Poverty, growth, inequality : some general and India-specific considerations
Purpose: This paper aims to address the thesis that poverty is best alleviated by a policy emphasising the growth of per capita average income, a strategy that affords little room for direct pro-poor interventions or a movement towards a more equal distribution of incomes. This policy prescription is based on the empirical finding that cross-country variations in poverty are largely explained by variations in growth rates of average income. Design/methodology/approach: The paper contends, as has been done in other commentaries on the subject, that inferring the dictum that “growth is [virtually the only thing] good for poverty” from cross-country evidence on poverty, growth and inequality is neither logically plausible nor normatively compelling. This is sought to be established both through conceptual reasoning and (secondary) data-based analysis. In particular, the thesis under review implicitly rejects the value of counter-factual analysis. Such a hypothetical illustrative analysis is attempted here, using evidence relating to urban poverty, growth and inequality in India. Findings: The paper concludes, without undermining the salience of growth, that there is little basis for the pre-eminence accorded to it astheinstrument for poverty redress. Originality/value: This paper has not been published elsewhere. A collaborative paper by one of the present authors with another scholar, on a similar theme is, however, under preparation for publication.
Year of publication: |
2018
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Authors: | Subramanian, Sreenivasan ; Lalvani, Mala |
Published in: |
Indian Growth and Development Review. - Emerald, ISSN 1753-8254, ZDB-ID 2462510-3. - Vol. 11.2018, 2 (08.10.), p. 136-151
|
Publisher: |
Emerald |
Saved in:
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