Archive for ‘poverty’

13/06/2014

Malnutrition: The hungry and forgotten | The Economist

THE propaganda message, scrawled in white paint on the side of a wood-frame house, could hardly be more blunt: “Cure stupidity, cure poverty”. The cure for both, in one of China’s poorest counties, seems to be a daily nutritional supplement for children. At a pre-school centre in Songjia, as in more than 600 other poor villages across China, children aged three to six gather to get the stuff with their lunch. If China is to narrow its urban-rural divide, thousands more villages will need to do this much, or more. Widespread malnutrition still threatens to hold back a generation of rural Chinese.

China used to have more undernourished people than anywhere in the world except India: about 300m, or 30% of the population in 1980. Economic growth has pulled half of them out of poverty and hunger. But that still leaves about 150m, mainly in the countryside. Out of 88m children aged six to 15 in the poorest rural areas, around a third suffer from anaemia because of a lack of iron, according to survey data. Iron deficiency can stunt brain development, meaning many of these children will grow up ill-equipped to better their lot. “They are far behind compared with urban kids,” says Lu Mai, secretary-general of China Development Research Foundation (CDRF), a government-run charity. Mr Lu and other experts have been prodding the government to do more. The state subsidises school lunches for 23m children in the 680 poorest counties, as well as nutritional supplements for hundreds of thousands of babies. It is not enough.

Even where children get the calories they need—as most do in rural China—they are not being fed the right things. In one study of 1,800 infants in rural Shaanxi province in China’s north-west, 49% were anaemic and 40% were significantly hampered in developing either cognitive or motor skills. Fewer than one in ten were stunted or wasting, meaning that in most cases the problem was not lack of calories, but lack of nutrients.

China shares this affliction with much of the developing world. But it has the resources to respond. Parents have the means to feed their babies properly. And with a relatively modest investment, the government could do a better job of improving childhood nutrition. The difficulties lie in educating parents—and officials.

Babies are probably 50% malnourished” in poor rural areas, says Scott Rozelle, co-director of the Rural Education Action Programme (REAP), a research outfit at Stanford University which has done extensive tests on anaemia in rural China. “But almost no mums are malnourished.” Mr Rozelle says that in one of his surveys rural mothers showed a better understanding of how to feed pigs than babies: 71% said pigs need micronutrients, whereas only 20% said babies need them.

Mr Lu’s charity and REAP argue that a nutritional supplement called ying yang bao should be available to rural mothers. A powdery concoction of soyabeans, iron, zinc, calcium and vitamins, it is supposed to be sprinkled on food once a day. Each packet costs less than one yuan (16 cents) to produce and one yuan to distribute, paid by the government.

Trials conducted since 2006 have consistently shown that ying yang bao reduces anaemia and improves growth and development in infants and toddlers. But persuading parents of this (or grandparents, if the parents are off working in cities) has not been easy. About half give up feeding it to their children. “Poor people feel very suspicious”, Mr Lu says. They wonder if free supplements are unsafe, or fake. “Then they worry will we charge later?”

This may be the legacy in rural China of years of seeing government invest little—and often charge a lot—for basic services. Moreover, at the local level the workers who are meant to help mothers may well be family-planning officials responsible for controlling population, a role that hardly inspires trust.

At higher levels of government, too, officials need a lot of persuading that nutrition programmes are not a waste of public money. In 2011 China began instituting a programme similar to America’s federal school-lunch programme for the poor, at a cost of 16 billion yuan ($2.6 billion) a year. But one assessment suggests that perhaps half the schools are providing substandard, uncooked meals, partly because some local governments refuse to foot the bill for kitchens and cooks.

via Malnutrition: The hungry and forgotten | The Economist.

08/05/2014

Study Released at World Urban Forum Shows Value of Waste Pickers – Businessweek

You don’t rummage through piles of garbage looking for recyclable items if you have other options in life. Waste pickers are pretty close to the bottom of the career prestige ladder. But they do provide a useful service, simultaneously reducing the volume of waste that goes into landfills and providing useful raw materials like glass, plastic, and paper to manufacturers.

Indian rag pickers search for usable material at a Dhapa dump site, the waste zone in eastern Kolkata

A study released last week at the World Urban Forum in Medellín, Colombia, based on interviews with hundreds of waste pickers, street vendors, and home workers in Africa, Asia, and Latin America, finds that all three types of workers “could make greater contributions if local policies and practices supported, rather than hindered, their work.” The study was performed by Women in Informal Employment: Globalizing and Organizing (Wiego) and its partners in what’s known as the Inclusive Cities project.

Waste pickers are a prime example. Local governments often seem ambivalent about whether to support them or shut them down—for example, by trucking away waste and burying or burning it before anyone has a chance to pick through it.

via Study Released at World Urban Forum Shows Value of Waste Pickers – Businessweek.

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01/05/2014

China’s Income-Inequality Gap Widens Beyond U.S. Levels – Businessweek

The gap between China’s rich and poor is now one of the world’s highest, surpassing even that in the U.S., according to a report being released this week by researchers at the University of Michigan.

