Poverty in India: The Challenge of Uttar Pradesh

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Abstract

The report analyzes poverty incidence in India and in particular, in Uttar Pradesh (UP), and defines its poverty levels, trends, and vulnerability. While UP once appeared positioned to be the pace-setter for India's economic, and social development in light of its rich potential in human, and natural resources, economic growth faltered in the 1990s. UP fell behind India's better performing states, and, despite a recent acceleration in growth suggesting the state's performance has been arrested, problems still remain. The report documents poverty along a number of dimensions, i.e., material and human deprivation, where poverty, if measured in terms of material deprivation, is high, and progress at reducing it, has been uneven over the past two decades. Statistics regarding human deprivation, reveal averages, e.g., in literacy well below the all-India average, likewise in female literacy, while mortality rates indicate a much higher ratio than in the country as a whole. Chapter 2 reviews the causes of poverty, stipulating poverty is caused by a scarcity of private assets, where ineffective social programs prevail. Governance, and the policy challenges are examined in Chapter 3, addressing the need to transform UP's public sector, through administrative and civil services reforms to reduce fragmentation, with complementary reforms at the sector levels to improve regulation. To achieve economic growth, Chapter 4 provides recommendations that include improvements in the investment climate, accelerated growth in rural areas, and corrections in gender bias, while Chapter 5 stresses on improving the quality, and access to social services, and safety nets.