The Hindu Business Line : Persistent poverty

The article "Poverty and India's changing image" (Business Line, February 17) rightly points out despite sound macroeconomic indicators and high growth rates, the goal of sharp poverty reduction remains elusive. What are we missing in our growth strategy?

Does poverty remain high because reforms have gone too far in reducing the role of the State as a provider? Or because they have been targeting wrong problems and greater focus on institutions is needed?

For example, public investment in infrastructure is an area where the state continues to face enormous challenges. International experience reveals that countries can have far-reaching impact on poverty reduction by not only improving growth prospects but by preparing to reform and change deep institutional structures.

It means that to create durable reforms you also need to create durable constituencies to reform.

The approach paper to the 11th Five Year Plan recognises the challenges for faster and more inclusive growth and seeks solutions.

V. Srinivas

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