ADB Reports Pakistan's Middle Class Larger Than India's

[RiazHaq]

A pre-requisite for a responsive and accountable democracy is a substantial middle class population.

An ADB report on Asia's rising middle class released today confirms that Pakistan's middle class now is 40% of the population, significantly larger than the Indian middle class of about 25% of its population.

The other significant news reported by Wall Street Journal today says the vast majority of what is defined as India's middle class is perched just above $2 a day.

Most of this middle class growth in Pakistan occurred on Musharraf's watch.

Haq's Musings: 1999-2009: Pakistan's Decade of Urban Middle Class Growth

http://www.adb.org/Documents/Books/Key_Indicators/2010/pdf/KI2010-Special-Chapter.pdf

 

[Avatar]

A pre-requisite for a responsive and accountable democracy is a substantial middle class population.

An ADB report on Asia's rising middle class released today confirms that Pakistan's middle class now is 40% of the population, significantly larger than the Indian middle class of about 25% of its population.

The other significant news reported by Wall Street Journal today says the vast majority of what is defined as India's middle class is perched just above $2 a day.

Most of this middle class growth in Pakistan occurred on Musharraf's watch.

Haq's Musings: 1999-2009: Pakistan's Decade of Urban Middle Class Growth

http://www.adb.org/Documents/Books/Key_Indicators/2010/pdf/KI2010-Special-Chapter.pdf

lol..Riaz.. Not again man.

You forgot to mention it's 25% of India's one billion+ that's a middle class almost equal to 100% of Pakistan's population.

 

[SQ8]

lol..Riaz.. Not again man.

You forgot to mention it's 25% of India's one billion+ that's a middle class almost equal to 100% of Pakistan's population.

Yea thats because of a much larger size and population.. DUhh.. Dumb..

 

[kak1978]

A pre-requisite for a responsive and accountable democracy is a substantial middle class population.

An ADB report on Asia's rising middle class released today confirms that Pakistan's middle class now is 40% of the population, significantly larger than the Indian middle class of about 25% of its population.

The other significant news reported by Wall Street Journal today says the vast majority of what is defined as India's middle class is perched just above $2 a day.

Most of this middle class growth in Pakistan occurred on Musharraf's watch.

Haq's Musings: 1999-2009: Pakistan's Decade of Urban Middle Class Growth

http://www.adb.org/Documents/Books/Key_Indicators/2010/pdf/KI2010-Special-Chapter.pdf

Its not NOW. Read the report carefully, that data you are refering to is for the survey year 2005. A lot has changed in this last 5 years. Pakistan rupee has lost its value from Rs57- Rs85 (28) and India's from Rs: 43- Rs 46 (3) against the dollar. The data is shown in the report so as to get an estimate for the future. Did you look at figure 2.9, Page 16 . Projection for 2030, Indian middle class is projected to be more than even China's. But you have conveniently chose to ignore that.

 

[karan.1970]

Its not NOW. Read the report carefully, that data you are refering to is for the survey year 2005. Lot has changed in this last 5 years. Pakistan rupee has lost its value from Rs57- Rs85 (28) and India's from Rs: 43- Rs 46 (3) against the dollar. The data is shown in the report so as to get an estimate for the future. Did you look at figure 2.9, Page 16 . Projection for 2030, Indian middle class is projected to be more than even China's. But you have conveniently chose to ignore that.

Good job Pakistan. However I think the numbers are a little dated. The figures in the report are 2005 numbers.

Now from 2005 to 2009

India's PPP GDP grew by 50% with an 8% increase in population
On the other hand, Pakistan's PPP GDP grew by 28% with a 9% growth in population.

Club that with the last 3 years of WOT in Pakistan and the reported slippage of people from just abover $2 per day to under $2 per day, in my view the situation on ground today is very different from what is shown in this report

But anyway, lots of ground to cover for India..

 

[Kyusuibu Honbu]

Irrespective of what Mr.Haq's pure intentions are,Good for Pakistan

Congratulations!

Hope the percentage gets higher in the next 5 years

PS:Fellow Indian members here, we should know when to appreciate,even if some them(our neighbors) condescending on ours.

 

[Trisonics]

Indian, Chinese middle class new engine of global growth: ADB
New Delhi, Aug 19, (PTI):

Asia's middle class population, led by China and India, will replace the role of the US and Europe as engines of growth for the world economy, said the Asian Development Bank (ADB) here today.

Asian consumers are likely to spend USD 32 trillion by 2030, accounting for 43 per cent of global total consumption, the ADB said. "Developing Asia's rapidly expanding middle class is likely to assume the traditional role of the US and Europe as primary global consumers and help rebalance the global economy," ADB said in its annual statistical report.

Asia's middle class -- those consuming between USD 2 and USD 20 per day, as per the ADB -- has grown from 21 per cent of the entire Asian population in 1990 to 56 per cent, or 1.9 billion people, in 2008, the ADB said in its report on 'Key Indicators for Asia and the Pacific'.

