India needs to play a key role in ending global poverty. Will Modi be up to the task?

The UPA government may have claimed to have lifted the economy, but a World Bank report clearly indicates that India tops the list of countries with the absolute number of people living in extreme poverty.

According to a recent World Bank report titled: ‘Prosperity for all– Ending extreme poverty," India has the largest share of global extreme poor. In fact, close to two-thirds of the world’s extreme poorare concentrated in just five countries-India, China,Nigeria, Bangladesh, and the DemocraticRepublic of Congo.

[caption id=“attachment_82247” align=“alignleft” width=“600”]  Chart from World Bank report[/caption]

India tops the list. About 33 percent of the world’s extreme poor reside in India, followed by 13 percent in China and 7 percent in Nigeria.

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Extreme poverty is defined as living on less than $1.25 a day.

The report notes that to end the global poverty it is important to focus on these countries.

While the figures may be dated, given the sluggish economic growth of India, the situation is unlikely to have changed.

So, how do we end poverty? The report says that the goals of ending extreme poverty and boosting shared prosperity areclosely linked-lasting progress in ending extreme poverty also requires continuedattention to what is happening to the bottom 40 percent of the population.

Will a new government in India be up to the task of reducing extreme poverty? Over the last couple of months, the markets have gone up and the rupee has strengthened. Clearly, investors and stock traders believe that the BJP’s prime ministerial candidate, Narendra Modi, is the answer to all our economic problems.

If he comes to power, manufacturing is expected to get a big boost. Indeed, manufacturing has been chalked out as one of the biggest themes of the BJP manifesto and experts say the BJP-led government will be able to create plenty of jobs in the country. Will that help in reducing poverty? Only time will tell.

While the information in the WB chart is already known, it provides a timely reminder of the kind of economic reforms needed in India. Reforms should not just be about boosting economic growth, but also development and reducing poverty.

Poverty is one of the biggest tragedies that India. Will Modi, if he comes to power, be able to go at least some way in alleviating that tragedy?

We’ll have to wait and see.