APPENDIX III.1: Poverty Measures
Datt, G. (1996), Poverty in India 1951-92: Trends and Decompositions, World Bank, mimeo Datt, G., and M. Ravallion (1996), Why Did Poverty Increase Sharply After India’s Macroeconomic Stabilization?, World Bank, mimeo.
Ravallion, M., and G. Datt (1996b), “How Important to India’s Poor Is the Sectoral Composition of Economic Growth?”, The World Bank Economic Review, 10, 1–25.
Tendulkar, S.D., and L.R. Jain (1996), Indian Economic Reforms and Poverty, Paper presented at the 14th European Conference on Modern South Asian Studies, Copenhagen.
World Bank (1996), Five Years of Stabilization and Reform: The Challenges Ahead, India: Country Economic Memorandum: Washington, DC.
Prepared by Martin Mühleisen.
The Planning Commission defines poverty relative to a consumption level equivalent to a daily food intake of 2, 100-2,400 calories.
Simple poverty rates do not reflect for the severity of poverty, i.e., how far people fall below the poverty line. By contrast, severity measures account for both the number of people below, and their relative distance from, the poverty line.
Most of this was achieved before 1970.
Datt and Ravallion (1996) attempted to relate the poverty increase between 1991/92 and 1993/94 to changes in these fundamental determinants. However, only about 36 percent of the change in the poverty rate could be explained through an econometric model that included variables for inflation, wages, agricultural yields, and development expenditure.
The strong impact of adverse weather conditions is underlined by the fact that poverty increased most in the grain producing states (Tendulkar and Jain ).
Cumulative inflation measured by the consumer price index for agricultural laborers (33 percent during 1991/92-1992/93) was significantly higher than in the price index for urban industrial workers (25 percent).
Employment statistics cover mainly the formal sector of the economy that employs 8 percent of the labor force.
Increased spending on these schemes is believed to have contributed to the increase in rural non-farm employment during the 1980s, as well as boosting unskilled wages in rural areas over this period (ILO , Gupta ).
According to ILO (1996) estimates, urban employment increased by an average 3 percent between 1990/91 and 1992/93. Since the increase in organized employment was only 0.8 percent between March 1991 and March 1993, most of the additional labor demand fell on the informal sector.
According to the World Bank (1996), the agricultural terms of trade improved by 6 percent between 1990/91 and 1994/95.
According to ILO (1996), even conservative estimates suggest that more than 16 percent of employees in the organized sector are redundant.
At present, the NRF is confined to centrally owned public enterprises, and mainly finances voluntary retirement schemes.
According to recent surveys, a substantial share of PDS ration cards held by households living above the poverty line.