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ECONOMIC AFFAIRS

development and 44th for inter-
generational equity,” the report said.
Norway topped the rankings, while
China was at 26th and Pakistan at 47.
Incidence of Poverty Last year, India was ranked 60th among
79 developing economies last year, as
against China’s 15th and Pakistan’s
Gradually Declining in India 52nd position. Globally, income
inequality has risen or remained
stagnant in 20 of the 29 advanced
Both labour productivity and GDP per capita posted strong growth rates over economies, and poverty has increased
the past five years, while employment growth has slowed in 17. Most emerging economies have
—By Subhashis Mittra improved in these respects, with 84%
of them registering a decline in poverty,
though their absolute levels of
The incidence of poverty has declined emerging economies. “This has led to
inequality remain much higher.
in India over the past five years, but 6 the emergence of a worldwide
In both advanced and emerging
out of 10 Indians still live on less than consensus on the need for a more
economies, wealth is significantly more
$3.20 per day. And quite interestingly, inclusive and sustainable model of
unequally distributed than income. This
the richest 1 per cent in India cornered growth and development that
problem has improved little in recent
73 per cent of the wealth generated in promotes high living standards for all.”
years, with wealth inequality rising in
the country last year, says a report India has been ranked 62nd among
49 of the 103 economies. 67 crore
released by the international rights 74 emerging economies on World
Indians comprising the population’s
group Oxfam hours before the start of
poorest half saw their wealth rise by
the annual congregation of the rich and
powerful from across the world for the In Brief just 1 per cent, as per the survey
WEF meetin Davos.  Incidence of poverty has released by the international rights
APPALLING STATE OF POVERTY IN group Oxfam.
INDIA declined in India over the GRIM GLOBAL SCENARIO
past five years. The situation appears even more grim
The new survey indeed presents a
 6 out of 10 Indians still live globally, where 82 per cent of the
worrying picture of rising income
on less than $3.20 per day. wealth generated last year worldwide
inequality. The annual report noted that
given the prevalence of inequality both  Slow progress in living went to the 1 per cent, while 3.7 billion
in terms of income and wealth, there is standards and widening people that account for the poorest
substantial scope for improvement for inequality have contributed half of population saw no increase in
their wealth. Last year’s survey had
India in this aspect. Both labour to political polarization.
productivity and GDP per capita  The wealth of India’s richest showed that India’s richest 1 per cent
posted strong growth rates over the 1% increased by over Rs 20.9 held a huge 58 per cent of the country’s
past five years, while employment total wealth — higher than the global
lakh crore during 2017. figure of about 50 per cent. This year’s
growth has slowed. Healthy life
 Globally, income inequality survey also showed that the wealth of
expectancy also increased by
has risen or remained India’s richest 1 per cent increased by
approximately three years to 59.6.
stagnant in 20 of the 29 over Rs 20.9 lakh crore during 2017
Overall, it reiterated that growth is a
advanced economies. — an amount equivalent to total budget
necessary but not sufficient condition
of the central government in 2017-18,
for robustly rising median living
Oxfam India said.
standards.
The report titled ‘Reward Work, Not
“Accordingly, policymakers and Economic Forum’s Inclusive
Wealth’, Oxfam said, reveals how the
citizens alike would benefit from having Development Index. Although India
global economy enables wealthy elite
an alternative, or at least was ranked lower than Brazil, Russia,
to accumulate vast wealth even as
complementary, bottom-line metric China and even Pakistan, it was among
hundreds of millions of people struggle
that measures the level and rate of the 10 emerging economies with
to survive on poverty pay. “2017 saw
improvement in shared socioeconomic ‘advancing’ trend. “The 2018 index
an unprecedented increase in the
progress,” the report said. It further measures progress of 103 economies
number of billionaires, at a rate of one
said that slow progress in living on three individual pillars-growth &
every two days. Billionaire wealth has
standards and widening inequality development, inclusion & inter-
risen by an average of 13 per cent a
have contributed to political generational equity and sustainability.
year since 2010 — six times faster than
polarization and erosion of social Of the three pillars, India ranks 72nd
the wages of ordinary workers, which
cohesion in many advanced and for inclusion, 66th for growth &
58 Competition Wizard March 2018