Why Indian growth story is widening the gap between rich and poor instead of bridging it .?

Answer 1

Education, to many poor people are being left behind because they cannot get an education while the rich can.

Answer 2

Welcome to the post-industrial economy!

Just about every nation is facing a rising GINI coefficient (a measure of wealth inequality). The reason is that in the prime industrial period (for the US: 1950s) the industrial economy created jobs that allowed unskilled workers to join the middle class. This was a historical aberration that has never happened before, but we treated it as if it was a natural result of democracy and the free market.

Now, however, the wages of those jobs are collapsing back to what they probably should have been decades ago. This means that wealth inequality is going to grow back to historical averages rather than be more evenly distributed.

The only way to be on top of this is education. However, education is only truly available for some, not all. This is especially true for developing countries like India, China, South America, etc. where the education infrastructure is very segregated.

Hope this helps,
Good luck!

Answer 3

Because the rich are getting richer faster than the poor. The rich who have the education are those who will be most successful.

There is nothing wrong with a widening gap between the rich and poor, as long as overall wealth increases for each person, and everybody treats everbody else with dignity

Answer 4

It is because wealth in India is limited to certain pockets. The gap between the rich and poor can never be bridged until the development reaches the grass root level.

Answer 5

This is a global phenomena. Some of the communist countries tried to address this issue by forcing Marxism but miserably failed. There is a positive correlation between IQ and the wealth of nations /individuals/families. The best way to increase IQ is a genetic approach. What traits do successful people have? In today’s world the most important are intelligence and diligence. Most successful people score high in intelligence and diligence. Those who lack in beneficial traits soon become numbered among the world’s unfortunates. People without intelligence, diligence and other necessary traits, may not be able to perform efficiently in the world, whatever the incentive offered to them by benevolent governments. Though genetically inferior stock is found among the rich, they will enjoy a degree of protection through their wealth. The negative social mobility of inferior genotypes is most evident in the most advanced countries. Despite free education and other incentives these people remain backward.
Intelligence is not the only criteria to acquire wealth. People capable of heavy physical work flourish in more prosperous countries. But some are fit neither for mental nor physical labour. Society dismisses them as lazy and unable. Many do not understand that their inability to cope with modern life is due to their genes. Attempts in America and Australia to help them with reservations and financial aids have proved abortive.
There is still another group comprising of the sick and congenitally criminal. We can trust that the sick will be treated and made well. But what to do with the criminals? Shutting them up in jails is only a temporary solution. Many social activists recommend reformatories and attempts to provide them with a better environment. But recent studies indicate that hereditary factors are responsible for most criminal activities and the effect of environmental means are minimal.
Improving the genetic traits of these people becomes relevant here. While our reasoning ability led to the evolution of man, the brains of an Edison or Darwin were not necessary till this scientific age began. Today intelligence is required in many fields of activity. In research, education, administration, legislation, industry, journalism, communication, defense, philosophy and religion, politics and indeed in nearly all fields of human endeavor, intelligence is essential. But humanitarian beliefs have prevented natural evolution from creating a more intelligent race. Thus was created a class of poor and backward people.
In general, obtuseness, laziness, physical debility, criminal tendencies and unattractiveness are the hallmarks of our poorest classes. And most of these tendencies are hereditary. In advanced countries these people live on welfare. In under-developed countries they subsist on beggary and petty crime. Slum shelter them. But our lower classes often contain the lights of love, selflessness and compassion. But these qualities alone do not make anyone upwardly mobile.
In this context environment cannot be held as wholly responsible for the travails of the poor. Thought will have to be given to improving the genetic stock of these unfortunates while simultaneously changing their environmental conditions. Only this can bring about a real benefit to the poor and bridge the gap between the rich and the poor.

Answer 6

Two major factor of this inequality are:

Lack of proper education.
Rapid and fast increase in population.

Answer 7

because ther is no serious effort to solve
this most challenging problem of the nation

Answer 8

Rich-Poor Gap
How can ethical market economies be encouraged to help reduce the gap between rich and poor?