The metric used in these studies, the Gini coefficient, would be zero in a society in which all income is equally distributed, while a score of one would reflect a society in which all income is concentrated in the hands of a single individual. Over a three-decade period starting in 1980—shortly after China’s economic reform and opening commenced—the Gini coefficient has grown from 0.3 to 0.55 in 2010.

In the U.S., by contrast, the index reads 0.45. Anything over 0.50 is considered “severe disparity,” says the report in the Proceedings of the National Academy of Sciences. The authors used data from seven separate surveys conducted by a number of Chinese university-affiliated organizations, including Peking University’s Institute of Social Sciences.

via China’s Income-Inequality Gap Widens Beyond U.S. Levels – Businessweek.

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26/03/2014

Congress Bets on Welfare Programs – India Real Time – WSJ

India’s Congress party is doubling down on welfare.

Facing what is shaping up to be a steep uphill battle to win a third term in office, Congress on Wednesday outlined a policy agenda that would expand healthcare, housing and other benefits for the poor and disadvantaged.

Rahul Gandhi, who is leading Congress’s campaign in the voting that begins in April, also said a new Congress government would invest $1 trillion in infrastructure projects and remove hurdles to business.

For India’s poor to thrive, he said, “we need to unleash business.”

Still, Congress’s tone is sharply different than the one adopted by the opposition Bharatiya Janata Party and its standard bearer, Narendra Modi, who emphasizes pro-business policies and infrastructure building – while saying government also needs to help the poor.

During the Congress-led government’s most recent decade in office, subsidy spending has soared, from 459 billion rupees in the year ended March 31, 2005, to an estimated 2.55 trillion in the 12 months ending March 31 of this year.

By sticking with and expanding such programs, Congress is hoping it will appeal to its base in India’s impoverished countryside.

Congress President Sonia Gandhi said if re-elected, Indians would get improved healthcare, an expansion of housing benefits for the landless and a boost in social security hand-outs for the elderly and disabled people.

These promises echo themes that have run through the party’s history and have dominated the political careers of Mrs. Gandhi and her son, Rahul, who is leading Congress’s election campaign.

The central Congress belief: A government must engineer economic equality and inclusive growth, even as it celebrates free markets.

“The future of India is the poor people of India, those are the people the Congress party works for,” Mr. Gandhi said. “The biggest problem I have with the BJP is that the India of the BJP’s dreams is an India where a few people run this country.”

Mr. Gandhi, the party’s vice president who took charge this year, has tried to frame the electoral campaign as a choice between these two approaches.

He has gone after the BJP’s prime ministerial candidate Narendra Modi for what he calls an exclusive focus on building roads and airports without addressing the question of who gets access to them.

Mr. Modi’s message, however, is striking a chord with many Indians, who are fed up with government inefficiency, corruption allegations and a slowing economy. Many young voters – even those in rural India who through technology and migration are influenced by urban sentiment – are frustrated with a lack of jobs and strong leadership and are drawn to the BJP’s promise of development.

Opinion polls show widespread dissatisfaction with the current situation in India and Mr. Modi is widely considered the frontrunner for the premiership.

via Congress Bets on Welfare Programs – India Real Time – WSJ.

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06/03/2014

* India’s path from poverty to empowerment | McKinsey & Company

India has made encouraging progress by halving its official poverty rate, from 45 percent of the population in 1994 to 22 percent in 2012. This is an achievement to be celebrated—yet it also gives the nation an opportunity to set higher aspirations. While the official poverty line counts only those living in the most abject conditions, even a cursory scan of India’s human-development indicators suggests more widespread deprivation. Above and beyond the goal of eradicating extreme poverty, India can address these issues and create a new national vision for helping more than half a billion people attain a more economically empowered life.

MGI senior fellow Anu Madgavkar and McKinsey director Rajat Gupta discuss India’s prospects for raising living standards and ending extreme poverty.

To realize this vision, policy makers need a more comprehensive benchmark to measure gaps that must be closed and inform the allocation of resources. To this end, the McKinsey Global Institute (MGI) has created the Empowerment Line, an analytical framework that determines the level of consumption required to fulfill eight basic needs—food, energy, housing, drinking water, sanitation, health care, education, and social security—at a level sufficient to achieve a decent standard of living rather than bare subsistence.

In applying this metric to India, we found that in 2012, 56 percent of the population lacked the means to meet essential needs. By this measure, some 680 million Indians experienced deprivation, more than 2.5 times the population of 270 million below the official poverty line. Hundreds of millions have exited extreme poverty but continue to struggle for a modicum of dignity, comfort, and security. The Empowerment Gap, or the additional consumption required to bring these 680 million people to the level of the Empowerment Line, is seven times higher than the cost of eliminating poverty as defined by the official poverty line (exhibit).

via India’s path from poverty to empowerment | McKinsey & Company.

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20/02/2014

A New Way to Measure Poverty in India – India Real Time – WSJ

How should you measure poverty?

It is a question that has generated enormous controversy in India. The country’s government says that since the mid-1990s, the number of people living below the official poverty line has dropped by more than half, hitting 270 million, or 22% of the population, in 2012.

