Saturday, May 26, 2007
India a land of stark economic contrasts: USAID
By Khalid Hasan
WASHINGTON: As many as 700 million Indians, more than the combined population of Africa and Latin America and twice that of the United States, live on less than $2 a day, subsisting on one meal a day of rice and lentils. Nearly half of Indiaâs children are malnourished, a conference on India was told here on Tuesday.
The one-day conference was organised jointly by the Federation of Indian Chambers of Commerce and Industry and the Heritage Foundation to address US-India relations and âthe road ahead.â
Kay Freeman, head of South Asia for USAID, told the conference that the three major challenges facing India were poverty, disease and health issues and natural disasters. She said this posed a âstriking dichotomyâ given the fact that Indiaâs economy is more than $700 billion worth, being one of the 10 largest in the world, while its economic growth is estimated at 9 percent, with a middle class of 300 million. However, the gap between rich and poor continues to widen, marked by disparities in both urban and rural areas. Almost all rural poor families are dependent on agriculture. Literacy is low, especially among women, and the government estimates that eight to 10 million youth are not in school, limiting their potential for economic improvement in Indiaâs high-tech driven economy.
Freeman said an unhealthy population could not take full advantage of economic opportunities available to it. People who are sick or malnourished cannot achieve their economic potential and caring for the chronically ill is an economic drain on families. Job creation to absorb the large numbers of youth entering the workforce is a challenge for India. She said major health issues face India. India has the largest number of HIV cases of any country in the world. It is estimated that by 2010, between 20 and 25 million Indians could be living with HIV. In 2005, about 5.7 million Indians had HIV. They were mostly male adults between the ages of 15 and 49, which is the most productive economic group. Also on the increase is the use of intravenous drugs, though it is levelling off in high-risk groups.
India, Freeman pointed out, is always subject to major natural disasters, which carry the potential to retard progress. She said Indiaâs main challenges were delivery of core services such as healthcare, education, power and safe water, which are not available. Economic growth, while impressive, is not inclusive and has left 700 million in poverty. To diminish disparities, India must accelerate agricultural growth, improve the job market and assist in poorer states so that they can catch up. Economic growth has to be sustained and the government must address fiscal and trade deficits, while continuing to push ahead with reforms. The HIV epidemic must be contained before it spreads to the general public.
Agriculture accounts for one-fifth of Indiaâs GDP but a large number of poor rural families are completely dependent on agricultural production for their livelihoods. Two-thirds of Indiaâs population lives on the rural economy. Since 1960, India has made huge investments in irrigation, research and extension, farm credit and farmer development programmes. However, Indiaâs macroeconomic policies and market regulations penalised agriculture. Agricultural growth, now at 2 percent, has stagnated. The productivity of the principal food crops has plateaued as the population continues to grow. Indian farmers are too dependent on cereal crops and need to diversify. Better credit access is required. Not a single village in India currently has a 24/7 energy supply. Demand for electricity is increasing at a rate equal to adding a 500MW plant every week for the next 25 years. Most electricity generation takes place from high-ash coal, which makes India the worldâs fifth largest emitter of greenhouse gases, the second faster emitter after China. The Indian power sector is state-owned and financially unviable. Forty percent of the power generated is lost. To cope, the electricity sector will need an investment in excess of $100 billion over the next five to six years.
http://www.dailytimes.com.pk/default.asp?page=2007\05\26\story_26-5-2007_pg7_20
India a land of stark economic contrasts: USAID
By Khalid Hasan
WASHINGTON: As many as 700 million Indians, more than the combined population of Africa and Latin America and twice that of the United States, live on less than $2 a day, subsisting on one meal a day of rice and lentils. Nearly half of Indiaâs children are malnourished, a conference on India was told here on Tuesday.
The one-day conference was organised jointly by the Federation of Indian Chambers of Commerce and Industry and the Heritage Foundation to address US-India relations and âthe road ahead.â
Kay Freeman, head of South Asia for USAID, told the conference that the three major challenges facing India were poverty, disease and health issues and natural disasters. She said this posed a âstriking dichotomyâ given the fact that Indiaâs economy is more than $700 billion worth, being one of the 10 largest in the world, while its economic growth is estimated at 9 percent, with a middle class of 300 million. However, the gap between rich and poor continues to widen, marked by disparities in both urban and rural areas. Almost all rural poor families are dependent on agriculture. Literacy is low, especially among women, and the government estimates that eight to 10 million youth are not in school, limiting their potential for economic improvement in Indiaâs high-tech driven economy.
Freeman said an unhealthy population could not take full advantage of economic opportunities available to it. People who are sick or malnourished cannot achieve their economic potential and caring for the chronically ill is an economic drain on families. Job creation to absorb the large numbers of youth entering the workforce is a challenge for India. She said major health issues face India. India has the largest number of HIV cases of any country in the world. It is estimated that by 2010, between 20 and 25 million Indians could be living with HIV. In 2005, about 5.7 million Indians had HIV. They were mostly male adults between the ages of 15 and 49, which is the most productive economic group. Also on the increase is the use of intravenous drugs, though it is levelling off in high-risk groups.
India, Freeman pointed out, is always subject to major natural disasters, which carry the potential to retard progress. She said Indiaâs main challenges were delivery of core services such as healthcare, education, power and safe water, which are not available. Economic growth, while impressive, is not inclusive and has left 700 million in poverty. To diminish disparities, India must accelerate agricultural growth, improve the job market and assist in poorer states so that they can catch up. Economic growth has to be sustained and the government must address fiscal and trade deficits, while continuing to push ahead with reforms. The HIV epidemic must be contained before it spreads to the general public.
Agriculture accounts for one-fifth of Indiaâs GDP but a large number of poor rural families are completely dependent on agricultural production for their livelihoods. Two-thirds of Indiaâs population lives on the rural economy. Since 1960, India has made huge investments in irrigation, research and extension, farm credit and farmer development programmes. However, Indiaâs macroeconomic policies and market regulations penalised agriculture. Agricultural growth, now at 2 percent, has stagnated. The productivity of the principal food crops has plateaued as the population continues to grow. Indian farmers are too dependent on cereal crops and need to diversify. Better credit access is required. Not a single village in India currently has a 24/7 energy supply. Demand for electricity is increasing at a rate equal to adding a 500MW plant every week for the next 25 years. Most electricity generation takes place from high-ash coal, which makes India the worldâs fifth largest emitter of greenhouse gases, the second faster emitter after China. The Indian power sector is state-owned and financially unviable. Forty percent of the power generated is lost. To cope, the electricity sector will need an investment in excess of $100 billion over the next five to six years.
http://www.dailytimes.com.pk/default.asp?page=2007\05\26\story_26-5-2007_pg7_20
