The Iniquity of Money-Metric Poverty in India

Abstract

AbstractThis paper is concerned to make three points about money-metric poverty in India: first, that the standard poverty-line approach to measuring poverty considerably underestimates poverty, and that the particular protocols by which India’s official poverty lines are determined are arbitrary and misleading; second, that a view of poverty in which the achievement of a satisfactory level of income is seen as a valuable end in itself, and which is captured in something like Kaushik Basu’s ‘quintile income statistic’, suggests a high order of income-poverty in the country which belies the relatively encouraging trends exhibited by headcount ratios based on official poverty lines; and third, that the continued co-existence of large amounts of poverty with large amounts of inequality needs to be redeemed by some deliberate redistributive strategy aimed at providing something like a guaranteed basic minimum income to every citizen of the country—for reasons, at least, of self-interest, if not justice.