Poverty & Shared Prosperity 2022 : Correcting Course
Recently the World Bank has released the report ‘Poverty and Shared Prosperity 2022: Correcting Course’.
Poverty and Shared Prosperity’ is a biennial report series. This report provides the latest projections and trends on global poverty and shared prosperity.
The World Bank has defined $2.15 per person per day as the new extreme poverty line.
It is based on the Purchasing Power Parity (PPPs) of the year 2017. Earlier the poverty line was fixed at $1.90 per person per day.
Key findings of report-
- The global extreme poverty rate increased to an estimated 9.3% in the year 2020 due to the Covid pandemic. It was 8.4% in the year 2019.
- The primary reasons for such economic inefficiencies are: the severe economic downturn during the COVID and, most recently, the Ukraine War.
- It is not possible to achieve the long-term goal of eradicating extreme poverty from the world by 2030, the report said.
- In the year 2019-20, 10% of India’s population was living below the above-mentioned latest poverty line.
- In the year 2020, 56 crores Indian population had come below the poverty line.
- In the year 2020, 56 crores Indian population had come below the poverty line.
- 12% of the population in rural areas, and 6% of the population in urban areas was living below the poverty line.
- Poverty has decreased in India (especially in rural areas) since 2011.
Suggested solutions under fiscal aspect-
- Instead of comprehensive subsidies, the option of targeted cash transfers should be adopted. Public expenditure should be given priority for long-term growth.
- The emphasis should be on raising tax revenue without affecting the poor.
Source – The Hindu
