A World Bank (WB) report on South Asian inequality states that upward mobility in India and Bangladesh is comparable to that of the United States.
The recently published report, “Addressing Inequality in South Asia,” states that although inequality in South Asia appears moderate, there are extreme gaps between extravagant wealth and destitute poverty.
Between the US, Bangladesh, India and Vietnam, probability of moving out of poverty was highest in Vietnam, but chances of moving up to the middle class were slightly higher in the US.
The probability of falling back into poverty as well as falling out of the middle class are highest in Bangladesh and lowest in the US.
It also found that upward mobility the lower castes within India’s social structure is higher than that of higher caste members. The increase in non-agricultural labor, such as construction, in rural India is a main reason for the rise in upward mobility.
Between 2004 and 2010, about 15 percent of India’s population escaped poverty and about 11 percent of the poor and vulnerable rose to the middle class.
However, nine percent of the total population who were previously out reverted back into poverty.
“The analysis shows that South Asia performs poorly in terms of opportunity,” the report states. “Access to basic services is partial at best, and can be traced to characteristics at birth, including gender, location, and caste.”
Using the Gini coefficient, a method of measuring distribution of income and inequality, the report found that the levels of inequality in South Asian countries are similar to those of developed countries like Canada, Ireland and the United Kingdom.
Some of the highest overall inequality experienced is in countries like South Africa, Brazil, Chile and Mexico.
(UPI.Com)
