The role of India and China is expanding in the global economy. A whole new array of economic and financial issues are emerging which need to be tackled if the current period of growth is to endure. The issues that need attention include how to expand the services sector, especially financial services; how to keep pace with the incredible growth of the manufacturing sector; how to ensure the widest possible diffusion of the huge economic gains seen over the last ten years and how to provide the framework for the development of two-fifths of the human race.
Economic Reforms in India and China: Emerging Issues and Challenges aims at providing the goals, strategies and policies to tackle these issues. It discusses the efforts to address issues like encouraging less successful sectors of the economy that have been complicated by forces of globalization and the ever-changing realities of today's global economy and appraises issues pertaining to economic reforms. The articles explore ways to improve the well-being of the poor, to design effective structures and institutions for poverty reduction and how the reforms, in their economic, political and social dimensions can be used to tackle global developmental issues.
Chapter Four: A Comparative Study of the Implications of Economic Reforms on Poverty in India and China
A Comparative Study of the Implications of Economic Reforms on Poverty in India and China
Measurement of Poverty and Inequality
The extent of absolute poverty is defined as the number of people who are unable to command sufficient resources to satisfy basic needs. They are counted as the total number living below a specified minimum level of real income—an international poverty line. Absolute poverty is measured by head count index. The head count (H) falling below the absolute poverty line (YP) taken as a fraction of the total population (N) is defined as head count index (H/N).
Simply counting the number of people below ‘agreed-on poverty line’ has limitations. ...