Escalating inequality in South Asia: a challenge to political managers.
Muhammad, Ayaz
Introduction
In this era of modern technology and communication no one can deny
the importance of equal and equitable distribution of resources. This is
considered an essential feature of democratic as well as dictatorial
regimes. The notion of equity is often correlated with justice. Rawls
(1971) explains that the primary subject of justice is the way in which
principal economic and social arrangements distribute fundamental rights
and duties in a society so that: (i) each person is to have an equal
right to the most extensive basic liberty compatible with a similar
liberty for others (ii) social and economic inequalities are to be
arranged so that they are both reasonably expected to be to
everyone's advantage. In social and economic terms, everyone is
assumed to be equal to fulfill everyone's basic needs giving
'essentially equal treatment for equal cases'. Hence under the
first condition economically and socially just world would fulfill the
basic needs of everyone. This notion of equity is grounded in the
concept of social justice, which represents a belief that there are some
things which people should have, that there are basic needs that should
be fulfilled, that burdens and rewards should not be spread too
divergently across the community, and that policy should be directed
with impartiality, fairness and justice towards these ends. (1) Solow
(1992) considers the equity as intergenerational issue of 'who gets
what' and labels it 'distributional equity'. The equity
also encompasses relationship of human species to the natural system of
which humans are a part. This conception of equity demands equity
between the environment, the economy and the societal good, equity
between less developed nations with natural resources and developed
nations with excess demand for these resources, equity between those who
economically have plenty and those who suffer in poverty, equity between
urban demands and agricultural space, equity between humans and all
living species. This list of equity issues goes without limits. Each
group and individual raising questions about equity from their
particular points of interest trying to discover what is just and fair
within their own framework. Shrader-Frechette (2000) expands the circle
of equity up to future generations. He observes that the equity is
grounded, in part, on a social-contract theory that according to which
all humans share a social contract by virtue of being members of same
species and sharing the same interests and resources; as a consequence,
members of all generations deserve equal treatment. The strong emphasis
on equity requires sturdy role of precautionary principle. For example,
precautionary principle suggests the possibility to give up or change a
technological path in case equity principle is in danger. It is argued
that this will only be possible, if decisions are equitable, as such
decisions generally carry greater legitimacy and encourage parties with
differing interests to cooperate better in carrying out mutually agreed
actions.
Responsibility of Rich Nations
Prevailing inequity among different countries and among different
communities within a nation is one of the most urgent and thorny problems today faced by the developing countries. The national
perspective of intragenerational equity requires that the well-being of
strong groups will not be at the expense of weaker segments of the
society. To the developing countries this social dimension of
sustainable development seems the most important and challenging. (2)
Ikeme (2003: 195-206) and Agyeman et al. (2003) put the responsibility
on the shoulders of rich countries to narrow the gap. It is argued that
based on 'polluter pays' principle the industrialized countries should contribute not only to the costs to help protect it but
also to help the poor countries to gain access to the economic benefits
derived from the use of these resources so that as beneficiaries of the
planetary legacy, all members of the present generation are entitled to
equitable access to the legacy. Intergenerational justice requires
wealthier countries to assist impoverished ones in realizing such access
and enjoying UN defined development and as 'the social progress and
better standards of living in larger freedom'. This may be
reflected in various terms aimed at a fair and just utilization of
natural resources and maintaining their diversity, and equitable
distribution of economic benefits across different countries. Lot of
production and consumption is going on in wealthier industrialized
countries putting excessive strain on the sources. (3) Rayner and Malone
(2001) go beyond the financial equity and talk about the need of social
justice. Equity is not just about how societies distribute resources. It
is also the basis for generating social capital along with economic,
natural, and intellectual capital, for sustainability". One can
conclude from these views that:
* Lock's and Rousseau's social contract theories which
laid down the foundation of present democratic state indicate that human
beings are equal and have equal rights. So equality/equity is an
essential aspect of the state, which has to be dealt on the bases of
humanity.
* In present global village this phenomena should be dealt at
international level. Otherwise it will travel with its all drawbacks to
rich countries by ship which is transporting exploited resources of poor
countries through unjust policies to them.
