Poverty and inequality

Poverty and inequality

 
The key findings of the report entitled Global MPI 2018 report (please click link1, link2, link3, link4, link5 and link 6 to access) are as follows:

• India's multidimensional headcount ratio (H) viz. the proportion or incidence of people (within a given population) who experience multiple deprivations has reduced from 54.7 percent to 27.5 percent during the last 10 years viz. between 2005-06 and 2015-16.

• The total number of poor people, who face multiple deprivations in education, health and living standards, has dropped by 271 million in the last one decade viz. from 635.2 million to 364.2 million between 2005-06 and 2015-16.

• Intensity of poverty (A), which measures deprivations that multidimensionally poor people face on an average, has declined from 51.07 percent to 43.9 percent between 2005-06 and 2015-16.

• Multidimensional poverty index (MPI) of the country, which is the product of multidimensional headcount ratio (H) and intensity (or breadth) of poverty (A), has shrunk from 0.279 to 0.121 between 2005-06 and 2015-16.

• Just over 9 percent of the population are still vulnerable to poverty, meaning that they are deprived in 20 to 33 percent of weighted indicators. And, sadly, 113 million people -- 8.6 percent of India's people -- live in severe poverty, each one of these people experiencing more than 50 percent of weighted deprivations.

• Across nearly every state, poor nutrition is the largest contributor to multidimensional poverty, responsible for 28.3 percent of India's MPI. Not having a household member with at least six years of education is the second largest contributor, at 16 percent. Insufficient access to clean water and child mortality contributes least, at 2.8 percent and 3.3 percent, respectively. Relatively few poor people experience deprivations in school attendance -- a significant gain.

• The poorest district in the country is Alirajpur in Madhya Pradesh, where 76.5 percent of people are poor -- the same as Sierra Leone in Sub-Saharan Africa. Only eight countries have higher rates of MPI. In four districts more than 70 percent of people are poor; these are located in Uttar Pradesh and Madhya Pradesh. Twenty-seven districts have 60 to 70 percent of their people in poverty. At the other end of the scale, in 19 districts less than 1 percent of people are poor, and in 42 districts, poverty rates are 2 to 5 percent.

• In the 134 districts of Maharashtra, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala, there are just two districts with poverty rates above 40 percent. These are Nandurbar in northern Maharashtra bordering Gujarat (60 percent) and Yadgir in northeastern Karnataka, where almost every second person is multidimensionally poor. In Tamil Nadu and Kerala, most district-level headcount ratios hover around 10 percent or less -- rates that are comparable to those of Eastern European and South American regions. Interestingly, districts in the far northern states such as Punjab, Haryana, and Himachal Pradesh show a similar pattern.

• Within India, 40.4 million people live in districts where more than 60 percent of people are poor – 20.8 million live in the poorest districts in Bihar, 10.6 million in the poorest districts in Uttar Pradesh, and the remainder in the poorest districts in Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, and Odisha.

International comparison

• In comparison to India (MPI=0.121), the MPIs of Bangladesh (MPI=0.194), Bhutan (MPI=0.175), Afghanistan (MPI=0.273), Myanmar (MPI=0.176), Nepal (MPI=0.154) and Pakistan (MPI=0.228) are higher. China (MPI=0.017) and Maldives (MPI=0.007), on the other hand, have lower MPIs than India.

• In terms of multidimensional headcount ratio (H), the country (H=27.51 percent) lags behind Bangladesh (H=41.07 percent), Bhutan (H=37.34 percent), Afghanistan (H=56.10 percent), Myanmar (H=38.35 percent), Nepal (H=35.25 percent) and Pakistan (H=43.88 percent), but is ahead of China (H=4.11 percent) and Maldives (1.88 percent).

• In terms of intensity of poverty (A), India (A=43.90 percent) lags behind Bangladesh (A=47.33 percent), Bhutan (A=46.83 percent), Afghanistan (A=48.72 percent), Myanmar (A= 45.92 percent), and Pakistan (A=52.04 percent), but is ahead of China (H=41.38 percent), Nepal (A=43.58 percent) and Maldives (A=36.61 percent).