Developing countries contribute half of the world’s $62-trillion annual economic growth. Previous economic growth has led to dramatic increases in life expectancy, primary school enrolments, access to safe drinking water and sanitation, and decreases in infant mortality. If this continues, the World Bank estimates that those living on $1 a day could fall from 29% in 1990 to 10% by 2015, even with increasing population in the poorest regions. However, increasing oil prices and deteriorating environmental conditions make this difficult; yet the majority of countries are increasing their economic freedoms, which should increase future income. Currently, income gaps are widening within 53 countries, home to 80% of the world’s population. About 2.5 billion people (40% of the world) live on $2 or less per day.

Foreign direct investment, representing the largest source of external finance for developing countries, increased 29% worldwide in 2005, reaching $897 billion. Official development assistance from OECD countries reached a record $106.5 billion and is projected to reach $130 billion by 2010. WTO members agreed to eliminate all agriculture export subsidies by 2013. According to UNDP, industrial countries’ agricultural subsidies cost developing countries $72 billion per year, about 70% of all international development assistance; hence the WTO agreement could be one of the most effective ways to increase developing countries’ income.

The IMF estimates that the global economy grew 4.8% in 2005 while the population grew 1.15%, increasing per capita income by 3.65%. The annual increase in per capita income in developing countries has averaged about 2% since 1990 (however, without India and China, the average has decreased), and the effect on poverty varied widely. East and South Asia grew the fastest, while sub-Saharan Africa’s poverty doubled party due to high birth rates, corruption, armed conflicts, poor governance, environmental degradation, poor health conditions, and lack of education. The entry into force of the UN Convention against Corruption might help.

China and India, with the second and fourth largest PPP GDP in the world, are major engines reducing world poverty, yet their high-tech and low wages will make future trade-led economic growth difficult for other developing countries. Ethical market economies require a “level playing field” guaranteed by an honest judicial system and by governments that provide political stability, a chance to participate in local development decisions, business incentives to comply with social and environmental goals, fairer trade, a healthy investment climate, and access to land, capital, and information. Since capital flows to profit potential, ethical activities have to be shown to be profitable and corporations have to be held accountable.

Challenge 7 will be addressed seriously when market economy abuses and corruption by companies and governments are intensively prosecuted, when the number of people living on less than $2 per day drops by 75%, and when the development gap—by all definitions—declines in 8 out of 10 years. A strategic plan for a global partnership between the rich and poor should be created and implemented that uses the strength of free markets and rules based on global ethics to reduce the disparities that otherwise might grow enough to increase migration of the poor to richer regions, increasing conflicts. The strategy should also include massive investments into tele-education and tele-work, replacing welfare attitudes with entrepreneurial spirit, reinforced by expanded microcredit mechanisms coupled with technical assistance, while using state welfare in states with little private sector. Many people will have to become self-employed, seeking personal markets rather than non-existent jobs.

The 70,000 transnational corporations with over 690,000 foreign affiliates (almost half of which are in developing countries) should be encouraged to increase their efforts to address income gaps within and between countries. Improve mechanisms to collect fees to address income gaps, improve global public goods, improve global governance systems, and internalize current externalities. These might include international transaction and transportation fees and an environmental footprint tax in addition to carbon trading for nations.

Asia and Oceania: The region produces about a third of world’s output and has two-thirds of the world’s poor. India and China are engines for poverty reduction in the region, with 7% and 9% economic growth respectively and a total of 200 million entrepreneurs. Water and energy shortages in China, plus widening rural-urban income gaps, threaten future growth, yet its strategy of socialist political control with capitalist economic policies should be considered by other countries with responsible leadership. Many Asians believe that ethical markets are created by the combination of spiritual and material development. The keys to economic growth in the Middle East are greater economic freedom, the resolution of the Israeli-Palestinian conflict, the rule of law, increased literacy, and small business development.