* Equity should not be limited to present generation. It should
also encompass the intergenerational equity (future generation).
* It is an established fact that equal and equitable distribution
of resources in various regions and groups of people can ensure
sustainable development, and alleviate the poverty along with others on
sustainable bases from society.
* Equity/Equality is a pre-requisite for good governance.
South Asia in the family of regions
Despite the fact that almost all socio-political, economic and
religious scholars, planers and leaders are of the opinion that there
should be economic and political equality/equity from grass root level
to global level on the basis of humanity, even a strong group talks
about intergenerational equality/equity. But unfortunately,
inter-regional and inter-country level inequality/inequity is increasing
day by day. The following Data explains the position of South Asia in
the family of regions. South Asia Constants 22.36 per cent population
while GNI 2.14 per cent of the world in 2004. East Asia and the Pacific
(EAP) population 29.48 per cent while GNI is only 6.00 per cent, Eastern
Europe and Central Asia (EECA) population 7.44% while GNI is 3.90 per
cent, Latin America and the Caribbean (LAC) population 8.53 per cent
while GNI is 4.89 per cent, Middle East and North Africa (MENA)
population 4.63 per cent while GNI is 1.48 per cent, Sub-Saharan Africa
(SSA) population 11.33 per cent while GNI is only 1.09 per cent, High
Income (HI) population is only 15.77 per cent while GNI is 80.50 per
cent of the world in 2004. One can also observe the wide gap by
considering Per Capita GNI factor in 2004. South Asia US $ 590 EAP US $
1280, EECA US$ 3290, LAC 3600, MENA 2000, SSA 600 and HIG enjoys 32,040
(Table 1). This phenomenon shows that South Asia mean 22.6 per cent of
the world population leading very miserable life. The condition of other
regions is also not good. This situation demands that High Income Group
should play its role to lessen the gap between poor and rich countries
to enable them at least to provide minimum standard of life to their
people.
South Asia is suffering from interregional, intra-region and
intra-nation financial as well as political inequality/inequity.
Obviously it is impossible to meet the challenge while the planners,
policymakers and political mangers are bound to feed the 22.36 per cent
population of the world with 2.14 per cent GNI of the world. So, it is
responsibility of the international community, rich states particularly,
high income group and world institutions to formulate policy to shift
some resources to less developed countries to narrow the gap between
poor and rich nations and to enable the state apparatus in less develop
countries to overcome the problem of poverty as well as
inequality/inequity in their respective nations.
South Asia Inter-Country and Intra-Country Conditions
South Asia there is a bit progress in the factor of poverty
alleviation, but it is alarming that inequality is increasing in the
countries of the region. One can witness individual to individual, group
to group, urban to rural, city to city and intra city, village to
village and intra village, region to region and intra regional
disparities and inequalities in all the South Asian countries. These
inequalities are main source of political instability, ethic, moral,
political, economic and administrative corruption, hindrance in good
governance, above all breeding ground of violence and terrorism. It is a
hard falt that in these countries there is a lot of gap between
expectations of the people from the government and sources of the
government which leads to a vacuum and this vacuum turns out explosion,
disaster and debacle. Following figures indicate the dreadful condition
of this region.