ADB Chief Economist Jong-Wha Lee, while speaking to the press after the launch of the report, said Asia's middle class population is likely to grow to 2.7 billion by 2030 from the current 1.9 billion people.

"Asia's consumers spent an estimated USD 4.3 trillion (in 2005 purchasing power parity dollars), or about one-third of OECD consumption expenditure, in 2008 and by 2030, will likely spend USD 32 trillion, comprising about 43 per cent of the worldwide consumption," it said.

Lee said the middle class in Asia is rapidly increasing its size and purchasing power and will be an increasingly important force in global economic rebalancing. While China has 817 million middle class people, India has 274 million.

"Asia will be able to move away from export-led to domestic-led consumption growth and reduce its exposure to negative external shocks, such as the 2008 global financial crisis, which began in the US," the report said.

On India, the ADB report said the innovative and cheaply priced products like Tata Motor's USD 2,200 Nano car, Godrej group's USD 70 battery-operated refrigerator and cheap mobile phone rates targeted at India's booming middle class are helping spur domestic consumption and growth.

However, the regional development bank said India's middle class remains vulnerable to economic shocks and carefully calibrated policy measures will be needed to sustain income gains in the longer term.

"More than 75 per cent of the country's middle class remain in the USD 2 to USD 4 daily consumption bracket, the lower end of the range of USD 2 to USD 20, leaving them at risk of falling back into poverty in the event of a major economic shock," the bank said.

To help unlock the full potential of the Indian middle class as consumers and drivers of growth, the government must continue to remove structural and policy impediments to development and improve income distribution, it said.

Indian, Chinese middle class new engine of global growth: ADB

 

[Trisonics]

19 August 2010
India's Middle Class Driving Innovation, Consumption, But Still Vulnerable - Report

NEW DELHI, INDIA - Innovative, cheaply priced products targeted at India’s booming middle class are helping to spur domestic consumption and growth but the sector remains vulnerable to economic shocks and carefully calibrated policy measures will be needed to sustain income gains in the longer term, says a new Asian Development Bank (ADB) report.

In a special chapter of Key Indicators for Asia and the Pacific 2010, its flagship annual statistical publication, ADB says the ranks of India’s middle class, defined as those consuming between $2 and $20 per day (based on survey data in 2005 purchasing power parity dollars), grew by around 205 million between 1990 and 2008, second only to the People’s Republic of China.

The surge in numbers has seen additional annual sector spending of $256 million and spawned low-cost, locally produced products and services such as Tata Motor’s $2200 Nano Car, the Godrej Group’s $70 battery-operated refrigerator, and cheap mobile phone rates.

The special chapter, titled “The Rise of Asia’s Middle Class”, also notes that the emergence of a substantial middle class in India has created new avenues for employment and entrepreneurship, and a louder voice for improved public infrastructure and services.

At the same time, more than 75% of the country’s middle class remain in the $2–$4 daily consumption bracket, the lower end of a range of $2 to $20, leaving them at risk of falling back into poverty in the event of a major economic shock, such as the global financial crisis. Infrastructure constraints, like unreliable power supplies may also hamper consumption of durable goods.

To help unlock the full potential of the Indian middle class as consumers and drivers of growth, the report says the government must continue to remove structural and policy impediments to the sector’s development and improve income distribution across the population. Actions should include infrastructure improvements and social safety nets that encourage spending, while providing a buffer during hard times. The government should also put in place policies that stimulate the creation of stable, well-paid jobs, and encourage entrepreneurship and education.

“Policies that bolster the middle class may have benefits not only for economic growth, but may be more cost-effective at long-term poverty reduction than policies that focus solely on the poor,” said Jong-Wha Lee, ADB Chief Economist.

The report notes that while a strong middle class is necessary for sustainable economic growth, higher incomes are resulting in environmental pressures and a rise in ‘diseases of affluence’ such as obesity, which policy makers will increasingly need to address.

India's Middle Class Driving Innovation, Consumption, But Still Vulnerable - Report

 

[HariSeldon]

hhh....so Riaz want to have his cake and eat it too......thats bad manners.

Pls make up your mind. You want to discuss absolute numbers or percentage?

 

[Karachiite]

Good for Pakistan, lets hope we keep growing.

 

[Donatello]

lol..Riaz.. Not again man.

You forgot to mention it's 25% of India's one billion+ that's a middle class almost equal to 100% of Pakistan's population.

Duh,

why are you so dumb with math and understanding the relative number?


All they are comparing is the percentages of middle class respective to their own populations.....NOT one another.



So in quantity, India's Middle class is bigger than that of most European countries and probably even USA.



DUH!!!!

 

[AgNoStiC MuSliM]

Good job Pakistan. However I think the numbers are a little dated. The figures in the report are 2005 numbers.

