1. A Presentation On Problems of Developing India Presented By: Shwetketu Rastogi [email_address]

12. [Stella] Models India Population vs. Environ Impacts United States Population vs. Environ Impacts

24. Redefining Poverty A New Poverty Line for a New India

25. The Government of India says that 24% of India’s population is below the poverty line.* * Planning Commission of India, 1999-2000, Government of India

27. Despite such abysmal figures on India’s development, how can the government claim that only 24% of India is poor? Clearly something is amiss…

29. “ I have learnt to seek my happiness by limiting my desires rather than attempting to satisfy them.” John Stuart Mill

33. Table 1: Percentage and Number of Poor in India since 1973 * Year Percentage of Poor Number of Poor (crores) Annual Real Rate of Decline in the Number of Poor ^ 1973-74 54.9 % 32.13 - 1977-78 51.3 % 32.89 ( 0.59 %) 1983 44.5 % 32.29 0.31 % 1987-88 38.9 % 30.71 1.25 % 1993-94 36.0 % 32.03 ( 0.70 %) 1999-00 26.1 % 26.02 3.40 % 2004** 23.6 % 24.97 0.82 % * As per the Expert Group Methodology ^ A negative rate of decline means the number of poor increased ** Based on the estimated population of 2004 and poverty ratio calculated using the latest National Sample Survey in 2004. Source: National Institute of Rural Development (2004): Rural Development Statistics, 2002-03 .

39. Cost of Diet (in Rs.) Food groups Infants Years 6-12 months 1-3 4-6 7-9 10-12 13-18 Adult Girls Boys Girls Boys Woman Man Cereals 0.45 1.2 2.09 2.69 2.69 3.29 2.99 4.19 4.79 6.88 Pulses 0.44 0.87 1.31 1.74 1.74 1.74 1.74 1.74 2.61 2.61 Milk 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 4.5 4.5 Vegetables 0.78 1.17 1.57 2.35 2.35 2.35 2.35 3.13 3.13 3.13 Fruits 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 Sugar 0.48 0.48 0.58 0.58 0.58 0.67 0.58 0.67 0.864 1.056 Fats/oils (visible) 0.53 1.06 1.32 1.32 1.32 1.32 1.32 1.32 2.12 2.91 Total daily cost 11.84 13.94 16.03 17.84 17.84 18.53 18.14 20.21 19.67 22.75 Total monthly cost 360 424 487 543 543 563 552 615 598 692 Note: Cereals include an average of rice and wheat (Rs. 9.97) Price of Arhar is used for pulses Mustard oil is used for calculations on visible fats/oils Source: Calculated using Table 3 and 4 .

45. Minimum Electricity Consumption of a Household in a Month Appliance Wattage (A) Quantity (B) Usage (hours/day) (C) Units/Month (AxBxCx30)/1000 Cost (Rs. 2.2 per unit) Ceiling Fan 80 2 12 57.6 126.72 Light Bulb 40 2 4 9.6 21.12 Fixed Charges 20.00 Tax * 7.39 TOTAL 67.2 175.23 * 5% tax on variable cost Source: Rate list printed by BSES, 2005

46. Main Type of Fuel Used for Cooking in India(percentage) Type of fuel Urban Rural All India Wood 23.1 73.1 59.3 Crop residues 0.5 8.1 6.0 Dung Cakes 1.4 8.4 6.5 Coal/Coke/Lignite/Charcoal 4.9 1.7 2.6 Kerosene 21.5 2.7 7.9 Electricity 0.8 0.2 0.4 LPG 46.9 5.1 16.7 Biogas 0.6 0.5 0.5 Others 0.2 0.2 0.2 Total 100 100 100 Source: International Institute of Population Sciences [IIPS] and ORC Macro (2000): National Family Health Survey (NFHS-2), 1998-99 , IIPS, Mumbai.