The Income/Consumption Inequality by Quintile Groups indicates that
in Bangladesh, 20% poorest share of income or consumption in 1981-82 was
6.6 and in 2004 that was decreased to 4.7% and the share of 20% richest
in 198182, was 45.3% and in 2004, increased up to 52.0%. Bhutan the
poorest share in 2004, 6.5% and richest 48.7%, in India the poorest
share in 1990, 9.46% in 2004, a slight increase 9.52% and richest share
in 1990, 37.8% and in 2004, a slight increase here as well 38.5%, in the
Maldives the poorest in 1997, t0.0% and in 2004, 11.0% (the richest data
is not available), in Nepal the poorest in 1995-96, 7.6% in 2003/04,
decrease to 6.2% and the richest t995-96, 44.9% in 2003/04, increase up
to 53.4%, in Pakistan the poorest in 1988, 8.0% and in 2002, 7.0% the
richest in 1988, 43.7% and in 2002 increased up to 47.6%, in Sri Lanka the poorest share of consumption in 1995-96, 7.2% and in 2002, 6.2% the
riches in 1995-96, 44.4% and in 2002, 48.5% (table 2) One can conclude
from the following data that:
* there is minor increase in income consumption share of the 20%
poorest in the Maldives and India but slight decrease in Pakistan,
Bangladesh, Nepal and Sri Lanka;
* there is increase in the income consumption share of the 20%
richest in all the countries;
* the 60% population in the middle is sufferer, which is always
back bone of any economy and objective of equality/equity is to enhance
and strengthen this class. So, the case is almost reverse in the region;
* It is evident that the 20% richest are not ready to share surplus
income to lower classes. They are struggling to preserve or strengthen
their existing position. It is a hard fact that National and
international institutional policies are favoring them. There is need to
change their psychology in favour of downtrodden people, which is in
better interest of poor as well as rich in the long run.
The condition of intra-country regional disparities is also
frightening. For examples: population and area wise the biggest country
of the region, India, is badly suffering from this syndrome.
Resultantly, the government writ is very weak more or less in 67
districts. These districts are run by some ethnonational and ideological
powerful armed groups. They are used to collect taxes from the people,
law and order is at the mercy of them. The main cause, along with others
is the poverty, financial inequality, inequity and disparity. A large
number of military is engaged in these areas. According to available
figures in 2002-2003, all-India per capita GDP was US $ 480; the poorest
seven states (accounting for 55% of the population) had a per-capita GDP
that was two thirds the national average, while in the richest seven
states (33% of the population) per-capita GDP was nearly double that of
the poorest seven states. In the two largest and poorest northern states
(Bihar and Uttar Pradesh, 25% of total population) per-capita GDP was
less than half the national average and only a third of the richest 7
states. The four southern states, Andhra Pradesh, Karnataka, Kerala and
Tamil Nadu (21 per cent of the total population), at an average, enjoyed
more than twice the GDP per capita of the quarter of the population
concentrated in the two poorest northern states. Furthermore, with
average GDP growth rates of 5%, the southern states are galloping ahead
of the poorest but populous northern states with growth rates of only
2%. This threatens to further increase the poverty gap in the two
regions; currently, head count poverty in the poorest northern states
and the better off southern states is 35% and 18% respectively. (9)
Nepal can be separated in three main regions Himalayan, Hills and Terai area. (10) There is lot of disparities in these regions. Again there is
large gape between standard of living in Kathmandu valley and other
areas. In Pakistan urban and rural disparity can be observed from the
case of Punjab the largest province of Pakistan. It represents different
cultures and socio-political pattern as well as economic development in
various regions. However, inequality between urban and rural areas is
quite visible in the province. Local government income and expenditure
factor illustrates that in 1981-82, the population of urban local
government were 26.5 per cent who their income was 77.5 and expenditure
was 77.3% respectively ? The population of rural councils was 73.5%,
their income was 22.5% and expenditure was 22.5% respectively, of total
Punjab local government income and expenditure (Table 2). The condition
of other provinces in Pakistan was more or less the same.
In 2002 the government restructured local government institution
according to which the government amalgamated the rural and urban
councils in one unit and came up with more financial resources to feed
this tier of government by adopting vertical technique to reduce inter
district and intra district inequality in the country, which brought a
bit change in the situation. As a matter of fact one can witness these
disparities in Bangladesh, Sri Lanka, India, Nepal, Bhutan, Maldives and
Afghanistan. The case of Afghanistan is more complex that this country
has been battle field from 1979 to 1989. Unfortunately, this war
devastated the country more than other countries by considering all
economic and political indicators in 21 century.