Still, India continues to rank extremely low in United Nations’ measures of well-being. India ranked 136 out of 186 countries in the 2012 U.N. Human Development Index and 94 out 119 in the U.N. World Food Programme’s Global Hunger Index.

The Indian government sets its official poverty line at 816 rupees per person per month in rural areas and 1,000 rupees per person per month for city dwellers. That works out to about 40 cents a day in the countryside and 50 cents a day in the city.

A new study by the McKinsey Global Institute – the research arm of consulting company McKinsey – says that such a gauge of extreme poverty has its place. But it argues India should focus instead on a more comprehensive measure of what it would take to satisfy a person’s basic needs for food, energy, housing, drinking water, sanitation, healthcare, schooling and social security.

McKinsey calls its new measure an “empowerment line.” It is the level where the report’s authors conclude that India’s citizens can get out of poverty and have the resources to build better lives for themselves, rather than scrape along at subsistence levels. McKinsey set its empowerment line at 1,336 rupees a month – roughly 50% above the government poverty line.

“It’s an expanded definition of poverty and aims to calculate the escape velocity needed to get people sustainably out of poverty,” said Anu Madgavkar, a senior fellow at the institute in Mumbai.

According to McKinsey’s calculations, about 680 million people, or 56% of Indians, now live below the empowerment line. Insufficient and ineffective public programs, poor agricultural productivity and a lack of better jobs all conspire to keep people poor.

via A New Way to Measure Poverty in India – India Real Time – WSJ.

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27/01/2014

* Nearly 100 mln people suffering from poverty in China – Xinhua | English.news.cn

The latest statistics show there are still nearly a hundred million people suffering from poverty in China. Officials in charge of China\’s poverty alleviation work said in a briefing that China has made remarkable progress in terms of poverty reduction.

Under the international standards of poverty relief, China has helped more than six hundred million people out of poverty. China will promote rural poverty alleviation through an innovative mechanism. Officials said that China has now decided to set up a precise poverty reduction mechanism, and make sure those in need will receive adequate support.

China also plans to establish a complete database covering all poverty-stricken people by the end of this year. Officials also pointed out that there are still challenges facing China\’s poverty reduction work, including a detailed monitoring of the allocation of poverty-relief funds.

via Nearly 100 mln people suffering from poverty in China – Xinhua | English.news.cn.

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26/01/2014

* Poverty relief to become priority for poor counties – Xinhua | English.news.cn

The Chinese government seems to appreciate the management axiom that “you don’t manage what you don’t measure”. When implemented, this new ruling should be good for the poor as well as ensure that some local authorities don’t jack up their debt any further to increase their GDP.

“Chinese officials in poverty-stricken counties can stop worrying too much about regional GDP figures from now on, as the central authorities have moved to make poverty relief the priority for their work.

The country will reform the evaluation system for officials from poor counties by prioritizing the work of poverty reduction rather than the regional GDP, according to a guideline released Saturday jointly by the Central Committee of the Communist Party of China and the State Council, the Cabinet.

GDP figures will no longer be a standard for counties with fragile ecology or where development is restricted by the government to ensure sustainable growth, the guideline said.

\”The country will take improving the livelihood of people in poverty and reducing poor population as major indicators\” to guide officials in poor regions to put their work priority on poverty relief, it said.

Chinese leaders have recently set new standards for local officials, stressing that their performance cannot be simply based on regional GDP growth rates, but should include resource and environmental costs, debt levels and work safety.”

via Poverty relief to become priority for poor counties – Xinhua | English.news.cn.

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04/01/2014

Tiny Loans for Tiny Homes – India Real Time – WSJ

From what began as a small experiment helping slum dwellers buy homes in Mumbai, Micro Housing Finance Corporation Ltd. has grown into a multi-million dollar business making loans across the country.

The Mumbai-based company, which gives low-income households loans to buy homes, now operates in more than 15 cities, with Coimbatore, in the southern state of Tamil Nadu, being the most recent addition just last month.

“Housing finance companies focus on serving the top 3% to 5% of the population because it’s easier and cheaper,” to give big loans to rich people, said Madhusudhan Menon, chairman of Micro Housing Finance. “No one wants [low income] customers who don’t have documentation of their income.”

The lack of home loans to those most in need of them is one of the main reasons more than 90% of India’s acute housing shortage of around 19 million units falls on the urban poor, according to a report released by real-estate consultancy Jones Lang LaSalle.

For most of the urban poor, owning an apartment with reliable electricity or even a water connection is out of reach even if they have a regular income because banks refuse to give the poor housing loans.

More than 41% of the population of the megacity of Mumbai lives in slums, defined as residential areas unfit for human habitation due to dilapidation, over-crowding, poor ventilation and lack of sanitation facilities, according to government estimates. That figure could be brought down sharply if builders constructed affordable housing for the city’s hardworking poor and housing finance companies gave them long-term home loans.

via Tiny Loans for Tiny Homes – India Real Time – WSJ.

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