48. Minimum Clothing Requirements and Cost Child (Age: 0-4) Male (Age: 5-17) Female (Age: 5-17) Male Adult Female Adult Clothing Requirements * 1 metre of shirt material * 0.8 metre of trouser material (includes two pairs of children ’ s wear) * 3.6 metres of shirt material * 2 metres of trouser material (includes one pair of clothing and two uniform shirts and one uniform shorts/trousers) * 3.3 metres of shirt material * 1.8 metres of skirt/salwar material (includes one pair of clothing and two pairs of school uniform) * 1.4 metres of shirt material * 1.2 metres of trouser material (includes one pair of clothing) * 1 three-metre sari * 1 metre of blouse material (includes one sari and a blouse) Cost of Cloth 150.68 267.96 343.00 190.39 131.07 Price of cloth for shirt, pyjama, cloth, etc: Rs. 47.85 Price of cloth for coat, trousers, overcoat, etc: Rs. 102.83 Price of sari (3 m): Rs. 83.22 Prices are calculated using the weighted average of the rate at which urban and rural India bought cloth material as given in GoI 2001c. The figure is adjusted for inflation.

52. Poverty Ratio using a Holistic Poverty Line Area Percentage Rural 84.6 Urban 42.4 Weighted Average 68.8 Calculated using Government of India (2001a): NSS Report No. 454: Household Consumer Expenditure in India, 1999-2000 – Key Results , National Sample Survey Organisation, New Delhi & Government of India (2005b): “ Statistics, Index Numbers ” , Labour Bureau, October 2005 &a poverty line of Rs. 840.

56. TARGETING THE CO-EXISTANCE OF ECOLOGICAL AND INCOME POVERTY: A STUDY BASED ON WASTELAND MAPPING IN INDIA

61. o Bihar, for example, is characterized by just 6 % wastelands with 57% population below poverty line. o Jharkhand, with 19% wastelands, has got more than 60% population below poverty line. o Uttar Pradesh has 9% wastelands with more than 44% population below poverty line. o Similarly, West Bengal with just over 6 % wastelands has got more than 40 % population below poverty line. Does Ecological and Income Poverty Co-exists? No… 0 10 20 30 40 50 60 70 0 10 20 30 40 50 60 % Waste land % Population below Poverty Line Assam Bihar Maharastra Rajasthan Andhra Pradesh R 2 = 0.0167 HP

63. Incidence of Poverty Interventions - Program, Technology Natural Resources Institutional/ Social Factor Labour & Capital Flow/Mobility Spatial Integration of Economic activities New Lively hood opportunities ECOLOGICAL AND INCOME POVERTY - DYNAMICS Databases on relationship to examine the direction of policies/interventions? Powerlessness of poor to gain access or use available natural resources Role of economic policies and interventions in altering the relationship Inequitable access land, Information, market and credit

64. Number of people moved out of poverty as a result of additional Rs.1Million spending by Government 0 20 40 60 80 100 120 140 160 R&D Road Irrigation Education Power Rural Dev. Soil & Water Health Persons Source: IFPRI Report, 1999 -1.0 -0.8 -0.6 -0.4 -0.2 0 2 4 6 8 R&D Road Irrigation Education Power Rural Dev. Soil & Water Health Increase in productivity Poverty reduction Percent Increase in growth of productivity and reduction in poverty as result of Government expenditure Government Spending, Growth, and Poverty in Rural India

66. Whether the various policies & interventions are well-targeted, and addressing poverty alleviation and natural resources development? Do they allow the economic and spatial integration of poor and marginalized to market forces to happen ? Are they opening up new marginal income earning opportunities in the informal sector of economy ? Did they succeed in reducing their dependence on natural resource base for livelihoods? REACHING OUT DOWN THE LINE???