• If we look at the societal distribution of deprivations in the country among the poor, vulnerable, and non-poor, we see that whereas 91 percent of people experienced any deprivation in 2005-6, it is 82.4 percent in 2015-16 so deprivation-free persons have doubled from 9 percent to 18 percent of the population, and those with very low deprivations rose also. But the percentage of vulnerable people increased by only 2 percent, and across all the poor people, the poorer they were, the more their poverty decreased. So, for example, while 7.3 percent of the population were deprived in 70 percent or more of the weighted indicators in 2005-06, it is 1.2 percent in 2015-16. This slightly technical mapping of all experienced deprivations verifies the societal change that is evident in the faster reduction for the poorest groups, says the report.

• Although the latest data shows that the rate of decline in multidimensional poverty has been the greatest for the most deprived, huge gaps in the level of deprivations, based on religion, caste and regions, still exists.

Rural-urban gap


• In rural India, multidimensional headcount ratio (H) has decreased from 68.0 percent to 36.5 percent during the last 10 years viz. between 2005-06 and 2015-16. In urban India, the same has fallen from 24.6 percent to 9.0 percent between 2005-06 and 2015-16.

• The total number of people affected by non-income poverty in rural areas has lessened by nearly 40.6 percent viz. from 547.5 million in 2005-06 to 325.1 million in 2015-16. Similarly, in urban areas, the total number of people affected by multidimensional poverty has fallen by more than 50 percent viz. from 87.7 million to 39.1 million in the same time span.

• The intensity of poverty (A) in rural India has declined from 51.8 percent to 44.1 percent between 2005-06 and 2015-16. The same in urban areas has fallen from 46.6 percent to 42.6 percent between 2005-06 and 2015-16.

• The country's MPI in rural areas has dropped from 0.352 to 0.161 between 2005-06 and 2015-16. The same in urban areas has lessened from 0.115 to 0.039 during that 10-year span.

Inter-state differences


• The top five states/ UTs in terms of proportion of people affected by non-income poverty in 2015-16 are Bihar (52.2 percent), Jharkhand (45.8 percent), Madhya Pradesh (40.6 percent), Uttar Pradesh (40.4 percent) and Chhattisgarh (36.3 percent).

• The bottom five states/ UTs in terms of proportion of people affected by non-income poverty are Kerala (1.1 percent), Delhi (3.8 percent), Sikkim (4.9 percent), Goa (5.6 percent) and Punjab (6.0 percent). 

• The highest fall in multidimensional headcount ratio (H) between 2005-06 and 2015-16 has been noted for Arunachal Pradesh (35.7 percentage points), followed by Tripura (34.3 p.p.), Andhra Pradesh (34.1 p.p.), Chhattisgarh (33.7 p.p.) and Nagaland (33.6 p.p.).

• In 2015-16, the top five states/ UTs in terms of number of people affected by non-income poverty are Uttar Pradesh (82.9 million), Bihar (60.4 million), Madhya Pradesh (34.8 million), West Bengal (25.9 million) and Rajasthan (22.9 million). The bottom five states/ UTs in terms of number of people affected by non-income poverty are Sikkim (27,000), Goa (88,000), Mizoram (1.08 lakh), Arunachal Pradesh (2.73 lakh) and Nagaland (3.70 lakh).

• In 2015-16, the four poorest states -- Bihar, Jharkhand, Uttar Pradesh, and Madhya Pradesh -- were still home to 196 million MPI poor people -- over half of all the MPI poor people in India. 

• In absolute terms, the highest drop in the number of people affected by multidimensional poverty between 2005-06 and 2015-16 has been noted for Uttar Pradesh (50.3 million), followed by West Bengal (26.8 million), Andhra Pradesh (26.6 million), Maharashtra (21.6 million) and Karnataka (20.1 million). 

