Rich-poor gap cause for concern

The BBS report makes some interesting, albeit dismal, observations. For those who flaunt growth statistics and remain satisfied with the GDP figures must take lessons from the very valuable findings that have emerged from the Poverty Monitoring Survey Report, 2004.

Although our per capita income has recorded a rise of more than 17% over the years, the increase in our national wealth having been monopolised by a miniscule percentage of the rich has only improved the average notionally without meaning much in real terms. This reflects the lacunae in our planning matrix and implementation. The gap in household income is even more dismal. And in both the cases the poor, both rural and urban, have been left far behind in the development equation. The gap has been regrettably incremental, highly weighted against the poor.

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This phenomenon is replicating a global trend where the gap between the richer and the poorer countries has taken a progressive leap, but at the national level its impact can only portend a social and political outburst whose consequences are imponderable. No society can ever expect to prosper in an environment of a rich-poor disparity caused by economic injustice, corruption, rent seeking and crony capitalism.

It will be well for our planners and policy makers to take the pointers that this report, as well as the experts, has provided, which identify the reasons for the continued increase of the rich-poor gap. The policy anomalies and structural problems must be addressed immediately. The jobless must be provided appropriate level of competence that would allow them to find employment in those sectors where employment opportunities remain untapped due to lack of skill of our workers.

Poverty reduction as envisaged in the PSRP will come to naught if income distribution in an egalitarian manner is not ensured.