The overall condition of the rural South Asia is miserable and
needs some special package for development. Moreover, the intra-district
disparities in development are also wide spread. For instance, the
villages that are close to the headquarters of the district are more
developed than those that are far flung. South Asia is not only
suffering from inter-city disparities, it also plagued with intra-city
disparities. More or less all big cities of the region have localities,
residents of which are enjoying more or less standard services. In
contrast, there are many slums in these cities, where Dwellers are
waiting even for conservancy services, inhabitants do not have access to
clean water to drink and natural gas to cook the food. There are
numerous complaints that in these areas over-flowing sewerage systems
are converting these cities into dirty ponds. These intra-city
disparities are rampant almost everywhere through the region. However
severity could be different in different countries and in different
cities. Likewise, disparities and differences can be observed in most of
the rural areas. The overall condition of the rural South Asia is
miserable and needs some special package for development. Moreover, the
intra-district disparities in development are also wide spread. For
instance, the villages that are close to the headquarters of the
district are more developed than those that are far flung.
Suggestions for National Equity
The challenge posed by this national perspective of equality/equity
could be addressed by ensuring that suggested financial policy should
provide distributive equity in socio-economic terms with a special care
of interests of the weaker segments of society. The poor and women in
particular have been identified as disproportionately vulnerable as the
result of unequal access to and control over resources. Economic and
gender-related equity issues need to be addressed in public policy
modeling to ensure equitable impact of suggested policy. To achieve the
objective of bridging the gap between the strong and weaker segments of
a 'nation state', explicit modeling of income distribution
must ensure that the impact of suggested policy is to everyone's
advantage. There is need to analyze that how much these factors
influence the public policy modeling. Public policy architect should
consider these factors and evolve the public policy model, which must
have capacity to absorb internal and external shocks of the system;
containing ability to deliver positive results for macro and micro level
development and having capacity for distribution of resources based on
equity to ensure sustainable development at national, regional as well
as global level.
There are several views dominant to reduce income inequality as
follows:
* The redistributionist view: according to redistribution view, to
which communists and leftists give weight, poverty and income inequality
in society can be reduced through redistribution of resources.
* The moral underclass view: according to this view supported by
some neo-liberals, see poverty and exclusion as a result of the
behaviours of the individuals themselves and their sub culture.
* The social integrationist view: according to this inequality in
society can be minimized by mainstreaming the poor and marginalized ones
into the development process and by providing equal opportunity to all
for their advancement. In general an inclusive society will reduce
inequality and enhance development by providing equal opportunities to
all, especially, poor and marginalized, in the socio-economic and
cultural development, and in the government of the country.
* Islam believes in external as well as internal purification of
individual. It has its own formula of social and economic justice.
According to its suggested model it ensure flow of money from rich to
poor in the long run by forbidding usury and make binding Zakat (the
rich will pay two and half % of surplus money to weaker section of
society in shape of money, education, protection, food, clothing,
shelter, to lift up the marginalized group of the society to include
them in socio, economic and cultural development process), Ushar (5% of
net income from agriculture crops from artificially irrigated land and
10% from naturally irrigated lands. This amount will also be distributed
among weaker section of society according to the mentioned formula) This
is not limited to one particular nation. It is for humanity. It mean if
some nation has surplus amount it has to transfer it to other nation,
and encouraging Sadqat, Khairat etc. Women are delaclared weaker section
of society all over the world. Islam believe in women economic and
political empowerment by declaring their rights of property, women right
to husband, widow rights etc. on permanent bases. In the same way
children and senior citizen rights also save weaker section of the
society. All these along with other promote intra state and interstate equality and equity.
a. Islam neither snatches everything from the rich to distribute to
the weaker section of society. Obviously, this lays down the foundations
of enmity between classes and promotes chaos and violence at national as
well as international levels.
b. Nor unbridle the rich to pile-up its assets by collecting usury,
which is ultimately paid by weaker section of the society to the rich
and widens the gape between them. This gap breeds discontent,
frustration and annoyance in down-trodden people and ultimately leads to
violence, chaos and anarchy at national as well as international level.
As it is happening in present era around the world.
c. Islam believes in the process of social inclusion. The process
of social inclusion will bring these individuals, groups and communities
in the national mainstream, will reduce inequality between them and rest
of the society, will increase their self-esteem and will create a
development oriented society based on the principles of equality, social
justice and human rights.
