Question : GLOBAL PROSPERITY INDEX



(a) whether India has fallen to 88th place after receiving 10 points in Global Prosperity Index;

(b) if so, the details thereof alongwith the difference in prosperity between urban and rural areas;

(c) whether level of prosperity has fallen in the cities of the country;

(d) if so, the reasons therefor; and

(e) the steps taken by the Government to improve the situation?

Answer given by the minister


THE MINISTER OF HOUSING & URBAN POVERTY ALLEVIATION(KUMARI SELJA)

(a) & (b): The report by the Landon-based Legatum Institute titled ‘The 2010 Legatum Prosperity Index’ places India’s rank at 88 in a ranking of prosperity of 110 countries. The prosperity index is based on 89 variables over 110 countries, grouped into 8 sub-indices taking into account both economic growth and citizen’s quality of life. The Report does not provide prosperity indices for urban and rural areas separately.

(c) & (d): National Sample Survey Organization (NSSO) data based on Uniform Recall Period (URP) method indicate a decline in percentage of urban poor from 32.4 percent in 1993-1994 to 25.7 percent in 2004-2005. However, the absolute number of urban poor has increased from 763.37 lakhs in 1993-1994 to 807.96 lakhs in 2004-2005.

The causes of urban poverty in the country include:-
1. Structural - which include socially constructed constraints to opportunities for low-income groups;

2. Influx of a large number of workers to cities without commensurate job opportunities and availability of housing and basic amenities;

3. High cost of living, including cost of health care and medical facilities, housing, transport and education;

4. Lack of urban planning, especially that for housing low-income categories and provision of land for informal sector activities;

5. Absence of adequate regulation to protect the economic interest of the poor; and

6. Lack of involvement of poor in urban planning and developmental process

(e): The Ministry of Housing & Urban Poverty Alleviation is implementing following specific programmes for provision of basic services to the urban poor and poverty alleviation:-

(i) Jawaharlal Nehru National Urban Renewal Mission (JNNURM) Basic Services to the Urban Poor (BSUP)/ Integrated Housing & Slum Development Programme (IHSDP) launched in 2005-06: The shelter and basic amenities requirements of urban poor are addressed through Basic Services to the Urban Poor (BSUP) (applicable to 65 identified cities) and Integrated Housing & Slum Development Programme (IHSDP) (applicable to cities / towns other than the 65 cities).

(ii) Revamped Swarna Jayanti Shahari Rozgar Yojana (SJSRY): The scheme revamped in 2009-10 strives to provide gainful employment to the urban unemployed and under employed poor, through encouraging the setting up of self employment ventures by the urban poor living below the poverty line, and also upgradation of their skills to enable them to access market jobs or undertake self employment.

(iii) Rajiv Awas Yojana (RAY): The Government has announced a new scheme called Rajiv Awas Yojana (RAY) for the slum dwellers and the urban poor in June, 2009. This scheme is aimed at providing support to States that are willing to provide property rights to slum dwellers. A preparatory phase of the scheme called ‘Slum Free City Plans Scheme’ has been commenced from 2009-10.