Thursday, August 04, 2011

Too Good To Be True?

MyRepublica reported that "Nepal has recorded an astonishing 18 percentage point decline in absolute poverty in the six years between 2003/04 and 2009/10." The third Nepal Living Standard Survey 2010 is set to be released by the Central Bureau of Statistics in late August. The report is also said to have found a decreasing gap between the rich and the poor--the Gini-coefficient is said to have dropped "to 0.35 from 0.41 recorded in the second NLSS."

To be sure, this is very good news. However, the reality on the ground just seem very desperate as one travels through the country. We will have to wait until the full report is released to see what methodology and definitions were used and how they went about their analysis.

The article mentions that a person is categorized as being under the poverty line if s/he earns less than Rs 14, 430 (about US $ 200) per year. This is the amount that the person needs to consume "2,200 calorie per day" and pay for "other essential non-food items." Now, if you live in Nepal or have visited in recent months, it is outrageous to think that one can live a "not-poor" lifestyle with a mere Rs 14, 430! Have you looked at the prices of some of the staple foods for the Nepali people?

Again, this is great news if it is the trend. Moving in the positive direction, however small, is an important accomplishment. However, let's wait to see what the full report has to say before jumping up and celebrating--the stories on the ground just don't seem to warrant a celebration! 

Perhaps we need to redefine poverty!  

Shout out to Mr. Shreesh B. of Korbel School of International Studies, University of Denver, in bringing this story to my attention.

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