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India and China, good growth but poverty does not decrease

Despite strong growth and double-digit GDP growth in China and India, many people still live in poverty. The efforts made by the respective governments to raise the income limit for poverty and to promote effective programs against the most serious situations of hunger and disease are insufficient.

India and China, good growth but poverty does not decrease

China and India, two giants of emerging countries, cornerstones of the BRICS, which however are still unable to implement effective structural reforms to fight poverty. According to theUnited Nations Human Development Index (Human Development Index, Hdi), which measures people's well-being (calculated as a cocktail of income, education and life expectancy) China is located at 101esimo place – out of 187 countries – while the World Bank sets it 95th in terms of GDP per capita.

Yesterday, in a national meeting on poverty, the Beijing government announced that it could increase the annual income limit to define the condition of poverty in the countryside a dollars 361, thus doubling last year's value. "Eradicating poverty, improving people's lifestyles and prosperity for all is a basic requirement for socialism," said the Chinese president Hu Jintao. “By 2020, our country's poor will no longer need to worry about food and clothing. Their access to compulsory education, medical assistance and the possibility of having accommodation will be ensured for all".

There is no shortage of good intentions and fine words, but the effects are still not unsatisfactory. It is true that in the rural regions the poor population she fell to 26,88 million people at the end of 2010, while a decade ago there were almost 95 million poor people. However, according to the new standards, approximately 100 million rural residents will be classified as officially poor and therefore eligible to receive anti-poverty benefits. Moreover, if in 2009 China's GDP had increased 42 times compared to 1985, the poverty line in 2000 recorded an increase of only 5 times, to 1,197 renminbi from 200 renminbi in 85. With inflation that remained below 1% only between 1999 and 2001, and this year it is estimated to reach 6% (World Bank data). 

In India things are not going better, in fact the situation is probably even more serious than in the Chinese neighbour. Last year, GDP per capita was 124th in the World Bank ranking and 134th in the United Nations Human Development Index. According to the UN, India counts more than 600 million poor – almost there half of the total population. The Global Hunger Index still considers the country among those in the alarm zone. The poverty line was set at 26 rupees, approximately 0,53 US cents a day in the countryside and 32 rupees a day in the cities. Indian citizens have been protesting government corruption and New Delhi's inability to make meaningful decisions for months. The declarations regarding new measures continue to be many. But the ways of carrying them out are not clear to anyone.

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