67. The spatial dynamics of poverty seem to be influenced by the rural infrastructure, availability of transport links, and the growth of production and consumption linkages. Bihar, West Bengal .. need investments in rural infrastructure towards poverty reduction, while Maharastra, HP..need other priority Economic & Spatial Integration to Market Forces 0 20 40 60 80 100 120 0 10 20 30 40 50 60 Wasteland (%) Rural infrastructure Assam Bihar Maharastra Rajasthan Andhra Pradesh 0 40 80 120 0 20 40 60 80 Population Below Poverty Line (%) Rural Infrastructure Index (%) R 2 = 0.50 Maharastra HP Bihar W. Bengal

68. On contrary, Kerala and Bihar, both being also highly food insecure States need to have interventions in other areas for poverty alleviation, as wastelands are quite low in these States, Jharkhand, Assam, Rajasthan .. wasteland to be put to use towards income generation, employment creation.. The interventions in food secured States Punjab, Chattisgarh, Himanchal, Haryana, Uttaranchal, Uttar Pradesh and Karnataka need to be focused on off-farm income generation. Policy Interventions towards Food Security 0 1 2 3 4 5 0 10 20 30 40 50 60 % of wasteland Deficit in food production (ratio) Assam Bihar Maharastra Rajasthan Andhra Pradesh Jharkhand Kerala

69. Regression coefficient (R square) between incidence of poverty and wastelands increased from 0.0167 at State levels to as good as around 0.5 for quite a few States at the district level. It may increase further at village level and thus calling for dis-aggregated wasteland mapping to establish closer linkages with incidence of poverty. Disaggregated Poverty Mapping 0 10 20 30 40 50 60 70 0 10 20 30 40 50 Wasteland % Incidence of Poverty (% poor) Adilabad R 2 = 0.26 East Godavari Chittor

70. Wasteland mapping could be used to examine the impact of policies and interventions towards poverty reduction, In a typical state, the focus should be on spatial integration of rural poor to the market forces and creation of alternate livelihood systems, Evolving the economic policy instruments which could lead to substantial poverty reduction as well as enrichment of natural resources base. For micro-level interventions, disaggregated poverty mapping depicting the relationship between ecological and income poverty is called for.

71. He and She are poor; Not because they are borne so; In fact, it is the failure of the institutions, polices and programme that they continue to be poor and marginalized. - A Perception

72. EMPLOYMENT , UNEMPLOYMENT AND TRAINING ISSUES

76. Labour Force participation rates (LFPR), Work Force participation rates (WFPR) and Unemployment rates: International Comparison Country LFPR WFPR Unemployment Rate India 43.0 42.0 2.3 China 77.0 - - Japan 62.9 58.3 4.9 Australia 63.9 59.8 7.0 Malaysia 60.6 58.6 3.4 France 54.7 48.2 12.0 Germany 57.7 52.7 8.7 U.K 62.9 62.9 6.0 U.S.A. 67.7 67.7 4.2 Pakistan 49.9 49.9 5.9 Sri Lanka 57.3 57.3 10.6

84. MAIN ISSUES There are primarily two main issues namely:- Issue no-1 How to provide employment to the new entrant to the labour force and to the unemployed. That is how to create additional employment opportunities needed. Issue no-2 How to improve quality of employment so that productivity and income level of the workforce increases.

92. THANK YOU

93. Transparency International India Business Action on Anti - Corruption the challenges and possibilities the challenges and possibilities

96. Corruption as we know is not limited to the government sector. Corruption occurs where the private and public sectors intersect. There is both a demand side (bribe solicitation) and supply side (bribe giving) to corruption, and the supply side often takes the form of bribes paid by the private sector. Transparency International India Corruption – Its perspective

116. Transparency International India Working together with civil societies , government and private sector to develop and disseminate anti corruption messages. Regional and international initiatives provide a forum for private sector, public sector, and civil society actors to come together with a common goal of reducing vulnerability to corruption .India is a signatory to UNCAC and UN Convention against Transnational Organized Crime but not yet ratified. We are pushing the Government for it and we need your support. Finally, attitudinal change is necessary. By changing our thoughts, we can change our attitude and thereby change our behavior, which can change our lives. The quality of our thoughts equals the quality of our lives. Let us all work towards changing our attitude towards corruption. Lets say No to corruption.. Developing Code of Corporate Governance