Yes, but if we are to extrapolate from another positive number for Pakistan from 2007/2008 - the WB estimated that Pakistani poverty rate dropped to around 17%.

In conjunction with the increasing middle class report, that would reflect significant continuing improvement through 2008 at least.

But the recent floods will likely have a significant impact, far greater than the rupee devaluation IMO.

 

[RiazHaq]

I saw Preepli Live yesterday.

I's a very well done satirical take on farmers' suicides in India that honestly touches upon many of the human deprivations and issues of politics and governance that I talk about. It does not even shy away from showing the open defecation problem that encompasses two-thirds of India's population.

Amir Khan's satirical film "Peepli Live" on Indian farmers suicides was released on India's 63rd independence. An Op Ed in the Hind u newspaper argues that the film did have some dampening effect on the usually "gushy" rhetoric that emanates from Delhi and Bollywood on Aug 15 each year.

Here's an excerpt from it:

This year the voices were more mixed, less gushy. Ironically, the party pooper was a rebel from the Bollywood stable. Peepli Live, a biting satire on farm suicides and agrarian distress from Aamir Khan productions, not only dared to invade the theatres on the sacred Independence-Day weekend, it proceeded to shine the torch on the gung-ho brigade lining up to sing hosannas to the unstoppable future of this country. The slice of India the film exposed was as close to the ground as the world of celebrity endorsement was far from it. Though Peepli's hard-hitting core was wrapped in disarming humour, its dark, disturbing message cut deep and close: Would those within the charmed growth circle please step out and see life as others lived it?

Perhaps thanks to the Peepli effect, this Aug ust 15 saw a subdued Kareena Kapoor go on TV to speak of the unfulfilled dreams of the teeming millions. Amitabh Bachchan agonised that India was still being called a developing, third world country. The sombre mood seemed to have infected the programming too. A television actor interrupted a boisterous song-and dance azadi (independence) extravaganza organised by an entertainment channel to announce pessimistically that he saw no reason to celebrate: “Our women get assaulted, crime, poverty and corruption are growing. Is there anything to celebrate?”

Of course, there was a reality check, lest it should seem that the entire jet-set had been hit by an attack of conscience. This was courtesy the anchor of the show who decided to show footage from interviews he had done with young people from Mumbai. The poll was on the meaning of azadi, but barring one, none could name the country's incumbent Prime Minister and not even one could tell the year of India's independence. One young man thought “Jai Jawan, Jai Kisan” was a slogan coined by yesteryear actor Manoj Kumar.

As India welcomed its 64th year of freedom, the country seemed to be straddling two diametrically opposite spaces. One, depressingly poor, bereft — and very angry. The other unhealthily prosperous yet frighteningly detached from the country's history, heritage and constitutional vision. But the tragi-comedy of this August 15 was far from over. The tricolour was still being unfurled and the singing of the national anthem was under way at many venues when the poor, shut-out space hit back. Peepli Live truly went live. News came in that farmers in western Uttar Pradesh were on the rampage over a police firing that had killed some of their brethren. The farmers had been protesting pitifully inadequate compensation for land acquired for the construction of the glitzy Yamuna expressway that would connect Delhi and Agra. Reports suggested that land bought for a song from the farmers had been resold at exorbitant prices.

The dark comedy turned darker in Srinagar where a suspended policeman cut Chief Minister Omar Abdullah in the middle of flag hoisting to aim a shoe at him. The harried Mr. Abdullah thanked the policeman saying at least this was a break from the trend of Kashmiris pelting stones. And, finally, in Chhattisgarh naxal power struck again — this time in the form of the beheaded body of a Central Reserve Police Force policeman. Three different incidents, each in its own way symbolising the widening gulf between the state and the vast majority of its people. The so-called stakeholders in India's growth and prosperity could not have chosen a worse day to show their disenchantment with the way project India was shaping up.


Haq's Musings: 63 Years After Independence, India Remains Home to World's Largest Population of Poor, Hungry and Illiterates

 

[GentlemanObserver]

^^ Sums this thread and the sentiments expressed herein.

 

[karan.1970]

Yes, but if we are to extrapolate from another positive number for Pakistan from 2007/2008 - the WB estimated that Pakistani poverty rate dropped to around 17%.

In conjunction with the increasing middle class report, that would reflect significant continuing improvement through 2008 at least.

But the recent floods will likely have a significant impact, far greater than the rupee devaluation IMO.

No denying the improvement in Pakistan from 2005 to 2007/8. However the point I was trying to make was more specific to relative movement of the India numbers since 2005 to 2009 has been a relatively steeper growth trajectory for India with GDP growing by well over 50% in 4 years or so. That in my view is bound to have a significant impact on the relative numbers.

About the floods, practically it is bound to have an impact on economy, but the human angle of the tragedy is so heart wrenching that somehow you are not able to get yourself to think about the economic impact.