ISSUE: POVERTY IN INDIA
WHY IN NEWS?
Speaking in Ahmedabad on Monday, President Donald Trump praised India for having lifted “over 270 million people out of poverty” in “a single decade”, and said that “12 Indian citizens are lifted out of extreme poverty every single minute of every single day”.
What is poverty, and how is it measured?
Six official committees have so far estimated the number of people living in poverty in India — the working group of 1962; V N Dandekar and N Rath in 1971; Y K Alagh in 1979; D T Lakdawala in 1993; Suresh Tendulkar in 2009; and C Rangarajan in 2014. The government did not take a call on the report of the Rangarajan Committee; therefore, poverty is measured using the Tendulkar poverty line. As per this, 21.9% of people in India live below the poverty line.
What does the basket of goods include?
The PLB comprises goods and services considered essential to a basic minimum standard of living — food, clothing, rent, conveyance, and entertainment. The price of the food component can be estimated using calorie norms or nutrition targets. Until the 1990s, the calorie norms method was used — it was based on the minimum number of calories recommended by the Indian Council of Medical Research (ICMR) for a household of five members. However, this method does not consider the different food groups that are essential for health — this is why the Tendulkar Committee targeted nutritional outcomes.
The Lakdawala Committee assumed that health and education is provided by the state — therefore, expenditure on these items was excluded from the consumption basket it proposed. Since expenditure on health and education rose significantly in the 1990s, the Tendulkar Committee included them in the basket. As a result of revisions to the basket and other changes in the method of estimation, the percentage of people living below the poverty line in 1993-94 rose from 35.97% to 45.3%.
Why are poverty numbers important?
The PLB has been the subject of much debate. The 1962 group did not consider age and gender-specific calorie requirements. Expenditure on health and education were not considered until the Tendulkar Committee — which was criticized for setting the poverty line at just Rs 32 per capita per day in urban India (and at Rs 27 in rural India). And the Rangarajan Commission was criticized for selecting the food component arbitrarily — the emphasis on food as a source of nutrition overlooks the contribution of sanitation, healthcare, access to clean water, and prevalence of pollutants.
Poverty numbers matter because central schemes like Antyodaya Anna Yojana (which provides subsidided foodgrains to households living below the poverty line) and Rashtriya Swasthya Bima Yojana (health insurance for BPL households) use the definition of poverty given by the NITI Aayog or the erstwhile Planning Commission. The Centre allocates funds for these schemes to states based on the numbers of their poor. Errors of exclusion can deprive eligible households of benefits.
In what other ways can poverty be estimated?
In 2011, Oxford University researchers Sabina Alkire and James Foster devised the multidimensional poverty index (MPI) to capture poverty using 10 indicators: nutrition, child mortality, years of schooling, school attendance, ownership of assets, and access to proper house, electricity, drinking water, sanitation, and clean cooking fuel. Poverty is measured in terms of deprivation in at least a third of these indicators. In 2015-16, 369.546 million (nearly 37 crore) Indians were estimated to meet the deprivation cut-off for three or more of the 10 indicators.
While the overall headcount multidimensional poverty ratio in 2015-16 was 27.9%, the number was 36.8% for rural and 9.2% for urban India. There were wide variations across states — poverty was the highest for Bihar (52.5%), followed by Jharkhand (46.5%), Madhya Pradesh (41.1%), and Uttar Pradesh (40.8%). It was the lowest for Kerala (1.1%), Delhi (4.2%), Punjab (6.1%), Tamil Nadu (7.3%) and Himachal Pradesh (8.1%).
The MPI is a more comprehensive measure of poverty because it includes components that capture the standard of living more effectively. However, uses “outcomes” rather than expenditure — the presence of an undernourished person in the household will result in it being classified as “poor”, regardless of the expenditure on nutritious food.
So what is the current “level” of poverty in India?
The National Statistical Office (NSO) Report on Household Consumer Expenditure for 2017-18 was junked in 2019 — so there are no data to update India’s poverty figures. Even the MPI report published by Oxford Poverty and Human Development Initiative used data from the fourth round of the National Family Health Survey, figures for which are available only until 2015-16.