• The top five states/ UTs in terms of intensity of poverty are Bihar (47.2 percent), Rajasthan & Mizoram (both 45.2 percent), Uttar Pradesh & Jharkhand (both 44.7 percent), Assam (44.6 percent) and Meghalaya (44.5 percent).

• The bottom five states/ UTs in terms of intensity of poverty are Goa (37.2 percent), Kerala & Himachal Pradesh (both 37.4 percent), Tamil Nadu (37.5 percent), Sikkim (38.1 percent) and Karnataka (39.8 percent).

• The top five states/ UTs in terms of MPI are Bihar (MPI=0.246), Jharkhand (MPI=0.205), Uttar Pradesh & Madhya Pradesh (both MPI= 0.180), Assam (MPI=0.160) and Odisha (MPI=0.154).

• The bottom five states/ UTs in terms of MPI are Kerala (MPI=0.004), Delhi (MPI=0.016), Sikkim (MPI=0.019), Goa (MPI=0.021) and Punjab (MPI=0.025).

• Among states, Jharkhand had the greatest improvement in terms of MPI, with Arunachal Pradesh, Bihar, Chhattisgarh, and Nagaland only slightly behind.

Multidimensional poverty among religious groups


• Every third Muslim is multidimensionally poor, compared to every sixth Christian.

• Among Muslims (H=60.3 percent in 2006; H=31.1 percent in 2016), multidimensional headcount ratio is the highest, followed by the Hindus (H=54.9 percent in 2006; H=27.7 percent in 2016) and the Christians (H=38.8 percent in 2006; H=16.1 percent in 2016).

• The intensity of poverty is higher among Muslims (A=54.9 percent in 2006; A=46.4 percent in 2016) as compared to rest of the religions. MPI is higher among Muslims (MPI=0.331 in 2006; MPI=0.144 in 2016) as compared to rest of the religions. 

• In absolute terms, MPI, A and H reduced faster for Muslims as compared to other religious groups.

Multidimensional poverty among castes


• Traditionally disadvantaged subgroups such as rural dwellers, lower castes and tribes, Muslims, and young children are still the poorest in 2015-16. For example, half of the people belonging to any of the Scheduled Tribes (STs) communities are MPI poor, whereas only 15 percent of the higher castes are.

• Multidimensional headcount ratio (H) among the Scheduled Castes (SCs) has reduced from 65.0 percent in 2006 to 32.9 percent in 2016 -- a drop by 32.1 percentage points.

• Multidimensional headcount ratio (H) among the Scheduled Tribes (STs) has fallen from 79.8 percent in 2006 to 50.0 percent in 2016 -- a fall by 29.8 percentage points.

• The same among the Other Backward Classes (OBCs) has decreased from 57.9 percentage in 2006 to 26.9 percent in 2016 -- a decrease by 31.0 percentage points.

• MPI has decreased the most in absolute terms for STs (-0.218), followed by SCs (-0.193) and OBCs (-0.174).

Multidimensional poverty among age-groups


• Two in five children under 10 years of age are poor (41 percent), but less than one quarter of people aged 18 to 60 (24 percent) are.

• Multidimensional headcount ratio (H) is the highest among the age-group 0-9 years (viz. H=40.9 percent) in 2016. Similarly, MPI is the highest among the age-group 0-9 years (MPI=0.371 in 2006; MPI=0.189 in 2016).

• If one considers the 364 million people who are MPI poor in 2015-16, 156 million (34.6 percent) are children. In fact, of all the poor people in India, just over one in four -- 27.1 percent -- has not yet celebrated their tenth birthday.

• Multidimensional poverty among children under 10 has fallen the fastest. In 2005/6 there were 292 million poor children in India, so the latest figures represent a 47 percent decrease or 136 million fewer children growing up in multidimensional poverty.

• The highest absolute decline in censored headcounts between 2005-06 and 2015-16 has been observed for assets (-27.9 percentage points), followed by cooking fuel (-26.6 p.p.), sanitation (-25.8 p.p.), nutrition (-22.9 p.p.), housing (-21.3 p.p.) and electricity (-20.3 p.p.).
 
 



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