[Dec 2007, Volume 4 Quarterly Issue] Pdf File size - The IIPM Think ...
[Dec 2007, Volume 4 Quarterly Issue] Pdf File size - The IIPM Think ...
[Dec 2007, Volume 4 Quarterly Issue] Pdf File size - The IIPM Think ...
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MORE MARKETS, LESS GOVERNMENT<br />
inability of market forces to step in<br />
and jump-start agricultural growth.<br />
According to Professor Jeffery Sachs<br />
of Columbia University, “<strong>The</strong> whole<br />
thing was based on the idea that if you<br />
take away the government for the poorest<br />
of the poor, markets will somehow<br />
solve the problems, but markets can’t<br />
step in and won’t step in when people<br />
have nothing. And if you take away<br />
help, you leave them to die.” 3<br />
<strong>The</strong> example of sub-Saharan Africa<br />
clearly illustrates the criticality of the<br />
role of a pro-poor ‘welfare state’ in<br />
safeguarding the survival needs of the<br />
poorest of the poor, who do not offer<br />
any investment incentives to profitseeking<br />
market forces.<br />
According to the United Nations-<br />
Millennium Development Goals<br />
(MDGs) report of <strong>2007</strong>, the share of<br />
the poorest fifth of populations in developing<br />
regions in national consumption<br />
decreased from 4.6 to 3.9 percent<br />
between 1990 and 2004. Widening income<br />
inequality is of particular concern<br />
in Eastern Asia, where the share<br />
of consumption among the poorest<br />
people declined dramatically during<br />
this period. Inequality is the highest in<br />
Latin America, the Caribbean and in<br />
sub-Saharan Africa, where the poorest<br />
fifth of the people account for only<br />
about three percent of national income,<br />
despite increased involvement<br />
of market forces in local economies.<br />
Internationally, 46 countries of the<br />
world have become poorer today than<br />
they were in 1990, according to Human<br />
Development Report 2004.<br />
Nearly 1300 million people live in<br />
absolute poverty, earning less than one<br />
dollar a day, while about 3000 million<br />
people, more than a half of the world’s million people are officially registered<br />
population live on less than two dollars as unemployed, besides an additional<br />
a day. According to the International 700 million underemployed people.<br />
Labour Organization (ILO), over 120 Instances of poverty, which often are<br />
Growing Inequality In <strong>The</strong> World<br />
Share Of Poorest Quintile In National Consumption,<br />
1990 And 2004 (Percentage)<br />
Latin America & the Caribbean<br />
2.8<br />
2.7<br />
3.4<br />
1990<br />
3.4<br />
2004<br />
Eastern Asia<br />
7.1<br />
4.5<br />
Western Asia<br />
5.9<br />
5.4<br />
South-Eastern Asia<br />
6.2<br />
6.1<br />
CIS<br />
7.9<br />
6.2<br />
Northern Africa<br />
6.2<br />
6.3<br />
Southern Africa<br />
7.2<br />
6.7<br />
Transition Countries Of South-Eastern Europe<br />
8.3<br />
7.8<br />
Developing Regions<br />
4.6<br />
3.9<br />
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0<br />
Source: UN MDG Report <strong>2007</strong><br />
THE INDIA ECONOMY REVIEW<br />
69