* Policy makers and planners to construct model by considering all
above ideologies.
a. It must be poor friendly and compatible to the existing
requirements. Containing capacity to address the indigenous problems and
issues of respective state by involving the civil as well as state
society.
b. This must encompass to up lift all marginalized ethno-regional
groups and other weaker section of the society,
c. International community should contribute to reduce the gape
between less developed and developed countries to ensure
intergenerational and intra-generational equality/equity.
Good Governance: Good governance itself means a rule-based,
corruptionless, equitable, transparent, accountable, responsive and
efficient government system in which all the individuals groups and
communities including women, the poor and the marginalized ones are
fully integrated in the decision making process and development
activities. The central objective of such government is to safeguard the
civil, political, social, economic and cultural rights of the people. In
South Asia a small group of political elites is governing in all
regional states including India. The tools and mechanism applied to
sustain their power could be different in different countries. There is
need to ensure effective participation of the weaker sections of the
societies in decision making process, all South Asian nations are lands
of heterogeneous people. These all ethno-linguistic, religious and
cultural groups may be accepted and provided effective role in decision
making bodies and opportunity for equal political and economic
development.
Local Government: The institution of local governments can play
positive and valuable role in this regard to ensure good governance and
to promote equality/equity. Because, these little governments are close
to people of respective localities and manage their immediate
activities. Following the principle of good governance provide basic
social services, such as health, education, drinking water and
sanitation to the people, and work for their cultural development. These
government works on the principle of double accountable, accountable to
the people and accountable to higher tier of the governments. Therefore,
if political, administrative and fiscal decentralization is carried out
properly, and if these local governments are provided with sufficient
financial resources and technical know-how to implement social, economic
and cultural development programmes in the local area, these
institutions will be able to contribute to the objective of providing
social, economic and cultural rights to the people and creating an
inclusive, harmonious and just society.
The governments should empower and equip this institution to
provide economic services through the development of
infrastructure--rural roads, micro and small irrigation systems and
micro hydro projects--protect the environment and create a good
atmosphere for the generation on income and productive employment,
especially for the poor, women and marginalized communities by following
a pro-poor growth approach.
Local government should be strengthened through political,
administrative and fiscal decentralization. It should be accepted and
its capacity should be enhanced as an agent of economic development. A
reasonable share of governments sources should be allocated to these
institutions to implement vertical financial equality in their
respective states. The capacity of these institutions should be
developed in important areas, such as, pro poor growth, good governance,
human rights and social inclusion so that they will be able to deliver
the basic social, economic and cultural services to the people, beside
providing opportunity to all, especially the poor and marginalized.
Measures at International Level
It is an undeniable fact that equality/equity can not be attained
without financial contribution and poor friendly fiscal and political
efforts of international community. Especially rich nations have to take
practical steps. It is positive that International community realizes
this fact and making efforts to overcome this problem. But these efforts
are not bearing desired fruit. Following suggestions could be adopted
for desired results:
* Planners and policy makers should be educated and realize that
reduction in inequality/inequity from the world is in the national
interest of all nations. They should consider it "long run security
measure" at the intra-nation and international level.
* The money contributed in this regard is always called donors
amount. This may be called money allocated for national and global
sustainable security. Because, reduction of inequality/inequity is the
best defense of any nation, global community and humanity. This is the
best to use soft power to avoid from any destructive revolution, threats
of terrorism and violence and any emerging insurgency and war at
national or international level.
* US who achieved the status of world political and economic
hegemonic power. To sustain this status, it is essential to up lift Less
Developed Countries (LDC) and their people up to the level of
respectable survival or minimum standard of life by using soft power.
But, unfortunately, after the suspension of cold war US policy makers
adopted a bit aggressive policy, especially, under the president Bush
leadership. Policy makers are slightly more inclined in use of hard
power. This aggressive style promoted mistrust, suspicions and
uncertainty among the allied as well as other nations and enhanced
insecurity of individuals in LDCs as well as developed countries.
Obviously, statuesque in world power politics is in favour of US. So, it
is responsibility of the US to maintain statuesque. It can be done by
using soft power and by reducing inequalities at national as well as
international level.
