Urbanisation Reducing Inequality: World Bank Report

  • A World Bank report has found that between 2004-05 and 2009-10, 15 per cent of India’s population, or 40 per cent of the poor, moved above the poverty line.
  • In the same period, a sizeable portion of the poor and the vulnerable over 9 per cent of the total population or about 11 per cent of the poor and vulnerable  moved into the middle class.
  • Over 9 per cent of the total population, or about 14 per cent of the non-poor group, slipped back into poverty
  • This phenomenon revealed the greater risks faced by the vulnerable and even the middle class than in other countries
  • Onno Ruhl, World Bank Country Director in India said: The third finding of the report that challenges the conventional understanding of inequality in India, is that urbanisation is reducing inequality, not increasing it.
  • Mr. Ruhl said the policy takeaways from the report for Prime Minister Narendra Modi included (i)strive for universal health and sanitation(ii) leverage the opportunity for urbanisation (iii) create jobs for all and build skills not just through technical training but also with servicing the population with primary and secondary education and nutrition.