Reliance on market forces harmed the world's poor: UN
Saturday, 30 January 2010
NEW DELHI, Jan 29(PTI): Over-reliance on the market forces to reduce poverty has hurt the world's poor, said the United Nations report on World Social Situation 2010.
"Over-reliance on the market forces and economic liberlisation have led ...to the detriment of the world's poor," said the UN report launched globally here Thursday.
The report titled 'Rethinking Poverty' makes a compelling case for a fresh approach to poverty and poverty-reduction efforts.
"The report basically highlights some of the major problems of poverty measurement... (as to) what has worked, what has not worked, in terms of reducing poverty," said UN assistant secretary-general with its department of economic and social affairs KS Jomo, while releasing the report here.
The governments need to play a developmental role, integrating economic and social policies that support inclusive output and employment growth, the report added.
Jomo further said there is no evidence to support the belief that more flexible labour markets generated more jobs and thus reduced poverty. In fact, with more flexible labour markets, the basic wage went down, he said.
"The report states very clearly that you cannot leave poverty reduction for markets. Market forces have failed and will fail. In other words, they cannot deliver these. So, you have to have public intervention," said Jawaharlal Nehru University professor of economics Jayati Ghosh.
The JNU professor also said public intervention has a bad name for the last 20 years and all across there have been demands for downsizing the state. "You cannot downsize it. You have to expand the role of the state, but you have to make it accountable," Ghosh said.
The UN report pointed out that reducing poverty requires efforts not only at the national level, but for the international community to promote more effective social investment efforts for greater solidarity and equity.
"It is essential for people to be healthy, educated, well housed and fed to be more productive and to contribute in turn to society," the report said.
South Asia is the developing sub-region with the largest number of the poor-as much as 43 per cent of the developing world's 1.4 billion poor people live in the South Asian countries, the report noted.
The absolute number of people living in extreme poverty in the region increased to 595.6 million from 548.3 million between 1981 and 2005, it added.
Income inequalities have grown steadily in the country since the early 1980s, in both urban and rural areas, the UN report pointed out.
"Over-reliance on the market forces and economic liberlisation have led ...to the detriment of the world's poor," said the UN report launched globally here Thursday.
The report titled 'Rethinking Poverty' makes a compelling case for a fresh approach to poverty and poverty-reduction efforts.
"The report basically highlights some of the major problems of poverty measurement... (as to) what has worked, what has not worked, in terms of reducing poverty," said UN assistant secretary-general with its department of economic and social affairs KS Jomo, while releasing the report here.
The governments need to play a developmental role, integrating economic and social policies that support inclusive output and employment growth, the report added.
Jomo further said there is no evidence to support the belief that more flexible labour markets generated more jobs and thus reduced poverty. In fact, with more flexible labour markets, the basic wage went down, he said.
"The report states very clearly that you cannot leave poverty reduction for markets. Market forces have failed and will fail. In other words, they cannot deliver these. So, you have to have public intervention," said Jawaharlal Nehru University professor of economics Jayati Ghosh.
The JNU professor also said public intervention has a bad name for the last 20 years and all across there have been demands for downsizing the state. "You cannot downsize it. You have to expand the role of the state, but you have to make it accountable," Ghosh said.
The UN report pointed out that reducing poverty requires efforts not only at the national level, but for the international community to promote more effective social investment efforts for greater solidarity and equity.
"It is essential for people to be healthy, educated, well housed and fed to be more productive and to contribute in turn to society," the report said.
South Asia is the developing sub-region with the largest number of the poor-as much as 43 per cent of the developing world's 1.4 billion poor people live in the South Asian countries, the report noted.
The absolute number of people living in extreme poverty in the region increased to 595.6 million from 548.3 million between 1981 and 2005, it added.
Income inequalities have grown steadily in the country since the early 1980s, in both urban and rural areas, the UN report pointed out.