* International institutions that make and implement policies in
this regard are dominated by powerful nations. Naturally, they formulate
policies, which are suited to their current national interest. Effective
participation of less developed countries may be ensured in decision
making process according to democratic norms by adopting some democratic
formula.
* It is observed that the powerful industrialized countries force
the poor and weak countries to follow international treaties which are
not respected by some other powerful industrialized countries as well.
This kind of treaties always protects the interest of rich nations and
Emphasis on the long run tends to ignore current
inequalities/inequities, should be formulated and existing should be
modified in the better interest of humanity.
* Rich countries and International institutions floated schemes
debt for less develop countries to reduce poverty and for
intra-generational equity, but these schemes are also have many
weaknesses. There are many loopholes through which the flow of money is
from poor to rich in shape of feasibilities reports, interest,
experts' emoluments etc. Rich countries and the international
financial institutions (IFIs) like World Bank and International Monetary
Fund (IMF) promise 'social progress and better standards of
living' when extending loans to debtor countries but they withhold 'larger freedom' of these countries by imposing
conditionalties, for example structural adjustment program of IMF, that
effectively gets debt sustainability prioritized over sustainability of
human welfare in debtor countries. The implication of the international
context of intra-generational equity for the purpose of public policy
model is to structure such a 'just' financial policy for a
'nation state' that may help her minimize the debt reliance
and its consequent conditionalities.
* As far as intergenerational equality/equity is concerned, which
is an important responsibility of present generation could be achieved
by the developed countries. It is obvious that the countries
strangulated by poverty have neither the capacity nor desire to fulfill
intergenerational equity when they cannot even attain their needs today.
So, international community should surrender a small portion of their
surplus capital in favour of less developed countries to carry equity
and equality in present generation. This will help the less developed
countries to withdraw their present generation from poverty and enable
them to save natural resources for future generations of entire world.
References
Devarajan, Shantayanan and Ijaz Nabi. 2006. "Economic Growth
in South Asia: Promising, Un-equalizing, ... Sustainable?" Report
June, 2006. Washington DC: South Asia Region, World Bank, 20433. p. 5.
Falk, Jim, Hampton, Greg, Hodgkinson, Ann, Parker, Kevin and
Rorris, Arthur. 2993. Social Equity and the Urban Environment, Report to
the Commonwealth Environment Protection Agency, AGPS, Canberra. p.2.
Government of Pakistan, Federal Bureau of Statistics. 1989.
Pakistan Year Book 1989, Statistical Division, Islamabad.
Malaska, Pentti & Kaivo-oja, Jari & Luukkanen, Jyrki. 1999.
Sustainability and Economic Growth: Theoretical Framework and Empirical
Demonstrations, FUTU-publication 4/99. Finland Futures Research Centre.
Turku School of Economics and Business Administration.
Meadow, D. H., D. L. Meadows, J. Randers, and W. W. Behrens III.
1972. The Limits to Growth. New York: Universe Books, New York.
Muhammad, Ayaz. 2004. Local Government Finance: Some Political
Aspects: A Case Study of Punjab; Oxford University Press.
RPP 2005. country reports; The World Bank, World Development Report
2006; UNDP, Human Development Report, 2005.
SAARC, RPP 2004.
Notes
(1.) Falk, Jim, Hampton, Greg, Hodgkinson, Ann, Parker, Kevin and
Rorris, Arthur. 2993. Social Equity and the Urban Environment, Report to
the Commonwealth Environment Protection Agency, AGPS, Canberra. p.2.
(2.) Malaska, Pentti & Kaivo-oja, Jari & Luukkanen, Jyrki.
1999. Sustainability and Economic Growth: Theoretical Framework and
Empirical Demonstrations, FUTU-publication 4/99. Finland Futures
Research Centre. Turku School of Economics and Business Administration.
(3.) Meadow, D. H., D. L. Meadows, J. Randers, and W. W. Behrens
Ill. 1972. The Limits to Growth. New York: Universe Books, New York.
(4.) RPP 2005. country reports; The World Bank, World Development
Report 2006; UNDP, Human Development Report, 2005.
(5.) RPP 2005 Contry Reports.
