According to the world bank report based on 2010 data, the world’s 64% of the extreme poor live in just five countries and guess who leads the pack? India!
The report says that 64% of these poor lives in just five countries namely India, China, Nigeria, Bangladesh and Congo. The below chart shows the share of population by each of these countries and the situation is alarming in India. Because we contribute 18% to the world’s total population and 33% of the world’s poorest as well.
The new world bank paper on Prosperity for all – ending extreme poverty aims to reduce the global poverty. But I would say that the basics has to start from within our self.
The extreme poverty is defined by world bank as a living on less than $1.25 a day. That is merely Rs.75 a day. The world bank report is in contrary to Indian planning commission recommendation of Rs.32 per day!
The world bank data are based on 2010 figures. Hardly we can believe that there is improvements on these numbers.
The reports came in a time where we are busy spending millions on elections and conducting the costliest election in the history of India.
World bank aims to improve the income growth of the bottom 40%. That is shared prosperity than individual growth. How the shared prosperity can be achieved is through creating more jobs. Without creating jobs we can’t employ people and raise their income growth.
Most of our population are in the rural areas where the so-called development has not reached. The government grants and subsidies should reach the poor and not the agents or the intermediaries. In fact this is one of the problem that we face in India now. The world bank alone cannot reduce poverty by 2030. Its our responsibility (every individual as well as the government of India) to uplift the poor and create more jobs.
Self Sustainable Citizens
We are creating more startups thereby creating more jobs. But are we doing enough to help the bottom 40% to create a source of income for themselves. Even the banks are not willing to provide loans to the poor farmers or the said bottom 40%.
In startups when we want to raise money, we either pitch to investors or go the crowd sourcing way or get a micro finance. The same can be applied to uplifting the poor as well.
Rang De focuses on these concepts. They help rural people to raise money for starting their own business or to further develop their existing business. RangDe is an online micro finance lending platform that connects lenders to small entrepreneurs, and manages the ecosystem around it. Their vision is to make poverty history in India by reaching out to under served communities through micro credit. They are striving to do this through a network of committed field partners and social investors, by offering micro credit that has a positive impact on business, education, health and environment of the communities they work with. They charge a nominal 1% on the loans repaid by their borrowers. Rand De has been funded by World bank, ICICI Foundation, NABARD to name a few.
How Rang De works?
Choose borrowers to fund small businesses or education. You can start the investment from small amounts starting from Rs.100. Rang De’s Field Partners receive and disburse the loans to the borrowers. The borrowers repay the loan according to a repayment schedule. As and when they pay, you receive your investment amount with nominal returns on it.
The network like Rang De brings the hope in the life of a person who struggles to live in this beautiful world. We need more Rang De’s and Outline India’s to improve the rural India which is the lifeline of our country.
If you need income, you need a job. For jobs to be created, you need to promote entrepreneurship. As of now I would say that entrepreneurs ecosystem is being developed in urban areas. But we need to understand the fact that farmers who engage in agriculture are also entrepreneurs. They develop their product going through several hard ships and finally market it to earn their income.
The world bank motto is to reduce extreme poverty to 3% by 2030. Their association with non-profit organizations like rang de, grameen bank can provide the much-needed help to the poor along with a proper planning from our own governments. The involvement of our own citizens will help to develop the rural as well as urban areas than depending on the government funds which might not even reach the needy.