Ways to Get Rid of Poverty in South Asia - Research Paper Example

Poverty in South Asia Introduction South Asia is one of the most populated regions in the world. It is characterized by diverse ethnic groups, religions and languages. This region plays an important role in the arena of international politics and global economic activities due to its strategic location. South Asia has a number of land and sea links that connect with other regions such as East Asia, the Middle East and central Asia. Owing to its large population and great diversity, poverty has remained to be one of the major problems facing the region. This paper analyses the progress the region has made in addressing the problem of poverty from the start of the millennium (year 2000) and the major factors affecting poverty today. The current state of poverty is South Asia In a paper by M. Irfan (2001), the author examines the poverty situation in the south Asian region during the 1990s. At the time, close to 44 per cent of the population was living on less than a dollar a day. This region has however witnessed a slight reduction in poverty by around 18 per cent between 1990 and 2010, and currently stands at almost 26 per cent (Andres, Biller & Dappe, 2013). However, the region has witnessed an increase in population by almost 42 per cent between the years 1990 and 2010 (Andres, Biller & Dappe, 2013). The increase in population thus implies that the number of people living on less than a dollar per day is significantly higher compared to the figures of the 1990s. In this region, India remains to be the country with the highest number of people living on less than a dollar a day, standing at more than 350 million people (Rao, 2010). However, other countries such as Nepal, Bangladesh and Pakistan also have high number of people living on less than a dollar a day, each at 38%, 29% and 31% respectively (Chronic Poverty Research Centre, 2005). In addition to these figures, South Asia has the highest numbers of illiteracy, child mortality and those who lack access to basic infrastructural facilities such as water and electricity (Chronic Poverty Research Centre, 2005). Main factors affecting poverty levels on South Asia Today Poverty in South Asia is brought about as a result of the interactions between various factors. First, the geopolitical situation of the region continues to have a major influence on the poverty levels in this region. Local and regional politics lead to conflicts between different groups in the region (Rowntree, et al, 2014). As a result, the ability of the affected groups to engage in meaningful economic activities is greatly reduced. For example, the conflict in Kashmir has led to the development of hostile relationships between India and Pakistan, and this in turn affects development (Rowntree, et al, 2014). Secondly, population and settlement is another factor that continues to affect poverty levels in south Asia. The region continues to experience rapid population growth, and this greatly reduces its ability to feed itself. For example, in Bangladesh, the population density stands as 1142 (as of 2010), making it one of the densely populated countries in the region (Rowntree, et al, 2014). The ability of such countries to provide for their citizens is reduced due to the straining of the available resources. Thirdly, the ethnic, religious and cultural diversity that characterizes this region has contributed to the growth in poverty levels. Specifically, the caste system, which is dominant in countries such as India and Sri Lanka, has forced people to belong to lower classes (Rao, 2010). Such people live in poverty and are shunned from the society. Finally, the environment and the geography of the region continue to play a role in the poverty levels. This region is characterized diverse landscapes and environments, ranging from mountains to islands; deserts to wetlands. Each of these environments has their different challenges that affect the locals. For example, Bangladesh continues to suffer from extreme flooding, and this affects the ability of the population to take part in economic activities such as farming. Recent Economic Trends in South Asia As noted in the paper by paper by M. Irfan (2001), the average annual GDP growth for this region during the 1990s ranged between 4 and 5.5 per cent. Since then, this region has continued to experience moderate growth starting the year 2000. Currently, the region is experiencing an annual GDP growth of between 5.5 per cent and 7 per cent (Malik, et al, 2010). For example, between 2001 and 2006, India’s annual GDP grew by 2 percentage points to jump from the 5.5 per cent levels of the 1990s to about 7.5 per cent at the end of 2006. This country has continued to experience increases in annual growth rates to heights of more than 9 per cent (Malik, et al, 2010). However, considering that these countries have had considerable growth in population, the growth in annual GDP has not translated directly to improved standards of living and reduced poverty. For this reason, a very high number of people continue to live below the poverty line. The growth in South Asia’s economy has been attributed to the ability of the region to overcome various development constraints. Key among