How
many poor people are there in India? That should be a fairly simple
question to answer. Only, it isn't. In fact, there is no unanimity
among planners, economists and the authorities even on the raw
data that should be used. Should it be data provided by the National
Sample Survey Organisation (NSSO)? Should it be the figures supplied
by the National Accounts Statistics? Or should we use the formula
used by the World Bank-which defines the poor as those living
on less than $1 (Rs 45) a day? Interestingly, there is a broad
agreement on one point-that the government's existing definition
of poverty is woefully inadequate and unsatisfactory. Hence, the
need for a new, more representative, definition.
The Centre has recently notified 13 new parameters
for defining the poverty line. They include landholding, type
of dwelling, clothing, food security, hygiene, capacity for buying
commodities, literacy, minimum wages earned by households, means
of livelihood, education of children, debt, migration and priority
for assistance. These are all issues that crop up regularly in
any discussion on poverty, so the government is obviously trying
to cover all its bases.
The earlier categorisation-households that
could afford 2,100 calories per day in urban areas and 2,400 calories
in rural areas were deemed to be above the poverty line-ignored
all these other issues that, too, are central to a person's life.
Thus, as in December 2005, rural households that spent more than
Rs 368 per month and urban households more than Rs 559 per month
were considered to be above the poverty line.
According to this definition, which is used
by the Planning Commission, 26 per cent of Indians were below
the poverty line (BPL) in 1999-2000. Interestingly, the World
Bank estimates that nearly 36 per cent earns less than $1 a day
and are, therefore, BPL. But independent expert and Managing Director
of Oxus Research & Investments Surjeet Bhalla maintains that
only 15 per cent of the population are BPL households, according
to data from the National Accounts Statistics.
So, will the new definition change the face
of Indian poverty? Not really. Why? Experts point to the fact
that some of the new criteria have already been factored into
the consumption expenditure referred to above. For instance, the
new consumption basket (used to calculate consumption expenditure)
includes both food-foodgrains, milk and milk products oils, meat
and fish-and non-food-clothing and footwear, rent, commercial
and non-commercial fuel, medical care and health services, transport
and communications, recreation and education-items.
But the new parameters, though more representative,
come with their own problems. "How do you, for instance,
put a figure on issues like priority for assistance and hygiene?"
asks Bhalla, adding that the new definition will make comparisons
with earlier years virtually impossible. So, how will the government
now figure out how many people have actually come out of the poverty
hell hole over the last few years? The government is still working
that out.
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