Social scientist S Subramanian used data from a leaked version of the consumer expenditure data to conclude that the incidence of poverty in India increased from 31.15% to 35.1% between 2011-12 and 2017-18. The absolute number of poor people also increased from 270 million to 322.22 million over the same period, which translates to 52 million more poor people in six years.
BLUE DOT NETWORK
WHY IN NEWS?
With US President Donald Trump on his maiden visit to India, the two countries are expected to have discussed the Blue Dot Network, a proposal that will certify infrastructure and development projects. Observers have referred to the proposal as a means of countering China’s Belt and Road Initiative (BRI), which was launched over six years ago.
What is the Blue Dot network?
Led by the US’s International Development Finance Corporation (DFC), the Blue Dot network was jointly launched by the US, Japan (Japanese Bank for International Cooperation) and Australia (Department of Foreign Affairs and Trade) in November 2019 on the sidelines of the 35th ASEAN Summit in Thailand.
It is meant to be a multi-stakeholder initiative that aims to bring governments, the private sector and civil society together to promote “high quality, trusted standards for global infrastructure development”.
The projects that are approved will get a “Blue Dot”, thereby setting universal standards of excellence, which will attract private capital to projects in developing and emerging economies.
Countering China’s Belt and Road Initiative?
The proposal for the Blue Dot network is part of the US’s Indo-Pacific strategy, which is aimed at countering Chinese President Xi Jinping’s ambitious BRI.
Probal Dasgupta, a strategic expert, told The Indian Express that while Blue Dot may be seen as a counter to BRI, it will need a lot of work for two reasons. First, there is a fundamental difference between BRI and Blue Dot — while the former involves direct financing, giving countries in need immediate short-term relief, the latter is not a direct financing initiative and therefore may not be what some developing countries need. “The question is if Blue Dot is offering first-world solutions to third-world countries?”
Secondly, Dasgupta mentions that Blue Dot will require coordination among multiple stakeholders when it comes to grading projects. “Given the past experience of Quad, the countries involved in it are still struggling to put a viable bloc. Therefore, it remains to be seen how Blue Dot fares in the long run.” (Quad is an informal strategic dialogue between the US, Japan, Australia and India)
US foreign policy towards China
Prior to 2001, US foreign policy was focussed towards integrating China into its plan, but this changed after China’s emergence as a global superpower. Under Barack Obama, US foreign policy started shifting focus to Asia, where the US wanted to counter China’s growing influence.
In fact, the National Security Strategy (NSS) under Trump says the following, “China seeks to displace the United States in the Indo-Pacific region, expand the reaches of its state-driven economic model, and reorder the region in its favour.”
From the US’s point of view, the Indo-Pacific region, which stretches from India’s west coast to the west coast of the US, is the most economically dynamic and populous part of the world.
Further, the US sees China’s infrastructure investments and trade strategies as reinforcing its geopolitical aspirations, including efforts to build and militarise outposts in the South China Sea, which as per the US, restricts the free movement of trade and undermines regional stability.
ISSUE: AIR POLLUTION IN INDIAN CITIES
India accounts for two-thirds of the world’s most polluted cities — 21 of the most polluted 30 cities; 14 of the highest 20; and 6 of the highest 10 — in the 2019 World Air Quality Report released by the pollution tracker IQAir and Greenpeace on Tuesday. The ranking is based on a comparison of PM2.5 levels. Among countries, when population is taken into account, average PM2.5 pollution is highest in Bangladesh, followed by Pakistan, while India is at number 5.
While cities in India, on average, exceed the WHO target for annual PM2.5 exposure by 500%, national air pollution decreased by 20% from 2018 to 2019, with 98% of cities experiencing improvements. These improvements are believed to be largely a result of economic slowdown, IQAir said.
It said 90% of the global population breathing unsafe air. “While the new coronavirus is dominating international headlines, a silent killer is contributing to nearly 7 million more deaths a year: air pollution,” IQAir CEO Frank Hammes said in a statement.
China is at number 11 in the list of countries affected by population, with population factored in. Chinese cities achieved a 9% average decrease in PM2.5 levels in 2019.