April 28, 2014

The missing economic model?

IDFC Institute CEO Reuben Abraham and Visiting Fellow Mudit Kapoorwrite in Mint: "The story of poverty reduction in Andhra Pradesh is about two chief ministers with vision and execution skills."

Excerpts below:

"We took a close look at the 68th round of National Sample Survey Office (NSSO) data and found the sharpest poverty reduction in India in the last two decades has occurred in a state that’s in the news for very different reasons—Andhra Pradesh... This implies that the state had a decline of rural poverty of 37.1 percentage points and a decline of 29.3 percentage points in urban poverty and an overall reduction in poverty of 35.4 percentage, which is huge and compares well even with China, where poverty went down by 40.6 percentage points between 1993 and 2008. How does this compare with other major states in India?

... in 1993, Andhra Pradesh belonged in the same category as Uttar Pradesh and Madhya Pradesh among the worst performing states in the country, and since then has had a dramatic turnaround... What caused the turnaround in Andhra Pradesh? We believe it was strong and visionary leadership focused on rapid economic growth, and the credit belongs equally to chief ministers N. Chandrababu Naidu and Y.S. Rajasekhar Reddy..."

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