated the decline in poverty in India. Non-farm jobs pay more than agricultural labor, and incomes from both were propelled by a steep rise in wages for rural unskilled labor. While lower dependency rates and transfers - from remittances and social programs - have contributed to a reduction in poverty, they are not the primary drivers of the poverty decline between 2005 and 2012.

Pathways to Prosperity: An e-Symposium

Gaurav Datt's picture
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Blog #6: India, the driver of growth for Bharat

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments.
 
How has India’s recent growth impacted poverty in the country? We look at how India’s rapid structural transformation over the past three decades —the shift from agriculture to industry and services, and from rural to urban areas – is changing the relationship between economic growth and poverty reduction.

Harnessing Stitches for Riches in South Asia

Gladys Lopez-Acevedo's picture
Stitches to Riches? The Potential of Apparel Manufacturing in South Asia

In the coming years and decades, China is expected to slowly relinquish its lead position in the global apparel market, opening the door to other competitors. This is a huge opportunity for South Asia to create at least 1.5 million jobs that are “good for development” – of which half a million would be for women – according to a new World Bank report Stitches to Riches?  But those numbers could be much higher if the region moves quickly to tackle existing impediments and foster growth in apparel, which will also yield dividends for other light manufacturers (like footwear and toys).
 
How South Asia fits in the global apparel market
Currently, China holds by far the largest share of global apparel trade – at 41 percent, up from 25 percent in 2000, with about 10 million workers. But as China continues to develop, it is likely to move up the global value chain into higher-value goods (like electronics, and out of apparel) or switch production among sectors in response to rising wages. A 2013 survey of leading global buyers in the United States and European Union (EU) found that 72 percent of respondents planned to decrease their share of sourcing from China over the next five years (2012-2016).
 
Already, the top four apparel producers in South Asia – Bangladesh, India, Pakistan, and Sri Lanka – have made big investments in world apparel trade, now accounting for 12 percent of global apparel exports (see figure). In terms of apparel export value, Bangladesh leads the pack (at $22.8 billion), followed by India ($12.5 billion), Sri Lanka ($4.4 billion), and Pakistan ($4.2 billion).
 
China dominates global apparel trade
(Country share of global apparel exports)


Source: Stitches to Riches?
 
Why apparel jobs are “good for development”
When we think of jobs that are “good for development,” the main yardstick is whether they will help translate growth into long-lasting poverty reduction and broad-based economic opportunities. Apparel fits the bill for numerous reasons. 

Pathways to Prosperity: An e-Symposium

Urmila Chatterjee's picture
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Blog #5: The low income, low growth trap

India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments.

While India’s economy has grown more rapidly in recent decades, the gains have been unevenly spread, and some regions have fallen further behind the rest of the country. In particular, India’s seven ‘low-income’ states have struggled to shake off the legacy of high consumption poverty, low per capita incomes, poor human development outcomes and the persistence of poverty among tribal populations. The fact that these states are yet to catch-up with the rest of the country illustrates that ‘where you live’ largely determines ‘how well you live'. Addressing this geographic dimension of poverty and well-being will therefore hold the key to improving the lives of millions of Indians.

Pathways to Prosperity: An e-Symposium

Ambar Narayan's picture
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Blog #4: 1 in 3 has piped water, 2 of 5 kids stunted

 
India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments.


The rapid decline in consumption poverty over the past two decades was accompanied by improvements in other dimensions of welfare. But progress has been mixed and much still remains to be done. India’s performance on key indicators of well-being lags behind countries at similar stages of development. And country-level estimates mask wide disparities between states.

Pathways to Prosperity: An e-Symposium

Peter Lanjouw's picture
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Blog #3: Poverty down, but 1 in 2 hangs by a thread

 
India is home to the largest number of poor people in the world, as well as the largest number of people who have recently escaped poverty. Over the next few weeks, this blog series will highlight recent research from the World Bank and its partners on what has driven poverty reduction, what still stands in the way of progress, and the road to a more prosperous India.

We hope this will spark a conversation around #WhatWillItTake to #EndPoverty in India. Read all the blogs in this series, we look forward to your comments.


The sharp decline in poverty in India has been accompanied by a strong pattern of upward mobility, leading to an emerging middle class. Education, urban residence, and wage work have contributed to this higher-than-average upward mobility and lower downward mobility.  Yet, a vast share of the population remains vulnerable to slipping back into poverty, suggesting that gains against poverty need to be deepened and made more secure.  Scheduled Tribes stand out as a group that has fallen further behind, with one-third stuck in chronic poverty.

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