India and Development

P. Sainath, the Magsasay award winning journalist and writer of Everybody Loves a Good Drought wrote an excellent article in the Hindu today (link) about India’s standing in the Human Development Index of UNDP. India apparently stands among the bottom 50% lower than countries like Sri Lanka, Vietnam, Cuba and El Salvador, countries that have been devastated by civil strife and war. In fact, if you just consider India’s adivasis and dalits as a separate nation, they are in the lowest 25. He says,

Note that some of these nations rank up to 30 slots above us. Others fall within 30 nations below us. Not one of them has had our nine per cent growth. Few of them have been touted an emerging economic superpower. Nor even as a software superpower. Not even as a blossoming nuclear power. Together, they probably do not have as many billionaires as India does. In short, even nations much poorer than us in Asia, Africa and Latin America have done a lot better than we have.

India rose in the dollar billionaire rankings, though. From rank 8 in 2006 to number 4 in the Forbes list this year, but we slipped from 126 to 128 in human development. In the billionaire stakes, we are ahead of most of the planet and might even close in on two of the three nations ahead of us (Germany and Russia). It will, of course, be some time before we erase the national humiliation of lagging behind the top dog in that race, the United States. (Which, by the way, dropped from 8 to 12 in the HDI rankings this year.)

In fact, he points out that most statisticians had been using stale data for measuring Purchasing Power Parity (PPP). If you re-calculate based on the new 2006 data, India’s GDP (in PPP terms) reduces from $3.8 trillion to $2.34 trilliion (and the GDP at nominal exchange rate is $800 million billion, still less than a trillion), and the per-capita GDP falls from $3 779 to $ 2 341. He warns that we might soon be in for a surprise when agencies start using the new figures:

It is not clear yet how agencies other than the Bank, like the UNDP for instance, were working with PPP. Were they using updated measures or the old data? If the latter (which seems the case), and given India’s entry in the Bank survey is recent, even our awful HDI performance could get worse. The captain has switched on the seat belt sign. Buckle up: we could be landing soon on the updated numbers.

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