Aug 7, 2007

HCR and Poverty Line

Returning to this post. I think while the issue highlighted is pertinent. The solution itself may not work. A better basket of commodities is need though. Still I do not see an end to the whole issue untill India becomes a much more regularized economy so that implicit assets and subsidies could be valued. Old post in quotes

"Should poverty measure benchmark be made a relative one ( e.g 25% of Avg Income) rather than a nutritional value based system. Especially as we see that India produces enough and trades enough in food items to make sure that availability of food is not an issue, rather its the purchasing power that is the constraining factor.

This method will be a good benchmark and will address concerns regarding 'Inclusive Growth'"