Middle income trap
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Transcript of Middle income trap
- 1. 1.MOHD ARIF
2.BUSHRA ZAHIR KHAN
3.ARTI YADAV
4.ARMAN ALI
5.ARUNIMA SHARMA
6.DIMPLE KUMARI
7.JYOTSNA
MIDDLE INCOME TRAP - 2. WHATS THE INDIA STORY
- 3. Rising GDP growth
% average annual GDP growth
1900 1950 1.0
1950 1980 3.5
1980 2002 6.0
2002 2006 8.0
Sources: 1900-1990: Angus Madison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001), 2000-2005 Finance Ministry - 4. Population growth is slowing
% average annual growth
1901 1950 1.0
1951 1980 2.2
1981 1990 2.1
1991 2000 1.8
2001 2010 1.5
Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001) - 5. Literacy is rising
%
1950 17
1990 52
2000 65
2010 (proj) 80
Source: Census of India (2001) - 6. Productivity is rising
30% to 40% of GDP growth is due to
rising productivity - 7. Middle class is exploding
% Million
People
1980 8 65
2000 22 220
2010 (proj) 32 368
Source: The Consuming Class, National Council of Applied Economic Research, 2002 - 8. WHAT IS A MIDDLE INCOME TRAP
Countries stagnating and not growing to advanced country levels - 9. INCOME AND CONSUMPTION TRRNDS
- 10. Figure 1. Changes in income share by economic
class
- 11. Figure 2. Growth in inflation-adjusted family
income
- 12. Figure 3. Inflation-adjusted median family
income
- 13. Figure 5. Annual hours of work in married families, 1979
& 2000
- 14. priorities for becoming a determined marathoner
- 15. Enormous challenge of managing threesimultaneous
transformations
- 16. Managing three transformations simultaneously will be an
enormous challenge. To do so, India must anticipate and adapt to
the changes wrought by each of these transformations individually
and collectively
- 17. THREE DIMENTIONS TO GROWTH
- Societymoving from a poor society to a
- Economymoving from a domestically oriented
- Worldmoving from a small player to a responsible
- 18. Indias long-term prospects and growth will depend on its
ability to balance all three dimensionssociety, economy and global
citizenshipas it makes policy decisions
- 19. Overarching issues of governance
- 20. facets of governance must change to transform the Indian
economy and society:
- 21. Create a smarter, more focused, agile and more credible
government.
Retool the civil service to meet the needs of today and tomorrow. - 22. Focus on the long term and open the public private
dialogue.
Support competitive markets and prevent capture of state organs. - 23. Inculcate a code of self-discipline and ethical behavior
within the business community.
Reverse the deterioration in political governance. - 24. Implement priorities, monitor results, ensure
transparency and enforce accountability. - 25. A refocused government is essential to facilitating
dramatic transformations in the Indian economy and society. There
is a need to rethink not only what the government does but also how
it does it
- 26. intergenerational issues requiring an immediate
start
- 27. Tackle disparities and achieve inclusive growth.
Dramatically improve the quality of the environment. - 28. Eliminate infrastructure bottlenecksCreate a competitive
edge.
Improve the delivery of public servicesCreate
functioning cities for sustaining growth. - 29. Renew the focus on education, technological
development and innovationKeys to sustaining
improvements in competitiveness.
Launch a revolution in energyEnsure security and competitiveness. - 30. Foster a prosperous South Asia and become a responsible
global citizenIndia, its neighborhood
and the world. - 31. THE END