WORLD BANK’S CLAIM OF LIFTING MILLIONS OUT OF POVERTY IS CONCEPTUALLY FLAWED
IN INDIA, THE NET ASSET POSITION OF BULK OF HOUSEHOLDS HAS DECLINED
2024-10-18 11:48
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Several international organisations are now engaged in the business of measuring what they call “poverty”. The World Bank has been in it for some time, but now we have a new measure of “Multidimensional Poverty” brought out by the UNDP and the Oxford Poverty and Human Development Initiative (OPHI). Neither of these measures however actually measures poverty; they typically end up “prettifying” neo-liberal capitalism. In fact according to the World Bank’s estimate, the proportion of the world’s population that lives in “extreme poverty” (that is, below a daily per capita expenditure of $1.90 at 2011 purchasing power parity exchange rate) has gone down from over 30 per cent in the late 1990s to less than 10 per cent in 2022, suggesting that under neo-liberal capitalism “millions have been lifted out of poverty”. Let us see why this much-quoted World Bank’s measure is conceptually flawed.