the constraints identified includes civil conflict, corruption and macroeconomic instability. However, these issues have not been fully addressed by these countries, and therefore continue to impede economic growth. Poverty levels still remain high in this region as a consequence. It is predicted that if the region’s economic growth is increased to an annual rate of at least 10 per cent, then the poverty rates will be reduced to single digits by the end of 2015 (Malik, et al, 2010). However, the realization of such growth rates depends on how the countries in this region will tackle the main constraints to economic development. In addition, this requires sharply focusing on certain priority areas in order to address the problem of poverty. The key priority areas in dealing with poverty and enhancing economic growth are briefly outlined below. Key priority Areas in addressing Poverty In order to address the problem of poverty in the region, there are a number of key areas that have been identified. First, the region requires assistance for sustainable economic growth and also reduction of the income disparities. This is one way of ensuring that the region achieves balanced and sustainable economic growth. Secondly, there is the need to develop environmental and climate change measures. South Asia is one of the regions of the world that are frequently hit be natural disasters brought about as a result of climate change. For example, countries such as Pakistan and Sri Lanka are constantly affected by floods (Japan International Cooperation Agency, 2012). Thirdly, this region will address poverty if peace-building efforts are implemented. Most of the countries in this region, such as Afghanistan and Pakistan, are affected by political instability, further contributing to the high levels of poverty in the country. Forth, it has been argued that the region needs to strengthen its manufacturing sector in order to compete with major economic powers within Asia and around the world. Expanding the manufacturing sector is likely to boost the annual economic growth rate of the region to double digits (Malik, et al, 2010). Finally, it is necessary to revamp the private sector in order to enhance economic growth. By growing this sector, a good investment environment will be cultivated in this region. This will help in attracting investors from countries such as Japan and China. In addition to the above key areas, the South Asia Region can address the problem of poverty by increasing access to major infrastructure services. The first is the access to electricity where only 71 per cent of the population can access electricity. Therefore enhancing access to this critical element can help address poverty. Secondly, many countries do not have access to water, with only 25 per cent of the population accessing piped water. Third, the region still lags behinds when it comes to access to telecommunication services. This is mainly attributed to the low levels of urbanization in the South Asian region. Fourth, access to sanitation services needs to be enhanced. Only 39 per cent of the population can access such services. This affects the health of the population and the overall quality of life. Finally, enhancing transport access will help address the problem of poverty. For example, the region has a road network of 2.9KM, which is below the world average of 4.7KM. Conclusion South Asia remains to be one of the most important regions when it comes to global politics and economic development. However, poverty is a major problem in the region. Although most of the countries have experienced significant annual economic growths, the soaring population makes it difficult for the effects of such economic growths to be felt. The region’s location, climate and diverse cultures further contribute to the high poverty levels. In order to address this issue, countries of this region need to focus on providing the key infrastructure services to its citizens. References Andres, L., Biller, D & Dappe, M (2013). Reducing Poverty by Closing South Asia’s Infrastructure Gap. The World Bank. Pp. 1-23 Chronic Poverty Research Centre (2005). Understanding Chronic Poverty in South Asia. In The Chronic Poverty Report 2004-2005. Pp. 71-78. Retrieved on 12 March 2015 from http://www.chronicpoverty.org/publications/details/the-chronic-poverty-report-2004- 2005/ss Ifran, M (2001). Poverty in South Asia. The Pakistan Development Review, 39(4), Papers and Proceedings PART II Sixteenth Annual General Meeting and Conference of the Pakistan Society of Development Economists Islamabad, January 22-24, 2001 , pp. 1141-1151 Japan International Cooperation Agency (JICA),. (2012). Annual Report (pp. 36-41). Retrieved on 12 March 2015 from http://www.jica.go.jp/english/publications/reports/annual/2012/ Malik, A et al (2010). Economic Growth and Structural Change in South Asia: Miracle or Mirage? Working Paper 10/0859. International Growth Center. Rao, J (2010). The Caste System: Effects on Poverty in India, Nepal and Sri Lanka. Global Majority E-Journal, 1(2), pp. 97-106 Rowntree, L., Lewis, M., Price, M., & Wyckoff, W. (2014). South Asia. In Diversity Amid Globalization: World Regions, Environment, Development (6th ed., pp. 537-585). Prentice Hall. Read More