(6.) Note: Sri Lanka--Excluding Northern and Eastern Provinces.
(7.) SAARC RPP 2004.
(8.) UNDP HDR 2005.
(9.) Devarajan, Shantayanan and Ijaz Nabi. 2006. "Economic
Growth in South Asia: Promising, Un-equalizing, ... Sustainable?"
Report June, 2006. Washington DC: South Asia Region, World Bank, 20433.
p. 5.
(10.) Plain area is called Terai area in Nepal. It occupies fertile
lands, food pocket of Nepal.
(11.) Muhammad, Ayaz. 2004. Local Government Finance: Some
Political Aspects: A Case Study of Punjab, Oxford University Press.
Table 1: Population and (GNI) of Various Regions/Countries (4)
Population
Region/ Country In million % of world
2004 population
2004
South Asia 1418.5 22.36
East Asia and the 1870.2 29.48
Pacific
Eastern Europe and 472.1 7.44
Central Asia
Latin America and 541.3 8.53
the Caribbean
Middle East and 294.0 4.63
North Africa
Sub-Saharan Africa 719.0 11.33
High Income 1000.8 15.77
World 6345.1 100.00
Gross national income (GNI)
Region/ Country In billion % of world Per capita
US$ GNI 2004 GNI in US$
2004 2004
South Asia 854.1 2.14 590 *
East Asia and the 2389.4 6.00 1280
Pacific
Eastern Europe and 1553.3 3.90 3290
Central Asia
Latin America and 1948.1 4.89 3600
the Caribbean
Middle East and 588.6 1.48 2000
North Africa
Sub-Saharan Africa 432.0 1.09 600
High Income 32064 80.50 32040
World 39833.6 100.00 6280
Source: Human Development Report, 2005.
* SAARC Countries including Afghanistan
Table 2: Income/Consumption Inequality by Quintile Groups and GNI
Index (5)
Share of income or consumption
Country Poorest 20% Richest 20 %
Earlier Latest Earlier Latest
Year Year Year Year
Bangladesh 6.6 4.7 45.3 52.0
(1981-82) (2004) (1981-82) (2004)
Bhutan -- 6.5 -- 48.7
(2004) (2004)
India 9.46 9.52 37.58 38.5
(1990) (2000) (1990) (2000)
The Maldives 10.0 11.0 -- --
(1997) (2004)
Nepal 7.6 6.2 44.9 53.4
(1995/96) (2003/04) (1995/96) (2003/04)
Pakistan 8.0 7.0 43.7 47.6
(1988) (2002) (1988) (2002)
Sri Lanka (6)
1. Share of HH 5.4 4.8 50.3 52.8
Income (1995/96) (2002) (1995/96) (2002)
2. Share of HH 7.2 6.2 44.5 48.5
Consumption (1995/96) (2002) (1995/96) (2002)
Share of income or
consumption
Ratio of richest GNI Index
Country to poorest
Earlier Latest Earlier Latest
Year Year Year Year
6.9
Bangladesh (1981- 11.1 0.39 0.45
82) (2004) (1981-82 (2004)
Bhutan -- 7.6 0.37 0.42
(2004) (2000) (2004)
India 4.0 4.0 0.28 0.28
(1990) (2000) (1990) (2000)
The Maldives -- -- 0.42 0.41
(1997) (2004)
Nepal 5.9 8.6 0.34 0.41
(1995/9) (2003/04) (1995/96) (2003/04)
Pakistan 5.5 6.8 0.35 0.41
(1988) (2002) (1988) (2002)
Sri Lanka (6)
1. Share of HH 9.3 11.0 0.46 0.47
Income (1995/96) (2002) (1995/96) (2002)
2. Share of HH 6.2 7.8 0.34 (7) 0.33 (8)
Consumption (1995/96) (2002)
Source: RPP 2005.
Table 3: Population, Income and Expenditure of Urban and
Rural Councils in the Punjab, Pakistan (1981-82) (11)
Population Income Expenditure
Council % age % age % age
Urban Councils 26.5 77.5 77.3
Rural councils 73.5 22.5 22.7